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8-K - FORM 8-K - STANLEY BLACK & DECKER, INC.d473007d8k.htm
EX-99.1 - PRESS RELEASE - STANLEY BLACK & DECKER, INC.d473007dex991.htm

Exhibit 99.2

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, Millions of Dollars Except Per Share Amounts)

 

     FOURTH QUARTER     YEAR TO DATE  
     2012     2011     2012     2011  

NET SALES

   $ 2,668.5      $ 2,565.4      $ 10,190.5      $ 9,435.5   

COSTS AND EXPENSES

        

Cost of sales

     1,720.3        1,655.0        6,485.9        5,967.3   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

     948.2        910.4        3,704.6        3,468.2   

% of Net Sales

     35.5     35.5     36.4     36.8

Selling, general and administrative

     642.2        639.7        2,520.4        2,380.9   

% of Net sales

     24.1     24.9     24.7     25.2

Operating margin

     306.0        270.7        1,184.2        1,087.3   

% of Net sales

     11.5     10.6     11.6     11.5

Other - net

     83.9        70.7        347.4        255.7   

Restructuring charges

     57.5        22.4        175.1        69.3   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     164.6        177.6        661.7        762.3   

Interest - net

     36.1        30.2        134.1        113.9   
  

 

 

   

 

 

   

 

 

   

 

 

 

EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

     128.5        147.4        527.6        648.4   

Income taxes (benefit) on continuing operations

     (2.0     (5.9     78.9        50.1   
  

 

 

   

 

 

   

 

 

   

 

 

 

NET EARNINGS FROM CONTINUING OPERATIONS

     130.5        153.3        448.7        598.3   
  

 

 

   

 

 

   

 

 

   

 

 

 

Less: net earnings (loss) attributable to non-controlling interests

     0.4        (0.5     (0.8     (0.1
  

 

 

   

 

 

   

 

 

   

 

 

 

NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREOWNERS

     130.1        153.8        449.5        598.4   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings from discontinued operations before income taxes (including pretax gain on HHI sale of $384.7 million)

     395.3        20.5        503.5        114.9   

Income taxes on discontinued operations (including income taxes for gain on HHI sale of $25.8 million)

     33.3        10.3        69.2        38.7   
  

 

 

   

 

 

   

 

 

   

 

 

 

NET EARNINGS FROM DISCONTINUED OPERATIONS

     362.0        10.2        434.3        76.2   
  

 

 

   

 

 

   

 

 

   

 

 

 

NET EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS

   $ 492.1      $ 164.0      $ 883.8      $ 674.6   
  

 

 

   

 

 

   

 

 

   

 

 

 

BASIC EARNINGS PER SHARE OF COMMON STOCK

        

Continuing operations

   $ 0.81      $ 0.94      $ 2.75      $ 3.60   

Discontinued operations

     2.24        0.06        2.66        0.46   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total basic earnings per share of common stock

   $ 3.05      $ 1.00      $ 5.41      $ 4.06   
  

 

 

   

 

 

   

 

 

   

 

 

 

DILUTED EARNINGS PER SHARE OF COMMON STOCK

        

Continuing operations

   $ 0.79      $ 0.92      $ 2.70      $ 3.52   

Discontinued operations

     2.20        0.06        2.61        0.45   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total diluted earnings per share of common stock

   $ 2.99      $ 0.98      $ 5.30      $ 3.97   
  

 

 

   

 

 

   

 

 

   

 

 

 

DIVIDENDS PER SHARE

   $ 0.49      $ 0.41      $ 1.80      $ 1.64   
  

 

 

   

 

 

   

 

 

   

 

 

 

AVERAGE SHARES OUTSTANDING (in thousands)

        

Basic

     161,212        163,421        163,067        165,832   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     164,553        166,993        166,701        170,105   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Page 12


STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited, Millions of Dollars)

 

     December 29,      December 31,  
     2012      2011  

ASSETS

     

Cash and cash equivalents

   $ 716.0       $ 906.9   

Accounts and notes receivable, net

     1,538.2         1,445.0   

Inventories, net

     1,316.6         1,270.9   

Assets held for sale

     133.4         1,141.5   

Other current assets

     394.0         416.5   
  

 

