00000935561/12021Q3falseus-gaap:AccountingStandardsUpdate201613MemberP1Y00000935562021-01-032021-10-020000093556swk:CommonStock2.50ParValuePerShareMember2021-01-032021-10-020000093556swk:CorporateUnitsSWTMember2021-01-032021-10-02xbrli:shares00000935562021-11-08iso4217:USD00000935562021-07-042021-10-0200000935562020-06-282020-09-2600000935562019-12-292020-09-26iso4217:USDxbrli:shares00000935562021-10-0200000935562021-01-0200000935562021-07-0300000935562020-06-2700000935562019-12-2800000935562020-09-260000093556us-gaap:PreferredStockMember2021-01-020000093556us-gaap:CommonStockMember2021-01-020000093556us-gaap:AdditionalPaidInCapitalMember2021-01-020000093556us-gaap:RetainedEarningsMember2021-01-020000093556us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-020000093556us-gaap:TreasuryStockMember2021-01-020000093556us-gaap:NoncontrollingInterestMember2021-01-020000093556us-gaap:RetainedEarningsMember2021-01-032021-04-030000093556us-gaap:NoncontrollingInterestMember2021-01-032021-04-0300000935562021-01-032021-04-030000093556us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-032021-04-030000093556us-gaap:AdditionalPaidInCapitalMember2021-01-032021-04-030000093556us-gaap:TreasuryStockMember2021-01-032021-04-030000093556us-gaap:PreferredStockMember2021-04-030000093556us-gaap:CommonStockMember2021-04-030000093556us-gaap:AdditionalPaidInCapitalMember2021-04-030000093556us-gaap:RetainedEarningsMember2021-04-030000093556us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-030000093556us-gaap:TreasuryStockMember2021-04-030000093556us-gaap:NoncontrollingInterestMember2021-04-0300000935562021-04-030000093556us-gaap:RetainedEarningsMember2021-04-042021-07-030000093556us-gaap:NoncontrollingInterestMember2021-04-042021-07-0300000935562021-04-042021-07-030000093556us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-042021-07-030000093556us-gaap:AdditionalPaidInCapitalMember2021-04-042021-07-030000093556us-gaap:TreasuryStockMember2021-04-042021-07-030000093556us-gaap:PreferredStockMember2021-04-042021-07-030000093556us-gaap:PreferredStockMember2021-07-030000093556us-gaap:CommonStockMember2021-07-030000093556us-gaap:AdditionalPaidInCapitalMember2021-07-030000093556us-gaap:RetainedEarningsMember2021-07-030000093556us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-030000093556us-gaap:TreasuryStockMember2021-07-030000093556us-gaap:NoncontrollingInterestMember2021-07-030000093556us-gaap:RetainedEarningsMember2021-07-042021-10-020000093556us-gaap:NoncontrollingInterestMember2021-07-042021-10-020000093556us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-042021-10-020000093556us-gaap:AdditionalPaidInCapitalMember2021-07-042021-10-020000093556us-gaap:TreasuryStockMember2021-07-042021-10-020000093556us-gaap:PreferredStockMember2021-10-020000093556us-gaap:CommonStockMember2021-10-020000093556us-gaap:AdditionalPaidInCapitalMember2021-10-020000093556us-gaap:RetainedEarningsMember2021-10-020000093556us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-10-020000093556us-gaap:TreasuryStockMember2021-10-020000093556us-gaap:NoncontrollingInterestMember2021-10-020000093556us-gaap:PreferredStockMember2019-12-280000093556us-gaap:CommonStockMember2019-12-280000093556us-gaap:AdditionalPaidInCapitalMember2019-12-280000093556us-gaap:RetainedEarningsMember2019-12-280000093556us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-280000093556swk:GuaranteedESOPObligationMember2019-12-280000093556us-gaap:TreasuryStockMember2019-12-280000093556us-gaap:NoncontrollingInterestMember2019-12-280000093556us-gaap:RetainedEarningsMember2019-12-292020-03-280000093556us-gaap:NoncontrollingInterestMember2019-12-292020-03-2800000935562019-12-292020-03-280000093556us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-292020-03-280000093556us-gaap:AdditionalPaidInCapitalMember2019-12-292020-03-280000093556us-gaap:TreasuryStockMember2019-12-292020-03-280000093556swk:GuaranteedESOPObligationMember2019-12-292020-03-2800000935562018-12-302019-12-280000093556srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2019-12-280000093556srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-280000093556us-gaap:PreferredStockMember2020-03-280000093556us-gaap:CommonStockMember2020-03-280000093556us-gaap:AdditionalPaidInCapitalMember2020-03-280000093556us-gaap:RetainedEarningsMember2020-03-280000093556us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-280000093556swk:GuaranteedESOPObligationMember2020-03-280000093556us-gaap:TreasuryStockMember2020-03-280000093556us-gaap:NoncontrollingInterestMember2020-03-2800000935562020-03-280000093556us-gaap:RetainedEarningsMember2020-03-292020-06-270000093556us-gaap:NoncontrollingInterestMember2020-03-292020-06-2700000935562020-03-292020-06-270000093556us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-292020-06-270000093556us-gaap:AdditionalPaidInCapitalMember2020-03-292020-06-270000093556us-gaap:TreasuryStockMember2020-03-292020-06-270000093556us-gaap:PreferredStockMember2020-06-270000093556us-gaap:CommonStockMember2020-06-270000093556us-gaap:AdditionalPaidInCapitalMember2020-06-270000093556us-gaap:RetainedEarningsMember2020-06-270000093556us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-270000093556swk:GuaranteedESOPObligationMember2020-06-270000093556us-gaap:TreasuryStockMember2020-06-270000093556us-gaap:NoncontrollingInterestMember2020-06-270000093556us-gaap:RetainedEarningsMember2020-06-282020-09-260000093556us-gaap:NoncontrollingInterestMember2020-06-282020-09-260000093556us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-282020-09-260000093556us-gaap:AdditionalPaidInCapitalMember2020-06-282020-09-260000093556us-gaap:TreasuryStockMember2020-06-282020-09-260000093556us-gaap:PreferredStockMember2020-09-260000093556us-gaap:CommonStockMember2020-09-260000093556us-gaap:AdditionalPaidInCapitalMember2020-09-260000093556us-gaap:RetainedEarningsMember2020-09-260000093556us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-260000093556swk:GuaranteedESOPObligationMember2020-09-260000093556us-gaap:TreasuryStockMember2020-09-260000093556us-gaap:NoncontrollingInterestMember2020-09-26xbrli:pure0000093556swk:MTDMember2021-08-160000093556swk:MTDMember2021-08-162021-08-160000093556swk:MTDMember2019-01-020000093556swk:MTDMember2019-01-022019-01-02swk:country00000935562020-11-012020-11-3000000935562019-11-300000093556us-gaap:SeriesDPreferredStockMember2019-11-3000000935562019-11-012019-11-300000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2019Member2021-01-032021-10-020000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2017Memberus-gaap:SeriesCPreferredStockMember2017-05-310000093556us-gaap:SeriesCPreferredStockMember2017-05-310000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2017Memberus-gaap:SeriesCPreferredStockMember2020-05-012020-05-310000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2017Memberus-gaap:SeriesCPreferredStockMember2020-05-310000093556us-gaap:SeriesCPreferredStockMember2021-04-280000093556us-gaap:SeriesCPreferredStockMember2021-04-282021-04-280000093556us-gaap:SeriesCPreferredStockMember2021-06-032021-06-0300000935562021-06-012021-06-300000093556us-gaap:SeriesCPreferredStockMember2021-06-030000093556us-gaap:OtherAssetsMember2021-10-020000093556us-gaap:OtherAssetsMember2021-01-020000093556us-gaap:FinanceReceivablesMember2021-10-020000093556us-gaap:TradeAccountsReceivableMember2021-07-030000093556srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:TradeAccountsReceivableMember2021-07-030000093556us-gaap:CostOfSalesMemberus-gaap:TradeAccountsReceivableMember2021-07-042021-10-020000093556us-gaap:TradeAccountsReceivableMember2021-07-042021-10-020000093556us-gaap:TradeAccountsReceivableMember2021-10-020000093556us-gaap:NotesReceivableMember2021-07-030000093556srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:NotesReceivableMember2021-07-030000093556us-gaap:NotesReceivableMemberus-gaap:CostOfSalesMember2021-07-042021-10-020000093556us-gaap:NotesReceivableMember2021-07-042021-10-020000093556us-gaap:NotesReceivableMember2021-10-020000093556srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-07-030000093556us-gaap:CostOfSalesMember2021-07-042021-10-020000093556us-gaap:TradeAccountsReceivableMember2021-01-020000093556srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:TradeAccountsReceivableMember2021-01-020000093556us-gaap:CostOfSalesMemberus-gaap:TradeAccountsReceivableMember2021-01-032021-10-020000093556us-gaap:TradeAccountsReceivableMember2021-01-032021-10-020000093556us-gaap:NotesReceivableMember2021-01-020000093556srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:NotesReceivableMember2021-01-020000093556us-gaap:NotesReceivableMemberus-gaap:CostOfSalesMember2021-01-032021-10-020000093556us-gaap:NotesReceivableMember2021-01-032021-10-020000093556srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-01-020000093556us-gaap:CostOfSalesMember2021-01-032021-10-020000093556us-gaap:TradeAccountsReceivableMember2020-06-270000093556srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:TradeAccountsReceivableMember2020-06-270000093556us-gaap:CostOfSalesMemberus-gaap:TradeAccountsReceivableMember2020-06-282020-09-260000093556us-gaap:TradeAccountsReceivableMember2020-06-282020-09-260000093556us-gaap:TradeAccountsReceivableMember2020-09-260000093556us-gaap:NotesReceivableMember2020-06-270000093556srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:NotesReceivableMember2020-06-270000093556us-gaap:NotesReceivableMemberus-gaap:CostOfSalesMember2020-06-282020-09-260000093556us-gaap:NotesReceivableMember2020-06-282020-09-260000093556us-gaap:NotesReceivableMember2020-09-260000093556srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-06-270000093556us-gaap:CostOfSalesMember2020-06-282020-09-260000093556us-gaap:TradeAccountsReceivableMember2019-12-280000093556srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:TradeAccountsReceivableMember2019-12-280000093556us-gaap:CostOfSalesMemberus-gaap:TradeAccountsReceivableMember2019-12-292020-09-260000093556us-gaap:TradeAccountsReceivableMember2019-12-292020-09-260000093556us-gaap:NotesReceivableMember2019-12-280000093556srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:NotesReceivableMember2019-12-280000093556us-gaap:NotesReceivableMemberus-gaap:CostOfSalesMember2019-12-292020-09-260000093556us-gaap:NotesReceivableMember2019-12-292020-09-260000093556us-gaap:CostOfSalesMember2019-12-292020-09-2600000935562021-10-032021-10-020000093556swk:MTDMember2020-08-012021-07-310000093556swk:ExcelIndustriesMember2021-09-122021-09-120000093556swk:ConsolidatedAerospaceManufacturingCAMMember2020-02-242020-02-240000093556swk:ConsolidatedAerospaceManufacturingCAMMember2020-02-240000093556swk:ConsolidatedAerospaceManufacturingCAMMember2020-11-012020-11-300000093556swk:ConsolidatedAerospaceManufacturingCAMMember2021-01-022021-01-020000093556us-gaap:TradeNamesMemberswk:ConsolidatedAerospaceManufacturingCAMMember2020-02-240000093556us-gaap:CustomerRelationshipsMemberswk:ConsolidatedAerospaceManufacturingCAMMember2020-02-24swk:Acquisition00000935562019-12-292021-01-020000093556swk:IndividuallyImmaterialBusinessAcquisitionIn2020Member2019-12-292021-01-020000093556swk:IndividuallyImmaterialBusinessAcquisitionIn2020Member2021-01-020000093556swk:ToolsStorageMember2021-01-020000093556swk:IndustrialSegmentMember2021-01-020000093556swk:SecuritiesIndustryMember2021-01-020000093556swk:ToolsStorageMember2021-01-032021-10-020000093556swk:IndustrialSegmentMember2021-01-032021-10-020000093556swk:SecuritiesIndustryMember2021-01-032021-10-020000093556swk:ToolsStorageMember2021-10-020000093556swk:IndustrialSegmentMember2021-10-020000093556swk:SecuritiesIndustryMember2021-10-020000093556swk:Notes2Point3PercentDuein2026Member2021-10-020000093556swk:Notes2Point3PercentDuein2026Member2021-01-032021-10-020000093556swk:Notes2Point3PercentDuein2026Member2021-01-020000093556swk:Notes7Point05PercentDue2028Member2021-10-020000093556swk:Notes7Point05PercentDue2028Member2021-01-032021-10-020000093556swk:Notes7Point05PercentDue2028Member2021-01-020000093556swk:Notes4Point25PercentDue2028Member2021-10-020000093556swk:Notes4Point25PercentDue2028Member2021-01-032021-10-020000093556swk:Notes4Point25PercentDue2028Member2021-01-020000093556swk:Notes2Point30PercentDue2030Member2021-10-020000093556swk:Notes2Point30PercentDue2030Member2021-01-032021-10-020000093556swk:Notes2Point30PercentDue2030Member2021-01-020000093556swk:Notes5Point20PercentDue2040Member2021-10-020000093556swk:Notes5Point20PercentDue2040Member2021-01-032021-10-020000093556swk:Notes5Point20PercentDue2040Member2021-01-020000093556swk:Notes4Point85PercentDue2048Member2021-10-020000093556swk:Notes4Point85PercentDue2048Member2021-01-032021-10-020000093556swk:Notes4Point85PercentDue2048Member2021-01-020000093556swk:Notes2Point75PercentDue2050Member2021-10-020000093556swk:Notes2Point75PercentDue2050Member2021-01-032021-10-020000093556swk:Notes2Point75PercentDue2050Member2021-01-020000093556swk:Notes4Point0PercentDuein2060Memberus-gaap:JuniorSubordinatedDebtMember2021-10-020000093556swk:Notes4Point0PercentDuein2060Member