STANLEY BLACK & DECKER, INC.
|
CT
|
|
06-0548860
|
(STATE OR OTHER JURISDICTION OF
INCORPORATION OR ORGANIZATION)
|
|
(I.R.S. EMPLOYER
IDENTIFICATION NUMBER)
|
Title Of Each Class
|
Trading Symbol
|
Name Of Each Exchange On Which Registered
|
|
Common Stock
|
- $2.50 Par Value per Share
|
SWK
|
New York Stock Exchange
|
|
|
|
Third Quarter
|
|
Year-to-Date
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net Sales
|
$
|
3,633.1
|
|
|
$
|
3,494.8
|
|
|
$
|
10,728.0
|
|
|
$
|
10,347.7
|
|
Costs and Expenses
|
|
|
|
|
|
|
|
||||||||
Cost of sales
|
$
|
2,393.6
|
|
|
$
|
2,256.4
|
|
|
$
|
7,083.1
|
|
|
$
|
6,656.5
|
|
Selling, general and administrative
|
752.8
|
|
|
792.9
|
|
|
2,289.6
|
|
|
2,373.5
|
|
||||
Provision for doubtful accounts
|
3.3
|
|
|
6.0
|
|
|
27.7
|
|
|
16.8
|
|
||||
Other, net
|
55.0
|
|
|
59.4
|
|
|
182.6
|
|
|
236.7
|
|
||||
(Gain) loss on sales of businesses
|
—
|
|
|
—
|
|
|
(17.2
|
)
|
|
0.8
|
|
||||
Restructuring charges
|
74.0
|
|
|
21.8
|
|
|
91.2
|
|
|
58.1
|
|
||||
Interest expense
|
72.4
|
|
|
72.1
|
|
|
219.2
|
|
|
204.3
|
|
||||
Interest income
|
(12.7
|
)
|
|
(18.7
|
)
|
|
(41.4
|
)
|
|
(50.1
|
)
|
||||
|
$
|
3,338.4
|
|
|
$
|
3,189.9
|
|
|
$
|
9,834.8
|
|
|
$
|
9,496.6
|
|
Earnings before income taxes and equity interest
|
294.7
|
|
|
304.9
|
|
|
893.2
|
|
|
851.1
|
|
||||
Income taxes
|
59.2
|
|
|
56.6
|
|
|
135.5
|
|
|
139.3
|
|
||||
Net earnings before equity interest
|
$
|
235.5
|
|
|
$
|
248.3
|
|
|
$
|
757.7
|
|
|
$
|
711.8
|
|
Share of net (losses) earnings of equity method investment
|
(4.4
|
)
|
|
—
|
|
|
1.2
|
|
|
—
|
|
||||
Net earnings
|
$
|
231.1
|
|
|
$
|
248.3
|
|
|
$
|
758.9
|
|
|
$
|
711.8
|
|
Less: Net gain (loss) attributable to non-controlling interests
|
0.6
|
|
|
0.5
|
|
|
2.2
|
|
|
(0.2
|
)
|
||||
Net Earnings Attributable to Common Shareowners
|
$
|
230.5
|
|
|
$
|
247.8
|
|
|
$
|
756.7
|
|
|
$
|
712.0
|
|
Total Comprehensive Income Attributable to Common Shareowners
|
$
|
99.6
|
|
|
$
|
269.0
|
|
|
$
|
626.1
|
|
|
$
|
549.9
|
|
Earnings per share of common stock:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.55
|
|
|
$
|
1.67
|
|
|
$
|
5.11
|
|
|
$
|
4.77
|
|
Diluted
|
$
|
1.53
|
|
|
$
|
1.65
|
|
|
$
|
5.03
|
|
|
$
|
4.68
|
|
Dividends per share of common stock
|
$
|
0.69
|
|
|
$
|
0.66
|
|
|
$
|
2.01
|
|
|
$
|
1.92
|
|
Weighted-average shares outstanding (in thousands):
|
|
|
|
|
|
|
|
||||||||
Basic
|
148,350
|
|
|
147,964
|
|
|
148,111
|
|
|
149,311
|
|
||||
Diluted
|
150,623
|
|
|
150,599
|
|
|
150,299
|
|
|
152,225
|
|
|
September 28,
2019 |
|
December 29,
2018 |
||||
ASSETS
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
311.7
|
|
|
$
|
288.7
|
|
Accounts and notes receivable, net
|
1,902.6
|
|
|
1,607.8
|
|
||
Inventories, net
|
2,743.5
|
|
|
2,373.5
|
|
||
Other current assets
|
370.2
|
|
|
299.4
|
|
||
Total Current Assets
|
5,328.0
|
|
|
4,569.4
|
|
||
Property, plant and equipment, net
|
1,911.9
|
|
|
1,915.2
|
|
||
Goodwill
|
9,160.0
|
|
|
8,956.7
|
|
||
Intangibles, net
|
3,653.0
|
|
|
3,484.4
|
|
||
Other assets
|
1,269.6
|
|
|
482.3
|
|
||
Total Assets
|
$
|
21,322.5
|
|
|
$
|
19,408.0
|
|
LIABILITIES AND SHAREOWNERS' EQUITY
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Short-term borrowings
|
$
|
1,454.9
|
|
|
$
|
376.1
|
|
Current maturities of long-term debt
|
3.1
|
|
|
2.5
|
|
||
Accounts payable
|
2,070.3
|
|
|
2,233.2
|
|
||
Accrued expenses
|
1,913.6
|
|
|
1,389.8
|
|
||
Total Current Liabilities
|
5,441.9
|
|
|
4,001.6
|
|
||
Long-term debt
|
3,908.8
|
|
|
3,819.8
|
|
||
Deferred taxes
|
729.6
|
|
|
705.3
|
|
||
Post-retirement benefits
|
544.1
|
|
|
595.4
|
|
||
Other liabilities
|
2,429.9
|
|
|
2,446.0
|
|
||
Commitments and Contingencies (Notes R and S)
|
|
|
|
|
|
||
Shareowners’ Equity
|
|
|
|
||||
Stanley Black & Decker, Inc. Shareowners’ Equity
|
|
|
|
||||
Preferred stock, without par value:
Authorized 10,000,000 shares in 2019 and 2018 Issued and outstanding 750,000 shares in 2019 and 2018 |
750.0
|
|
|
750.0
|
|
||
Common stock, par value $2.50 per share:
Authorized 300,000,000 shares in 2019 and 2018 Issued 176,902,738 shares in 2019 and 2018 |
442.3
|
|
|
442.3
|
|
||
Retained earnings
|
6,678.1
|
|
|
6,219.0
|
|
||
Additional paid in capital
|
4,653.3
|
|
|
4,621.0
|
|
||
Accumulated other comprehensive loss
|
(1,944.9
|
)
|
|
(1,814.3
|
)
|
||
ESOP
|
(2.3
|
)
|
|
(10.5
|
)
|
||
|
10,576.5
|
|
|
10,207.5
|
|
||
Less: cost of common stock in treasury
|
(2,314.2
|
)
|
|
(2,371.3
|
)
|
||
Stanley Black & Decker, Inc. Shareowners’ Equity
|
8,262.3
|
|
|
7,836.2
|
|
||
Non-controlling interests
|
5.9
|
|
|
3.7
|
|
||
Total Shareowners’ Equity
|
8,268.2
|
|
|
7,839.9
|
|
||
Total Liabilities and Shareowners’ Equity
|
$
|
21,322.5
|
|
|
$
|
19,408.0
|
|
|
Third Quarter
|
|
Year-to-Date
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
||||||||
Net earnings
|
$
|
231.1
|
|
|
$
|
248.3
|
|
|
$
|
758.9
|
|
|
$
|
711.8
|
|
Adjustments to reconcile net earnings to cash provided by operating activities:
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization of property, plant and equipment
|
93.1
|
|
|
85.2
|
|
|
280.8
|
|
|
249.7
|
|
||||
Amortization of intangibles
|
47.8
|
|
|
44.5
|
|
|
139.6
|
|
|
131.3
|
|
||||
(Gain) loss on sales of businesses
|
—
|
|
|
—
|
|
|
(17.2
|
)
|
|
0.8
|
|
||||
Share of net losses (earnings) of equity method investment
|
4.4
|
|
|
—
|
|
|
(1.2
|
)
|
|
—
|
|
||||
Changes in working capital
|
(278.3
|
)
|
|
(287.8
|
)
|
|
(859.2
|
)
|
|
(1,017.1
|
)
|
||||
Changes in other assets and liabilities
|
94.6
|
|
|
101.3
|
|
|
(39.3
|
)
|
|
(36.4
|
)
|
||||
Cash provided by operating activities
|
192.7
|
|
|
191.5
|
|
|
262.4
|
|
|
40.1
|
|
||||
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
||||||||
Capital and software expenditures
|
(96.7
|
)
|
|
(109.4
|
)
|
|
(283.5
|
)
|
|
(327.4
|
)
|
||||
(Payments) proceeds from sales of businesses, net of cash sold
|
—
|
|
|
(1.1
|
)
|
|
76.7
|
|
|
(3.0
|
)
|
||||
Business acquisitions, net of cash acquired
|
(6.2
|
)
|
|
(15.1
|
)
|
|
(682.2
|
)
|
|
(521.9
|
)
|
||||
Purchase of investments
|
(4.9
|
)
|
|
(5.8
|
)
|
|
(258.6
|
)
|
|
(16.1
|
)
|
||||
Net investment hedge settlements
|
11.3
|
|
|
(5.1
|
)
|
|
15.2
|
|
|
15.2
|
|
||||
Other
|
(3.9
|
)
|
|
2.1
|
|
|
(7.5
|
)
|
|
5.0
|
|
||||
Cash used in investing activities
|
(100.4
|
)
|
|
(134.4
|
)
|
|
(1,139.9
|
)
|
|
(848.2
|
)
|
||||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
||||||||
Payment on long-term debt
|
—
|
|
|
—
|
|
|
(400.0
|
)
|
|
—
|
|
||||
Proceeds from debt issuance, net of fees
|
—
|
|
|
—
|
|
|
496.2
|
|
|
—
|
|
||||
Stock purchase contract fees
|
(10.1
|
)
|
|
(10.1
|
)
|
|
(30.3
|
)
|
|
(30.3
