Connecticut | 1-5244 | 06-0548860 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
1000 Stanley Drive, New Britain, | 06053 | |||
Connecticut | (Zip Code) | |||
(Address of principal executive offices) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Stanley Black & Decker, Inc. | ||||||
April 24, 2014 | By: | /s/ Bruce H. Beatt | ||||
Name: | Bruce H. Beatt | |||||
Title: | Senior Vice President, General Counsel and Secretary |
Exhibit No. | Description | ||
99.1 | Press release dated April 24, 2014, issued by Stanley Black & Decker, Inc. | ||
99.2 | Financial statements and supporting schedules contained in Stanley Black & Decker, Inc.'s April 24, 2014 press release. |
• | 1Q’14 Revenues Up 7% To $2.6 Billion; Organic Growth Reached 4% |
• | Operating Margin Expanded 200 Basis Points; Excluding Charges Operating Margin Expanded 30 Basis Points To 12.1% |
• | 1Q’14 Diluted GAAP EPS Was $1.05; Excluding Charges, 1Q’14 Diluted EPS Was $1.07 |
• | Increasing Low End Of 2014 FY EPS Guidance Range To: |
◦ | $5.23 To $5.38 On A GAAP Basis (From $5.18 to $5.38) |
◦ | $5.35 To $5.50, Excluding Charges (From $5.30 To $5.50) |
• | Net sales for the period were $2.6 billion, up 7% versus the prior year, attributable to volume (+4%) and acquisitions (+4%), partially offset by currency (-1%). Price was relatively flat for the quarter. |
• | The gross margin rate for the quarter was 36.4%. Excluding charges the gross margin rate was also 36.4%, down from the prior year rate of 37.2%, as favorable volume and productivity were more than offset by unfavorable currency of $25 million and Security margins. |
• | SG&A expenses were 24.5% of sales. Excluding charges, SG&A expenses were 24.3% of sales, compared to a 1Q’13 level of 25.5%, reflecting the impacts of volume and cost actions implemented in 4Q’13 to improve operating leverage. |
• | Operating margin was 11.8% of sales. Excluding charges, operating margin was 12.1% of sales, up 30 basis points from the 1Q’13 operating margin of 11.8%. |
• | The tax rate was 21.9%. Excluding charges, the tax rate was 22.1%, 520 basis points higher than the 1Q’13 rate which was favorably impacted by the acceleration of certain tax credits and the positive impact of U.S. tax legislation enacted in January 2013. |
• | Working capital turns for the quarter were 5.9, up 0.1 turns from 1Q’13. Free cash flow, which was relatively consistent with the prior year, was an outflow of $210 million, including $52 million of one-time payments. |
($ in M) | 1Q' 14 Segment Results | |||||
Sales | Profit | Charges1 | Profit Ex-Charges1 | Profit Rate | Profit Rate Ex-Charges1 | |
CDIY | $1,216 | $169.2 | $0.4 | $169.6 | 13.9% | 13.9% |
Industrial | $852 | $130.3 | $2.2 | $132.5 | 15.3% | 15.6% |
Security | $573 | $49.6 | $2.3 | $51.9 | 8.7% | 9.1% |
• | In CDIY, net sales increased 6% versus 1Q’13 as a result of volume (+7%) and acquisitions (+1%), partially offset by currency (-2%). Price was down 1% for the quarter. Solid organic growth was achieved in all regions, leveraging our focus on innovation, emerging markets, and brand development. Europe posted strong organic growth of 11%, driven by continued share gains from successful new product introductions across key regions and an expanding retail footprint in certain markets. Emerging markets organic growth was up 7% against continued challenging economic and political environments with particularly strong growth in Brazil and |