2021-10-020000093556swk:Notes4Point0PercentDuein2060Member2021-01-032021-10-020000093556swk:Notes4Point0PercentDuein2060Memberus-gaap:JuniorSubordinatedDebtMember2021-01-020000093556us-gaap:CommercialPaperMember2021-10-020000093556us-gaap:CommercialPaperMemberus-gaap:SubsequentEventMember2021-10-310000093556swk:EuroDenominatedCommercialpaperMember2021-01-020000093556swk:EuroDenominatedCommercialpaperMember2021-10-020000093556swk:A5YearCreditFacilityMember2021-08-310000093556swk:A5YearCreditFacilityMember2021-09-300000093556swk:A5YearCreditFacilityMember2021-10-020000093556swk:CommittedCreditFacilityMember2021-09-3000000935562021-09-300000093556swk:A5YearCreditFacilityMember2021-01-020000093556swk:A2018CreditAgreementMember2021-09-300000093556swk:A2020CreditAgreementMember2021-09-300000093556swk:A2020CreditAgreementMember2021-01-020000093556swk:A2020CreditAgreementMember2021-10-020000093556us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:CashFlowHedgingMember2021-10-020000093556us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:CashFlowHedgingMember2021-01-020000093556us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:AccruedLiabilitiesMemberus-gaap:InterestRateContractMemberus-gaap:CashFlowHedgingMember2021-10-020000093556us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:AccruedLiabilitiesMemberus-gaap:InterestRateContractMemberus-gaap:CashFlowHedgingMember2021-01-020000093556us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:CashFlowHedgingMember2021-10-020000093556us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:CashFlowHedgingMember2021-01-020000093556us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:AccruedLiabilitiesMemberus-gaap:CashFlowHedgingMember2021-10-020000093556us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:AccruedLiabilitiesMemberus-gaap:CashFlowHedgingMember2021-01-020000093556us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:CashFlowHedgingMember2021-10-020000093556us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:CashFlowHedgingMember2021-01-020000093556us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:CashFlowHedgingMember2021-10-020000093556us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:CashFlowHedgingMember2021-01-020000093556us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentAssetsMemberus-gaap:NetInvestmentHedgingMember2021-10-020000093556us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentAssetsMemberus-gaap:NetInvestmentHedgingMember2021-01-020000093556us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:AccruedLiabilitiesMemberus-gaap:NetInvestmentHedgingMember2021-10-020000093556us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:AccruedLiabilitiesMemberus-gaap:NetInvestmentHedgingMember2021-01-020000093556us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:NetInvestmentHedgingMember2021-10-020000093556us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:NetInvestmentHedgingMember2021-01-020000093556us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:NetInvestmentHedgingMember2021-10-020000093556us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:NetInvestmentHedgingMember2021-01-020000093556us-gaap:DesignatedAsHedgingInstrumentMember2021-10-020000093556us-gaap:DesignatedAsHedgingInstrumentMember2021-01-020000093556us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMember2021-10-020000093556us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMember2021-01-020000093556us-gaap:ForeignExchangeContractMemberus-gaap:AccruedLiabilitiesMemberus-gaap:NondesignatedMember2021-10-020000093556us-gaap:ForeignExchangeContractMemberus-gaap:AccruedLiabilitiesMemberus-gaap:NondesignatedMember2021-01-020000093556us-gaap:CashFlowHedgingMember2021-01-032021-10-020000093556us-gaap:CashFlowHedgingMember2019-12-292020-09-260000093556us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMemberus-gaap:CashFlowHedgingMember2021-07-042021-10-020000093556us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMemberus-gaap:CashFlowHedgingMember2021-07-042021-10-020000093556us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMemberus-gaap:CashFlowHedgingMember2021-01-032021-10-020000093556us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMemberus-gaap:CashFlowHedgingMember2021-01-032021-10-020000093556us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMemberus-gaap:CashFlowHedgingMember2020-06-282020-09-260000093556us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMemberus-gaap:CashFlowHedgingMember2020-06-282020-09-260000093556us-gaap:InterestExpenseMemberus-gaap:InterestRateContractMemberus-gaap:CashFlowHedgingMember2019-12-292020-09-260000093556us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMemberus-gaap:CashFlowHedgingMember2019-12-292020-09-260000093556us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2021-07-042021-10-020000093556us-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2021-07-042021-10-020000093556us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2021-01-032021-10-020000093556us-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2021-01-032021-10-020000093556us-gaap:InterestRateSwapMemberus-gaap:CostOfSalesMember2021-07-042021-10-020000093556us-gaap:InterestExpenseMemberus-gaap:InterestRateSwapMember2021-07-042021-10-020000093556us-gaap:InterestRateSwapMemberus-gaap:CostOfSalesMember2021-01-032021-10-020000093556us-gaap:InterestExpenseMemberus-gaap:InterestRateSwapMember2021-01-032021-10-020000093556us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2020-06-282020-09-260000093556us-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2020-06-282020-09-260000093556us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2019-12-292020-09-260000093556us-gaap:ForeignExchangeContractMemberus-gaap:InterestExpenseMember2019-12-292020-09-260000093556us-gaap:InterestRateSwapMemberus-gaap:CostOfSalesMember2020-06-282020-09-260000093556us-gaap:InterestExpenseMemberus-gaap:InterestRateSwapMember2020-06-282020-09-260000093556us-gaap:InterestRateSwapMemberus-gaap:CostOfSalesMember2019-12-292020-09-260000093556us-gaap:InterestExpenseMemberus-gaap:InterestRateSwapMember2019-12-292020-09-260000093556swk:ForwardInterestRateSwapOneMemberus-gaap:CashFlowHedgingMember2020-03-280000093556swk:ForwardInterestRateSwapOneMemberus-gaap:CashFlowHedgingMember2019-12-292020-03-280000093556us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2021-10-020000093556us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMember2021-01-020000093556us-gaap:ForeignExchangeForwardMemberus-gaap:CashFlowHedgingMember2021-10-020000093556us-gaap:ForeignExchangeForwardMemberus-gaap:CashFlowHedgingMember2021-01-020000093556us-gaap:ForeignExchangeForwardMemberus-gaap:SubsequentEventMemberus-gaap:CashFlowHedgingMember2021-10-310000093556us-gaap:FairValueHedgingMember2021-07-042021-10-020000093556us-gaap:FairValueHedgingMember2021-01-032021-10-020000093556us-gaap:FairValueHedgingMember2020-06-282020-09-260000093556us-gaap:FairValueHedgingMember2019-12-292020-09-260000093556us-gaap:LongTermDebtMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2021-10-020000093556us-gaap:LongTermDebtMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2021-01-020000093556us-gaap:ForeignExchangeContractMember2021-10-020000093556us-gaap:ForeignExchangeContractMember2021-01-020000093556us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2021-10-020000093556us-gaap:CurrencySwapMemberus-gaap:NetInvestmentHedgingMember2021-10-020000093556us-gaap:CurrencySwapMemberus-gaap:NetInvestmentHedgingMember2021-01-020000093556us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2021-01-032021-10-020000093556us-gaap:ForeignExchangeContractMemberus-gaap:NetInvestmentHedgingMember2019-12-292020-09-260000093556us-gaap:ForwardContractsMember2021-07-042021-10-020000093556us-gaap:OtherExpenseMemberus-gaap:ForwardContractsMember2021-07-042021-10-020000093556us-gaap:CurrencySwapMember2021-07-042021-10-020000093556us-gaap:OtherExpenseMemberus-gaap:CurrencySwapMember2021-07-042021-10-020000093556us-gaap:ForwardContractsMember2021-01-032021-10-020000093556us-gaap:OtherExpenseMemberus-gaap:ForwardContractsMember2021-01-032021-10-020000093556us-gaap:CurrencySwapMember2021-01-032021-10-020000093556us-gaap:OtherExpenseMemberus-gaap:CurrencySwapMember2021-01-032021-10-020000093556us-gaap:ForwardContractsMember2020-06-282020-09-260000093556us-gaap:OtherExpenseMemberus-gaap:ForwardContractsMember2020-06-282020-09-260000093556us-gaap:CurrencySwapMember2020-06-282020-09-260000093556us-gaap:OtherExpenseMemberus-gaap:CurrencySwapMember2020-06-282020-09-260000093556us-gaap:OtherExpenseMember2020-06-282020-09-260000093556us-gaap:ForwardContractsMember2019-12-292020-09-260000093556us-gaap:OtherExpenseMemberus-gaap:ForwardContractsMember2019-12-292020-09-260000093556us-gaap:CurrencySwapMember2019-12-292020-09-260000093556us-gaap:OtherExpenseMemberus-gaap:CurrencySwapMember2019-12-292020-09-260000093556us-gaap:OtherExpenseMember2019-12-292020-09-260000093556us-gaap:ForwardContractsMemberus-gaap:NondesignatedMember2021-10-020000093556us-gaap:ForwardContractsMemberus-gaap:NondesignatedMember2021-01-020000093556us-gaap:ForeignExchangeContractMemberswk:OtherNetMember2021-07-042021-10-020000093556us-gaap:ForeignExchangeContractMemberswk:OtherNetMember2021-01-032021-10-020000093556us-gaap:ForeignExchangeContractMemberswk:OtherNetMember2020-06-282020-09-260000093556us-gaap:ForeignExchangeContractMemberswk:OtherNetMember2019-12-292020-09-2600000935562015-03-012015-03-310000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2019Member2019-11-300000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2019Member2019-11-012019-11-300000093556us-gaap:SeriesDPreferredStockMemberswk:EquityUnitsAndCappedCallTransactionsCommencedIn2019Member2019-11-012019-11-300000093556swk:A2022PurchaseContractMemberMemberswk:EquityUnitsAndCappedCallTransactionsCommencedIn2019Member2019-11-012019-11-300000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2019Member2019-11-070000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2019Member2021-10-020000093556swk:A2019EquityUnitsMemberswk:EquityUnitsAndCappedCallTransactionsCommencedIn2019Member2019-11-300000093556swk:A2019EquityUnitsMemberswk:EquityUnitsAndCappedCallTransactionsCommencedIn2019Member2019-11-012019-11-300000093556swk:A2019EquityUnitsMemberswk:EquityUnitsAndCappedCallTransactionsCommencedIn2019Member2021-10-02swk:financial_institution0000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2017Memberus-gaap:SeriesCPreferredStockMember2021-01-032021-10-020000093556us-gaap:SeriesDPreferredStockMembersrt:MinimumMemberswk:EquityUnitsAndCappedCallTransactionsCommencedIn2019Member2019-11-012019-11-300000093556us-gaap:SeriesDPreferredStockMemberswk:EquityUnitsAndCappedCallTransactionsCommencedIn2019Membersrt:MaximumMember2019-11-012019-11-300000093556us-gaap:SeriesDPreferredStockMembersrt:MinimumMemberswk:EquityUnitsAndCappedCallTransactionsCommencedIn2019Member2021-01-032021-10-020000093556us-gaap:SeriesDPreferredStockMemberswk:EquityUnitsAndCappedCallTransactionsCommencedIn2019Membersrt:MaximumMember2021-01-032021-10-020000093556us-gaap:SeriesDPreferredStockMemberswk:EquityUnitsAndCappedCallTransactionsCommencedIn2019Member2021-01-032021-10-020000093556us-gaap:SeriesDPreferredStockMemberswk:EquityUnitsAndCappedCallTransactionsCommencedIn2019Memberus-gaap:CallOptionMember2021-01-032021-10-020000093556swk:A2019CappedCallMemberus-gaap:SeriesDPreferredStockMemberswk:EquityUnitsAndCappedCallTransactionsCommencedIn2019Member2021-01-032021-10-020000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2017Member2017-05-3100000935562017-05-012017-05-310000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2017Member2017-05-012017-05-3100000935562017-05-310000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2017Memberus-gaap:SeriesCPreferredStockMember2017-05-012017-05-310000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2017Memberus-gaap:CallOptionMember2017-05-012017-05-310000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2017Member2020-05-012020-05-310000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2017Memberus-gaap:SeriesCPreferredStockMember2020-05-152020-05-150000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2017Member2020-05-150000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2017Member2020-05-152020-05-150000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2017Memberus-gaap:SeriesCPreferredStockMembersrt:ScenarioForecastMember2023-05-152023-05-150000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2017Membersrt:ScenarioForecastMember2023-05-150000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2017Membersrt:ScenarioForecastMember2023-05-152023-05-150000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2017Member2020-05-3100000935562020-05-012020-05-31swk:counterparty0000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2017Membersrt:MinimumMemberus-gaap:SeriesCPreferredStockMember2017-05-012017-05-310000093556swk:EquityUnitsAndCappedCallTransactionsCommencedIn2017