Connecticut | 1-5244 | 06-0548860 | ||
(State or other jurisdiction | (Commission | (I.R.S. Employer | ||
of incorporation) | File Number) | Identification No.) | ||
1000 Stanley Drive, New Britain, Connecticut |
06053 | |||
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(a) | Not applicable | |
(b) | Not applicable | |
(c) | Not applicable | |
(d) | Exhibits |
99.1 | Press release dated July 18, 2011. | |
99.1 | Financial statements and supporting schedules contained in Stanley Black & Deckers July 18, 2011 press release. |
Stanley Black & Decker, Inc. |
||||
July 18, 2011 | By: | /s/ Bruce H. Beatt | ||
Name: | Bruce H. Beatt | |||
Title: | Senior Vice President, General Counsel and Secretary | |||
Exhibit No. | Description | |
99.1
|
Stanley Black & Deckers press release dated July 18, 2011, announcing second quarter 2011 results and providing updated full year 2011 guidance. | |
99.1
|
Financial statements and supporting schedules contained in Stanley Black & Deckers July 18, 2011 press release. |
Ø | Net sales for the period were $2.6 billion, up 11% versus prior year due to unit volume (+3%), currency (+5%) and acquisitions (+3%). Price was flat. | ||
Ø | Diluted GAAP EPS, including merger & acquisition (M&A) related charges, was $1.14. Excluding M&A related charges, 2Q11 diluted EPS was $1.46. |
Ø | Excluding M&A related charges and the $0.28 benefit attributable to the favorable settlement of tax contingencies, 2Q11 EPS was $1.18, in line with managements expectations. |
Ø | The gross margin rate for the quarter was 36.9%. Excluding M&A related charges, the gross margin rate was 37.1%, down modestly from prior year levels, as cost synergies were offset by inflationary pressure. | ||
Ø | SG&A expenses were 24.2% of sales. Excluding M&A related charges, SG&A expenses were 23.5% of sales, down from a 2Q10 level of 24.0%. | ||
Ø | 2Q11 operating margin was 12.7% of sales. Excluding M&A related charges, 2Q11 operating margin was 13.6% of sales, down 10 bps from the 2Q10 operating margin of 13.7%, as inflation and the modest dilutive impact of acquisitions offset the positive impact of cost synergies. | ||
Ø | The 2Q11 tax rate was 12.4% including approximately $48.5 million ($0.28 per share) of benefits attributable to the favorable settlement of certain tax contingencies. Excluding both M&A related charges and the favorable tax settlement, the tax rate was 25.6%. |
Ø | Working capital turns for the quarter were 5.8, up 14% from 2Q10 turns. 2Q11 free cash flow was $157 million, excluding $48 million of M&A related payments. |
2Q 11 Segment Results | ||||||||||||||||||||||||
Profit | Profit Rate | |||||||||||||||||||||||
($ in M) |
Sales | Profit | Charges1 | Ex-Charges1 | Profit Rate | Ex-Charges1 | ||||||||||||||||||
CDIY |
$ | 1,364 | $ | 190.6 | $ | 4.2 | $ | 194.8 | 14.0 | % | 14.3 | % | ||||||||||||
Security |
$ | 622 | $ | 102.6 | $ | 2.1 | $ | 104.7 | 16.5 | % | 16.8 | % | ||||||||||||
Industrial |
$ | 636 | $ | 97.5 | $ | 0.3 | $ | 97.8 | 15.3 | % | 15.4 | % |
1 | M&A related charges primarily pertaining to facility closures |
2
3
4
| Organic sales growth is now expected to be 4-5%, down 1% from the prior range of 5-6%. Revenue synergies are expected to add an additional 50 basis points of growth. | ||
| Realized cost synergies in 2011 are now expected to be $200 million, $35 million higher than the original estimate of $165 million for the year. This is due to accelerated realization within 2011 versus 2012. |
5
