FORM 10-K |
þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Connecticut | 06-0548860 | |
(State Or Other Jurisdiction Of Incorporation Or Organization) | (I.R.S. Employer Identification Number) | |
1000 Stanley Drive New Britain, Connecticut | 06053 | |
(Address Of Principal Executive Offices) | (Zip Code) |
Title Of Each Class | Name Of Each Exchange On Which Registered | |
Common Stock-$2.50 Par Value per Share | New York Stock Exchange |
Large accelerated filer | þ | Accelerated filer | ¨ | |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ | |
Emerging growth company | ¨ |
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ITEM 16. | |||
SIGNATURES | |||
EX-10.4 | |||
EX-10.5 | |||
EX-10.16(e) | |||
EX-10.16(f) | |||
EX-10.17 | |||
EX-21 | |||
EX-23 | |||
EX-24 | |||
EX-31.1.a | |||
EX-31.1.b | |||
EX-32.1 | |||
EX-32.2 |
• | the difficulty of enforcing agreements and protecting assets through legal systems outside the U.S.; |
• | managing widespread operations and enforcing internal policies and procedures such as compliance with U.S. and foreign anti-bribery and anti-corruption regulations; |
• | trade protection measures and import or export licensing requirements including those related to the U.S.'s relationship with China; |
• | the application of certain labor regulations outside of the United States, including data privacy; |
• | compliance with a wide variety of non-U.S. laws and regulations; |
• | changes in the general political and economic conditions in the countries where the Company operates, particularly in emerging markets; |
• | the threat of nationalization and expropriation; |
• | increased costs and risks of doing business in a wide variety of jurisdictions; |
• | government controls limiting importation of goods; |
• | government controls limiting payments to suppliers for imported goods; |
• | limitations on, or impacts from, the repatriation of foreign earnings; and |
• | exposure to wage, price and capital controls. |
• | depressed consumer and business confidence may decrease demand for products and services; |
• | customers may implement cost-reduction initiatives or delay purchases to address inventory levels; |
• | significant declines of foreign currency values in countries where the Company operates could impact both the revenue growth and overall profitability in those geographies; |
• | a slowing or contracting Chinese economy could reduce China’s consumption and negatively impact the Company’s sales in that region, as well as globally; |
• | a devaluation of foreign currencies could have an effect on the credit worthiness (as well as the availability of funds) of customers in those regions impacting the collectability of receivables; |
• | a devaluation of foreign currencies could have an adverse effect on the value of financial assets of the Company in the effected countries; |
• | the impact of an event (individual country default, Brexit, or break up of the Euro) could have an adverse impact on the global credit markets and global liquidity potentially impacting the Company’s ability to access these credit markets and to raise capital. With respect to Brexit, until the terms of the UK’s exit from the EU in March 2019 are determined, including any transition period, it is difficult to predict its impact. It is possible that the withdrawal could, among other things, affect the legal and regulatory environments to which the Company’s businesses are subject, impact trade between the UK and the EU and other parties and create economic and political uncertainty in the region. |
• | a limitation on creating liens on certain property of the Company and its subsidiaries; |
• | a restriction on entering into certain sale-leaseback transactions; |
• | customary events of default. If an event of default occurs and is continuing, the Company might be required to repay all amounts outstanding under the respective instrument or agreement; and |
• | maintenance of a specified financial ratio. The Company has an interest coverage covenant that must be maintained to permit continued access to its committed revolving credit facilities. The interest coverage ratio tested for covenant compliance compares adjusted Earnings Before Interest, Taxes, Depreciation and Amortization to adjusted Interest Expense ("adjusted EBITDA"/"adjusted Interest Expense"); such adjustments to interest or EBITDA include, but are not limited to, removal of non-cash interest expense and stock-based compensation expense. The interest coverage ratio must not be less than 3.5 times and is computed quarterly, on a rolling twelve months (last twelve months) basis. Under this covenant definition, the interest coverage ratio was 8.5 times EBITDA or higher in each of the 2018 quarterly measurement periods. Management does not believe it is reasonably likely the Company will breach this covenant. Failure to maintain this ratio could adversely affect further access to liquidity. |
• | the failure to identify the most suitable candidates for acquisitions; |
• | the ability to identify and close on appropriate acquisition opportunities within desired time frames at reasonable cost; |
• | the anticipated additional revenues from the acquired companies do not materialize, despite extensive due diligence; |
• | the possibility that the acquired companies will not be successfully integrated or that anticipated cost savings, synergies, or other benefits will not be realized; |
• | the acquired businesses will lose market acceptance or profitability; |
• | the diversion of Company management’s attention and other resources; |
• | the incurrence of unexpected costs and liabilities, including those associated with undisclosed pre-closing regulatory violations by the acquired business; and |
• | the loss of key personnel, clients or customers of acquired companies. |
• | combine businesses and operations; |
• | integrate departments, systems and procedures; and |
• | obtain cost savings and other efficiencies from such reorganizations, including the Company's functional transformation initiative. |
Owned | Leased | Total | |||
Tools & Storage | 45 | 20 | 65 | ||
Industrial | 12 | 5 | 17 | ||
Security | 2 | 2 | 4 | ||
Corporate | 1 | 1 | 2 | ||
Total | 60 | 28 | 88 |
2018 | 2017 | |||||||||||||||||||||||
High | Low | Dividend Per Common Share | High | Low | Dividend Per Common Share | |||||||||||||||||||
QUARTER: | ||||||||||||||||||||||||
First | $ | 175.91 | $ | 150.84 | $ | 0.63 | $ | 132.87 | $ | 115.75 | $ | 0.58 | ||||||||||||
Second | $ | 157.38 | $ | 132.81 | $ | 0.63 | $ | 143.05 | $ | 130.57 | $ | 0.58 | ||||||||||||
Third | $ | 154.36 | $ | 131.84 | $ | 0.66 | $ | 152.30 | $ | 137.07 | $ | 0.63 | ||||||||||||
Fourth | $ | 147.51 | $ | 108.45 | $ | 0.66 | $ | 170.03 | $ | 154.53 | $ | 0.63 | ||||||||||||
Total | $ | 2.58 | $ | 2.42 |
2018 | (a) Total Number Of Shares Purchased | Average Price Paid Per Share | Total Number Of Shares Purchased As Part Of A Publicly Announced Plan or Program | (b) Maximum Number Of Shares That May Yet Be Purchased Under The Program | |||||||||
September 30 - November 3 | 7,366 | $ | 122.04 | — | 11,500,000 | ||||||||
November 4 - December 1 | — | $ | — | — | 11,500,000 | ||||||||
December 2 - December 29 | 89,899 | $ | 129.85 | — | 11,500,000 | ||||||||
Total | 97,265 | $ | 129.26 | — | 11,500,000 |
(a) | The shares of common stock in this column were deemed surrendered to the Company by participants in various benefit plans of the Company to satisfy the participants’ taxes related to vesting or delivery of time-vesting restricted share units under those plans. |
(b) | On July 20, 2017, the Board of Directors approved a new repurchase program for up to 15.0 million shares of the Company’s common stock and terminated its previously approved repurchase program. As of December 29, 2018, the authorized shares available for repurchase under the new repurchase program totaled approximately 11.5 million shares. The currently authorized shares available for repurchase do not include approximately 3.6 million shares reserved and authorized for purchase under the Company’s previously approved repurchase program relating to a forward share purchase contract entered into in March 2015. Refer to Note J, Capital Stock, of the Notes to Consolidated Financial Statements in Item 8 for further discussion. |
THE POINTS IN THE ABOVE TABLE ARE AS FOLLOWS: | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||
Stanley Black & Decker | $ | 100.00 | $ | 121.28 | $ | 137.64 | $ | 150.93 | $ | 227.12 | $ | 161.98 | |||||||||||
S&P 500 | $ | 100.00 | $ | 114.10 | $ | 115.69 | $ | 129.52 | $ | 157.79 | $ | 149.56 | |||||||||||
S&P 500 Industrials | $ | 100.00 | $ | 112.75 | $ | 116.07 | $ | 127.87 | $ | 156.91 | $ | 150.95 |
(Millions of Dollars, Except Per Share Amounts) | 2018 (a) | 20171 (b) | 20161 | 20151 | 2014 (c) | |||||||||||||||
Net sales | $ | 13,982 | $ | 12,967 | $ | 11,594 | $ | 11,172 | $ | 11,339 | ||||||||||
Net earnings from continuing operations attributable to common shareowners | $ | 605 | $ | 1,227 | $ | 968 | $ | 904 | $ | 857 | ||||||||||
Net loss from discontinued operations(d) | $ | — | $ | — | $ | — | $ | (20 | ) | $ | (96 | ) | ||||||||
Net Earnings Attributable to Common Shareowners | $ | 605 | $ | 1,227 | $ | 968 | $ | 884 | $ | 761 | ||||||||||
Basic earnings (loss) per share: | ||||||||||||||||||||
Continuing operations | $ | 4.06 | $ | 8.20 | $ | 6.63 | $ | 6.10 | $ | 5.49 | ||||||||||
Discontinued operations(d) | $ | — | $ | — | $ | — | $ | (0.14 | ) | $ | (0.62 | ) | ||||||||
Total basic earnings per share | $ | 4.06 | $ | 8.20 | $ | 6.63 | $ | 5.96 | $ | 4.87 | ||||||||||
Diluted earnings (loss) per share: | ||||||||||||||||||||
Continuing operations | $ | 3.99 | $ | 8.05 | $ | 6.53 | $ | 5.92 | $ | 5.37 | ||||||||||
Discontinued operations(d) | $ | — | $ | — | $ | — | $ | (0.13 | ) | $ | (0.60 | ) | ||||||||
Total diluted earnings per share | $ | 3.99 | $ | 8.05 | $ | 6.53 | $ | 5.79 | $ | 4.76 | ||||||||||
Percent of net sales (Continuing operations): | ||||||||||||||||||||
Cost of sales | 65.3 | % | 63.1 | % | 63.2 | % | 63.6 | % | 63.8 | % | ||||||||||
Selling, general and administrative(e) | 22.7 | % | 23.1 | % | 22.7 | % | 22.3 | % | 22.9 | % | ||||||||||
Other, net | 2.1 | % | 2.1 | % | 1.6 | % | 2.0 | % | 2.1 | % | ||||||||||
Restructuring charges and asset impairments | 1.1 | % | 0.4 | % | 0.4 | % | 0.4 | % | 0.2 | % | ||||||||||
Interest, net | 1.5 | % | 1.4 | % | 1.5 | % | 1.5 | % | 1.4 | % | ||||||||||
Earnings before income taxes | 7.3 | % | 11.8 | % | 10.6 | % | 10.3 | % | 9.6 | % | ||||||||||
Net earnings from continuing operations attributable to common shareowners | 4.3 | % | 9.5 | % | 8.3 | % | 8.1 | % | 7.6 | % | ||||||||||
Balance sheet data: | ||||||||||||||||||||
Total assets | $ | 19,408 | $ | 19,098 | $ | 15,655 | $ | 15,128 | $ | 15,803 | ||||||||||
Long-term debt, including current maturities | $ | 3,822 | $ | 3,806 | $ | 3,806 | $ | 3,797 | $ | 3,800 | ||||||||||
Stanley Black & Decker, Inc.’s shareowners’ equity | $ | 7,836 | $ | 8,302 | $ | 6,374 | $ | 5,816 | $ | 6,429 | ||||||||||
Ratios: | ||||||||||||||||||||
Total debt to total capital | 34.9 | % | 31.5 | % | 37.4 | % | 39.5 | % | 37.2 | % | ||||||||||
Income tax rate - continuing operations | 40.7 | % | 19.7 | % | 21.3 | % | 21.6 | % | 20.9 | % | ||||||||||
Common stock data: | ||||||||||||||||||||
Dividends per share | $ | 2.58 | $ | 2.42 | $ | 2.26 | $ | 2.14 | $ | 2.04 | ||||||||||
Equity per basic share at year-end | $ | 53.07 | $ | 55.20 | $ | 42.80 | $ | 39.11 | $ | 41.34 | ||||||||||
Market price per share — high | $ | 175.91 | $ | 170.03 | $ | 125.78 | $ | 110.17 | $ | 97.36 | ||||||||||
Market price per share — low | $ | 108.45 | $ | 115.75 | $ | 90.14 | $ | 90.51 | $ | 75.64 | ||||||||||
Weighted-average shares outstanding (in 000’s): | ||||||||||||||||||||
Basic | 148,919 | 149,629 | 146,041 | 148,234 | 156,090 | |||||||||||||||
Diluted | 151,643 | 152,449 | 148,207 | 152,706 | 159,737 | |||||||||||||||
Other information: | ||||||||||||||||||||
Average number of employees | 60,785 | 57,076 | 53,231 | 51,815 | 50,375 | |||||||||||||||
Shareowners of record at end of year | 9,727 | 10,014 | 10,313 | 10,603 | 10,932 |
(a) | The Company's 2018 results include $450 million of pre-tax charges related to acquisitions, an environmental remediation settlement, a non-cash fair value adjustment, a cost reduction program, an incremental freight charge related to a service provider's bankruptcy, and a loss related to a previously divested business. As a result, as a |
(b) | The Company's 2017 results include $156 million of pre-tax acquisition-related charges and a $264 million pre-tax gain on sales of businesses, primarily related to the divestiture of the mechanical security businesses. As a result, as a percentage of Net sales, Cost of sales was 36 basis points higher, Selling, general, & administrative was 29 basis points higher, Other, net was 45 basis points higher, Restructuring charges and asset impairments was 11 basis points higher, and Earnings before income taxes was 83 basis points higher. The net tax benefit of the acquisition-related charges and gain on sales of businesses was $7 million. Income taxes on continuing operations for 2017 also includes a one-time net tax charge of $24 million related to the Act. Overall, the acquisition-related charges, gain on sales of businesses, and one-time net tax charge related to the recently enacted U.S. tax legislation resulted in a net increase to the Company's 2017 net earnings from continuing operations attributable to common shareowners of $91 million (or $0.59 per diluted share). |
(c) | The Company's 2014 results include $54 million of pre-tax charges related to merger and acquisition-related charges. As a result of these charges, net earnings attributable to common shareowners were reduced by $49 million (or $0.30 per diluted share). As a percentage of Net sales, Cost of sales was 2 basis points higher, Selling, general & administrative was 28 basis points higher, Other, net was 2 basis points higher, Earnings before income taxes was 48 basis points lower, and Net earnings attributable to common shareowners was 43 basis points lower. The Income tax rate - continuing operations was 53 basis points higher. |
(d) | Discontinued operations in 2015 reflects a $20 million loss, or $0.13 per diluted share, primarily related to operating losses associated with the Security segment’s Spain and Italy operations (“Security Spain and Italy”), which were classified as held for sale in the fourth quarter of 2014 and subsequently sold in 2015. Amounts in 2014 reflect a $96 million loss, or $0.60 per diluted share, associated with Security Spain and Italy as well as two small businesses that were divested in 2014. |
(e) | SG&A is inclusive of the Provision for Doubtful Accounts. |
• | Continue organic growth momentum by utilizing the Stanley Fulfillment System ("SFS") 2.0 operating system, diversifying toward higher-growth, higher-margin businesses, and increasing the relative weighting of emerging markets; |
• | Be selective and operate in markets where brand is meaningful, the value proposition is definable and sustainable through innovation, and global cost leadership is achievable; and |
• | Pursue acquisitive growth on multiple fronts by building upon its existing global tools platform, expanding the Industrial platform in Engineered Fastening and Infrastructure, consolidating the commercial electronic security industry, and pursuing adjacencies with sound industrial logic. |
• | 4-6% organic revenue growth; |
• | 10-12% total revenue growth; |
• | 10-12% total EPS growth (7-9% organically) excluding acquisition-related charges; |
• | Free cash flow equal to, or exceeding, net income; and |
• | Sustain 10+ working capital turns. |
• | $66 million reducing Gross Profit primarily pertaining to amortization of the inventory step-up adjustment for the Nelson acquisition and an incremental freight charge recorded in the fourth quarter of 2018 due to nonperformance by a third-party service provider; |
• | $158 million in SG&A primarily for integration-related costs, consulting fees, and a non-cash fair value adjustment; |
• | $108 million in Other, net primarily related to deal transaction costs and the settlement with the Environmental Protection Agency ("EPA"); |
• | $1 million related to a previously divested business; and |
• | $117 million in Restructuring charges which primarily related to a cost reduction program in the fourth quarter of 2018. |
• | $47 million reducing Gross Profit primarily pertaining to amortization of the inventory step-up adjustment for the Newell Tools acquisition; |
• | $38 million in SG&A primarily for integration-related costs and consulting fees; |
• | $58 million in Other, net primarily for deal transaction and consulting costs; and |
• | $13 million in Restructuring charges pertaining to facility closures and employee severance. |
• | The Tools & Storage business is the tool company to own, with strong brands, proven innovation, global scale, and a broad offering of power tools, hand tools, accessories, and storage & digital products across many channels in both developed and developing markets. |
• | The Engineered Fastening business is a highly profitable, GDP+ growth business offering highly engineered, value-added innovative solutions with recurring revenue attributes and global scale. |
• | The Security business, with its attractive recurring revenue, presents a significant margin accretion opportunity over the longer term and has historically provided a stable revenue stream through economic cycles, is a gateway into the digital world and an avenue to capitalize on rapid digital changes. Security has embarked on a business transformation which will apply technology to lower its cost to serve and create new offerings for its small to medium enterprise and large key account customers. |
• | Digital Excellence uses the power of digital to contemporize, be disruptive, and create value throughout the Company's array of products, processes and business models. Digital Excellence means leveraging the power of emerging technologies across the Company's businesses to connected devices, the Internet of Things ("IoT"), and big data, as well as social and mobile, even more than what is being done today. Digital is penetrating all aspects of the organization and feeds into and supports the other elements of SFS 2.0 - enabling better asset efficiency through Core |
• | Commercial Excellence is about how the Company becomes more effective and efficient in its customer-facing processes resulting in continued share gains and margin expansion throughout its businesses. The Company views Commercial Excellence as world-class execution across seven areas: customer insights, innovation and portfolio management, pricing and promotion, brand and marketing, sales force deployment and effectiveness, channel programs, and the customer experience. |
• | Breakthrough Innovation is aimed at developing a culture to identify and commercialize market disrupting innovations, each with revenue generation potential greater than $100 million annually. The Company's focus remains on utilizing technologies to come up with major breakthroughs in the industries in which the Company operates which, when combined with its existing strong core innovation machine, will drive outsized share gains and margin expansion. |
• | Core SFS / Industry 4.0, which targets cost and asset efficiency, remains as the foundation for the Company's operating system and has yielded significant advances in improving working capital turns and free cash flow generation. The five operating principles encompassed by Core SFS / Industry 4.0, which work in concert, include: sales and operations planning ("S&OP"), operational lean, complexity reduction, global supply management, and order-to-cash excellence. The Company plans to continue leveraging these principles to further enhance the Company's already strong asset efficiency performance. Additionally, the Company is making investments behind the adoption of Industry 4.0 and advancing the Company's capabilities surrounding the automation of manufacturing that includes IoT, cloud computing, Artificial Intelligence ("AI"), 3-D printing, robotics, and advanced materials, among others. |
• | Functional Transformation takes a clean-sheet approach to redesigning the Company's key support functions such as Finance, HR, IT and others, which although highly effective, after roughly a hundred acquisitions are not as efficient as they can be based on external benchmarks. This presents the Company with an opportunity to reduce complexity in order to realize the benefits from scale, reduce its SG&A as a percent of sales, and become a cost effectiveness enabler with the side benefit of helping to fund the other aspects of SFS 2.0 over the long term and to support margin expansion. |
(Millions of Dollars) | 2018 | 2017 | 2016 | ||||||||
Net sales | $ | 9,814 | $ | 9,045 | $ | 7,619 | |||||
Segment profit | $ | 1,393 | $ | 1,439 | $ | 1,258 | |||||
% of Net sales | 14.2 | % | 15.9 | % | 16.5 | % |
(Millions of Dollars) | 2018 | 2017 | 2016 | ||||||||
Net sales | $ | 2,188 | $ | 1,974 | $ | 1,864 | |||||
Segment profit | $ | 320 | $ | 346 | $ | 300 | |||||
% of Net sales | 14.6 | % | 17.5 | % | 16.1 | % |
(Millions of Dollars) | 2018 | 2017 | 2016 | ||||||||
Net sales | $ | 1,981 | $ | 1,947 | $ | 2,110 | |||||
Segment profit | $ | 169 | $ | 212 | $ | 268 | |||||
% of Net sales | 8.5 | % | 10.9 | % | 12.7 | % |
(Millions of Dollars) | 12/30/2017 | Net Additions | Usage | Currency | 12/29/2018 | ||||||||||||||
Severance and related costs | $ | 20.0 | $ | 151.0 | $ | (64.1 | ) | $ | (1.2 | ) | $ | 105.7 | |||||||
Facility closures and asset impairments | 3.2 | 9.3 | (9.4 | ) | — | 3.1 | |||||||||||||
Total | $ | 23.2 | $ | 160.3 | $ | (73.5 | ) | $ | (1.2 | ) | $ | 108.8 |
(Millions of Dollars) | 2018 | 2017 1 | 2016 1 | ||||||||
Net cash provided by operating activities | $ | 1,261 | $ | 669 | $ | 1,186 | |||||
Less: capital and software expenditures | (492 | ) | (443 | ) | (347 | ) | |||||
Free cash flow | $ | 769 | $ | 226 | $ | 839 |
Payments Due by Period | |||||||||||||||||||
(Millions of Dollars) | Total | 2019 | 2020-2021 | 2022-2023 | Thereafter | ||||||||||||||
Long-term debt (a) | $ | 3,862 | $ | 403 | $ | 401 | $ | 758 | $ | 2,300 | |||||||||
Interest payments on long-term debt (b) | 3,065 | 161 | 310 | 258 | 2,336 | ||||||||||||||
Short-term borrowings | 373 | 373 | — | — | — | ||||||||||||||
Operating leases | 533 | 135 | 188 | 98 | 112 | ||||||||||||||
Inventory purchase commitments (c) | 466 | 466 | — | — | — | ||||||||||||||
Deferred compensation | 27 | 3 | 5 | 1 | 18 | ||||||||||||||
Marketing obligations | 52 | 32 | 16 | 4 | — | ||||||||||||||
Derivatives (d) | 8 | — | — | 8 | — | ||||||||||||||
Forward stock purchase contract (e) | 350 | — | 350 | — | — | ||||||||||||||
Pension funding obligations (f) | 44 | 44 | — | — | — | ||||||||||||||
Contract adjustment fees (g) | 60 | 40 | 20 | — | — | ||||||||||||||
Purchase price (h) | 250 | — | 250 | — | — | ||||||||||||||
U.S. income tax (i) | 366 | — | 62 | 102 | 202 | ||||||||||||||
Total contractual cash obligations | $ | 9,456 | $ | 1,657 | $ | 1,602 | $ | 1,229 | $ | 4,968 |
(a) | Future payments on long-term debt encompass all payments related to aggregate debt maturities, excluding certain fair value adjustments included in long-term debt. As previously discussed, the Company redeemed all of the outstanding 2053 Junior Subordinated Debentures on February 25, 2019. Accordingly, the payment related to the redemption has been reflected in 2019 in the table above. Refer to Note H, Long-Term Debt and Financing Arrangements, for further discussion. |
(b) | Future interest payments on long-term debt reflect the applicable fixed interest rate or variable rate for floating rate debt in effect at December 29, 2018. In addition, interest payments related to the 2053 Junior Subordinated Debentures have been adjusted accordingly as a result of the February 25, 2019 redemption discussed in (a) above. |
(c) | Inventory purchase commitments primarily consist of open purchase orders to purchase raw materials, components, and sourced products. |
(d) | Future cash flows on derivative instruments reflect the fair value and accrued interest as of December 29, 2018. The ultimate cash flows on these instruments will differ, perhaps significantly, based on applicable market interest and foreign currency rates at their maturity. |
(e) | In March 2015, the Company entered into a forward share purchase contract with a financial institution counterparty which obligates the Company to pay $350 million, plus an additional amount related to the forward component of the contract. In June 2018, the Company amended the settlement date to April 2021, or earlier at the Company's option. See Note J, Capital Stock, for further discussion. |
(f) | This amount principally represents contributions either required by regulations or laws or, with respect to unfunded plans, necessary to fund current benefits. The Company has not presented estimated pension and post-retirement funding beyond 2019 as funding can vary significantly from year to year based upon changes in the fair value of the plan assets, actuarial assumptions, and curtailment/settlement actions. |
(g) | These amounts represent future contract adjustment payments to holders of the Company's 2020 Purchase Contracts. See Note J, Capital Stock, for further discussion. |
(h) | The Company acquired the Craftsman® brand from Sears Holdings in March 2017. As part of the purchase price, the Company is obligated to pay $250 million in March 2020. See Note E, Acquisitions, for further discussion. |
(i) | Income tax liability for the one-time deemed repatriation tax on unremitted foreign earnings and profits. See Note Q, Income Taxes, for further discussion. |
Amount of Commitment Expirations Per Period | ||||||||||||||||||||
(Millions of Dollars) | Total | 2019 | 2020-2021 | 2022-2023 | Thereafter | |||||||||||||||
U.S. lines of credit | $ | 3,000 | $ | 1,000 | $ | — | $ | 2,000 | $ | — |
Name and Age | Office | Date Elected to Office | ||
James M. Loree (60) | President & Chief Executive Officer since August 2016. President & Chief Operating Officer (2013); Executive Vice President and Chief Operating Officer (2009); Executive Vice President Finance and Chief Financial Officer (1999). | 7/19/1999 | ||
Donald Allan, Jr. (54) | Executive Vice President & Chief Financial Officer since October 2016. Senior Vice President & Chief Financial Officer (2010); Vice President & Chief Financial Officer (2009); Vice President & Corporate Controller (2002); Corporate Controller (2000); Assistant Controller (1999). | 10/24/2006 | ||
Jeffery D. Ansell (51) | Executive Vice President & President, Tools & Storage since October 2016. Senior Vice President and Group Executive, Global Tools & Storage (2015); Senior Vice President and Group Executive, Construction and DIY (2010); Vice President & President, Stanley Consumer Tools Group (2006); President - Consumer Tools and Storage (2004); President of Industrial Tools & Storage (2002); Vice President - Global Consumer Tools Marketing (2001); Vice President Consumer Sales America (1999). | 2/22/2006 | ||
Janet M. Link (49) | Senior Vice President, General Counsel and Secretary since July 2017. Executive Vice President, General Counsel, JC Penney Company, Inc. (2015); Vice President, Deputy General Counsel, JC Penney Company, Inc. (2014); Vice President, Deputy General Counsel, Clear Channel Companies (2013). | 7/19/2017 | ||
Jaime A. Ramirez (51) | Senior Vice President & President, Global Emerging Markets since October 2012. President, Construction & DIY, Latin America (2010); Vice President and General Manager - Latin America, Power Tools & Accessories, The Black & Decker Corporation (2008); Vice President and General Manager - Andean Region The Black & Decker Corporation (2007). | 3/12/2010 | ||
Joseph R. Voelker (63) | Senior Vice President, Chief Human Resources Officer since April 2013. VP Human Resources (2009); VP Human Resources - ITG/Corporate Staff (2006); VP Human Resources - Tools Group/Operations (2004); HR Director, Tools Group (2003); HR Director, Operations (1999). | 4/1/2013 | ||
John H. Wyatt (60) | President, Stanley Engineered Fastening since January 2016. President, Sales & Marketing - Global Tools & Storage (2015); President, Construction & DIY, Europe and ANZ (2012); President, Construction & DIY, EMEA (2010); President-Europe, Middle East, and Africa, Power Tools and Accessories, The Black & Decker Corporation (2008); Vice President-Consumer Products (Europe, Middle East and Africa), The Black & Decker Corporation (2006). | 3/12/2010 |
(A) | (B) | (C) | |||||||||
Plan Category | Number of securities to be issued upon exercise of outstanding options and stock awards | Weighted-average exercise price of outstanding options | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (A)) | ||||||||
Equity compensation plans approved by security holders | 9,141,523 | (1) | $ | 107.36 | (2) | 15,884,117 | (3) | ||||
Equity compensation plans not approved by security holders (4) | — | — | — | ||||||||
Total | 9,141,523 | $ | 107.36 | 15,884,117 |
(1) | Consists of 7,352,263 shares underlying outstanding stock options (whether vested or unvested) with a weighted-average exercise price of $107.36 and a weighted-average term of 6.35 years; 1,702,142 shares underlying time-vesting restricted stock units that have not yet vested and the maximum number of shares that will be issued pursuant to outstanding long-term performance awards if all established goals are met; and 87,118 of shares earned but related to which participants elected deferral of delivery. All stock-based compensation plans are discussed in Note J, Capital Stock, of the Notes to Consolidated Financial Statements in Item 8. |
(2) | There is no cost to the recipient for shares issued pursuant to time-vesting restricted stock units or long-term performance awards. Because there is no strike price applicable to these stock awards they are excluded from the weighted-average exercise price which pertains solely to outstanding stock options. |
(3) | Consists of 1,606,224 of shares available for purchase under the employee stock purchase plan ("ESPP") at the election of employees and 14,277,893 securities available for future grants by the Board of Directors under stock-based compensation plans. On January 22, 2018, the Board of Directors adopted the 2018 Omnibus Award Plan (the "2018 Plan") and authorized the issuance of 16,750,000 shares of the Company's common stock in connection with the awards pursuant to the 2018 Plan. No further awards will be issued under the Company's 2013 Long-Term Incentive Plan. |
(4) | U.S. employees are eligible to contribute from 1% to 25% of their salary to a qualified tax deferred savings plan as described in the Employee Stock Ownership Plan ("ESOP") section of Note L, Employee Benefit Plans, of the Notes to the Consolidated Financial Statements in Item 8. The Company contributes an amount equal to one half of the employee contribution up to the first 7% of salary. There is a non-qualified tax deferred savings plan for highly compensated salaried employees which mirrors the qualified plan provisions, but was not specifically approved by security holders. Eligible highly compensated salaried U.S. employees are eligible to contribute from 1% to 50% of their salary to the non-qualified tax deferred savings plan. The same matching arrangement was provided for highly compensated salaried employees in the non-qualified plan, to the extent the match was not fully met in the qualified plan, except that the arrangement for these employees is outside of the ESOP, and is not funded in advance of distributions. Effective January 1, 2019, the Company, at its discretion, will determine whether matching and core contributions will be made for the non-qualified tax deferred savings plan for a particular year. If the Company decides to make matching contributions for a year, it will make contributions, in an amount determined in its discretion, that may constitute part or all of or more than the matching contributions that would have been made pursuant to the |
Schedule II — Valuation and Qualifying Accounts is included in Item 15 (page 54). |
Management’s Report on Internal Control Over Financial Reporting (page 55). |
Report of Independent Registered Public Accounting Firm — Financial Statement Opinion (page 56). |
Report of Independent Registered Public Accounting Firm — Internal Control Opinion (page 57). |
Consolidated Statements of Operations — fiscal years ended December 29, 2018, December 30, 2017, and December 31, 2016 (page 58). |
Consolidated Statements of Comprehensive Income — fiscal years ended December 29, 2018, December 30, 2017, and December 31, 2016 (page 59). |
Consolidated Balance Sheets — December 29, 2018 and December 30, 2017 (page 60). |
Consolidated Statements of Cash Flows — fiscal years ended December 29, 2018, December 30, 2017, and December 31, 2016 (page 61). |
Consolidated Statements of Changes in Shareowners’ Equity — fiscal years ended December 29, 2018, December 30, 2017, and December 31, 2016 (page 63). |
Notes to Consolidated Financial Statements (page 64). |
Selected Quarterly Financial Data (Unaudited) (page 115). |
Consent of Independent Registered Public Accounting Firm (Exhibit 23). |
STANLEY BLACK & DECKER, INC. | ||
By: | /s/ James M. Loree | |
James M. Loree, President and Chief Executive Officer | ||
Date: | February 26, 2019 |
Signature | Title | Date | |||
/s/ James M. Loree | President and Chief Executive Officer | February 26, 2019 | |||
James M. Loree | |||||
/s/ Donald Allan, Jr. | Executive Vice President and Chief Financial Officer | February 26, 2019 | |||
Donald Allan, Jr. | |||||
/s/ Jocelyn S. Belisle | Vice President and Chief Accounting Officer | February 26, 2019 | |||
Jocelyn S. Belisle | |||||
* | Director | February 26, 2019 | |||
Andrea J. Ayers | |||||
* | Director | February 26, 2019 | |||
George W. Buckley | |||||
* | Director | February 26, 2019 | |||
Patrick D. Campbell | |||||
* | Director | February 26, 2019 | |||
Carlos M. Cardoso | |||||
* | Director | February 26, 2019 | |||
Robert B. Coutts | |||||
* | Director | February 26, 2019 | |||
Debra A. Crew | |||||
* | Director | February 26, 2019 | |||
Michael D. Hankin | |||||
* | Director | February 26, 2019 | |||
Marianne M. Parrs | |||||
* | Director | February 26, 2019 | |||
Robert L. Ryan | |||||
* | Director | February 26, 2019 | |||
James H. Scholefield | |||||
* | Director | February 26, 2019 | |||
Dmitri L. Stockton |
*By: /s/ Janet M. Link |
Janet M. Link (As Attorney-in-Fact) |
ADDITIONS | |||||||||||||||||||
Beginning Balance | Charged To Costs And Expenses | Charged To Other Accounts (b) | (a) Deductions | Ending Balance | |||||||||||||||
Allowance for Doubtful Accounts: | |||||||||||||||||||
Year Ended 2018 | $ | 80.4 | $ | 28.0 | $ | 12.5 | $ | (18.9 | ) | $ | 102.0 | ||||||||
Year Ended 2017 | $ | 78.5 | $ | 16.3 | $ | 8.9 | $ | (23.3 | ) | $ | 80.4 | ||||||||
Year Ended 2016 | $ | 72.9 | $ | 23.2 | $ | 4.5 | $ | (22.1 | ) | $ | 78.5 | ||||||||
Tax Valuation Allowance: | |||||||||||||||||||
Year Ended 2018 (c) | $ | 516.7 | $ | 146.2 | $ | (6.4 | ) | $ | (29.8 | ) | $ | 626.7 | |||||||
Year Ended 2017 | $ | 525.5 | $ | 262.4 | $ | 22.8 | $ | (294.0 | ) | $ | 516.7 | ||||||||
Year Ended 2016 | $ | 480.7 | $ | 74.5 | $ | 4.4 | $ | (34.1 | ) | $ | 525.5 |
(a) | With respect to the allowance for doubtful accounts, deductions represent amounts charged-off less recoveries of accounts previously charged-off. |
(b) | Amounts represent the impact of foreign currency translation, acquisitions and net transfers to/from other accounts. |
(c) | Refer to Note Q, Income Taxes, of the Notes to Consolidated Financial Statements in Item 8 for further discussion. |
/s/ James M. Loree | |
James M. Loree, President and Chief Executive Officer |
/s/ Donald Allan, Jr. | |
Donald Allan, Jr., Executive Vice President and Chief Financial Officer |
2018 | 2017 | 2016 | |||||||||
Net Sales | $ | 13,982.4 | $ | 12,966.6 | $ | 11,593.5 | |||||
Costs and Expenses | |||||||||||
Cost of sales | $ | 9,131.3 | $ | 8,188.3 | $ | 7,325.5 | |||||
Selling, general and administrative | 3,143.7 | 2,982.9 | 2,609.3 | ||||||||
Provision for doubtful accounts | 28.0 | 16.3 | 23.2 | ||||||||
Other, net | 287.0 | 269.2 | 185.9 | ||||||||
Loss (gain) on sales of businesses | 0.8 | (264.1 | ) | — | |||||||
Pension settlement | — | 12.2 | — | ||||||||
Restructuring charges and asset impairments | 160.3 | 51.5 | 49.0 | ||||||||
Interest income | (68.7 | ) | (40.1 | ) | (23.2 | ) | |||||
Interest expense | 277.9 | 222.6 | 194.5 | ||||||||
$ | 12,960.3 | $ | 11,438.8 | $ | 10,364.2 | ||||||
Earnings before income taxes | 1,022.1 | 1,527.8 | 1,229.3 | ||||||||
Income taxes | 416.3 | 300.9 | 261.7 | ||||||||
Net earnings | $ | 605.8 | $ | 1,226.9 | $ | 967.6 | |||||
Less: Net earnings (loss) attributable to non-controlling interests | 0.6 | (0.4 | ) | (0.4 | ) | ||||||
Net Earnings Attributable to Common Shareowners | $ | 605.2 | $ | 1,227.3 | $ | 968.0 | |||||
Earnings per share of common stock: | |||||||||||
Basic | $ | 4.06 | $ | 8.20 | $ | 6.63 | |||||
Diluted | $ | 3.99 | $ | 8.05 | $ | 6.53 |
2018 | 2017 | 2016 | |||||||||
Net Earnings Attributable to Common Shareowners | $ | 605.2 | $ | 1,227.3 | $ | 968.0 | |||||
Other comprehensive (loss) income: | |||||||||||
Currency translation adjustment and other | (373.0 | ) | 478.5 | (285.8 | ) | ||||||
Unrealized gains (losses) on cash flow hedges, net of tax | 85.8 | (66.3 | ) | 5.8 | |||||||
Unrealized gains (losses) on net investment hedges, net of tax | 59.9 | (85.2 | ) | 76.8 | |||||||
Pension gains (losses), net of tax | 2.1 | 5.5 | (24.2 | ) | |||||||
Other comprehensive (loss) income | $ | (225.2 | ) | $ | 332.5 | $ | (227.4 | ) | |||
Comprehensive income attributable to common shareowners | $ | 380.0 | $ | 1,559.8 | $ | 740.6 |
2018 | 2017 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 288.7 | $ | 637.5 | |||
Accounts and notes receivable, net | 1,607.8 | 1,628.7 | |||||
Inventories, net | 2,373.5 | 2,018.4 | |||||
Prepaid expenses | 240.5 | 234.6 | |||||
Other current assets | 58.9 | 39.8 | |||||
Total Current Assets | 4,569.4 | 4,559.0 | |||||
Property, Plant and Equipment, net | 1,915.2 | 1,742.5 | |||||
Goodwill | 8,956.7 | 8,776.1 | |||||
Customer Relationships, net | 1,165.2 | 1,170.7 | |||||
Trade Names, net | 2,254.8 | 2,248.9 | |||||
Other Intangible Assets, net | 64.4 | 87.8 | |||||
Other Assets | 482.3 | 512.7 | |||||
Total Assets | $ | 19,408.0 | $ | 19,097.7 | |||
LIABILITIES AND SHAREOWNERS' EQUITY | |||||||
Current Liabilities | |||||||
Short-term borrowings | $ | 376.1 | $ | 5.3 | |||
Current maturities of long-term debt | 2.5 | 977.5 | |||||
Accounts payable | 2,233.2 | 2,021.0 | |||||
Accrued expenses | 1,389.8 | 1,387.7 | |||||
Total Current Liabilities | 4,001.6 | 4,391.5 | |||||
Long-Term Debt | 3,819.8 | 2,828.2 | |||||
Deferred Taxes | 705.3 | 436.1 | |||||
Post-Retirement Benefits | 595.4 | 629.9 | |||||
Other Liabilities | 2,446.0 | 2,507.0 | |||||
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 2018 and 2017 Issued and outstanding 750,000 shares in 2018 and 2017 | 750.0 | 750.0 | |||||
Common stock, par value $2.50 per share: Authorized 300,000,000 shares in 2018 and 2017 Issued 176,902,738 shares in 2018 and 2017 | 442.3 | 442.3 | |||||
Retained earnings | 6,219.0 | 5,998.7 | |||||
Additional paid in capital | 4,621.0 | 4,643.2 | |||||
Accumulated other comprehensive loss | (1,814.3 | ) | (1,589.1 | ) | |||
ESOP | (10.5 | ) | (18.8 | ) | |||
10,207.5 | 10,226.3 | ||||||
Less: cost of common stock in treasury (25,600,288 shares in 2018 and 22,864,707 shares in 2017) | (2,371.3 | ) | (1,924.1 | ) | |||
Stanley Black & Decker, Inc. Shareowners’ Equity | 7,836.2 | 8,302.2 | |||||
Non-controlling interests | 3.7 | 2.8 | |||||
Total Shareowners’ Equity | 7,839.9 | 8,305.0 | |||||
Total Liabilities and Shareowners’ Equity | $ | 19,408.0 | $ | 19,097.7 |
2018 | 2017 | 2016 | |||||||||
Operating Activities: | |||||||||||
Net earnings | $ | 605.8 | $ | 1,226.9 | $ | 967.6 | |||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||
Depreciation and amortization of property, plant and equipment | 331.2 | 296.9 | 263.6 | ||||||||
Amortization of intangibles | 175.3 | 163.8 | 144.4 | ||||||||
Inventory step-up amortization | 9.6 | 43.2 | — | ||||||||
Loss (gain) on sales of businesses | 0.8 | (264.1 | ) | — | |||||||
Stock-based compensation expense | 76.5 | 78.7 | 81.2 | ||||||||
Provision for doubtful accounts | 28.0 | 16.3 | 23.2 | ||||||||
Deferred tax expense (benefit) | 191.1 | (103.0 | ) | (25.7 | ) | ||||||
Other non-cash items | 10.1 | 24.4 | 40.0 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (48.8 | ) | (905.6 | ) | (410.3 | ) | |||||
Inventories | (401.6 | ) | (303.0 | ) | (23.9 | ) | |||||
Accounts payable | 211.0 | 240.4 | 159.7 | ||||||||
Deferred revenue | 1.5 | 1.6 | (12.0 | ) | |||||||
Other current assets | (4.4 | ) | (5.9 | ) | 54.0 | ||||||
Other long-term assets | 28.9 | 84.9 | (67.1 | ) | |||||||
Accrued expenses | 70.1 | 123.3 | 6.9 | ||||||||
Defined benefit liabilities | (44.7 | ) | (66.5 | ) | (56.8 | ) | |||||
Other long-term liabilities | 20.5 | 16.2 | 40.7 | ||||||||
Net cash provided by operating activities | 1,260.9 | 668.5 | 1,185.5 | ||||||||
Investing Activities: | |||||||||||
Capital and software expenditures | (492.1 | ) | (442.4 | ) | (347.0 | ) | |||||
Sales of assets | 45.2 | 50.2 | 10.6 | ||||||||
Business acquisitions, net of cash acquired | (524.6 | ) | (2,583.5 | ) | (59.3 | ) | |||||
Sales of businesses, net of cash sold | (3.0 | ) | 756.9 | 24.0 | |||||||
Net investment hedge settlements | 25.7 | (23.3 | ) | 104.7 | |||||||
Proceeds related to deferred purchase price receivable | — | 704.7 | 345.1 | ||||||||
Other | (40.3 | ) | (29.4 | ) | (17.0 | ) | |||||
Net cash (used in) provided by investing activities | (989.1 | ) | (1,566.8 | ) | 61.1 | ||||||
Financing Activities: | |||||||||||
Payments on long-term debt | (977.5 | ) | (2.8 | ) | — | ||||||
Proceeds from debt issuance, net of fees | 990.0 | — | — | ||||||||
Net short-term borrowings (repayments) | 433.2 | (76.7 | ) | 1.9 | |||||||
Stock purchase contract fees | (40.3 | ) | (20.0 | ) | (13.8 | ) | |||||
Purchases of common stock for treasury | (527.1 | ) | (28.7 | ) | (374.1 | ) | |||||
Proceeds from issuances of preferred stock | — | 726.0 | — | ||||||||
Cash settlement on forward stock purchase contracts | — | — | (147.4 | ) | |||||||
Premium paid on equity option | (57.3 | ) | (25.1 | ) | — | ||||||
Proceeds from issuances of common stock | 38.5 | 90.8 | 418.5 | ||||||||
Cash dividends on common stock | (384.9 | ) | (362.9 | ) | (330.9 | ) | |||||
Other | (36.2 | ) | (5.4 | ) | 12.7 | ||||||
Net cash (used in) provided by financing activities | (561.6 | ) | 295.2 | (433.1 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (53.9 | ) | 81.0 | (101.7 | ) | ||||||
Change in cash, cash equivalents and restricted cash | (343.7 | ) | (522.1 | ) | 711.8 | ||||||
Cash, cash equivalents and restricted cash, beginning of year | 655.1 | 1,177.2 | 465.4 | ||||||||
Cash, cash equivalents and restricted cash, end of year | $ | 311.4 | $ | 655.1 | $ | 1,177.2 |
December 29, 2018 | December 30, 2017 | ||||||
Cash and cash equivalents | $ | 288.7 | $ | 637.5 | |||
Restricted cash included in Other current assets | 22.7 | 17.6 | |||||
Cash, cash equivalents and restricted cash | $ | 311.4 | $ | 655.1 |
Preferred Stock | Common Stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | ESOP | Treasury Stock | Non- Controlling Interests | Shareowners’ Equity | |||||||||||||||||||||||||||
Balance January 2, 2016 | $ | — | $ | 442.3 | $ | 4,421.7 | $ | 4,496.0 | $ | (1,694.2 | ) | $ | (34.9 | ) | $ | (1,815.0 | ) | $ | 47.6 | $ | 5,863.5 | ||||||||||||||
Net earnings | 968.0 | (0.4 | ) | 967.6 | |||||||||||||||||||||||||||||||
Other comprehensive loss | (227.4 | ) | (227.4 | ) | |||||||||||||||||||||||||||||||
Cash dividends declared — $2.26 per share | (330.9 | ) | (330.9 | ) | |||||||||||||||||||||||||||||||
Issuance of common stock | 20.9 | 386.1 | 407.0 | ||||||||||||||||||||||||||||||||
Settlement of forward share repurchase contract | 150.0 | (150.0 | ) | — | |||||||||||||||||||||||||||||||