Memberus-gaap:SeriesCPreferredStockMembersrt:MaximumMember2017-05-012017-05-310000093556swk:CappedCallTransactionsCommencedIn2018Memberus-gaap:CommonStockMember2018-03-012018-03-310000093556swk:CappedCallTransactionsCommencedIn2018Memberus-gaap:CommonStockMemberus-gaap:CallOptionMember2018-03-012018-03-310000093556swk:CappedCallTransactionsCommencedIn2018Memberus-gaap:CommonStockMember2020-02-290000093556swk:CappedCallTransactionsCommencedIn2018Memberus-gaap:CommonStockMember2020-02-012020-02-290000093556swk:CappedCallTransactionsCommencedIn2018Membersrt:MinimumMemberus-gaap:SeriesCPreferredStockMember2020-06-092020-06-090000093556swk:CappedCallTransactionsCommencedIn2018Memberus-gaap:CommonStockMembersrt:MaximumMember2020-06-092020-06-090000093556swk:CappedCallTransactionsCommencedIn2018Memberus-gaap:SeriesCPreferredStockMember2020-06-092020-06-090000093556swk:CappedCallTransactionsCommencedIn2018Memberus-gaap:CommonStockMember2021-04-042021-07-030000093556us-gaap:AccumulatedTranslationAdjustmentMember2021-01-020000093556us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-020000093556us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-020000093556us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-020000093556us-gaap:AccumulatedTranslationAdjustmentMember2021-01-032021-10-020000093556us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-032021-10-020000093556us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-032021-10-020000093556us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-032021-10-020000093556us-gaap:AccumulatedTranslationAdjustmentMember2021-10-020000093556us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-10-020000093556us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-10-020000093556us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-10-020000093556us-gaap:AccumulatedTranslationAdjustmentMember2019-12-280000093556us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2019-12-280000093556us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2019-12-280000093556us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-12-280000093556us-gaap:AccumulatedTranslationAdjustmentMember2019-12-292020-09-260000093556us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2019-12-292020-09-260000093556us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2019-12-292020-09-260000093556us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-12-292020-09-260000093556us-gaap:AccumulatedTranslationAdjustmentMember2020-09-260000093556us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-09-260000093556us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-09-260000093556us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-09-260000093556us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-032021-10-020000093556us-gaap:AccumulatedGainLossCashFlowHedgeIncludingNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-12-292020-09-260000093556us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberswk:AccumulatedNetInvestmentHedgeGainLossIncludingPortionAttributableToNoncontrollingInterestMember2021-01-032021-10-020000093556us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberswk:AccumulatedNetInvestmentHedgeGainLossIncludingPortionAttributableToNoncontrollingInterestMember2019-12-292020-09-260000093556us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceIncludingPortionAttributableToNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-032021-10-020000093556us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceIncludingPortionAttributableToNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-12-292020-09-260000093556swk:AccumulatedDefinedBenefitPlansAdjustmentSettlementIncludingPortionAttributableToNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-032021-10-020000093556swk:AccumulatedDefinedBenefitPlansAdjustmentSettlementIncludingPortionAttributableToNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-12-292020-09-260000093556us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-032021-10-020000093556us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2019-12-292020-09-260000093556us-gaap:PensionPlansDefinedBenefitMembercountry:US2021-07-042021-10-020000093556us-gaap:PensionPlansDefinedBenefitMembercountry:US2020-06-282020-09-260000093556us-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2021-07-042021-10-020000093556us-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2020-06-282020-09-260000093556us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-07-042021-10-020000093556us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-06-282020-09-260000093556us-gaap:PensionPlansDefinedBenefitMembercountry:US2021-01-032021-10-020000093556us-gaap:PensionPlansDefinedBenefitMembercountry:US2019-12-292020-09-260000093556us-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2021-01-032021-10-020000093556us-gaap:ForeignPlanMemberus-gaap:PensionPlansDefinedBenefitMember2019-12-292020-09-260000093556us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-01-032021-10-020000093556us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2019-12-292020-09-260000093556us-gaap:FairValueMeasurementsRecurringMember2021-10-020000093556us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-10-020000093556us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-10-020000093556us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-10-020000093556us-gaap:FairValueInputsLevel2Member2021-10-020000093556us-gaap:FairValueMeasurementsRecurringMember2021-01-020000093556us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-01-020000093556us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-01-020000093556us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-01-020000093556us-gaap:FairValueInputsLevel2Member2021-01-020000093556us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-10-020000093556us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-10-020000093556us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-01-020000093556us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-01-020000093556srt:MinimumMemberswk:CraftsmanMember2017-03-310000093556swk:CraftsmanMembersrt:MaximumMember2017-03-310000093556swk:CraftsmanMember2021-10-020000093556swk:CraftsmanMember2021-01-020000093556swk:COVID19Member2019-12-292020-09-260000093556us-gaap:EmployeeSeveranceMember2021-01-020000093556us-gaap:EmployeeSeveranceMember2021-01-032021-10-020000093556us-gaap:EmployeeSeveranceMember2021-10-020000093556us-gaap:FacilityClosingMember2021-01-020000093556us-gaap:FacilityClosingMember2021-01-032021-10-020000093556us-gaap:FacilityClosingMember2021-10-020000093556us-gaap:CorporateNonSegmentMember2021-01-032021-10-020000093556swk:ToolsStorageMember2021-07-042021-10-020000093556swk:SecuritiesIndustryMember2021-07-042021-10-020000093556us-gaap:CorporateNonSegmentMember2021-07-042021-10-02swk:segment0000093556swk:ToolsStorageMemberus-gaap:OperatingSegmentsMember2021-07-042021-10-020000093556swk:ToolsStorageMemberus-gaap:OperatingSegmentsMember2020-06-282020-09-260000093556swk:ToolsStorageMemberus-gaap:OperatingSegmentsMember2021-01-032021-10-020000093556swk:ToolsStorageMemberus-gaap:OperatingSegmentsMember2019-12-292020-09-260000093556swk:IndustrialSegmentMemberus-gaap:OperatingSegmentsMember2021-07-042021-10-020000093556swk:IndustrialSegmentMemberus-gaap:OperatingSegmentsMember2020-06-282020-09-260000093556swk:IndustrialSegmentMemberus-gaap:OperatingSegmentsMember2021-01-032021-10-020000093556swk:IndustrialSegmentMemberus-gaap:OperatingSegmentsMember2019-12-292020-09-260000093556swk:SecuritiesIndustryMemberus-gaap:OperatingSegmentsMember2021-07-042021-10-020000093556swk:SecuritiesIndustryMemberus-gaap:OperatingSegmentsMember2020-06-282020-09-260000093556swk:SecuritiesIndustryMemberus-gaap:OperatingSegmentsMember2021-01-032021-10-020000093556swk:SecuritiesIndustryMemberus-gaap:OperatingSegmentsMember2019-12-292020-09-260000093556us-gaap:OperatingSegmentsMember2021-07-042021-10-020000093556us-gaap:OperatingSegmentsMember2020-06-282020-09-260000093556us-gaap:OperatingSegmentsMember2021-01-032021-10-020000093556us-gaap:OperatingSegmentsMember2019-12-292020-09-260000093556swk:IndustrialSegmentMember2021-07-042021-10-020000093556swk:IndustrialSegmentMember2020-06-282020-09-260000093556swk:IndustrialSegmentMember2019-12-292020-09-260000093556swk:SecuritiesIndustryMember2020-06-282020-09-260000093556swk:SecuritiesIndustryMember2019-12-292020-09-260000093556swk:IndustrialSegmentMemberswk:EngineeredFasteningMember2021-07-042021-10-020000093556swk:IndustrialSegmentMemberswk:EngineeredFasteningMember2020-06-282020-09-260000093556swk:IndustrialSegmentMemberswk:EngineeredFasteningMember2021-01-032021-10-020000093556swk:IndustrialSegmentMemberswk:EngineeredFasteningMember2019-12-292020-09-260000093556swk:IndustrialSegmentMemberswk:InfrastructurebusinessMember2021-07-042021-10-020000093556swk:IndustrialSegmentMemberswk:InfrastructurebusinessMember2020-06-282020-09-260000093556swk:IndustrialSegmentMemberswk:InfrastructurebusinessMember2021-01-032021-10-020000093556swk:IndustrialSegmentMemberswk:InfrastructurebusinessMember2019-12-292020-09-260000093556swk:ToolsStorageMemberus-gaap:OperatingSegmentsMember2021-10-020000093556swk:ToolsStorageMemberus-gaap:OperatingSegmentsMember2021-01-020000093556swk:IndustrialSegmentMemberus-gaap:OperatingSegmentsMember2021-10-020000093556swk:IndustrialSegmentMemberus-gaap:OperatingSegmentsMember2021-01-020000093556swk:SecuritiesIndustryMemberus-gaap:OperatingSegmentsMember2021-10-020000093556swk:SecuritiesIndustryMemberus-gaap:OperatingSegmentsMember2021-01-020000093556us-gaap:OperatingSegmentsMember2021-10-020000093556us-gaap:OperatingSegmentsMember2021-01-020000093556us-gaap:CorporateNonSegmentMember2021-10-020000093556us-gaap:CorporateNonSegmentMember2021-01-020000093556country:US2021-07-042021-10-020000093556country:US2020-06-282020-09-260000093556country:US2021-01-032021-10-020000093556country:US2019-12-292020-09-260000093556country:CA2021-07-042021-10-020000093556country:CA2020-06-282020-09-260000093556country:CA2021-01-032021-10-020000093556country:CA2019-12-292020-09-260000093556srt:LatinAmericaMember2021-07-042021-10-020000093556srt:LatinAmericaMember2020-06-282020-09-260000093556srt:LatinAmericaMember2021-01-032021-10-020000093556srt:LatinAmericaMember2019-12-292020-09-260000093556country:FR2021-07-042021-10-020000093556country:FR2020-06-282020-09-260000093556country:FR2021-01-032021-10-020000093556country:FR2019-12-292020-09-260000093556swk:OtherEuropeMember2021-07-042021-10-020000093556swk:OtherEuropeMember2020-06-282020-09-260000093556swk:OtherEuropeMember2021-01-032021-10-020000093556swk:OtherEuropeMember2019-12-292020-09-260000093556srt:AsiaMember2021-07-042021-10-020000093556srt:AsiaMember2020-06-282020-09-260000093556srt:AsiaMember2021-01-032021-10-020000093556srt:AsiaMember2019-12-292020-09-26swk:site0000093556us-gaap:PropertyPlantAndEquipmentOtherTypesMember2021-10-020000093556us-gaap:PropertyPlantAndEquipmentOtherTypesMember2021-01-020000093556us-gaap:PropertyPlantAndEquipmentOtherTypesMembersrt:MinimumMember2021-10-022021-10-020000093556us-gaap:PropertyPlantAndEquipmentOtherTypesMembersrt:MaximumMember2021-10-022021-10-020000093556swk:CentredaleSiteMember2021-10-022021-10-02swk:Company0000093556swk:LowerPassaicCooperatingPartiesGroupMember2007-05-012007-05-31utr:mi00000935562007-05-012007-05-3100000935562014-04-112014-04-1100000935562015-04-012015-04-3000000935562016-03-042016-03-04swk:cubic_yard00000935562016-03-312016-03-3100000935562017-03-302017-03-30swk:Hazardous_Substance00000935562017-05-172017-05-1700000935562018-06-302018-06-30swk:municipality00000935562021-02-242021-02-2400000935562018-10-102018-10-100000093556srt:MinimumMember2020-12-042020-12-040000093556srt:MaximumMember2020-12-042020-12-0400000935562021-04-142021-04-140000093556swk:KerrMcGeeChemicalSiteMember2021-10-02swk:distribution_centerswk:office_building0000093556us-gaap:PropertyLeaseGuaranteeMembersrt:MinimumMember2021-01-032021-10-020000093556us-gaap:PropertyLeaseGuaranteeMembersrt:MaximumMember2021-01-032021-10-020000093556us-gaap:PropertyLeaseGuaranteeMember2021-10-020000093556us-gaap:StandbyLettersOfCreditMembersrt:MaximumMember2021-01-032021-10-020000093556us-gaap:StandbyLettersOfCreditMember2021-10-020000093556swk:CommercialCustomerFinancingMembersrt:MaximumMember2021-01-032021-10-020000093556swk:CommercialCustomerFinancingMember2021-10-020000093556swk:SmallBusinessinSecuritySegmentMember2020-11-020000093556swk:SmallBusinessinSecuritySegmentMember2020-11-022020-11-020000093556swk:SmallBusinessinSecuritySegmentMember2020-09-272021-01-020000093556swk:SmallBusinessinSecuritySegmentMemberswk:OilGasProductLineMember2020-09-272021-01-020000093556swk:SmallBusinessinSecuritySegmentMemberswk:CommercialElectronicSecurityMember2020-09-272021-01-020000093556swk:SmallBusinessinSecuritySegmentMemberswk:CommercialElectronicSecurityMember2021-01-032021-04-030000093556swk:SmallBusinessinSecuritySegmentMember2020-06-282020-09-260000093556swk:SmallBusinessinSecuritySegmentMember2019-12-292020-09-26

