XML 47 R42.htm IDEA: XBRL DOCUMENT v2.4.0.6
CAPITAL STOCK (Tables)
 12 Months Ended
Dec. 29, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Reconciliation of Net Earnings Attributable to Common Shareholders and Weighted Average Shares Outstanding used to Calculate Basic and Diluted Earnings Per Share
The following table reconciles net earnings attributable to common shareowners and the weighted average shares outstanding used to calculate basic and diluted earnings per share for the fiscal years ended December 29, 2012, December 31, 2011, and January 1, 2011.
Earnings per Share Computation 
 
2012
 
2011
 
2010
Numerator (in millions):
 
 
 
 
 
Net earnings from continuing operations attributable to common shareowners
$
449.5

 
$
598.4

 
$
150.6

Net earnings from discontinued operations
434.3

 
76.2

 
47.6

Net earnings attributable to common shareowners
$
883.8

 
$
674.6

 
$
198.2

Less: Earnings attributable to participating restricted stock units (“RSU’s”)
1.2

 
1.4

 
0.5

Net Earnings — basic
$
882.6

 
$
673.2

 
$
197.7

Net Earnings — diluted
$
883.8

 
$
674.6

 
$
198.2

 
2012
 
2011
 
2010
Denominator (in thousands):
 
 
 
 
 
Basic earnings per share –– weighted-average shares
163,067

 
165,832

 
147,224

Dilutive effect of stock options and awards
3,634

 
4,273

 
2,943

Diluted earnings per share –– weighted-average shares
166,701

 
170,105

 
150,167

 
2012
 
2011
 
2010
Earnings per share of common stock:
 
 
 
 
 
Basic earnings per share of common stock:
 
 
 
 
 
Continuing operations
$
2.75

 
$
3.60

 
$
1.02

Discontinued operations
2.66

 
0.46

 
0.32

Total basic earnings per share of common stock
$
5.41

 
$
4.06

 
$
1.34

Diluted earnings per share of common stock:
 
 
 
 
 
Continuing operations
$
2.70

 
$
3.52

 
$
1.00

Discontinued operations
2.61

 
0.45

 
0.32

Total dilutive earnings per share of common stock
$
5.30

 
$
3.97

 
$
1.32
Weighted-Average Stock Options, Warrants and Equity Purchase Contracts Not Included in Computation of Diluted Shares Outstanding
The following weighted-average stock options and warrants were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive (in thousands):
 
 
2012
 
2011
 
2010
Number of stock options
1,825

 
2,379

 
2,760

Number of stock warrants
3,419

 
4,939

 
4,939

Number of shares related to May 2010 equity purchase contracts
—

 
—

 
2,210

Number of shares related to the convertible preferred units
—

 
8,458

 
1,054
Common Stock Share Activity
Common stock share activity for 2012, 2011 and 2010 was as follows:
 
 
2012
 
2011
 
2010
Outstanding, beginning of year
169,046,961

 
166,347,430

 
80,478,624

Shares issued as part of the merger
—

 
—

 
78,497,261

Shares issued from Equity Units Offering
—

 
—

 
5,180,776

Shares issued, other
814,693

 
—

 
—

Issued from treasury
3,344,163

 
2,864,564

 
2,298,603

Returned to treasury
(13,253,790
)
 
(165,033
)
 
(107,834
)
Outstanding, end of year
159,952,027

 
169,046,961

 
166,347,430

Shares subject to the forward share purchase contract
(5,581,400
)
 
(5,581,400
)
 
—

Outstanding, less shares subject to the forward share purchase contract
154,370,627

 
163,465,561

 
166,347,430
Common Stock Shares Reserved for Issuance under Various Employee and Director Stock Plans
Common stock shares reserved for issuance under various employee and director stock plans at December 29, 2012 and December 31, 2011 are as follows:
 
 
2012
 
2011
Employee stock purchase plan
2,586,768

 
2,808,891

Other stock-based compensation plans
505,851

 
2,643,113

Total shares reserved
3,092,619

 
5,452,004
Weighted Average Assumptions that were Granted as Part of Merger
The 2010 weighted average assumptions include one million options that were granted as part of the Merger.
 
