-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IQiTjpE4fPZn+29/vxvZtZHQHeBMAWVdSGZaYHRorogrpftGDlXymlaSeSkrJy5d e0hTOc72JBadISo2xRDx7g== 0000012355-03-000050.txt : 20030409 0000012355-03-000050.hdr.sgml : 20030409 20030409170501 ACCESSION NUMBER: 0000012355-03-000050 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030409 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030409 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLACK & DECKER CORP CENTRAL INDEX KEY: 0000012355 STANDARD INDUSTRIAL CLASSIFICATION: METALWORKING MACHINERY & EQUIPMENT [3540] IRS NUMBER: 520248090 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-03593 FILM NUMBER: 03644390 BUSINESS ADDRESS: STREET 1: 701 E JOPPA RD CITY: TOWSON STATE: MD ZIP: 21286 BUSINESS PHONE: 4107163900 MAIL ADDRESS: STREET 1: 701 EAST JOPPA ROAD STREET 2: MAIL STOP TW 290 CITY: TOWSON STATE: MD ZIP: 21286 FORMER COMPANY: FORMER CONFORMED NAME: BLACK & DECKER MANUFACTURING CO DATE OF NAME CHANGE: 19850206 8-K 1 form8k04092003a.txt FORM 8-K DATED APRIL 9, 2003 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) April 9, 2003 ------------------------------- THE BLACK & DECKER CORPORATION - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Maryland 1-1553 52-0248090 - ------------------------ ------------------------ ---------------------- (State of Incorporation) (Commission File Number) (I.R.S. Employer Identification Number) 701 East Joppa Road, Towson, Maryland 21286 - ------------------------------------- --------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 410-716-3900 ---------------------- Not Applicable - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) - 2 - ITEM 5. OTHER EVENTS As more fully described in Note 15 of Notes to Consolidated Financial Statements included in Item 8 of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2002 ("Note 15"), the Corporation assesses the performance of its reportable business segments based upon a number of factors, including segment profit. For segment reporting purposes, segment assets and elements of segment profit are translated using budgeted rates of exchange. Budgeted rates of exchange are established annually and, once established, all prior period segment data is updated to reflect the translation of segment assets and elements of segment profit at the current year's budgeted rates of exchange. Amounts included in the first table of Note 15 under the captions "Reportable Business Segments" and "Corporate, Adjustments, & Eliminations" are reflected at the Corporation's budgeted rates of exchange for 2002. The amounts included in that table under the caption "Currency Translation Adjustments" represent the difference between consolidated amounts determined using the budgeted rates of exchange for 2002 and those determined based upon the rates of exchange applicable under accounting principles generally accepted in the United States. The Corporation has established budgeted rates of exchange for 2003 and, accordingly, segment data for prior periods has been updated to reflect the translation of segment assets, elements of segment profit, and certain other segment data at the budgeted rates of exchange for 2003. For informational purposes, the Corporation has included as Exhibit 99.0 to this Current Report on Form 8-K selected unaudited supplemental information about its business segments for 2002, 2001, and 2000 updated to reflect the translation of elements of segment profit and certain other segment data at the budgeted rates of exchange for 2003. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS Exhibit 99.0 Selected unaudited supplemental information about the Corporation's business segments for each of the three years in the period ended December 31, 2002, and for each of the quarters in the years ended December 31, 2002 and 2001. - 3 - THE BLACK & DECKER CORPORATION S I G N A T U R E S Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. THE BLACK & DECKER CORPORATION By /s/ CHRISTINA M. MCMULLEN --------------------------------------- Christina M. McMullen Vice President and Controller EX-99 3 form8k04092003b.txt EX-99.0, EXHIBIT 99.0 EXHIBIT 99.0 THE BLACK & DECKER CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION ABOUT BUSINESS SEGMENTS (Unaudited) (Millions of Dollars)
