EX-99.1 2 d463636dex991.htm SUPPLEMENTARY FINANCIAL INFORMATION Supplementary Financial Information

Exhibit 99.1

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES, AS ADJUSTED, TO CORRESPONDING

NON-GAAP FINANCIAL MEASURES, AS ADJUSTED

(Unaudited, Millions of Dollars Except Per Share Amounts)

 

    FIRST QUARTER 2012     SECOND QUARTER 2012     THIRD QUARTER 2012     YEAR TO DATE 2012  
    GAAP1     Merger &
Acquisition-
Related and
Other
Charges2		     Normalized3     GAAP1     Merger &
Acquisition-
Related and
Other
Charges2		     Normalized3     GAAP1     Merger &
Acquisition-
Related and
Other
Charges2		     Normalized3     GAAP1     Merger &
Acquisition-
Related and
Other
Charges2		     Normalized3  

Net Sales

   $ 2,427.1      $ —        $ 2,427.1      $ 2,568.0      $ —        $ 2,568.0      $ 2,526.9      $ —        $ 2,526.9      $ 7,522.0      $ —        $ 7,522.0   

Gross margin

     912.2        2.3        914.5        930.5        4.3        934.8        913.7        11.7        925.4        2,756.4        18.3        2,774.7   

% of Net Sales

     37.6 %        37.7 %      36.2 %        36.4 %      36.2 %        36.6 %      36.6 %        36.9 % 

Selling, general and administrative

     637.8        (27.4 )      610.4        626.4        (33.6 )      592.8        614.0        (38.9 )      575.1        1,878.2        (99.9 )      1,778.3   

% of Net Sales

     26.3 %        25.1 %      24.4 %        23.1 %      24.3 %        22.8 %      25.0 %        23.6 % 

Operating margin

     274.4        29.7        304.1        304.1        37.9        342.0        299.7        50.6        350.3        878.2        118.2        996.4   

% of Net Sales

     11.3 %        12.5 %      11.8 %        13.3 %      11.9 %        13.9 %      11.7 %        13.2 % 

Earnings from continuing operations before income taxes

     135.2        79.8        215.0        164.7        73.9        238.6        99.2        157.1        256.3        399.1        310.8        709.9   

Income taxes on continuing operations

     29.8        20.7        50.5        38.6        11.3        49.9        12.5        44.6        57.1        80.9        76.6        157.5   

Net earnings from continuing operations

     106.1        59.1        165.2        126.4        62.6        189.0        86.9        112.5        199.4        319.4        234.2        553.6   

Diluted earnings per share of common stock

   $ 0.63      $ 0.35      $ 0.98      $ 0.75      $ 0.37      $ 1.13      $ 0.52      $ 0.68      $ 1.20      $ 1.91      $ 1.40      $ 3.30   

 

1 

Reported, as adjusted for Hardware and Home Improvement (“HHI”) divestiture. HHI has been excluded from the continuing operations of Stanley Black & Decker and the net of its operations, as well as the related gain on the sale, will be reported as a discontinued operation.

2 

Merger and acquisition-related charges, as adjusted for HHI divestiture, relate primarily to the Black & Decker merger and Niscayah acquisition, including facility closure-related charges, employee-related charges, integration costs, as well as cost containment charges. Other charges relate to the loss on extinguishment of debt.

3 

The normalized 2012 information adjusted for the HHI divestiture, as reconciled to GAAP adjusted for HHI divestiture above, is considered relevant to aid analysis of the company’s margin and earnings results aside from the material impact of the merger & acquisition-related charges as well as charges associated with the loss on extinguishment of debt. Normalized earnings from continuing operations before income taxes includes other - net of $57.7 million in the first quarter, $71.0 million in the second quarter, $59.8 million in the third quarter, and $188.5 million on a year to date basis.

 

Page 1

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES, AS ADJUSTED, TO CORRESPONDING

NON-GAAP FINANCIAL MEASURES, AS ADJUSTED

(Unaudited, Millions of Dollars Except Per Share Amounts)

 

     FIRST QUARTER 2011     SECOND QUARTER 2011     THIRD QUARTER 2011  
     GAAP1     Merger &
Acquisition-
Related
Charges2		     Normalized3     GAAP1     Merger &
Acquisition-
Related
Charges2		     Normalized3     GAAP1     Merger &
Acquisition-
Related
Charges2		     Normalized3  

Net Sales

    $ 2,142.7      $ —        $ 2,142.7      $ 2,348.2      $ —        $ 2,348.2      $ 2,379.2      $ 0.9      $ 2,380.1   

Gross margin

      803.9        2.4        806.3        871.6        3.9        875.5        882.3        8.3        890.6   