1Q11 | 2Q11 | |||||||||||||||||||||||
1Q11A | EPS | 2Q11A | EPS | 2H11E | FY11E | |||||||||||||||||||
GAAP Tax Rate |
12.7 | % | $ | 0.92 | 12.4 | % | $ | 1.14 | 25-26 | % | 20-21 | % | ||||||||||||
Core Tax Rate Used
For Guidance (Ex-M&A Charges/Including Discrete Benefits) |
14.9 | % | $ | 1.08 | 8.0 | % | $ | 1.46 | 25-26 | % | 19-20 | % | ||||||||||||
Normalized Tax Rate (Ex-M&A Charges & Favorable Tax Settlements) |
24.3 | % | 25.6 | % | 25-26 | % | 25-26 | % | ||||||||||||||||
Shares Outstanding |
171.9 | 173.1 | 172.5 | 172.5 |
6
Contact: | Kate White Vanek Vice President, Investor Relations kate.vanek@sbdinc.com (860) 827-3833 |
7
8
SECOND QUARTER | YEAR TO DATE | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
NET SALES |
$ | 2,623.2 | $ | 2,365.6 | $ | 5,003.9 | $ | 3,627.6 | ||||||||
COSTS AND EXPENSES |
||||||||||||||||
Cost of sales |
1,655.8 | 1,596.6 | 3,154.0 | 2,402.7 | ||||||||||||
Gross Margin |
967.4 | 769.0 | 1,849.9 | 1,224.9 | ||||||||||||
% to Net Sales |
36.9 | % | 32.5 | % | 37.0 | % | 33.8 | % | ||||||||
Selling, general and administrative |
634.5 | 584.2 | 1,240.2 | 966.7 | ||||||||||||
% to Net sales |
24.2 | % | 24.7 | % | 24.8 | % | 26.6 | % | ||||||||
Operating margin |
332.9 | 184.8 | 609.7 | 258.2 | ||||||||||||
% to Net sales |
12.7 | % | 7.8 | % | 12.2 | % | 7.1 | % | ||||||||
Other net |
59.8 | 65.1 | 112.3 | 130.0 | ||||||||||||
Restructuring charges and asset impairments |
21.1 | 85.8 | 34.4 | 183.2 | ||||||||||||
Income (loss) from operations |
252.0 | 33.9 | 463.0 | (55.0 | ) | |||||||||||
Interest net |
26.8 | 24.6 | 56.3 | 42.7 | ||||||||||||
EARNINGS (LOSS) BEFORE INCOME TAXES |
225.2 | 9.3 | 406.7 | (97.7 | ) | |||||||||||
Income taxes (benefit) |
27.9 | (37.0 | ) | 51.0 | (35.5 | ) | ||||||||||
NET EARNINGS (LOSS) |
197.3 | 46.3 | 355.7 | (62.2 | ) | |||||||||||
Less: net earnings (loss) attributable to non-controlling interests |
| 0.5 | (0.3 | ) | 0.6 | |||||||||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO COMMON SHAREOWNERS |
$ | 197.3 | $ | 45.8 | $ | 356.0 | $ | (62.8 | ) | |||||||
BASIC EARNINGS (LOSS) PER SHARE OF COMMON STOCK |
$ | 1.17 | $ | 0.28 | $ | 2.12 | $ | (0.49 | ) | |||||||
DILUTED EARNINGS (LOSS) PER SHARE OF COMMON STOCK |
$ | 1.14 | $ | 0.28 | $ | 2.06 | $ | (0.49 | ) | |||||||
DIVIDENDS PER SHARE OF COMMON STOCK |
$ | 0.41 | $ | 0.33 | $ | 0.82 | $ | 0.66 | ||||||||
AVERAGE SHARES OUTSTANDING (in thousands) |
||||||||||||||||
Basic |
168,119 | 162,847 | 167,679 | 129,163 | ||||||||||||
Diluted |
173,075 | 166,084 | 172,429 | 129,163 | ||||||||||||
(Unaudited) | ||||||||
July 2, | January 1, | |||||||
2011 | 2011 | |||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 1,915.0 | $ | 1,745.4 | ||||
Accounts and notes receivable, net |
1,624.6 | 1,417.1 | ||||||
Inventories, net |
1,448.4 | 1,272.0 | ||||||
Other current assets |
351.0 | 381.1 | ||||||
Total current assets |
5,339.0 | 4,815.6 | ||||||
Property, plant and equipment, net |
1,186.4 | 1,166.5 | ||||||
Goodwill and other intangibles, net |
9,094.1 | 8,814.1 | ||||||
Other assets |
414.0 | 343.2 | ||||||
Total assets |
$ | 16,033.5 | $ | 15,139.4 | ||||
LIABILITIES AND SHAREOWNERS EQUITY |
||||||||
Short-term borrowings |
$ | 943.9 | $ | 417.7 | ||||
Accounts payable |
1,267.9 | 998.6 | ||||||
Accrued expenses |
1,166.9 | 1,325.9 | ||||||
Total current liabilities |
3,378.7 | 2,742.2 | ||||||
Long-term debt |
2,729.0 | 3,018.1 | ||||||
Other long-term liabilities |
2,342.0 | 2,309.4 | ||||||
Stanley Black & Decker, Inc.