SWK-20211002_G1.JPG
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 2, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from [            ] to [            ]

Commission File Number 001-05224
STANLEY BLACK & DECKER, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
CT   06-0548860
(STATE OR OTHER JURISDICTION OF
INCORPORATION OR ORGANIZATION)
  (I.R.S. EMPLOYER
IDENTIFICATION NUMBER)
1000 STANLEY DRIVE
NEW BRITAIN, CT 06053
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES AND ZIP CODE)

REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA CODE 860 225-5111
Securities registered pursuant to Section 12(b) of the Act:
Title Of Each Class Trading Symbol Name Of Each Exchange On Which Registered
Common Stock $2.50 Par Value per Share SWK New York Stock Exchange
Corporate Units SWT New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes     No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer þ    Accelerated Filer ¨
Non-Accelerated Filer ¨    Smaller Reporting Company
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  No
163,033,211 shares of the registrant’s common stock were outstanding as of November 8, 2021.



TABLE OF CONTENTS
 


PART I — FINANCIAL INFORMATION
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
THREE AND NINE MONTHS ENDED OCTOBER 2, 2021 AND SEPTEMBER 26, 2020
(Unaudited, Millions of Dollars, Except Share and Per Share Amounts)
 
  Third Quarter Year-to-Date
  2021 2020 2021 2020
Net Sales $ 4,263.2  $ 3,850.2  $ 12,761.2  $ 10,127.0 
Costs and Expenses
Cost of sales $ 2,871.7  $ 2,473.9  $ 8,261.8  $ 6,714.9 
Selling, general and administrative 895.2  731.3  2,645.1  2,182.1 
Provision for credit losses 3.6  7.6  8.2  37.3 
Other, net 39.5  74.3  152.3  236.1 
Loss on sales of businesses   —  3.6  — 
Restructuring charges 5.8  42.8  22.1  74.6 
Interest expense 45.8  52.7  139.8  169.7 
Interest income (2.3) (2.0) (7.9) (14.6)
$ 3,859.3  $ 3,380.6  $ 11,225.0  $ 9,400.1 
Earnings before income taxes and equity interest 403.9  469.6  1,536.2  726.9 
Income taxes (0.4) 78.4  192.8  (26.0)
Net earnings before equity interest $ 404.3  $ 391.2  $ 1,343.4  $ 752.9 
Share of net earnings of equity method investment 9.8  4.0  16.0  14.1 
Net earnings $ 414.1  $ 395.2  $ 1,359.4  $ 767.0 
Less: Net (losses) earnings attributable to non-controlling interests (0.1) 0.3  (1.7) 0.5 
Net earnings attributable to Stanley Black & Decker, Inc. $ 414.2  $ 394.9  $ 1,361.1  $ 766.5 
Less: Preferred stock dividends   9.4  14.2  14.1 
Add: Contract adjustment payments accretion 0.4  —  0.9  — 
Net Earnings Attributable to Common Shareowners $ 414.6  $ 385.5  $ 1,347.8  $ 752.4 
Total Comprehensive Income Attributable to Common Shareowners $ 326.8  $ 465.0  $ 1,186.7  $ 675.9 
Earnings per share of common stock:
Basic $ 2.60  $ 2.47  $ 8.50  $ 4.91 
Diluted $ 2.51  $ 2.44  $ 8.17  $ 4.86 
Dividends per share of common stock $ 0.79  $ 0.70  $ 2.19  $ 2.08 
Weighted-average shares outstanding (in thousands):
Basic 159,444  156,370  158,494  153,345 
Diluted 165,336  157,971  164,900  154,759 
See Notes to Unaudited Condensed Consolidated Financial Statements.