• | Net sales in the Industrial segment rose 16% versus 1Q’13 as a result of volume (+5%) and acquisitions (+12%), partially offset by currency (-1%). Pricing was relatively flat for the quarter. Engineered Fastening posted 6% organic growth driven by strong global automotive revenues, particularly in Europe and Asia, which resulted in growth at nearly two times the rate of light vehicle production. The Infastech integration crossed the one-year mark at the end of February and remains on-plan to achieve both earnings and cost synergy targets. Organic sales for the Industrial and Automotive Repair (IAR) business were up 5% as a result of higher volumes in IAR’s European business, and strength within the North American Mac Tools mobile distribution and the MRO vending operations. Oil & Gas organic growth was up 11% due primarily to North American onshore and global offshore operations. Although Oil & Gas organic growth continues to be strong, the pace of growth has slowed versus recent quarters as expected, and will continue to do so over the next two to three quarters due to a temporary lull in major onshore pipeline projects. |
• | Net sales in Security decreased 3% versus 1Q’13 due to volume (-5%), partially offset by pricing (+1%) and currency (+1%). Organic growth within Security’s North America and Emerging Market businesses was down 1% as performance of a number of North America-based operations were adversely impacted by severe weather conditions, particularly in January and February. Security Europe declined 7% organically due primarily to lower installation and recurring revenues in various regions, most notably Spain and France. Although the organic volume decline in Security Europe was greater than expected, orders and backlog continue to build and importantly, recurring revenue attrition levels were slightly below 15% in the first quarter, reflecting an improvement both sequentially and versus the prior year’s first quarter. |
FIRST QUARTER | |||||||
2014 | 2013 | ||||||
NET SALES | $ | 2,640.8 | $ | 2,476.5 | |||
COSTS AND EXPENSES | |||||||
Cost of sales | 1,680.5 | 1,567.9 | |||||
Gross margin | 960.3 | 908.6 | |||||
% of Net Sales | 36.4 | % | 36.7 | % | |||
Selling, general and administrative | 647.7 | 664.7 | |||||
% of Net Sales | 24.5 | % | 26.8 | % | |||
Operating margin | 312.6 | 243.9 | |||||
% of Net sales | 11.8 | % | 9.8 | % | |||
Other - net | 61.6 | 70.8 | |||||
Restructuring (credits) charges | (3.7 | ) | 42.9 | ||||
Income from operations | 254.7 | 130.2 | |||||
Interest - net | 40.9 | 36.7 | |||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 213.8 | 93.5 | |||||
Income taxes on continuing operations | 46.8 | 8.8 | |||||
NET EARNINGS FROM CONTINUING OPERATIONS | 167.0 | 84.7 | |||||
Less: net earnings (loss) attributable to non-controlling interests | 0.2 | (0.4 | ) | ||||
NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREOWNERS | 166.8 | 85.1 | |||||
NET LOSS FROM DISCONTINUED OPERATIONS | (4.9 | ) | (4.0 | ) | |||
NET EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS | $ | 161.9 | $ | 81.1 | |||
BASIC EARNINGS (LOSS) PER SHARE OF COMMON STOCK | |||||||
Continuing operations | $ | 1.07 | $ | 0.55 | |||
Discontinued operations | (0.03 | ) | (0.03 | ) | |||
