EX-99.1 2 exhibit991q42021recast.htm EX-99.1 Document
Exhibit 99.1
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES FOR CONTINUING OPERATIONS TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES, AS ADJUSTED
(Unaudited, Millions of Dollars Except Per Share Amounts)


 
First Quarter 2021Second Quarter 2021Third Quarter 2021Year-to-Date 2021
 
GAAP1
Acquisition-
Related Charges & Other2
Non-GAAP3
GAAP1
Acquisition-
Related Charges & Other2
Non-GAAP3
GAAP1
Acquisition-
Related Charges & Other2
Non-GAAP3
GAAP1
Acquisition-
Related Charges & Other2
Non-GAAP3
Net Sales$3,803.5 $— $3,803.5 $3,880.0 $— $3,880.0 $3,865.4 $— $3,865.4 $11,548.9 $— $11,548.9 
Gross profit1,413.7 4.4 1,418.1 1,386.4 1.3 1,387.7 1,241.6 5.1 1,246.7 4,041.7 10.8 4,052.5 
% of Net Sales37.2 %37.3 %35.7 %35.8 %32.1 %32.3 %35.0 %35.1 %
Selling, general and administrative731.3 (15.1)716.2 778.5 (18.5)760.0 783.8 (18.7)765.1 2,293.6 (52.3)2,241.3 
% of Net Sales19.2 %18.8 %20.1 %19.6 %20.3 %19.8 %19.9 %19.4 %
Operating profit682.4 19.5 701.9 607.9 19.8 627.7 457.8 23.8 481.6 1,748.1 63.1 1,811.2 
% of Net Sales17.9 %18.5 %15.7 %16.2 %11.8 %12.5 %15.1 %15.7 %
Earnings from continuing operations before income taxes and equity interest587.0 23.9 610.9 508.4 33.3 541.7 384.7 32.5 417.2 1,480.1 89.7 1,569.8 
Income taxes on continuing operations118.4 6.0 124.4 70.1 8.4 78.5 0.5 6.8 7.3 189.0 21.2 210.2 
Share of net earnings of equity method investment1.8 0.2 2.0 4.4 11.0 15.4 9.8 — 9.8 16.0 11.2 27.2 
Net earnings from continuing operations attributable to common shareowners - Diluted4
461.8 18.1 479.9 439.2 35.9 475.1 394.5 25.7 420.2 1,295.5 79.7 1,375.2 
Diluted earnings per share of common stock - Continuing operations4
$2.81 $0.11 $2.92 $2.66 $0.22 $2.88 $2.39 $0.15 $2.54 $7.86 $0.48 $8.34 
1
The Company’s results represent continuing operations and exclude the commercial electronic security and healthcare businesses following the announced divestiture in December 2021. The results of these businesses were previously included in the Company's Security segment and have been recorded as discontinued operations.
2
Acquisition-related charges and other relate primarily to functional transformation initiatives, deal costs, facility-related costs and restructuring.
3
The non-GAAP information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results, business trends and outlook measures aside from the material impact of acquisition-related and other charges and ensures appropriate comparability to operating results of prior periods.
4
Results reflect the restatement of historical financial statements to correct errors related to the accounting for Equity Units as disclosed in the Company's Form 8-K filed on January 26, 2022.
 