2012
 
2011
 
2010
Average expected volatility
35.6
%
 
38.4
%
 
31.4
%
Dividend yield
2.8
%
 
2.5
%
 
2.2
%
Risk-free interest rate
0.8
%
 
1.1
%
 
2.7
%
Expected term
5.5 years

 
5.5 years

 
6.3 years

Fair value per option
$
17.47

 
$
18.29

 
$
16.68

Weighted average vesting period
2.3 years

 
2.7 years

 
3.0 years
Assumptions Used for Black-Scholes Valuation of Options
The following assumptions were used in the valuation of pre-merger Black & Decker stock options:
 
2010
Average expected volatility
32.0
%
Dividend yield
0.7
%
Risk-free interest rate
1.4
%
Expected term
2.9 years

Fair value per option
$
18.72
Number of Stock Options and Weighted-average Exercise Prices
The number of stock options and weighted-average exercise prices are as follows:
 
2012
 
2011
 
2010
 
Options
 
Price
 
Options
 
Price
 
Options
 
Price
Outstanding, beginning of year
10,444,660

 
$
52.47

 
11,641,564

 
$
48.69

 
5,839,417

 
$
39.75

Granted
1,106,075

 
70.66

 
1,150,577

 
65.05

 
2,055,942

 
60.69

Options assumed from merger
—

 
—

 
—

 
—

 
5,843,623

 
44.41

Exercised
(2,258,598
)
 
43.07

 
(2,166,269
)
 
40.34

 
(1,720,507
)
 
34.81

Forfeited
(235,644
)
 
68.48

 
(181,212
)
 
52.19

 
(376,911
)
 
54.95

Outstanding, end of year
9,056,493

 
$
56.90

 
10,444,660

 
$
52.47

 
11,641,564

 
$
48.69

Exercisable, end of year
5,515,617

 
$
52.97

 
6,853,838

 
$
49.74

 
8,100,566

 
$
46.70
Outstanding and Exercisable Stock Option
Outstanding and exercisable stock option information at December 29, 2012 follows:
 
Outstanding Stock Options
 
Exercisable Stock Options
Exercise Price Ranges
Options
 
Weighted-
average
Remaining
Contractual Life
 
Weighted-
average
Exercise Price
 
Options
 
Weighted-
average
Remaining
Contractual Life
 
Weighted-
average
Exercise Price
$35.00 and below
1,356,621

 
3.97
 
$
31.39

 
1,261,445

 
3.80
 
$
31.49

$35.01 — 50.00
1,167,090

 
3.65
 
46.41

 
1,055,715

 
3.34
 
46.18

$50.01 — higher
6,532,782

 
6.41
 
64.07

 
3,198,457

 
4.14
 
63.68

 
9,056,493

 
5.69
 
$
56.90

 
5,515,617

 
1.55
 
$
52.97
Summary of Non-Vested Restricted Stock Unit Activity and Long-Term Performance Awards
A summary of non-vested restricted stock unit and award activity as of December 29, 2012, and changes during the twelve month period then ended is as follows:
 
Restricted Share
Units & Awards
 
Weighted  Average
Grant
Date Fair Value
Non-vested at January 1, 2012
2,373,108

 
$
57.52

Granted
445,958

 
70.30

Vested
(523,902
)
 
72.20

Forfeited
(68,226
)
 
71.66

Non-vested at December 29, 2012
2,226,938

 
$
61.73
Restricted Share Units & Awards
  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Summary of Non-Vested Restricted Stock Unit Activity and Long-Term Performance Awards
A summary of the activity pertaining to the maximum number of shares that may be issued is as follows:
 
Share Units
 
Weighted  Average
Grant
Date Fair Value
Non-vested at January 1, 2012
1,357,899

 
$
46.14

Granted
274,614

 
74.86

Vested
(411,329
)
 
30.37

Forfeited
(136,265
)
 
38.89

Non-vested at December 29, 2012
1,084,919

 
$
60.29