Attached files
| file | filename |
|---|---|
| EX-99.1 - EX-99.1 - STANLEY BLACK & DECKER, INC. | ex991q22021.htm |
| 8-K - 8-K - STANLEY BLACK & DECKER, INC. | swk-20210727.htm |
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, Millions of Dollars Except Per Share Amounts)
| Second Quarter | Year-to-Date | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| NET SALES | $ | 4,300.9 | $ | 3,147.4 | $ | 8,498.0 | $ | 6,276.8 | |||||||||||||||
| COSTS AND EXPENSES | |||||||||||||||||||||||
| Cost of sales | 2,757.3 | 2,134.7 | 5,390.1 | 4,241.0 | |||||||||||||||||||
| Gross margin | 1,543.6 | 1,012.7 | 3,107.9 | 2,035.8 | |||||||||||||||||||
| % of Net Sales | 35.9 | % | 32.2 | % | 36.6 | % | 32.4 | % | |||||||||||||||
| Selling, general and administrative | 901.6 | 732.0 | 1,754.5 | 1,480.5 | |||||||||||||||||||
| % of Net Sales | 21.0 | % | 23.3 | % | 20.6 | % | 23.6 | % | |||||||||||||||
| Operating margin | 642.0 | 280.7 | 1,353.4 | 555.3 | |||||||||||||||||||
| % of Net sales | 14.9 | % | 8.9 | % | 15.9 | % | 8.8 | % | |||||||||||||||
| Other - net | 53.8 | 86.9 | 112.8 | 161.8 | |||||||||||||||||||
| Loss on sales of businesses | 2.6 | — | 3.6 | — | |||||||||||||||||||
| Restructuring charges | 14.0 | 27.9 | 16.3 | 31.8 | |||||||||||||||||||
| Income from operations | 571.6 | 165.9 | 1,220.7 | 361.7 | |||||||||||||||||||
| Interest - net | 43.8 | 54.8 | 88.4 | 104.4 | |||||||||||||||||||
| EARNINGS BEFORE INCOME TAXES AND EQUITY INTEREST | 527.8 | 111.1 | 1,132.3 | 257.3 | |||||||||||||||||||
| Income taxes | 73.7 | (117.3) | 193.2 | (104.4) | |||||||||||||||||||
| NET EARNINGS BEFORE EQUITY INTEREST | 454.1 | 228.4 | 939.1 | 361.7 | |||||||||||||||||||
| Share of net earnings of equity method investment | 4.4 | 10.3 | 6.2 | 10.1 | |||||||||||||||||||
| NET EARNINGS | 458.5 | 238.7 | 945.3 | 371.8 | |||||||||||||||||||
| Less: net (losses) earnings attributable to non-controlling interests | (1.0) | 0.3 | (1.6) | 0.2 | |||||||||||||||||||
| NET EARNINGS ATTRIBUTABLE TO STANLEY BLACK & DECKER, INC. | $ | 459.5 | $ | 238.4 | $ | 946.9 | $ | 371.6 | |||||||||||||||
| Less: Preferred stock dividends | 4.8 | 4.7 | 14.2 | 4.7 | |||||||||||||||||||
| NET EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS | $ | 454.7 | $ | 233.7 | $ | 932.7 | $ | 366.9 | |||||||||||||||
| EARNINGS PER SHARE OF COMMON STOCK | |||||||||||||||||||||||
| Basic | $ | 2.87 | $ | 1.52 | $ | 5.90 | $ | 2.41 | |||||||||||||||
| Diluted | $ | 2.81 | $ | 1.52 | $ | 5.80 | $ | 2.39 | |||||||||||||||
| DIVIDENDS PER SHARE OF COMMON STOCK | $ | 0.70 | $ | 0.69 | $ | 1.40 | $ | 1.38 | |||||||||||||||
| WEIGHTED-AVERAGE SHARES OUTSTANDING (in thousands) | |||||||||||||||||||||||
| Basic | 158,644 | 153,330 | 158,081 | 152,011 | |||||||||||||||||||
| Diluted | 161,571 | 154,154 | 160,861 | 153,290 | |||||||||||||||||||
8
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, Millions of Dollars)
| July 3, 2021 | January 2, 2021 | |||||||||||||
| ASSETS | ||||||||||||||
| Cash and cash equivalents | $ | 440.4 | $ | 1,381.0 | ||||||||||
| Accounts and notes receivable, net | 1,994.7 | 1,512.2 | ||||||||||||
| Inventories, net | 3,679.5 | 2,737.4 | ||||||||||||
| Other current assets | 441.1 | 405.4 | ||||||||||||
| Total current assets | 6,555.7 | 6,036.0 | ||||||||||||
| Property, plant and equipment, net | 2,038.4 | 2,053.8 | ||||||||||||