3

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
OCTOBER 2, 2021 AND JANUARY 2, 2021
(Unaudited, Millions of Dollars, Except Share and Per Share Amounts) 
October 2,
2021
January 2,
2021
ASSETS
Current Assets
Cash and cash equivalents $ 292.7  $ 1,381.0 
Accounts and notes receivable, net 1,989.0  1,512.2 
Inventories, net 4,134.4  2,737.4 
Prepaid expenses 419.3  370.7 
Other current assets 41.0  34.7 
Total Current Assets 6,876.4  6,036.0 
Property, plant and equipment, net 2,051.3  2,053.8 
Goodwill 9,944.1  10,038.1 
Intangibles, net 3,892.9  4,055.4 
Other assets 1,561.9  1,383.0 
Total Assets $ 24,326.6  $ 23,566.3 
LIABILITIES AND SHAREOWNERS' EQUITY
Current Liabilities
Short-term borrowings $ 152.2  $ 1.5 
Accounts payable 3,055.7  2,446.4 
Accrued expenses 2,372.9  2,110.4 
Total Current Liabilities 5,580.8  4,558.3 
Long-term debt 4,246.9  4,245.4 
Deferred taxes 560.7  568.0 
Post-retirement benefits 573.3  642.6 
Other liabilities 2,046.7  2,485.6 
Commitments and Contingencies (Notes R and S)
Shareowners’ Equity
Stanley Black & Decker, Inc. Shareowners’ Equity
Preferred stock, without par value:
      Authorized 10,000,000 shares in 2021 and 2020
      Issued and outstanding 750,000 shares in 2021 and 1,500,000 shares in 2020
750.0  1,500.0 
Common stock, par value $2.50 per share:
      Authorized 300,000,000 shares in 2021 and 2020
      Issued 176,902,738 shares in 2021 and 2020
442.3  442.3 
Retained earnings 8,546.8  7,547.6 
Additional paid in capital 4,842.3  4,832.7 
Accumulated other comprehensive loss (1,874.8) (1,713.7)
12,706.6  12,608.9 
Less: cost of common stock in treasury (1,390.3) (1,549.3)
Stanley Black & Decker, Inc. Shareowners’ Equity 11,316.3  11,059.6 
Non-controlling interests 1.9  6.8 
Total Shareowners’ Equity 11,318.2  11,066.4 
Total Liabilities and Shareowners’ Equity $ 24,326.6  $ 23,566.3 
See Notes to Unaudited Condensed Consolidated Financial Statements.
4

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE AND NINE MONTHS ENDED OCTOBER 2, 2021 AND SEPTEMBER 26, 2020
(Unaudited, Millions of Dollars)
Third Quarter Year-to-Date
  2021 2020 2021 2020
OPERATING ACTIVITIES
Net earnings $ 414.1  $ 395.2  $ 1,359.4  $ 767.0 
Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation and amortization of property, plant and equipment 93.9  94.1  279.3  281.1 
Amortization of intangibles 50.3  51.2  151.3  150.0 
Loss on sales of businesses   —  3.6  — 
Share of net earnings of equity method investment (9.8) (4.0) (16.0) (14.1)
Changes in working capital (456.7) 51.6  (1,373.5) (667.5)
Changes in other assets and liabilities (87.2) 89.1  (112.9) 83.7 
Cash provided by operating activities 4.6  677.2  291.2  600.2 
INVESTING ACTIVITIES
Capital and software expenditures (129.1) (62.1) (322.5) (209.5)
Business acquisitions, net of cash acquired (9.3) 1.4  (10.8) (1,300.6)
Purchases of investments (3.5) (1.0) (14.5) (14.6)
   Net investment hedge settlements (1.3) —  (53.9) 41.0 
Other 0.2  (2.1) 2.0  (0.6)
Cash used in investing activities (143.0) (63.8) (399.7) (1,484.3)
FINANCING ACTIVITIES
Proceeds from debt issuances, net of fees   —    1,482.6 
Stock purchase contract fees (9.9) (9.8) (29.5) (49.9)
Net short-term borrowings (repayments) 149.6  (712.9) 150.7  (341.8)
Proceeds from issuances of common stock 7.7  42.5  108.1  843.8 
Purchases of common stock for treasury (2.8) (1.9) (20.1) (11.2)
Redemption and conversion of preferred stock   —  (750.0) — 
Craftsman deferred purchase price   —    (250.0)
Craftsman contingent consideration (7.6) (6.0) (21.5) (39.0)
Termination of interest rate swaps   —    (20.5)
Cash dividends on common stock (126.0) (109.6) (347.7) (321.0)
Cash dividends on preferred stock   (9.4) (18.9) (9.4)
Other (3.2) (3.1) (11.6) (10.1)
Cash provided by (used in) financing activities 7.8  (810.2) (940.5) 1,273.5 
Effect of exchange rate changes on cash, cash equivalents and restricted cash (15.5) 16.3  (45.9) (7.9)
Change in cash, cash equivalents and restricted cash (146.1) (180.5) (1,094.9) 381.5 
Cash, cash equivalents and restricted cash, beginning of period 449.5  876.6  1,398.3  314.6 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD $ 303.4  $ 696.1  $ 303.4  $ 696.1 

The following table provides a reconciliation of the cash, cash equivalents and restricted cash balances as of October 2, 2021 and January 2, 2021, as shown above:
October 2, 2021 January 2, 2021
Cash and cash equivalents $ 292.7  $ 1,381.0 
Restricted cash included in Other current assets 10.7  17.3 
Cash, cash equivalents and restricted cash $ 303.4  $ 1,398.3 
See Notes to Unaudited Condensed Consolidated Financial Statements.
5

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS' EQUITY
THREE AND NINE MONTHS ENDED OCTOBER 2, 2021 AND SEPTEMBER 26, 2020
(Unaudited, Millions of Dollars, Except Share and Per Share Amounts)
Preferred
Stock
Common
Stock
Additional
Paid In
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Treasury
Stock
Non-
Controlling
Interests
Shareowners’
Equity
Balance January 2, 2021 $ 1,500.0  $ 442.3  $ 4,832.7  $ 7,547.6  $ (1,713.7) $ (1,549.3) $ 6.8  $ 11,066.4 
Net earnings (loss) —  —  —  487.4  —  —  (0.6) 486.8 
Other comprehensive loss —  —  —  —  (97.7) —  —  (97.7)
Cash dividends declared — $0.70 per common share
—  —  —  (110.1) —  —  —  (110.1)
Cash dividends declared — $50.00 per annum per preferred share
—  —  —  (9.4) —  —  —  (9.4)
Issuance of common stock (848,275 shares)
—  —  (12.7) —  —  76.8  —  64.1 
Repurchase of common stock (80,310 shares)
—  —  —  —  —  (14.9) —  (14.9)
Non-controlling interest buyout —  —  (2.8) —  —  —  (3.2) (6.0)
Stock-based compensation related —  —  25.6  —  —  —  —  25.6 
Balance April 3, 2021 $ 1,500.0  $ 442.3  $ 4,842.8  $ 7,915.5  $ (1,811.4) $ (1,487.4) $ 3.0  $ 11,404.8 
Net earnings (loss) —  —  —  459.5  —  —  (1.0) 458.5 
Other comprehensive income —  —  —  —  24.4  —  —  24.4 
Cash dividends declared — $0.70 per common share
—  —  —  (111.6) —  —  —  (111.6)
Cash dividends declared — $50.00 per annum per preferred share
—  —  —  (4.8) —  —  —  (4.8)
Issuance of common stock (305,153 shares)
—  —  8.1  —  —  28.2  —  36.3 
Repurchase of common stock (355,751 shares)
—  —  72.2  —  —  (74.6) —  (2.4)
Redemption and conversion of preferred stock (1,469,055 shares)
(750.0) —  (137.3) —  —  137.3  —  (750.0)
Stock-based compensation related —  —  30.8  —  —  —  —  30.8 
Balance July 3, 2021 $ 750.0  $ 442.3  $ 4,816.6  $ 8,258.6  $ (1,787.0) $ (1,396.5) $ 2.0  $ 11,086.0 
Net earnings (loss) —  —  —  414.2  —  —  (0.1) 414.1 
Other comprehensive loss —  —  —  —  (87.8) —  —  (87.8)
Cash dividends declared — $0.79 per common share
—  —  —  (126.0) —  —  —  (126.0)
Issuance of common stock (96,462 shares)
—  —  (1.3) —  —  9.0  —  7.7 
Repurchase of common stock (14,153 shares)
—  —  —  —  —  (2.8) —  (2.8)
Stock-based compensation related —  —  27.0  —  —  —  —  27.0 
Balance October 2, 2021 $ 750.0  $ 442.3  $ 4,842.3  $ 8,546.8  $ (1,874.8) $ (1,390.3) $ 1.9  $ 11,318.2 

6

Preferred
Stock
Common
Stock
Additional
Paid In
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
ESOP Treasury
Stock
Non-
Controlling
Interests
Shareowners’
Equity
Balance December 28, 2019 $ 1,500.0  $ 442.3  $ 4,492.9  $ 6,772.8  $ (1,884.6) $ (2.3) $ (2,184.8) $ 5.9  $ 9,142.2 
Net earnings (loss) —  —  —  133.2  —  —  —  (0.1) 133.1 
Other comprehensive loss —  —  —  —  (258.8) —  —  —  (258.8)
Cash dividends declared — $0.69 per common share
—  —  —  (105.6) —  —  —  —  (105.6)
Issuance of common stock (744,339 shares)
—  —  (20.5) —  —  —  65.1  —  44.6 
Repurchase of common stock (125,294 shares)
—  —  10.0  —  —  —  (19.0) —  (9.0)
Preferred stock issuance costs —  —  (1.2) —  —  —  —  —  (1.2)
Stock-based compensation related —  —  15.4  —  —  —  —  —  15.4 
ESOP —  —  —  —  —  2.3  —  —  2.3 
Adoption of ASU 2016-13 —  —  —  (3.8) —  —  —  —  (3.8)
Balance March 28, 2020 $ 1,500.0  $ 442.3  $ 4,496.6  $ 6,796.6  $ (2,143.4) $   $ (2,138.7) $ 5.8  $ 8,959.2 
Net earnings —  —  —  238.4  —  —  —  0.3  238.7 
Other comprehensive income —  —  —  —  102.8  —  —  —  102.8 
Cash dividends declared — $0.69 per common share
—  —  —  (105.8) —  —  —  —  (105.8)
Cash dividends declared — $50.00 per annum per preferred share
—  —  —  (4.7) —  —  —  —  (4.7)
Issuance of common stock (5,538,106 shares)
—  —  257.6  —  —  —  499.1  —  756.7 
Repurchase of common stock (4,227 shares)
—  —  —  —  —  —  (0.3) —  (0.3)
Preferred stock issuance costs —  —  (2.2) —  —  —  —  —  (2.2)
Stock-based compensation related —  —  21.2  —  —  —  —  —  21.2 
Balance June 27, 2020 $ 1,500.0  $ 442.3  $ 4,773.2  $ 6,924.5  $ (2,040.6) $   $ (1,639.9) $ 6.1  $ 9,965.6 
Net earnings —  —  —  394.9  —  —  —  0.3  395.2 
Other comprehensive income —  —  —  —  79.5  —  —  —  79.5 
Cash dividends declared — $0.70 per common share
—  —  —  (109.6) —  —  —  —  (109.6)
Cash dividends declared — $50.00 per annum per preferred share
—  —  —  (9.4) —  —  —  —  (9.4)
Issuance of common stock (529,998 shares)
—  —  (5.3) —  —  —  47.8  —  42.5 
Repurchase of common stock (15,403 shares)
—  —  —  —  —  —  (1.9) —  (1.9)
Preferred stock issuance costs —  —  (0.5) —  —  —  —  —  (0.5)
Stock-based compensation related —  —  17.9  —  —  —  —  —  17.9 
Balance September 26, 2020 $ 1,500.0  $ 442.3  $ 4,785.3  $ 7,200.4  $ (1,961.1) $   $ (1,594.0) $ 6.4  $ 10,379.3 
See Notes to Unaudited Condensed Consolidated Financial Statements.
7

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
OCTOBER 2, 2021

A.    SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (hereinafter referred to as “generally accepted accounting principles”) for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations for the interim periods have been included and are of a normal, recurring nature. Operating results for the three and nine months ended October 2, 2021 are not necessarily indicative of the results that may be expected for a full fiscal year. For further information, refer to the consolidated financial statements and footnotes included in Stanley Black & Decker, Inc.’s (the “Company”) Form 10-K for the year ended January 2, 2021, and subsequent related filings with the Securities and Exchange Commission ("SEC").

