þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Connecticut | 06-0548860 | |
(State Or Other Jurisdiction Of Incorporation Or Organization) | (I.R.S. Employer Identification Number) | |
1000 Stanley Drive New Britain, Connecticut | 06053 | |
(Address Of Principal Executive Offices) | (Zip Code) |
Title Of Each Class | Name Of Each Exchange On Which Registered | |
Common Stock-$2.50 Par Value per Share | New York Stock Exchange |
Large accelerated filer | þ | Accelerated filer | ¨ | |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ | |
Emerging growth company | ¨ |
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ITEM 16. | |||
SIGNATURES | |||
EX-10.16.b | |||
EX-10.25 | |||
EX-10.26 | |||
EX-12 | |||
EX-21 | |||
EX-23 | |||
EX-24 | |||
EX-31.1.a | |||
EX-31.1.b | |||
EX-32.1 | |||
EX-32.2 |
• | the difficulty of enforcing agreements and protecting assets through legal systems outside the U.S.; |
• | managing widespread operations and enforcing internal policies and procedures such as compliance with U.S. and foreign anti-bribery and anti-corruption regulations; |
• | trade protection measures and import or export licensing requirements; |
• | the application of certain labor regulations outside of the United States, including data privacy; |
• | compliance with a wide variety of non-U.S. laws and regulations; |
• | changes in the general political and economic conditions in the countries where the Company operates, particularly in emerging markets; |
• | the threat of nationalization and expropriation; |
• | increased costs and risks of doing business in a wide variety of jurisdictions; |
• | government controls limiting importation of goods; |
• | government controls limiting payments to suppliers for imported goods; |
• | limitations on repatriation of earnings; and |
• | exposure to wage, price and capital controls. |
• | depressed consumer and business confidence may decrease demand for products and services; |
• | customers may implement cost-reduction initiatives or delay purchases to address inventory levels; |
• | significant declines of foreign currency values in countries where the Company operates could impact both the revenue growth and overall profitability in those geographies; |
• | a slowing or contracting Chinese economy could reduce China’s consumption and negatively impact the Company’s sales in that region, as well as globally; |
• | a devaluation of foreign currencies could have an effect on the credit worthiness (as well as the availability of funds) of customers in those regions impacting the collectability of receivables; |
• | a devaluation of foreign currencies could have an adverse effect on the value of financial assets of the Company in the effected countries; |
• | the impact of an event (individual country default, Brexit, or break up of the Euro) could have an adverse impact on the global credit markets and global liquidity potentially impacting the Company’s ability to access these credit markets and to raise capital. |
• | a limitation on creating liens on certain property of the Company and its subsidiaries; |
• | a restriction on entering into certain sale-leaseback transactions; |
• | customary events of default. If an event of default occurs and is continuing, the Company might be required to repay all amounts outstanding under the respective instrument or agreement; and |
• | maintenance of a specified financial ratio. The Company has an interest coverage covenant that must be maintained to permit continued access to its committed revolving credit facilities. The interest coverage ratio tested for covenant compliance compares adjusted Earnings Before Interest, Taxes, Depreciation and Amortization to adjusted Interest Expense (“adjusted EBITDA”/”adjusted Interest Expense”); such adjustments to interest or EBITDA include, but are not limited to, removal of non-cash interest expense and stock-based compensation expense. The interest coverage ratio must not be less than 3.5 times and is computed quarterly, on a rolling twelve months (last twelve months) basis. Under this covenant definition, the interest coverage ratio was 10 times EBITDA or higher in each of the 2017 quarterly measurement periods. Management does not believe it is reasonably likely the Company will breach this covenant. Failure to maintain this ratio could adversely affect further access to liquidity. |
• | the failure to identify the most suitable candidates for acquisitions; |
• | the ability to identify and close on appropriate acquisition opportunities within desired time frames at reasonable cost; |
• | the anticipated additional revenues from the acquired companies do not materialize, despite extensive due diligence; |
• | the possibility that the acquired companies will not be successfully integrated or that anticipated cost savings, synergies, or other benefits will not be realized; |
• | the acquired businesses will lose market acceptance or profitability; |
• | the diversion of Company management’s attention and other resources; |
• | the incurrence of unexpected costs and liabilities, including those associated with undisclosed pre-closing regulatory violations by the acquired business; and |
• | the loss of key personnel and clients or customers of acquired companies. |
• | combine businesses and operations; |
• | integrate departments, systems and procedures; and |
• | obtain cost savings and other efficiencies from such reorganizations, including the Company's functional transformation initiative. |
Owned | Leased | Total | |||
Tools & Storage | 42 | 16 | 58 | ||
Industrial | 13 | 5 | 18 | ||
Security | 2 | 2 | 4 | ||
Corporate | 2 | 2 | 4 | ||
Total | 59 | 25 | 84 |
2017 | 2016 | |||||||||||||||||||||||
High | Low | Dividend Per Common Share | High | Low | Dividend Per Common Share | |||||||||||||||||||
QUARTER: | ||||||||||||||||||||||||
First | $ | 132.87 | $ | 115.75 | $ | 0.58 | $ | 106.64 | $ | 90.14 | $ | 0.55 | ||||||||||||
Second | $ | 143.05 | $ | 130.57 | $ | 0.58 | $ | 115.05 | $ | 104.24 | $ | 0.55 | ||||||||||||
Third | $ | 152.30 | $ | 137.07 | $ | 0.63 | $ | 124.46 | $ | 111.40 | $ | 0.58 | ||||||||||||
Fourth | $ | 170.03 | $ | 154.53 | $ | 0.63 | $ | 125.78 | $ | 113.49 | $ | 0.58 | ||||||||||||
Total | $ | 2.42 | $ | 2.26 |
2017 | (a) Total Number Of Shares Purchased | Average Price Paid Per Share | Total Number Of Shares Purchased As Part Of A Publicly Announced Plan or Program | (b) Maximum Number Of Shares That May Yet Be Purchased Under The Program | |||||||||
October 1 - November 4 | 2,943 | $ | 160.34 | — | 15,000,000 | ||||||||
November 5 - December 2 | 18,516 | $ | 168.24 | — | 15,000,000 | ||||||||
December 3 - December 30 | 52,653 | $ | 169.58 | — | 15,000,000 | ||||||||
Total | 74,112 | $ | 168.88 | — | 15,000,000 |
(a) | The shares of common stock in this column were deemed surrendered to the Company by participants in various benefit plans of the Company to satisfy the participants’ taxes related to vesting or delivery of time-vesting restricted share units under those plans. |
(b) | On July 20, 2017, the Board of Directors approved a new repurchase program for up to 15.0 million shares of the Company’s common stock and terminated its previously approved repurchase program. As of December 30, 2017, the authorized shares available for repurchase under the new repurchase program totaled 15.0 million shares. The currently authorized shares available for repurchase do not include approximately 3.6 million shares reserved and authorized for purchase under the Company’s previously approved repurchase program relating to a forward share purchase contract entered into in March 2015. Refer to Note J, Capital Stock, of the Notes to Consolidated Financial Statements in Item 8 for further discussion. |
THE POINTS IN THE ABOVE TABLE ARE AS FOLLOWS: | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||||
Stanley Black & Decker | $ | 100.00 | $ | 115.20 | $ | 139.71 | $ | 155.80 | $ | 173.88 | $ | 261.65 | |||||||||||
S&P 500 | $ | 100.00 | $ | 134.09 | $ | 153.00 | $ | 152.80 | $ | 173.68 | $ | 211.58 | |||||||||||
S&P 500 Industrials | $ | 100.00 | $ | 142.63 | $ | 157.09 | $ | 151.13 | $ | 182.19 | $ | 220.47 |
(Millions of Dollars, Except Per Share Amounts) | 2017 (a) | 2016 | 2015 | 2014 (b) | 2013 (c) | |||||||||||||||
Net sales | $ | 12,747 | $ | 11,407 | $ | 11,172 | $ | 11,339 | $ | 10,890 | ||||||||||
Net earnings from continuing operations attributable to common shareowners | $ | 1,226 | $ | 965 | $ | 904 | $ | 857 | $ | 520 | ||||||||||
Net loss from discontinued operations(d) | $ | — | $ | — | $ | (20 | ) | $ | (96 | ) | $ | (30 | ) | |||||||
Net Earnings Attributable to Common Shareowners | $ | 1,226 | $ | 965 | $ | 884 | $ | 761 | $ | 490 | ||||||||||
Basic earnings (loss) per share: | ||||||||||||||||||||
Continuing operations | $ | 8.19 | $ | 6.61 | $ | 6.10 | $ | 5.49 | $ | 3.35 | ||||||||||
Discontinued operations(d) | $ | — | $ | — | $ | (0.14 | ) | $ | (0.62 | ) | $ | (0.19 | ) | |||||||
Total basic earnings per share | $ | 8.19 | $ | 6.61 | $ | 5.96 | $ | 4.87 | $ | 3.16 | ||||||||||
Diluted earnings (loss) per share: | ||||||||||||||||||||
Continuing operations | $ | 8.04 | $ | 6.51 | $ | 5.92 | $ | 5.37 | $ | 3.28 | ||||||||||
Discontinued operations(d) | $ | — | $ | — | $ | (0.13 | ) | $ | (0.60 | ) | $ | (0.19 | ) | |||||||
Total diluted earnings per share | $ | 8.04 | $ | 6.51 | $ | 5.79 | $ | 4.76 | $ | 3.09 | ||||||||||
Percent of net sales (Continuing operations): | ||||||||||||||||||||
Cost of sales | 62.5 | % | 62.6 | % | 63.6 | % | 63.8 | % | 64.2 | % | ||||||||||
Selling, general and administrative(e) | 23.4 | % | 23.0 | % | 22.3 | % | 22.9 | % | 24.7 | % | ||||||||||
Other, net | 2.3 | % | 1.7 | % | 2.0 | % | 2.1 | % | 2.6 | % | ||||||||||
Restructuring charges and asset impairments | 0.4 | % | 0.4 | % | 0.4 | % | 0.2 | % | 1.6 | % | ||||||||||
Interest, net | 1.4 | % | 1.5 | % | 1.5 | % | 1.4 | % | 1.4 | % | ||||||||||
Earnings before income taxes | 12.0 | % | 10.7 | % | 10.3 | % | 9.6 | % | 5.4 | % | ||||||||||
Net earnings from continuing operations attributable to common shareowners | 9.6 | % | 8.5 | % | 8.1 | % | 7.6 | % | 4.8 | % | ||||||||||
Balance sheet data: | ||||||||||||||||||||
Total assets(f) | $ | 19,080 | $ | 15,635 | $ | 15,128 | $ | 15,803 | $ | 16,486 | ||||||||||
Long-term debt, including current maturities(f) | $ | 3,826 | $ | 3,815 | $ | 3,797 | $ | 3,800 | $ | 3,760 | ||||||||||
Stanley Black & Decker, Inc.’s shareowners’ equity | $ | 8,297 | $ | 6,367 | $ | 5,812 | $ | 6,429 | $ | 6,799 | ||||||||||
Ratios: | ||||||||||||||||||||
Total debt to total capital | 31.6 | % | 37.5 | % | 39.5 | % | 37.2 | % | 37.9 | % | ||||||||||
Income tax rate - continuing operations | 19.7 | % | 21.3 | % | 21.6 | % | 20.9 | % | 11.7 | % | ||||||||||
Common stock data: | ||||||||||||||||||||
Dividends per share | $ | 2.42 | $ | 2.26 | $ | 2.14 | $ | 2.04 | $ | 1.98 | ||||||||||
Equity per basic share at year-end | $ | 55.17 | $ | 42.76 | $ | 39.08 | $ | 41.34 | $ | 43.73 | ||||||||||
Market price per share — high | $ | 170.03 | $ | 125.78 | $ | 110.17 | $ | 97.36 | $ | 92.36 | ||||||||||
Market price per share — low | $ | 115.75 | $ | 90.14 | $ | 90.51 | $ | 75.64 | $ | 73.97 | ||||||||||
Weighted-average shares outstanding (in 000’s): | ||||||||||||||||||||
Basic | 149,629 | 146,041 | 148,234 | 156,090 | 155,237 | |||||||||||||||
Diluted | 152,449 | 148,207 | 152,706 | 159,737 | 158,776 | |||||||||||||||
Other information: | ||||||||||||||||||||
Average number of employees | 57,076 | 53,231 | 51,815 | 50,375 | 49,445 | |||||||||||||||
Shareowners of record at end of year | 10,014 | 10,313 | 10,603 | 10,932 | 11,235 |
(a) | The Company's 2017 results include $156 million of pre-tax acquisition-related charges and a $264 million pre-tax gain on sales of businesses, primarily related to the divestiture of the mechanical security businesses. As a result, as a percentage of Net sales, Cost of sales was 37 basis points higher, Selling, general, & administrative was 30 basis points higher, Other, net was 46 basis points higher, Restructuring charges and asset impairments was 11 basis points higher, and Earnings before income taxes was 85 basis points higher. The net tax benefit of the acquisition-related charges and gain on sales of businesses was $7 million. Income taxes on continuing operations for 2017 also includes |
(b) | The Company's 2014 results include $54 million of pre-tax charges related to merger and acquisition-related charges. As a result of these charges, net earnings attributable to common shareowners were reduced by $49 million (or $0.30 per diluted share). As a percentage of Net sales, Cost of sales was 2 basis points higher, Selling, general & administrative was 28 basis points higher, Other-net was 2 basis points higher, Earnings before income taxes was 48 basis points lower, and Net earnings attributable to common shareowners was 43 basis points lower. The Income tax rate - continuing operations ratio was 53 basis points higher. |
(c) | The Company's 2013 results include $390 million of pre-tax charges related to merger and acquisition-related charges, as well as the charges associated with the extinguishment of debt during the fourth quarter of 2013. As a result of these charges, net earnings attributable to common shareowners were reduced by $270 million (or $1.70 per diluted share). As a percentage of Net sales, Cost of sales was 27 basis points higher, Selling, general & administrative was 125 basis points higher, Other, net was 47 basis points higher, Earnings before income taxes was 358 basis points lower, and Net earnings attributable to common shareowners was 248 basis points lower. The Income tax rate - continuing operations ratio was 761 basis points lower. |
(d) | Discontinued operations in 2015 reflects a $20 million loss, or $0.13 per diluted share, primarily related to operating losses associated with the Security segment’s Spain and Italy operations (“Security Spain and Italy”), which were classified as held for sale in the fourth quarter of 2014 and subsequently sold in 2015. Amounts in 2014 reflect a $96 million loss, or $0.60 per diluted share, associated with Security Spain and Italy as well as two small businesses that were divested in 2014. Amounts in 2013 reflect a $30 million loss, or $0.19 per diluted share, associated with Security Spain and Italy, Hardware & Home Improvement business ("HHI"), and two small businesses that were divested in 2014. Refer to Note T, Divestitures, of the Notes to Consolidated Financial Statements in Item 8 for further discussion of the Company's divestitures. |
(e) | SG&A is inclusive of the Provision for Doubtful Accounts. |
(f) | In the first quarter of 2016, the Company adopted ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 requires debt issuance costs related to recognized debt liabilities to be presented in the balance sheet as a direct reduction from the debt liability rather than an asset. Accordingly, amounts reported in prior years have been reclassified to conform to the new presentation. |
• | Continue organic growth momentum by utilizing the SFS 2.0 operating system, diversifying toward higher-growth, higher-margin businesses, and increasing the relative weighting of emerging markets; |
• | Be selective and operate in markets where brand is meaningful, the value proposition is definable and sustainable through innovation and global cost leadership is achievable; and |
• | Pursue acquisitive growth on multiple fronts by building upon its existing global tools platform, expanding the Industrial platform in Engineered Fastening and Infrastructure, consolidating the commercial electronic security industry and pursuing adjacencies with sound industrial logic. |
• | 4-6% organic revenue growth; |
• | 10-12% total revenue growth; |
• | 10-12% total EPS growth (7-9% organically) excluding acquisition-related charges; |
• | Free cash flow equal to, or exceeding, net income; and |
• | Sustain 10+ working capital turns. |
• | $47 million reducing Gross Profit primarily pertaining to amortization of the inventory step-up adjustment for the Newell Tools acquisition; |
• | $38 million in SG&A primarily for integration-related costs and consulting fees; |
• | $58 million in Other, net primarily for deal transaction and consulting costs; and |
• | $13 million in Restructuring charges pertaining to facility closures and employee severance. |
• | The Tools & Storage business is the tool company to own, with strong brands, proven innovation, global scale, and a broad offering of power tools, hand tools, accessories, and storage & digital products across many channels in both developed and developing markets. |
• | The Engineered Fastening business is a highly profitable, GDP+ growth business offering highly engineered, value-added innovative solutions with recurring revenue attributes and global scale. |
• | The Security business, with its attractive recurring revenue, presents a significant margin accretion opportunity over the longer term and has historically provided a stable revenue stream through economic cycles, is a gateway into the digital world and an avenue to capitalize on rapid digital changes. |
• | Digital Excellence uses the power of digital to contemporize, be disruptive, and create value throughout the Company's array of products, processes and business models. Digital Excellence means leveraging the power of emerging technologies across the Company's businesses to connected devices, the Internet of Things ("IoT"), and big data, as well as social and mobile, even more than what is being done today. Digital is penetrating all aspects of the organization and feeds into and supports the other elements of SFS 2.0 - enabling better asset efficiency through Core SFS, greater cost effectiveness via the Company's support functions, and improving revenues and margins via customer-facing opportunities. |
• | Commercial Excellence is about how the Company becomes more effective and efficient in its customer-facing processes resulting in continued share gains and margin expansion throughout its businesses. The Company views Commercial Excellence as world-class execution across seven areas: customer insights, innovation and portfolio management, pricing and promotion, brand and marketing, sales force deployment and effectiveness, channel programs, and the customer experience. |
• | Breakthrough Innovation is aimed at developing a culture to identify and commercialize market disrupting innovations, each with revenue generation potential greater than $100 million annually. The Company's focus remains on utilizing technologies to come up with major breakthroughs in the industries in which the Company operates which, when combined with its existing strong core innovation machine, will drive outsized share gains and margin expansion. |
• | Core SFS / Industry 4.0, which targets cost and asset efficiency, remains as the foundation for the Company's operating system and has yielded significant advances in improving working capital turns and free cash flow generation. The five operating principles encompassed by Core SFS, which work in concert, include: sales and operations planning ("S&OP"), operational lean, complexity reduction, global supply management, and order-to-cash excellence. The Company plans to continue leveraging these principles to further enhance the Company's already strong asset efficiency performance. Additionally, the Company is making investments behind the adoption of Industry 4.0 and advancing the Company's capabilities surrounding the automation of manufacturing that includes IoT, cloud computing, Artificial Intelligence ("AI"), 3-D printing, robotics, and advanced materials, among others. |
• | Functional Transformation takes a clean-sheet approach to redesigning the Company's key support functions such as Finance, HR, IT and others, which although highly effective, after roughly a hundred acquisitions are not as efficient as they can be based on external benchmarks. This presents the Company with an opportunity to realize the benefits from scale, reduce its SG&A as a percent of sales, and become a cost effectiveness enabler with the side benefit of helping to fund the other aspects of SFS 2.0 and to support margin expansion. |
(Millions of Dollars) | 2017 | 2016 | 2015 | ||||||||
Net sales | $ | 8,862 | $ | 7,469 | $ | 7,141 | |||||
Segment profit | $ | 1,450 | $ | 1,267 | $ | 1,170 | |||||
% of Net sales | 16.4 | % | 17.0 | % | 16.4 | % |
(Millions of Dollars) | 2017 | 2016 | 2015 | ||||||||
Net sales | $ | 1,946 | $ | 1,840 | $ | 1,938 | |||||
Segment profit | $ | 352 | $ | 304 | $ | 340 | |||||
% of Net sales | 18.1 | % | 16.5 | % | 17.5 | % |
(Millions of Dollars) | 2017 | 2016 | 2015 | ||||||||
Net sales | $ | 1,939 | $ | 2,097 | $ | 2,093 | |||||
Segment profit | $ | 212 | $ | 269 | $ | 240 | |||||
% of Net sales | 11.0 | % | 12.8 | % | 11.4 | % |
(Millions of Dollars) | 12/31/2016 | Net Additions | Usage | Currency | 12/30/2017 | ||||||||||||||
Severance and related costs | $ | 21.4 | $ | 40.6 | $ | (43.8 | ) | $ | 1.8 | $ | 20.0 | ||||||||
Facility closures and asset impairments | 14.2 | 10.9 | (22.1 | ) | 0.2 | 3.2 | |||||||||||||
Total | $ | 35.6 | $ | 51.5 | $ | (65.9 | ) | $ | 2.0 | $ | 23.2 |
(Millions of Dollars) | 2017 | 2016 | 2015 | ||||||||
Net cash provided by operating activities | $ | 1,419 | $ | 1,485 | $ | 1,182 | |||||
Less: capital and software expenditures | (443 | ) | (347 | ) | (311 | ) | |||||
Free cash flow | $ | 976 | $ | 1,138 | $ | 871 |
Payments Due by Period | |||||||||||||||||||
(Millions of Dollars) | Total | 2018 | 2019-2020 | 2021-2022 | Thereafter | ||||||||||||||
Long-term debt (a) | $ | 3,857 | $ | 984 | $ | 13 | $ | 1,160 | $ | 1,700 | |||||||||
Interest payments on long-term debt (b) | 3,078 | 152 | 266 | 248 | 2,412 | ||||||||||||||
Operating leases | 473 | 125 | 166 | 93 | 89 | ||||||||||||||
Inventory purchase commitments (c) | 410 | 410 | — | — | — | ||||||||||||||
Deferred compensation | 26 | 1 | 3 | 1 | 21 | ||||||||||||||
Marketing obligations | 51 | 31 | 20 | — | — | ||||||||||||||
Derivatives (d) | 96 | 91 | 5 | — | — | ||||||||||||||
Forward stock purchase contract (e) | 350 | — | 350 | — | — | ||||||||||||||
Pension funding obligations (f) | 41 | 41 | — | — | — | ||||||||||||||
Contract adjustment fees (g) | 101 | 40 | 61 | — | — | ||||||||||||||
Purchase price (h) | 250 | — | 250 | — | — | ||||||||||||||
U.S. income tax (i) | 466 | 36 | 73 | 73 | 284 | ||||||||||||||
Total contractual cash obligations | $ | 9,199 | $ | 1,911 | $ | 1,207 | $ | 1,575 | $ | 4,506 |
(a) | Future payments on long-term debt encompass all payments related to aggregate debt maturities, excluding certain fair value adjustments included in long-term debt, as discussed further in Note H, Long-Term Debt and Financing Arrangements. |
(b) | Future interest payments on long-term debt reflect the applicable fixed interest rate or variable rate for floating rate debt in effect at December 30, 2017. |
(c) | Inventory purchase commitments primarily consist of open purchase orders to purchase raw materials, components, and sourced products. |
(d) | Future cash flows on derivative instruments reflect the fair value and accrued interest as of December 30, 2017. The ultimate cash flows on these instruments will differ, perhaps significantly, based on applicable market interest and foreign currency rates at their maturity. |
(e) | In March 2015, the Company entered into a forward share purchase contract with a financial institution counterparty which obligates the Company to pay $350 million, plus an additional amount related to the forward component of the contract. In November 2016, the Company amended the final settlement date to April 2019, or earlier at the Company's option. See Note J, Capital Stock, for further discussion. |
(f) | This amount principally represents contributions either required by regulations or laws or, with respect to unfunded plans, necessary to fund current benefits. The Company has not presented estimated pension and post-retirement funding beyond 2018 as funding can vary significantly from year to year based upon changes in the fair value of the plan assets, actuarial assumptions, and curtailment/settlement actions. |
(g) | These amounts represent future contract adjustment payments to holders of the Company's 2020 Purchase Contracts. See Note J, Capital Stock, for further discussion. |
(h) | The Company acquired the Craftsman® brand from Sears Holdings in March 2017. As part of the purchase price, the Company is obligated to pay $250 million in March 2020. See Note E, Acquisitions, for further discussion. |
(i) | Provisional income tax liability for the one-time deemed repatriation tax on unremitted foreign earnings and profits, including foreign withholding taxes of $5 million which will become payable upon distribution. |
Amount of Commitment Expirations Per Period | ||||||||||||||||||||
(Millions of Dollars) | Total | 2018 | 2019-2020 | 2021-2022 | Thereafter | |||||||||||||||
U.S. lines of credit | $ | 3,000 | $ | 1,250 | $ | 1,750 | $ | — | $ | — |
Name and Age | Office | Date Elected to Office | ||
James M. Loree (59) | President & Chief Executive Officer since August 2016. President & Chief Operating Officer (2013); Executive Vice President and Chief Operating Officer (2009); Executive Vice President Finance and Chief Financial Officer (1999). | 7/19/1999 | ||
Donald Allan, Jr. (53) | Executive Vice President & Chief Financial Officer since October 2016. Senior Vice President & Chief Financial Officer (2010); Vice President & Chief Financial Officer (2009); Vice President & Corporate Controller (2002); Corporate Controller (2000); Assistant Controller (1999). | 10/24/2006 | ||
Jeffery D. Ansell (50) | Executive Vice President & President, Tools & Storage since October 2016. Senior Vice President and Group Executive, Global Tools & Storage (2015); Senior Vice President and Group Executive, Construction and DIY (2010). Vice President & President, Stanley Consumer Tools Group; President - Consumer Tools and Storage (2004); President of Industrial Tools & Storage (2002); Vice President - Global Consumer Tools Marketing (2001); Vice President Consumer Sales America (1999). | 2/22/2006 | ||
Jocelyn S. Belisle (55) | Vice President, Chief Accounting Officer since July 2009. | 4/19/2017 | ||
Janet M. Link (48) | Senior Vice President, General Counsel and Secretary since July 17, 2017. Executive Vice President, General Counsel, JC Penney Company, Inc. (2015); Vice President, Deputy General Counsel, JC Penney Company, Inc. (2014); Vice President, Deputy General Counsel, Clear Channel Companies (2013). | 7/19/2017 | ||
Jaime A. Ramirez (50) | Senior Vice President & President, Global Emerging Markets, since October 2012. President, Construction & DIY, Latin America (2010); Vice President and General Manager - Latin America, Power Tools & Accessories, The Black & Decker Corporation (2008); Vice President and General Manager - Andean Region The Black & Decker Corporation (2007). | 3/12/2010 | ||
Joseph R. Voelker (62) | Senior Vice President, Chief Human Resources Officer, since April 1, 2013. VP Human Resources (2009); VP Human Resources - ITG/Corporate Staff (2006); VP Human Resources - Tools Group/Operations (2004); HR Director, Tools Group (2003); HR Director, Operations (1999). | 4/1/2013 | ||
John H. Wyatt (59) | President, Stanley Engineered Fastening since January 2016. President, Sales & Marketing - Global Tools & Storage (2015). President, Construction & DIY, Europe and ANZ (2012). President, Construction & DIY, EMEA (2010); President-Europe, Middle East, and Africa, Power Tools and Accessories, The Black & Decker Corporation (2008); Vice President-Consumer Products (Europe, Middle East and Africa), The Black & Decker Corporation (2006). | 3/12/2010 |
(A) | (B) | (C) | |||||||||
Plan Category | Number of securities to be issued upon exercise of outstanding options and stock awards | Weighted-average exercise price of outstanding options | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (A)) | ||||||||
Equity compensation plans approved by security holders | 8,419,930 | (1) | $ | 102.56 | (2) | 4,272,276 | (3) | ||||
Equity compensation plans not approved by security holders (4) | — | — | — | ||||||||
Total | 8,419,930 | $ | 102.56 | 4,272,276 |
(1) | Consists of 6,561,404 shares underlying outstanding stock options (whether vested or unvested) with a weighted-average exercise price of $102.56 and a weighted-average term of 6.63 years; 1,777,588 shares underlying time-vesting restricted stock units that have not yet vested and the maximum number of shares that will be issued pursuant to outstanding long-term performance awards if all established goals are met; and 80,938 of shares earned but related to which participants elected deferral of delivery. All stock-based compensation plans are discussed in Note J, Capital Stock, of the Notes to Consolidated Financial Statements in Item 8. |
(2) | There is no cost to the recipient for shares issued pursuant to time-vesting restricted stock units or long-term performance awards. Because there is no strike price applicable to these stock awards they are excluded from the weighted-average exercise price which pertains solely to outstanding stock options. |
(3) | Consists of 1,745,939 of shares available for purchase under the employee stock purchase plan ("ESPP") at the election of employees and 2,526,337 securities available for future grants by the board of directors under stock-based compensation plans. |
(4) | U.S. employees are eligible to contribute from 1% to 25% of their salary to a qualified tax deferred savings plan as described in the Employee Stock Ownership Plan ("ESOP") section of Note L, Employee Benefit Plans, of the Notes to the Consolidated Financial Statements in Item 8. The Company contributes an amount equal to one half of the employee contribution up to the first 7% of salary. There is a non-qualified tax deferred savings plan for highly compensated salaried employees which mirrors the qualified plan provisions, but was not specifically approved by security holders. Eligible highly compensated salaried U.S. employees are eligible to contribute from 1% to 50% of their salary to the non-qualified tax deferred savings plan. The same matching arrangement was provided for highly compensated salaried employees in the non-qualified plan, to the extent the match was not fully met in the qualified plan, except that the arrangement for these employees is outside of the ESOP, and is not funded in advance of distributions. For both qualified and non-qualified plans, the investment of the employee’s contribution and the Company’s contribution is controlled by the employee and may include an election to invest in Company stock. Shares of the Company’s common stock may be issued at the time of a distribution from the qualified plan. The number of securities remaining available for issuance under the plans at December 30, 2017 is not determinable, since the plans do not authorize a maximum number of securities. |
Schedule II — Valuation and Qualifying Accounts is included in Item 15 (page 53). |
Management’s Report on Internal Control Over Financial Reporting (page 54). |
Report of Independent Registered Public Accounting Firm — Financial Statement Opinion (page 55). |
Report of Independent Registered Public Accounting Firm — Internal Control Opinion (page 56). |
Consolidated Statements of Operations — fiscal years ended December 30, 2017, December 31, 2016, and January 2, 2016 (page 57). |
Consolidated Statements of Comprehensive Income — fiscal years ended December 30, 2017, December 31, 2016, and January 2, 2016 (page 58). |
Consolidated Balance Sheets — December 30, 2017 and December 31, 2016 (page 59). |
Consolidated Statements of Cash Flows — fiscal years ended December 30, 2017, December 31, 2016, and January 2, 2016 (page 60). |
Consolidated Statements of Changes in Shareowners’ Equity — fiscal years ended December 30, 2017, December 31, 2016, and January 2, 2016 (page 61). |
Notes to Consolidated Financial Statements (page 62). |
Selected Quarterly Financial Data (Unaudited) (page 112). |
Consent of Independent Registered Public Accounting Firm (Exhibit 23). |
STANLEY BLACK & DECKER, INC. | ||
By: | /s/ James M. Loree | |
James M. Loree, President and Chief Executive Officer | ||
Date: | February 27, 2018 |
Signature | Title | Date | |||
/s/ James M. Loree | President and Chief Executive Officer | February 27, 2018 | |||
James M. Loree | |||||
/s/ Donald Allan, Jr. | Executive Vice President and Chief Financial Officer | February 27, 2018 | |||
Donald Allan, Jr. | |||||
/s/ Jocelyn S. Belisle | Vice President and Chief Accounting Officer | February 27, 2018 | |||
Jocelyn S. Belisle | |||||
* | Director | February 27, 2018 | |||
Andrea J. Ayers | |||||
* | Director | February 27, 2018 | |||
George W. Buckley | |||||
* | Director | February 27, 2018 | |||
Patrick D. Campbell | |||||
* | Director | February 27, 2018 | |||
Carlos M. Cardoso | |||||
* | Director | February 27, 2018 | |||
Robert B. Coutts | |||||
* | Director | February 27, 2018 | |||
Debra A. Crew | |||||
* | Director | February 27, 2018 | |||
Michael D. Hankin | |||||
* | Director | February 27, 2018 | |||
Marianne M. Parrs | |||||
* | Director | February 27, 2018 | |||
Robert L. Ryan | |||||
* | Director | February 27, 2018 | |||
James H. Scholefield |
*By: /s/ Janet M. Link |
Janet M. Link (As Attorney-in-Fact) |
ADDITIONS | |||||||||||||||||||
Beginning Balance | Charged To Costs And Expenses | Charged To Other Accounts (b) | (a) Deductions | Ending Balance | |||||||||||||||
Allowance for Doubtful Accounts: | |||||||||||||||||||
Year Ended 2017 | $ | 77.5 | $ | 14.4 | $ | 10.6 | $ | (23.3 | ) | $ | 79.2 | ||||||||
Year Ended 2016 | $ | 72.9 | $ | 21.9 | $ | 4.8 | $ | (22.1 | ) | $ | 77.5 | ||||||||
Year Ended 2015 | $ | 60.7 | $ | 27.3 | $ | 0.7 | $ | (15.8 | ) | $ | 72.9 | ||||||||
Tax Valuation Allowance: | |||||||||||||||||||
Year Ended 2017 (c) | $ | 525.5 | $ | 262.4 | $ | 22.8 | $ | (294.0 | ) | $ | 516.7 | ||||||||
Year Ended 2016 | $ | 480.7 | $ | 74.5 | $ | 4.4 | $ | (34.1 | ) | $ | 525.5 | ||||||||
Year Ended 2015 | $ | 551.9 | $ | 30.5 | $ | 1.7 | $ | (103.4 | ) | $ | 480.7 |
(a) | With respect to the allowance for doubtful accounts, deductions represent amounts charged-off less recoveries of accounts previously charged-off. |
(b) | Amounts represent the impact of foreign currency translation, acquisitions and net transfers to/from other accounts. |
(c) | Refer to Note Q, Income Taxes, of the Notes to Consolidated Financial Statements in Item 8 for further discussion. |
/s/ James M. Loree | |
James M. Loree, President and Chief Executive Officer |
/s/ Donald Allan, Jr. | |
Donald Allan, Jr., Executive Vice President and Chief Financial Officer |
2017 | 2016 | 2015 | |||||||||
Net Sales | $ | 12,747.2 | $ | 11,406.9 | $ | 11,171.8 | |||||
Costs and Expenses | |||||||||||
Cost of sales | $ | 7,969.2 | $ | 7,139.7 | $ | 7,099.8 | |||||
Selling, general and administrative | 2,965.7 | 2,602.0 | 2,459.1 | ||||||||
Provision for doubtful accounts | 14.4 | 21.9 | 27.3 | ||||||||
Other, net | 289.7 | 196.9 | 222.0 | ||||||||
Gain on sales of businesses | (264.1 | ) | — | — | |||||||
Pension settlement | 12.2 | — | — | ||||||||
Restructuring charges and asset impairments | 51.5 | 49.0 | 47.6 | ||||||||
Interest income | (40.1 | ) | (23.2 | ) | (15.2 | ) | |||||
Interest expense | 222.6 | 194.5 | 180.4 | ||||||||
$ | 11,221.1 | $ | 10,180.8 | $ | 10,021.0 | ||||||
Earnings from continuing operations before income taxes | 1,526.1 | 1,226.1 | 1,150.8 | ||||||||
Income taxes on continuing operations | 300.5 | 261.2 | 248.6 | ||||||||
Earnings from continuing operations | $ | 1,225.6 | $ | 964.9 | $ | 902.2 | |||||
Less: Net loss attributable to non-controlling interests | (0.4 | ) | (0.4 | ) | (1.6 | ) | |||||
Net earnings from continuing operations attributable to common shareowners | $ | 1,226.0 | $ | 965.3 | $ | 903.8 | |||||
Loss from discontinued operations before income taxes | — | — | (19.3 | ) | |||||||
Income taxes on discontinued operations | — | — | 0.8 | ||||||||
Net loss from discontinued operations | $ | — | $ | — | $ | (20.1 | ) | ||||
Net Earnings Attributable to Common Shareowners | $ | 1,226.0 | $ | 965.3 | $ | 883.7 | |||||
Basic earnings (loss) per share of common stock: | |||||||||||
Continuing operations | $ | 8.19 | $ | 6.61 | $ | 6.10 | |||||
Discontinued operations | — | — | (0.14 | ) | |||||||
Total basic earnings per share of common stock | $ | 8.19 | $ | 6.61 | $ | 5.96 | |||||
Diluted earnings (loss) per share of common stock: | |||||||||||
Continuing operations | $ | 8.04 | $ | 6.51 | $ | 5.92 | |||||
Discontinued operations | — | — | (0.13 | ) | |||||||
Total diluted earnings per share of common stock | $ | 8.04 | $ | 6.51 | $ | 5.79 |
2017 | 2016 | 2015 | |||||||||
Net Earnings Attributable to Common Shareowners | $ | 1,226.0 | $ | 965.3 | $ | 883.7 | |||||
Other comprehensive income (loss): | |||||||||||
Currency translation adjustment and other | 481.3 | (285.4 | ) | (504.1 | ) | ||||||
Unrealized (losses) gains on cash flow hedges, net of tax | (66.3 | ) | 5.8 | (1.2 | ) | ||||||
Unrealized (losses) gains on net investment hedges, net of tax | (85.2 | ) | 76.8 | 49.0 | |||||||
Pension gains (losses), net of tax | 5.5 | (24.2 | ) | 32.3 | |||||||
Other comprehensive income (loss) | $ | 335.3 | $ | (227.0 | ) | $ | (424.0 | ) | |||
Comprehensive income attributable to common shareowners | $ | 1,561.3 | $ | 738.3 | $ | 459.7 |
2017 | 2016 | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 637.5 | $ | 1,131.8 | |||
Accounts and notes receivable, net | 1,635.9 | 1,302.8 | |||||
Inventories, net | 2,018.4 | 1,478.0 | |||||
Prepaid expenses | 234.6 | 193.2 | |||||
Assets held for sale | — | 523.4 | |||||
Other current assets | 39.7 | 159.3 | |||||
Total Current Assets | 4,566.1 | 4,788.5 | |||||
Property, Plant and Equipment, net | 1,742.5 | 1,451.2 | |||||
Goodwill | 8,776.1 | 6,694.0 | |||||
Customer Relationships, net | 1,170.7 | 635.7 | |||||
Trade Names, net | 2,248.9 | 1,560.1 | |||||
Other Intangible Assets, net | 87.8 | 103.7 | |||||
Other Assets | 487.8 | 401.7 | |||||
Total Assets | $ | 19,079.9 | $ | 15,634.9 | |||
LIABILITIES AND SHAREOWNERS' EQUITY | |||||||
Current Liabilities | |||||||
Short-term borrowings | $ | 5.3 | $ | 4.3 | |||
Current maturities of long-term debt | 983.4 | 7.8 | |||||
Accounts payable | 2,021.0 | 1,640.4 | |||||
Accrued expenses | 1,352.1 | 1,101.5 | |||||
Liabilities held for sale | — | 53.5 | |||||
Total Current Liabilities | 4,361.8 | 2,807.5 | |||||
Long-Term Debt | 2,843.0 | 3,815.3 | |||||
Deferred Taxes | 434.2 | 735.4 | |||||
Post-Retirement Benefits | 629.9 | 644.3 | |||||
Other Liabilities | 2,511.1 | 1,258.8 | |||||
Commitments and Contingencies (Notes R and S) | |||||||
Shareowners’ Equity | |||||||
Stanley Black & Decker, Inc. Shareowners’ Equity | |||||||
Preferred stock, without par value: Authorized 10,000,000 shares in 2017 and 2016 Issued and outstanding 750,000 shares in 2017 | 750.0 | — | |||||
Common stock, par value $2.50 per share: Authorized 300,000,000 shares in 2017 and 2016 Issued 176,902,738 shares in 2017 and 2016 | 442.3 | 442.3 | |||||
Retained earnings | 5,990.4 | 5,127.3 | |||||
Additional paid in capital | 4,643.2 | 4,774.4 | |||||
Accumulated other comprehensive loss | (1,585.9 | ) | (1,921.2 | ) | |||
ESOP | (18.8 | ) | (25.9 | ) | |||
10,221.2 | 8,396.9 | ||||||
Less: cost of common stock in treasury (22,864,707 shares in 2017 and 24,342,971 shares in 2016) | (1,924.1 | ) | (2,029.9 | ) | |||
Stanley Black & Decker, Inc. Shareowners’ Equity | 8,297.1 | 6,367.0 | |||||
Non-controlling interests | 2.8 | 6.6 | |||||
Total Shareowners’ Equity | 8,299.9 | 6,373.6 | |||||
Total Liabilities and Shareowners’ Equity | $ | 19,079.9 | $ | 15,634.9 |
2017 | 2016 | 2015 | |||||||||
Operating Activities: | |||||||||||
Net Earnings Attributable to Common Shareowners | $ | 1,226.0 | $ | 965.3 | $ | 883.7 | |||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||
Depreciation and amortization of property, plant and equipment | 296.9 | 263.6 | 256.9 | ||||||||
Amortization of intangibles | 163.8 | 144.4 | 157.1 | ||||||||
Inventory step-up amortization | 43.2 | — | — | ||||||||
Gain on sales of businesses | (264.1 | ) | — | — | |||||||
Stock-based compensation expense | 78.7 | 81.2 | 67.9 | ||||||||
Provision for doubtful accounts | 14.4 | 21.9 | 29.5 | ||||||||
Deferred tax benefit | (103.0 | ) | (25.7 | ) | (1.3 | ) | |||||
Other non-cash items | 24.4 | 40.0 | 28.6 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (200.6 | ) | (69.4 | ) | (41.3 | ) | |||||
Inventories | (303.0 | ) | (23.9 | ) | (54.7 | ) | |||||
Accounts payable | 240.4 | 159.7 | (9.7 | ) | |||||||
Deferred revenue | 2.1 | (9.2 | ) | 7.7 | |||||||
Other current assets | 42.8 | 26.0 | 19.8 | ||||||||
Long-term receivables | 10.8 | 1.2 | (12.6 | ) | |||||||
Other long-term assets | 72.4 | (47.5 | ) | (11.5 | ) | ||||||
Accrued expenses | 120.1 | (28.1 | ) | (59.0 | ) | ||||||
Defined benefit liabilities | (66.5 | ) | (56.8 | ) | (65.8 | ) | |||||
Other long-term liabilities | 19.8 | 42.5 | (13.0 | ) | |||||||
Net cash provided by operating activities | 1,418.6 | 1,485.2 | 1,182.3 | ||||||||
Investing Activities: | |||||||||||
Capital and software expenditures | (442.4 | ) | (347.0 | ) | (311.4 | ) | |||||
Proceeds from sales of assets | 50.2 | 10.6 | 29.1 | ||||||||
Business acquisitions, net of cash acquired | (2,601.1 | ) | (59.3 | ) | (17.6 | ) | |||||
Proceeds from sales of businesses, net of cash sold | 756.9 | 24.0 | — | ||||||||
(Payments) proceeds from net investment hedge settlements | (23.3 | ) | 104.7 | 137.7 | |||||||
Other | (29.4 | ) | (17.0 | ) | (42.8 | ) | |||||
Net cash used in investing activities | (2,289.1 | ) | (284.0 | ) | (205.0 | ) | |||||
Financing Activities: | |||||||||||
Net short-term (repayments) borrowings | (76.7 | ) | 1.9 | 1.2 | |||||||
Stock purchase contract fees | (20.0 | ) | (13.8 | ) | (17.0 | ) | |||||
Purchases of common stock for treasury | (28.7 | ) | (374.1 | ) | (649.8 | ) | |||||
Proceeds from issuances of preferred stock | 726.0 | — | 632.5 | ||||||||
Redemption of preferred stock for treasury | — | — | (632.5 | ) | |||||||
Cash settlement on forward stock purchase contracts | — | (147.4 | ) | — | |||||||
Premium paid on equity option | (25.1 | ) | — | — | |||||||
Non-controlling interest buyouts | (3.2 | ) | (12.5 | ) | (33.5 | ) | |||||
Termination of interest rate swaps | — | 27.0 | — | ||||||||
Proceeds from issuances of common stock | 90.8 | 418.5 | 163.5 | ||||||||
Cash dividends on common stock | (362.9 | ) | (330.9 | ) | (319.9 | ) | |||||
Other | (5.0 | ) | (1.8 | ) | (20.1 | ) | |||||
Net cash provided by (used in) financing activities | 295.2 | (433.1 | ) | (875.6 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | 81.0 | (101.7 | ) | (132.9 | ) | ||||||
Change in cash and cash equivalents | (494.3 | ) | 666.4 | (31.2 | ) | ||||||
Cash and cash equivalents, beginning of year | 1,131.8 | 465.4 | 496.6 | ||||||||
Cash and cash equivalents, end of year | $ | 637.5 | $ | 1,131.8 | $ | 465.4 |
Preferred Stock | Common Stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | ESOP | Treasury Stock | Non- Controlling Interests | Shareowners’ Equity | |||||||||||||||||||||||||||
Balance January 3, 2015 | $ | — | $ | 442.3 | $ | 4,727.1 | $ | 3,926.3 | $ | (1,270.2 | ) | $ | (43.6 | ) | $ | (1,352.8 | ) | $ | 82.8 | $ | 6,511.9 | ||||||||||||||
Net earnings | 883.7 | (1.6 | ) | 882.1 | |||||||||||||||||||||||||||||||
Other comprehensive loss | (424.0 | ) | (424.0 | ) | |||||||||||||||||||||||||||||||
Cash dividends declared — $2.14 per share | (319.9 | ) | (319.9 | ) | |||||||||||||||||||||||||||||||
Issuance of common stock | (96.1 | ) | 231.4 | 135.3 | |||||||||||||||||||||||||||||||
Forward obligation to purchase treasury shares | (350.0 | ) | (350.0 | ) | |||||||||||||||||||||||||||||||
Repurchase of common stock (9,227,564 shares) | 263.9 | (913.7 | ) | (649.8 | ) | ||||||||||||||||||||||||||||||
Issuance of preferred stock | 632.5 | 632.5 | |||||||||||||||||||||||||||||||||
Redemption and conversion of preferred stock | (632.5 | ) | (220.1 | ) | 220.1 | (632.5 | ) | ||||||||||||||||||||||||||||
Non-controlling interest buyout | 0.8 | (33.6 | ) | (32.8 | ) | ||||||||||||||||||||||||||||||
Stock-based compensation related | 67.9 | 67.9 | |||||||||||||||||||||||||||||||||
Tax benefit related to stock options exercised | 28.2 | 28.2 | |||||||||||||||||||||||||||||||||
ESOP and related tax benefit | 1.6 | 8.7 | 10.3 | ||||||||||||||||||||||||||||||||
Balance January 2, 2016 | $ | — | $ | 442.3 | $ | 4,421.7 | $ | 4,491.7 | $ | (1,694.2 | ) | $ | (34.9 | ) | $ | (1,815.0 | ) | $ | 47.6 | $ | 5,859.2 | ||||||||||||||
Net earnings | 965.3 | (0.4 | ) | 964.9 | |||||||||||||||||||||||||||||||
Other comprehensive loss | (227.0 | ) | (227.0 | ) | |||||||||||||||||||||||||||||||
Cash dividends declared — $2.26 per share | (330.9 | ) | (330.9 | ) | |||||||||||||||||||||||||||||||
Issuance of common stock | 20.9 | 386.1 | 407.0 | ||||||||||||||||||||||||||||||||
Settlement of forward share repurchase contract | 150.0 | (150.0 | ) | — | |||||||||||||||||||||||||||||||
Repurchase of common stock (4,651,463 shares) | 76.9 | (451.0 | ) | (374.1 | ) | ||||||||||||||||||||||||||||||
Non-controlling interest buyout | 12.2 | (40.6 | ) | (28.4 | ) | ||||||||||||||||||||||||||||||
Stock-based compensation related | 81.2 | 81.2 | |||||||||||||||||||||||||||||||||
Tax benefit related to stock options exercised | 11.5 | 11.5 | |||||||||||||||||||||||||||||||||
ESOP and related tax benefit | 1.2 | 9.0 | 10.2 | ||||||||||||||||||||||||||||||||
Balance December 31, 2016 | $ | — | $ | 442.3 | $ | 4,774.4 | $ | 5,127.3 | $ | (1,921.2 | ) | $ | (25.9 | ) | $ | (2,029.9 | ) | $ | 6.6 | $ | 6,373.6 | ||||||||||||||
Net earnings | 1,226.0 | (0.4 | ) | 1,225.6 | |||||||||||||||||||||||||||||||
Other comprehensive income | 335.3 | 335.3 | |||||||||||||||||||||||||||||||||
Cash dividends declared — $2.42 per share | (362.9 | ) | (362.9 | ) | |||||||||||||||||||||||||||||||
Issuance of common stock | (43.7 | ) | 134.5 | 90.8 | |||||||||||||||||||||||||||||||
Repurchase of common stock (202,075 shares) | (28.7 | ) | (28.7 | ) | |||||||||||||||||||||||||||||||
Issuance of preferred stock (750,000 shares) | 750.0 | (24.0 | ) | 726.0 | |||||||||||||||||||||||||||||||
Equity units - stock contract fees | (117.1 | ) | (117.1 | ) | |||||||||||||||||||||||||||||||
Premium paid on equity option | (25.1 | ) | (25.1 | ) | |||||||||||||||||||||||||||||||
Non-controlling interest buyout | (3.4 | ) | (3.4 | ) | |||||||||||||||||||||||||||||||
Stock-based compensation related | 78.7 | 78.7 | |||||||||||||||||||||||||||||||||
ESOP | 7.1 | 7.1 | |||||||||||||||||||||||||||||||||
Balance December 30, 2017 | $ | 750.0 | $ | 442.3 | $ | 4,643.2 | $ | 5,990.4 | $ | (1,585.9 | ) | $ | (18.8 | ) | $ | (1,924.1 | ) | $ | 2.8 | $ | 8,299.9 |
Useful Life (Years) | ||
Land improvements | 10 —20 | |
Buildings | 40 | |
Machinery and equipment | 3 — 15 | |
Computer software | 3 — 7 |
(Millions of Dollars) | 2017 | 2016 | |||||
Trade accounts receivable | $ | 1,421.8 | $ | 1,137.2 | |||
Trade notes receivable | 164.7 | 140.1 | |||||
Other accounts receivable | 128.6 | 103.0 | |||||
Gross accounts and notes receivable | 1,715.1 | 1,380.3 | |||||
Allowance for doubtful accounts | (79.2 | ) | (77.5 | ) | |||
Accounts and notes receivable, net | $ | 1,635.9 | $ | 1,302.8 | |||
Long-term receivable, net | $ | 191.7 | $ | 180.9 |
(Millions of Dollars) | 2017 | 2016 | |||||
Finished products | $ | 1,461.4 | $ | 1,044.2 | |||
Work in process | 155.5 | 133.3 | |||||
Raw materials | 401.5 | 300.5 | |||||
Total | $ | 2,018.4 | $ | 1,478.0 |
(Millions of Dollars) | 2017 | 2016 | |||||
Land | $ | 110.9 | $ | 107.3 | |||
Land improvements | 53.0 | 37.0 | |||||
Buildings | 611.8 | 519.3 | |||||
Leasehold improvements | 140.0 | 114.2 | |||||
Machinery and equipment | 2,343.7 | 2,008.5 | |||||
Computer software | 400.1 | 373.9 | |||||
Property, plant & equipment, gross | $ | 3,659.5 | $ | 3,160.2 | |||
Less: accumulated depreciation and amortization | (1,917.0 | ) | (1,709.0 | ) | |||
Property, plant & equipment, net | $ | 1,742.5 | $ | 1,451.2 |
(Millions of Dollars) | 2017 | 2016 | 2015 | ||||||||
Depreciation | $ | 253.6 | $ | 221.8 | $ | 219.2 | |||||
Amortization | 43.3 | 41.8 | 37.7 | ||||||||
Depreciation and amortization expense | $ | 296.9 | $ | 263.6 | $ | 256.9 |
(Millions of Dollars) | |||
Cash and cash equivalents | $ | 20.0 | |
Accounts and notes receivable, net | 26.9 | ||
Inventories, net | 195.8 | ||
Prepaid expenses and other current assets | 21.1 | ||
Property, plant and equipment, net | 116.5 | ||
Trade names | 283.0 | ||
Customer relationships | 548.0 | ||
Other assets | 8.8 | ||
Accounts payable | (70.3 | ) | |
Accrued expenses | (34.4 | ) | |
Deferred taxes | (272.8 | ) | |
Other liabilities | (7.9 | ) | |
Total identifiable net assets | $ | 834.7 | |
Goodwill | 1,022.7 | ||
Total consideration paid | $ | 1,857.4 |
Year-to-Date | |||
(Millions of Dollars) | 2017 | ||
Net sales | $ | 803.0 | |
Net loss attributable to common shareowners | $ | (25.0 | ) |
Year-to-Date | |||||||
(Millions of Dollars, except per share amounts) | 2017 | 2016 | |||||
Net sales | $ | 12,983.6 | $ | 12,355.9 | |||
Net earnings attributable to common shareowners | 1,330.7 | 925.5 | |||||
Diluted earnings per share | $ | 8.73 | $ | 6.24 |
• | Elimination of the historical pre-acquisition intangible asset amortization expense and the addition of intangible asset amortization expense related to intangibles valued as part of the purchase price allocation that would have been incurred from January 1, 2017 to the acquisition dates. |
• | Additional depreciation expense for the property, plant, and equipment fair value adjustments that would have been incurred from January 1, 2017 to the acquisition date of Newell Tools. |
• | Because the 2017 acquisitions were assumed to occur on January 3, 2016, there were no deal costs or inventory step-up amortization factored into the 2017 pro-forma year, as such expenses would have occurred in the first year following the acquisition. |
• | Elimination of the historical pre-acquisition intangible asset amortization expense and the addition of intangible asset amortization expense related to intangibles valued as part of the purchase price allocation that would have been incurred for the year ended December 31, 2016. |
• | Additional expense for deal costs and inventory step-up, which would have been amortized as the corresponding inventory was sold. |
• | Additional depreciation expense for the property, plant, and equipment fair value adjustments that would have been incurred for the year ended December 31, 2016 for Newell Tools. |
(Millions of Dollars) | Tools & Storage | Industrial | Security | Total | |||||||||||
Balance December 31, 2016 | $ | 3,247.8 | $ | 1,439.2 | $ | 2,007.0 | $ | 6,694.0 | |||||||
Acquisitions | 1,762.7 | — | 60.5 | 1,823.2 | |||||||||||
Foreign currency translation and other | 179.2 | 15.2 | 64.5 | 258.9 | |||||||||||
Balance December 30, 2017 | $ | 5,189.7 | $ | 1,454.4 | $ | 2,132.0 | $ | 8,776.1 |
2017 | 2016 | ||||||||||||||
(Millions of Dollars) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||
Amortized Intangible Assets — Definite lives | |||||||||||||||
