EX-99.2 3 exhibit992financialsq42023.htm EX-99.2 Document
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, Millions of Dollars Except Per Share Amounts) 
 FOURTH QUARTERYEAR-TO-DATE
 2023202220232022
NET SALES$3,736.5 $3,986.8 $15,781.1 $16,947.4 
COSTS AND EXPENSES
Cost of sales2,632.1 3,233.3 11,848.5 12,663.3 
Gross profit1,104.4 753.5 3,932.6 4,284.1 
% of Net Sales29.6 %18.9 %24.9 %25.3 %
Selling, general and administrative834.0 757.2 3,290.7 3,370.0 
% of Net Sales22.3 %19.0 %20.9 %19.9 %
Other - net95.8 64.6 320.1 274.8 
Loss on sales of businesses3.2 — 10.8 8.4 
Asset impairment charges150.8 — 274.8 168.4 
Restructuring charges11.8 — 39.4 140.8 
Income (loss) from operations8.8 (68.3)(3.2)321.7 
Interest - net87.6 83.9 372.5 283.8 
(LOSS) EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES(78.8)(152.2)(375.7)37.9 
Income taxes on continuing operations197.3 (51.6)(94.0)(132.4)
NET (LOSS) EARNINGS FROM CONTINUING OPERATIONS (276.1)(100.6)(281.7)170.3 
Less: Net earnings attributable to non-controlling interests— — — 0.2 
NET (LOSS) EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO STANLEY BLACK & DECKER, INC.(276.1)(100.6)(281.7)170.1 
      Less: Preferred stock dividends and beneficial conversion feature$— $5.8 $— $5.8 
NET (LOSS) EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREOWNERS$(276.1)$(106.4)$(281.7)$164.3 
Add: Contract adjustment payments accretion— 0.2 — 1.2 
NET (LOSS) EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREOWNERS - DILUTED$(276.1)$(106.2)$(281.7)$165.5 
(Loss) earnings from discontinued operations before income taxes (including 2023 pre-tax loss on Security sale of $14.3 million and 2022 pre-tax gain on Security sale of $1,197.4 million)(13.5)(22.6)(14.3)1,210.9 
Income taxes on discontinued operations (including 2023 income taxes of $14.5 million for loss on Security sale and 2022 income taxes of $312.5 million for gain on Security sale)14.8 (78.2)14.5 318.5 
NET (LOSS) EARNINGS FROM DISCONTINUED OPERATIONS$(28.3)$55.6 $(28.8)$892.4 
NET (LOSS) EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS - DILUTED$(304.4)$(50.6)$(310.5)$1,057.9 
NET (LOSS) EARNINGS ATTRIBUTABLE TO STANLEY BLACK & DECKER, INC.$(304.4)$(45.0)$(310.5)$1,062.5 
BASIC (LOSS) EARNINGS PER SHARE OF COMMON STOCK
Continuing operations$(1.84)$(0.72)$(1.88)$1.11 
Discontinued operations$(0.19)$0.38 $(0.19)$6.02 
Total basic (loss) earnings per share of common stock$(2.03)$(0.35)$(2.07)$7.13 
DILUTED (LOSS) EARNINGS PER SHARE OF COMMON STOCK
Continuing operations$(1.84)$(0.72)$(1.88)$1.06 
Discontinued operations$(0.19)$0.37 $(0.19)$5.70 
Total diluted (loss) earnings per share of common stock$(2.03)$(0.34)$(2.07)$6.76 
DIVIDENDS PER SHARE OF COMMON STOCK$0.81 $0.80 $3.22 $3.18 
WEIGHTED-AVERAGE SHARES OUTSTANDING (in thousands)
Basic149,933146,967149,751148,170
Diluted149,933146,967149,751156,553
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Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, Millions of Dollars)
 
