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Business Segments
 6 Months Ended
Jun. 29, 2019
Notes To Financial Statements [Abstract]  
Business Segments BUSINESS SEGMENTS AND GEOGRAPHIC AREAS

The Company's operations are classified into three reportable business 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 Attachment Tools product lines. Oil & Gas 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. Attachment Tools sells hydraulic tools, attachments 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), gain or loss on sales of businesses, restructuring charges, interest expense, interest income, income taxes and share of net earnings of equity method investment. Refer to Note O, Restructuring Charges, for the amount of net restructuring charges by segment. 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. 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.
 
Second Quarter
 
Year-to-Date
(Millions of Dollars)
2019
 
2018
 
2019
 
2018
NET SALES

 

 
 
 
 
Tools & Storage
$
2,626.0

 
$
2,567.8

 
$
4,918.3

 
$
4,783.6

Industrial
649.9

 
573.1

 
1,204.9

 
1,077.3

Security
485.4

 
502.7

 
971.7

 
992.0

Total
$
3,761.3

 
$
3,643.6

 
$
7,094.9

 
$
6,852.9

SEGMENT PROFIT

 

 
 
 
 
Tools & Storage
$
440.0

 
$
398.6

 
$
705.8

 
$
700.0

Industrial
95.1

 
85.5

 
166.1

 
166.0

Security
38.0

 
48.1

 
77.5

 
93.6

Segment profit
573.1

 
532.2

 
949.4

 
959.6

Corporate overhead
(55.6
)
 
(50.9
)
 
(105.2
)
 
(98.2
)
Other, net
(62.2
)
 
(119.3
)
 
(127.6
)
 
(177.3
)
Gain (loss) on sales of businesses
17.2

 
(0.8
)
 
17.2

 
(0.8
)
Restructuring charges
(8.5
)
 
(13.4
)
 
(17.2
)
 
(36.3
)
Interest expense
(72.4
)
 
(69.0
)
 
(146.8
)
 
(132.2
)
Interest income
12.1

 
15.6

 
28.7

 
31.4

Earnings before income taxes and equity interest
$
403.7

 
$
294.4

 
$
598.5

 
$
546.2



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 three and six months ended June 29, 2019 and June 30, 2018, 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 three and six months ended June 29, 2019 and June 30, 2018:
 
Second Quarter
 
Year-to-Date
 
2019
 
2018
 
2019
 
2018
Industrial
9.6
%
 
10.3
%
 
10.0
%
 
10.6
%
Security
44.9
%
 
43.9
%
 
45.2
%
 
46.1
%

The following table is a further disaggregation of the Industrial segment revenue for the three and six months ended June 29, 2019 and June 30, 2018:
 
Second Quarter
 
Year-to-Date
(Millions of Dollars)
2019
 
2018
 
2019
 
2018
Engineered Fastening
$
441.9

 
$
468.2

 
$
876.2

 
$
880.0

Infrastructure
208.0

 
104.9

 
328.7

 
197.3

Industrial
$
649.9

 
$
573.1

 
$
1,204.9

 
$
1,077.3


The following table is a summary of total assets by segment as of June 29, 2019 and December 29, 2018:
(Millions of Dollars)
June 29, 2019
 
December 29, 2018
Tools & Storage
$
14,081.0

 
$
13,122.6

Industrial
4,537.7

 
3,620.5

Security
3,440.0

 
3,413.6

 
22,058.7

 
20,156.7

Corporate assets
(535.1
)
 
(748.7
)
Consolidated
$
21,523.6

 
$
19,408.0



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

GEOGRAPHIC AREAS

The following table is a summary of net sales by geographic area for the three and six months ended June 29, 2019 and June 30, 2018:
 
Second Quarter
 
Year-to-Date
(Millions of Dollars)
2019
 
2018
 
2019
 
2018
United States
$
2,216.7

 
$
2,004.9

 
$
4,108.5

 
$
3,673.8

Canada
160.9

 
165.5

 
304.8

 
309.7

Other Americas
184.0

 
206.9

 
349.0

 
392.2

France
152.6

 
160.4

 
306.2

 
323.2

Other Europe
754.8

 
785.4

 
1,454.6

 
1,540.7

Asia
292.3

 
320.5

 
571.8

 
613.3

Consolidated
$
3,761.3

 
$
3,643.6

 
$
7,094.9

 
$
6,852.9