Total basic earnings per share of common stock | $ | 1.04 | $ | 0.52 | |||
DILUTED EARNINGS (LOSS) PER SHARE OF COMMON STOCK | |||||||
Continuing operations | $ | 1.05 | $ | 0.53 | |||
Discontinued operations | (0.03 | ) | (0.02 | ) | |||
Total diluted earnings per share of common stock | $ | 1.02 | $ | 0.51 | |||
DIVIDENDS PER SHARE | $ | 0.50 | $ | 0.49 | |||
AVERAGE SHARES OUTSTANDING (in thousands) | |||||||
Basic | 155,905 | 155,552 | |||||
Diluted | 158,951 | 158,994 |
March 29, 2014 | December 28, 2013 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 432.6 | $ | 496.2 | ||||
Accounts and notes receivable, net | 1,795.8 | 1,633.0 | ||||||
Inventories, net | 1,663.1 | 1,485.2 | ||||||
Assets held for sale | 4.6 | 10.1 | ||||||
Other current assets | 375.1 | 344.2 | ||||||
Total current assets | 4,271.2 | 3,968.7 | ||||||
Property, plant and equipment, net | 1,482.4 | 1,485.3 | ||||||
Goodwill and other intangibles, net | 10,618.9 | 10,632.9 | ||||||
Other assets | 460.4 | 448.2 | ||||||
Total assets | $ | 16,832.9 | $ | 16,535.1 | ||||
LIABILITIES AND SHAREOWNERS’ EQUITY | ||||||||
Short-term borrowings | $ | 683.5 | $ | 402.6 | ||||
Accounts payable | 1,581.8 | 1,575.9 | ||||||
Accrued expenses | 1,185.6 | 1,236.2 | ||||||
Liabilities held for sale | 4.9 | 6.3 | ||||||
Total current liabilities | 3,455.8 | 3,221.0 | ||||||
Long-term debt | 3,831.1 | 3,799.4 | ||||||
Other long-term liabilities | 2,566.7 | 2,634.2 | ||||||
Stanley Black & Decker, Inc. shareowners’ equity | 6,897.8 | 6,799.2 | ||||||
Non-controlling interests’ equity | 81.5 | 81.3 | ||||||
Total liabilities and equity | $ | 16,832.9 | $ | 16,535.1 |
FIRST QUARTER | |||||||||
2014 | 2013 | ||||||||
OPERATING ACTIVITIES | |||||||||
Net earnings from continuing operations | $ | 167.0 | $ | 84.7 | |||||
Net loss from discontinued operations | (4.9 | ) | (4.0 | ) | |||||
Depreciation and amortization | 110.4 | 105.8 | |||||||
Changes in working capital1 | (330.3 | ) | (195.0 | ) | |||||
Other | (94.2 | ) | (139.0 | ) | |||||
Net cash used in operating activities | (152.0 | ) | (147.5 | ) | |||||
INVESTING AND FINANCING ACTIVITIES | |||||||||
Capital and software expenditures | (57.8 | ) | (76.6 | ) | |||||
Acquisitions, net of cash acquired | (3.2 | ) | (853.9 | ) | |||||
Proceeds from issuances of common stock | 13.2 | 83.2 | |||||||
Net short-term borrowings | 282.3 | 1,330.5 | |||||||
Cash dividends on common stock | (80.7 | ) | (79.1 | ) | |||||
Purchases of common stock for treasury | (19.4 | ) | (21.1 | ) | |||||
Payment on forward stock purchase contract | — | (350.0 | ) | ||||||
Other | (46.0 | ) | (44.0 | ) | |||||
Net cash provided by (used in) investing and financing activities | 88.4 | (11.0 | ) | ||||||
Decrease in Cash and Cash Equivalents | (63.6 | ) | (158.5 | ) | |||||
Cash and Cash Equivalents, Beginning of Period | 496.2 | 716.0 | |||||||
Cash and Cash Equivalents, End of Period | $ | 432.6 | $ | 557.5 | |||||
Free Cash Flow Computation2 | |||||||||
Operating cash outflow | $ | (152.0 | ) | $ | (147.5 | ) | |||
Less: capital and software expenditures | (57.8 | ) | $ | (76.6 | ) | ||||
Free cash outflow (before dividends) | $ | (209.8 | ) | $ | (224.1 | ) | |||
Merger & Acquisition-related charges and payments4 | 51.8 | $ | 94.5 | ||||||
Free cash outflow, normalized (before dividends)3 | $ | (158.0 | ) | $ | (129.6 | ) | |||
