Parent and Subsidiary Debt Guarantees (Tables)

3 Months Ended

Mar. 31, 2012

Condensed Consolidating Statement of Operations

Stanley Black & Decker, Inc.

Condensed Consolidating Statements of Operations and Comprehensive Income

(Unaudited, Millions of Dollars)

Three Months Ended March 31, 2012

	Parent Stanley Black & Decker, Inc.			The Black & Decker Corporation			Non-Guarantor Subsidiaries			Eliminations			Consolidated
NET SALES	$	338.4		$	—		$	2,404.5		$	(90.0	)	$	2,652.9
COSTS AND EXPENSES
Cost of sales		220.3			—			1,518.1			(71.5	)		1,666.9
Selling, general and administrative		168.4			6.1			523.0			(18.5	)		679.0
Other - net		(12.9	)		(17.8	)		111.4			—			80.7
Restructuring charges		—			—			37.4			—			37.4
Interest expense, net		20.4			11.7			(0.9	)		—			31.2
		396.2			—			2,189.0			(90.0	)		2,495.2
(Loss) earnings from continuing operations before income taxes and equity in earnings of subsidiaries		(57.8	)		—			215.5			—			157.7
Income taxes (benefit) on continuing operations before equity in earnings of subsidiaries		(17.9	)		—			54.5			—			36.6
Equity in earnings of subsidiaries		161.7			123.5			—			(285.2	)		—
Earnings from continuing operations		121.8			123.5			161.0			(285.2	)		121.1
Less: Net loss attributable to non-controlling interests		—			—			(0.7	)		—			(0.7	)
NET EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS	$	121.8		$	123.5		$	161.7		$	(285.2	)	$	121.8
Total Comprehensive Income Attributable to Common Shareowners	$	89.2		$	124.7		$	270.0		$	(285.2	)	$	198.7

Stanley Black & Decker, Inc.

Condensed Consolidating Statement of Operations and Comprehensive Income

(Unaudited, Millions of Dollars)

Three Months Ended April 2, 2011

	Parent Stanley Black & Decker, Inc.			The Black & Decker Corporation			Non-Guarantor Subsidiaries			Eliminations			Consolidated
NET SALES	$	375.2		$	—		$	2,094.5		$	(108.2	)	$	2,361.5
COSTS AND EXPENSES
Cost of sales		253.8			—			1,318.5			(88.2	)		1,484.1
Selling, general and administrative		167.9			1.5			452.3			(20.0	)		601.7
Other - net		(14.3	)		(39.5	)		106.3			—			52.5
Restructuring charges		1.5			—			11.8			—			13.3
Interest expense, net		18.6			13.6			(2.6	)		—			29.6
		427.5			(24.4	)		1,886.3			(108.2	)		2,181.2
(Loss) earnings from continuing operations before income taxes (benefit) and equity in earnings of subsidiaries		(52.3	)		24.4			208.2			—			180.3
Income taxes (benefit) on continuing operations before equity in earnings of subsidiaries		(19.2	)		8.9			33.5			—			23.2
Equity in earnings of subsidiaries		190.2			123.0			—			(313.2	)		—
Earnings from continuing operations		157.1			138.5			174.7			(313.2	)		157.1
Less: Net (loss) attributable to non-controlling interests		—			—			(0.3	)		—			(0.3	)
Net earnings from continuing operations attributable to common shareowners	$	157.1		$	138.5		$	175.0		$	(313.2	)	$	157.4
Net earnings from discontinued operations	$	1.3		$	—		$	1.3		$	(1.3)		$	1.3
NET EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS	$	158.4		$	138.5		$	176.3		$	(314.5	)	$	158.7
Total Comprehensive Income Attributable to Common Shareowners	$	152.8		$	499.7		$	(29.7	)	$	(314.5	)	$	308.3

Condensed Consolidating Balance Sheet

Stanley Black & Decker, Inc.

