EX-99.2 3 exhibit992financialsq32024.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) 
 THIRD QUARTERYEAR-TO-DATE
 2024202320242023
NET SALES$3,751.3 $3,953.9 $11,645.2 $12,044.6 
COSTS AND EXPENSES
Cost of sales2,630.7 2,893.3 8,274.9 9,216.4 
Gross profit1,120.6 1,060.6 3,370.3 2,828.2 
% of Net Sales29.9 %26.8 %28.9 %23.5 %
Selling, general and administrative797.1 794.3 2,477.5 2,456.7 
% of Net Sales21.2 %20.1 %21.3 %20.4 %
Other - net86.4 94.0 392.9 224.3 
Loss on sales of businesses— — — 7.6 
Asset impairment charges46.9 124.0 72.4 124.0 
Restructuring charges22.1 10.9 66.9 27.6 
Income (loss) from operations168.1 37.4 360.6 (12.0)
Interest - net78.6 94.4 244.9 284.9 
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES89.5 (57.0)115.7 (296.9)
Income taxes on continuing operations(1.6)(61.7)24.3 (291.3)
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS$91.1 $4.7 $91.4 $(5.6)
Gain (loss) on Security sale before income taxes— — 10.4 (0.8)
Income taxes on discontinued operations— — 2.4 (0.3)
NET EARNINGS (LOSS) FROM DISCONTINUED OPERATIONS$— $— $8.0 $(0.5)
NET EARNINGS (LOSS)$91.1 $4.7 $99.4 $(6.1)
BASIC EARNINGS (LOSS) PER SHARE OF COMMON STOCK
Continuing operations$0.61 $0.03 $0.61 $(0.04)
Discontinued operations$— $— $0.05 $— 
     Total basic earnings (loss) per share of common stock$0.61 $0.03 $0.66 $(0.04)
DILUTED EARNINGS (LOSS) PER SHARE OF COMMON STOCK
Continuing operations$0.60 $0.03 $0.60 $(0.04)
Discontinued operations$— $— $0.05 $— 
     Total diluted earnings (loss) per share of common stock$0.60 $0.03 $0.66 $(0.04)
DIVIDENDS PER SHARE OF COMMON STOCK$0.82 $0.81 $2.44 $2.41 
WEIGHTED-AVERAGE SHARES OUTSTANDING (in thousands)
Basic150,580149,799150,405149,687
Diluted151,465150,545151,183149,687
8
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, Millions of Dollars)
 
September 28, 2024December 30, 2023
ASSETS
Cash and cash equivalents$298.7 $449.4 
Accounts and notes receivable, net1,503.1 1,302.0 
Inventories, net4,630.0 4,738.6 
Current assets held for sale— 140.8 
Other current assets399.1 386.5 
Total current assets6,830.9 7,017.3 
Property, plant and equipment, net2,063.0 2,169.9 
Goodwill and other intangibles, net11,791.5 11,945.5 
Long-term assets held for sale— 716.8 
Other assets1,796.4 1,814.3 
Total assets$22,481.8 $23,663.8 
LIABILITIES AND SHAREOWNERS’ EQUITY
Short-term borrowings$387.4 $1,074.8 
Current maturities of long-term debt500.2 1.1 
Accounts payable2,405.2 2,298.9 
Accrued expenses1,999.5 2,464.3 
Current liabilities held for sale— 44.1 
Total current liabilities5,292.3 5,883.2 
Long-term debt5,604.1 6,101.0 
Long-term liabilities held for sale— 84.8 
Other long-term liabilities2,726.2 2,538.7 
Shareowners’ equity8,859.2 9,056.1 
Total liabilities and shareowners' equity$22,481.8 $23,663.8 

9
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
SUMMARY OF CASH FLOW ACTIVITY
(Unaudited, Millions of Dollars)
 