Patents and copyrights | $ | 44.1 | $ | (41.0 | ) | $ | 40.7 | $ | (36.5 | ) | |||||
Trade names | 154.0 | (111.0 | ) | 152.0 | (100.4 | ) | |||||||||
Customer relationships | 2,326.1 | (1,155.4 | ) | 1,614.6 | (978.9 | ) | |||||||||
Other intangible assets | 260.3 | (175.6 | ) | 258.2 | (158.7 | ) | |||||||||
Total | $ | 2,784.5 | $ | (1,483.0 | ) | $ | 2,065.5 | $ | (1,274.5 | ) |
(Millions of Dollars) | 2017 | 2016 | 2015 | ||||||||
Tools & Storage | $ | 68.0 | $ | 36.8 | $ | 39.0 | |||||
Industrial | 45.4 | 49.8 | 56.8 | ||||||||
Security | 50.4 | 57.8 | 61.3 | ||||||||
Consolidated | $ | 163.8 | $ | 144.4 | $ | 157.1 |
(Millions of Dollars) | 2017 | 2016 | |||||
Payroll and related taxes | $ | 339.5 | $ | 268.0 | |||
Income and other taxes | 142.1 | 117.6 | |||||
Customer rebates and sales returns | 95.0 | 68.2 | |||||
Insurance and benefits | 73.7 | 87.4 | |||||
Accrued restructuring costs | 23.2 | 35.6 | |||||
Derivative financial instruments | 103.1 | 49.8 | |||||
Warranty costs | 71.3 | 68.8 | |||||
Deferred revenue | 98.9 | 81.9 | |||||
Other | 405.3 | 324.2 | |||||
Total | $ | 1,352.1 | $ | 1,101.5 |
December 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
(Millions of Dollars) | Interest Rate | Original Notional | Unamortized Discount | Unamortized Gain/(Loss) Terminated Swaps (1) | Purchase Accounting FV Adjustment | Deferred Financing Fees | Carrying Value | Carrying Value | |||||||||||||||
Notes payable due 2018 | 2.45% | $ | 632.5 | $ | — | $ | — | $ | — | $ | (1.6 | ) | $ | 630.9 | $ | 629.2 | |||||||
Notes payable due 2018 | 1.62% | 345.0 | — | — | — | (0.9 | ) | 344.1 | 343.1 | ||||||||||||||
Notes payable due 2021 | 3.40% | 400.0 | (0.2 | ) | 13.6 | — | (1.3 | ) | 412.1 | 415.2 | |||||||||||||
Notes payable due 2022 | 2.90% | 754.3 | (0.3 | ) | — | — | (3.1 | ) | 750.9 | 750.3 | |||||||||||||
Notes payable due 2028 | 7.05% | 150.0 | — | 11.5 | 11.1 | — | 172.6 | 174.7 | |||||||||||||||
Notes payable due 2040 | 5.20% | 400.0 | (0.2 | ) | (33.4 | ) | — | (3.1 | ) | 363.3 | 361.7 | ||||||||||||
Notes payable due 2052 (junior subordinated) | 5.75% | 750.0 | — | — | — | (19.0 | ) | 731.0 | 730.4 | ||||||||||||||
Notes payable due 2053 (junior subordinated) | 5.75% | 400.0 | — | 4.7 | — | (8.1 | ) | 396.6 | 396.5 | ||||||||||||||
Other, payable in varying amounts through 2022 | 0.00% - 3.06% | 24.9 | — | — | — | — | 24.9 | 22.0 | |||||||||||||||
Total long-term debt, including current maturities | $ | 3,856.7 | $ | (0.7 | ) | $ | (3.6 | ) | $ | 11.1 | $ | (37.1 | ) | $ | 3,826.4 | $ | 3,823.1 | ||||||
Less: Current maturities of long-term debt | (983.4 | ) | (7.8 | ) | |||||||||||||||||||
Long-term debt | $ | 2,843.0 | $ | 3,815.3 |
(Millions of Dollars) | Balance Sheet Classification | 2017 | 2016 | Balance Sheet Classification | 2017 | 2016 | ||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Interest Rate Contracts Cash Flow | Other current assets | $ | — | $ | — | Accrued expenses | $ | 55.7 | $ | — | ||||||||||
LT other assets | — | — | LT other liabilities | — | 47.3 | |||||||||||||||
Foreign Exchange Contracts Cash Flow | Other current assets | 4.1 | 37.6 | Accrued expenses | 33.4 | 1.6 | ||||||||||||||
LT other assets | — | — | LT other liabilities | 5.2 | — | |||||||||||||||
Net Investment Hedge | Other current assets | 6.6 | 44.1 | Accrued expenses | 7.0 | 1.8 | ||||||||||||||
LT other assets | — | — | LT other liabilities | 5.8 | 0.5 | |||||||||||||||
$ | 10.7 | $ | 81.7 | $ | 107.1 | $ | 51.2 | |||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Foreign Exchange Contracts | Other current assets | $ | 7.3 | $ | 28.5 | Accrued expenses | $ | 6.9 | $ | 46.4 | ||||||||||
$ | 7.3 | $ | 28.5 | $ | 6.9 | $ | 46.4 |
Year-to-date 2017 (Millions of Dollars) | (Loss) Gain Recorded in OCI | Classification of Gain (Loss) Reclassified from OCI to Income | Gain (Loss) Reclassified from OCI to Income (Effective Portion) | Gain (Loss) Recognized in Income (Ineffective Portion*) | ||||||||||
Interest Rate Contracts | $ | (8.4 | ) | Interest Expense | $ | — | $ | — | ||||||
Foreign Exchange Contracts | $ | (66.6 | ) | Cost of sales | $ | 8.4 | $ | — |
Year-to-date 2016 (Millions of Dollars) | (Loss) Gain Recorded in OCI | Classification of Gain (Loss) Reclassified from OCI to Income | Gain (Loss) Reclassified from OCI to Income (Effective Portion) | Gain (Loss) Recognized in Income (Ineffective Portion*) | ||||||||||
Interest Rate Contracts | $ | (6.2 | ) | Interest Expense | $ | — | $ | — | ||||||
Foreign Exchange Contracts | $ | 19.3 | Cost of sales | $ | 21.7 | $ | — |
Year-to-date 2015 (Millions of Dollars) | (Loss) Gain Recorded in OCI | Classification of Gain (Loss) Reclassified from OCI to Income | Gain (Loss) Reclassified from OCI to Income (Effective Portion) | Gain (Loss) Recognized in Income (Ineffective Portion*) | ||||||||||
Interest Rate Contracts | $ | (6.8 | ) | Interest Expense | $ | — | $ | — | ||||||
Foreign Exchange Contracts | $ | 52.5 | Cost of sales | $ | 57.4 | $ | — |
Year-to-Date 2017 | Year-to-Date 2016 | Year-to-Date 2015 | |||||||||||||||||||||
Income Statement Classification (Millions of Dollars) | Gain/(Loss) on Swaps* | Gain /(Loss) on Borrowings | (Loss)/Gain on Swaps* | Gain /(Loss) on Borrowings | Gain/(Loss) on Swaps* | (Loss)/Gain on Borrowings | |||||||||||||||||
Interest Expense | $ | — | $ | — | $ | (3.3 | ) | $ | 3.8 | $ | 11.8 | $ | (11.8 | ) |
Year-to-Date 2017 | Year-to-Date 2016 | Year-to-Date 2015 | |||||||||||||||||||||||||||||||||
Income Statement Classification (Millions of Dollars) | Amount Recorded in OCI (Loss) Gain | Effective Portion Recorded in Income Statement | Ineffective Portion* Recorded in Income Statement | Amount Recorded in OCI Gain (Loss) | Effective Portion Recorded in Income Statement | Ineffective Portion* Recorded in Income Statement | Amount Recorded in OCI Gain (Loss) | Effective Portion Recorded in Income Statement | Ineffective Portion* Recorded in Income Statement | ||||||||||||||||||||||||||
Other-net | $ | (131.3 | ) | $ | — | $ | — | $ | 117.8 | $ | — | $ | — | $ | 75.5 | $ | — | $ | — |
Derivatives Not Designated as Hedging Instruments under ASC 815 (Millions of Dollars) | Income Statement Classification | Year-to-Date 2017 Amount of Gain (Loss) Recorded in Income on Derivative | Year-to-Date 2016 Amount of (Loss) Gain Recorded in Income on Derivative | Year-to-Date 2015 Amount of (Loss) Gain Recorded in Income on Derivative | |||||||||
Foreign Exchange Contracts | Other-net | $ | 51.5 | $ | (21.1 | ) | $ | (8.9 | ) |
2017 | 2016 | 2015 | |||||||||
Numerator (in millions): | |||||||||||
Net earnings from continuing operations attributable to common shareowners | $ | 1,226.0 | $ | 965.3 | $ | 903.8 | |||||
Net loss from discontinued operations | — | — | (20.1 | ) | |||||||
Net Earnings Attributable to Common Shareowners | $ | 1,226.0 | $ | 965.3 | $ | 883.7 |
Denominator (in thousands): | ||||||||
Basic weighted-average shares | 149,629 | 146,041 | 148,234 | |||||
Dilutive effect of stock contracts and awards | 2,820 | 2,166 | 4,472 | |||||
Diluted weighted-average shares | 152,449 | 148,207 | 152,706 |
Earnings (loss) per share of common stock: | |||||||||||
Basic earnings (loss) per share of common stock: | |||||||||||
Continuing operations | $ | 8.19 | $ | 6.61 | $ | 6.10 | |||||
Discontinued operations | — | — | (0.14 | ) | |||||||
Total basic earnings per share of common stock | $ | 8.19 | $ | 6.61 | $ | 5.96 | |||||
Diluted earnings (loss) per share of common stock: | |||||||||||
Continuing operations | $ | 8.04 | $ | 6.51 | $ | 5.92 | |||||
Discontinued operations | — | — | (0.13 | ) | |||||||
Total dilutive earnings per share of common stock | $ | 8.04 | $ | 6.51 | $ | 5.79 |
2017 | 2016 | 2015 | ||||||
Number of stock options | 389 | 734 | 646 |
2017 | 2016 | 2015 | ||||||
Outstanding, beginning of year | 152,559,767 | 153,944,291 | 157,125,450 | |||||
Issued from treasury | 1,680,339 | 4,870,761 | 6,046,405 | |||||
Returned to treasury | (202,075 | ) | (6,255,285 | ) | (9,227,564 | ) | ||
Outstanding, end of year | 154,038,031 | 152,559,767 | 153,944,291 | |||||
Shares subject to the forward share purchase contract | (3,645,510 | ) | (3,645,510 | ) | (5,249,332 | ) | ||
Outstanding, less shares subject to the forward share purchase contract | 150,392,521 | 148,914,257 | 148,694,959 |
2017 | 2016 | ||||
Employee stock purchase plan | 1,745,939 | 1,936,093 | |||
Other stock-based compensation plans | 2,526,337 | 4,998,983 | |||
Total shares reserved | 4,272,276 | 6,935,076 |
2017 | 2016 | 2015 | |||||||||
Average expected volatility | 20.0 | % | 24.1 | % | 25.0 | % | |||||
Dividend yield | 1.5 | % | 2.0 | % | 2.0 | % | |||||
Risk-free interest rate | 2.2 | % | 2.0 | % | 1.9 | % | |||||
Expected term | 5.2 years | 5.3 years | 5.3 years | ||||||||
Fair value per option | $ | 30.71 | $ | 23.41 | $ | 21.94 | |||||
Weighted average vesting period | 2.9 years | 2.4 years | 2.8 years |
Options | Price | |||||
Outstanding, beginning of year | 6,433,586 | $ | 86.33 | |||
Granted | 1,191,246 | 169.21 | ||||
Exercised | (945,473 | ) | 73.96 | |||
Forfeited | (117,955 | ) | 110.62 | |||
Outstanding, end of year | 6,561,404 | $ | 102.56 | |||
Exercisable, end of year | 3,937,798 | $ | 78.72 |
Outstanding Stock Options | Exercisable Stock Options | ||||||||||||||||
Exercise Price Ranges | Options | Weighted- Average Remaining Contractual Life | Weighted- Average Exercise Price | Options | Weighted- Average Remaining Contractual Life | Weighted- Average Exercise Price | |||||||||||
$35.00 and below | 22,040 | 0.97 | $ | 33.11 | 22,040 | 0.97 | $ | 33.11 | |||||||||
$35.01 — 50.00 | 17,956 | 1.08 | 46.97 | 17,956 | 1.08 | 46.97 | |||||||||||
$50.01 — higher | 6,521,408 | 6.67 | 102.95 | 3,897,802 | 5.05 | 79.12 | |||||||||||
6,561,404 | 6.63 | $ | 102.56 | 3,937,798 | 5.01 | $ | 78.72 |
Restricted Share Units & Awards | Weighted Average Grant Date Fair Value | |||||
Non-vested at December 31, 2016 | 1,132,024 | $ | 100.53 | |||
Granted | 304,976 | 160.04 | ||||
Vested | (290,980 | ) | 100.31 | |||
Forfeited | (61,345 | ) | 104.98 | |||
Non-vested at December 30, 2017 | 1,084,675 | $ | 121.89 |
Share Units | Weighted-Average Grant Date Fair Value | |||||
Non-vested at December 31, 2016 | 801,074 | $ | 84.03 | |||
Granted | 201,575 | 119.34 | ||||
Vested | (242,898 | ) | 75.13 | |||
Forfeited | (66,838 | ) | 80.12 | |||
Non-vested at December 30, 2017 | 692,913 | $ | 97.80 |
(Millions of Dollars) | Currency translation adjustment and other | Unrealized (losses) gains on cash flow hedges, net of tax | Unrealized gains (losses) on net investment hedges, net of tax | Pension (losses) gains, net of tax | Total | ||||||||||||||
Balance - January 2, 2016 | $ | (1,300.9 | ) | $ | (52.1 | ) | $ | 11.8 | $ | (353.0 | ) | $ | (1,694.2 | ) | |||||
Other comprehensive (loss) income before reclassifications | (285.4 | ) | 9.1 | 76.8 | (36.3 | ) | (235.8 | ) | |||||||||||
Reclassification adjustments to earnings | — | (3.3 | ) | — | 12.1 | 8.8 | |||||||||||||
Net other comprehensive (loss) income | (285.4 | ) | 5.8 | 76.8 | (24.2 | ) | (227.0 | ) | |||||||||||
Balance - December 31, 2016 | $ | (1,586.3 | ) | $ | (46.3 | ) | $ | 88.6 | $ | (377.2 | ) | $ | (1,921.2 | ) | |||||
Other comprehensive income (loss) before reclassifications | 476.6 | (71.0 | ) | (85.2 | ) | (19.1 | ) | 301.3 | |||||||||||
Adjustments related to sales of businesses | 4.7 | — | — | 2.6 | 7.3 | ||||||||||||||
Reclassification adjustments to earnings | — | 4.7 | — | 22.0 | 26.7 | ||||||||||||||
Net other comprehensive income (loss) | 481.3 | (66.3 | ) | (85.2 | ) | 5.5 | 335.3 | ||||||||||||
Balance - December 30, 2017 | $ | (1,105.0 | ) | $ | (112.6 | ) | $ | 3.4 | $ | (371.7 | ) | $ | (1,585.9 | ) |
(Millions of Dollars) | 2017 | 2016 | ||||||||
Components of accumulated other comprehensive loss | Reclassification adjustments | Reclassification adjustments | Affected line item in Consolidated Statements of Operations | |||||||
Realized gains on cash flow hedges | $ | 8.4 | $ | 21.7 | Cost of sales | |||||
Realized losses on cash flow hedges | (15.1 | ) | (15.1 | ) | Interest Expense | |||||
Total before taxes | $ | (6.7 | ) | $ | 6.6 | |||||
Tax effect | 2.0 | (3.3 | ) | Income taxes on continuing operations | ||||||
Realized (loss) gain on cash flow hedges, net of tax | $ | (4.7 | ) | $ | 3.3 | |||||
Amortization of defined benefit pension items: | ||||||||||
Actuarial losses and prior service costs / credits | $ | (9.7 | ) | $ | (10.4 | ) | Cost of sales | |||
Actuarial losses and prior service costs / credits | (6.5 | ) | (6.9 | ) | Selling, general and administrative | |||||
Settlement loss (1) | (12.2 | ) | — | Pension Settlement | ||||||
Settlement losses (1) | (3.4 | ) | — | Other, net | ||||||
Total before taxes | (31.8 | ) | (17.3 | ) | ||||||
Tax effect | 9.8 | 5.2 | Income taxes on continuing operations | |||||||
Amortization of defined benefit pension items, net of tax | $ | (22.0 | ) | $ | (12.1 | ) |
(Millions of Dollars) | 2017 | 2016 | 2015 | ||||||||
Multi-employer plan expense | $ | 7.2 | $ | 5.1 | $ | 4.0 | |||||
Other defined contribution plan expense | $ | 27.5 | $ | 15.4 | $ | 11.7 |
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||
(Millions of Dollars) | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||
Service cost | $ | 8.7 | $ | 9.4 | $ | 7.0 | $ | 13.7 | $ | 12.5 | $ | 14.4 | |||||||||||
Interest cost | 43.2 | 45.3 | 54.0 | 29.1 | 37.0 | 46.8 | |||||||||||||||||
Expected return on plan assets | (64.4 | ) | (67.9 | ) | (74.9 | ) | (45.5 | ) | (44.5 | ) | (56.5 | ) | |||||||||||
Amortization of prior service cost (credit) | 1.1 | 5.2 | 1.8 | (1.2 | ) | 0.3 | 0.9 | ||||||||||||||||
Actuarial loss amortization | 8.3 | 7.1 | 7.2 | 9.4 | 5.9 | 7.5 | |||||||||||||||||
Settlement / curtailment loss | 2.9 | — | — | 12.7 | 0.7 | 1.5 | |||||||||||||||||
Net periodic pension (benefit) expense | $ | (0.2 | ) | $ | (0.9 | ) | $ | (4.9 | ) | $ | 18.2 | $ | 11.9 | $ | 14.6 |
Other Benefit Plans | |||||||||||
(Millions of Dollars) | 2017 | 2016 | 2015 | ||||||||
Service cost | $ | 0.6 | $ | 0.6 | $ | 0.5 | |||||
Interest cost | 1.7 | 1.7 | 2.1 | ||||||||
Amortization of prior service credit | (1.4 | ) | (1.2 | ) | (1.3 | ) | |||||
Net periodic post-retirement expense | $ | 0.9 | $ | 1.1 | $ | 1.3 |
(Millions of Dollars) | 2017 | ||
Current year actuarial gain | $ | (2.2 | ) |
Amortization of actuarial loss | (16.2 | ) | |
Prior service cost from plan amendments | 0.5 | ||
Settlement / curtailment loss | (15.6 | ) | |
Currency / other | 25.7 | ||
Total decrease recognized in accumulated other comprehensive loss (pre-tax) | $ | (7.8 | ) |
U.S. Plans | Non-U.S. Plans | Other Benefits | |||||||||||||||||||||
(Millions of Dollars) | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||
Benefit obligation at end of prior year | $ | 1,359.0 | $ | 1,385.7 | $ | 1,359.8 | $ | 1,374.2 | $ | 54.2 | $ | 61.0 | |||||||||||
Service cost | 8.7 | 9.4 | 13.7 | 12.5 | 0.6 | 0.6 | |||||||||||||||||
Interest cost | 43.2 | 45.3 | 29.1 | 37.0 | 1.7 | 1.7 | |||||||||||||||||
Settlements/curtailments | (16.7 | ) | — | (35.9 | ) | (5.7 | ) | — | — | ||||||||||||||
Actuarial loss (gain) | 98.1 | 41.5 | 11.4 | 229.7 | (2.1 | ) | (0.7 | ) | |||||||||||||||
Plan amendments | 0.5 | 1.8 | — | (40.4 | ) | — | (0.8 | ) | |||||||||||||||
Foreign currency exchange rates | — | — | 136.0 | (190.0 | ) | 0.7 | 0.3 | ||||||||||||||||
Participant contributions | — | — | 0.3 | 0.3 | — | — | |||||||||||||||||
Expenses paid from assets and other | (7.0 | ) | (5.5 | ) | (11.6 | ) | (2.0 | ) | 2.1 | — | |||||||||||||
Benefits paid | (120.5 | ) | (119.2 | ) | (56.7 | ) | (55.8 | ) | (4.9 | ) | (7.9 | ) | |||||||||||
Benefit obligation at end of year | $ | 1,365.3 | $ | 1,359.0 | $ | 1,446.1 | $ | 1,359.8 | $ | 52.3 | $ | 54.2 | |||||||||||
Change in plan assets | |||||||||||||||||||||||
Fair value of plan assets at end of prior year | $ | 1,067.1 | $ | 1,081.5 | $ | 1,015.3 | $ | 1,047.3 | $ | — | $ | — | |||||||||||
Actual return on plan assets | 153.5 | 90.9 | 63.5 | 169.4 | — | — | |||||||||||||||||
Participant contributions | — | — | 0.3 | 0.3 | — | — | |||||||||||||||||
Employer contributions | 37.6 | 19.4 | 24.0 | 29.5 | 4.9 | 7.9 | |||||||||||||||||
Settlements | (16.7 | ) | — | (35.9 | ) | (5.5 | ) | — | — | ||||||||||||||
Foreign currency exchange rate changes | — | — | 96.4 | (167.9 | ) | — | — | ||||||||||||||||
Expenses paid from assets and other | (6.9 | ) | (5.5 | ) | (7.7 | ) | (2.0 | ) | — | — | |||||||||||||
Benefits paid | (120.5 | ) | (119.2 | ) | (56.7 | ) | (55.8 | ) | (4.9 | ) | (7.9 | ) | |||||||||||
Fair value of plan assets at end of plan year | $ | 1,114.1 | $ | 1,067.1 | $ | 1,099.2 | $ | 1,015.3 | $ | — | $ | — | |||||||||||
Funded status — assets less than benefit obligation | $ | (251.2 | ) | $ | (291.9 | ) | $ | (346.9 | ) | $ | (344.5 | ) | $ | (52.3 | ) | $ | (54.2 | ) | |||||
Unrecognized prior service cost (credit) | 5.2 | 5.8 | (37.0 | ) | (35.0 | ) | (4.8 | ) | (6.2 | ) | |||||||||||||
Unrecognized net actuarial loss | 264.9 | 267.2 | 294.7 | 296.7 | (1.7 | ) | 0.5 | ||||||||||||||||
Unrecognized net transition obligation | — | — | — | 0.1 | — | — | |||||||||||||||||
Net amount recognized | $ | 18.9 | $ | (18.9 | ) | $ | (89.2 | ) | $ | (82.7 | ) | $ | (58.8 | ) | $ | (59.9 | ) |
U.S. Plans | Non-U.S. Plans | Other Benefits | |||||||||||||||||||||
(Millions of Dollars) | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets | |||||||||||||||||||||||
Prepaid benefit cost (non-current) | $ | — | $ | — | $ | 1.8 | $ | 0.2 | $ | — | $ | — | |||||||||||
Current benefit liability | (8.2 | ) | (25.8 | ) | (8.9 | ) | (10.0 | ) | (5.2 | ) | (5.9 | ) | |||||||||||
Non-current benefit liability | (243.0 | ) | (266.1 | ) | (339.8 | ) | (334.7 | ) | (47.1 | ) | (48.3 | ) | |||||||||||
Net liability recognized | $ | (251.2 | ) | $ | (291.9 | ) | $ | (346.9 | ) | $ | (344.5 | ) | $ | (52.3 | ) | $ | (54.2 | ) | |||||
Accumulated other comprehensive loss (pre-tax): | |||||||||||||||||||||||
Prior service cost (credit) | $ | 5.2 | $ | 5.8 | $ | (37.0 | ) | $ | (35.0 | ) | $ | (4.8 | ) | $ | (6.2 | ) | |||||||
Actuarial loss (gain) | 264.9 | 267.2 | 294.7 | 296.7 | (1.7 | ) | 0.5 | ||||||||||||||||
Transition liability | — | — | — | 0.1 | — | — | |||||||||||||||||
$ | 270.1 | $ | 273.0 | $ | 257.7 | $ | 261.8 | $ | (6.5 | ) | $ | (5.7 | ) | ||||||||||
Net amount recognized | $ | 18.9 | $ | (18.9 | ) | $ | (89.2 | ) | $ | (82.7 | ) | $ | (58.8 | ) | $ | (59.9 | ) |
U.S. Plans | Non-U.S. Plans | ||||||||||||||
(Millions of Dollars) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Projected benefit obligation | $ | 1,365.3 | $ | 1,359.0 | $ | 1,415.9 | $ | 1,334.1 | |||||||
Accumulated benefit obligation | $ | 1,358.4 | $ | 1,353.0 | $ | 1,368.7 | $ | 1,290.7 | |||||||
Fair value of plan assets | $ | 1,114.1 | $ | 1,067.1 | $ | 1,068.5 | $ | 990.5 |
U.S. Plans | Non-U.S. Plans | ||||||||||||||
(Millions of Dollars) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Projected benefit obligation | $ | 1,365.3 | $ | 1,359.0 | $ | 1,445.1 | $ | 1,359.0 | |||||||
Accumulated benefit obligation | $ | 1,358.4 | $ | 1,353.0 | $ | 1,395.1 | $ | 1,313.2 | |||||||
Fair value of plan assets | $ | 1,114.1 | $ | 1,067.1 | $ | 1,096.5 | $ | 1,014.4 |
Pension Benefits | ||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Other Benefits | ||||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations at year end: | ||||||||||||||||||||||||||
Discount rate | 3.53 | % | 3.95 | % | 4.25 | % | 2.24 | % | 2.38 | % | 3.25 | % | 3.53 | % | 3.51 | % | 3.75 | % | ||||||||
Rate of compensation increase | 3.00 | % | 3.00 | % | 6.00 | % | 3.45 | % | 3.63 | % | 3.25 | % | 3.50 | % | 3.50 | % | 3.50 | % | ||||||||
Weighted-average assumptions used to determine net periodic benefit cost: | ||||||||||||||||||||||||||
Discount rate* | 3.75 | % | 3.25 | % | 3.25 | % | ||||||||||||||||||||
Discount rate - service cost | 4.10 | % | 4.32 | % | 2.27 | % | 2.54 | % | 4.53 | % | 4.27 | % | ||||||||||||||
Discount rate - interest cost | 3.30 | % | 3.39 | % | 2.31 | % | 2.94 | % | 2.93 | % | 2.94 | % | ||||||||||||||
Rate of compensation increase | 3.00 | % | 6.00 | % | 6.00 | % | 3.63 | % | 3.24 | % | 3.50 | % | 3.50 | % | 3.50 | % | 3.50 | % | ||||||||
Expected return on plan assets | 6.25 | % | 6.50 | % | 6.50 | % | 4.41 | % | 4.68 | % | 5.25 | % |
Asset Category (Millions of Dollars) | 2017 | Level 1 | Level 2 | ||||||||
Cash and cash equivalents | $ | 42.0 | $ | 19.5 | $ | 22.5 | |||||
Equity securities | |||||||||||
U.S. equity securities | 342.8 | 103.5 | 239.3 | ||||||||
Foreign equity securities | 329.3 | 111.8 | 217.5 | ||||||||
Fixed income securities | |||||||||||
Government securities | 707.8 | 213.3 | 494.5 | ||||||||
Corporate securities | 698.3 | — | 698.3 | ||||||||
Insurance contracts | 39.2 | — | 39.2 | ||||||||
Other | 53.9 | — | 53.9 | ||||||||
Total | $ | 2,213.3 | $ | 448.1 | $ | 1,765.2 |
Asset Category (Millions of Dollars) | 2016 | Level 1 | Level 2 | ||||||||
Cash and cash equivalents | $ | 50.8 | $ | 35.3 | $ | 15.5 | |||||
Equity securities | |||||||||||
U.S. equity securities | 303.8 | 100.7 | 203.1 | ||||||||
Foreign equity securities | 254.1 | 75.8 | 178.3 | ||||||||
Fixed income securities | |||||||||||
Government securities | 687.0 | 227.0 | 460.0 | ||||||||
Corporate securities | 687.9 | — | 687.9 | ||||||||
Insurance contracts | 35.0 | — | 35.0 | ||||||||
Other | 63.8 | — | 63.8 | ||||||||
Total | $ | 2,082.4 | $ | 438.8 | $ | 1,643.6 |
(Millions of Dollars) | Total | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Years 6-10 | |||||||||||||||||||||
Future payments | $ | 1,414.4 | $ | 138.2 | $ | 137.5 | $ | 140.1 | $ | 142.5 | $ | 140.9 | $ | 715.2 |
(Millions of Dollars) | Total Carrying Value | Level 1 | Level 2 | Level 3 | |||||||||||
December 30, 2017 | |||||||||||||||
Money market fund | $ | 11.6 | $ | 11.6 | $ | — | $ | — | |||||||
Derivative assets | $ | 18.0 | $ | — | $ | 18.0 | $ | — | |||||||
Derivative liabilities | $ | 114.0 | $ | — | $ | 114.0 | $ | — | |||||||
Contingent consideration liability | $ | 114.0 | $ | — | $ | — | $ | 114.0 | |||||||
December 31, 2016 | |||||||||||||||
Money market fund | $ | 4.3 | $ | 4.3 | $ | — | $ | — | |||||||
Derivative assets | $ | 110.2 | $ | — | $ | 110.2 | $ | — | |||||||
Derivative liabilities | $ | 97.6 | $ | — | $ | 97.6 | $ | — |
December 30, 2017 | December 31, 2016 | ||||||||||||||
(Millions of Dollars) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||
Other investments | $ | 7.6 | $ | 7.9 | $ | 8.9 | $ | 9.2 | |||||||
Derivative assets | $ | 18.0 | $ | 18.0 | $ | 110.2 | $ | 110.2 | |||||||
Derivative liabilities | $ | 114.0 | $ | 114.0 | $ | 97.6 | $ | 97.6 | |||||||
Long-term debt, including current portion | $ | 3,826.4 | $ | 4,012.0 | $ | 3,823.1 | $ | 3,967.4 |
(Millions of Dollars) | December 31, 2016 | Net Additions | Usage | Currency | December 30, 2017 | ||||||||||||||
Severance and related costs | $ | 21.4 | $ | 40.6 | $ | (43.8 | ) | $ | 1.8 | $ | 20.0 | ||||||||
Facility closures and asset impairments | 14.2 | 10.9 | (22.1 | ) | 0.2 | 3.2 | |||||||||||||
Total | $ | 35.6 | $ | 51.5 | $ | (65.9 | ) | $ | 2.0 | $ | 23.2 |
(Millions of Dollars) | 2017 | 2016 | 2015 | ||||||||
Net Sales | |||||||||||
Tools & Storage | $ | 8,862.4 | $ | 7,469.2 | $ | 7,140.7 | |||||
Industrial | 1,946.0 | 1,840.3 | 1,938.2 | ||||||||
Security | 1,938.8 | 2,097.4 | 2,092.9 | ||||||||
Consolidated | $ | 12,747.2 | $ | 11,406.9 | $ | 11,171.8 | |||||
Segment Profit | |||||||||||
Tools & Storage | $ | 1,450.1 | $ | 1,266.9 | $ | 1,170.1 | |||||
Industrial | 352.3 | 304.4 | 339.9 | ||||||||
Security | 212.3 | 269.2 | 239.6 | ||||||||
Segment Profit | 2,014.7 | 1,840.5 | 1,749.6 | ||||||||
Corporate overhead | (216.8 | ) | (197.2 | ) | (164.0 | ) | |||||
Other, net | (289.7 | ) | (196.9 | ) | (222.0 | ) | |||||
Gain on sales of businesses | 264.1 | — | — | ||||||||
Pension settlement | (12.2 | ) | — | — | |||||||
Restructuring charges and asset impairments | (51.5 | ) | (49.0 | ) | (47.6 | ) | |||||
Interest income | 40.1 | 23.2 | 15.2 | ||||||||
Interest expense | (222.6 | ) | (194.5 | ) | (180.4 | ) | |||||
Earnings from continuing operations before income taxes | $ | 1,526.1 | $ | 1,226.1 | $ | 1,150.8 | |||||
Capital and Software Expenditures | |||||||||||
Tools & Storage | $ | 327.2 | $ | 227.3 | $ | 191.7 | |||||
Industrial | 76.2 | 81.1 | 83.8 | ||||||||
Security | 39.0 | 38.6 | 35.9 | ||||||||
Consolidated | $ | 442.4 | $ | 347.0 | $ | 311.4 | |||||
Depreciation and Amortization | |||||||||||
Tools & Storage | $ | 271.9 | $ | 203.0 | $ | 196.5 | |||||
Industrial | 107.4 | 106.8 | 112.3 | ||||||||
Security | 81.4 | 98.2 | 105.2 | ||||||||
Consolidated | $ | 460.7 | $ | 408.0 | $ | 414.0 | |||||
Segment Assets | |||||||||||
Tools & Storage | $ | 12,800.2 | $ | 8,512.4 | $ | 8,492.9 | |||||
Industrial | 3,412.8 | 3,359.0 | 3,438.7 | ||||||||
Security | 3,406.9 | 3,139.0 | 3,741.6 | ||||||||
19,619.9 | 15,010.4 | 15,673.2 | |||||||||
Assets held for sale | — | 523.4 | — | ||||||||
Corporate assets | (540.0 | ) | 101.1 | (545.4 | ) | ||||||
Consolidated | $ | 19,079.9 | $ | 15,634.9 | $ | 15,127.8 |
(Millions of Dollars) | 2017 | 2016 | 2015 | ||||||||
Net Sales | |||||||||||
United States | $ | 6,915.7 | $ | 6,135.6 | $ | 5,882.0 | |||||
Canada | 577.8 | 515.3 | 516.3 | ||||||||
Other Americas | 774.4 | 635.6 | 706.5 | ||||||||
France | 609.0 | 582.7 | 595.7 | ||||||||
Other Europe | 2,742.0 | 2,468.6 | 2,371.5 | ||||||||
Asia | 1,128.3 | 1,069.1 | 1,099.8 | ||||||||
Consolidated | $ | 12,747.2 | $ | 11,406.9 | $ | 11,171.8 | |||||
Property, Plant & Equipment | |||||||||||
United States | $ | 850.2 | $ | 663.4 | $ | 676.0 | |||||
Canada | 30.0 | 29.3 | 19.1 | ||||||||
Other Americas | 111.2 | 95.8 | 82.6 | ||||||||
France | 65.1 | 57.5 | 64.8 | ||||||||
Other Europe | 378.0 | 322.3 | 328.4 | ||||||||
Asia | 308.0 | 282.9 | 279.3 | ||||||||
Consolidated | $ | 1,742.5 | $ | 1,451.2 | $ | 1,450.2 |
(Millions of Dollars) | 2017 | 2016 | |||||
Deferred tax liabilities: | |||||||
Depreciation | $ | 98.4 | $ | 108.7 | |||
Amortization of intangibles | 668.0 | 851.2 | |||||
Liability on undistributed foreign earnings | 4.9 | 260.7 | |||||
Deferred revenue | 24.6 | 27.3 | |||||
Other | 62.2 | 74.1 | |||||
Total deferred tax liabilities | $ | 858.1 | $ | 1,322.0 | |||
Deferred tax assets: | |||||||
Employee benefit plans | $ | 256.4 | $ | 362.5 | |||
Doubtful accounts and other customer allowances | 16.3 | 19.3 | |||||
Basis differences in liabilities | 84.5 | 110.4 | |||||
Operating loss, capital loss and tax credit carryforwards | 632.2 | 590.3 | |||||
Currency and derivatives | 48.5 | 45.1 | |||||
Other | 88.6 | 131.6 | |||||
Total deferred tax assets | $ | 1,126.5 | $ | 1,259.2 | |||
Net Deferred Tax Asset (Liability) before Valuation Allowance | $ | 268.4 | $ | (62.8 | ) | ||
Valuation allowance | $ | (516.7 | ) | $ | (525.5 | ) | |
Net Deferred Tax Liability after Valuation Allowance | $ | (248.3 | ) | $ | (588.3 | ) |
(Millions of Dollars) | 2017 | 2016 | 2015 | ||||||||
United States | $ | 714.1 | $ | 305.9 | $ | 405.5 | |||||
Foreign | 812.0 | 920.2 | 745.3 | ||||||||
Earnings from continuing operations before income taxes | $ | 1,526.1 | $ | 1,226.1 | $ | 1,150.8 |
(Millions of Dollars) | 2017 | 2016 | 2015 | ||||||||
Current: | |||||||||||
Federal | $ | 590.6 | $ | 84.8 | $ | 64.4 | |||||
Foreign | 224.6 | 191.5 | 171.4 | ||||||||
State | 25.4 | 10.6 | 14.1 | ||||||||
Total current | $ | 840.6 | $ | 286.9 | $ | 249.9 | |||||
Deferred: | |||||||||||
Federal | $ | (513.4 | ) | $ | 18.2 | $ | 64.2 | ||||
Foreign | (33.0 | ) | (26.1 | ) | (47.3 | ) | |||||
State | 6.3 | (17.8 | ) | (18.2 | ) | ||||||
Total deferred | (540.1 | ) | (25.7 | ) | (1.3 | ) | |||||
Income taxes on continuing operations | $ | 300.5 | $ | 261.2 | $ | 248.6 |
(Millions of Dollars) | 2017 | 2016 | 2015 | ||||||||
Tax at statutory rate | $ | 534.1 | $ | 429.1 | $ | 402.9 | |||||
State income taxes, net of federal benefits | 13.3 | 12.5 | 14.9 | ||||||||
Foreign tax rate differential | (149.0 | ) | (166.3 | ) | (166.9 | ) | |||||
Uncertain tax benefits | 64.4 | 32.0 | 43.9 | ||||||||
Tax audit settlements | (16.5 | ) | (10.5 | ) | 1.3 | ||||||
Change in valuation allowance | (5.4 | ) | 38.9 | (21.6 | ) | ||||||
Change in deferred tax liabilities on undistributed foreign earnings | (94.1 | ) | (38.7 | ) | (31.0 | ) | |||||
Basis difference for businesses Held for Sale | 27.9 | (27.9 | ) | — | |||||||
Stock-based compensation | (23.2 | ) | — | — | |||||||
Sale of businesses | (47.3 | ) | — | — | |||||||
U.S. Federal tax reform | 23.6 | — | — | ||||||||
Other-net | (27.3 | ) | (7.9 | ) | 5.1 | ||||||
Income taxes on continuing operations | $ | 300.5 | $ | 261.2 | $ | 248.6 |
(Millions of Dollars) | 2017 | 2016 | 2015 | ||||||||
Balance at beginning of year | $ | 309.8 | $ | 283.1 | $ | 280.8 | |||||
Additions based on tax positions related to current year | 34.6 | 14.9 | 23.2 | ||||||||
Additions based on tax positions related to prior years | 82.5 | 53.9 | 24.3 | ||||||||
Reductions based on tax positions related to prior years | (4.2 | ) | (34.2 | ) | (14.3 | ) | |||||
Settlements | (0.3 | ) | 5.4 | (21.5 | ) | ||||||
Statute of limitations expirations | (34.6 | ) | (13.3 | ) | (9.4 | ) | |||||
Balance at end of year | $ | 387.8 | $ | 309.8 | $ | 283.1 |
(Millions of Dollars) | Total | 2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | ||||||||||||||||||||
Operating lease obligations | $ | 473.3 | $ | 124.7 | $ | 96.2 | $ | 70.5 | $ | 53.3 | $ | 39.5 | $ | 89.1 | |||||||||||||
Marketing commitments | 50.5 | 30.9 | 17.7 | 1.9 | — | — | — | ||||||||||||||||||||
Total | $ | 523.8 | $ | 155.6 | $ | 113.9 | $ | 72.4 | $ | 53.3 | $ | 39.5 | $ | 89.1 |
(Millions of Dollars) | Term | Maximum Potential Payment | Carrying Amount of Liability | ||||||
Guarantees on the residual values of leased properties | One to four years | $ | 102.6 | $ | — | ||||
Standby letters of credit | Up to three years | 72.9 | — | ||||||
Commercial customer financing arrangements | Up to six years | 74.1 | 26.2 | ||||||
Total | $ | 249.6 | $ | 26.2 |
(Millions of Dollars) | 2017 | 2016 | 2015 | ||||||||
Balance beginning of period | $ | 103.4 | $ | 105.4 | $ | 109.6 | |||||
Warranties and guarantees issued | 105.3 | 97.2 | 91.8 | ||||||||
Liability assumed from acquisitions | 67.5 | — | — | ||||||||
Warranty payments and currency | (100.2 | ) | (99.2 | ) | (96.0 | ) | |||||
Balance end of period | $ | 176.0 | $ | 103.4 | $ | 105.4 |
(Millions of Dollars) | 2017 | 2016 | 2015 | ||||||||
Pre-tax income | $ | 7.0 | $ | 50.0 | $ | 33.3 |
(Millions of Dollars) | December 31, 2016 | ||
Accounts and notes receivable, net | $ | 35.3 | |
Inventories, net | 33.2 | ||
Property, Plant and Equipment, net | 52.3 | ||
Goodwill and other intangibles, net | 399.8 | ||
Other Assets | 2.8 | ||
Total assets | $ | 523.4 | |
Accounts payable and accrued expenses | $ | 38.0 | |
Other liabilities | 15.5 | ||
Total liabilities | $ | 53.5 |
(Millions of Dollars) | 2015 | ||
Net Sales | $ | 39.4 | |
Loss from discontinued operations before income taxes | (19.3 | ) | |
Income tax expense on discontinued operations | 0.8 | ||
Net loss from discontinued operations | $ | (20.1 | ) |
Quarter | ||||||||||||||||||||
(Millions of Dollars, except per share amounts) | First | Second | Third | Fourth | Year | |||||||||||||||
2017 | ||||||||||||||||||||
Net sales | $ | 2,805.6 | $ | 3,229.5 | $ | 3,298.6 | $ | 3,413.5 | $ | 12,747.2 | ||||||||||
Gross profit | 1,065.3 | 1,212.2 | 1,252.1 | 1,248.4 | 4,778.0 | |||||||||||||||
Selling, general and administrative (1) | 684.7 | 738.7 | 763.4 | 793.3 | 2,980.1 | |||||||||||||||
Earnings from continuing operations | 393.1 | 277.2 | 274.2 | 281.1 | 1,225.6 | |||||||||||||||
Less: Net loss attributable to non-controlling interest | — | — | — | (0.4 | ) | (0.4 | ) | |||||||||||||
Net Earnings Attributable to Common Shareowners | $ | 393.1 | $ | 277.2 | $ | 274.2 | $ | 281.5 | $ | 1,226.0 | ||||||||||
Basic earnings per common share | $ | 2.63 | $ | 1.85 | $ | 1.83 | $ | 1.88 | $ | 8.19 | ||||||||||
Diluted earnings per common share | $ | 2.59 | $ | 1.82 | $ | 1.80 | $ | 1.84 | $ | 8.04 | ||||||||||
2016 | ||||||||||||||||||||
Net sales | $ | 2,672.1 | $ | 2,932.4 | $ | 2,882.0 | $ | 2,920.4 | $ | 11,406.9 | ||||||||||
Gross profit | 977.6 | 1,128.9 | 1,084.1 | 1,076.6 | 4,267.2 | |||||||||||||||
Selling, general and administrative (1) | 627.8 | 666.9 | 645.4 | 683.8 | 2,623.9 | |||||||||||||||
Earnings from continuing operations | 188.6 | 271.5 | 249.0 | 255.8 | 964.9 | |||||||||||||||
Less: Net (loss) earnings attributable to non-controlling interest | (0.8 | ) | — | 0.1 | 0.3 | (0.4 | ) | |||||||||||||
Net Earnings Attributable to Common Shareowners | $ | 189.4 | $ | 271.5 | $ | 248.9 | $ | 255.5 | $ | 965.3 | ||||||||||
Basic earnings per common share | $ | 1.30 | $ | 1.87 | $ | 1.71 | $ | 1.74 | $ | 6.61 | ||||||||||
Diluted earnings per common share | $ | 1.28 | $ | 1.84 | $ | 1.68 | $ | 1.71 | $ | 6.51 |
Acquisition-Related Charges & Other | Diluted EPS Impact | |
• Q1 2017 — $211 million gain ($197 million after-tax) | $1.30 per diluted share | |
• Q2 2017 — $43 million loss ($29 million after-tax) | ($0.20) per diluted share | |
• Q3 2017 — $33 million loss ($24 million after-tax) | ($0.16) per diluted share | |
• Q4 2017 — $27 million loss ($53 million after-tax) | ($0.34) per diluted share |
3.1 | (a) | ||
(b) | |||
(c) | |||
(d) | |||
(e) | |||
(f) | |||
3.2 | (a) | ||
4.1 | (a) | ||
(b) | |||
4.2 | (a) | ||
(b) | |||
(c) | |||
(d) | |||
(e) | |||
4.3 | (a) | ||
(b) | |||
(c) | |||
(d) | |||
(e) | |||
(f) | |||
(g) | |||
(h) | |||
4.4 | |||
4.5 | |||
4.6 | |||
4.7 | |||
4.8 | |||
10.1 | (a) | ||
(b) | |||
10.2 | (a) | ||
(b) | |||
10.3 | |||
10.4 | |||
10.5 | |||
10.6 | |||
10.7 | |||
10.8 | |||
10.9 | |||
10.10 | (a) | ||
(b) | |||
10.11 | |||
10.12 | |||
10.13 | The Stanley Works Non-Employee Directors’ Benefit Trust Agreement dated December 27, 1989 and amended as of January 1, 1991 by and between The Stanley Works and Fleet National Bank, as successor trustee (incorporated by reference to Exhibit (10)(xvii)(a) to the Company’s Annual Report on Form 10-K for year ended December 29, 1990). P | ||
10.14 | (a) | ||
(b) | |||
10.15 | (a) | ||
(b) | |||
(c) | |||
(d) | |||
10.16 | (a) | ||
(b) | |||
(c) | |||
(d) | |||
(e) | |||
10.17 | (a) | ||
(b) | |||
10.18 | |||
10.19 | |||
10.20 | |||
10.21 | |||
10.22 | |||
10.23 | (a) | ||
(b) | |||
10.24 | |||
10.25 | |||
10.26 | |||
11 | |||
12 | |||
21 | |||
23 | |||
24 | |||
31.1 | (a) | ||
31.1 | (b) | ||
32.1 | |||
32.2 | |||
99.1 | Policy on Confidential Proxy Voting and Independent Tabulation and Inspection of Elections as adopted by The Board of Directors October 23, 1991 (incorporated by reference to Exhibit (28)(i) to the Quarterly Report on Form 10-Q for the quarter ended September 28, 1991). P | ||
* | Management contract or compensation plan or arrangement. |
P | Paper Filing |
Threshold | Target | Max | |
# PS | <NUMBER1> | <NUMBER2> | <NUMBER3> |
1. | Time and Manner of Settlement. As soon as practicable following completion of the applicable Measurement Period, and assuming that the Threshold Performance Goals are achieved and employment requirements are satisfied, the Company shall issue a number of Shares to the Participant, in settlement of the Participant’s Performance Award, equal to (i) the number of Shares specified in the Award Letter to be issued based upon the Performance Goals achieved plus (ii) in the event performance falls between the Threshold and Target or Target and Maximum Goals as specified in the Award Documents, a pro rata number of Shares calculated as follows (rounded to the closest whole number): |
2. | Vesting; form of settlement. Performance Awards will become vested on the Settlement Date to the extent that the applicable performance metrics have been achieved and, except as set forth below, provided that the participant is continuously employed by the Company until such time. Performance Awards will be settled in shares of Company common stock as soon as practicable following the end of the Measurement Period. Performance Awards will be settled in the form of Unrestricted Stock. |
3. | Rights of a Shareholder. The Participant shall not have any rights of a shareholder with respect to the Performance Awards or any Shares issued in settlement thereof prior to the Settlement Date. |
4. | Transferability. Transferability shall be as set forth in the Plan. |
5. | Adjustments. Notwithstanding any other provision hereof, the Committee shall have authority to make adjustments in the terms and conditions of, and the criteria included in, Performance Awards granted hereunder, as set forth in the Plan. |
6. | Miscellaneous. The Committee shall have full authority to administer the Performance Awards and to interpret the terms of the Award Documents, which authority includes the authority to waive certain conditions in |
7. | Unfunded Arrangement. The Performance Awards represented in the Award Documents constitute an unfunded unsecured promise of the Company and the rights of the Participant in respect of the Performance Awards are no greater than the rights of an unsecured creditor of the Company. |
8. | Capitalized Terms. The following capitalized terms shall have the meaning set forth below for purposes of this Letter. All other capitalized terms used in this document shall have the meanings set forth in the Plan. |
James M. Loree President & Chief Executive Officer Stanley Black & Decker 1000 Stanley Drive, New Britain, CT 06053 T (860) 827-3837 |
1. | Submission of completed Pre-Employment forms, including the Invention and Confidentiality Agreement; |
2. | Pre-employment drug screen; |
3. | Background check; |
4. | Evidence of your authorization to legally work in the U.S. in accordance with Immigration and Naturalization Act (Form I-9); |
5. | Return of the signed MICP Restrictive Covenant Agreement |
6. | Return of the signed Made in the USA Acknowledgment Agreement |
STANLEY BLACK & DECKER, INC. | ||
By: | /s/ Joseph R. Voelker | |
Name: | Joseph R. Voelker | |
Title: | Senior Vice President, Chief Human Resources Officer | |
____________________________________ | ||
EXECUTIVE | /s/ Janet M. Link | |
Address: | Janet M. Link | |
ive. New Britain, CT 06053 | ||
ive. New Britain, CT 06053 |
Fiscal Year | |||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Earnings from continuing operations before income taxes and non-controlling interest | $ | 1,526.1 | $ | 1,226.1 | $ | 1,150.8 | $ | 1,084.8 | $ | 587.6 | |||||||||
Add: | |||||||||||||||||||
Interest expense | 222.6 | 194.5 | 180.4 | 177.2 | 160.1 | ||||||||||||||
Portion of rents representative of interest factor | 14.8 | 12.6 | 12.0 | 13.6 | 14.6 | ||||||||||||||
Income as adjusted | $ | 1,763.5 | $ | 1,433.2 | $ | 1,343.2 | $ | 1,275.6 | $ | 762.3 | |||||||||
Fixed charges: | |||||||||||||||||||
Interest expense | $ | 222.6 | $ | 194.5 | $ | 180.4 | $ | 177.2 | $ | 160.1 | |||||||||
Portion of rents representative of interest factor | 14.8 | 12.6 | 12.0 | 13.6 | 14.6 | ||||||||||||||
Fixed charges | $ | 237.4 | $ | 207.1 | $ | 192.4 | $ | 190.8 | $ | 174.7 | |||||||||
Ratio of earnings to fixed charges | 7.4 | 6.9 | 7.0 | 6.7 | 4.4 |
Corporate Name | Jurisdiction of Incorporation/ Organization | |
Domestic Subsidiaries | United States | |
AeroScout LLC | Delaware | |
ASIA FASTENING (US), INC. | Delaware | |
AeroScout (US) LLC | Delaware | |
BD Abrasive LLC | Texas | |
B&D Holdings, Inc. | Maryland | |
BLACK & DECKER DE PANAMA LLC | Maryland | |
BLACK & DECKER HEALTHCARE MANAGEMENT INC. | Maryland | |
BLACK & DECKER INVESTMENTS (AUSTRALIA) LIMITED | Maryland | |
BLACK & DECKER SHELBYVILLE, LLC | Kentucky | |
BLACK & DECKER MEXFIN LLC | Delaware | |
BLACK & DECKER (IRELAND) INC. | Delaware | |
BLACK & DECKER INDIA INC. | Maryland | |
BLACK & DECKER HOLDINGS, LLC | Delaware | |
BLACK & DECKER INVESTMENTS LLC | Maryland | |
BLACK & DECKER INVESTMENT COMPANY, LLC | Delaware | |
BLACK & DECKER GROUP, LLC | Delaware | |
BLACK & DECKER FUNDING CORPORATION | Delaware | |
BLACK & DECKER PUERTO RICO INC. | Delaware | |
BLACK & DECKER (U.S.) INC. | Maryland | |
THE BLACK & DECKER CORPORATION | Maryland | |
BLACK & DECKER INC. | Delaware | |
DEVILBISS AIR POWER COMPANY | Delaware | |
DIYZ, LLC | Delaware | |
CRC-EVANS INTERNATIONAL HOLDINGS, INC. | Delaware | |
CRC-Evans International, Inc. | Delaware | |
CRC-Evans Pipeline International, Inc. | Delaware | |
CRC-EVANS WELDING SERVICES, INC. | Delaware | |
CLP2 GP, LLC | Delaware | |
Bostitch-Holding, L.L.C. | Delaware | |
Stanley Black & Decker Chile, L.L.C. | Delaware | |
Stanley Security Solutions, Inc. | Indiana | |
Stanley Atlantic Inc. | Delaware | |
Stanley Black & Decker Cayman Holdings, Inc. | Delaware | |
SecurityCo Solutions, Inc. | Delaware | |
Stanley Convergent Security Solutions, Inc. | Delaware | |
SBD Property Holdings, LLC | Delaware | |
SBD Insurance, Inc. | Connecticut | |
SBD CAYMAN LLC | Delaware | |
Stanley Access Technologies LLC | Delaware | |
SPIRALOCK CORPORATION | Michigan | |
Pacom Systems (North America) Inc. | Delaware | |
Sargent & Greenleaf, Inc. | Indiana | |
RIGHTCO II, LLC | Delaware |
Corporate Name | Jurisdiction of Incorporation/ Organization | |
Domestic Subsidiaries (continued) | United States | |
BDK FAUCET HOLDINGS INC. | Delaware | |
PIH U.S., Inc. | Delaware | |
PORTER-CABLE ARGENTINA, LLC | Minnesota | |
InfoLogix Systems Corporation | Delaware | |
Infologix, Inc. | Delaware | |
Infologix - DDMS, Inc. | Delaware | |
Irwin Industrial Tool Company | Delaware | |
JennCo1, Inc. | Delaware | |
JAFFORD LLC | Maryland | |
NEWFREY LLC | Delaware | |
Microalloying International, Inc. | Delaware | |
INFASTECH DECORAH, LLC | Delaware | |
EMHART HARTTUNG INC. | Delaware | |
EMHART TEKNOLOGIES LLC | Delaware | |
Hardware City Associates Limited Partnership | Connecticut | |
The Farmington River Power Company | Connecticut | |
Zag USA, Inc. | Delaware | |
Stanley Inspection US, L.L.C. | Alabama | |
Waterloo Industries, Inc. | Delaware | |
Waterloo Holdings, Inc. | Delaware | |
Stanley Canada Holdings, L.L.C. | Delaware | |
Stanley International Holdings, Inc. | Delaware | |
Stanley Inspection, L.L.C. | Delaware | |
Stanley Industrial & Automotive, LLC | Delaware | |
Stanley Housing Fund, Inc. | Delaware | |
Stanley Fastening Systems, L.P. | Delaware | |
Stanley Pipeline Inspection, L.L.C. | Delaware | |
Stanley Logistics, L.L.C. | Delaware | |
Stanley European Holdings, L.L.C. | Delaware | |
Stanley Black & Decker, Inc. | Connecticut | |
View Technologies, LLC | Delaware | |
TSI SALES & INSTALLATION LLC | Nevada | |
TSI MONITORING LLC | Nevada | |
Stanley Safety Corporation, LLC | Delaware |
Corporate Name | Jurisdiction of Incorporation/ Organization | |
International Subsidiaries (continued) | ||
PIPELINE EQUIPMENT AND SERVICES SARL | Algeria | |
BLACK & DECKER ARGENTINA S.A. | Argentina | |
Stanley Black & Decker Australia Pty Ltd. | Australia | |
BLACK & DECKER FINANCE (AUSTRALIA) LTD. | Australia | |
BLACK & DECKER HOLDINGS (AUSTRALIA) PTY. LTD. | Australia | |
BLACK & DECKER NO. 4 PTY. LTD. | Australia | |
INFASTECH (AUSTRALIA) PTY LIMITED | Australia | |
Pacom Systems Pty Limited | Australia | |
Powers Fasteners Australasia Pty Limited | Australia | |
Powers Fasteners Australasia Limited | Australia | |
Powers Rawl Pty. Ltd. | Australia | |
Rawl Australasia Pty. Ltd. | Australia | |
Rawlplug Unit Trust | Australia | |
Stanley Security Solutions Australia Pty Ltd | Australia | |
Stanley Black & Decker Holdings Australia Pty Ltd | Australia | |
The Stanley Works Pty. Ltd. | Australia | |
Stanley Black & Decker Austria GmbH | Austria | |
Stanley Black & Decker (Barbados) SRL | Barbados | |
A & E SECURITY NV | Belgium | |
ARGOS-SIGNALSON SECURITY SA | Belgium | |
Black & Decker Limited BVBA | Belgium | |
CONNEXCENTER SA | Belgium | |
ETAC ALARME SERVICES SECURITY SA | Belgium | |
ETAC GENT SA | Belgium | |
Facom Belgie BVBA | Belgium | |
JMD SECURITE SA | Belgium | |
Stanley Black & Decker Belgium BVBA | Belgium | |
Stanley Black & Decker Latin American Holding BVBA | Belgium | |
Stanley Black & Decker Logistics BVBA | Belgium | |
Stanley Europe BVBA | Belgium | |
Stanley Security Belgium BVBA | Belgium | |
Stanley Security Europe BVBA | Belgium | |
VAG SECURITY SYSTEMS SPRL | Belgium | |
BLACK & DECKER DO BRASIL LTDA. | Brazil | |
Irwin Industrial Tool Ferramentas do Brasil Ltda. | Brazil | |
M. HART DO BRASIL LTDA. | Brazil | |
BDB Ferramentas do Brasil Ltda | Brazil | |
REFAL INDUSTRIA E COMERCIO DE REBITES E REBITADEIRAS LTDA. | Brazil | |
SPIRALOCK DO BRASIL, LTDA. | Brazil | |
Microtec Enterprises Inc. | Canada | |
Mont-Hard (Canada) Inc. | Canada | |
Mac Tools Canada Inc. | Canada | |
Irwin Tools Canada ULC | Canada | |
First National AlarmCap. Trust | Canada | |
First National AlarmCap LP/Premiere Societe en Commandite Nationale Alarmcap | Canada | |
CRC-EVANS CANADA LTD. | Canada | |
Stanley CLP2 | Canada | |
Stanley CLP3 | Canada | |
Stanley Inspection Canada Ltd. | Canada | |
STANLEY BLACK & DECKER CANADA CORPORATION | Canada |
Corporate Name | Jurisdiction of Incorporation/ Organization | |
International Subsidiaries (continued) | ||
XMARK Corporation | Canada | |
WINTECH CORPORATION LIMITED | Cayman Islands | |
BLACK & DECKER MANUFACTURING, DISTRIBUTION & GLOBAL PURCHASING HOLDINGS LP | Cayman Islands | |
Chiro (Cayman) Holdings Ltd. | Cayman Islands | |
Besco Investment Group Co. Ltd. | Cayman Islands | |
JOINTECH CORPORATION, LTD. | Cayman Islands | |
SBD HOLDINGS CAYMAN, LP | Cayman Islands | |
MAQUINAS y HERRAMIENTAS BLACK & DECKER de CHILE S.A. | Chile | |
DISTRIBUIDORA PORTER CABLE LIMITADA | Chile | |
BLACK & DECKER (SUZHOU) PRECISION MANUFACTURING CO., LTD. | China | |
BLACK & DECKER (SUZHOU) POWER TOOLS CO., LTD. | China | |
BLACK & DECKER SSC CO., LTD. | China | |
BLACK & DECKER (SUZHOU) CO., LTD. | China | |
Besco Machinery Industry (Zhejiang) Co., Ltd. | China | |
ANZI MASTERFIX TOOL LIMITED LIABILITY COMPANY | China | |
Jiangsu Guoqiang Tools Co., Ltd. | China | |
Newell Rubbermaid Products (Shenzhen) Co. Ltd. | China | |
GUANGZHOU EMHART FASTENING SYSTEM CO., LTD. | China | |
INFASTECH FASTENING SYSTEMS (WUXI) LIMITED | China | |
Hefei INTACA Science & Technology Development Co., Ltd. | China | |
INFASTECH (SHENZHEN) LIMITED | China | |
Powers Shanghai Trading Ltd. | China | |
Yong Ru Plastics Industry (Suzhou) Co., Ltd | China | |
Shanghai Emhart Fastening System Co., Ltd. | China | |
Stanley Black & Decker Precision Manufacturing (Shenzhen) Co., Ltd. | China | |
The Stanley Works (Shanghai) Co., Ltd. | China | |
The Stanley Works (Shanghai) Management Co., Ltd. | China | |
Stanley Works (Wendeng) Tools Co., Ltd. | China | |
The Stanley Works (Zhejiang) Industrial Tools Co., Ltd. | China | |
The Stanley Works (Zhongshan) Tool Co., Ltd. | China | |
The Stanley Works (Langfang) Fastening Systems Co., Ltd. | China | |
Stanley Black & Decker Colombia Services S.A.S. | Colombia | |
Black & Decker de Colombia S.A.S. | Colombia | |
BLACK AND DECKER DE COSTA RICA LIMITADA | Costa Rica | |
Stanley Black & Decker Czech Republic s.r.o. | Czech Republic | |
Black & Decker (Czech) s.r.o. | Czech Republic | |
TUCKER S.R.O. | Czech Republic | |
EMHART HARTTUNG A/S | Denmark | |
Stanley Security Denmark ApS | Denmark | |
BLACK & DECKER DEL ECUADOR S.A. | Ecuador | |
Stanley Black & Decker Finland Oy | Finland | |
Stanley Security Oy | Finland | |
Avdel France SAS | France | |
BGI Distribution SAS | France | |
BLACK & DECKER FINANCE SAS | France | |
Dubuis et Cie SAS | France | |
EMHART FASTENING & ASSEMBLY SNC | France | |
Facom Holding SAS | France | |
Novia SWK SAS | France |
Corporate Name | Jurisdiction of Incorporation/ Organization | |
International Subsidiaries (continued) | ||
Pro One Finance SAS | France | |
SOCIETE MINIERE ET COMMERCIALE SAS | France | |
STANLEY BLACK & DECKER FRANCE SAS | France | |
Stanley Black & Decker France Services SAS | France | |
Stanley Black & Decker Manufacturing SAS | France | |
Stanley Healthcare Solutions France Sàrl | France | |
Stanley Security France SAS | France | |
Stanley Tools SAS | France | |
Avdel Deutschland GmbH | Germany | |
B.B.W. BAYRISCHE BOHRERWERKE G.m.b.H. | Germany | |
Black & Decker Holdings GmbH | Germany | |
BLACK & DECKER INTERNATIONAL HOLDINGS B.V. & CO. KG | Germany | |
Horst Sprenger GmbH recycling-tools | Germany | |
SETEC Vertriebsgesellschaft fr Brand- und Einbruchmeldesysteme mbH | Germany | |
Stanley Black & Decker Deutschland GmbH | Germany | |
Stanley Grundstuecksverwaltungs GmbH | Germany | |
Stanley Security Deutschland Administration GmbH | Germany | |
Stanley Security Deutschland GmbH | Germany | |
Stanley Security Deutschland Holding GmbH | Germany | |
TUCKER GmbH | Germany | |
STANLEY BLACK & DECKER (HELLAS) EPE | Greece | |
BLACK & DECKER HONG KONG LIMITED | Hong Kong | |
AVDEL HOLDINGS (HONG KONG) LIMITED | Hong Kong | |
BDC INTERNATIONAL LIMITED | Hong Kong | |
SPIRALOCK GLOBAL VENTURES, LIMITED | Hong Kong | |
Stanley Black & Decker Limited | Hong Kong | |
Niscayah Investments Limited | Hong Kong | |
Niscayah Asia Limited | Hong Kong | |
INFASTECH COMPANY LIMITED | Hong Kong | |
INFASTECH (CHINA) LIMITED | Hong Kong | |
HANGTECH LIMITED | Hong Kong | |
EMHART GUANGZHOU (HONG KONG) LIMITED | Hong Kong | |
STANLEY BLACK & DECKER HUNGARY KORALTOLT FELELOSSEGU TARSASAG | Hungary | |
Stanley Finance Hungary Group Financing Limited Liability Company | Hungary | |
Stanley Works (India) Private Limited | India | |
Stanley Black & Decker India Private Limited | India | |
Stanley Engineered Fastening India Private Limited | India | |
STANLEY SECURITY SOLUTIONS INDIA PRIVATE LIMITED | India | |
Lenox India Private Limited | India | |
PT STANLEY BLACK & DECKER | Indonesia | |
Stanley Black & Decker International Finance 3 Unlimited Company | Ireland | |
Stanley Security Limited | Ireland | |
SBD European Investment Unlimited Company | Ireland | |
SBD European Security Investment Unlimited Company | Ireland | |
SBD European Security International Unlimited Company | Ireland | |
Gamrie Designated Activity Company | Ireland | |
Baltimore Financial Services Company Unlimited Company | Ireland | |
Baltimore Insurance Designated Activity Company | Ireland | |
Belco Investments Company Unlimited Company | Ireland |
Corporate Name | Jurisdiction of Incorporation/ Organization | |
International Subsidiaries (continued) | ||
Black & Decker International Finance 1 Unlimited Company | Ireland | |
Black & Decker International Finance 3 Designated Activity Company | Ireland | |
Stanley Black & Decker Ireland Unlimited Company | Ireland | |
Chesapeake Falls Holdings Company Unlimited Company | Ireland | |
Stanley Black & Decker International Finance 2 Unlimited Company | Ireland | |
Stanley Black & Decker International Finance 4 Unlimited Company | Ireland | |
Stanley Black & Decker International Finance 5 Unlimited Company | Ireland | |
Stanley Black & Decker Latin American Investment Unlimited Company | Ireland | |
Stanley Black & Decker Finance Unlimited Company | Ireland | |
The Stanley Works Israel Ltd. | Israel | |
AeroScout Ltd. | Israel | |
Avdel Italia S.r.l. | Italy | |
DeWALT INDUSTRIAL TOOLS S.p.A. | Italy | |
Stanley Black & Decker Italia S.r.l. | Italy | |
SWK Utensilerie S.r.l. | Italy | |
Stanley Black & Decker Italy Production S.r.l. | Italy | |
NIPPON POP RIVETS & FASTENERS, LTD. | Japan | |
INFASTECH (KOREA) LIMITED | Korea, Republic of | |
BLACK & DECKER (OVERSEAS) GmbH | Liechtenstein | |
BLACK & DECKER LUXEMBOURG FINANCE S.C.A. | Luxembourg | |