% of Net Sales

      37.5 %        37.6 %      37.1 %        37.3 %      37.1 %        37.4 % 

Selling, general and administrative

      554.8        (15.3 )      539.5        589.7        (18.2 )      571.5        596.7        (21.6 )      575.1   

% of Net Sales

      25.9 %        25.2 %      25.1 %        24.3 %      25.1 %        24.2 % 

Operating margin

      249.1        17.7        266.8        281.9        22.1        304.0        285.6        29.9        315.5   

% of Net Sales

      11.6 %        12.5 %      12.0 %        12.9 %      12.0 %        13.3 % 

Earnings from continuing operations before income taxes

      158.8        32.3        191.1        180.5        47.4        227.9        161.7        76.9        238.6   

Income taxes on continuing operations

      16.9        7.5        24.4        14.6        (6.6 )      8.0        24.5        19.4        43.9   

Net earnings from continuing operations

      142.2        24.8        167.0        165.9        54.0        219.9        136.5        57.5        194.0   

Diluted earnings per share of common stock

    $ 0.83      $ 0.14      $ 0.97      $ 0.96      $ 0.31      $ 1.27      $ 0.81      $ 0.34      $ 1.15   
     FOURTH QUARTER 2011     YEAR TO DATE 2011        
     GAAP1     Merger &
Acquisition-
Related
Charges2		     Normalized3     GAAP1     Merger &
Acquisition-
Related
Charges2		     Normalized3    

Net Sales

    $ 2,565.4      $ 2.8      $ 2,568.2      $ 9,435.5      $ 3.7      $ 9,439.2     

Gross margin

      910.4        6.8        917.2        3,468.2        21.4        3,489.6     

% of Net Sales

      35.5 %        35.7 %      36.8 %        37.0 %   

Selling, general and administrative

      639.7        (43.2 )      596.5        2,380.9        (98.3 )      2,282.6     

% of Net Sales

      24.9 %        23.2 %      25.2 %        24.2 %   

Operating margin

      270.7        50.0        320.7        1,087.3        119.7        1,207.0     

% of Net Sales

      10.6 %        12.5 %      11.5 %        12.8 %   

Earnings from continuing operations before income taxes

      147.4        79.0        226.4        648.4        235.6        884.0     

Income taxes on continuing operations

      (5.9 )      29.4        23.5        50.1        49.7        99.8     

Net earnings from continuing operations

      153.8        49.6        203.4        598.4        185.9        784.3     

Diluted earnings per share of common stock

    $ 0.92      $ 0.30      $ 1.22      $ 3.52      $ 1.09      $ 4.61     

 

1 

Reported, as adjusted for Hardware and Home Improvement (“HHI”) divestiture. HHI has been excluded from the continuing operations of Stanley Black & Decker and the net of its operations, as well as the related gain on the sale, will be reported as a discontinued operation.

2 

Merger and acquisition-related charges, as adjusted for HHI divestiture, relate primarily to the Black & Decker merger and Niscayah acquisition, including facility closure-related charges, employee-related charges and integration costs.

3 

The normalized 2011 information adjusted for the HHI divestiture, as reconciled to GAAP adjusted for HHI divestiture above, is considered relevant to aid analysis of the company’s margin and earnings results aside from the material impact of the merger & acquisition-related charges. Normalized earnings from continuing operations before income taxes includes other - net of $44.7 million in the first quarter, $47.9 million in the second quarter, $50.0 million in the third quarter, $64.1 million in the fourth quarter, and $206.7 million on a year to date basis.

 

 

Page 2

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES, AS ADJUSTED, TO CORRESPONDING

NON-GAAP FINANCIAL MEASURES, AS ADJUSTED

(Unaudited, Millions of Dollars)

 

     FIRST QUARTER 2012     SECOND QUARTER 2012     THIRD QUARTER 2012     YEAR TO DATE 2012  
     GAAP1     Merger &
Acquisition-
Related
Charges2		      Normalized3     GAAP1     Merger &
Acquisition-
Related
Charges2		      Normalized3     GAAP1     Merger &
Acquisition-
Related
Charges2		      Normalized3     GAAP1     Merger &
Acquisition-
Related
Charges2		      Normalized3  

NET SALES

                             

Construction & DIY

    $ 1,173.0      $ —         $ 1,173.0      $ 1,332.3      $ —         $ 1,332.3      $ 1,316.7      $ —         $ 1,316.7      $ 3,822.0      $ —         $ 3,822.0   

Security

      592.1        —           592.1        601.0        —           601.0        589.3        —           589.3        1,782.4        —           1,782.4   