Repurchase of common stock (4,651,463 shares) | 76.9 | (451.0 | ) | (374.1 | ) | ||||||||||||||||||||||||||||||
Non-controlling interest buyout | 12.2 | (40.6 | ) | (28.4 | ) | ||||||||||||||||||||||||||||||
Stock-based compensation related | 81.2 | 81.2 | |||||||||||||||||||||||||||||||||
Tax benefit related to stock options exercised | 11.5 | 11.5 | |||||||||||||||||||||||||||||||||
ESOP and related tax benefit | 1.2 | 9.0 | 10.2 | ||||||||||||||||||||||||||||||||
Balance December 31, 2016 | $ | — | $ | 442.3 | $ | 4,774.4 | $ | 5,134.3 | $ | (1,921.6 | ) | $ | (25.9 | ) | $ | (2,029.9 | ) | $ | 6.6 | $ | 6,380.2 | ||||||||||||||
Net earnings | 1,227.3 | (0.4 | ) | 1,226.9 | |||||||||||||||||||||||||||||||
Other comprehensive income | 332.5 | 332.5 | |||||||||||||||||||||||||||||||||
Cash dividends declared — $2.42 per share | (362.9 | ) | (362.9 | ) | |||||||||||||||||||||||||||||||
Issuance of common stock | (43.7 | ) | 134.5 | 90.8 | |||||||||||||||||||||||||||||||
Repurchase of common stock (202,075 shares) | (28.7 | ) | (28.7 | ) | |||||||||||||||||||||||||||||||
Issuance of preferred stock (750,000 shares) | 750.0 | (24.0 | ) | 726.0 | |||||||||||||||||||||||||||||||
Equity units - stock contract fees | (117.1 | ) | (117.1 | ) | |||||||||||||||||||||||||||||||
Non-controlling interest buyout | (3.4 | ) | (3.4 | ) | |||||||||||||||||||||||||||||||
Premium paid on equity option | (25.1 | ) | (25.1 | ) | |||||||||||||||||||||||||||||||
Stock-based compensation related | 78.7 | 78.7 | |||||||||||||||||||||||||||||||||
ESOP | 7.1 | 7.1 | |||||||||||||||||||||||||||||||||
Balance December 30, 2017 | $ | 750.0 | $ | 442.3 | $ | 4,643.2 | $ | 5,998.7 | $ | (1,589.1 | ) | $ | (18.8 | ) | $ | (1,924.1 | ) | $ | 2.8 | $ | 8,305.0 | ||||||||||||||
Net earnings | 605.2 | 0.6 | 605.8 | ||||||||||||||||||||||||||||||||
Other comprehensive loss | (225.2 | ) | (225.2 | ) | |||||||||||||||||||||||||||||||
Cash dividends declared — $2.58 per share | (384.9 | ) | (384.9 | ) | |||||||||||||||||||||||||||||||
Issuance of common stock | (41.4 | ) | 79.9 | 38.5 | |||||||||||||||||||||||||||||||
Repurchase of common stock (3,677,435 shares) | (527.1 | ) | (527.1 | ) | |||||||||||||||||||||||||||||||
Premium paid on equity option | (57.3 | ) | (57.3 | ) | |||||||||||||||||||||||||||||||
Non-controlling interest dissolution | 0.3 | 0.3 | |||||||||||||||||||||||||||||||||
Stock-based compensation related | 76.5 | 76.5 | |||||||||||||||||||||||||||||||||
ESOP | 8.3 | 8.3 | |||||||||||||||||||||||||||||||||
Balance December 29, 2018 | $ | 750.0 | $ | 442.3 | $ | 4,621.0 | $ | 6,219.0 | $ | (1,814.3 | ) | $ | (10.5 | ) | $ | (2,371.3 | ) | $ | 3.7 | $ | 7,839.9 |
Useful Life (Years) | ||
Land improvements | 10 — 20 | |
Buildings | 40 | |
Machinery and equipment | 3 — 15 | |
Computer software | 3 — 7 |
(Millions of Dollars, except per share amounts) | 20171 | Adoption of ASU 2014-09 | Adoption of ASU 2017-07 | 2017 | |||||||||||
Net Sales | $ | 12,747.2 | $ | 219.4 | $ | — | $ | 12,966.6 | |||||||
Cost of sales | $ | 7,969.2 | $ | 215.9 | $ | 3.2 | $ | 8,188.3 | |||||||
Selling, general and administrative | $ | 2,965.7 | $ | — | $ | 17.2 | $ | 2,982.9 | |||||||
Provision for doubtful accounts | $ | 14.4 | $ | 1.9 | $ | — | $ | 16.3 | |||||||
Other, net | $ | 289.7 | $ | — | $ | (20.5 | ) | $ | 269.2 | ||||||
Earnings before income taxes | $ | 1,526.1 | $ | 1.7 | $ | — | $ | 1,527.8 | |||||||
Income taxes | $ | 300.5 | $ | 0.4 | $ | — | $ | 300.9 | |||||||
Net earnings | $ | 1,225.6 | $ | 1.3 | $ | — | $ | 1,226.9 | |||||||
Diluted earnings per share of common stock | $ | 8.04 | $ | 0.01 | $ | — | $ | 8.05 |
(Millions of Dollars, except per share amounts) | 20161 | Adoption of ASU 2014-09 | Adoption of ASU 2017-07 | 2016 | |||||||||||
Net Sales | $ | 11,406.9 | $ | 186.6 | $ | — | $ | 11,593.5 | |||||||
Cost of sales | $ | 7,139.7 | $ | 182.0 | $ | 3.8 | $ | 7,325.5 | |||||||
Selling, general and administrative | $ | 2,602.0 | $ | — | $ | 7.3 | $ | 2,609.3 | |||||||
Provision for doubtful accounts | $ | 21.9 | $ | 1.3 | $ | — | $ | 23.2 | |||||||
Other, net | $ | 196.9 | $ | 0.1 | $ | (11.1 | ) | $ | 185.9 | ||||||
Earnings before income taxes | $ | 1,226.1 | $ | 3.2 | $ | — | $ | 1,229.3 | |||||||
Income taxes | $ | 261.2 | $ | 0.5 | $ | — | $ | 261.7 | |||||||
Net earnings | $ | 964.9 | $ | 2.7 | $ | — | $ | 967.6 | |||||||
Diluted earnings per share of common stock | $ | 6.51 | $ | 0.02 | $ | — | $ | 6.53 |
(Millions of Dollars) | 20171 | Adoption of ASU 2014-09 | 2017 | ||||||||
ASSETS | |||||||||||
Accounts and notes receivable, net | $ | 1,635.9 | $ | (7.2 | ) | $ | 1,628.7 | ||||
Other assets | $ | 487.8 | $ | 24.9 | $ | 512.7 | |||||
LIABILITIES AND SHAREOWNERS' EQUITY | |||||||||||
Current maturities of long-term debt | $ | 983.4 | $ | (5.9 | ) | $ | 977.5 | ||||
Accrued expenses | $ | 1,352.1 | $ | 35.6 | $ | 1,387.7 | |||||
Long-term debt | $ | 2,843.0 | $ | (14.8 | ) | $ | 2,828.2 | ||||
Deferred taxes | $ | 434.2 | $ | 1.9 | $ | 436.1 | |||||
Other liabilities | $ | 2,511.1 | $ | (4.1 | ) | $ | 2,507.0 | ||||
Retained earnings2 | $ | 5,990.4 | $ | 8.3 | $ | 5,998.7 | |||||
Accumulated other comprehensive loss | $ | (1,585.9 | ) | $ | (3.2 | ) | $ | (1,589.1 | ) |
(Millions of Dollars) | 20171 | Adoption of ASU 2014-09 | Adoption of ASU 2016-15 & 2016-18 | 2017 | |||||||||||
OPERATING ACTIVITIES | |||||||||||||||
Net earnings | $ | 1,225.6 | $ | 1.3 | $ | — | $ | 1,226.9 | |||||||
Provision for doubtful accounts | $ | 14.4 | $ | 1.9 | $ | — | $ | 16.3 | |||||||
Accounts receivable | $ | (200.6 | ) | $ | (0.3 | ) | $ | (704.7 | ) | $ | (905.6 | ) | |||
Deferred revenue | $ | 2.1 | $ | (0.5 | ) | $ | — | $ | 1.6 | ||||||
Other current assets | $ | 42.8 | $ | (3.3 | ) | $ | (45.4 | ) | $ | (5.9 | ) | ||||
Other long-term assets | $ | 83.6 | $ | 1.3 | $ | — | $ | 84.9 | |||||||
Accrued expenses | $ | 120.1 | $ | 3.2 | $ | — | $ | 123.3 | |||||||
Other long-term liabilities | $ | 19.8 | $ | (3.6 | ) | $ | — | $ | 16.2 | ||||||
Net cash provided by operating activities | $ | 1,418.6 | $ | — | $ | (750.1 | ) | $ | 668.5 | ||||||
INVESTING ACTIVITIES | |||||||||||||||
Business acquisitions, net of cash acquired | $ | (2,601.1 | ) | $ | — | $ | 17.6 | $ | (2,583.5 | ) | |||||
Proceeds related to deferred purchase price receivable | $ | — | $ | — | $ | 704.7 | $ | 704.7 | |||||||
Net cash (used in) provided by investing activities | $ | (2,289.1 | ) | $ | — | $ | 722.3 | $ | (1,566.8 | ) | |||||
Change in cash, cash equivalents and restricted cash | $ | (494.3 | ) | $ | — | $ | (27.8 | ) | $ | (522.1 | ) | ||||
Cash, cash equivalents and restricted cash, beginning of year | $ | 1,131.8 | $ | — | $ | 45.4 | $ | 1,177.2 | |||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR | $ | 637.5 | $ | — | $ | 17.6 | $ | 655.1 |
(Millions of Dollars) | 20161 | Adoption of ASU 2014-09 | Adoption of ASU 2016-15 & 2016-18 | 2016 | |||||||||||
OPERATING ACTIVITIES | |||||||||||||||
Net earnings | $ | 964.9 | $ | 2.7 | $ | — | $ | 967.6 | |||||||
Provision for doubtful accounts | $ | 21.9 | $ | 1.3 | $ | — | $ | 23.2 | |||||||
Accounts receivable | $ | (69.4 | ) | $ | 4.2 | $ | (345.1 | ) | $ | (410.3 | ) | ||||
Deferred revenue | $ | (9.2 | ) | $ | (2.8 | ) | $ | — | $ | (12.0 | ) | ||||
Other current assets | $ | 26.0 | $ | (17.4 | ) | $ | 45.4 | $ | 54.0 | ||||||
Other long-term assets | $ | (45.9 | ) | $ | (21.2 | ) | $ | — | $ | (67.1 | ) | ||||
Accrued expenses | $ | (28.1 | ) | $ | 35.0 | $ | — | $ | 6.9 | ||||||
Other long-term liabilities | $ | 42.5 | $ | (1.8 | ) | $ | — | $ | 40.7 | ||||||
Net cash provided by operating activities | $ | 1,485.2 | $ | — | $ | (299.7 | ) | $ | 1,185.5 | ||||||
INVESTING ACTIVITIES | |||||||||||||||
Proceeds related to deferred purchase price receivable | $ | — | $ | — | $ | 345.1 | $ | 345.1 | |||||||
Net cash (used in) provided by investing activities | $ | (284.0 | ) | $ | — | $ | 345.1 | $ | 61.1 | ||||||
Change in cash, cash equivalents and restricted cash | $ | 666.4 | $ | — | $ | 45.4 | $ | 711.8 | |||||||
Cash, cash equivalents and restricted cash, beginning of year | $ | 465.4 | $ | — | $ | — | $ | 465.4 | |||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR | $ | 1,131.8 | $ | — | $ | 45.4 | $ | 1,177.2 |
(Millions of Dollars) | 2018 | 2017 1 | |||||
Trade accounts receivable | $ | 1,437.1 | $ | 1,388.1 | |||
Trade notes receivable | 150.0 | 158.7 | |||||
Other accounts receivable | 122.7 | 162.3 | |||||
Gross accounts and notes receivable | 1,709.8 | 1,709.1 | |||||
Allowance for doubtful accounts | (102.0 | ) | (80.4 | ) | |||
Accounts and notes receivable, net | $ | 1,607.8 | $ | 1,628.7 | |||
Long-term receivable, net | $ | 153.7 | $ | 176.9 |
(Millions of Dollars) | 2018 | 2017 | |||||
Finished products | $ | 1,707.4 | $ | 1,461.4 | |||
Work in process | 150.8 | 155.5 | |||||
Raw materials | 515.3 | 401.5 | |||||
Total | $ | 2,373.5 | $ | 2,018.4 |
(Millions of Dollars) | 2018 | 2017 | |||||
Land | $ | 115.9 | $ | 110.9 | |||
Land improvements | 52.2 | 53.0 | |||||
Buildings | 625.6 | 611.8 | |||||
Leasehold improvements | 157.8 | 140.0 | |||||
Machinery and equipment | 2,566.1 | 2,343.7 | |||||
Computer software | 452.5 | 400.1 | |||||
Property, plant & equipment, gross | $ | 3,970.1 | $ | 3,659.5 | |||
Less: accumulated depreciation and amortization | (2,054.9 | ) | (1,917.0 | ) | |||
Property, plant & equipment, net | $ | 1,915.2 | $ | 1,742.5 |
(Millions of Dollars) | 2018 | 2017 | 2016 | ||||||||
Depreciation | $ | 288.4 | $ | 253.6 | $ | 221.8 | |||||
Amortization | 42.8 | 43.3 | 41.8 | ||||||||
Depreciation and amortization expense | $ | 331.2 | $ | 296.9 | $ | 263.6 |
(Millions of Dollars) | |||
Cash and cash equivalents | $ | 20.0 | |
Accounts and notes receivable, net | 19.7 | ||
Inventories, net | 195.5 | ||
Prepaid expenses and other current assets | 27.1 | ||
Property, plant and equipment, net | 112.4 | ||
Trade names | 283.0 | ||
Customer relationships | 548.0 | ||
Other assets | 8.8 | ||
Accounts payable | (70.3 | ) | |
Accrued expenses | (40.7 | ) | |
Deferred taxes | (269.4 | ) | |
Other liabilities | (7.9 | ) | |
Total identifiable net assets | $ | 826.2 | |
Goodwill | 1,031.8 | ||
Total consideration paid | $ | 1,858.0 |
(Millions of Dollars) | 2018 | ||
Net sales | $ | 216.5 | |
Net loss attributable to common shareowners | $ | (12.3 | ) |
(Millions of Dollars, except per share amounts) | 2018 | 2017 | |||||
Net sales | $ | 14,065.3 | $ | 13,486.2 | |||
Net earnings attributable to common shareowners | 628.1 | 1,230.1 | |||||
Diluted earnings per share | $ | 4.14 | $ | 8.07 |
• | 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 purchase price allocation that would have been incurred from December 31, 2017 to the acquisition dates. |
• | Depreciation expense for the property, plant, and equipment fair value adjustments that would have been incurred from December 31, 2017 to the acquisition date of Nelson. |
• | Because the 2018 acquisitions were assumed to occur on January 1, 2017, there were no deal costs or inventory step-up amortization factored into the 2018 pro-forma year, as such expenses would have occurred in the first year following the acquisition. |
• | 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 purchase price allocation that would have been |
• | Additional depreciation expense for the property, plant, and equipment fair value adjustments that would have been incurred from January 1, 2017 to the acquisition date of Newell Tools and for the year ended December 30, 2017 for the Nelson acquisition. |
• | Additional expense for deal costs and inventory step-up, which would have been amortized as the corresponding inventory was sold, relating to the 2018 acquisitions. |
(Millions of Dollars) | Tools & Storage | Industrial | Security | Total | |||||||||||
Balance December 30, 2017 | $ | 5,189.7 | $ | 1,454.4 | $ | 2,132.0 | $ | 8,776.1 | |||||||
Acquisitions | 59.8 | 225.5 | 55.0 | 340.3 | |||||||||||
Foreign currency translation and other | (95.2 | ) | (0.2 | ) | (64.3 | ) | (159.7 | ) | |||||||
Balance December 29, 2018 | $ | 5,154.3 | $ | 1,679.7 | $ | 2,122.7 | $ | 8,956.7 |
2018 | 2017 | ||||||||||||||
(Millions of Dollars) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||
Amortized Intangible Assets — Definite lives | |||||||||||||||
Patents and copyrights | $ | 42.5 | $ | (40.6 | ) | $ | 44.1 | $ | (41.0 | ) | |||||
Trade names | 170.8 | (114.9 | ) | 154.0 | (111.0 | ) | |||||||||
Customer relationships | 2,435.0 | (1,269.8 | ) | 2,326.1 | (1,155.4 | ) | |||||||||
Other intangible assets | 236.1 | (173.6 | ) | 260.3 | (175.6 | ) | |||||||||
Total | $ | 2,884.4 | $ | (1,598.9 | ) | $ | 2,784.5 | $ | (1,483.0 | ) |
(Millions of Dollars) | 2018 | 2017 | 2016 | ||||||||
Tools & Storage | $ | 75.5 | $ | 68.0 | $ | 36.8 | |||||
Industrial | 50.7 | 45.4 | 49.8 | ||||||||
Security | 49.1 | 50.4 | 57.8 | ||||||||
Consolidated | $ | 175.3 | $ | 163.8 | $ | 144.4 |
(Millions of Dollars) | 2018 | 2017 1 | |||||
Payroll and related taxes | $ | 297.0 | $ | 339.5 | |||
Income and other taxes | 67.5 | 142.0 | |||||
Customer rebates and sales returns | 116.6 | 134.0 | |||||
Insurance and benefits | 69.4 | 73.7 | |||||
Restructuring costs | 108.8 | 23.2 | |||||
Derivative financial instruments | 7.5 | 103.1 | |||||
Warranty costs | 65.5 | 71.3 | |||||
Deferred revenue | 98.6 | 95.6 | |||||
Freight costs | 87.3 | 30.5 | |||||
Environmental costs | 58.1 | 22.5 | |||||
Other | 413.5 | 352.3 | |||||
Total | $ | 1,389.8 | $ | 1,387.7 |
December 29, 2018 | December 30, 2017 | ||||||||||||||||||||||
(Millions of Dollars) | Interest Rate | Original Notional | Unamortized Discount | Unamortized Gain (Loss) Terminated Swaps1 | Purchase Accounting FV Adjustment | Deferred Financing Fees | Carrying Value | Carrying Value2 | |||||||||||||||
Notes payable due 2018 | 2.45% | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 630.9 | ||||||||
Notes payable due 2018 | 1.62% | — | — | — | — | — | — | 344.1 | |||||||||||||||
Notes payable due 2021 | 3.40% | 400.0 | (0.1 | ) | 10.2 | — | (1.0 | ) | 409.1 | 412.1 | |||||||||||||
Notes payable due 2022 | 2.90% | 754.3 | (0.3 | ) | — | — | (2.4 | ) | 751.6 | 750.9 | |||||||||||||
Notes payable due 2028 | 7.05% | 150.0 | — | 10.4 | 10.0 | — | 170.4 | 172.6 | |||||||||||||||
Notes payable due 2028 | 4.25% | 500.0 | (0.4 | ) | — | — | (3.9 | ) | 495.7 | — | |||||||||||||
Notes payable due 2040 | 5.20% | 400.0 | (0.2 | ) | (31.9 | ) | — | (3.0 | ) | 364.9 | 363.3 | ||||||||||||
Notes payable due 2048 | 4.85% | 500.0 | (0.6 | ) | — | — | (5.0 | ) | 494.4 | — | |||||||||||||
Notes payable due 2052 (junior subordinated) | 5.75% | 750.0 | — | — | — | (18.4 | ) | 731.6 | 731.0 | ||||||||||||||
Notes payable due 2053 (junior subordinated) | 7.08% | 400.0 | — | 4.6 | — | (7.9 | ) | 396.7 | $ | 396.6 | |||||||||||||
Other, payable in varying amounts through 2022 | 0.00% - 4.50% | 7.9 | — | — | — | — | 7.9 | 4.2 | |||||||||||||||
Total long-term debt, including current maturities | $ | 3,862.2 | $ | (1.6 | ) | $ | (6.7 | ) | $ | 10.0 | $ | (41.6 | ) | $ | 3,822.3 | $ | 3,805.7 | ||||||
Less: Current maturities of long-term debt | (2.5 | ) | (977.5 | ) | |||||||||||||||||||
Long-term debt | $ | 3,819.8 | $ | 2,828.2 |
(Millions of Dollars) | Balance Sheet Classification | 2018 | 2017 | Balance Sheet Classification | 2018 | 2017 | ||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Interest Rate Contracts Cash Flow | Other current assets | $ | — | $ | — | Accrued expenses | $ | — | $ | 55.7 | ||||||||||
LT other assets | — | — | LT other liabilities | — | — | |||||||||||||||
Foreign Exchange Contracts Cash Flow | Other current assets | 18.1 | 4.1 | Accrued expenses | 0.6 | 33.4 | ||||||||||||||
LT other assets | — | — | LT other liabilities | — | 5.2 | |||||||||||||||
Net Investment Hedge | Other current assets | 5.7 | 6.6 | Accrued expenses | 1.5 | 7.0 | ||||||||||||||
LT other assets | — | — | LT other liabilities | 13.8 | 5.8 | |||||||||||||||
Non-derivative designated as hedging instrument: | ||||||||||||||||||||
Net Investment Hedge | — | — | Short-term borrowings | 228.9 | — | |||||||||||||||
Total Designated as hedging instruments | $ | 23.8 | $ | 10.7 | $ | 244.8 | $ | 107.1 | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Foreign Exchange Contracts | Other current assets | $ | 9.1 | $ | 7.3 | Accrued expenses | $ | 5.4 | $ | 6.9 | ||||||||||
Total | $ | 32.9 | $ | 18.0 | $ | 250.2 | $ | 114.0 |
2018 (Millions of Dollars) | (Loss) Gain 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 | $ | 33.1 | Interest expense | $ | — | $ | — | |||||||
Foreign Exchange Contracts | $ | 35.9 | Cost of sales | $ | (17.9 | ) | $ | — |
2017 (Millions of Dollars) | (Loss) Gain Recorded in OCI | Classification of Gain (Loss) Reclassified from OCI to Income | Gain (Loss) Reclassified from OCI to Income (Effective Portion) | Gain (Loss) Recognized in Income (Ineffective Portion*) | ||||||||||
Interest Rate Contracts | $ | (8.4 | ) | Interest expense | $ | — | $ | — | ||||||
Foreign Exchange Contracts | $ | (66.6 | ) | Cost of sales | $ | 8.4 | $ | — |
2016 (Millions of Dollars) | (Loss) Gain Recorded in OCI | Classification of Gain (Loss) Reclassified from OCI to Income | Gain (Loss) Reclassified from OCI to Income (Effective Portion) | Gain (Loss) Recognized in Income (Ineffective Portion*) | ||||||||||
Interest Rate Contracts | $ | (6.2 | ) | Interest expense | $ | — | $ | — | ||||||
Foreign Exchange Contracts | $ | 19.3 | Cost of sales | $ | 21.7 | $ | — |
2018 | |||||||
(Millions of dollars) | Cost of Sales | Interest Expense | |||||
Total amount in the Consolidated Statements of Operations in which the effects of the cash flow hedges are recorded | $ | 9,131.3 | $ | 277.9 | |||
Gain (loss) on cash flow hedging relationships: | |||||||
Foreign Exchange Contracts: | |||||||
Hedged Items | $ | 17.9 | $ | — | |||
Gain (loss) reclassified from OCI into Income | $ | (17.9 | ) | $ | — | ||
Interest Rate Swap Agreements: | |||||||
Gain (loss) reclassified from OCI into Income 1 | $ | — | $ | (15.3 | ) |
(Millions of dollars) | 2018 Interest Expense | |||
Total amount in the Consolidated Statements of Operations in which the effects of the fair value hedges are recorded | $ | 277.9 | ||
Amortization of gain on terminated swaps | $ | (3.2 | ) |
2017 | 2016 | |||||||||||||||
Income Statement Classification (Millions of Dollars) | (Loss)/Gain on Swaps* | Gain /(Loss) on Borrowings | Gain/(Loss) on Swaps* | (Loss)/Gain on Borrowings | ||||||||||||
Interest expense | $ | — | $ | — | $ | (3.3 | ) | $ | 3.8 |
(Millions of dollars) | Carrying Amount of Hedged Liability1 | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability | ||||||||
Current maturities of long-term debt | $ | 2.5 | Terminated Swaps | $ | 2.1 | |||||
Long-Term Debt | $ | 3,819.8 | Terminated Swaps | $ | (10.0 | ) |
2018 | ||||||||||||||||||
(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 | $ | 37.1 | $ | 8.6 | Other, net | $ | 8.2 | $ | 8.2 | |||||||||
Cross Currency Swap | $ | (2.3 | ) | $ | 5.8 | Other, net | $ | 6.8 | $ | 6.8 | ||||||||
Option Contracts | $ | (2.0 | ) | $ | — | Other, net | $ | — | $ | — | ||||||||
Non-derivative designated as Net Investment Hedge | $ | 61.8 | $ | — | Other, net | $ | — | $ | — |
2017 | 2016 | |||||||||||||||||||||||
Income Statement Classification (Millions of Dollars) | Amount Recorded in OCI Gain (Loss) | Effective Portion Recorded in Income Statement | Ineffective Portion* Recorded in Income Statement | Amount Recorded in OCI Gain (Loss) | Effective Portion Recorded in Income Statement | Ineffective Portion* Recorded in Income Statement | ||||||||||||||||||
Other-net | $ | (131.3 | ) | $ | — | $ | — | $ | 117.8 | $ | — | $ | — |
(Millions of Dollars) | Income Statement Classification | 2018 Amount of Gain (Loss) Recorded in Income on Derivative | 2017 Amount of Gain (Loss) Recorded in Income on Derivative | 2016 Amount of (Loss) Gain Recorded in Income on Derivative | |||||||||
Foreign Exchange Contracts | Other-net | $ | 17.0 | $ | 51.5 | $ | (21.1 | ) |
2018 | 2017 | 2016 | |||||||||
Numerator (in millions): | |||||||||||
Net Earnings Attributable to Common Shareowners1 | $ | 605.2 | $ | 1,227.3 | $ | 968.0 |
Denominator (in thousands): | ||||||||
Basic weighted-average shares outstanding | 148,919 | 149,629 | 146,041 | |||||
Dilutive effect of stock contracts and awards | 2,724 | 2,820 | 2,166 | |||||
Diluted weighted-average shares outstanding | 151,643 | 152,449 | 148,207 |
Earnings per share of common stock1: | |||||||||||
Basic | $ | 4.06 | $ | 8.20 | $ | 6.63 | |||||
Diluted | $ | 3.99 | $ | 8.05 | $ | 6.53 |
2018 | 2017 | 2016 | ||||||
Number of stock options | 1,339 | 389 | 734 |
2018 | 2017 | 2016 | ||||||
Outstanding, beginning of year | 154,038,031 | 152,559,767 | 153,944,291 | |||||
Issued from treasury | 941,854 | 1,680,339 | 4,870,761 | |||||
Returned to treasury | (3,677,435 | ) | (202,075 | ) | (6,255,285 | ) | ||
Outstanding, end of year | 151,302,450 | 154,038,031 | 152,559,767 | |||||
Shares subject to the forward share purchase contract | (3,645,510 | ) | (3,645,510 | ) | (3,645,510 | ) | ||
Outstanding, less shares subject to the forward share purchase contract | 147,656,940 | 150,392,521 | 148,914,257 |
2018 | 2017 | ||||
Employee stock purchase plan | 1,606,224 | 1,745,939 | |||
Other stock-based compensation plans | 14,277,893 | 2,526,337 | |||
Total shares reserved | 15,884,117 | 4,272,276 |
2018 | 2017 | 2016 | |||||||||
Average expected volatility | 23.0 | % | 20.0 | % | 24.1 | % | |||||
Dividend yield | 2.0 | % | 1.5 | % | 2.0 | % | |||||
Risk-free interest rate | 2.9 | % | 2.2 | % | 2.0 | % | |||||
Expected term | 5.3 years | 5.2 years | 5.3 years | ||||||||
Fair value per option | $ | 26.54 | $ | 30.71 | $ | 23.41 | |||||
Weighted-average vesting period | 2.9 years | 2.9 years | 2.4 years |
Options | Price | |||||
Outstanding, beginning of year | 6,561,404 | $ | 102.56 | |||
Granted | 1,255,750 | 130.88 | ||||
Exercised | (267,378 | ) | 80.66 | |||
Forfeited | (197,513 | ) | 133.60 | |||
Outstanding, end of year | 7,352,263 | $ | 107.36 | |||
Exercisable, end of year | 4,601,357 | $ | 88.87 |
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 | |||||||||||
$75.00 and below | 2,031,976 | 2.20 | $ | 62.36 | 2,031,976 | 2.20 | $ | 62.36 | |||||||||
$75.01 — $125.00 | 2,960,794 | 6.73 | 105.54 | 2,267,023 | 6.45 | 102.14 | |||||||||||
$125.01 and higher | 2,359,493 | 9.43 | 148.40 | 302,358 | 8.78 | 167.51 | |||||||||||
7,352,263 | 6.35 | $ | 107.36 | 4,601,357 | 4.73 | $ | 88.87 |
Restricted Share Units & Awards | Weighted-Average Grant Date Fair Value | |||||
Non-vested at December 30, 2017 | 1,084,675 | $ | 121.89 | |||
Granted | 413,838 | 133.90 | ||||
Vested | (352,625 | ) | 111.79 | |||
Forfeited | (71,153 | ) | 124.62 | |||
Non-vested at December 29, 2018 | 1,074,735 | $ | 129.65 |
Share Units | Weighted-Average Grant Date Fair Value | |||||
Non-vested at December 30, 2017 | 692,913 | $ | 97.80 | |||
Granted | 184,435 | 155.83 | ||||
Vested | (178,738 | ) | 91.90 | |||
Forfeited | (71,203 | ) | 95.11 | |||
Non-vested at December 29, 2018 | 627,407 | $ | 116.85 |
(Millions of Dollars) | Currency translation adjustment and other 1 | Unrealized (losses) gains on cash flow hedges, net of tax | Unrealized gains (losses) on net investment hedges, net of tax | Pension (losses) gains, net of tax | Total | ||||||||||||||
Balance - December 31, 2016 | $ | (1,586.7 | ) | $ | (46.3 | ) | $ | 88.6 | $ | (377.2 | ) | $ | (1,921.6 | ) | |||||
Other comprehensive income (loss) before reclassifications | 473.8 | (71.0 | ) | (85.2 | ) | (19.1 | ) | 298.5 | |||||||||||
Adjustments related to sales of businesses | 4.7 | — | — | 2.6 | 7.3 | ||||||||||||||
Reclassification adjustments to earnings | — | 4.7 | — | 22.0 | 26.7 | ||||||||||||||
Net other comprehensive income (loss) | 478.5 | (66.3 | ) | (85.2 | ) | 5.5 | 332.5 | ||||||||||||
Balance - December 30, 2017 | $ | (1,108.2 | ) | $ | (112.6 | ) | $ | 3.4 | $ | (371.7 | ) | $ | (1,589.1 | ) | |||||
Other comprehensive (loss) income before reclassifications | (373.0 | ) | 70.4 | 71.2 | (9.7 | ) | (241.1 | ) | |||||||||||
Reclassification adjustments to earnings | — | 15.4 | (11.3 | ) | 11.8 | 15.9 | |||||||||||||
Net other comprehensive (loss) income | (373.0 | ) | 85.8 | 59.9 | 2.1 | (225.2 | ) | ||||||||||||
Balance - December 29, 2018 | $ | (1,481.2 | ) | $ | (26.8 | ) | $ | 63.3 | $ | (369.6 | ) | $ | (1,814.3 | ) |
(Millions of Dollars) | 2018 | 2017 | ||||||||
Components of accumulated other comprehensive loss | Reclassification adjustments | Reclassification adjustments | Affected line item in Consolidated Statements of Operations | |||||||
Realized (losses) gains on cash flow hedges | $ | (17.9 | ) | $ | 8.4 | Cost of sales | ||||
Realized losses on cash flow hedges | (15.3 | ) | (15.1 | ) | Interest expense | |||||
Total before taxes | $ | (33.2 | ) | $ | (6.7 | ) | ||||
Tax effect | 17.8 | 2.0 | Income taxes | |||||||
Realized losses on cash flow hedges, net of tax | $ | (15.4 | ) | $ | (4.7 | ) | ||||
Realized gains on net investment hedges | $ | 15.0 | $ | — | Other, net | |||||
Tax effect | (3.7 | ) | — | Income taxes | ||||||
Realized gains on net investment hedges, net of tax | 11.3 | — | ||||||||
Actuarial losses and prior service costs / credits2 | (14.8 | ) | (16.2 | ) | Other, net | |||||
Settlement loss1 | — | (12.2 | ) | Pension settlement | ||||||
Settlement losses1 | (0.7 | ) | (3.4 | ) | Other, net | |||||
Total before taxes | (15.5 | ) | (31.8 | ) | ||||||
Tax effect | 3.7 | 9.8 | Income taxes | |||||||
Amortization of defined benefit pension items, net of tax | $ | (11.8 | ) | $ | (22.0 | ) |
(Millions of Dollars) | 2018 | 2017 | 2016 | ||||||||
Multi-employer plan expense | $ | 7.3 | $ | 7.2 | $ | 5.1 | |||||
Other defined contribution plan expense | $ | 12.9 | $ | 27.5 | $ | 15.4 |
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||
(Millions of Dollars) | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | |||||||||||||||||
Service cost | $ | 7.5 | $ | 8.7 | $ | 9.4 | $ | 15.2 | $ | 13.7 | $ | 12.5 | |||||||||||
Interest cost | 42.8 | 43.2 | 45.3 | 28.6 | 29.1 | 37.0 | |||||||||||||||||
Expected return on plan assets | (68.7 | ) | (64.4 | ) | (67.9 | ) | (46.5 | ) | (45.5 | ) | (44.5 | ) | |||||||||||
Amortization of prior service cost (credit) | 1.1 | 1.1 | 5.2 | (1.3 | ) | (1.2 | ) | 0.3 | |||||||||||||||
Actuarial loss amortization | 7.8 | 8.3 | 7.1 | 8.5 | 9.4 | 5.9 | |||||||||||||||||
Settlement / curtailment loss | — | 2.9 | — | 0.7 | 12.7 | 0.7 | |||||||||||||||||
Net periodic pension (benefit) expense | $ | (9.5 | ) | $ | (0.2 | ) | $ | (0.9 | ) | $ | 5.2 | $ | 18.2 | $ | 11.9 |
Other Benefit Plans | |||||||||||
(Millions of Dollars) | 2018 | 2017 | 2016 | ||||||||
Service cost | $ | 0.5 | $ | 0.6 | $ | 0.6 | |||||
Interest cost | 1.6 | 1.7 | 1.7 | ||||||||
Amortization of prior service credit | (1.3 | ) | (1.4 | ) | (1.2 | ) | |||||
Net periodic post-retirement expense | $ | 0.8 | $ | 0.9 | $ | 1.1 |
(Millions of Dollars) | 2018 | ||
Current year actuarial loss | $ | 10.6 | |
Amortization of actuarial loss | (14.8 | ) | |
Prior service cost from plan amendments | 16.3 | ||
Settlement / curtailment loss | (0.7 | ) | |
Currency / other | (14.8 | ) | |
Total decrease recognized in accumulated other comprehensive loss (pre-tax) | $ | (3.4 | ) |
U.S. Plans | Non-U.S. Plans | Other Benefits | |||||||||||||||||||||
(Millions of Dollars) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||
Benefit obligation at end of prior year | $ | 1,365.3 | $ | 1,359.0 | $ | 1,446.1 | $ | 1,359.8 | $ | 52.3 | $ | 54.2 | |||||||||||
Service cost | 7.5 | 8.7 | 15.2 | 13.7 | 0.5 | 0.6 | |||||||||||||||||
Interest cost | 42.8 | 43.2 | 28.6 | 29.1 | 1.6 | 1.7 | |||||||||||||||||
Settlements/curtailments | — | (16.7 | ) | (4.3 | ) | (35.9 | ) | — | — | ||||||||||||||
Actuarial (gain) loss | (106.2 | ) | 98.1 | (64.1 | ) | 11.4 | (6.2 | ) | (2.1 | ) | |||||||||||||
Plan amendments | 0.2 | 0.5 | 16.0 | — | 0.1 | — | |||||||||||||||||
Foreign currency exchange rates | — | — | (77.0 | ) | 136.0 | (1.0 | ) | 0.7 | |||||||||||||||
Participant contributions | — | — | 0.3 | 0.3 | — | — | |||||||||||||||||
Acquisitions, divestitures, and other | 34.0 | (7.0 | ) | 3.4 | (11.6 | ) | 1.9 | 2.1 | |||||||||||||||
Benefits paid | (82.7 | ) | (120.5 | ) | (58.9 | ) | (56.7 | ) | (4.4 | ) | (4.9 | ) | |||||||||||
Benefit obligation at end of year | $ | 1,260.9 | $ | 1,365.3 | $ | 1,305.3 | $ | 1,446.1 | $ | 44.8 | $ | 52.3 | |||||||||||
Change in plan assets | |||||||||||||||||||||||
Fair value of plan assets at end of prior year | $ | 1,114.1 | $ | 1,067.1 | $ | 1,099.2 | $ | 1,015.3 | $ | — | $ | — | |||||||||||
Actual return on plan assets | (52.9 | ) | 153.5 | (18.6 | ) | 63.5 | — | — | |||||||||||||||
Participant contributions | — | — | 0.3 | 0.3 | — | — | |||||||||||||||||
Employer contributions | 19.4 | 37.6 | 20.9 | 24.0 | 4.4 | 4.9 | |||||||||||||||||
Settlements | — | (16.7 | ) | (4.2 | ) | (35.9 | ) | — | — | ||||||||||||||
Foreign currency exchange rate changes | — | — | (61.5 | ) | 96.4 | — | — | ||||||||||||||||
Acquisitions, divestitures, and other | 22.8 | (6.9 | ) | (2.9 | ) | (7.7 | ) | — | — | ||||||||||||||
Benefits paid | (82.7 | ) | (120.5 | ) | (58.9 | ) | (56.7 | ) | (4.4 | ) | (4.9 | ) | |||||||||||
Fair value of plan assets at end of plan year | $ | 1,020.7 | $ | 1,114.1 | $ | 974.3 | $ | 1,099.2 | $ | — | $ | — | |||||||||||
Funded status — assets less than benefit obligation | $ | (240.2 | ) | $ | (251.2 | ) | $ | (331.0 | ) | $ | (346.9 | ) | $ | (44.8 | ) | $ | (52.3 | ) | |||||
Unrecognized prior service cost (credit) | 4.3 | 5.2 | (18.2 | ) | (37.0 | ) | (3.4 | ) | (4.8 | ) | |||||||||||||
Unrecognized net actuarial loss | 272.0 | 264.9 | 270.8 | 294.7 | (7.6 | ) | (1.7 | ) | |||||||||||||||
Net amount recognized | $ | 36.1 | $ | 18.9 | $ | (78.4 | ) | $ | (89.2 | ) | $ | (55.8 | ) | $ | (58.8 | ) |
U.S. Plans | Non-U.S. Plans | Other Benefits | |||||||||||||||||||||
(Millions of Dollars) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets | |||||||||||||||||||||||
Prepaid benefit cost (non-current) | $ | — | $ | — | $ | 1.0 | $ | 1.8 | $ | — | $ | — | |||||||||||
Current benefit liability | (7.7 | ) | (8.2 | ) | (9.1 | ) | (8.9 | ) | (4.8 | ) | (5.2 | ) | |||||||||||
Non-current benefit liability | (232.5 | ) | (243.0 | ) | (322.9 | ) | (339.8 | ) | (40.0 | ) | (47.1 | ) | |||||||||||
Net liability recognized | $ | (240.2 | ) | $ | (251.2 | ) | $ | (331.0 | ) | $ | (346.9 | ) | $ | (44.8 | ) | $ | (52.3 | ) | |||||
Accumulated other comprehensive loss (pre-tax): | |||||||||||||||||||||||
Prior service cost (credit) | $ | 4.3 | $ | 5.2 | $ | (18.2 | ) | $ | (37.0 | ) | $ | (3.4 | ) | $ | (4.8 | ) | |||||||
Actuarial loss (gain) | 272.0 | 264.9 | 270.8 | 294.7 | (7.6 | ) | (1.7 | ) | |||||||||||||||
$ | 276.3 | $ | 270.1 | $ | 252.6 | $ | 257.7 | $ | (11.0 | ) | $ | (6.5 | ) | ||||||||||
Net amount recognized | $ | 36.1 | $ | 18.9 | $ | (78.4 | ) | $ | (89.2 | ) | $ | (55.8 | ) | $ | (58.8 | ) |
U.S. Plans | Non-U.S. Plans | ||||||||||||||
(Millions of Dollars) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Projected benefit obligation | $ | 1,260.9 | $ | 1,365.3 | $ | 1,275.7 | $ | 1,415.9 | |||||||
Accumulated benefit obligation | $ | 1,257.6 | $ | 1,358.4 | $ | 1,228.6 | $ | 1,368.7 | |||||||
Fair value of plan assets | $ | 1,020.7 | $ | 1,114.1 | $ | 945.0 | $ | 1,068.5 |
U.S. Plans | Non-U.S. Plans | ||||||||||||||
(Millions of Dollars) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Projected benefit obligation | $ | 1,260.9 | $ | 1,365.3 | $ | 1,301.7 | $ | 1,445.1 | |||||||
Accumulated benefit obligation | $ | 1,257.6 | $ | 1,358.4 | $ | 1,252.7 | $ | 1,395.1 | |||||||
Fair value of plan assets | $ | 1,020.7 | $ | 1,114.1 | $ | 969.7 | $ | 1,096.5 |
Pension Benefits | ||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Other Benefits | ||||||||||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | 2018 | 2017 | 2016 | ||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations at year end: | ||||||||||||||||||||||||||
Discount rate | 4.20 | % | 3.53 | % | 3.95 | % | 2.62 | % | 2.24 | % | 2.38 | % | 4.03 | % | 3.53 | % | 3.51 | % | ||||||||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.00 | % | 3.44 | % | 3.45 | % | 3.63 | % | 3.50 | % | 3.50 | % | 3.50 | % | ||||||||
Weighted-average assumptions used to determine net periodic benefit cost: | ||||||||||||||||||||||||||
Discount rate - service cost | 3.72 | % | 4.10 | % | 4.32 | % | 2.15 | % | 2.27 | % | 2.54 | % | 5.11 | % | 4.53 | % | 4.27 | % | ||||||||
Discount rate - interest cost | 3.16 | % | 3.30 | % | 3.39 | % | 2.20 | % | 2.31 | % | 2.94 | % | 3.77 | % | 2.93 | % | 2.94 | % | ||||||||
Rate of compensation increase | 3.00 | % | 3.00 | % | 6.00 | % | 3.45 | % | 3.63 | % | 3.24 | % | 3.50 | % | 3.50 | % | 3.50 | % | ||||||||
Expected return on plan assets | 6.25 | % | 6.25 | % | 6.50 | % | 4.37 | % | 4.41 | % | 4.68 | % | — | — | — |
Asset Category (Millions of Dollars) | 2018 | Level 1 | Level 2 | ||||||||
Cash and cash equivalents | $ | 139.5 | $ | 113.6 | $ | 25.9 | |||||
Equity securities | |||||||||||
U.S. equity securities | 248.7 | 83.4 | 165.3 | ||||||||
Foreign equity securities | 220.0 | 85.2 | 134.8 | ||||||||
Fixed income securities | |||||||||||
Government securities | 642.3 | 205.5 | 436.8 | ||||||||
Corporate securities | 656.6 | — | 656.6 | ||||||||
Insurance contracts | 37.1 | — | 37.1 | ||||||||
Other | 50.8 | — | 50.8 | ||||||||
Total | $ | 1,995.0 | $ | 487.7 | $ | 1,507.3 |
Asset Category (Millions of Dollars) | 2017 | Level 1 | Level 2 | ||||||||
Cash and cash equivalents | $ | 42.0 | $ | 19.5 | $ | 22.5 | |||||
Equity securities | |||||||||||
U.S. equity securities | 342.8 | 103.5 | 239.3 | ||||||||
Foreign equity securities | 329.3 | 111.8 | 217.5 | ||||||||
Fixed income securities | |||||||||||
Government securities | 707.8 | 213.3 | 494.5 | ||||||||
Corporate securities | 698.3 | — | 698.3 | ||||||||
Insurance contracts | 39.2 | — | 39.2 | ||||||||
Other | 53.9 | — | 53.9 | ||||||||
Total | $ | 2,213.3 | $ | 448.1 | $ | 1,765.2 |
(Millions of Dollars) | Total | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Years 6-10 | |||||||||||||||||||||
Future payments | $ | 1,400.2 | $ | 136.1 | $ | 137.6 | $ | 139.3 | $ | 139.5 | $ | 141.4 | $ | 706.3 |
(Millions of Dollars) | Total Carrying Value | Level 1 | Level 2 | Level 3 | |||||||||||
December 29, 2018 | |||||||||||||||
Money market fund | $ | 4.8 | $ | 4.8 | $ | — | $ | — | |||||||
Derivative assets | $ | 32.9 | $ | — | $ | 32.9 | $ | — | |||||||
Derivative liabilities | $ | 21.3 | $ | — | $ | 21.3 | $ | — | |||||||
Non-derivative hedging instrument | $ | 228.9 | $ | — | $ | 228.9 | $ | — | |||||||
Contingent consideration liability | $ | 169.2 | $ | — | $ | — | $ | 169.2 | |||||||
December 30, 2017 | |||||||||||||||
Money market fund | $ | 11.6 | $ | 11.6 | $ | — | $ | — | |||||||
Derivative assets | $ | 18.0 | $ | — | $ | 18.0 | $ | — | |||||||
Derivative liabilities | $ | 114.0 | $ | — | $ | 114.0 | $ | — | |||||||
Contingent consideration liability | $ | 114.0 | $ | — | $ | — | $ | 114.0 |
December 29, 2018 | December 30, 20171 | ||||||||||||||
(Millions of Dollars) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||
Other investments | $ | 7.6 | $ | 7.7 | $ | 7.6 | $ | 7.9 | |||||||
Long-term debt, including current portion | $ | 3,822.3 | $ | 3,905.4 | $ | 3,805.7 | $ | 3,991.0 |
(Millions of Dollars) | December 30, 2017 | Net Additions | Usage | Currency | December 29, 2018 | ||||||||||||||
Severance and related costs | $ | 20.0 | $ | 151.0 | $ | (64.1 | ) | $ | (1.2 | ) | $ | 105.7 | |||||||
Facility closures and asset impairments | 3.2 | 9.3 | (9.4 | ) | — | 3.1 | |||||||||||||
Total | $ | 23.2 | $ | 160.3 | $ | (73.5 | ) | $ | (1.2 | ) | $ | 108.8 |
(Millions of Dollars) | 2018 | 2017 1 | 2016 1 | ||||||||
Net Sales | |||||||||||
Tools & Storage | $ | 9,814.0 | $ | 9,045.0 | $ | 7,619.2 | |||||
Industrial | 2,187.8 | 1,974.3 | 1,864.0 | ||||||||
Security | 1,980.6 | 1,947.3 | 2,110.3 | ||||||||
Consolidated | $ | 13,982.4 | $ | 12,966.6 | $ | 11,593.5 | |||||
Segment Profit | |||||||||||
Tools & Storage | $ | 1,393.1 | $ | 1,438.9 | $ | 1,258.4 | |||||
Industrial | 319.8 | 345.9 | 300.1 | ||||||||
Security | 169.3 | 211.7 | 267.9 | ||||||||
Segment Profit | 1,882.2 | 1,996.5 | 1,826.4 | ||||||||
Corporate overhead | (202.8 | ) | (217.4 | ) | (190.9 | ) | |||||
Other, net | (287.0 | ) | (269.2 | ) | (185.9 | ) | |||||
(Loss) gain on sales of businesses | (0.8 | ) | 264.1 | — | |||||||
Pension settlement | — | (12.2 | ) | — | |||||||
Restructuring charges and asset impairments | (160.3 | ) | (51.5 | ) | (49.0 | ) | |||||
Interest income | 68.7 | 40.1 | 23.2 | ||||||||
Interest expense | (277.9 | ) | (222.6 | ) | (194.5 | ) | |||||
Earnings before income taxes | $ | 1,022.1 | $ | 1,527.8 | $ | 1,229.3 | |||||
Capital and Software Expenditures | |||||||||||
Tools & Storage | $ | 353.7 | $ | 327.2 | $ | 227.3 | |||||
Industrial | 95.8 | 76.2 | 81.1 | ||||||||
Security | 42.6 | 39.0 | 38.6 | ||||||||
Consolidated | $ | 492.1 | $ | 442.4 | $ | 347.0 | |||||
Depreciation and Amortization | |||||||||||
Tools & Storage | $ | 300.1 | $ | 271.9 | $ | 203.0 | |||||
Industrial | 125.9 | 107.4 | 106.8 | ||||||||
Security | 80.5 | 81.4 | 98.2 | ||||||||
Consolidated | $ | 506.5 | $ | 460.7 | $ | 408.0 | |||||
Segment Assets | |||||||||||
Tools & Storage | $ | 13,122.6 | $ | 12,870.3 | $ | 8,524.9 | |||||
Industrial | 3,620.5 | 3,413.3 | 3,359.3 | ||||||||
Security | 3,413.6 | 3,407.0 | 3,139.2 | ||||||||
20,156.7 | 19,690.6 | 15,023.4 | |||||||||
Assets held for sale | — | — | 523.4 | ||||||||
Corporate assets | (748.7 | ) | (592.9 | ) | 108.2 | ||||||
Consolidated | $ | 19,408.0 | $ | 19,097.7 | $ | 15,655.0 |
2018 | 2017 | 2016 | ||||||
Industrial | 11.9 | % | 13.4 | % | 12.7 | % | ||
Security | 44.9 | % | 48.1 | % | 41.5 | % |
(Millions of Dollars) | 2018 | 2017 | 2016 | ||||||||
Engineered Fastening | $ | 1,766.6 | $ | 1,554.3 | $ | 1,489.0 | |||||
Infrastructure | 421.2 | 420.0 | 375.0 | ||||||||
Industrial | $ | 2,187.8 | $ | 1,974.3 | $ | 1,864.0 |
(Millions of Dollars) | 2018 | 2017 1 | 2016 1 | ||||||||
Net Sales | |||||||||||
United States | $ | 7,700.3 | $ | 7,025.7 | $ | 6,280.8 | |||||
Canada | 628.3 | 583.3 | 519.8 | ||||||||
Other Americas | 801.5 | 790.7 | 650.4 | ||||||||
France | 627.8 | 623.8 | 595.1 | ||||||||
Other Europe | 2,989.9 | 2,791.1 | 2,457.7 | ||||||||
Asia | 1,234.6 | 1,152.0 | 1,089.7 | ||||||||
Consolidated | $ | 13,982.4 | $ | 12,966.6 | $ | 11,593.5 | |||||
Property, Plant & Equipment | |||||||||||
United States | $ | 1,018.3 | $ | 850.2 | $ | 663.4 | |||||
Canada | 25.5 | 30.0 | 29.3 | ||||||||
Other Americas | 112.7 | 111.2 | 95.8 | ||||||||
France | 63.9 | 65.1 | 57.5 | ||||||||
Other Europe | 356.9 | 378.0 | 322.3 | ||||||||
Asia | 337.9 | 308.0 | 282.9 | ||||||||
Consolidated | $ | 1,915.2 | $ | 1,742.5 | $ | 1,451.2 |
(Millions of Dollars) | 2018 | 2017 1 | |||||
Deferred tax liabilities: | |||||||
Depreciation | $ | 128.5 | $ | 98.4 | |||
Amortization of intangibles | 672.8 | 668.0 | |||||
Liability on undistributed foreign earnings | 202.5 | 4.9 | |||||
Deferred revenue | 19.1 | 26.5 | |||||
Other | 54.8 | 62.2 | |||||
Total deferred tax liabilities | $ | 1,077.7 | $ | 860.0 | |||
Deferred tax assets: | |||||||
Employee benefit plans | $ | 222.1 | $ | 256.4 | |||
Doubtful accounts and other customer allowances | 14.7 | 16.3 | |||||
Basis differences in liabilities | 93.3 | 84.5 | |||||
Operating loss, capital loss and tax credit carryforwards | 710.6 | 632.2 | |||||
Currency and derivatives | 11.6 | 48.5 | |||||
Other | 121.0 | 88.6 | |||||
Total deferred tax assets | $ | 1,173.3 | $ | 1,126.5 | |||
Net Deferred Tax Asset (Liability) before Valuation Allowance | $ | 95.6 | $ | 266.5 | |||
Valuation Allowance | $ | (626.7 | ) | $ | (516.7 | ) | |
Net Deferred Tax Liability after Valuation Allowance | $ | (531.1 | ) | $ | (250.2 | ) |
(Millions of Dollars) | 2018 | 2017 1 | 2016 1 | ||||||||
United States | $ | 444.1 | $ | 715.2 | $ | 307.1 | |||||
Foreign | 578.0 | 812.6 | 922.2 | ||||||||
Earnings before income taxes | $ | 1,022.1 | $ | 1,527.8 | $ | 1,229.3 |
(Millions of Dollars) | 2018 | 2017 1 | 2016 1 | ||||||||
Current: | |||||||||||
Federal | $ | 25.4 | $ | 590.6 | $ | 84.8 | |||||
Foreign | 175.0 | 224.6 | 191.5 | ||||||||
State | 24.8 | 25.4 | 10.6 | ||||||||
Total current | $ | 225.2 | $ | 840.6 | $ | 286.9 | |||||
Deferred: | |||||||||||
Federal | $ | 29.7 | $ | (513.0 | ) | $ | 18.7 | ||||
Foreign | 132.7 | (33.0 | ) | (26.1 | ) | ||||||
State | 28.7 | 6.3 | (17.8 | ) | |||||||
Total deferred | 191.1 | (539.7 | ) | (25.2 | ) | ||||||
Income taxes | $ | 416.3 | $ | 300.9 | $ | 261.7 |
(Millions of Dollars) | 2018 | 2017 1 | 2016 1 | ||||||||
Tax at statutory rate | $ | 214.6 | $ | 534.1 | $ | 429.1 | |||||
State income taxes, net of federal benefits | 24.7 | 13.3 | 12.5 | ||||||||
Foreign tax rate differential | (33.2 | ) | (149.0 | ) | (166.3 | ) | |||||
Uncertain tax benefits | 4.5 | 64.4 | 32.0 | ||||||||
Tax audit settlements | (5.2 | ) | (16.5 | ) | (10.5 | ) | |||||
Change in valuation allowance | 5.1 | (5.4 | ) | 38.9 | |||||||
Change in deferred tax liabilities on undistributed foreign earnings | — | (94.1 | ) | (38.7 | ) | ||||||
Basis difference for businesses Held for Sale | — | 27.9 | (27.9 | ) | |||||||
Stock-based compensation | (4.1 | ) | (23.2 | ) | — | ||||||
Sale of businesses | — | (47.3 | ) | — | |||||||
U.S. Federal tax reform | 199.6 | 23.6 | — | ||||||||
Other-net | 10.3 | (26.9 | ) | (7.4 | ) | ||||||
Income taxes | $ | 416.3 | $ | 300.9 | $ | 261.7 |
(Millions of Dollars) | 2018 | 2017 | 2016 | ||||||||
Balance at beginning of year | $ | 387.8 | $ | 309.8 | $ | 283.1 | |||||
Additions based on tax positions related to current year | 28.3 | 34.6 | 14.9 | ||||||||
Additions based on tax positions related to prior years | 103.0 | 82.5 | 53.9 | ||||||||
Reductions based on tax positions related to prior years | (91.5 | ) | (4.2 | ) | (34.2 | ) | |||||
Settlements | (2.5 | ) | (0.3 | ) | 5.4 | ||||||
Statute of limitations expirations | (18.8 | ) | (34.6 | ) | (13.3 | ) | |||||
Balance at end of year | $ | 406.3 | $ | 387.8 | $ | 309.8 |
(Millions of Dollars) | Total | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | ||||||||||||||||||||
Operating lease obligations | $ | 532.4 | $ | 134.8 | $ | 107.4 | $ | 80.3 | $ | 57.9 | $ | 40.2 | $ | 111.8 | |||||||||||||
Marketing commitments | 51.8 | 32.3 | 9.1 | 6.8 | 3.2 | 0.4 | — | ||||||||||||||||||||
Total | $ | 584.2 | $ | 167.1 | $ | 116.5 | $ | 87.1 | $ | 61.1 | $ | 40.6 | $ | 111.8 |
(Millions of Dollars) | Term | Maximum Potential Payment | Carrying Amount of Liability | ||||||
Guarantees on the residual values of leased properties | One to four years | $ | 99.6 | $ | — | ||||
Standby letters of credit | Up to three years | 68.0 | — | ||||||
Commercial customer financing arrangements | Up to six years | 67.6 | 7.6 | ||||||
Total | $ | 235.2 | $ | 7.6 |
(Millions of Dollars) | 2018 | 2017 | 2016 | ||||||||
Balance beginning of period1 | $ | 108.5 | $ | 103.4 | $ | 105.4 | |||||
Warranties and guarantees issued | 110.4 | 105.3 | 97.2 | ||||||||
Warranty payments and currency | (116.8 | ) | (100.2 | ) | (99.2 | ) | |||||
Balance end of period1 | $ | 102.1 | $ | 108.5 | $ | 103.4 |
Quarter | ||||||||||||||||||||
(Millions of Dollars, except per share amounts) | First | Second | Third | Fourth | Year | |||||||||||||||
2018 | ||||||||||||||||||||
Net Sales | $ | 3,209.3 | $ | 3,643.6 | $ | 3,494.8 | $ | 3,634.7 | $ | 13,982.4 | ||||||||||
Gross profit | 1,165.7 | 1,287.1 | 1,238.4 | 1,159.9 | 4,851.1 | |||||||||||||||
Selling, general and administrative (1) | 785.6 | 805.8 | 798.9 | 781.4 | 3,171.7 | |||||||||||||||
Net earnings (loss) | 170.1 | 293.4 | 248.3 | (106.0 | ) | 605.8 | ||||||||||||||
Less: Net (loss) gain attributable to non-controlling interest | (0.5 | ) | (0.2 | ) | 0.5 | 0.8 | 0.6 | |||||||||||||
Net Earnings (Loss) Attributable to Common Shareowners | $ | 170.6 | $ | 293.6 | $ | 247.8 | $ | (106.8 | ) | $ | 605.2 | |||||||||
Earnings (loss) per share of common stock: | ||||||||||||||||||||
Basic | $ | 1.13 | $ | 1.96 | $ | 1.67 | $ | (0.72 | ) | $ | 4.06 | |||||||||
Diluted | $ | 1.11 | $ | 1.93 | $ | 1.65 | $ | (0.72 | ) | $ | 3.99 | |||||||||
2017 | ||||||||||||||||||||
Net Sales (2) | $ | 2,856.3 | $ | 3,286.7 | $ | 3,359.4 | $ | 3,464.2 | $ | 12,966.6 | ||||||||||