|
)
|
||||
Net short-term borrowings
|
28.6
|
|
|
309.5
|
|
|
1,117.9
|
|
|
1,445.1
|
|
||||
Premium paid on equity option
|
—
|
|
|
—
|
|
|
—
|
|
|
(57.3
|
)
|
||||
Proceeds from issuances of common stock
|
21.5
|
|
|
10.2
|
|
|
46.1
|
|
|
32.8
|
|
||||
Purchases of common stock for treasury
|
(2.7
|
)
|
|
(301.8
|
)
|
|
(11.9
|
)
|
|
(514.5
|
)
|
||||
Cash dividends on common stock
|
(102.3
|
)
|
|
(97.4
|
)
|
|
(297.6
|
)
|
|
(286.5
|
)
|
||||
Other
|
(2.4
|
)
|
|
(8.0
|
)
|
|
(9.5
|
)
|
|
(13.5
|
)
|
||||
Cash (used in) provided by financing activities
|
(67.4
|
)
|
|
(97.6
|
)
|
|
910.9
|
|
|
575.8
|
|
||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(25.4
|
)
|
|
5.8
|
|
|
(20.4
|
)
|
|
(54.1
|
)
|
||||
Change in cash, cash equivalents and restricted cash
|
(0.5
|
)
|
|
(34.7
|
)
|
|
13.0
|
|
|
(286.4
|
)
|
||||
Cash, cash equivalents and restricted cash, beginning of period
|
324.9
|
|
|
403.4
|
|
|
311.4
|
|
|
655.1
|
|
||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD
|
$
|
324.4
|
|
|
$
|
368.7
|
|
|
$
|
324.4
|
|
|
$
|
368.7
|
|
|
September 28, 2019
|
|
December 29, 2018
|
||||
Cash and cash equivalents
|
$
|
311.7
|
|
|
$
|
288.7
|
|
Restricted cash included in Other current assets
|
12.7
|
|
|
22.7
|
|
||
Cash, cash equivalents and restricted cash
|
$
|
324.4
|
|
|
$
|
311.4
|
|
|
Preferred
Stock |
|
Common
Stock |
|
Additional
Paid In Capital |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Loss |
|
ESOP
|
|
Treasury
Stock |
|
Non-
Controlling Interests |
|
Shareowners’
Equity |
||||||||||||||||||
Balance December 29, 2018
|
$
|
750.0
|
|
|
$
|
442.3
|
|
|
$
|
4,621.0
|
|
|
$
|
6,219.0
|
|
|
$
|
(1,814.3
|
)
|
|
$
|
(10.5
|
)
|
|
$
|
(2,371.3
|
)
|
|
$
|
3.7
|
|
|
$
|
7,839.9
|
|
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
169.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
170.4
|
|
|||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|||||||||
Cash dividends declared — $0.66 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(97.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(97.6
|
)
|
|||||||||
Issuance of common stock (284,438)
|
—
|
|
|
—
|
|
|
(15.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25.4
|
|
|
—
|
|
|
10.2
|
|
|||||||||
Repurchase of common stock (61,663 shares)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.1
|
)
|
|
—
|
|
|
(8.1
|
)
|
|||||||||
Stock-based compensation related
|
—
|
|
|
—
|
|
|
16.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16.7
|
|
|||||||||
ESOP
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.2
|
|
|
—
|
|
|
—
|
|
|
4.2
|
|
|||||||||
Balance March 30, 2019
|
$
|
750.0
|
|
|
$
|
442.3
|
|
|
$
|
4,622.5
|
|
|
$
|
6,291.3
|
|
|
$
|
(1,813.3
|
)
|
|
$
|
(6.3
|
)
|
|
$
|
(2,354.0
|
)
|
|
$
|
4.2
|
|
|
$
|
7,936.7
|
|
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
356.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
357.4
|
|
|||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|||||||||
Cash dividends declared — $0.66 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(97.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(97.7
|
)
|
|||||||||
Issuance of common stock (191,538)
|
—
|
|
|
—
|
|
|
(2.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17.2
|
|
|
—
|
|
|
14.4
|
|
|||||||||
Repurchase of common stock (7,461 shares)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
|
—
|
|
|
(1.1
|
)
|
|||||||||
Stock-based compensation related
|
—
|
|
|
—
|
|
|
21.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21.4
|
|
|||||||||
ESOP
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.9
|
|
|
—
|
|
|
—
|
|
|
2.9
|
|
|||||||||
Balance June 29, 2019
|
$
|
750.0
|
|
|
$
|
442.3
|
|
|
$
|
4,641.1
|
|
|
$
|
6,549.9
|
|
|
$
|
(1,814.0
|
)
|
|
$
|
(3.4
|
)
|
|
$
|
(2,337.9
|
)
|
|
$
|
5.3
|
|
|
$
|
8,233.3
|
|
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
230.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
|
231.1
|
|
|||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(130.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(130.9
|
)
|
|||||||||
Cash dividends declared — $0.69 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(102.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(102.3
|
)
|
|||||||||
Issuance of common stock (295,328)
|
—
|
|
|
—
|
|
|
(4.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26.4
|
|
|
—
|
|
|
21.5
|
|
|||||||||
Repurchase of common stock (18,315 shares)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.7
|
)
|
|
—
|
|
|
(2.7
|
)
|
|||||||||
Stock-based compensation related
|
—
|
|
|
—
|
|
|
17.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17.1
|
|
|||||||||
ESOP
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|||||||||
Balance September 28, 2019
|
$
|
750.0
|
|
|
$
|
442.3
|
|
|
$
|
4,653.3
|
|
|
$
|
6,678.1
|
|
|
$
|
(1,944.9
|
)
|
|
$
|
(2.3
|
)
|
|
$
|
(2,314.2
|
)
|
|
$
|
5.9
|
|
|
$
|
8,268.2
|
|
|
Preferred
Stock |
|
Common
Stock |
|
Additional
Paid In Capital |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Loss |
|
ESOP
|
|
Treasury
Stock |
|
Non-
Controlling Interests |
|
Shareowners’
Equity |
||||||||||||||||||
Balance December 30, 2017
|
$
|
750.0
|
|
|
$
|
442.3
|
|
|
$
|
4,643.2
|
|
|
$
|
5,998.7
|
|
|
$
|
(1,589.1
|
)
|
|
$
|
(18.8
|
)
|
|
$
|
(1,924.1
|
)
|
|
$
|
2.8
|
|
|
$
|
8,305.0
|
|
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
170.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
170.1
|
|
|||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
95.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
95.8
|
|
|||||||||
Cash dividends declared — $0.63 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(94.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(94.8
|
)
|
|||||||||
Issuance of common stock (325,214)
|
—
|
|
|
—
|
|
|
(13.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26.1
|
|
|
—
|
|
|
13.1
|
|
|||||||||
Repurchase of common stock (69,880 shares)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11.4
|
)
|
|
—
|
|
|
(11.4
|
)
|
|||||||||
Premium paid on equity option
|
—
|
|
|
—
|
|
|
(57.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(57.3
|
)
|
|||||||||
Non-controlling interest dissolution
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
0.3
|
|
|||||||||
Stock-based compensation related
|
—
|
|
|
—
|
|
|
17.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17.7
|
|
|||||||||
ESOP
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.3
|
|
|
—
|
|
|
—
|
|
|
3.3
|
|
|||||||||
Balance March 31, 2018
|
$
|
750.0
|
|
|
$
|
442.3
|
|
|
$
|
4,590.6
|
|
|
$
|
6,074.5
|
|
|
$
|
(1,493.3
|
)
|
|
$
|
(15.5
|
)
|
|
$
|
(1,909.4
|
)
|
|
$
|
2.6
|
|
|
$
|
8,441.8
|
|