1

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES FOR CONTINUING OPERATIONS TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES, AS ADJUSTED
(Unaudited, Millions of Dollars Except Per Share Amounts)
First Quarter 2020Second Quarter 2020Third Quarter 2020
GAAP1
Acquisition- Related Charges & Other2
Non-GAAP3
GAAP1
Acquisition- Related Charges & Other2
Non-GAAP3
GAAP1
Acquisition- Related Charges & Other2
Non-GAAP3
Net Sales$2,760.6 $— $2,760.6 $2,806.3 $— $2,806.3 $3,488.1 $— $3,488.1 
Gross profit882.7 8.6 891.3 886.5 37.4 923.9 1,231.9 6.5 1,238.4 
% of Net Sales32.0 %32.3 %31.6 %32.9 %35.3 %35.5 %
Selling, general and administrative630.6 (17.2)613.4 618.3 (59.4)558.9 632.1 (27.3)604.8 
% of Net Sales22.8 %22.2 %22.0 %19.9 %18.1 %17.3 %
Operating profit252.1 25.8 277.9 268.2 96.8 365.0 599.8 33.8 633.6 
% of Net Sales9.1 %10.1 %9.6 %13.0 %17.2 %18.2 %
Earnings from continuing operations before income taxes and equity interest135.8 46.9 182.7 118.2 135.3 253.5 445.6 77.4 523.0 
Income taxes on continuing operations11.3 9.6 20.9 (112.5)151.2 38.7 76.0 18.1 94.1 
Share of net earnings (losses) of equity method investment(0.2)1.0 0.8 10.3 3.2 13.5 4.0 2.7 6.7 
Net earnings from continuing operations attributable to common shareowners - Diluted4
124.8 38.3 163.1 236.3 (12.7)223.6 364.0 62.0 426.0 
Diluted earnings per share of common stock - Continuing operations4
$0.77 $0.24 $1.01 $1.46 $(0.08)$1.38 $2.24 $0.38 $2.62 
Fourth Quarter 2020Year-to-Date 2020
GAAP1
Acquisition- Related Charges & Other2
Non-GAAP3
GAAP1
Acquisition- Related Charges & Other2
Non-GAAP3
Net Sales$4,002.7 $— $4,002.7 $13,057.7 $— $13,057.7 
Gross profit1,404.3 9.2 1,413.5 4,405.4 61.7 4,467.1 
% of Net Sales35.1 %35.3 %33.7 %34.2 %
Selling, general and administrative747.5 (19.3)728.2 2,628.5 (123.2)2,505.3 
% of Net Sales18.7 %18.2 %20.1 %19.2 %
Operating profit656.8 28.5 685.3 1,776.9 184.9 1,961.8 
% of Net Sales16.4 %17.1 %13.6 %15.0 %
Earnings from continuing operations before income taxes and equity interest520.2 66.3 586.5 1,219.8 325.9 1,545.7 
Income taxes on continuing operations68.2 13.6 81.8 43.0 192.5 235.5 
Share of net earnings (losses) of equity method investment(5.0)2.9 (2.1)9.1 9.8 18.9 
Net earnings from continuing operations attributable to common shareowners - Diluted4
437.5 55.6 493.1 1,162.6 143.2 1,305.8 
Diluted earnings per share of common stock - Continuing operations4
$2.68 $0.34 $3.02 $7.16 $0.88 $8.04 
1
The Company’s results represent continuing operations and exclude the commercial electronic security and healthcare businesses following the announced divestiture in December 2021. The results of these businesses were previously included in the Company's Security segment and have been recorded as discontinued operations.
2
Acquisition-related charges and other relate primarily to a cost reduction program, charges related to the extinguishment of debt, a net loss on the sales of businesses, inventory step-up charges, deal costs and margin resiliency initiatives, partially offset by a release of a contingent consideration liability relating to the CAM acquisition and a one-time tax benefit related to a supply chain reorganization.
3
The non-GAAP information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results, business trends and outlook measures aside from the material impact of acquisition-related and other charges and ensures appropriate comparability to operating results of prior periods.
4
Results reflect the restatement of historical financial statements to correct errors related to the accounting for Equity Units as disclosed in the Company's Form 8-K filed on January 26, 2022.
2

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES FOR CONTINUING OPERATIONS TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES, AS ADJUSTED
(Unaudited, Millions of Dollars)




First Quarter 2021Second Quarter 2021Third Quarter 2021Year-To-Date 2021
 
GAAP1
Acquisition-
Related Charges & Other2
Non-GAAP3
GAAP1
Acquisition-
Related Charges & Other2
Non-GAAP3
GAAP1
Acquisition-
Related Charges & Other2
Non-GAAP3
GAAP1
Acquisition-
Related Charges & Other2
Non-GAAP3
NET SALES
Tools & Storage$3,062.9 $— $3,062.9 $3,196.5 $— $3,196.5 $3,185.9 $— $3,185.9 $9,445.3 $— $9,445.3 
Industrial657.7 — 657.7 602.2 — 602.2 593.5 — 593.5 1,853.4 — 1,853.4 
Segment Net Sales3,720.6 — 3,720.6 3,798.7 — 3,798.7 3,779.4 — 3,779.4 11,298.7 — 11,298.7 
Corporate Overhead & Other82.9 — 82.9 81.3 — 81.3 86.0 — 86.0 250.2 — 250.2 
Total$3,803.5 $— $3,803.5 $3,880.0 $— $3,880.0 $3,865.4 $— $3,865.4 $11,548.9 $— $11,548.9 
SEGMENT PROFIT
Tools & Storage$644.7 $4.2 $648.9 $627.0 $9.2 $636.2 $478.5 $14.2 $492.7 $1,750.2 $27.6 $1,777.8 
Industrial99.8 3.6 103.4 60.5 3.0 63.5 42.6 3.2 45.8 202.9 9.8 212.7 
Segment Profit744.5 7.8 752.3 687.5 12.2 699.7 521.1 17.4 538.5 1,953.1 37.4 1,990.5 
Corporate Overhead & Other(62.1)11.7 (50.4)(79.6)7.6 (72.0)(63.3)6.4 (56.9)(205.0)25.7 (179.3)
Total$682.4 $19.5 $701.9 $607.9 $19.8 $627.7 $457.8 $23.8 $481.6 $1,748.1 $63.1 $1,811.2 
Segment Profit as a Percentage of Net Sales
Tools & Storage21.0 %21.2 %19.6 %19.9 %15.0 %15.5 %18.5 %18.8 %
Industrial15.2 %15.7 %10.0 %10.5 %7.2 %7.7 %10.9 %11.5 %
Total20.0 %20.2 %18.1 %18.4 %13.8 %14.2 %17.3 %17.6 %
1
The Company’s results represent continuing operations and exclude the commercial electronic security and healthcare businesses following the announced divestiture in December 2021. The results of these businesses were previously included in the Company's Security segment and have been recorded as discontinued operations. Corporate Overhead and Other includes the results of the Mechanical Access Solutions business for all periods presented.
2
Acquisition-related charges and other relate primarily to functional transformation initiatives and facility-related costs.
3
The non-GAAP information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results, business trends and outlook measures aside from the material impact of acquisition-related and other charges and ensures appropriate comparability to operating results of prior periods.