In February 2020, the Company acquired Consolidated Aerospace Manufacturing, LLC (“CAM”), an industry-leading manufacturer of specialty fasteners and components for the aerospace and defense markets. The CAM 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.

On August 16, 2021, the Company agreed to acquire the remaining 80 percent ownership stake in MTD Holdings Inc. ("MTD"), a privately held global manufacturer of outdoor power equipment, for $1.6 billion in cash. The Company previously acquired a 20 percent interest in MTD in January 2019 for $234 million in cash. The Company is applying the equity method of accounting to the 20% investment in MTD. Upon closing of the remaining 80 percent ownership stake, the acquisition will be accounted for as a business combination using the acquisition method of accounting and consolidated into the Company's Tools & Storage segment. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the fourth quarter of 2021.

In November 2020, the Company sold its commercial electronic operations 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 the dates of sale in 2020.

Refer to Note F, Acquisitions and Investments, and Note T, Divestitures, for further discussion of these transactions.

The preparation of financial statements in conformity with generally accepted accounting principles 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.

Accounts And Notes Receivable, Net
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
8

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. 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.

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 in 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 Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"). For its customer contracts, 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 Security and Infrastructure businesses is generated from equipment leased to customers. 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. Within the Security business, the underlying asset typically has no value at termination of the customer lease, so no residual value asset is recorded in the financial statements. For Infrastructure business leases, underlying assets are assessed for functionality at termination of the lease and, if necessary, an impairment to the leased asset value is 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
9

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 sales agreement involves multiple performance obligations, each obligation is separately identified (including equipment lease obligations) 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.

Sales of security monitoring systems may have multiple performance obligations, including equipment, installation and monitoring or maintenance services. In most instances, the Company allocates the appropriate amount of consideration to each performance obligation based on the standalone selling price ("SSP") of the distinct goods or services performance obligation. In circumstances where SSP is not observable, the Company allocates the consideration for the performance obligations by utilizing one of the following methods: expected cost plus margin, the residual approach, or a mix of these estimation methods.

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’s contract sales for the installation of security intruder systems and other construction-related projects are generally recorded under the input method. The input method recognizes revenue on the basis of the Company’s efforts or inputs to the satisfaction of a performance obligation relative to the total inputs expected to satisfy that performance obligation. Revenue recognized on security contracts in process are based upon the allocated contract price and related total inputs of the project at completion. The extent of progress toward completion is generally measured using input methods based on labor metrics. Revisions to these estimates as contracts progress have the effect of increasing or decreasing profits each period. Provisions for anticipated losses are made in the period in which they become determinable. The revenues for monitoring and monitoring-related services are recognized as services are rendered over the contractual period.

The Company utilizes the output method for contract sales in the Oil & Gas product line. 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.

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, as appropriate, in the consolidated balance sheet 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 sheet.

Refer to Note D, Accounts and Notes Receivable, Net, for further discussion.

B.    NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS ADOPTED — In January 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). The new standard clarifies the interaction of accounting for the transition into and out of the equity method. The new standard also clarifies the accounting for measuring certain purchased options and forward contracts to acquire investments. The ASU is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company adopted this guidance in the first quarter of 2021 and it did not have a material impact on its consolidated financial statements.
10


In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740). The new standard simplifies the accounting for income taxes by removing certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation and calculating income taxes in interim periods. The new standard also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The ASU is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company adopted this standard in the first quarter of 2021 and it did not have a material impact on the Company’s consolidated financial statements.

RECENTLY ISSUED ACCOUNTING STANDARDS NOT YET ADOPTED — In October 2021, the FASB issued 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, Revenue from Contracts with Customers. 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 is currently evaluating this guidance to determine the impact it may have 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. 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 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. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The standard allows for either modified or full retrospective transition methods. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.

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 is currently evaluating these standards to determine whether it will apply the optional expedients and exceptions.
11

C.    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 three and nine months ended October 2, 2021 and September 26, 2020:
Third Quarter Year-to-Date
2021 2020 2021 2020
Numerator (in millions):
Net Earnings Attributable to Common Shareowners $ 414.6  $ 385.5  $ 1,347.8  $ 752.4 
Denominator (in thousands):
Basic weighted-average shares outstanding 159,444  156,370  158,494  153,345 
Dilutive effect of stock contracts and awards 5,892  1,601  6,406  1,414 
Diluted weighted-average shares outstanding 165,336  157,971  164,900  154,759 
Earnings per share of common stock:
Basic $ 2.60  $ 2.47  $ 8.50  $ 4.91 
Diluted $ 2.51  $ 2.44  $ 8.17  $ 4.86 
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):
Third Quarter Year-to-Date
2021 2020 2021 2020
Number of stock options 1,042  2,059  948  2,947 
In November 2019, the Company issued 7,500,000 Equity Units with a total notional value of $750.0 million. Each unit initially consists of 750,000 shares of convertible preferred stock ("Series D Preferred Stock") and forward stock purchase contracts. On and after November 15, 2022, the Series D Preferred Stock may be converted into common stock at the option of the holder. At the election of the Company, upon conversion, the Company may deliver cash, common stock, or a combination thereof. The conversion rate was initially 5.2263 shares of common stock per one share of Series D Preferred Stock, which was equivalent to an initial conversion price of approximately $191.34 per share of common stock. As of October 2, 2021, due to customary anti-dilution provisions, the conversion rate was 5.2301, equivalent to a conversion price of approximately $191.20 per share of common stock. The Series D Preferred Stock is excluded from the denominator of the diluted earnings per share calculation on the basis that the convertible preferred stock will be settled in cash except to the extent that the conversion value of the convertible preferred stock exceeds 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, if the Company elects to settle such excess in common shares, are included in the denominator of diluted earnings per share in periods in which they are dilutive. The shares related to the Series D Preferred Stock were anti-dilutive during certain months in 2021 and during the first nine months of 2020. Beginning in the third quarter of 2021, the Company is including the shares underlying the forward stock purchase contracts in the denominator of its diluted earnings per share calculation utilizing the if-converted method, which represents a correction of an error of previously applying the treasury stock method. The change is not material to the third quarter of 2021 or previously reported financial statements.
In May 2017, the Company issued 7,500,000 Equity Units with a total notional value of $750.0 million. Each unit initially consisted of 750,000 shares of convertible preferred stock ("Series C Preferred Stock") and forward stock purchase contracts. In May 2020, the Company successfully remarketed the Series C Preferred Stock, as described more fully in Note J, Equity Arrangements. The remarketing generated cash proceeds of $750.0 million which were applied to settle the holders' stock purchase contract obligations, resulting in the Company issuing 5,463,750 common shares. 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). In addition, holders had the option to convert the Series C Preferred Stock into common stock. In connection with the remarketing described above, the conversion rate was reset to 6.7352 shares of the Company's common stock per one share of 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 Series C Preferred Stock on June 3, 2021 (the “Redemption Date”) at $1,002.50 per share in cash (the “Redemption Price”), which was equal to 100% of
12

the liquidation preference of a share of Series C Preferred Stock, plus accumulated and unpaid dividends to, but excluding, the Redemption Date. If a holder elected to convert its shares of Series C Preferred Stock prior to the Redemption Date, the Company elected a combination settlement with a specified cash amount of $1,000 per share. In June 2021, the Company redeemed the 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 Redemption Date, the Series C Preferred Stock was excluded from the denominator of the diluted earnings per share calculation on the basis that the convertible preferred stock would be settled in cash except to the extent that the conversion value of the convertible preferred stock exceeded its liquidation preference. Therefore, 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. The shares related to the Series C Preferred Stock were anti-dilutive during certain months in 2020.
Refer to Note J, Equity Arrangements, for further discussion of the above transactions.

D.    ACCOUNTS AND NOTES RECEIVABLE, NET
(Millions of Dollars) October 2, 2021 January 2, 2021
Trade accounts receivable $ 1,816.0  $ 1,345.7 
Trade notes receivable 150.7  156.1 
Other accounts receivable 161.4  151.5 
Gross accounts and notes receivable $ 2,128.1  $ 1,653.3 
Allowance for credit losses (139.1) (141.1)
Accounts and notes receivable, net $ 1,989.0  $ 1,512.2 
Long-term receivables, net $ 138.0  $ 139.9 
Trade receivables are dispersed among a large number of retailers, distributors and industrial accounts in many countries. Adequate reserves have been established to cover expected credit losses. Long-term receivables, net, of $138.0 million and $139.9 million at October 2, 2021 and January 2, 2021, respectively, are reported within Other assets in the Condensed Consolidated Balance Sheets. The Company's financing receivables are predominantly related to certain security equipment sales-type leases with commercial businesses. As of October 2, 2021, the current portion of financing receivables within Trade notes receivable approximated $73.1 million. Generally, the Company retains legal title to any equipment under lease and holds the right to repossess such equipment in an event of default. All financing receivables are interest-bearing and the Company has not classified any financing receivables as held-for-sale. Interest income earned from financing receivables that are not delinquent is recorded on the effective interest method.

The changes in the allowance for credit losses for the three and nine months ended October 2, 2021 and September 26, 2020 are as follows:
(Millions of Dollars) Balance
July 3, 2021
Cumulative Effect Adjustment
(a)
Charged To Costs and Expenses Charged To Other Accounts
(b)
Deductions
(c)
Balance
October 2, 2021
Accounts receivable $ 126.4  $ —  $ 3.4  $ (2.6) $ (3.1) $ 124.1 
Notes receivable 14.8  —  0.2  —  —  15.0 
Total $ 141.2  $   $ 3.6  $ (2.6) $ (3.1) $ 139.1 

(Millions of Dollars) Balance
January 2, 2021
Cumulative Effect Adjustment
(a)
Charged To Costs and Expenses Charged To Other Accounts
(b)
Deductions
(c)
Balance
October 2, 2021
Accounts receivable $ 126.7  $ —  $ 7.6  $ (1.8) $ (8.4) $ 124.1 
Notes receivable 14.4  —  0.6  —  —  15.0 
Total $ 141.1  $   $ 8.2  $ (1.8) $ (8.4) $ 139.1 

13

(Millions of Dollars) Balance
June 27, 2020
Cumulative Effect Adjustment (a) Charged To Costs and Expenses Charged To Other Accounts
(b)
Deductions (c) Balance
September 26, 2020
Accounts receivable 122.9  —  7.6  2.3  (9.4) 123.4 
Notes receivable 13.6  —  —  0.3  —  13.9 
Total $ 136.5  $ —  $ 7.6  $ 2.6  $ (9.4) $ 137.3 

(Millions of Dollars) Balance
December 28 2019
Cumulative Effect Adjustment (a) Charged To Costs and Expenses Charged To Other Accounts
(b)
Deductions (c) Balance
September 26, 2020
Accounts receivable $ 99.3  $ 2.9  $ 37.3  $ (0.5) $ (15.6) $ 123.4 
Notes receivable $ 13.1  $ 0.9  $ —  $ 0.2  $ (0.3) $ 13.9 
Total $ 112.4  $ 3.8  $ 37.3  $ (0.3) $ (15.9) $ 137.3 

(a) Represents the cumulative-effect adjustment to opening retained earnings due to the adoption of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), in the first quarter of 2020.
(b) Amounts represent the impacts of foreign currency translation, acquisitions and net transfers to/from other accounts.
(c) Amounts represent charge-offs less recoveries of accounts previously charged-off.