Industrial

      662.0        —           662.0        634.7        —           634.7        620.9        —           620.9        1,917.6        —           1,917.6   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total

    $ 2,427.1      $ —         $ 2,427.1      $ 2,568.0      $ —         $ 2,568.0      $ 2,526.9      $ —         $ 2,526.9      $ 7,522.0      $ —         $ 7,522.0   

SEGMENT PROFIT

                             

Construction & DIY

    $ 148.1      $ 3.3       $ 151.4      $ 196.9      $ 10.5       $ 207.4      $ 186.9      $ 17.2       $ 204.1      $ 531.9      $ 31.0       $ 562.9   

Security

      69.8        6.9         76.7        70.1        8.7         78.8        80.8        10.3         91.1        220.7        25.9         246.6   

Industrial

      122.9        2.0         124.9        93.6        1.0         94.6        93.8        0.6         94.4        310.3        3.6         313.9   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Segment Profit

      340.8        12.2         353.0        360.6        20.2         380.8        361.5        28.1         389.6        1,062.9        60.5         1,123.4   

Corporate Overhead

      (66.4 )      17.5         (48.9 )      (56.5 )      17.7         (38.8 )      (61.8 )      22.5         (39.3 )      (184.7 )      57.7         (127.0 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total

    $ 274.4      $ 29.7       $ 304.1      $ 304.1      $ 37.9       $ 342.0      $ 299.7      $ 50.6       $ 350.3      $ 878.2      $ 118.2       $ 996.4   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Segment Profit as a Percentage of Net Sales

                             

Construction & DIY

      12.6 %         12.9 %      14.8 %         15.6 %      14.2 %         15.5 %      13.9 %         14.7 % 

Security

      11.8 %         13.0 %      11.7 %         13.1 %      13.7 %         15.5 %      12.4 %         13.8 % 

Industrial

      18.6 %         18.9 %      14.7 %         14.9 %      15.1 %         15.2 %      16.2 %         16.4 % 
  

 

 

       

 

 

    

 

 

       

 

 

    

 

 

       

 

 

    

 

 

       

 

 

  

Segment Profit

      14.0 %         14.5 %      14.0 %         14.8 %      14.3 %         15.4 %      14.1 %         14.9 % 

Corporate Overhead

      (2.7 %)         (2.0 %)      (2.2 %)         (1.5 %)      (2.4 %)         (1.5 %)      (2.4 %)         (1.7 %) 
  

 

 

       

 

 

    

 

 

       

 

 

    

 

 

       

 

 

    

 

 

       

 

 

  

Total

      11.3 %         12.5 %      11.8 %         13.3 %      11.9 %         13.9 %      11.7 %         13.2 % 
  

 

 

       

 

 

    

 

 

       

 

 

    

 

 

       

 

 

    

 

 

       

 

 

  

 

1 

Reported, as adjusted for Hardware and Home Improvement (“HHI”) divestiture. HHI has been excluded from the continuing operations of Stanley Black & Decker and the net of its operations, as well as the related gain on the sale, will be reported as a discontinued operation.

2 

Merger and acquisition-related charges, as adjusted for HHI divestiture, relate primarily to the Black & Decker merger and Niscayah acquisition, including facility closure-related charges, employee-related charges and integration costs.

3 

The normalized 2012 business segment information adjusted for the HHI divestiture, as reconciled to GAAP adjusted for the HHI divestiture above, is considered relevant to aid analysis of the company’s segment profit results aside from the material impact of the merger and acquisition-related charges.

 

Page 3

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES, AS ADJUSTED, TO CORRESPONDING

NON-GAAP FINANCIAL MEASURES, AS ADJUSTED

(Unaudited, Millions of Dollars)

 

     FIRST QUARTER 2011     SECOND QUARTER 2011     THIRD QUARTER 2011  
     GAAP1     Merger &
Acquisition-
Related
Charges2		      Normalized3     GAAP1     Merger &
Acquisition-
Related
Charges2		      Normalized3     GAAP1     Merger &
Acquisition-
Related
Charges2		      Normalized3  

NET SALES

                      

Construction & DIY

    $ 1,154.8      $ —         $ 1,154.8      $ 1,304.3      $ —         $ 1,304.3      $ 1,281.8      $ —         $ 1,281.8   

Security

      387.0        —           387.0        418.2        —           418.2        463.5        0.9         464.4   

Industrial

      600.9        —           600.9        625.7        —           625.7        633.9        —           633.9   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total

    $ 2,142.7      $ —         $ 2,142.7      $ 2,348.2      $ —         $ 2,348.2      $ 2,379.2      $ 0.9       $ 2,380.1   

SEGMENT PROFIT

                      