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
293.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
293.4
|
|
|||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(279.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(279.1
|
)
|
|||||||||
Cash dividends declared — $0.63 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(94.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(94.2
|
)
|
|||||||||
Issuance of common stock (123,154)
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.3
|
|
|
—
|
|
|
9.5
|
|
|||||||||
Repurchase of common stock (1,408,563 shares)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(201.3
|
)
|
|
—
|
|
|
(201.3
|
)
|
|||||||||
Stock-based compensation related
|
—
|
|
|
—
|
|
|
16.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16.6
|
|
|||||||||
ESOP
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|||||||||
Balance June 30, 2018
|
$
|
750.0
|
|
|
$
|
442.3
|
|
|
$
|
4,606.4
|
|
|
$
|
6,273.9
|
|
|
$
|
(1,772.4
|
)
|
|
$
|
(14.4
|
)
|
|
$
|
(2,100.4
|
)
|
|
$
|
2.4
|
|
|
$
|
8,187.8
|
|
Net earnings
|
—
|
|
|
—
|
|
|
—
|
|
|
247.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
248.3
|
|
|||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21.2
|
|
|||||||||
Cash dividends declared — $0.66 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
(97.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(97.4
|
)
|
|||||||||
Issuance of common stock (147,408)
|
—
|
|
|
—
|
|
|
(2.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12.7
|
|
|
—
|
|
|
10.2
|
|
|||||||||
Repurchase of common stock (2,100,677 shares)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(301.8
|
)
|
|
—
|
|
|
(301.8
|
)
|
|||||||||
Stock-based compensation related
|
—
|
|
|
—
|
|
|
15.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15.7
|
|
|||||||||
ESOP
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|||||||||
Balance September 29, 2018
|
$
|
750.0
|
|
|
$
|
442.3
|
|
|
$
|
4,619.6
|
|
|
$
|
6,424.3
|
|
|
$
|
(1,751.2
|
)
|
|
$
|
(13.3
|
)
|
|
$
|
(2,389.5
|
)
|
|
$
|
2.9
|
|
|
$
|
8,085.1
|
|
A.
|
SIGNIFICANT ACCOUNTING POLICIES
|
C.
|
EARNINGS PER SHARE
|
|
Third Quarter
|
|
Year-to-Date
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Numerator (in millions):
|
|
|
|
|
|
|
|
||||||||
Net Earnings Attributable to Common Shareowners
|
$
|
230.5
|
|
|
$
|
247.8
|
|
|
$
|
756.7
|
|
|
$
|
712.0
|
|
|
|
|
|
|
|
|
|
||||||||
Denominator (in thousands):
|
|
|
|
|
|
|
|
||||||||
Basic weighted-average shares outstanding
|
148,350
|
|
|
147,964
|
|
|
148,111
|
|
|
149,311
|
|
||||
Dilutive effect of stock contracts and awards
|
2,273
|
|
|
2,635
|
|
|
2,188
|
|
|
2,914
|
|
||||
Diluted weighted-average shares outstanding
|
150,623
|
|
|
150,599
|
|
|
150,299
|
|
|
152,225
|
|
||||
Earnings per share of common stock:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.55
|
|
|
$
|
1.67
|
|
|
$
|
5.11
|
|
|
$
|
4.77
|
|
Diluted
|
$
|
1.53
|
|
|
$
|
1.65
|
|
|
$
|
5.03
|
|
|
$
|
4.68
|
|
|
Third Quarter
|
|
Year-to-Date
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Number of stock options
|
2,217
|
|
|
1,139
|
|
|
2,273
|
|
|
1,155
|
|
(Millions of Dollars)
|
September 28, 2019
|
|
December 29, 2018
|
||||
Trade accounts receivable
|
$
|
1,724.7
|
|
|
$
|
1,437.1
|
|
Trade notes receivable
|
136.2
|
|
|
150.0
|
|
||
Other accounts receivable
|
161.8
|
|
|
122.7
|
|
||
Gross accounts and notes receivable
|
$
|
2,022.7
|
|
|
$
|
1,709.8
|
|
Allowance for doubtful accounts
|
(120.1
|
)
|
|
(102.0
|
)
|
||
Accounts and notes receivable, net
|
$
|
1,902.6
|
|
|
$
|
1,607.8
|
|
Long-term receivables, net
|
$
|
142.3
|
|
|
$
|
153.7
|
|
(Millions of Dollars)
|
|
Total
|
|
Within 1 Year
|
|
2 Years
|
|
3 Years
|
|
4 Years
|
|
5 Years
|
|
Thereafter
|
||||||||||||||
Finance receivables
|
|
$
|
204.4
|
|
|
$
|
76.4
|
|
|
$
|
59.6
|
|
|
$
|
38.5
|
|
|
$
|
19.3
|
|
|
$
|
9.1
|
|
|
$
|
1.5
|
|
Operating leases
|
|
$
|
61.2
|
|
|
$
|
59.3
|
|
|
$
|
1.4
|
|
|
$
|
0.4
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(Millions of Dollars)
|
|
Third Quarter 2019
|
|
Year-to-Date 2019
|
||||
Sales-type lease revenue
|
|
$
|
20.8
|
|
|
$
|
62.3
|
|
Lease interest revenue
|
|
2.7
|
|
|
9.2
|
|
||
Operating lease revenue
|
|
42.3
|
|
|
116.2
|
|
||
Total lease revenue
|
|
$
|
65.8
|
|
|
$
|
187.7
|
|
Sales-type lease profit
|
|
$
|
8.2
|
|
|
$
|
24.7
|
|
E.
|
INVENTORIES
|
(Millions of Dollars)
|
September 28, 2019
|
|
December 29, 2018
|
||||
Finished products
|
$
|
1,990.2
|
|
|
$
|
1,707.4
|
|
Work in process
|
165.4
|
|
|
150.8
|
|
||
Raw materials
|
587.9
|
|
|
515.3
|
|
||
Total
|
$
|
2,743.5
|
|
|
$
|
2,373.5
|
|
(Millions of Dollars)
|
Third Quarter 2019
|
|
Year-to-Date 2019
|
||||
Net sales
|
$
|
89.2
|
|
|
$
|
218.4
|
|
Net earnings (loss) attributable to common shareowners
|
$
|
2.5
|
|
|
$
|
(5.5
|
)
|
|
|
Third Quarter
|
|
Year-to-Date
|
||||||||||||
(Millions of Dollars, except per share amounts)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net sales
|
|
$
|
3,633.8
|
|
|
$
|
3,589.8
|
|
|
$
|
10,807.3
|
|
|
$
|
10,715.7
|
|
Net earnings attributable to common shareowners
|
|
$
|
232.6
|
|
|
$
|
254.5
|
|
|
$
|
778.2
|
|
|
$
|
724.7
|
|
Diluted earnings per share
|
|
$
|
1.54
|
|
|
$
|
1.69
|
|
|
$
|
5.18
|
|
|
$
|
4.76
|
|
•
|
Elimination of the historical pre-acquisition intangible asset amortization expense and the addition of intangible asset amortization expense related to intangibles valued as part of the acquisition accounting that would have been incurred from December 30, 2018 to the acquisition dates.
|
•
|
Additional depreciation expense for the property, plant, and equipment fair value adjustments that would have been incurred from December 30, 2018 to the acquisition date of IES Attachments.
|
•
|
Because the 2019 acquisitions were assumed to occur on December 31, 2017, there were no acquisition-related costs or inventory step-up charges factored into the 2019 pro-forma period, as such expenses would have occurred in the first year following the assumed acquisition date.
|
•
|
Elimination of the historical pre-acquisition intangible asset amortization expense and the addition of intangible asset amortization expense related to intangibles valued as part of the acquisition accounting that would have been incurred from December 31, 2017 to the acquisition dates for the 2018 acquisitions and from December 31, 2017 to September 29, 2018 for the 2019 acquisitions.
|
•
|
Depreciation expense for the property, plant, and equipment fair value adjustments that would have been incurred from December 31, 2017 to the acquisition date of Nelson and from December 31, 2017 to September 29, 2018 for IES Attachments.