shareowners equity |
7,531.4 | 7,017.0 | ||||||
Non-controlling interests equity |
52.4 | 52.7 | ||||||
Total liabilities and equity |
$ | 16,033.5 | $ | 15,139.4 | ||||
SECOND QUARTER | YEAR TO DATE | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
OPERATING ACTIVITIES |
||||||||||||||||
Net earnings (loss) |
$ | 197.3 | $ | 45.8 | $ | 356.0 | $ | (62.8 | ) | |||||||
Depreciation and amortization |
93.8 | 92.7 | 197.7 | 152.4 | ||||||||||||
Changes in working capital |
(5.4 | ) | (20.0 | ) | (75.7 | ) | (110.4 | ) | ||||||||
Other |
(108.4 | ) | 102.5 | (180.3 | ) | 209.1 | ||||||||||
Net cash provided by operating activities |
177.3 | 221.0 | 297.7 | 188.3 | ||||||||||||
INVESTING AND FINANCING ACTIVITIES |
||||||||||||||||
Capital and software expenditures |
(67.9 | ) | (35.1 | ) | (138.0 | ) | (57.2 | ) | ||||||||
Business acquisitions and asset disposals |
(35.6 | ) | (10.9 | ) | (80.1 | ) | (18.1 | ) | ||||||||
Cash acquired from Black & Decker |
| | | 949.4 | ||||||||||||
Investment in Niscayah |
(58.5 | ) | | (58.5 | ) | | ||||||||||
Proceeds from issuance of common stock |
30.0 | 346.9 | 85.4 | 360.9 | ||||||||||||
Purchases of short-term investments |
(42.5 | ) | | (42.5 | ) | | ||||||||||
Payments on long-term debt |
(400.9 | ) | (0.8 | ) | (401.4 | ) | (201.6 | ) | ||||||||
Net short-term borrowings (repayments) |
483.4 | (357.1 | ) | 624.8 | 78.8 | |||||||||||
Cash dividends on common stock |
(68.9 | ) | (54.6 | ) | (137.5 | ) | (88.9 | ) | ||||||||
Other |
15.1 | (16.4 | ) | 19.7 | (13.9 | ) | ||||||||||
Net cash (used in) provided by investing and financing activities |
(145.8 | ) | (128.0 | ) | (128.1 | ) | 1,009.4 | |||||||||
Increase in Cash and Cash Equivalents |
31.5 | 93.0 | 169.6 | 1,197.7 | ||||||||||||
Cash and Cash Equivalents, Beginning of Period |
1,883.5 | 1,505.4 | 1,745.4 | 400.7 | ||||||||||||
Cash and Cash Equivalents, End of Period |
$ | 1,915.0 | $ | 1,598.4 | $ | 1,915.0 | $ | 1,598.4 | ||||||||
SECOND QUARTER | YEAR TO DATE | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
NET SALES |
||||||||||||||||
Construction & DIY |
$ | 1,364.4 | $ | 1,300.0 | $ | 2,575.2 | $ | 1,849.0 | ||||||||
Security |
622.4 | 571.4 | 1,179.8 | 985.3 | ||||||||||||
Industrial |
636.4 | 494.2 | 1,248.9 | 793.3 | ||||||||||||
Total |
$ | 2,623.2 | $ | 2,365.6 | $ | 5,003.9 | $ | 3,627.6 | ||||||||
SEGMENT PROFIT |
||||||||||||||||
Construction & DIY |
$ | 190.6 | $ | 112.8 | $ | 347.1 | $ | 160.3 | ||||||||
Security |
102.6 | 67.7 | 175.3 | 131.8 | ||||||||||||
Industrial |
97.5 | 57.1 | 204.4 | 94.4 | ||||||||||||
Segment Profit |
390.7 | 237.6 | 726.8 | 386.5 | ||||||||||||
Corporate Overhead |
(57.8 | ) | (52.8 | ) | (117.1 | ) | (128.3 | ) | ||||||||
Total |
$ | 332.9 | $ | 184.8 | $ | 609.7 | $ | 258.2 | ||||||||
Segment Profit as a Percentage of Net Sales |
||||||||||||||||
Construction & DIY |
14.0 | % | 8.7 | % | 13.5 | % | 8.7 | % | ||||||||
Security |
16.5 | % | 11.8 | % | 14.9 | % | 13.4 | % | ||||||||
Industrial |
15.3 | % | 11.6 | % | 16.4 | % | 11.9 | % | ||||||||
Segment Profit |
14.9 | % | 10.0 | % | 14.5 | % | 10.7 | % | ||||||||
Corporate Overhead |
-2.2 | % | -2.2 | % | -2.3 | % | -3.5 | % | ||||||||
Total |
12.7 | % | 7.8 | % | 12.2 | % | 7.1 | % | ||||||||
SECOND QUARTER 2011 | ||||||||||||
Merger & | ||||||||||||
Acquisition- | ||||||||||||
Related | ||||||||||||
Reported | Charges1 | Normalized2 | ||||||||||
Cost of sales |
$ | 1,655.8 | $ | (4.8 | ) | $ | 1,651.0 | |||||
Gross margin |
967.4 | 4.8 | 972.2 | |||||||||