1 | The change in working capital is comprised of accounts receivable, inventory, accounts payable and deferred revenue. | ||||||||
2,3 | Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common stock and business acquisitions, among other items. Normalized free cash flow, as reconciled above, are considered meaningful pro forma metrics to aid the understanding of the Company's cash flow performance aside from the material impact of merger and acquisition-related activities. | ||||||||
4 | Merger & Acquisition-related charges and payments relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs. |
FIRST QUARTER | ||||||||
2014 | 2013 | |||||||
NET SALES | ||||||||
Construction & DIY | $ | 1,216.1 | $ | 1,150.5 | ||||
Industrial | 852.0 | 733.9 | ||||||
Security | 572.7 | 592.1 | ||||||
Total | $ | 2,640.8 | $ | 2,476.5 | ||||
SEGMENT PROFIT | ||||||||
Construction & DIY | $ | 169.2 | $ | 166.1 | ||||
Industrial | 130.3 | 89.4 | ||||||
Security | 49.6 | 57.4 | ||||||
Segment Profit | 349.1 | 312.9 | ||||||
Corporate Overhead | (36.5 | ) | (69.0 | ) | ||||
Total | $ | 312.6 | $ | 243.9 | ||||
Segment Profit as a Percentage of Net Sales | ||||||||
Construction & DIY | 13.9 | % | 14.4 | % | ||||
Industrial | 15.3 | % | 12.2 | % | ||||
Security | 8.7 | % | 9.7 | % | ||||
Segment Profit | 13.2 | % | 12.6 | % | ||||
Corporate Overhead | (1.4 | )% | (2.8 | )% | ||||
Total | 11.8 | % | 9.8 | % |
FIRST QUARTER 2014 | ||||||||||||
Reported | Merger & Acquisition- Related Charges1 | Normalized3 | ||||||||||
Gross margin | $ | 960.3 | $ | 1.1 | $ | 961.4 | ||||||
% of Net Sales | 36.4 | % | 36.4 | % | ||||||||
Selling, general and administrative | 647.7 | (6.3 | ) | 641.4 | ||||||||
% of Net Sales | 24.5 | % | 24.3 | % | ||||||||
Operating margin | 312.6 | 7.4 | 320.0 | |||||||||
% of Net Sales | 11.8 | % | 12.1 | % | ||||||||
Earnings from continuing operations before income taxes | 213.8 | 3.9 | 217.7 | |||||||||
Income taxes on continuing operations | 46.8 | 1.4 | 48.2 | |||||||||
Net earnings from continuing operations | 166.8 | 2.5 | 169.3 | |||||||||
Diluted earnings per share of common stock | $ | 1.05 | $ | 0.02 | $ | 1.07 |
FIRST QUARTER 2013 | ||||||||||||
Reported | Merger & Acquisition- Related Charges2 | Normalized3 | ||||||||||
Gross margin | $ | 908.6 | $ | 13.3 | $ | 921.9 | ||||||
% of Net Sales | 36.7 | % | 37.2 | % | ||||||||
Selling, general and administrative | 664.7 | (34.3 | ) | 630.4 | ||||||||
% of Net Sales | 26.8 | % | 25.5 | % | ||||||||
Operating margin | 243.9 | 47.6 | 291.5 | |||||||||
% of Net Sales | 9.8 | % | 11.8 | % | ||||||||
Earnings from continuing operations before income taxes | 93.5 | 106.1 | 199.6 | |||||||||
Income taxes on continuing operations | 8.8 | 25.0 | 33.8 | |||||||||
Net earnings from continuing operations | 85.1 | 81.1 | 166.2 | |||||||||
Diluted earnings per share of common stock | $ | 0.53 | $ | 0.51 | $ | 1.04 |
FIRST QUARTER 2014 | |||||||||||||
Reported | Merger & Acquisition- Related Charges1 | Normalized3 | |||||||||||
SEGMENT PROFIT | |||||||||||||
Construction & DIY | $ | 169.2 | $ | 0.4 | $ | 169.6 | |||||||
Industrial | 130.3 | 2.2 | 132.5 | ||||||||||
Security | 49.6 | 2.3 | 51.9 | ||||||||||
Segment Profit | 349.1 | 4.9 | 354.0 | ||||||||||
Corporate Overhead | (36.5 | ) | 2.5 | (34.0 | ) | ||||||||