Gross profit (2) | 1,066.0 | 1,213.3 | 1,253.0 | 1,246.0 | 4,778.3 | |||||||||||||||
Selling, general and administrative (1)(2) | 690.3 | 744.2 | 768.9 | 795.8 | 2,999.2 | |||||||||||||||
Net earnings | 393.7 | 277.6 | 274.5 | 281.1 | 1,226.9 | |||||||||||||||
Less: Net loss attributable to non-controlling interest | — | — | — | (0.4 | ) | (0.4 | ) | |||||||||||||
Net Earnings Attributable to Common Shareowners (2) | $ | 393.7 | $ | 277.6 | $ | 274.5 | $ | 281.5 | $ | 1,227.3 | ||||||||||
Earnings per share of common stock: | ||||||||||||||||||||
Basic (2) | $ | 2.64 | $ | 1.86 | $ | 1.83 | $ | 1.88 | $ | 8.20 | ||||||||||
Diluted (2) | $ | 2.60 | $ | 1.82 | $ | 1.80 | $ | 1.84 | $ | 8.05 |
Acquisition-Related Charges & Other | Diluted EPS Impact | |
• Q1 2018 — $25 million loss ($43 million after-tax) | ($0.28) per diluted share | |
• Q2 2018 — $127 million loss ($98 million after-tax) | ($0.64) per diluted share | |
• Q3 2018 — $85 million loss ($66 million after-tax) | ($0.43) per diluted share | |
• Q4 2018 — $213 million loss ($424 million after-tax) | ($2.83) per diluted share |
Acquisition-Related Charges & Other | Diluted EPS Impact | |
• Q1 2017 — $211 million gain ($197 million after-tax) | $1.30 per diluted share | |
• Q2 2017 — $43 million loss ($29 million after-tax) | ($0.20) per diluted share | |
• Q3 2017 — $33 million loss ($24 million after-tax) | ($0.16) per diluted share | |
• Q4 2017 — $27 million loss ($53 million after-tax) | ($0.34) per diluted share |
3.1 | (a) | ||
(b) | |||
(c) | |||
(d) | |||
(e) | |||
(f) | |||
3.2 | (a) | ||
4.1 | (a) | ||
(b) | |||
4.2 | (a) | ||
(b) | |||
(c) | |||
(d) | |||
(e) | |||
(f) | |||
4.3 | (a) | ||
(b) | |||
(c) | |||
(d) | |||
(e) | |||
(f) | |||
(g) | |||
(h) | |||
4.4 | |||
4.5 | |||
4.6 | |||
4.7 | |||
4.8 | |||
10.1 | (a) | ||
(b) | |||
(c) | |||
10.2 | (a) | ||
(b) | |||
10.3 | |||
10.4 | |||
10.5 | |||
10.6 | |||
10.7 | |||
10.8 | |||
10.9 | |||
10.10 | (a) | ||
(b) | |||
10.11 | |||
10.12 | |||
10.13 | The Stanley Works Non-Employee Directors’ Benefit Trust Agreement dated December 27, 1989 and amended as of January 1, 1991 by and between The Stanley Works and Fleet National Bank, as successor trustee (incorporated by reference to Exhibit (10)(xvii)(a) to the Company’s Annual Report on Form 10-K for year ended December 29, 1990). P | ||
10.14 | (a) | ||
(b) | |||
(c) |
(d) | |||
10.15 | (a) | ||
(b) | |||
(c) | |||
(d) | |||
(e) | |||
10.16 | (a) | ||
(b) | |||
(c) | |||
(d) | |||
(e) | |||
(f) | |||
10.17 | |||
10.18 | (a) | ||
(b) | |||
10.19 | |||
10.20 | |||
10.21 | |||
10.22 | |||
10.23 | |||
10.24 | (a) | ||
(b) | |||
10.25 | |||
10.26 | |||
10.27 | |||
21 | |||
23 | |||
24 | |||
31.1 | (a) | ||
31.1 | (b) | ||
32.1 | |||
32.2 | |||
99.1 | Policy on Confidential Proxy Voting and Independent Tabulation and Inspection of Elections as adopted by The Board of Directors October 23, 1991 (incorporated by reference to Exhibit (28)(i) to the Quarterly Report on Form 10-Q for the quarter ended September 28, 1991). P | ||
* | Management contract or compensation plan or arrangement. |
P | Paper Filing |
STANLEY BLACK & DECKER, INC. | |
By: | /s/ Joseph R. Voelker |
Name: | Joseph R. Voelker |
Title: | Senior Vice President, Chief Human Resources Officer |
____________________________________ | |
EXECUTIVE | /s/ Jeffery D. Ansell |
Address: | Jeffery D. Ansell |
1000 Stanley Drive | |
New Britain, CT 06053 |
STANLEY BLACK & DECKER, INC. | |
By: | /s/ Joseph R. Voelker |
Name: | Joseph R. Voelker |
Title: | Senior Vice President, Chief Human Resources Officer |
____________________________________ | |
EXECUTIVE | /s/ Donald Allan, Jr. |
Address: | Donald Allan, Jr. |
1000 Stanley Drive | |
New Britain, CT 06053 |
![]() | James M. Loree President & Chief Executive Officer Stanley Black & Decker 1000 Stanley Drive, New Britain, CT 06053 T (860) 827-3837 |
Threshold | Target | Max | |
% of Pay | |||
# PS |
Best regards, |
James M. Loree |
President & Chief Executive Officer |
1. | Determination of Earned Performance Shares. As soon as reasonably practicable following the completion of the applicable Measurement Period, the Committee will determine (i) whether and to what extent the applicable Performance Factor levels for the Performance Goals have been achieved, and (ii) the number of Performance Shares that are deemed “earned” in respect of the Measurement Period as a result of such performance, with the number of earned Performance Shares to be linearly interpolated on a straight-line basis between specified levels of performance (i.e., for performance that falls above “threshold” level but below “target” level, or above “target” level but below “maximum” level). |
2. | Vesting; form of settlement. Performance Awards will become vested and will be settled on the Settlement Date to the extent that the applicable performance metrics have been achieved and, except as set forth below, provided that the participant is continuously employed by the Company until such time. Performance Awards will be settled in shares of Company common stock as soon as practicable following the end of the Measurement Period. Performance Awards will be settled in the form of Unrestricted Stock. |
3. | Rights of a Shareholder. The Participant shall not have any rights of a shareholder with respect to the Performance Awards or any Shares issued in settlement thereof prior to the Settlement Date. |
4. | Transferability. Transferability shall be as set forth in the 2018 Plan. |
5. | Adjustments. Notwithstanding any other provision hereof, the Committee shall have authority to make adjustments in the terms and conditions of, and the criteria included in, Performance Awards granted hereunder, as set forth in the 2018 Plan. |
6. | Miscellaneous. The Committee shall have full authority to administer the Performance Awards and to interpret the terms of the Award Documents, which authority includes the authority to waive certain conditions in appropriate circumstances. All decisions or interpretations of the Committee with respect to any question arising in respect of the Performance Awards shall be binding, conclusive and final. The waiver by the Company of any provision of this document or any other Award Document shall not operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision of this document or any other Award Document. The validity and construction of the terms of this document and any other Award Document shall be governed by the laws of the State of Connecticut. The terms and conditions set forth in this document and any other Award Document are subject in all respects to the terms and conditions of the 2018 Plan, which shall be controlling. The Participant agrees to execute such other agreements, documents or assignments as may be necessary or desirable to effect the purposes hereof. |
7. | Unfunded Arrangement. The Performance Awards represented in the Award Documents constitute an unfunded unsecured promise of the Company and the rights of the Participant in respect of the Performance Awards are no greater than the rights of an unsecured creditor of the Company. |
8. | Detrimental Activity and Recapture Provisions. The Committee or the Board may provide for the cancellation or forfeiture of a Performance Award or the forfeiture and repayment to the Company of any gain related to a Performance Award, or other provisions intended to have a similar effect, upon such terms and conditions as may be determined by the Committee or the Board from time to time (including under any applicable clawback policy adopted by the Company), including, without limitation, in the event that a Participant, during employment or other service with the Company or an affiliate, engages in activity detrimental to the business of the Company. In addition, notwithstanding anything in the 2018 Plan or the Award Documents to the contrary, the Committee or the Board may also provide for the cancellation or forfeiture of a Performance Award or the forfeiture and repayment to the Company of any gain related to a Performance Award, or other provisions intended to have a similar effect, upon such terms and conditions as may be required by the Committee or the Board under Section 10D of the Exchange Act and any applicable rules or regulations promulgated by the Securities and Exchange Commission or any national securities exchange or national securities association on which common stock of the Company may be traded or under any clawback policy adopted by the Company. |
9. | Capitalized Terms. The following capitalized terms shall have the meaning set forth below for purposes of this Letter. All other capitalized terms used in this document shall have the meanings set forth in the 2018 Plan. |
![]() | James M. Loree President & Chief Executive Officer Stanley Black & Decker 1000 Stanley Drive, New Britain, CT 06053 T (860) 827-3837 |
Threshold | Target | Max | |
2019 MICP Target | % | % | % |
MICP PSU $ Amount | $ | $ | $ |
Number of MICP PSUs |
Position | Weighting of Objectives | |
Corporate | Divisional | |
Corporate Participant | 100% | 0% |
Division Participant | [25]% | [75]% |
Best regards, |
James M. Loree |
President & Chief Executive Officer |
1. | Performance Award Opportunity. Each Participant will have an opportunity to earn a target number of performance shares denominated in units of the Company (“Performance Shares”) based upon achievement of the applicable Performance Goals, and may earn additional Performance Shares if the Performance Goals exceed “target” level, up to the applicable “maximum” number of Performance Shares that can be earned. Each Performance Share represents one share of Stanley Black & Decker Common Stock and, accordingly, the potential value of a participant’s Performance Award will change as our stock price changes. |
2. | Determination of Earned Performance Shares. As soon as reasonably practicable following the release of the Company’s financial results in respect of the Measurement Period (which generally occurs in January of each year), the Committee will determine (i) whether and to what extent the applicable Performance Factor levels for the Performance Goals have been achieved, and (ii) the number of Performance Shares that are deemed “earned” in respect of the Measurement Period as a result of such performance, with the number of earned Performance Shares to be linearly interpolated on a straight-line basis between specified levels of performance (i.e., for performance that falls above “threshold” level but below “target” level, or above “target” level but below “maximum” level”) (such earned shares, the “Eligible Shares”). Eligible Shares shall also include any Performance Shares determined by the Committee to have been earned after taking into account any applicable adjustment(s) described in the immediately following paragraph. |
3. | Service-Based Vesting Conditions. |
a. | General. Subject to the exceptions expressly set forth below, 1/3rd of a Participant’s Eligible Shares (if any) will vest on each of March 15th of 2020, 2021 and 2022 (each a “Vesting Date”), in each case, provided that the participant is continuously employed by the Company on each applicable Vesting Date. Eligible Shares shall be settled in the form of Unrestricted Stock as soon as reasonably practicable following the applicable Vesting Date. |
b. | Retirement. Notwithstanding the foregoing Paragraph 3(a), if a Participant’s employment with the Company terminates following March 15, 2020 due to Retirement, any Eligible Shares held by the Participant as of the termination date will vest and be settled in the form of Unrestricted Stock as soon as reasonably practicable following the date of such Retirement. If the Participant’s employment terminates due to Retirement on or before March 15, 2020, then, unless the Committee determines otherwise, the Participant’s Performance Shares (including any Eligible Shares) shall be immediately forfeited and cancelled. |
c. | Disability; death. Notwithstanding the foregoing Paragraphs 3(a) or (b), if a Participant’s employment with the Company terminates as a result of death or Disability on or before March 15, 2020, the Participant will remain eligible to vest in the number of Eligible Shares determined by the Committee to have been earned following the end of the Measurement Period based on the level of achievement of the Performance Goals, pro-rated by a fraction, the numerator of which is the number of completed months during which the Participant was employed by the Company during the Measurement Period, and the denominator of which is 12. Any such pro-rated Eligible Shares will be settled no later than March 15, 2020. If a participant’s employment with the Company terminates due to his or her death or Disability following March 15, 2020, any Eligible Shares held by the participant as of the termination date will vest and be settled in the form of Unrestricted Stock as soon as reasonably practicable following the date of such termination. |
d. | Termination without “Cause”. If the participant’s employment with the Company is terminated by the Company without “Cause” (as defined in the 2018 Plan) (and other than as a result of death, Disability or Retirement), the Committee shall have the discretion to treat such Participant’s Performance Shares (or, if applicable, Eligible Shares) in accordance with the treatment set forth in the foregoing paragraph 3(c) above. |
e. | Compliance with Restrictive Covenants; Release of Claims. Notwithstanding anything in these Terms & Conditions to the contrary, the Participant must be in continuous compliance with all applicable Restrictive Covenants as of the date on which any Performance Shares are settled. In the event that any Performance Shares are settled in connection with a termination of the Participant’s employment with the Company, the Company may require the Participant to execute an effective release of claims in a form provided by the Company. |
4. | Change in Control. Upon a Change in Control (as defined in the 2018 Plan), this Performance Award shall be subject to Section 9 of the 2018 Plan. If a Change in Control occurs and the Participant receives a “Replacement Award” (as defined in the 2018 Plan) in respect of this award, then, (A) if such Change in Control occurs on or following the date on which the Committee has determined the number of Eligible Shares in respect of the Measurement Period, any Eligible Shares as of the Change in Control date will be treated in accordance with the provisions of Section 9(a)(iv) of the 2018 Plan, and (B) if such Change in Control occurs prior to the date on which the Committee has determined the number of Eligible Shares in respect of the Measurement Period, then the Performance Shares shall be deemed earned at “target” level, and the number of Eligible Shares that results from such determination with be converted to time-based awards and will be treated in accordance with the provisions of Section 9(a)(iv) of the 2018 Plan. The determination as to whether an award is a “Replacement Award” shall be made by the Committee, in good faith, taking into account such factors as it deems appropriate, including the feasibility of continuing the applicable Performance Goals or Performance Goals based on the resulting entity in the applicable Change in Control. |
5. | Rights of a Shareholder. The Participant shall not have any rights of a shareholder with respect to the Performance Shares, including but not limited to, the right to receive dividends or dividend equivalents in respect thereof. With respect to any Shares that are issued to the participant in respect of the Performance Award, any rights as a shareholder with respect to such Shares will only apply on a prospective basis. |
6. | Transferability. Transferability shall be as set forth in the 2018 Plan. |
7. | Adjustments. Notwithstanding any other provision hereof, the Committee shall have authority to make adjustments in the terms and conditions of, and the criteria included in, Performance Awards granted hereunder, as set forth in the 2018 Plan. |
8. | Miscellaneous. The Committee shall have full authority to administer the Performance Awards and to interpret the terms of the Award Documents, which authority includes the authority to waive certain conditions in appropriate circumstances. All decisions or interpretations of the Committee with respect to any question arising in respect of the Performance Awards shall be binding, conclusive and final. The waiver by the Company of any provision of this document or any other Award Document shall not operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision of this document or any other Award Document. The validity and construction of the terms of this document and any other Award Document shall be governed by the laws of the State of Connecticut. The terms and conditions set forth in this document and any other Award Document are subject in all respects to the terms and conditions of the 2018 Plan, which shall be controlling. The Participant agrees to execute such other agreements, documents or assignments as may be necessary or desirable to effect the purposes hereof. |
9. | Unfunded Arrangement. The Performance Awards constitute an unfunded unsecured promise of the Company, and the rights of the Participant in respect of the Performance Awards are no greater than the rights of an unsecured creditor of the Company. |
10. | Compliance with Section 409A of the Code. |
11. | Detrimental Activity and Recapture Provisions. The Committee or the Board may provide for the cancellation or forfeiture of a Performance Award or the forfeiture and repayment to the Company of any gain related to a Performance Award, or other provisions intended to have a similar effect, upon such terms |
12. | Capitalized Terms. The following capitalized terms shall have the meaning set forth below. |
(i) | the specific reason or reasons for any denial of benefits; |
(ii) | specific references to the provision or provisions of the Plan on which the denial is based; |
(iii) | a description of any additional information or material necessary for the Participant or beneficiary to improve his or her claim, and an explanation of why such information or material is necessary; and |
(iv) | an explanation of the Plan’s claims review procedure and other appropriate information as to the steps to be taken if the Participant or beneficiary wishes to appeal the Plan Administrator’s denial of the claim. |
Corporate Name | Jurisdiction of Incorporation/ Organization | |
Domestic Subsidiaries | United States | |
3xLogic, Inc. | Delaware | |
3xLogic Indiana, LLC | Delaware | |
3xLogic Florida, LLC | Delaware | |
AeroScout (US) LLC | Delaware | |
AeroScout LLC | Delaware | |
ASIA FASTENING (US), INC. | Delaware | |
B&D Holdings, Inc. | Maryland | |
BDK FAUCET HOLDINGS INC. | Delaware | |
BLACK & DECKER (IRELAND) INC. | Delaware | |
BLACK & DECKER (U.S.) INC. | Maryland | |
BLACK & DECKER DE PANAMA LLC | Maryland | |
BLACK & DECKER FUNDING CORPORATION | Delaware | |
BLACK & DECKER GROUP, LLC | Delaware | |
BLACK & DECKER HEALTHCARE MANAGEMENT INC. | Maryland | |
BLACK & DECKER HOLDINGS, LLC | Delaware | |
BLACK & DECKER INC. | Delaware | |
BLACK & DECKER INDIA INC. | Maryland | |
BLACK & DECKER INVESTMENT COMPANY, LLC | Delaware | |
BLACK & DECKER INVESTMENTS (AUSTRALIA) LIMITED | Maryland | |
BLACK & DECKER INVESTMENTS LLC | Maryland | |
BLACK & DECKER MEXFIN LLC | Delaware | |
BLACK & DECKER PUERTO RICO INC. | Delaware | |
BLACK & DECKER SHELBYVILLE, LLC | Kentucky | |
Bostitch-Holding, L.L.C. | Delaware | |
Bulldog Barrels, LLC | Pennsylvania | |
CRC-EVANS INTERNATIONAL HOLDINGS, INC. | Delaware | |
CRC-Evans International, Inc. | Delaware | |
CRC-Evans Pipeline International, Inc. | Delaware | |
CRC-EVANS WELDING SERVICES, INC. | Delaware | |
DEVILBISS AIR POWER COMPANY | Delaware | |
DIYZ, LLC | Delaware | |
Doncasters US Holdings Inc. | Delaware | |
EMHART HARTTUNG INC. | Delaware | |
EMHART TEKNOLOGIES LLC | Delaware | |
Hardware City Associates Limited Partnership | Connecticut | |
I.D.L. Techni-Edge, LLC | Delaware | |
INFASTECH DECORAH, LLC | Delaware | |
Infologix - DDMS, Inc. | Delaware | |
InfoLogix Systems Corporation | Delaware | |
Infologix, Inc. | Delaware | |
JAFFORD LLC | Maryland | |
JennCo1, Inc. | Delaware | |
Microalloying International, Inc. | Delaware |
Corporate Name | Jurisdiction of Incorporation/ Organization | |
Domestic Subsidiaries (continued) | United States | |
Nelson Stud Welding International, LLC | Delaware | |
Nelson Stud Welding Inc. | Delaware | |
NEWFREY LLC | Delaware | |
Pacom Systems (North America) Inc. | Delaware | |
PIH U.S., Inc. | Delaware | |
PORTER-CABLE ARGENTINA, LLC | Minnesota | |
RIGHTCO II, LLC | Delaware | |
Sargent & Greenleaf, Inc. | Indiana | |
SBD Aura, Inc. | Delaware | |
SBD CAYMAN LLC | Delaware | |
SBD Insurance, Inc. | Connecticut | |
SBD LinQ, Inc. | Delaware | |
SBD MDGP Partnership Holdings LLC | Delaware | |
SBD Property Holdings, LLC | Delaware | |
SBD Scala, Inc. | Delaware | |
SecurityCo Solutions, Inc. | Delaware | |
Specialty Bar Products Company | Pennsylvania | |
Spiegelberg Manufacturing Inc. | Ohio | |
SPIRALOCK CORPORATION | Michigan | |
Stanley Access Technologies LLC | Delaware | |
Stanley Atlantic Inc. | Delaware | |
Stanley Black & Decker Cayman Holdings, Inc. | Delaware | |
Stanley Black & Decker Chile, L.L.C. | Delaware | |
Stanley Canada Holdings, L.L.C. | Delaware | |
Stanley Convergent Security Solutions, Inc. | Delaware | |
Stanley Fastening Systems, L.P. | Delaware | |
Stanley Housing Fund, Inc. | Delaware | |
Stanley Industrial & Automotive, LLC | Delaware | |
Stanley Inspection US, L.L.C. | Alabama | |
Stanley Inspection, L.L.C. | Delaware | |
Stanley International Holdings, Inc. | Delaware | |
Stanley Logistics, L.L.C. | Delaware | |
Stanley Pipeline Inspection, L.L.C. | Delaware | |
Stanley Safety Corporation, LLC | Delaware | |
Stanley Security Solutions, Inc. | Indiana | |
THE BLACK & DECKER CORPORATION | Maryland | |
The Farmington River Power Company | Connecticut | |
The Ferry Cap & Set Screw Company | Ohio | |
TOG Holdings Inc. | Delaware | |
TOG Manufacturing Company Inc. | Massachusetts | |
TSI MONITORING LLC | Nevada | |
TSI SALES & INSTALLATION LLC | Nevada | |
Waterloo Holdings, Inc. | Delaware | |
Waterloo Industries, Inc. | Delaware | |
Zag USA, Inc. | Delaware |
Corporate Name | Jurisdiction of Incorporation/ Organization | |
International Subsidiaries | ||
PIPELINE EQUIPMENT AND SERVICES SARL | Algeria | |
BLACK & DECKER ARGENTINA S.A. | Argentina | |
Stanley Black & Decker Australia Pty Ltd. | Australia | |
BLACK & DECKER FINANCE (AUSTRALIA) LTD. | Australia | |
BLACK & DECKER HOLDINGS (AUSTRALIA) PTY. LTD. | Australia | |
BLACK & DECKER NO. 4 PTY. LTD. | Australia | |
Pacom Systems Pty Limited | Australia | |
Powers Fasteners Australasia Pty Limited | Australia | |
Powers Rawl Pty. Ltd. | Australia | |
Rawl Australasia Pty. Ltd. | Australia | |
Rawlplug Unit Trust | Australia | |
Stanley Security Solutions Australia Pty Ltd | Australia | |
Stanley Black & Decker Holdings Australia Pty Ltd | Australia | |
The Stanley Works Pty. Ltd. | Australia | |
Black & Decker Distribution Pty. Ltd | Australia | |
Stanley Black & Decker Austria GmbH | Austria | |
Stanley Black & Decker (Barbados) SRL | Barbados | |
A & E SECURITY NV | Belgium | |
ARGOS-SIGNALSON SECURITY SA | Belgium | |
Black & Decker Limited BVBA | Belgium | |
CONNEXCENTER SA | Belgium | |
Connex Group SA | Belgium | |
ETAC ALARME SERVICES SECURITY SA | Belgium | |
ETAC GENT NV | Belgium | |
Facom Belgie BVBA | Belgium | |
JMD SECURITE SA | Belgium | |
Stanley Black & Decker Belgium BVBA | Belgium | |
Stanley Black & Decker Latin American Holding BVBA | Belgium | |
Stanley Black & Decker Logistics BVBA | Belgium | |
Stanley Europe BVBA | Belgium | |
Stanley Security Belgium BVBA | Belgium | |
Stanley Security Europe BVBA | Belgium | |
VAG SECURITY SYSTEMS SPRL | Belgium | |
BLACK & DECKER DO BRASIL LTDA. | Brazil | |
CRC-Evans PIH Servios De Tubulao do Brasil Ltda | Brazil | |
Irwin Industrial Tool Ferramentas do Brasil Ltda. | Brazil | |
M. HART DO BRASIL LTDA. | Brazil | |
BDB Ferramentas do Brasil Ltda | Brazil | |
REFAL INDUSTRIA E COMERCIO DE REBITES E REBITADEIRAS LTDA. | Brazil | |
SPIRALOCK DO BRASIL, LTDA. | Brazil | |
3xLogic Holdings, Inc. | Canada | |
3xLogic Systems Inc. | Canada | |
CAMACC Systems Inc. | Canada | |
Microtec Enterprises Inc. | Canada | |
Mont-Hard (Canada) Inc. | Canada | |
Mac Tools Canada Inc. | Canada | |
Nelson Stud Welding Canada, Inc. | Canada | |
First National AlarmCap. Trust | Canada | |
First National AlarmCap LP/Premiere Societe en Commandite Nationale Alarmcap | Canada | |
CRC-EVANS CANADA LTD. | Canada |
Corporate Name | Jurisdiction of Incorporation/ Organization | |
International Subsidiaries (continued) | ||
Stanley CLP3 | Canada | |
Stanley Inspection Canada Ltd. | Canada | |
STANLEY BLACK & DECKER CANADA CORPORATION | Canada | |
Stanley Technical Services Ltd. | Canada | |
XMARK Corporation | Canada | |
WINTECH CORPORATION LIMITED | Cayman Islands | |
BLACK & DECKER MANUFACTURING, DISTRIBUTION & GLOBAL PURCHASING HOLDINGS LP | Cayman Islands | |
Chiro (Cayman) Holdings Ltd. | Cayman Islands | |
Besco Investment Group Co. Ltd. | Cayman Islands | |
JOINTECH CORPORATION, LTD. | Cayman Islands | |
SBD Manufacturing, Distribution & Global Purchasing Holdings L.P. | Cayman Islands | |
SBD HOLDINGS CAYMAN, LP | Cayman Islands | |
MAQUINAS y HERRAMIENTAS BLACK & DECKER de CHILE S.A. | Chile | |
DISTRIBUIDORA PORTER CABLE LIMITADA | Chile | |
3xLOGIC Dalian Technology Company Limited | China | |
BLACK & DECKER (SUZHOU) PRECISION MANUFACTURING CO., LTD. | China | |
BLACK & DECKER (SUZHOU) POWER TOOLS CO., LTD. | China | |
BLACK & DECKER SSC CO., LTD. | China | |
BLACK & DECKER (SUZHOU) CO., LTD. | China | |
Newell Rubbermaid Products (Shenzhen) Co. Ltd. | China | |
GUANGZHOU EMHART FASTENING SYSTEM CO., LTD. | China | |
INFASTECH FASTENING SYSTEMS (WUXI) LIMITED | China | |
Hefei INTACA Science & Technology Development Co., Ltd. | China | |
Jiangsu Guoqiang Tools Co., Ltd. | China | |
INFASTECH (SHENZHEN) LIMITED | China | |
Powers Shanghai Trading Ltd. | China | |
Nelson Stud Welding (Tianjin) Company Ltd. | China | |
Shanghai Emhart Fastening System Co., Ltd. | China | |
Stanley Black & Decker Precision Manufacturing (Shenzhen) Co., Ltd. | China | |
The Stanley Works (Shanghai) Co., Ltd. | China | |
The Stanley Works (Shanghai) Management Co., Ltd. | China | |
Stanley Works (Wendeng) Tools Co., Ltd. | China | |
The Stanley Works (Zhongshan) Tool Co., Ltd. | China | |
The Stanley Works (Langfang) Fastening Systems Co., Ltd. | China | |
Stanley Black & Decker Colombia Services S.A.S. | Colombia | |
Black & Decker de Colombia S.A.S. | Colombia | |
BLACK AND DECKER DE COSTA RICA LIMITADA | Costa Rica | |
Stanley Black & Decker Czech Republic s.r.o. | Czech Republic | |
Black & Decker (Czech) s.r.o. | Czech Republic | |
TUCKER S.R.O. | Czech Republic | |
EMHART HARTTUNG A/S | Denmark | |
Stanley Security Denmark ApS | Denmark | |
BLACK & DECKER DEL ECUADOR S.A. | Ecuador | |
Stanley Black & Decker Finland Oy | Finland | |
Stanley Security Oy | Finland | |
Stanley Engineered Fastening France SAS | France | |
BGI Distribution SAS | France | |
BLACK & DECKER FINANCE SAS | France | |
Dubuis et Cie SAS | France |
Corporate Name | Jurisdiction of Incorporation/ Organization | |
International Subsidiaries (continued) | ||
Facom Holding SAS | France | |
Novia SWK SAS | France | |
Nelson Soudage de Goujons SAS | France | |
Pro One Finance SAS | France | |
SOCIETE MINIERE ET COMMERCIALE SAS | France | |
STANLEY BLACK & DECKER FRANCE SAS | France | |
Stanley Black & Decker France Services SAS | France | |
Stanley Black & Decker Manufacturing SAS | France | |
Stanley Healthcare Solutions France Sàrl | France | |
Stanley Security France SAS | France | |
Stanley Tools SAS | France | |
Stanley Engineered Fastening Industrial Deutschland GmbH | Germany | |
B.B.W. BAYRISCHE BOHRERWERKE GmbH | Germany | |
Black & Decker Holdings GmbH | Germany | |
BLACK & DECKER INTERNATIONAL HOLDINGS B.V. & CO. KG | Germany | |
Horst Sprenger GmbH recycling-tools | Germany | |
Nelson Bolzenschweiß-Technik GmbH & Co. KG | Germany | |
Nelson Bolzenschweiß-Technik Verwaltungs GmbH | Germany | |
Stanley Black & Decker Deutschland GmbH | Germany | |
Stanley Grundstuecksverwaltungs GmbH | Germany | |
Stanley Security Deutschland GmbH | Germany | |
Stanley Security Deutschland Holding GmbH | Germany | |
TUCKER GmbH | Germany | |
STANLEY BLACK & DECKER (HELLAS) EPE | Greece | |
BLACK & DECKER HONG KONG LIMITED | Hong Kong | |
AVDEL HOLDINGS (HONG KONG) LIMITED | Hong Kong | |
BDC INTERNATIONAL LIMITED | Hong Kong | |
BD Precision (Hong Kong) Limited | Hong Kong | |
BD Suzhou (Hong Kong) Limited | Hong Kong | |
BD Suzhou Power Tools (Hong Kong) Limited | Hong Kong | |
BD Xiamen (Hong Kong) Limited | Hong Kong | |
Stanley Black & Decker Limited | Hong Kong | |
Niscayah Investments Limited | Hong Kong | |
Niscayah Asia Limited | Hong Kong | |
INFASTECH COMPANY LIMITED | Hong Kong | |
INFASTECH (CHINA) LIMITED | Hong Kong | |
HANGTECH LIMITED | Hong Kong | |
EMHART GUANGZHOU (HONG KONG) LIMITED | Hong Kong | |
STANLEY BLACK & DECKER HUNGARY KORALTOLT FELELOSSEGU TARSASAG | Hungary | |
Nelson Stud Welding India Private Limited | India | |
Stanley Works (India) Private Limited | India | |
Stanley Black & Decker India Private Limited | India | |
Stanley Engineered Fastening India Private Limited | India | |
STANLEY SECURITY SOLUTIONS INDIA PRIVATE LIMITED | India | |
Lenox India Private Limited | India | |
PT STANLEY BLACK & DECKER | Indonesia | |
Stanley Black & Decker International Finance 3 Unlimited Company | Ireland | |
Stanley Security Limited | Ireland | |
SBD European Investment Unlimited Company | Ireland |
Corporate Name | Jurisdiction of Incorporation/ Organization | |
International Subsidiaries (continued) | ||
SBD European Security Investment Unlimited Company | Ireland | |
SBD European Security International Unlimited Company | Ireland | |
Gamrie Designated Activity Company | Ireland | |
Baltimore Financial Services Company Unlimited Company | Ireland | |
Baltimore Insurance Designated Activity Company | Ireland | |
Belco Investments Company Unlimited Company | Ireland | |
Black & Decker International Finance 1 Unlimited Company | Ireland | |
Black & Decker International Finance 3 Designated Activity Company | Ireland | |
Chesapeake Falls Holdings Company Unlimited Company | Ireland | |
Stanley Black & Decker International Finance 2 Unlimited Company | Ireland | |
Stanley Black & Decker International Finance 4 Unlimited Company | Ireland | |
Stanley Black & Decker International Finance 5 Unlimited Company | Ireland | |
Stanley Black & Decker Latin American Investment Unlimited Company | Ireland | |
Stanley Black & Decker Finance Unlimited Company | Ireland | |
SBD Infastech 1 Unlimited Company | Ireland | |
SBD Infastech 2 Unlimited Company | Ireland | |
Stanley Black & Decker Ireland Unlimited Company | Ireland | |
The Stanley Works Israel Ltd. | Israel | |
AeroScout Ltd. | Israel | |
Stanley Engineered Fastening Italy S.r.l. | Italy | |
DeWALT INDUSTRIAL TOOLS S.p.A. | Italy | |
Nelson Saldatura Perni S.r.l. | Italy | |
Stanley Black & Decker Italia S.r.l. | Italy | |
SWK Utensilerie S.r.l. | Italy | |
Stanley Black & Decker Italy Production S.r.l. | Italy | |
NIPPON POP RIVETS & FASTENERS, LTD. | Japan | |
INFASTECH (KOREA) LIMITED | Korea, Republic of | |
BLACK & DECKER (OVERSEAS) GmbH | Liechtenstein | |
BLACK & DECKER LUXEMBOURG FINANCE S.C.A. | Luxembourg | |
Asia Fastening (Cayman) S.à r.l. | Luxembourg | |
BLACK & DECKER ASIA MANUFACTURING HOLDINGS 1 S.à.r.l. | Luxembourg | |
BLACK & DECKER ASIA MANUFACTURING HOLDINGS 2 S.à.r.l. | Luxembourg | |
BLACK & DECKER GLOBAL HOLDINGS S.à.r.l. | Luxembourg | |
BLACK & DECKER INTERNATIONAL HOLDINGS S.A.R.L. | Luxembourg | |
BLACK & DECKER LUXEMBOURG S.A.R.L. | Luxembourg | |
BLACK & DECKER TRANSASIA S.à.r.l. | Luxembourg | |
CHESAPEAKE INVESTMENTS COMPANY S.A.R.L. | Luxembourg | |
Infastech S.à r.l. | Luxembourg | |
SBD European Security Holdings S.à r.l. | Luxembourg | |
SBD MDGP Partnership Holdings S.à r.l. | Luxembourg | |
SBD Niscayah S.à r.l. | Luxembourg | |
Stanley Black & Decker Holdings S.à r.l. | Luxembourg | |
Stanley Black & Decker Partnership Japan | Luxembourg | |
Stanley Black & Decker Partnership Japan Holdings S.à r.l. | Luxembourg | |
Black & Decker International Finance 3 Designated Activity Company | Luxembourg | |
BLACK & DECKER MACAO COMMERCIAL OFFSHORE LIMITED | Macao | |
Infastech Holdings (Malaysia) Sdn Bhd | Malaysia | |
BLACK & DECKER ASIA PACIFIC (MALAYSIA) SDN. BHD. | Malaysia | |
Infastech (Malaysia) Sdn Bhd | Malaysia | |
Stanley Security Malaysia Sdn. Bhd. | Malaysia |
Corporate Name | Jurisdiction of Incorporation/ Organization | |
International Subsidiaries (continued) | ||
INFASTECH CAMCAR MALAYSIA SDN BHD | Malaysia | |
Stanley Works (Malaysia) SDN BHD | Malaysia | |
Infastech (Mauritius) Limited | Mauritius | |
Herramientas Stanley S.A. de C.V. | Mexico | |
GRUPO BLACK & DECKER MEXICO, S. DE R.L. DE C.V. | Mexico | |
DEWALT INDUSTRIAL TOOLS, S.A. DE C.V. | Mexico | |
Nelson Fastener Systems de Mexico SA de CV | Mexico | |
BLACK & DECKER DE REYNOSA, S. DE R.L. DE C.V. | Mexico | |
BLACK AND DECKER, S.A. de C.V. | Mexico | |
Stanley-Bostitch Servicios S. de R.L. de C.V. | Mexico | |
Stanley-Bostitch, S.A. de C.V. | Mexico | |
STANLEY BLACK & DECKER MOROCCO SARL | Morocco | |
BLACK & DECKER FAR EAST HOLDINGS B.V. | Netherlands | |
Black & Decker Hardware Holdings B.V. | Netherlands | |
BLACK & DECKER HOLDINGS B.V. | Netherlands | |
Chiro Tools Holdings B.V. | Netherlands | |
CRC-Evans B.V. | Netherlands | |
ELU B.V. | Netherlands | |
NSW Fabristeel Netherlands B.V. | Netherlands | |
Stanley European Holdings B.V. | Netherlands | |
Stanley European Holdings II B.V. | Netherlands | |
Stanley Israel Investments B.V. | Netherlands | |
Stanley Works Holdings B.V. | Netherlands | |
Stichting Beheer Intellectuele Eigendomsrechten Blick Benelux B.V. | Netherlands | |
Stanley Engineered Fastening Benelux B.V. | Netherlands | |
INTERFAST B.V. | Netherlands | |
Stanley Black & Decker Asian Holdings B.V. | Netherlands | |
Stanley Black & Decker Netherlands B.V. | Netherlands | |
Stanley Security Alarmcentrale B.V. | Netherlands | |
Stanley Security Nederland B.V. | Netherlands | |
Stanley Security B.V. | Netherlands | |
Stanley Black & Decker NZ Limited | New Zealand | |
Stanley Black & Decker Norway AS | Norway | |
Stanley Security Holding AS | Norway | |
Stanley Security AS | Norway | |
PIH Services ME LLC | Oman | |
POWERS FASTENERS INC.(Panama) | Panama | |
Stanley Black & Decker CCA, S. de R.L. | Panama | |
BLACK & DECKER DEL PERU S.A. | Peru | |
Stanley Black & Decker Polska Sp. z o.o. | Poland | |
STANLEY ENGINEERED FASTENING EASTERN EUROPE SP.Z O.O. | Poland | |
Stanley Fastening Systems Poland Sp. z o.o. | Poland | |
Stanley Security Portugal, Unipessoal, Lda | Portugal | |
PIH Services ME Ltd. | Qatar | |
Stanley Black & Decker Romania SRL | Romania | |
Stanley Black & Decker Limited Liability Company | Russian Federation | |
Onglin International Limited | Samoa | |
Infastech (Singapore) Pte. Ltd | Singapore | |
Stanley Security Singapore Pte. Ltd. | Singapore | |
INFASTECH INTELLECTUAL PROPERTIES PTE. LTD. | Singapore |
Corporate Name | Jurisdiction of Incorporation/ Organization | |
International Subsidiaries (continued) | ||
INFASTECH RECEIVABLES COMPANY PTE. LTD. | Singapore | |
BLACK & DECKER ASIA PACIFIC PTE. LTD. | Singapore | |
Aeroscout (Singapore) Pte. Ltd. | Singapore | |
Stanley Works Asia Pacific Pte. Ltd. | Singapore | |
VISIOCOM INTERNATIONAL PTE LTD | Singapore | |
Stanley Black & Decker Slovakia s.r.o. | Slovakia | |
COOPERHEAT OF AFRICA (PTY) LTD | South Africa | |
DE-TECT UNIT INSPECTION (PTY) LTD | South Africa | |
UNIT INSPECTION PROPERTY (PTY) LTD | South Africa | |
Stanley Unit Inspection (Pty) Limited | South Africa | |
Pacom Systems España, S.L. | Spain | |
STANLEY BLACK & DECKER IBERICA, S.L. | Spain | |
Stanley Engineered Fastening Spain, S.L.U. | Spain | |
Stanley Black & Decker Sweden AB | Sweden | |
Pacom Group AB | Sweden | |
Niscayah Teknik AB | Sweden | |
Niscayah Group AB | Sweden | |
SBD Holding AB | Sweden | |
Stanley Security Sverige AB | Sweden | |
Stanley Security Switzerland Sàrl | Switzerland | |
EMHART GmbH | Switzerland | |
Sargent & Greenleaf S.A. | Switzerland | |
Stanley Black & Decker Sales GmbH | Switzerland | |
Stanley Black & Decker Holding GmbH | Switzerland | |
Stanley Works (Europe) GmbH | Switzerland | |
Stanley Chiro International Ltd | Taiwan | |
Stanley Fastening Systems Investment (Taiwan) Co. | Taiwan | |
Fastener Jamher Taiwan Inc. | Taiwan | |
Besco Pneumatic Corporation | Taiwan | |
EMHART TEKNOLOGIES (THAILAND) LTD. | Thailand | |
Stanley Works Limited | Thailand | |
Stanley Black & Decker Turkey Alet Uretim, Sanayi ve Ticaret Limited Sirketi | Turkey | |
Stanley Black & Decker Middle East Trading FZE | United Arab Emirates | |
Stanley Black & Decker MEA FZE | United Arab Emirates | |
Alkhaja Pimex LLC | United Arab Emirates | |
Aven Tools Limited | United Kingdom | |
Avdel Holding Limited | United Kingdom | |
Avdel UK Limited | United Kingdom | |
Bandhart | United Kingdom | |
Bandhart Overseas | United Kingdom | |
Black & Decker International Finance (UK) Limited | United Kingdom | |
Black & Decker Europe | United Kingdom | |
Black & Decker International | United Kingdom | |
Black & Decker Finance | United Kingdom | |
Stanley Black & Decker UK Limited | United Kingdom | |
Black & Decker International Finance Holdings (UK) Limited | United Kingdom | |
Black & Decker | United Kingdom | |
Dewalt Industrial Power Tool Company Ltd. | United Kingdom | |
ELU Power Tools Ltd | United Kingdom | |
CRC-Evans Offshore Limited | United Kingdom |
Corporate Name | Jurisdiction of Incorporation/ Organization | |
International Subsidiaries (continued) | ||
Contract Fire Systems Ltd | United Kingdom | |
PIH Holdings Limited | United Kingdom | |
PIH Services Limited | United Kingdom | |
Pipeline Induction Heat Limited | United Kingdom | |
Niscayah Holdings Limited | United Kingdom | |
Emhart International Limited | United Kingdom | |
Emhart International Holding Limited | United Kingdom | |
Stanley Security Solutions - Europe Limited | United Kingdom | |
Stanley Security Solutions Limited | United Kingdom | |
SWK (UK) Limited | United Kingdom | |
SWK (U.K.) Holding Limited | United Kingdom | |
Universal Inspection Systems Limited | United Kingdom | |
Tucker Fasteners Limited | United Kingdom | |
The Stanley Works Limited | United Kingdom | |
Stanley Security Solutions (NI) Limited | United Kingdom | |
Stanley UK Acquisition Company Limited | United Kingdom | |
Stanley U.K. Holding Ltd. | United Kingdom | |
Stanley UK Services Limited | United Kingdom | |
Stanley Black & Decker Finance Limited | United Kingdom | |
Stanley Black & Decker UK Group Limited | United Kingdom | |
Christie Intruder Alarms Limited | United Kingdom | |
Southern Monitoring Services Limited | United Kingdom | |
INFASTECH/TRI-STAR LIMITED | Virgin Islands, British | |
Stanley Works China Investments Limited | Virgin Islands, British |
• | Registration Statement (Form S-8 No. 2-93025) |
• | Registration Statement (Form S-8 No. 2-96778) |
• | Registration Statement (Form S-8 No. 2-97283) |
• | Registration Statement (Form S-8 No. 33-16669) |
• | Registration Statement (Form S-8 No. 33-55663) |
• | Registration Statement (Form S-8 No. 33-62565) |
• | Registration Statement (Form S-8 No. 33-62575) |
• | Registration Statement (Form S-8 No. 333-42346) |
• | Registration Statement (Form S-8 No. 333-42582) |
• | Registration Statement (Form S-8 No. 333-64326) |
• | Registration Statement (Form S-8 No. 333-162956) |
• | Registration Statement (Form S-4 No. 333-163509) |
• | Registration Statement (Form S-8 No. 333-165454) |
• | Registration Statement (Form S-8 No. 333-179699) |
• | Registration Statement (Form S-8 No. 333-190267) |
• | Registration Statement (Form S-8 No. 333-219984) |
• | Registration Statement (Form S-3 No. 333-221127) |
Signature | Title | Date | |||
/s/ James M. Loree | President and Chief Executive Officer, Director | February 26, 2019 | |||
James M. Loree | |||||
/s/ Andrea J. Ayers | Director | February 26, 2019 | |||
Andrea J. Ayers | |||||
/s/ George W. Buckley | Director | February 26, 2019 | |||
George W. Buckley | |||||
/s/ Patrick D. Campbell | Director | February 26, 2019 | |||
Patrick D. Campbell | |||||
/s/ Carlos M. Cardoso | Director | February 26, 2019 | |||
Carlos M. Cardoso | |||||
/s/ Robert B. Coutts | Director | February 26, 2019 | |||
Robert B. Coutts | |||||
/s/ Debra A. Crew | Director | February 26, 2019 | |||
Debra A. Crew | |||||
/s/ Michael D. Hankin | Director | February 26, 2019 | |||
Michael D. Hankin | |||||
/s/ Marianne M. Parrs | Director | February 26, 2019 | |||
Marianne M. Parrs | |||||
/s/ Robert L. Ryan | Director | February 26, 2019 | |||
Robert L. Ryan | |||||
/s/ James H. Scholefield | Director | February 26, 2019 | |||
James H. Scholefield | |||||
/s/ Dmitri L. Stockton | Director | February 26, 2019 | |||
Dmitri L. Stockton |
/s/ James M. Loree | ||
Date: | February 26, 2019 | James M. Loree |
President and Chief Executive Officer |
/s/ Donald Allan Jr. | ||
Date: | February 26, 2019 | Donald Allan Jr. |
Executive Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ James M. Loree |
James M. Loree |
President and Chief Executive Officer |
February 26, 2019 |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Donald Allan Jr. |
Donald Allan Jr. |
Executive Vice President and Chief Financial Officer |
February 26, 2019 |
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Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Feb. 15, 2019 |
Jun. 30, 2017 |
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | STANLEY BLACK & DECKER, INC. | ||
Trading Symbol | SWK | ||
Entity Central Index Key | 0000093556 | ||
Current Fiscal Year End Date | --12-29 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 29, 2018 | ||
Document Fiscal Year Focus | 2017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 151,356,989 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 20,300,000,000 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Net earnings | $ 605.2 | $ 1,227.3 | $ 968.0 |
Other comprehensive (loss) income: | |||
Currency translation adjustment and other | (373.0) | 478.5 | (285.8) |
Unrealized gains (losses) on cash flow hedges, net of tax | 85.8 | (66.3) | 5.8 |
Gain (Loss) on Derivative Used in Net Investment Hedge, after Tax | 59.9 | (85.2) | 76.8 |
Pension losses, net of tax | 2.1 | 5.5 | (24.2) |
Other Comprehensive Income (Loss), Net of Tax | (225.2) | 332.5 | (227.4) |
Comprehensive (loss) income attributable to common shareowners | $ 380.0 | $ 1,559.8 | $ 740.6 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 29, 2018 |
Dec. 30, 2017 |
---|---|---|
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares unissued | 9,250,000 | 9,250,000 |
Common Stock, Par or Stated Value Per Share | $ 2.5 | $ 2.5 |
Common Stock, Shares Authorized | 300,000,000 | 300,000,000 |
Common Stock, Shares, Issued | 176,902,738 | 176,902,738 |
Cost of common stock in treasury, shares | 25,600,288 | 22,864,707 |
Consolidated Statements of Changes in Shareowners' Equity (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Cash dividends declared, (USD per share) | $ 2.58 | $ 2.42 | $ 2.26 |
Treasury Stock, Shares, Acquired | 3,940,087 | ||
Stock Repurchased During Period, Shares | 3,677,435 | 202,075 | 4,651,463 |
Preferred Stock [Member] | |||
Stock Issued During Period, Value, New Issues | 750,000.0 |
Schedule II - Valuation and Qualifying Accounts |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | Schedule II — Valuation and Qualifying Accounts Stanley Black & Decker, Inc. and Subsidiaries Fiscal years ended December 29, 2018, December 30, 2017, and December 31, 2016 (Millions of Dollars)
|