% to Net Sales |
36.9 | % | 37.1 | % | ||||||||
Selling, general and administrative |
634.5 | (18.2 | ) | 616.3 | ||||||||
% to Net Sales |
24.2 | % | 23.5 | % | ||||||||
Operating margin |
332.9 | 23.0 | 355.9 | |||||||||
% to Net Sales |
12.7 | % | 13.6 | % | ||||||||
Income taxes |
27.9 | (5.8 | ) | 22.1 | ||||||||
% to Earnings Before Income Taxes |
12.4 | % | 8.0 | % | ||||||||
Net earnings attributable to Common Shareowners |
$ | 197.3 | $ | 55.3 | $ | 252.6 | ||||||
Diluted earnings per share of common stock |
$ | 1.14 | $ | 0.32 | $ | 1.46 | ||||||
1 | Merger and acquisition-related charges relate primarily to the Black & Decker merger, including facility closure-related charges and integration costs. | |
2 | The normalized 2011 information, as reconciled to GAAP above, is considered relevant to aid analysis of the companys margin and earnings results aside from the material impact of the merger & acquisition-related charges primarily associated with the Black & Decker merger. |
SECOND QUARTER 2010 | ||||||||||||
Merger & | ||||||||||||
Acquisition- | ||||||||||||
Related | ||||||||||||
Reported | Charges3 | Normalized4 | ||||||||||
Cost of sales |
$ | 1,596.6 | $ | (123.7 | ) | $ | 1,472.9 | |||||
Gross margin |
769.0 | 123.7 | 892.7 | |||||||||
% to Net Sales |
32.5 | % | 37.7 | % | ||||||||
Selling, general and administrative |
584.2 | (15.7 | ) | 568.5 | ||||||||
% to Net Sales |
24.7 | % | 24.0 | % | ||||||||
Operating margin |
184.8 | 139.4 | 324.2 | |||||||||
% to Net Sales |
7.8 | % | 13.7 | % | ||||||||
Income taxes |
(37.0 | ) | (69.1 | ) | 32.1 | |||||||
% to Earnings (Loss) Before Income Taxes |
-397.8 | % | 13.4 | % | ||||||||
Net earnings attributable to Common Shareowners |
$ | 45.8 | $ | 160.3 | $ | 206.1 | ||||||
Diluted earnings per share of common stock |
$ | 0.28 | $ | 0.97 | $ | 1.24 |
3 | Merger and acquisition-related charges relate primarily to the Black & Decker merger, including inventory step-up, facility closure-related charges, certain executive compensation and severance costs associated with the change in control, transaction and integration costs. | |
4 | The normalized 2010 information, as reconciled to GAAP above, is considered relevant to aid analysis of the companys margin and earnings results aside from the material impact of the merger & acquisition-related charges associated with the Black & Decker merger. |
YEAR TO DATE 2011 | ||||||||||||
Merger & | ||||||||||||
Acquisition- | ||||||||||||
Related | ||||||||||||
Reported | Charges1 | Normalized2 | ||||||||||
Cost of sales |
$ | 3,154.0 | $ | (11.1 | ) | $ | 3,142.9 | |||||
Gross margin |
1,849.9 | 11.1 | 1,861.0 | |||||||||
% to Net Sales |
37.0 | % | 37.2 | % | ||||||||
Selling, general and administrative |
1,240.2 | (33.8 | ) | 1,206.4 | ||||||||
% to Net Sales |
24.8 | % | 24.1 | % | ||||||||
Operating margin |
609.7 | 44.9 | 654.6 | |||||||||
% to Net Sales |
12.2 | % | 13.1 | % | ||||||||
Income taxes |
51.0 | 3.5 | 54.5 | |||||||||
% to Earnings Before Income Taxes |
12.5 | % | 11.0 | % | ||||||||
Net earnings attributable to Common Shareowners |
$ | 356.0 | $ | 83.3 | $ | 439.3 | ||||||
Diluted earnings per share of common stock |
$ | 2.06 | $ | 0.49 | $ | 2.55 |
1 | Merger and acquisition-related charges relate primarily to the Black & Decker merger, including facility closure-related charges and integration costs. | |