Asia Fastening (Cayman) S.à r.l. | Luxembourg | |
BLACK & DECKER ASIA MANUFACTURING HOLDINGS 1 S.à.r.l. | Luxembourg | |
BLACK & DECKER ASIA MANUFACTURING HOLDINGS 2 S.à.r.l. | Luxembourg | |
BLACK & DECKER GLOBAL HOLDINGS S.à.r.l. | Luxembourg | |
BLACK & DECKER INTERNATIONAL HOLDINGS S.A.R.L. | Luxembourg | |
Black & Decker International finance 3 | Luxembourg | |
BLACK & DECKER LUXEMBOURG S.A.R.L. | Luxembourg | |
BLACK & DECKER TRANSASIA S.à.r.l. | Luxembourg | |
CHESAPEAKE INVESTMENTS COMPANY S.A.R.L. | Luxembourg | |
Infastech S.à r.l. | Luxembourg | |
SBD European Security Holdings S.à r.l. | Luxembourg | |
SBD MDGP Partnership Holdings S.à r.l. | Luxembourg | |
SBD Niscayah S.à r.l. | Luxembourg | |
Stanley Black & Decker Holdings S.à r.l. | Luxembourg | |
Stanley Black & Decker Partnership Japan | Luxembourg | |
Stanley Black & Decker Partnership Japan Holdings S.à r.l. | Luxembourg | |
Black & Decker International Finance 3 Designated Activity Company | Luxembourg | |
BLACK & DECKER MACAO COMMERCIAL OFFSHORE LIMITED | Macao | |
BLACK & DECKER ASIA PACIFIC (MALAYSIA) SDN. BHD. | Malaysia | |
CRC-Evans Pipeline International Sdn.Bhd. | Malaysia | |
INFASTECH (LABUAN) LIMITED | Malaysia | |
Infastech (Malaysia) Sdn Bhd | Malaysia | |
Stanley Security Malaysia Sdn. Bhd. | Malaysia | |
INFASTECH HOLDINGS (Malaysia) Sdn Bhd | Malaysia | |
INFASTECH CAMCAR MALAYSIA SDN BHD | Malaysia | |
Stanley Works (Malaysia) SDN BHD | Malaysia | |
Infastech (Mauritius) Limited | Mauritius | |
Herramientas Stanley S.A. de C.V. | Mexico | |
GRUPO BLACK & DECKER MEXICO, S. DE R.L. DE C.V. | Mexico | |
DEWALT INDUSTRIAL TOOLS, S.A. DE C.V. | Mexico |
Corporate Name | Jurisdiction of Incorporation/ Organization | |
International Subsidiaries (continued) | ||
BLACK & DECKER DE REYNOSA, S. DE R.L. DE C.V. | Mexico | |
BLACK AND DECKER, S.A. de C.V. | Mexico | |
Stanley-Bostitch Servicios S. de R.L. de C.V. | Mexico | |
Stanley-Bostitch, S.A. de C.V. | Mexico | |
BLACK & DECKER FAR EAST HOLDINGS B.V. | Netherlands | |
Black & Decker Hardware Holdings B.V. | Netherlands | |
BLACK & DECKER HOLDINGS B.V. | Netherlands | |
Chiro Tools Holdings B.V. | Netherlands | |
CRC-Evans B.V. | Netherlands | |
ELU B.V. | Netherlands | |
Stanley European Holdings B.V. | Netherlands | |
Stanley European Holdings II B.V. | Netherlands | |
Stanley Israel Investments B.V. | Netherlands | |
Stanley Works Holdings B.V. | Netherlands | |
Stichting Beheer Intellectuele Eigendomsrechten Blick Benelux B.V. | Netherlands | |
Emhart Teknologies B.V. | Netherlands | |
INTERFAST B.V. | Netherlands | |
Stanley Black & Decker Asian Holdings B.V. | Netherlands | |
Stanley Black & Decker Netherlands B.V. | Netherlands | |
Stanley Security Alarmcentrale B.V. | Netherlands | |
Stanley Security Nederland B.V. | Netherlands | |
Totaal Beveiligingen B.V. | Netherlands | |
Stanley Black & Decker NZ Limited | New Zealand | |
Stanley Black & Decker Norway AS | Norway | |
Stanley Security Holding AS | Norway | |
Stanley Security AS | Norway | |
PIH Services ME LLC | Oman | |
POWERS FASTENERS INC.(Panama) | Panama | |
Emhart Panama, S. de R.L. | Panama | |
SBD Panama Investments LLC | Panama | |
BLACK & DECKER DE PANAMA, S. de R.L. | Panama | |
SBD Panama LLC | Panama | |
BLACK & DECKER DEL PERU S.A. | Peru | |
Stanley Black & Decker Polska Sp. z o.o. | Poland | |
MASTERFIX POLAND LTD. SP.Z O.O. | Poland | |
Stanley Fastening Systems Poland Sp. z o.o. | Poland | |
Stanley Security Portugal, Unipessoal, Lda | Portugal | |
PIH Services ME Ltd. | Qatar | |
Stanley Black & Decker Romania SRL | Romania | |
Stanley Black & Decker Limited Liability Company | Russian Federation | |
Onglin International Limited | Samoa | |
Stanley Security Singapore Pte. Ltd. | Singapore | |
INFASTECH INTELLECTUAL PROPERTIES PTE. LTD. | Singapore | |
INFASTECH RECEIVABLES COMPANY PTE. LTD. | Singapore | |
BLACK & DECKER ASIA PACIFIC PTE. LTD. | Singapore | |
Aeroscout (Singapore) Pte. Ltd. | Singapore | |
Stanley Works Asia Pacific Pte. Ltd. | Singapore | |
VISIOCOM INTERNATIONAL PTE LTD | Singapore | |
Stanley Black & Decker Slovakia s.r.o. | Slovakia | |
COOPERHEAT OF AFRICA (PTY) LTD | South Africa |
Corporate Name | Jurisdiction of Incorporation/ Organization | |
International Subsidiaries (continued) | ||
DE-TECT UNIT INSPECTION (PTY) LTD | South Africa | |
UNIT INSPECTION PROPERTY (PTY) LTD | South Africa | |
Stanley Unit Inspection (Pty) Limited | South Africa | |
Pacom Systems España, S.L. | Spain | |
STANLEY BLACK & DECKER IBERICA, S.L. | Spain | |
Avdel Spain, S.L. | Spain | |
Stanley Black & Decker Sweden AB | Sweden | |
Pacom Group AB | Sweden | |
Niscayah Teknik AB | Sweden | |
Niscayah Group AB | Sweden | |
SBD Holding AB | Sweden | |
Stanley Security Sverige AB | Sweden | |
EMHART GmbH | Switzerland | |
Sargent & Greenleaf S.A. | Switzerland | |
Stanley Black & Decker Sales GmbH | Switzerland | |
Stanley Black & Decker Holding GmbH | Switzerland | |
Stanley Security Switzerland Sàrl | Switzerland | |
Stanley Works (Europe) GmbH | Switzerland | |
Stanley Chiro International Ltd | Taiwan | |
Stanley Fastening Systems Investment (Taiwan) Co. | Taiwan | |
Fastener Jamher Taiwan Inc. | Taiwan | |
Besco Pneumatic Corporation | Taiwan | |
BLACK & DECKER (THAILAND) LIMITED | Thailand | |
EMHART TEKNOLOGIES (THAILAND) LTD. | Thailand | |
INFASTECH THAI COMPANY LIMITED | Thailand | |
Stanley Works Limited | Thailand | |
Stanley Black & Decker Turkey Alet Uretim, Sanayi ve Ticaret Limited Sirketi | Turkey | |
Stanley Black & Decker Middle East Trading FZE | United Arab Emirates | |
Stanley Black & Decker MEA FZE | United Arab Emirates | |
Alkhaja Pimex LLC | United Arab Emirates | |
Aven Tools Limited | United Kingdom | |
Avdel Holding Limited | United Kingdom | |
BLACK & DECKER INTERNATIONAL FINANCE (UK) LIMITED | United Kingdom | |
Black & Decker Europe | United Kingdom | |
BLACK & DECKER FINANCE | United Kingdom | |
Stanley Black & Decker UK Limited | United Kingdom | |
BLACK & DECKER INTERNATIONAL FINANCE HOLDINGS (UK) LIMITED | United Kingdom | |
DEWALT INDUSTRIAL POWER TOOL COMPANY LTD. | United Kingdom | |
ELU POWER TOOLS LTD | United Kingdom | |
CRC-Evans Offshore Limited | United Kingdom | |
PIH Holdings Limited | United Kingdom | |
PIH Services Limited | United Kingdom | |
Pipeline Induction Heat Limited | United Kingdom | |
Niscayah Holdings Limited | United Kingdom | |
Emhart International Limited | United Kingdom | |
Stanley Security Solutions - Europe Limited | United Kingdom | |
Stanley Security Solutions Limited | United Kingdom | |
SWK (UK) Limited | United Kingdom | |
SWK (U.K.) Holding Limited | United Kingdom | |
Universal Inspection Systems Limited | United Kingdom |
Corporate Name | Jurisdiction of Incorporation/ Organization | |
International Subsidiaries (continued) | ||
Tucker Fasteners Limited | United Kingdom | |
The Stanley Works Limited | United Kingdom | |
Stanley Security Solutions (NI) Limited | United Kingdom | |
Stanley UK Acquisition Company Limited | United Kingdom | |
Stanley U.K. Holding Ltd. | United Kingdom | |
Stanley UK Services Limited | United Kingdom | |
Stanley Black & Decker Finance Limited | United Kingdom | |
Christie Intruder Alarms Limited | United Kingdom | |
Southern Monitoring Services Limited | United Kingdom | |
BLACK & DECKER HOLDINGS DE VENEZUELA, C.A. | Venezuela | |
BLACK & DECKER DE VENEZUELA, C.A. | Venezuela | |
Besco Investment Holdings Ltd. | Virgin Islands, British | |
PIH Services ME Ltd. | Virgin Islands, British | |
INFASTECH/TRI-STAR LIMITED | Virgin Islands, British | |
Stanley Works China Investments Limited | Virgin Islands, British |
• | Registration Statement (Form S-8 No. 2-93025) |
• | Registration Statement (Form S-8 No. 2-96778) |
• | Registration Statement (Form S-8 No. 2-97283) |
• | Registration Statement (Form S-8 No. 33-16669) |
• | Registration Statement (Form S-8 No. 33-55663) |
• | Registration Statement (Form S-8 No. 33-62565) |
• | Registration Statement (Form S-8 No. 33-62575) |
• | Registration Statement (Form S-8 No. 333-42346) |
• | Registration Statement (Form S-8 No. 333-42582) |
• | Registration Statement (Form S-8 No. 333-64326) |
• | Registration Statement (Form S-8 No. 333-162956) |
• | Registration Statement (Form S-4 No. 333-163509) |
• | Registration Statement (Form S-8 No. 333-165454) |
• | Registration Statement (Form S-8 No. 333-179699) |
• | Registration Statement (Form S-8 No. 333-190267) |
• | Registration Statement (Form S-8 No. 333-219984) |
Signature | Title | Date | |||
/s/ James M. Loree | President and Chief Executive Officer, Director | February 27, 2018 | |||
James M. Loree | |||||
/s/ Andrea J. Ayers | Director | February 27, 2018 | |||
Andrea J. Ayers | |||||
/s/ George W. Buckley | Director | February 27, 2018 | |||
George W. Buckley | |||||
/s/ Patrick D. Campbell | Director | February 27, 2018 | |||
Patrick D. Campbell | |||||
/s/ Carlos M. Cardoso | Director | February 27, 2018 | |||
Carlos M. Cardoso | |||||
/s/ Robert B. Coutts | Director | February 27, 2018 | |||
Robert B. Coutts | |||||
/s/ Debra A. Crew | Director | February 27, 2018 | |||
Debra A. Crew | |||||
/s/ Michael D. Hankin | Director | February 27, 2018 | |||
Michael D. Hankin | |||||
/s/ Marianne M. Parrs | Director | February 27, 2018 | |||
Marianne M. Parrs | |||||
/s/ Robert L. Ryan | Director | February 27, 2018 | |||
Robert L. Ryan | |||||
/s/ James H. Scholefield | Director | February 27, 2018 | |||
James H. Scholefield | |||||
/s/ James M. Loree | ||
Date: | February 27, 2018 | James M. Loree |
President and Chief Executive Officer |
/s/ Donald Allan Jr. | ||
Date: | February 27, 2018 | Donald Allan Jr. |
Executive Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ James M. Loree |
James M. Loree |
President and Chief Executive Officer |
February 27, 2018 |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Donald Allan Jr. |
Donald Allan Jr. |
Executive Vice President and Chief Financial Officer |
February 27, 2018 |
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MO2CAN([
Document and Entity Information - USD ($) |
12 Months Ended | ||
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Dec. 30, 2017 |
Feb. 22, 2018 |
Jun. 30, 2017 |
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Document and Entity Information [Abstract] | |||
Entity Registrant Name | STANLEY BLACK & DECKER, INC. | ||
Trading Symbol | SWK | ||
Entity Central Index Key | 0000093556 | ||
Current Fiscal Year End Date | --12-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 30, 2017 | ||
Document Fiscal Year Focus | 2017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 154,111,483 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 21,600,000,000 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
12 Months Ended | ||
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Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
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Net Earnings Attributable to Common Shareowners | $ 1,226.0 | $ 965.3 | $ 883.7 |
Other comprehensive (loss) income: | |||
Currency translation adjustment and other | 481.3 | (285.4) | (504.1) |
Unrealized gains (losses) on cash flow hedges, net of tax | (66.3) | 5.8 | (1.2) |
Gain (Loss) on Derivative Used in Net Investment Hedge, Net of Tax | (85.2) | 76.8 | 49.0 |
Pension losses, net of tax | 5.5 | (24.2) | 32.3 |
Other Comprehensive Income (Loss), Net of Tax | 335.3 | (227.0) | (424.0) |
Comprehensive (loss) income attributable to common shareowners | $ 1,561.3 | $ 738.3 | $ 459.7 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 30, 2017 |
Dec. 31, 2016 |
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Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares unissued | 9,250,000 | 10,000,000 |
Common Stock, Par or Stated Value Per Share | $ 2.5 | $ 2.5 |
Common Stock, Shares Authorized | 300,000,000 | 300,000,000 |
Common Stock, Shares, Issued | 176,902,738 | 176,902,738 |
Cost of common stock in treasury, shares | 22,864,707 | 22,958,447 |
Consolidated Statements of Changes in Shareowners' Equity (Parenthetical) - $ / shares |
12 Months Ended | ||
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Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
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Cash dividends declared, (USD per share) | $ 2.42 | $ 2.26 | $ 2.14 |
Treasury Stock, Shares, Acquired | 3,940,087 | 9,227,564 | |
Stock Repurchased During Period, Shares | 202,075 | 4,651,463 | 9,227,564 |
Schedule II - Valuation and Qualifying Accounts |
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Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | Schedule II — Valuation and Qualifying Accounts Stanley Black & Decker, Inc. and Subsidiaries Fiscal years ended December 30, 2017, December 31, 2016, and January 2, 2016 (Millions of Dollars)
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SIGNIFICANT ACCOUNTING POLICIES |
12 Months Ended | |||||||||||||||||||||
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Dec. 30, 2017 | ||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION — The Consolidated Financial Statements include the accounts of Stanley Black & Decker, Inc. and its majority-owned subsidiaries (collectively the “Company”) which require consolidation, after the elimination of intercompany accounts and transactions. The Company’s fiscal year ends on the Saturday nearest to December 31. There were 52 weeks in each of the fiscal years 2017, 2016 and 2015. In the first quarter of 2017, the Company sold the majority of its mechanical security businesses within the Security segment, which included the commercial hardware brands of Best Access, phi Precision and GMT, and sold a small business within the Tools & Storage segment. The Company also sold a small business in the Industrial segment in the third quarter of 2017 and a small business in the Tools & Storage segment in the fourth quarter of 2017. The operating results of these businesses have been reported within continuing operations in the Consolidated Financial Statements through their respective dates of sale in 2017 and for the year ended December 31, 2016. In addition, the assets and liabilities related to the businesses sold in the first quarter of 2017 were classified as held for sale on the Company's Consolidated Balance Sheets as of December 31, 2016. Refer to Note T, Divestitures, for further discussion. In March 2017, the Company acquired the Tools business of Newell Brands ("Newell Tools") and the Craftsman brand, which are both being accounted for as business combinations. The results of these acquisitions are being consolidated into the Company's Tools & Storage segment. Refer to Note E, Acquisitions, for further discussion. During the fourth quarter of 2014, the Company classified the Security segment’s Spain and Italy operations as held for sale based on management's intention to sell these businesses. In July 2015, the Company completed the sale of these businesses. The operating results of these businesses have been reported as discontinued operations through the date of sale in the Consolidated Financial Statements. Refer to Note T, Divestitures, for further discussion. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements. While management believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from these estimates. Certain amounts reported in previous years have been reclassified to conform to the 2017 presentation. FOREIGN CURRENCY — For foreign operations with functional currencies other than the U.S. dollar, asset and liability accounts are translated at current exchange rates, while income and expenses are translated using average exchange rates. Translation adjustments are reported in a separate component of shareowners’ equity and exchange gains and losses on transactions are included in earnings. CASH EQUIVALENTS — Highly liquid investments with original maturities of three months or less are considered cash equivalents. ACCOUNTS AND FINANCING RECEIVABLE — Trade receivables are stated at gross invoice amounts less discounts, other allowances and provisions for uncollectible accounts. Financing receivables are initially recorded at fair value, less impairments or provisions for credit losses. Interest income earned from financing receivables that are not delinquent is recorded on the effective interest method. The Company considers any financing receivable that has not been collected within 90 days of original billing date as past-due or delinquent. Additionally, the Company considers the credit quality of all past-due or delinquent financing receivables as nonperforming. ALLOWANCE FOR DOUBTFUL ACCOUNTS — The Company estimates its allowance for doubtful accounts using two methods. First, a specific reserve is established for individual accounts where information indicates the customers may have an inability to meet financial obligations. Second, a reserve is determined for all customers based on a range of percentages applied to aging categories. These percentages are based on historical collection and write-off experience. Actual write-offs are charged against the allowance when collection efforts have been unsuccessful. INVENTORIES — U.S. inventories are primarily valued at the lower of Last-In First-Out (“LIFO”) cost or market because the Company believes it results in better matching of costs and revenues. Other inventories are primarily valued at the lower of First-In, First-Out (“FIFO”) cost and net realizable value because LIFO is not permitted for statutory reporting outside the U.S. See Note C, Inventories, for a quantification of the LIFO impact on inventory valuation. PROPERTY, PLANT AND EQUIPMENT — The Company generally values property, plant and equipment (“PP&E”), including capitalized software, at historical cost less accumulated depreciation and amortization. Costs related to maintenance and repairs which do not prolong the asset's useful life are expensed as incurred. Depreciation and amortization are provided using straight-line methods over the estimated useful lives of the assets as follows:
Leasehold improvements are depreciated over the shorter of the estimated useful life or the term of the lease. The Company reports depreciation and amortization of property, plant and equipment in cost of sales and selling, general and administrative expenses based on the nature of the underlying assets. Depreciation and amortization related to the production of inventory and delivery of services are recorded in cost of sales. Depreciation and amortization related to distribution center activities, selling and support functions are reported in selling, general and administrative expenses. The Company assesses its long-lived assets for impairment when indicators that the carrying amounts may not be recoverable are present. In assessing long-lived assets for impairment, the Company groups its long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are generated (“asset group”) and estimates the undiscounted future cash flows that are directly associated with, and expected to be generated from, the use of and eventual disposition of the asset group. If the carrying value is greater than the undiscounted cash flows, an impairment loss must be determined and the asset group is written down to fair value. The impairment loss is quantified by comparing the carrying amount of the asset group to the estimated fair value, which is determined using weighted-average discounted cash flows that consider various possible outcomes for the disposition of the asset group. GOODWILL AND INTANGIBLE ASSETS — Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Intangible assets acquired are recorded at estimated fair value. Goodwill and intangible assets deemed to have indefinite lives are not amortized, but are tested for impairment annually during the third quarter, and at any time when events suggest an impairment more likely than not has occurred. To assess goodwill for impairment, the Company, depending on relevant facts and circumstances, performs either a qualitative assessment, as permitted by Accounting Standards Update ("ASU") 2011-08, Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for Impairment, or a quantitative analysis utilizing a discounted cash flow valuation model. In performing a qualitative assessment, the Company first assesses relevant factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step quantitative goodwill impairment test. The Company identifies and considers the significance of relevant key factors, events, and circumstances that could affect the fair value of each reporting unit. These factors include external factors such as macroeconomic, industry, and market conditions, as well as entity-specific factors, such as actual and planned financial performance. The Company also considers changes in each reporting unit's fair value and carrying amount since the most recent date a fair value measurement was performed. In performing a quantitative analysis, the Company determines the fair value of a reporting unit using management’s assumptions about future cash flows based on long-range strategic plans. This approach incorporates many assumptions including discount rates, future growth rates and expected profitability. In the event the carrying amount of a reporting unit exceeded its fair value, an impairment loss would be recognized to the extent the carrying amount of the reporting unit’s goodwill exceeded the implied fair value of the goodwill. Indefinite-lived intangible assets are tested for impairment utilizing either a qualitative assessment or a quantitative analysis. For the qualitative assessments, the Company identifies and considers relevant key factors, events, and circumstances to determine whether it is necessary to perform a quantitative impairment test. The key factors considered include macroeconomic, industry, and market conditions, as well as the asset's actual and forecasted results. For the quantitative impairment tests, the Company compares the carrying amounts to the current fair market values, usually determined by the estimated cost to lease the assets from third parties. Intangible assets with definite lives are amortized over their estimated useful lives generally using an accelerated method. Under this accelerated method, intangible assets are amortized reflecting the pattern over which the economic benefits of the intangible assets are consumed. Definite-lived intangible assets are also evaluated for impairment when impairment indicators are present. If the carrying amount exceeds the total undiscounted future cash flows, a discounted cash flow analysis is performed to determine the fair value of the asset. If the carrying amount of the asset was to exceed the fair value, it would be written down to fair value. No significant goodwill or other intangible asset impairments were recorded during 2017, 2016 or 2015. FINANCIAL INSTRUMENTS — Derivative financial instruments are employed to manage risks, including foreign currency, interest rate exposures and commodity prices and are not used for trading or speculative purposes. The Company recognizes all derivative instruments, such as interest rate swap agreements, foreign currency options, commodity contracts and foreign exchange contracts, in the Consolidated Balance Sheets at fair value. Changes in the fair value of derivatives are recognized periodically either in earnings or in shareowners’ equity as a component of other comprehensive income (loss), depending on whether the derivative financial instrument is undesignated or qualifies for hedge accounting, and if so, whether it represents a fair value, cash flow, or net investment hedge. Changes in the fair value of derivatives accounted for as fair value hedges are recorded in earnings in the same caption as the changes in the fair value of the hedged items. Gains and losses on derivatives designated as cash flow hedges, to the extent they are effective, are recorded in other comprehensive income (loss), and subsequently reclassified to earnings to offset the impact of the hedged items when they occur. In the event it becomes probable the forecasted transaction to which a cash flow hedge relates will not occur, the derivative would be terminated and the amount in other comprehensive income (loss) would generally be recognized in earnings. Changes in the fair value of derivatives used as hedges of the net investment in foreign operations, to the extent they are effective, are reported in other comprehensive income (loss) and are deferred until the subsidiary is sold. Changes in the fair value of derivatives designated as hedges under Accounting Standards Codification ("ASC") 815, Derivatives and Hedging, including any portion that is considered ineffective, are reported in earnings in the same caption where the hedged items are recognized. Changes in the fair value of derivatives not designated as hedges under ASC 815 are reported in earnings in Other, net. Refer to Note I, Financial Instruments, for further discussion. The net interest paid or received on interest rate swaps is recognized as interest expense. Gains and losses resulting from the early termination of interest rate swap agreements are deferred and amortized as adjustments to interest expense over the remaining period of the debt originally covered by the terminated swap. REVENUE RECOGNITION — General: The majority of the Company’s revenues result from the sale of tangible products, where revenue is recognized when the earnings process is complete, collectability is reasonably assured, and the risks and rewards of ownership have transferred to the customer, which generally occurs upon shipment of the finished product, but sometimes is upon delivery to customer facilities. Provisions for customer volume rebates, product returns, discounts and allowances are recorded as a reduction of revenue in the same period the related sales are recorded. Consideration given to customers for cooperative advertising is recognized as a reduction of revenue except to the extent that there is an identifiable benefit and evidence of the fair value of the advertising, in which case the expense is classified as selling, general, and administrative expense. Multiple-Element Arrangements: Approximately seven percent of the Company’s revenues are generated from multiple-element arrangements, primarily in the Security segment. When a sales agreement involves multiple elements, deliverables are separately identified and consideration is allocated based on their relative selling price in accordance with ASC 605-25, Revenue Recognition — Multiple-Element Arrangements. Sales of security monitoring systems may have multiple elements, including equipment, installation and monitoring services. For these arrangements, the Company assesses its revenue arrangements to determine the appropriate units of accounting, with each deliverable provided under the arrangement considered a separate unit of accounting. Amounts assigned to each unit of accounting are based on an allocation of total arrangement consideration using a hierarchy of estimated selling price for the deliverables. The selling price used for each deliverable will be based on Vendor Specific Objective Evidence (“VSOE”) if available, Third Party Evidence (“TPE”) if VSOE is not available, or estimated selling price if neither VSOE nor TPE is available. Revenue recognized for equipment and installation is limited to the lesser of their allocated amounts under the estimated selling price hierarchy or the non-contingent up-front consideration received at the time of installation, since collection of future amounts under the arrangement with the customer is contingent upon the delivery of monitoring services. The Company’s contract sales for the installation of security intruder systems and other construction-related projects are recorded under the percentage-of-completion method. Profits recognized on security contracts in process are based upon estimated contract revenue and related total cost of the project at completion. The extent of progress toward completion is generally measured using input methods based on labor metrics. Revisions to these estimates as contracts progress have the effect of increasing or decreasing profits each period. Provisions for anticipated losses are made in the period in which they become determinable. For certain short duration and less complex installation contracts, revenue is recognized upon contract completion and customer acceptance. The revenues for monitoring and monitoring-related services are recognized as services are rendered over the contractual period. Customer billings for services not yet rendered are deferred and recognized as revenue as the services are rendered. The associated deferred revenue is included in Accrued expenses or Other liabilities on the Consolidated Balance Sheets, as appropriate. COST OF SALES AND SELLING, GENERAL & ADMINISTRATIVE — Cost of sales includes the cost of products and services provided reflecting costs of manufacturing and preparing the product for sale. These costs include expenses to acquire and manufacture products to the point that they are allocable to be sold to customers and costs to perform services pertaining to service revenues (e.g. installation of security systems, automatic doors, and security monitoring costs). Cost of sales is primarily comprised of inbound freight, direct materials, direct labor as well as overhead which includes indirect labor and facility and equipment costs. Cost of sales also includes quality control, procurement and material receiving costs as well as internal transfer costs. SG&A costs include the cost of selling products as well as administrative function costs. These expenses generally represent the cost of selling and distributing the products once they are available for sale and primarily include salaries and commissions of the Company’s sales force, distribution costs, notably salaries and facility costs, as well as administrative expenses for certain support functions and related overhead. ADVERTISING COSTS — Television advertising is expensed the first time the advertisement airs, whereas other advertising is expensed as incurred. Advertising costs are classified in SG&A and amounted to $123.3 million in 2017, $124.1 million in 2016, and $101.7 million in 2015. Expense pertaining to cooperative advertising with customers reported as a reduction of Net Sales was $297.4 million in 2017, $232.5 million in 2016, and $211.9 million in 2015. Cooperative advertising with customers classified as SG&A expense amounted to $6.1 million in 2017, $6.6 million in 2016, and $6.4 million in 2015. SALES TAXES — Sales and value added taxes collected from customers and remitted to governmental authorities are excluded from Net Sales reported in the Consolidated Statements of Operations. SHIPPING AND HANDLING COSTS — The Company generally does not bill customers for freight. Shipping and handling costs associated with inbound freight are reported in Cost of sales. Shipping costs associated with outbound freight are reported as a reduction of Net Sales and amounted to $218.1 million, $184.0 million, and $183.0 million in 2017, 2016, and 2015, respectively. Distribution costs are classified as SG&A and amounted to $280.1 million, $235.6 million and $229.3 million in 2017, 2016 and 2015, respectively. STOCK-BASED COMPENSATION — Compensation cost relating to stock-based compensation grants is recognized on a straight-line basis over the vesting period, which is generally four years. The expense for stock options and restricted stock units awarded to retirement eligible employees (those aged 55 and over, and with 10 or more years of service) is recognized on the grant date, or (if later) by the date they become retirement-eligible. POSTRETIREMENT DEFINED BENEFIT PLAN — The Company uses the corridor approach to determine expense recognition for each defined benefit pension and other postretirement plan. The corridor approach defers actuarial gains and losses resulting from variances between actual and expected results (based on economic estimates or actuarial assumptions) and amortizes them over future periods. For pension plans, these unrecognized gains and losses are amortized when the net gains and losses exceed 10% of the greater of the market-related value of plan assets or the projected benefit obligation at the beginning of the year. For other postretirement benefits, amortization occurs when the net gains and losses exceed 10% of the accumulated postretirement benefit obligation at the beginning of the year. For ongoing, active plans, the amount in excess of the corridor is amortized on a straight-line basis over the average remaining service period for active plan participants. For plans with primarily inactive participants, the amount in excess of the corridor is amortized on a straight-line basis over the average remaining life expectancy of inactive plan participants. INCOME TAXES — The Company accounts for income taxes under the asset and liability method in accordance with ASC 740, Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. Any changes in tax rates on deferred tax assets and liabilities are recognized in income in the period that includes the enactment date. The Company records net deferred tax assets to the extent that it is more likely than not that these assets will be realized. In making this determination, management considers all available positive and negative evidence, including future reversals of existing temporary differences, estimates of future taxable income, tax-planning strategies, and the realizability of net operating loss carryforwards. In the event that it is determined that an asset is not more likely that not to be realized, a valuation allowance is recorded against the asset. Valuation allowances related to deferred tax assets can be impacted by changes to tax laws, changes to statutory tax rates and future taxable income levels. In the event the Company were to determine that it would not be able to realize all or a portion of its deferred tax assets in the future, the unrealizable amount would be charged to earnings in the period in which that determination is made. Conversely, if the Company were to determine that it would be able to realize deferred tax assets in the future in excess of the net carrying amounts, it would decrease the recorded valuation allowance through a favorable adjustment to earnings in the period that the determination was made. The Company records uncertain tax positions in accordance with ASC 740, which requires a two-step process. First, management determines whether it is more likely than not that a tax position will be sustained based on the technical merits of the position and second, for those tax positions that meet the more likely than not threshold, management recognizes the largest amount of the tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related taxing authority. The Company maintains an accounting policy of recording interest and penalties on uncertain tax positions as a component of Income taxes on continuing operations in the Consolidated Statements of Operations. The Company is subject to income tax in a number of locations, including many state and foreign jurisdictions. Significant judgment is required when calculating the worldwide provision for income taxes. Many factors are considered when evaluating and estimating the Company's tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company's unrecognized tax positions will significantly increase or decrease within the next twelve months. These changes may be the result of settlements of ongoing audits or final decisions in transfer pricing matters. The Company periodically assesses its liabilities and contingencies for all tax years still subject to audit based on the most current available information, which involves inherent uncertainty. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Act”). The Act makes broad and complex changes to the U.S. tax code, including, but not limited to: (1) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent; (2) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (3) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (4) requiring a tax on global intangible low-taxed income (“GILTI”) which is a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations; (5) eliminating the corporate alternative minimum tax ("AMT") and changing how existing AMT credits can be realized; (6) creating the base erosion anti-abuse tax ("BEAT"), a new minimum tax; (7) creating a new limitation on deductible interest expense; and (8) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017. As of December 30, 2017, the Company has not completed its accounting for the tax effects of the enactment of the Act; however, in certain cases, as described in Note Q, Income Taxes, the Company has made a reasonable estimate of the effects on its existing deferred tax balances and the one-time transition tax. In other cases, the Company has not been able to make a reasonable estimate and continues to account for those items based on its existing accounting under ASC 740, and the provisions of the tax laws that were in effect immediately prior to enactment. During the fourth quarter of 2017, the Company recognized a provisional net charge of $23.6 million for items it was able to reasonably estimate, which has been included as a component of income taxes on continuing operations. The Company operates in many countries throughout the world through numerous subsidiaries. In order to complete the accounting associated with the Act, the Company will continue to accumulate the relevant data, refine computational elements, monitor and analyze U.S. federal and state guidance if and when issued, and adjust its provisional estimates accordingly within the measurement period prescribed by Staff Accounting Bulletin No. 118 ("SAB 118"). EARNINGS PER SHARE — Basic earnings per share equals net earnings attributable to common shareowners divided by weighted-average shares outstanding during the year. Diluted earnings per share include the impact of common stock equivalents using the treasury stock method when the effect is dilutive. NEW ACCOUNTING STANDARDS — In February 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The new guidance permits companies to reclassify the stranded tax effects of the Act on items within accumulated other comprehensive income to retained earnings. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In December 2017, the U.S. Securities and Exchange Commission ("SEC") staff issued SAB 118, which provides guidance on accounting for the tax effects of the Act. SAB 118 provides a measurement period that should not extend beyond one year from the Act enactment date for companies to complete the accounting under ASC 740 (the "measurement period"). In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Act is incomplete but it can determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 based on the provisions of the tax laws that were in effect immediately before the enactment of the Act. The measurement period for accounting for the Act begins in the period of enactment and ends when an entity has obtained, prepared and analyzed the information necessary to complete the accounting requirements under ASC 740, but in no event can the measurement period extend beyond one year. Any provisional amount or adjustment to a provisional amount included in a company’s financial statements during the measurement period should be included in income from continuing operations as an adjustment to tax expense or benefit in the reporting period the amounts are determined. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815). The new standard amends the hedge accounting recognition and presentation requirements in ASC 815. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company will adopt this guidance in the first quarter of 2018 and does not expect it to have a material impact on its consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715). The new standard improves the presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The impacts to the financial statements are related to classification of Pension and Postretirement Cost on the income statement. The Company will apply the full retrospective method of adoption starting with the first interim period after December 15, 2017. Subsequent to adoption, income of approximately $20.5 million and $11.1 million for the years ended December 30, 2017 and December 31, 2016, respectively, will be reclassified from cost of sales or selling, general and administrative (as applicable) to other, net, with no impact to net earnings in either year. In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610). The new standard provides guidance for recognizing gains and losses of nonfinancial assets in contracts with non-customers. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will adopt this guidance in the first quarter of 2018 and does not expect it to have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new standard simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. This ASU will be applied prospectively and is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the timing of adopting this standard. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The new standard narrows the definition of a business and provides a framework for evaluation. This ASU is effective prospectively for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. The new standard eliminates the exception to the principle in ASC 740, for all intra-entity sales of assets other than inventory, to be deferred, until the transferred asset is sold to a third party or otherwise recovered through use. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will adopt this guidance in the first quarter of 2018 and does not expect it to have a material impact on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230). The objective of this update is to provide additional guidance and reduce diversity in practice when classifying certain transactions within the statement of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. These standards are effective for financial statements issued for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will adopt both ASUs in the first quarter of 2018 and expects the impact to be related to the presentation of restricted cash as well as cash flows from its accounts receivable sale program, as described more fully in Note B, Accounts and Notes Receivable. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). The new standard amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The objective of this update is to simplify several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU was effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company adopted this standard prospectively in the first quarter of 2017 and it did not have a material impact on its consolidated financial statements. Prior periods were not adjusted. The 2017 excess tax benefits have been reported within operating activities on the statement of cash flows upon adoption of ASU 2016-09 in the first quarter of 2017. Prior to the adoption of this ASU, the Company reported the excess tax benefits as a financing cash flow within the proceeds from issuance of common stock caption. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods and is to be applied utilizing a modified retrospective approach. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The main objective of this update is to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The new guidance addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will adopt this guidance in the first quarter of 2018 and does not expect it to have a material impact on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This ASU changes the measurement principle for certain inventory methods from the lower of cost or market to the lower of cost and net realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU does not apply to inventory that is measured using Last-in First-out ("LIFO") or the retail inventory method. The provisions of ASU 2015-11 were effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company adopted this standard in the first quarter of 2017 and it did not have an impact on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The new revenue recognition standard outlines a comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The new model provides a five-step analysis in determining when and how revenue is recognized. The core principle of the new guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB affirmed its proposal to defer the effective date of the standard to annual reporting periods (and interim reporting periods within those years) beginning after December 15, 2017. Entities are permitted to apply the new revenue standard early, but not before the original effective date of annual periods beginning after December 15, 2016. The standard shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In March, April, May and December 2016, the FASB clarified the implementation guidance on principal versus agent, identifying performance obligations, licensing, collectability and made technical corrections on various topics. The impacts to the Company's financial statements are primarily related to classification of outbound freight on the income statement and presentation of returns reserve. The Company will apply the full retrospective method of adoption starting with the first interim period after December 15, 2017. Subsequent to adoption, net revenue and net income will increase by $219.4 million and $1.3 million (or $0.01 per diluted share), respectively, for the year ended December 30, 2017, and $186.6 million and $2.7 million (or $0.02 per diluted share), respectively, for the year ended December 31, 2016. |
ACCOUNTS AND NOTES RECEIVABLE |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTS AND NOTES RECEIVABLE | ACCOUNTS AND NOTES RECEIVABLE
Trade receivables are dispersed among a large number of retailers, distributors and industrial accounts in many countries. Adequate reserves have been established to cover anticipated credit losses. Long-term receivables of $191.7 million and $180.9 million at December 30, 2017 and December 31, 2016, respectively, are reported within Other Assets in the Consolidated Balance Sheets. The Company's financing receivables are predominantly related to certain security equipment leases with commercial businesses. Generally, the Company retains legal title to any equipment leases and bears the right to repossess such equipment in an event of default. All financing receivables are interest bearing and the Company has not classified any financing receivables as held-for-sale. Interest income earned from financing receivables that are not delinquent is recorded on the effective interest method. The Company considers any financing receivable that has not been collected within 90 days of original billing date as past-due or delinquent. Additionally, the Company considers the credit quality of all past-due or delinquent financing receivables as nonperforming. Prior to January 2018, the Company had an accounts receivable sale program. According to the terms of that program, the Company was required to sell certain of its trade accounts receivables at fair value to a wholly owned, consolidated, bankruptcy-remote special purpose subsidiary (“BRS”). The BRS, in turn, was required to sell such receivables to a third-party financial institution (“Purchaser”) for cash and a deferred purchase price receivable. The Purchaser’s maximum cash investment in the receivables at any time was $100.0 million. The purpose of the program was to provide liquidity to the Company. The Company accounted for these transfers as sales under ASC 860, Transfers and Servicing. Receivables were derecognized from the Company’s Consolidated Balance Sheets when the BRS sold those receivables to the Purchaser. The Company had no retained interests in the transferred receivables, other than collection and administrative responsibilities and its right to the deferred purchase price receivable. At December 30, 2017, the Company did not record a servicing asset or liability related to its retained responsibility, based on its assessment of the servicing fee, market values for similar transactions and its cost of servicing the receivables sold. In January 2018, the Company signed an amendment that changes the structure of this program which eliminates the deferred purchase price receivable from the Purchaser and results in the BRS retaining ownership of the trade accounts receivables. This program was then terminated on February 1, 2018. At December 30, 2017 and December 31, 2016, $100.8 million and $100.5 million, respectively, of net receivables were derecognized. Gross receivables sold amounted to $2.181 billion ($1.830 billion, net) for the year ended December 30, 2017 and $1.833 billion ($1.548 billion, net) for the year ended December 31, 2016. These sales resulted in a pre-tax loss of $7.5 million and $4.8 million, respectively, for the years ended December 30, 2017 and December 31, 2016, respectively. These pre-tax losses include servicing fees of $1.4 million and $0.9 million, respectively, for the years ended December 30, 2017 and December 31, 2016. Proceeds from transfers of receivables to the Purchaser totaled $1.023 billion and $1.068 billion for the years ended December 30, 2017 and December 31, 2016, respectively. Collections of previously sold receivables, including deferred purchase price receivables, and all fees, which are settled one month in arrears, resulted in payments to the Purchaser of $1.785 billion and $1.501 billion for the years ended December 30, 2017 and December 31, 2016, respectively. The Company’s risk of loss following the sale of the receivables is limited to the deferred purchase price receivable, which was $106.9 million at December 30, 2017 and $83.2 million at December 31, 2016. The deferred purchase price receivable was settled in full in January 2018, and historically was repaid in cash as receivables were collected, generally within 30 days. As such, the carrying value of the receivable recorded at December 30, 2017 and December 31, 2016 approximated fair value. Delinquencies and credit losses on receivables sold were $0.2 million and $0.1 million for the years ended December 30, 2017 and December 31, 2016, respectively. Cash inflows related to the deferred purchase price receivable totaled $704.7 million and $345.1 million for the years ended December 30, 2017 and December 31, 2016, respectively. All cash flows under the program are reported as a component of changes in accounts receivable within operating activities in the Consolidated Statements of Cash Flows since all the cash from the Purchaser is either: 1) received upon the initial sale of the receivable; or 2) from the ultimate collection of the underlying receivables and the underlying receivables are not subject to significant risks, other than credit risk, given their short-term nature. |
INVENTORIES |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES
Net inventories in the amount of $896.9 million at December 30, 2017 and $662.8 million at December 31, 2016 were valued at the lower of LIFO cost or market. If the LIFO method had not been used, inventories would have been $2.9 million lower than reported at December 30, 2017 and $11.3 million higher than reported at December 31, 2016. In the first quarter of 2017, the Company acquired inventory with estimated fair values of $195.8 million and $15.7 million related to the Newell Tools and Craftsman brand acquisitions, respectively. Refer to Note E, Acquisitions, for further discussion of these acquisitions. |
PROPERTY, PLANT AND EQUIPMENT |
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PROPERTY, PLANT AND EQUIPMENT | D. PROPERTY, PLANT AND EQUIPMENT
Depreciation and amortization expense associated with property, plant and equipment was as follows:
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MERGER AND ACQUISITIONS |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MERGER AND ACQUISITIONS | ACQUISITIONS PENDING ACQUISITION On December 22, 2017, the Company reached an agreement to purchase the industrial business of Nelson Fastener Systems ("Nelson") from the Doncasters Group, which excludes Nelson's automotive stud welding business, for approximately $440 million in cash. Nelson is complementary to the Company' product offerings, enhances its presence in the general industrial end markets and expands its portfolio of highly engineered fastening solutions. The transaction is expected to close in the first half of 2018 subject to customary closing conditions, including regulatory approvals. Nelson will be consolidated into the Industrial segment. 2017 ACQUISITIONS Newell Tools On March 9, 2017, the Company acquired the Tools business of Newell Brands ("Newell Tools"), which includes the industrial cutting, hand tool and power tool accessory brands Irwin® and Lenox®, for approximately $1.84 billion, net of cash acquired and an estimated working capital adjustment. This acquisition enhances the Company’s position within the global tools & storage industry and broadens the Company’s product offerings and solutions to customers and end users, particularly within power tool accessories. The results of Newell Tools are being consolidated into the Company's Tools & Storage segment. The Newell Tools acquisition is being accounted for as a business combination, which requires, among other things, the assets acquired and liabilities assumed to be recognized at their fair values as of the acquisition date. The following table summarizes the estimated fair values of major assets acquired and liabilities assumed:
The trade names were determined to have indefinite lives. The weighted-average useful life assigned to the customer relationships is 15 years. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined business, assembled workforce, and the going concern nature of Newell Tools. It is estimated that $15.7 million of goodwill, relating to the pre-acquisition historical tax basis of goodwill, will be deductible for tax purposes. The purchase price allocation for Newell Tools is substantially complete with the exception of certain opening balance sheet liabilities and tax matters. The Company will complete its purchase price allocation in the first quarter of 2018. Any measurement period adjustments resulting from the finalization of the Company’s purchase accounting assessment are not expected to be material. A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. The Company’s judgments used to determine the estimated fair values assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact the Company’s results from operations. Craftsman Brand On March 8, 2017, the Company purchased the Craftsman® brand from Sears Holdings Corporation ("Sears Holdings"), which provides the Company with the rights to develop, manufacture and sell Craftsman®-branded products in non-Sears Holdings channels. The total estimated cash purchase price is $917.4 million on a discounted basis, consisting of an initial cash payment of $569.4 million, which reflects the impact of working capital adjustments, a cash payment due in March 2020 with an estimated present value at acquisition date of $234.0 million, and future payments to Sears Holdings of between 2.5% and 3.5% on sales of Craftsman products in new Stanley Black & Decker channels through March 2032, which was valued at $114.0 million as of the acquisition date based on estimated future sales projections. Refer to Note M, Fair Value Measurements, for additional details. In addition, as part of the acquisition the Company also granted a perpetual license to Sears Holdings to continue selling Craftsman®-branded products in Sears Holdings-related channels. The perpetual license will be royalty-free until March 2032, which represents an estimated value of approximately $293.0 million, and 3% thereafter. The Craftsman results are being consolidated into the Company's Tools & Storage segment. The Craftsman brand acquisition is being accounted for as a business combination which requires, among other things, the assets acquired and liabilities assumed to be recognized at their fair values as of the acquisition date. The estimated fair value of the identifiable net assets acquired, which includes $43.9 million of working capital and $418.0 million of intangible assets, is $502.1 million. The related goodwill is $708.3 million. The amount allocated to intangible assets includes $396.0 million of an indefinite-lived trade name. The useful life assigned to the customer relationships is 17 years. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined business and the going concern nature of the Craftsman brand. It is estimated that $426.9 million of goodwill will be deductible for tax purposes. The purchase price allocation for Craftsman is substantially complete with the exception of certain opening balance sheet liabilities. The Company will complete its purchase price allocation in the first quarter of 2018. Any measurement period adjustments resulting from the finalization of the Company’s purchase accounting assessment are not expected to be material. A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. The Company’s judgments used to determine the estimated fair values assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact the Company’s results from operations. Other Acquisitions During 2017, the Company completed four smaller acquisitions for a total purchase price of $181.7 million, net of cash acquired, which are being consolidated into the Company's Tools & Storage and Security segments. The estimated fair value of the identifiable net assets acquired, which includes $38.1 million of working capital and $57.6 million of customer relationships intangible assets, is $92.2 million. The related goodwill is $89.5 million. The useful life assigned to the customer relationships ranges between 10 and 15 years. During the measurement period, the Company expects to record adjustments relating to the finalization of valuations for intangible assets, working capital accounts, and various opening balance sheet contingencies. These adjustments are not expected to have a material impact on the Company’s consolidated statement of operations, balance sheet or cash flows. 2016 ACQUISITIONS During 2016, the Company completed five acquisitions for a total purchase price of $59.3 million, net of cash acquired, which have been consolidated into the Company’s Tools & Storage and Security segments. The total purchase price for the acquisitions was allocated to the assets and liabilities assumed based on their estimated fair values. The purchase accounting for these acquisitions is complete. 2015 ACQUISITIONS During 2015, the Company completed two acquisitions for a total purchase price of $17.2 million, net of cash acquired, which have been consolidated into the Company's Security segment. ACTUAL AND PRO-FORMA IMPACT FROM ACQUISITIONS Actual Impact from Acquisitions The net sales and net loss from 2017 acquisitions included in the Company's Consolidated Statements of Operations for the year ended December 30, 2017 are shown in the table below. The net loss includes amortization relating to inventory step-up and intangible assets recorded upon acquisition, transaction costs, and other integration-related costs.
Pro-forma Impact from Acquisitions The following table presents supplemental pro-forma information as if the 2017 acquisitions had occurred on January 3, 2016. The pro-forma consolidated results are not necessarily indicative of what the Company’s consolidated net sales and net earnings would have been had the Company completed the acquisitions on January 3, 2016. In addition, the pro-forma consolidated results do not purport to project the future results of the Company.
2017 Pro-forma Results The 2017 pro-forma results were calculated by combining the results of Stanley Black & Decker with the stand-alone results of the 2017 acquisitions for their respective pre-acquisition periods. Accordingly the following adjustments were made:
2016 Pro-forma Results The 2016 pro-forma results were calculated by taking the historical financial results of Stanley Black & Decker and adding the historical results of the 2017 acquisitions for their respective pre-acquisition periods. Accordingly the following adjustments were made assuming the acquisitions commenced on January 3, 2016:
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GOODWILL AND INTANGIBLE ASSETS |
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GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS GOODWILL — The changes in the carrying amount of goodwill by segment are as follows:
In 2017, goodwill increased by approximately $2.1 billion, which primarily related to the Newell Tools and Craftsman brand acquisitions. The goodwill amounts for these and other 2017 acquisitions are subject to change based upon the allocation of the consideration transferred to the assets acquired and liabilities assumed. Refer to Note E, Acquisitions, for further discussion. As required by the Company's policy, goodwill and indefinite-lived trade names were tested for impairment in the third quarter of 2017. The Company assessed the fair values of three of its reporting units utilizing a discounted cash flow valuation model and determined that the fair values exceeded the respective carrying amounts. The key assumptions used were discount rates and perpetual growth rates applied to cash flow projections. Also inherent in the discounted cash flow valuations were near-term revenue growth rates over the next five years. These assumptions contemplated business, market and overall economic conditions. For the remaining two reporting units, the Company determined qualitatively that it was not more likely than not that goodwill was impaired, and thus, the quantitative goodwill impairment test was not required. In making this determination, the Company considered the significant excess of fair value over carrying amount as calculated in the most recent quantitative analysis, each reporting unit's 2017 performance compared to prior year and their respective industries, analyst multiples and other positive qualitative information, all of which indicated that it was more likely than not that the fair values of the two reporting units were greater than their respective carrying amounts. As previously disclosed in the Company's Form 10-Q for the third quarter of 2017, the fair value of the Infrastructure reporting unit exceeded its carrying amount by 18%. In connection with the preparation of the Consolidated Financial Statements for the year ended December 30, 2017, the Company performed an updated impairment analysis with respect to the Infrastructure reporting unit, which included approximately $271 million of goodwill at year-end. Based on this analysis, which included updated assumptions of near-term revenue and profitability levels, it was determined that the fair value of the Infrastructure reporting unit exceeded its carrying value by 37%. The increase in excess fair value is reflective of an improved near-term outlook due to solid results in 2017, including robust organic growth of 12%. Management remains confident in the long-term viability and success of the Infrastructure reporting unit based on its leading market position in its respective industries and the Company's continued commitment to, and investments in, organic growth initiatives (including solid progress being made with respect to Breakthrough Innovation projects under SFS 2.0). The fair values of the Company's indefinite-lived trade names were assessed using both qualitative assessments, which considered relevant key external and internal factors, and quantitative analyses, which utilized discounted cash flow valuation models taking into consideration appropriate discount rates, royalty rates and perpetual growth rates applied to projected sales. Based on the results of this testing, the Company determined that the fair values of each of its indefinite-lived trade names exceeded their respective carrying amounts. In the event that future operating results of any of the Company's reporting units or indefinite-lived trade names do not meet current expectations, management, based upon conditions at the time, would consider taking restructuring or other strategic actions, as necessary, to maximize revenue growth and profitability. A thorough analysis of all the facts and circumstances existing at that time would need to be performed to determine if recording an impairment loss would be appropriate. INTANGIBLE ASSETS — Intangible assets at December 30, 2017 and December 31, 2016 were as follows:
Indefinite-lived trade names totaled $2.206 billion at December 30, 2017 and $1.509 billion at December 31, 2016. The year-over-year increase relates to the indefinite-lived trade names acquired in the Newell Tools and Craftsman acquisitions. Aggregate intangible assets amortization expense by segment was as follows:
Future amortization expense in each of the next five years amounts to $167.1 million for 2018, $158.2 million for 2019, $139.7 million for 2020, $131.0 million for 2021, $122.0 million for 2022 and $583.5 million thereafter. |
ACCRUED EXPENSES |
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ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses at December 30, 2017 and December 31, 2016 were as follows:
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LONG-TERM DEBT AND FINANCING ARRANGEMENTS |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT AND FINANCING ARRANGEMENTS | LONG-TERM DEBT AND FINANCING ARRANGEMENTS Long-term debt and financing arrangements at December 30, 2017 and December 31, 2016 were as follows:
(1) Unamortized gain/loss associated with interest rate swaps are more fully discussed in Note I, Financial Instruments. Aggregate annual principal maturities of long-term debt for each of the years from 2018 to 2022 are $983.8 million, $8.1 million, $4.9 million, $404.0 million, $755.9 million, respectively, and $1.700 billion thereafter. These maturities represent the principal amounts to be paid and accordingly exclude the remaining $11.1 million of unamortized fair value adjustments made in purchase accounting, which increased the Black & Decker note payable due 2028, as well as a net loss of $4.3 million pertaining to unamortized termination gain/loss on interest rate swaps and unamortized discount on the notes as described in Note I, Financial Instruments, and $37.1 million of unamortized deferred financing fees. Interest paid during 2017, 2016 and 2015 amounted to $198.3 million, $176.6 million and $161.5 million, respectively. In the first quarter of 2016, the Company adopted ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30); Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 requires debt issuance costs related to recognized debt liabilities to be presented in the balance sheet as a direct deduction from the debt liability rather than an asset. Accordingly, at December 30, 2017 and December 31, 2016, approximately $37.1 million and $41.7 million, respectively, of deferred debt costs were presented as a direct deduction within Long-Term Debt on the Company's Consolidated Balance Sheets. In December 2013, the Company issued $400.0 million aggregate principal amount of 5.75% fixed-to-floating rate junior subordinated debentures maturing December 15, 2053 (“2053 Junior Subordinated Debentures”). The 2053 Junior Subordinated Debentures bears interest at a fixed rate of 5.75% per annum, payable semi-annually in arrears to, but excluding December 15, 2018. From and including December 15, 2018, the 2053 Junior Subordinated Debentures will bear interest at an annual rate equal to three-month LIBOR plus 4.304% payable quarterly in arrears. The 2053 Junior Subordinated Debentures are unsecured and rank subordinate and junior in right of payment to all of the Company’s existing and future senior debt. The 2053 Junior Subordinated Debentures rank equally in right of payment with all of the Company’s other unsecured junior subordinated debt. The Company received proceeds from the offering of $392.0 million, net of $8.0 million of underwriting discounts and commissions, before offering expenses. The Company used the net proceeds primarily to repay commercial paper borrowings. The Company may, so long as there is no event of default with respect to the debentures, defer interest payments on the debentures, from time to time, for one or more Optional Deferral Periods (as defined in the indenture governing the 2053 Junior Subordinated Debentures) of up to five consecutive years. Deferral of interest payments cannot extend beyond the maturity date of the debentures. The 2053 Junior Subordinated Debentures include an optional redemption provision whereby the Company may elect to redeem the debentures, in whole or in part, at a "make-whole" premium based on United States Treasury rates, plus accrued and unpaid interest if redeemed before December 15, 2018, or at 100% of their principal amount plus accrued and unpaid interest if redeemed after December 15, 2018. In addition, the Company may redeem the debentures in whole, but not in part, before December 15, 2018, if certain changes in tax laws, regulations or interpretations occur at 100% of their principal amount plus accrued and unpaid interest. In November 2012, the Company issued $800.0 million of senior unsecured term notes, maturing on November 1, 2022 (“2022 Term Notes”) with fixed interest payable semi-annually, in arrears, at a rate of 2.90% per annum. The 2022 Term Notes are unsecured and rank equally with all of the Company's existing and future unsecured and unsubordinated debt. The Company received net proceeds of $793.9 million which reflects a discount of $0.7 million and $5.4 million of underwriting expenses and other fees associated with the transaction. The Company used the net proceeds from the offering for general corporate purposes, including repayment of short-term borrowings. The 2022 Term Notes include a Change of Control provision that would apply should a Change of Control event (as defined in the Indenture governing the 2022 Term Notes) occur. The Change of Control provision states that the holders of the 2022 Term Notes may require the Company to repurchase, in cash, all of the outstanding 2022 Term Notes for a purchase price at 101.0% of the original principal amount, plus any accrued and unpaid interest outstanding up to the repurchase date. In December 2014, the Company repurchased $45.7 million of the 2022 Term Notes and paid $45.3 million cash and recognized a net pre-tax gain of less than $0.1 million after expensing $0.3 million of related loan discount costs and deferred financing fees. At December 30, 2017, the carrying value of the 2022 Term Notes includes $0.3 million of unamortized discount. In July 2012, the Company issued $750.0 million of junior subordinated debentures, maturing on July 25, 2052 (“2052 Junior Subordinated Debentures”) with fixed interest payable quarterly, in arrears, at a rate of 5.75% per annum. The 2052 Junior Subordinated Debentures are unsecured and rank subordinate and junior in right of payment to all of the Company's existing and future senior debt. The Company received net proceeds of $729.4 million and paid $20.6 million of fees associated with the transaction. The Company used the net proceeds from the offering for general corporate purposes, including repayment of debt and refinancing of near term debt maturities. The Company may, so long as there is no event of default with respect to the debentures, defer interest payments on the debentures, from time to time, for one or more Optional Deferral Periods (as defined in the indenture governing the 2052 Junior Subordinated Debentures) of up to five consecutive years per period. Deferral of interest payments cannot extend beyond the maturity date of the debentures. Additionally, the 2052 Junior Subordinated Debentures include an optional redemption whereby the Company may elect to redeem the debentures at 100% of their principal amount plus accrued and unpaid interest. Commercial Paper and Credit Facilities In January 2017, the Company amended its existing $2.0 billion commercial paper program to increase the maximum amount of notes authorized to be issued to $3.0 billion and to include Euro denominated borrowings in addition to U.S. Dollars. As of December 30, 2017, the Company had no borrowings outstanding against the $3.0 billion commercial paper program. At December 31, 2016, the Company had no borrowings outstanding against the Company’s $2.0 billion commercial paper program. The Company has a five-year $1.75 billion committed credit facility (the “Credit Agreement”). Borrowings under the Credit Agreement may include U.S. Dollars up to the $1.75 billion commitment or in Euro or Pounds Sterling subject to a foreign currency sub-limit of $400.0 million and bear interest at a floating rate dependent upon the denomination of the borrowing. Repayments must be made on December 18, 2020 or upon an earlier termination date of the Credit Agreement, at the election of the Company. The Credit Agreement is designated to be a liquidity back-stop for the Company's $3.0 billion U.S. Dollar and Euro commercial paper program. As of December 30, 2017 and December 31, 2016, the Company had not drawn on this commitment. The Company also has a 364-day $1.25 billion committed credit facility (the "2017 Credit Agreement") executed in December 2017. The 2017 Credit Agreement consists of a $1.25 billion revolving credit loan and a sub-limit of an amount equal to the Euro equivalent of $400 million for swing line advances. Borrowings under the 2017 Credit Agreement may be made in U.S. Dollars or Euros, pursuant to the terms of the agreement, and bear interest at a floating rate dependent on the denomination of the borrowing. Repayments must be made by December 19, 2018 or upon an earlier termination of the 2017 Credit Agreement at the election of the Company. The Company also has the option at the termination date to convert all advances into a term loan provided certain requirements are met. The 2017 Credit Agreement serves as a liquidity back-stop for the Company’s $3.0 billion U.S. Dollar and Euro commercial paper program. As of December 30, 2017, the Company had not drawn on this commitment. In January 2017, the Company executed a 364-day $1.3 billion committed credit facility which consisted of a $1.3 billion revolving credit loan and a sub-limit of an amount equal to the Euro equivalent of $400 million for swing line advances. Borrowings under this credit agreement could be made in U.S. Dollars or Euros, pursuant to the terms of the agreement, and bore interest at a floating rate dependent on the denomination of the borrowing. This credit agreement was terminated in December 2017 at the election of the Company. In addition, the Company has short-term lines of credit that are primarily uncommitted, with numerous banks, aggregating $624.9 million, of which $429.8 million was available at December 30, 2017. Short-term arrangements are reviewed annually for renewal. At December 30, 2017, the aggregate amount of committed and uncommitted, long- and short-term lines was $3.6 billion. At December 30, 2017, $5.3 million was recorded as short-term borrowings and amounts outstanding against uncommitted lines excluding commercial paper. In addition, $195.1 million of the short-term credit lines was utilized primarily pertaining to outstanding letters of credit for which there are no required or reported debt balances. The weighted-average interest rates on U.S. dollar denominated short-term borrowings for the years ended December 30, 2017 and December 31, 2016 were 1.2% and 0.6%, respectively. The weighted-average interest rate on Euro denominated short-term borrowings for the year ended December 30, 2017 was negative 0.3%. Equity Units In December 2013, the Company issued 3,450,000 Equity Units (the “Equity Units”), each with a stated value of $100. The Equity Units were initially comprised of a 1/10, or 10%, undivided beneficial ownership in a $1,000 principal amount 2.25% junior subordinated note due 2018 (the “2018 Junior Subordinated Note”) and a forward common stock purchase contract (the “Equity Purchase Contract”). The Company received approximately $334.7 million in cash proceeds from the Equity Units, net of underwriting discounts and commissions, before offering expenses, and recorded $345.0 million in long-term debt. The $345.0 million aggregate principal amount is due on November 17, 2018, and is included in Current maturities of long-term debt as of December 30, 2017, on the Consolidated Balance Sheets. The proceeds were used primarily to repay commercial paper borrowings. The Company also used $9.7 million of the proceeds to enter into capped call transactions utilized to hedge potential economic dilution as described in more detail below. Equity Purchase Contracts: On November 17, 2016, the Company settled all Equity Purchase Contracts by issuing 3,504,165 common shares and received $345.0 million in cash proceeds generated from the remarketing described in detail below. The number of shares of common stock issuable upon settlement of each purchase contract (the “settlement rate”) was rounded to the nearest ten-thousandth of a share and was determined by calculating the applicable market value, equal to the average of the daily volume-weighted average price of common stock for each of the 20 consecutive trading days during the market value averaging period, October 21, 2016 through November 17, 2016. The conversion rate used in calculating the average of the daily volume-weighted average price of common stock during the market value averaging period was 1.0157 (equivalent to the purchase contract settlement rate and a conversion price of $98.45 per common share). Holders of the Equity Purchase Contracts were paid contract adjustment payments (“contract adjustment payments”) at a rate of 4.00% per annum, payable quarterly in arrears on February 17, May 17, August 17 and November 17 of each year, commencing February 17, 2014. The $40.2 million present value of the Contract Adjustment Payments reduced Shareowners’ Equity upon issuance of the Equity Units and a related liability for the present value of the cash payments of $40.2 million was recorded. As each quarterly contract adjustment payment was made, the related liability was relieved with the difference between the cash payment and the present value accreted to interest expense over the three-year term. On November 17, 2016, the Company made the final contract adjustment payment. 2018 Junior Subordinated Notes: The $345.0 million aggregate principal amount of the 2018 Junior Subordinated Notes will mature on November 17, 2018. Prior to November 17, 2016, the 2018 Junior Subordinated Notes bore interest at a rate of 2.25% per annum, payable quarterly in arrears on February 17, May 17, August 17 and November 17 of each year, commencing February 17, 2014. The 2018 Junior Subordinated Notes were unsecured and ranked subordinate and junior in right of payment to the Company’s existing and future senior indebtedness. The 2018 Junior Subordinated Notes initially ranked equally in right of payment with all of the Company’s other unsecured junior subordinated debt. The Company successfully remarketed the 2018 Junior Subordinated Notes on November 17, 2016 ("Subordinated Notes"). In connection with the remarketing, the interest rate on the notes was reset, effective on the settlement date to a rate of 1.622% per annum, payable semi-annually in arrears on May 17 and November 17 of each year, commencing May 17, 2017 and maturing on November 17, 2018. Following settlement of the remarketing, the Subordinated Notes remain the Company’s direct, unsecured general obligations and are subordinated and junior in right of payment to the Company’s existing and future senior indebtedness, but the Subordinated Notes rank senior in right of payment to specified junior indebtedness on the terms and to the extent set forth in the indentures governing such junior indebtedness. The remarketing resulted in proceeds of $345.0 million, which the Company did not directly receive, and were automatically applied to satisfy in full the related unit holders’ obligations to purchase common stock under their Equity Purchase Contracts. Interest expense of $5.6 million for 2017 and $0.7 million for 2016 was recorded related to the contractual interest coupon on the Subordinated Notes based on the annual rate of 1.622%. Interest expense of $6.8 million in 2016, and $7.8 million for 2015 was recorded related to the 2.25% contractual interest coupon on the 2018 Junior Subordinated Notes. The unamortized deferred remarketing costs of the Subordinated Notes at December 30, 2017 is $0.9 million and will be recorded to interest expense over the term of the underlying notes. Capped Call Transactions: In order to offset the potential economic dilution associated with the common shares issuable upon settlement of the Equity Purchase Contracts, the Company entered into capped call transactions with a major financial institution (the “counterparty”). The capped call transactions covered, subject to customary anti-dilution adjustments, the number of shares equal to the number of shares issuable upon settlement of the Equity Purchase Contracts. The capped call transactions have a term of approximately three years and initially had a lower strike price of $98.80, which corresponds to the minimum settlement rate of the Equity Purchase Contracts, and an upper strike price of $112.91, which is approximately 40% higher than the closing price of the Company's common stock on November 25, 2013, and are subject to customary anti-dilution adjustments. The Company paid $9.7 million of cash to fund the cost of the capped call transactions, which was recorded as a reduction of Shareowners’ Equity. In October and November 2016, the Company’s capped call options on its common stock expired and were net-share settled resulting in the Company receiving 418,234 shares of common stock. Convertible Preferred Units In November 2010, the Company issued 6,325,000 Convertible Preferred Units (the “Convertible Preferred Units”), each with a stated amount of $100. The Convertible Preferred Units were comprised of a 1/10, or 10%, undivided beneficial ownership in a $1,000 principal amount junior subordinated note (the “Note”) and a Purchase Contract (the “Purchase Contract”) obligating holders to purchase one share of the Company’s 4.75% Series B Perpetual Cumulative Convertible Preferred Stock (the “Convertible Preferred Stock”). The Company received $613.5 million in cash proceeds from the Convertible Preferred Units offering, net of underwriting fees. Purchase Contracts: Each Purchase Contract obligated the holder to purchase, on November 17, 2015, for $100, one newly-issued share of Convertible Preferred Stock. Holders of the Purchase Contracts were paid contract adjustment payments at a rate of 0.50% per annum, payable quarterly in arrears on February 17, May 17, August 17 and November 17 of each year. The $14.9 million present value of the contract adjustment payments reduced Shareowners’ Equity at inception. As each quarterly contract adjustment payment was made, the related liability was relieved with the difference between the cash payment and the present value of the contract adjustment payment recorded as interest expense. In accordance with the Purchase Contracts, on November 17, 2015, the Company issued 6,325,000 shares of Convertible Preferred Stock and made the final contract adjustment payment on the Purchase Contracts. The purchase price for the Convertible Preferred Stock was paid using the proceeds of the remarketing described below. Convertible Preferred Stock: Holders of the Convertible Preferred Stock were entitled to receive cumulative cash dividends at the rate of 4.75% per annum of the $100 liquidation preference per share of the Convertible Preferred Stock. Dividends on the Convertible Preferred Stock were payable, when, as and if declared by the Company’s board of directors, quarterly in arrears in conjunction with the contract adjustment payments. On November 18, 2015, the Company informed holders that it would redeem, on December 24, 2015 (the “Redemption Date”), all outstanding shares of Convertible Preferred Stock that had not previously been converted at a redemption price of $100.49 per share in cash (the “Redemption Price”), which was equal to the liquidation preference per share of Convertible Preferred Stock of $100, plus accrued and unpaid dividends thereon to, but excluding, the Redemption Date. Substantially all of the holders of Convertible Preferred Stock elected to convert their shares of Convertible Preferred Stock prior to the Redemption Date. The Company elected to settle all conversions of Convertible Preferred Stock through combination settlement, with a specified dollar amount of $100. The amounts due upon conversion were equal to the sum of the Daily Settlement Amounts for each of the 20 consecutive trading days during the observation period, November 23, 2015 through December 21, 2015. Daily Settlement Amount means, for each of the 20 consecutive trading days during the observation period: (1) cash equal to the lesser of (A) $5.00 and (B) 1/20th of the product of the (i) applicable conversion rate on such trading day and (ii) the daily volume-weighted average price of common stock on such trading day (the “Daily Conversion Value”); and (2) to the extent the Daily Conversion Value for such trading day exceeds $5.00, a number of shares of common stock equal to (A) the difference between such Daily Conversion Value and $5.00, divided by (B) the daily volume-weighted average price for such trading day. The Company settled all conversions on December 24, 2015 by paying $632.5 million in cash for the $100 par value per share of Convertible Preferred Stock and issuing 2.9 million common shares for the excess value of the conversion feature above the $100 face value per share of Convertible Preferred Stock. The conversion rates used in calculating the Daily Conversion Value during the observation period, were 1.3763 (equivalent to a conversion price set at $72.66 per common share) prior to December 2, 2015 and 1.3789 (equivalent to a conversion price set at $72.52 per common share) on and after December 2, 2015. Notes: The $632.5 million principal amount of the Notes is due November 17, 2018, and is included in Current maturities of long-term debt as of December 30, 2017 on the Consolidated Balance Sheets. At maturity, the Company is obligated to repay the principal in cash. The Notes initially bore interest at an initial rate of 4.25% per annum, payable quarterly in arrears on the same dates as the contract adjustment payments. The Notes are the Company’s direct, unsecured general obligations and are subordinated and junior in right of payment to the Company’s existing and future senior indebtedness. The Notes initially ranked equally in right of payment with all of the Company’s other junior subordinated debt. The interest rate, payment dates and ranking of the notes were reset in connection with the remarketing, as described below. The Notes were initially pledged as collateral to guarantee the obligations of holders of Purchase Contracts to purchase Convertible Preferred Stock. Upon completion of the remarketing, the Notes were released from that pledge arrangement. The Company successfully remarketed the Notes on November 5, 2015. In connection with the remarketing, the interest rate on the notes was reset, effective on the November 17, 2015 settlement date of the remarketing, to a rate of 2.45% per annum, payable semi-annually in arrears on May 17 and November 17 of each year, commencing May 17, 2016. Following settlement of the remarketing, the Notes remain the Company’s direct, unsecured general obligations subordinated and junior in right of payment to the Company’s existing and future senior indebtedness, but the Notes rank senior in right of payment to specified junior indebtedness on the terms and to the extent set forth in the indentures governing such junior indebtedness. The remarketing resulted in proceeds of $632.5 million. The Company did not directly receive any proceeds from the remarketing. Instead, the proceeds of remarketing were automatically applied to satisfy in full the related unit holders’ obligations to purchase Convertible Preferred Stock under their Purchase Contracts. Interest expense of $15.5 million in 2017 and 2016 and $1.9 million in 2015 was recorded related to the contractual interest coupon on the 2018 Subordinated Notes based upon the 2.45% annual rate and $23.3 million was recorded in 2015 related to the contractual interest coupon on the Notes based upon the 4.25% annual rate. The unamortized deferred issuance cost of the Notes was $1.6 million at December 30, 2017, and will be recorded to interest expense over the term of the underlying Notes. Equity Option: In order to offset the common shares that were deliverable upon conversion of shares of Convertible Preferred Stock, the Company entered into capped call transactions (equity options) with certain major financial institutions (the “capped call counterparties”). The capped call transactions cover, subject to anti-dilution adjustments, the number of shares of common stock equal to the number of shares of common stock underlying the maximum number of shares of Convertible Preferred Stock issuable upon settlement of the Purchase Contracts. Each of the capped call transactions had an original term of approximately five years and initially had a lower strike price of $75.00, which corresponded to the initial conversion price of the Convertible Preferred Stock, and an upper strike price of $97.95, which was approximately 60% higher than the closing price of the common stock on November 1, 2010. The Company paid $50.3 million of cash to fund the cost of the capped call transactions, which was recorded as a reduction of Shareowners’ Equity. On August 5, 2015, the Company terminated the capped call options on its common stock and received 1,692,778 shares of common stock. |
DERIVATIVE FINANCIAL INSTRUMENTS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS The Company is exposed to market risk from changes in foreign currency exchange rates, interest rates, stock prices and commodity prices. As part of the Company’s risk management program, a variety of financial instruments such as interest rate swaps, currency swaps, purchased currency options, foreign exchange contracts and commodity contracts, may be used to mitigate interest rate exposure, foreign currency exposure and commodity price exposure. If the Company elects to do so and if the instrument meets the criteria specified in ASC 815, Derivatives and Hedging, management designates its derivative instruments as cash flow hedges, fair value hedges or net investment hedges. Generally, commodity price exposures are not hedged with derivative financial instruments and instead are actively managed through customer pricing initiatives, procurement-driven cost reduction initiatives and other productivity improvement projects. Financial instruments are not utilized for speculative purposes. A summary of the fair values of the Company’s derivatives recorded in the Consolidated Balance Sheets at December 30, 2017 and December 31, 2016 follows:
The counterparties to all of the above mentioned financial instruments are major international financial institutions. The Company is exposed to credit risk for net exchanges under these agreements, but not for the notional amounts. The credit risk is limited to the asset amounts noted above. The Company limits its exposure and concentration of risk by contracting with diverse financial institutions and does not anticipate non-performance by any of its counterparties. Further, as more fully discussed in Note M, Fair Value Measurements, the Company considers non-performance risk of its counterparties at each reporting period and adjusts the carrying value of these assets accordingly. The risk of default is considered remote. In 2017, 2016 and 2015, cash flows related to derivatives, including those that are separately discussed below, resulted in net cash received of $2.6 million, $94.7 million, and $144.4 million, respectively. CASH FLOW HEDGES — There were after-tax mark-to-market losses of $112.6 million and $46.3 million as of December 30, 2017 and December 31, 2016, respectively, reported for cash flow hedge effectiveness in Accumulated other comprehensive loss. An after-tax loss of $54.5 million is expected to be reclassified to earnings as the hedged transactions occur or as amounts are amortized within the next twelve months. The ultimate amount recognized will vary based on fluctuations of the hedged currencies and interest rates through the maturity dates. The tables below detail pre-tax amounts reclassified from Accumulated other comprehensive loss into earnings for active derivative financial instruments during the periods in which the underlying hedged transactions affected earnings for 2017, 2016 and 2015:
* Includes ineffective portion and amount excluded from effectiveness testing on derivatives. For 2017, 2016 and 2015, the hedged items’ impact to the Consolidated Statement of Operations were losses of $8.4 million, $21.7 million and $57.4 million, respectively, in Cost of Sales which are offsetting the amounts shown above. There was no impact related to the interest rate contracts’ hedged items for any period presented. For 2017, an after-tax loss of $4.7 million, and for 2016 and 2015, after-tax gains of $3.3 million and $22.4 million, respectively, were reclassified from Accumulated other comprehensive loss into earnings (inclusive of the gain/loss amortization on terminated derivative financial instruments) during the periods in which the underlying hedged transactions affected earnings. Interest Rate Contracts: The Company enters into interest rate swap agreements in order to obtain the lowest cost source of funds within a targeted range of variable to fixed-rate debt proportions. As of December 30, 2017, and December 31, 2016, the Company had $400 million of forward starting swaps outstanding which were executed in 2014. The objective of the hedges is to offset the expected variability on future payments associated with the interest rate on debt instruments expected to be issued in 2018. Gains or losses on the swaps are recorded in Accumulated other comprehensive loss and will be subsequently reclassified into earnings as the future interest expense is recognized in earnings or as ineffectiveness occurs. Foreign Currency Contracts Forward Contracts: Through its global businesses, the Company enters into transactions and makes investments denominated in multiple currencies that give rise to foreign currency risk. The Company and its subsidiaries regularly purchase inventory from subsidiaries with functional currencies different than their own, which creates currency-related volatility in the Company’s results of operations. The Company utilizes forward contracts to hedge these forecasted purchases and sales of inventory. Gains and losses reclassified from Accumulated other comprehensive loss for the effective portion of the hedge are recorded in Cost of sales. The ineffective portion, if any, as well as gains and losses incurred after a hedge has been de-designated are not recorded in Accumulated other comprehensive loss, but are recorded directly to the Consolidated Statements of Operations in Other, net. At December 30, 2017, the notional value of the forward currency contracts outstanding was $559.9 million, maturing on various dates through 2018. As of December 31, 2016, the notional values of the forward currency contracts outstanding was $503.8 million, maturing on various dates through 2017. Purchased Option Contracts: The Company and its subsidiaries enter into various intercompany transactions whereby the notional values are denominated in currencies other than the functional currencies of the party executing the trade. In order to better match the cash flows of its intercompany obligations with cash flows from operations, the Company enters into purchased option contracts. Gains and losses reclassified from Accumulated other comprehensive loss for the effective portions of the hedge are recorded in Cost of sales. The ineffective portion, if any, as well as gains and losses incurred after a hedge has been de-designated are not recorded in Accumulated other comprehensive loss, but are recorded directly to the Consolidated Statements of Operations in Other, net. At December 30, 2017, the notional value of option contracts outstanding was $400.0 million, maturing on various dates through 2019. As of December 31, 2016, the notional value of purchased option contracts was $252.0 million, maturing on various dates in 2017. FAIR VALUE HEDGES Interest Rate Risk: In an effort to optimize the mix of fixed versus floating rate debt in the Company’s capital structure, the Company enters into interest rate swaps. In previous years, the Company entered into interest rate swaps on the first five years of the Company's $400 million 5.75% notes due 2053, interest rate swaps with notional values which equaled the Company's $400 million 3.40% notes due 2021 and the Company's $150 million 7.05% notes due 2028. These interest rate swaps effectively converted the Company's fixed rate debt to floating rate debt based on LIBOR, thereby hedging the fluctuation in fair value resulting from changes in interest rates. In 2016, the Company terminated all of the above interest rate swaps and there were no open contracts as of December 30, 2017 and December 31, 2016. The terminations resulted in cash receipts of $27.0 million. This gain was deferred and is being amortized to earnings over the remaining life of the notes. Prior to termination of the Company's interest rate swaps discussed above, the changes in fair value of the swaps and the offsetting changes in fair value related to the underlying notes were recognized in earnings. A summary of the fair value adjustments relating to these swaps is as follows:
* Includes ineffective portion and amount excluded from effectiveness testing on derivatives. Amortization of the gain/loss on terminated swaps of $3.2 million is reported as a reduction of interest expense in 2017. In addition to the fair value adjustments in the table above, net swap accruals and amortization of the gain/loss on terminated swaps of $6.9 million and $14.2 million are reported as a reduction of interest expense in 2016 and 2015, respectively. There was no interest expense on the underlying debt in 2017. Interest expense on the underlying debt was $19.9 million in 2016 and $47.1 million in 2015 when the hedges were active. NET INVESTMENT HEDGES Foreign Exchange Contracts: The Company utilizes net investment hedges to offset the translation adjustment arising from re-measurement of its investment in the assets and liabilities of its foreign subsidiaries. The total after-tax amounts in Accumulated other comprehensive loss were a gain of $3.4 million and $88.6 million at December 30, 2017 and December 31, 2016, respectively. As of December 30, 2017, the Company had foreign exchange contracts that mature on various dates through 2018 with notional values totaling $751.2 million outstanding hedging a portion of its British pound sterling, Mexican peso, Swedish krona, Euro and Canadian dollar denominated net investments, and a cross currency swap with a notional value totaling $250.0 million maturing 2023 hedging a portion of its Japanese yen denominated net investment. As of December 31, 2016, the Company had foreign exchange contracts maturing on various dates through 2017 with notional values totaling $1.0 billion outstanding hedging a portion of its British pound sterling, Mexican peso, Swedish krona, Euro and Canadian denominated net investment and a cross currency swap with a notional value totaling $250.0 million maturing 2023 hedging a portion of its Japanese yen denominated net investment. Of the $1.0 billion discussed above, $136.1 million hedging a portion of the British pound sterling net investments had been de-designated as of December 31, 2016. Maturing foreign exchange contracts resulted in net cash paid of $23.3 million during 2017, and net cash received of $104.7 million and $137.7 million during 2016 and 2015, respectively. Gains and losses on net investment hedges remain in Accumulated other comprehensive loss until disposal of the underlying assets. Gains and losses after a hedge has been de-designated are recorded directly to the Consolidated Statements of Operations in Other, net. The pre-tax gain or loss from fair value changes was as follows:
*Includes ineffective portion and amount excluded from effectiveness testing. As discussed in Note H, Long-Term Debt and Financing Arrangements, the Company amended its existing $2.0 billion commercial paper program in 2017 to increase the maximum amount of notes authorized to be issued to $3.0 billion and to include Euro denominated borrowings in addition to U.S. Dollars. Euro denominated borrowings against this commercial paper program during 2017 were designated as a Net Investment Hedge against a portion of its Euro denominated net investment. As of December 30, 2017, the Company has no borrowings outstanding against this commercial paper program. UNDESIGNATED HEDGES Foreign Exchange Contracts: Currency swaps and foreign exchange forward contracts are used to reduce risks arising from the change in fair value of certain foreign currency denominated assets and liabilities (such as affiliate loans, payables and receivables). The objective of these practices is to minimize the impact of foreign currency fluctuations on operating results. The total notional amount of the forward contracts outstanding at December 30, 2017 was $1.0 billion maturing on various dates through 2018. The total notional amount of the forward contracts outstanding at December 31, 2016 was $1.5 billion maturing on various dates through 2017. The income statement impacts related to derivatives not designated as hedging instruments for 2017, 2016 and 2015 are as follows:
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CAPITAL STOCK | CAPITAL STOCK EARNINGS PER SHARE — The following table reconciles net earnings attributable to common shareowners and the weighted-average shares outstanding used to calculate basic and diluted earnings per share for the fiscal years ended December 30, 2017, December 31, 2016, and January 2, 2016.
