Attached files
| file | filename |
|---|---|
| EX-99.1 - PRESS RELEASE - STANLEY BLACK & DECKER, INC. | ex991q42019.htm |
| 8-K - 8-K - STANLEY BLACK & DECKER, INC. | a8kq42019.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 | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
NET SALES | $ | 3,714.2 | $ | 3,634.7 | $ | 14,442.2 | $ | 13,982.4 | |||||||
COSTS AND EXPENSES | |||||||||||||||
Cost of sales | 2,553.6 | 2,474.8 | 9,636.7 | 9,131.3 | |||||||||||
Gross margin | 1,160.6 | 1,159.9 | 4,805.5 | 4,851.1 | |||||||||||
% of Net Sales | 31.2 | % | 31.9 | % | 33.3 | % | 34.7 | % | |||||||
Selling, general and administrative | 723.7 | 781.4 | 3,041.0 | 3,171.7 | |||||||||||
% of Net Sales | 19.5 | % | 21.5 | % | 21.1 | % | 22.7 | % | |||||||
Operating margin | 436.9 | 378.5 | 1,764.5 | 1,679.4 | |||||||||||
% of Net sales | 11.8 | % | 10.4 | % | 12.2 | % | 12.0 | % | |||||||
Other - net | 84.4 | 50.3 | 267.0 | 287.0 | |||||||||||
Loss (gain) on sales of businesses | 0.2 | — | (17.0 | ) | 0.8 | ||||||||||
Restructuring charges | 62.9 | 102.2 | 154.1 | 160.3 | |||||||||||
Income from operations | 289.4 | 226.0 | 1,360.4 | 1,231.3 | |||||||||||
Interest - net | 52.6 | 55.0 | 230.4 | 209.2 | |||||||||||
EARNINGS BEFORE INCOME TAXES AND EQUITY INTEREST | 236.8 | 171.0 | 1,130.0 | 1,022.1 | |||||||||||
Income taxes | 25.3 | 277.0 | 160.8 | 416.3 | |||||||||||
NET EARNINGS (LOSS) BEFORE EQUITY INTEREST | 211.5 | (106.0 | ) | 969.2 | 605.8 | ||||||||||
Share of net losses of equity method investment | (12.4 | ) | — | (11.2 | ) | — | |||||||||
NET EARNINGS (LOSS) | 199.1 | (106.0 | ) | 958.0 | 605.8 | ||||||||||
Less: net earnings attributable to non-controlling interests | — | 0.8 | 2.2 | 0.6 | |||||||||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO COMMON SHAREOWNERS | $ | 199.1 | $ | (106.8 | ) | $ | 955.8 | $ | 605.2 | ||||||
EARNINGS (LOSS) PER SHARE OF COMMON STOCK | |||||||||||||||
Basic | $ | 1.34 | $ | (0.72 | ) | $ | 6.44 | $ | 4.06 | ||||||
Diluted | $ | 1.32 | $ | (0.72 | ) | $ | 6.35 | $ | 3.99 | ||||||
DIVIDENDS PER SHARE | $ | 0.69 | $ | 0.66 | $ | 2.70 | $ | 2.58 | |||||||
WEIGHTED-AVERAGE SHARES OUTSTANDING (in thousands) | |||||||||||||||
Basic | 149,016 | 147,582 | 148,365 | 148,919 | |||||||||||
Diluted | 151,244 | 147,582 | 150,558 | 151,643 | |||||||||||
9
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, Millions of Dollars)
December 28, 2019 | December 29, 2018 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 297.7 | $ | 288.7 | ||||
Accounts and notes receivable, net | 1,454.6 | 1,607.8 | ||||||
Inventories, net | 2,255.0 | 2,373.5 | ||||||
Other current assets | 449.3 | 299.4 | ||||||
Total current assets | 4,456.6 | 4,569.4 | ||||||
Property, plant and equipment, net | 1,959.5 | 1,915.2 | ||||||
Goodwill and other intangibles, net | 12,859.5 | 12,441.1 | ||||||
Other assets | 1,321.0 | 482.3 | ||||||
Total assets | $ | 20,596.6 | $ | 19,408.0 | ||||
LIABILITIES AND SHAREOWNERS’ EQUITY | ||||||||
Short-term borrowings | $ | 337.3 | $ | 376.1 | ||||
Current maturities of long-term debt | 3.1 | 2.5 | ||||||
Accounts payable | 2,087.8 | 2,233.2 | ||||||
Accrued expenses | 1,977.5 | 1,389.8 | ||||||
Total current liabilities | 4,405.7 | 4,001.6 | ||||||
Long-term debt | 3,176.4 | 3,819.8 | ||||||
Other long-term liabilities | 3,872.3 | 3,746.7 | ||||||
Stanley Black & Decker, Inc. shareowners’ equity | 9,136.3 | 7,836.2 | ||||||
Non-controlling interests’ equity | 5.9 | 3.7 | ||||||