2 | The normalized 2011 information, as reconciled to GAAP above, is considered relevant to aid analysis of the companys margin and earnings results aside from the material impact of the merger & acquisition-related charges primarily associated with the Black & Decker merger. |
YEAR TO DATE 2010 | ||||||||||||
Merger & | ||||||||||||
Acquisition- | ||||||||||||
Related | ||||||||||||
Reported | Charges3 | Normalized4 | ||||||||||
Cost of sales |
$ | 2,402.7 | $ | (165.3 | ) | $ | 2,237.4 | |||||
Gross margin |
1,224.9 | 165.3 | 1,390.2 | |||||||||
% to Net Sales |
33.8 | % | 38.3 | % | ||||||||
Selling, general and administrative |
966.7 | (64.7 | ) | 902.0 | ||||||||
% to Net Sales |
26.6 | % | 24.9 | % | ||||||||
Operating margin |
258.2 | 230.0 | 488.2 | |||||||||
% to Net Sales |
7.1 | % | 13.5 | % | ||||||||
Income taxes |
(35.5 | ) | (103.2 | ) | 67.7 | |||||||
% to Earnings (Loss) Before Income Taxes |
36.3 | % | 19.7 | % | ||||||||
Net (loss) earnings attributable to Common Shareowners |
$ | (62.8 | ) | $ | 339.0 | $ | 276.2 | |||||
Diluted (loss) earnings per share of common stock |
$ | (0.49 | ) | $ | 2.57 | $ | 2.10 |
3 | Merger and acquisition-related charges relate primarily to the Black & Decker merger, including inventory step-up, facility closure-related charges, certain executive compensation and severance costs associated with the change in control, transaction and integration costs. | |
4 | The normalized 2010 information, as reconciled to GAAP above, is considered relevant to aid analysis of the companys margin and earnings results aside from the material impact of the merger & acquisition-related charges associated with the Black & Decker merger. |
SECOND QUARTER 2011 | ||||||||||||
Merger & | ||||||||||||
Acquisition- | ||||||||||||
Related | ||||||||||||
Charges and | ||||||||||||
Reported | Payments1 | Normalized2 | ||||||||||
Net cash provided by operating activities |
177.3 | 33.8 | 211.1 | |||||||||
Free Cash Flow Computation3 |
||||||||||||
Operating Cash Inflow |
$ | 177.3 | $ | 211.1 | ||||||||
Less: capital and software expenditures |
(67.9 | ) | 13.8 | (54.1 | ) | |||||||
Free Cash Inflow (before dividends) |
$ | 109.4 | $ | 47.6 | $ | 157.0 | ||||||
1 | Merger and acquisition-related charges and payments relate primarily to the Black & Decker merger, including facility closure-related charges and integration costs. |
SECOND QUARTER 2010 | ||||||||||||
Merger & | ||||||||||||
Acquisition- | ||||||||||||
Related | ||||||||||||
Charges and | ||||||||||||
Reported | Payments1 | Normalized2 | ||||||||||
Net cash provided by operating activities |
221.0 | 27.2 | 248.2 | |||||||||
Free Cash Flow Computation3 |
||||||||||||
Operating Cash Inflow |
$ | 221.0 | $ | 248.2 | ||||||||
Less: capital and software expenditures |
(35.1 | ) | (35.1 | ) | ||||||||
Free Cash Inflow (before dividends) |
$ | 185.9 | $ | 213.1 | ||||||||
2, 3 | 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. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Companys common stock and business acquisitions, among other items. Normalized cash flow and free cash flow, as reconciled above, are considered meaningful pro forma metrics to aid the understanding of the companys cash flow performance aside from the material impact of Black & Decker merger-related payments and charges. |
YEAR TO DATE 2011 | ||||||||||||
Merger & | ||||||||||||
Acquisition- | ||||||||||||
Related | ||||||||||||
Charges and | ||||||||||||
Reported | Payments1 | Normalized2 | ||||||||||
Net cash provided by operating activities |
297.7 | 44.9 | 342.6 | |||||||||
Free Cash Flow Computation3 |
||||||||||||
Operating Cash Inflow |