 

    

 

 

 

Total current assets

     4,098.2         5,180.8   
  

 

 

    

 

 

 

Property, plant and equipment, net

     1,333.7         1,142.6   

Goodwill and other intangibles, net

     9,955.7         9,290.8   

Other assets

     304.0         334.8   
  

 

 

    

 

 

 

Total assets

   $ 15,691.6       $ 15,949.0   
  

 

 

    

 

 

 

LIABILITIES AND SHAREOWNERS’ EQUITY

     

Short-term borrowings

   $ 11.5       $ 526.6   

Accounts payable

     1,350.1         1,199.1   

Accrued expenses

     1,527.9         1,372.4   

Liabilities held for sale

     30.3         149.7   
  

 

 

    

 

 

 

Total current liabilities

     2,919.8         3,247.8   
  

 

 

    

 

 

 

Long-term debt

     3,526.5         2,925.8   

Other long-term liabilities

     2,518.0         2,708.4   

Stanley Black & Decker, Inc. shareowners’ equity

     6,667.3         7,003.8   

Non-controlling interests’ equity

     60.0         63.2   
  

 

 

    

 

 

 

Total liabilities and equity

   $ 15,691.6       $ 15,949.0   
  

 

 

    

 

 

 

 

Page 13


STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

SUMMARY OF CASH FLOW ACTIVITY

(Unaudited, Millions of Dollars)

 

     FOURTH QUARTER     YEAR TO DATE  
     2012     2011     2012     2011  

OPERATING ACTIVITIES

        

Net earnings from continuing operations

   $ 130.5      $ 153.3      $ 448.7      $ 598.3   

Net earnings from discontinued operations

     362.0        10.2        434.3        76.2   

Net gain on HHI sale

     (358.9     —          (358.9     —     

Depreciation and amortization

     114.7        112.1        445.3        410.1   

Changes in working capital1

     338.5        242.1        52.5        170.1   

Other

     (38.7     25.6        (55.7     (255.8
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     548.1        543.3        966.2        998.9   

INVESTING AND FINANCING ACTIVITIES

        

Capital and software expenditures

     (126.5     (105.7     (386.0     (302.1

Business acquisitions

     (12.2     (1.9     (707.3     (1,179.6

Proceeds from sales of businesses

     1,261.6        28.1        1,270.2        56.6   

Proceeds from issuances of common stock

     23.5        17.2        126.4        119.6   

Net short-term repayments

     (1,335.4     (755.4     (19.1     (199.4

Cash dividends on common stock

     (82.7     (69.3     (304.0     (275.9

Payments on long-term debt

     (200.3     —          (1,422.3     (403.2

Premium paid on debt extinguishment

     —          —          (91.0     —     

Purchases of common stock for treasury

     (856.0     (4.9     (1,073.8     (11.1

Proceeds from long-term borrowings

     794.1        399.6        1,523.5        421.0   

Other

     (67.7     5.7        (73.7     (60.7
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing and financing activities

     (601.6     (486.6     (1,157.1     (1,834.8

(Decrease) Increase in Cash and Cash Equivalents

     (53.5     56.7        (190.9     (835.9

Cash and Cash Equivalents, Beginning of Period

     769.5        850.2        906.9        1,742.8   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and Cash Equivalents, End of Period

   $ 716.0      $ 906.9      $ 716.0      $ 906.9   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

1 

The change in working capital is comprised of accounts receivable, inventory, accounts payable and deferred revenue.