3

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES FOR CONTINUING OPERATIONS TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES, AS ADJUSTED
(Unaudited, Millions of Dollars)
First Quarter 2020Second Quarter 2020Third Quarter 2020
 
GAAP1
Acquisition-
Related Charges & Other2
Non-GAAP3
GAAP1
Acquisition-
Related Charges & Other2
Non-GAAP3
GAAP1
Acquisition-
Related Charges & Other2
Non-GAAP3
NET SALES
Tools & Storage$2,070.8 $— $2,070.8 $2,197.2 $— $2,197.2 $2,804.1 $— $2,804.1 
Industrial590.7 — 590.7 517.5 — 517.5 586.6 — 586.6 
Segment Net Sales2,661.5 — 2,661.5 2,714.7 — 2,714.7 3,390.7 — 3,390.7 
Corporate Overhead & Other99.1 — 99.1 91.6 — 91.6 97.4 — 97.4 
Total$2,760.6 $— $2,760.6 $2,806.3 $— $2,806.3 $3,488.1 $— $3,488.1 
SEGMENT PROFIT
Tools & Storage$229.9 $3.1 $233.0 $341.1 $28.4 $369.5 $591.9 $5.6 $597.5 
Industrial66.6 10.4 77.0 3.8 40.6 44.4 62.7 8.4 71.1 
Segment Profit296.5 13.5 310.0 344.9 69.0 413.9 654.6 14.0 668.6 
Corporate Overhead & Other(44.4)12.3 (32.1)(76.7)27.8 (48.9)(54.8)19.8 (35.0)
Total$252.1 $25.8 $277.9 $268.2 $96.8 $365.0 $599.8 $33.8 $633.6 
Segment Profit as a Percentage of Net Sales
Tools & Storage11.1 %11.3 %15.5 %16.8 %21.1 %21.3 %
Industrial11.3 %13.0 %0.7 %8.6 %10.7 %12.1 %
Total11.1 %11.6 %12.7 %15.2 %19.3 %19.7 %
Fourth Quarter 2020Year-To-Date 2020
GAAP1
Acquisition-
Related Charges & Other2
Non-GAAP3
GAAP1
Acquisition-
Related Charges & Other2
Non-GAAP3
NET SALES
Tools & Storage$3,257.6 $— $3,257.6 $10,329.7 $— $10,329.7 
Industrial657.9 — 657.9 2,352.7 — 2,352.7 
Segment Net Sales3,915.5 — 3,915.5 12,682.4 — 12,682.4 
Corporate Overhead & Other87.2 — 87.2 375.3 — 375.3 
Total$4,002.7 $— $4,002.7 $13,057.7 $— $13,057.7 
SEGMENT PROFIT
Tools & Storage$657.4 $9.3 $666.7 $1,820.3 $46.4 $1,866.7 
Industrial87.5 7.7 95.2 220.6 67.1 287.7 
Segment Profit744.9 17.0 761.9 2,040.9 113.5 2,154.4 
Corporate Overhead & Other(88.1)11.5 (76.6)(264.0)71.4 (192.6)
Total$656.8 $28.5 $685.3 $1,776.9 $184.9 $1,961.8 
Segment Profit as a Percentage of Net Sales
Tools & Storage20.2 %20.5 %17.6 %18.1 %
Industrial13.3 %14.5 %9.4 %12.2 %
Total19.0 %19.5 %16.1 %17.0 %
1
The Company’s results represent continuing operations and exclude the commercial electronic security and healthcare businesses following the announced divestiture in December 2021. The results of these businesses were previously included in the Company's Security segment and have been recorded as discontinued operations. Corporate Overhead and Other includes the results of the commercial electronic security business in five countries in Europe and emerging markets through its disposition in the fourth quarter of 2020 and the Mechanical Access Solutions business for all periods presented.
2
Acquisition-related charges and other relate primarily to integration costs, a cost reduction program, inventory step-up charges and margin resiliency initiatives.
3
The non-GAAP information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results, business trends and outlook measures aside from the material impact of acquisition-related and other charges and ensures appropriate comparability to operating results of prior periods.
4