|
•
|
Additional expense for acquisition-related costs and inventory step-up charges relating to the 2019 acquisitions, as such expenses would have been incurred from December 31, 2017 to September 29, 2018.
|
•
|
Because the 2018 acquisitions were assumed to occur on January 1, 2017, there were no acquisition-related costs or inventory step-up charges factored into the 2018 pro-forma period, as such expenses would have occurred in the first year following the assumed acquisition date.
|
(Millions of Dollars)
|
Tools & Storage
|
|
Industrial
|
|
Security
|
|
Total
|
||||||||
Balance December 29, 2018
|
$
|
5,154.3
|
|
|
$
|
1,679.7
|
|
|
$
|
2,122.7
|
|
|
$
|
8,956.7
|
|
Acquisition adjustments
|
(1.3
|
)
|
|
323.8
|
|
|
4.7
|
|
|
327.2
|
|
||||
Foreign currency translation and other
|
(41.8
|
)
|
|
(2.9
|
)
|
|
(79.2
|
)
|
|
(123.9
|
)
|
||||
Balance September 28, 2019
|
$
|
5,111.2
|
|
|
$
|
2,000.6
|
|
|
$
|
2,048.2
|
|
|
$
|
9,160.0
|
|
|
|
|
September 28, 2019
|
|
December 29, 2018
|
||||||||||||||||||||||||
(Millions of Dollars)
|
Interest Rate
|
|
Original Notional
|
|
Unamortized Discount
|
|
Unamortized Gain/(Loss) Terminated Swaps 1
|
|
Purchase Accounting FV Adjustment
|
|
Deferred Financing Fees
|
|
Carrying Value
|
|
Carrying Value 2
|
||||||||||||||
Notes payable due 2021
|
3.40%
|
|
$
|
400.0
|
|
|
$
|
(0.1
|
)
|
|
$
|
7.6
|
|
|
$
|
—
|
|
|
$
|
(0.7
|
)
|
|
$
|
406.8
|
|
|
$
|
409.1
|
|
Notes payable due 2022
|
2.90%
|
|
754.3
|
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
(1.9
|
)
|
|
752.2
|
|
|
751.6
|
|
|||||||
Notes payable due 2026
|
3.40%
|
|
500.0
|
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
(3.0
|
)
|
|
496.3
|
|
|
—
|
|
|||||||
Notes payable due 2028
|
7.05%
|
|
150.0
|
|
|
—
|
|
|
9.6
|
|
|
9.2
|
|
|
—
|
|
|
168.8
|
|
|
170.4
|
|
|||||||
Notes payable due 2028
|
4.25%
|
|
500.0
|
|
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
(4.0
|
)
|
|
495.6
|
|
|
495.7
|
|
|||||||
Notes payable due 2040
|
5.20%
|
|
400.0
|
|
|
(0.2
|
)
|
|
(30.8
|
)
|
|
—
|
|
|
(2.9
|
)
|
|
366.1
|
|
|
364.9
|
|
|||||||
Notes payable due 2048
|
4.85%
|
|
500.0
|
|
|
(0.5
|
)
|
|
—
|
|
|
—
|
|
|
(5.4
|
)
|
|
494.1
|
|
|
494.4
|
|
|||||||
Notes payable due 2052 (junior subordinated)
|
5.75%
|
|
750.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18.0
|
)
|
|
732.0
|
|
|
731.6
|
|
|||||||
Notes payable due 2053 (junior subordinated)
|
7.08%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
396.7
|
|
|||||||
Other, payable in varying amounts through 2022
|
0.00% - 4.50%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.9
|
|
|||||||
Total long-term debt, including current maturities
|
|
|
$
|
3,954.3
|
|
|
$
|
(2.1
|
)
|
|
$
|
(13.6
|
)
|
|
$
|
9.2
|
|
|
$
|
(35.9
|
)
|
|
$
|
3,911.9
|
|
|
$
|
3,822.3
|
|
Less: Current maturities of long-term debt
|
|
|
|
|
|
|
|
|
|
|
|
|
(3.1
|
)
|
|
(2.5
|
)
|
||||||||||||
Long-term debt
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,908.8
|
|
|
$
|
3,819.8
|
|
(Millions of Dollars)
|
Balance Sheet
Classification |
|
September 28, 2019
|
|
December 29, 2018
|
|
Balance Sheet
Classification |
|
September 28, 2019
|
|
December 29, 2018
|
||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest Rate Contracts Cash Flow
|
LT other assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
LT other liabilities
|
|
$
|
59.7
|
|
|
$
|
—
|
|
Foreign Exchange Contracts Cash Flow
|
Other current assets
|
|
19.5
|
|
|
18.1
|
|
|
Accrued expenses
|
|
2.7
|
|
|
0.6
|
|
||||
|
LT other assets
|
|
0.1
|
|
|
—
|
|
|
LT other liabilities
|
|
—
|
|
|
—
|
|
||||
Net Investment Hedge
|
Other current assets
|
|
58.2
|
|
|
5.7
|
|
|
Accrued expenses
|
|
12.2
|
|
|
1.5
|
|
||||
|
LT other assets
|
|
—
|
|
|
—
|
|
|
LT other liabilities
|
|
12.8
|
|
|
13.8
|
|
||||
Non-derivative designated as hedging instrument:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net Investment Hedge
|
|
|
—
|
|
|
—
|
|
|
Short-term borrowings
|
|
874.3
|
|
|
228.9
|
|
||||
Total designated as hedging
|
|
|
$
|
77.8
|
|
|
$
|
23.8
|
|
|
|
|
$
|
961.7
|
|
|
$
|
244.8
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign Exchange Contracts
|
Other current assets
|
|
$
|
6.2
|
|
|
$
|
9.1
|
|
|
Accrued expenses
|
|
$
|
11.2
|
|
|
$
|
5.4
|
|
Total
|
|
|
$
|
84.0
|
|
|
$
|
32.9
|
|
|
|
|
$
|
972.9
|
|
|
$
|
250.2
|
|
|
|
Third Quarter 2019
|
||||||||||||
(Millions of dollars)
|
|
Gain (Loss)
Recorded in OCI |
|
Classification of
Gain (Loss) Reclassified from OCI to Income |
|
Gain (Loss)
Reclassified from OCI to Income |
|
Gain (Loss)
Recognized in Income on Amounts Excluded from Effectiveness Testing |
||||||
Interest Rate Contracts
|
|
$
|
(31.3
|
)
|
|
Interest expense
|
|
$
|
(4.1
|
)
|
|
$
|
—
|
|
Foreign Exchange Contracts
|
|
$
|
16.6
|
|
|
Cost of sales
|
|
$
|
5.8
|
|
|
$
|
—
|
|
|
|
Year-to-Date 2019
|
||||||||||||
(Millions of Dollars)
|
|
Gain (Loss)
Recorded in OCI |
|
Classification of
Gain (Loss) Reclassified from OCI to Income |
|
Gain (Loss)
Reclassified from OCI to Income |
|
Gain (Loss)
Recognized in Income on Amounts Excluded from Effectiveness Testing |
||||||
Interest Rate Contracts
|
|
$
|
(59.7
|
)
|
|
Interest expense
|
|
$
|
(12.2
|
)
|
|
$
|
—
|
|
Foreign Exchange Contracts
|
|
$
|
21.1
|
|
|
Cost of sales
|
|
$
|
8.3
|
|
|
$
|
—
|
|
|
|
Third Quarter 2018
|
||||||||||||
(Millions of dollars)
|
|
Gain (Loss)
Recorded in OCI |
|
Classification of
Gain (Loss) Reclassified from OCI to Income |
|
Gain (Loss)
Reclassified from OCI to Income |
|
Gain (Loss)
Recognized in Income on Amounts Excluded from Effectiveness Testing |
||||||
Interest Rate Contracts
|
|
$
|
10.4
|
|
|
Interest expense
|
|
$
|
(3.7
|
)
|
|
$
|
—
|
|
Foreign Exchange Contracts
|
|
$
|
(2.0
|
)
|
|
Cost of sales
|
|
$
|
(4.6
|
)
|
|
$
|
—
|
|
|
|
Year-to-Date 2018
|
||||||||||||
(Millions of Dollars)
|
|
Gain (Loss)
Recorded in OCI |
|
Classification of
Gain (Loss) Reclassified from OCI to Income |
|
Gain (Loss)
Reclassified from OCI to Income |
|
Gain (Loss)
Recognized in Income on Amounts Excluded from Effectiveness Testing |