 

Page 14


STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

BUSINESS SEGMENT INFORMATION

(Unaudited, Millions of Dollars)

 

     FOURTH QUARTER     YEAR TO DATE  
     2012     2011     2012     2011  

NET SALES

        

Construction & DIY

   $ 1,371.7      $ 1,266.7      $ 5,193.7      $ 5,007.6   

Security

     646.5        657.8        2,428.9        1,926.5   

Industrial

     650.3        640.9        2,567.9        2,501.4   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 2,668.5      $ 2,565.4      $ 10,190.5      $ 9,435.5   
  

 

 

   

 

 

   

 

 

   

 

 

 

SEGMENT PROFIT

        

Construction & DIY

   $ 188.8      $ 153.8      $ 720.7      $ 634.8   

Security

     84.9        93.6        305.6        297.1   

Industrial

     99.9        96.2        410.2        400.7   
  

 

 

   

 

 

   

 

 

   

 

 

 

Segment Profit

     373.6        343.6        1,436.5        1,332.6   

Corporate Overhead

     (67.6     (72.9     (252.3     (245.3
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 306.0      $ 270.7      $ 1,184.2      $ 1,087.3   
  

 

 

   

 

 

   

 

 

   

 

 

 

Segment Profit as a Percentage of Net Sales

        

Construction & DIY

     13.8     12.1     13.9     12.7

Security

     13.1     14.2     12.6     15.4

Industrial

     15.4     15.0     16.0     16.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Segment Profit

     14.0     13.4     14.1     14.1

Corporate Overhead

     (2.5 %)      (2.8 %)      (2.5 %)      (2.6 %) 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

     11.5     10.6     11.6     11.5
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Page 15


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)

 

     FOURTH QUARTER 2012  
     Reported     Merger &
Acquisition-
Related
Charges1
    Normalized2  

Gross margin

   $ 948.2      $ 11.3      $ 959.5   

% of Net Sales

     35.5       36.0

Selling, general and administrative

     642.2        (38.5     603.7   

% of Net Sales

     24.1       22.6

Operating margin

     306.0        49.8        355.8   

% of Net Sales

     11.5       13.3

Earnings from continuing operations before income taxes

     128.5        131.4        259.9   

Income taxes (benefit) on continuing operations

     (2.0     36.4        34.4   

Net earnings from continuing operations

     130.1        95.0        225.1   

Diluted earnings per share of common stock

   $ 0.79      $ 0.58      $ 1.37   

 

     FOURTH QUARTER 2011  
     Reported     Merger &
Acquisition-
Related
Charges1
    Normalized2  

Gross margin

   $ 910.4      $ 6.8      $ 917.2   

% of Net Sales

     35.5       35.7

Selling, general and administrative

     639.7        (43.2     596.5   

% of Net Sales

     24.9       23.2

Operating margin

     270.7        50.0        320.7   

% of Net Sales

     10.6       12.5

Earnings from continuing operations before income taxes

     147.4        79.0        226.4   

Income taxes (benefit) on continuing operations

     (5.9     29.4        23.5   

Net earnings from continuing operations

     153.8        49.6        203.4   

Diluted earnings per share of common stock

   $ 0.92      $ 0.30      $ 1.22   

 

1 

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

2 

The normalized 2012 and 2011 information, as reconciled to GAAP 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.

 

Page 16


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 2012  
     Reported     Merger &
Acquisition-
Related and
Other
Charges1
    Normalized2  

Gross margin

   $ 3,704.6      $ 29.6      $ 3,734.2   

% of Net Sales

     36.4       36.6

Selling, general and administrative

     2,520.4        (138.4     2,382.0   

% of Net Sales

     24.7       23.4

Operating margin

     1,184.2        168.0        1,352.2   

% of Net Sales

     11.6       13.3

Earnings from continuing operations before income taxes

     527.6        442.2        969.8   

Income taxes on continuing operations

     78.9        113.0        191.9   

Net earnings from continuing operations

     449.5        329.2        778.7   

Diluted earnings per share of common stock

   $ 2.70      $ 1.97      $ 4.67   

 

1 

Merger and acquisition-related charges 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.

2 

The normalized 2012 information, as reconciled to GAAP 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.

 

     YEAR TO DATE 2011  
     Reported     Merger &
Acquisition-
Related
Charges3
    Normalized4  

Gross margin

   $ 3,468.2      $ 21.4      $ 3,489.6   

% of Net Sales

     36.8       37.0

Selling, general and administrative

     2,380.9        (98.3     2,282.6   

% of Net Sales

     25.2       24.2

Operating margin

     1,087.3        119.7        1,207.0   

% of Net Sales

     11.5       12.8

Earnings from continuing operations before income taxes

     648.4        235.6        884.0   

Income taxes on continuing operations

     50.1        49.7        99.8   

Net earnings from continuing operations

     598.4        185.9        784.3   

Diluted earnings per share of common stock

   $ 3.52      $ 1.09      $ 4.61   

 

3 

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

4 

The normalized 2011 information, as reconciled to GAAP 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.