SIGNIFICANT ACCOUNTING POLICIES |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION — The Consolidated Financial Statements include the accounts of Stanley Black & Decker, Inc. and its majority-owned subsidiaries (collectively the “Company”) which require consolidation, after the elimination of intercompany accounts and transactions. The Company’s fiscal year ends on the Saturday nearest to December 31. There were 52 weeks in each of the fiscal years 2018, 2017 and 2016. In April 2018, the Company acquired the industrial business of Nelson Fastener Systems ("Nelson") from the Doncasters Group, which excluded Nelson's automotive stud welding business. The acquisition is being accounted for as a business combination and the results are being consolidated into the Company's Industrial segment. In March 2017, the Company acquired the Tools business of Newell Brands ("Newell Tools") and the Craftsman® brand, which were both accounted for as business combinations. The results of these acquisitions have been consolidated into the Company's Tools & Storage segment. Refer to Note E, Acquisitions, for further discussion on these acquisitions. In the first quarter of 2017, the Company sold the majority of its mechanical security businesses within the Security segment, which included the commercial hardware brands of Best Access, phi Precision and GMT, and sold a small business within the Tools & Storage segment. The Company also sold a small business in the Industrial segment in the third quarter of 2017 and a small business in the Tools & Storage segment in the fourth quarter of 2017. The operating results of these businesses have been reported in the Consolidated Financial Statements through their respective dates of sale in 2017 and for the year ended December 31, 2016. Refer to Note T, Divestitures, for further discussion. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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. Certain amounts reported in previous years have been reclassified to conform to the 2018 presentation. Furthermore, as discussed in "New Accounting Standards" below, certain amounts reported in previous years have been recast as a result of the retrospective adoption of new accounting standards in the first quarter of 2018. FOREIGN CURRENCY — For foreign operations with functional currencies other than the U.S. dollar, asset and liability accounts are translated at current exchange rates, while income and expenses are translated using average exchange rates. Translation adjustments are reported in a separate component of shareowners’ equity and exchange gains and losses on transactions are included in earnings. CASH EQUIVALENTS — Highly liquid investments with original maturities of three months or less are considered cash equivalents. ACCOUNTS AND FINANCING RECEIVABLE — Trade receivables are stated at gross invoice amounts less discounts, other allowances and provisions for uncollectible accounts. 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. Additionally, the Company considers the credit quality of all past-due or delinquent financing receivables as nonperforming. ALLOWANCE FOR DOUBTFUL ACCOUNTS — The Company estimates its allowance for doubtful accounts 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 and write-off experience. Actual write-offs are charged against the allowance when collection efforts have been unsuccessful. INVENTORIES — U.S. inventories are primarily valued at the lower of Last-In First-Out (“LIFO”) cost or market because the Company believes it results in better matching of costs and revenues. Other inventories are primarily valued at the lower of First-In, First-Out (“FIFO”) cost and net realizable value because LIFO is not permitted for statutory reporting outside the U.S. Refer to Note C, Inventories, for a quantification of the LIFO impact on inventory valuation. PROPERTY, PLANT AND EQUIPMENT — The Company generally values property, plant and equipment (“PP&E”), including capitalized software, at historical cost less accumulated depreciation and amortization. Costs related to maintenance and repairs which do not prolong the asset's useful life are expensed as incurred. Depreciation and amortization are provided using straight-line methods over the estimated useful lives of the assets as follows:
Leasehold improvements are depreciated over the shorter of the estimated useful life or the term of the lease. The Company reports depreciation and amortization of property, plant and equipment in cost of sales and selling, general and administrative expenses based on the nature of the underlying assets. Depreciation and amortization related to the production of inventory and delivery of services are recorded in cost of sales. Depreciation and amortization related to distribution center activities, selling and support functions are reported in selling, general and administrative expenses. The Company assesses its long-lived assets for impairment when indicators that the carrying amounts may not be recoverable are present. In assessing long-lived assets for impairment, the Company groups its long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are generated (“asset group”) and estimates the undiscounted future cash flows that are directly associated with, and expected to be generated from, the use of and eventual disposition of the asset group. If the carrying value is greater than the undiscounted cash flows, an impairment loss must be determined and the asset group is written down to fair value. The impairment loss is quantified by comparing the carrying amount of the asset group to the estimated fair value, which is generally determined using weighted-average discounted cash flows that consider various possible outcomes for the disposition of the asset group. GOODWILL AND INTANGIBLE ASSETS — Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Intangible assets acquired are recorded at estimated fair value. Goodwill and intangible assets deemed to have indefinite lives are not amortized, but are tested for impairment annually during the third quarter, and at any time when events suggest an impairment more likely than not has occurred. To assess goodwill for impairment, the Company, depending on relevant facts and circumstances, performs either a qualitative assessment, as permitted by Accounting Standards Update ("ASU") 2011-08, Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for Impairment, or a quantitative analysis utilizing a discounted cash flow valuation model. In performing a qualitative assessment, the Company first assesses relevant factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step quantitative goodwill impairment test. The Company identifies and considers the significance of relevant key factors, events, and circumstances that could affect the fair value of each reporting unit. These factors include external factors such as macroeconomic, industry, and market conditions, as well as entity-specific factors, such as actual and planned financial performance. The Company also considers changes in each reporting unit's fair value and carrying amount since the most recent date a fair value measurement was performed. In performing a quantitative analysis, the Company determines the fair value of a reporting unit using management’s assumptions about future cash flows based on long-range strategic plans. This approach incorporates many assumptions including discount rates, future growth rates and expected profitability. In the event the carrying amount of a reporting unit exceeded its fair value, an impairment loss would be recognized to the extent the carrying amount of the reporting unit’s goodwill exceeded the implied fair value of the goodwill. Indefinite-lived intangible assets are tested for impairment utilizing either a qualitative assessment or a quantitative analysis. For a qualitative assessment, the Company identifies and considers relevant key factors, events, and circumstances to determine whether it is necessary to perform a quantitative impairment test. The key factors considered include macroeconomic, industry, and market conditions, as well as the asset's actual and forecasted results. For the quantitative impairment tests, the Company compares the carrying amounts to the current fair market values, usually determined by the estimated cost to lease the assets from third parties. Intangible assets with definite lives are amortized over their estimated useful lives generally using an accelerated method. Under this accelerated method, intangible assets are amortized reflecting the pattern over which the economic benefits of the intangible assets are consumed. Definite-lived intangible assets are also evaluated for impairment when impairment indicators are present. If the carrying amount exceeds the total undiscounted future cash flows, a discounted cash flow analysis is performed to determine the fair value of the asset. If the carrying amount of the asset was to exceed the fair value, it would be written down to fair value. No significant goodwill or other intangible asset impairments were recorded during 2018, 2017 or 2016. 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. 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 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 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 business. 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 in the Consolidated Balance Sheets 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 Sheets. Refer to Note B, Accounts and Notes Receivable, for further discussion. COST OF SALES AND SELLING, GENERAL & ADMINISTRATIVE — Cost of sales includes the cost of products and services provided reflecting costs of manufacturing and preparing the product for sale. These costs include expenses to acquire and manufacture products to the point that they are allocable to be sold to customers and costs to perform services pertaining to service revenues (e.g. installation of security systems, automatic doors, and security monitoring costs). Cost of sales is primarily comprised of freight, direct materials, direct labor as well as overhead which includes indirect labor and facility and equipment costs. Cost of sales also includes quality control, procurement and material receiving costs as well as internal transfer costs. Selling, general & administrative costs ("SG&A") include the cost of selling products as well as administrative function costs. These expenses generally represent the cost of selling and distributing the products once they are available for sale and primarily include salaries and commissions of the Company’s sales force, distribution costs, notably salaries and facility costs, as well as administrative expenses for certain support functions and related overhead. ADVERTISING COSTS — Television advertising is expensed the first time the advertisement airs, whereas other advertising is expensed as incurred. Advertising costs are classified in SG&A and amounted to $101.3 million in 2018, $123.3 million in 2017 and $124.1 million in 2016. Expense pertaining to cooperative advertising with customers reported as a reduction of Net Sales was $315.8 million in 2018, $297.4 million in 2017 and $232.5 million in 2016. Cooperative advertising with customers classified as SG&A expense amounted to $5.4 million in 2018, $6.1 million in 2017 and $6.6 million in 2016. SALES TAXES — Sales and value added taxes collected from customers and remitted to governmental authorities are excluded from Net Sales reported in the Consolidated Statements of Operations. SHIPPING AND HANDLING COSTS — The Company generally does not bill customers for freight. Shipping and handling costs associated with inbound and outbound freight are reported in Cost of sales. Distribution costs are classified in SG&A and amounted to $316.0 million, $279.8 million and $235.3 million in 2018, 2017 and 2016, respectively. STOCK-BASED COMPENSATION — Compensation cost relating to stock-based compensation grants is recognized on a straight-line basis over the vesting period, which is generally four years. The expense for stock options and restricted stock units awarded to retirement-eligible employees (those aged 55 and over, and with 10 or more years of service) is recognized on the grant date, or (if later) by the date they become retirement-eligible. POSTRETIREMENT DEFINED BENEFIT PLAN — The Company uses the corridor approach to determine expense recognition for each defined benefit pension and other postretirement plan. The corridor approach defers actuarial gains and losses resulting from variances between actual and expected results (based on economic estimates or actuarial assumptions) and amortizes them over future periods. For pension plans, these unrecognized gains and losses are amortized when the net gains and losses exceed 10% of the greater of the market-related value of plan assets or the projected benefit obligation at the beginning of the year. For other postretirement benefits, amortization occurs when the net gains and losses exceed 10% of the accumulated postretirement benefit obligation at the beginning of the year. For ongoing, active plans, the amount in excess of the corridor is amortized on a straight-line basis over the average remaining service period for active plan participants. For plans with primarily inactive participants, the amount in excess of the corridor is amortized on a straight-line basis over the average remaining life expectancy of inactive plan participants. INCOME TAXES — The Company accounts for income taxes under the asset and liability method in accordance with ASC 740, Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. Any changes in tax rates on deferred tax assets and liabilities are recognized in income in the period that includes the enactment date. The Company records net deferred tax assets to the extent that it is more likely than not that these assets will be realized. In making this determination, management considers all available positive and negative evidence, including future reversals of existing temporary differences, estimates of future taxable income, tax-planning strategies, and the realizability of net operating loss carryforwards. In the event that it is determined that an asset is not more likely that not to be realized, a valuation allowance is recorded against the asset. Valuation allowances related to deferred tax assets can be impacted by changes to tax laws, changes to statutory tax rates and future taxable income levels. In the event the Company were to determine that it would not be able to realize all or a portion of its deferred tax assets in the future, the unrealizable amount would be charged to earnings in the period in which that determination is made. Conversely, if the Company were to determine that it would be able to realize deferred tax assets in the future in excess of the net carrying amounts, it would decrease the recorded valuation allowance through a favorable adjustment to earnings in the period that the determination was made. The Company records uncertain tax positions in accordance with ASC 740, which requires a two-step process. First, management determines whether it is more likely than not that a tax position will be sustained based on the technical merits of the position and second, for those tax positions that meet the more likely than not threshold, management recognizes the largest amount of the tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related taxing authority. The Company maintains an accounting policy of recording interest and penalties on uncertain tax positions as a component of Income taxes in the Consolidated Statements of Operations. The Company is subject to income tax in a number of locations, including many state and foreign jurisdictions. Significant judgment is required when calculating the worldwide provision for income taxes. Many factors are considered when evaluating and estimating the Company's tax positions and tax benefits, which may require periodic adjustments, and which may not accurately anticipate actual outcomes. It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company's unrecognized tax positions will significantly increase or decrease within the next twelve months. These changes may be the result of settlements of ongoing audits or final decisions in transfer pricing matters. The Company periodically assesses its liabilities and contingencies for all tax years still subject to audit based on the most current available information, which involves inherent uncertainty. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (“the Act”). Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, changes to U.S. international taxation, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. Pursuant to Staff Accounting Bulletin No. 118 (“SAB 118”) issued by the SEC in December 2017, issuers were permitted up to one year from the enactment of the Act to complete the accounting for the income tax effects of the Act (“the measurement period”). The Company completed its accounting for the tax effects of the Act within the measurement period and has included those effects within Income taxes in the Consolidated Statements of Operations. The Act subjects a U.S. shareholder to current tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The Financial Accounting Standards Board ("FASB") Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. The Company has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. Refer to Note Q, Income Taxes, for further discussion. EARNINGS PER SHARE — Basic earnings per share equals net earnings attributable to common shareowners divided by weighted-average shares outstanding during the year. Diluted earnings per share include the impact of common stock equivalents using the treasury stock method when the effect is dilutive. NEW ACCOUNTING STANDARDS ADOPTED — In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715) (“new pension standard”). The new pension standard improves the presentation of net periodic pension cost and net periodic postretirement benefit cost. The Company adopted this standard in the first quarter of 2018 utilizing the full retrospective method. As a result of the adoption, all components other than service cost were reclassified from Cost of sales and SG&A to Other, net in the Consolidated Statements of Operations. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The objective of this update is to provide additional guidance and reduce diversity in practice when classifying certain transactions within the statement of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The Company adopted these standards ("new cash flow standards") in the first quarter of 2018 utilizing the retrospective transition method. The impacts of the new standards relate to the presentation of restricted cash as well as certain cash flows related to an accounts receivable sale program that was terminated in the first quarter of 2018. Refer to Note B, Accounts and Notes Receivable, for further discussion. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“new revenue standard”). The new revenue standard outlines a comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The new model provides a five-step analysis in determining when and how revenue is recognized. The core principle of the new guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard allows for initial application to be performed retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company adopted the new revenue standard in the first quarter of 2018 using the full retrospective method. Accordingly, certain prior period amounts have been recast to reflect the financial results of the Company in accordance with the new revenue standard. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings for the earliest balance sheet period presented. As a result of the adoption of the new revenue standard, outbound freight is recorded as a component of cost of sales as opposed to a reduction of net sales. The new revenue standard also requires companies to record an asset for anticipated customer return of inventory and a sales return reserve at the gross amount of the initial sale, rather than at the net margin amount. Additionally, certain sales to distributors subject to a guarantee with a third-party financier that were previously deferred are now recognized upon shipment in accordance with the new revenue standard and the associated short-term and long-term accounts receivable and short-term and long-term debt balances have been recast. Lastly, for certain product warranties provided to customers that meet the criteria of a service-type warranty, a portion of consideration paid by customers must now be deferred and recognized as revenue over the anticipated service warranty period. As a result of the adoption of the new revenue and pension standards, certain amounts in the Consolidated Statements of Operations for the years ended December 30, 2017 and December 31, 2016 have been recast, as follows:
1As previously reported in the Company's 2017 Form 10-K.
1As previously reported in the Company's 2017 Form 10-K. As a result of the adoption of the new revenue standard, certain balances as of December 30, 2017 in the Consolidated Balance Sheets have been recast, as follows:
1As previously reported in the Company's 2017 Form 10-K. 2Adjustment includes the cumulative effect of the adoption of $4.3 million for periods prior to fiscal year 2016. As a result of the adoption of the new revenue and cash flows standards, certain amounts for the years ended December 30, 2017 and December 31, 2016 in the Consolidated Statements of Cash Flows have been recast, as follows:
1As previously reported in the Company's 2017 Form 10-K with the exception of certain amounts that have been reclassified to conform to the 2018 presentation.
1As previously reported in the Company's 2017 Form 10-K with the exception of certain amounts that have been reclassified to conform to the 2018 presentation. In August 2018, the SEC issued Disclosure Update and Simplification Release (“DUSTR”) modifying various disclosure requirements. The amendments are effective for all filings made on or after November 5, 2018. However, the SEC staff has provided an extended transition period for companies to comply with the new interim disclosure requirement to provide a reconciliation of changes in shareholders’ equity (either in a separate statement or note to the financial statements). The extended transition period allows companies to first present the reconciliation of changes in shareholders' equity in its Form 10-Q for the first quarter that begins after the effective date of November 5, 2018. There was no significant change to the Company's annual disclosures as a result of this guidance. In December 2017, the SEC staff issued SAB 118, which provides guidance on accounting for the tax effects of the Act. SAB 118 provided a measurement period not to extend beyond one year from the Act enactment date for companies to complete the accounting under ASC 740, Income Taxes, (the "measurement period"). The Company completed its accounting for the tax effects of the Act within the measurement period and has included those effects within Income Taxes in the Consolidated Statements of Operations. Refer to Note Q, Income Taxes, for further discussion. In August 2017, the FASB issued ASU 2017-12, Derivatives And Hedging (Topic 815): Targeted Improvements to Accounting for Hedge Activities. The new standard amends the hedge accounting recognition and presentation requirements in ASC 815. As permitted by ASU 2017-12, the Company early adopted this standard in the first quarter of 2018 on a prospective basis. See above for the updated financial instruments policy reflecting the adoption of this standard. In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610). The new standard provides guidance for recognizing gains and losses of nonfinancial assets in contracts with non-customers. The Company adopted this standard in the first quarter of 2018 and it did not have an impact on its Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The new standard narrows the definition of a business and provides a framework for evaluation. The Company adopted this standard prospectively in the first quarter of 2018. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. The new standard eliminates the exception to the principle in ASC 740, for all intra-entity sales of assets other than inventory, to be deferred, until the transferred asset is sold to a third party or otherwise recovered through use. The Company adopted this standard in the first quarter of 2018 and it did not have a material impact on its Consolidated Financial Statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The main objective of this update is to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The new guidance addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The Company adopted this standard in the first quarter of 2018 and it did not have a material impact on its Consolidated Financial Statements. RECENTLY ISSUED ACCOUNTING STANDARDS NOT YET ADOPTED — In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. The standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the timing of adopting the new guidance as well as the impact it may have on its Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20). The standard modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The ASU is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820). The standard modifies disclosure requirements of fair value measurements. The ASU is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the timing of adopting the new guidance as well as the impact it may have on its Consolidated Financial Statements. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The new guidance permits, but does not require, companies to reclassify the stranded tax effects of the Act on items within accumulated other comprehensive income to retained earnings. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company does not plan to reclassify these stranded tax effects and therefore, does not expect this standard to have an impact on its Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350). The new standard simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. This ASU will be applied prospectively and is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the timing of its adoption of this standard. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326). The new standard amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating this guidance to determine the impact it may have on its Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ("new lease standard"). The objective of the new lease standard is to increase transparency and comparability among organizations by requiring recognition of all lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, and ASU 2018-11, Targeted Improvements, Leases (Topic 842), which provide clarification on how to apply certain aspects of the new lease standard and allow entities to initially apply the standards from the adoption date. In December 2018, the FASB issued ASU 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors, which clarified how lessors should apply certain aspects of the new lease standard. These standards are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company expects to utilize the new transition method to apply the standards from the adoption date effective the first quarter of 2019. Upon adoption, the Company expects to record lease liabilities and right-of-use assets of approximately $425 million - $475 million on its consolidated balance sheets. The Company does not expect the standards to impact its consolidated statements of operations or retained earnings. |
ACCOUNTS AND NOTES RECEIVABLE |
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ACCOUNTS AND NOTES RECEIVABLE | ACCOUNTS AND NOTES RECEIVABLE
1Certain prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note A, Significant Accounting Policies, for further discussion. Trade receivables are dispersed among a large number of retailers, distributors and industrial accounts in many countries. Adequate reserves have been established to cover anticipated credit losses. Long-term receivable, net, of $153.7 million and $176.9 million at December 29, 2018 and December 30, 2017, respectively, are reported within Other Assets in the Consolidated Balance Sheets. The Company's financing receivables are predominantly related to certain security equipment leases with commercial businesses. Generally, the Company retains legal title to any equipment leases and bears 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 Company considers any financing receivable that has not been collected within 90 days of original billing date as past-due or delinquent. 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. In October 2018, the Company entered into a new accounts receivable sale program. According to the terms, the Company is required to sell certain of its trade accounts receivables at fair value to a wholly owned, consolidated, bankruptcy-remote special purpose subsidiary (“BRS"). The BRS, in turn, is required to 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 and receivables are derecognized from the Company’s Consolidated Balance Sheets 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 December 29, 2018, 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 December 29, 2018, $100.1 million of net receivables were derecognized. Gross receivables sold amounted to $618.3 million ($481.8 million, net) for the year ended December 29, 2018. These sales resulted in a pre-tax loss of $0.7 million for the year ended December 29, 2018, which included servicing fees of $0.2 million. Proceeds from transfers of receivables to the Purchaser totaled $194.3 million for the year ended December 29, 2018. Collections of previously sold receivables resulted in payments to the Purchaser of $94.3 million for the year ended December 29, 2018. All cash flows under the program are reported as a component of changes in accounts receivable within operating activities in the Consolidated Statements of Cash Flows since all the cash from the Purchaser is received upon the initial sale of the receivable. Prior to January 2018, the Company had a separate accounts receivable sale program. According to the terms of that program, the Company was required to sell certain of its trade accounts receivables at fair value to the BRS. The BRS, in turn, was required to sell such receivables to a third-party financial institution (“Purchasing Institution”) for cash and a deferred purchase price receivable. The Purchasing Institution’s maximum cash investment in the receivables at any time was $100.0 million. The purpose of the program was to provide liquidity to the Company. The Company accounted for these transfers as sales under ASC 860, Transfers and Servicing. Receivables were derecognized from the Company’s Consolidated Balance Sheets when the BRS sold those receivables to the Purchasing Institution. The Company had no retained interests in the transferred receivables, other than collection and administrative responsibilities and its right to the deferred purchase price receivable. In January 2018, the Company signed an amendment that changed the structure of this program which eliminated the deferred purchase price receivable from the Purchasing Institution and resulted in the BRS retaining ownership of the trade accounts receivables. This program was then terminated on February 1, 2018. At December 30, 2017, $100.8 million of net receivables were derecognized. Gross receivables sold amounted to $2.181 billion ($1.830 billion, net) and resulted in a pre-tax loss of $7.5 million for the year ended December 30, 2017, which included servicing fees of $1.4 million. Proceeds from transfers of receivables to the Purchasing Institution totaled $1.023 billion for the year ended December 30, 2017. Collections of previously sold receivables, including deferred purchase price receivables, and all fees, which were settled one month in arrears, resulted in payments to the Purchasing Institution of $1.785 billion for the year ended December 30, 2017. The Company’s risk of loss following the sale of the receivables was limited to the deferred purchase price receivable, which was $106.9 million at December 30, 2017. The deferred purchase price receivable was settled in full in January 2018, and historically was repaid in cash as receivables were collected, generally within 30 days. As such, the carrying value of the receivable recorded at December 30, 2017 approximated fair value. Delinquencies and credit losses on receivables sold were $0.2 million for the year ended December 30, 2017. Cash inflows related to the deferred purchase price receivable totaled $704.7 million for the year ended December 30, 2017. In accordance with the adoption of the new cash flows standards described in Note A, Significant Accounting Policies, the proceeds related to the deferred purchase price receivable are classified as investing activities. As of December 29, 2018 and December 30, 2017, the Company's deferred revenue totaled $202.0 million and $117.0 million, respectively, of which $98.6 million and $95.6 million, respectively, was classified as current. Revenue recognized for the years ended December 29, 2018 and December 30, 2017 that was previously deferred as of December 30, 2017 and December 31, 2016 totaled $89.3 million and $76.3 million, respectively. As of December 29, 2018, approximately $1.160 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 5 years. This amount excludes any of the Company's contracts with an original expected duration of one year or less. |
INVENTORIES |
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INVENTORIES | INVENTORIES
Net inventories in the amount of $1.2 billion at December 29, 2018 and $896.9 million at December 30, 2017 were valued at the lower of LIFO cost or market. If the LIFO method had not been used, inventories would have been $44.6 million higher than reported at December 29, 2018 and $2.9 million lower than reported at December 30, 2017. As part of the Nelson acquisition in the second quarter of 2018, the Company acquired net inventory with an estimated fair value of $48.6 million. Refer to Note E, Acquisitions, for further discussion of the Nelson acquisition. |
PROPERTY, PLANT AND EQUIPMENT |
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PROPERTY, PLANT AND EQUIPMENT | D. PROPERTY, PLANT AND EQUIPMENT
Depreciation and amortization expense associated with property, plant and equipment was as follows:
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MERGER AND ACQUISITIONS |
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MERGER AND ACQUISITIONS | ACQUISITIONS PENDING ACQUISITION On August 6, 2018, the Company reached an agreement to acquire International Equipment Solutions Attachments Group ("IES Attachments"), a manufacturer of high quality, performance-driven heavy equipment attachment tools for off-highway applications. On January 29, 2019, the agreement was amended to exclude the mobile processors business. The Company expects the acquisition to further diversify the Company's presence in the industrial markets, expand its portfolio of attachment solutions and provide a meaningful platform for continued growth. The acquisition will be accounted for as a business combination and consolidated into the Company's Industrial segment. The transaction is expected to close in the first half of 2019 subject to customary closing conditions, including regulatory approvals. 2019 TRANSACTION On January 2, 2019, the Company acquired a 20 percent interest in MTD Holdings Inc. ("MTD"), a privately held global manufacturer of outdoor power equipment, for $234 million in cash. With 2017 revenues of $2.4 billion, MTD manufactures and distributes gas-powered lawn tractors, zero turn mowers, walk behind mowers, snow throwers, trimmers, chain saws, utility vehicles and other outdoor power equipment. Under the terms of the agreement, the Company has the option to acquire the remaining 80 percent of MTD beginning on July 1, 2021 and ending on January 2, 2029. In the event the option is exercised, the companies have agreed to a valuation multiple based on MTD’s 2018 EBITDA, with an equitable sharing arrangement for future EBITDA growth. The investment in MTD increases the Company's presence in the $20 billion global lawn and garden segment and will allow the two companies to work together to pursue revenue and cost opportunities, improve operational efficiency, and introduce new and innovative products for professional and residential outdoor equipment customers, utilizing each company's respective portfolios of strong brands. The Company will apply the equity method of accounting to the MTD investment. 2018 ACQUISITIONS Nelson Fasteners Systems On April 2, 2018, the Company acquired the industrial business of Nelson Fastener Systems ("Nelson") from the Doncasters Group, which excluded Nelson's automotive stud welding business, for $430.1 million, net of cash acquired and an estimated working capital adjustment. Nelson is complementary to the Company's product offerings, enhances its presence in the general industrial end markets, expands its portfolio of highly-engineered fastening solutions, and will deliver cost synergies. The results of Nelson are being consolidated into the Industrial segment. The Nelson acquisition is being accounted for as a business combination, which requires, among other things, the assets acquired and liabilities assumed to be recognized at their fair values as of the acquisition date. The estimated fair value of identifiable net assets acquired, which includes $64.9 million of working capital and $167.0 million of intangible assets, is $210.6 million. The related goodwill is $219.5 million. The amount allocated to intangible assets includes $149.0 million for customer relationships. The useful lives assigned to the intangible assets range from 12 to 15 years. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the expected cost synergies of the combined business, assembled workforce, and the going concern nature of Nelson. Goodwill is not expected to be deductible for tax purposes. The purchase price allocation for Nelson is substantially complete with the exception of certain opening balance sheet contingencies, including environmental, and tax matters. The Company will complete its purchase price allocation within the measurement period. Any measurement period adjustments resulting from the finalization of the Company's purchase accounting assessment are not expected to be material. A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. The Company’s judgments used to determine the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact the Company’s results from operations. Other 2018 Acquisitions During 2018, the Company completed six smaller acquisitions for a total purchase price of $105.2 million, net of cash acquired. The estimated fair value of the identifiable net assets acquired, which includes $13.0 million of working capital and $35.5 million of intangible assets, is $37.8 million. The related goodwill is $67.4 million. The amount allocated to intangible assets includes $32.0 million for customer relationships. The useful lives assigned to intangible assets ranges from 10 to 14 years. The purchase price allocation for these acquisitions is substantially complete with the exception of certain working capital accounts, various opening balance sheet contingencies and tax matters. These adjustments are not expected to have a material impact on the Company’s Consolidated Financial Statements. 2017 ACQUISITIONS Newell Tools On March 9, 2017, the Company acquired Newell Tools for approximately $1.86 billion, net of cash acquired. The Newell Tools results have been consolidated into the Company's Tools & Storage segment. The Newell Tools acquisition was accounted for as a business combination. The purchase price allocation for Newell Tools is complete. The measurement period adjustments recorded in 2018 did not have a material impact to the Company's Consolidated Financial Statements. The following table summarizes the estimated fair values of assets acquired and liabilities assumed:
The trade names were determined to have indefinite lives. The weighted-average useful life assigned to the customer relationships is 15 years. Goodwill was calculated as the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined business, assembled workforce, and the going concern nature of Newell Tools. It is estimated that $15.7 million of goodwill, relating to the pre-acquisition historical tax basis of goodwill, will be deductible for tax purposes. Craftsman Brand On March 8, 2017, the Company purchased the Craftsman® brand from Sears Holdings Corporation ("Sears Holdings") for a total estimated cash purchase price of $936.7 million on a discounted basis, which consists of an initial cash payment of $568.2 million, a cash payment due in March 2020 with an estimated present value at acquisition date of $234.0 million, and future payments to Sears Holdings of between 2.5% and 3.5% on sales of Craftsman products in new Stanley Black & Decker channels through March 2032, which was valued at $134.5 million at the acquisition date based on estimated future sales projections. Refer to Note M, Fair Value Measurements, for additional details. In addition, as part of the acquisition the Company also granted a perpetual license to Sears Holdings to continue selling Craftsman®-branded products in Sears Holdings-related channels. The perpetual license will be royalty-free until March 2032, which represents an estimated value of approximately $293.0 million, and 3% thereafter. The Craftsman results have been consolidated into the Company's Tools & Storage segment. The Craftsman® brand acquisition was accounted for as a business combination. The purchase price allocation for Craftsman is complete. The measurement period adjustments recorded in 2018 did not have a material impact on the Company's consolidated financial statements. The estimated fair value of identifiable net assets acquired, which includes $40.2 million of working capital and $418.0 million of intangible assets, is $482.6 million. The related goodwill is $747.1 million. The amount allocated to intangible assets includes $396.0 million of an indefinite-lived trade name. The useful life assigned to the customer relationships is 17 years. Goodwill was calculated as the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined business and the going concern nature of the Craftsman® brand. It is estimated that $442.7 million of goodwill will be deductible for tax purposes. Other 2017 Acquisitions During 2017, the Company completed four smaller acquisitions for a total purchase price of $182.9 million, net of cash acquired, which have been consolidated into the Company's Tools & Storage and Security segments. The purchase price allocation for these acquisitions is complete. The estimated fair value of the identifiable net assets acquired, which includes $35.3 million of working capital and $54.4 million of intangible assets, is $88.1 million. The related goodwill is $94.8 million. The amount allocated to intangible assets includes $51.4 million for customer relationships. The useful lives assigned to the customer relationships range between 10 and 15 years. 2016 ACQUISITIONS During 2016, the Company completed five acquisitions for a total purchase price of $59.3 million, net of cash acquired, which have been consolidated into the Company’s Tools & Storage and Security segments. The total purchase price for the acquisitions was allocated to the assets and liabilities assumed based on their estimated fair values. The purchase accounting for these acquisitions is complete. ACTUAL AND PRO-FORMA IMPACT FROM ACQUISITIONS Actual Impact from Acquisitions The net sales and net loss from the 2018 acquisitions included in the Company's Consolidated Statements of Operations for the year ended December 29, 2018 are shown in the table below. The net loss includes amortization relating to inventory step-up and intangible assets recorded upon acquisition, transaction costs, and other integration-related costs.
Pro-forma Impact from Acquisitions The following table presents supplemental pro-forma information for the years ended December 29, 2018 and December 30, 2017, as if the 2017 and 2018 acquisitions had occurred on January 1, 2017. 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 January 1, 2017. In addition, the pro-forma consolidated results do not purport to project the future results of the Company.