| Goodwill and other intangibles, net | 13,934.7 | 14,093.5 | ||||||||||||
| Other assets | 1,434.1 | 1,383.0 | ||||||||||||
| Total assets | $ | 23,962.9 | $ | 23,566.3 | ||||||||||
| LIABILITIES AND SHAREOWNERS’ EQUITY | ||||||||||||||
| Short-term borrowings | $ | 2.6 | $ | 1.5 | ||||||||||
| Accounts payable | 2,998.7 | 2,446.4 | ||||||||||||
| Accrued expenses | 2,401.2 | 2,110.4 | ||||||||||||
| Total current liabilities | 5,402.5 | 4,558.3 | ||||||||||||
| Long-term debt | 4,246.2 | 4,245.4 | ||||||||||||
| Other long-term liabilities | 3,228.2 | 3,696.2 | ||||||||||||
| Stanley Black & Decker, Inc. shareowners’ equity | 11,084.0 | 11,059.6 | ||||||||||||
| Non-controlling interests’ equity | 2.0 | 6.8 | ||||||||||||
| Total liabilities and shareowners' equity | $ | 23,962.9 | $ | 23,566.3 | ||||||||||
9
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
SUMMARY OF CASH FLOW ACTIVITY
(Unaudited, Millions of Dollars)
| Second Quarter | Year-to-Date | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
| OPERATING ACTIVITIES | ||||||||||||||||||||||||||
| Net earnings | $ | 458.5 | $ | 238.7 | $ | 945.3 | $ | 371.8 | ||||||||||||||||||
| Depreciation and amortization | 142.4 | 144.7 | 286.4 | 285.8 | ||||||||||||||||||||||
| Loss on sales of businesses | 2.6 | — | 3.6 | — | ||||||||||||||||||||||
| Share of net earnings of equity method investment | (4.4) | (10.3) | (6.2) | (10.1) | ||||||||||||||||||||||
Changes in working capital1 | (196.4) | (206.4) | (916.8) | (719.1) | ||||||||||||||||||||||
| Other | 41.7 | 161.5 | (25.7) | (5.4) | ||||||||||||||||||||||
| Net cash provided by (used in) operating activities | 444.4 | 328.2 | 286.6 | (77.0) | ||||||||||||||||||||||
| INVESTING AND FINANCING ACTIVITIES | ||||||||||||||||||||||||||
| Capital and software expenditures | (105.1) | (64.5) | (193.4) | (147.4) | ||||||||||||||||||||||
| Business acquisitions, net of cash acquired | (1.3) | 0.4 | (1.5) | (1,302.0) | ||||||||||||||||||||||
| Purchases of investments | (4.0) | (7.1) | (11.0) | (13.6) | ||||||||||||||||||||||
| Net investment hedge settlements | — | 16.6 | (52.6) | 41.0 | ||||||||||||||||||||||
| Proceeds from debt issuance, net of fees | — | (3.8) | — | 1,482.6 | ||||||||||||||||||||||
| Stock purchase contract fees | (9.8) | (20.0) | (19.6) | (40.1) | ||||||||||||||||||||||
| Net short-term borrowings (repayments) | 1.8 | (980.8) | 1.1 | 371.1 | ||||||||||||||||||||||
| Proceeds from issuances of common stock | 36.3 | 756.7 | 100.4 | 801.3 | ||||||||||||||||||||||
| Purchases of common stock for treasury | (2.4) | (0.3) | (17.3) | (9.3) | ||||||||||||||||||||||
| Redemption and conversion of preferred stock | (750.0) | — | (750.0) | — | ||||||||||||||||||||||
| Craftsman deferred purchase price | — | — | — | (250.0) | ||||||||||||||||||||||
| Craftsman contingent consideration | (6.9) | (33.0) | (13.9) | (33.0) | ||||||||||||||||||||||
| Termination of forward starting interest rate swaps | — | — | — | (20.5) | ||||||||||||||||||||||
| Cash dividends on common stock | (111.6) | (105.8) | (221.7) | (211.4) | ||||||||||||||||||||||
| Cash dividends on preferred stock | (9.5) | — | (18.9) | — | ||||||||||||||||||||||
| Effect of exchange rate changes on cash | 8.5 | (1.6) | (30.4) | (24.2) | ||||||||||||||||||||||
| Other | 0.4 | (6.7) | (6.6) | (5.5) | ||||||||||||||||||||||