 

Page 17


STANLEY BLACK & DECKER INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP CASH FLOW FINANCIAL MEASURES TO CORRESPONDING

NON-GAAP FINANCIAL MEASURES

(Unaudited, Millions of Dollars)

 

     FOURTH QUARTER 2012  
     Reported     Merger &
Acquisition-
Related
Charges and
Payments1
     Normalized2  

Free Cash Flow Computation3

       

Net cash provided by operating activities

   $ 548.1        144.3       $ 692.4   

Less: capital and software expenditures

     (126.5     30.4         (96.1
  

 

 

      

 

 

 

Free Cash Inflow (before dividends)

   $ 421.6         $ 596.3   
  

 

 

      

 

 

 

 

1 

Merger and acquisition-related charges and payments 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.

 

     FOURTH QUARTER 2011  
     Reported     Merger &
Acquisition-
Related
Charges and
Payments4
     Normalized2  

Free Cash Flow Computation3

       

Net cash provided by operating activities

   $ 543.3        64.3       $ 607.6   

Less: capital and software expenditures

     (105.7     51.9         (53.8
  

 

 

      

 

 

 

Free Cash Inflow (before dividends)

   $ 437.6         $ 553.8   
  

 

 

      

 

 

 

 

2, 3

Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common stock and business acquisitions, among other items. Normalized cash flow and free cash flow, as reconciled to GAAP above, are considered meaningful pro forma metrics to aid the understanding of the Company’s cash flow performance aside from the material impact of merger and acquisition-related activities.

4 

Merger and acquisition-related charges and payments relate primarily to the Black & Decker merger and Niscayah acquisition, including facility closure-related charges, employee-related charges and integration costs.

 

Page 18


STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP CASH FLOW FINANCIAL MEASURES TO CORRESPONDING

NON-GAAP FINANCIAL MEASURES

(Unaudited, Millions of Dollars)

 

     YEAR TO DATE 2012  
     Reported     Merger &
Acquisition-
Related
Charges and
Payments1
     Normalized2  

Free Cash Flow Computation3

       

Net cash provided by operating activities

   $ 966.2        356.5       $ 1,322.7   

Less: capital and software expenditures

     (386.0     122.4         (263.6
  

 

 

      

 

 

 

Free Cash Inflow (before dividends)

   $ 580.2         $ 1,059.1   
  

 

 

      

 

 

 

 

1 

Merger and acquisition-related charges and payments 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.

 

     YEAR TO DATE 2011  
     Reported     Merger &
Acquisition-
Related
Charges and
Payments4
     Normalized2  

Free Cash Flow Computation3

       

Net cash provided by operating activities

   $ 998.9        218.4       $ 1,217.3   

Less: capital and software expenditures

     (302.1     88.6         (213.5
  

 

 

      

 

 

 

Free Cash Inflow (before dividends)

   $ 696.8         $ 1,003.8   
  

 

 

      

 

 

 

 

2, 3

Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common stock and business acquisitions, among other items. Normalized cash flow and free cash flow, as reconciled to GAAP above, are considered meaningful pro forma metrics to aid the understanding of the Company’s cash flow performance aside from the material impact of merger and acquisition-related activities.

4 

Merger and acquisition-related charges and payments relate primarily to the Black & Decker merger and Niscayah acquisition, including facility closure-related charges, employee-related charges and integration costs.