2018 Pro-forma Results The 2018 pro-forma results were calculated by combining the results of Stanley Black & Decker with the stand-alone results of the 2018 acquisitions for their respective pre-acquisition periods. Accordingly the following adjustments were made:
2017 Pro-forma Results The 2017 pro-forma results were calculated by combining the results of Stanley Black & Decker with the stand-alone results of the 2017 and 2018 acquisitions for their respective pre-acquisition periods. Accordingly the following adjustments were made:
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GOODWILL AND INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS GOODWILL — The changes in the carrying amount of goodwill by segment are as follows:
As required by the Company's policy, goodwill and indefinite-lived trade names were tested for impairment in the third quarter of 2018. The Company assessed the fair values of three of its reporting units utilizing a discounted cash flow valuation model and determined that the fair values exceeded the respective carrying amounts. The key assumptions used were discount rates and perpetual growth rates applied to cash flow projections. Also inherent in the discounted cash flow valuations were near-term revenue growth rates over the next five years. These assumptions contemplated business, market and overall economic conditions. For the remaining two reporting units, the Company determined qualitatively that it was not more likely than not that goodwill was impaired, and thus, the quantitative goodwill impairment test was not required. In making this determination, the Company considered the significant excess of fair value over carrying amount as calculated in the most recent quantitative analysis, each reporting unit's 2018 performance compared to prior year and their respective industries, analyst multiples and other positive qualitative information. Based on the results of the annual impairment testing performed in the third quarter of 2018, the Company determined that the fair values of each of its reporting units exceeded their respective carrying amounts. The fair values of the Company's indefinite-lived trade names were assessed using quantitative analyses, which utilized discounted cash flow valuation models taking into consideration appropriate discount rates, royalty rates and perpetual growth rates applied to projected sales. Based on the results of this testing, the Company determined that the fair values of each of its indefinite-lived trade names exceeded their respective carrying amounts. INTANGIBLE ASSETS — Intangible assets at December 29, 2018 and December 30, 2017 were as follows:
Indefinite-lived trade names totaled $2.199 billion at December 29, 2018 and $2.206 billion at December 30, 2017. The year-over-year change is due to currency fluctuations. Intangible assets amortization expense by segment was as follows:
Future amortization expense in each of the next five years amounts to $168.6 million for 2019, $150.5 million for 2020, $141.9 million for 2021, $132.7 million for 2022, $123.7 million for 2023 and $568.1 million thereafter. |
ACCRUED EXPENSES |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses at December 29, 2018 and December 30, 2017 were as follows:
1 Certain prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note A, Significant Accounting Policies, for further discussion. |
LONG-TERM DEBT AND FINANCING ARRANGEMENTS |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT AND FINANCING ARRANGEMENTS | LONG-TERM DEBT AND FINANCING ARRANGEMENTS Long-term debt and financing arrangements at December 29, 2018 and December 30, 2017 were as follows:
1 Unamortized gain (loss) associated with interest rate swaps are more fully discussed in Note I, Financial Instruments. 2 Certain prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note A, Significant Accounting Policies, for further discussion. As of December 29, 2018, the aggregate annual principal maturities of long-term debt for each of the years from 2019 to 2023 are $2.9 million for 2019, $0.4 million for 2020, $400.4 million for 2021, $758.5 million for 2022, no principal maturities for 2023, and $2.700 billion thereafter. These maturities represent the principal amounts to be paid and accordingly exclude the remaining $10.0 million of unamortized fair value adjustments made in purchase accounting, which increased the Black & Decker note payable due 2028, as well as a net loss of $8.3 million pertaining to unamortized termination gain/loss on interest rate swaps and unamortized discount on the notes as described in Note I, Financial Instruments, and $41.6 million of unamortized deferred financing fees. Interest paid during 2018, 2017 and 2016 amounted to $249.6 million, $198.3 million and $176.6 million, respectively. In November 2018, the Company issued $500 million of senior unsecured notes, maturing on November 15, 2028 ("2028 Term Notes") and $500 million of senior unsecured notes, maturing on November 15, 2048 ("2048 Term Notes"). The 2028 Term Notes and 2048 Term Notes will accrue interest at fixed rates of 4.25% per annum and 4.85% per annum, respectively, with interest payable semi-annually in arrears on both notes. The notes are unsecured and rank equally with all of the Company's existing and future unsecured and unsubordinated debt. The Company received net proceeds of $990.0 million which reflects a discount of $0.9 million and $9.1 million of underwriting expenses and other fees associated with the transaction. The Company used the net proceeds from the offering for general corporate purposes, including repayment of other borrowings. Contemporaneously with the issuance of the 2028 Term Notes and 2048 Term Notes, the Company paid $977.5 million to settle its remaining obligations of two unsecured notes which matured in November 2018. These notes are described in more detail below. In December 2013, the Company issued $400.0 million aggregate principal amount of 5.75% fixed-to-floating rate junior subordinated debentures maturing December 15, 2053 (“2053 Junior Subordinated Debentures”). The 2053 Junior Subordinated Debentures bore interest at a fixed rate of 5.75% per annum, payable semi-annually in arrears to, but excluding December 15, 2018. From and including December 15, 2018, the 2053 Junior Subordinated Debentures bear interest at an annual rate equal to three-month LIBOR plus 4.304%, payable quarterly in arrears. The 2053 Junior Subordinated Debentures are unsecured and rank subordinate and junior in right of payment to all of the Company’s existing and future senior debt. The 2053 Junior Subordinated Debentures rank equally in right of payment with all of the Company’s other unsecured junior subordinated debt. The Company received proceeds from the offering of $392.0 million, net of $8.0 million of underwriting discounts and commissions, before offering expenses. The Company used the net proceeds primarily to repay commercial paper borrowings. The Company may, so long as there is no event of default with respect to the debentures, defer interest payments on the debentures, from time to time, for one or more Optional Deferral Periods (as defined in the indenture governing the 2053 Junior Subordinated Debentures) of up to five consecutive years. Deferral of interest payments cannot extend beyond the maturity date of the debentures. The 2053 Junior Subordinated Debentures include an optional redemption provision whereby the Company may elect to redeem the debentures, in whole or in part, at a "make-whole" premium based on United States Treasury rates, plus accrued and unpaid interest if redeemed before December 15, 2018, or at 100% of their principal amount plus accrued and unpaid interest if redeemed after December 15, 2018. In addition, the Company could have redeemed the debentures in whole, but not in part, before December 15, 2018, if certain changes in tax laws, regulations or interpretations occurred at 100% of their principal amount plus accrued and unpaid interest. On February 25, 2019, the Company redeemed all of the outstanding 2053 Junior Subordinated Debentures for $405.7 million, which represented 100% of the principal amount plus accrued and unpaid interest to the redemption date. In November 2012, the Company issued $800.0 million of senior unsecured term notes, maturing on November 1, 2022 (“2022 Term Notes”) with fixed interest payable semi-annually, in arrears, at a rate of 2.90% per annum. The 2022 Term Notes are unsecured and rank equally with all of the Company's existing and future unsecured and unsubordinated debt. The Company received net proceeds of $793.9 million, which reflected a discount of $0.7 million and $5.4 million of underwriting expenses and other fees associated with the transaction. The Company used the net proceeds from the offering for general corporate purposes, including repayment of short-term borrowings. The 2022 Term Notes include a Change of Control provision that would apply should a Change of Control event (as defined in the Indenture governing the 2022 Term Notes) occur. The Change of Control provision states that the holders of the 2022 Term Notes may require the Company to repurchase, in cash, all of the outstanding 2022 Term Notes for a purchase price at 101.0% of the original principal amount, plus any accrued and unpaid interest outstanding up to the repurchase date. In December 2014, the Company repurchased $45.7 million of the 2022 Term Notes and paid $45.3 million in cash and recognized a net pre-tax gain of less than $0.1 million after expensing $0.3 million of related loan discount costs and deferred financing fees. At December 29, 2018, the carrying value of the 2022 Term Notes includes $0.3 million of unamortized discount. In July 2012, the Company issued $750.0 million of junior subordinated debentures, maturing on July 25, 2052 (“2052 Junior Subordinated Debentures”) with fixed interest payable quarterly, in arrears, at a rate of 5.75% per annum. The 2052 Junior Subordinated Debentures are unsecured and rank subordinate and junior in right of payment to all of the Company's existing and future senior debt. The Company received net proceeds of $729.4 million and paid $20.6 million of fees associated with the transaction. The Company used the net proceeds from the offering for general corporate purposes, including repayment of debt and refinancing of near-term debt maturities. The Company may, so long as there is no event of default with respect to the debentures, defer interest payments on the debentures, from time to time, for one or more Optional Deferral Periods (as defined in the indenture governing the 2052 Junior Subordinated Debentures) of up to five consecutive years per period. Deferral of interest payments cannot extend beyond the maturity date of the debentures. Additionally, the 2052 Junior Subordinated Debentures include an optional redemption whereby the Company may elect to redeem the debentures at 100% of their principal amount plus accrued and unpaid interest. Commercial Paper and Credit Facilities In January 2017, the Company amended its existing $2.0 billion commercial paper program to increase the maximum amount of notes authorized to be issued to $3.0 billion and to include Euro denominated borrowings in addition to U.S. Dollars. As of December 29, 2018, the Company had $373.0 million of borrowings outstanding against the Company's $3.0 billion commercial paper program, of which approximately $228.9 million in Euro denominated commercial paper was designated as Net Investment Hedge as described in more detailed in Note I, Financial Instruments. At December 30, 2017, the Company had no borrowings outstanding against the Company’s $3.0 billion commercial paper program. In September 2018, the Company amended and restated its existing five-year $1.75 billion committed credit facility with the concurrent execution of a new five-year $2.0 billion committed credit facility (the "5 Year Credit Agreement"). Borrowings under the Credit Agreement may be made in U.S. Dollars, Euros or Pounds Sterling. A sub-limit of $653.3 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 12, 2023 or upon termination. The 5 Year Credit Agreement is designated to be a liquidity back-stop for the Company's $3.0 billion U.S. Dollar and Euro commercial paper program. As of December 29, 2018 and December 30, 2017, the Company had not drawn on its five-year committed credit facility. In September 2018, the Company terminated its previous 364-day $1.25 billion committed 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 11, 2019 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 a liquidity back-stop for the Company's $3.0 billion U.S. Dollar and Euro commercial paper program. As of December 29, 2018, the Company had not drawn on its 364-Day committed credit facility. In addition, the Company has other short-term lines of credit that are primarily uncommitted, with numerous banks, aggregating $455.4 million, of which $357.8 million was available at December 29, 2018. Short-term arrangements are reviewed annually for renewal. At December 29, 2018, the aggregate amount of committed and uncommitted lines of credit, long-term and short-term, was $3.5 billion. At December 29, 2018, $376.1 million was recorded as short-term borrowings relating to commercial paper and amounts outstanding against uncommitted lines. In addition, $97.6 million of the short-term credit lines was utilized primarily pertaining to outstanding letters of credit for which there are no required or reported debt balances. The weighted-average interest rates on U.S. dollar denominated short-term borrowings for the years ended December 29, 2018 and December 30, 2017 were 2.3% and 1.2%, respectively. The weighted-average interest rate on Euro denominated short-term borrowings for the years ended December 29, 2018 and December 30, 2017 was negative 0.3%. Equity Units In December 2013, the Company issued 3,450,000 Equity Units (the “Equity Units”), each with a stated value of $100. The Equity Units were initially comprised of a 1/10, or 10%, undivided beneficial ownership in a $1,000 principal amount 2.25% junior subordinated note due 2018 (the “2018 Junior Subordinated Note”) and a forward common stock purchase contract (the “Equity Purchase Contract”). The Company received approximately $334.7 million in cash proceeds from the Equity Units, net of underwriting discounts and commissions, before offering expenses, and recorded $345.0 million in long-term debt. The proceeds from the issuance of the Equity Units were used primarily to repay commercial paper borrowings. The Company also used $9.7 million of the proceeds to enter into capped call transactions utilized to hedge potential economic dilution as described in more detail below. Equity Purchase Contracts: On November 17, 2016, the Company settled all Equity Purchase Contracts by issuing 3,504,165 common shares and received $345.0 million in cash proceeds generated from the remarketing described in detail below. The number of shares of common stock issuable upon settlement of each purchase contract (the “settlement rate”) was rounded to the nearest ten-thousandth of a share and was determined by calculating the applicable market value, equal to the average of the daily volume-weighted average price of common stock for each of the 20 consecutive trading days during the market value averaging period, October 21, 2016 through November 17, 2016. The conversion rate used in calculating the average of the daily volume-weighted average price of common stock during the market value averaging period was 1.0157 (equivalent to the purchase contract settlement rate and a conversion price of $98.45 per common share). Holders of the Equity Purchase Contracts were paid contract adjustment payments (“contract adjustment payments”) at a rate of 4.00% per annum, payable quarterly in arrears on February 17, May 17, August 17 and November 17 of each year, commencing February 17, 2014. The $40.2 million present value of the Contract Adjustment Payments reduced Shareowners’ Equity upon issuance of the Equity Units and a related liability for the present value of the cash payments of $40.2 million was recorded. As each quarterly contract adjustment payment was made, the related liability was relieved with the difference between the cash payment and the present value accreted to interest expense over the three-year term. On November 17, 2016, the Company made the final contract adjustment payment. 2018 Junior Subordinated Notes: Prior to November 17, 2016, the 2018 Junior Subordinated Notes bore interest at a rate of 2.25% per annum, payable quarterly in arrears. The Company successfully remarketed the 2018 Junior Subordinated Notes in November 2016 ("Subordinated Notes"). In connection with the remarketing, the interest rate on the notes was reset, effective on the settlement date to a rate of 1.622% per annum, payable semi-annually in arrears through November 2018. The remarketing resulted in proceeds of $345.0 million, which the Company did not directly receive, and were automatically applied to satisfy in full the related unit holders’ obligations to purchase common stock under their Equity Purchase Contracts. In November 2018, the $345.0 million aggregate principal amount of the Subordinated Notes matured and was paid by the Company to settle its remaining obligation. Interest expense of $4.9 million for 2018 and $5.6 million for 2017 was recorded related to the contractual interest coupon on the Subordinated Notes based on the annual rate of 1.622%. Interest expense of $6.8 million in 2016 was recorded related to the 2.25% contractual interest coupon on the 2018 Junior Subordinated Notes. Capped Call Transactions: In order to offset the potential economic dilution associated with the common shares issuable upon settlement of the Equity Purchase Contracts, the Company entered into capped call transactions with a major financial institution (the “counterparty”). The capped call transactions covered, subject to customary anti-dilution adjustments, the number of shares equal to the number of shares issuable upon settlement of the Equity Purchase Contracts. The capped call transactions had a term of approximately three years and initially had a lower strike price of $98.80, which corresponded to the minimum settlement rate of the Equity Purchase Contracts, and an upper strike price of $112.91, which was approximately 40% higher than the closing price of the Company's common stock on November 25, 2013, and were subject to customary anti-dilution adjustments. The Company paid $9.7 million of cash to fund the cost of the capped call transactions, which was recorded as a reduction of Shareowners’ Equity. In October and November 2016, the Company’s capped call options on its common stock expired and were net-share settled resulting in the Company receiving 418,234 shares of common stock. Convertible Preferred Units In November 2010, the Company issued 6,325,000 Convertible Preferred Units (the “Convertible Preferred Units”), each with a stated amount of $100. The Convertible Preferred Units were comprised of a 1/10, or 10%, undivided beneficial ownership in a $1,000 principal amount junior subordinated note (the “Notes”) and a Purchase Contract (the “Purchase Contract”) obligating holders to purchase one share of the Company’s 4.75% Series B Perpetual Cumulative Convertible Preferred Stock (the “Convertible Preferred Stock”). The Company received $613.5 million in cash proceeds from the Convertible Preferred Units offering, net of underwriting fees. In November 2015, the Notes were successfully remarketed with the proceeds automatically applied to satisfy in full the related unit holders’ obligations to purchase Convertible Preferred Stock under their Purchase Contracts. Accordingly, the Company issued 6,325,000 shares of Convertible Preferred Stock resulting in cash proceeds to the Company of $632.5 million. In December 2015, the Company converted, redeemed, and settled all Convertible Preferred Stock by paying $632.5 million in cash and issuing 2.9 million common shares for the excess value of the conversion feature above the face value. In November 2018, the $632.5 million principal amount of the Notes matured and was paid by the Company to settle its remaining obligation. Interest expense of $13.6 million in 2018 and $15.5 million in 2017 and 2016 was recorded related to the contractual interest coupon on the Notes based upon the 2.45% annual rate. |
DERIVATIVE FINANCIAL INSTRUMENTS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS In the first quarter of 2018, the Company elected to early adopt ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedge Activities, which amends the hedge accounting recognition and presentation requirements of ASC 815. ASU 2017-12 requires the presentation and disclosure requirements to be applied prospectively and as a result, certain disclosures for fiscal years 2017 and 2016 conform to the presentation and disclosure requirements prior to the adoption. 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, 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 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 Consolidated Balance Sheets at December 29, 2018 and December 30, 2017 follows:
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. In 2018, 2017 and 2016, cash flows related to derivatives, including those that are separately discussed below, resulted in net cash received of $2.4 million, $2.6 million and $94.7 million, respectively. CASH FLOW HEDGES — There were after-tax mark-to-market losses of $26.8 million and $112.6 million as of December 29, 2018 and December 30, 2017, respectively, reported for cash flow hedge effectiveness in Accumulated other comprehensive loss. An after-tax loss of $1.9 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 loss for active derivatives during the periods in which the underlying hedged transactions affected earnings for 2018, 2017 and 2016:
* Includes ineffective portion and amount excluded from effectiveness testing on derivatives. A summary of the pre-tax effect of cash flow hedge accounting on the Consolidated Statements of Operations for 2018 is as follows:
1 Inclusive of the gain/loss amortization on terminated derivative financial instruments. For 2017 and 2016, the hedged items’ impact to the Consolidated Statement of Operations were losses of $8.4 million and $21.7 million, respectively, in Cost of Sales which are offsetting the amounts shown above. There was no impact related to the interest rate contracts’ hedged items for any period presented. For 2018 and 2017, an after-tax loss of $15.4 million and $4.7 million, respectively, and for 2016 an after-tax gain of $3.3 million were reclassified from Accumulated other comprehensive loss into earnings (inclusive of the gain/loss amortization on terminated derivative financial instruments) during the periods in which the underlying hedged transactions affected earnings. 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-rate debt proportions. As of December 29, 2018, all interest rate swaps designated as cash flow hedges matured as discussed below. As of December 30, 2017, the Company had $400 million of forward starting swaps which were executed in 2014. In November 2018, forward starting interest rate swaps with an aggregate notional amount of $400 million fixing 10 years of interest payments ranging from 4.25%-4.85% matured. The objective of the hedges was to offset the expected variability on future payments associated with the interest rate on debt instruments. This resulted in a loss of $22.7 million, which was recorded in Accumulated other comprehensive 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 other financing activities in the Consolidated Statements of Cash Flows. In January and February 2019, the Company entered into forward starting interest rate swaps totaling $450 million to offset the expected variability on future interest payments associated with debt instruments expected to be issued in the future. 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 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 December 29, 2018, and December 30, 2017 the notional values of the forward currency contracts outstanding was $240.0 million and $559.9 million, respectively, maturing on various dates through 2019. 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. At December 29, 2018 and December 30, 2017, the notional value of option contracts outstanding was $370.0 million and $400.0 million, respectively, maturing on various dates through 2019. 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 previous years, the Company entered into interest rate swaps on the first five years of the Company's $400 million 5.75% notes due 2053 and interest rate swaps with notional values which equaled the Company's $400 million 3.40% notes due 2021 and the Company's $150 million 7.05% notes due 2028. These interest rate swaps effectively converted the Company's fixed rate debt to floating rate debt based on LIBOR, thereby hedging the fluctuation in fair value resulting from changes in interest rates. In 2016, the Company terminated all of the above interest rate swaps and there were no open contracts as of December 29, 2018 and December 30, 2017. The terminations resulted in cash receipts of $27.0 million. This gain was deferred and is being amortized to earnings over the remaining life of the notes. A summary of the pre-tax effect of fair value hedge accounting on the Consolidated Statements of Operations for 2018 is as follows:
Prior to termination of the Company's interest rate swaps discussed above, the changes in fair value of the swaps and the offsetting changes in fair value related to the underlying notes were recognized in earnings. A summary of the fair value adjustments relating to these swaps is as follows:
* Includes ineffective portion and amount excluded from effectiveness testing on derivatives. Amortization of the gain on terminated swaps of $3.2 million was reported as a reduction of interest expense in 2017. In addition to the fair value adjustments in the table above, net swap accruals and amortization of the gain/loss on terminated swaps of $6.9 million was reported as a reduction of interest expense in 2016. Interest expense on the underlying debt was $19.9 million in 2016 when the hedges were active. A summary of the amounts recorded in the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of December 29, 2018 is as follows:
1Represents hedged items no longer designated in qualifying fair value hedging relationships. NET INVESTMENT HEDGES Foreign Exchange Contracts: 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 loss were a gain of $63.3 million and $3.4 million at December 29, 2018 and December 30, 2017, respectively. As of December 29, 2018, the Company had foreign exchange contracts that mature on various dates through 2019 with notional values totaling $262.4 million outstanding hedging a portion of its British pound sterling, Swedish krona and Euro denominated net investments; a cross currency swap with a notional value totaling $250.0 million maturing 2023 hedging a portion of its Japanese yen denominated net investment; an option contract with a notional value totaling $35.1 million maturing in 2019 hedging a portion of its Mexican peso denominated net investment; and Euro denominated commercial paper with a value of $228.9 million maturing in 2019 hedging a portion of its Euro denominated net investments. As of December 30, 2017, the Company had foreign exchange contracts maturing on various dates through 2018 with notional values totaling $751.2 million outstanding hedging a portion of its British pound sterling, Mexican peso, Swedish krona, Euro and Canadian denominated net investment and a cross currency swap with a notional value totaling $250.0 million maturing 2023 hedging a portion of its Japanese yen denominated net investment. In January 2019, the Company entered into cross currency swaps with notional values totaling $1.25 billion maturing 2020 hedging a portion of its Euro, Swedish krona and Swiss franc denominated net investments. Maturing foreign exchange contracts resulted in net cash received of $25.7 million, cash paid of $23.3 million and cash received of $104.7 million during 2018, 2017 and 2016, respectively. Gains and losses on net investment hedges remain in Accumulated other comprehensive loss until disposal of the underlying assets. Upon adoption of ASU 2017-12, 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. Prior to the adoption of ASU 2017-12, no components were excluded from the assessment of effectiveness. Refer to Note A, Significant Accounting Policies, for further discussion. Gains and losses after a hedge has been de-designated are recorded directly to the Consolidated Statements of Operations in Other, net. The pre-tax gain or loss from fair value changes for 2018 was as follows:
The pre-tax gain or loss from fair value changes for 2017 and 2016 was as follows:
*Includes ineffective portion. As discussed in Note H, Long-Term Debt and Financing Arrangements, the Company amended its existing $2.0 billion commercial paper program in 2017 to increase the maximum amount of notes authorized to be issued to $3.0 billion and to include Euro denominated borrowings in addition to U.S. Dollars. Euro denominated borrowings against this commercial paper program during 2018 and 2017 were designated as a Net Investment Hedge against a portion of its Euro denominated net investment. As of December 29, 2018, the Company has $228.9 million in Euro denominated borrowings outstanding against this commercial paper program. As of December 30, 2017, the Company had no borrowings outstanding against this commercial paper program. UNDESIGNATED HEDGES Foreign Exchange Contracts: Currency swaps and foreign exchange forward contracts are used to reduce risks arising from the change in fair value of certain foreign currency denominated assets and liabilities (such as affiliate loans, payables and receivables). The objective of these practices is to minimize the impact of foreign currency fluctuations on operating results. The total notional amount of the forward contracts outstanding at December 29, 2018 was $1.0 billion maturing on various dates through 2019. The total notional amount of the forward contracts outstanding at December 30, 2017 was $1.0 billion maturing on various dates through 2018. The income statement impacts related to derivatives not designated as hedging instruments under ASC 815 for 2018, 2017 and 2016 are as follows:
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CAPITAL STOCK | CAPITAL STOCK 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, 2018, December 30, 2017, and December 31, 2016.
1 Prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note A, Significant Accounting Policies, for further discussion. The following weighted-average stock options were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive (in thousands):
As described in detail below under "Other Equity Arrangements," the Company issued 7,500,000 Equity Units in May 2017 with a total notional value of $750.0 million. Each unit initially consists of 750,000 shares of convertible preferred stock and forward stock purchase contracts. On and after May 15, 2020, the convertible 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 6.1627 shares of common stock per one share of convertible preferred stock, which is equivalent to an initial conversion price of approximately $162.27 per share of common stock. As of December 29, 2018, due to the customary anti-dilution provisions, the conversion rate was 6.1783, equivalent to a conversion price of approximately $161.86 per share of common stock. The convertible 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 convertible preferred stock were anti-dilutive during most of 2018. As described in detail below under "Other Equity Arrangements," the Company issued Equity Units in December 2013 comprised of $345.0 million of Notes and Equity Purchase Contracts, which obligated the holders to purchase on November 17, 2016, for $100, between 1.0122 and 1.2399 shares of the Company’s common stock. The shares related to the Equity Purchase Contracts were anti-dilutive during certain months in 2016. Upon the November 17, 2016 settlement date, the Company issued 3,504,165 shares of common stock and received cash proceeds of $345.0 million. COMMON STOCK ACTIVITY — Common stock activity for 2018, 2017 and 2016 was as follows:
In April 2018, the Company repurchased 1,399,732 shares of common stock for approximately $200.0 million. In July 2018, the Company repurchased 2,086,792 shares of common stock for approximately $300.0 million. In 2016, the Company repurchased 3,940,087 shares of common stock for approximately $374.1 million. Additionally, the Company net-share settled capped call options on its common stock and received 711,376 shares during 2016. In November 2016, the Company issued 3,504,165 shares of common stock to settle the purchase contracts of the 2013 Equity Units. See "Other Equity Arrangements" below for further details of the above transactions. In March 2015, the Company entered into a forward share purchase contract with a financial institution counterparty for 3,645,510 shares of common stock. The contract obligates the Company to pay $350.0 million, plus an additional amount related to the forward component of the contract. In June 2018, the Company amended the settlement date to April 2021, or earlier at the Company's option. The reduction of common shares outstanding was recorded at the inception of the forward share purchase contract in March 2015 and factored into the calculation of weighted-average shares outstanding at that time. In October 2014, the Company entered into a forward share purchase contract on its common stock. The contract obligated the Company to pay $150.0 million, plus an additional amount related to the forward component of the contract, to the financial institution counterparty not later than October 2016, or earlier at the Company’s option, for the 1,603,822 shares purchased. The reduction of common shares outstanding was recorded at the inception of the forward share purchase contract in October 2014 and factored into the calculation of weighted-average shares outstanding at that time. In October 2016, the Company physically settled the contract, receiving 1,603,822 shares for a settlement amount of $147.4 million. These shares are reflected as "Returned to treasury" in the table above. COMMON STOCK RESERVED — Common stock shares reserved for issuance under various employee and director stock plans at December 29, 2018 and December 30, 2017 are as follows:
On January 22, 2018, the Board of Directors adopted the 2018 Omnibus Award Plan (the "2018 Plan") and authorized the issuance of 16,750,000 shares of the Company's common stock in connection with the awards pursuant to the 2018 Plan. No further awards will be issued under the Company's 2013 Long-Term Incentive Plan. PREFERRED STOCK PURCHASE RIGHTS — Prior to March 10, 2016, each outstanding share of common stock had a 1 share purchase right. Each purchase right could be exercised to purchase one two-hundredth of a share of Series A Junior Participating Preferred Stock at an exercise price of $220.00, subject to adjustment. The rights, which did not have voting rights, expired on March 10, 2016. There were no outstanding rights or shares of Series A Junior Participating Preferred Stock as of December 29, 2018. STOCK-BASED COMPENSATION PLANS — The Company has stock-based compensation plans for salaried employees and non-employee members of the Board of Directors. The plans provide for discretionary grants of stock options, restricted stock units and other stock-based awards. The plans are generally administered by the Compensation and Talent Development Committee of the Board of Directors, consisting of non-employee directors. Stock Option Valuation Assumptions: Stock options are granted at the fair market value of the Company’s stock on the date of grant and have a 10-year term. Generally, stock option grants vest ratably over 4 years from the date of grant. The following describes how certain assumptions affecting the estimated fair value of stock options are determined: the dividend yield is computed as the annualized dividend rate at the date of grant divided by the strike price of the stock option; expected volatility is based on an average of the market implied volatility and historical volatility for the 5.25 year expected life; the risk-free interest rate is based on U.S. Treasury securities with maturities equal to the expected life of the option; and a seven percent forfeiture rate is assumed. The Company uses historical data in order to estimate forfeitures and holding period behavior for valuation purposes. The fair value of stock option grants is estimated on the date of grant using the Black-Scholes option pricing model. The following weighted-average assumptions were used to value grants made in 2018, 2017 and 2016.
Stock Options: The number of stock options and weighted-average exercise prices as of December 29, 2018 are as follows:
At December 29, 2018, the range of exercise prices on outstanding stock options was $30.03 to $168.78. Stock option expense was $23.9 million, $21.3 million and $22.8 million for the years ended December 29, 2018, December 30, 2017 and December 31, 2016, respectively. At December 29, 2018, the Company had $53.3 million of unrecognized pre-tax compensation expense for stock options. This expense will be recognized over the remaining vesting periods which are 1.8 years on a weighted-average basis. During 2018, the Company received $21.6 million in cash from the exercise of stock options. The related tax benefit from the exercise of these options was $3.3 million. During 2018, 2017 and 2016, the total intrinsic value of options exercised was $18.3 million, $72.7 million and $35.9 million, respectively. When options are exercised, the related shares are issued from treasury stock. An excess tax benefit is generated on the extent to which the actual gain, or spread, an optionee receives upon exercise of an option exceeds the fair value determined at the grant date; that excess spread over the fair value of the option times the applicable tax rate represents the excess tax benefit. During 2018 and 2017, the excess tax benefit arising from tax deductions in excess of recognized compensation cost totaled $2.3 million and $18.3 million, respectively, and was recorded in income tax expense. Prior to the adoption of ASU 2016-09, the 2016 excess tax benefit of $9.1 million was recorded in additional paid-in capital. Outstanding and exercisable stock option information at December 29, 2018 follows:
Compensation cost for new grants is recognized on a straight-line basis over the vesting period. The expense for retirement eligible employees (those aged 55 and over and with 10 or more years of service) is recognized by the date they become retirement eligible, as such employees may retain their options for the 10 year contractual term in the event they retire prior to the end of the vesting period stipulated in the grant. As of December 29, 2018, the aggregate intrinsic value of stock options outstanding and stock options exercisable was $154.5 million and $152.8 million, respectively. Employee Stock Purchase Plan: The Employee Stock Purchase Plan (“ESPP”) enables eligible employees in the United States, Canada and Israel to purchase shares of common stock at the lower of 85.0% of the fair market value of the shares on the grant date ($135.30 per share for fiscal year 2018 purchases) or 85.0% of the fair market value of the shares on the last business day of each month. A maximum of 6,000,000 shares are authorized for subscription. During 2018, 2017 and 2016, 139,715 shares, 190,154 shares and 168,233 shares, respectively, were issued under the plan at average prices of $121.00, $103.35, and $84.46 per share, respectively, and the intrinsic value of the ESPP purchases was $3.1 million, $8.7 million and $4.8 million, respectively. For 2018, the Company received $16.9 million in cash from ESPP purchases, and there was no related tax benefit. The fair value of ESPP shares was estimated using the Black-Scholes option pricing model. ESPP compensation cost is recognized ratably over the one-year term based on actual employee stock purchases under the plan. The fair value of the employees’ purchase rights under the ESPP was estimated using the following assumptions for 2018, 2017 and 2016, respectively: dividend yield of 1.6%, 1.8% and 2.1%; expected volatility of 16.0%, 21.0% and 20.0%; risk-free interest rates of 1.6%, 0.9%, and 0.5%; and expected lives of one year. The weighted-average fair value of those purchase rights granted in 2018, 2017 and 2016 was $43.69, $35.70 and $29.68, respectively. Total compensation expense recognized for ESPP amounted to $6.6 million for 2018, $6.7 million for 2017, and $4.7 million for 2016. Restricted Share Units and Awards: Compensation cost for restricted share units and awards, including restricted shares granted to French employees in lieu of RSUs, (collectively “RSUs”) granted to employees is recognized ratably over the vesting term, which varies but is generally 4 years. RSU grants totaled 413,838 shares, 304,976 shares and 445,155 shares in 2018, 2017 and 2016, respectively. The weighted-average grant date fair value of RSUs granted in 2018, 2017 and 2016 was $133.90, $160.04 and $118.20 per share, respectively. Total compensation expense recognized for RSUs amounted to $40.1 million, $31.7 million and $32.6 million in 2018, 2017 and 2016, respectively. The actual tax benefit received in the period the shares were delivered was $10.1 million. The excess tax benefit recognized was $1.8 million, $4.9 million, and $2.4 million in 2018, 2017 and 2016, respectively. As of December 29, 2018, unrecognized compensation expense for RSUs amounted to $93.0 million and will be recognized over a weighted-average period of 2 years. A summary of non-vested restricted stock unit and award activity as of December 29, 2018, and changes during the twelve month period then ended is as follows:
The total fair value of shares vested (market value on the date vested) during 2018, 2017 and 2016 was $46.8 million, $46.6 million and $37.0 million, respectively. Non-employee members of the Board of Directors received restricted share-based grants which must be cash settled and accordingly mark-to-market accounting is applied. The Company recognized $3.4 million of income for these awards in 2018 and expense of $7.0 million and $2.2 million for 2017 and 2016, respectively. Additionally, the Board of Directors were granted restricted share units for which compensation expense of $1.2 million, $1.0 million, and $1.1 million was recognized for 2018, 2017 and 2016, respectively. Long-Term Performance Awards: The Company has granted Long-Term Performance Awards (“LTIP”) under its 2018 Omnibus Award Plan and 2013 Long Term Incentive Plan to senior management employees for achieving Company performance measures. Awards are payable in shares of common stock, which may be restricted if the employee has not achieved certain stock ownership levels, and generally no award is made if the employee terminates employment prior to the payout date. LTIP grants were made in 2016, 2017 and 2018. Each grant has separate annual performance goals for each year within the respective three-year performance period. Earnings per share and cash flow return on investment represent 75% of the share payout of each grant. There is a third market-based element, representing 25% of the total grant, which measures the Company’s common stock return relative to peers over the performance period. The ultimate delivery of shares will occur in 2019, 2020 and 2021 for the 2016, 2017 and 2018 grants, respectively. Total payouts are based on actual performance in relation to these goals. Expense recognized for these performance awards amounted to $4.7 million in 2018, $18.0 million in 2017, and $20.0 million in 2016. With the exception of the market-based award, in the event performance goals are not met, compensation cost is not recognized and any previously recognized compensation cost is reversed. A summary of the activity pertaining to the maximum number of shares that may be issued is as follows:
OTHER EQUITY ARRANGEMENTS In March 2018, the Company purchased from a financial institution "at-the money" capped call options with an approximate term of three years, on 3.2 million shares of its common stock (subject to customary anti-dilution adjustments) for an aggregate premium of $57.3 million, or an average of $17.96 per share. The premium paid was recorded as reduction of Shareowners' equity. The purpose of the capped call options is to hedge the risk of stock price appreciation between the lower and upper strike prices of the capped call options for a future share repurchase. The capped call has an initial lower strike price of $156.86 and upper strike price of $203.92, which is approximately 30% higher than the closing price of the Company's common stock on March 13, 2018. As of December 29, 2018, due to the customary anti-dilution provisions, the capped call transactions had an adjusted lower strike price of $156.79 and an adjusted upper strike price of $203.83. The aggregate fair value of the options at December 29, 2018 was $21.5 million. The capped call transactions may be settled by net-share settlement (the default settlement method) or, at the Company's option and subject to certain conditions, cash settlement, physical settlement or modified physical settlement. The number of shares the Company will receive will be determined by the terms of the contracts using a volume-weighted-average price calculation for the market value of the Company's common stock, over an average period. The market value determined will then be measured against the applicable strike price of the capped call transactions. In November 2013, the Company purchased from certain financial institutions “out-of-the-money” capped call options on 12.2 million shares of its common stock (subject to customary anti-dilution adjustments) for an aggregate premium of $73.5 million, or an average of $6.03 per share. The purpose of the capped call options was to hedge the risk of stock price appreciation between the lower and upper strike prices of the capped call options for a future share repurchase. The premium paid was recorded as a reduction of Shareowners’ equity. The contracts for the options provided that they may, at the Company’s election, subject to certain conditions, be cash settled, physically settled, modified-physically settled, or net-share settled (the default settlement method). The capped call options had various expiration dates and initially had an average lower strike price of $86.07 and an average upper strike price of $106.56, subject to customary market adjustments. In February 2015, the Company net-share settled 9.1 million of the 12.2 million capped call options on its common stock and received 911,077 shares using an average reference price of $96.46 per common share. Additionally, the Company purchased directly from the counterparties participating in the net-share settlement, 3,381,162 shares for $326.1 million, equating to an average price of $96.46 per share. In February 2016, the Company net-share settled the remaining 3.1 million capped call options on its common stock and received 293,142 shares using an average reference price of $94.34 per common share. Additionally, the Company purchased 1,316,858 shares directly from the counterparty participating in the net-share settlement for $124.2 million. The Company also repurchased 2,446,287 shares of common stock in February 2016 for $230.9 million, equating to an average price of $94.34. Equity Units and Capped Call Transactions As described more fully in Note H, Long-Term Debt and Financing Arrangements, in December 2013, the Company issued Equity Units comprised of $345.0 million of Notes and Equity Purchase Contracts. The Equity Purchase Contracts obligated the holders to purchase on November 17, 2016, for $100, between 1.0122 and 1.2399 shares of the Company’s common stock, which were equivalent to an initial settlement price of $98.80 and $80.65, respectively, per share of common stock. In accordance with the Equity Purchase Contracts, on November 17, 2016, the Company issued 3,504,165 shares of common stock and received additional cash proceeds of $345.0 million. The conversion rate used in calculating the average of the daily volume-weighted average price of common stock during the market value averaging period, was 1.0157 (equivalent to the minimum settlement rate and a conversion price of $98.45 per common share) on November 17, 2016. Contemporaneously with the issuance of the Equity Units described above, the Company paid $9.7 million, or an average of $2.77 per option, to enter into capped call transactions on 3.5 million shares of common stock with a major financial institution. The purpose of the capped call transactions was to offset the potential economic dilution associated with the common shares issuable upon the settlement of the Equity Purchase Contracts. The $9.7 million premium paid was recorded as a reduction to equity. The capped call transactions covered, subject to customary anti-dilution adjustments, the number of shares equal to the number of shares issuable upon settlement of the Equity Purchase Contracts at the 1.0122 minimum settlement rate. In October and November 2016, the Company’s capped call options on its common stock expired and were net-share settled resulting in the Company receiving 418,234 shares using an average reference price of $117.84 per common share. Refer to Note H, Long-Term Debt and Financing Arrangements, for further discussion. $750 Million Equity Units and Capped Call Transactions In May 2017, the Company issued 7,500,000 Equity Units with a total notional value of $750.0 million (“$750 million Equity Units”). Each unit has a stated amount of $100 and initially consists of a three-year forward stock purchase contract (“2020 Purchase Contracts”) for the purchase of a variable number of shares of common stock, on May 15, 2020, for a price of $100, and a 10% beneficial ownership interest in one share of 0% Series C Cumulative Perpetual Convertible Preferred Stock, without par, with a liquidation preference of $1,000 per share (“Series C Preferred Stock”). The Company received approximately $726.0 million in cash proceeds from the $750 million Equity Units, net of underwriting costs and commissions, before offering expenses, and issued 750,000 shares of Series C Preferred Stock, recording $750.0 million in preferred stock. The proceeds were used for general corporate purposes, including repayment of short-term borrowings. The Company also used $25.1 million of the proceeds to enter into capped call transactions utilized to hedge potential economic dilution as described in more detail below. Convertible Preferred Stock In May 2017, the Company issued 750,000 shares of Series C Preferred Stock, without par, with a liquidation preference of $1,000 per share. The convertible preferred stock will initially not bear any dividends and the liquidation preference of the convertible preferred stock will not accrete. The convertible preferred stock has no maturity date, and will remain outstanding unless converted by holders or redeemed by the Company. Holders of shares of the convertible preferred stock will generally have no voting rights. The Series C Preferred Stock is pledged as collateral to support holders’ purchase obligations under the 2020 Purchase Contracts and can be remarketed. In connection with any successful remarketing, the Company may (but is not required to) modify certain terms of the convertible preferred stock, including the dividend rate, the conversion rate, and the earliest redemption date. After any successful remarketing in connection with which the dividend rate on the convertible preferred stock is increased, the Company will pay cumulative dividends on the convertible preferred stock, if declared by the board of directors, quarterly in arrears from the applicable remarketing settlement date. On and after May 15, 2020, the Series C Preferred Stock may be converted into common stock at the option of the holder. The initial conversion rate was 6.1627 shares of common stock per one share of Series C Preferred Stock, which is equivalent to an initial conversion price of approximately $162.27 per share of common stock. As of December 29, 2018, due to the customary anti-dilution provisions, the conversion rate was 6.1783, equivalent to a conversion price of approximately $161.86 per share of common stock. At the election of the Company, upon conversion, the Company may deliver cash, common stock, or a combination thereof. The Company may not redeem the Series C Preferred Stock prior to June 22, 2020. At the election of the Company, on or after June 22, 2020, the Company may redeem for cash, all or any portion of the outstanding shares of the Series C Preferred Stock at a redemption price equal to 100% of the liquidation preference, plus any accumulated and unpaid dividends. If the Company calls the Series C Preferred Stock for redemption, holders may convert their shares immediately preceding the redemption date. 2020 Purchase Contracts The 2020 Purchase Contracts obligate the holders to purchase, on May 15, 2020, for a price of $100 in cash, a maximum number of 5.4 million shares of the Company’s common stock (subject to customary anti-dilution adjustments). The 2020 Purchase Contract holders may elect to settle their obligation early, in cash. The Series C Preferred Stock is pledged as collateral to guarantee the holders’ obligations to purchase common stock under the terms of the 2020 Purchase Contracts. The initial settlement rate determining the number of shares that each holder must purchase will not exceed the maximum settlement rate, and is determined over a market value averaging period immediately preceding May 15, 2020. The initial maximum settlement rate of 0.7241 was calculated using an initial reference price of $138.10, equal to the last reported sale price of the Company's common stock on May 11, 2017. As of December 29, 2018, due to the customary anti-dilution provisions, the maximum settlement rate was 0.7259, equivalent to a reference price of $137.76. If the applicable market value of the Company's common stock is less than or equal to the reference price, the settlement rate will be the maximum settlement rate; and if the applicable market value of common stock is greater than the reference price, the settlement rate will be a number of shares of the Company's common stock equal to $100 divided by the applicable market value. Upon settlement of the 2020 Purchase Contracts, the Company will receive additional cash proceeds of $750 million. The Company will pay the holders of the 2020 Purchase Contracts quarterly payments (“Contract Adjustment Payments”) at a rate of 5.375% per annum, payable quarterly in arrears on February 15, May 15, August 15 and November 15, which commenced August 15, 2017. The $117.1 million present value of the Contract Adjustment Payments reduced Shareowners’ Equity at inception. As each quarterly Contract Adjustment Payment is made, the related liability is reduced and the difference between the cash payment and the present value accretes to interest expense, approximately $1.3 million per year over the three-year term. As of December 29, 2018, the present value of the Contract Adjustment Payments was $58.8 million. The holders can settle the purchase contracts early, for cash, subject to certain exceptions and conditions in the prospectus supplement. Upon early settlement of any purchase contracts, the Company will deliver the number of shares of its common stock equal to 85% of the number of shares of common stock that would have otherwise been deliverable. Capped Call Transactions In order to offset the potential economic dilution associated with the common shares issuable upon conversion of the Series C Preferred Stock, to the extent that the conversion value of the convertible preferred stock exceeds its liquidation preference, the Company entered into capped call transactions with three major financial institutions (the “counterparties”). The capped call transactions have a term of approximately three years and are intended to cover the number of shares issuable upon conversion of the Series C Preferred Stock. Subject to customary anti-dilution adjustments, the capped call has an initial lower strike price of $162.27, which corresponds to the minimum 6.1627 settlement rate of the Series C Preferred Stock, and an upper strike price of $179.53, which is approximately 30% higher than the closing price of the Company's common stock on May 11, 2017. As of December 29, 2018, due to the customary anti-dilution provisions, the capped call transactions had an adjusted lower strike price of $161.86 and an adjusted upper strike price of $179.08. The capped call transactions may be settled by net-share settlement (the default settlement method) or, at the Company’s option and subject to certain conditions, cash settlement, physical settlement or modified physical settlement. The number of shares the Company will receive will be determined by the terms of the contracts using a volume-weighted average price calculation for the market value of the Company's common stock, over an averaging period. The market value determined will then be measured against the applicable strike price of the capped call transactions. The Company expects the capped call transactions to offset the potential dilution upon conversion of the Series C Preferred Stock if the calculated market value is greater than the lower strike price but less than or equal to the upper strike price of the capped call transactions. Should the calculated market value exceed the upper strike price of the capped call transactions, the dilution mitigation will be limited based on such capped value as determined under the terms of the contracts. With respect to the impact on the Company, the capped call transactions and $750 million Equity Units, when taken together, result in the economic equivalent of having the conversion price on $750 million Equity Units at $179.08, the upper strike of the capped call as of December 29, 2018. The Company paid $25.1 million, or an average of $5.43 per option, to enter into capped call transactions on 4.6 million shares of common stock. The $25.1 million premium paid was a reduction of Shareowners’ Equity. The aggregate fair value of the options at December 29, 2018 was $8.8 million. |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive loss:
1 Certain prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note A, Significant Accounting Policies, for further discussion.
1 Pension settlement losses are more fully discussed in Note L, Employee Benefit Plans. 2 Prior year Amortization of actuarial losses and prior service costs / credits of $9.7 million and $6.5 million have been reclassed out of Cost of sales and Selling, general and administrative, respectively, and into Other, net as a result of the adoption of the new pension standard. Refer to Note A, Significant Accounting Policies, for further discussion. |
EMPLOYEE BENEFIT PLANS |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS EMPLOYEE STOCK OWNERSHIP PLAN (“ESOP”) — Most U.S. employees may make contributions that do not exceed 25% of their eligible compensation to a tax-deferred 401(k) savings plan, subject to restrictions under tax laws. Employees generally direct the investment of their own contributions into various investment funds. An employer match benefit is provided under the plan equal to one-half of each employee’s tax-deferred contribution up to the first 7% of their compensation. Participants direct the entire employer match benefit such that no participant is required to hold the Company’s common stock in their 401(k) account. The employer match benefit totaled $28.0 million, $24.8 million and $21.9 million in 2018, 2017 and 2016, respectively. In addition to the regular employer match, $0.7 million and $4.3 million was allocated to the employee's accounts for forfeitures and a surplus resulting from appreciation of the Company's share value in 2018 and 2016, respectively. There was no additional allocation in 2017. In addition, approximately 9,700 U.S. salaried and non-union hourly employees are eligible to receive a non-contributory benefit under the Core benefit plan. Core benefit allocations range from 2% to 6% of eligible employee compensation based on age. Allocations for benefits earned under the Core plan were $29.0 million in 2018, $25.4 million in 2017 and $17.6 million in 2016. Assets held in participant Core accounts are invested in target date retirement funds which have an age-based allocation of investments. Shares of the Company's common stock held by the ESOP were purchased with the proceeds of borrowings from the Company in 1991 ("1991 internal loan"). Shareowners' equity reflects a reduction equal to the cost basis of unearned (unallocated) shares purchased with the internal borrowings. In 2018, 2017 and 2016, the Company made additional contributions to the ESOP for $7.0 million, $4.8 million, and $7.9 million, respectively, which were used by the ESOP to make additional payments on the 1991 internal loan. These payments triggered the release of 207,049, 133,694 and 219,492 shares of unallocated stock in 2018, 2017 and 2016, respectively. Net ESOP activity recognized is comprised of the cost basis of shares released, the cost of the aforementioned Core and 401(k) match defined contribution benefits, less the fair value of shares released and dividends on unallocated ESOP shares. The Company’s net ESOP activity resulted in expense of $0.4 million in 2018, expense of $1.3 million in 2017 and income of $3.1 million in 2016. ESOP expense is affected by the market value of the Company’s common stock on the monthly dates when shares are released. The weighted-average market value of shares released was $139.45 per share in 2018, $138.60 per share in 2017 and $103.88 per share in 2016. Unallocated shares are released from the trust based on current period debt principal and interest payments as a percentage of total future debt principal and interest payments. Dividends on both allocated and unallocated shares may be used for debt service and to credit participant accounts for dividends earned on allocated shares. Dividends paid on the shares acquired with the 1991 internal loan were used solely to pay internal loan debt service in all periods. Dividends on ESOP shares, which are charged to shareowners’ equity as declared, were $7.7 million in 2018, $8.4 million in 2017 and $9.0 million in 2016, net of the tax benefit which is recorded in earnings in 2018 and 2017 and within equity for 2016. Dividends on ESOP shares were utilized entirely for debt service in all years. Interest costs incurred by the ESOP on the 1991 internal loan, which have no earnings impact, were $1.6 million, $2.2 million and $3.1 million for 2018, 2017 and 2016, respectively. Both allocated and unallocated ESOP shares are treated as outstanding for purposes of computing earnings per share. As of December 29, 2018, the cumulative number of ESOP shares allocated to participant accounts was 14,973,185, of which participants held 2,186,499 shares, and the number of unallocated shares was 568,172. At December 29, 2018, there were 110,670 released shares in the ESOP trust holding account pending allocation. The Company made cash contributions totaling $2.3 million in 2018, $1.8 million in 2017 and $4.2 million in 2016 excluding additional contributions of $7.0 million, $4.8 million and $7.9 million in 2018, 2017 and 2016, respectively, as discussed previously. PENSION AND OTHER BENEFIT PLANS — The Company sponsors pension plans covering most domestic hourly and certain executive employees, and approximately 15,500 foreign employees. Benefits are generally based on salary and years of service, except for U.S. collective bargaining employees whose benefits are based on a stated amount for each year of service. The Company contributes to a number of multi-employer plans for certain collective bargaining U.S. employees. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: a. Assets contributed to the multiemployer plan by one employer may be used to provide benefit to employees of other participating employers. b. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be inherited by the remaining participating employers. c. If the Company chooses to stop participating in some of its multiemployer plans, the Company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. In addition, the Company also contributes to a number of multiemployer plans outside of the U.S. The foreign plans are insured, therefore, the Company’s obligation is limited to the payment of insurance premiums. The Company has assessed and determined that none of the multiemployer plans to which it contributes are individually significant to the Company’s financial statements. The Company does not expect to incur a withdrawal liability or expect to significantly increase its contributions over the remainder of the contract period. In addition to the multiemployer plans, various other defined contribution plans are sponsored worldwide. The expense for such defined contribution plans, aside from the earlier discussed ESOP plans, is as follows:
The components of net periodic pension (benefit) expense are as follows:
The Company provides medical and dental benefits for certain retired employees in the United States and Canada. Approximately 15,000 participants are covered under these plans. Net periodic post-retirement benefit expense was comprised of the following elements:
In accordance with the adoption of ASU 2017-07, the components of net periodic pension (benefit) expense, other than the service cost component, are included in Other, net in the Consolidated Statements of Operations. For the year ended December 30, 2017, the Company recorded pre-tax charges of approximately $12.2 million, reflecting losses previously reported in accumulated other comprehensive loss, related to a non-U.S. pension plan for which the Company settled its obligation by purchasing an annuity and making lump sum payments to participants. Also, in accordance with policy, $2.9 million and $0.5 million in pre-tax settlement and curtailment losses were recorded for other U.S. and non-U.S. plans, respectively, in December 2017 due to standard lump sum benefit payments elected exceeding the sum of service cost and interest cost. Changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss in 2018 are as follows:
The amounts in Accumulated other comprehensive loss expected to be recognized as components of net periodic benefit costs during 2019 total $15.3 million, representing amortization of actuarial losses. The changes in the pension and other post-retirement benefit obligations, fair value of plan assets, as well as amounts recognized in the Consolidated Balance Sheets, are shown below.