| Net cash (used in) provided by investing and financing activities | (953.6) | (449.9) | (1,235.4) | 639.0 | ||||||||||||||||||||||
| (Decrease) increase in cash, cash equivalents and restricted cash | (509.2) | (121.7) | (948.8) | 562.0 | ||||||||||||||||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 958.7 | 998.3 | 1,398.3 | 314.6 | ||||||||||||||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 449.5 | $ | 876.6 | $ | 449.5 | $ | 876.6 | ||||||||||||||||||
Free Cash Flow Computation2 | ||||||||||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 444.4 | $ | 328.2 | $ | 286.6 | $ | (77.0) | ||||||||||||||||||
| Less: capital and software expenditures | (105.1) | (64.5) | (193.4) | (147.4) | ||||||||||||||||||||||
| Free cash flow (before dividends) | $ | 339.3 | $ | 263.7 | $ | 93.2 | $ | (224.4) | ||||||||||||||||||
| Reconciliation of Cash, Cash Equivalents and Restricted Cash | ||||||||||||||||||||||||||
| July 3, 2021 | January 2, 2021 | |||||||||||||||||||||||||
| Cash and cash equivalents | $ | 440.4 | $ | 1,381.0 | ||||||||||||||||||||||
| Restricted cash included in Other current assets | 9.1 | 17.3 | ||||||||||||||||||||||||
| Cash, cash equivalents and restricted cash | $ | 449.5 | $ | 1,398.3 | ||||||||||||||||||||||
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, and is useful information for investors. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common and preferred stock and business acquisitions, among other items. | |||||||||||||||||||||||||
10
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(Unaudited, Millions of Dollars)
| Second Quarter | Year-to-Date | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| NET SALES | |||||||||||||||||||||||
| Tools & Storage | $ | 3,196.5 | $ | 2,197.2 | $ | 6,259.4 | $ | 4,268.0 | |||||||||||||||
| Industrial | 602.2 | 517.5 | 1,259.9 | 1,108.2 | |||||||||||||||||||
| Security | 502.2 | 432.7 | 978.7 | 900.6 | |||||||||||||||||||
| Total | $ | 4,300.9 | $ | 3,147.4 | $ | 8,498.0 | $ | 6,276.8 | |||||||||||||||
| SEGMENT PROFIT | |||||||||||||||||||||||
| Tools & Storage | $ | 635.1 | $ | 345.1 | $ | 1,286.4 | $ | 579.9 | |||||||||||||||
| Industrial | 62.4 | 5.1 | 163.6 | 72.9 | |||||||||||||||||||
| Security | 36.9 | 9.2 | 71.5 | 30.1 | |||||||||||||||||||
| Segment Profit | 734.4 | 359.4 | 1,521.5 | 682.9 | |||||||||||||||||||
| Corporate Overhead | (92.4) | (78.7) | (168.1) | (127.6) | |||||||||||||||||||
| Total | $ | 642.0 | $ | 280.7 | $ | 1,353.4 | $ | 555.3 | |||||||||||||||
| Segment Profit as a Percentage of Net Sales | |||||||||||||||||||||||
| Tools & Storage | 19.9 | % | 15.7 | % | 20.6 | % | 13.6 | % | |||||||||||||||
| Industrial | 10.4 | % | 1.0 | % | 13.0 | % | 6.6 | % | |||||||||||||||
| Security | 7.3 | % | 2.1 | % | 7.3 | % | 3.3 | % | |||||||||||||||
| Segment Profit | 17.1 | % | 11.4 | % | 17.9 | % | 10.9 | % | |||||||||||||||
| Corporate Overhead | (2.1) | % | (2.5) | % | (2.0) | % | (2.0) | % | |||||||||||||||
| Total | 14.9 | % | 8.9 | % | 15.9 | % | 8.8 | % | |||||||||||||||
11
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)
| Second Quarter 2021 | |||||||||||||||||||||||
| Reported | Acquisition- Related Charges & Other1 | Normalized3 | |||||||||||||||||||||
| Gross profit | $ | 1,543.6 | $ | 2.1 | $ | 1,545.7 | |||||||||||||||||
| % of Net Sales | 35.9 | % | 35.9 | % | |||||||||||||||||||
| Selling, general and administrative | 901.6 | (23.6) | 878.0 | ||||||||||||||||||||