Construction & DIY

    $ 145.2      $ 2.4       $ 147.6      $ 175.7      $ 4.2       $ 179.9      $ 160.1      $ 6.7       $ 166.8   

Security

      59.5        0.3         59.8        68.7        1.2         69.9        75.3        3.8         79.1   

Industrial

      103.7        —           103.7        95.3        0.3         95.6        105.5        0.5         106.0   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Segment Profit

      308.4        2.7         311.1        339.7        5.7         345.4        340.9        11.0         351.9   

Corporate Overhead

      (59.3 )      15.0         (44.3 )      (57.8 )      16.4         (41.4 )      (55.3 )      18.9         (36.4 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total

    $ 249.1      $ 17.7       $ 266.8      $ 281.9      $ 22.1       $ 304.0      $ 285.6      $ 29.9       $ 315.5   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Segment Profit as a Percentage of Net Sales

                      

Construction & DIY

      12.6 %         12.8 %      13.5 %         13.8 %      12.5 %         13.0 % 

Security

      15.4 %         15.5 %      16.4 %         16.7 %      16.2 %         17.0 % 

Industrial

      17.3 %         17.3 %      15.2 %         15.3 %      16.6 %         16.7 % 
  

 

 

       

 

 

    

 

 

       

 

 

    

 

 

       

 

 

  

Segment Profit

      14.4 %         14.5 %      14.5 %         14.7 %      14.3 %         14.8 % 

Corporate Overhead

      (2.8 %)         (2.0 %)      (2.5 %)         (1.8 %)      (2.3 %)         (1.5 %) 
  

 

 

       

 

 

    

 

 

       

 

 

    

 

 

       

 

 

  

Total

      11.6 %         12.5 %      12.0 %         12.9 %      12.0 %         13.3 % 
  

 

 

       

 

 

    

 

 

       

 

 

    

 

 

       

 

 

  
     FOURTH QUARTER 2011     YEAR TO DATE 2011        
     GAAP1     Merger &
Acquisition-
Related
Charges2		      Normalized3     GAAP1     Merger &
Acquisition-
Related
Charges2		      Normalized3    

NET SALES

                 

Construction & DIY

    $ 1,266.7      $ —         $ 1,266.7      $ 5,007.6      $ —         $ 5,007.6     

Security

      657.8        2.8         660.6        1,926.5        3.7         1,930.2     

Industrial

      640.9        —           640.9        2,501.4        —           2,501.4     
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

Total

    $ 2,565.4      $ 2.8       $ 2,568.2      $ 9,435.5      $ 3.7       $ 9,439.2     

 

SEGMENT PROFIT

                 

Construction & DIY

    $ 153.8      $ 6.5       $ 160.3      $ 634.8      $ 19.8       $ 654.6     

Security

      93.6        10.0         103.6        297.1        15.3         312.4     

Industrial

      96.2        8.6         104.8        400.7        9.4         410.1     
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

Segment Profit

      343.6        25.1         368.7        1,332.6        44.5         1,377.1     

Corporate Overhead

      (72.9 )      24.9         (48.0 )      (245.3 )      75.2         (170.1 )   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

Total

    $ 270.7      $ 50.0       $ 320.7      $ 1,087.3      $ 119.7       $ 1,207.0     
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

Segment Profit as a Percentage of Net Sales

                 

Construction & DIY

      12.1 %         12.7 %      12.7 %         13.1 %   

Security

      14.2 %         15.7 %      15.4 %         16.2 %   

Industrial

      15.0 %         16.4 %      16.0 %         16.4 %   
  

 

 

       

 

 

    

 

 

       

 

 

    

Segment Profit

      13.4 %         14.4 %      14.1 %         14.6 %   

Corporate Overhead

      (2.8 %)         (1.9 %)      (2.6 %)         (1.8 %)   
  

 

 

       

 

 

    

 

 

       

 

 

    

Total

      10.6 %         12.5 %      11.5 %         12.8 %   
  

 

 

       

 

 

    

 

 

       

 

 

    

 

1 

Reported, as adjusted for Hardware and Home Improvement (“HHI”) divestiture. HHI has been excluded from the continuing operations of Stanley Black & Decker and the net of its operations, as well as the related gain on the sale, will be reported as a discontinued operation.

2 

Merger and acquisition-related charges, as adjusted for HHI divestiture, relate primarily to the Black & Decker merger and Niscayah acquisition, including facility closure-related charges, employee-related charges and integration costs.

3 

The normalized 2011 business segment information adjusted for the HHI divestiture, as reconciled to GAAP adjusted for the HHI divestiture above, is considered relevant to aid analysis of the company’s segment profit results aside from the material impact of the merger and acquisition-related charges.

 

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