The accumulated benefit obligation for all defined benefit pension plans was $2.513 billion at December 29, 2018 and $2.754 billion at December 30, 2017. Information regarding pension plans in which accumulated benefit obligations exceed plan assets follows:
Information regarding pension plans in which projected benefit obligations (inclusive of anticipated future compensation increases) exceed plan assets follows:
The major assumptions used in valuing pension and post-retirement plan obligations and net costs were as follows:
The expected rate of return on plan assets is determined considering the returns projected for the various asset classes and the relative weighting for each asset class. The Company will use a 5.51% weighted-average expected rate of return assumption to determine the 2019 net periodic benefit cost. PENSION PLAN ASSETS — Plan assets are invested in equity securities, government and corporate bonds and other fixed income securities, money market instruments and insurance contracts. The Company’s worldwide asset allocations at December 29, 2018 and December 30, 2017 by asset category and the level of the valuation inputs within the fair value hierarchy established by ASC 820 are as follows:
U.S. and foreign equity securities primarily consist of companies with large market capitalizations and to a lesser extent mid and small capitalization securities. Government securities primarily consist of U.S. Treasury securities and foreign government securities with de minimus default risk. Corporate fixed income securities include publicly traded U.S. and foreign investment grade and to a small extent high yield securities. Assets held in insurance contracts are invested in the general asset pools of the various insurers, mainly debt and equity securities with guaranteed returns. Other investments include diversified private equity holdings. The level 2 investments are primarily comprised of institutional mutual funds that are not publicly traded; the investments held in these mutual funds are generally level 1 publicly traded securities. The Company's investment strategy for pension assets focuses on a liability-matching approach with gradual de-risking taking place over a period of many years. The Company utilizes the current funded status to transition the portfolio toward investments that better match the duration and cash flow attributes of the underlying liabilities. Assets approximating 50% of the Company's current pension liabilities have been invested in fixed income securities, using a liability / asset matching duration strategy, with the primary goal of mitigating exposure to interest rate movements and preserving the overall funded status of the underlying plans. Plan assets are broadly diversified and are invested to ensure adequate liquidity for immediate and medium term benefit payments. The Company’s target asset allocations include approximately 20%-40% in equity securities, approximately 50%-70% in fixed income securities and approximately 10% in other securities. In 2018, the funded status percentage (total plan assets divided by total projected benefit obligation) of all global pension plans was 78%, which is consistent with 79% in 2017 and 77% in 2016. CONTRIBUTIONS — The Company’s funding policy for its defined benefit plans is to contribute amounts determined annually on an actuarial basis to provide for current and future benefits in accordance with federal law and other regulations. The Company expects to contribute approximately $44 million to its pension and other post-retirement benefit plans in 2019. EXPECTED FUTURE BENEFIT PAYMENTS — Benefit payments, inclusive of amounts attributable to estimated future employee service, are expected to be paid as follows over the next 10 years:
These benefit payments will be funded through a combination of existing plan assets, the returns on those assets, and amounts to be contributed in the future by the Company. HEALTH CARE COST TRENDS — The weighted average annual assumed rate of increase in the per-capita cost of covered benefits (i.e., health care cost trend rate) is assumed to be 6.7% for 2019, reducing gradually to 4.6% by 2028 and remaining at that level thereafter. A one percentage point change in the assumed health care cost trend rate would affect the post-retirement benefit obligation as of December 29, 2018 by approximately $1.4 million to $1.6 million, and would have an immaterial effect on the net periodic post-retirement benefit cost. |
FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS FASB ASC 820, Fair Value Measurement, defines, establishes a consistent framework for measuring, and expands disclosure requirements about fair value. ASC 820 requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs create the following fair value hierarchy: Level 1 — Quoted prices for identical instruments in active markets. Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs and significant value drivers are observable. Level 3 — Instruments that are valued using unobservable inputs. The Company is exposed to market risk from changes in foreign currency exchange rates, interest rates, stock prices and commodity prices. The Company holds various financial instruments to manage these risks. These financial instruments are carried at fair value and are included within the scope of ASC 820. The Company determines the fair value of financial instruments through the use of matrix or model pricing, which utilizes observable inputs such as market interest and currency rates. When determining fair value for which Level 1 evidence does not exist, the Company considers various factors including the following: exchange or market price quotations of similar instruments, time value and volatility factors, the Company’s own credit rating and the credit rating of the counter-party. The following table presents the Company’s financial assets and liabilities that are measured at fair value on a recurring basis for each of the hierarchy levels:
The following table provides information about the Company's financial assets and liabilities not carried at fair value:
1Certain prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note A. Significant Accounting Policies, for further discussion As discussed in Note E, Acquisitions, the Company recorded a contingent consideration liability relating to the Craftsman® brand acquisition representing the Company's obligation to make future payments to Sears Holdings of between 2.5% and 3.5% on sales of Craftsman products in new Stanley Black & Decker channels through March 2032, which was valued at $134.5 million as of the acquisition date. The first payment is due the first quarter of 2020 relating to royalties owed for the previous eleven quarters, and future payments will be due quarterly through the first quarter of 2032. The estimated fair value of the contingent consideration liability is determined using a discounted cash flow analysis taking into consideration future sales projections, forecasted payments to Sears Holdings based on contractual royalty rates, and the related tax impacts. The estimated fair value of the contingent consideration liability was $169.2 million and $114.0 million as of December 29, 2018 and December 30, 2017, respectively. The change in fair value was primarily driven by lower expected tax benefits of future payments to Sears Holdings as a result of recent changes in U.S. tax legislation. Approximately $35 million of the change in fair value was recorded in SG&A in the Consolidated Statements of Operations, while approximately $20 million was recorded in goodwill as an acquisition-date fair value adjustment. A 100 basis point reduction in the discount rate would result in an increase to the liability of approximately $8 million as of December 29, 2018. The money market fund and other investments related to the West Coast Loading Corporation ("WCLC") trust are considered Level 1 instruments within the fair value hierarchy. The long-term debt instruments are considered Level 2 instruments and are measured using a discounted cash flow analysis based on the Company’s marginal borrowing rates. The differences between the carrying values and fair values of long-term debt are attributable to the stated interest rates differing from the Company's marginal borrowing rates. The fair values of the Company's variable rate short-term borrowings approximate their carrying values at December 29, 2018 and December 30, 2017. The fair values of foreign currency and interest rate swap agreements, comprising the derivative assets and liabilities in the table above, are based on current settlement values. The Company had no significant non-recurring fair value measurements, nor any other financial assets or liabilities measured using Level 3 inputs, during 2018 or 2017. As discussed in Note B, Accounts and Notes Receivable, the Company had a deferred purchase price receivable related to sales of trade receivables. The deferred purchase price receivable was settled in full in January 2018, and historically was repaid in cash as receivables were collected, generally within 30 days. The carrying value of the receivable as of December 30, 2017 approximated fair value. Refer to Note I, Financial Instruments, for more details regarding derivative financial instruments, Note S, Contingencies, for more details regarding the other investments related to the WCLC trust, and Note H, Long-Term Debt and Financing Arrangements, for more information regarding the carrying values of the long-term debt. |
OTHER COSTS AND EXPENSES |
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Other Costs and Expenses [Abstract] | |
OTHER COSTS AND EXPENSES | OTHER COSTS AND EXPENSES Other, net is primarily comprised of intangible asset amortization expense (see Note F, Goodwill and Intangible Assets), currency-related gains or losses, environmental remediation expense, acquisition-related transaction and consulting costs, and certain pension gains or losses. Acquisition-related transaction and consulting costs of $30.4 million and $58.2 million were included in Other, net for the years ended December 29, 2018 and December 30, 2017, respectively. In addition, Other, net included a $77.7 million environmental remediation charge recorded in 2018 related to a settlement with the Environmental Protection Agency ("EPA"). Refer to Note S, Contingencies, for further discussion of the EPA settlement. Research and development costs, which are classified in SG&A, were $275.8 million, $252.3 million and $204.4 million for fiscal years 2018, 2017 and 2016, respectively. The increase in 2018 reflects the Company's continued focus on becoming known as one of the world's greatest innovators and its commitment to continue generating new core and breakthrough innovations. |
RESTRUCTURING AND ASSET IMPAIRMENTS |
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RESTRUCTURING AND ASSET IMPAIRMENTS | RESTRUCTURING CHARGES AND ASSET IMPAIRMENTS A summary of the restructuring reserve activity from December 30, 2017 to December 29, 2018 is as follows:
During 2018, the Company recognized net restructuring charges and asset impairments of $160.3 million, which primarily relates to the cost reduction program in the fourth quarter of 2018. This amount reflects $151.0 million of net severance charges associated with the reduction of 4,184 employees and $9.3 million of facility closure and other restructuring costs. The majority of the $108.8 million of reserves remaining as of December 29, 2018 is expected to be utilized within the next twelve months. Segments: The $160 million of net restructuring charges and asset impairments for the year ended December 29, 2018 includes: $80 million of net charges pertaining to the Tools & Storage segment; $30 million of net charges pertaining to the Industrial segment; $36 million of net charges pertaining to the Security segment; and $14 million of net charges pertaining to Corporate. |
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS | BUSINESS SEGMENTS AND GEOGRAPHIC AREAS The Company's operations are classified 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, other, net (inclusive of intangible asset amortization expense), loss (gain) on sales of businesses, pension settlement, restructuring charges and asset impairments, interest income, interest expense, and income taxes. Corporate overhead is comprised of world headquarters facility expense, cost for the executive management team and expenses pertaining to certain centralized functions that benefit the entire Company but are not directly attributable to the businesses, such as legal and corporate finance functions. Refer to Note F, Goodwill and Intangible Assets, and Note O, Restructuring Charges and Asset Impairments, for the amount of intangible asset amortization expense and net restructuring charges and asset impairments, respectively, attributable to each segment. Transactions between segments are not material. Segment assets primarily include cash, accounts receivable, inventory, other current assets, property, plant and equipment and intangible 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
1Certain prior year amounts have been recast as a result of the adoption of the new revenue and pension standards. Refer to Note A, Significant Accounting Policies, for further discussion. 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 Lowe's were approximately 17%, 16% and 15% of the Tools & Storage segment net sales in 2018, 2017 and 2016, respectively. Sales to The Home Depot were approximately 14%, 13%, and 14% of the Tools & Storage segment net sales in 2018, 2017 and 2016, respectively. As described in Note A, Significant Accounting Policies, the Company recognizes revenue at a point in time from the sale of tangible products or over time depending on when the performance obligation is satisfied. For the years ended December 29, 2018 and December 30, 2017, the majority of the Company’s revenue was recognized at the time of sale. The following table provides the percent of total segment revenue recognized over time for the Industrial and Security segments for the years ended December 29, 2018, December 30, 2017 and December 31, 2016:
The following table is a further disaggregation of the Industrial segment revenue for the years ended December 29, 2018, December 30, 2017 and December 31, 2016:
GEOGRAPHIC AREAS
1Certain prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note A, Significant Accounting Policies, for further discussion. |
INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (“the Act”). Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, changes to U.S. international taxation, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. Pursuant to Staff Accounting Bulletin No. 118 (“SAB 118”) issued by the SEC in December 2017, issuers were permitted up to one year from the enactment of the Act to complete the accounting for the income tax effects of the Act (“the measurement period”). The Company completed its accounting for the tax effects of the Act within the measurement period and has included those effects as a component of Income taxes in the Consolidated Statements of Operations. Deferred tax assets and liabilities: U.S. deferred tax assets and liabilities were remeasured based on the rates at which they are expected to reverse in the future, resulting in an income tax benefit of approximately $230.6 million. The Company recorded an income tax provision of $21.9 million in 2018 as an adjustment to its provisional income tax benefit recorded in 2017 of $252.5 million. Transition Tax: The one-time transition tax, which totals $450.1 million, is based on the Company’s post-1986 earnings and profits that were previously deferred from U.S. income taxes. In 2018, the Company recorded a $10.6 million adjustment to its provisional income tax payable of approximately $460.7 million recorded in December 2017. The Company has elected to pay its transition tax over the eight-year period provided in the Act. As of December 29, 2018, the remaining balance of the transition tax obligation is $365.7 million, which will be paid over the next seven years. Indefinite reinvestment: Following enactment of the Act and the associated one-time transition tax, in general, repatriation of foreign earnings to the United States can be completed with no incremental U.S. tax. However, repatriation of foreign earnings could subject the Company to U.S. state and non-U.S. jurisdictional taxes (including withholding taxes) on distributions. While repatriation of some foreign earnings held outside the United States may be restricted by local laws, most of the Company’s foreign earnings as of December 2017 could be repatriated to the United States. As a result of the Act, the Company analyzed all unrepatriated foreign earnings as of December 2017, and concluded that it no longer asserts indefinite reinvestment on approximately $4.8 billion. The deferred tax liability associated with these unrepatriated foreign earnings is approximately $217.7 million. The Company recorded a $188.3 million income tax provision in 2018, mainly comprised of U.S. state and non-U.S. jurisdictional withholding taxes. The Company otherwise continues to consider the remaining undistributed earnings of its foreign subsidiaries to be permanently reinvested based on its current plans for use outside of the U.S. and accordingly no taxes have been provided on such earnings. Significant components of the Company’s deferred tax assets and liabilities at the end of each fiscal year were as follows:
1Certain prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note A, Significant Accounting Policies, for further discussion. A valuation allowance is recorded on certain deferred tax assets if it has been determined it is more likely than not that all or a portion of these assets will not be realized. The Company recorded a valuation allowance of $626.7 million and $516.7 million on deferred tax assets existing as of December 29, 2018 and December 30, 2017, respectively. The valuation allowance in 2018 and 2017 was primarily attributable to foreign and state net operating loss carryforwards and foreign capital loss carryforwards. As of December 29, 2018, the Company has approximately $5.5 billion of unremitted foreign earnings and profits. Of the total amount, the Company has provided for deferred taxes of $202.5 million on approximately $3.6 billion, which is not indefinitely reinvested primarily due to the changes brought about by the Act. The Company otherwise continues to consider the remaining undistributed earnings of its foreign subsidiaries to be permanently reinvested based on its current plans for use outside of the U.S. and accordingly no taxes have been provided on such earnings. The cash that the Company’s non-U.S. subsidiaries hold for indefinite reinvestment is generally used to finance foreign operations and investments, including acquisitions. The income taxes applicable to such earnings are not readily determinable or practicable to calculate. Net operating loss carryforwards of $2.6 billion as of December 29, 2018 are available to reduce future tax obligations of certain U.S. and foreign companies. The net operating loss carryforwards have various expiration dates beginning in 2019 with certain jurisdictions having indefinite carryforward periods. The foreign capital loss carryforwards of $21.3 million as of December 29, 2018 have indefinite carryforward periods. The components of earnings before income taxes consisted of the following:
1Certain prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note A, Significant Accounting Policies, for further discussion. Income tax expense (benefit) consisted of the following:
1Certain prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note A, Significant Accounting Policies, for further discussion. Net income taxes paid during 2018, 2017 and 2016 were $339.4 million, $273.6 million and $233.3 million, respectively. The 2018, 2017 and 2016 amounts include refunds of $43.7 million, $28.5 million and $30.5 million, respectively, primarily related to prior year overpayments and settlement of tax audits. The reconciliation of the U.S. federal statutory income tax provision to Income taxes in the Consolidated Statements of Operations is as follows:
1Certain prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note A, Significant Accounting Policies, for further discussion. The Company conducts business globally and, as a result, files income tax returns in the U.S. federal jurisdiction and various state, and foreign jurisdictions. In the normal course, the Company is subject to examinations by taxing authorities throughout the world. The Internal Revenue Service is currently examining its consolidated U.S. income tax returns for the 2010-2013 tax years. With few exceptions, as of December 29, 2018, the Company is no longer subject to U.S. federal, state, local, or foreign examinations by tax authorities for years before 2010. The Company’s liabilities for unrecognized tax benefits relate to U.S. and various foreign jurisdictions. The following table summarizes the activity related to the unrecognized tax benefits:
The gross unrecognized tax benefits at December 29, 2018 and December 30, 2017 include $397.0 million and $368.7 million, respectively, of tax benefits that, if recognized, would impact the effective tax rate. The liability for potential penalties and interest related to unrecognized tax benefits was decreased by $15.8 million in 2018, increased by $3.8 million in 2017 and increased by $4.6 million in 2016. The liability for potential penalties and interest totaled $52.1 million as of December 29, 2018, $67.9 million as of December 30, 2017, and $64.1 million as of December 31, 2016. The Company classifies all tax-related interest and penalties as income tax expense. The Company considers many factors when evaluating and estimating its tax positions and the impact on income tax expense, which may require periodic adjustments, and which may not accurately anticipate actual outcomes. It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company's unrecognized tax positions will significantly increase or decrease within the next 12 months. These changes may be the result of settlement of ongoing audits or final decisions in transfer pricing matters. The Company cannot reasonably estimate the range of the potential change. |
COMMITMENTS AND GUARANTEES |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND GUARANTEES | COMMITMENTS AND GUARANTEES COMMITMENTS — The Company has non-cancelable operating lease agreements, principally related to facilities, vehicles, machinery and equipment. Minimum payments have not been reduced by minimum sublease rentals of $2.2 million due in the future under non-cancelable subleases. Rental expense, exclusive of sublease income, for operating leases was $177.6 million in 2018, $150.4 million in 2017, and $124.2 million in 2016. The following is a summary of the Company’s future commitments:
The Company has numerous assets, predominantly real estate, vehicles and equipment, under various lease arrangements. The Company routinely exercises various lease renewal options and from time to time purchases leased assets for fair value at the end of lease terms. The Company is a party to synthetic leases for one of its major distribution centers and two of its office buildings. The programs qualify as operating leases for accounting purposes, where only the monthly lease cost is recorded in earnings and the liability and value of the underlying assets are off-balance sheet. GUARANTEES — The Company's financial guarantees at December 29, 2018 are as follows:
The Company has guaranteed a portion of the residual value arising from its previously mentioned synthetic leases. The lease guarantees aggregate $99.6 million while the fair value of the underlying assets is estimated at $117.2 million. The related assets would be available to satisfy the guarantee obligations and therefore it is unlikely the Company will incur any future loss associated with these lease guarantees. The Company has issued $68.0 million in standby letters of credit that guarantee future payments which may be required under certain insurance programs. The Company provides various limited and full recourse guarantees to financial institutions that provide financing to U.S. and Canadian Mac Tool distributors and franchisees for their initial purchase of the inventory and truck necessary to function as a distributor and franchisee. In addition, the Company provides limited and full recourse guarantees to financial institutions that extend credit to certain end retail customers of its U.S. Mac Tool distributors and franchisees. The gross amount guaranteed in these arrangements is $67.6 million and the $7.6 million carrying value of the guarantees issued is recorded in debt and other liabilities as appropriate in the Consolidated Balance Sheets. The Company provides warranties which vary across its businesses. The types of product warranties offered generally range from one year to limited lifetime. There are also certain products with no warranty. Further, the Company sometimes incurs discretionary costs to service its products in connection with product performance issues. Historical warranty and service claim experience forms the basis for warranty obligations recognized. Adjustments are recorded to the warranty liability as new information becomes available. Following is a summary of the warranty liability activity for the years ended December 29, 2018, December 30, 2017, and December 31, 2016:
12018 beginning of period balance and 2017 end of period balance have been recast as a result of the adoption of new accounting standards. Refer to Note A, Significant Accounting Policies, for further discussion. |
CONTINGENCIES |
12 Months Ended |
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Dec. 29, 2018 | |
Environmental Remediation Obligations [Abstract] | |
CONTINGENCIES | CONTINGENCIES The Company is involved in various legal proceedings relating to environmental issues, employment, product liability, workers’ compensation claims and other matters. The Company periodically reviews the status of these proceedings with both inside and outside counsel, as well as an actuary for risk insurance. Management believes that the ultimate disposition of these matters will not have a material adverse effect on operations or financial condition taken as a whole. On January 25, 2019, IPS Worldwide, LLC ("IPS"), a third-party provider of freight payment processing services for the Company, filed for Chapter 11 bankruptcy protection and listed the Company as an unsecured creditor. As of December 29, 2018, there were outstanding obligations of approximately $50.8 million owed to certain of the Company's freight carriers. Such amounts had previously been remitted to IPS through a third-party financing program for ultimate payment to these freight carriers. However, due to nonperformance of IPS with respect to processing these payments and the Company's obligation to its freight carriers, an incremental $50.8 million charge has been recorded in the fourth quarter of 2018. This charge does not include any amounts that the Company will attempt to recover from insurance and/or through the bankruptcy proceedings, which could ultimately reduce the loss exposure recorded. In the normal course of business, the Company is a party to administrative proceedings and litigation, before federal and state regulatory agencies, relating to environmental remediation with respect to claims involving the discharge of hazardous substances into the environment, generally at current and former manufacturing facilities. In addition, some of these claims assert that the Company is responsible for damages and liability, for remedial investigation and clean-up costs, with respect to sites that have never been owned or operated by the Company but the Company has been identified as a potentially responsible party ("PRP"). In connection with the 2010 merger with Black & Decker, the Company assumed certain commitments and contingent liabilities. Black & Decker is a party to litigation and administrative proceedings with respect to claims involving the discharge of hazardous substances into the environment at current and former manufacturing facilities and has also been named as a PRP in certain administrative proceedings. The Company, along with many other companies, has been named as a PRP in a number of administrative proceedings for the remediation of various waste sites, including 28 active Superfund sites. Current laws potentially impose joint and several liabilities upon each PRP. In assessing its potential liability at these sites, the Company has considered the following: whether responsibility is being disputed, the terms of existing agreements, experience at similar sites, and the Company’s volumetric contribution at these sites. The Company’s policy is to accrue environmental investigatory and remediation costs for identified sites when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. In the event that no amount in the range of probable loss is considered most likely, the minimum loss in the range is accrued. The amount of liability recorded is based on an evaluation of currently available facts with respect to each individual site and includes such factors as existing technology, presently enacted laws and regulations, and prior experience in remediation of contaminated sites. The liabilities recorded do not take into account any claims for recoveries from insurance or third parties. As assessments and remediation progress at individual sites, the amounts recorded are reviewed periodically and adjusted to reflect additional technical and legal information that becomes available. As of December 29, 2018 and December 30, 2017, the Company had reserves of $246.6 million and $176.1 million, respectively, for remediation activities associated with Company-owned properties, as well as for Superfund sites, for losses that are probable and estimable. Of the 2018 amount, $58.1 million is classified as current and $188.5 million as long-term which is expected to be paid over the estimated remediation period. The range of environmental remediation costs that is reasonably possible is $214.0 million to $344.3 million which is subject to change in the near term. The Company may be liable for environmental remediation of sites it no longer owns. Liabilities have been recorded on those sites in accordance with policy. As of December 29, 2018, the Company has recorded $12.4 million in other assets related to funding received by the Environmental Protection Agency (“EPA”) and placed in a trust in accordance with the final settlement with the EPA, embodied in a Consent Decree approved by the United States District Court for the Central District of California on July 3, 2013. Per the Consent Decree, Emhart Industries, Inc. (a dissolved and liquidated former indirectly wholly-owned subsidiary of The Black & Decker Corporation) (“Emhart”) has agreed to be responsible for an interim remedy at a site located in Rialto, California and formerly operated by West Coast Loading Corporation (“WCLC”), a defunct company for which Emhart was alleged to be liable as a successor. The remedy will be funded by (i) the amounts received from the EPA as gathered from multiple parties, and, to the extent necessary, (ii) Emhart's affiliate. The interim remedy requires the construction of a water treatment facility and the filtering of ground water at or around the site for a period of approximately 30 years or more. As of December 29, 2018, the Company's net cash obligation associated with remediation activities including WCLC is $234.2 million. The EPA also asserted claims in federal court in Rhode Island against Black & Decker and Emhart related to environmental contamination found at the Centredale Manor Restoration Project Superfund Site ("Centredale"), located in North Providence, Rhode Island. The EPA discovered a variety of contaminants at the site, including but not limited to, dioxins, polychlorinated biphenyls, and pesticides. The EPA alleged that Black & Decker and Emhart are liable for site clean-up costs under the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA") as successors to the liability of Metro-Atlantic, Inc., a former operator at the site, and demanded reimbursement of the EPA’s costs related to this site. Black & Decker and Emhart contested the EPA's allegation that they are responsible for the contamination, and asserted contribution claims, counterclaims and cross-claims against a number of other PRPs, including the federal government as well as insurance carriers. The EPA released its Record of Decision ("ROD") in September 2012, which identified and described the EPA's selected remedial alternative for the site. Black & Decker and Emhart contested the EPA's selection of the remedial alternative set forth in the ROD on the grounds that the EPA's actions were arbitrary and capricious and otherwise not in accordance with law, and proposed other equally-protective, more cost-effective alternatives. On June 10, 2014, the EPA issued an Administrative Order under Sec. 106 of CERCLA, instructing Black & Decker and Emhart to perform the remediation of Centredale pursuant to the ROD. Black & Decker and Emhart disputed the factual, legal and scientific bases cited by the EPA for such an administrative order and provided the EPA with numerous good-faith bases for their declination to comply with the administrative order. Black & Decker and Emhart then vigorously litigated the issue of their liability for environmental conditions at the Centredale site, including completing trial on Phase 1 of the proceedings in late July 2015 and completing trial on Phase 2 of the proceedings in April 2017. Following the Phase I trial, the Court found that dioxin contamination at the Centredale site was not "divisible" and that Black & Decker and Emhart were jointly and severally liable for dioxin contamination at the site. Following the Phase 2 trial, the Court found that certain components of the EPA's selected remedy were arbitrary and capricious, and remanded the matter to the EPA while retaining jurisdiction over the ongoing remedy selection and implementation process. The Court also held in Phase 2 that Black & Decker and Emhart had sufficient cause for their declination to comply with the EPA's June 10, 2014 administrative order and that no associated civil penalties or fines were warranted. The United States filed a Motion for Reconsideration concerning the Court's Phase 2 rulings and appealed the ruling to the United States Court of Appeals for the First Circuit. Black & Decker and Emhart's Motion to Dismiss the Appeal was denied without prejudice for consideration with the merits. On July 9, 2018, a Consent Decree was lodged with the United States District Court documenting the terms of a settlement between the Company and the United States for reimbursement of EPA's past costs and remediation of environmental contamination found at the Centredale site. The terms of the Consent Decree are subject to public comment and Court approval. Once approved and entered, the settlement will resolve outstanding issues relating to Phase 1 and 2 of the litigation with the United States. Phase 3 of the litigation, which is in its relatively early stages, will address the potential allocation of liability to other PRPs who may have contributed to contamination of the Centredale site with dioxins, polychlorinated biphenyls and other contaminants of concern. Based on the Company's estimated remediation and response cost obligations arising out of the settlement reached with the United States (including the EPA’s past costs as well as costs of additional investigation, remediation, and related costs such as EPA’s oversight costs), the Company has increased its reserve for this site. Accordingly, in the second quarter of 2018, a $77.7 million increase was recorded in Other, net in the Consolidated Statements of Operations. As of December 29, 2018, the Company has reserved $145.2 million for this site. The Company and approximately 47 other companies comprise the Lower Passaic Cooperating Parties Group (the “CPG”). The CPG members and other companies are parties to a May 2007 Administrative Settlement Agreement and Order on Consent (“AOC”) with the EPA to perform a remedial investigation/feasibility study (“RI/FS”) of the lower seventeen miles of the Lower Passaic River in New Jersey (the “River”). The Company’s potential liability stems from former operations in Newark, New Jersey. As an interim step related to the 2007 AOC, on June 18, 2012, the CPG members voluntarily entered into an AOC with the EPA for remediation actions focused solely at mile 10.9 of the River. The Company’s estimated costs related to the RI/FS and focused remediation action at mile 10.9, based on an interim allocation, are included in its environmental reserves. On April 11, 2014, the EPA issued a Focused Feasibility Study (“FFS”) and proposed plan which addressed various early action remediation alternatives for the lower 8.3 miles of the River. The EPA received public comment on the FFS and proposed plan (including comments from the CPG and other entities asserting that the FFS and proposed plan do not comply with CERCLA) which public comment period ended on August 20, 2014. The CPG submitted to the EPA a draft RI report in February 2015 and draft FS report in April 2015 for the entire lower seventeen miles of the River. On March 4, 2016, the EPA issued a Record of Decision selecting the remedy for the lower 8.3 miles of the River. The cleanup plan adopted by the EPA is now considered a final action for the lower 8.3 miles of the River and will include the removal of 3.5 million cubic yards of sediment, placement of a cap over the entire lower 8.3 miles of the River, and, according to the EPA, will cost approximately $1.4 billion and take 6 years to implement after the remedial design is completed. (The EPA estimates that the remedial design will take four years to complete.) The Company and 105 other parties received a letter dated March 31, 2016 from the EPA notifying such parties of potential liability for the costs of the cleanup of the lower 8.3 miles of the River and a letter dated March 30, 2017 stating that the EPA had offered 20 of the parties (not including the Company) an early cash out settlement. In a letter dated May 17, 2017, the EPA stated that these 20 parties did not discharge any of the eight hazardous substances identified as the contaminants of concern in the lower 8.3 mile ROD. In the March 30, 2017 letter, the EPA stated that other parties who did not discharge dioxins, furans or polychlorinated biphenyls (which are considered the contaminants of concern posing the greatest risk to human health or the environment) may also be eligible for cash out settlement, but expects those parties' allocation to be determined through a complex settlement analysis using a third-party allocator. The Company currently is participating in the allocation process that is expected to be completed in late 2019. The Company asserts that it did not discharge dioxins, furans or polychlorinated biphenyls and should be eligible for a cash out settlement. On September 30, 2016, Occidental Chemical Corporation ("OCC") entered into an agreement with the EPA to perform the remedial design for the cleanup plan for the lower 8.3 miles of the River. On June 30, 2018, OCC filed a complaint in the United States District Court for the District of New Jersey against over 100 companies, including the Company, seeking CERCLA cost recovery or contribution for past costs relating to various investigations and cleanups OCC has conducted or is conducting in connection with the River. According to the complaint, OCC has incurred or is incurring costs which include the estimated cost ($165 million) to complete the remedial design for the cleanup plan for the lower 8.3 miles of the River. OCC also seeks a declaratory judgment to hold the defendants liable for their proper shares of future response costs for OCC's ongoing activities in connection with the River. As of November 30, 2018, the Company's joint defense group's motion to dismiss OCC's complaint on various grounds and OCC's opposition brief were filed with the court. A decision on the motion to dismiss is expected in 2019. There has been no determination as to how the RI/FS will be modified in light of the EPA's decision to implement a final action for the lower 8.3 miles of the River. At this time, the Company cannot reasonably estimate its liability related to the litigation and remediation efforts, excluding the RI/FS and remediation actions at mile 10.9, as the RI/FS is ongoing, the ultimate remedial approach and associated cost for the upper portion of the River has not yet been determined, and the parties that will participate in funding the remediation and their respective allocations are not yet known. Per the terms of a Final Order and Judgment approved by the United States District Court for the Middle District of Florida on January 22, 1991, Emhart is responsible for a percentage of remedial costs arising out of the Kerr McGee Chemical Corporation Superfund Site located in Jacksonville, Florida. On March 15, 2017, the Company received formal notification from the EPA that the EPA had issued a ROD selecting the preferred alternative identified in the Proposed Cleanup Plan. The cleanup adopted by the EPA is estimated to cost approximately $68.7 million. Accordingly, in the first quarter of 2017, the Company increased its reserve by $17.1 million which was recorded in Other, net in the Consolidated Statements of Operations. The environmental liability for certain sites that have cash payments beyond the current year that are fixed or reliably determinable have been discounted using a rate of 2.3% to 3.3%, depending on the expected timing of disbursements. The discounted and undiscounted amount of the liability relative to these sites is $39.4 million and $49.8 million, respectively. The payments relative to these sites are expected to be $2.5 million in 2019, $3.0 million in 2020, $3.0 million in 2021, $3.0 million in 2022, $3.0 million in 2023, and $35.3 million thereafter. The amount recorded for identified contingent liabilities is based on estimates. Amounts recorded are reviewed periodically and adjusted to reflect additional technical and legal information that becomes available. Actual costs to be incurred in future periods may vary from the estimates, given the inherent uncertainties in evaluating certain exposures. Subject to the imprecision in estimating future contingent liability costs, the Company does not expect that any sum it may have to pay in connection with these matters in excess of the amounts recorded will have a materially adverse effect on its financial position, results of operations or liquidity. |
DISCONTINUED OPERATIONS |
12 Months Ended |
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Dec. 29, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | n January 3, 2017, the Company sold a business within the Tools & Storage segment for $25.6 million. During the second quarter of 2017, the Company received additional proceeds of $0.5 million as a result of the finalization of the purchase price. On February 22, 2017, the Company sold the majority of its mechanical security businesses within the Security segment, which included the commercial hardware brands of Best Access, phi Precision and GMT, for net proceeds of $717.1 million. The Company also sold a small business in the Industrial segment during the third quarter of 2017 and a small business in the Tools & Storage segment during the fourth quarter of 2017 for total proceeds of approximately $13.7 million. As a result of these sales, the Company recognized a net pre-tax gain of $264.1 million in 2017, primarily related to the sale of the mechanical security businesses. These disposals do not qualify as discontinued operations and are included in the Company's Consolidated Statements of Operations for all periods presented through their respective dates of sale in 2017. The Company recognized pre-tax income for these businesses of $7.0 million and $50.0 million for the years ended December 30, 2017 and December 31, 2016, respectively. In January 2019, the Company entered into an agreement to sell its Sargent & Greenleaf mechanical locks business within the Security segment. The divestiture will allow the Company to invest in other areas of the Security business that fit into its long-term growth strategy. The transaction is expected to close in the first half of 2019. |
SELECTED QUARTERLY FINANCIAL DATA SELECTED QUARTERLY FINANCIAL DATA |
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Quarterly Financial Information [Text Block] | SELECTED QUARTERLY FINANCIAL DATA (unaudited)
(1) Includes provision for doubtful accounts. (2) Prior year amounts have been recast as a result of the adoption of the new revenue and pension standards. Refer to Note A, Significant Accounting Policies, for further discussion. The 2018 year-to-date results above include $450 million of pre-tax acquisition-related and other charges, as well as net tax charges of $181 million, which is comprised of charges related to the Tax Cuts and Jobs Act ("the Act") partially offset by the tax benefit of the pre-tax acquisition-related and other charges. The net impact of the above items and effect on diluted earnings per share by quarter was as follows:
The 2017 year-to-date results above include $156 million of pre-tax acquisition-related charges, a $264 million pre-tax gain on sales of businesses, primarily related to the sale of the mechanical security businesses in the first quarter, and a one-time net tax charge of $24 million recorded in the fourth quarter related to the Act. The net impact of the above items and effect on diluted earnings per share by quarter was as follows:
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SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||
BASIS OF PRESENTATION | BASIS OF PRESENTATION — The Consolidated Financial Statements include the accounts of Stanley Black & Decker, Inc. and its majority-owned subsidiaries (collectively the “Company”) which require consolidation, after the elimination of intercompany accounts and transactions. The Company’s fiscal year ends on the Saturday nearest to December 31. There were 52 weeks in each of the fiscal years 2018, 2017 and 2016. In April 2018, the Company acquired the industrial business of Nelson Fastener Systems ("Nelson") from the Doncasters Group, which excluded Nelson's automotive stud welding business. The acquisition is being accounted for as a business combination and the results are being consolidated into the Company's Industrial segment. In March 2017, the Company acquired the Tools business of Newell Brands ("Newell Tools") and the Craftsman® brand, which were both accounted for as business combinations. The results of these acquisitions have been consolidated into the Company's Tools & Storage segment. Refer to Note E, Acquisitions, for further discussion on these acquisitions. In the first quarter of 2017, the Company sold the majority of its mechanical security businesses within the Security segment, which included the commercial hardware brands of Best Access, phi Precision and GMT, and sold a small business within the Tools & Storage segment. The Company also sold a small business in the Industrial segment in the third quarter of 2017 and a small business in the Tools & Storage segment in the fourth quarter of 2017. The operating results of these businesses have been reported in the Consolidated Financial Statements through their respective dates of sale in 2017 and for the year ended December 31, 2016. Refer to Note T, Divestitures, for further discussion. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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. Certain amounts reported in previous years have been reclassified to conform to the 2018 presentation. Furthermore, as discussed in "New Accounting Standards" below, certain amounts reported in previous years have been recast as a result of the retrospective adoption of new accounting standards in the first quarter of 2018. |
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FOREIGN CURRENCY | FOREIGN CURRENCY — For foreign operations with functional currencies other than the U.S. dollar, asset and liability accounts are translated at current exchange rates, while income and expenses are translated using average exchange rates. Translation adjustments are reported in a separate component of shareowners’ equity and exchange gains and losses on transactions are included in earnings. |
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CASH EQUIVALENTS | CASH EQUIVALENTS — Highly liquid investments with original maturities of three months or less are considered cash equivalents. |
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ACCOUNTS AND FINANCING RECEIVABLE | ACCOUNTS AND FINANCING RECEIVABLE — Trade receivables are stated at gross invoice amounts less discounts, other allowances and provisions for uncollectible accounts. 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. Additionally, the Company considers the credit quality of all past-due or delinquent financing receivables as nonperforming. |
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ALLOWANCE FOR DOUBTFUL ACCOUNTS | ALLOWANCE FOR DOUBTFUL ACCOUNTS — The Company estimates its allowance for doubtful accounts 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 and write-off experience. Actual write-offs are charged against the allowance when collection efforts have been unsuccessful. |
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INVENTORIES | INVENTORIES — U.S. inventories are primarily valued at the lower of Last-In First-Out (“LIFO”) cost or market because the Company believes it results in better matching of costs and revenues. Other inventories are primarily valued at the lower of First-In, First-Out (“FIFO”) cost and net realizable value because LIFO is not permitted for statutory reporting outside the U.S. Refer to Note C, Inventories, for a quantification of the LIFO impact on inventory valuation. |
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PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT — The Company generally values property, plant and equipment (“PP&E”), including capitalized software, at historical cost less accumulated depreciation and amortization. Costs related to maintenance and repairs which do not prolong the asset's useful life are expensed as incurred. Depreciation and amortization are provided using straight-line methods over the estimated useful lives of the assets as follows:
Leasehold improvements are depreciated over the shorter of the estimated useful life or the term of the lease. The Company reports depreciation and amortization of property, plant and equipment in cost of sales and selling, general and administrative expenses based on the nature of the underlying assets. Depreciation and amortization related to the production of inventory and delivery of services are recorded in cost of sales. Depreciation and amortization related to distribution center activities, selling and support functions are reported in selling, general and administrative expenses. The Company assesses its long-lived assets for impairment when indicators that the carrying amounts may not be recoverable are present. In assessing long-lived assets for impairment, the Company groups its long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are generated (“asset group”) and estimates the undiscounted future cash flows that are directly associated with, and expected to be generated from, the use of and eventual disposition of the asset group. If the carrying value is greater than the undiscounted cash flows, an impairment loss must be determined and the asset group is written down to fair value. The impairment loss is quantified by comparing the carrying amount of the asset group to the estimated fair value, which is generally determined using weighted-average discounted cash flows that consider various possible outcomes for the disposition of the asset group. |
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GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS — Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Intangible assets acquired are recorded at estimated fair value. Goodwill and intangible assets deemed to have indefinite lives are not amortized, but are tested for impairment annually during the third quarter, and at any time when events suggest an impairment more likely than not has occurred. To assess goodwill for impairment, the Company, depending on relevant facts and circumstances, performs either a qualitative assessment, as permitted by Accounting Standards Update ("ASU") 2011-08, Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for Impairment, or a quantitative analysis utilizing a discounted cash flow valuation model. In performing a qualitative assessment, the Company first assesses relevant factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step quantitative goodwill impairment test. The Company identifies and considers the significance of relevant key factors, events, and circumstances that could affect the fair value of each reporting unit. These factors include external factors such as macroeconomic, industry, and market conditions, as well as entity-specific factors, such as actual and planned financial performance. The Company also considers changes in each reporting unit's fair value and carrying amount since the most recent date a fair value measurement was performed. In performing a quantitative analysis, the Company determines the fair value of a reporting unit using management’s assumptions about future cash flows based on long-range strategic plans. This approach incorporates many assumptions including discount rates, future growth rates and expected profitability. In the event the carrying amount of a reporting unit exceeded its fair value, an impairment loss would be recognized to the extent the carrying amount of the reporting unit’s goodwill exceeded the implied fair value of the goodwill. Indefinite-lived intangible assets are tested for impairment utilizing either a qualitative assessment or a quantitative analysis. For a qualitative assessment, the Company identifies and considers relevant key factors, events, and circumstances to determine whether it is necessary to perform a quantitative impairment test. The key factors considered include macroeconomic, industry, and market conditions, as well as the asset's actual and forecasted results. For the quantitative impairment tests, the Company compares the carrying amounts to the current fair market values, usually determined by the estimated cost to lease the assets from third parties. Intangible assets with definite lives are amortized over their estimated useful lives generally using an accelerated method. Under this accelerated method, intangible assets are amortized reflecting the pattern over which the economic benefits of the intangible assets are consumed. Definite-lived intangible assets are also evaluated for impairment when impairment indicators are present. If the carrying amount exceeds the total undiscounted future cash flows, a discounted cash flow analysis is performed to determine the fair value of the asset. If the carrying amount of the asset was to exceed the fair value, it would be written down to fair value. No significant goodwill or other intangible asset impairments were recorded during 2018, 2017 or |
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FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS — |
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REVENUE RECOGNITION | REVENUE RECOGNITION — |
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COST OF SALES AND SELLING, GENERAL & ADMINISTRATIVE | COST OF SALES AND SELLING, GENERAL & ADMINISTRATIVE — Cost of sales includes the cost of products and services provided reflecting costs of manufacturing and preparing the product for sale. These costs include expenses to acquire and manufacture products to the point that they are allocable to be sold to customers and costs to perform services pertaining to service revenues (e.g. installation of security systems, automatic doors, and security monitoring costs). Cost of sales is primarily comprised of freight, direct materials, direct labor as well as overhead which includes indirect labor and facility and equipment costs. Cost of sales also includes quality control, procurement and material receiving costs as well as internal transfer costs. Selling, general & administrative costs ("SG&A") include the cost of selling products as well as administrative function costs. These expenses generally represent the cost of selling and distributing the products once they are available for sale and primarily include salaries and commissions of the Company’s sales force, distribution costs, notably salaries and facility costs, as well as administrative expenses for certain support functions and related overhead. |
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ADVERTISING COSTS | ADVERTISING COSTS — Television advertising is expensed the first time the advertisement airs, whereas other advertising is expensed as incurred. Advertising costs are classified in SG&A and amounted to $101.3 million in 2018, $123.3 million in 2017 and $124.1 million in 2016. Expense pertaining to cooperative advertising with customers reported as a reduction of Net Sales was $315.8 million in 2018, $297.4 million in 2017 and $232.5 million in 2016. Cooperative advertising with customers classified as SG&A expense amounted to $5.4 million in 2018, $6.1 million in 2017 and $6.6 million in 2016. |
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SALES TAXES | SALES TAXES — Sales and value added taxes collected from customers and remitted to governmental authorities are excluded from Net Sales reported in the Consolidated Statements of Operations. |
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SHIPPING AND HANDLING COSTS | SHIPPING AND HANDLING COSTS — The Company generally does not bill customers for freight. Shipping and handling costs associated with inbound and outbound freight are reported in Cost of sales. Distribution costs are classified in SG&A and amounted to $316.0 million, $279.8 million and $235.3 million in 2018, 2017 and 2016, respectively. |
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STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION — Compensation cost relating to stock-based compensation grants is recognized on a straight-line basis over the vesting period, which is generally four years. The expense for stock options and restricted stock units awarded to retirement-eligible employees (those aged 55 and over, and with 10 or more years of service) is recognized on the grant date, or (if later) by the date they become retirement-eligible. |
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POSTRETIREMENT DEFINED BENEFIT PLAN | POSTRETIREMENT DEFINED BENEFIT PLAN — The Company uses the corridor approach to determine expense recognition for each defined benefit pension and other postretirement plan. The corridor approach defers actuarial gains and losses resulting from variances between actual and expected results (based on economic estimates or actuarial assumptions) and amortizes them over future periods. For pension plans, these unrecognized gains and losses are amortized when the net gains and losses exceed 10% of the greater of the market-related value of plan assets or the projected benefit obligation at the beginning of the year. For other postretirement benefits, amortization occurs when the net gains and losses exceed 10% of the accumulated postretirement benefit obligation at the beginning of the year. For ongoing, active plans, the amount in excess of the corridor is amortized on a straight-line basis over the average remaining service period for active plan participants. For plans with primarily inactive participants, the amount in excess of the corridor is amortized on a straight-line basis over the average remaining life expectancy of inactive plan participants. |
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INCOME TAXES | INCOME TAXES — The Company accounts for income taxes under the asset and liability method in accordance with ASC 740, Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. Any changes in tax rates on deferred tax assets and liabilities are recognized in income in the period that includes the enactment date. The Company records net deferred tax assets to the extent that it is more likely than not that these assets will be realized. In making this determination, management considers all available positive and negative evidence, including future reversals of existing temporary differences, estimates of future taxable income, tax-planning strategies, and the realizability of net operating loss carryforwards. In the event that it is determined that an asset is not more likely that not to be realized, a valuation allowance is recorded against the asset. Valuation allowances related to deferred tax assets can be impacted by changes to tax laws, changes to statutory tax rates and future taxable income levels. In the event the Company were to determine that it would not be able to realize all or a portion of its deferred tax assets in the future, the unrealizable amount would be charged to earnings in the period in which that determination is made. Conversely, if the Company were to determine that it would be able to realize deferred tax assets in the future in excess of the net carrying amounts, it would decrease the recorded valuation allowance through a favorable adjustment to earnings in the period that the determination was made. The Company records uncertain tax positions in accordance with ASC 740, which requires a two-step process. First, management determines whether it is more likely than not that a tax position will be sustained based on the technical merits of the position and second, for those tax positions that meet the more likely than not threshold, management recognizes the largest amount of the tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related taxing authority. The Company maintains an accounting policy of recording interest and penalties on uncertain tax positions as a component of Income taxes in the Consolidated Statements of Operations. The Company is subject to income tax in a number of locations, including many state and foreign jurisdictions. Significant judgment is required when calculating the worldwide provision for income taxes. Many factors are considered when evaluating and estimating the Company's tax positions and tax benefits, which may require periodic adjustments, and which may not accurately anticipate actual outcomes. It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company's unrecognized tax positions will significantly increase or decrease within the next twelve months. These changes may be the result of settlements of ongoing audits or final decisions in transfer pricing matters. The Company periodically assesses its liabilities and contingencies for all tax years still subject to audit based on the most current available information, which involves inherent uncertainty. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (“the Act”). Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, changes to U.S. international taxation, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. Pursuant to Staff Accounting Bulletin No. 118 (“SAB 118”) issued by the SEC in December 2017, issuers were permitted up to one year from the enactment of the Act to complete the accounting for the income tax effects of the Act (“the measurement period”). The Company completed its accounting for the tax effects of the Act within the measurement period and has included those effects within Income taxes in the Consolidated Statements of Operations. The Act subjects a U.S. shareholder to current tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The Financial Accounting Standards Board ("FASB") Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. The Company has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. Refer to Note Q, Income Taxes, for further discussion. |
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EARNINGS PER SHARE | EARNINGS PER SHARE — Basic earnings per share equals net earnings attributable to common shareowners divided by weighted-average shares outstanding during the year. Diluted earnings per share include the impact of common stock equivalents using the treasury stock method when the effect is dilutive. |
SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Dec. 29, 2018 | ||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||
Depreciation and Amortization, Estimated Useful Lives of Assets | Depreciation and amortization are provided using straight-line methods over the estimated useful lives of the assets as follows:
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ACCOUNTS AND NOTES RECEIVABLE (Tables) |
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Dec. 29, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTS AND FINANCING RECEIVABLE |
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INVENTORIES (Tables) |
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Dec. 29, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories |
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PROPERTY, PLANT AND EQUIPMENT (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment Disclosure [Text Block] | D. PROPERTY, PLANT AND EQUIPMENT
Depreciation and amortization expense associated with property, plant and equipment was as follows:
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Property, Plant and Equipment |
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Depreciation and Amortization Expense Associated with Property, Plant and Equipment | Depreciation and amortization expense associated with property, plant and equipment was as follows:
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GOODWILL AND INTANGIBLE ASSETS (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Carrying Amount of Goodwill by Segment | GOODWILL — The changes in the carrying amount of goodwill by segment are as follows:
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Intangible Assets | INTANGIBLE ASSETS — Intangible assets at December 29, 2018 and December 30, 2017 were as follows:
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Aggregate Intangible Assets Amortization Expense by Segment | ntangible assets amortization expense by segment was as follows:
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ACCRUED EXPENSES (Tables) |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses | Accrued expenses at December 29, 2018 and December 30, 2017 were as follows:
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LONG-TERM DEBT AND FINANCING ARRANGEMENTS (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt and Financing Arrangements | Long-term debt and financing arrangements at December 29, 2018 and December 30, 2017 were as follows:
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DERIVATIVE FINANCIAL INSTRUMENTS (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Fair Value of Derivatives | A summary of the fair values of the Company’s derivatives recorded in the Consolidated Balance Sheets at December 29, 2018 and December 30, 2017 follows:
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Detail Pre-tax Amounts Reclassified From Accumulated Other Comprehensive Income into Earnings for Active Derivative Financial Instruments | The tables below detail pre-tax amounts of derivatives designated as cash flow hedges in Accumulated other comprehensive loss for active derivatives during the periods in which the underlying hedged transactions affected earnings for 2018, 2017 and 2016:
* Includes ineffective portion and amount excluded from effectiveness testing on derivatives. A summary of the pre-tax effect of cash flow hedge accounting on the Consolidated Statements of Operations for 2018 is as follows:
1 Inclusive of the gain/loss amortization on terminated derivative financial instruments. The tables below detail pre-tax amounts of derivatives designated as cash flow hedges in Accumulated other comprehensive loss for active derivatives during the periods in which the underlying hedged transactions affected earnings for 2018, 2017 and 2016:
* Includes ineffective portion and amount excluded from effectiveness testing on derivatives. |
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Fair Value Adjustments Relating to Swaps | A summary of the fair value adjustments relating to these swaps is as follows:
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Details of Pre-Tax Amounts of Gains and Losses on Net Investment Hedges | The pre-tax gain or loss from fair value changes for 2017 and 2016 was as follows:
*Includes ineffective portion. |
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Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments | The income statement impacts related to derivatives not designated as hedging instruments under ASC 815 for 2018, 2017 and 2016 are as follows:
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CAPITAL STOCK (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 29, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2018, December 30, 2017, and December 31, 2016.
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Weighted-Average Stock Options, Warrants and Equity Purchase Contracts Not Included in Computation of Diluted Shares Outstanding | The following weighted-average stock options were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive (in thousands):
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Common Stock Share Activity | Common stock activity for 2018, 2017 and 2016 was as follows:
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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, 2018 and December 30, 2017 are as follows:
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Weighted Average Assumptions that were Granted as Part of Merger |
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Number of Stock Options and Weighted-average Exercise Prices | The number of stock options and weighted-average exercise prices as of December 29, 2018 are as follows:
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Outstanding and Exercisable Stock Option | Outstanding and exercisable stock option information at December 29, 2018 follows:
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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, 2018, and changes during the twelve month period then ended is as follows:
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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:
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EMPLOYEE BENEFIT PLANS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 29, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expense for Defined Contribution Plans | The expense for such defined contribution plans, aside from the earlier discussed ESOP plans, is as follows:
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Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | Changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss in 2018 are as follows:
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Changes in Pension and Other Post-retirement Benefit Obligations, Fair Value of Plan Assets | The changes in the pension and other post-retirement benefit obligations, fair value of plan assets, as well as amounts recognized in the Consolidated Balance Sheets, are shown below.