Total liabilities and shareowners' equity | $ | 20,596.6 | $ | 19,408.0 | ||||
10
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
SUMMARY OF CASH FLOW ACTIVITY
(Unaudited, Millions of Dollars)
Fourth Quarter | Year-to-Date | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||
Net earnings (loss) | $ | 199.1 | $ | (106.0 | ) | $ | 958.0 | $ | 605.8 | |||||||
Depreciation and amortization | 139.8 | 125.5 | 560.2 | 506.5 | ||||||||||||
Loss (gain) on sales of businesses | 0.2 | — | (17.0 | ) | 0.8 | |||||||||||
Share of net losses of equity method investment | 12.4 | — | 11.2 | — | ||||||||||||
Changes in working capital1 | 974.1 | 779.2 | 114.9 | (237.9 | ) | |||||||||||
Other | (82.3 | ) | 422.1 | (121.6 | ) | 385.7 | ||||||||||
Net cash provided by operating activities | 1,243.3 | 1,220.8 | 1,505.7 | 1,260.9 | ||||||||||||
INVESTING AND FINANCING ACTIVITIES | ||||||||||||||||
Capital and software expenditures | (141.2 | ) | (164.7 | ) | (424.7 | ) | (492.1 | ) | ||||||||
(Payments) proceeds from sales of businesses, net of cash sold | (0.1 | ) | — | 76.6 | (3.0 | ) | ||||||||||
Business acquisitions, net of cash acquired | (3.2 | ) | (2.7 | ) | (685.4 | ) | (524.6 | ) | ||||||||
Sales of assets | 94.9 | 26.0 | 100.1 | 45.2 | ||||||||||||
Purchases of investments | (2.0 | ) | (5.6 | ) | (260.6 | ) | (21.7 | ) | ||||||||
Payments on long-term debt | (750.0 | ) | (977.5 | ) | (1,150.0 | ) | (977.5 | ) | ||||||||
Proceeds from debt issuance, net of fees | — | 990.0 | 496.2 | 990.0 | ||||||||||||
Stock purchase contract fees | (10.0 | ) | (10.0 | ) | (40.3 | ) | (40.3 | ) | ||||||||
Net short-term (repayments) borrowings | (1,136.0 | ) | (1,011.9 | ) | (18.1 | ) | 433.2 | |||||||||
Premium paid on equity option | (19.2 | ) | — | (19.2 | ) | (57.3 | ) | |||||||||
Proceeds from issuance of preferred stock | 735.0 | — | 735.0 | — | ||||||||||||
Proceeds from issuances of common stock | 99.9 | 5.7 | 146.0 | 38.5 | ||||||||||||
Purchases of common stock for treasury | (15.6 | ) | (12.6 | ) | (27.5 | ) | (527.1 | ) | ||||||||
Cash dividends on common stock | (104.4 | ) | (98.4 | ) | (402.0 | ) | (384.9 | ) | ||||||||
Effect of exchange rate changes on cash | 19.0 | 0.2 | (1.4 | ) | (53.9 | ) | ||||||||||
Other | (20.2 | ) | (16.6 | ) | (27.2 | ) | (29.1 | ) | ||||||||
Net cash used in investing and financing activities | (1,253.1 | ) | (1,278.1 | ) | (1,502.5 | ) | (1,604.6 | ) | ||||||||
(Decrease) increase in cash, cash equivalents and restricted cash | (9.8 | ) | (57.3 | ) | 3.2 | (343.7 | ) | |||||||||
Cash, cash equivalents and restricted cash, beginning of period | 324.4 | 368.7 | 311.4 | 655.1 | ||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 314.6 | $ | 311.4 | $ | 314.6 | $ | 311.4 | ||||||||
Free Cash Flow Computation2 | ||||||||||||||||
Operating cash flow | $ | 1,243.3 | $ | 1,220.8 | $ | 1,505.7 | $ | 1,260.9 | ||||||||
Less: capital and software expenditures | (141.2 | ) | (164.7 | ) | (424.7 | ) | (492.1 | ) | ||||||||
Free cash flow (before dividends) | $ | 1,102.1 | $ | 1,056.1 | $ | 1,081.0 | $ | 768.8 | ||||||||
Reconciliation of Cash, Cash Equivalents and Restricted Cash | ||||||||||||||||
December 28, 2019 | December 29, 2018 | |||||||||||||||
Cash and cash equivalents | $ | 297.7 | $ | 288.7 | ||||||||||||
Restricted cash included in Other current assets | 16.9 | 22.7 | ||||||||||||||
Cash, cash equivalents and restricted cash | $ | 314.6 | $ | 311.4 | ||||||||||||
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 | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