||||||
Interest Rate Contracts
|
|
$
|
32.2
|
|
|
Interest expense
|
|
$
|
(11.3
|
)
|
|
$
|
—
|
|
Foreign Exchange Contracts
|
|
$
|
21.0
|
|
|
Cost of sales
|
|
$
|
(16.6
|
)
|
|
$
|
—
|
|
|
|
Third Quarter 2019
|
|
Year-to-Date 2019
|
||||||||||||
(Millions of Dollars)
|
|
Cost of Sales
|
|
Interest Expense
|
|
Cost of Sales
|
|
Interest Expense
|
||||||||
Total amount in the Consolidated Statements of Operations and Comprehensive Income in which the effects of the cash flow hedges are recorded
|
|
$
|
2,393.6
|
|
|
$
|
72.4
|
|
|
$
|
7,083.1
|
|
|
$
|
219.2
|
|
Gain (loss) on cash flow hedging relationships:
|
|
|
|
|
|
|
|
|
||||||||
Foreign Exchange Contracts:
|
|
|
|
|
|
|
|
|
||||||||
Hedged Items
|
|
$
|
(5.8
|
)
|
|
$
|
—
|
|
|
$
|
(8.3
|
)
|
|
$
|
—
|
|
Gain (loss) reclassified from OCI into Income
|
|
$
|
5.8
|
|
|
$
|
—
|
|
|
$
|
8.3
|
|
|
$
|
—
|
|
Interest Rate Swap Agreements:
|
|
|
|
|
|
|
|
|
||||||||
Gain (loss) reclassified from OCI into Income 1
|
|
$
|
—
|
|
|
$
|
(4.1
|
)
|
|
$
|
—
|
|
|
$
|
(12.2
|
)
|
|
|
Third Quarter 2018
|
|
Year-to-Date 2018
|
||||||||||||
(Millions of Dollars)
|
|
Cost of Sales
|
|
Interest Expense
|
|
Cost of Sales
|
|
Interest Expense
|
||||||||
Total amount in the Consolidated Statements of Operations and Comprehensive Income in which the effects of the cash flow hedges are recorded
|
|
$
|
2,256.4
|
|
|
$
|
72.1
|
|
|
$
|
6,656.5
|
|
|
$
|
204.3
|
|
Gain (loss) on cash flow hedging relationships:
|
|
|
|
|
|
|
|
|
||||||||
Foreign Exchange Contracts:
|
|
|
|
|
|
|
|
|
||||||||
Hedged Items
|
|
$
|
4.6
|
|
|
$
|
—
|
|
|
$
|
16.6
|
|
|
$
|
—
|
|
Gain (loss) reclassified from OCI into Income
|
|
$
|
(4.6
|
)
|
|
$
|
—
|
|
|
$
|
(16.6
|
)
|
|
$
|
—
|
|
Interest Rate Swap Agreements:
|
|
|
|
|
|
|
|
|
||||||||
Gain (loss) reclassified from OCI into Income 1
|
|
$
|
—
|
|
|
$
|
(3.7
|
)
|
|
$
|
—
|
|
|
$
|
(11.3
|
)
|
(Millions of Dollars)
|
Third Quarter 2019 Interest Expense
|
|
Year-to-Date 2019
Interest Expense |
||||
Total amount in the Consolidated Statements of Operations and Comprehensive Income in which the effects of the fair value hedges are recorded
|
$
|
72.4
|
|
|
$
|
219.2
|
|
Amortization of gain on terminated swaps
|
$
|
(0.8
|
)
|
|
$
|
(6.9
|
)
|
(Millions of Dollars)
|
Third Quarter 2018 Interest Expense
|
|
Year-to-Date 2018
Interest Expense |
||||
Total amount in the Consolidated Statements of Operations and Comprehensive Income in which the effects of the fair value hedges are recorded
|
$
|
72.1
|
|
|
$
|
204.3
|
|
Amortization of gain on terminated swaps
|
$
|
(0.8
|
)
|
|
$
|
(2.4
|
)
|
|
|
September 28, 2019
|
||||||||
(Millions of Dollars)
|
|
Carrying Amount of Hedged Liability (1)
|
|
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability
|
||||||
Current Maturities of Long-Term Debt
|
|
$
|
3.1
|
|
|
Terminated Swaps
|
|
$
|
3.1
|
|
Long-Term Debt
|
|
$
|
3,908.8
|
|
|
Terminated Swaps
|
|
$
|
(17.0
|
)
|
|
|
December 29, 2018
|
||||||||
(Millions of Dollars)
|
|
Carrying Amount of Hedged Liability (1)
|
|
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability
|
||||||
Current Maturities of Long-Term Debt
|
|
$
|
2.5
|
|
|
Terminated Swaps
|
|
$
|
2.1
|
|
Long-Term Debt
|
|
$
|
3,819.8
|
|
|
Terminated Swaps
|
|
$
|
(10.0
|
)
|
|
|
Third Quarter 2019
|
||||||||||||||||
(Millions of Dollars)
|
|
Total Gain (Loss) Recorded in OCI
|
|
Excluded Component Recorded in OCI
|
|
Income Statement Classification
|
|
Total Gain (Loss) Reclassified from OCI to Income
|
|
Excluded Component Amortized from OCI to Income
|
||||||||
Forward Contracts
|
|
$
|
9.2
|
|
|
$
|
1.0
|
|
|
Other, net
|
|
$
|
1.1
|
|
|
$
|
1.1
|
|
Cross Currency Swap
|
|
$
|
35.9
|
|
|
$
|
12.9
|
|
|
Other, net
|
|
$
|
7.7
|
|
|
$
|
7.7
|
|
Option Contracts
|
|
$
|
0.3
|
|
|
$
|
—
|
|
|
Other, net
|
|
$
|
—
|
|
|
$
|
—
|
|
Non-derivative designated as Net Investment Hedge
|
|
$
|
35.2
|
|
|
$
|
—
|
|
|
Other, net
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Year-to-Date 2019
|
||||||||||||||||
(Millions of Dollars)
|
|
Total Gain (Loss) Recorded in OCI
|
|
Excluded Component Recorded in OCI
|
|
Income Statement Classification
|
|
Total Gain (Loss) Reclassified from OCI to Income
|
|
Excluded Component Amortized from OCI to Income
|
||||||||
Forward Contracts
|
|
$
|
15.4
|
|
|
$
|
5.2
|
|
|
Other, net
|
|
$
|
3.4
|
|
|
$
|
3.4
|
|
Cross Currency Swap
|
|
$
|
59.4
|
|
|
$
|
36.9
|
|
|
Other, net
|
|
$
|
22.2
|
|
|
$
|
22.2
|
|
Option Contracts
|
|
$
|
(1.8
|
)
|
|
$
|
—
|
|
|
Other, net
|
|
$
|
—
|
|
|
$
|
—
|
|
Non-derivative designated as Net Investment Hedge
|
|
$
|
39.4
|
|
|
$
|
—
|
|
|
Other, net
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Third Quarter 2018
|
||||||||||||||||
(Millions of Dollars)
|
|
Total Gain (Loss) Recorded in OCI
|
|
Excluded Component Recorded in OCI
|
|
Income Statement Classification
|
|
Total Gain (Loss) Reclassified from OCI to Income
|
|
Excluded Component Amortized from OCI to Income
|
||||||||
Forward Contracts
|
|
$
|
(2.6
|
)
|
|
$
|
1.1
|
|
|
Other, net
|
|
$
|
2.3
|
|
|
$
|
2.3
|
|
Cross Currency Swap
|
|
$
|
6.0
|
|
|
$
|
1.4
|
|
|
Other, net
|
|
$
|
1.7
|
|
|
$
|
1.7
|
|
Option Contracts
|
|
$
|
(2.4
|
)
|
|
$
|
—
|
|
|
Other, net
|
|
$
|
—
|
|
|
$
|
—
|
|
Non-derivative designated as Net Investment Hedge
|
|
$
|
2.9
|
|
|
$
|
—
|
|
|
Other, net
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Year-to-Date 2018
|
||||||||||||||||
(Millions of Dollars)
|
|
Total Gain (Loss) Recorded in OCI
|
|
Excluded Component Recorded in OCI
|
|
Income Statement Classification
|
|
Total Gain (Loss) Reclassified from OCI to Income
|
|
Excluded Component Amortized from OCI to Income
|
||||||||
Forward Contracts
|
|
$
|
29.6
|
|
|
$
|
7.3
|
|
|
Other, net
|
|
$
|
6.4
|
|
|
$
|
6.4
|
|
Cross Currency Swap
|
|
$
|
(1.1
|
)
|
|
$
|
9.7
|
|
|
Other, net
|
|
$
|
5.1
|
|
|
$
|
5.1
|
|
Option Contracts
|
|
$
|
(3.3
|
)
|
|
$
|
—
|
|
|
Other, net
|
|
$
|
—
|
|
|
$
|
—
|
|
Non-derivative designated as Net Investment Hedge
|
|
$
|
41.8
|
|
|
$
|
—
|
|
|
Other, net
