Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - STANLEY BLACK & DECKER, INC. | a8kasurecast-q42017.htm |
Exhibit 99.1
THE SUPPLEMENTAL FINANCIAL INFORMATION BELOW REFLECTS THE 2018 ADOPTION OF ASU 2014-09 AND 2017-07 |
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES, AS ADJUSTED, TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES, AS ADJUSTED
(Unaudited, Millions of Dollars Except Per Share Amounts)
FIRST QUARTER 2017 | SECOND QUARTER 2017 | THIRD QUARTER 2017 | ||||||||||||||||||||||||||||||||||
Reported1 | Acquisition- Related Charges and Other2 | Normalized3 | Reported1 | Acquisition- Related Charges and Other2 | Normalized3 | Reported1 | Acquisition- Related Charges and Other2 | Normalized3 | ||||||||||||||||||||||||||||
Net Sales | $ | 2,856.3 | $ | — | $ | 2,856.3 | $ | 3,286.7 | $ | — | $ | 3,286.7 | $ | 3,359.4 | $ | — | $ | 3,359.4 | ||||||||||||||||||
Gross margin | 1,066.0 | 6.8 | 1,072.8 | 1,213.3 | 26.1 | 1,239.4 | 1,253.0 | 9.6 | 1,262.6 | |||||||||||||||||||||||||||
% of Net Sales | 37.3 | % | 37.6 | % | 36.9 | % | 37.7 | % | 37.3 | % | 37.6 | % | ||||||||||||||||||||||||
Selling, general and administrative | 690.3 | (10.7 | ) | 679.6 | 744.2 | (8.7 | ) | 735.5 | 768.9 | (7.4 | ) | 761.5 | ||||||||||||||||||||||||
% of Net Sales | 24.2 | % | 23.8 | % | 22.6 | % | 22.4 | % | 22.9 | % | 22.7 | % | ||||||||||||||||||||||||
Operating margin | 375.7 | 17.5 | 393.2 | 469.1 | 34.8 | 503.9 | 484.1 | 17.0 | 501.1 | |||||||||||||||||||||||||||
% of Net Sales | 13.2 | % | 13.8 | % | 14.3 | % | 15.3 | % | 14.4 | % | 14.9 | % | ||||||||||||||||||||||||
Earnings before income taxes | 473.4 | (211.2 | ) | 262.2 | 358.3 | 43.0 | 401.3 | 354.4 | 33.3 | 387.7 | ||||||||||||||||||||||||||
Income taxes | 79.7 | (14.1 | ) | 65.6 | 80.7 | 13.6 | 94.3 | 79.9 | 9.3 | 89.2 | ||||||||||||||||||||||||||
Net earnings attributable to common shareowners | 393.7 | (197.1 | ) | 196.6 | 277.6 | 29.4 | 307.0 | 274.5 | 24.0 | 298.5 | ||||||||||||||||||||||||||
Diluted earnings per share of common stock | $ | 2.60 | $ | (1.30 | ) | $ | 1.30 | $ | 1.82 | $ | 0.19 | $ | 2.02 | $ | 1.80 | $ | 0.15 | $ | 1.96 | |||||||||||||||||
FOURTH QUARTER 2017 | YEAR-TO-DATE 2017 | YEAR-TO-DATE 2016 | ||||||||||||||||||||||||||||||||||
Reported1 | Acquisition- Related Charges and Other2 | Normalized3 | Reported1 | Acquisition- Related Charges and Other2 | Normalized3 | Reported1 | ||||||||||||||||||||||||||||||
Net Sales | $ | 3,464.2 | $ | — | $ | 3,464.2 | $ | 12,966.6 | $ | — | $ | 12,966.6 | $ | 11,593.5 | ||||||||||||||||||||||
Gross margin | 1,246.0 | 4.3 | 1,250.3 | 4,778.3 | 46.8 | 4,825.1 | 4,268.0 | |||||||||||||||||||||||||||||
% of Net Sales | 36.0 | % | 36.1 | % | 36.9 | % | 37.2 | % | 36.8 | % | ||||||||||||||||||||||||||
Selling, general and administrative | 795.8 | (10.9 | ) | 784.9 | 2,999.2 | (37.7 | ) | 2,961.5 | 2,632.5 | |||||||||||||||||||||||||||
% of Net Sales | 23.0 | % | 22.7 | % | 23.1 | % | 22.8 | % | 22.7 | % | ||||||||||||||||||||||||||
Operating margin | 450.2 | 15.2 | 465.4 | 1,779.1 | 84.5 | 1,863.6 | 1,635.5 | |||||||||||||||||||||||||||||
% of Net Sales | 13.0 | % | 13.4 | % | 13.7 | % | 14.4 | % | 14.1 | % | ||||||||||||||||||||||||||
Earnings before income taxes | 341.7 | 27.1 | 368.8 | 1,527.8 | (107.8 | ) | 1,420.0 | 1,229.3 | ||||||||||||||||||||||||||||