The following is a summary of the expected timing of receipt of payments from customers on an undiscounted basis as of October 2, 2021 relating to the Company’s lease receivables:
(Millions of Dollars) Total Within 1 Year 2 Years 3 Years 4 Years 5 Years Thereafter
Financing receivables $ 199.2  $ 73.1  $ 54.3  $ 37.7  $ 21.6  $ 10.8  $ 1.7 
Operating leases $ 28.3  $ 26.5  $ 0.9  $ 0.5  $ 0.3  $ 0.1  $ — 
The following is a summary of lease revenue and sales-type lease profit for the three and nine months ended October 2, 2021 and September 26, 2020:
Third Quarter Year-to-Date
(Millions of Dollars) 2021 2020 2021 2020
Sales-type lease revenue $ 27.8  $ 28.2  $ 93.8  $ 82.0 
Lease interest revenue 3.2  3.3  9.9  9.4 
Operating lease revenue 21.5  30.4  61.6  101.9 
Total lease revenue $ 52.5  $ 61.9  $ 165.3  $ 193.3 
Sales-type lease profit $ 11.0  $ 11.2  $ 37.3  $ 32.6 


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 sheet 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 October 2, 2021, 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 October 2, 2021 and January 2, 2021, approximately $100.0 million and $86.8 million of net receivables were derecognized, respectively. For the three and nine months ended October 2, 2021, proceeds from transfers of receivables to the Purchaser totaled $114.1 million and $296.8 million, respectively, and payments to the Purchaser totaled $114.1 million and $283.6 million, respectively. For the three and nine months ended September 26, 2020, proceeds from transfers of receivables to the Purchaser totaled $49.8 million and $127.8 million, respectively, and payments to the Purchaser totaled $31.7 million and
14

$184.1 million, respectively. The program resulted in a pre-tax loss of $0.5 million and $1.3 million for the three and nine months ended October 2, 2021, respectively, which included service fees of $0.2 million and $0.6 million, respectively. The program resulted in a pre-tax loss of $0.3 million and $1.3 million for the three and nine months ended September 26, 2020, respectively, which included service fees of $0.1 million and $0.4 million, respectively. All cash flows under the program are reported as a component of changes in working capital within operating activities in the Condensed Consolidated Statements of Cash Flows since all the cash from the Purchaser is received upon the initial sale of the receivable.

As of October 2, 2021 and January 2, 2021, the Company's deferred revenue totaled $195.5 million and $207.6 million, respectively, of which $95.8 million and $108.7 million, respectively, was classified as current within Accrued expenses in the Condensed Consolidated Balance Sheets. Revenue recognized for the nine months ended October 2, 2021 and September 26, 2020 that was previously deferred as of January 2, 2021 and December 28, 2019 totaled $91.2 million and $90.8 million, respectively.

As of October 2, 2021, approximately $1.133 billion of revenue from long-term contracts primarily in the Security segment was unearned related to customer contracts which were not completely fulfilled and will be recognized on a decelerating basis over the next five years. This amount excludes any of the Company's contracts with an original expected duration of one year or less.

E.    INVENTORIES
The components of Inventories, net at October 2, 2021 and January 2, 2021 are as follows:
(Millions of Dollars) October 2, 2021 January 2, 2021
Finished products $ 2,777.4  $ 1,922.5 
Work in process 350.3  222.3 
Raw materials 1,006.7  592.6 
Total $ 4,134.4  $ 2,737.4 

F.    ACQUISITIONS AND INVESTMENTS

PENDING ACQUISITIONS

On August 16, 2021, the Company agreed to acquire the remaining 80 percent ownership stake in MTD, a privately held global manufacturer of outdoor power equipment, for $1.6 billion in cash. The Company previously acquired a 20 percent interest in MTD in January 2019 for $234 million in cash. With over $2.5 billion of revenue in the last twelve months, MTD designs, manufactures and distributes lawn tractors, zero turn mowers, walk behind mowers, snow blowers, residential robotic mowers, handheld outdoor power equipment and garden tools for both residential and professional consumers under well-known brands like Cub Cadet® and Troy-Bilt®. The Company expects the combination of businesses will create a global leader in the $25 billion and growing outdoor category, with strong brands and growth opportunities. Upon closing of the remaining 80 percent ownership stake, the acquisition will be accounted for as a business combination using the acquisition method of accounting and consolidated into the Company's Tools & Storage segment. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the fourth quarter of 2021.

On September 12, 2021, the Company reached an agreement to acquire Excel Industries ("Excel") for $375 million in cash. Excel is a leading designer and manufacturer of premium commercial and residential turf-care equipment under the brands of Hustler Turf Equipment and BigDog Mower Co. The Company believes this is a strategically important bolt-on acquisition as it builds an outdoor products leader. The acquisition will be accounted for as a business combination using the acquisition method of accounting and consolidated into the Company's Tools & Storage segment. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the fourth quarter of 2021.

2020 ACQUISITIONS

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 authorization to return to service and Boeing achieving certain production levels, which were valued at $155.3 million as of the acquisition date.

15

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 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 to the Consolidated Statements of Operations in Other, net. As of October 2, 2021, the Company continues to consider the achievement of certain production levels based on Boeing’s future forecast as remote.
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, which requires, among other things, certain assets acquired and liabilities assumed to be recognized at their fair values as of the acquisition date. The following table summarizes the acquisition date value of identifiable net assets acquired and liabilities assumed:
(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 was 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. It is estimated that $569.8 million of goodwill will be deductible for tax purposes.
The acquisition accounting for CAM is complete. The measurement period adjustments recorded in 2021 did not have a material impact to the Company's consolidated financial statements.
Other 2020 Acquisition

During 2020, the Company completed one smaller acquisition for $27.9 million, net of cash acquired. The estimated acquisition date value of the identifiable net assets acquired is $13.3 million, which includes $14.8 million of customer relationships. The related goodwill is $14.6 million. The useful life assigned to the customer relationships is 8 years. The results of this acquisition subsequent to the date of acquisition are included in the Company's Security segment.

The acquisition accounting for this acquisition is substantially complete with the exception of certain tax matters and will be completed within the measurement period. These adjustments are not expected to have a material impact on the Company’s
consolidated financial statements.

ACTUAL AND PRO-FORMA IMPACT OF THE ACQUISITIONS

Actual Impact from Acquisitions
16


The Company did not complete any material acquisitions in the first nine months of 2021. As such, there was an immaterial impact from new acquisitions on the Company's Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended October 2, 2021.

Pro-forma Impact from Acquisitions

The following table presents supplemental pro-forma information as if the 2020 acquisitions had occurred on December 30, 2018. 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 December 30, 2018. 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) Third Quarter 2020 Year-to-Date 2020
Net sales $ 3,854.2  $ 10,185.0 
Net earnings attributable to common shareowners $ 392.5  $ 791.7 
Diluted earnings per share $ 2.48  $ 5.12 

2020 Pro-forma Results

The 2020 pro-forma results were calculated by combining the results of Stanley Black & Decker with the stand-alone results of the 2020 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 December 29, 2019 to the acquisition date of CAM and from December 29, 2019 to September 26, 2020 for the other 2020 acquisition.

Additional depreciation expense for the property, plant, and equipment fair value adjustments that would have been incurred from December 29, 2019 to the acquisition date of CAM.

Because the 2020 acquisitions were assumed to occur on December 30, 2018, there were no acquisition-related costs or inventory step-up charges factored into the 2020 pro-forma period, as such expenses would have occurred in the first year following the assumed acquisition date.

INVESTMENTS

On January 2, 2019, the Company acquired a 20 percent interest in MTD for $234 million in cash. The Company is applying the equity method of accounting to the 20% investment in MTD. During 2021 and 2020, the Company made additional immaterial investments in new and emerging start-up companies focused on innovation, breakthrough products and advanced technologies. These investments, which are included in Other assets in the Condensed Consolidated Balance Sheets, do not qualify for equity method accounting as the Company acquired less than 20 percent interest in each investment and does not have the ability to significantly influence the operating or financial decisions of any of the investees.


G.    GOODWILL
Changes in the carrying amount of goodwill by segment are as follows:
(Millions of Dollars) Tools & Storage Industrial Security Total
Balance January 2, 2021 $ 5,247.7  $ 2,646.5  $ 2,143.9  $ 10,038.1 
Acquisitions 4.4  (0.5) 5.2  9.1 
Foreign currency translation (41.2) (19.5) (42.4) (103.1)
Balance October 2, 2021 $ 5,210.9  $ 2,626.5  $ 2,106.7  $ 9,944.1 

17


H.    LONG-TERM DEBT AND FINANCING ARRANGEMENTS

Long-term debt and financing arrangements at October 2, 2021 and January 2, 2021 are as follows:
October 2, 2021 January 2, 2021
(Millions of Dollars) Interest Rate Original Notional Unamortized Discount
Unamortized Gain/(Loss) Terminated Swaps 1
Purchase Accounting FV Adjustment Deferred Financing Fees Carrying Value
Carrying Value
Notes payable due 2026 3.40% $ 500.0  $ (0.5) $ —  $ —  $ (1.9) $ 497.6  $ 497.2 
Notes payable due 2028 7.05% 150.0  —  7.4  7.1  —  164.5  166.1 
Notes payable due 2028 4.25% 500.0  (0.3) —  —  (3.1) 496.6  496.2 
Notes payable due 2030 2.30% 750.0  (2.1) —  —  (4.4) 743.5  742.9 
Notes payable due 2040 5.20% 400.0  (0.2) (27.9) —  (2.6) 369.3  368.1 
Notes payable due 2048 4.85% 500.0  (0.5) —  —  (5.0) 494.5  494.3 
Notes payable due 2050 2.75% 750.0  (1.9) —  —  (8.1) 740.0  739.9 
Notes payable due 2060 (junior subordinated) 4.00% 750.0  —  —  —  (9.1) 740.9  740.7 
Long-term debt2
$ 4,300.0  $ (5.5) $ (20.5) $ 7.1  $ (34.2) $ 4,246.9  $ 4,245.4 
1Unamortized gain/(loss) associated with interest rate swaps are more fully discussed in Note I, Financial Instruments.
2There are no current maturities of long-term debt.

In October 2021, the Company increased its commercial paper program from $3.0 billion to $3.5 billion, which includes Euro denominated borrowings in addition to U.S. Dollars. As of October 2, 2021, the Company had $147.0 million of borrowings outstanding. As of January 2, 2021, there were no borrowings outstanding.