|
|
$
|
—
|
|
|
$
|
—
|
|
(Millions of Dollars)
|
Income Statement Classification
|
|
Third Quarter
2019 |
|
Year-to-Date
2019 |
|
Third Quarter
2018 |
|
Year-to-Date
2018 |
||||||||
Foreign Exchange Contracts
|
Other, net
|
|
$
|
2.0
|
|
|
$
|
0.7
|
|
|
$
|
(5.9
|
)
|
|
$
|
9.0
|
|
(Millions of Dollars)
|
|
Currency translation adjustment and other
|
|
Unrealized (losses) gains on cash flow hedges, net of tax
|
|
Unrealized gains (losses) on net investment hedges, net of tax
|
|
Pension (losses) gains, net of tax
|
|
Total
|
||||||||||
Balance - December 29, 2018
|
|
$
|
(1,481.2
|
)
|
|
$
|
(26.8
|
)
|
|
$
|
63.3
|
|
|
$
|
(369.6
|
)
|
|
$
|
(1,814.3
|
)
|
Other comprehensive (loss) income before reclassifications
|
|
(182.4
|
)
|
|
(29.9
|
)
|
|
83.5
|
|
|
6.6
|
|
|
(122.2
|
)
|
|||||
Reclassification adjustments to earnings
|
|
—
|
|
|
2.2
|
|
|
(19.3
|
)
|
|
8.7
|
|
|
(8.4
|
)
|
|||||
Net other comprehensive (loss) income
|
|
(182.4
|
)
|
|
(27.7
|
)
|
|
64.2
|
|
|
15.3
|
|
|
(130.6
|
)
|
|||||
Balance - September 28, 2019
|
|
$
|
(1,663.6
|
)
|
|
$
|
(54.5
|
)
|
|
$
|
127.5
|
|
|
$
|
(354.3
|
)
|
|
$
|
(1,944.9
|
)
|
(Millions of Dollars)
|
|
Currency translation adjustment and other
|
|
Unrealized (losses) gains on cash flow hedges, net of tax
|
|
Unrealized gains (losses) on net investment hedges, net of tax
|
|
Pension (losses) gains, net of tax
|
|
Total
|
||||||||||
Balance - December 30, 2017
|
|
$
|
(1,108.2
|
)
|
|
$
|
(112.6
|
)
|
|
$
|
3.4
|
|
|
$
|
(371.7
|
)
|
|
$
|
(1,589.1
|
)
|
Other comprehensive (loss) income before reclassifications
|
|
(286.7
|
)
|
|
52.2
|
|
|
50.5
|
|
|
6.5
|
|
|
(177.5
|
)
|
|||||
Reclassification adjustments to earnings
|
|
—
|
|
|
15.8
|
|
|
(8.8
|
)
|
|
8.4
|
|
|
15.4
|
|
|||||
Net other comprehensive (loss) income
|
|
(286.7
|
)
|
|
68.0
|
|
|
41.7
|
|
|
14.9
|
|
|
(162.1
|
)
|
|||||
Balance - September 29, 2018
|
|
$
|
1,394.9
|
|
|
$
|
(44.6
|
)
|
|
$
|
45.1
|
|
|
$
|
(356.8
|
)
|
|
$
|
(1,751.2
|
)
|
(Millions of Dollars)
|
|
2019
|
|
2018
|
|
Affected line item in Consolidated Statements of Operations And Comprehensive Income
|
||||
Realized gains (losses) on cash flow hedges
|
|
$
|
8.3
|
|
|
$
|
(16.6
|
)
|
|
Cost of sales
|
Realized losses on cash flow hedges
|
|
(12.2
|
)
|
|
(11.3
|
)
|
|
Interest expense
|
||
Total before taxes
|
|
$
|
(3.9
|
)
|
|
$
|
(27.9
|
)
|
|
|
Tax effect
|
|
1.7
|
|
|
12.1
|
|
|
Income taxes
|
||
Realized losses on cash flow hedges, net of tax
|
|
$
|
(2.2
|
)
|
|
$
|
(15.8
|
)
|
|
|
|
|
|
|
|
|
|
||||
Realized gains on net investment hedges
|
|
$
|
25.6
|
|
|
$
|
11.5
|
|
|
Other, net
|
Tax effect
|
|
(6.3
|
)
|
|
(2.7
|
)
|
|
Income taxes
|
||
Realized gains on net investment hedges, net of tax
|
|
$
|
19.3
|
|
|
$
|
8.8
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization of defined benefit pension items:
|
|
|
|
|
|
|
||||
Actuarial losses and prior service costs / credits
|
|
$
|
(11.5
|
)
|
|
$
|
(11.2
|
)
|
|
Other, net
|
Tax effect
|
|
2.8
|
|
|
2.8
|
|
|
Income taxes
|
||
Amortization of defined benefit pension items, net of tax
|
|
$
|
(8.7
|
)
|
|
$
|
(8.4
|
)
|
|
|
|
Third Quarter
|
||||||||||||||||||||||
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||||||||||
|
U.S. Plans
|
|
Non-U.S. Plans
|
|
All Plans
|
||||||||||||||||||
(Millions of Dollars)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
Service cost
|
$
|
3.1
|
|
|
$
|
1.8
|
|
|
$
|
3.5
|
|
|
$
|
3.8
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
Interest cost
|
11.8
|
|
|
10.7
|
|
|
7.4
|
|
|
7.0
|
|
|
0.4
|
|
|
0.4
|
|
||||||
Expected return on plan assets
|
(15.4
|
)
|
|
(17.2
|
)
|
|
(11.1
|
)
|
|
(11.4
|
)
|
|
—
|
|
|
—
|
|
||||||
Amortization of prior service cost (credit)
|
0.2
|
|
|
0.3
|
|
|
(0.1
|
)
|
|
(0.4
|
)
|
|
(0.3
|
)
|
|
(0.3
|
)
|
||||||
Amortization of net loss (gain)
|
2.0
|
|
|
2.0
|
|
|
2.1
|
|
|
1.8
|
|
|
(0.1
|
)
|
|
—
|
|
||||||
Settlement / curtailment loss (gain)
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
0.1
|
|
|
—
|
|
|
—
|
|
||||||
Net periodic pension expense (benefit)
|
$
|
1.7
|
|
|
$
|
(2.4
|
)
|
|
$
|
1.6
|
|
|
$
|
0.9
|
|
|
$
|
0.1
|
|
|
$
|
0.2
|
|
|
Year-to-Date
|
||||||||||||||||||||||
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||||||||||
|
U.S. Plans
|
|
Non-U.S. Plans
|
|
All Plans
|
||||||||||||||||||
(Millions of Dollars)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
Service cost
|
$
|
9.3
|
|
|
$
|
5.6
|
|
|
$
|
10.9
|
|
|
$
|
11.5
|
|
|
$
|
0.2
|
|
|
$
|
0.4
|
|
Interest cost
|
35.3
|
|
|
32.1
|
|
|
22.7
|
|
|
21.7
|
|
|
1.2
|
|
|
1.2
|
|
||||||
Expected return on plan assets
|
(46.3
|
)
|
|
(51.5
|
)
|
|
(34.1
|
)
|
|
(35.4
|
)
|
|
—
|
|
|
—
|
|
||||||
Amortization of prior service cost (credit)
|
0.7
|
|
|
0.8
|
|
|
(0.5
|
)
|
|
(1.0
|
)
|
|
(1.0
|
)
|
|
(1.0
|
)
|
||||||
Amortization of net loss (gain)
|
6.0
|
|
|
5.9
|
|
|
6.5
|
|
|
6.5
|
|
|
(0.2
|
)
|
|
—
|
|
||||||
Settlement / curtailment loss
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
||||||
Net periodic pension expense (benefit)
|
$
|
5.0
|
|
|
$
|
(7.1
|
)
|
|
$
|
5.5
|
|
|
$
|
3.6
|
|
|
$
|
0.2
|
|
|
$
|
0.6
|
|
(Millions of Dollars)
|
Total Carrying Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
September 28, 2019
|
|
|
|
|
|
|
|
||||||||
Money market fund
|
$
|
13.3
|
|
|
$
|
13.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative assets
|
$
|
84.0
|
|
|
$
|
—
|
|
|
$
|
84.0
|
|
|
$
|
—
|
|
Derivative liabilities
|
$
|
98.6
|
|
|
$
|
—
|
|
|
$
|
98.6
|
|
|
$
|
—
|
|
Non-derivative hedging instrument
|
$
|
874.3
|
|
|
$
|
—
|
|
|
$
|
874.3
|
|
|
$
|
—
|
|
Contingent consideration liability
|
$
|
190.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
190.2
|
|
December 29, 2018
|
|
|
|
|
|
|
|
||||||||
Money market fund
|
$
|
4.8
|
|
|
$
|
4.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative assets
|
$
|
32.9
|
|
|
$
|
—
|
|
|
$
|
32.9
|
|
|
$
|
—
|
|
Derivative liabilities
|
$
|
21.3
|
|
|
$
|
—
|
|
|
$
|
21.3
|
|
|
$
|
—
|
|
Non-derivative hedging instrument
|
$
|
228.9
|
|
|
$
|
—
|
|
|
$