Income taxes | 60.6 | (26.1 | ) | 34.5 | 300.9 | (17.3 | ) | 283.6 | 261.7 | |||||||||||||||||||||||||||
Net earnings attributable to common shareowners | 281.5 | 53.2 | 334.7 | 1,227.3 | (90.5 | ) | 1,136.8 | 968.0 | ||||||||||||||||||||||||||||
Diluted earnings per share of common stock | $ | 1.84 | $ | 0.34 | $ | 2.18 | $ | 8.05 | $ | (0.59 | ) | $ | 7.46 | $ | 6.53 | |||||||||||||||||||||
1 | Reported, as adjusted for the impacts of ASU 2014-09 and ASU 2017-07. These new standards will be adopted by the Company in the first quarter of 2018 and will be applied retrospectively. |
2 | Acquisition-related charges and other relates primarily to inventory step-up, integration and consulting costs, gains or losses on sales of businesses, and a one-time net tax charge related to the recently enacted U.S. tax legislation. |
3 | The normalized 2017 information, as adjusted for the impacts of ASU 2014-09 and ASU 2017-07, as reconciled to GAAP adjusted for these impacts above, is considered relevant to aid analysis of the Company's margin and earnings results aside from the material impact of the acquisition-related charges, gains or losses on sales of businesses, and a one-time net tax charge related to the recently enacted U.S. tax legislation. |
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Exhibit 99.1
THE SUPPLEMENTAL FINANCIAL INFORMATION BELOW REFLECTS THE 2018 ADOPTION OF ASU 2014-09 AND 2017-07 |
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES, AS ADJUSTED, TO CORRESPONDING NON-GAAP FINANCIAL MEASURES, AS ADJUSTED
FIRST QUARTER 2017 | SECOND QUARTER 2017 | THIRD QUARTER 2017 | ||||||||||||||||||||||||||||||||||
(Unaudited, Millions of Dollars) | Reported1 | Acquisition- Related Charges2 | Normalized3 | Reported1 | Acquisition- Related Charges2 | Normalized3 | Reported1 | Acquisition- Related Charges2 | Normalized3 | |||||||||||||||||||||||||||
NET SALES | ||||||||||||||||||||||||||||||||||||
Tools & Storage | $ | 1,894.9 | $ | — | $ | 1,894.9 | $ | 2,307.4 | $ | — | $ | 2,307.4 | $ | 2,369.2 | $ | — | $ | 2,369.2 | ||||||||||||||||||
Industrial | 479.7 | — | 479.7 | 503.4 | — | 503.4 | 510.9 | — | 510.9 | |||||||||||||||||||||||||||
Security | 481.7 | — | 481.7 | 475.9 | — | 475.9 | 479.3 | — | 479.3 | |||||||||||||||||||||||||||
Total | $ | 2,856.3 | $ | — | $ | 2,856.3 | $ | 3,286.7 | $ | — | $ | 3,286.7 | $ | 3,359.4 | $ | — | $ | 3,359.4 | ||||||||||||||||||
SEGMENT PROFIT | ||||||||||||||||||||||||||||||||||||
Tools & Storage | $ | 284.5 | $ | 17.3 | $ | 301.8 | $ | 371.9 | $ | 34.1 | $ | 406.0 | $ | 394.1 | $ | 16.8 | $ | 410.9 | ||||||||||||||||||
Industrial | 85.1 | — | 85.1 | 94.7 | — | 94.7 | 92.2 | — | 92.2 | |||||||||||||||||||||||||||
Security | 50.7 | 0.2 | 50.9 | 51.8 | 0.7 | 52.5 | 54.0 | — | 54.0 | |||||||||||||||||||||||||||
Segment Profit | 420.3 | 17.5 | 437.8 | 518.4 | 34.8 | 553.2 | 540.3 | 16.8 | 557.1 | |||||||||||||||||||||||||||
Corporate Overhead | (44.6 | ) | — | (44.6 | ) | (49.3 | ) | — | (49.3 | ) | (56.2 | ) | 0.2 | (56.0 | ) | |||||||||||||||||||||
Total | $ | 375.7 | $ | 17.5 | $ | 393.2 | $ | 469.1 | $ | 34.8 | $ | 503.9 | $ | 484.1 | $ | 17.0 | $ | 501.1 | ||||||||||||||||||
Segment Profit as a Percentage of Net Sales | ||||||||||||||||||||||||||||||||||||
Tools & Storage | 15.0 | % | 15.9 | % | 16.1 | % | 17.6 | % | 16.6 | % | 17.3 | % | ||||||||||||||||||||||||