The following weighted-average stock options were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive (in thousands):
As described in detail below, under "Other Equity Arrangements," the Company issued $750 million Equity Units in May 2017 comprised of $750.0 million of convertible preferred stock and forward stock purchase contracts. On and after May 15, 2020, the convertible preferred stock may be converted into common stock at the option of the holder. At the election of the Company, upon conversion, the Company may deliver cash, common stock, or a combination thereof. The conversion rate was initially 6.1627 shares of common stock per one share of convertible preferred stock, which is equivalent to an initial conversion price of approximately $162.27 per share of common stock. As of December 30, 2017, due to the customary anti-dilution provisions, the conversion rate was 6.1667, equivalent to a conversion price of approximately $162.16 per share of common stock. The convertible preferred stock is excluded from the denominator of the diluted earnings per share calculation on the basis that the convertible preferred stock will be settled in cash except to the extent that the conversion value of the convertible preferred stock exceeds its liquidation preference. Therefore, before any redemption or conversion, the common shares that would be required to settle the applicable conversion value in excess of the liquidation preference, if the Company elects to settle such excess in common shares, are included in the denominator of diluted earnings per share in periods in which they are dilutive. The shares related to the convertible preferred stock were anti-dilutive during certain months in 2017. As described in detail below, under "Other Equity Arrangements," the Company issued Equity Units in December 2013 comprised of $345.0 million of Notes and Equity Purchase Contracts, which obligated the holders to purchase on November 17, 2016, for $100, between 1.0122 and 1.2399 shares of the Company’s common stock. The shares related to the Equity Purchase Contracts were anti-dilutive during certain months in 2015 and 2016. Upon the November 17, 2016 settlement date, the Company issued 3,504,165 shares of common stock and received cash proceeds of $345.0 million. COMMON STOCK ACTIVITY — Common stock activity for 2017, 2016 and 2015 was as follows:
In 2016, the Company repurchased 3,940,087 shares of common stock for approximately $374.1 million. Additionally, the Company net-share settled capped call options on its common stock and received 711,376 shares during 2016. In November 2016, the Company issued 3,504,165 shares of common stock to settle the purchase contracts of the 2013 Equity Units. In December 2015, the Company issued 2,869,169 shares of common stock to settle the conversion feature of the Convertible Preferred Stock issued and redeemed through a combination settlement. See "Other Equity Arrangements" below for further details of the above transactions. In March 2015, the Company entered into a forward share purchase contract with a financial institution counterparty for 3,645,510 shares of common stock. The contract obligates the Company to pay $350.0 million, plus an additional amount related to the forward component of the contract. In November 2016, the Company amended the settlement date to April 2019, or earlier at the Company's option. The reduction of common shares outstanding was recorded at the inception of the forward share purchase contract in March 2015 and factored into the calculation of weighted-average shares outstanding at that time. In October 2014, the Company entered into a forward share purchase contract on its common stock. The contract obligated the Company to pay $150.0 million, plus an additional amount related to the forward component of the contract, to the financial institution counterparty not later than October 2016, or earlier at the Company’s option, for the 1,603,822 shares purchased. The reduction of common shares outstanding was recorded at the inception of the forward share purchase contract in October 2014 and factored into the calculation of weighted-average shares outstanding at that time. In October 2016, the Company physically settled the contract, receiving 1,603,822 shares for a settlement amount of $147.4 million. These shares are reflected as "Returned to treasury" in the table above. COMMON STOCK RESERVED — Common stock shares reserved for issuance under various employee and director stock plans at December 30, 2017 and December 31, 2016 are as follows:
PREFERRED STOCK PURCHASE RIGHTS — Prior to March 10, 2016, each outstanding share of common stock had a 1 share purchase right. Each purchase right could be exercised to purchase one two-hundredth of a share of Series A Junior Participating Preferred Stock at an exercise price of $220.00, subject to adjustment. The rights, which did not have voting rights, expired on March 10, 2016. There were no outstanding rights or shares of Series A Junior Participating Preferred Stock as of December 30, 2017. STOCK-BASED COMPENSATION PLANS — The Company has stock-based compensation plans for salaried employees and non-employee members of the Board of Directors. The plans provide for discretionary grants of stock options, restricted stock units and other stock-based awards. The plans are generally administered by the Compensation and Talent Development Committee of the Board of Directors, consisting of non-employee directors. Stock Option Valuation Assumptions: Stock options are granted at the fair market value of the Company’s stock on the date of grant and have a 10-year term. Generally, stock option grants vest ratably over 4 years from the date of grant. The following describes how certain assumptions affecting the estimated fair value of stock options are determined: the dividend yield is computed as the annualized dividend rate at the date of grant divided by the strike price of the stock option; expected volatility is based on an average of the market implied volatility and historical volatility for the 5.25 year expected life; the risk-free interest rate is based on U.S. Treasury securities with maturities equal to the expected life of the option; and a seven percent forfeiture rate is assumed. The Company uses historical data in order to estimate forfeitures and holding period behavior for valuation purposes. The fair value of stock option grants is estimated on the date of grant using the Black-Scholes option pricing model. The following weighted average assumptions were used to value grants made in 2017, 2016 and 2015.
Stock Options: The number of stock options and weighted-average exercise prices as of December 30, 2017 are as follows:
At December 30, 2017, the range of exercise prices on outstanding stock options was $30.03 to $168.78. Stock option expense was $21.3 million, $22.8 million and $16.7 million for the years ended December 30, 2017, December 31, 2016 and January 2, 2016, respectively. At December 30, 2017, the Company had $48.9 million of unrecognized pre-tax compensation expense for stock options. This expense will be recognized over the remaining vesting periods which are 1.9 years on a weighted average basis. During 2017, the Company received $69.9 million in cash from the exercise of stock options. The related tax benefit from the exercise of these options was $25.8 million. During 2017, 2016 and 2015, the total intrinsic value of options exercised was $72.7 million, $35.9 million and $102.7 million, respectively. When options are exercised, the related shares are issued from treasury stock. An excess tax benefit is generated on the extent to which the actual gain, or spread, an optionee receives upon exercise of an option exceeds the fair value determined at the grant date; that excess spread over the fair value of the option times the applicable tax rate represents the excess tax benefit. During 2017, the excess tax benefit arising from tax deductions in excess of recognized compensation cost totaled $18.3 million and was recorded in income tax expense due to the adoption of ASU 2016-09 in the first quarter of 2017. In 2016 and 2015, the excess tax benefits of $9.1 million and $21.2 million, respectively, were recorded in additional paid-in capital. Outstanding and exercisable stock option information at December 30, 2017 follows:
Compensation cost for new grants is recognized on a straight-line basis over the vesting period. The expense for retirement eligible employees (those aged 55 and over and with 10 or more years of service) is recognized by the date they become retirement eligible, as such employees may retain their options for the 10 year contractual term in the event they retire prior to the end of the vesting period stipulated in the grant. As of December 30, 2017, the aggregate intrinsic value of stock options outstanding and stock options exercisable was $440.5 million and $358.2 million, respectively. Employee Stock Purchase Plan: The Employee Stock Purchase Plan (“ESPP”) enables eligible employees in the United States and Canada to subscribe at any time to purchase shares of common stock on a monthly basis at the lower of 85.0% of the fair market value of the shares on the grant date ($103.35 per share for fiscal year 2017 purchases) or 85.0% of the fair market value of the shares on the last business day of each month. A maximum of 6,000,000 shares are authorized for subscription. During 2017, 2016 and 2015, 190,154 shares, 168,233 shares and 182,039 shares, respectively, were issued under the plan at average prices of $103.35, $84.46, and $71.80 per share, respectively, and the intrinsic value of the ESPP purchases was $8.7 million, $4.8 million and $5.4 million, respectively. For 2017, the Company received $19.7 million in cash from ESPP purchases, and there was no related tax benefit. The fair value of ESPP shares was estimated using the Black-Scholes option pricing model. ESPP compensation cost is recognized ratably over the one-year term based on actual employee stock purchases under the plan. The fair value of the employees’ purchase rights under the ESPP was estimated using the following assumptions for 2017, 2016 and 2015, respectively: dividend yield of 1.8%, 2.1% and 2.2%; expected volatility of 21.0%, 20.0% and 19.0%; risk-free interest rates of 0.9%, 0.5%, and 0.1%; and expected lives of one year. The weighted-average fair value of those purchase rights granted in 2017, 2016 and 2015 was $35.70, $29.68 and $31.41, respectively. Total compensation expense recognized for ESPP amounted to $6.7 million for 2017, $4.7 million for 2016, and $5.4 million for 2015. Restricted Share Units and Awards: Compensation cost for restricted share units and awards, including restricted shares granted to French employees in lieu of RSUs, (collectively “RSUs”) granted to employees is recognized ratably over the vesting term, which varies but is generally 4 years. RSU grants totaled 304,976 shares, 445,155 shares and 349,768 shares in 2017, 2016 and 2015, respectively. The weighted-average grant date fair value of RSUs granted in 2017, 2016 and 2015 was $160.04, $118.20 and $107.43 per share, respectively. Total compensation expense recognized for RSUs amounted to $31.7 million, $32.6 million and $30.9 million in 2017, 2016 and 2015, respectively. The actual tax benefit received in the period the shares were delivered was $14.7 million. The excess tax benefit recognized was $4.9 million, $2.4 million, and $7.0 million in 2017, 2016 and 2015, respectively. As of December 30, 2017, unrecognized compensation expense for RSUs amounted to $87.5 million and this cost will be recognized over a weighted-average period of 2.1 years. A summary of non-vested restricted stock unit and award activity as of December 30, 2017, and changes during the twelve month period then ended is as follows:
The total fair value of shares vested (market value on the date vested) during 2017, 2016 and 2015 was $46.6 million, $37.0 million and $72.2 million, respectively. Non-employee members of the Board of Directors received restricted share-based grants which must be cash settled and accordingly mark-to-market accounting is applied. The expense recognized for these awards amounted to $7.0 million, $2.2 million, and $2.1 million for 2017, 2016 and 2015, respectively. Additionally, the Board of Directors were granted restricted share units for which compensation expense of $1.0 million, $1.1 million, and $1.1 million was recognized for 2017, 2016 and 2015, respectively. Long-Term Performance Awards: The Company has granted Long-Term Performance Awards under its 2009 and 2013 Long Term Incentive Plans (“LTIP”) to senior management employees for achieving Company performance measures. Awards are payable in shares of common stock, which may be restricted if the employee has not achieved certain stock ownership levels, and generally no award is made if the employee terminates employment prior to the payout date. LTIP grants were made in 2015, 2016 and 2017. Each grant has separate annual performance goals for each year within the respective three year performance period. Earnings per share and cash flow return on investment represent 75% of the share payout of each grant. There is a third market-based element, representing 25% of the total grant, which measures the Company’s common stock return relative to peers over the performance period. The ultimate delivery of shares will occur in 2018, 2019 and 2020 for the 2015, 2016 and 2017 grants, respectively. Total payouts are based on actual performance in relation to these goals. Expense recognized for these performance awards amounted to $18.0 million in 2017, $20.0 million in 2016, and $13.8 million in 2015. With the exception of the market-based award, in the event performance goals are not met, compensation cost is not recognized and any previously recognized compensation cost is reversed. A summary of the activity pertaining to the maximum number of shares that may be issued is as follows:
OTHER EQUITY ARRANGEMENTS In November 2013, the Company purchased from certain financial institutions “out-of-the-money” capped call options on 12.2 million shares of its common stock (subject to customary anti-dilution adjustments) for an aggregate premium of $73.5 million, or an average of $6.03 per share. The purpose of the capped call options is to hedge the risk of stock price appreciation between the lower and upper strike prices of the capped call options for a future share repurchase. The premium paid was recorded as a reduction of Shareowners’ equity. The contracts for the options provide that they may, at the Company’s election, subject to certain conditions, be cash settled, physically settled, modified-physically settled, or net-share settled (the default settlement method). The capped call options had various expiration dates and initially had an average lower strike price of $86.07 and an average upper strike price of $106.56, subject to customary market adjustments. In February 2015, the Company net-share settled 9.1 million of the 12.2 million capped call options on its common stock and received 911,077 shares using an average reference price of $96.46 per common share. Additionally, the Company purchased directly from the counterparties participating in the net-share settlement, 3,381,162 shares for $326.1 million, equating to an average price of $96.46 per share. In February 2016, the Company net-share settled the remaining 3.1 million capped call options on its common stock and received 293,142 shares using an average reference price of $94.34 per common share. Additionally, the Company purchased 1,316,858 shares directly from the counterparty participating in the net-share settlement for $124.2 million. The Company also repurchased 2,446,287 shares of common stock in February 2016 for $230.9 million, equating to an average price of $94.34. Equity Units and Capped Call Transactions As described more fully in Note H, Long-Term Debt and Financing Arrangements, in December 2013, the Company issued Equity Units comprised of $345.0 million of Notes and Equity Purchase Contracts. The Equity Purchase Contracts obligated the holders to purchase on November 17, 2016, for $100, between 1.0122 and 1.2399 shares of the Company’s common stock, which are equivalent to an initial settlement price of $98.80 and $80.65, respectively, per share of common stock. In accordance with the Equity Purchase Contracts, on November 17, 2016, the Company issued 3,504,165 shares of common shares and received additional cash proceeds of $345.0 million. The conversion rate used in calculating the average of the daily volume-weighted average price of common stock during the market value averaging period, was 1.0157 (equivalent to the minimum settlement rate and a conversion price of $98.45 per common share) on November 17, 2016. Contemporaneously with the issuance of the Equity Units described above, the Company paid $9.7 million, or an average of $2.77 per option, to enter into capped call transactions on 3.5 million shares of common stock with a major financial institution. The purpose of the capped call transactions is to offset the potential economic dilution associated with the common shares issuable upon the settlement of the Equity Purchase Contracts. Refer to Note H, Long-Term Debt and Financing Arrangements, for further discussion. The $9.7 million premium paid was recorded as a reduction to equity. The capped call transactions cover, subject to customary anti-dilution adjustments, the number of shares equal to the number of shares issuable upon settlement of the Equity Purchase Contracts at the 1.0122 minimum settlement rate. In October and November 2016, the Company’s capped call options on its common stock expired and were net-share settled resulting in the Company receiving 418,234 shares using an average reference price of $117.84 per common share. Convertible Preferred Units and Equity Option As described more fully in Note H, Long-Term Debt and Financing Arrangements, in November 2010, the Company issued Convertible Preferred Units comprised of $632.5 million of Notes due November 17, 2018 and Purchase Contracts. The Purchase Contracts obligated the holders to purchase, on November 17, 2015, 6.3 million shares, for $100 per share, of the Company’s 4.75% Series B Cumulative Convertible Preferred Stock (the “Convertible Preferred Stock”). In accordance with the Purchase Contracts, on November 17, 2015, the Company issued 6.3 million shares of Convertible Preferred Stock resulting in cash proceeds to the Company of $632.5 million. On November 18, 2015, the Company informed holders that it would redeem all outstanding shares of Convertible Preferred Stock on December 24, 2015 (the “Redemption Date”) at $100.49 per share in cash (the “Redemption Price”), which is equal to the liquidation preference of $100 per share of Convertible Preferred Stock, plus accrued and unpaid dividends thereon to, but excluding, the Redemption Date. The Company settled all conversions on December 24, 2015 by paying cash for the $100 par value, or $632.5 million in total, and issuing 2.9 million common shares for the excess value of the conversion feature above the $100 face value per share of Convertible Preferred Stock. The conversion rates used in calculating the Daily Conversion during the observation period, were 1.3763 (equivalent to a conversion price set at $72.66 per common share) prior to December 2, 2015 and 1.3789 (equivalent to a conversion price set at $72.52 per common share) on and after December 2, 2015. In November 2010, contemporaneously with the issuance of the Convertible Preferred Units described above, the Company paid $50.3 million, or an average of $5.97 per option, to enter into capped call transactions (equity options) on 8.4 million shares of common stock with certain major financial institutions. The purpose of the capped call transactions was to offset the common shares that may be deliverable upon conversion of shares of Convertible Preferred Stock. Refer to Note H, Long-Term Debt and Financing Arrangements, for further discussion. The $50.3 million premium paid was recorded as a reduction to equity. The capped call transactions cover, subject to customary anti-dilution adjustments, the number of shares of common stock equal to the number of shares of common stock underlying the maximum number of shares of Convertible Preferred Stock issuable upon settlement of the Purchase Contracts. Each of the capped call transactions had a term of approximately five years and initially had a lower strike price of $75.00, which corresponded to the initial conversion price of the Convertible Preferred Stock, and an upper strike price of $97.95, which was approximately 60% higher than the closing price of the common stock on November 1, 2010. On August 5, 2015, the Company net-share settled the capped call options on its common stock and received 1,692,778 shares using an average reference price of $103.97 per common share. $750 Million Equity Units and Capped Call Transactions In May 2017, the Company issued 7,500,000 Equity Units with a total notional value of $750.0 million (“$750 million Equity Units”). Each unit has a stated amount of $100 and initially consists of a three-year forward stock purchase contract (“2020 Purchase Contracts”) for the purchase of a variable number of shares of common stock, on May 15, 2020, for a price of $100, and a 10% beneficial ownership interest in one share of 0% Series C Cumulative Perpetual Convertible Preferred Stock, without par, with a liquidation preference of $1,000 per share (“Series C Preferred Stock”). The Company received approximately $727.5 million in cash proceeds from the $750 million Equity Units, net of underwriting costs and commissions, before offering expenses, and issued 750,000 shares of Series C Preferred Stock, recording $750.0 million in preferred stock. The proceeds were used for general corporate purposes, including repayment of short-term borrowings. The Company also used $25.1 million of the proceeds to enter into capped call transactions utilized to hedge potential economic dilution as described in more detail below. Convertible Preferred Stock In May 2017, the Company issued 750,000 shares of Series C Preferred Stock, without par, with a liquidation preference of $1,000 per share. The convertible preferred stock will initially not bear any dividends and the liquidation preference of the convertible preferred stock will not accrete. The convertible preferred stock has no maturity date, and will remain outstanding unless converted by holders or redeemed by the Company. Holders of shares of the convertible preferred stock will generally have no voting rights. The Series C Preferred Stock is pledged as collateral to support holders’ purchase obligations under the 2020 Purchase Contracts and can be remarketed. In connection with any successful remarketing, the Company may (but is not required to) modify certain terms of the convertible preferred stock, including the dividend rate, the conversion rate, and the earliest redemption date. After any successful remarketing in connection with which the dividend rate on the convertible preferred stock is increased, the Company will pay cumulative dividends on the convertible preferred stock, if declared by the board of directors, quarterly in arrears from the applicable remarketing settlement date. On and after May 15, 2020, the Series C Preferred Stock may be converted into common stock at the option of the holder. The initial conversion rate was 6.1627 shares of common stock per one share of Series C Preferred Stock, which is equivalent to an initial conversion price of approximately $162.27 per share of common stock. As of December 30, 2017, due to the customary anti-dilution provisions, the conversion rate was 6.1667, equivalent to a conversion price of approximately $162.16 per share of common stock. At the election of the Company, upon conversion, the Company may deliver cash, common stock, or a combination thereof. The Company may not redeem the Series C Preferred Stock prior to June 22, 2020. At the election of the Company, on or after June 22, 2020, the Company may redeem for cash, all or any portion of the outstanding shares of the Series C Preferred Stock at a redemption price equal to 100% of the liquidation preference, plus any accumulated and unpaid dividends. If the Company calls the Series C Preferred Stock for redemption, holders may convert their shares immediately preceding the redemption date. 2020 Purchase Contracts The 2020 Purchase Contracts obligate the holders to purchase, on May 15, 2020, for a price of $100 in cash, a maximum number of 5.4 million shares of the Company’s common stock (subject to customary anti-dilution adjustments). The 2020 Purchase Contract holders may elect to settle their obligation early, in cash. The Series C Preferred Stock is pledged as collateral to guarantee the holders’ obligations to purchase common stock under the terms of the 2020 Purchase Contracts. The initial settlement rate determining the number of shares that each holder must purchase will not exceed the maximum settlement rate, and is determined over a market value averaging period immediately preceding May 15, 2020. The initial maximum settlement rate of 0.7241 was calculated using an initial reference price of $138.10, equal to the last reported sale price of the Company's common stock on May 11, 2017. As of December 30, 2017, due to the customary anti-dilution provisions, the maximum settlement rate was 0.7246, equivalent to a reference price of $138.01. If the applicable market value of the Company's common stock is less than or equal to the reference price, the settlement rate will be the maximum settlement rate; and if the applicable market value of common stock is greater than the reference price, the settlement rate will be a number of shares of the Company's common stock equal to $100 divided by the applicable market value. Upon settlement of the 2020 Purchase Contracts, the Company will receive additional cash proceeds of $750 million. The Company will pay the holders of the 2020 Purchase Contracts quarterly payments (“Contract Adjustment Payments”) at a rate of 5.375% per annum, payable quarterly in arrears on February 15, May 15, August 15 and November 15, commencing August 15, 2017. The $117.1 million present value of the Contract Adjustment Payments reduced Shareowners’ Equity at inception. As each quarterly Contract Adjustment Payment is made, the related liability is reduced and the difference between the cash payment and the present value will accrete to interest expense, approximately $1.3 million per year over the three-year term. As of December 30, 2017, the present value of the Contract Adjustment Payments was $97.8 million. The holders can settle the purchase contracts early, for cash, subject to certain exceptions and conditions in the prospectus supplement. Upon early settlement of any purchase contracts, the Company will deliver the number of shares of its common stock equal to 85% of the number of shares of common stock that would have otherwise been deliverable. Capped Call Transactions In order to offset the potential economic dilution associated with the common shares issuable upon conversion of the Series C Preferred Stock, to the extent that the conversion value of the convertible preferred stock exceeds its liquidation preference, the Company entered into capped call transactions with three major financial institutions (the “counterparties”). The capped call transactions have a term of approximately three years and are intended to cover the number of shares issuable upon conversion of the Series C Preferred Stock. Subject to customary anti-dilution adjustments, the capped call has an initial lower strike price of $162.27, which corresponds to the minimum 6.1627 settlement rate of the Series C Preferred Stock, and an upper strike price of $179.53, which is approximately 30% higher than the closing price of the Company's common stock on May 11, 2017. As of December 30, 2017, due to the customary anti-dilution provisions, the capped call transactions had an adjusted lower strike price of $162.16 and an adjusted upper strike price of $179.41. The capped call transactions may be settled by net share settlement (the default settlement method) or, at the Company’s option and subject to certain conditions, cash settlement, physical settlement or modified physical settlement. The number of shares the Company will receive will be determined by the terms of the contracts using a volume-weighted average price calculation for the market value of the Company's common stock, over an averaging period. The market value determined will then be measured against the applicable strike price of the capped call transactions. The Company expects the capped call transactions to offset the potential dilution upon conversion of the Series C Preferred Stock if the calculated market value is greater than the lower strike price but less than or equal to the upper strike price of the capped call transactions. Should the calculated market value exceed the upper strike price of the capped call transactions, the dilution mitigation will be limited based on such capped value as determined under the terms of the contracts. With respect to the impact on the Company, the capped call transactions and $750 million Equity Units, when taken together, result in the economic equivalent of having the conversion price on $750 million Equity Units at $179.41, the upper strike of the capped call as of December 30, 2017. The Company paid $25.1 million, or an average of $5.43 per option, to enter into capped call transactions on 4.6 million shares of common stock. The $25.1 million premium paid was a reduction of Shareowners’ Equity. The aggregate fair value of the options at December 30, 2017 was $40.6 million. |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive loss:
(1) Pension settlement losses are more fully discussed in Note L, Employee Benefit Plans. |
EMPLOYEE BENEFIT PLANS |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS EMPLOYEE STOCK OWNERSHIP PLAN (“ESOP”) — Most U.S. employees may make contributions that do not exceed 25% of their eligible compensation to a tax-deferred 401(k) savings plan, subject to restrictions under tax laws. Employees generally direct the investment of their own contributions into various investment funds. An employer match benefit is provided under the plan equal to one-half of each employee’s tax-deferred contribution up to the first 7% of their compensation. Participants direct the entire employer match benefit such that no participant is required to hold the Company’s common stock in their 401(k) account. The employer match benefit totaled $24.8 million, $21.9 million and $21.1 million in 2017, 2016 and 2015, respectively. In addition to the regular employer match, $4.3 million was allocated to the employee's accounts for forfeitures and a surplus resulting from appreciation of the Company's share value in 2016. There was no additional allocation for 2017. In addition, approximately 9,650 U.S. salaried and non-union hourly employees are eligible to receive a non-contributory benefit under the Core benefit plan. Core benefit allocations range from 2% to 6% of eligible employee compensation based on age. Core transition benefit allocations and additional Core transition benefit allocations were made under the plan for the years 2011-2015 for certain employees who were previously eligible for Cornerstone account allocations (the predecessor to the Core benefit plan) and certain employees who were previously eligible to accrue benefits under specified defined benefit plans. No Core transition benefit allocations or additional Core transition benefit allocations were made after December 31, 2015. Allocations for benefits earned under the Core plan were $25.4 million in 2017, $17.6 million in 2016 and $22.1 million in 2015. Assets held in participant Core accounts are invested in target date retirement funds which have an age-based allocation of investments. Shares of the Company's common stock held by the ESOP were purchased with the proceeds of borrowings from the Company in 1991 ("1991 internal loan"). Shareowners' equity reflects a reduction equal to the cost basis of unearned (unallocated) shares purchased with the internal borrowings. In 2017, 2016 and 2015, the Company made additional contributions to the ESOP for $4.8 million, $7.9 million, and $7.2 million, respectively, which were used by the ESOP to make additional payments on the 1991 internal loan. These payments triggered the release of 133,694, 219,492 and 184,753 shares of unallocated stock, respectively. Net ESOP activity recognized is comprised of the cost basis of shares released, the cost of the aforementioned Core and 401(k) match defined contribution benefits, less the fair value of shares released and dividends on unallocated ESOP shares. The Company’s net ESOP activity resulted in expense of $1.3 million in 2017, income of $3.1 million in 2016 and expense of $0.8 million in 2015. ESOP expense is affected by the market value of the Company’s common stock on the monthly dates when shares are released. The weighted-average market value of shares released was $138.60 per share in 2017, $103.88 per share in 2016 and $99.60 per share in 2015. Unallocated shares are released from the trust based on current period debt principal and interest payments as a percentage of total future debt principal and interest payments. Dividends on both allocated and unallocated shares may be used for debt service and to credit participant accounts for dividends earned on allocated shares. Dividends paid on the shares acquired with the 1991 internal loan were used solely to pay internal loan debt service in all periods. Dividends on ESOP shares, which are charged to shareowners’ equity as declared, were $8.4 million in 2017, $9.0 million in 2016 and $9.7 million in 2015, net of the tax benefit which is recorded in earnings in 2017 and within equity for 2016 and 2015. Dividends on ESOP shares were utilized entirely for debt service in all years. Interest costs incurred by the ESOP on the 1991 internal loan, which have no earnings impact, were $2.2 million, $3.1 million and $3.8 million for 2017, 2016 and 2015, respectively. Both allocated and unallocated ESOP shares are treated as outstanding for purposes of computing earnings per share. As of December 30, 2017, the cumulative number of ESOP shares allocated to participant accounts was 14,527,070, of which participants held 2,252,098 shares, and the number of unallocated shares was 1,014,287. At December 30, 2017, there were 20,665 released shares in the ESOP trust holding account pending allocation. The Company made cash contributions totaling $1.8 million in 2017, $4.2 million in 2016 and $4.4 million in 2015 excluding additional contributions of $4.8 million, $7.9 million and $7.2 million in 2017, 2016 and 2015, respectively, as discussed previously. PENSION AND OTHER BENEFIT PLANS — The Company sponsors pension plans covering most domestic hourly and certain executive employees, and approximately 16,200 foreign employees. Benefits are generally based on salary and years of service, except for U.S. collective bargaining employees whose benefits are based on a stated amount for each year of service. The Company contributes to a number of multi-employer plans for certain collective bargaining U.S. employees. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: a. Assets contributed to the multiemployer plan by one employer may be used to provide benefit to employees of other participating employers. b. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be inherited by the remaining participating employers. c. If the Company chooses to stop participating in some of its multiemployer plans, the Company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. In addition, the Company also contributes to a number of multiemployer plans outside of the U.S. The foreign plans are insured, therefore, the Company’s obligation is limited to the payment of insurance premiums. The Company has assessed and determined that none of the multiemployer plans to which it contributes are individually significant to the Company’s financial statements. The Company does not expect to incur a withdrawal liability or expect to significantly increase its contributions over the remainder of the contract period. In addition to the multiemployer plans, various other defined contribution plans are sponsored worldwide. The expense for such defined contribution plans, aside from the earlier discussed ESOP plans, is as follows:
The components of net periodic pension (benefit) expense are as follows:
The Company provides medical and dental benefits for certain retired employees in the United States and Canada. Approximately 13,800 participants are covered under these plans. Net periodic post-retirement benefit expense was comprised of the following elements:
In the first quarter of 2016, the Company changed the method used to estimate the service and interest cost components of net periodic pension (benefit) expense. The new estimation method uses a full yield curve approach by applying specific spot rates along the yield curve used in the determination of the pension benefit obligation, to their underlying projected cash flows, and provides a more precise measurement of the service and interest cost components. Previously, the Company used a single weighted average discount rate derived from the corresponding yield curve used to measure the pension benefit obligation. The change is applied prospectively as a change in estimate that is inseparable from a change in accounting principle and reduced service and interest cost for the year ended December 31, 2016 by approximately $13.9 million. For the year ended December 30, 2017, the Company recorded pre-tax charges of approximately $12.2 million, reflecting losses previously reported in accumulated other comprehensive loss, related to a non-U.S. pension plan for which the Company settled its obligation by purchasing an annuity and making lump sum payments to participants. Also, in accordance with policy, $2.9 million and $0.5 million in pre-tax settlement and curtailment losses were recorded for other U.S. and non-U.S. plans respectively, due to standard lump sum benefit payments elected exceeding the sum of service cost and interest cost. Changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss in 2017 are as follows:
The amounts in Accumulated other comprehensive loss expected to be recognized as components of net periodic benefit costs during 2018 total $15.2 million, representing amortization of actuarial losses. The changes in the pension and other post-retirement benefit obligations, fair value of plan assets, as well as amounts recognized in the Consolidated Balance Sheets, are shown below.