Total | $ | 312.6 | $ | 7.4 | $ | 320.0 | |||||||
Segment Profit as a Percentage of Net Sales | |||||||||||||
Construction & DIY | 13.9 | % | 13.9 | % | |||||||||
Industrial | 15.3 | % | 15.6 | % | |||||||||
Security | 8.7 | % | 9.1 | % | |||||||||
Segment Profit | 13.2 | % | 13.4 | % | |||||||||
Corporate Overhead | (1.4 | )% | (1.3 | )% | |||||||||
Total | 11.8 | % | 12.1 | % | |||||||||
1 | Merger and acquisition-related charges relate primarily to the Niscayah and Infastech acquisitions, including employee-related charges and integration costs. | ||||||||||||
FIRST QUARTER 2013 | |||||||||||||
Reported | Merger & Acquisition- Related Charges2 | Normalized3 | |||||||||||
SEGMENT PROFIT | |||||||||||||
Construction & DIY | $ | 166.1 | $ | 3.3 | $ | 169.4 | |||||||
Industrial | 89.4 | 12.4 | 101.8 | ||||||||||
Security | 57.4 | 6.4 | 63.8 | ||||||||||
Segment Profit | 312.9 | 22.1 | 335.0 | ||||||||||
Corporate Overhead | (69.0 | ) | 25.5 | (43.5 | ) | ||||||||
Total | $ | 243.9 | $ | 47.6 | $ | 291.5 | |||||||
Segment Profit as a Percentage of Net Sales | |||||||||||||
Construction & DIY | 14.4 | % | 14.7 | % | |||||||||
Industrial | 12.2 | % | 13.9 | % | |||||||||
Security | 9.7 | % | 10.8 | % | |||||||||
Segment Profit | 12.6 | % | 13.5 | % | |||||||||
Corporate Overhead | (2.8 | )% | (1.8 | )% | |||||||||
Total | 9.8 | % | 11.8 | % | |||||||||
2 | Merger and acquisition-related charges relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs. | ||||||||||||
3 | The normalized 2014 and 2013 business segment information, as reconciled to GAAP above, is considered relevant to aid analysis of the Company's segment profit results aside from the material impact of the merger and acquisition-related charges. |
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES, AS ADJUSTED, TO CORRESPONDING NON-GAAP FINANCIAL MEASURES, AS ADJUSTED (Unaudited, Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||
FIRST QUARTER 2013 | SECOND QUARTER 2013 | THIRD QUARTER 2013 | FOURTH QUARTER 2013 | YEAR TO DATE 2013 | ||||||||||||||||||||||||||||||||||||||||||||||
GAAP1 | Merger & Acquisition-Related Charges2 | Normalized3 | GAAP1 | Merger & Acquisition-Related Charges2 | Normalized3 | GAAP1 | Merger & Acquisition-Related Charges2 | Normalized3 | GAAP1 | Merger & Acquisition-Related Charges2 | Normalized3 | GAAP1 | Merger & Acquisition-Related Charges2 | Normalized3 | ||||||||||||||||||||||||||||||||||||
NET SALES | ||||||||||||||||||||||||||||||||||||||||||||||||||
Construction & DIY | $ | 1,150.5 | $ | — | $ | 1,150.5 | $ | 1,394.0 | $ | — | $ | 1,394.0 | $ | 1,333.0 | $ | — | $ | 1,333.0 | $ | 1,398.5 | $ | — | $ | 1,398.5 | $ | 5,276.0 | $ | — | $ | 5,276.0 | ||||||||||||||||||||
Industrial | 733.9 | — | 733.9 | 861.5 | — | 861.5 | 825.9 | — | 825.9 | 881.3 | — | 881.3 | 3,302.6 | — | 3,302.6 | |||||||||||||||||||||||||||||||||||
Security | 592.1 | — | 592.1 | 603.9 | — | 603.9 | 600.4 | — | 600.4 | 626.2 | — | 626.2 | 2,422.6 | — | 2,422.6 | |||||||||||||||||||||||||||||||||||
Total | $ | 2,476.5 | $ | — | $ | 2,476.5 | $ | 2,859.4 | $ | — | $ | 2,859.4 | $ | 2,759.3 | $ | — | $ | 2,759.3 | $ | 2,906.0 | $ | — | $ | 2,906.0 | $ | 11,001.2 | $ | — | $ | 11,001.2 | ||||||||||||||||||||
SEGMENT PROFIT | ||||||||||||||||||||||||||||||||||||||||||||||||||