THIRD QUARTERYEAR-TO-DATE
 2024202320242023
OPERATING ACTIVITIES
Net earnings (loss)$91.1 $4.7 $99.4 $(6.1)
Depreciation and amortization154.7 151.1 449.9 476.7 
Loss on sales of businesses— — — 7.6 
(Gain) loss on sale of discontinued operations— — (10.4)0.8 
Asset impairment charges46.9 124.0 72.4 124.0 
Changes in working capital1
(60.8)155.6 (22.8)253.3 
Other53.9 8.5 (160.7)(434.3)
Net cash provided by operating activities285.8 443.9 427.8 422.0 
INVESTING AND FINANCING ACTIVITIES
Capital and software expenditures(86.5)(79.9)(239.4)(216.4)
Proceeds from sales of businesses, net of cash sold— — 735.6 (5.7)
Proceeds from debt issuances, net of fees— (0.6)— 745.3 
Net short-term commercial paper repayments(121.5)(266.4)(692.3)(594.3)
Cash dividends on common stock(123.6)(121.3)(367.2)(360.8)
Effect of exchange rate changes on cash14.1 (23.6)(28.5)(28.7)
Other11.9 4.1 10.3 (14.2)
Net cash used in investing and financing activities(305.6)(487.7)(581.5)(474.8)
Decrease in cash, cash equivalents and restricted cash(19.8)(43.8)(153.7)(52.8)
Cash, cash equivalents and restricted cash, beginning of period320.7 395.9 454.6 404.9 
Cash, cash equivalents and restricted cash, end of period$300.9 $352.1 $300.9 $352.1 
Free Cash Flow Computation2
Net cash provided by operating activities$285.8 $443.9 $427.8 $422.0 
Less: capital and software expenditures(86.5)(79.9)(239.4)(216.4)
Free cash flow (before dividends)$199.3 $364.0 $188.4 $205.6 
Reconciliation of Cash, Cash Equivalents and Restricted Cash
September 28, 2024December 30, 2023
Cash and cash equivalents$298.7 $449.4 
Restricted cash included in Other current assets2.2 4.6 
Cash and cash equivalents included in Current assets held for sale— 0.6 
Cash, cash equivalents and restricted cash$300.9 $454.6 
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.
10
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(Unaudited, Millions of Dollars)

 
 THIRD QUARTERYEAR-TO-DATE
 2024202320242023
NET SALES
Tools & Outdoor$3,263.3 $3,355.3 $10,076.6 $10,212.9 
Industrial488.0 598.6 1,568.6 1,831.7 
Total$3,751.3 $3,953.9 $11,645.2 $12,044.6 
SEGMENT PROFIT
Tools & Outdoor$327.5 $273.4 $899.3 $394.1 
Industrial70.2 62.5 202.2 201.5 
Segment Profit397.7 335.9 1,101.5 595.6 
Corporate Overhead (74.2)(69.6)(208.7)(224.1)
Total$323.5 $266.3 $892.8 $371.5 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor10.0 %8.1 %8.9 %3.9 %
Industrial14.4 %10.4 %12.9 %11.0 %
Segment Profit10.6 %8.5 %9.5 %4.9 %

11
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)

 
THIRD QUARTER 2024
 GAAPNon-GAAP
Adjustments
Non-GAAP1
Gross profit$1,120.6 $24.8 $1,145.4 
% of Net Sales29.9 %30.5 %
Selling, general and administrative797.1 (15.1)782.0 
% of Net Sales21.2 %20.8 %
Earnings from continuing operations before income taxes89.5 105.9 195.4 
Income taxes on continuing operations(1.6)12.0 10.4 
Net earnings from continuing operations91.1 93.9 185.0 
Diluted earnings per share of common stock - Continuing operations$0.60 $0.62 $1.22 
THIRD QUARTER 2023
 GAAPNon-GAAP
Adjustments
Non-GAAP1
Gross profit$1,060.6 $32.2 $1,092.8 
% of Net Sales26.8 %27.6 %
Selling, general and administrative794.3 (29.4)764.9 
% of Net Sales20.1 %19.3 %
(Loss) earnings from continuing operations before income taxes(57.0)191.0 134.0 
Income taxes on continuing operations(61.7)37.5 (24.2)
Net earnings from continuing operations4.7 153.5 158.2 
Diluted earnings per share of common stock - Continuing operations$0.03 $1.02 $1.05 
1The Non-GAAP 2024 and 2023 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.
 