The accumulated benefit obligation for all defined benefit pension plans was $2.754 billion at December 30, 2017 and $2.667 billion at December 31, 2016. Information regarding pension plans in which accumulated benefit obligations exceed plan assets follows:
Information regarding pension plans in which projected benefit obligations (inclusive of anticipated future compensation increases) exceed plan assets follows:
The major assumptions used in valuing pension and post-retirement plan obligations and net costs were as follows:
*As mentioned above under net periodic pension (benefit) expense, in 2015 the Company used a single weighted-average discount rate derived from the corresponding yield curve used to measure the pension benefit obligation. The 2016 and 2017 weighted-average assumptions represent a more precise measurement due to the change in method used to estimate the service and interest cost components. The expected rate of return on plan assets is determined considering the returns projected for the various asset classes and the relative weighting for each asset class. The Company will use a 5.30% weighted-average expected rate of return assumption to determine the 2018 net periodic benefit cost. PENSION PLAN ASSETS — Plan assets are invested in equity securities, government and corporate bonds and other fixed income securities, money market instruments and insurance contracts. The Company’s worldwide asset allocations at December 30, 2017 and December 31, 2016 by asset category and the level of the valuation inputs within the fair value hierarchy established by ASC 820 are as follows:
U.S. and foreign equity securities primarily consist of companies with large market capitalizations and to a lesser extent mid and small capitalization securities. Government securities primarily consist of U.S. Treasury securities and foreign government securities with de minimus default risk. Corporate fixed income securities include publicly traded U.S. and foreign investment grade and to a small extent high yield securities. Assets held in insurance contracts are invested in the general asset pools of the various insurers, mainly debt and equity securities with guaranteed returns. Other investments include diversified private equity holdings. The level 2 investments are primarily comprised of institutional mutual funds that are not publicly traded; the investments held in these mutual funds are generally level 1 publicly traded securities. The Company's investment strategy for pension assets focuses on a liability-matching approach with gradual de-risking taking place over a period of many years. The Company utilizes the current funded status to transition the portfolio toward investments that better match the duration and cash flow attributes of the underlying liabilities. Assets approximating 50% of the Company's current pension liabilities have been invested in fixed income securities, using a liability / asset matching duration strategy, with the primary goal of mitigating exposure to interest rate movements and preserving the overall funded status of the underlying plans. Plan assets are broadly diversified and are invested to ensure adequate liquidity for immediate and medium term benefit payments. The Company’s target asset allocations include 25%-45% in equity securities, 50%-70% in fixed income securities and up to 10% in other securities. In 2017, the funded status percentage (total plan assets divided by total projected benefit obligation) of all global pension plans was 79%, improved from 77% in 2016 and 2015. CONTRIBUTIONS — The Company’s funding policy for its defined benefit plans is to contribute amounts determined annually on an actuarial basis to provide for current and future benefits in accordance with federal law and other regulations. The Company expects to contribute approximately $41 million to its pension and other post-retirement benefit plans in 2018. EXPECTED FUTURE BENEFIT PAYMENTS — Benefit payments, inclusive of amounts attributable to estimated future employee service, are expected to be paid as follows over the next 10 years:
These benefit payments will be funded through a combination of existing plan assets, the returns on those assets, and amounts to be contributed in the future by the Company. HEALTH CARE COST TRENDS — The weighted average annual assumed rate of increase in the per-capita cost of covered benefits (i.e., health care cost trend rate) is assumed to be 7.0% for 2018, reducing gradually to 4.6% by 2028 and remaining at that level thereafter. A one percentage point change in the assumed health care cost trend rate would affect the post-retirement benefit obligation as of December 30, 2017 by approximately $1.9 million to $2.2 million, and would have an immaterial effect on the net periodic post-retirement benefit cost. |
FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS FASB ASC 820, Fair Value Measurement, defines, establishes a consistent framework for measuring, and expands disclosure requirements about fair value. ASC 820 requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs create the following fair value hierarchy: Level 1 — Quoted prices for identical instruments in active markets. Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs and significant value drivers are observable. Level 3 — Instruments that are valued using unobservable inputs. The Company holds various derivative financial instruments that are employed to manage risks, including foreign currency and interest rate exposures. These financial instruments are carried at fair value and are included within the scope of ASC 820. The Company determines the fair value of derivatives through the use of matrix or model pricing, which utilizes observable inputs such as market interest and currency rates. When determining the fair value of these financial instruments for which Level 1 evidence does not exist, the Company considers various factors including the following: exchange or market price quotations of similar instruments, time value and volatility factors, the Company’s own credit rating and the credit rating of the counter-party. The following table presents the Company’s financial assets and liabilities that are measured at fair value on a recurring basis for each of the hierarchy levels:
The following table presents the carrying values and fair values of the Company's financial assets and liabilities, as well as the Company's debt, as of December 30, 2017 and December 31, 2016:
As discussed in Note E, Acquisitions, the Company recorded a contingent consideration liability relating to the Craftsman brand acquisition representing the Company's obligation to make future payments to Sears Holdings of between 2.5% and 3.5% on sales of Craftsman products in new Stanley Black & Decker channels through March 2032, which was valued at $114.0 million as of the acquisition date. The first payment is due the first quarter of 2020 relating to royalties owed for the previous eleven quarters, and future payments will be due quarterly through the first quarter of 2032. The estimated fair value was determined using a discounted cash flow analysis based on future sales projections and contractual royalty rates. A 100 basis point reduction in the discount rate would have resulted in an increase to the liability of approximately $8 million. The liability may fluctuate in the future if there are changes to sales projections or the discount rate as a result of actual sales levels or changes in market conditions. There was no significant change in the fair value of the contingent consideration as of December 30, 2017. The Company had no significant non-recurring fair value measurements, nor any other financial assets or liabilities measured using Level 3 inputs, during 2017 or 2016. The money market fund and other investments related to the West Coast Loading Corporation ("WCLC") trust are considered Level 1 instruments within the fair value hierarchy. The long-term debt instruments are considered Level 2 instruments and are measured using a discounted cash flow analysis based on the Company’s marginal borrowing rates. The differences between the carrying values and fair values of long-term debt are attributable to the stated interest rates differing from the Company's marginal borrowing rates. The fair values of the Company's variable rate short-term borrowings approximate their carrying values at December 30, 2017 and December 31, 2016. The fair values of foreign currency and interest rate swap agreements, comprising the derivative assets and liabilities in the table above, are based on current settlement values. As discussed in Note B, Accounts and Notes Receivable, the Company had a deferred purchase price receivable related to sales of trade receivables. The deferred purchase price receivable was settled in full in January 2018, and historically was repaid in cash as receivables were collected, generally within 30 days. As such, the carrying value of the receivable as of December 30, 2017 and December 31, 2016 approximated fair value. Refer to Note I, Financial Instruments, for more details regarding derivative financial instruments, Note S, Contingencies, for more details regarding the other investments related to the WCLC trust, and Note H, Long-Term Debt and Financing Arrangements, for more information regarding the carrying values of the long-term debt. |
OTHER COSTS AND EXPENSES |
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Other Costs and Expenses [Abstract] | |
OTHER COSTS AND EXPENSES | OTHER COSTS AND EXPENSES Other, net is primarily comprised of intangible asset amortization expense (see Note F, Goodwill and Intangible Assets), currency-related gains or losses, environmental remediation expense and acquisition-related transaction and consulting costs. Acquisition-related transaction and consulting costs of $58.2 million were included in Other, net for the year ended December 30, 2017. Research and development costs, which are classified in SG&A, were $252.3 million, $204.4 million and $188.0 million for fiscal years 2017, 2016 and 2015, respectively. The increase in 2017 reflects the Company's continued focus on growth investments and its commitment to the SFS 2.0 Breakthrough Innovation initiative. |
RESTRUCTURING AND ASSET IMPAIRMENTS |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING AND ASSET IMPAIRMENTS | RESTRUCTURING CHARGES AND ASSET IMPAIRMENTS A summary of the restructuring reserve activity from December 31, 2016 to December 30, 2017 is as follows:
During 2017, the Company recognized net restructuring charges and asset impairments of $51.5 million. This amount reflects $40.6 million of net severance charges associated with the reduction of 1,584 employees and $10.9 million of facility closure and other restructuring costs. The majority of the $23.2 million of reserves remaining as of December 30, 2017 is expected to be utilized within the next twelve months. Segments: The $52 million of net restructuring charges and asset impairments for the year ended December 30, 2017 includes: $25 million of net charges pertaining to the Tools & Storage segment; $8 million of net charges pertaining to the Industrial segment; $18 million of net charges pertaining to the Security segment; and $1 million of net charges pertaining to Corporate. |
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS | BUSINESS SEGMENTS AND GEOGRAPHIC AREAS The Company classifies its business into three reportable segments, which also represent its operating segments: Tools & Storage, Industrial and Security. The Tools & Storage segment is comprised of the Power Tools & Equipment ("PTE") and Hand Tools, Accessories & Storage ("HTAS") businesses. The PTE business includes both professional and consumer products. Professional products include professional grade corded and cordless electric power tools and equipment including drills, impact wrenches and drivers, grinders, saws, routers and sanders, as well as pneumatic tools and fasteners including nail guns, nails, staplers and staples, concrete and masonry anchors. Consumer products include corded and cordless electric power tools sold primarily under the BLACK+DECKER® brand, lawn and garden products, including hedge trimmers, string trimmers, lawn mowers, edgers and related accessories, and home products such as hand-held vacuums, paint tools and cleaning appliances. The HTAS business sells hand tools, power tool accessories and storage products. Hand tools include measuring, leveling and layout tools, planes, hammers, demolition tools, clamps, vises, knives, saws, chisels and industrial and automotive tools. Power tool accessories include drill bits, screwdriver bits, router bits, abrasives, saw blades and threading products. Storage products include tool boxes, sawhorses, medical cabinets and engineered storage solution products. The Industrial segment is comprised of the Engineered Fastening and Infrastructure businesses. The Engineered Fastening business primarily sells engineered fastening products and systems designed for specific applications. The product lines include blind rivets and tools, blind inserts and tools, drawn arc weld studs and systems, engineered plastic and mechanical fasteners, self-piercing riveting systems, precision nut running systems, micro fasteners, and high-strength structural fasteners. The Infrastructure business consists of the Oil & Gas and Hydraulics businesses. The Oil & Gas business sells and rents custom pipe handling, joint welding and coating equipment used in the construction of large and small diameter pipelines, and provides pipeline inspection services. The Hydraulics business sells hydraulic tools and accessories. The Security segment is comprised of the Convergent Security Solutions ("CSS") and Mechanical Access Solutions ("MAS") businesses. The CSS business designs, supplies and installs commercial electronic security systems and provides electronic security services, including alarm monitoring, video surveillance, fire alarm monitoring, systems integration and system maintenance. Purchasers of these systems typically contract for ongoing security systems monitoring and maintenance at the time of initial equipment installation. The business also sells healthcare solutions, which include asset tracking, infant protection, pediatric protection, patient protection, wander management, fall management, and emergency call products. The MAS business primarily sells automatic doors. The Company utilizes segment profit, which is defined as net sales minus cost of sales and SG&A inclusive of the provision for doubtful accounts (aside from corporate overhead expense), and segment profit as a percentage of net sales to assess the profitability of each segment. Segment profit excludes the corporate overhead expense element of SG&A, interest income, interest expense, other, net (inclusive of intangible asset amortization expense), restructuring charges and asset impairments, gain on sales of businesses, pension settlement and income taxes. Refer to Note O, Restructuring Charges and Asset Impairments, for the amount of net restructuring charges by segment, and Note F, Goodwill and Intangible Assets, for intangible asset amortization expense by segment. Corporate overhead is comprised of world headquarters facility expense, cost for the executive management team and cost for certain centralized functions that benefit the entire Company but are not directly attributable to the businesses, such as legal and corporate finance functions. Transactions between segments are not material. Segment assets primarily include cash, accounts receivable, inventory, other current assets, property, plant and equipment, intangible assets and other miscellaneous assets. Net sales and long-lived assets are attributed to the geographic regions based on the geographic locations of the end customer and the Company subsidiary, respectively. BUSINESS SEGMENTS
Corporate assets primarily consist of cash, deferred taxes, and property, plant and equipment. Based on the nature of the Company's cash pooling arrangements, at times corporate-related cash accounts will be in a net liability position. Sales to The Home Depot were 13%, 14%, and 13% of the Tools & Storage segment net sales in 2017, 2016 and 2015, respectively. Sales to Lowe's were 17%, 15% and 14% of the Tools & Storage segment net sales in 2017, 2016 and 2015, respectively. GEOGRAPHIC AREAS
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INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Act”). The Act makes broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent; (2) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (3) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (4) requiring a tax on global intangible low-taxed income (“GILTI”) which is a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations; (5) eliminating the corporate alternative minimum tax ("AMT") and changing how existing AMT credits can be realized; (6) creating the base erosion anti-abuse tax ("BEAT"), a new minimum tax; (7) creating a new limitation on deductible interest expense; and (8) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017. As of December 30, 2017, the Company has not completed its accounting for the tax effects of the enactment of the Act; however, in certain cases (described below) the Company has made a reasonable estimate of the effects on its existing deferred tax balances and the one-time transition tax. In other cases, the Company has not been able to make a reasonable estimate and continues to account for those items based on its existing accounting under ASC 740, Income Taxes, and the provisions of the tax laws that were in effect immediately prior to enactment. During the fourth quarter, the Company recognized a provisional net charge of $23.6 million for the items it was able to reasonably estimate, which has been included as a component of income tax expense from continuing operations. The Company operates in many countries throughout the world through numerous subsidiaries. In order to complete the accounting associated with the Act, the Company will continue to accumulate the relevant data, refine computational elements, monitor and analyze U.S. federal and state guidance if and when issued, and adjust its provisional estimates accordingly within the measurement period prescribed by SAB 118. Provisional amounts Deferred tax assets and liabilities: The Company remeasured certain deferred tax assets and liabilities based on the U.S. tax rates at which they are expected to become realized in the future. However, the Company is still analyzing certain aspects of the Act and refining its calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The provisional amount recorded related to the re-measurement of its deferred tax balance resulted in a decrease to income tax expense of approximately $252.5 million. International provision tax effects: The Company recorded a provisional amount for the one-time transition tax on undistributed foreign earnings, resulting in an increase to income tax expense of $276.1 million comprised of an accrued provisional income tax payable of approximately $460.7 million, partially offset by the reversal of the deferred tax liability of approximately $184.6 million associated with certain legacy Black & Decker unremitted foreign earnings and profits which were previously designated as not being indefinitely reinvested. The remaining deferred tax liability on unremitted foreign earnings of $4.9 million represents withholding taxes which will become payable upon distribution. The Company is still analyzing certain aspects of the Act and refining its estimate, which may change, possibly materially, due to changes in interpretations and assumptions the Company has made, guidance that may be issued and actions the Company may take as a result of the Act. Significant components of the Company’s deferred tax assets and liabilities at the end of each fiscal year were as follows:
A valuation allowance is recorded on certain deferred tax assets if it has been determined it is more likely than not that all or a portion of these assets will not be realized. The Company recorded a valuation allowance of $516.7 million and $525.5 million on deferred tax assets existing as of December 30, 2017 and December 31, 2016, respectively. The valuation allowance in 2017 was primarily attributable to foreign and state net operating loss carryforwards and foreign capital loss carryforwards. The valuation allowance in 2016 was primarily attributable to foreign and state net operating loss carryforwards and a U.S. federal capital loss carryforward, the majority of which was realized upon the sale of the HHI business. During 2016, the Company recorded a valuation allowance of $27.9 million against a deferred tax asset established for the excess of the outside tax basis over the financial reporting basis for investments in businesses to be sold in 2017, which were classified as Held for Sale on the Company's Consolidated Balance Sheets as of December 31, 2016. As of December 30, 2017, the Company has approximately $5.7 billion of unremitted foreign earnings and profits. Except for $823.3 million of certain legacy Black & Decker foreign earnings and profits, all remaining unremitted foreign earnings and profits are considered to be invested indefinitely or will be remitted substantially free of additional tax. As a result of the Act, the Company recognized income tax expense of $276.1 million for the one-time transition tax on all of its unremitted foreign earnings and profits. This amount is comprised of an accrued provisional income tax payable of approximately $460.7 million, partially offset by the reversal of the deferred tax liability of approximately $184.6 million established on certain legacy Black & Decker unremitted foreign earnings and profits which were previously designated as not being indefinitely reinvested. The remaining deferred tax liability on unremitted foreign earnings of $4.9 million represents withholding taxes which will become payable upon distribution. The Company is continuing to analyze certain aspects of the Act, and may refine its estimate, potentially materially, due to future guidance that may be issued, clarification of existing law, assumptions made, or actions the Company may take as a result of the Act, including the remittance of foreign earnings and profits currently considered to be invested indefinitely (as described above). Net operating loss carryforwards of $2.3 billion as of December 30, 2017, are available to reduce future tax obligations of certain U.S. and foreign companies. The net operating loss carryforwards have various expiration dates beginning in 2018 with certain jurisdictions having indefinite carryforward periods. The foreign capital loss carryforwards of $52.1 million of December 30, 2017 have indefinite carryforward periods. There was no U.S. federal capital loss carryforward as of December 30, 2017 primarily due to utilization related to the sale of the mechanical security business in the first quarter of 2017. The components of earnings from continuing operations before income taxes consisted of the following:
Income tax expense (benefit) attributable to continuing operations consisted of the following:
Included in the U.S. Federal and State current income tax expense are provisional income tax liabilities of approximately $455.4 million and $5.3 million, respectively, which have been recorded as a result of the one-time transition tax on unremitted foreign earnings pursuant to the Act. Included in U.S. Federal deferred income tax expense are provisional income tax benefits of approximately $252.5 million related to the re-measurement of existing U.S. Federal deferred tax balances and $184.6 million associated with the reversal of the deferred tax liability for unremitted foreign earnings and profits which were designated as not being indefinitely reinvested. Net income taxes paid during 2017, 2016 and 2015 were $273.6 million, $233.3 million and $191.6 million, respectively. The 2017, 2016 and 2015 amounts include refunds of $28.5 million, $30.5 million and $31.0 million, respectively, primarily related to prior year overpayments and closing of tax audits. The reconciliation of the U.S. federal statutory income tax provision to the income tax provision on continuing operations is as follows:
The Company conducts business globally and, as a result, files income tax returns in the U.S. federal jurisdiction and various state, and foreign jurisdictions. In the normal course, the Company is subject to examinations by taxing authorities throughout the world. The Internal Revenue Service is currently examining its consolidated U.S. income tax returns for the 2010-2013 tax years. With few exceptions, as of December 30, 2017, the Company is no longer subject to U.S. federal, state, local, or foreign examinations by tax authorities for years before 2010. The Company’s liabilities for unrecognized tax benefits relate to U.S. and various foreign jurisdictions. The following table summarizes the activity related to the unrecognized tax benefits:
The gross unrecognized tax benefits at December 30, 2017 and December 31, 2016 includes $368.7 million and $291.1 million, respectively, of tax benefits that, if recognized, would impact the effective tax rate. The liability for potential penalties and interest related to unrecognized tax benefits was increased by $3.8 million in 2017, increased by $4.6 million in 2016 and decreased by $0.1 million in 2015. The liability for potential penalties and interest totaled $67.9 million as of December 30, 2017, $64.1 million as of December 31, 2016, and $59.5 million as of January 2, 2016. The Company classifies all tax-related interest and penalties as income tax expense. The Company considers many factors when evaluating and estimating its tax positions and the impact on income tax expense, which may require periodic adjustments and which may not accurately anticipate actual outcomes. It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company's unrecognized tax positions will significantly increase or decrease within the next 12 months. These changes may be the result of settlement of ongoing audits or final decisions in transfer pricing matters. The Company cannot reasonably estimate the range of the potential change. |
COMMITMENTS AND GUARANTEES |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND GUARANTEES | COMMITMENTS AND GUARANTEES COMMITMENTS — The Company has non-cancelable operating lease agreements, principally related to facilities, vehicles, machinery and equipment. Minimum payments have not been reduced by minimum sublease rentals of $4.7 million due in the future under non-cancelable subleases. Rental expense, exclusive of sublease income, for operating leases was $150.4 million in 2017, $124.2 million in 2016, and $121.5 million in 2015. The following is a summary of the Company’s future commitments which span more than one future fiscal year:
The Company has numerous assets, predominantly real estate, vehicles and equipment, under various lease arrangements. The Company routinely exercises various lease renewal options and from time to time purchases leased assets for fair value at the end of lease terms. The Company is a party to synthetic leases for one of its major distribution centers and two of its office buildings. The programs qualify as operating leases for accounting purposes, where only the monthly lease cost is recorded in earnings and the liability and value of the underlying assets are off-balance sheet. GUARANTEES — The Company's financial guarantees at December 30, 2017 are as follows:
The Company has guaranteed a portion of the residual value arising from its previously mentioned synthetic leases. The lease guarantees aggregate $102.6 million while the fair value of the underlying assets is estimated at $118.9 million. The related assets would be available to satisfy the guarantee obligations and therefore it is unlikely the Company will incur any future loss associated with these lease guarantees. The Company has issued $72.9 million in standby letters of credit that guarantee future payments which may be required under certain insurance programs. The Company provides various limited and full recourse guarantees to financial institutions that provide financing to U.S. and Canadian Mac Tool distributors and franchisees for their initial purchase of the inventory and truck necessary to function as a distributor and franchisee. In addition, the Company provides limited and full recourse guarantees to financial institutions that extend credit to certain end retail customers of its U.S. Mac Tool distributors and franchisees. The gross amount guaranteed in these arrangements is $74.1 million and the $26.2 million carrying value of the guarantees issued is recorded in debt and other liabilities as appropriate in the Consolidated Balance Sheets. The Company provides product and service warranties which vary across its businesses. The types of warranties offered generally range from one year to limited lifetime, and certain branded products recently acquired carry a lifetime warranty. There are also certain products with no warranty. Further, the Company sometimes incurs discretionary costs to service its products in connection with product performance issues. Historical warranty and service claim experience forms the basis for warranty obligations recognized. Adjustments are recorded to the warranty liability as new information becomes available. Following is a summary of the warranty liability activity for the years ended December 30, 2017, December 31, 2016, and January 2, 2016:
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CONTINGENCIES |
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Environmental Remediation Obligations [Abstract] | |
CONTINGENCIES | CONTINGENCIES The Company is involved in various legal proceedings relating to environmental issues, employment, product liability, workers’ compensation claims and other matters. The Company periodically reviews the status of these proceedings with both inside and outside counsel, as well as an actuary for risk insurance. Management believes that the ultimate disposition of these matters will not have a material adverse effect on operations or financial condition taken as a whole. In connection with the 2010 merger with Black & Decker, the Company assumed certain commitments and contingent liabilities. Black & Decker is a party to litigation and administrative proceedings with respect to claims involving the discharge of hazardous substances into the environment. Some of these assert claims for damages and liability for remedial investigations and clean-up costs with respect to sites that have never been owned or operated by Black & Decker but at which Black & Decker has been identified as a potentially responsible party ("PRP"). Other matters involve current and former manufacturing facilities. The Environmental Protection Agency (“EPA”) has asserted claims in federal court in Rhode Island against certain current and former affiliates of Black & Decker related to environmental contamination found at the Centredale Manor Restoration Project Superfund ("Centredale") site, located in North Providence, Rhode Island. The EPA has discovered a variety of contaminants at the site, including but not limited to, dioxins, polychlorinated biphenyls, and pesticides. The EPA alleges that Black & Decker and certain of its current and former affiliates are liable for site clean-up costs under the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA") as successors to the liability of Metro-Atlantic, Inc., a former operator at the site, and demanded reimbursement of the EPA’s costs related to this site. Black & Decker and certain of its current and former affiliates contest the EPA's allegation that they are responsible for the contamination, and have asserted contribution claims, counterclaims and cross-claims against a number of other PRPs, including the federal government as well as insurance carriers. The EPA released its Record of Decision ("ROD") in September 2012, which identified and described the EPA's selected remedial alternative for the site. Black & Decker and certain of its current and former affiliates are contesting the EPA's selection of the remedial alternative set forth in the ROD, on the grounds that the EPA's actions were arbitrary and capricious and otherwise not in accordance with law, and have proposed other equally-protective, more cost-effective alternatives. On June 10, 2014, the EPA issued an Administrative Order under Sec. 106 of CERCLA, instructing Emhart Industries, Inc. and Black & Decker to perform the remediation of Centredale pursuant to the ROD. Black & Decker and Emhart Industries, Inc. dispute the factual, legal and scientific bases cited by the EPA for such an Order and have provided the EPA with numerous good-faith bases for Black & Decker’s and Emhart Industries, Inc.’s declination to comply with the Order at this time. Black & Decker and Emhart Industries, Inc. continue to vigorously litigate the issue of their liability for environmental conditions at the Centredale site, including the completion of the Phase 1 trial in late July, 2015 and the completion of the Phase 2 trial in April, 2017. The Court in Phase 1 of the trial found that dioxin contamination at the Centredale site was not "divisible," and that Emhart was jointly and severally liable for dioxin contamination at the site. In its Phase 2 Findings of Fact and Conclusions of Law, entered on August 17, 2017, the Court found that certain components of the EPA's selected remedy were arbitrary and capricious, however, and remanded the matter to the EPA while retaining jurisdiction over the ongoing remedy selection and implementation process. The Court also held in Phase 2 that Black and Decker had sufficient cause for its declination to comply with EPA's June 10, 2014 order and that no associated civil penalties or fines were warranted. The United States has filed a Motion for Reconsideration concerning the Court's Phase 2 rulings, and a ruling on that motion is not expected until early in 2018. The United States has also appealed the ruling to the United States Court of Appeals for the First Circuit. Emhart has filed a Motion to Dismiss the Appeal. The 3rd Phase of the litigation/trial, which is in its very early stages, will address the potential allocation of liability to other parties who may have contributed to contamination of the Site with dioxins, PCB's and other contaminants of concern. The Company's estimated remediation costs related to the Centredale site (including the EPA’s past costs as well as costs of additional investigation, remediation, and related costs such as EPA’s oversight costs, less escrowed funds contributed by primary PRPs who have reached settlement agreements with the EPA), which the Company considers to be probable and reasonably estimable, range from approximately $68.1 million to $139.8 million, with no amount within that range representing a more likely outcome until such time as the litigation is resolved through judgment or compromise. The Company’s reserve for this environmental remediation matter of $68.1 million reflects the fact that the EPA considers Metro-Atlantic, Inc. to be a primary source of contamination at the site. As the specific nature of the environmental remediation activities that may be mandated by the EPA at this site have not yet been finally determined through the on-going litigation, the ultimate remedial costs associated with the site may vary from the amount accrued by the Company at December 30, 2017. In the normal course of business, the Company is involved in various lawsuits and claims. In addition, the Company is a party to a number of proceedings before federal and state regulatory agencies relating to environmental remediation. Also, the Company, along with many other companies, has been named as a PRP in a number of administrative proceedings for the remediation of various waste sites, including 27 active Superfund sites. Current laws potentially impose joint and several liabilities upon each PRP. In assessing its potential liability at these sites, the Company has considered the following: whether responsibility is being disputed, the terms of existing agreements, experience at similar sites, and the Company’s volumetric contribution at these sites. The Company’s policy is to accrue environmental investigatory and remediation costs for identified sites when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. In the event that no amount in the range of probable loss is considered most likely, the minimum loss in the range is accrued. The amount of liability recorded is based on an evaluation of currently available facts with respect to each individual site and includes such factors as existing technology, presently enacted laws and regulations, and prior experience in remediation of contaminated sites. The liabilities recorded do not take into account any claims for recoveries from insurance or third parties. As assessments and remediation progress at individual sites, the amounts recorded are reviewed periodically and adjusted to reflect additional technical and legal information that becomes available. As of December 30, 2017 and December 31, 2016, the Company had reserves of $176.1 million and $160.9 million, respectively, for remediation activities associated with Company-owned properties, as well as for Superfund sites, for losses that are probable and estimable. Of the 2017 amount, $22.5 million is classified as current and $153.6 million as long-term which is expected to be paid over the estimated remediation period. As of December 30, 2017, the Company has recorded $12.2 million in other assets related to funding received by the EPA and placed in a trust in accordance with the final settlement with the EPA, embodied in a Consent Decree approved by the United States District Court for the Central District of California on July 3, 2013. Per the Consent Decree, Emhart Industries, Inc. (a dissolved, former indirectly wholly-owned subsidiary of The Black & Decker Corporation) (“Emhart”) has agreed to be responsible for an interim remedy at a site located in Rialto, California and formerly operated by West Coast Loading Corporation (“WCLC”), a defunct company for which Emhart was alleged to be liable as a successor. The remedy will be funded by (i) the amounts received from the EPA as gathered from multiple parties, and, to the extent necessary, (ii) Emhart's affiliate. The interim remedy requires the construction of a water treatment facility and the filtering of ground water at or around the site for a period of approximately 30 years or more. Accordingly, as of December 30, 2017, the Company's cash obligation associated with the aforementioned remediation activities including WCLC is $163.9 million. The range of environmental remediation costs that is reasonably possible is $143.4 million to $277.1 million which is subject to change in the near term. The Company may be liable for environmental remediation of sites it no longer owns. Liabilities have been recorded on those sites in accordance with policy. The Company and approximately 47 other companies comprise the Lower Passaic Cooperating Parties Group (the “CPG”). The CPG members and other companies are parties to a May 2007 Administrative Settlement Agreement and Order on Consent (“AOC”) with the EPA to perform a remedial investigation/feasibility study (“RI/FS”) of the lower seventeen miles of the Lower Passaic River in New Jersey (the “River”). The Company’s potential liability stems from former operations in Newark, New Jersey. As an interim step related to the 2007 AOC, on June 18, 2012, the CPG members voluntarily entered into an AOC with the EPA for remediation actions focused solely at mile 10.9 of the River. The Company’s estimated costs related to the RI/FS and focused remediation action at mile 10.9, based on an interim allocation, are included in its environmental reserves. On April 11, 2014, the EPA issued a Focused Feasibility Study (“FFS”) and proposed plan which addressed various early action remediation alternatives for the lower 8.3 miles of the River. The EPA received public comment on the FFS and proposed plan (including comments from the CPG and other entities asserting that the FFS and proposed plan do not comply with CERCLA) which public comment period ended on August 20, 2014. The CPG submitted to the EPA a draft RI report in February 2015 and draft FS report in April 2015 for the entire lower seventeen miles of the River. On March 4, 2016, the EPA issued a Record of Decision selecting the remedy for the lower 8.3 miles of the River. The cleanup plan adopted by the EPA is now considered a final action for the lower 8.3 miles of the River and will include the removal of 3.5 million cubic yards of sediment, placement of a cap over the entire lower 8.3 miles of the River, and, according to the EPA, will cost approximately $1.4 billion and take 6 years to implement after the remedial design is completed. (The EPA estimates that the remedial design will take four years to complete.) The Company and 105 other parties received a letter dated March 31, 2016 from the EPA notifying such parties of potential liability for the costs of the cleanup of the lower 8.3 miles of the River and a letter dated March 30, 2017 stating that the EPA had offered 20 of the parties (not including the Company) an early cash out settlement. In a letter dated May 17, 2017, the EPA stated that these 20 parties did not discharge any of the eight hazardous substances identified in the lower 8.3 mile ROD as the contaminants of concern. In the March 30, 2017 letter, the EPA stated that other parties who did not discharge dioxins, furans or polychlorinated biphenyls (which are considered the contaminants of concern posing the greatest risk to human health or the environment) may also be eligible for cash out settlement, but expects those parties' allocation to be determined through a complex settlement analysis using a third party allocator. The Company asserts that it did not discharge dioxins, furans or polychlorinated biphenyls and should be eligible for a cash out settlement. There has been no determination as to how the RI/FS will be modified in light of the EPA's decision to implement a final action for the lower 8.3 miles of the River. At this time, the Company cannot reasonably estimate its liability related to the remediation efforts, excluding the RI/FS and remediation actions at mile 10.9, as the RI/FS is ongoing, the ultimate remedial approach and associated cost for the upper portion of the River has not yet been determined, and the parties that will participate in funding the remediation and their respective allocations are not yet known. On September 30, 2016, Occidental Chemical Corporation entered into an agreement with the EPA to perform the remedial design for the cleanup plan for the lower 8.3 miles of the river. Per the terms of a Final Order and Judgment approved by the United States District Court for the Middle District of Florida on January 22, 1991, Emhart is responsible for a percentage of remedial costs arising out of the Kerr McGee Chemical Corporation Superfund Site located in Jacksonville, Florida. On March 15, 2017, the Company received formal notification from the EPA that the EPA had issued a ROD selecting the preferred alternative identified in the Proposed Cleanup Plan. The cleanup adopted by the EPA is currently estimated to cost approximately $68.7 million. Accordingly, in the first quarter of 2017, the Company increased its reserve by $17.1 million which was recorded in Other, net in the Consolidated Statements of Operations. The environmental liability for certain sites that have cash payments beyond the current year that are fixed or reliably determinable have been discounted using a rate of 1.1% to 2.9%, depending on the expected timing of disbursements. The discounted and undiscounted amount of the liability relative to these sites is $46.3 million and $55.4 million, respectively. The payments relative to these sites are expected to be $7.0 million in 2018, $8.7 million in 2019, $2.6 million in 2020, $2.6 million in 2021, $2.6 million in 2022, and $31.9 million thereafter. The amount recorded for identified contingent liabilities is based on estimates. Amounts recorded are reviewed periodically and adjusted to reflect additional technical and legal information that becomes available. Actual costs to be incurred in future periods may vary from the estimates, given the inherent uncertainties in evaluating certain exposures. Subject to the imprecision in estimating future contingent liability costs, the Company does not expect that any sum it may have to pay in connection with these matters in excess of the amounts recorded will have a materially adverse effect on its financial position, results of operations or liquidity. |
DISCONTINUED OPERATIONS |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DISCONTINUED OPERATIONS | he carrying amounts of the assets and liabilities that were expected to be included in the sales of the mechanical security business and the Tools & Storage business sold in the first quarter of 2017 were classified as held for sale as of December 31, 2016, as follows:
Disposals Prior to Adoption of ASU 2014-08 In the fourth quarter of 2014, the Company classified the Security segment’s Spain and Italy operations (“Security Spain and Italy”) as held for sale based on management's intention to sell these businesses. In July 2015, the Company completed the sale of these businesses resulting in an insignificant incremental loss. Security Spain and Italy operations have been reported as discontinued operations in the Company's Consolidated Financial Statements for the year ended January 2, 2016 as follows:
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SELECTED QUARTERLY FINANCIAL DATA SELECTED QUARTERLY FINANCIAL DATA |
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Quarterly Financial Information [Text Block] | SELECTED QUARTERLY FINANCIAL DATA (unaudited)
(1) Includes provision for doubtful accounts. The 2017 year-to-date results above include $156 million of pre-tax acquisition-related charges, a $264 million pre-tax gain on sales of businesses, primarily related to the sale of the mechanical security businesses in the first quarter, and a one-time net tax charge of $24 million recorded in the fourth quarter related to the recently enacted U.S. tax legislation. The net impact of the above items and effect on diluted earnings per share by quarter was as follows:
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SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||
BASIS OF PRESENTATION | BASIS OF PRESENTATION — The Consolidated Financial Statements include the accounts of Stanley Black & Decker, Inc. and its majority-owned subsidiaries (collectively the “Company”) which require consolidation, after the elimination of intercompany accounts and transactions. The Company’s fiscal year ends on the Saturday nearest to December 31. There were 52 weeks in each of the fiscal years 2017, 2016 and 2015. In the first quarter of 2017, the Company sold the majority of its mechanical security businesses within the Security segment, which included the commercial hardware brands of Best Access, phi Precision and GMT, and sold a small business within the Tools & Storage segment. The Company also sold a small business in the Industrial segment in the third quarter of 2017 and a small business in the Tools & Storage segment in the fourth quarter of 2017. The operating results of these businesses have been reported within continuing operations in the Consolidated Financial Statements through their respective dates of sale in 2017 and for the year ended December 31, 2016. In addition, the assets and liabilities related to the businesses sold in the first quarter of 2017 were classified as held for sale on the Company's Consolidated Balance Sheets as of December 31, 2016. Refer to Note T, Divestitures, for further discussion. In March 2017, the Company acquired the Tools business of Newell Brands ("Newell Tools") and the Craftsman brand, which are both being accounted for as business combinations. The results of these acquisitions are being consolidated into the Company's Tools & Storage segment. Refer to Note E, Acquisitions, for further discussion. During the fourth quarter of 2014, the Company classified the Security segment’s Spain and Italy operations as held for sale based on management's intention to sell these businesses. In July 2015, the Company completed the sale of these businesses. The operating results of these businesses have been reported as discontinued operations through the date of sale in the Consolidated Financial Statements. Refer to Note T, Divestitures, for further discussion. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements. While management believes that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results could differ from these estimates. Certain amounts reported in previous years have been reclassified to conform to the 2017 presentation. |
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FOREIGN CURRENCY | FOREIGN CURRENCY — For foreign operations with functional currencies other than the U.S. dollar, asset and liability accounts are translated at current exchange rates, while income and expenses are translated using average exchange rates. Translation adjustments are reported in a separate component of shareowners’ equity and exchange gains and losses on transactions are included in earnings. |
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CASH EQUIVALENTS | CASH EQUIVALENTS — Highly liquid investments with original maturities of three months or less are considered cash equivalents. |
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ACCOUNTS AND FINANCING RECEIVABLE | ACCOUNTS AND FINANCING RECEIVABLE — Trade receivables are stated at gross invoice amounts less discounts, other allowances and provisions for uncollectible accounts. Financing receivables are initially recorded at fair value, less impairments or provisions for credit losses. Interest income earned from financing receivables that are not delinquent is recorded on the effective interest method. The Company considers any financing receivable that has not been collected within 90 days of original billing date as past-due or delinquent. Additionally, the Company considers the credit quality of all past-due or delinquent financing receivables as nonperforming. |
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ALLOWANCE FOR DOUBTFUL ACCOUNTS | ALLOWANCE FOR DOUBTFUL ACCOUNTS — The Company estimates its allowance for doubtful accounts using two methods. First, a specific reserve is established for individual accounts where information indicates the customers may have an inability to meet financial obligations. Second, a reserve is determined for all customers based on a range of percentages applied to aging categories. These percentages are based on historical collection and write-off experience. Actual write-offs are charged against the allowance when collection efforts have been unsuccessful. |
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INVENTORIES | INVENTORIES — U.S. inventories are primarily valued at the lower of Last-In First-Out (“LIFO”) cost or market because the Company believes it results in better matching of costs and revenues. Other inventories are primarily valued at the lower of First-In, First-Out (“FIFO”) cost and net realizable value because LIFO is not permitted for statutory reporting outside the U.S. See Note C, Inventories, for a quantification of the LIFO impact on inventory valuation. |
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PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT — The Company generally values property, plant and equipment (“PP&E”), including capitalized software, at historical cost less accumulated depreciation and amortization. Costs related to maintenance and repairs which do not prolong the asset's useful life are expensed as incurred. Depreciation and amortization are provided using straight-line methods over the estimated useful lives of the assets as follows:
Leasehold improvements are depreciated over the shorter of the estimated useful life or the term of the lease. The Company reports depreciation and amortization of property, plant and equipment in cost of sales and selling, general and administrative expenses based on the nature of the underlying assets. Depreciation and amortization related to the production of inventory and delivery of services are recorded in cost of sales. Depreciation and amortization related to distribution center activities, selling and support functions are reported in selling, general and administrative expenses. The Company assesses its long-lived assets for impairment when indicators that the carrying amounts may not be recoverable are present. In assessing long-lived assets for impairment, the Company groups its long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are generated (“asset group”) and estimates the undiscounted future cash flows that are directly associated with, and expected to be generated from, the use of and eventual disposition of the asset group. If the carrying value is greater than the undiscounted cash flows, an impairment loss must be determined and the asset group is written down to fair value. The impairment loss is quantified by comparing the carrying amount of the asset group to the estimated fair value, which is determined using weighted-average discounted cash flows that consider various possible outcomes for the disposition of the asset group. |
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GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS — Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Intangible assets acquired are recorded at estimated fair value. Goodwill and intangible assets deemed to have indefinite lives are not amortized, but are tested for impairment annually during the third quarter, and at any time when events suggest an impairment more likely than not has occurred. To assess goodwill for impairment, the Company, depending on relevant facts and circumstances, performs either a qualitative assessment, as permitted by Accounting Standards Update ("ASU") 2011-08, Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for Impairment, or a quantitative analysis utilizing a discounted cash flow valuation model. In performing a qualitative assessment, the Company first assesses relevant factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step quantitative goodwill impairment test. The Company identifies and considers the significance of relevant key factors, events, and circumstances that could affect the fair value of each reporting unit. These factors include external factors such as macroeconomic, industry, and market conditions, as well as entity-specific factors, such as actual and planned financial performance. The Company also considers changes in each reporting unit's fair value and carrying amount since the most recent date a fair value measurement was performed. In performing a quantitative analysis, the Company determines the fair value of a reporting unit using management’s assumptions about future cash flows based on long-range strategic plans. This approach incorporates many assumptions including discount rates, future growth rates and expected profitability. In the event the carrying amount of a reporting unit exceeded its fair value, an impairment loss would be recognized to the extent the carrying amount of the reporting unit’s goodwill exceeded the implied fair value of the goodwill. Indefinite-lived intangible assets are tested for impairment utilizing either a qualitative assessment or a quantitative analysis. For the qualitative assessments, the Company identifies and considers relevant key factors, events, and circumstances to determine whether it is necessary to perform a quantitative impairment test. The key factors considered include macroeconomic, industry, and market conditions, as well as the asset's actual and forecasted results. For the quantitative impairment tests, the Company compares the carrying amounts to the current fair market values, usually determined by the estimated cost to lease the assets from third parties. Intangible assets with definite lives are amortized over their estimated useful lives generally using an accelerated method. Under this accelerated method, intangible assets are amortized reflecting the pattern over which the economic benefits of the intangible assets are consumed. Definite-lived intangible assets are also evaluated for impairment when impairment indicators are present. If the carrying amount exceeds the total undiscounted future cash flows, a discounted cash flow analysis is performed to determine the fair value of the asset. If the carrying amount of the asset was to exceed the fair value, it would be written down to fair value. No significant goodwill or other intangible asset impairments were recorded during 2017, 2016 or 201 |
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FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS — Derivative financial instruments are employed to manage risks, including foreign currency, interest rate exposures and commodity prices and are not used for trading or speculative purposes. The Company recognizes all derivative instruments, such as interest rate swap agreements, foreign currency options, commodity contracts and foreign exchange contracts, in the Consolidated Balance Sheets at fair value. Changes in the fair value of derivatives are recognized periodically either in earnings or in shareowners’ equity as a component of other comprehensive income (loss), depending on whether the derivative financial instrument is undesignated or qualifies for hedge accounting, and if so, whether it represents a fair value, cash flow, or net investment hedge. Changes in the fair value of derivatives accounted for as fair value hedges are recorded in earnings in the same caption as the changes in the fair value of the hedged items. Gains and losses on derivatives designated as cash flow hedges, to the extent they are effective, are recorded in other comprehensive income (loss), and subsequently reclassified to earnings to offset the impact of the hedged items when they occur. In the event it becomes probable the forecasted transaction to which a cash flow hedge relates will not occur, the derivative would be terminated and the amount in other comprehensive income (loss) would generally be recognized in earnings. Changes in the fair value of derivatives used as hedges of the net investment in foreign operations, to the extent they are effective, are reported in other comprehensive income (loss) and are deferred until the subsidiary is sold. Changes in the fair value of derivatives designated as hedges under Accounting Standards Codification ("ASC") 815, Derivatives and Hedging, including any portion that is considered ineffective, are reported in earnings in the same caption where the hedged items are recognized. Changes in the fair value of derivatives not designated as hedges under ASC 815 are reported in earnings in Other, net. Refer to Note I, Financial Instruments, for further discussion. The net interest paid or received on interest rate swaps is recognized as interest expense. Gains and losses resulting from the early termination of interest rate swap agreements are deferred and amortized as adjustments to interest expense over the remaining period of the debt originally covered by the terminated swap. |
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REVENUE RECOGNITION | REVENUE RECOGNITION — General: The majority of the Company’s revenues result from the sale of tangible products, where revenue is recognized when the earnings process is complete, collectability is reasonably assured, and the risks and rewards of ownership have transferred to the customer, which generally occurs upon shipment of the finished product, but sometimes is upon delivery to customer facilities. Provisions for customer volume rebates, product returns, discounts and allowances are recorded as a reduction of revenue in the same period the related sales are recorded. Consideration given to customers for cooperative advertising is recognized as a reduction of revenue except to the extent that there is an identifiable benefit and evidence of the fair value of the advertising, in which case the expense is classified as selling, general, and administrative expense. Multiple-Element Arrangements: Approximately seven percent of the Company’s revenues are generated from multiple-element arrangements, primarily in the Security segment. When a sales agreement involves multiple elements, deliverables are separately identified and consideration is allocated based on their relative selling price in accordance with ASC 605-25, Revenue Recognition — Multiple-Element Arrangements. Sales of security monitoring systems may have multiple elements, including equipment, installation and monitoring services. For these arrangements, the Company assesses its revenue arrangements to determine the appropriate units of accounting, with each deliverable provided under the arrangement considered a separate unit of accounting. Amounts assigned to each unit of accounting are based on an allocation of total arrangement consideration using a hierarchy of estimated selling price for the deliverables. The selling price used for each deliverable will be based on Vendor Specific Objective Evidence (“VSOE”) if available, Third Party Evidence (“TPE”) if VSOE is not available, or estimated selling price if neither VSOE nor TPE is available. Revenue recognized for equipment and installation is limited to the lesser of their allocated amounts under the estimated selling price hierarchy or the non-contingent up-front consideration received at the time of installation, since collection of future amounts under the arrangement with the customer is contingent upon the delivery of monitoring services. The Company’s contract sales for the installation of security intruder systems and other construction-related projects are recorded under the percentage-of-completion method. Profits recognized on security contracts in process are based upon estimated contract revenue and related total cost of the project at completion. The extent of progress toward completion is generally measured using input methods based on labor metrics. Revisions to these estimates as contracts progress have the effect of increasing or decreasing profits each period. Provisions for anticipated losses are made in the period in which they become determinable. For certain short duration and less complex installation contracts, revenue is recognized upon contract completion and customer acceptance. The revenues for monitoring and monitoring-related services are recognized as services are rendered over the contractual period. Customer billings for services not yet rendered are deferred and recognized as revenue as the services are rendered. The associated deferred revenue is included in Accrued expenses or Other liabilities on the Consolidated Balance Sheets, as appropriate. |
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COST OF SALES AND SELLING, GENERAL & ADMINISTRATIVE | COST OF SALES AND SELLING, GENERAL & ADMINISTRATIVE — Cost of sales includes the cost of products and services provided reflecting costs of manufacturing and preparing the product for sale. These costs include expenses to acquire and manufacture products to the point that they are allocable to be sold to customers and costs to perform services pertaining to service revenues (e.g. installation of security systems, automatic doors, and security monitoring costs). Cost of sales is primarily comprised of inbound freight, direct materials, direct labor as well as overhead which includes indirect labor and facility and equipment costs. Cost of sales also includes quality control, procurement and material receiving costs as well as internal transfer costs. SG&A costs include the cost of selling products as well as administrative function costs. These expenses generally represent the cost of selling and distributing the products once they are available for sale and primarily include salaries and commissions of the Company’s sales force, distribution costs, notably salaries and facility costs, as well as administrative expenses for certain support functions and related overhead. |
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ADVERTISING COSTS | ADVERTISING COSTS — Television advertising is expensed the first time the advertisement airs, whereas other advertising is expensed as incurred. Advertising costs are classified in SG&A and amounted to $123.3 million in 2017, $124.1 million in 2016, and $101.7 million in 2015. Expense pertaining to cooperative advertising with customers reported as a reduction of Net Sales was $297.4 million in 2017, $232.5 million in 2016, and $211.9 million in 2015. Cooperative advertising with customers classified as SG&A expense amounted to $6.1 million in 2017, $6.6 million in 2016, and $6.4 million in 2015. |
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SALES TAXES | SALES TAXES — Sales and value added taxes collected from customers and remitted to governmental authorities are excluded from Net Sales reported in the Consolidated Statements of Operations. |
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SHIPPING AND HANDLING COSTS | SHIPPING AND HANDLING COSTS — The Company generally does not bill customers for freight. Shipping and handling costs associated with inbound freight are reported in Cost of sales. Shipping costs associated with outbound freight are reported as a reduction of Net Sales and amounted to $218.1 million, $184.0 million, and $183.0 million in 2017, 2016, and 2015, respectively. Distribution costs are classified as SG&A and amounted to $280.1 million, $235.6 million and $229.3 million in 2017, 2016 and 2015, respectively. |
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STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION — Compensation cost relating to stock-based compensation grants is recognized on a straight-line basis over the vesting period, which is generally four years. The expense for stock options and restricted stock units awarded to retirement eligible employees (those aged 55 and over, and with 10 or more years of service) is recognized on the grant date, or (if later) by the date they become retirement-eligible. |
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POSTRETIREMENT DEFINED BENEFIT PLAN | POSTRETIREMENT DEFINED BENEFIT PLAN — The Company uses the corridor approach to determine expense recognition for each defined benefit pension and other postretirement plan. The corridor approach defers actuarial gains and losses resulting from variances between actual and expected results (based on economic estimates or actuarial assumptions) and amortizes them over future periods. For pension plans, these unrecognized gains and losses are amortized when the net gains and losses exceed 10% of the greater of the market-related value of plan assets or the projected benefit obligation at the beginning of the year. For other postretirement benefits, amortization occurs when the net gains and losses exceed 10% of the accumulated postretirement benefit obligation at the beginning of the year. For ongoing, active plans, the amount in excess of the corridor is amortized on a straight-line basis over the average remaining service period for active plan participants. For plans with primarily inactive participants, the amount in excess of the corridor is amortized on a straight-line basis over the average remaining life expectancy of inactive plan participants. |
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INCOME TAXES | INCOME TAXES — The Company accounts for income taxes under the asset and liability method in accordance with ASC 740, Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. Any changes in tax rates on deferred tax assets and liabilities are recognized in income in the period that includes the enactment date. The Company records net deferred tax assets to the extent that it is more likely than not that these assets will be realized. In making this determination, management considers all available positive and negative evidence, including future reversals of existing temporary differences, estimates of future taxable income, tax-planning strategies, and the realizability of net operating loss carryforwards. In the event that it is determined that an asset is not more likely that not to be realized, a valuation allowance is recorded against the asset. Valuation allowances related to deferred tax assets can be impacted by changes to tax laws, changes to statutory tax rates and future taxable income levels. In the event the Company were to determine that it would not be able to realize all or a portion of its deferred tax assets in the future, the unrealizable amount would be charged to earnings in the period in which that determination is made. Conversely, if the Company were to determine that it would be able to realize deferred tax assets in the future in excess of the net carrying amounts, it would decrease the recorded valuation allowance through a favorable adjustment to earnings in the period that the determination was made. The Company records uncertain tax positions in accordance with ASC 740, which requires a two-step process. First, management determines whether it is more likely than not that a tax position will be sustained based on the technical merits of the position and second, for those tax positions that meet the more likely than not threshold, management recognizes the largest amount of the tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related taxing authority. The Company maintains an accounting policy of recording interest and penalties on uncertain tax positions as a component of Income taxes on continuing operations in the Consolidated Statements of Operations. The Company is subject to income tax in a number of locations, including many state and foreign jurisdictions. Significant judgment is required when calculating the worldwide provision for income taxes. Many factors are considered when evaluating and estimating the Company's tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company's unrecognized tax positions will significantly increase or decrease within the next twelve months. These changes may be the result of settlements of ongoing audits or final decisions in transfer pricing matters. The Company periodically assesses its liabilities and contingencies for all tax years still subject to audit based on the most current available information, which involves inherent uncertainty. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Act”). The Act makes broad and complex changes to the U.S. tax code, including, but not limited to: (1) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent; (2) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (3) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (4) requiring a tax on global intangible low-taxed income (“GILTI”) which is a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations; (5) eliminating the corporate alternative minimum tax ("AMT") and changing how existing AMT credits can be realized; (6) creating the base erosion anti-abuse tax ("BEAT"), a new minimum tax; (7) creating a new limitation on deductible interest expense; and (8) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017. As of December 30, 2017, the Company has not completed its accounting for the tax effects of the enactment of the Act; however, in certain cases, as described in Note Q, Income Taxes, the Company has made a reasonable estimate of the effects on its existing deferred tax balances and the one-time transition tax. In other cases, the Company has not been able to make a reasonable estimate and continues to account for those items based on its existing accounting under ASC 740, and the provisions of the tax laws that were in effect immediately prior to enactment. During the fourth quarter of 2017, the Company recognized a provisional net charge of $23.6 million for items it was able to reasonably estimate, which has been included as a component of income taxes on continuing operations. The Company operates in many countries throughout the world through numerous subsidiaries. In order to complete the accounting associated with the Act, the Company will continue to accumulate the relevant data, refine computational elements, monitor and analyze U.S. federal and state guidance if and when issued, and adjust its provisional estimates accordingly within the measurement period prescribed by Staff Accounting Bulletin No. 118 ("SAB 118"). |
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EARNINGS PER SHARE | EARNINGS PER SHARE — Basic earnings per share equals net earnings attributable to common shareowners divided by weighted-average shares outstanding during the year. Diluted earnings per share include the impact of common stock equivalents using the treasury stock method when the effect is dilutive. |
SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||
Depreciation and Amortization, Estimated Useful Lives of Assets | Depreciation and amortization are provided using straight-line methods over the estimated useful lives of the assets as follows:
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ACCOUNTS AND NOTES RECEIVABLE (Tables) |
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ACCOUNTS AND FINANCING RECEIVABLE |
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INVENTORIES (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories |
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PROPERTY, PLANT AND EQUIPMENT (Tables) |
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Property, Plant and Equipment Disclosure [Text Block] | D. PROPERTY, PLANT AND EQUIPMENT
Depreciation and amortization expense associated with property, plant and equipment was as follows:
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Depreciation and Amortization Expense Associated with Property, Plant and Equipment | Depreciation and amortization expense associated with property, plant and equipment was as follows:
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GOODWILL AND INTANGIBLE ASSETS (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Carrying Amount of Goodwill by Segment | GOODWILL — The changes in the carrying amount of goodwill by segment are as follows:
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Intangible Assets | INTANGIBLE ASSETS — Intangible assets at December 30, 2017 and December 31, 2016 were as follows:
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Aggregate Intangible Assets Amortization Expense by Segment | Aggregate intangible assets amortization expense by segment was as follows:
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ACCRUED EXPENSES (Tables) |
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Accrued Expenses | Accrued expenses at December 30, 2017 and December 31, 2016 were as follows:
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LONG-TERM DEBT AND FINANCING ARRANGEMENTS (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt and Financing Arrangements | Long-term debt and financing arrangements at December 30, 2017 and December 31, 2016 were as follows:
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DERIVATIVE FINANCIAL INSTRUMENTS (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Fair Value of Derivatives | A summary of the fair values of the Company’s derivatives recorded in the Consolidated Balance Sheets at December 30, 2017 and December 31, 2016 follows:
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Detail Pre-tax Amounts Reclassified From Accumulated Other Comprehensive Income into Earnings for Active Derivative Financial Instruments | The tables below detail pre-tax amounts reclassified from Accumulated other comprehensive loss into earnings for active derivative financial instruments during the periods in which the underlying hedged transactions affected earnings for 2017, 2016 and 2015:
* Includes ineffective portion and amount excluded from effectiveness testing on derivatives. The tables below detail pre-tax amounts reclassified from Accumulated other comprehensive loss into earnings for active derivative financial instruments during the periods in which the underlying hedged transactions affected earnings for 2017, 2016 and 2015:
* Includes ineffective portion and amount excluded from effectiveness testing on derivatives. |
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Fair Value Adjustments Relating to Swaps | A summary of the fair value adjustments relating to these swaps is as follows:
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Details of Pre-Tax Amounts of Gains and Losses on Net Investment Hedges | The pre-tax gain or loss from fair value changes was as follows:
*Includes ineffective portion and amount excluded from effectiveness testing. |
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Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments | The income statement impacts related to derivatives not designated as hedging instruments for 2017, 2016 and 2015 are as follows:
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CAPITAL STOCK (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Net Earnings Attributable to Common Shareholders and Weighted Average Shares Outstanding used to Calculate Basic and Diluted Earnings Per Share | The following table reconciles net earnings attributable to common shareowners and the weighted-average shares outstanding used to calculate basic and diluted earnings per share for the fiscal years ended December 30, 2017, December 31, 2016, and January 2, 2016.
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Weighted-Average Stock Options, Warrants and Equity Purchase Contracts Not Included in Computation of Diluted Shares Outstanding | The following weighted-average stock options were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive (in thousands):
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Common Stock Share Activity | Common stock activity for 2017, 2016 and 2015 was as follows:
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Common Stock Shares Reserved for Issuance under Various Employee and Director Stock Plans | Common stock shares reserved for issuance under various employee and director stock plans at December 30, 2017 and December 31, 2016 are as follows:
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Weighted Average Assumptions that were Granted as Part of Merger |
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Number of Stock Options and Weighted-average Exercise Prices | The number of stock options and weighted-average exercise prices as of December 30, 2017 are as follows:
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Outstanding and Exercisable Stock Option | Outstanding and exercisable stock option information at December 30, 2017 follows:
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Summary of Non-Vested Restricted Stock Unit Activity and Long-Term Performance Awards | A summary of non-vested restricted stock unit and award activity as of December 30, 2017, and changes during the twelve month period then ended is as follows:
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Restricted Share Units & Awards | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Non-Vested Restricted Stock Unit Activity and Long-Term Performance Awards | A summary of the activity pertaining to the maximum number of shares that may be issued is as follows:
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EMPLOYEE BENEFIT PLANS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expense for Defined Contribution Plans | The expense for such defined contribution plans, aside from the earlier discussed ESOP plans, is as follows:
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Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | Changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss in 2017 are as follows:
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Changes in Pension and Other Post-retirement Benefit Obligations, Fair Value of Plan Assets | Information regarding pension plans in which projected benefit obligations (inclusive of anticipated future compensation increases) exceed plan assets follows:
The changes in the pension and other post-retirement benefit obligations, fair value of plan assets, as well as amounts recognized in the Consolidated Balance Sheets, are shown below.