December 30, 2023December 31, 2022
ASSETS
Cash and cash equivalents$449.4 $395.6 
Accounts and notes receivable, net1,302.0 1,231.0 
Inventories, net4,738.6 5,861.1 
Current assets held for sale140.8 — 
Other current assets386.5 487.0 
Total current assets7,017.3 7,974.7 
Property, plant and equipment, net2,169.9 2,353.1 
Goodwill and other intangibles, net11,945.5 12,977.5 
Long-term assets held for sale716.8 — 
Other assets1,814.3 1,658.0 
Total assets$23,663.8 $24,963.3 
LIABILITIES AND SHAREOWNERS’ EQUITY
Short-term borrowings$1,074.8 $2,102.9 
Current maturities of long-term debt1.1 1.2 
Accounts payable2,298.9 2,344.4 
Accrued expenses2,464.3 2,120.7 
Current liabilities held for sale44.1 — 
Total current liabilities5,883.2 6,569.2 
Long-term debt6,101.0 5,352.9 
Long-term liabilities held for sale84.8 — 
Other long-term liabilities2,538.7 3,327.0 
Stanley Black & Decker, Inc. shareowners’ equity9,056.1 9,712.1 
Non-controlling interests’ equity— 2.1 
Total liabilities and shareowners' equity$23,663.8 $24,963.3 

9
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
SUMMARY OF CASH FLOW ACTIVITY
(Unaudited, Millions of Dollars)
 
FOURTH QUARTERYEAR-TO-DATE
 2023202220232022
OPERATING ACTIVITIES
Net (loss) earnings $(304.4)$(45.0)$(310.5)$1,062.7 
Depreciation and amortization148.4 147.1 625.1 572.2 
Loss on sales of businesses3.2 — 10.8 8.4 
Loss (gain) on sale of discontinued operations13.5 22.6 14.3 (1,197.4)
Asset impairment charges150.8 — 274.8 168.4 
Changes in working capital1
515.7 592.7 769.0 (1,704.7)
Other242.1 (66.3)(192.2)(369.1)
Net cash provided by (used in) operating activities769.3 651.1 1,191.3 (1,459.5)
INVESTING AND FINANCING ACTIVITIES
Capital and software expenditures(122.3)(130.5)(338.7)(530.4)
Proceeds from sales of assets2.0 1.8 15.1 41.7 
Proceeds from sales of businesses, net of cash sold— — (5.7)4,147.1 
Business acquisitions, net of cash acquired— 0.2 — (71.9)
Proceeds from debt issuances, net of fees— — 745.3 992.6 
Stock purchase contract fees— (9.9)— (39.4)
Credit facility borrowings— — — 2,500.0 
Credit facility repayments— — — (2,500.0)
Net short-term commercial paper (repayments) borrowings(450.4)(466.1)(1,044.7)(138.1)
Proceeds from issuances of common stock7.5 15.7 19.0 38.7 
Purchases of common stock for treasury(9.3)(4.3)(16.1)(2,323.0)
Proceeds from issuances of remarketed preferred stock— 750.0 — 750.0 
Redemption and conversion of preferred stock— (750.0)— (750.0)
Craftsman contingent consideration— (8.8)(18.0)(41.3)
Cash dividends on common stock(121.8)(120.0)(482.6)(465.8)
Effect of exchange rate changes on cash30.8 63.9 2.1 (31.9)
Other(3.3)(2.8)(17.3)(8.7)
Net cash (used in) provided by investing and financing activities(666.8)(660.8)(1,141.6)1,569.6 
Increase (decrease) in cash, cash equivalents and restricted cash102.5 (9.7)49.7 110.1 
Cash, cash equivalents and restricted cash, beginning of period352.1 414.6 404.9 294.8 
Cash, cash equivalents and restricted cash, end of period$454.6 $404.9 $454.6 $404.9 
Free Cash Flow Computation2
Net cash provided by (used in) operating activities$769.3 $651.1 $1,191.3 $(1,459.5)
Less: capital and software expenditures(122.3)(130.5)(338.7)(530.4)
Free cash flow (before dividends)$647.0 $520.6 $852.6 $(1,989.9)
Reconciliation of Cash, Cash Equivalents and Restricted Cash
December 30, 2023December 31, 2022
Cash and cash equivalents$449.4 $395.6 
Restricted cash included in Other current assets4.6 9.3 
Cash and cash equivalents included in Current assets held for sale0.6 — 
Cash, cash equivalents and restricted cash$454.6 $404.9 
1
Working capital is comprised of accounts receivable, inventory, accounts payable and deferred revenue.
2
Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners, and is useful information for investors. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common stock and business acquisitions, among other items.
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Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(Unaudited, Millions of Dollars)

