STANLEY BLACK & DECKER, INC. - FORM 8-K - EX-99.2 - FINANCIAL STATEMENTS AND SUPPORTING SCHEDULES CONTAINED IN PRESS RELEASE - January 26, 2017

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EX-99.1 - PRESS RELEASE - STANLEY BLACK & DECKER, INC.ex991q42016.htm
8-K - 8-K - STANLEY BLACK & DECKER, INC.a8kq42016.htm
Exhibit 99.2

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, Millions of Dollars Except Per Share Amounts)
 
 
Fourth Quarter
 
Year-to-Date
 
2016
 
2015
 
2016
 
2015
NET SALES
$
2,920.4

 
$
2,845.4

 
$
11,406.9

 
$
11,171.8

COSTS AND EXPENSES
 
 
 
 
 
 
 
Cost of sales
1,843.8

 
1,831.2

 
7,139.7

 
7,099.8

Gross margin
1,076.6


1,014.2

 
4,267.2

 
4,072.0

% of Net Sales
36.9
%
 
35.6
%
 
37.4
%
 
36.4
%
Selling, general and administrative
683.8

 
610.6

 
2,623.9

 
2,486.4

% of Net Sales
23.4
%
 
21.5
%
 
23.0
%
 
22.3
%
Operating margin
392.8

 
403.6

 
1,643.3

 
1,585.6

% of Net sales
13.5
%
 
14.2
%
 
14.4
%
 
14.2
%
Other - net
46.3

 
53.8

 
196.9

 
222.0

Restructuring charges
21.7

 
3.7

 
49.0

 
47.6

Income from operations
324.8

 
346.1

 
1,397.4

 
1,316.0

Interest - net
42.5

 
39.7

 
171.3

 
165.2

EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
282.3

 
306.4

 
1,226.1

 
1,150.8

Income taxes on continuing operations
26.5

 
39.1

 
261.2

 
248.6

NET EARNINGS FROM CONTINUING OPERATIONS
255.8

 
267.3

 
964.9

 
902.2

Less: net earnings (loss) attributable to non-controlling interests
0.3

 
0.1

 
(0.4
)
 
(1.6
)
NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREOWNERS
255.5

 
267.2

 
965.3

 
903.8

NET LOSS FROM DISCONTINUED OPERATIONS
—

 
(1.7
)
 
—

 
(20.1
)
NET EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS
$
255.5

 
$
265.5

 
$
965.3

 
$
883.7

 
 
 
 
 
 
 
 
BASIC EARNINGS (LOSS) PER SHARE OF COMMON STOCK
 
 
 
 
 
 
 
Continuing operations
$
1.74

 
$
1.83

 
$
6.61

 
$
6.10

Discontinued operations
—

 
(0.01
)
 
—

 
(0.14
)
Total basic earnings per share of common stock
$
1.74

 
$
1.82

 
$
6.61

 
$
5.96

DILUTED EARNINGS (LOSS) PER SHARE OF COMMON STOCK
 
 
 
 
 
 
 
Continuing operations
$
1.71

 
$
1.78

 
$
6.51

 
$
5.92

Discontinued operations
—

 
(0.01
)
 
—

 
(0.13
)
Total diluted earnings per share of common stock
$
1.71

 
$
1.77

 
$
6.51

 
$
5.79

DIVIDENDS PER SHARE
$
0.58

 
$
0.55

 
$
2.26

 
$
2.14

WEIGHTED AVERAGE SHARES OUTSTANDING (in thousands)
 
 
 
 
 
 
 
Basic
147,145

 
145,908

 
146,041

 
148,234

Diluted
149,440

 
150,020

 
148,207

 
152,706

 

 


9
Exhibit 99.2

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, Millions of Dollars)
 
 
 
December 31, 2016
 
January 2, 2016
ASSETS
 
 
 
 
Cash and cash equivalents
 
$
1,131.8

 
$
465.4

Accounts and notes receivable, net
 
1,302.8

 
1,331.8

Inventories, net
 
1,478.0

 
1,526.4

Assets held for sale
 
523.4

 
—

Other current assets
 
352.5

 
338.5

Total current assets
 
4,788.5

 
3,662.1

Property, plant and equipment, net
 
1,451.2

 
1,450.2

Goodwill and other intangibles, net
 
8,993.5

 
9,625.8

Other assets
 
437.3

 
389.7

Total assets
 
$
15,670.5

 
$
15,127.8

LIABILITIES AND SHAREOWNERS’ EQUITY
 
 
 
 
Short-term borrowings
 
$
12.1

 
$
7.6

Accounts payable
 
1,640.4

 
1,533.1

Liabilities held for sale
 
53.5

 
—

Accrued expenses
 
1,101.5

 
1,261.9

Total current liabilities
 
2,807.5

 
2,802.6

Long-term debt
 
3,815.3

 
3,792.1

Other long-term liabilities
 
2,674.1

 
2,673.9

Stanley Black & Decker, Inc. shareowners’ equity
 
6,351.6

 
5,811.6

Non-controlling interests’ equity
 
22.0

 
47.6

Total liabilities and shareowners' equity
 
$
15,670.5

 
$
15,127.8



10
Exhibit 99.2

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
SUMMARY OF CASH FLOW ACTIVITY
(Unaudited, Millions of Dollars)
 