Information regarding pension plans in which projected benefit obligations (inclusive of anticipated future compensation increases) exceed plan assets follows:
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Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The accumulated benefit obligation for all defined benefit pension plans was $2.513 billion at December 29, 2018 and $2.754 billion at December 30, 2017. Information regarding pension plans in which accumulated benefit obligations exceed plan assets follows:
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Assumptions used in Valuing Pension and Post-Retirement Plan Obligations and Net Costs | The major assumptions used in valuing pension and post-retirement plan obligations and net costs were as follows:
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Asset Allocations by Asset Category and Level of Valuation Inputs within Fair Value Hierarchy | The Company’s worldwide asset allocations at December 29, 2018 and December 30, 2017 by asset category and the level of the valuation inputs within the fair value hierarchy established by ASC 820 are as follows:
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Expected Future Benefit Payments | EXPECTED FUTURE BENEFIT PAYMENTS — Benefit payments, inclusive of amounts attributable to estimated future employee service, are expected to be paid as follows over the next 10 years:
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Pension Plans, Defined Benefit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Pension Expense | The components of net periodic pension (benefit) expense are as follows:
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Other Postretirement Benefit Plans, Defined Benefit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Pension Expense | Approximately 15,000 participants are covered under these plans. Net periodic post-retirement benefit expense was comprised of the following elements:
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FAIR VALUE MEASUREMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 29, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the Company’s financial assets and liabilities that are measured at fair value on a recurring basis for each of the hierarchy levels:
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Summary of Company's Financial Instruments Carrying and Fair Values | The following table provides information about the Company's financial assets and liabilities not carried at fair value:
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RESTRUCTURING AND ASSET IMPAIRMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 29, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restructuring Reserve Activity | A summary of the restructuring reserve activity from December 30, 2017 to December 29, 2018 is as follows:
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BUSINESS SEGMENTS AND GEOGRAPHIC AREAS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 29, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENTS | BUSINESS SEGMENTS
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GEOGRAPHIC AREAS | GEOGRAPHIC AREAS
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INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 29, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities at the end of each fiscal year were as follows:
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Classification of Deferred Taxes | The components of earnings before income taxes consisted of the following:
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Income Tax Expense (Benefit) Attributable to Continuing Operations | Income tax expense (benefit) consisted of the following:
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Reconciliation of U.S. Federal Statutory Income Tax to Income Taxes on Continuing Operations | The reconciliation of the U.S. federal statutory income tax provision to Income taxes in the Consolidated Statements of Operations is as follows:
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Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to the unrecognized tax benefits:
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COMMITMENTS AND GUARANTEES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 29, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Company's Future Commitments | The following is a summary of the Company’s future commitments:
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Summary of Guarantees | The Company's financial guarantees at December 29, 2018 are as follows:
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Summary of Warranty Liability Activity | Following is a summary of the warranty liability activity for the years ended December 29, 2018, December 30, 2017, and December 31, 2016:
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Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
||||||||
Allowance for Doubtful Accounts | ||||||||||
Movement in Valuation Allowances and Reserves | ||||||||||
Beginning balance | $ 80.4 | $ 78.5 | $ 72.9 | |||||||
Charged to Costs and Expenses | 28.0 | 16.3 | 23.2 | |||||||
Charged To Other Accounts | [1],[2] | (12.5) | (8.9) | (4.5) | ||||||
Deductions | [3] | (18.9) | (23.3) | (22.1) | ||||||
Ending balance | 102.0 | 80.4 | 78.5 | |||||||
Tax Valuation Allowance | ||||||||||
Movement in Valuation Allowances and Reserves | ||||||||||
Beginning balance | 516.7 | 525.5 | 480.7 | |||||||
Charged to Costs and Expenses | 146.2 | 262.4 | 74.5 | |||||||
Charged To Other Accounts | [1],[2] | (6.4) | (22.8) | (4.4) | ||||||
Deductions | [3] | (29.8) | (294.0) | (34.1) | ||||||
Ending balance | $ 626.7 | $ 516.7 | $ 525.5 | |||||||
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ACCOUNTS AND NOTES RECEIVABLE (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Dec. 30, 2017 |
---|---|---|
Receivables [Abstract] | ||
Trade accounts receivable | $ 1,437.1 | $ 1,388.1 |
Trade notes receivable | 150.0 | 158.7 |
Other accounts receivable | 122.7 | 162.3 |
Gross accounts and notes receivable | 1,709.8 | 1,709.1 |
Allowance for doubtful accounts | (102.0) | (80.4) |
Accounts and notes receivable, net | $ 1,607.8 | $ 1,628.7 |
INVENTORIES (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Dec. 30, 2017 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished products | $ 1,707.4 | $ 1,461.4 |
Work in process | 150.8 | 155.5 |
Raw materials | 515.3 | 401.5 |
Total | $ 2,373.5 | $ 2,018.4 |
INVENTORIES - Additional Information (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Dec. 30, 2017 |
---|---|---|
Business Acquisition [Line Items] | ||
Net inventory amount valued at lower of LIFO cost or market | $ 1,200.0 | $ 896.9 |
Increase in inventories if LIFO method had not been used | 44.6 | $ 2.9 |
Craftsman [Member] | Inventories [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 48.6 | |
Newell Tools [Member] | Inventories [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | $ 195.5 |
PROPERTY, PLANT AND EQUIPMENT (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | $ 3,970.1 | $ 3,659.5 | |
Less: accumulated depreciation and amortization | (2,054.9) | (1,917.0) | |
Property, Plant and Equipment, net | 1,915.2 | 1,742.5 | $ 1,451.2 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | 115.9 | 110.9 | |
Land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | 52.2 | 53.0 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | 625.6 | 611.8 | |
Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | 157.8 | 140.0 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | 2,566.1 | 2,343.7 | |
Computer software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | $ 452.5 | $ 400.1 |
Depreciation and Amortization Expense Associated with Property, Plant and Equipment (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 288.4 | $ 253.6 | $ 221.8 |
Amortization | 42.8 | 43.3 | 41.8 |
Depreciation and amortization expense | $ 331.2 | $ 296.9 | $ 263.6 |
GOODWILL AND INTANGIBLE ASSETS - Changes in Carrying Amount of Goodwill by Segment (Detail) $ in Millions |
12 Months Ended |
---|---|
Dec. 29, 2018
USD ($)
| |
Goodwill | |
Balance December 30, 2017 | $ 8,776.1 |
Acquisitions | 340.3 |
Foreign currency translation and other | (159.7) |
Balance December 29, 2018 | 8,956.7 |
Construction and Do It Yourself | |
Goodwill | |
Balance December 30, 2017 | 5,189.7 |
Acquisitions | 59.8 |
Foreign currency translation and other | (95.2) |
Balance December 29, 2018 | 5,154.3 |
Security Segment Business [Domain] | |
Goodwill | |
Balance December 30, 2017 | 2,132.0 |
Acquisitions | 55.0 |
Foreign currency translation and other | (64.3) |
Balance December 29, 2018 | 2,122.7 |
Industrial Segment | |
Goodwill | |
Balance December 30, 2017 | 1,454.4 |
Acquisitions | 225.5 |
Foreign currency translation and other | (0.2) |
Balance December 29, 2018 | $ 1,679.7 |
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Dec. 30, 2017 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,884.4 | $ 2,784.5 |
Accumulated Amortization | (1,598.9) | (1,483.0) |
Patents and copyrights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 42.5 | 44.1 |
Accumulated Amortization | (40.6) | (41.0) |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 170.8 | 154.0 |
Accumulated Amortization | (114.9) | (111.0) |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,435.0 | 2,326.1 |
Accumulated Amortization | (1,269.8) | (1,155.4) |
Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 236.1 | 260.3 |
Accumulated Amortization | $ (173.6) | $ (175.6) |
GOODWILL AND INTANGIBLE ASSETS - Aggregate Intangible Assets Amortization Expense by Segment (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 8,956.7 | $ 8,776.1 | |
Amortization of Intangible Assets | 175.3 | 163.8 | $ 144.4 |
Construction and Do It Yourself | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 5,154.3 | 5,189.7 | |
Amortization of Intangible Assets | 75.5 | 68.0 | 36.8 |
Security Segment Business [Domain] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 2,122.7 | 2,132.0 | |
Industrial Segment | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 1,679.7 | 1,454.4 | |
Amortization of Intangible Assets | 50.7 | 45.4 | 49.8 |
Securities Industry [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 49.1 | $ 50.4 | $ 57.8 |
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Dec. 30, 2017 |
---|---|---|
Goodwill [Line Items] | ||
Goodwill | $ 8,956.7 | $ 8,776.1 |
Total indefinite-lived trade names | 2,199.0 | 2,206.0 |
Future amortization expense in 2013 | 168.6 | |
Future amortization expense in 2014 | 150.5 | |
Future amortization expense in 2015 | 141.9 | |
Future amortization expense in 2016 | 132.7 | |
Future amortization expense in 2017 | 123.7 | |
Future amortization expense thereafter | 568.1 | |
Construction and Do It Yourself | ||
Goodwill [Line Items] | ||
Goodwill | 5,154.3 | 5,189.7 |
Security Segment Business [Domain] | ||
Goodwill [Line Items] | ||
Goodwill | 2,122.7 | 2,132.0 |
Industrial Segment | ||
Goodwill [Line Items] | ||
Goodwill | $ 1,679.7 | $ 1,454.4 |
ACCRUED EXPENSES (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Dec. 30, 2017 |
---|---|---|
Payables and Accruals [Abstract] | ||
Payroll and related taxes | $ 297.0 | $ 339.5 |
Income and other taxes | 67.5 | 142.0 |
Customer rebates and sales returns | 116.6 | 134.0 |
Insurance and benefits | 69.4 | 73.7 |
Restructuring costs | 108.8 | 23.2 |
Derivative financial instruments | 7.5 | 103.1 |
Warranty costs | 65.5 | 71.3 |
Deferred revenue | 98.6 | 95.6 |
accrued freight costs | 87.3 | 30.5 |
Other | 413.5 | 352.3 |
Reserve for environmental remediation costs | 58.1 | 22.5 |
Total | $ 1,389.8 | $ 1,387.7 |
DERIVATIVE FINANCIAL INSTRUMENTS - Detail Pre-tax Amounts Reclassified from Accumulated Other Comprehensive Loss into Earnings for Active Derivative Financial Instruments (Detail) - Cash Flow Hedges - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 1.9 | ||||
Gain (Loss) reclassified from OCI to income (Effective Portion) | 15.4 | $ 4.7 | $ (3.3) | ||
Interest Rate Contracts | Interest Expense [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) recorded in OCI | (33.1) | 8.4 | 6.2 | ||
Gain (Loss) reclassified from OCI to income (Effective Portion) | 0.0 | 0.0 | 0.0 | ||
Gain (Loss) recognized in income (Ineffective Portion) | 0.0 | 0.0 | 0.0 | ||
Interest Rate Contracts | Cost of Sales | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) reclassified from OCI to income (Effective Portion) | 0.0 | ||||
Foreign Exchange Contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) recorded in OCI | (35.9) | 66.6 | (19.3) | ||
Gain (Loss) recognized in income (Ineffective Portion) | [1] | 0.0 | 0.0 | 0.0 | |
Foreign Exchange Contracts | Interest Expense [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) reclassified from OCI to income (Effective Portion) | 0.0 | ||||
Foreign Exchange Contracts | Cost of Sales | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) reclassified from OCI to income (Effective Portion) | $ 17.9 | $ (8.4) | $ 21.7 | ||
|
DERIVATIVE FINANCIAL INSTRUMENTS - Fair Value Adjustments Relating to Swaps (Detail) - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
Oct. 31, 2012 |
Jan. 31, 2012 |
|
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Long-term debt, face amount | $ 3,862.2 | ||||
Fair Value Hedges | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Derivative, Loss on Derivative | 3.2 | $ 3.2 | $ 6.9 | ||
Interest Expense, Debt | 19.9 | ||||
Fair Value Hedges | Interest Expense [Member] | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Gain/(Loss) on Swaps | 0.0 | (3.3) | |||
Gain /(Loss) on Borrowings | 0.0 | $ (3.8) | |||
Interest Rate Swap | Cash Flow Hedges | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Derivative, Notional Amount | $ 400.0 | $ 400.0 | |||
Notes payable due 2028 | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Long-term debt, interest rate | 7.05% | 7.05% | |||
Notes payable due 2028 | Interest Rate Risk [Member] | Fair Value Hedges | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Derivative, Notional Amount | $ 150.0 | ||||
Notes 7 Point 05 Percent Due in 2028 [Member] | Interest Rate Risk [Member] | Fair Value Hedges | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Long-term debt, interest rate | 7.05% | ||||
Notes 5 Point 20 Percent Due 2040 [Member] | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Long-term debt, interest rate | 5.20% | 5.20% | |||
Notes 3 Point 4 Percent Due in 2021 [Member] | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Long-term debt, interest rate | 3.40% | 3.40% | |||
Notes 3 Point 4 Percent Due in 2021 [Member] | Interest Rate Risk [Member] | Fair Value Hedges | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Long-term debt, interest rate | 3.40% | ||||
Derivative, Notional Amount | $ 400.0 |
DERIVATIVE FINANCIAL INSTRUMENTS - Details of Foreign Exchange Contracts Pre-Tax Amounts (Detail) - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
Oct. 31, 2012 |
|||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Debt Instrument, Face Amount | $ 3,862.2 | |||||
Payments for (Proceeds from) Derivative Instrument, Investing Activities | (25.7) | $ 23.3 | $ (104.7) | |||
Cash Flow Hedges | Foreign Exchange Forward | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Derivative, Notional Amount | $ 240.0 | 559.9 | ||||
Derivative Instrument Maturity Year | 2019 | |||||
Cash Flow Hedges | Foreign Exchange Contracts | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Amount Recorded in OCI Gain (Loss) | $ (35.9) | 66.6 | (19.3) | |||
Ineffective Portion Recorded in Income Statement | [1] | 0.0 | 0.0 | 0.0 | ||
Cash Flow Hedges | Foreign Exchange Option [Member] | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Derivative, Notional Amount | 370.0 | 400.0 | ||||
Net Investment Hedging | Foreign Exchange Contracts | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Accumulated Other Comprehensive Income Loss Cumulative Changes In Net Gain Loss From Hedging Activities Effect Net Of Tax | (63.3) | (3.4) | ||||
Payments for (Proceeds from) Derivative Instrument, Investing Activities | $ 25.7 | 23.3 | 104.7 | |||
Net Investment Hedging | Foreign Exchange Contracts | Other, net | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Amount Recorded in OCI Gain (Loss) | (131.3) | 117.8 | ||||
Effective Portion Recorded in Income Statement | 0.0 | 0.0 | ||||
Ineffective Portion Recorded in Income Statement | $ 0.0 | $ 0.0 | ||||
Notes 3 Point 4 Percent Due in 2021 [Member] | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Long-term debt, interest rate | 3.40% | 3.40% | ||||
Notes 3 Point 4 Percent Due in 2021 [Member] | Fair Value Hedges | Interest Rate Risk [Member] | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Long-term debt, interest rate | 3.40% | |||||
Derivative, Notional Amount | $ 400.0 | |||||
Currency British Pound Sterling [Member] | Net Investment Hedging | Foreign Exchange Contracts | ||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||
Derivative, Notional Amount | $ 262.4 | $ 751.2 | ||||
|
DERIVATIVE FINANCIAL INSTRUMENTS - Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments (Detail) - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other, net | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Amount of gain (loss) recorded in Income on derivative, year to date | $ 17.0 | $ 51.5 | $ (21.1) | ||
Not Designated as Hedging Instrument | Forward Contracts | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Derivative, Notional Amount | 1,000.0 | 1,000.0 | |||
Fair Value Hedging [Member] | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Derivative, Loss on Derivative | $ 3.2 | $ 3.2 | 6.9 | ||
Interest Expense, Debt | $ 19.9 | ||||
Notes 5 Point 75 Percent due 2053 [Member] | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | 5.75% | |||
Notes 5 Point 75 Percent due 2053 [Member] | Fair Value Hedging [Member] | Interest Rate Risk [Member] | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Derivative, Notional Amount | $ 400.0 |
DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
Sep. 29, 2018 |
Apr. 01, 2017 |
Jan. 03, 2015 |
Dec. 28, 2013 |
Oct. 31, 2012 |
Jan. 31, 2012 |
|||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Commercial Paper Amount Outstanding | $ 373.0 | ||||||||||
Commercial Paper Maximum Borrowing Capacity | 3,000.0 | $ 3,000.0 | $ 3,000.0 | ||||||||
Payments for (Proceeds from) Derivative Instruments | 2.4 | $ 2.6 | $ 94.7 | ||||||||
Long-term debt, face amount | 3,862.2 | ||||||||||
Matured foreign exchange contracts, net cash payment | $ (25.7) | $ 23.3 | (104.7) | ||||||||
Notes 5 Point 75 Percent due 2053 [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Long-term debt, interest rate | 5.75% | 5.75% | |||||||||
Notes payable due 2021 | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Long-term debt, interest rate | 3.40% | 3.40% | |||||||||
Notes 5 Point 20 Percent Due 2040 [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Long-term debt, interest rate | 5.20% | 5.20% | |||||||||
Notes 7 Point 05 Percent Due 2028 [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Long-term debt, interest rate | 7.05% | 7.05% | |||||||||
Not Designated as Hedging Instrument | Forward Contracts | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative, Notional Amount | $ 1,000.0 | $ 1,000.0 | |||||||||
Cash Flow Hedges | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
After-tax gain (loss) for cash flow hedge effectiveness in accumulated other comprehensive loss | (26.8) | (112.6) | |||||||||
Gain (Loss) reclassified from OCI to income (Effective Portion) | 15.4 | 4.7 | (3.3) | ||||||||
Cash Flow Hedges | Foreign Exchange Contracts | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 35.9 | (66.6) | 19.3 | ||||||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | [1] | 0.0 | 0.0 | 0.0 | |||||||
Cash Flow Hedges | Foreign Exchange Contracts | Interest Expense [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Gain (Loss) reclassified from OCI to income (Effective Portion) | 0.0 | ||||||||||
Cash Flow Hedges | Foreign Exchange Contracts | Cost of Sales | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Gain (Loss) reclassified from OCI to income (Effective Portion) | 17.9 | (8.4) | 21.7 | ||||||||
Cash Flow Hedges | Interest Rate Swap | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative, Notional Amount | 400.0 | 400.0 | |||||||||
Cash Flow Hedges | Interest Rate Swap | Interest Expense [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Gain (Loss) reclassified from OCI to income (Effective Portion) | 15.3 | ||||||||||
Cash Flow Hedges | Interest Rate Contracts | Interest Expense [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 33.1 | (8.4) | (6.2) | ||||||||
Gain (Loss) reclassified from OCI to income (Effective Portion) | 0.0 | 0.0 | 0.0 | ||||||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0.0 | 0.0 | 0.0 | ||||||||
Cash Flow Hedges | Interest Rate Contracts | Cost of Sales | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Gain (Loss) reclassified from OCI to income (Effective Portion) | $ 0.0 | ||||||||||
Cash Flow Hedges | Foreign Exchange Forward | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
De-designated forward currency contracts, maturity year | 2019 | ||||||||||
Derivative, Notional Amount | $ 240.0 | 559.9 | |||||||||
Cash Flow Hedges | Foreign Exchange Option | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative, Notional Amount | 370.0 | 400.0 | |||||||||
Fair Value Hedges | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Net swap accruals and amortization of gains on terminated swaps | 3.2 | 3.2 | 6.9 | ||||||||
Interest Expense, Debt | 19.9 | ||||||||||
Fair Value Hedges | Interest Rate Risk [Member] | Notes 5 Point 75 Percent due 2053 [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative, Notional Amount | $ 400.0 | ||||||||||
Fair Value Hedges | Interest Rate Risk [Member] | Notes payable due 2021 | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative, Notional Amount | $ 400.0 | ||||||||||
Long-term debt, interest rate | 3.40% | ||||||||||
Fair Value Hedges | Interest Rate Risk [Member] | Notes 7 Point 05 Percent Due in 2028 [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Long-term debt, interest rate | 7.05% | ||||||||||
Fair Value Hedges | Interest Rate Risk [Member] | Notes 7 Point 05 Percent Due 2028 [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative, Notional Amount | $ 150.0 | ||||||||||
Net Investment Hedging | Foreign Exchange Contracts | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Gain (loss) included in accumulated other comprehensive income (loss) | (63.3) | (3.4) | |||||||||
Matured foreign exchange contracts, net cash payment | 25.7 | 23.3 | 104.7 | ||||||||
Net Investment Hedging | Foreign Exchange Contracts | Currency British Pound Sterling [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative, Notional Amount | $ 262.4 | 751.2 | |||||||||
Net Investment Hedging | Foreign Exchange Contracts | Other, net | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 131.3 | (117.8) | |||||||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0.0 | $ 0.0 | |||||||||
Net Investment Hedging | Currency Swap [Member] | Japan, Yen | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative, Notional Amount | $ 250.0 | ||||||||||
|
CAPITAL STOCK - Reconciliation of Net Earnings Attributable to Common Shareholders and Weighted Average Shares Outstanding used to Calculate Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2018 |
Sep. 29, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 30, 2017 |
Sep. 30, 2017 |
Jul. 01, 2017 |
Apr. 01, 2017 |
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Numerator | |||||||||||
Net earnings | $ (106.8) | $ 247.8 | $ 293.6 | $ 170.6 | $ 281.5 | $ 274.5 | $ 277.6 | $ 393.7 | $ 605.2 | $ 1,227.3 | $ 968.0 |
Denominator | |||||||||||
Basic earnings per share -- weighted-average shares | 148,919 | 149,629 | 146,041 | ||||||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 2,724 | 2,820 | 2,166 | ||||||||
Diluted earnings per share -- weighted-average shares | 151,643 | 152,449 | 148,207 | ||||||||
Basic earnings per share of common stock: | |||||||||||
Total basic earnings per share of common stock (USD per share) | $ (0.72) | $ 1.67 | $ 1.96 | $ 1.13 | $ 1.88 | $ 1.83 | $ 1.86 | $ 2.64 | $ 4.06 | $ 8.20 | $ 6.63 |
Diluted earnings per share of common stock: | |||||||||||
Total diluted earnings per share of common stock (USD per share) | $ (0.72) | $ 1.65 | $ 1.93 | $ 1.11 | $ 1.84 | $ 1.80 | $ 1.82 | $ 2.60 | $ 3.99 | $ 8.05 | $ 6.53 |
CAPITAL STOCK - Weighted-average Stock Options, Warrants and Equity Purchase Contracts Not Included in Computation of Diluted Shares Outstanding (Detail) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Nov. 17, 2016 |
Nov. 30, 2016 |
Dec. 30, 2017 |
Jul. 01, 2017 |
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
Dec. 28, 2013 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Common Stock, Par or Stated Value Per Share | $ 2.5 | $ 2.5 | $ 2.5 | |||||
Equity Units Conversion Rate Number Of Common Stock Shares | 3,504,165 | 0.7259 | 0.7241 | 418,234 | ||||
Common Stock, Shares, Issued | 3,504,165 | 176,902,738 | 176,902,738 | 176,902,738 | ||||
Stock options | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Antidilutive securities excluded from the computation of EPS | 1,339,000 | 389,000 | 734,000 | |||||
Notes 2 Point 25 Percent due 2018 [Member] | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Long-term debt, including current maturities | $ 345.0 | $ 345.0 | ||||||
Common Stock, Par or Stated Value Per Share | $ 100 | $ 100 | ||||||
Convertible notes payable due in 2018 (subordinated) | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Convertible Preferred Stock Shares Issuable Upon Conversion | 3,504,165 | |||||||
Common Stock | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 1.0157 | 1.0157 | ||||||
Common Stock | Minimum | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 1.0122 | 1.0122 | 1.0122 | |||||
Convertible Preferred Units | Maximum [Member] | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Convertible Notes Conversion Rate Number Of Common Stock Shares | 1.2399 | 1.2399 |
CAPITAL STOCK - Common Stock Share Activity (Detail) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 17, 2016 |
Feb. 08, 2016 |
Feb. 01, 2016 |
Nov. 30, 2016 |
Oct. 31, 2016 |
Oct. 31, 2014 |
Sep. 29, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 30, 2017 |
Jul. 01, 2017 |
Apr. 04, 2015 |
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
Dec. 28, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Common Stock, Shares Authorized | 300,000,000 | 300,000,000 | 300,000,000 | |||||||||||||
Payments for Repurchase of Common Stock | $ 230.9 | $ 124.2 | $ 300.0 | $ 200.0 | $ 326.1 | $ 527.1 | $ 28.7 | $ 374.1 | ||||||||
Option Indexed to Issuer's Equity, Settlement Alternatives, Shares, at Fair Value | 293,142 | 711,376 | 911,077 | 711,376 | ||||||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 3,504,165 | 0.7259 | 0.7241 | 418,234 | ||||||||||||
Forward share purchase contract | $ 147.4 | $ 150.0 | $ 350.0 | |||||||||||||
Option Indexed to Issuer's Equity, Shares | 3,200,000 | 4,600,000 | ||||||||||||||
Cash Settlement on Forward Stock Purchase Contract | $ 345.0 | $ 0.0 | $ 0.0 | $ 147.4 | ||||||||||||
Common Stock Share Activity | ||||||||||||||||
Outstanding, beginning of year | 154,038,031 | 153,944,291 | 154,038,031 | 152,559,767 | ||||||||||||
Issued from treasury | 941,854 | 1,680,339 | 4,870,761 | |||||||||||||
Outstanding, end of year | 154,038,031 | 151,302,450 | 154,038,031 | 152,559,767 | ||||||||||||
Shares subject to the forward share purchase contract | (1,603,822) | (1,603,822) | (3,645,510) | (3,645,510) | (3,645,510) | (3,645,510) | (3,645,510) | |||||||||
Outstanding, less shares subject to the forward share purchase contract | 150,392,521 | 147,656,940 | 150,392,521 | 148,914,257 | ||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 3,677,435 | 202,075 | 6,255,285 | |||||||||||||
Convertible Preferred Stock [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Conversion of Stock, Shares Issued | 3,500,000.0 | |||||||||||||||
2018 Omnibus Award Plan [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Common Stock, Shares Authorized | 16,750,000 | |||||||||||||||
Call Option [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Option Indexed to Issuer's Equity, Shares | 3,100,000.0 | 9,100,000.0 | 12,200,000.0 | 12,200,000.0 |
CAPITAL STOCK - Common Stock Shares Reserved for Issuance under Various Employee and Director Stock Plans (Detail) - shares |
Dec. 29, 2018 |
Dec. 30, 2017 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Common stock shares reserved for issuance | 15,884,117 | 4,272,276 |
Employee stock purchase plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Common stock shares reserved for issuance | 1,606,224 | 1,745,939 |
Other stock-based compensation plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Common stock shares reserved for issuance | 14,277,893 | 2,526,337 |
CAPITAL STOCK - Assumptions used for Black-Scholes valuation of Options (Detail) - Stock options - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average expected volatility | 23.00% | 20.00% | 24.10% |
Dividend yield | 2.00% | 1.50% | 2.00% |
Risk-free interest rate | 2.90% | 2.20% | 2.00% |
Expected term | 5 years 2 months 12 days | 5 years 3 months 18 days | |
Fair value per option | $ 26.54 | $ 30.71 | $ 23.41 |
Weighted average vesting period | 2 years 10 months 24 days | 2 years 10 months 24 days | 2 years 4 months 18 days |
CAPITAL STOCK - Assumptions used in Valuation of Pre-merger Black and Decker Stock Options (Detail) - Stock options - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average expected volatility | 23.00% | 20.00% | 24.10% |
Dividend yield | 2.00% | 1.50% | 2.00% |
Risk-free interest rate | 2.90% | 2.20% | 2.00% |
Expected term | 5 years 2 months 12 days | 5 years 3 months 18 days | |
Fair value per option | $ 26.54 | $ 30.71 | $ 23.41 |
CAPITAL STOCK - Number of Stock Options and Weighted-average Exercise Prices (Detail) |
12 Months Ended |
---|---|
Dec. 29, 2018
$ / shares
shares
| |
Options | |
Outstanding, beginning of year (in shares) | shares | 6,561,404 |
Granted (in shares) | shares | 1,255,750 |
Exercised (in shares) | shares | (267,378) |
Forfeited (in shares) | shares | (197,513) |
Outstanding, end of year (in shares) | shares | 7,352,263 |
Exercisable, end of year (in shares) | shares | 4,601,357 |
Price | |
Outstanding, beginning of year (USD per share) | $ / shares | $ 102.56 |
Granted (USD per share) | $ / shares | 130.88 |
Exercised (USD per share) | $ / shares | 80.66 |
Forfeited (USD per share) | $ / shares | 133.60 |
Outstanding, end of year (USD per share) | $ / shares | 107.36 |
Exercisable, end of year (USD per share) | $ / shares | $ 88.87 |
CAPITAL STOCK - Outstanding and Exercisable Stock Option (Detail) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 154.5 | |
Oustanding Stock Options, Options (in shares) | 7,352,263 | 6,561,404 |
Oustanding Stock Options, Weighted-average Remaining Contractual Life | 6 years 4 months 6 days | |
Oustanding Stock Options, Weighted-average Exercise Price (USD per share) | $ 107.36 | |
Exercisable Stock Options, Options (in shares) | 4,601,357 | |
Exercisable Stock Options, Weighted-average Remaining Contractual Life | 4 years 8 months 23 days | |
Exercisable Stock Options, Weighted-average Exercise Price (USD per share) | $ 88.87 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 152.8 | |
$35.00 and below | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Oustanding Stock Options, Options (in shares) | 2,031,976 | |
Oustanding Stock Options, Weighted-average Remaining Contractual Life | 2 years 2 months 12 days | |
Oustanding Stock Options, Weighted-average Exercise Price (USD per share) | $ 62.36 | |
Exercisable Stock Options, Options (in shares) | 2,031,976 | |
Exercisable Stock Options, Weighted-average Remaining Contractual Life | 2 years 2 months 12 days | |
Exercisable Stock Options, Weighted-average Exercise Price (USD per share) | $ 62.36 | |
$35.01 - 50.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Oustanding Stock Options, Options (in shares) | 2,960,794 | |
Oustanding Stock Options, Weighted-average Remaining Contractual Life | 6 years 8 months 23 days | |
Oustanding Stock Options, Weighted-average Exercise Price (USD per share) | $ 105.54 | |
Exercisable Stock Options, Options (in shares) | 2,267,023 | |
Exercisable Stock Options, Weighted-average Remaining Contractual Life | 6 years 5 months 12 days | |
Exercisable Stock Options, Weighted-average Exercise Price (USD per share) | $ 102.14 | |
$50.01 - higher | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Oustanding Stock Options, Options (in shares) | 2,359,493 | |
Oustanding Stock Options, Weighted-average Remaining Contractual Life | 9 years 5 months 5 days | |
Oustanding Stock Options, Weighted-average Exercise Price (USD per share) | $ 148.40 | |
Exercisable Stock Options, Options (in shares) | 302,358 | |
Exercisable Stock Options, Weighted-average Remaining Contractual Life | 8 years 9 months 11 days | |
Exercisable Stock Options, Weighted-average Exercise Price (USD per share) | $ 167.51 | |
Restricted Share Units & Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years |
CAPITAL STOCK - Summary of Non-vested Restricted Stock Unit Activity (Detail) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Granted, Value, Share-based Compensation, Gross | $ 3.4 | $ 7.0 | $ 2.2 |
Share-based Compensation | 76.5 | 78.7 | 81.2 |
Weighted Average Grant Date Fair Value | |||
Excess Tax Benefit from Share-based Compensation | 2.3 | 18.3 | 9.1 |
Restricted Share Units & Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | 40.1 | $ 31.7 | $ 32.6 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 10.1 | ||
Share Units | |||
Non-vested, Beginning Balance (in shares) | 1,084,675 | ||
Granted (in shares) | 413,838 | 304,976 | 445,155 |
Vested (in shares) | (352,625) | ||
Forfeited (in shares) | (71,153) | ||
Non-vested, Ending Balance (in shares) | 1,074,735 | 1,084,675 | |
Weighted Average Grant Date Fair Value | |||
Non-vested, Beginning Balance (USD per share) | $ 121.89 | ||
Granted (USD per share) | 133.90 | $ 160.04 | $ 118.20 |
Vested (USD per share) | 111.79 | ||
Forfeited (USD per share) | 124.62 | ||
Non-vested, Ending Balance (USD per share) | $ 129.65 | $ 121.89 | |
Excess Tax Benefit from Share-based Compensation | $ 1.8 | $ 4.9 | $ 2.4 |
Non Employee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 1.2 | $ 1.0 | $ 1.1 |
CAPITAL STOCK - Summary of Long-Term Performance Awards Activity (Detail) - Long-Term Performance Awards |
12 Months Ended |
---|---|
Dec. 29, 2018
$ / shares
shares
| |
Share Units | |
Non-vested, Beginning Balance (in shares) | shares | 692,913 |
Granted (in shares) | shares | 184,435 |
Vested (in shares) | shares | (178,738) |
Forfeited (in shares) | shares | (71,203) |
Non-vested, Ending Balance (in shares) | shares | 627,407 |
Weighted Average Grant Date Fair Value | |
Non-vested, Beginning Balance (USD per share) | $ / shares | $ 97.80 |
Granted (USD per share) | $ / shares | 155.83 |
Vested (USD per share) | $ / shares | 91.90 |
Forfeited (USD per share) | $ / shares | 95.11 |
Non-vested, Ending Balance (USD per share) | $ / shares | $ 116.85 |
CAPITAL STOCK - Additional Information, Earnings Per Share (Detail) $ in Millions |
Dec. 29, 2018
USD ($)
|
---|---|
Class of Warrant or Right [Line Items] | |
Long-term debt, face amount | $ 3,862.2 |
CAPITAL STOCK - Additional Information, Common Stock Share Activity (Detail) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Oct. 31, 2016 |
Oct. 31, 2014 |
Apr. 04, 2015 |
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Class of Stock [Line Items] | ||||||
Repurchase of common stock, shares | (3,677,435) | (202,075) | (4,651,463) | |||
Forward share purchase contract | $ 147.4 | $ 150.0 | $ 350.0 | |||
Forward share purchase contract, shares purchased | 1,603,822 | 1,603,822 | 3,645,510 | 3,645,510 | 3,645,510 | 3,645,510 |
CAPITAL STOCK - Additional Information, Preferred Stock Purchase Rights (Detail) |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2017
$ / shares
|
Dec. 29, 2018
$ / shares
|
Dec. 30, 2017
$ / shares
|
Dec. 30, 2017
kr / shares
|
|
Class of Stock [Line Items] | ||||
Preferred Stock Conversion Rate Number Of Common Stock Shares | $ 6.1627 | $ 6.1783 | ||
Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock purchase right, purchase rights granted per share of common stock | kr / shares | kr 1 | |||
Preferred stock purchase right, exercise price (USD per right) | $ 220 | |||
Preferred stock purchase right, expiration date | Mar. 10, 2016 |
CAPITAL STOCK - Additional Information, Stock Option Valuation Assumptions (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate intrinsic value | $ 18.3 | $ 72.7 | $ 35.9 |
Stock options vesting period | 4 years | ||
Fair value assumption for stock options, historical volatility expected life | 5 years 3 months | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options term | 10 years | ||
Stock options vesting period | 4 years |
CAPITAL STOCK - Additional Information, Stock Options (Detail) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 76.5 | $ 78.7 | $ 81.2 |
Cash received from exercise of stock options | 21.6 | ||
Tax benefit from exercise of stock options | 3.3 | ||
Aggregate intrinsic value | 18.3 | 72.7 | 35.9 |
Excess Tax Benefit from Share-based Compensation | 2.3 | 18.3 | 9.1 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 154.5 | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation, minimum retirement age for eligibility | 55 years | ||
Number of years of service to be eligible for employee retirement compensation | 10 years | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise Price Ranges, lower (USD per share) | $ 30.03 | ||
Exercise Price Ranges, upper (USD per share) | $ 168.78 | ||
Share-based Compensation | $ 23.9 | $ 21.3 | $ 22.8 |
Unrecognized pre-tax compensation expense | $ 53.3 | ||
Number of years of service to be eligible for employee retirement compensation | 1 year 9 months 18 days |
CAPITAL STOCK - Additional Information, Employee Stock Purchase Plan (Detail) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Weighted average exercise price (USD per share) | $ 130.88 | ||
Aggregate intrinsic value | $ 18.3 | $ 72.7 | $ 35.9 |
Stock-based compensation expense | $ 76.5 | $ 78.7 | $ 81.2 |
Employee Stock Purchase Plans | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Employee stock purchase plan, discounted purchase price percentage | 85.00% | ||
Weighted average exercise price (USD per share) | $ 135.30 | ||
Employee stock purchase plan, shares authorized for subscription | 6,000,000 | ||
Employee stock purchase plan, shares issued | 139,715 | 190,154 | 168,233 |
Employee stock purchase plan, price per share | $ 121.00 | $ 103.35 | $ 84.46 |
Aggregate intrinsic value | $ 3.1 | $ 8.7 | $ 4.8 |
Cash received related to ESPP purchases | $ 16.9 | ||
Expected term | 1 year | ||
Dividend yield | 1.60% | 1.80% | 2.10% |
Expected volatility | 16.00% | 21.00% | 20.00% |
Risk-free interest rate | 1.60% | 0.90% | 0.50% |
Weighted average fair value of purchase rights granted | $ 43.69 | $ 35.70 | $ 29.68 |
Stock-based compensation expense | $ 6.6 | $ 6.7 | $ 4.7 |
CAPITAL STOCK - Additional Information, Restricted Share Units and Awards (Detail) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options vesting period | 4 years | ||
Stock-based compensation expense | $ 76.5 | $ 78.7 | $ 81.2 |
Excess Tax Benefit from Share-based Compensation, Financing Activities | 2.3 | 18.3 | 9.1 |
Non Employee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 1.2 | $ 1.0 | $ 1.1 |
Restricted Share Units & Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options vesting period | 4 years | ||
Restricted stock units and awards, granted (in shares) | 413,838 | 304,976 | 445,155 |
Weighted average grant date fair value, granted (USD per share) | $ 133.90 | $ 160.04 | $ 118.20 |
Stock-based compensation expense | $ 40.1 | $ 31.7 | $ 32.6 |
Stock-based compensation, tax benefit | 10.1 | ||
Excess Tax Benefit from Share-based Compensation, Financing Activities | 1.8 | 4.9 | 2.4 |
Unrecognized pre-tax compensation expense | $ 93.0 | ||
Unrecognized pre-tax compensation expense, weighted average recognition period | 2 years | ||
Total fair value of shares vested | $ 46.8 | 46.6 | 37.0 |
Employee Stock Purchase Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 6.6 | $ 6.7 | $ 4.7 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 1 year |
CAPITAL STOCK - Additional Information, Long-Term Performance Awards (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award performance period | 3 years | ||
Earnings per share and return on capital employed as percentage of share based payment | 75.00% | ||
Market based element as percentage of share based payment | 25.00% | ||
Share-based Compensation | $ 76.5 | $ 78.7 | $ 81.2 |
Long-Term Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 4.7 | $ 18.0 | $ 20.0 |
CAPITAL STOCK - Additional Information, Other Equity Arrangements (Detail) - USD ($) |
1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 17, 2016 |
Feb. 08, 2016 |
Feb. 01, 2016 |
Mar. 31, 2018 |
Nov. 30, 2016 |
Dec. 31, 2013 |
Sep. 29, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 30, 2017 |
Jul. 01, 2017 |
Dec. 31, 2016 |
Apr. 04, 2015 |
Sep. 28, 2018 |
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
Dec. 28, 2013 |
Sep. 30, 2017 |
May 17, 2017 |
May 11, 2017 |
Dec. 24, 2015 |
|
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Derivative, Forward Interest Rate | 5.375% | |||||||||||||||||||||
Option Indexed to Issuer's Equity, Strike Price | $ 161.86 | $ 162.27 | $ 161.86 | |||||||||||||||||||
Purchase of common stock for treasury | $ 230,900,000 | $ 124,200,000 | $ 300,000,000 | $ 200,000,000 | $ 326,100,000 | $ 527,100,000 | $ 28,700,000 | $ 374,100,000 | ||||||||||||||
Option indexed to issuer's equity, number of call options purchased | 3,200,000 | 4,600,000 | ||||||||||||||||||||
Option Indexed to Issuer's Equity, Settlement Alternatives, Shares, at Fair Value | 293,142 | 711,376 | 911,077 | 711,376 | ||||||||||||||||||
Purchase Of Call Options | $ 9,700,000 | $ 57,300,000 | $ 25,100,000 | $ 57,300,000 | $ 25,100,000 | |||||||||||||||||
Number of net-share settled options exercised (in shares) | 267,378 | |||||||||||||||||||||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | $ 1,000 | ||||||||||||||||||||
Preferred Stock Conversion Rate Number Of Common Stock Shares | $ 6.1627 | $ 6.1783 | ||||||||||||||||||||
equity unit proceeds | $ 726,000,000 | |||||||||||||||||||||
Preferred Stock, Value, Issued | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | $ 632,500,000 | ||||||||||||||||||
Common Stock, Shares, Issued | 3,504,165 | 176,902,738 | 176,902,738 | 176,902,738 | ||||||||||||||||||
Treasury Stock Acquired, Average Cost Per Share | $ 94.34 | $ 94.34 | $ 96.46 | |||||||||||||||||||
Treasury Stock, Shares, Acquired | 2,446,287 | 1,316,858 | 2,086,792 | 1,399,732 | 3,381,162 | 3,940,087 | ||||||||||||||||
Common Stock, Par or Stated Value Per Share | $ 2.5 | $ 2.5 | $ 2.5 | |||||||||||||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 3,504,165 | 0.7259 | 0.7241 | 418,234 | ||||||||||||||||||
Stock Issued During Period, Value, Treasury Stock Reissued | $ 98.45 | $ 98.45 | $ 38,500,000 | $ 90,800,000 | $ 407,000,000 | |||||||||||||||||
Stock Exercise Price Per Share | $ 117.84 | $ 117.84 | ||||||||||||||||||||
Stock Exercise Price Per Share Percentage Greater Than Closing Price | $ 0.40 | |||||||||||||||||||||
equity units issued | 7,500,000 | |||||||||||||||||||||
Equity Unit | $ 750,000,000 | |||||||||||||||||||||
Shares Issued, Price Per Share | $ 100 | $ 137.76 | $ 138.10 | |||||||||||||||||||
Forward Contract Indexed to Issuer's Equity, Forward Rate Per Share | $ 100 | $ 100 | $ 100 | |||||||||||||||||||
Cash Settlement on Forward Stock Purchase Contract | $ 345,000,000 | $ 0 | $ 0 | $ 147,400,000 | ||||||||||||||||||
Forward Contract Indexed to Issuer's Equity, Shares | 5,400,000 | |||||||||||||||||||||
Preferred Stock, Shares Issued | 750,000 | |||||||||||||||||||||
Preferred Stock, Liquidation Preference, Value | $ 750,000,000 | |||||||||||||||||||||
Accretion Expense | $ 1,300,000 | |||||||||||||||||||||
Forward Contract Indexed to Issuer's Equity, Settlement Alternatives, Cash, at Fair Value | 58,800,000 | $ 117,100,000 | ||||||||||||||||||||
Option Indexed to Issuer's Equity, Settlement Alternatives, Cash, at Fair Value | $ 0 | $ 8,800,000 | ||||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Option Indexed to Issuer's Equity, Strike Price | $ 203.92 | $ 179.53 | $ 203.83 | $ 179.08 | ||||||||||||||||||
Stock Exercise Price Per Share | 112.91 | |||||||||||||||||||||
Minimum | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Option Indexed to Issuer's Equity, Strike Price | $ 156.86 | $ 162.27 | $ 156.79 | $ 161.86 | ||||||||||||||||||
Stock Exercise Price Per Share | 98.80 | |||||||||||||||||||||
Call Option [Member] | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Call option, average price | $ 17.96 | $ 5.43 | $ 2.77 | |||||||||||||||||||
2020 Purchase Contract [Member] | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Cash Settlement on Forward Stock Purchase Contract | $ 750,000,000 | |||||||||||||||||||||
Treasury Stock [Member] | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 2,900,000 | |||||||||||||||||||||
Common Stock | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 1.0157 | 1.0157 | ||||||||||||||||||||
Common Stock | Maximum [Member] | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Purchase of common stock for treasury | $ 80.65 | |||||||||||||||||||||
Common Stock | Minimum | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Purchase of common stock for treasury | $ 98.80 | |||||||||||||||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 1.0122 | 1.0122 | 1.0122 | |||||||||||||||||||
Convertible Preferred Stock [Member] | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Conversion of Stock, Shares Issued | 3,500,000.0 | |||||||||||||||||||||
Convertible Preferred Stock [Member] | Maximum [Member] | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Convertible preferred stock, conversion rate (USD per share) | 1.2399 | 1.2399 | ||||||||||||||||||||
Notes 2 Point 25 Percent due 2018 [Member] | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Long-term debt, including current maturities | $ 345,000,000 | $ 345,000,000 | ||||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion | 3,450,000 | |||||||||||||||||||||
Common Stock, Par or Stated Value Per Share | $ 100 | $ 100 | ||||||||||||||||||||
Cash Settlement on Forward Stock Purchase Contract | $ 345,000,000 | |||||||||||||||||||||
Call Option [Member] | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Option indexed to issuer's equity, number of call options purchased | 3,100,000.0 | 9,100,000.0 | 12,200,000.0 | 12,200,000.0 | ||||||||||||||||||
Option indexed to issuer's equity, premium amount | $ 73,500,000 | |||||||||||||||||||||
Option indexed to issuer's equity, average premium price per share (USD per share) | $ 6.03 | |||||||||||||||||||||
Option indexed to issuer's equity, average lower strike price (USD per share) | 86.07 | |||||||||||||||||||||
Option indexed to issuer's equity, average upper strike price (USD per share) | $ 106.56 |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Accumulated Other Comprehensive Income (Loss) [Abstract] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (1,814.3) | $ (1,589.1) | $ (1,921.6) |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in AOCI (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (1,814.3) | $ (1,589.1) | $ (1,921.6) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (241.1) | 298.5 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 15.9 | 26.7 | |
Other Comprehensive Income (Loss), Net of Tax | (225.2) | 332.5 | (227.4) |
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,481.2) | (1,108.2) | (1,586.7) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (373.0) | 473.8 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.0 | 0.0 | |
Other Comprehensive Income (Loss), Net of Tax | (373.0) | 478.5 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (26.8) | (112.6) | (46.3) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 70.4 | (71.0) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 15.4 | 4.7 | |
Other Comprehensive Income (Loss), Net of Tax | 85.8 | (66.3) | |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 63.3 | 3.4 | 88.6 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 71.2 | (85.2) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (11.3) | 0.0 | |
Other Comprehensive Income (Loss), Net of Tax | 59.9 | (85.2) | |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (369.6) | (371.7) | $ (377.2) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (9.7) | (19.1) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 11.8 | 22.0 | |
Other Comprehensive Income (Loss), Net of Tax | 2.1 | 5.5 | |
Disposal Group, Not Discontinued Operations [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (7.3) | ||
Disposal Group, Not Discontinued Operations [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.0 | ||
Disposal Group, Not Discontinued Operations [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.0 | ||
Disposal Group, Not Discontinued Operations [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2.6 | ||
Disposal Group, Not Discontinued Operations [Member] | Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (4.7) | ||
Adjustments for New Accounting Pronouncement [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,585.9) | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Selling, General and Administrative Expenses [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | $ (14.8) | (16.2) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Selling, General and Administrative Expenses [Member] | Adjustments for New Accounting Pronouncement [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | 6.5 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cost of Sales | Adjustments for New Accounting Pronouncement [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | $ 9.7 |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Reclassifications out of AOCI (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income Tax Expense (Benefit) | $ 416.3 | $ 300.9 | $ 261.7 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (33.2) | (6.7) | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income Tax Expense (Benefit) | 17.8 | 2.0 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (15.4) | (4.7) | |
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income Tax Expense (Benefit) | (3.7) | (9.8) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, after Tax | (11.8) | (22.0) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | (15.5) | (31.8) | |
Net Investment Hedging | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income Tax Expense (Benefit) | 3.7 | 0.0 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 11.3 | 0.0 | |
Selling, General and Administrative Expenses [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | 14.8 | 16.2 | |
Pension Costs [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | 0.0 | (12.2) | |
Cost of Sales | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (17.9) | 8.4 | |
Interest Expense [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (15.3) | (15.1) | |
Other Expense [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 15.0 | 0.0 | |
Other Expense [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | $ (0.7) | (3.4) | |
Adjustments for New Accounting Pronouncement [Member] | Selling, General and Administrative Expenses [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | (6.5) | ||