NET SALES | |||||||||||||||
Tools & Storage | $ | 2,609.8 | $ | 2,582.4 | $ | 10,062.1 | $ | 9,814.0 | |||||||
Industrial | 597.1 | 548.5 | 2,434.7 | 2,187.8 | |||||||||||
Security | 507.3 | 503.8 | 1,945.4 | 1,980.6 | |||||||||||
Total | $ | 3,714.2 | $ | 3,634.7 | $ | 14,442.2 | $ | 13,982.4 | |||||||
SEGMENT PROFIT | |||||||||||||||
Tools & Storage | $ | 417.4 | $ | 336.9 | $ | 1,533.3 | $ | 1,393.1 | |||||||
Industrial | 77.7 | 65.4 | 334.1 | 319.8 | |||||||||||
Security | 16.0 | 28.3 | 126.6 | 169.3 | |||||||||||
Segment Profit | 511.1 | 430.6 | 1,994.0 | 1,882.2 | |||||||||||
Corporate Overhead | (74.2 | ) | (52.1 | ) | (229.5 | ) | (202.8 | ) | |||||||
Total | $ | 436.9 | $ | 378.5 | $ | 1,764.5 | $ | 1,679.4 | |||||||
Segment Profit as a Percentage of Net Sales | |||||||||||||||
Tools & Storage | 16.0 | % | 13.0 | % | 15.2 | % | 14.2 | % | |||||||
Industrial | 13.0 | % | 11.9 | % | 13.7 | % | 14.6 | % | |||||||
Security | 3.2 | % | 5.6 | % | 6.5 | % | 8.5 | % | |||||||
Segment Profit | 13.8 | % | 11.8 | % | 13.8 | % | 13.5 | % | |||||||
Corporate Overhead | (2.0 | )% | (1.4 | )% | (1.6 | )% | (1.5 | )% | |||||||
Total | 11.8 | % | 10.4 | % | 12.2 | % | 12.0 | % | |||||||
12
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)
Fourth Quarter 2019 | |||||||||||||
Reported | Acquisition- Related Charges & Other1 | Normalized4 | |||||||||||
Gross margin | $ | 1,160.6 | $ | 17.3 | $ | 1,177.9 | |||||||
% of Net Sales | 31.2 | % | 31.7 | % | |||||||||
Selling, general and administrative | 723.7 | (52.6 | ) | 671.1 | |||||||||
% of Net Sales | 19.5 | % | 18.1 | % | |||||||||
Operating margin | 436.9 | 69.9 | 506.8 | ||||||||||
% of Net Sales | 11.8 | % | 13.6 | % | |||||||||
Earnings before income taxes and equity interest | 236.8 | 164.0 | 400.8 | ||||||||||
Income taxes | 25.3 | 38.0 | 63.3 | ||||||||||
Share of net losses of equity method investment | (12.4 | ) | 5.3 | (7.1 | ) | ||||||||
Net earnings attributable to common shareowners | 199.1 | 131.3 | 330.4 | ||||||||||
Diluted earnings per share of common stock | $ | 1.32 | $ | 0.86 | $ | 2.18 | |||||||
1 | Acquisition-related charges and other relates primarily to restructuring, deal and integration costs, charges related to the extinguishment of debt, Security business transformation and margin resiliency initiatives. | ||||||||||||
Fourth Quarter 2018 | |||||||||||||
Reported | Acquisition- Related Charges & Other2 | Normalized4 | |||||||||||
Gross margin | $ | 1,159.9 | $ | 51.9 | $ | 1,211.8 | |||||||
% of Net Sales | 31.9 | % | 33.3 | % | |||||||||
Selling, general and administrative | 781.4 | (52.3 | ) | 729.1 | |||||||||
% of Net Sales | 21.5 | % | 20.1 | % | |||||||||
Operating margin | 378.5 | 104.2 | 482.7 | ||||||||||
% of Net Sales | 10.4 | % | 13.3 | % | |||||||||
Earnings before income taxes | 171.0 | 212.7 | 383.7 | ||||||||||
Income taxes | 277.0 | (210.8 | ) | 66.2 | |||||||||
Net (loss) earnings attributable to common shareowners | (106.8 | ) | 423.5 | 316.7 | |||||||||
Diluted (loss) earnings per share of common stock3 | $ | (0.72 | ) | $ | 2.83 | $ | 2.11 | ||||||
2 | Acquisition-related charges and other relate primarily to integration and consulting costs, a cost reduction program, an incremental freight charge related to a service provider's bankruptcy, and a tax charge related to the enactment of new U.S. tax legislation. | ||||||||||||
3 | The normalized diluted earnings per share for the fourth quarter of 2018 is calculated using diluted weighted-average shares outstanding of 149.849 million. | ||||||||||||