 

Page 19


STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING

NON-GAAP FINANCIAL MEASURES

(Unaudited, Millions of Dollars)

 

     FOURTH QUARTER 2012  
     Reported     Merger &
Acquisition-
Related
Charges1
     Normalized2  

SEGMENT PROFIT

       

Construction & DIY

   $ 188.8      $ 10.7       $ 199.5   

Security

     84.9        15.4         100.3   

Industrial

     99.9        4.3         104.2   
  

 

 

   

 

 

    

 

 

 

Segment Profit

     373.6        30.4         404.0   

Corporate Overhead

     (67.6     19.4         (48.2
  

 

 

   

 

 

    

 

 

 

Total

   $ 306.0      $ 49.8       $ 355.8   
  

 

 

   

 

 

    

 

 

 

Segment Profit as a Percentage of Net Sales

       

Construction & DIY

     13.8        14.5

Security

     13.1        15.5

Industrial

     15.4        16.0
  

 

 

      

 

 

 

Segment Profit

     14.0        15.1

Corporate Overhead

     (2.5 %)         (1.8 %) 
  

 

 

      

 

 

 

Total

     11.5        13.3
  

 

 

      

 

 

 
     FOURTH QUARTER 2011  
     Reported     Merger &
Acquisition-
Related
Charges1
     Normalized2  

SEGMENT PROFIT

       

Construction & DIY

   $ 153.8      $ 6.5       $ 160.3   

Security

     93.6        10.0         103.6   

Industrial

     96.2        8.6         104.8   
  

 

 

   

 

 

    

 

 

 

Segment Profit

     343.6        25.1         368.7   

Corporate Overhead

     (72.9     24.9         (48.0
  

 

 

   

 

 

    

 

 

 

Total

   $ 270.7      $ 50.0       $ 320.7   
  

 

 

   

 

 

    

 

 

 

Segment Profit as a Percentage of Net Sales

       

Construction & DIY

     12.1        12.7

Security

     14.2        15.7

Industrial

     15.0        16.4
  

 

 

      

 

 

 

Segment Profit

     13.4        14.4

Corporate Overhead

     (2.8 %)         (1.9 %) 
  

 

 

      

 

 

 

Total

     10.6        12.5
  

 

 

      

 

 

 

 

1 

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

2 

The normalized 2012 and 2011 business segment information, as reconciled to GAAP 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 20


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 2012  
     Reported     Merger &
Acquisition-
Related
Charges1
     Normalized2  

SEGMENT PROFIT

       

Construction & DIY

   $ 720.7      $ 41.7       $ 762.4   

Security

     305.6        41.3         346.9   

Industrial

     410.2        7.9         418.1   
  

 

 

   

 

 

    

 

 

 

Segment Profit

     1,436.5        90.9         1,527.4   

Corporate Overhead

     (252.3     77.1         (175.2
  

 

 

   

 

 

    

 

 

 

Total

   $ 1,184.2      $ 168.0       $ 1,352.2   
  

 

 

   

 

 

    

 

 

 

Segment Profit as a Percentage of Net Sales

       

Construction & DIY

     13.9        14.7

Security

     12.6        14.3

Industrial

     16.0        16.3
  

 

 

      

 

 

 

Segment Profit

     14.1        15.0

Corporate Overhead

     (2.5 %)         (1.7 %) 
  

 

 

      

 

 

 

Total

     11.6        13.3
  

 

 

      

 

 

 
     YEAR TO DATE 2011  
     Reported     Merger &
Acquisition-
Related
Charges1
     Normalized2  

SEGMENT PROFIT

       

Construction & DIY

   $ 634.8      $ 19.8       $ 654.6   

Security

     297.1        15.3         312.4   

Industrial

     400.7        9.4         410.1   
  

 

 

   

 

 

    

 

 

 

Segment Profit

     1,332.6        44.5         1,377.1   

Corporate Overhead

     (245.3     75.2         (170.1
  

 

 

   

 

 

    

 

 

 

Total

   $ 1,087.3      $ 119.7       $ 1,207.0   
  

 

 

   

 

 

    

 

 

 

Segment Profit as a Percentage of Net Sales

       

Construction & DIY

     12.7        13.1

Security

     15.4        16.2

Industrial

     16.0        16.4
  

 

 

      

 

 

 

Segment Profit

     14.1        14.6

Corporate Overhead

     (2.6 %)         (1.8 %) 
  

 

 

      

 

 

 

Total

     11.5        12.8
  

 

 

      

 

 

 

 

1 

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

2 

The normalized 2012 and 2011 business segment information, as reconciled to GAAP 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 21