Condensed Consolidating Balance Sheet

(Unaudited, Millions of Dollars)

March 31, 2012

	Parent Stanley Black & Decker, Inc.			The Black & Decker Corporation			Non- Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets
Cash and cash equivalents	$	(1.1	)	$	19.7		$	865.0		$	—		$	883.6
Accounts and notes receivable, net		73.7			—			1,652.1			—			1,725.8
Inventories, net		152.4			—			1,437.3			—			1,589.7
Other current assets		63.8			—			340.4			—			404.2
Total Current Assets		288.8			19.7			4,294.8			—			4,603.3
Property, Plant and Equipment, net		191.1			—			1,077.1			—			1,268.2
Goodwill and intangibles, net		181.1			1,623.5			8,373.4			—			10,178.0
Investment in Subsidiaries		10,722.1			4,298.3			—			(15,020.4	)		—
Intercompany Receivables		—			8,928.7			8,886.9			(17,815.6	)		—
Other Assets		31.4			45.8			223.6			—			300.8
Total Assets	$	11,414.5		$	14,916.0		$	22,855.8		$	(32,836.0	)	$	16,350.3
LIABILITIES AND SHAREOWNERS’ EQUITY
Current Liabilities
Short-term borrowings	$	196.9		$	—		$	0.1		$	—		$	197.0
Current maturities of long-term debt		529.4			4.8			2.5			—			536.7
Accounts payable and accrued expenses		206.3			(39.3	)		2,536.4			—			2,703.4
Total Current Liabilities		932.6			(34.5	)		2,539.0			—			3,437.1
Intercompany Payables		1,568.7			8,508.7			7,738.2			(17,815.6	)		—
Long-Term Debt		1,713.7			1,025.1			166.9			—			2,905.7
Other Liabilities		(19.0	)		164.7			2,600.2			—			2,745.9
Accumulated other comprehensive (loss)		(167.8	)		(44.7	)		(59.8	)		—			(272.3	)
Other Shareowners’ Equity		7,386.3			5,296.7			9,812.8			(15,020.4	)		7,475.4
Non-controlling interests		—			—			58.5			—			58.5
Total Shareowners’ Equity		7,218.5			5,252.0			9,811.5			(15,020.4	)		7,261.6
Total Liabilities and Shareowners’ Equity	$	11,414.5		$	14,916.0		$	22,855.8		$	(32,836.0	)	$	16,350.3

Stanley Black & Decker, Inc.

Condensed Consolidating Balance Sheet

(Millions of Dollars)

December 31, 2011

	Parent Stanley Black & Decker, Inc.			The Black & Decker Corporation			Non- Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets
Cash and cash equivalents	$	56.2		$	1.4		$	849.3		$	—		$	906.9
Accounts and notes receivable, net		97.8			—			1,455.4			—			1,553.2
Inventories, net		117.2			—			1,321.4			—			1,438.6
Other current assets		90.7			10.4			322.9			—			424.0
Total Current Assets		361.9			11.8			3,949.0			—			4,322.7
Property, Plant and Equipment, net		193.1			—			1,057.8			—			1,250.9
Goodwill and intangibles, net		181.9			1,623.5			8,231.7			—			10,037.1
Investment in Subsidiaries		10,410.8			4,174.9			—			(14,585.7	)		—
Intercompany Receivables		—			9,210.6			8,700.4			(17,911.0	)		—
Other Assets		35.8			55.2			247.3			—			338.3
Total Assets	$	11,183.5		$	15,076.0		$	22,186.2		$	(32,496.7	)	$	15,949.0
LIABILITIES AND SHAREOWNERS’ EQUITY
Current Liabilities
Short-term borrowings	$	—		$	—		$	0.2		$	—		$	0.2
Current maturities of long-term debt		523.8			—			2.6			—			526.4
Accounts payable and accrued expenses		382.3			(0.8	)		2,360.4			—			2,741.9
Total Current Liabilities		906.1			(0.8	)		2,363.2			—			3,268.5
Intercompany Payables		1,369.9			8,502.6			8,038.5			(17,911.0	)		—
Long-Term Debt		1,722.2			1,031.9			171.7			—			2,925.8
Other Liabilities		(32.3	)		167.2			2,553.0			—			2,687.9
Accumulated other comprehensive (loss)		(135.2	)		(45.9	)		(168.1	)		—			(349.2	)
Other Shareowners’ Equity		7,352.8			5,421.0			9,164.7			(14,585.7	)		7,352.8
Non-controlling interests		—			—			63.2			—			63.2
Total Shareowners’ Equity		7,217.6			5,375.1			9,059.8			(14,585.7	)		7,066.8
Total Liabilities and Shareowners’ Equity	$	11,183.5		$	15,076.0		$	22,186.2		$	(32,496.7	)	$	15,949.0

Condensed Consolidating Statement of Cash Flows

Stanley Black & Decker, Inc.