 
 FOURTH QUARTERYEAR-TO-DATE
 2023202220232022
NET SALES
Tools & Outdoor$3,154.2 $3,382.9 $13,367.1 $14,423.7 
Industrial582.3 603.9 2,414.0 2,523.4 
Segment Net Sales3,736.5 3,986.8 15,781.1 16,947.1 
Corporate Overhead — — — 0.3 
Total$3,736.5 $3,986.8 $15,781.1 $16,947.4 
SEGMENT PROFIT
Tools & Outdoor$293.5 $3.4 $687.6 $971.9 
Industrial65.0 68.2 266.5 236.2 
Segment Profit358.5 71.6 954.1 1,208.1 
Corporate Overhead (88.1)(75.3)(312.2)(294.0)
Total$270.4 $(3.7)$641.9 $914.1 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor9.3 %0.1 %5.1 %6.7 %
Industrial11.2 %11.3 %11.0 %9.4 %
Segment Profit9.6 %1.8 %6.0 %7.1 %

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Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)

 
FOURTH QUARTER 2023
 GAAPNon-GAAP Adjustments
Non-GAAP2
Gross profit$1,104.4 $9.9 $1,114.3 
% of Net Sales29.6 %29.8 %
Selling, general and administrative834.0 (23.9)810.1 
% of Net Sales22.3 %21.7 %
(Loss) earnings from continuing operations before income taxes(78.8)197.3 118.5 
Income taxes on continuing operations197.3 (216.8)(19.5)
Net (loss) earnings from continuing operations attributable to common shareowners - Diluted(276.1)414.1 138.0 
Diluted (loss) earnings per share of common stock - Continuing operations1
$(1.84)$2.76 $0.92 
1
The Non-GAAP diluted earnings per share for the fourth quarter of 2023 is calculated using diluted weighted-average shares outstanding of 150.671 million.
FOURTH QUARTER 2022
 GAAPNon-GAAP Adjustments
Non-GAAP2
Gross profit$753.5 $24.5 $778.0 
% of Net Sales18.9 %19.5 %
Selling, general and administrative757.2 (27.2)730.0 
% of Net Sales19.0 %18.3 %
Loss from continuing operations before income taxes(152.2)54.0 (98.2)
Income taxes on continuing operations(51.6)(37.7)(89.3)
Net loss from continuing operations attributable to common shareowners - Diluted(106.2)91.7 (14.5)
Diluted loss per share of common stock - Continuing operations$(0.72)$0.62 $(0.10)
2
The Non-GAAP 2023 and 2022 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 certain gains and charges and ensures appropriate comparability to operating results of prior periods. See further detail on Non-GAAP adjustments on page 16.
 


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Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)
 