Construction & DIY | $ | 166.1 | $ | 3.3 | $ | 169.4 | $ | 210.1 | $ | 2.8 | $ | 212.9 | $ | 198.5 | $ | 3.1 | $ | 201.6 | $ | 202.8 | $ | 3.8 | $ | 206.6 | $ | 777.5 | $ | 13.0 | $ | 790.5 | ||||||||||||||||||||
Industrial | 89.4 | 12.4 | 101.8 | 117.6 | 6.1 | 123.7 | 114.6 | 2.3 | 116.9 | 135.1 | 4.0 | 139.1 | 456.7 | 24.8 | 481.5 | |||||||||||||||||||||||||||||||||||
Security | 57.4 | 6.4 | 63.8 | 54.7 | 8.8 | 63.5 | 61.4 | 11.9 | 73.3 | 64.5 | 11.6 | 76.1 | 238.0 | 38.7 | 276.7 | |||||||||||||||||||||||||||||||||||
Segment Profit | $ | 312.9 | $ | 22.1 | $ | 335.0 | $ | 382.4 | $ | 17.7 | $ | 400.1 | $ | 374.5 | $ | 17.3 | $ | 391.8 | $ | 402.4 | $ | 19.4 | $ | 421.8 | $ | 1,472.2 | $ | 76.5 | $ | 1,548.7 | ||||||||||||||||||||
Corporate Overhead | (69.0 | ) | 25.5 | (43.5 | ) | (53.7 | ) | 14.2 | (39.5 | ) | (56.4 | ) | 19.9 | (36.5 | ) | (74.8 | ) | 29.7 | (45.1 | ) | (253.9 | ) | 89.3 | (164.6 | ) | |||||||||||||||||||||||||
Total | $ | 243.9 | $ | 47.6 | $ | 291.5 | $ | 328.7 | $ | 31.9 | $ | 360.6 | $ | 318.1 | $ | 37.2 | $ | 355.3 | $ | 327.6 | $ | 49.1 | $ | 376.7 | $ | 1,218.3 | $ | 165.8 | $ | 1,384.1 | ||||||||||||||||||||
Segment Profit as a Percentage of Net Sales | ||||||||||||||||||||||||||||||||||||||||||||||||||
Construction & DIY | 14.4 | % | 14.7 | % | 15.1 | % | 15.3 | % | 14.9 | % | 15.1 | % | 14.5 | % | 14.8 | % | 14.7 | % | 15.0 | % | ||||||||||||||||||||||||||||||
Industrial | 12.2 | % | 13.9 | % | 13.7 | % | 14.4 | % | 13.9 | % | 14.2 | % | 15.3 | % | 15.8 | % | 13.8 | % | 14.6 | % | ||||||||||||||||||||||||||||||
Security | 9.7 | % | 10.8 | % | 9.1 | % | 10.5 | % | 10.2 | % | 12.2 | % | 10.3 | % | 12.2 | % | 9.8 | % | 11.4 | % | ||||||||||||||||||||||||||||||
Segment Profit | 12.6 | % | 13.5 | % | 13.4 | % | 14.0 | % | 13.6 | % | 14.2 | % | 13.8 | % | 14.5 | % | 13.4 | % | 14.1 | % | ||||||||||||||||||||||||||||||
Corporate Overhead | (2.8 | )% | (1.8 | )% | (1.9 | )% | (1.4 | )% | (2.0 | )% | (1.3 | )% | (2.6 | )% | (1.6 | )% | (2.3 | )% | (1.5 | )% | ||||||||||||||||||||||||||||||
Total | 9.8 | % | 11.8 | % | 11.5 | % | 12.6 | % | 11.5 | % | 12.9 | % | 11.3 | % | 13.0 | % | 11.1 | % | 12.6 | % | ||||||||||||||||||||||||||||||
1 | Reported, as adjusted for the recast of segment net sales and profit between the Construction and Do-it Yourself (“CDIY”) and Industrial segments to align reporting with the current management of the Company's operations in the emerging markets to be more comparable with the current year presentation. There is no impact to the consolidated financial statements of the Company as a result of this segment realignment. | |||||||||||||||||||||||||||||||||||||||||||||||||
2 | Merger and acquisition-related charges, as reported, relate primarily to the Black & Decker merger and Niscayah and Infastech acquisitions, including facility closure-related charges, employee-related charges and integration costs. | |||||||||||||||||||||||||||||||||||||||||||||||||
3 | The normalized 2013 business segment information adjusted for the previously mentioned realignment of certain segment net sales and segment profit from the CDIY segment to the Industrial segment, as reconciled to GAAP as adjusted above, is considered relevant to aid analysis of the Company’s segment profit results aside from the material impact of the merger and acquisition-related charges. |
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