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Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The accumulated benefit obligation for all defined benefit pension plans was $2.754 billion at December 30, 2017 and $2.667 billion at December 31, 2016. Information regarding pension plans in which accumulated benefit obligations exceed plan assets follows:
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Assumptions used in Valuing Pension and Post-Retirement Plan Obligations and Net Costs | The major assumptions used in valuing pension and post-retirement plan obligations and net costs were as follows:
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Asset Allocations by Asset Category and Level of Valuation Inputs within Fair Value Hierarchy | The Company’s worldwide asset allocations at December 30, 2017 and December 31, 2016 by asset category and the level of the valuation inputs within the fair value hierarchy established by ASC 820 are as follows:
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Expected Future Benefit Payments | EXPECTED FUTURE BENEFIT PAYMENTS — Benefit payments, inclusive of amounts attributable to estimated future employee service, are expected to be paid as follows over the next 10 years:
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Pension Plans, Defined Benefit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Pension Expense | The components of net periodic pension (benefit) expense are as follows:
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Other Postretirement Benefit Plans, Defined Benefit | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Pension Expense | Approximately 13,800 participants are covered under these plans. Net periodic post-retirement benefit expense was comprised of the following elements:
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FAIR VALUE MEASUREMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the Company’s financial assets and liabilities that are measured at fair value on a recurring basis for each of the hierarchy levels:
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Summary of Company's Financial Instruments Carrying and Fair Values | The following table presents the carrying values and fair values of the Company's financial assets and liabilities, as well as the Company's debt, as of December 30, 2017 and December 31, 2016:
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RESTRUCTURING AND ASSET IMPAIRMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restructuring Reserve Activity | A summary of the restructuring reserve activity from December 31, 2016 to December 30, 2017 is as follows:
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BUSINESS SEGMENTS AND GEOGRAPHIC AREAS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENTS | BUSINESS SEGMENTS
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GEOGRAPHIC AREAS | GEOGRAPHIC AREAS
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INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities at the end of each fiscal year were as follows:
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Classification of Deferred Taxes | The components of earnings from continuing operations before income taxes consisted of the following:
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Income Tax Expense (Benefit) Attributable to Continuing Operations | Income tax expense (benefit) attributable to continuing operations consisted of the following:
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Reconciliation of U.S. Federal Statutory Income Tax to Income Taxes on Continuing Operations | The reconciliation of the U.S. federal statutory income tax provision to the income tax provision on continuing operations is as follows:
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Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to the unrecognized tax benefits:
|
COMMITMENTS AND GUARANTEES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Company's Future Commitments | The following is a summary of the Company’s future commitments which span more than one future fiscal year:
|
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Summary of Guarantees | The Company's financial guarantees at December 30, 2017 are as follows:
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Summary of Warranty Liability Activity | Following is a summary of the warranty liability activity for the years ended December 30, 2017, December 31, 2016, and January 2, 2016:
|
DISCONTINUED OPERATIONS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2017 | |||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||
Operating Results, Assets and Liabilities of Divested Businesses |
|
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
||||||||
Allowance for Doubtful Accounts | ||||||||||
Movement in Valuation Allowances and Reserves | ||||||||||
Beginning balance | $ 77.5 | $ 72.9 | $ 60.7 | |||||||
Charged to Costs and Expenses | 14.4 | 21.9 | 27.3 | |||||||
Charged To Other Accounts | [1],[2] | 10.6 | 4.8 | 0.7 | ||||||
Deductions | [3] | (23.3) | (22.1) | (15.8) | ||||||
Ending balance | 79.2 | 77.5 | 72.9 | |||||||
Tax Valuation Allowance | ||||||||||
Movement in Valuation Allowances and Reserves | ||||||||||
Beginning balance | 525.5 | 480.7 | 551.9 | |||||||
Charged to Costs and Expenses | 262.4 | 74.5 | 30.5 | |||||||
Charged To Other Accounts | [1],[2] | 22.8 | 4.4 | 1.7 | ||||||
Deductions | [3] | (294.0) | (34.1) | (103.4) | ||||||
Ending balance | $ 516.7 | $ 525.5 | $ 480.7 | |||||||
|
ACCOUNTS AND NOTES RECEIVABLE (Detail) - USD ($) $ in Millions |
Dec. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Receivables [Abstract] | ||
Trade accounts receivable | $ 1,421.8 | $ 1,137.2 |
Trade notes receivable | 164.7 | 140.1 |
Other accounts receivable | 128.6 | 103.0 |
Gross accounts and notes receivable | 1,715.1 | 1,380.3 |
Allowance for doubtful accounts | (79.2) | (77.5) |
Accounts and notes receivable, net | $ 1,635.9 | $ 1,302.8 |
INVENTORIES (Detail) - USD ($) $ in Millions |
Dec. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished products | $ 1,461.4 | $ 1,044.2 |
Work in process | 155.5 | 133.3 |
Raw materials | 401.5 | 300.5 |
Total | $ 2,018.4 | $ 1,478.0 |
INVENTORIES - Additional Information (Detail) - USD ($) $ in Millions |
Dec. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Business Acquisition [Line Items] | ||
Net inventory amount valued at lower of LIFO cost or market | $ 896.9 | $ 662.8 |
Increase in inventories if LIFO method had not been used | 2.9 | $ 11.3 |
Craftsman [Member] | Inventories [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 15.7 | |
Newell Tools [Member] | Inventories [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | $ 195.8 |
PROPERTY, PLANT AND EQUIPMENT (Detail) - USD ($) $ in Millions |
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
---|---|---|---|
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | $ 3,659.5 | $ 3,160.2 | |
Less: accumulated depreciation and amortization | (1,917.0) | (1,709.0) | |
Property, Plant and Equipment, net | 1,742.5 | 1,451.2 | $ 1,450.2 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | 110.9 | 107.3 | |
Land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | 53.0 | 37.0 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | 611.8 | 519.3 | |
Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | 140.0 | 114.2 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | 2,343.7 | 2,008.5 | |
Computer software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | $ 400.1 | $ 373.9 |
Depreciation and Amortization Expense Associated with Property, Plant and Equipment (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 253.6 | $ 221.8 | $ 219.2 |
Amortization | 43.3 | 41.8 | 37.7 |
Depreciation and amortization expense | $ 296.9 | $ 263.6 | $ 256.9 |
GOODWILL AND INTANGIBLE ASSETS - Changes in Carrying Amount of Goodwill by Segment (Detail) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 30, 2017 |
Sep. 30, 2017 |
|
Goodwill | ||
Balance December 31, 2016 | $ 6,694.0 | |
Acquisitions | 1,823.2 | |
Foreign currency translation and other | 258.9 | |
Balance December 30, 2017 | 8,776.1 | |
Construction and Do It Yourself | ||
Goodwill | ||
Balance December 31, 2016 | 3,247.8 | |
Acquisitions | 1,762.7 | |
Foreign currency translation and other | 179.2 | |
Balance December 30, 2017 | 5,189.7 | |
Security Segment Business [Domain] | ||
Goodwill | ||
Balance December 31, 2016 | 2,007.0 | |
Acquisitions | 60.5 | |
Foreign currency translation and other | 64.5 | |
Balance December 30, 2017 | 2,132.0 | |
Industrial Segment | ||
Goodwill | ||
Balance December 31, 2016 | 1,439.2 | |
Acquisitions | 0.0 | |
Foreign currency translation and other | 15.2 | |
Balance December 30, 2017 | $ 1,454.4 | |
Infrastructure business [Member] | Industrial Segment | ||
Goodwill [Line Items] | ||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 37.00% | 18.00% |
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Detail) - USD ($) $ in Millions |
Dec. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,784.5 | $ 2,065.5 |
Accumulated Amortization | (1,483.0) | (1,274.5) |
Patents and copyrights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 44.1 | 40.7 |
Accumulated Amortization | (41.0) | (36.5) |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 154.0 | 152.0 |
Accumulated Amortization | (111.0) | (100.4) |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,326.1 | 1,614.6 |
Accumulated Amortization | (1,155.4) | (978.9) |
Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 260.3 | 258.2 |
Accumulated Amortization | (175.6) | $ (158.7) |
Goodwill [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets | $ 2,100.0 |
GOODWILL AND INTANGIBLE ASSETS - Aggregate Intangible Assets Amortization Expense by Segment (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 8,776.1 | $ 6,694.0 | |
Amortization of intangible Assets | 163.8 | 144.4 | $ 157.1 |
Construction and Do It Yourself | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 5,189.7 | 3,247.8 | |
Amortization of intangible Assets | 68.0 | 36.8 | 39.0 |
Security Segment Business [Domain] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 2,132.0 | 2,007.0 | |
Industrial Segment | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 1,454.4 | 1,439.2 | |
Amortization of intangible Assets | 45.4 | 49.8 | 56.8 |
Securities Industry [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible Assets | $ 50.4 | $ 57.8 | $ 61.3 |
ACCRUED EXPENSES (Detail) - USD ($) $ in Millions |
Dec. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Payables and Accruals [Abstract] | ||
Payroll and related taxes | $ 339.5 | $ 268.0 |
Income and other taxes | 142.1 | 117.6 |
Customer rebates and sales returns | 95.0 | 68.2 |
Insurance and benefits | 73.7 | 87.4 |
Accrued restructuring costs | 23.2 | 35.6 |
Derivative financial instruments | 103.1 | 49.8 |
Warranty costs | 71.3 | 68.8 |
Deferred revenue | 98.9 | 81.9 |
Other | 405.3 | 324.2 |
Total | $ 1,352.1 | $ 1,101.5 |
DERIVATIVE FINANCIAL INSTRUMENTS - Detail Pre-tax Amounts Reclassified from Accumulated Other Comprehensive Loss into Earnings for Active Derivative Financial Instruments (Detail) - Cash Flow Hedges - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 54.5 | ||||
Gain (Loss) reclassified from OCI to income (Effective Portion) | 4.7 | $ 3.3 | $ 22.4 | ||
Interest Rate Contracts | Interest expenses | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) recorded in OCI | 8.4 | 6.2 | 6.8 | ||
Gain (Loss) reclassified from OCI to income (Effective Portion) | 0.0 | 0.0 | 0.0 | ||
Gain (Loss) recognized in income (Ineffective Portion) | 0.0 | 0.0 | 0.0 | ||
Foreign Exchange Contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) recorded in OCI | 66.6 | (19.3) | (52.5) | ||
Gain (Loss) recognized in income (Ineffective Portion) | [1] | 0.0 | 0.0 | 0.0 | |
Foreign Exchange Contracts | Cost of Sales | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) reclassified from OCI to income (Effective Portion) | $ (8.4) | $ 21.7 | $ 57.4 | ||
|
DERIVATIVE FINANCIAL INSTRUMENTS - Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments (Detail) - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
Dec. 28, 2013 |
Jan. 01, 2011 |
|
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | ||||
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other, net | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Amount of gain (loss) recorded in Income on derivative, year to date | $ 51.5 | $ (21.1) | $ (8.9) | ||
Not Designated as Hedging Instrument | Forward Contracts | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Derivative, Notional Amount | 1,000.0 | 1,500.0 | |||
Fair Value Hedging [Member] | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Derivative, Loss on Derivative | $ 3.2 | 6.9 | 14.2 | ||
Interest Expense, Debt | $ 19.9 | $ 47.1 | |||
Notes 5 Point 75 Percent due 2053 [Member] | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | 5.75% | 5.75% | ||
Notes 5 Point 75 Percent due 2053 [Member] | Fair Value Hedging [Member] | Interest Rate Risk [Member] | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Derivative, Notional Amount | $ 400.0 |
DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
Apr. 01, 2017 |
Dec. 28, 2013 |
Oct. 31, 2012 |
Jan. 31, 2012 |
Jan. 01, 2011 |
|||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Commercial Paper Amount Outstanding | $ 3,000.0 | $ 2,000.0 | ||||||||
Commercial Paper Maximum Borrowing Capacity | 3,000.0 | $ 3,000.0 | ||||||||
Payments for (Proceeds from) Derivative Instruments | 2.6 | 94.7 | $ 144.4 | |||||||
Long-term debt, face amount | 3,856.7 | |||||||||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | 136.1 | |||||||||
Long-term debt, interest rate | 4.25% | |||||||||
Matured foreign exchange contracts, net cash payment | 23.3 | $ (104.7) | (137.7) | |||||||
Notes 5 Point 75 Percent due 2053 [Member] | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Long-term debt, face amount | $ 400.0 | |||||||||
Long-term debt, interest rate | 5.75% | 5.75% | 5.75% | |||||||
Notes payable due 2021 | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Long-term debt, interest rate | 3.40% | 3.40% | ||||||||
Notes 5 Point 20 Percent Due 2040 [Member] | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Long-term debt, interest rate | 5.20% | 5.20% | ||||||||
Notes 7 Point 05 Percent Due 2028 [Member] | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Long-term debt, interest rate | 7.05% | 7.05% | ||||||||
Not Designated as Hedging Instrument | Forward Contracts | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Derivative, Notional Amount | $ 1,000.0 | $ 1,500.0 | ||||||||
Cash Flow Hedges | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
After-tax gain (loss) for cash flow hedge effectiveness in accumulated other comprehensive loss | (112.6) | (46.3) | ||||||||
Gain (Loss) reclassified from OCI to income (Effective Portion) | 4.7 | 3.3 | 22.4 | |||||||
Cash Flow Hedges | Foreign Exchange Contracts | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (66.6) | 19.3 | 52.5 | |||||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | [1] | 0.0 | 0.0 | 0.0 | ||||||
Cash Flow Hedges | Foreign Exchange Contracts | Cost of Sales | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Hedged item impact on Consolidated Statement of Operations | 8.4 | (21.7) | (57.4) | |||||||
Gain (Loss) reclassified from OCI to income (Effective Portion) | (8.4) | 21.7 | 57.4 | |||||||
Cash Flow Hedges | Interest Rate Swap | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Derivative, Notional Amount | 400.0 | |||||||||
Cash Flow Hedges | Interest Rate Contracts | Interest expenses | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (8.4) | (6.2) | (6.8) | |||||||
Gain (Loss) reclassified from OCI to income (Effective Portion) | 0.0 | 0.0 | 0.0 | |||||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 0.0 | 0.0 | 0.0 | |||||||
Cash Flow Hedges | Foreign Exchange Forward | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
De-designated forward currency contracts, maturity year | 2017 | |||||||||
Derivative, Notional Amount | $ 559.9 | 503.8 | ||||||||
Cash Flow Hedges | Foreign Exchange Option | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Derivative, Notional Amount | 400.0 | 252.0 | ||||||||
Fair Value Hedges | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Net swap accruals and amortization of gains on terminated swaps | 3.2 | 6.9 | 14.2 | |||||||
Interest Expense, Debt | 19.9 | 47.1 | ||||||||
Fair Value Hedges | Interest Rate Risk [Member] | Notes 5 Point 75 Percent due 2053 [Member] | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Derivative, Notional Amount | 400.0 | |||||||||
Fair Value Hedges | Interest Rate Risk [Member] | Notes payable due 2021 | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Derivative, Notional Amount | $ 400.0 | |||||||||
Long-term debt, interest rate | 3.40% | |||||||||
Fair Value Hedges | Interest Rate Risk [Member] | Notes 7 Point 05 Percent Due in 2028 [Member] | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Long-term debt, interest rate | 7.05% | |||||||||
Fair Value Hedges | Interest Rate Risk [Member] | Notes 7 Point 05 Percent Due 2028 [Member] | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Derivative, Notional Amount | $ 150.0 | |||||||||
Net Investment Hedging | Foreign Exchange Contracts | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Gain (loss) included in accumulated other comprehensive income (loss) | (3.4) | (88.6) | ||||||||
Matured foreign exchange contracts, net cash payment | 23.3 | 104.7 | 137.7 | |||||||
Net Investment Hedging | Foreign Exchange Contracts | Currency British Pound Sterling [Member] | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Derivative, Notional Amount | 751.2 | 1,000.0 | ||||||||
Net Investment Hedging | Foreign Exchange Contracts | Other, net | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (131.3) | (117.8) | (75.5) | |||||||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 0.0 | 0.0 | $ 0.0 | |||||||
Net Investment Hedging | Currency Swap [Member] | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||
Derivative, Notional Amount | $ 250.0 | |||||||||
|
CAPITAL STOCK - Reconciliation of Net Earnings Attributable to Common Shareholders and Weighted Average Shares Outstanding used to Calculate Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2017 |
Sep. 30, 2017 |
Jul. 01, 2017 |
Apr. 01, 2017 |
Dec. 31, 2016 |
Oct. 01, 2016 |
Jul. 02, 2016 |
Apr. 02, 2016 |
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Numerator | |||||||||||
Net earnings from continuing operations attributable to common shareowners | $ 1,226.0 | $ 965.3 | $ 903.8 | ||||||||
Net loss from discontinued operations | 0.0 | 0.0 | 20.1 | ||||||||
Net Earnings Attributable to Common Shareowners | $ 281.5 | $ 274.2 | $ 277.2 | $ 393.1 | $ 255.5 | $ 248.9 | $ 271.5 | $ 189.4 | $ 1,226.0 | $ 965.3 | $ 883.7 |
Denominator | |||||||||||
Basic earnings per share -- weighted-average shares | 149,629 | 146,041 | 148,234 | ||||||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 2,820 | 2,166 | 4,472 | ||||||||
Diluted earnings per share -- weighted-average shares | 152,449 | 148,207 | 152,706 | ||||||||
Basic earnings per share of common stock: | |||||||||||
Continuing operations (USD per share) | $ 8.19 | $ 6.61 | $ 6.10 | ||||||||
Discontinued operations (USD per share) | 0.00 | 0.00 | (0.14) | ||||||||
Total basic earnings per share of common stock (USD per share) | $ 1.88 | $ 1.83 | $ 1.85 | $ 2.63 | $ 1.74 | $ 1.71 | $ 1.87 | $ 1.30 | 8.19 | 6.61 | 5.96 |
Diluted earnings per share of common stock: | |||||||||||
Continuing operations (USD per share) | 8.04 | 6.51 | 5.92 | ||||||||
Discontinued operations (USD per share) | 0.00 | 0.00 | (0.13) | ||||||||
Total diluted earnings per share of common stock (USD per share) | $ 1.84 | $ 1.80 | $ 1.82 | $ 2.59 | $ 1.71 | $ 1.68 | $ 1.84 | $ 1.28 | $ 8.04 | $ 6.51 | $ 5.79 |
CAPITAL STOCK - Weighted-average Stock Options, Warrants and Equity Purchase Contracts Not Included in Computation of Diluted Shares Outstanding (Detail) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 17, 2016 |
Nov. 30, 2016 |
Dec. 30, 2017 |
Jul. 01, 2017 |
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
Dec. 28, 2013 |
Dec. 02, 2015 |
Oct. 03, 2015 |
Nov. 30, 2010 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Common Stock, Par or Stated Value Per Share | $ 2.5 | $ 2.5 | $ 2.5 | ||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 3,504,165 | 0.7246 | 0.7241 | 418,234 | |||||||
Common Stock, Shares, Issued | 3,504,165 | 176,902,738 | 176,902,738 | 176,902,738 | |||||||
Stock options | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities excluded from the computation of EPS | 389,000 | 734,000 | 646,000 | ||||||||
Notes 2 Point 25 Percent due 2018 [Member] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Long-term debt, including current maturities | $ 345.0 | $ 345.0 | |||||||||
Common Stock, Par or Stated Value Per Share | $ 100 | $ 100 | |||||||||
Convertible notes payable due in 2018 (subordinated) | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Long-term debt, including current maturities | $ 632.5 | ||||||||||
Convertible Preferred Stock Shares Issuable Upon Conversion | 3,504,165 | ||||||||||
Common Stock | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 1.0157 | 1.0157 | |||||||||
Common Stock | Minimum | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 1.0122 | 1.0122 | 1.0122 | ||||||||
Convertible Preferred Units | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Convertible Notes Conversion Rate Number Of Common Stock Shares | 1.3789 | 1.3763 | |||||||||
Convertible Preferred Units | Maximum | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Convertible Notes Conversion Rate Number Of Common Stock Shares | 1.2399 | 1.2399 |
CAPITAL STOCK - Common Stock Share Activity (Detail) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 17, 2016 |
Feb. 08, 2016 |
Feb. 01, 2016 |
Nov. 30, 2016 |
Oct. 31, 2016 |
Oct. 31, 2014 |
Nov. 30, 2010 |
Dec. 30, 2017 |
Jul. 01, 2017 |
Apr. 04, 2015 |
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
Dec. 28, 2013 |
Oct. 03, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Treasury Stock, Shares, Acquired | 2,446,287 | 1,316,858 | 3,381,162 | 3,940,087 | 9,227,564 | ||||||||||
Payments for Repurchase of Common Stock | $ 230.9 | $ 124.2 | $ 326.1 | $ 28.7 | $ 374.1 | $ 649.8 | |||||||||
Option Indexed to Issuer's Equity, Settlement Alternatives, Shares, at Fair Value | 293,142 | 911,077 | 711,376 | 1,692,778 | |||||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 3,504,165 | 0.7246 | 0.7241 | 418,234 | |||||||||||
Forward share purchase contract | $ 147.4 | $ 150.0 | $ 350.0 | ||||||||||||
Option Indexed to Issuer's Equity, Shares | 4,600,000 | ||||||||||||||
Cash Settlement on Forward Stock Purchase Contract | $ 345.0 | $ 0.0 | $ (147.4) | $ 0.0 | |||||||||||
Common Stock Share Activity | |||||||||||||||
Outstanding, beginning of year | 157,125,450 | 152,559,767 | 153,944,291 | 157,125,450 | |||||||||||
Issued from treasury | 1,680,339 | 4,870,761 | 6,046,405 | ||||||||||||
Outstanding, end of year | 154,038,031 | 154,038,031 | 152,559,767 | 153,944,291 | |||||||||||
Shares subject to the forward share purchase contract | (1,603,822) | (1,603,822) | (3,645,510) | (3,645,510) | (3,645,510) | (3,645,510) | (5,249,332) | ||||||||
Outstanding, less shares subject to the forward share purchase contract | 150,392,521 | 150,392,521 | 148,914,257 | 148,694,959 | |||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 202,075 | 6,255,285 | |||||||||||||
Convertible Preferred Stock [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Conversion of Stock, Shares Issued | 8,433,123 | 2,869,169 | 3,500,000.0 | ||||||||||||
Call Option [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Option Indexed to Issuer's Equity, Shares | 3,100,000.0 | 9,100,000.0 | 12,200,000.0 | 12,200,000.0 |
CAPITAL STOCK - Common Stock Shares Reserved for Issuance under Various Employee and Director Stock Plans (Detail) - shares |
Dec. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Common stock shares reserved for issuance | 4,272,276 | 6,935,076 |
Employee stock purchase plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Common stock shares reserved for issuance | 1,745,939 | 1,936,093 |
Other stock-based compensation plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Common stock shares reserved for issuance | 2,526,337 | 4,998,983 |
CAPITAL STOCK - Assumptions used for Black-Scholes valuation of Options (Detail) - Stock options - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average expected volatility | 20.00% | 24.10% | 25.00% |
Dividend yield | 1.50% | 2.00% | 2.00% |
Risk-free interest rate | 2.20% | 2.00% | 1.90% |
Expected term | 5 years 2 months 12 days | 5 years 3 months | 5 years 3 months |
Fair value per option | $ 30.71 | $ 23.41 | $ 21.94 |
Weighted average vesting period | 2 years 10 months 24 days | 2 years 4 months 24 days | 2 years 9 months 18 days |
CAPITAL STOCK - Assumptions used in Valuation of Pre-merger Black and Decker Stock Options (Detail) - Stock options - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average expected volatility | 20.00% | 24.10% | 25.00% |
Dividend yield | 1.50% | 2.00% | 2.00% |
Risk-free interest rate | 2.20% | 2.00% | 1.90% |
Expected term | 5 years 2 months 12 days | 5 years 3 months | 5 years 3 months |
Fair value per option | $ 30.71 | $ 23.41 | $ 21.94 |
CAPITAL STOCK - Number of Stock Options and Weighted-average Exercise Prices (Detail) |
12 Months Ended |
---|---|
Dec. 30, 2017
$ / shares
shares
| |
Options | |
Outstanding, beginning of year (in shares) | shares | 6,433,586 |
Granted (in shares) | shares | 1,191,246 |
Exercised (in shares) | shares | (945,473) |
Forfeited (in shares) | shares | (117,955) |
Outstanding, end of year (in shares) | shares | 6,561,404 |
Exercisable, end of year (in shares) | shares | 3,937,798 |
Price | |
Outstanding, beginning of year (USD per share) | $ / shares | $ 86.33 |
Granted (USD per share) | $ / shares | 169.21 |
Exercised (USD per share) | $ / shares | 73.96 |
Forfeited (USD per share) | $ / shares | 110.62 |
Outstanding, end of year (USD per share) | $ / shares | 102.56 |
Exercisable, end of year (USD per share) | $ / shares | $ 78.72 |
CAPITAL STOCK - Outstanding and Exercisable Stock Option (Detail) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 440.5 | |
Oustanding Stock Options, Options (in shares) | 6,561,404 | 6,433,586 |
Oustanding Stock Options, Weighted-average Remaining Contractual Life | 6 years 7 months 17 days | |
Oustanding Stock Options, Weighted-average Exercise Price (USD per share) | $ 102.56 | |
Exercisable Stock Options, Options (in shares) | 3,937,798 | |
Exercisable Stock Options, Weighted-average Remaining Contractual Life | 5 years 4 days | |
Exercisable Stock Options, Weighted-average Exercise Price (USD per share) | $ 78.72 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 358.2 | |
$35.00 and below | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Oustanding Stock Options, Options (in shares) | 22,040 | |
Oustanding Stock Options, Weighted-average Remaining Contractual Life | 11 months 19 days | |
Oustanding Stock Options, Weighted-average Exercise Price (USD per share) | $ 33.11 | |
Exercisable Stock Options, Options (in shares) | 22,040 | |
Exercisable Stock Options, Weighted-average Remaining Contractual Life | 11 months 19 days | |
Exercisable Stock Options, Weighted-average Exercise Price (USD per share) | $ 33.11 | |
$35.01 - 50.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Oustanding Stock Options, Options (in shares) | 17,956 | |
Oustanding Stock Options, Weighted-average Remaining Contractual Life | 1 year 29 days | |
Oustanding Stock Options, Weighted-average Exercise Price (USD per share) | $ 46.97 | |
Exercisable Stock Options, Options (in shares) | 17,956 | |
Exercisable Stock Options, Weighted-average Remaining Contractual Life | 1 year 29 days | |
Exercisable Stock Options, Weighted-average Exercise Price (USD per share) | $ 46.97 | |
$50.01 - higher | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Oustanding Stock Options, Options (in shares) | 6,521,408 | |
Oustanding Stock Options, Weighted-average Remaining Contractual Life | 6 years 8 months 1 day | |
Oustanding Stock Options, Weighted-average Exercise Price (USD per share) | $ 102.95 | |
Exercisable Stock Options, Options (in shares) | 3,897,802 | |
Exercisable Stock Options, Weighted-average Remaining Contractual Life | 5 years 18 days | |
Exercisable Stock Options, Weighted-average Exercise Price (USD per share) | $ 79.12 | |
Restricted Share Units & Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 1 month 12 days |
CAPITAL STOCK - Summary of Non-vested Restricted Stock Unit Activity (Detail) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Granted, Value, Share-based Compensation, Gross | $ 7.0 | $ 2.2 | $ 2.1 |
Share-based Compensation | 78.7 | 81.2 | 67.9 |
Weighted Average Grant Date Fair Value | |||
Excess Tax Benefit from Share-based Compensation | 18.3 | 9.1 | 21.2 |
Restricted Share Units & Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | 31.7 | $ 32.6 | $ 30.9 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 14.7 | ||
Share Units | |||
Non-vested, Beginning Balance (in shares) | 1,132,024 | ||
Granted (in shares) | 304,976 | 445,155 | 349,768 |
Vested (in shares) | (290,980) | ||
Forfeited (in shares) | (61,345) | ||
Non-vested, Ending Balance (in shares) | 1,084,675 | 1,132,024 | |
Weighted Average Grant Date Fair Value | |||
Non-vested, Beginning Balance (USD per share) | $ 100.53 | ||
Granted (USD per share) | 160.04 | $ 118.20 | $ 107.43 |
Vested (USD per share) | 100.31 | ||
Forfeited (USD per share) | 104.98 | ||
Non-vested, Ending Balance (USD per share) | $ 121.89 | $ 100.53 | |
Excess Tax Benefit from Share-based Compensation | $ 4.9 | $ 2.4 | $ 7.0 |
Non Employee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 1.0 | $ 1.1 | $ 1.1 |
CAPITAL STOCK - Summary of Long-Term Performance Awards Activity (Detail) - Long-Term Performance Awards |
12 Months Ended |
---|---|
Dec. 30, 2017
$ / shares
shares
| |
Share Units | |
Non-vested, Beginning Balance (in shares) | shares | 801,074 |
Granted (in shares) | shares | 201,575 |
Vested (in shares) | shares | (242,898) |
Forfeited (in shares) | shares | (66,838) |
Non-vested, Ending Balance (in shares) | shares | 692,913 |
Weighted Average Grant Date Fair Value | |
Non-vested, Beginning Balance (USD per share) | $ / shares | $ 84.03 |
Granted (USD per share) | $ / shares | 119.34 |
Vested (USD per share) | $ / shares | 75.13 |
Forfeited (USD per share) | $ / shares | 80.12 |
Non-vested, Ending Balance (USD per share) | $ / shares | $ 97.80 |
CAPITAL STOCK - Additional Information, Earnings Per Share (Detail) $ in Millions |
Dec. 30, 2017
USD ($)
|
---|---|
Class of Warrant or Right [Line Items] | |
Long-term debt, face amount | $ 3,856.7 |
CAPITAL STOCK - Additional Information, Common Stock Share Activity (Detail) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Oct. 31, 2016 |
Oct. 31, 2014 |
Apr. 04, 2015 |
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Class of Stock [Line Items] | ||||||
Repurchase of common stock, shares | (202,075) | (4,651,463) | (9,227,564) | |||
Forward share purchase contract | $ 147.4 | $ 150.0 | $ 350.0 | |||
Forward share purchase contract, shares purchased | 1,603,822 | 1,603,822 | 3,645,510 | 3,645,510 | 3,645,510 | 5,249,332 |
CAPITAL STOCK - Additional Information, Preferred Stock Purchase Rights (Detail) |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2017
$ / shares
|
Dec. 30, 2017
$ / shares
|
Dec. 31, 2016
$ / shares
|
Dec. 31, 2016
SEK / shares
|
|
Class of Stock [Line Items] | ||||
Preferred Stock Conversion Rate Number Of Common Stock Shares | $ 6.1627 | $ 6.1667 | ||
Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock purchase right, purchase rights granted per share of common stock | SEK / shares | SEK 1 | |||
Preferred stock purchase right, exercise price (USD per right) | $ 220 | |||
Preferred stock purchase right, expiration date | Mar. 10, 2016 |
CAPITAL STOCK - Additional Information, Stock Option Valuation Assumptions (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate intrinsic value | $ 72.7 | $ 35.9 | $ 102.7 |
Stock options vesting period | 4 years | ||
Fair value assumption for stock options, historical volatility expected life | 5 years 3 months | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options term | 10 years | ||
Stock options vesting period | 4 years |
CAPITAL STOCK - Additional Information, Stock Options (Detail) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 78.7 | $ 81.2 | $ 67.9 |
Cash received from exercise of stock options | 69.9 | ||
Tax benefit from exercise of stock options | 25.8 | ||
Aggregate intrinsic value | 72.7 | 35.9 | 102.7 |
Excess Tax Benefit from Share-based Compensation | $ 18.3 | 9.1 | 21.2 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation, minimum retirement age for eligibility | 55 years | ||
Number of years of service to be eligible for employee retirement compensation | 10 years | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise Price Ranges, lower (USD per share) | $ 30.03 | ||
Exercise Price Ranges, upper (USD per share) | $ 168.78 | ||
Share-based Compensation | $ 21.3 | $ 22.8 | $ 16.7 |
Unrecognized pre-tax compensation expense | $ 48.9 | ||
Number of years of service to be eligible for employee retirement compensation | 1 year 10 months 24 days |
CAPITAL STOCK - Additional Information, Employee Stock Purchase Plan (Detail) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Weighted average exercise price (USD per share) | $ 169.21 | ||
Aggregate intrinsic value | $ 72.7 | $ 35.9 | $ 102.7 |
Stock-based compensation expense | $ 78.7 | $ 81.2 | $ 67.9 |
Employee Stock Purchase Plans | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Employee stock purchase plan, discounted purchase price percentage | 85.00% | ||
Weighted average exercise price (USD per share) | $ 103.35 | ||
Employee stock purchase plan, shares authorized for subscription | 6,000,000 | ||
Employee stock purchase plan, shares issued | 190,154 | 168,233 | 182,039 |
Employee stock purchase plan, price per share | $ 103.35 | $ 84.46 | $ 71.80 |
Aggregate intrinsic value | $ 8.7 | $ 4.8 | $ 5.4 |
Cash received related to ESPP purchases | $ 19.7 | ||
Expected term | 1 year | 1 year | 1 year |
Dividend yield | 1.80% | 2.10% | 2.20% |
Expected volatility | 21.00% | 20.00% | 19.00% |
Risk-free interest rate | 0.90% | 0.50% | 0.10% |
Weighted average fair value of purchase rights granted | $ 35.70 | $ 29.68 | $ 31.41 |
Stock-based compensation expense | $ 6.7 | $ 4.7 | $ 5.4 |
CAPITAL STOCK - Additional Information, Restricted Share Units and Awards (Detail) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options vesting period | 4 years | ||
Stock-based compensation expense | $ 78.7 | $ 81.2 | $ 67.9 |
Excess Tax Benefit from Share-based Compensation, Financing Activities | 18.3 | 9.1 | 21.2 |
Non Employee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 1.0 | $ 1.1 | $ 1.1 |
Restricted Share Units & Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options vesting period | 4 years | ||
Restricted stock units and awards, granted (in shares) | 304,976 | 445,155 | 349,768 |
Weighted average grant date fair value, granted (USD per share) | $ 160.04 | $ 118.20 | $ 107.43 |
Stock-based compensation expense | $ 31.7 | $ 32.6 | $ 30.9 |
Stock-based compensation, tax benefit | 14.7 | ||
Excess Tax Benefit from Share-based Compensation, Financing Activities | 4.9 | 2.4 | 7.0 |
Unrecognized pre-tax compensation expense | $ 87.5 | ||
Unrecognized pre-tax compensation expense, weighted average recognition period | 2 years 1 month 12 days | ||
Total fair value of shares vested | $ 46.6 | 37.0 | 72.2 |
Employee Stock Purchase Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 6.7 | $ 4.7 | $ 5.4 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 1 year | 1 year | 1 year |
CAPITAL STOCK - Additional Information, Long-Term Performance Awards (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award performance period | 3 years | ||
Earnings per share and return on capital employed as percentage of share based payment | 75.00% | ||
Market based element as percentage of share based payment | 25.00% | ||
Long term performance awards, grant year | 2020 | 2019 | 2018 |
Share-based Compensation | $ 78.7 | $ 81.2 | $ 67.9 |
Long-Term Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 18.0 | $ 20.0 | $ 13.8 |
CAPITAL STOCK - Additional Information, Other Equity Arrangements (Detail) - USD ($) |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 17, 2016 |
Feb. 08, 2016 |
Feb. 01, 2016 |
Nov. 10, 2010 |
Nov. 30, 2016 |
Dec. 31, 2013 |
Nov. 30, 2010 |
Dec. 30, 2017 |
Jul. 01, 2017 |
Dec. 31, 2016 |
Oct. 03, 2015 |
Apr. 04, 2015 |
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
Dec. 28, 2013 |
Sep. 30, 2017 |
May 17, 2017 |
May 11, 2017 |
Dec. 24, 2015 |
Dec. 02, 2015 |
Nov. 03, 2010 |
|
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Derivative, Forward Interest Rate | 5.375% | 5.375% | ||||||||||||||||||||
Option Indexed to Issuer's Equity, Strike Price | $ 162.16 | $ 162.27 | $ 162.16 | |||||||||||||||||||
Purchase of common stock for treasury | $ 230,900,000 | $ 124,200,000 | $ 326,100,000 | $ 28,700,000 | $ 374,100,000 | $ 649,800,000 | ||||||||||||||||
Option indexed to issuer's equity, number of call options purchased | 4,600,000 | |||||||||||||||||||||
Option Indexed to Issuer's Equity, Settlement Alternatives, Shares, at Fair Value | 293,142 | 711,376 | 1,692,778 | 911,077 | 711,376 | |||||||||||||||||
Call option, aggregate premium | $ 9,700,000 | $ 25,100,000 | $ 25,100,000 | $ 50,300,000 | ||||||||||||||||||
Number of net-share settled options exercised (in shares) | 945,473 | |||||||||||||||||||||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | $ 1,000 | $ 100.49 | |||||||||||||||||||
Preferred Stock Conversion Rate Number Of Common Stock Shares | $ 6.1627 | $ 6.1667 | ||||||||||||||||||||
equity unit proceeds | $ 727,500,000 | |||||||||||||||||||||
Preferred Stock, Value, Issued | $ 632,500,000 | $ 750,000,000 | $ 0 | $ 750,000,000 | $ 0 | $ 632,500,000 | ||||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 100 | |||||||||||||||||||||
Common Stock, Shares, Issued | 3,504,165 | 176,902,738 | 176,902,738 | 176,902,738 | 176,902,738 | |||||||||||||||||
Treasury Stock Acquired, Average Cost Per Share | $ 94.34 | $ 94.34 | $ 103.97 | $ 96.46 | ||||||||||||||||||
Treasury Stock, Shares, Acquired | 2,446,287 | 1,316,858 | 3,381,162 | 3,940,087 | 9,227,564 | |||||||||||||||||
Convertible conversion warrant strike price percentage higher than previous price on November 1, 2010 | 60.00% | |||||||||||||||||||||
Common Stock, Par or Stated Value Per Share | $ 2.5 | $ 2.5 | $ 2.5 | $ 2.5 | ||||||||||||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 3,504,165 | 0.7246 | 0.7241 | 418,234 | ||||||||||||||||||
Stock Issued During Period, Value, Treasury Stock Reissued | $ 98.45 | $ 98.45 | $ 90,800,000 | $ 407,000,000 | $ 135,300,000 | |||||||||||||||||
Stock Exercise Price Per Share | $ 117.84 | $ 117.84 | ||||||||||||||||||||
Stock Exercise Price Per Share Percentage Greater Than Closing Price | $ 0.40 | $ 0.60 | ||||||||||||||||||||
equity units issued | 7,500,000 | |||||||||||||||||||||
Equity Unit | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | |||||||||||||||||||
Shares Issued, Price Per Share | $ 138.01 | $ 100 | $ 138.01 | $ 138.10 | ||||||||||||||||||
Forward Contract Indexed to Issuer's Equity, Forward Rate Per Share | $ 100 | $ 100 | $ 100 | |||||||||||||||||||
Cash Settlement on Forward Stock Purchase Contract | $ 345,000,000 | $ 0 | $ (147,400,000) | $ 0 | ||||||||||||||||||
Forward Contract Indexed to Issuer's Equity, Shares | 5,400,000 | |||||||||||||||||||||
Preferred Stock, Shares Issued | 750,000 | |||||||||||||||||||||
Preferred Stock, Liquidation Preference, Value | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | |||||||||||||||||||
Accretion Expense | 1,300,000 | |||||||||||||||||||||
Forward Contract Indexed to Issuer's Equity, Settlement Alternatives, Cash, at Fair Value | 97,800,000 | 97,800,000 | $ 117,100,000 | |||||||||||||||||||
Option Indexed to Issuer's Equity, Settlement Alternatives, Cash, at Fair Value | $ 40,600,000 | $ 40,600,000 | ||||||||||||||||||||
Maximum | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Option Indexed to Issuer's Equity, Strike Price | $ 179.53 | $ 179.41 | ||||||||||||||||||||
Stock Exercise Price Per Share | $ 97.95 | 112.91 | ||||||||||||||||||||
Minimum | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Option Indexed to Issuer's Equity, Strike Price | $ 162.27 | 162.16 | ||||||||||||||||||||
Stock Exercise Price Per Share | $ 75.00 | 98.80 | ||||||||||||||||||||
Call Option [Member] | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Call option, aggregate premium | $ 50,300,000 | |||||||||||||||||||||
Call option, average price | $ 5.97 | $ 5.43 | $ 2.77 | |||||||||||||||||||
Call Option [Member] | Maximum | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Strike price | 97.95 | |||||||||||||||||||||
Call Option [Member] | Minimum | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Call Options Term Of Maturity-1 | 5 years | |||||||||||||||||||||
Strike price | $ 75 | |||||||||||||||||||||
2020 Purchase Contract [Member] | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Cash Settlement on Forward Stock Purchase Contract | $ 750,000,000 | |||||||||||||||||||||
Treasury Stock [Member] | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 2,900,000 | |||||||||||||||||||||
Common Stock | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 1.0157 | 1.0157 | ||||||||||||||||||||
Common Stock | Maximum | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Purchase of common stock for treasury | $ 80.65 | |||||||||||||||||||||
Common Stock | Minimum | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Purchase of common stock for treasury | $ 98.80 | |||||||||||||||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 1.0122 | 1.0122 | 1.0122 | |||||||||||||||||||
Convertible Preferred Stock [Member] | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Convertible preferred units issued | 6,325,000.000 | 6,300,000.0 | ||||||||||||||||||||
Preferred Stock, Liquidation Preference Per Share | $ 100 | |||||||||||||||||||||
Stated interest rate | 4.75% | |||||||||||||||||||||
Convertible preferred stock, conversion rate (USD per share) | 1.3763 | 1.3789 | ||||||||||||||||||||
Conversion of Stock, Shares Issued | 8,433,123 | 2,869,169 | 3,500,000.0 | |||||||||||||||||||
Conversion price (USD per share) | $ 72.66 | $ 72.52 | ||||||||||||||||||||
Convertible Preferred Stock [Member] | Maximum | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Convertible preferred stock, conversion rate (USD per share) | 1.2399 | 1.2399 | ||||||||||||||||||||
Notes 2 Point 25 Percent due 2018 [Member] | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Long-term debt, including current maturities | $ 345,000,000 | $ 345,000,000 | ||||||||||||||||||||
Equity Unit Shares Issuable Upon Conversion | 3,450,000 | |||||||||||||||||||||
Common Stock, Par or Stated Value Per Share | $ 100 | $ 100 | ||||||||||||||||||||
Cash Settlement on Forward Stock Purchase Contract | $ 345,000,000 | |||||||||||||||||||||
Convertible notes payable due in 2018 (subordinated) | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Long-term debt, including current maturities | $ 632,500,000 | |||||||||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 100 | |||||||||||||||||||||
Call Option [Member] | ||||||||||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | ||||||||||||||||||||||
Option indexed to issuer's equity, number of call options purchased | 3,100,000.0 | 9,100,000.0 | 12,200,000.0 | 12,200,000.0 | ||||||||||||||||||
Option indexed to issuer's equity, premium amount | $ 73,500,000 | |||||||||||||||||||||
Option indexed to issuer's equity, average premium price per share (USD per share) | $ 6.03 | |||||||||||||||||||||
Option indexed to issuer's equity, average lower strike price (USD per share) | 86.07 | |||||||||||||||||||||
Option indexed to issuer's equity, average upper strike price (USD per share) | $ 106.56 |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Detail) - USD ($) $ in Millions |
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
---|---|---|---|
Accumulated Other Comprehensive Income (Loss) [Abstract] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (1,585.9) | $ (1,921.2) | $ (1,694.2) |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in AOCI (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (1,585.9) | $ (1,921.2) | $ (1,694.2) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 301.3 | (235.8) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 26.7 | 8.8 | |
Other Comprehensive Income (Loss), Net of Tax | 335.3 | (227.0) | (424.0) |
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,105.0) | (1,586.3) | (1,300.9) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 476.6 | (285.4) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.0 | 0.0 | |
Other Comprehensive Income (Loss), Net of Tax | 481.3 | (285.4) | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (112.6) | (46.3) | (52.1) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (71.0) | 9.1 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 4.7 | (3.3) | |
Other Comprehensive Income (Loss), Net of Tax | (66.3) | 5.8 | |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 3.4 | 88.6 | 11.8 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (85.2) | 76.8 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.0 | 0.0 | |
Other Comprehensive Income (Loss), Net of Tax | (85.2) | 76.8 | |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (371.7) | (377.2) | $ (353.0) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (19.1) | (36.3) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 22.0 | 12.1 | |
Other Comprehensive Income (Loss), Net of Tax | 5.5 | $ (24.2) | |
Disposal Group, Not Discontinued Operations [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (7.3) | ||
Disposal Group, Not Discontinued Operations [Member] | Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (4.7) | ||
Disposal Group, Not Discontinued Operations [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.0 | ||
Disposal Group, Not Discontinued Operations [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.0 | ||
Disposal Group, Not Discontinued Operations [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 2.6 |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Reclassifications out of AOCI (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income Tax Expense (Benefit) | $ (300.5) | $ (261.2) | $ (248.6) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (6.7) | 6.6 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income Tax Expense (Benefit) | (2.0) | 3.3 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (4.7) | 3.3 | |
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income Tax Expense (Benefit) | 9.8 | 5.2 | |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax | (22.0) | (12.1) | |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | (31.8) | (17.3) | |
Selling, General and Administrative Expenses [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | 6.5 | 6.9 | |
Pension Costs [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | (12.2) | 0.0 | |
Cost of Sales [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 8.4 | 21.7 | |
Cost of Sales [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | 9.7 | 10.4 | |
Interest expenses | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (15.1) | (15.1) | |
Other Expense [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | $ (3.4) | $ 0.0 |
EMPLOYEE BENEFIT PLANS - Expense for Defined Contribution Plans Aside from ESOP Plans (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Employee Benefits and Share-based Compensation | $ 4.3 | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | 4.8 | $ 7.9 | $ 7.2 |
Multi-employer plan expense | 7.2 | 5.1 | 4.0 |
Other defined contribution plan expense | $ 27.5 | $ 15.4 | $ 11.7 |
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 133,694 | 219,492 | 184,753 |
Employee Stock Ownership Plan (ESOP), Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Employee Stock Ownership Plan (ESOP), Number of Committed-to-be-Released Shares | 20,665 | ||