Industrial | 17.7 | % | 17.7 | % | 18.8 | % | 18.8 | % | 18.0 | % | 18.0 | % | ||||||||||||||||||||||||
Security | 10.5 | % | 10.6 | % | 10.9 | % | 11.0 | % | 11.3 | % | 11.3 | % | ||||||||||||||||||||||||
Segment Profit | 14.7 | % | 15.3 | % | 15.8 | % | 16.8 | % | 16.1 | % | 16.6 | % | ||||||||||||||||||||||||
Corporate Overhead | (1.6 | )% | (1.6 | )% | (1.5 | )% | (1.5 | )% | (1.7 | )% | (1.7 | )% | ||||||||||||||||||||||||
Total | 13.2 | % | 13.8 | % | 14.3 | % | 15.3 | % | 14.4 | % | 14.9 | % | ||||||||||||||||||||||||
FOURTH QUARTER 2017 | YEAR-TO-DATE 2017 | YEAR-TO-DATE 2016 | ||||||||||||||||||||||||||||||||||
(Unaudited, Millions of Dollars) | Reported1 | Acquisition- Related Charges2 | Normalized3 | Reported1 | Acquisition- Related Charges2 | Normalized3 | Reported1 | |||||||||||||||||||||||||||||
NET SALES | ||||||||||||||||||||||||||||||||||||
Tools & Storage | $ | 2,473.5 | $ | — | $ | 2,473.5 | $ | 9,045.0 | $ | — | $ | 9,045.0 | $ | 7,619.2 | ||||||||||||||||||||||
Industrial | 480.3 | — | 480.3 | 1,974.3 | — | 1,974.3 | 1,864.0 | |||||||||||||||||||||||||||||
Security | 510.4 | — | 510.4 | 1,947.3 | — | 1,947.3 | 2,110.3 | |||||||||||||||||||||||||||||
Total | $ | 3,464.2 | $ | — | $ | 3,464.2 | $ | 12,966.6 | $ | — | $ | 12,966.6 | $ | 11,593.5 | ||||||||||||||||||||||
SEGMENT PROFIT | ||||||||||||||||||||||||||||||||||||
Tools & Storage | $ | 388.4 | $ | 13.6 | $ | 402.0 | $ | 1,438.9 | $ | 81.8 | $ | 1,520.7 | $ | 1,258.4 | ||||||||||||||||||||||
Industrial | 73.9 | — | 73.9 | 345.9 | — | 345.9 | 300.1 | |||||||||||||||||||||||||||||
Security | 55.2 | 1.1 | 56.3 | 211.7 | 2.0 | 213.7 | 267.9 | |||||||||||||||||||||||||||||
Segment Profit | 517.5 | 14.7 | 532.2 | 1,996.5 | 83.8 | 2,080.3 | 1,826.4 | |||||||||||||||||||||||||||||
Corporate Overhead | (67.3 | ) | 0.5 | (66.8 | ) | (217.4 | ) | 0.7 | (216.7 | ) | (190.9 | ) | ||||||||||||||||||||||||
Total | $ | 450.2 | $ | 15.2 | $ | 465.4 | $ | 1,779.1 | $ | 84.5 | $ | 1,863.6 | $ | 1,635.5 | ||||||||||||||||||||||
Segment Profit as a Percentage of Net Sales | ||||||||||||||||||||||||||||||||||||
Tools & Storage | 15.7 | % | 16.3 | % | 15.9 | % | 16.8 | % | 16.5 | % | ||||||||||||||||||||||||||
Industrial | 15.4 | % | 15.4 | % | 17.5 | % | 17.5 | % | 16.1 | % | ||||||||||||||||||||||||||
Security | 10.8 | % | 11.0 | % | 10.9 | % | 11.0 | % | 12.7 | % | ||||||||||||||||||||||||||
Segment Profit | 14.9 | % | 15.4 | % | 15.4 | % | 16.0 | % | 15.8 | % | ||||||||||||||||||||||||||
Corporate Overhead | (1.9 | )% | (1.9 | )% | (1.7 | )% | (1.7 | )% | (1.6 | )% | ||||||||||||||||||||||||||
Total | 13.0 | % | 13.4 | % | 13.7 | % | 14.4 | % | 14.0 | % | ||||||||||||||||||||||||||
1 | Reported, as adjusted for the impacts of ASU 2014-09 and ASU 2017-07. These new standards will be adopted by the Company in the first quarter of 2018 and will be applied retrospectively. |
2 | Acquisition-related charges relate primarily to inventory step-up, integration and consulting costs. |
3 | The normalized 2017 information, as adjusted for the impacts of ASU 2014-09 and ASU 2017-07, as reconciled to GAAP adjusted for these impacts above, is considered relevant to aid analysis of the Company's segment profit results aside from the material impact of the acquisition-related charges. |
2