| % of Net Sales | 21.0 | % | 20.4 | % | |||||||||||||||||||
| Operating profit | 642.0 | 25.7 | 667.7 | ||||||||||||||||||||
| % of Net Sales | 14.9 | % | 15.5 | % | |||||||||||||||||||
| Earnings before income taxes and equity interest | 527.8 | 42.9 | 570.7 | ||||||||||||||||||||
| Income taxes | 73.7 | 10.8 | 84.5 | ||||||||||||||||||||
| Share of net earnings of equity method investment | 4.4 | 11.0 | 15.4 | ||||||||||||||||||||
| Net earnings attributable to common shareowners | 454.7 | 43.1 | 497.8 | ||||||||||||||||||||
| Diluted earnings per share of common stock | $ | 2.81 | $ | 0.27 | $ | 3.08 | |||||||||||||||||
1 | Acquisition-related and other charges relate primarily to functional transformation initiatives, facility-related costs and restructuring. | ||||||||||||||||||||||
| Second Quarter 2020 | |||||||||||||||||||||||
| Reported | Acquisition- Related Charges & Other2 | Normalized3 | |||||||||||||||||||||
| Gross profit | $ | 1,012.7 | $ | 42.6 | $ | 1,055.3 | |||||||||||||||||
| % of Net Sales | 32.2 | % | 33.5 | % | |||||||||||||||||||
| Selling, general and administrative | 732.0 | (79.2) | 652.8 | ||||||||||||||||||||
| % of Net Sales | 23.3 | % | 20.7 | % | |||||||||||||||||||
| Operating profit | 280.7 | 121.8 | 402.5 | ||||||||||||||||||||
| % of Net Sales | 8.9 | % | 12.8 | % | |||||||||||||||||||
| Earnings before income taxes and equity interest | 111.1 | 169.5 | 280.6 | ||||||||||||||||||||
| Income taxes | (117.3) | 159.4 | 42.1 | ||||||||||||||||||||
| Share of net earnings of equity method investment | 10.3 | 3.2 | 13.5 | ||||||||||||||||||||
| Net earnings attributable to common shareowners | 233.7 | 13.3 | 247.0 | ||||||||||||||||||||
| Diluted earnings per share of common stock | $ | 1.52 | $ | 0.08 | $ | 1.60 | |||||||||||||||||
2 | Acquisition-related charges and other relate primarily to a cost reduction program, inventory step-up charges, Security business transformation and margin resiliency initiatives, and a one-time tax benefit related to a supply chain reorganization. | ||||||||||||||||||||||
3 | The normalized 2021 and 2020 information, as reconciled to GAAP above, is considered relevant to aid analysis of the Company’s profit and earnings results aside from the material impact of the acquisition-related charges and other items. | ||||||||||||||||||||||
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)
| Year-to-Date 2021 | |||||||||||||||||||||||
| Reported | Acquisition- Related Charges & Other1 | Normalized3 | |||||||||||||||||||||
| Gross profit | $ | 3,107.9 | $ | 7.3 | $ | 3,115.2 | |||||||||||||||||
| % of Net Sales | 36.6 | % | 36.7 | % | |||||||||||||||||||
| Selling, general and administrative | 1,754.5 | (43.6) | 1,710.9 | ||||||||||||||||||||
| % of Net Sales | 20.6 | % | 20.1 | % | |||||||||||||||||||
| Operating profit | 1,353.4 | 50.9 | 1,404.3 | ||||||||||||||||||||
| % of Net Sales | 15.9 | % | 16.5 | % | |||||||||||||||||||
| Earnings before income taxes and equity interest | 1,132.3 | 72.9 | 1,205.2 | ||||||||||||||||||||
| Income taxes | 193.2 | 18.2 | 211.4 | ||||||||||||||||||||
| Share of net earnings of equity method investment | 6.2 | 11.2 | 17.4 | ||||||||||||||||||||
| Net earnings attributable to common shareowners | 932.7 | 65.9 | 998.6 | ||||||||||||||||||||
| Diluted earnings per share of common stock | $ | 5.80 | $ | 0.41 | $ | 6.21 | |||||||||||||||||
