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BUSINESS SEGMENTS AND GEOGRAPHIC AREAS
 12 Months Ended
Jan. 02, 2021
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 highly engineered components such as fasteners, fittings and various engineered products, which are designed for specific application across multiple verticals. The product lines include externally threaded fasteners, 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, high-strength structural fasteners, axel swage, latches, heat shields, pins, and couplings. The Infrastructure business consists of the Attachment Tools and Oil & Gas product lines. Attachment Tools sells hydraulic tools and high quality, performance-driven heavy equipment attachment tools for off-highway applications. 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.
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 credit losses (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, loss on debt extinguishments, interest income, interest expense, income taxes and share of net earnings or losses of equity method investment. 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, for the amount of intangible asset amortization expense and net restructuring charges, 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, right-of-use lease assets 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
(Millions of Dollars)202020192018
Net Sales
Tools & Storage$10,329.7 $10,062.1 $9,814.0 
Industrial2,352.7 2,434.7 2,187.8 
Security1,852.2 1,945.4 1,980.6 
Consolidated$14,534.6 $14,442.2 $13,982.4 
Segment Profit
Tools & Storage$1,841.7 $1,533.3 $1,393.1 
Industrial225.6 334.1 319.8 
Security108.7 126.6 169.3 
Segment Profit2,176.0 1,994.0 1,882.2 
Corporate overhead(297.7)(229.5)(202.8)
Other, net(262.8)(249.1)(287.0)
(Loss) gain on sales of businesses(13.5)17.0 (0.8)
Restructuring charges(83.0)(154.1)(160.3)
Loss on debt extinguishments(46.9)(17.9)— 
Interest income18.0 53.9 68.7 
Interest expense(223.1)(284.3)(277.9)
Earnings before income taxes and equity interest$1,267.0 $1,130.0 $1,022.1 
Capital and Software Expenditures
Tools & Storage$225.6 $297.2 $353.7 
Industrial101.6 89.6 95.8 
Security 20.9 37.9 42.6 
Consolidated$348.1 $424.7 $492.1 
Depreciation and Amortization
Tools & Storage$308.5 $327.8 $300.1 
Industrial199.4 159.3 125.9 
Security70.2 73.1 80.5 
Consolidated$578.1 $560.2 $506.5 
Segment Assets
Tools & Storage$14,294.9 $13,642.4 $13,122.6 
Industrial5,621.4 4,207.0 3,620.5 
Security3,493.5 3,448.6 3,413.6 
23,409.8 21,298.0 20,156.7 
Corporate assets156.5 (701.4)(748.7)
Consolidated$23,566.3 $20,596.6 $19,408.0 

Corporate assets primarily consist of cash, equity method investment, deferred taxes, property, plant and equipment and right-of-use lease assets. The increase in Corporate assets at January 2, 2021 compared to December 28, 2019 and December 29, 2018 is due to the increase in the Company's cash position. 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 21% of the Tools & Storage segment net sales in 2020 and 2019, and 17% in 2018. Sales to The Home Depot were approximately 17%, 15%, and 14% of the Tools & Storage segment net sales in 2020, 2019 and 2018, 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 January 2, 2021, December 28, 2019, and December 29, 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 years ended January 2, 2021, December 28, 2019 and December 29, 2018:
202020192018
Industrial9.2 %10.9 %11.9 %
Security44.4 %45.8 %44.9 %

The following table is a further disaggregation of the Industrial segment revenue for the years ended January 2, 2021, December 28, 2019 and December 29, 2018:
(Millions of Dollars)202020192018
Engineered Fastening$1,717.8 $1,738.5 $1,766.6 
Infrastructure634.9 696.2 421.2 
Industrial$2,352.7 $2,434.7 $2,187.8 

GEOGRAPHIC AREAS
 
(Millions of Dollars)202020192018
Net Sales
United States$8,800.5 $8,472.1 $7,700.3 
Canada687.0 609.9 628.3 
Other Americas595.5 717.9 801.5 
France581.3 610.2 627.8 
Other Europe2,791.0 2,870.8 2,989.9 
Asia1,079.3 1,161.3 1,234.6 
Consolidated$14,534.6 $14,442.2 $13,982.4 
Property, Plant & Equipment, net
United States$1,156.7 $1,046.8 $1,018.3 
Canada25.5 27.4 25.5 
Other Americas121.0 117.9 112.7 
France54.9 57.3 63.9 
Other Europe349.2 352.3 356.9 
Asia346.5 357.8 337.9 
Consolidated$2,053.8 $1,959.5 $1,915.2