4 | The normalized 2019 and 2018 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 acquisition-related and other charges. | ||||||||||||
13
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)
Year-to-Date 2019 | |||||||||||||
Reported | Acquisition- Related Charges & Other1 | Normalized3 | |||||||||||
Gross margin | $ | 4,805.5 | $ | 39.7 | $ | 4,845.2 | |||||||
% of Net Sales | 33.3 | % | 33.5 | % | |||||||||
Selling, general and administrative | 3,041.0 | (139.5 | ) | 2,901.5 | |||||||||
% of Net Sales | 21.1 | % | 20.1 | % | |||||||||
Operating margin | 1,764.5 | 179.2 | 1,943.7 | ||||||||||
% of Net Sales | 12.2 | % | 13.5 | % | |||||||||
Earnings before income taxes and equity interest | 1,130.0 | 363.2 | 1,493.2 | ||||||||||
Income taxes | 160.8 | 78.1 | 238.9 | ||||||||||
Share of net (losses) earnings of equity method investment | (11.2 | ) | 24.3 | 13.1 | |||||||||
Net earnings attributable to common shareowners | 955.8 | 309.4 | 1,265.2 | ||||||||||
Diluted earnings per share of common stock | $ | 6.35 | $ | 2.05 | $ | 8.40 | |||||||
1 | Acquisition-related charges and other relates primarily to restructuring, deal and integration costs, charges related to the extinguishment of debt, Security business transformation, margin resiliency initiatives, and a gain on a sale of a business. | ||||||||||||
Year-to-Date 2018 | |||||||||||||
Reported | Acquisition- Related Charges & Other2 | Normalized3 | |||||||||||
Gross margin | $ | 4,851.1 | $ | 65.7 | $ | 4,916.8 | |||||||
% of Net Sales | 34.7 | % | 35.2 | % | |||||||||
Selling, general and administrative | 3,171.7 | (157.8 | ) | 3,013.9 | |||||||||
% of Net Sales | 22.7 | % | 21.6 | % | |||||||||
Operating margin | 1,679.4 | 223.5 | 1,902.9 | ||||||||||
% of Net Sales | 12.0 | % | 13.6 | % | |||||||||
Earnings before income taxes | 1,022.1 | 449.9 | 1,472.0 | ||||||||||
Income taxes | 416.3 | (180.8 | ) | 235.5 | |||||||||
Net earnings attributable to common shareowners | 605.2 | 630.7 | 1,235.9 | ||||||||||
Diluted earnings per share of common stock | $ | 3.99 | $ | 4.16 | $ | 8.15 | |||||||
2 | Acquisition-related charges and other relates primarily to inventory step-up, integration and consulting costs, a non-cash fair value adjustment, an environmental remediation settlement, a cost reduction program, an incremental freight charge related to a service provider's bankruptcy, and tax charges related to the enactment of new U.S. tax legislation. | ||||||||||||
3 | The normalized 2019 and 2018 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 acquisition-related and other charges. | ||||||||||||
14
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)
Fourth Quarter 2019 | |||||||||||||
Reported | Acquisition- Related and Other Charges1 | Normalized3 | |||||||||||
SEGMENT PROFIT | |||||||||||||
Tools & Storage | $ | 417.4 | $ | 12.8 | $ | 430.2 | |||||||
Industrial | 77.7 | 3.7 | 81.4 | ||||||||||
Security | 16.0 | 41.0 | 57.0 | ||||||||||
Segment Profit | 511.1 | 57.5 | 568.6 | ||||||||||
Corporate Overhead | (74.2 | ) | 12.4 | (61.8 | ) | ||||||||
Total | $ | 436.9 | $ | 69.9 | $ | 506.8 | |||||||
Segment Profit as a Percentage of Net Sales | |||||||||||||
Tools & Storage | 16.0 | % | 16.5 | % | |||||||||
Industrial | 13.0 | % | 13.6 | % | |||||||||
Security | 3.2 | % | 11.2 | % | |||||||||
Segment Profit | 13.8 | % | 15.3 | % | |||||||||
Corporate Overhead | (2.0 | )% | (1.7 | )% | |||||||||
Total | 11.8 | % | 13.6 | % | |||||||||