|
228.9
|
|
|
$
|
—
|
|
Contingent consideration liability
|
$
|
169.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
169.2
|
|
|
September 28, 2019
|
|
December 29, 2018
|
||||||||||||
(Millions of Dollars)
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
||||||||
Other investments
|
$
|
6.4
|
|
|
$
|
6.8
|
|
|
$
|
7.6
|
|
|
$
|
7.7
|
|
Long-term debt, including current portion
|
$
|
3,911.9
|
|
|
$
|
4,376.5
|
|
|
$
|
3,822.3
|
|
|
$
|
3,905.4
|
|
(Millions of Dollars)
|
December 29,
2018 |
|
Net Additions
|
|
Usage
|
|
Currency
|
|
September 28,
2019 |
||||||||||
Severance and related costs
|
$
|
105.7
|
|
|
$
|
83.9
|
|
|
$
|
(62.1
|
)
|
|
$
|
(1.2
|
)
|
|
$
|
126.3
|
|
Facility closures and asset impairments
|
3.1
|
|
|
7.3
|
|
|
(8.2
|
)
|
|
(0.1
|
)
|
|
2.1
|
|
|||||
Total
|
$
|
108.8
|
|
|
$
|
91.2
|
|
|
$
|
(70.3
|
)
|
|
$
|
(1.3
|
)
|
|
$
|
128.4
|
|
|
Third Quarter
|
|
Year-to-Date
|
||||||||||||
(Millions of Dollars)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
NET SALES
|
|
|
|
|
|
|
|
||||||||
Tools & Storage
|
$
|
2,534.0
|
|
|
$
|
2,448.0
|
|
|
$
|
7,452.3
|
|
|
$
|
7,231.6
|
|
Industrial
|
632.7
|
|
|
562.0
|
|
|
1,837.6
|
|
|
1,639.3
|
|
||||
Security
|
466.4
|
|
|
484.8
|
|
|
1,438.1
|
|
|
1,476.8
|
|
||||
Total
|
$
|
3,633.1
|
|
|
$
|
3,494.8
|
|
|
$
|
10,728.0
|
|
|
$
|
10,347.7
|
|
SEGMENT PROFIT
|
|
|
|
|
|
|
|
||||||||
Tools & Storage
|
$
|
410.1
|
|
|
$
|
356.2
|
|
|
$
|
1,115.9
|
|
|
$
|
1,056.2
|
|
Industrial
|
90.3
|
|
|
88.4
|
|
|
256.4
|
|
|
254.4
|
|
||||
Security
|
33.1
|
|
|
47.4
|
|
|
110.6
|
|
|
141.0
|
|
||||
Segment profit
|
533.5
|
|
|
492.0
|
|
|
1,482.9
|
|
|
1,451.6
|
|
||||
Corporate overhead
|
(50.1
|
)
|
|
(52.5
|
)
|
|
(155.3
|
)
|
|
(150.7
|
)
|
||||
Other, net
|
(55.0
|
)
|
|
(59.4
|
)
|
|
(182.6
|
)
|
|
(236.7
|
)
|
||||
Gain (loss) on sales of businesses
|
—
|
|
|
—
|
|
|
17.2
|
|
|
(0.8
|
)
|
||||
Restructuring charges
|
(74.0
|
)
|
|
(21.8
|
)
|
|
(91.2
|
)
|
|
(58.1
|
)
|
||||
Interest expense
|
(72.4
|
)
|
|
(72.1
|
)
|
|
(219.2
|
)
|
|
(204.3
|
)
|
||||
Interest income
|
12.7
|
|
|
18.7
|
|
|
41.4
|
|
|
50.1
|
|
||||
Earnings before income taxes and equity interest
|
$
|
294.7
|
|
|
$
|
304.9
|
|
|
$
|
893.2
|
|
|
$
|
851.1
|
|
|
Third Quarter
|
|
Year-to-Date
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Industrial
|
12.6
|
%
|
|
12.3
|
%
|
|
10.9
|
%
|
|
11.2
|
%
|
Security
|
46.9
|
%
|
|
45.2
|
%
|
|
45.7
|
%
|
|
45.8
|
%
|
|
Third Quarter
|
|
Year-to-Date
|
||||||||||||
(Millions of Dollars)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Engineered Fastening
|
$
|
429.5
|
|
|
$
|
451.2
|
|
|
$
|
1,305.7
|
|
|
$
|
1,331.2
|
|
Infrastructure
|
203.2
|
|
|
110.8
|
|
|
531.9
|
|
|
308.1
|
|
||||
Industrial
|
$
|
632.7
|
|
|
$
|
562.0
|
|
|
$
|
1,837.6
|
|
|
$
|
1,639.3
|
|
(Millions of Dollars)
|
September 28, 2019
|
|
December 29, 2018
|
||||
Tools & Storage
|
$
|
14,072.8
|
|
|
$
|
13,122.6
|
|
Industrial
|
4,505.1
|
|
|
3,620.5
|
|
||
Security
|
3,401.2
|
|
|
3,413.6
|
|
||
|
21,979.1
|
|
|
20,156.7
|
|
||
Corporate assets
|
(656.6
|
)
|
|
(748.7
|
)
|
||
Consolidated
|
$
|
21,322.5
|
|
|
$
|
19,408.0
|
|
|
Third Quarter
|
|
Year-to-Date
|
||||||||||||
(Millions of Dollars)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
United States
|
$
|
2,178.0
|
|
|
$
|
1,990.8
|
|
|
$
|
6,286.5
|
|
|
$
|
5,664.6
|
|
Canada
|
158.0
|
|
|
155.0
|
|
|
462.8
|
|
|
464.7
|
|
||||
Other Americas
|
185.6
|
|
|
200.3
|
|
|
534.6
|
|
|
592.5
|
|
||||
France
|
135.0
|
|
|
140.8
|
|
|
441.2
|
|
|
464.0
|
|
||||
Other Europe
|
687.0
|
|
|
701.4
|
|
|
2,141.6
|
|
|
2,242.1
|
|
||||
Asia
|
289.5
|
|
|
306.5
|
|
|
861.3
|
|
|
919.8
|
|
||||
Consolidated
|
$
|
3,633.1
|
|
|
$
|
3,494.8
|
|
|
$
|
10,728.0
|
|
|
$
|
10,347.7
|
|
R.
|
CONTINGENCIES
|
(Millions of Dollars)
|
Third Quarter 2019
|
|
Year-to-Date 2019
|
||||
Operating lease cost
|
$
|
37.7
|
|
|
$
|
114.0
|
|
Short-term lease cost
|
6.8
|
|
|
20.2
|
|
||
Variable lease cost
|
2.1
|
|
|
6.4
|
|
||
Sublease income
|
(0.6
|
)
|
|
(2.1
|
)
|
||
Total lease cost
|
$
|
46.0
|
|
|
$
|
138.5
|
|
(Millions of Dollars)
|
Total
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
||||||||||||||
Lease obligations
|
$
|
543.6
|
|
|
$
|
37.5
|
|
|
$
|
129.5
|
|
|
$
|
99.0
|
|
|
$
|
72.7
|
|
|
$
|
52.0
|
|
|
$
|
152.9
|
|
(Millions of Dollars)
|
Term
|
|
Maximum
Potential Payment |
|
Carrying
Amount of Liability |
||||
Guarantees on the residual values of leased assets
|
One to four years
|
|
$
|
105.0
|
|
|
$
|
—
|
|
Standby letters of credit
|
Up to three years
|
|
152.9
|
|
|
—
|
|
||
Commercial customer financing arrangements
|
Up to six years
|
|
64.8
|
|
|
6.4
|
|
||
Total
|
|
|
$
|
322.7
|
|
|
$
|
6.4
|
|
(Millions of Dollars)
|
2019
|
|
2018
|
||||
Balance beginning of period
|
$
|
102.1
|
|
|
$
|
108.5
|
|
Warranties and guarantees issued
|
92.7
|
|
|
81.7
|
|
||
Warranty payments and currency
|
(97.7
|
)
|
|
(86.0
|
)
|
||
Balance end of period
|
$
|
97.1
|
|
|
$
|
104.2
|
|
|
Third Quarter
|
|
Year-to-Date
|
||||||||||||
(Millions of Dollars)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Pre-tax income
|
$
|
—
|
|
|
$
|
3.6
|
|
|
$
|
4.6
|
|
|
$
|
9.2
|
|
•
|
$5 million and $22 million for the third quarter and year-to-date 2019 periods, respectively, reducing Gross Profit pertaining to facility-related and inventory step-up charges;
|
•
|
$37 million and $87 million for the third quarter and year-to-date 2019 periods, respectively, in SG&A primarily for integration-related costs, Security business transformation and margin resiliency initiatives;
|
•
|
$3 million benefit and $17 million charge for the third quarter and year-to-date 2019 periods, respectively, in Other, net primarily related to deal transaction costs;
|
•
|
$17 million gain for year-to-date 2019 period related to the sale of the Sargent & Greenleaf business in the second quarter; and
|
•
|
$75 million and $90 million for the third quarter and year-to-date 2019 periods, respectively, in Restructuring charges pertaining to severance and facility closures.