In September 2021, the Company amended and restated its existing five-year $2.0 billion committed credit facility with the concurrent execution of a new 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 October 2, 2021, and January 2, 2021, the Company had not drawn on its five-year committed credit facility.

In September 2021, the Company terminated its 364-Day $1.0 billion credit facility and concurrently executed a new 364-Day $1.0 billion committed credit facility (the "364-Day Credit Agreement"). Borrowings under the 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 364-Day Credit Agreement. The Company must repay all advances under the 364-Day Credit Agreement by the earlier of September 7, 2022 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 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 October 2, 2021, and January 2, 2021, the Company had not drawn on its 364-Day committed credit facility.

I.    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, Derivatives and Hedging, 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
18

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 Condensed Consolidated Balance Sheets at October 2, 2021 and January 2, 2021 is as follows: 
(Millions of Dollars) Balance Sheet
Classification
October 2, 2021 January 2, 2021 Balance Sheet
Classification
October 2, 2021 January 2, 2021
Derivatives designated as hedging instruments:
Interest Rate Contracts Cash Flow Other current assets $   $ —  Accrued expenses $ 60.6  $ 90.9 
Foreign Exchange Contracts Cash Flow Other current assets 17.8  —  Accrued expenses 0.9  23.7 
LT other assets 0.4  —  LT other liabilities   — 
Net Investment Hedge Other current assets 2.3  3.5  Accrued expenses 0.5  55.1 
LT other assets 0.4  —  LT other liabilities   5.7 
Total designated as hedging $ 20.9  $ 3.5  $ 62.0  $ 175.4 
Derivatives not designated as hedging instruments:
Foreign Exchange Contracts Other current assets $ 8.7  $ 10.5  Accrued expenses $ 7.2  $ 15.6 
Total $ 29.6  $ 14.0  $ 69.2  $ 191.0 

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 October 2, 2021 and January 2, 2021, there were no assets that had been posted as collateral related to the above mentioned financial instruments.

During the nine months ended October 2, 2021 and September 26, 2020, cash flows related to derivatives, including those that are separately discussed below, resulted in net cash paid of $99.4 million and net cash received of $33.7 million, respectively.

CASH FLOW HEDGES

There were after-tax mark-to-market losses of $46.6 million and $103.0 million as of October 2, 2021 and January 2, 2021, respectively, reported for cash flow hedge effectiveness in Accumulated other comprehensive income (loss). An after-tax gain of $5.3 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 income (loss) during the periods in which the underlying hedged transactions affected earnings for the three and nine months ended October 2, 2021 and September 26, 2020: 

Third Quarter 2021
(Millions of dollars) Gain (Loss)
Recorded in OCI
Classification of
Gain (Loss)
Reclassified from
OCI to Income
Gain (Loss)
Reclassified from
OCI to Income
Gain (Loss)
Recognized in
Income on Amounts Excluded from Effectiveness Testing
Interest Rate Contracts $ 2.9  Interest expense $ (0.8) $  
Foreign Exchange Contracts $ 11.0  Cost of sales $ (9.9) $  
19

Year-to-Date 2021
(Millions of Dollars) Gain (Loss)
Recorded in OCI
Classification of
Gain (Loss)
Reclassified from
OCI to Income
Gain (Loss)
Reclassified from
OCI to Income
Gain (Loss)
Recognized in
Income on Amounts Excluded from Effectiveness Testing
Interest Rate Contracts $ 30.3  Interest expense $ (2.9) $  
Foreign Exchange Contracts $ 19.2  Cost of sales $ (21.3) $  
Third Quarter 2020
(Millions of dollars) Gain (Loss)
Recorded in OCI
Classification of
Gain (Loss)
Reclassified from
OCI to Income
Gain (Loss)
Reclassified from
OCI to Income
Gain (Loss)
Recognized in
Income on Amounts Excluded from Effectiveness Testing
Interest Rate Contracts $ 1.9  Interest expense $ (4.3) $  
Foreign Exchange Contracts $ (5.3) Cost of sales $ 5.9  $  
Year-to-Date 2020
(Millions of Dollars) Gain (Loss)
Recorded in OCI
Classification of
Gain (Loss)
Reclassified from
OCI to Income
Gain (Loss)
Reclassified from
OCI to Income
Gain (Loss)
Recognized in
Income on Amounts Excluded from Effectiveness Testing
Interest Rate Contracts $ (92.1) Interest expense $ (13.5) $ — 
Foreign Exchange Contracts $ 10.1  Cost of sales $ 12.5  $ — 
A summary of the pre-tax effect of cash flow hedge accounting on the Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended October 2, 2021 and September 26, 2020 is as follows:
Third Quarter 2021 Year-to-Date 2021
(Millions of Dollars) Cost of Sales Interest Expense Cost of Sales Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Income in which the effects of the cash flow hedges are recorded $ 2,871.7  $ 45.8  $ 8,261.8  $ 139.8 
Gain (loss) on cash flow hedging relationships:
Foreign Exchange Contracts:
Hedged Items $ 9.9  $   $ 21.3  $  
Gain (loss) reclassified from OCI into Income $ (9.9) $   $ (21.3) $  
Interest Rate Swap Agreements:
Gain (loss) reclassified from OCI into Income 1
$   $ (0.8) $   $ (2.9)
Third Quarter 2020 Year-to-Date 2020
(Millions of Dollars) Cost of Sales Interest Expense Cost of Sales Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Income in which the effects of the cash flow hedges are recorded $ 2,473.9  $ 52.7  $ 6,714.9  $ 169.7 
Gain (loss) on cash flow hedging relationships:
Foreign Exchange Contracts:
Hedged Items $ (5.9) $ —  $ (12.5) $ — 
Gain (loss) reclassified from OCI into Income $ 5.9  $ —  $ 12.5  $ — 
Interest Rate Swap Agreements:
Gain (loss) reclassified from OCI into Income 1
$ —  $ (4.3) $ —  $ (13.5)
1 Inclusive of the gain/loss amortization on terminated derivative financial instruments.

An after-tax loss of $5.3 million and after-tax gain of $1.1 million was reclassified from Accumulated other comprehensive Income (Loss) into earnings (inclusive of the gain/loss amortization on terminated derivative instruments) for the three months ended October 2, 2021 and September 26, 2020, respectively. An after-tax loss of $13.5 million and $0.6 million was reclassified from Accumulated other comprehensive Income (Loss) into earnings (inclusive of the gain/loss amortization on terminated derivative instruments) for the nine months ended October 2, 2021 and September 26, 2020, respectively, during the periods in which the underlying hedged transactions affected earnings.
20


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-debt proportions. During the first quarter of 2020, the Company entered into forward starting interest rate swaps totaling $1.0 billion to offset the expected variability on future interest rate payments associated with debt instruments expected to be issued in the future. These swaps were terminated during the first quarter of 2020 resulting in a loss of $20.5 million, which was recorded in Accumulated other comprehensive income (loss) and is being amortized to earnings as interest expense over future periods. The cash flows stemming from the maturity of such interest rate swaps designated as cash flow hedges are presented within financing activities in the Condensed Consolidated Statements of Cash Flows. As of October 2, 2021 and January 2, 2021, the Company had $400.0 million in forward starting swaps designated as cash flow hedges.

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 income (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 October 2, 2021 and January 2, 2021, the notional value of forward currency contracts outstanding was $522.5 million and $595.8 million, respectively, maturing on various dates through 2022.

In October 2021, the Company entered into forward currency contracts with notional values totaling $165.0 million maturing on various dates in 2022.

Purchased Option Contracts: The Company and its subsidiaries have entered into various intercompany transactions whereby the notional values are denominated in currencies other than the functional currencies of the party executing the trade. In order to better match the cash flows of its intercompany obligations with cash flows from operations, the Company enters into purchased option contracts. 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. There were no outstanding purchased option contracts as of October 2, 2021 or January 2, 2021.
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 the fair value of the swaps and the offsetting changes in fair value related to the underlying notes were recognized in earnings. As of October 2, 2021 and January 2, 2021, the Company did not have any active fair value interest rate swaps.

A summary of the pre-tax effect of fair value hedge accounting on the Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended October 2, 2021 and September 26, 2020 is as follows:
 (Millions of Dollars)
Third Quarter 2021
Interest Expense
Year-to-Date 2021
Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Income in which the effects of the fair value hedges are recorded $ 45.8  $ 139.8 
Amortization of gain on terminated swaps $ (0.1) $ (0.3)
 (Millions of Dollars) Third Quarter 2020
Interest Expense
Year-to-Date 2020
Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Income in which the effects of the fair value hedges are recorded $ 52.7  $ 169.7 
Amortization of gain on terminated swaps $ (0.8) $ (2.4)
A summary of the amounts recorded in the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of October 2, 2021 and January 2, 2021 is as follows:
21

October 2, 2021
 (Millions of Dollars)
Carrying Amount of Hedged Liability (1)
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability
Long-Term Debt $ 4,246.9  Terminated Swaps $ (20.5)
January 2, 2021
 (Millions of Dollars)
Carrying Amount of Hedged Liability (1)
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability
Long-Term Debt $ 4,245.4  Terminated Swaps $ (20.8)
(1) Represents hedged items no longer designated in qualifying fair value hedging relationships.

NET INVESTMENT HEDGES

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 income (loss) were gains of $75.7 million and $72.8 million at October 2, 2021 and January 2, 2021, respectively.

As of October 2, 2021, the Company had a foreign exchange contract with a notional value of $75.0 million maturing in 2021 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. As of January 2, 2021, the Company had cross currency swaps with a notional value totaling $839.4 million maturing on various dates through 2023 hedging a portion of its Japanese yen, Euro and Swiss franc denominated net investments. The Company had no Euro denominated commercial paper designated as a net investment hedge as of October 2, 2021 and January 2, 2021.

Maturing foreign exchange contracts resulted in net cash paid of $53.9 million and net cash received of $41.0 million for the nine months ended October 2, 2021 and September 26, 2020, respectively.

Gains and losses on net investment hedges remain in Accumulated other comprehensive income (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 earnings in Other, net.
22


The pre-tax gain or loss from fair value changes for the three and nine months ended October 2, 2021 and September 26, 2020 was as follows:
Third Quarter 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 $ (0.4) $ 0.3  Other, net $ 0.4  $ 0.4 
Cross Currency Swap $ (0.2) $ 6.0  Other, net $ 0.8  $ 0.8 
Year-to-Date 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 $ (1.4) $ 1.1  Other, net $ 1.1  $ 1.1 
Cross Currency Swap $ 9.1  $ 19.9  Other, net $ 2.9  $ 2.9 
Third Quarter 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 $ 0.3  $ —  Other, net $ —  $ — 
Cross Currency Swap $ (19.0) $ 14.0  Other, net $ 4.1  $ 4.1 
Non-derivative designated as Net Investment Hedge $ (13.1) $ —  Other, net $ —  $ — 
Year-to-Date 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 $ 0.4  $ —  Other, net $ —  $ — 
Cross Currency Swap $ 22.3  $ 48.9  Other, net $ 13.7  $ 13.7 
Non-derivative designated as Net Investment Hedge $ (8.5) $ —  Other, net $ —  $ — 
UNDESIGNATED HEDGES