1 | Acquisition-related and other charges relate primarily to Security business transformation and margin resiliency initiatives. | ||||||||||||
Fourth Quarter 2018 | |||||||||||||
Reported | Acquisition- Related and Other Charges2 | Normalized3 | |||||||||||
SEGMENT PROFIT | |||||||||||||
Tools & Storage | $ | 336.9 | $ | 60.4 | $ | 397.3 | |||||||
Industrial | 65.4 | 6.9 | 72.3 | ||||||||||
Security | 28.3 | 32.3 | 60.6 | ||||||||||
Segment Profit | 430.6 | 99.6 | 530.2 | ||||||||||
Corporate Overhead | (52.1 | ) | 4.6 | (47.5 | ) | ||||||||
Total | $ | 378.5 | $ | 104.2 | $ | 482.7 | |||||||
Segment Profit as a Percentage of Net Sales | |||||||||||||
Tools & Storage | 13.0 | % | 15.4 | % | |||||||||
Industrial | 11.9 | % | 13.2 | % | |||||||||
Security | 5.6 | % | 12.0 | % | |||||||||
Segment Profit | 11.8 | % | 14.6 | % | |||||||||
Corporate Overhead | (1.4 | )% | (1.3 | )% | |||||||||
Total | 10.4 | % | 13.3 | % | |||||||||
2 | Acquisition-related and other charges relate primarily to integration and consulting costs and an incremental freight charge related to a service provider's bankruptcy. | ||||||||||||
3 | The normalized 2019 and 2018 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 acquisition-related and other charges. | ||||||||||||
15
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)
Year-to-Date 2019 | |||||||||||||
Reported | Acquisition- Related and Other Charges1 | Normalized3 | |||||||||||
SEGMENT PROFIT | |||||||||||||
Tools & Storage | $ | 1,533.3 | $ | 44.3 | $ | 1,577.6 | |||||||
Industrial | 334.1 | 25.8 | 359.9 | ||||||||||
Security | 126.6 | 85.7 | 212.3 | ||||||||||
Segment Profit | 1,994.0 | 155.8 | 2,149.8 | ||||||||||
Corporate Overhead | (229.5 | ) | 23.4 | (206.1 | ) | ||||||||
Total | $ | 1,764.5 | $ | 179.2 | $ | 1,943.7 | |||||||
Segment Profit as a Percentage of Net Sales | |||||||||||||
Tools & Storage | 15.2 | % | 15.7 | % | |||||||||
Industrial | 13.7 | % | 14.8 | % | |||||||||
Security | 6.5 | % | 10.9 | % | |||||||||
Segment Profit | 13.8 | % | 14.9 | % | |||||||||
Corporate Overhead | (1.6 | )% | (1.4 | )% | |||||||||
Total | 12.2 | % | 13.5 | % | |||||||||
1 | Acquisition-related and other charges relate primarily to integration costs, Security business transformation and margin resiliency initiatives. | ||||||||||||
Year-to-Date 2018 | |||||||||||||
Reported | Acquisition- Related and Other Charges2 | Normalized3 | |||||||||||
SEGMENT PROFIT | |||||||||||||
Tools & Storage | $ | 1,393.1 | $ | 142.6 | $ | 1,535.7 | |||||||
Industrial | 319.8 | 26.0 | 345.8 | ||||||||||
Security | 169.3 | 42.2 | 211.5 | ||||||||||
Segment Profit | 1,882.2 | 210.8 | 2,093.0 | ||||||||||
Corporate Overhead | (202.8 | ) | 12.7 | (190.1 | ) | ||||||||
Total | $ | 1,679.4 | $ | 223.5 | $ | 1,902.9 | |||||||
Segment Profit as a Percentage of Net Sales | |||||||||||||
Tools & Storage | 14.2 | % | 15.6 | % | |||||||||
Industrial | 14.6 | % | 15.8 | % | |||||||||
Security | 8.5 | % | 10.7 | % | |||||||||
Segment Profit | 13.5 | % | 15.0 | % | |||||||||
Corporate Overhead | (1.5 | )% | (1.4 | )% | |||||||||
Total | 12.0 | % | 13.6 | % | |||||||||
2 | Acquisition-related and other charges relate primarily to inventory step-up, integration and consulting costs, a non-cash fair value adjustment, and an incremental freight charge related to a service provider's bankruptcy. | ||||||||||||
3 | The normalized 2019 and 2018 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 acquisition-related and other charges. | ||||||||||||
16