 
 
Fourth Quarter
 
Year-to-Date
 
 
 
2016
 
2015
 
2016
 
2015
 
 
OPERATING ACTIVITIES
 
 
 
 
 
 
 
 
 
Net earnings from continuing operations
$
255.8

 
$
267.3

 
$
964.9

 
$
902.2

 
 
Net loss from discontinued operations
—

 
(1.7
)
 
—

 
(20.1
)
 
 
Depreciation and amortization
102.8

 
105.6

 
408.0

 
414.0

 
 
Changes in working capital1
450.5

 
503.5

 
57.2

 
(98.0
)
 
 
Other
26.1

 
(46.5
)
 
55.1

 
(15.8
)
 
 
Net cash provided by operating activities
835.2

 
828.2

 
1,485.2

 
1,182.3

 
 
INVESTING AND FINANCING ACTIVITIES
 
 
 
 
 
 
 
 
 
Capital and software expenditures
(125.3
)
 
(131.3
)
 
(347.0
)
 
(311.4
)
 
 
Business acquisitions, net of cash acquired
—

 
(0.1
)
 
(59.3
)
 
(17.6
)
 
 
Proceeds from issuances of common stock
367.2

 
79.5

 
418.5

 
163.5

 
 
Net short-term (repayments) borrowings
(90.5
)
 
(449.6
)
 
1.9

 
1.2

 
 
Net investment hedge settlements
41.4

 
25.5

 
104.7

 
137.7

 
 
Cash dividends on common stock
(87.0
)
 
(80.7
)
 
(330.9
)
 
(319.9
)
 
 
Purchases of common stock for treasury
(11.4
)
 
(9.7
)
 
(374.1
)
 
(649.8
)
 
 
Cash settlement on forward stock purchase contract
(147.4
)
 
—

 
(147.4
)
 
—

 
 
Non-controlling interest buyout
(12.5
)
 
(33.5
)
 
(12.5
)
 
(33.5
)
 
 
Effect of exchange rate changes on cash
(78.9
)
 
(52.1
)
 
(101.7
)
 
(132.9
)
 
 
Other
20.2

 
(4.1
)
 
29.0

 
(50.8
)
 
 
Net cash used in investing and financing activities
(124.2
)
 
(656.1
)
 
(818.8
)
 
(1,213.5
)
 
 
Increase (Decrease) in Cash and Cash Equivalents
711.0

 
172.1

 
666.4

 
(31.2
)
 
 
Cash and Cash Equivalents, Beginning of Period
420.8

 
293.3

 
465.4

 
496.6

 
 
Cash and Cash Equivalents, End of Period
$
1,131.8

 
$
465.4

 
$
1,131.8

 
$
465.4

 
 
 
 
 
 
 
 
 
 
 
 
Free Cash Flow Computation2
 
 
 
 
 
 
 
 
 
Operating cash flow
$
835.2

 
$
828.2

 
$
1,485.2

 
$
1,182.3

 
 
Less: capital and software expenditures
(125.3
)
 
(131.3
)
 
(347.0
)
 
(311.4
)
 
 
Free cash flow (before dividends)
$
709.9

 
$
696.9

 
$
1,138.2

 
$
870.9

 
 
 
 
 
 
 
 
 
 
 
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. 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.
 
 
 
 




11
Exhibit 99.2

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(Unaudited, Millions of Dollars)
 
 
Fourth Quarter
 
Year-to-Date
 
2016
 
2015
 
2016
 
2015
NET SALES
 
 
 
 
 
 
 
Tools & Storage
$
1,933.8

 
$
1,830.9

 
$
7,469.2

 
$
7,140.7

Security
532.8

 
538.0

 
2,097.4

 
2,092.9

Industrial
453.8

 
476.5

 
1,840.3

 
1,938.2

Total
$
2,920.4

 
$
2,845.4

 
$
11,406.9

 
$
11,171.8

SEGMENT PROFIT
 
 
 
 
 
 
 
Tools & Storage
$
312.4

 
$
303.9

 
$
1,266.9

 
$
1,170.1

Security
69.9

 
68.8

 
269.2

 
239.6

Industrial
69.2

 
85.5

 
304.4

 
339.9

Segment Profit
451.5

 
458.2

 
1,840.5

 
1,749.6

Corporate Overhead
(58.7
)
 
(54.6
)
 
(197.2
)
 
(164.0
)
Total
$
392.8

 
$
403.6

 
$
1,643.3

 
$
1,585.6

Segment Profit as a Percentage of Net Sales
 
 
 
 
 
 
 
Tools & Storage
16.2
 %
 
16.6
 %
 
17.0
 %
 
16.4
 %
Security
13.1
 %
 
12.8
 %
 
12.8
 %
 
11.4
 %
Industrial
15.2
 %
 
17.9
 %
 
16.5
 %
 
17.5
 %
Segment Profit
15.5
 %
 
16.1
 %
 
16.1
 %
 
15.7
 %
Corporate Overhead
(2.0
)%
 
(1.9
)%
 
(1.7
)%
 
(1.5
)%
Total
13.5
 %
 
14.2
 %
 
14.4
 %
 
14.2
 %


12

STANLEY BLACK & DECKER, INC. Reports