Adjustments for New Accounting Pronouncement [Member] | Cost of Sales | Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | $ (9.7) |
EMPLOYEE BENEFIT PLANS - Expense for Defined Contribution Plans Aside from ESOP Plans (Detail) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018
USD ($)
employee
shares
|
Dec. 30, 2017
USD ($)
shares
|
Dec. 31, 2016
USD ($)
shares
|
|
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Employee Benefits and Share-based Compensation | $ 0.7 | $ 4.3 | |
Employee Stock Ownership Plan (ESOP), Gain (Loss) on Transactions in Deferred Shares | (0.4) | $ (1.3) | (3.1) |
Defined Contribution Plan, Employer Discretionary Contribution Amount | 7.0 | 4.8 | 7.9 |
Multi-employer plan expense | 7.3 | 7.2 | 5.1 |
Other defined contribution plan expense | $ 12.9 | $ 27.5 | $ 15.4 |
Employee Stock Ownership Plan (ESOP), Shares in ESOP | shares | 207,049 | 133,694 | 219,492 |
Employee Stock Ownership Plan (ESOP), Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Employee Stock Ownership Plan (ESOP), Number of Allocated Shares | shares | 14,973,185 | ||
Stock Issued During Period, Shares, Employee Stock Ownership Plan | shares | 2,186,499 | ||
Employee Stock Ownership Plan (ESOP), Number of Suspense Shares | shares | 568,172 | ||
Defined Contribution Plan Employer Contributions Percentage Match Of Eligible Compensation | 7.00% | ||
Employee Stock Ownership Plan (ESOP), Dividends Paid to ESOP | $ 7.7 | $ 8.4 | $ 9.0 |
Employee Stock Ownership Plan (ESOP), Interest Payments from ESOP | $ 1.6 | 2.2 | 3.1 |
Employee Stock Ownership Plan (ESOP), Number of Committed-to-be-Released Shares | shares | 110,670 | ||
Employee Stock Ownership Plan (ESOP), Cash Contributions to ESOP | $ 2.3 | 1.8 | 4.2 |
Group 1 [Member] | Employee Stock Ownership Plan (ESOP), Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Number Of Employees Included In Plan | employee | 9,700 | ||
Domestic Plan [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | $ 1.1 | 1.1 | 5.2 |
Defined Benefit Plan, Amortization of Gain (Loss) | (7.8) | (8.3) | (7.1) |
Foreign Plan [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (1.3) | (1.2) | 0.3 |
Defined Benefit Plan, Amortization of Gain (Loss) | $ (8.5) | $ (9.4) | $ (5.9) |
Maximum [Member] | Employee Stock Ownership Plan (ESOP), Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Defined Contribution Plan Employer Contributions Percentage Match Of Eligible Compensation | 25.00% | ||
Maximum [Member] | Group 1 [Member] | Employee Stock Ownership Plan (ESOP), Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% | ||
Minimum | Group 1 [Member] | Employee Stock Ownership Plan (ESOP), Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 2.00% |
EMPLOYEE BENEFIT PLANS - Net Periodic Pension Expense (Detail) $ in Millions |
12 Months Ended |
---|---|
Dec. 29, 2018
USD ($)
| |
Defined Benefit Plan Disclosure [Line Items] | |
Settlement / curtailment loss (gain) | $ 0.7 |
EMPLOYEE BENEFIT PLANS - Net Periodic Post-Retirement Benefit Expense (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Funded Percentage | 78.00% | 79.00% | 77.00% |
Settlement / curtailment loss (gain) | $ 0.7 | ||
Other Postretirement Benefit Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.5 | $ 0.6 | $ 0.6 |
Interest cost | 1.6 | 1.7 | 1.7 |
Prior service credit amortization | 1.3 | 1.4 | 1.2 |
Net periodic pension expense | 0.8 | 0.9 | 1.1 |
Domestic Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 7.5 | 8.7 | 9.4 |
Interest cost | 42.8 | 43.2 | 45.3 |
Prior service credit amortization | (1.1) | (1.1) | (5.2) |
Settlement / curtailment loss (gain) | 0.0 | 2.9 | 0.0 |
Net periodic pension expense | (9.5) | (0.2) | (0.9) |
Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 15.2 | 13.7 | 12.5 |
Interest cost | 28.6 | 29.1 | 37.0 |
Prior service credit amortization | 1.3 | 1.2 | (0.3) |
Settlement / curtailment loss (gain) | 0.7 | 12.7 | 0.7 |
Net periodic pension expense | $ 5.2 | $ 18.2 | $ 11.9 |
EMPLOYEE BENEFIT PLANS - Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Detail) $ in Millions |
12 Months Ended |
---|---|
Dec. 29, 2018
USD ($)
| |
Retirement Benefits [Abstract] | |
Current year actuarial loss | $ 10.6 |
Amortization of actuarial loss | (14.8) |
Prior service cost from plan amendments | 16.3 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | (0.7) |
Currency / other | (14.8) |
Total loss recognized in other comprehensive income (pre-tax) | $ (3.4) |
EMPLOYEE BENEFIT PLANS - Changes in Pension and Other Post-Retirement Benefit Obligations, Fair Value Of Plan Assets, as well as Amounts Recognized in the Consolidated Balance Sheets (Detail) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Amounts recognized in the Consolidated Balance Sheets | |||
Non-current benefit liability | $ (595.4) | $ (629.9) | |
Accumulated other comprehensive loss (pre-tax): | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | (0.7) | ||
Other Postretirement Benefit Plans, Defined Benefit | |||
Change in benefit obligation | |||
Benefit obligation at end of prior year | 52.3 | 54.2 | |
Service cost | 0.5 | 0.6 | $ 0.6 |
Interest cost | 1.6 | 1.7 | 1.7 |
Settlements/curtailments | 0.0 | 0.0 | |
Actuarial (gain) loss | (6.2) | (2.1) | |
Plan amendments | 0.1 | 0.0 | |
Foreign currency exchange rates | (1.0) | 0.7 | |
Participant contributions | 0.0 | 0.0 | |
Acquisitions, divestitures and other | 1.9 | 2.1 | |
Benefits paid | (4.4) | (4.9) | |
Benefit obligation at end of year | 44.8 | 52.3 | 54.2 |
Change in plan assets | |||
Fair value of plan assets at end of prior year | 0.0 | 0.0 | |
Actual return on plan assets | 0.0 | 0.0 | |
Employer contributions | 4.4 | 4.9 | |
Settlements | 0.0 | 0.0 | |
Foreign currency exchange rate changes | 0.0 | 0.0 | |
Acquisitions, divestitures and other | 0.0 | 0.0 | |
Fair value of plan assets at end of plan year | 0.0 | 0.0 | 0.0 |
Net liability recognized | (44.8) | (52.3) | |
Unrecognized prior service cost (credit) | 3.4 | 4.8 | |
Unrecognized net actuarial loss | (7.6) | (1.7) | |
Net amount recognized | (55.8) | (58.8) | |
Amounts recognized in the Consolidated Balance Sheets | |||
Prepaid benefit cost (non-current) | 0.0 | 0.0 | |
Current benefit liability | (4.8) | (5.2) | |
Non-current benefit liability | (40.0) | (47.1) | |
Net liability recognized | (44.8) | (52.3) | |
Accumulated other comprehensive loss (pre-tax): | |||
Prior service cost (credit) | (3.4) | (4.8) | |
Actuarial loss | (7.6) | (1.7) | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax, Total | (11.0) | (6.5) | |
Net amount recognized | (55.8) | (58.8) | |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (1.3) | (1.4) | (1.2) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 0.8 | 0.9 | 1.1 |
Domestic Plan [Member] | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Amortization of Gain (Loss) | (7.8) | (8.3) | (7.1) |
Change in benefit obligation | |||
Benefit obligation at end of prior year | 1,365.3 | 1,359.0 | |
Service cost | 7.5 | 8.7 | 9.4 |
Interest cost | 42.8 | 43.2 | 45.3 |
Settlements/curtailments | 0.0 | (16.7) | |
Actuarial (gain) loss | (106.2) | (98.1) | |
Plan amendments | 0.2 | 0.5 | |
Foreign currency exchange rates | 0.0 | 0.0 | |
Participant contributions | 0.0 | 0.0 | |
Acquisitions, divestitures and other | 34.0 | 7.0 | |
Benefits paid | (82.7) | (120.5) | |
Benefit obligation at end of year | 1,260.9 | 1,365.3 | 1,359.0 |
Change in plan assets | |||
Fair value of plan assets at end of prior year | 1,114.1 | 1,067.1 | |
Actual return on plan assets | (52.9) | 153.5 | |
Employer contributions | 19.4 | 37.6 | |
Settlements | 0.0 | (16.7) | |
Foreign currency exchange rate changes | 0.0 | 0.0 | |
Acquisitions, divestitures and other | 22.8 | (6.9) | |
Fair value of plan assets at end of plan year | 1,020.7 | 1,114.1 | 1,067.1 |
Net liability recognized | (240.2) | (251.2) | |
Unrecognized prior service cost (credit) | (4.3) | (5.2) | |
Unrecognized net actuarial loss | 272.0 | 264.9 | |
Net amount recognized | 36.1 | 18.9 | |
Amounts recognized in the Consolidated Balance Sheets | |||
Prepaid benefit cost (non-current) | 0.0 | 0.0 | |
Current benefit liability | (7.7) | (8.2) | |
Non-current benefit liability | (232.5) | (243.0) | |
Net liability recognized | (240.2) | (251.2) | |
Accumulated other comprehensive loss (pre-tax): | |||
Prior service cost (credit) | 4.3 | 5.2 | |
Actuarial loss | 272.0 | 264.9 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax, Total | 276.3 | 270.1 | |
Net amount recognized | 36.1 | 18.9 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 68.7 | 64.4 | 67.9 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 1.1 | 1.1 | 5.2 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | 0.0 | (2.9) | 0.0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (9.5) | (0.2) | (0.9) |
Foreign Plan [Member] | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Defined Benefit Plan, Amortization of Gain (Loss) | (8.5) | (9.4) | (5.9) |
Change in benefit obligation | |||
Benefit obligation at end of prior year | 1,446.1 | 1,359.8 | |
Service cost | 15.2 | 13.7 | 12.5 |
Interest cost | 28.6 | 29.1 | 37.0 |
Settlements/curtailments | (4.3) | (35.9) | |
Actuarial (gain) loss | 64.1 | 11.4 | |
Plan amendments | 16.0 | 0.0 | |
Foreign currency exchange rates | (77.0) | 136.0 | |
Participant contributions | 0.3 | 0.3 | |
Acquisitions, divestitures and other | 3.4 | 11.6 | |
Benefits paid | (58.9) | (56.7) | |
Benefit obligation at end of year | 1,305.3 | 1,446.1 | 1,359.8 |
Change in plan assets | |||
Fair value of plan assets at end of prior year | 1,099.2 | 1,015.3 | |
Actual return on plan assets | (18.6) | 63.5 | |
Employer contributions | 20.9 | 24.0 | |
Settlements | (4.2) | (35.9) | |
Foreign currency exchange rate changes | (61.5) | 96.4 | |
Acquisitions, divestitures and other | (2.9) | (7.7) | |
Fair value of plan assets at end of plan year | 974.3 | 1,099.2 | 1,015.3 |
Net liability recognized | (331.0) | (346.9) | |
Unrecognized prior service cost (credit) | 18.2 | 37.0 | |
Unrecognized net actuarial loss | 270.8 | 294.7 | |
Net amount recognized | (78.4) | (89.2) | |
Amounts recognized in the Consolidated Balance Sheets | |||
Prepaid benefit cost (non-current) | 1.0 | 1.8 | |
Current benefit liability | (9.1) | (8.9) | |
Non-current benefit liability | (322.9) | (339.8) | |
Net liability recognized | (331.0) | (346.9) | |
Accumulated other comprehensive loss (pre-tax): | |||
Prior service cost (credit) | (18.2) | (37.0) | |
Actuarial loss | 270.8 | 294.7 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax, Total | 252.6 | 257.7 | |
Net amount recognized | (78.4) | (89.2) | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 46.5 | 45.5 | 44.5 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (1.3) | (1.2) | 0.3 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | (0.7) | (12.7) | (0.7) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 5.2 | $ 18.2 | $ 11.9 |
Employee Stock Ownership Plan (ESOP), Plan | |||
Schedule of Pension and Other Postretirment Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Released In Period Weighted Average Grant Date Fair Value | $ 139.45 | $ 138.60 | $ 103.88 |
Current active plan [Member] | Domestic Plan [Member] | |||
Accumulated other comprehensive loss (pre-tax): | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | $ (2.9) | ||
Current active plan [Member] | Foreign Plan [Member] | |||
Accumulated other comprehensive loss (pre-tax): | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | $ 0.5 |
EMPLOYEE BENEFIT PLANS - Pension Plans in which Accumulated Benefit Obligations Exceed Plan Assets (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Dec. 30, 2017 |
---|---|---|
Pension Benefit, Non-U.S Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 1,275.7 | $ 1,415.9 |
Accumulated benefit obligation | 1,228.6 | 1,368.7 |
Fair value of plan assets | 945.0 | 1,068.5 |
Pension Benefit, U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 1,260.9 | 1,365.3 |
Accumulated benefit obligation | 1,257.6 | 1,358.4 |
Fair value of plan assets | $ 1,020.7 | $ 1,114.1 |
EMPLOYEE BENEFIT PLANS - Pension Plans in which Projected Benefit Obligations Exceed Plan Assets (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Dec. 30, 2017 |
---|---|---|
Pension Benefit, U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 1,260.9 | $ 1,365.3 |
Accumulated benefit obligation | 1,257.6 | 1,358.4 |
Fair value of plan assets | 1,020.7 | 1,114.1 |
Pension Benefit, Non-U.S Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 1,301.7 | 1,445.1 |
Accumulated benefit obligation | 1,252.7 | 1,395.1 |
Fair value of plan assets | $ 969.7 | $ 1,096.5 |
EMPLOYEE BENEFIT PLANS - Assumptions used in Valuing Pension and Post-Retirement Plan Obligations and Net Costs (Detail) |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Expected return on plan assets | 5.51% | ||
Domestic Plan [Member] | |||
Weighted-average assumptions used to determine benefit obligations at year end: | |||
Discount rate | 4.20% | 3.53% | 3.95% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Rate of compensation increase | 3.00% | 3.00% | 6.00% |
Expected return on plan assets | 6.25% | 6.25% | 6.50% |
Domestic Plan [Member] | service cost [Member] | |||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 3.72% | 4.10% | 4.32% |
Domestic Plan [Member] | Interest Expense [Member] | |||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 3.16% | 3.30% | 3.39% |
Foreign Plan [Member] | |||
Weighted-average assumptions used to determine benefit obligations at year end: | |||
Discount rate | 2.62% | 2.24% | 2.38% |
Rate of compensation increase | 3.44% | 3.45% | 3.63% |
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Rate of compensation increase | 3.45% | 3.63% | 3.24% |
Expected return on plan assets | 4.37% | 4.41% | 4.68% |
Foreign Plan [Member] | service cost [Member] | |||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 2.15% | 2.27% | 2.54% |
Foreign Plan [Member] | Interest Expense [Member] | |||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 2.20% | 2.31% | 2.94% |
Other Postretirement Benefit Plans, Defined Benefit | |||
Weighted-average assumptions used to determine benefit obligations at year end: | |||
Discount rate | 4.03% | 3.53% | 3.51% |
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Expected return on plan assets | 0.00% | 0.00% | 0.00% |
Other Postretirement Benefit Plans, Defined Benefit | service cost [Member] | |||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 5.11% | 4.53% | 4.27% |
Other Postretirement Benefit Plans, Defined Benefit | Interest Expense [Member] | |||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 3.77% | 2.93% | 2.94% |
EMPLOYEE BENEFIT PLANS - Asset Allocations by Asset Category and Level of Valuation Inputs with in Fair Value Hierarchy (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Funded Percentage | 78.00% | 79.00% | 77.00% |
Level 1 | Defined Benefit Pension | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | $ 487.7 | $ 448.1 | |
Level 1 | Defined Benefit Pension | Insurance contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Level 1 | Defined Benefit Pension | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Level 1 | Defined Benefit Pension | Cash and Cash Equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 113.6 | 19.5 | |
Level 1 | Defined Benefit Pension | Equity Securities | U.S. equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 83.4 | 103.5 | |
Level 1 | Defined Benefit Pension | Equity Securities | Foreign equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 85.2 | 111.8 | |
Level 1 | Defined Benefit Pension | Fixed Income Securities | Government securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 205.5 | 213.3 | |
Level 1 | Defined Benefit Pension | Fixed Income Securities | Corporate securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Level 2 | Defined Benefit Pension | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 1,507.3 | 1,765.2 | |
Level 2 | Defined Benefit Pension | Insurance contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 37.1 | 39.2 | |
Level 2 | Defined Benefit Pension | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 50.8 | 53.9 | |
Level 2 | Defined Benefit Pension | Cash and Cash Equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 25.9 | 22.5 | |
Level 2 | Defined Benefit Pension | Equity Securities | U.S. equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 165.3 | 239.3 | |
Level 2 | Defined Benefit Pension | Equity Securities | Foreign equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 134.8 | 217.5 | |
Level 2 | Defined Benefit Pension | Fixed Income Securities | Government securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 436.8 | 494.5 | |
Level 2 | Defined Benefit Pension | Fixed Income Securities | Corporate securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 656.6 | 698.3 | |
Fair Value | Defined Benefit Pension | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 1,995.0 | 2,213.3 | |
Fair Value | Defined Benefit Pension | Insurance contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 37.1 | 39.2 | |
Fair Value | Defined Benefit Pension | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 50.8 | 53.9 | |
Fair Value | Defined Benefit Pension | Cash and Cash Equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 139.5 | 42.0 | |
Fair Value | Defined Benefit Pension | Equity Securities | U.S. equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 248.7 | 342.8 | |
Fair Value | Defined Benefit Pension | Equity Securities | Foreign equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 220.0 | 329.3 | |
Fair Value | Defined Benefit Pension | Fixed Income Securities | Government securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 642.3 | 707.8 | |
Fair Value | Defined Benefit Pension | Fixed Income Securities | Corporate securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | $ 656.6 | $ 698.3 |
EMPLOYEE BENEFIT PLANS - Expected Future Benefit Payments (Detail) $ in Millions |
12 Months Ended |
---|---|
Dec. 29, 2018
USD ($)
| |
Retirement Benefits [Abstract] | |
Defined Benefit Plan, Expected Future Benefit Payments, ten Fiscal Years Thereafter | 10 years |
Total | $ 1,400.2 |
Year 1 | 136.1 |
Year 2 | 137.6 |
Year 3 | 139.3 |
Year 4 | 139.5 |
Year 5 | 141.4 |
Years 6-10 | $ 706.3 |
EMPLOYEE BENEFIT PLANS - Additional Information (Detail) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018
USD ($)
employee
$ / shares
shares
|
Dec. 30, 2017
USD ($)
$ / shares
shares
|
Dec. 31, 2016
USD ($)
$ / shares
shares
|
|
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 0.0 | $ 12.2 | $ 0.0 |
Allocations for benefits earned under the Cornerstone plan | 29.0 | 25.4 | 17.6 |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 7.0 | $ 4.8 | $ 7.9 |
Employee Stock Ownership Plan (ESOP), Shares in ESOP | shares | 207,049 | 133,694 | 219,492 |
Net income (expense) from ESOP activities | $ 0.4 | $ 1.3 | $ 3.1 |
Defined benefit plans amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit costs | 15.3 | ||
Accumulated benefit obligation for defined benefit pension plans | $ 2,513.0 | 2,754.0 | |
Weighted-average long-term rate of return assumption percentage used in determination of net periodic benefit expense | 5.51% | ||
Percentage of pension liabilities invested in fixed income securities | 50.00% | ||
Defined Benefit Plan Target Allocation Percentage Of Assets equity Securities Range Minimum | 20.00% | ||
Defined Benefit Plan Target Allocation Percentage Of Assets equity Securities Range Maximum | 40.00% | ||
Target allocations in fixed income securities minimum range | 50.00% | ||
Target allocations in fixed income securities maximum range | 70.00% | ||
Target allocations in other securities range, maximum | 10.00% | ||
Expected pension and other post retirement benefit plans | $ 44.0 | ||
Assumed health care cost trend rate for next year | 6.70% | ||
Assumed ultimate trend rate for health care cost | 4.60% | ||
Medical and dental benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of employees covered by benefit plans | employee | 15,000 | ||
Employee Defined Contribution Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer contribution | $ 28.0 | $ 24.8 | $ 21.9 |
Foreign | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employees covered by pension plan | employee | 15,500 | ||
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Impact of 1 percentage point change in assumed health care cost trend rate on post-retirement benefit obligation | $ 1.4 | ||
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Impact of 1 percentage point change in assumed health care cost trend rate on post-retirement benefit obligation | $ 1.6 | ||
Employee Stock Ownership Plan (ESOP), Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit employer matches participant contributions percentage | 7.00% | ||
ESOP, average fair value of shares released | $ / shares | $ 139.45 | $ 138.60 | $ 103.88 |
Dividends paid on the shares used to pay internal loan debt service | $ 7.7 | $ 8.4 | $ 9.0 |
Interest costs incurred by ESOP | $ 1.6 | 2.2 | 3.1 |
Number of ESOP shares allocated to participant accounts | shares | 14,973,185 | ||
Number of ESOP shares allocated to participant accounts held | shares | 2,186,499 | ||
Number of ESOP unallocated shares | shares | 568,172 | ||
Employee Stock Ownership Plan (ESOP), Number of Committed-to-be-Released Shares | shares | 110,670 | ||
Employer cash contributions | $ 2.3 | $ 1.8 | $ 4.2 |
Employee Stock Ownership Plan (ESOP), Plan | Core Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of employees covered by benefit plans | employee | 9,700 | ||
Employee Stock Ownership Plan (ESOP), Plan | Minimum | Core Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer contribution (percent) | 2.00% | ||
Employee Stock Ownership Plan (ESOP), Plan | Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit employer matches participant contributions percentage | 25.00% | ||
Employee Stock Ownership Plan (ESOP), Plan | Maximum [Member] | Core Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer contribution (percent) | 6.00% |
FAIR VALUE MEASUREMENTS - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis for Each of Hierarchy Levels (Detail) - USD ($) $ in Millions |
Dec. 29, 2018 |
Dec. 30, 2017 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Business Combination, Contingent Consideration, Liability, Noncurrent | $ 169.2 | $ 114.0 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
non derivative hedging instrument | 228.9 | |
Business Combination, Contingent Consideration, Liability, Noncurrent | 169.2 | 114.0 |
Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0.0 | 0.0 |
Derivatives liabilities | 0.0 | 0.0 |
non derivative hedging instrument | 0.0 | |
Business Combination, Contingent Consideration, Liability, Noncurrent | 0.0 | 0.0 |
Money market fund | 4.8 | 11.6 |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 32.9 | 18.0 |
Derivatives liabilities | 21.3 | 114.0 |
non derivative hedging instrument | 228.9 | 0.0 |
Business Combination, Contingent Consideration, Liability, Noncurrent | 0.0 | 0.0 |
Money market fund | 0.0 | 0.0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0.0 | 0.0 |
Derivatives liabilities | 0.0 | 0.0 |
non derivative hedging instrument | 0.0 | |
Business Combination, Contingent Consideration, Liability, Noncurrent | 169.2 | 114.0 |
Money market fund | 0.0 | 0.0 |
Reported Value Measurement [Member] | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 32.9 | 18.0 |
Derivatives liabilities | 21.3 | 114.0 |
Money market fund | $ 4.8 | $ 11.6 |
FAIR VALUE MEASUREMENTS - Summary of Company's Financial Instruments Carrying and Fair Values (Detail) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 29, 2018 |
Mar. 01, 2032 |
Feb. 01, 2032 |
Dec. 30, 2017 |
|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investments, Fair Value Disclosure | $ 7.7 | $ 7.9 | ||
Long-term Debt, Fair Value | 3,905.4 | 3,991.0 | ||
Business Combination, Contingent Consideration, Liability, Noncurrent | 169.2 | 114.0 | ||
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 10 Percent Adverse Change in Discount Rate | $ 8.0 | |||
Deferred Purchase Price Receivable Collection Period | 30 days | |||
Total Carrying Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investments, Fair Value Disclosure | $ 7.6 | 7.6 | ||
Long-term debt, including current portion | 3,822.3 | $ 3,805.7 | ||
Scenario, Forecast [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Business Combination, Contingent Consideration Percent of Sales, Liability, Noncurrent | 3.00% | |||
Business Combination, Contingent Consideration, Liability, Noncurrent | $ 134.5 | |||
Minimum | Scenario, Forecast [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Business Combination, Contingent Consideration Percent of Sales, Liability, Noncurrent | 2.50% | |||
Maximum [Member] | Scenario, Forecast [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Business Combination, Contingent Consideration Percent of Sales, Liability, Noncurrent | 3.50% | |||
Selling, General and Administrative Expenses [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Liabilities, Fair Value Adjustment | 35.0 | |||
Goodwill [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Liabilities, Fair Value Adjustment | $ 20.0 |
OTHER COSTS AND EXPENSES - Additional Information (Detail) - USD ($) |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2018 |
Sep. 29, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 30, 2017 |
Sep. 30, 2017 |
Jul. 01, 2017 |
Apr. 01, 2017 |
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Business Acquisition [Line Items] | |||||||||||
Research and development costs | $ 275,800,000 | $ 252,300,000 | $ 204,400,000 | ||||||||
Business Combination, Acquisition Related Costs | $ 202,000,000 | $ 85,000,000 | $ 127,000,000 | $ 25,000,000 | $ 27,000,000 | $ 33,000,000 | $ 43,000,000 | $ 211,000,000 | 450,000,000 | 0 | |
Accrual for Environmental Loss Contingencies | $ 58,100,000 | $ 22,500,000 | 58,100,000 | 22,500,000 | |||||||
Other Expense [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Acquisition Related Costs | $ 30,400,000 | $ 58,200,000 | |||||||||
Centredale Site [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Accrual for Environmental Loss Contingencies | $ 77,700,000 |
RESTRUCTURING AND ASSET IMPAIRMENTS - Summary of Restructuring Reserve Activity (Detail) $ in Millions |
12 Months Ended |
---|---|
Dec. 29, 2018
USD ($)
| |
Restructuring Reserve | |
Reserve, Beginning Balance | $ 23.2 |
Net Additions | 160.3 |
Usage | (73.5) |
Currency | (1.2) |
Reserve, Ending Balance | 108.8 |
Facility closures | |
Restructuring Reserve | |
Reserve, Beginning Balance | 3.2 |
Net Additions | 9.3 |
Usage | (9.4) |
Currency | 0.0 |
Reserve, Ending Balance | 3.1 |
Employee Severance [Member] | |
Restructuring Reserve | |
Reserve, Beginning Balance | 20.0 |
Net Additions | 151.0 |
Usage | (64.1) |
Currency | (1.2) |
Reserve, Ending Balance | 105.7 |
2012 Actions | Series of Individually Immaterial Business Acquisitions | |
Restructuring Reserve | |
Net Additions | $ 160.3 |
RESTRUCTURING AND ASSET IMPAIRMENTS - Additional Information (Detail) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 29, 2018
USD ($)
employee
|
Dec. 30, 2017
USD ($)
|
|
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges and asset impairments recognized | $ 160.3 | |
Number Of Employees Included In Plan | employee | 4,184 | |
Restructuring reserves | $ 108.8 | $ 23.2 |
Construction and Do It Yourself | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges and asset impairments recognized | 80.0 | |
Securities Industry [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges and asset impairments recognized | 36.0 | |
Industrial Segment | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges and asset impairments recognized | 30.0 | |
Corporate [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges and asset impairments recognized | 14.0 | |
Acquisition | 2012 Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges and asset impairments recognized | 160.3 | |
Severance and related charges | 151.0 | |
Facility closure costs | $ 9.3 |
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS - Business Segments (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2018 |
Sep. 29, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 30, 2017 |
Sep. 30, 2017 |
Jul. 01, 2017 |
Apr. 01, 2017 |
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 3,634.7 | $ 3,494.8 | $ 3,643.6 | $ 3,209.3 | $ 3,464.2 | $ 3,359.4 | $ 3,286.7 | $ 2,856.3 | $ 13,982.4 | $ 12,966.6 | $ 11,593.5 |
Segment Profit | 1,882.2 | 1,996.5 | 1,826.4 | ||||||||
Corporate overhead | (202.8) | (217.4) | (190.9) | ||||||||
Other-net | (287.0) | (269.2) | (185.9) | ||||||||
Gain (Loss) on Disposition of Business | $ (13.7) | (0.8) | 264.1 | 0.0 | |||||||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 0.0 | (12.2) | 0.0 | ||||||||
Restructuring charges and asset impairments | (160.3) | (51.5) | (49.0) | ||||||||
Interest income | 68.7 | 40.1 | 23.2 | ||||||||
Interest expense | (277.9) | (222.6) | (194.5) | ||||||||
Earnings before income taxes | 1,022.1 | 1,527.8 | 1,229.3 | ||||||||
Capital and Software Expenditures | 492.1 | 442.4 | 347.0 | ||||||||
Depreciation and amortization of property, plant and equipment | 331.2 | 296.9 | 263.6 | ||||||||
Total Assets | (19,408.0) | (19,097.7) | (19,408.0) | (19,097.7) | (15,655.0) | ||||||
Construction and Do It Yourself | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 9,814.0 | 9,045.0 | 7,619.2 | ||||||||
Segment Profit | 1,393.1 | 1,438.9 | 1,258.4 | ||||||||
Capital and Software Expenditures | 353.7 | 327.2 | 227.3 | ||||||||
Depreciation And Amortization excluding Discontinued Operations | 300.1 | 271.9 | 203.0 | ||||||||
Securities Industry [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Capital and Software Expenditures | 42.6 | 39.0 | 38.6 | ||||||||
Depreciation And Amortization excluding Discontinued Operations | 80.5 | 81.4 | 98.2 | ||||||||
Total Segments excluding Non Op [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization of property, plant and equipment | 506.5 | 460.7 | 408.0 | ||||||||
Industrial Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Capital and Software Expenditures | 95.8 | 76.2 | 81.1 | ||||||||
Depreciation And Amortization excluding Discontinued Operations | 125.9 | 107.4 | 106.8 | ||||||||
Corporate Assets | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Assets | (748.7) | (592.9) | (748.7) | (592.9) | 108.2 | ||||||
Continuing Operations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Assets | (20,156.7) | (19,690.6) | (20,156.7) | (19,690.6) | (15,023.4) | ||||||
Continuing Operations [Member] | Construction and Do It Yourself | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Assets | (13,122.6) | (12,870.3) | (13,122.6) | (12,870.3) | (8,524.9) | ||||||
Continuing Operations [Member] | Securities Industry [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 1,980.6 | 1,947.3 | 2,110.3 | ||||||||
Segment Profit | 169.3 | 211.7 | 267.9 | ||||||||
Total Assets | (3,413.6) | (3,407.0) | (3,413.6) | (3,407.0) | (3,139.2) | ||||||
Continuing Operations [Member] | Industrial Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 2,187.8 | 1,974.3 | 1,864.0 | ||||||||
Segment Profit | 319.8 | 345.9 | 300.1 | ||||||||
Total Assets | (3,620.5) | (3,413.3) | (3,620.5) | (3,413.3) | (3,359.3) | ||||||
Discontinued Operations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Assets | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.0 | $ (523.4) | ||||||
Home Depot [Member] | Construction and Do It Yourself | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage Of Net Sales | 14.00% | 13.00% | 14.00% |
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS - Geographic Areas (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2018 |
Sep. 29, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 30, 2017 |
Sep. 30, 2017 |
Jul. 01, 2017 |
Apr. 01, 2017 |
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | $ 3,634.7 | $ 3,494.8 | $ 3,643.6 | $ 3,209.3 | $ 3,464.2 | $ 3,359.4 | $ 3,286.7 | $ 2,856.3 | $ 13,982.4 | $ 12,966.6 | $ 11,593.5 |
Property, plant & equipment | 1,915.2 | 1,742.5 | 1,915.2 | 1,742.5 | 1,451.2 | ||||||
United States | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 7,700.3 | 7,025.7 | 6,280.8 | ||||||||
Property, plant & equipment | 1,018.3 | 850.2 | 1,018.3 | 850.2 | 663.4 | ||||||
Canada | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 628.3 | 583.3 | 519.8 | ||||||||
Property, plant & equipment | 25.5 | 30.0 | 25.5 | 30.0 | 29.3 | ||||||
Other Americas | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 801.5 | 790.7 | 650.4 | ||||||||
Property, plant & equipment | 112.7 | 111.2 | 112.7 | 111.2 | 95.8 | ||||||
FRANCE | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 627.8 | 623.8 | 595.1 | ||||||||
Property, plant & equipment | 63.9 | 65.1 | 63.9 | 65.1 | 57.5 | ||||||
Other Europe | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 2,989.9 | 2,791.1 | 2,457.7 | ||||||||
Property, plant & equipment | 356.9 | 378.0 | 356.9 | 378.0 | 322.3 | ||||||
Asia | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 1,234.6 | 1,152.0 | 1,089.7 | ||||||||
Property, plant & equipment | $ 337.9 | $ 308.0 | $ 337.9 | $ 308.0 | $ 282.9 |
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS - Additional Information (Detail) |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2018
USD ($)
|
Sep. 29, 2018
USD ($)
|
Jun. 30, 2018
USD ($)
|
Mar. 31, 2018
USD ($)
|
Dec. 30, 2017
USD ($)
|
Sep. 30, 2017
USD ($)
|
Jul. 01, 2017
USD ($)
|
Apr. 01, 2017
USD ($)
|
Dec. 29, 2018
USD ($)
Segment
|
Dec. 30, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 3,634,700,000 | $ 3,494,800,000 | $ 3,643,600,000 | $ 3,209,300,000 | $ 3,464,200,000 | $ 3,359,400,000 | $ 3,286,700,000 | $ 2,856,300,000 | $ 13,982,400,000 | $ 12,966,600,000 | $ 11,593,500,000 |
Deferred Revenue, Revenue Recognized | $ 89,300,000 | 76,300,000 | |||||||||
Number of reportable segments | Segment | 3 | ||||||||||
Construction and Do It Yourself | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 9,814,000,000 | $ 9,045,000,000 | $ 7,619,200,000 | ||||||||
Construction and Do It Yourself | Home Depot [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage Of Net Sales | 14.00% | 13.00% | 14.00% | ||||||||
Construction and Do It Yourself | Lowes | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage Of Net Sales | 17.00% | 16.00% | 15.00% | ||||||||
Continuing Operations [Member] | Industrial Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 2,187,800,000 | $ 1,974,300,000 | $ 1,864,000,000 | ||||||||
Deferred Revenue, Revenue Recognized | 0.119 | 0.134 | 0.127 | ||||||||
Continuing Operations [Member] | Securities Industry [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 1,980,600,000 | 1,947,300,000 | 2,110,300,000 | ||||||||
Deferred Revenue, Revenue Recognized | 0.449 | 0.481 | 0.415 | ||||||||
Infrastructure business [Member] | Continuing Operations [Member] | Industrial Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 421,200,000 | 420,000,000 | 375,000,000 | ||||||||
Engineered Fastening [Member] | Continuing Operations [Member] | Industrial Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 1,766,600,000 | $ 1,554,300,000 | $ 1,489,000,000 |
INCOME TAXES - Significant Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Valuation Allowance [Line Items] | |||
Income Tax Expense (Benefit) | $ 416.3 | $ 300.9 | $ 261.7 |
Tax Cuts and Jobs Act of 2017, Change in Tax Rate, Income Tax Expense (Benefit) | 252.5 | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (241.1) | 298.5 | |
Income Tax Reconciliation Change In Undistributed Earnings | 94.1 | $ 38.7 | |
Tax Cuts and Jobs Act of 2017 | 181.0 | 24.0 | |
Transition Tax | 450.1 | ||
Deferred tax liabilities: | |||
Depreciation | 128.5 | 98.4 | |
Amortization of intangibles | 672.8 | 668.0 | |
Deferred Tax Liabilities, Undistributed Foreign Earnings | 202.5 | 4.9 | |
Deferred revenue | 19.1 | 26.5 | |
Other | 54.8 | 62.2 | |
Total deferred tax liabilities | 1,077.7 | 860.0 | |
Deferred tax assets: | |||
Employee benefit plans | 222.1 | 256.4 | |
Doubtful accounts and other customer allowances | 14.7 | 16.3 | |
Basis differences in liabilities | 93.3 | 84.5 | |
Deferred Tax Assets Operating Loss And Capital Loss Carryforwards | 710.6 | 632.2 | |
Currency and derivatives | 11.6 | 48.5 | |
Other | 121.0 | 88.6 | |
Total deferred tax assets | 1,173.3 | 1,126.5 | |
Net Deferred Tax Asset (Liability) before Valuation Allowance | 95.6 | 266.5 | |
Valuation Allowance | (626.7) | (516.7) | |
Net Deferred Tax Liability after Valuation Allowance | (531.1) | (250.2) | |
Accumulated Translation Adjustment [Member] | |||
Valuation Allowance [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (373.0) | 473.8 | |
income tax provision [Member] | |||
Valuation Allowance [Line Items] | |||
Income Tax Reconciliation Change In Undistributed Earnings | 0.0 | ||
Tax Year 2017 [Member] | |||
Valuation Allowance [Line Items] | |||
Tax Cuts and Jobs Act of 2017 | 365.7 | ||
Domestic Tax Authority [Member] | |||
Valuation Allowance [Line Items] | |||
Income Tax Expense (Benefit) | $ 230.6 | ||
Tax Year 2017 [Member] | Settlement with Taxing Authority [Member] | |||
Valuation Allowance [Line Items] | |||
Tax Cuts and Jobs Act of 2017 | $ 460.7 |
INCOME TAXES - Classification of Deferred Taxes (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Undistributed Earnings of Foreign Subsidiaries | $ 4,800.0 | ||
Deferred Tax Liabilities, Undistributed Foreign Earnings | $ 19.1 | 26.5 | |
Income Tax Expense (Benefit) | 416.3 | 300.9 | $ 261.7 |
Income Tax Reconciliation Change In Undistributed Earnings | 94.1 | $ 38.7 | |
Valuation allowance | 626.7 | 516.7 | |
Deferred Tax Liabilities, Net, Noncurrent | 705.3 | 436.1 | |
income tax provision [Member] | |||
Income Tax Reconciliation Change In Undistributed Earnings | 0.0 | ||
Domestic Tax Authority [Member] | |||
Income Tax Expense (Benefit) | 230.6 | ||
Foreign Tax Authority [Member] | |||
Deferred Tax Liabilities, Undistributed Foreign Earnings | $ 217.7 | ||
Income Tax Expense (Benefit) | $ 188.3 |
INCOME TAXES - Income Tax Expense (Benefit) Attributable to Continuing Operations (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Income Tax Examination, Increase (Decrease) in Liability from Prior Year | $ 10.6 | ||
Deferred Tax Assets, Capital Loss Carryforwards | 21.3 | ||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 444.1 | $ 715.2 | $ 307.1 |
Valuation allowance | 626.7 | 516.7 | |
Undistributed Earnings, Basic | 5,500.0 | ||
Income Taxes Paid, Net | 339.4 | 273.6 | 233.3 |
Current: | |||
Federal | 25.4 | 590.6 | 84.8 |
Foreign | 175.0 | 224.6 | 191.5 |
State | 24.8 | 25.4 | 10.6 |
Total current | 225.2 | 840.6 | 286.9 |
Deferred: | |||
Federal | 29.7 | (513.0) | 18.7 |
Foreign | 132.7 | (33.0) | (26.1) |
State | 28.7 | 6.3 | (17.8) |
Total deferred | 191.1 | (103.0) | (25.7) |
Income taxes | 416.3 | 300.9 | 261.7 |
Income Tax Refund | 43.7 | 28.5 | 30.5 |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 578.0 | 812.6 | 922.2 |
Earnings before income taxes | 1,022.1 | 1,527.8 | 1,229.3 |
Tax Cuts and Jobs Act of 2017, Change in Tax Rate, Income Tax Expense (Benefit) | 252.5 | ||
Continuing Operations [Member] | |||
Deferred: | |||
Total deferred | 191.1 | $ (539.7) | $ (25.2) |
The Black & Decker Corporation | |||
Undistributed Earnings, Basic | $ 202.5 |
INCOME TAXES - Reconciliation of U.S. Federal Statutory Income Tax to Income Taxes on Continuing Operations (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Tax at statutory rate | $ 214.6 | $ 534.1 | $ 429.1 |
State income taxes, net of federal benefits | 24.7 | 13.3 | 12.5 |
Difference between foreign and federal income tax | (33.2) | (149.0) | (166.3) |
Tax accrual reserve | 4.5 | 64.4 | 32.0 |
Audit settlements | (5.2) | 16.5 | (10.5) |
NOL & Valuation Allowance related items | 5.1 | (5.4) | 38.9 |
Change in deferred tax liabilities on undistributed foreign earnings | (94.1) | (38.7) | |
Tax Provision Basis Difference for Businesses Held for Sale | 0.0 | (27.9) | (27.9) |
Income Tax Effects Allocated Directly to Equity, Employee Stock Options | (4.1) | (23.2) | 0.0 |
Effective Income Tax Rate Reconciliation, Disposition of Business, Amount | 0.0 | (47.3) | 0.0 |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 199.6 | 23.6 | 0.0 |
Other-net | 10.3 | (26.9) | (7.4) |
Income taxes on continuing operations | (416.3) | $ (300.9) | $ (261.7) |
income tax provision [Member] | |||
Change in deferred tax liabilities on undistributed foreign earnings | $ 0.0 |
INCOME TAXES - Components of Earnings from Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Income Tax Disclosure [Abstract] | |||
Income Tax Refund | $ 43.7 | $ 28.5 | $ 30.5 |
Earnings before income taxes | $ 1,022.1 | $ 1,527.8 | $ 1,229.3 |
INCOME TAXES - Summary of Activity Related to Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance | $ 626.7 | $ 516.7 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 397.0 | 368.7 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Balance at beginning of year | 387.8 | 309.8 | $ 283.1 |
Additions based on tax positions related to current year | 28.3 | 34.6 | 14.9 |
Additions based on tax positions related to prior years | 103.0 | 82.5 | 53.9 |
Reductions based on tax positions related to prior years | (91.5) | (4.2) | (34.2) |
Settlements | (2.5) | (0.3) | (5.4) |
Statute of limitations expirations | (18.8) | (34.6) | (13.3) |
Balance at end of year | 406.3 | 387.8 | 309.8 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 15.8 | 3.8 | 4.6 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 52.1 | $ 67.9 | $ 64.1 |
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
|
Operating Loss Carryforwards [Line Items] | ||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 21.9 | |
Valuation allowance | 626.7 | $ 516.7 |
Operating Loss Carryforwards | $ 2,600.0 |
COMMITMENTS AND GUARANTEES - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Guarantor Obligations [Line Items] | |||
Guarantee Obligations Maximum Potential Payment | $ 235.2 | ||
Carrying amount of guarantees recorded in the consolidated balance sheet | 7.6 | ||
Lease Obligations | |||
Guarantor Obligations [Line Items] | |||
Estimated asset fair value | 117.2 | ||
Guarantees on the residual values of leased properties | |||
Guarantor Obligations [Line Items] | |||
Guarantee Obligations Maximum Potential Payment | 99.6 | ||
Carrying amount of guarantees recorded in the consolidated balance sheet | 0.0 | ||
Standby letters of credit | |||
Guarantor Obligations [Line Items] | |||
Guarantee Obligations Maximum Potential Payment | 68.0 | ||
Carrying amount of guarantees recorded in the consolidated balance sheet | 0.0 | ||
Commercial customer financing arrangements | |||
Guarantor Obligations [Line Items] | |||
Guarantee Obligations Maximum Potential Payment | 67.6 | ||
Carrying amount of guarantees recorded in the consolidated balance sheet | 7.6 | ||
Noncancelable Lease Obligations | |||
Guarantor Obligations [Line Items] | |||
Sublease rentals | 2.2 | ||
Rent expenses under operating lease | $ 177.6 | $ 150.4 | $ 124.2 |
COMMITMENTS AND GUARANTEES - Summary of Future Commitements For Operating Lease Obligations (Detail) $ in Millions |
Dec. 29, 2018
USD ($)
|
---|---|
Schedule of Operating Leases [Line Items] | |
Total | $ 584.2 |
2013 | 167.1 |
2014 | 116.5 |
2015 | 87.1 |
2016 | 61.1 |
2017 | 40.6 |
Thereafter | 111.8 |
Operating lease obligations | |
Schedule of Operating Leases [Line Items] | |
Total | 532.4 |
2013 | 134.8 |
2014 | 107.4 |
2015 | 80.3 |
2016 | 57.9 |
2017 | 40.2 |
Thereafter | 111.8 |
Marketing and other commitments | |
Schedule of Operating Leases [Line Items] | |
Total | 51.8 |
2013 | 32.3 |
2014 | 9.1 |
2015 | 6.8 |
2016 | 3.2 |
2017 | 0.4 |
Thereafter | $ 0.0 |
COMMITMENTS AND GUARANTEES - Financial Guarantees (Detail) $ in Millions |
12 Months Ended |
---|---|
Dec. 29, 2018
USD ($)
| |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | $ 235.2 |
Carrying Amount of Liability | 7.6 |
Guarantees on the residual values of leased properties | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | 99.6 |
Carrying Amount of Liability | $ 0.0 |
Standby letters of credit | |
Guarantor Obligations [Line Items] | |
Term | P3Y |
Maximum Potential Payment | $ 68.0 |
Carrying Amount of Liability | $ 0.0 |
Commercial customer financing arrangements | |
Guarantor Obligations [Line Items] | |
Term | P6Y |
Maximum Potential Payment | $ 67.6 |
Carrying Amount of Liability | $ 7.6 |
Minimum | Guarantees on the residual values of leased properties | |
Guarantor Obligations [Line Items] | |
Term | P1Y |
Maximum [Member] | Guarantees on the residual values of leased properties | |
Guarantor Obligations [Line Items] | |
Term | P4Y |
COMMITMENTS AND GUARANTEES - Changes in Carrying Amount of Product and Service Warranties (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Summary of warranty liability activity | |||
Beginning balance | $ 108.5 | $ 103.4 | $ 105.4 |
Warranties and guarantees issued | 110.4 | 105.3 | 97.2 |
Warranty payments and currency | (116.8) | (100.2) | (99.2) |
Ending balance | $ 102.1 | $ 108.5 | $ 103.4 |
CONTINGENCIES - Additional Information (Detail) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Apr. 01, 2017
USD ($)
|
Dec. 29, 2018
USD ($)
sites
|
Jun. 30, 2018
USD ($)
|
Dec. 30, 2017
USD ($)
|
|
Commitments and Contingencies Disclosure [Line Items] | ||||
Superfund Sites | sites | 28 | |||
Reserve for environmental remediation costs | $ 58.1 | $ 22.5 | ||
Reserve for environmental loss contingencies, EPA funded amount | $ 12.4 | |||
Environmental remediation. Period construction of treatment facility to be maintained | 30 years | |||
Undiscounted environmental liability expected to be paid 2013 | $ 2.5 | |||
Accrual for Environmental Loss Contingencies, Undiscounted, Second Year | 3.0 | |||
Undiscounted environmental liability expected to be paid in 2015 | 3.0 | |||
Undiscounted environmental liability expected to be paid in 2016 | 3.0 | |||
Undiscounted environmental liability expected to be paid in 2017 | 3.0 | |||
Undiscounted environmental liability expected to be paid thereafter | 35.3 | |||
Leased Sites | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Discounted environmental liability | 39.4 | |||
Undiscounted environmental liability | 49.8 | |||
Property, Plant and Equipment, Other Types | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Environmental Remediation Expense | $ 17.1 | |||
Reserve for environmental remediation costs | 246.6 | $ 176.1 | ||
Reserve for environmental remediation costs, current | 58.1 | |||
Reserve for environmental remediation costs, noncurrent | 188.5 | |||
Reserve for environmental loss contingencies, obligation after EPA funding | 234.2 | |||
Centredale Site [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Reserve for environmental remediation costs | $ 77.7 | |||
Environmental Exit Costs, Anticipated Cost | $ 145.2 | |||
Minimum | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Environmental liability discount rate | 2.30% | |||
Minimum | Property, Plant and Equipment, Other Types | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Environmental Exit Costs, Anticipated Cost | $ 214.0 | |||
Maximum [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Environmental liability discount rate | 3.30% | |||
Maximum [Member] | Property, Plant and Equipment, Other Types | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Environmental Exit Costs, Anticipated Cost | $ 344.3 | |||
Cargo and Freight [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Loss Contingency Accrual | $ 50.8 |
DISCONTINUED OPERATIONS - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2017 |
Apr. 01, 2017 |
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
Jul. 01, 2017 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain (Loss) on Disposition of Business | $ (13.7) | $ (0.8) | $ 264.1 | $ 0.0 | ||
Gain (Loss) on Disposal of business, Net of Tax - NOT Discontinued operations | $ (264.1) | |||||
Income (Loss) from Individually Significant Component Disposed of or Held-for-sale, Excluding Discontinued Operations, before Income Tax | $ 7.0 | $ 50.0 | ||||
small business in Tools & Storage segment [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds (payments) from sales of businesses, net of cash sold | $ 0.5 | |||||
Proceeds (payments) from sales of businesses, net of cash sold | $ 25.6 | |||||
Small Business in Security Segment [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds (payments) from sales of businesses, net of cash sold | $ 717.1 |
SELECTED QUARTERLY FINANCIAL DATA SELECTED QUARTERLY FINANCIAL DATA- Additional Information (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2018 |
Sep. 29, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 30, 2017 |
Sep. 30, 2017 |
Jul. 01, 2017 |
Apr. 01, 2017 |
Dec. 29, 2018 |
Dec. 30, 2017 |
|
merger and acquisition related charges [Abstract] | ||||||||||
Tax Cuts and Jobs Act of 2017 | $ 181,000,000 | $ 24,000,000 | $ 181,000,000 | $ 24,000,000 | ||||||
Net Additions | 160,300,000 | |||||||||
Business Combination, Acquisition Related Costs | $ 202,000,000 | $ 85,000,000 | $ 127,000,000 | $ 25,000,000 | $ 27,000,000 | $ 33,000,000 | $ 43,000,000 | $ 211,000,000 | $ 450,000,000 | $ 0 |
SELECTED QUARTERLY FINANCIAL DATA SELECTED QUARTERLY FINANCIAL DATA (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 29, 2018 |
Sep. 29, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 30, 2017 |
Sep. 30, 2017 |
Jul. 01, 2017 |
Apr. 01, 2017 |
Dec. 29, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Quarterly Financial Data [Abstract] | |||||||||||
Net Sales | $ 3,634,700,000 | $ 3,494,800,000 | $ 3,643,600,000 | $ 3,209,300,000 | $ 3,464,200,000 | $ 3,359,400,000 | $ 3,286,700,000 | $ 2,856,300,000 | $ 13,982,400,000 | $ 12,966,600,000 | $ 11,593,500,000 |
Business Combination, Acquisition Related Costs | 202,000,000 | 85,000,000 | 127,000,000 | 25,000,000 | 27,000,000 | 33,000,000 | 43,000,000 | 211,000,000 | 450,000,000 | 0 | |
Business Combination, Acquisition Related Costs, Net of Tax | $ 415,000,000 | $ 66,000,000 | $ 98,000,000 | $ 43,000,000 | $ 53,000,000 | $ 24,000,000 | $ 29,000,000 | $ 197,000,000 | |||
Business Combination, Acquisition Related Costs, Diluted Earnings Per Share Impact | $ (2.77) | $ (0.43) | $ (0.64) | $ (0.28) | $ (0.34) | $ (0.16) | $ (0.20) | $ 1.30 | |||
Gross Profit | $ 1,159,900,000 | $ 1,238,400,000 | $ 1,287,100,000 | $ 1,165,700,000 | $ 1,246,000,000 | $ 1,253,000,000 | $ 1,213,300,000 | $ 1,066,000,000 | 4,851,100,000 | 4,778,300,000 | |
Selling, General and Administrative Expense, Total including Allowance for Doubtful Accounts | 781,400,000 | 798,900,000 | 805,800,000 | 785,600,000 | 795,800,000 | 768,900,000 | 744,200,000 | 690,300,000 | 3,171,700,000 | 2,999,200,000 | |
Net earnings | (106,000,000) | 248,300,000 | 293,400,000 | 170,100,000 | 281,100,000 | 274,500,000 | 277,600,000 | 393,700,000 | 605,800,000 | 1,226,900,000 | 967,600,000 |
Income (Loss) from Continuing Operations Attributable to Noncontrolling Interest | 800,000 | 500,000 | (200,000) | (500,000) | (400,000) | 0 | 0 | 0 | 600,000 | (400,000) | (400,000) |
Net Earnings Attributable to Common Shareowners | $ (106,800,000) | $ 247,800,000 | $ 293,600,000 | $ 170,600,000 | $ 281,500,000 | $ 274,500,000 | $ 277,600,000 | $ 393,700,000 | $ 605,200,000 | $ 1,227,300,000 | $ 968,000,000 |
Total basic earnings per share of common stock (USD per share) | $ (0.72) | $ 1.67 | $ 1.96 | $ 1.13 | $ 1.88 | $ 1.83 | $ 1.86 | $ 2.64 | $ 4.06 | $ 8.20 | $ 6.63 |
Total diluted earnings per share of common stock (USD per share) | $ (0.72) | $ 1.65 | $ 1.93 | $ 1.11 | $ 1.84 | $ 1.80 | $ 1.82 | $ 2.60 | $ 3.99 | $ 8.05 | $ 6.53 |
Gain (Loss) on Disposition of Business | $ (13,700,000) | $ (800,000) | $ 264,100,000 | $ 0 | |||||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 199,600,000 | $ 23,600,000 | $ 0 |
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