YEAR-TO-DATE 2023
 GAAPNon-GAAP Adjustments
Non-GAAP2
Gross profit$3,932.6 $166.9 $4,099.5 
% of Net Sales24.9 %26.0 %
Selling, general and administrative3,290.7 (99.4)3,191.3 
% of Net Sales20.9 %20.2 %
(Loss) earnings from continuing operations before income taxes(375.7)566.2 190.5 
Income taxes on continuing operations(94.0)65.8 (28.2)
Net (loss) earnings from continuing operations attributable to common shareowners - Diluted(281.7)500.4 218.7 
Diluted (loss) earnings per share of common stock - Continuing operations1
$(1.88)$3.33 $1.45 
1
The Non-GAAP diluted earnings per share for year-to-date 2023 is calculated using diluted weighted-average shares outstanding of 150.371 million.
YEAR-TO-DATE 2022
 GAAPNon-GAAP Adjustments
Non-GAAP2
Gross profit$4,284.1 $127.4 $4,411.5 
% of Net Sales25.3 %26.0 %
Selling, general and administrative3,370.0 (180.3)3,189.7 
% of Net Sales19.9 %18.8 %
Earnings from continuing operations before income taxes37.9 642.2 680.1 
Income taxes on continuing operations(132.4)84.0 (48.4)
Net earnings from continuing operations attributable to common shareowners - Diluted165.5 558.2 723.7 
Diluted earnings per share of common stock - Continuing operations$1.06 $3.56 $4.62 
2
The Non-GAAP 2023 and 2022 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 certain gains and charges and ensures appropriate comparability to operating results of prior periods. See further detail on Non-GAAP adjustments on page 16.
 

13
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)
 
FOURTH QUARTER 2023
 GAAP
Non-GAAP Adjustments1
Non-GAAP3
SEGMENT PROFIT
Tools & Outdoor$293.5 $22.3 $315.8 
Industrial65.0 (0.6)64.4 
Segment Profit358.5 21.7 380.2 
Corporate Overhead(88.1)12.1 (76.0)
Total$270.4 $33.8 $304.2 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor9.3 %10.0 %
Industrial11.2 %11.1 %
Segment Profit9.6 %10.2 %
1
Non-GAAP adjustments relate primarily to footprint actions and other costs associated with the supply chain transformation and integration-related costs.
FOURTH QUARTER 2022
 GAAP
Non-GAAP Adjustments2
Non-GAAP3
SEGMENT PROFIT
Tools & Outdoor$3.4 $29.8 $33.2 
Industrial68.2 1.4 69.6 
Segment Profit71.6 31.2 102.8 
Corporate Overhead (75.3)20.5 (54.8)
Total$(3.7)$51.7 $48.0 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor0.1 %1.0 %
Industrial11.3 %11.5 %
Segment Profit1.8 %2.6 %
2
Non-GAAP adjustments relate primarily to supply chain transformation and integration-related costs.
3
The Non-GAAP 2023 and 2022 business segment 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 certain gains and charges and ensures appropriate comparability to operating results of prior periods.

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Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)
 
YEAR-TO-DATE 2023
 GAAP
Non-GAAP Adjustments1
Non-GAAP3
SEGMENT PROFIT
Tools & Outdoor$687.6 $196.7 $884.3 
Industrial266.5 18.7 285.2 
Segment Profit954.1 215.4 1,169.5 
Corporate Overhead(312.2)50.9 (261.3)
Total$641.9 $266.3 $908.2 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor5.1 %6.6 %
Industrial11.0 %11.8 %
Segment Profit6.0 %7.4 %
1
Non-GAAP adjustments relate primarily to footprint actions and other costs associated with the supply chain transformation and integration-related costs.
YEAR-TO-DATE 2022
 GAAP
Non-GAAP Adjustments2
Non-GAAP3
SEGMENT PROFIT
Tools & Outdoor$971.9 $235.4 $1,207.3 
Industrial236.2 7.8 244.0 
Segment Profit1,208.1 243.2 1,451.3 
Corporate Overhead(294.0)64.5 (229.5)
Total$914.1 $307.7 $1,221.8 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor6.7 %8.4 %
Industrial9.4 %9.7 %
Segment Profit7.1 %8.6 %
2
Non-GAAP adjustments relate primarily to integration-related costs, non-cash inventory step-up charges, and a voluntary retirement program.
3
The Non-GAAP 2023 and 2022 business segment 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 certain gains and charges and ensures appropriate comparability to operating results of prior periods.





