BUSINESS SEGMENTS AND GEOGRAPHIC AREAS

12 Months Ended

Dec. 30, 2017

Segment Reporting [Abstract]

BUSINESS SEGMENTS AND GEOGRAPHIC AREAS

 BUSINESS SEGMENTS AND GEOGRAPHIC AREAS

The Company classifies its business into three reportable segments, which also represent its operating segments: Tools & Storage, Industrial and Security.

The Tools & Storage segment is comprised of the Power Tools & Equipment ("PTE") and Hand Tools, Accessories & Storage ("HTAS") businesses. The PTE business includes both professional and consumer products. Professional products include professional grade corded and cordless electric power tools and equipment including drills, impact wrenches and drivers, grinders, saws, routers and sanders, as well as pneumatic tools and fasteners including nail guns, nails, staplers and staples, concrete and masonry anchors. Consumer products include corded and cordless electric power tools sold primarily under the BLACK+DECKER® brand, lawn and garden products, including hedge trimmers, string trimmers, lawn mowers, edgers and related accessories, and home products such as hand-held vacuums, paint tools and cleaning appliances. The HTAS business sells hand tools, power tool accessories and storage products. Hand tools include measuring, leveling and layout tools, planes, hammers, demolition tools, clamps, vises, knives, saws, chisels and industrial and automotive tools. Power tool accessories include drill bits, screwdriver bits, router bits, abrasives, saw blades and threading products. Storage products include tool boxes, sawhorses, medical cabinets and engineered storage solution products.

The Industrial segment is comprised of the Engineered Fastening and Infrastructure businesses. The Engineered Fastening business primarily sells engineered fastening products and systems designed for specific applications. The product lines include blind rivets and tools, blind inserts and tools, drawn arc weld studs and systems, engineered plastic and mechanical fasteners, self-piercing riveting systems, precision nut running systems, micro fasteners, and high-strength structural fasteners. The Infrastructure business consists of the Oil & Gas and Hydraulics businesses. The Oil & Gas business sells and rents custom pipe handling, joint welding and coating equipment used in the construction of large and small diameter pipelines, and provides pipeline inspection services. The Hydraulics business sells hydraulic tools and accessories.

The Security segment is comprised of the Convergent Security Solutions ("CSS") and Mechanical Access Solutions ("MAS") businesses. The CSS business designs, supplies and installs commercial electronic security systems and provides electronic security services, including alarm monitoring, video surveillance, fire alarm monitoring, systems integration and system maintenance. Purchasers of these systems typically contract for ongoing security systems monitoring and maintenance at the time of initial equipment installation. The business also sells healthcare solutions, which include asset tracking, infant protection, pediatric protection, patient protection, wander management, fall management, and emergency call products. The MAS business primarily sells automatic doors.

The Company utilizes segment profit, which is defined as net sales minus cost of sales and SG&A inclusive of the provision for doubtful accounts (aside from corporate overhead expense), and segment profit as a percentage of net sales to assess the profitability of each segment. Segment profit excludes the corporate overhead expense element of SG&A, interest income, interest expense, other, net (inclusive of intangible asset amortization expense), restructuring charges and asset impairments, gain on sales of businesses, pension settlement and income taxes. Refer to Note O, Restructuring Charges and Asset Impairments, for the amount of net restructuring charges by segment, and Note F, Goodwill and Intangible Assets, for intangible asset amortization expense by segment. Corporate overhead is comprised of world headquarters facility expense, cost for the executive management team and cost for certain centralized functions that benefit the entire Company but are not directly attributable to the businesses, such as legal and corporate finance functions. Transactions between segments are not material. Segment assets primarily include cash, accounts receivable, inventory, other current assets, property, plant and equipment, intangible assets and other miscellaneous assets.

Net sales and long-lived assets are attributed to the geographic regions based on the geographic locations of the end customer and the Company subsidiary, respectively.

BUSINESS SEGMENTS

(Millions of Dollars)	2017			2016			2015
Net Sales
Tools & Storage	$	8,862.4		$	7,469.2		$	7,140.7
Industrial	1,946.0			1,840.3			1,938.2
Security	1,938.8			2,097.4			2,092.9
Consolidated	$	12,747.2		$	11,406.9		$	11,171.8
Segment Profit
Tools & Storage	$	1,450.1		$	1,266.9		$	1,170.1
Industrial	352.3			304.4			339.9
Security	212.3			269.2			239.6
Segment Profit	2,014.7			1,840.5			1,749.6
Corporate overhead	(216.8		)	(197.2		)	(164.0		)
Other, net	(289.7		)	(196.9		)	(222.0		)
Gain on sales of businesses	264.1			—			—
Pension settlement	(12.2		)	—			—
Restructuring charges and asset impairments	(51.5		)	(49.0		)	(47.6		)
Interest income	40.1			23.2			15.2
Interest expense	(222.6		)	(194.5		)	(180.4		)
Earnings from continuing operations before income taxes	$	1,526.1		$	1,226.1		$	1,150.8
Capital and Software Expenditures
Tools & Storage	$	327.2		$	227.3		$	191.7
Industrial	76.2			81.1			83.8
Security	39.0			38.6			35.9
Consolidated	$	442.4		$	347.0		$	311.4
Depreciation and Amortization
Tools & Storage	$	271.9		$	203.0		$	196.5
Industrial	107.4			106.8			112.3
Security	81.4			98.2			105.2
Consolidated	$	460.7		$	408.0		$	414.0
Segment Assets
Tools & Storage	$	12,800.2		$	8,512.4		$	8,492.9
Industrial	3,412.8			3,359.0			3,438.7
Security	3,406.9			3,139.0			3,741.6
	19,619.9			15,010.4			15,673.2
Assets held for sale	—			523.4			—
Corporate assets	(540.0		)	101.1			(545.4		)
Consolidated	$	19,079.9		$	15,634.9		$	15,127.8

Corporate assets primarily consist of cash, deferred taxes, and property, plant and equipment. Based on the nature of the Company's cash pooling arrangements, at times corporate-related cash accounts will be in a net liability position.

Sales to The Home Depot were 13%, 14%, and 13% of the Tools & Storage segment net sales in 2017, 2016 and 2015, respectively. Sales to Lowe's were 17%, 15% and 14% of the Tools & Storage segment net sales in 2017, 2016 and 2015, respectively.

GEOGRAPHIC AREAS

(Millions of Dollars)	2017		2016		2015
Net Sales
United States	$	6,915.7	$	6,135.6	$	5,882.0
Canada	577.8		515.3		516.3
Other Americas	774.4		635.6		706.5
France	609.0		582.7		595.7
Other Europe	2,742.0		2,468.6		2,371.5
Asia	1,128.3		1,069.1		1,099.8
Consolidated	$	12,747.2	$	11,406.9	$	11,171.8
Property, Plant & Equipment
United States	$	850.2	$	663.4	$	676.0
Canada	30.0		29.3		19.1
Other Americas	111.2		95.8		82.6
France	65.1		57.5		64.8
Other Europe	378.0		322.3		328.4
Asia	308.0		282.9		279.3
Consolidated	$	1,742.5	$	1,451.2	$	1,450.2