$ | 297.7 | $ | 342.6 | ||||||||
Less: capital and software expenditures |
(138.0 | ) | 30.7 | (107.3 | ) | |||||||
Free Cash Inflow (before dividends) |
$ | 159.7 | $ | 75.6 | $ | 235.3 | ||||||
1 | Merger and acquisition-related charges and payments relate primarily to the Black & Decker merger, including facility closure-related charges and integration costs. |
YEAR TO DATE 2010 | ||||||||||||
Merger & | ||||||||||||
Acquisition- | ||||||||||||
Related | ||||||||||||
Charges and | ||||||||||||
Reported | Payments4 | Normalized2 | ||||||||||
Net cash provided by operating activities |
188.3 | 119.2 | 307.5 | |||||||||
Free Cash Flow Computation3 |
||||||||||||
Operating Cash Inflow |
$ | 188.3 | $ | 307.5 | ||||||||
Less: capital and software expenditures |
(57.2 | ) | (57.2 | ) | ||||||||
Free Cash Inflow (before dividends) |
$ | 131.1 | $ | 250.3 | ||||||||
2, 3 | 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. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Companys common stock and business acquisitions, among other items. Normalized cash flow and free cash flow, as reconciled above, are considered meaningful pro forma metrics to aid the understanding of the companys cash flow performance aside from the material impact of Black & Decker merger-related payments and charges. | |
4 | Merger and acquisition-related charges and payments relate primarily to the Black & Decker merger, including inventory step-up (non-cash), facility closure-related charges, certain executive compensation and severance costs associated with change in control, transaction and integration costs. |
SECOND QUARTER 2011 | ||||||||||||
Merger & | ||||||||||||
Acquisition- | ||||||||||||
Related | ||||||||||||
Reported | Charges1 | Normalized2 | ||||||||||
SEGMENT PROFIT |
||||||||||||
Construction & DIY |
$ | 190.6 | $ | 4.2 | $ | 194.8 | ||||||
Security |
102.6 | 2.1 | 104.7 | |||||||||
Industrial |
97.5 | 0.3 | 97.8 | |||||||||
Segment Profit |
390.7 | 6.6 | 397.3 | |||||||||
Corporate Overhead |
(57.8 | ) | 16.4 | (41.4 | ) | |||||||
Total |
$ | 332.9 | $ | 23.0 | $ | 355.9 | ||||||
Segment Profit as a Percentage of Net Sales |
||||||||||||
Construction & DIY |
14.0 | % | 14.3 | % | ||||||||
Security |
16.5 | % | 16.8 | % | ||||||||
Industrial |
15.3 | % | 15.4 | % | ||||||||
Segment Profit |
14.9 | % | 15.1 | % | ||||||||
Corporate Overhead |
-2.2 | % | -1.6 | % | ||||||||
Total |
12.7 | % | 13.6 | % | ||||||||
1 | Merger and acquisition-related charges relate primarily to the Black & Decker merger, including facility closure-related charges and integration costs. | |
2 | The normalized 2011 business segment information, as reconciled to GAAP above, is considered relevant to aid analysis of the companys segment profit results aside from the material impact of the merger & acquisition-related charges associated with the Black & Decker merger. |
SECOND QUARTER 2010 | ||||||||||||
Merger & | ||||||||||||
Acquisition- | ||||||||||||
Related | ||||||||||||
Reported | Charges3 | Normalized4 | ||||||||||
SEGMENT PROFIT |
||||||||||||
Construction & DIY |
$ | 112.8 | $ | 88.4 | $ | 201.2 | ||||||
Security |
67.7 | 21.7 | 89.4 | |||||||||
Industrial |
57.1 | 13.6 | 70.7 | |||||||||
Segment Profit |
237.6 | 123.7 | 361.3 | |||||||||
Corporate Overhead |
(52.8 | ) | 15.7 | (37.1 | ) | |||||||
Total |
$ | 184.8 | $ | 139.4 | $ | 324.2 | ||||||
Segment Profit as a Percentage of Net Sales |
||||||||||||
Construction & DIY |
8.7 | % | 15.5 | % | ||||||||
Security |