1 | Acquisition-related and other charges relate primarily to functional transformation initiatives, facility-related costs and restructuring. | ||||||||||||||||||||||
| Year-to-Date 2020 | |||||||||||||||||||||||
| Reported | Acquisition- Related Charges & Other2 | Normalized3 | |||||||||||||||||||||
| Gross profit | $ | 2,035.8 | $ | 51.7 | $ | 2,087.5 | |||||||||||||||||
| % of Net Sales | 32.4 | % | 33.3 | % | |||||||||||||||||||
| Selling, general and administrative | 1,480.5 | (109.0) | 1,371.5 | ||||||||||||||||||||
| % of Net Sales | 23.6 | % | 21.9 | % | |||||||||||||||||||
| Operating profit | 555.3 | 160.7 | 716.0 | ||||||||||||||||||||
| % of Net Sales | 8.8 | % | 11.4 | % | |||||||||||||||||||
| Earnings before income taxes and equity interest | 257.3 | 231.2 | 488.5 | ||||||||||||||||||||
| Income taxes | (104.4) | 172.5 | 68.1 | ||||||||||||||||||||
| Share of net earnings of equity method investment | 10.1 | 4.2 | 14.3 | ||||||||||||||||||||
| Net earnings attributable to common shareowners | 366.9 | 62.9 | 429.8 | ||||||||||||||||||||
| Diluted earnings per share of common stock | $ | 2.39 | $ | 0.41 | $ | 2.80 | |||||||||||||||||
2 | Acquisition-related charges and other relate primarily to a cost reduction program, inventory step-up charges, deal costs, Security business transformation and margin resiliency initiatives, and a one-time tax benefit related to a supply chain reorganization. | ||||||||||||||||||||||
3 | The normalized 2021 and 2020 information, as reconciled to GAAP above, is considered relevant to aid analysis of the Company’s profit and earnings results aside from the material impact of the acquisition-related charges and other items. | ||||||||||||||||||||||
13
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)
| Second Quarter 2021 | |||||||||||||||||||||||
| Reported | Acquisition- Related and Other Charges1 | Normalized3 | |||||||||||||||||||||
| SEGMENT PROFIT | |||||||||||||||||||||||
| Tools & Storage | $ | 635.1 | $ | 9.2 | $ | 644.3 | |||||||||||||||||
| Industrial | 62.4 | 3.0 | 65.4 | ||||||||||||||||||||
| Security | 36.9 | 6.0 | 42.9 | ||||||||||||||||||||
| Segment Profit | 734.4 | 18.2 | 752.6 | ||||||||||||||||||||
| Corporate Overhead | (92.4) | 7.5 | (84.9) | ||||||||||||||||||||
| Total | $ | 642.0 | $ | 25.7 | $ | 667.7 | |||||||||||||||||
| Segment Profit as a Percentage of Net Sales | |||||||||||||||||||||||
| Tools & Storage | 19.9 | % | 20.2 | % | |||||||||||||||||||
| Industrial | 10.4 | % | 10.9 | % | |||||||||||||||||||
| Security | 7.3 | % | 8.5 | % | |||||||||||||||||||
| Segment Profit | 17.1 | % | 17.5 | % | |||||||||||||||||||
| Corporate Overhead | (2.1) | % | (2.0) | % | |||||||||||||||||||
| Total | 14.9 | % | 15.5 | % | |||||||||||||||||||
1 | Acquisition-related and other charges relate primarily to functional transformation initiatives and facility-related costs. | ||||||||||||||||||||||
| Second Quarter 2020 | |||||||||||||||||||||||
| Reported | Acquisition- Related and Other Charges2 | Normalized3 | |||||||||||||||||||||
| SEGMENT PROFIT | |||||||||||||||||||||||
| Tools & Storage | $ | 345.1 | $ | 28.4 | $ | 373.5 | |||||||||||||||||
| Industrial | 5.1 | 40.6 | 45.7 | ||||||||||||||||||||
| Security | 9.2 | 32.5 | 41.7 | ||||||||||||||||||||
| Segment Profit | 359.4 | 101.5 | 460.9 | ||||||||||||||||||||
| Corporate Overhead | (78.7) | 20.3 | (58.4) | ||||||||||||||||||||