Employee Stock Ownership Plan (ESOP), Cash Contributions to ESOP | $ 1.8 | $ 4.2 | $ 4.4 |
EMPLOYEE BENEFIT PLANS - Net Periodic Pension Expense (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 13.9 | ||
Settlement / curtailment loss (gain) | $ 15.6 | ||
Pension Benefit, U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 8.7 | 9.4 | $ 7.0 |
Interest cost | 43.2 | 45.3 | 54.0 |
Expected return on plan assets | (64.4) | (67.9) | (74.9) |
Prior service cost amortization | (1.1) | (5.2) | (1.8) |
Actuarial loss amortization | 8.3 | 7.1 | 7.2 |
Settlement / curtailment loss (gain) | 2.9 | 0.0 | 0.0 |
Net periodic pension expense | (0.2) | (0.9) | (4.9) |
Pension Benefit, Non-U.S Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 13.7 | 12.5 | 14.4 |
Interest cost | 29.1 | 37.0 | 46.8 |
Expected return on plan assets | (45.5) | (44.5) | (56.5) |
Prior service cost amortization | 1.2 | (0.3) | (0.9) |
Actuarial loss amortization | 9.4 | 5.9 | 7.5 |
Settlement / curtailment loss (gain) | 12.7 | 0.7 | 1.5 |
Net periodic pension expense | $ 18.2 | $ 11.9 | $ 14.6 |
EMPLOYEE BENEFIT PLANS - Net Periodic Post-Retirement Benefit Expense (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Funded Percentage | 79.00% | 77.00% | 77.00% |
Settlement / curtailment loss (gain) | $ 15.6 | ||
Other Postretirement Benefit Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.6 | $ 0.6 | $ 0.5 |
Interest cost | 1.7 | 1.7 | 2.1 |
Prior service credit amortization | (1.4) | (1.2) | (1.3) |
Net periodic pension expense | 0.9 | 1.1 | 1.3 |
United States Pension Plan of US Entity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 8.7 | 9.4 | 7.0 |
Interest cost | 43.2 | 45.3 | 54.0 |
Prior service credit amortization | 1.1 | 5.2 | 1.8 |
Actuarial loss amortization | 8.3 | 7.1 | 7.2 |
Settlement / curtailment loss (gain) | 2.9 | 0.0 | 0.0 |
Net periodic pension expense | (0.2) | (0.9) | (4.9) |
Foreign Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 13.7 | 12.5 | 14.4 |
Interest cost | 29.1 | 37.0 | 46.8 |
Prior service credit amortization | (1.2) | 0.3 | 0.9 |
Actuarial loss amortization | 9.4 | 5.9 | 7.5 |
Settlement / curtailment loss (gain) | 12.7 | 0.7 | 1.5 |
Net periodic pension expense | 18.2 | $ 11.9 | $ 14.6 |
Current active plan [Member] | Foreign Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement / curtailment loss (gain) | $ 0.5 |
EMPLOYEE BENEFIT PLANS - Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Detail) $ in Millions |
12 Months Ended |
---|---|
Dec. 30, 2017
USD ($)
| |
Compensation and Retirement Disclosure [Abstract] | |
Current year actuarial loss | $ (2.2) |
Amortization of actuarial loss | (16.2) |
Prior service cost from plan amendments | 0.5 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | (15.6) |
Currency / other | 25.7 |
Total loss recognized in other comprehensive income (pre-tax) | $ (7.8) |
EMPLOYEE BENEFIT PLANS - Changes in Pension and Other Post-Retirement Benefit Obligations, Fair Value Of Plan Assets, as well as Amounts Recognized in the Consolidated Balance Sheets (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Amounts recognized in the Consolidated Balance Sheets | |||
Non-current benefit liability | $ (629.9) | $ (644.3) | |
Pension Benefit, U.S. Plans | |||
Change in benefit obligation | |||
Benefit obligation at end of prior year | 1,359.0 | 1,385.7 | |
Service cost | 8.7 | 9.4 | $ 7.0 |
Interest cost | 43.2 | 45.3 | 54.0 |
Settlements/curtailments | (16.7) | 0.0 | |
Actuarial (gain) loss | 98.1 | (41.5) | |
Plan amendments | 0.5 | 1.8 | |
Foreign currency exchange rates | 0.0 | 0.0 | |
Participant contributions | 0.0 | 0.0 | |
Acquisitions, divestitures and other | (7.0) | (5.5) | |
Benefits paid | (120.5) | (119.2) | |
Benefit obligation at end of year | 1,365.3 | 1,359.0 | 1,385.7 |
Change in plan assets | |||
Fair value of plan assets at end of prior year | 1,067.1 | 1,081.5 | |
Actual return on plan assets | 153.5 | 90.9 | |
Participant contributions | 0.0 | 0.0 | |
Employer contributions | 37.6 | 19.4 | |
Settlements | (16.7) | 0.0 | |
Foreign currency exchange rate changes | 0.0 | 0.0 | |
Acquisitions, divestitures and other | (6.9) | (5.5) | |
Benefits paid | (120.5) | (119.2) | |
Fair value of plan assets at end of plan year | 1,114.1 | 1,067.1 | 1,081.5 |
Net liability recognized | (251.2) | (291.9) | |
Unrecognized prior service cost (credit) | (5.2) | (5.8) | |
Unrecognized net actuarial loss | 264.9 | 267.2 | |
Unrecognized net transition obligation | 0.0 | 0.0 | |
Net amount recognized | 18.9 | (18.9) | |
Amounts recognized in the Consolidated Balance Sheets | |||
Prepaid benefit cost (non-current) | 0.0 | 0.0 | |
Current benefit liability | (8.2) | (25.8) | |
Non-current benefit liability | (243.0) | (266.1) | |
Net liability recognized | (251.2) | (291.9) | |
Accumulated other comprehensive loss (pre-tax): | |||
Prior service cost (credit) | 5.2 | 5.8 | |
Actuarial loss | 264.9 | 267.2 | |
Unrecognized net transition obligation | 0.0 | 0.0 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax, Total | 270.1 | 273.0 | |
Net amount recognized | 18.9 | (18.9) | |
Pension Benefit, Non-U.S Plans | |||
Change in benefit obligation | |||
Benefit obligation at end of prior year | 1,359.8 | 1,374.2 | |
Service cost | 13.7 | 12.5 | 14.4 |
Interest cost | 29.1 | 37.0 | 46.8 |
Settlements/curtailments | (35.9) | (5.7) | |
Actuarial (gain) loss | (11.4) | 229.7 | |
Plan amendments | 0.0 | (40.4) | |
Foreign currency exchange rates | 136.0 | (190.0) | |
Participant contributions | 0.3 | 0.3 | |
Acquisitions, divestitures and other | (11.6) | (2.0) | |
Benefits paid | (56.7) | (55.8) | |
Benefit obligation at end of year | 1,446.1 | 1,359.8 | 1,374.2 |
Change in plan assets | |||
Fair value of plan assets at end of prior year | 1,015.3 | 1,047.3 | |
Actual return on plan assets | 63.5 | 169.4 | |
Participant contributions | 0.3 | 0.3 | |
Employer contributions | 24.0 | 29.5 | |
Settlements | (35.9) | (5.5) | |
Foreign currency exchange rate changes | 96.4 | (167.9) | |
Acquisitions, divestitures and other | (7.7) | (2.0) | |
Benefits paid | (56.7) | (55.8) | |
Fair value of plan assets at end of plan year | 1,099.2 | 1,015.3 | 1,047.3 |
Net liability recognized | (346.9) | (344.5) | |
Unrecognized prior service cost (credit) | 37.0 | 35.0 | |
Unrecognized net actuarial loss | 294.7 | 296.7 | |
Unrecognized net transition obligation | 0.0 | 0.1 | |
Net amount recognized | (89.2) | (82.7) | |
Amounts recognized in the Consolidated Balance Sheets | |||
Prepaid benefit cost (non-current) | 1.8 | 0.2 | |
Current benefit liability | (8.9) | (10.0) | |
Non-current benefit liability | (339.8) | (334.7) | |
Net liability recognized | (346.9) | (344.5) | |
Accumulated other comprehensive loss (pre-tax): | |||
Prior service cost (credit) | (37.0) | (35.0) | |
Actuarial loss | 294.7 | 296.7 | |
Unrecognized net transition obligation | 0.0 | 0.1 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax, Total | 257.7 | 261.8 | |
Net amount recognized | (89.2) | (82.7) | |
Other Postretirement Benefit Plans, Defined Benefit | |||
Change in benefit obligation | |||
Benefit obligation at end of prior year | 54.2 | 61.0 | |
Service cost | 0.6 | 0.6 | 0.5 |
Interest cost | 1.7 | 1.7 | 2.1 |
Settlements/curtailments | 0.0 | 0.0 | |
Actuarial (gain) loss | (2.1) | (0.7) | |
Plan amendments | 0.0 | (0.8) | |
Foreign currency exchange rates | 0.7 | 0.3 | |
Participant contributions | 0.0 | 0.0 | |
Acquisitions, divestitures and other | (2.1) | 0.0 | |
Benefits paid | (4.9) | (7.9) | |
Benefit obligation at end of year | 52.3 | 54.2 | 61.0 |
Change in plan assets | |||
Fair value of plan assets at end of prior year | 0.0 | 0.0 | |
Actual return on plan assets | 0.0 | 0.0 | |
Participant contributions | 0.0 | 0.0 | |
Employer contributions | 4.9 | 7.9 | |
Settlements | 0.0 | 0.0 | |
Foreign currency exchange rate changes | 0.0 | 0.0 | |
Acquisitions, divestitures and other | 0.0 | 0.0 | |
Benefits paid | (4.9) | (7.9) | |
Fair value of plan assets at end of plan year | 0.0 | 0.0 | $ 0.0 |
Net liability recognized | (52.3) | (54.2) | |
Unrecognized prior service cost (credit) | 4.8 | 6.2 | |
Unrecognized net actuarial loss | (1.7) | 0.5 | |
Unrecognized net transition obligation | 0.0 | 0.0 | |
Net amount recognized | (58.8) | (59.9) | |
Amounts recognized in the Consolidated Balance Sheets | |||
Prepaid benefit cost (non-current) | 0.0 | 0.0 | |
Current benefit liability | (5.2) | (5.9) | |
Non-current benefit liability | (47.1) | (48.3) | |
Net liability recognized | (52.3) | (54.2) | |
Accumulated other comprehensive loss (pre-tax): | |||
Prior service cost (credit) | (4.8) | (6.2) | |
Actuarial loss | (1.7) | 0.5 | |
Unrecognized net transition obligation | 0.0 | 0.0 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax, Total | (6.5) | (5.7) | |
Net amount recognized | $ (58.8) | $ (59.9) |
EMPLOYEE BENEFIT PLANS - Pension Plans in which Accumulated Benefit Obligations Exceed Plan Assets (Detail) - USD ($) $ in Millions |
Dec. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Pension Benefit, U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 1,365.3 | $ 1,359.0 |
Accumulated benefit obligation | 1,358.4 | 1,353.0 |
Fair value of plan assets | 1,114.1 | 1,067.1 |
Pension Benefit, Non-U.S Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 1,415.9 | 1,334.1 |
Accumulated benefit obligation | 1,368.7 | 1,290.7 |
Fair value of plan assets | $ 1,068.5 | $ 990.5 |
EMPLOYEE BENEFIT PLANS - Pension Plans in which Projected Benefit Obligations Exceed Plan Assets (Detail) - USD ($) $ in Millions |
Dec. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Pension Benefit, U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 1,365.3 | $ 1,359.0 |
Accumulated benefit obligation | 1,358.4 | 1,353.0 |
Fair value of plan assets | 1,114.1 | 1,067.1 |
Pension Benefit, Non-U.S Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 1,445.1 | 1,359.0 |
Accumulated benefit obligation | 1,395.1 | 1,313.2 |
Fair value of plan assets | $ 1,096.5 | $ 1,014.4 |
EMPLOYEE BENEFIT PLANS - Assumptions used in Valuing Pension and Post-Retirement Plan Obligations and Net Costs (Detail) |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Expected return on plan assets | 5.30% | ||
Pension Benefit, U.S. Plans | |||
Weighted-average assumptions used to determine benefit obligations at year end: | |||
Discount rate | 3.53% | 3.95% | 4.25% |
Rate of compensation increase | 3.00% | 3.00% | 6.00% |
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 3.75% | ||
Rate of compensation increase | 3.00% | 6.00% | 6.00% |
Expected return on plan assets | 6.25% | 6.50% | 6.50% |
Pension Benefit, Non-U.S Plans | |||
Weighted-average assumptions used to determine benefit obligations at year end: | |||
Discount rate | 2.24% | 2.38% | 3.25% |
Rate of compensation increase | 3.45% | 3.63% | 3.25% |
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 3.25% | ||
Rate of compensation increase | 3.63% | 3.24% | 3.50% |
Expected return on plan assets | 4.41% | 4.68% | 5.25% |
Other Benefits, U.S Plans | |||
Weighted-average assumptions used to determine benefit obligations at year end: | |||
Discount rate | 3.53% | 3.51% | 3.75% |
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 3.25% | ||
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
service cost [Member] | Pension Benefit, U.S. Plans | |||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 4.10% | 4.32% | |
service cost [Member] | Pension Benefit, Non-U.S Plans | |||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 2.27% | 2.54% | |
service cost [Member] | Other Benefits, U.S Plans | |||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 4.53% | 4.27% | |
Interest expenses | Pension Benefit, U.S. Plans | |||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 3.30% | 3.39% | |
Interest expenses | Pension Benefit, Non-U.S Plans | |||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 2.31% | 2.94% | |
Interest expenses | Other Benefits, U.S Plans | |||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 2.93% | 2.94% |
EMPLOYEE BENEFIT PLANS - Asset Allocations by Asset Category and Level of Valuation Inputs with in Fair Value Hierarchy (Detail) - USD ($) $ in Millions |
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
---|---|---|---|
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Defined Benefit Plan, Funded Percentage | 79.00% | 77.00% | 77.00% |
Level 1 | Defined Benefit Pension | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | $ 448.1 | $ 438.8 | |
Level 1 | Defined Benefit Pension | Insurance contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Level 1 | Defined Benefit Pension | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Level 1 | Defined Benefit Pension | Cash and Cash Equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 19.5 | 35.3 | |
Level 1 | Defined Benefit Pension | Equity Securities | U.S. equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 103.5 | 100.7 | |
Level 1 | Defined Benefit Pension | Equity Securities | Foreign equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 111.8 | 75.8 | |
Level 1 | Defined Benefit Pension | Fixed Income Securities | Government securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 213.3 | 227.0 | |
Level 1 | Defined Benefit Pension | Fixed Income Securities | Corporate securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 0.0 | 0.0 | |
Level 2 | Defined Benefit Pension | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 1,765.2 | 1,643.6 | |
Level 2 | Defined Benefit Pension | Insurance contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 39.2 | 35.0 | |
Level 2 | Defined Benefit Pension | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 53.9 | 63.8 | |
Level 2 | Defined Benefit Pension | Cash and Cash Equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 22.5 | 15.5 | |
Level 2 | Defined Benefit Pension | Equity Securities | U.S. equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 239.3 | 203.1 | |
Level 2 | Defined Benefit Pension | Equity Securities | Foreign equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 217.5 | 178.3 | |
Level 2 | Defined Benefit Pension | Fixed Income Securities | Government securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 494.5 | 460.0 | |
Level 2 | Defined Benefit Pension | Fixed Income Securities | Corporate securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 698.3 | 687.9 | |
Fair Value | Defined Benefit Pension | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 2,213.3 | 2,082.4 | |
Fair Value | Defined Benefit Pension | Insurance contracts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 39.2 | 35.0 | |
Fair Value | Defined Benefit Pension | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 53.9 | 63.8 | |
Fair Value | Defined Benefit Pension | Cash and Cash Equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 42.0 | 50.8 | |
Fair Value | Defined Benefit Pension | Equity Securities | U.S. equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 342.8 | 303.8 | |
Fair Value | Defined Benefit Pension | Equity Securities | Foreign equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 329.3 | 254.1 | |
Fair Value | Defined Benefit Pension | Fixed Income Securities | Government securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | 707.8 | 687.0 | |
Fair Value | Defined Benefit Pension | Fixed Income Securities | Corporate securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Fair value of plan assets | $ 698.3 | $ 687.9 |
EMPLOYEE BENEFIT PLANS - Expected Future Benefit Payments (Detail) $ in Millions |
12 Months Ended |
---|---|
Dec. 30, 2017
USD ($)
| |
Compensation and Retirement Disclosure [Abstract] | |
Defined Benefit Plan, Expected Future Benefit Payments, ten Fiscal Years Thereafter | 10 years |
Total | $ 1,414.4 |
Year 1 | 138.2 |
Year 2 | 137.5 |
Year 3 | 140.1 |
Year 4 | 142.5 |
Year 5 | 140.9 |
Years 6-10 | $ 715.2 |
EMPLOYEE BENEFIT PLANS - Additional Information (Detail) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017
USD ($)
employee
$ / shares
shares
|
Dec. 31, 2016
USD ($)
$ / shares
shares
|
Jan. 02, 2016
USD ($)
$ / shares
shares
|
|
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Settlements, Benefit Obligation | $ 12.2 | $ 0.0 | $ 0.0 |
Allocations for benefits earned under the Cornerstone plan | 25.4 | 17.6 | 22.1 |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 4.8 | $ 7.9 | $ 7.2 |
Employee Stock Ownership Plan (ESOP), Shares in ESOP | shares | 133,694 | 219,492 | 184,753 |
Net income (expense) from ESOP activities | $ 1.3 | $ 3.1 | $ 0.8 |
Defined benefit plans amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit costs | 15.2 | ||
Accumulated benefit obligation for defined benefit pension plans | $ 2,754.0 | 2,667.0 | |
Weighted-average long-term rate of return assumption percentage used in determination of net periodic benefit expense | 5.30% | ||
Percentage of pension liabilities invested in fixed income securities | 50.00% | ||
Target allocations in equity securities minimum range | 25.00% | ||
Target allocations in equity securities maximum range | 45.00% | ||
Target allocations in fixed income securities minimum range | 50.00% | ||
Target allocations in fixed income securities maximum range | 70.00% | ||
Target allocations in other securities range, maximum | 10.00% | ||
Expected pension and other post retirement benefit plans | $ 41.0 | ||
Assumed health care cost trend rate for next year | 7.00% | ||
Assumed ultimate trend rate for health care cost | 4.60% | ||
Expected year when ultimate health care cost trend rate to be reached | 2028 | ||
Medical and dental benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of employees covered by benefit plans | employee | 13,800 | ||
Employee Defined Contribution Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer contribution | $ 24.8 | $ 21.9 | $ 21.1 |
Foreign | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employees covered by pension plan | employee | 16,200 | ||
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Impact of 1 percentage point change in assumed health care cost trend rate on post-retirement benefit obligation | $ 1.9 | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Impact of 1 percentage point change in assumed health care cost trend rate on post-retirement benefit obligation | $ 2.2 | ||
Employee Stock Ownership Plan (ESOP), Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit employer matches participant contributions percentage | 7.00% | ||
ESOP, average fair value of shares released | $ / shares | $ 138.60 | $ 103.88 | $ 99.60 |
Dividends paid on the shares used to pay internal loan debt service | $ 8.4 | $ 9.0 | $ 9.7 |
Interest costs incurred by ESOP | $ 2.2 | 3.1 | 3.8 |
Number of ESOP shares allocated to participant accounts | shares | 14,527,070 | ||
Number of ESOP shares allocated to participant accounts held | shares | 2,252,098 | ||
Number of ESOP unallocated shares | shares | 1,014,287 | ||
Employee Stock Ownership Plan (ESOP), Number of Committed-to-be-Released Shares | shares | 20,665 | ||
Employer cash contributions | $ 1.8 | $ 4.2 | $ 4.4 |
Employee Stock Ownership Plan (ESOP), Plan | Core Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of employees covered by benefit plans | employee | 9,650 | ||
Employee Stock Ownership Plan (ESOP), Plan | Minimum | Core Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer contribution (percent) | 2.00% | ||
Employee Stock Ownership Plan (ESOP), Plan | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit employer matches participant contributions percentage | 25.00% | ||
Employee Stock Ownership Plan (ESOP), Plan | Maximum | Core Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer contribution (percent) | 6.00% |
FAIR VALUE MEASUREMENTS - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis for Each of Hierarchy Levels (Detail) - USD ($) $ in Millions |
Dec. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 18.0 | $ 110.2 |
Derivatives liabilities | 114.0 | 97.6 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Business Combination, Contingent Consideration, Liability, Noncurrent | 114.0 | |
Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0.0 | 0.0 |
Derivatives liabilities | 0.0 | 0.0 |
Business Combination, Contingent Consideration, Liability, Noncurrent | 0.0 | |
Money market fund | 11.6 | 4.3 |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 18.0 | 110.2 |
Derivatives liabilities | 114.0 | 97.6 |
Business Combination, Contingent Consideration, Liability, Noncurrent | 0.0 | |
Money market fund | 0.0 | 0.0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0.0 | 0.0 |
Derivatives liabilities | 0.0 | 0.0 |
Business Combination, Contingent Consideration, Liability, Noncurrent | 114.0 | |
Money market fund | 0.0 | 0.0 |
Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 18.0 | 110.2 |
Derivatives liabilities | 114.0 | 97.6 |
Reported Value Measurement [Member] | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 18.0 | 110.2 |
Derivatives liabilities | 114.0 | 97.6 |
Money market fund | $ 11.6 | $ 4.3 |
FAIR VALUE MEASUREMENTS - Summary of Company's Financial Instruments Carrying and Fair Values (Detail) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 30, 2017 |
Mar. 01, 2032 |
Feb. 01, 2032 |
Dec. 31, 2016 |
|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investments, Fair Value Disclosure | $ 7.9 | $ 9.2 | ||
Long-term Debt, Fair Value | 4,012.0 | 3,967.4 | ||
Derivative assets | 18.0 | 110.2 | ||
Derivative liabilities | 114.0 | 97.6 | ||
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 10 Percent Adverse Change in Discount Rate | $ 8.0 | |||
Deferred Purchase Price Receivable Collection Period | 30 days | |||
Total Carrying Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investments, Fair Value Disclosure | $ 7.6 | 8.9 | ||
Long-term debt, including current portion | 3,826.4 | 3,823.1 | ||
Derivative assets | 18.0 | 110.2 | ||
Derivative liabilities | $ 114.0 | $ 97.6 | ||
Scenario, Forecast [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Business Combination, Contingent Consideration Percent of Sales, Liability, Noncurrent | 3.00% | |||
Business Combination, Contingent Consideration, Liability, Noncurrent | $ 114.0 | |||
Minimum | Scenario, Forecast [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Business Combination, Contingent Consideration Percent of Sales, Liability, Noncurrent | 2.50% | |||
Maximum | Scenario, Forecast [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Business Combination, Contingent Consideration Percent of Sales, Liability, Noncurrent | 3.50% |
OTHER COSTS AND EXPENSES - Additional Information (Detail) - USD ($) |
3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Dec. 30, 2017 |
Sep. 30, 2017 |
Jul. 01, 2017 |
Apr. 01, 2017 |
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Business Acquisition [Line Items] | |||||||
Research and development costs | $ 252,300,000 | $ 204,400,000 | $ 188,000,000 | ||||
Business Combination, Acquisition Related Costs | $ 27,000,000 | $ 33,000,000 | $ 43,000,000 | $ 211,000,000 | 156,000,000 | ||
Other Expense [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Acquisition Related Costs | $ 58,200,000 |
RESTRUCTURING AND ASSET IMPAIRMENTS - Summary of Restructuring Reserve Activity (Detail) $ in Millions |
12 Months Ended |
---|---|
Dec. 30, 2017
USD ($)
| |
Restructuring Reserve | |
Reserve, Beginning Balance | $ 35.6 |
Net Additions | 51.5 |
Usage | (65.9) |
Currency | 2.0 |
Reserve, Ending Balance | 23.2 |
Facility closures | |
Restructuring Reserve | |
Reserve, Beginning Balance | 14.2 |
Net Additions | 10.9 |
Usage | (22.1) |
Currency | 0.2 |
Reserve, Ending Balance | 3.2 |
Employee Severance [Member] | |
Restructuring Reserve | |
Reserve, Beginning Balance | 21.4 |
Net Additions | 40.6 |
Usage | (43.8) |
Currency | 1.8 |
Reserve, Ending Balance | 20.0 |
2012 Actions | Series of Individually Immaterial Business Acquisitions | |
Restructuring Reserve | |
Net Additions | $ 51.5 |
RESTRUCTURING AND ASSET IMPAIRMENTS - Additional Information (Detail) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 30, 2017
USD ($)
employee
|
Dec. 31, 2016
USD ($)
|
|
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges and asset impairments recognized | $ 51.5 | |
Number Of Employees Included In Plan | employee | 1,584 | |
Restructuring reserves | $ 23.2 | $ 35.6 |
Construction and Do It Yourself | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges and asset impairments recognized | 25.0 | |
Securities Industry [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges and asset impairments recognized | 18.0 | |
Industrial Segment | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges and asset impairments recognized | 8.0 | |
Corporate [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges and asset impairments recognized | 1.0 | |
Acquisition | 2012 Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges and asset impairments recognized | 51.5 | |
Severance and related charges | 40.6 | |
Facility closure costs | $ 10.9 |
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS - Business Segments (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2017 |
Sep. 30, 2017 |
Jul. 01, 2017 |
Apr. 01, 2017 |
Dec. 31, 2016 |
Oct. 01, 2016 |
Jul. 02, 2016 |
Apr. 02, 2016 |
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 3,413.5 | $ 3,298.6 | $ 3,229.5 | $ 2,805.6 | $ 2,920.4 | $ 2,882.0 | $ 2,932.4 | $ 2,672.1 | $ 12,747.2 | $ 11,406.9 | $ 11,171.8 |
Segment Profit | 2,014.7 | 1,840.5 | 1,749.6 | ||||||||
Corporate overhead | (216.8) | (197.2) | (164.0) | ||||||||
Other-net | (289.7) | (196.9) | (222.0) | ||||||||
Gain (Loss) on Disposition of Business | $ (13.7) | 264.1 | 0.0 | 0.0 | |||||||
Defined Benefit Plan, Settlements, Benefit Obligation | (12.2) | 0.0 | 0.0 | ||||||||
Restructuring charges and asset impairments | (51.5) | (49.0) | (47.6) | ||||||||
Interest income | 40.1 | 23.2 | 15.2 | ||||||||
Interest expense | (222.6) | (194.5) | (180.4) | ||||||||
Earnings from continuing operations before income taxes | 1,526.1 | 1,226.1 | 1,150.8 | ||||||||
Capital and Software Expenditures | 442.4 | 347.0 | 311.4 | ||||||||
Depreciation and amortization of property, plant and equipment | 296.9 | 263.6 | 256.9 | ||||||||
Total Assets | (19,079.9) | (15,634.9) | (19,079.9) | (15,634.9) | (15,127.8) | ||||||
Construction and Do It Yourself | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 8,862.4 | 7,469.2 | 7,140.7 | ||||||||
Segment Profit | 1,450.1 | 1,266.9 | 1,170.1 | ||||||||
Capital and Software Expenditures | 327.2 | 227.3 | 191.7 | ||||||||
Depreciation And Amortization excluding Discontinued Operations | 271.9 | 203.0 | 196.5 | ||||||||
Securities Industry [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Capital and Software Expenditures | 76.2 | 81.1 | 83.8 | ||||||||
Depreciation And Amortization excluding Discontinued Operations | 107.4 | 106.8 | 112.3 | ||||||||
Total Segments excluding Non Op [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization of property, plant and equipment | 460.7 | 408.0 | 414.0 | ||||||||
Industrial Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Capital and Software Expenditures | 39.0 | 38.6 | 35.9 | ||||||||
Depreciation And Amortization excluding Discontinued Operations | 81.4 | 98.2 | 105.2 | ||||||||
Corporate Assets | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Assets | (540.0) | 101.1 | (540.0) | 101.1 | (545.4) | ||||||
Continuing Operations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Assets | (19,619.9) | (15,010.4) | (19,619.9) | (15,010.4) | (15,673.2) | ||||||
Continuing Operations [Member] | Construction and Do It Yourself | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Assets | (12,800.2) | (8,512.4) | (12,800.2) | (8,512.4) | (8,492.9) | ||||||
Continuing Operations [Member] | Securities Industry [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 1,946.0 | 1,840.3 | 1,938.2 | ||||||||
Segment Profit | 352.3 | 304.4 | 339.9 | ||||||||
Total Assets | (3,412.8) | (3,359.0) | (3,412.8) | (3,359.0) | (3,438.7) | ||||||
Continuing Operations [Member] | Industrial Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 1,938.8 | 2,097.4 | 2,092.9 | ||||||||
Segment Profit | 212.3 | 269.2 | 239.6 | ||||||||
Total Assets | (3,406.9) | (3,139.0) | (3,406.9) | (3,139.0) | (3,741.6) | ||||||
Discontinued Operations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Assets | $ 0.0 | $ (523.4) | $ 0.0 | $ (523.4) | $ 0.0 | ||||||
Home Depot [Member] | Construction and Do It Yourself | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage Of Net Sales | 13.00% | 14.00% | 13.00% |
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS - Geographic Areas (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2017 |
Sep. 30, 2017 |
Jul. 01, 2017 |
Apr. 01, 2017 |
Dec. 31, 2016 |
Oct. 01, 2016 |
Jul. 02, 2016 |
Apr. 02, 2016 |
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | $ 3,413.5 | $ 3,298.6 | $ 3,229.5 | $ 2,805.6 | $ 2,920.4 | $ 2,882.0 | $ 2,932.4 | $ 2,672.1 | $ 12,747.2 | $ 11,406.9 | $ 11,171.8 |
Property, plant & equipment | 1,742.5 | 1,451.2 | 1,742.5 | 1,451.2 | 1,450.2 | ||||||
United States | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 6,915.7 | 6,135.6 | 5,882.0 | ||||||||
Property, plant & equipment | 850.2 | 663.4 | 850.2 | 663.4 | 676.0 | ||||||
Canada | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 577.8 | 515.3 | 516.3 | ||||||||
Property, plant & equipment | 30.0 | 29.3 | 30.0 | 29.3 | 19.1 | ||||||
Other Americas | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 774.4 | 635.6 | 706.5 | ||||||||
Property, plant & equipment | 111.2 | 95.8 | 111.2 | 95.8 | 82.6 | ||||||
FRANCE | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 609.0 | 582.7 | 595.7 | ||||||||
Property, plant & equipment | 65.1 | 57.5 | 65.1 | 57.5 | 64.8 | ||||||
Other Europe | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 2,742.0 | 2,468.6 | 2,371.5 | ||||||||
Property, plant & equipment | 378.0 | 322.3 | 378.0 | 322.3 | 328.4 | ||||||
Asia | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 1,128.3 | 1,069.1 | 1,099.8 | ||||||||
Property, plant & equipment | $ 308.0 | $ 282.9 | $ 308.0 | $ 282.9 | $ 279.3 |
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS - Additional Information (Detail) - Segment |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 3 | ||
Construction and Do It Yourself | Home Depot [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage Of Net Sales | 13.00% | 14.00% | 13.00% |
Construction and Do It Yourself | Lowes | |||
Segment Reporting Information [Line Items] | |||
Percentage Of Net Sales | 17.00% | 15.00% | 14.00% |
INCOME TAXES - Significant Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Valuation Allowance [Line Items] | |||
Tax Cuts and Jobs Act of 2017, Change in Tax Rate, Income Tax Expense (Benefit) | $ 252.5 | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 301.3 | $ (235.8) | |
Income Tax Reconciliation Change In Undistributed Earnings | 38.7 | $ 31.0 | |
Deferred tax liabilities: | |||
Depreciation | 98.4 | 108.7 | |
Amortization of intangibles | 668.0 | 851.2 | |
Deferred Tax Liabilities, Undistributed Foreign Earnings | 4.9 | 260.7 | |
Deferred revenue | 24.6 | 27.3 | |
Other | 62.2 | 74.1 | |
Total deferred tax liabilities | 858.1 | 1,322.0 | |
Deferred tax assets: | |||
Employee benefit plans | 256.4 | 362.5 | |
Doubtful accounts and other customer allowances | 16.3 | 19.3 | |
Basis differences in liabilities | 84.5 | 110.4 | |
Deferred Tax Assets Operating Loss And Capital Loss Carryforwards | 632.2 | 590.3 | |
Currency and derivatives | 48.5 | 45.1 | |
Other | 88.6 | 131.6 | |
Total deferred tax assets | 1,126.5 | 1,259.2 | |
Net Deferred Tax Asset (Liability) before Valuation Allowance | 268.4 | (62.8) | |
Valuation allowance | (516.7) | (525.5) | |
Net Deferred Tax Liability after Valuation Allowance | (248.3) | (588.3) | |
Discontinued Operations, Held-for-sale [Member] | |||
Deferred tax assets: | |||
Valuation allowance | (27.9) | ||
Accumulated Translation Adjustment [Member] | |||
Valuation Allowance [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 476.6 | $ (285.4) | |
income tax provision [Member] | |||
Valuation Allowance [Line Items] | |||
Income Tax Reconciliation Change In Undistributed Earnings | $ 94.1 |
INCOME TAXES - Classification of Deferred Taxes (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Income Tax Reconciliation Change In Undistributed Earnings | $ 38.7 | $ 31.0 | |
Valuation allowance | $ 516.7 | 525.5 | |
Deferred tax liability non-current | 434.2 | 735.4 | |
income tax provision [Member] | |||
Income Tax Reconciliation Change In Undistributed Earnings | $ 94.1 | ||
Discontinued Operations, Held-for-sale [Member] | |||
Valuation allowance | $ 27.9 |
INCOME TAXES - Income Tax Expense (Benefit) Attributable to Continuing Operations (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Deferred Tax Assets, Capital Loss Carryforwards | $ 52.1 | ||
Tax Cuts and Jobs Act of 2017, Transition Tax for Accumulated Foreign Earnings, Income Tax Expense (Benefit) | 276.1 | ||
Tax Cuts and Jobs Act of 2017 | 460.7 | ||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 714.1 | $ 305.9 | $ 405.5 |
Valuation allowance | 516.7 | 525.5 | |
Undistributed Earnings, Basic | 5,700.0 | ||
Income Taxes Paid, Net | 273.6 | 233.3 | 191.6 |
Current: | |||
Federal | 590.6 | 84.8 | 64.4 |
Foreign | 224.6 | 191.5 | 171.4 |
State | 25.4 | 10.6 | 14.1 |
Total current | 840.6 | 286.9 | 249.9 |
Deferred: | |||
Federal | (513.4) | 18.2 | 64.2 |
Foreign | (33.0) | (26.1) | (47.3) |
State | 6.3 | (17.8) | (18.2) |
Total deferred | (103.0) | (25.7) | (1.3) |
Income taxes on continuing operations | 300.5 | 261.2 | 248.6 |
Income Tax Refund | 28.5 | 30.5 | 31.0 |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 812.0 | 920.2 | 745.3 |
Earnings from continuing operations before income taxes | 1,526.1 | 1,226.1 | 1,150.8 |
Tax Cuts and Jobs Act of 2017, Change in Tax Rate, Income Tax Expense (Benefit) | 252.5 | ||
Tax Cuts and Jobs Act of 2017, Change in Tax Rate, Deferred Tax Liability, Income Tax (Expense) Benefit | 184.6 | ||
Deferred Tax Liabilities, Gross, Noncurrent | 4.9 | ||
Continuing Operations [Member] | |||
Deferred: | |||
Total deferred | (540.1) | (25.7) | $ (1.3) |
Discontinued Operations, Held-for-sale [Member] | |||
Valuation allowance | $ 27.9 | ||
Domestic Tax Authority [Member] | |||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income tax expense (benefit) | 455.4 | ||
State and Local Jurisdiction [Member] | |||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income tax expense (benefit) | 5.3 | ||
The Black & Decker Corporation | |||
Undistributed Earnings, Basic | $ 823.3 |
INCOME TAXES - Reconciliation of U.S. Federal Statutory Income Tax to Income Taxes on Continuing Operations (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Tax at statutory rate | $ 534.1 | $ 429.1 | $ 402.9 |
State income taxes, net of federal benefits | 13.3 | 12.5 | 14.9 |
Difference between foreign and federal income tax | (149.0) | (166.3) | (166.9) |
Tax accrual reserve | 64.4 | 32.0 | 43.9 |
Audit settlements | (16.5) | 10.5 | 1.3 |
NOL & Valuation Allowance related items | (5.4) | 38.9 | (21.6) |
Change in deferred tax liabilities on undistributed foreign earnings | (38.7) | (31.0) | |
Tax Provision Basis Difference for Businesses Held for Sale | 27.9 | 27.9 | 0.0 |
Income Tax Effects Allocated Directly to Equity, Employee Stock Options | (23.2) | 0.0 | 0.0 |
Effective Income Tax Rate Reconciliation, Disposition of Business, Amount | (47.3) | 0.0 | 0.0 |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 23.6 | 0.0 | 0.0 |
Other-net | (27.3) | (7.9) | 5.1 |
Income taxes on continuing operations | 300.5 | $ 261.2 | $ 248.6 |
income tax provision [Member] | |||
Change in deferred tax liabilities on undistributed foreign earnings | $ (94.1) |
INCOME TAXES - Components of Earnings from Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Income Tax Disclosure [Abstract] | |||
Income Tax Refund | $ 28.5 | $ 30.5 | $ 31.0 |
Earnings from continuing operations before income taxes | $ 1,526.1 | $ 1,226.1 | $ 1,150.8 |
INCOME TAXES - Summary of Activity Related to Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance | $ 516.7 | $ 525.5 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 368.7 | 291.1 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Balance at beginning of year | 309.8 | 283.1 | $ 280.8 |
Additions based on tax positions related to current year | 34.6 | 14.9 | 23.2 |
Additions based on tax positions related to prior years | 82.5 | 53.9 | 24.3 |
Reductions based on tax positions related to prior years | (4.2) | (34.2) | (14.3) |
Settlements | (0.3) | (5.4) | (21.5) |
Statute of limitations expirations | (34.6) | (13.3) | (9.4) |
Balance at end of year | 387.8 | 309.8 | 283.1 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 3.8 | 4.6 | 0.1 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 67.9 | $ 64.1 | $ 59.5 |
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Operating Loss Carryforwards [Line Items] | |||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 23.6 | $ 0.0 | $ 0.0 |
Valuation allowance | 516.7 | $ 525.5 | |
Operating Loss Carryforwards | $ 2,300.0 |
COMMITMENTS AND GUARANTEES - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Guarantor Obligations [Line Items] | |||
Guarantee Obligations Maximum Potential Payment | $ 249.6 | ||
Carrying amount of guarantees recorded in the consolidated balance sheet | 26.2 | ||
Lease Obligations | |||
Guarantor Obligations [Line Items] | |||
Estimated asset fair value | 118.9 | ||
Guarantees on the residual values of leased properties | |||
Guarantor Obligations [Line Items] | |||
Guarantee Obligations Maximum Potential Payment | 102.6 | ||
Carrying amount of guarantees recorded in the consolidated balance sheet | 0.0 | ||
Standby letters of credit | |||
Guarantor Obligations [Line Items] | |||
Guarantee Obligations Maximum Potential Payment | 72.9 | ||
Carrying amount of guarantees recorded in the consolidated balance sheet | 0.0 | ||
Commercial customer financing arrangements | |||
Guarantor Obligations [Line Items] | |||
Guarantee Obligations Maximum Potential Payment | 74.1 | ||
Carrying amount of guarantees recorded in the consolidated balance sheet | 26.2 | ||
Noncancelable Lease Obligations | |||
Guarantor Obligations [Line Items] | |||
Sublease rentals | 4.7 | ||
Rent expenses under operating lease | $ 150.4 | $ 124.2 | $ 121.5 |
COMMITMENTS AND GUARANTEES - Summary of Future Commitements For Operating Lease Obligations (Detail) $ in Millions |
Dec. 30, 2017
USD ($)
|
---|---|
Schedule of Operating Leases [Line Items] | |
Total | $ 523.8 |
2013 | 155.6 |
2014 | 113.9 |
2015 | 72.4 |
2016 | 53.3 |
2017 | 39.5 |
Thereafter | 89.1 |
Operating lease obligations | |
Schedule of Operating Leases [Line Items] | |
Total | 473.3 |
2013 | 124.7 |
2014 | 96.2 |
2015 | 70.5 |
2016 | 53.3 |
2017 | 39.5 |
Thereafter | 89.1 |
Marketing and other commitments | |
Schedule of Operating Leases [Line Items] | |
Total | 50.5 |
2013 | 30.9 |
2014 | 17.7 |
2015 | 1.9 |
2016 | 0.0 |
2017 | 0.0 |
Thereafter | $ 0.0 |
COMMITMENTS AND GUARANTEES - Financial Guarantees (Detail) $ in Millions |
12 Months Ended |
---|---|
Dec. 30, 2017
USD ($)
| |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | $ 249.6 |
Carrying Amount of Liability | 26.2 |
Guarantees on the residual values of leased properties | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | 102.6 |
Carrying Amount of Liability | $ 0.0 |
Standby letters of credit | |
Guarantor Obligations [Line Items] | |
Term | P3Y |
Maximum Potential Payment | $ 72.9 |
Carrying Amount of Liability | $ 0.0 |
Commercial customer financing arrangements | |
Guarantor Obligations [Line Items] | |
Term | P6Y |
Maximum Potential Payment | $ 74.1 |
Carrying Amount of Liability | $ 26.2 |
Minimum | Guarantees on the residual values of leased properties | |
Guarantor Obligations [Line Items] | |
Term | P1Y |
Maximum | Guarantees on the residual values of leased properties | |
Guarantor Obligations [Line Items] | |
Term | P4Y |
COMMITMENTS AND GUARANTEES - Changes in Carrying Amount of Product and Service Warranties (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Summary of warranty liability activity | |||
Beginning balance | $ 103.4 | $ 105.4 | $ 109.6 |
Warranties and guarantees issued | 105.3 | 97.2 | 91.8 |
Extended Product Warranty Accrual, Additions from Business Acquisition | 67.5 | 0.0 | 0.0 |
Warranty payments and currency | (100.2) | (99.2) | (96.0) |
Ending balance | $ 176.0 | $ 103.4 | $ 105.4 |
CONTINGENCIES - Additional Information (Detail) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Apr. 01, 2017
USD ($)
|
Dec. 30, 2017
USD ($)
sites
|
Dec. 31, 2016
USD ($)
|
|
Commitments and Contingencies Disclosure [Line Items] | |||
Superfund Sites | sites | 27 | ||
Reserve for environmental loss contingencies, EPA funded amount | $ 12.2 | ||
Environmental remediation. Period construction of treatment facility to be maintained | 30 years | ||
Undiscounted environmental liability expected to be paid 2013 | $ 7.0 | ||
Accrual for Environmental Loss Contingencies, Undiscounted, Second Year | 8.7 | ||
Undiscounted environmental liability expected to be paid in 2015 | 2.6 | ||
Undiscounted environmental liability expected to be paid in 2016 | 2.6 | ||
Undiscounted environmental liability expected to be paid in 2017 | 2.6 | ||
Undiscounted environmental liability expected to be paid thereafter | 31.9 | ||
Leased Sites | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Discounted environmental liability | 46.3 | ||
Undiscounted environmental liability | 55.4 | ||
Centredale Site | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Reserve for environmental remediation costs | 68.1 | ||
Property, Plant and Equipment, Other Types | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Environmental Remediation Expense | $ 17.1 | ||
Reserve for environmental remediation costs | 176.1 | $ 160.9 | |
Reserve for environmental remediation costs, current | 22.5 | ||
Reserve for environmental remediation costs, noncurrent | 153.6 | ||
Reserve for environmental loss contingencies, obligation after EPA funding | $ 163.9 | ||
Minimum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Environmental liability discount rate | 1.10% | ||
Minimum | Centredale Site | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Environmental remediation deemed probable and reasonably estimable | $ 68.1 | ||
Minimum | Property, Plant and Equipment, Other Types | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Environmental remediation deemed probable and reasonably estimable | $ 143.4 | ||
Maximum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Environmental liability discount rate | 2.90% | ||
Maximum | Centredale Site | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Environmental remediation deemed probable and reasonably estimable | $ 139.8 | ||
Maximum | Property, Plant and Equipment, Other Types | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Environmental remediation deemed probable and reasonably estimable | $ 277.1 |
DISCONTINUED OPERATIONS - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2017 |
Apr. 01, 2017 |
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
Jul. 01, 2017 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Accounts and notes receivable, net | $ 35.3 | |||||
Income (Loss) from Individually Significant Component Disposed of or Held-for-sale, Excluding Discontinued Operations, before Income Tax | $ 7.0 | 50.0 | $ 33.3 | |||
Inventories, net | 33.2 | |||||
Property, Plant and Equipment, net | 52.3 | |||||
Goodwill and other intangibles, net | 399.8 | |||||
Other Assets | 2.8 | |||||
Total assets | 523.4 | |||||
Accounts payable and accrued expenses | 38.0 | |||||
Other liabilities | 15.5 | |||||
Liabilities held for sale | 0.0 | 53.5 | ||||
Gain (Loss) on Disposition of Business | $ (13.7) | 264.1 | $ 0.0 | $ 0.0 | ||
Gain (Loss) on Disposal of business, Net of Tax - NOT Discontinued operations | $ (264.1) | |||||
small business in Tools & Storage segment [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds (payments) from sales of businesses, net of cash sold | $ 0.5 | |||||
Proceeds (payments) from sales of businesses, net of cash sold | $ 25.6 | |||||
Small Business in Security Segment [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds (payments) from sales of businesses, net of cash sold | $ 717.1 |
DISCONTINUED OPERATIONS - Operating Results of Divested Businesses (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets held for sale | $ 0.0 | $ 523.4 | |
Operating results of discontinued operations: | |||
Net Sales | $ 39.4 | ||
(Loss) earnings from discontinued operations before income taxes (including pretax gain on HHI sale of $384.7 million in 2012) | 0.0 | 0.0 | 19.3 |
Income tax (benefit) expense on discontinued operations (including income taxes associated with the gain on HHI sale of $25.8 million in 2012) | 0.0 | 0.0 | (0.8) |
Net loss from discontinued operations | 0.0 | 0.0 | $ (20.1) |
Carrying amounts of assets and liabilites of discontinued operations | |||
Assets Held-for-sale, Current | 0.0 | 523.4 | |
Liabilities of Assets Held-for-sale | $ 0.0 | $ 53.5 |
SELECTED QUARTERLY FINANCIAL DATA SELECTED QUARTERLY FINANCIAL DATA- Additional Information (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 30, 2017
USD ($)
| |
merger and acquisition related charges [Abstract] | |
Net Additions | $ 51.5 |
SELECTED QUARTERLY FINANCIAL DATA SELECTED QUARTERLY FINANCIAL DATA (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2017 |
Sep. 30, 2017 |
Jul. 01, 2017 |
Apr. 01, 2017 |
Dec. 31, 2016 |
Oct. 01, 2016 |
Jul. 02, 2016 |
Apr. 02, 2016 |
Dec. 30, 2017 |
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Quarterly Financial Data [Abstract] | |||||||||||
Business Combination, Acquisition Related Costs | $ 27,000,000 | $ 33,000,000 | $ 43,000,000 | $ 211,000,000 | $ 156,000,000 | ||||||
Business Combination, Acquisition Related Costs, Net of Tax | $ 53,000,000 | $ 24,000,000 | $ 29,000,000 | $ 197,000,000 | |||||||
Business Combination, Acquisition Related Costs, Diluted Earnings Per Share Impact | $ (0.34) | $ (0.16) | $ (0.20) | $ 1.30 | |||||||
Net Sales | $ 3,413,500,000 | $ 3,298,600,000 | $ 3,229,500,000 | $ 2,805,600,000 | $ 2,920,400,000 | $ 2,882,000,000 | $ 2,932,400,000 | $ 2,672,100,000 | 12,747,200,000 | $ 11,406,900,000 | $ 11,171,800,000 |
Gross Profit | 1,248,400,000 | 1,252,100,000 | 1,212,200,000 | 1,065,300,000 | 1,076,600,000 | 1,084,100,000 | 1,128,900,000 | 977,600,000 | 4,778,000,000 | 4,267,200,000 | |
Selling, General and Administrative Expense, Total including Allowance for Doubtful Accounts | 793,300,000 | 763,400,000 | 738,700,000 | 684,700,000 | 683,800,000 | 645,400,000 | 666,900,000 | 627,800,000 | 2,980,100,000 | 2,623,900,000 | |
Earnings from continuing operations | 281,100,000 | 274,200,000 | 277,200,000 | 393,100,000 | 255,800,000 | 249,000,000 | 271,500,000 | 188,600,000 | 1,225,600,000 | 964,900,000 | 902,200,000 |
Income (Loss) from Continuing Operations Attributable to Noncontrolling Interest | (400,000) | 0 | 0 | 0 | 300,000 | 100,000 | 0 | (800,000) | (400,000) | (400,000) | (1,600,000) |
Net earnings from continuing operations attributable to common shareowners | 1,226,000,000 | 965,300,000 | 903,800,000 | ||||||||
Net loss from discontinued operations | 0 | 0 | (20,100,000) | ||||||||
Net Earnings Attributable to Common Shareowners | $ 281,500,000 | $ 274,200,000 | $ 277,200,000 | $ 393,100,000 | $ 255,500,000 | $ 248,900,000 | $ 271,500,000 | $ 189,400,000 | $ 1,226,000,000 | $ 965,300,000 | $ 883,700,000 |
Continuing operations (USD per share) | $ 8.19 | $ 6.61 | $ 6.10 | ||||||||
Discontinued operations (USD per share) | 0.00 | 0.00 | (0.14) | ||||||||
Total basic earnings per share of common stock (USD per share) | $ 1.88 | $ 1.83 | $ 1.85 | $ 2.63 | $ 1.74 | $ 1.71 | $ 1.87 | $ 1.30 | 8.19 | 6.61 | 5.96 |
Continuing operations (USD per share) | 8.04 | 6.51 | 5.92 | ||||||||
Discontinued operations (USD per share) | 0.00 | 0.00 | (0.13) | ||||||||
Total diluted earnings per share of common stock (USD per share) | $ 1.84 | $ 1.80 | $ 1.82 | $ 2.59 | $ 1.71 | $ 1.68 | $ 1.84 | $ 1.28 | $ 8.04 | $ 6.51 | $ 5.79 |
Gain (Loss) on Disposition of Business | $ (13,700,000) | $ 264,100,000 | $ 0 | $ 0 | |||||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 23,600,000 | $ 0 | $ 0 |
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