11.8 | % | 15.6 | % | ||||||||
Industrial |
11.6 | % | 14.3 | % | ||||||||
Segment Profit |
10.0 | % | 15.3 | % | ||||||||
Corporate Overhead |
-2.2 | % | -1.6 | % | ||||||||
Total |
7.8 | % | 13.7 | % | ||||||||
3 | Merger and acquisition-related charges and payments relate primarily to the Black & Decker merger, including inventory step-up (non-cash), facility closure-related charges, certain executive compensation and severance costs associated with change in control, transaction and integration costs. | |
4 | The normalized 2010 business segment information, as reconciled to GAAP above, is considered relevant to aid analysis of the companys segment profit results aside from the material impact of the merger & acquisition-related charges associated with the Black & Decker merger. |
YEAR TO DATE 2011 | ||||||||||||
Merger & | ||||||||||||
Acquisition- | ||||||||||||
Related | ||||||||||||
Reported | Charges1 | Normalized2 | ||||||||||
SEGMENT PROFIT |
||||||||||||
Construction & DIY |
$ | 347.1 | $ | 6.6 | $ | 353.7 | ||||||
Security |
175.3 | 6.6 | 181.9 | |||||||||
Industrial |
204.4 | 0.3 | 204.7 | |||||||||
Segment Profit |
726.8 | 13.5 | 740.3 | |||||||||
Corporate Overhead |
(117.1 | ) | 31.4 | (85.7 | ) | |||||||
Total |
$ | 609.7 | $ | 44.9 | $ | 654.6 | ||||||
Segment Profit as a Percentage of Net Sales |
||||||||||||
Construction & DIY |
13.5 | % | 13.7 | % | ||||||||
Security |
14.9 | % | 15.4 | % | ||||||||
Industrial |
16.4 | % | 16.4 | % | ||||||||
Segment Profit |
14.5 | % | 14.8 | % | ||||||||
Corporate Overhead |
-2.3 | % | -1.7 | % | ||||||||
Total |
12.2 | % | 13.1 | % | ||||||||
1 | Merger and acquisition-related charges relate primarily to the Black & Decker merger, including facility closure-related charges and integration costs. | |
2 | The normalized 2011 business segment information, as reconciled to GAAP above, is considered relevant to aid analysis of the companys segment profit results aside from the material impact of the merger & acquisition-related charges associated with the Black & Decker merger. |
YEAR TO DATE 2010 | ||||||||||||
Merger & | ||||||||||||
Acquisition- | ||||||||||||
Related | ||||||||||||
Reported | Charges3 | Normalized4 | ||||||||||
SEGMENT PROFIT |
||||||||||||
Construction & DIY |
$ | 160.3 | $ | 120.3 | $ | 280.6 | ||||||
Security |
131.8 | 27.0 | 158.8 | |||||||||
Industrial |
94.4 | 18.0 | 112.4 | |||||||||
Segment Profit |
386.5 | 165.3 | 551.8 | |||||||||
Corporate Overhead |
(128.3 | ) | 64.7 | (63.6 | ) | |||||||
Total |
$ | 258.2 | $ | 230.0 | $ | 488.2 | ||||||
Segment Profit as a Percentage of Net Sales |
||||||||||||
Construction & DIY |
8.7 | % | 15.2 | % | ||||||||
Security |
13.4 | % | 16.1 | % | ||||||||
Industrial |
11.9 | % | 14.2 | % | ||||||||
Segment Profit |
10.7 | % | 15.2 | % | ||||||||
Corporate Overhead |
-3.5 | % | -1.8 | % | ||||||||
Total |
7.1 | % | 13.5 | % | ||||||||
3 | Merger and acquisition-related charges and payments relate primarily to the Black & Decker merger, including inventory step-up (non-cash), facility closure-related charges, certain executive compensation and severance costs associated with change in control, transaction and integration costs. | |
4 | The normalized 2010 business segment information, as reconciled to GAAP above, is considered relevant to aid analysis of the companys segment profit results aside from the material impact of the merger & acquisition-related charges associated with the Black & Decker merger. |
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