|
•
|
$3 million and $14 million for the third quarter and year-to-date 2018 periods, respectively, reducing Gross Profit primarily pertaining to inventory step-up charges for the Nelson acquisition;
|
•
|
$64 million and $106 million for the third quarter and year-to-date 2018 periods, respectively, in SG&A primarily for integration-related costs, consulting fees, and a non-cash fair value adjustment;
|
•
|
$8 million and $101 million for the third quarter and year-to-date 2018 periods, respectively, in Other, net primarily related to deal transaction costs and the settlement with the Environmental Protection Agency ("EPA") in the second quarter of 2018;
|
•
|
$1 million for the year-to-date 2018 period related to a previously divested business; and
|
•
|
$10 million and $15 million for the third quarter and year-to-date 2018 periods, respectively, in Restructuring charges pertaining to facility closures and severance.
|
|
Third Quarter
|
|
Year-to-Date
|
||||||||||||
(Millions of Dollars)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net sales
|
$
|
2,534.0
|
|
|
$
|
2,448.0
|
|
|
$
|
7,452.3
|
|
|
$
|
7,231.6
|
|
Segment profit
|
$
|
410.1
|
|
|
$
|
356.2
|
|
|
$
|
1,115.9
|
|
|
$
|
1,056.2
|
|
% of Net sales
|
16.2
|
%
|
|
14.6
|
%
|
|
15.0
|
%
|
|
14.6
|
%
|
|
Third Quarter
|
|
Year-to-Date
|
||||||||||||
(Millions of Dollars)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net sales
|
$
|
632.7
|
|
|
$
|
562.0
|
|
|
$
|
1,837.6
|
|
|
$
|
1,639.3
|
|
Segment profit
|
$
|
90.3
|
|
|
$
|
88.4
|
|
|
$
|
256.4
|
|
|
$
|
254.4
|
|
% of Net sales
|
14.3
|
%
|
|
15.7
|
%
|
|
14.0
|
%
|
|
15.5
|
%
|
|
Third Quarter
|
|
Year-to-Date
|
||||||||||||
(Millions of Dollars)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net sales
|
$
|
466.4
|
|
|
$
|
484.8
|
|
|
$
|
1,438.1
|
|
|
$
|
1,476.8
|
|
Segment profit
|
$
|
33.1
|
|
|
$
|
47.4
|
|
|
$
|
110.6
|
|
|
$
|
141.0
|
|
% of Net sales
|
7.1
|
%
|
|
9.8
|
%
|
|
7.7
|
%
|
|
9.5
|
%
|
(Millions of Dollars)
|
December 29,
2018 |
|
Net Additions
|
|
Usage
|
|
Currency
|
|
September 28,
2019 |
||||||||||
Severance and related costs
|
$
|
105.7
|
|
|
$
|
83.9
|
|
|
$
|
(62.1
|
)
|
|
$
|
(1.2
|
)
|
|
$
|
126.3
|
|
Facility closures and asset impairments
|
3.1
|
|
|
7.3
|
|
|
(8.2
|
)
|
|
(0.1
|
)
|
|
2.1
|
|
|||||
Total
|
$
|
108.8
|
|
|
$
|
91.2
|
|
|
$
|
(70.3
|
)
|
|
$
|
(1.3
|
)
|
|
$
|
128.4
|
|
|
Third Quarter
|
|
Year-to-Date
|
||||||||||||
(Millions of Dollars)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net cash provided by operating activities
|
$
|
192.7
|
|
|
$
|
191.5
|
|
|
$
|
262.4
|
|
|
$
|
40.1
|
|
Less: capital and software expenditures
|
(96.7
|
)
|
|
(109.4
|
)
|
|
(283.5
|
)
|
|
(327.4
|
)
|
||||
Free cash flow
|
$
|
96.0
|
|
|
$
|
82.1
|
|
|
$
|
(21.1
|
)
|
|
$
|
(287.3
|
)
|
2019
|
(a)
Total
Number Of
Shares
Purchased
|
|
Average Price
Paid Per
Share
|
|
Total Number
Of Shares
Purchased As
Part Of A Publicly
Announced Plan Or Program
|
|
(b)
Maximum Number
Of Shares That
May Yet Be
Purchased Under
The Program
|
|||||
June 30 - August 3
|
17,937
|
|
|
$
|
146.76
|
|
|
—
|
|
|
11,500,000
|
|
August 4 - August 31
|
—
|
|
|
—
|
|
|
—
|
|
|
11,500,000
|
|
|
September 1 - September 28
|
378
|
|
|
145.16
|
|
|
—
|
|
|
11,500,000
|
|
|
Total
|
18,315
|
|
|
$
|
146.73
|
|
|
—
|
|
|
11,500,000
|
|
(a)
|
The shares of common stock in this column were deemed surrendered to the Company by participants in various benefit plans of the Company to satisfy the participants’ taxes related to vesting or delivery of time-vesting restricted share units under those plans.
|
(b)
|
On July 20, 2017, the Board of Directors approved a new repurchase program for up to 15.0 million shares of the Company’s common stock and terminated its previously approved repurchase program. As of September 28, 2019, the authorized shares available for repurchase under the new repurchase program totaled 11.5 million shares. The currently authorized shares available for repurchase do not include approximately 3.6 million shares reserved and authorized for purchase under the Company’s previously approved repurchase program relating to a forward share purchase contract entered into in March 2015. Refer to Note J, Equity Arrangements, of the Notes to (Unaudited) Condensed Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q for further discussion.
|
(11)
|
Statement re-computation of per share earnings (the information required to be presented in this exhibit appears in Note C to the Company’s (Unaudited) Condensed Consolidated Financial Statements set forth in this Quarterly Report on Form 10-Q).
|
|
|
(31)(i)(a)
|
|
|
|
(i)(b)
|
|
|
|
(32)(i)
|
|
|
|
(ii)
|
|
|
|
(101)
|
The following materials from Stanley Black & Decker Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 28, 2019, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended September 28, 2019 and September 29, 2018; (ii) Condensed Consolidated Balance Sheets at September 28, 2019 and December 29, 2018; (iii) Condensed Consolidated Statements of Cash Flows for the three and nine months ended September 28, 2019 and September 29, 2018; (iv) Consolidated Statements of Changes in Shareowners' Equity for the three and nine months ended September 28, 2019 and September 29, 2018; and (v) Notes to (Unaudited) Condensed Consolidated Financial Statements**.
|
|
|
(104)
|
The cover page of Stanley Black & Decker Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 28, 2019, formatted in iXBRL (included within Exhibit 101 attachments).
|
**
|
Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
|
|
|
STANLEY BLACK & DECKER, INC.
|
||
|
|
|
|
|
Date:
|
October 25, 2019
|
By:
|
|
/s/ DONALD ALLAN, JR.
|
|
|
|
|
Donald Allan, Jr.
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
Date:
|
October 25, 2019
|
|
/s/ James M. Loree
|
|
|
|
James M. Loree
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
Date:
|
October 25, 2019
|
|
|
/s/ Donald Allan, Jr.
|
|
|
|
|
Donald Allan, Jr.
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ James M. Loree
|
|
|
James M. Loree
|
|
|
President and Chief Executive Officer
|
|
|
Date: October 25, 2019
|
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Donald Allan, Jr.
|
|
|
Donald Allan, Jr.
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
Date: October 25, 2019
|
|