12
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 2024
 GAAPNon-GAAP
Adjustments
Non-GAAP1
Gross profit$3,370.3 $72.7 $3,443.0 
% of Net Sales28.9 %29.6 %
Selling, general and administrative2,477.5 (62.8)2,414.7 
% of Net Sales21.3 %20.7 %
Earnings from continuing operations before income taxes115.7 416.7 532.4 
Income taxes on continuing operations24.3 74.4 98.7 
Net earnings from continuing operations91.4 342.3 433.7 
Diluted earnings per share of common stock - Continuing operations$0.60 $2.27 $2.87 
YEAR-TO-DATE 2023
 GAAPNon-GAAP
Adjustments
Non-GAAP1
Gross profit$2,828.2 $157.0 $2,985.2 
% of Net Sales23.5 %24.8 %
Selling, general and administrative2,456.7 (75.5)2,381.2 
% of Net Sales20.4 %19.8 %
(Loss) earnings from continuing operations before income taxes(296.9)368.9 72.0 
Income taxes on continuing operations(291.3)282.6 (8.7)
Net (loss) earnings from continuing operations (5.6)86.3 80.7 
Diluted (loss) earnings per share of common stock - Continuing operations$(0.04)$0.58 $0.54 
1
The Non-GAAP 2024 and 2023 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)
 
THIRD QUARTER 2024
 GAAP
Non-GAAP
Adjustments1
Non-GAAP3
SEGMENT PROFIT
Tools & Outdoor$327.5 $35.5 $363.0 
Industrial70.2 (2.6)67.6 
Segment Profit397.7 32.9 430.6 
Corporate Overhead(74.2)7.0 (67.2)
Total$323.5 $39.9 $363.4 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor10.0 %11.1 %
Industrial14.4 %13.9 %
Segment Profit10.6 %11.5 %
1
Non-GAAP adjustments relate primarily to footprint actions associated with the supply chain transformation and transition services costs related to previously divested businesses.
THIRD QUARTER 2023
 GAAP
Non-GAAP
Adjustments2
Non-GAAP3
SEGMENT PROFIT
Tools & Outdoor$273.4 $39.4 $312.8 
Industrial62.5 10.5 73.0 
Segment Profit335.9 49.9 385.8 
Corporate Overhead (69.6)11.7 (57.9)
Total$266.3 $61.6 $327.9 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor8.1 %9.3 %
Industrial10.4 %12.2 %
Segment Profit8.5 %9.8 %
2
Non-GAAP adjustments relate primarily to footprint actions and other costs associated with the supply chain transformation.
3
The Non-GAAP 2024 and 2023 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.