Condensed Consolidating Statements of Cash Flow

(Unaudited, Millions of Dollars)

Three Months Ended March 31, 2012

	Parent Stanley Black & Decker, Inc.			The Black & Decker Corporation			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash (used in) provided by operating activities	$	(267.9	)	$	(27.9	)	$	263.5		$	—		$	(32.3	)
Investing Activities
Capital expenditures		(10.3	)		—			(51.2	)		—			(61.5	)
Business acquisitions, net of cash acquired		(93.8	)		—			(20.9	)		—			(114.7	)
Proceeds from sale of assets		0.9			—			1.0			—			1.9
Intercompany payables and receivables		175.4			185.0			—			(360.4	)		—
Proceeds on net investment hedge settlements		—			2.0			—			—			2.0
Cash (used in) provided by investing activities		72.2			187.0			(71.1	)		(360.4	)		(172.3	)
Financing Activities
Payments on long-term debt		(0.3	)		—			—			—			(0.3	)
Stock purchase contract fees		(0.8	)		—			—			—			(0.8	)
Net short-term borrowings (repayments)		196.9			—			(0.1	)		—			196.8
Cash dividends on common stock		(69.9	)		—			—			—			(69.9	)
Termination of interest rate swaps		15.2			20.6			—			—			35.8
Termination of forward starting interest rate swap		(56.4	)		—			—			—			(56.4	)
Proceeds from the issuance of common stock		64.6			—			—			—			64.6
Purchase of common stock for treasury		(10.9	)		—			—			—			(10.9	)
Intercompany payables and receivables		—			(161.4	)		(199.0	)		360.4			—
Cash (used in) provided by financing activities		138.4			(140.8	)		(199.1	)		360.4			158.9
Effect of exchange rate changes on cash and cash equivalents		—			—			22.4			—			22.4
Change in cash and cash equivalents		(57.3	)		18.3			15.7			—			(23.3	)
Cash and cash equivalents, beginning of period		56.2			1.4			849.3			—			906.9
Cash and cash equivalents, end of period	$	(1.1	)	$	19.7		$	865.0		$	—		$	883.6

Stanley Black & Decker, Inc.

Condensed Consolidating Statements of Cash Flow

(Unaudited, Millions of Dollars)

Three Months Ended April 2, 2011

	Parent Stanley Black & Decker, Inc.			The Black & Decker Corporation			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash (used in) provided by operating activities	$	(236.5	)	$	184.4		$	172.4		$	—		$	120.3
Investing Activities
Capital expenditures		(17.6	)		—			(52.5	)		—			(70.1	)
Business acquisitions, net of cash acquired		—			—			(68.3	)		—			(68.3	)
Proceeds from sale of assets		—			—			23.8			—			23.8
Intercompany payables and receivables		100.1			137.6			—			(237.7	)		—
(Payments) on net investment hedge settlements		(18.4	)		(4.3	)		—			—			(22.7	)
Cash (used in) provided by investing activities		64.1			133.3			(97.0	)		(237.7	)		(137.3	)
Financing Activities
Payments on long-term debt		(0.5	)		—			—			—			(0.5	)
Stock purchase contract fees		(0.8	)		—			—			—			(0.8	)
Net short-term borrowings (repayments)		142.9			—			(1.5	)		—			141.4
Cash dividends on common stock		(68.6	)		—			—			—			(68.6	)
Proceeds from the issuance of common stock		55.4			—			—			—			55.4
Purchase of common stock for treasury		(0.7	)		—			—			—			(0.7	)
Intercompany payables and receivables		—			(319.2	)		81.5			237.7			—
Cash (used in) provided by financing activities		127.7			(319.2	)		80.0			237.7			126.2
Effect of exchange rate changes on cash and cash equivalents		—			—			28.8			—			28.8
Change in cash and cash equivalents		(44.7	)		(1.5	)		184.2			—			138.0
Cash and cash equivalents, beginning of period		(5.0	)		3.5			1,744.3			—			1,742.8
Cash and cash equivalents, end of period	$	(49.7	)	$	2.0		$	1,928.5		$	—		$	1,880.8