Reportable Business Segments -------------------------------------------------- Power Hardware Fastening Currency Corporate, Tools & & Home & Assembly Translation Adjustments, Year Ended December 31, 2002 Accessories Improvement Systems Total Adjustments & Eliminations Consolidated - ------------------------------------------------------------------------------------------------------------------------------------ Sales to unaffiliated customers $3,156.2 $766.4 $513.3 $4,435.9 $(41.9) $ - $4,394.0 Segment profit (loss) (for Consolidated, operating income before restructuring and exit costs) 354.7 53.5 74.7 482.9 (4.1) (58.0) 420.8 Depreciation and amortization 80.1 31.2 14.2 125.5 (1.0) 3.3 127.8 Capital expenditures 70.8 11.4 13.9 96.1 (.3) .8 96.6 Year Ended December 31, 2001 - ------------------------------------------------------------------------------------------------------------------------------------ Sales to unaffiliated customers $3,059.5 $775.3 $489.5 $4,324.3 $(78.7) $ - $4,245.6 Segment profit (loss) (for Consolidated, operating income before restructuring and exit costs) 250.9 60.1 71.0 382.0 (2.5) (31.9) 347.6 Depreciation and amortization 87.0 34.1 14.5 135.6 (2.0) 25.8 159.4 Capital expenditures 86.0 33.4 15.7 135.1 (1.1) .8 134.8 Year Ended December 31, 2000 - ------------------------------------------------------------------------------------------------------------------------------------ Sales to unaffiliated customers $3,127.2 $840.5 $500.3 $4,468.0 $ 6.9 $ - $4,474.9 Segment profit (loss) (for Consolidated, operating income before restructuring and exit costs and gain on sale of business) 354.1 114.6 83.0 551.7 2.7 (32.1) 522.3 Depreciation and amortization 85.3 34.8 16.1 136.2 .8 26.4 163.4 Capital expenditures 140.5 31.3 26.3 198.1 1.3 .8 200.2
The reconciliation of segment profit to the Corporation's earnings before income taxes for each of the three years in the period ended December 31, 2002, in millions of dollars, is as follows:
Year Ended December 31, - ------------------------------------------------------------------------------------------------------------------- 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------- Segment profit for total reportable business segments $482.9 $382.0 $551.7 Items excluded from segment profit: Adjustment of budgeted foreign exchange rates to actual rates (4.1) (2.5) 2.7 Depreciation of Corporate property and amortization of certain goodwill (1.3) (25.8) (26.4) Adjustment to businesses' postretirement benefit expenses booked in consolidation 37.6 41.3 36.4 Other adjustments booked in consolidation directly related to reportable business segments (8.6) (.7) (14.1) Amounts allocated to businesses in arriving at segment profit in excess of (less than) Corporate center operating expenses, eliminations, and other amounts identified above (85.7) (46.7) (28.0) - ------------------------------------------------------------------------------------------------------------------- Operating income before restructuring and exit costs, and gain on sale of business 420.8 347.6 522.3 Restructuring and exit costs 50.7 99.8 39.1 Gain on sale of business - - 20.1 - ------------------------------------------------------------------------------------------------------------------- Operating income 370.1 247.8 503.3 Interest expense, net of interest income 57.8 84.3 104.2 Other expense (income) 4.9 8.2 (5.5) - ------------------------------------------------------------------------------------------------------------------- Earnings before income taxes $307.4 $155.3 $404.6 ===================================================================================================================