14
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 2024
 GAAP
Non-GAAP
Adjustments1
Non-GAAP3
SEGMENT PROFIT
Tools & Outdoor$899.3 $111.0 $1,010.3 
Industrial202.2 3.4 205.6 
Segment Profit1,101.5 114.4 1,215.9 
Corporate Overhead(208.7)21.1 (187.6)
Total$892.8 $135.5 $1,028.3 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor8.9 %10.0 %
Industrial12.9 %13.1 %
Segment Profit9.5 %10.4 %
1
Non-GAAP adjustments relate primarily to footprint actions associated with the supply chain transformation and transition services costs related to previously divested businesses.
YEAR-TO-DATE 2023
 GAAP
Non-GAAP
Adjustments2
Non-GAAP3
SEGMENT PROFIT
Tools & Outdoor$394.1 $174.4 $568.5 
Industrial201.5 19.3 220.8 
Segment Profit595.6 193.7 789.3 
Corporate Overhead(224.1)38.8 (185.3)
Total$371.5 $232.5 $604.0 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor3.9 %5.6 %
Industrial11.0 %12.1 %
Segment Profit4.9 %6.6 %
2
Non-GAAP adjustments relate primarily to footprint actions and other costs associated with the supply chain transformation and integration-related costs.
3
The Non-GAAP 2024 and 2023 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.
15
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS (LOSS) TO EBITDA
(Unaudited, Millions of Dollars)
THIRD QUARTERYEAR-TO-DATE
2024202320242023
Net earnings (loss) from continuing operations$91.1 $4.7 $91.4 $(5.6)
% of Net Sales2.4 %0.1 %0.8 %— %
Interest - net78.6 94.4 244.9 284.9 
Income taxes on continuing operations(1.6)(61.7)24.3 (291.3)
Depreciation and amortization154.7 151.1 449.9 476.7 
EBITDA1
$322.8 $188.5 $810.5 $464.7 
% of Net Sales8.6 %4.8 %7.0 %3.9 %
Non-GAAP Adjustments before income taxes105.9 191.0 416.7 368.9 
Less: Accelerated depreciation included in Non-GAAP Adjustments before income taxes22.3 7.8 48.9 45.9 
Adjusted EBITDA1
$406.4 $371.7 $1,178.3 $787.7 
% of Net Sales10.8 %9.4 %10.1 %6.5 %
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)
THIRD QUARTERYEAR-TO-DATE
2024202320242023
Supply Chain Transformation Costs:
Footprint Rationalization2
$25.4 $7.7 $57.8 $88.3 
Strategic Sourcing & Operational Excellence3
(1.0)23.9 12.4 68.7 
Facility-related costs0.3 0.2 2.6 1.1 
Other charges (gains)0.1 0.4 (0.1)(1.1)
Gross Profit$24.8 $32.2 $72.7 $157.0 
Supply Chain Transformation Costs:
Footprint Rationalization2
$13.4 $4.6 $34.0 $8.4 
Complexity Reduction & Operational Excellence2.0 1.2 6.2 8.0 
Acquisition & integration-related costs4
2.4 11.5 9.1 24.0 
Transition services costs related to previously divested businesses4.6 11.3 14.8 37.0 
Other charges (gains)(7.3)0.8 (1.3)(1.9)
Selling, general and administrative$15.1 $29.4 $62.8 $75.5 
Other, net5
$(1.3)$(5.5)$(10.2)$(22.8)
Loss on sales of businesses— — — 7.6 
Asset impairment charges6
46.9 124.0 72.4 124.0 
Environmental charges7
(1.7)— 152.1 — 
Restructuring charges 22.1 10.9 66.9 27.6 
Earnings from continuing operations before income taxes$105.9 $191.0 $416.7 $368.9 

2Footprint Rationalization costs in 2024 primarily relate to accelerated depreciation of manufacturing and distribution center equipment of $45.2 million and other facility exit and re-configuration costs of $31.3 million. In 2023, transfers and closures of targeted manufacturing sites, including Fort Worth, Texas and Cheraw, South Carolina as previously announced in March 2023, resulted in accelerated depreciation of production equipment of $45.3 million and non-cash asset write-downs of $41.2 million (predominantly tooling, raw materials and WIP).
16
Exhibit 99.2
3Strategic Sourcing & Operational Excellence costs in 2023 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.
4Acquisition & integration-related costs primarily relate to the MTD and Excel acquisitions, including costs to integrate the organizations and shared processes, as well as harmonize key IT applications and infrastructure.
5Includes deal-related costs, net of income related to providing transition services to previously divested businesses.
6Asset impairment charges in 2024 include a $41.0 million pre-tax impairment charge related to the Lenox trade name, a $25.5 million pre-tax impairment charge related to the Infrastructure business, and a $5.9 million pre-tax impairment charge related to a small Industrial business. The $124.0 million pre-tax asset impairment charge in 2023 related to the Irwin and Troy-Bilt trade names.
7The $152.1 million pre-tax environmental charges in 2024 related primarily to a reserve adjustment for the non-active Centredale Superfund site as a result of regulatory changes and revisions to remediation alternatives.
17