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Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS (LOSS) TO EBITDA
(Unaudited, Millions of Dollars)
FOURTH QUARTERYEAR-TO-DATE
2023202220232022
NET (LOSS) EARNINGS FROM CONTINUING OPERATIONS$(276.1)$(100.6)$(281.7)$170.3 
% of Net Sales(7.4)%(2.5)%(1.8)%1.0 %
Interest - net87.6 83.9 372.5 283.8 
Income taxes on continuing operations197.3 (51.6)(94.0)(132.4)
Depreciation and amortization148.4 147.1 625.1 572.2 
EBITDA1
$157.2 $78.8 $621.9 $893.9 
% of Net Sales4.2 %2.0 %3.9 %5.3 %
Non-GAAP Adjustments before income taxes197.3 54.0 566.2 642.2 
Less: Accelerated depreciation included in Non-GAAP Adjustments before income taxes4.2 5.5 50.0 7.5 
Adjusted EBITDA1
$350.3 $127.3 $1,138.1 $1,528.6 
% of Net Sales9.4 %3.2 %7.2 %9.0 %
1EBITDA is earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA represents EBITDA excluding certain gains and charges, as summarized below. EBITDA and Adjusted EBITDA, both Non-GAAP measures, are considered relevant to aid analysis and understanding of the Company’s operating results and ensures appropriate comparability to prior periods.

SUMMARY OF NON-GAAP ADJUSTMENTS BEFORE INCOME TAXES
(Unaudited, Millions of Dollars)
FOURTH QUARTERYEAR-TO-DATE
2023202220232022
Supply Chain Transformation Costs:
Footprint Rationalization2
$8.6 $25.3 $96.9 $25.3 
Strategic Sourcing & Operational Excellence3
0.4 — 69.1 — 
Inventory step-up charges— — — 80.3 
Facility-related costs0.4 7.0 1.5 14.8 
Voluntary retirement program— — (0.4)5.7 
Other charges (gains)0.5 (7.8)(0.2)1.3 
Gross Profit$9.9 $24.5 $166.9 $127.4 
Supply Chain Transformation Costs:
Footprint Rationalization2
$2.4 $— $10.8 $— 
Complexity Reduction4
1.0 — 9.0 7.2 
Integration-related costs9.6 13.9 33.6 85.2 
Transition services costs related to previously divested businesses9.6 12.2 46.6 21.1 
Functional transformation initiatives— 4.3 — 19.2 
Voluntary retirement program(0.3)(0.6)(2.7)33.4 
Other charges (gains)1.6 (2.6)2.1 14.2 
Selling, general and administrative$23.9 $27.2 $99.4 $180.3 
Acquisition & divestiture-related costs and income5
$0.9 $2.3 $(14.3)$18.2 
Voluntary retirement program— — — 7.1 
Asset impairment charges6
150.8 — 274.8 168.4 
Restructuring charges 11.8 — 39.4 140.8 
(Loss) earnings from continuing operations before income taxes$197.3 $54.0 $566.2 $642.2 

16
Exhibit 99.2
2Footprint Rationalization costs in 2023 primarily relate to transfers and closures of targeted manufacturing sites, which resulted in accelerated depreciation of production equipment of $49.1 million, non-cash asset write-downs of $44.0 million (predominantly tooling, raw materials and WIP) and other facility exit and re-configuration costs of $14.6 million.
3Strategic Sourcing & Operational Excellence costs primarily relate to third-party consultant fees to provide expertise in identifying and quantifying opportunities to source in a more integrated manner and re-design in-plant operations following footprint rationalization, developing a detailed program and related governance, and assisting the Company with the implementation of actions necessary to achieve the related objectives.
4Complexity Reduction costs primarily relate to third-party consultant fees to assist the Company with identifying strategies related to its SKU reduction and product platforming initiatives, quantifying the opportunities and designing detailed plans to achieve the related benefits.
5Includes deal-related costs and loss on sales of businesses, net of income related to providing transition services to previously divested businesses.
6Asset impairment charges in 2023 include a $124.0 million pre-tax impairment loss related to the Irwin and Troy-Bilt trade names and a $150.8 million pre-tax impairment loss related to the Infrastructure business. The $168.4 million pre-tax asset impairment charge in 2022 related to the Oil & Gas business.
17