| Total | $ | 280.7 | $ | 121.8 | $ | 402.5 | |||||||||||||||||
| Segment Profit as a Percentage of Net Sales | |||||||||||||||||||||||
| Tools & Storage | 15.7 | % | 17.0 | % | |||||||||||||||||||
| Industrial | 1.0 | % | 8.8 | % | |||||||||||||||||||
| Security | 2.1 | % | 9.6 | % | |||||||||||||||||||
| Segment Profit | 11.4 | % | 14.6 | % | |||||||||||||||||||
| Corporate Overhead | (2.5) | % | (1.9) | % | |||||||||||||||||||
| Total | 8.9 | % | 12.8 | % | |||||||||||||||||||
2 | Acquisition-related and other charges relate primarily to a cost reduction program, inventory step-up charges, Security business transformation and margin resiliency initiatives. | ||||||||||||||||||||||
3 | The normalized 2021 and 2020 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. | ||||||||||||||||||||||
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)
| Year-to-Date 2021 | |||||||||||||||||||||||
| Reported | Acquisition- Related and Other Charges1 | Normalized3 | |||||||||||||||||||||
| SEGMENT PROFIT | |||||||||||||||||||||||
| Tools & Storage | $ | 1,286.4 | $ | 13.4 | $ | 1,299.8 | |||||||||||||||||
| Industrial | 163.6 | 6.6 | 170.2 | ||||||||||||||||||||
| Security | 71.5 | 11.8 | 83.3 | ||||||||||||||||||||
| Segment Profit | 1,521.5 | 31.8 | 1,553.3 | ||||||||||||||||||||
| Corporate Overhead | (168.1) | 19.1 | (149.0) | ||||||||||||||||||||
| Total | $ | 1,353.4 | $ | 50.9 | $ | 1,404.3 | |||||||||||||||||
| Segment Profit as a Percentage of Net Sales | |||||||||||||||||||||||
| Tools & Storage | 20.6 | % | 20.8 | % | |||||||||||||||||||
| Industrial | 13.0 | % | 13.5 | % | |||||||||||||||||||
| Security | 7.3 | % | 8.5 | % | |||||||||||||||||||
| Segment Profit | 17.9 | % | 18.3 | % | |||||||||||||||||||
| Corporate Overhead | (2.0) | % | (1.8) | % | |||||||||||||||||||
| Total | 15.9 | % | 16.5 | % | |||||||||||||||||||
1 | Acquisition-related and other charges relate primarily to functional transformation initiatives and facility-related costs. | ||||||||||||||||||||||
| Year-to-Date 2020 | |||||||||||||||||||||||
| Reported | Acquisition- Related and Other Charges2 | Normalized3 | |||||||||||||||||||||
| SEGMENT PROFIT | |||||||||||||||||||||||
| Tools & Storage | $ | 579.9 | $ | 31.5 | $ | 611.4 | |||||||||||||||||
| Industrial | 72.9 | 51.0 | 123.9 | ||||||||||||||||||||
| Security | 30.1 | 46.4 | 76.5 | ||||||||||||||||||||
| Segment Profit | 682.9 | 128.9 | 811.8 | ||||||||||||||||||||
| Corporate Overhead | (127.6) | 31.8 | (95.8) | ||||||||||||||||||||
| Total | $ | 555.3 | $ | 160.7 | $ | 716.0 | |||||||||||||||||
| Segment Profit as a Percentage of Net Sales | |||||||||||||||||||||||
| Tools & Storage | 13.6 | % | 14.3 | % | |||||||||||||||||||
| Industrial | 6.6 | % | 11.2 | % | |||||||||||||||||||
| Security | 3.3 | % | 8.5 | % | |||||||||||||||||||
| Segment Profit | 10.9 | % | 12.9 | % | |||||||||||||||||||
| Corporate Overhead | (2.0) | % | (1.5) | % | |||||||||||||||||||
| Total | 8.8 | % | 11.4 | % | |||||||||||||||||||
2 | Acquisition-related and other charges relate primarily to a cost reduction program, inventory step-up charges, Security business transformation and margin resiliency initiatives. | ||||||||||||||||||||||
3 | The normalized 2021 and 2020 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. | ||||||||||||||||||||||
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