Reportable Business Segments -------------------------------------------------- Power Hardware Fastening Currency Corporate, Tools & & Home & Assembly Translation Adjustments, Quarter Ended March 31, 2002 Accessories Improvement Systems Total Adjustments & Eliminations Consolidated - ------------------------------------------------------------------------------------------------------------------------------------ Sales to unaffiliated customers $652.0 $201.0 $125.9 $ 978.9 $(27.2) $ - $ 951.7 Segment profit (loss) (for Consolidated, operating income) 39.1 15.6 16.5 71.2 (2.0) (7.0) 62.2 Depreciation and amortization 21.7 9.4 3.6 34.7 (.8) .3 34.2 Capital expenditures 15.2 3.4 3.6 22.2 (.3) .2 22.1 Quarter Ended June 30, 2002 - ------------------------------------------------------------------------------------------------------------------------------------ Sales to unaffiliated customers $815.0 $196.6 $132.7 $1,144.3 $(19.0) $ - $1,125.3 Segment profit (loss) (for Consolidated, operating income) 95.2 6.8 19.1 121.1 (1.6) (12.0) 107.5 Depreciation and amortization 18.5 8.2 3.6 30.3 (.4) .7 30.6 Capital expenditures 20.3 2.8 3.8 26.9 (.2) .1 26.8 Quarter Ended September 29, 2002 - ------------------------------------------------------------------------------------------------------------------------------------ Sales to unaffiliated customers $778.0 $179.7 $125.9 $1,083.6 $ 1.6 $ - $1,085.2 Segment profit (loss) (for Consolidated, operating income before restructuring and exit costs) 106.2 10.5 19.2 135.9 .1 (14.3) 121.7 Depreciation and amortization 19.9 7.4 3.6 30.9 .1 .1 31.1 Capital expenditures 16.8 2.4 1.6 20.8 .1 .4 21.3 Quarter Ended December 31, 2002 - ------------------------------------------------------------------------------------------------------------------------------------ Sales to unaffiliated customers $911.2 $189.1 $128.8 $1,229.1 $ 2.7 $ - $1,231.8 Segment profit (loss) (for Consolidated, operating income before restructuring and exit costs) 114.2 20.6 19.9 154.7 (.6) (24.7) 129.4 Depreciation and amortization 20.0 6.2 3.4 29.6 .1 2.2 31.9 Capital expenditures 18.5 2.8 4.9 26.2 .1 .1 26.4 Quarter Ended April 1, 2001 - ------------------------------------------------------------------------------------------------------------------------------------ Sales to unaffiliated customers $647.8 $199.4 $123.0 $ 970.2 $ (8.2) $ - $ 962.0 Segment profit (loss) (for Consolidated, operating income) 35.7 17.7 19.8 73.2 (.9) .1 72.4 Depreciation and amortization 23.2 10.1 3.7 37.0 (.2) 6.5 43.3 Capital expenditures 25.8 9.5 3.0 38.3 - .5 38.8 Quarter Ended July 1, 2001 - ------------------------------------------------------------------------------------------------------------------------------------ Sales to unaffiliated customers $758.7 $189.8 $127.0 $1,075.5 $(25.8) $ - $1,049.7 Segment profit (loss) (for Consolidated, operating income) 54.6 8.8 21.0 84.4 (.4) .2 84.2 Depreciation and amortization 22.9 8.9 3.9 35.7 (1.2) 6.6 41.1 Capital expenditures 19.3 8.2 3.2 30.7 (.3) .2 30.6 Quarter Ended September 30, 2001 - ------------------------------------------------------------------------------------------------------------------------------------ Sales to unaffiliated customers $752.0 $187.6 $120.7 $1,060.3 $(21.1) $ - $1,039.2 Segment profit (loss) (for Consolidated, operating income) 77.8 16.2 15.1 109.1 (.1) (20.0) 89.0 Depreciation and amortization 20.0 8.2 4.0 32.2 (.1) 6.3 38.4 Capital expenditures 20.1 7.4 3.7 31.2 (.2) - 31.0 Quarter Ended December 31, 2001 - ------------------------------------------------------------------------------------------------------------------------------------ Sales to unaffiliated customers $901.0 $198.5 $118.8 $1,218.3 $(23.6) $ - $1,194.7 Segment profit (loss) (for Consolidated, operating income before restructuring and exit costs) 82.8 17.4 15.1 115.3 (1.1) (12.2) 102.0 Depreciation and amortization 20.9 6.9 2.9 30.7 (.5) 6.4 36.6 Capital expenditures 20.8 8.3 5.8 34.9 (.6) .1 34.4
The reconciliation of segment profit to the Corporation's earnings (loss) before income taxes for each of the quarters in the years ended December 31, 2002 and 2001, in millions of dollars, is as follows:
Quarter Ended - ------------------------------------------------------------------------------------------------------------------------------------ March 31, June 30, September 29, December 31, 2002 2002 2002 2002 - ------------------------------------------------------------------------------------------------------------------------------------ Segment profit for total reportable business segments $ 71.2 $121.1 $135.9 $154.7 Items excluded from segment profit: Adjustment of budgeted foreign exchange rates to actual rates (2.0) (1.6) .1 (.6) Depreciation of Corporate property (.3) (.7) (.1) (.2) Adjustment to businesses' postretirement benefit expenses booked in consolidation 10.3 8.7 9.3 9.3 Other adjustments booked in consolidation directly related to reportable business segments (4.7) 3.2 (2.1) (5.0) Amounts allocated to businesses in arriving at segment profit in excess of (less than) Corporate center operating expenses, eliminations, and other amounts identified above (12.3) (23.2) (21.4) (28.8) - ------------------------------------------------------------------------------------------------------------------------------------ Operating income before restructuring and exit costs 62.2 107.5 121.7 129.4 Restructuring and exit costs - - 38.4 12.3 - ------------------------------------------------------------------------------------------------------------------------------------ Operating income 62.2 107.5 83.3 117.1 Interest expense, net of interest income 15.8 14.8 14.2 13.0 Other expense (income) 1.2 2.2 1.7 (.2) - ------------------------------------------------------------------------------------------------------------------------------------ Earnings before income taxes $ 45.2 $ 90.5 $ 67.4 $104.3 ==================================================================================================================================== Quarter Ended - ------------------------------------------------------------------------------------------------------------------------------------ April 1, July 1, September 30, December 31, 2001 2001 2001 2001 - ------------------------------------------------------------------------------------------------------------------------------------ Segment profit for total reportable business segments $73.2 $84.4 $109.1 $115.3 Items excluded from segment profit: Adjustment of budgeted foreign exchange rates to actual rates (.9) (.4) (.1) (1.1) Depreciation of Corporate property and amortization of certain goodwill (6.5) (6.6) (6.3) (6.4) Adjustment to businesses' postretirement benefit expenses booked in consolidation 11.0 9.9 9.4 11.0 Other adjustments booked in consolidation directly related to reportable business segments 4.6 .6 (8.2) 2.3 Amounts allocated to businesses in arriving at segment profit in excess of (less than) Corporate center operating expenses, eliminations, and other amounts identified above (9.0) (3.7) (14.9) (19.1) - ------------------------------------------------------------------------------------------------------------------------------------ Operating income before restructuring and exit costs 72.4 84.2 89.0 102.0 Restructuring and exit costs - - - 99.8 - ------------------------------------------------------------------------------------------------------------------------------------ Operating income 72.4 84.2 89.0 2.2 Interest expense, net of interest income 22.4 22.7 20.4 18.8 Other expense 2.7 1.9 2.7 .9 - ------------------------------------------------------------------------------------------------------------------------------------ Earnings (loss) before income taxes $47.3 $59.6 $ 65.9 $(17.5) ====================================================================================================================================
Basis of Presentation: The Corporation operates in three reportable business segments: Power Tools and Accessories, Hardware and Home Improvement, and Fastening and Assembly Systems. The Power Tools and Accessories segment has worldwide responsibility for the manufacture and sale of consumer and professional power tools and accessories, electric cleaning and lighting products, and electric lawn and garden tools, as well as for product service. In addition, the Power Tools and Accessories segment has responsibility for the sale of security hardware to customers in Mexico, Central America, the Caribbean, and South America; for the sale of plumbing products to customers outside the United States and Canada; and for sales of household products. The Hardware and Home Improvement segment has worldwide responsibility for the manufacture and sale of security hardware (except for the sale of security hardware in Mexico, Central America, the Caribbean, and South America). It also has responsibility for the manufacture of plumbing products and for the sale of plumbing products to customers in the United States and Canada. The Fastening and Assembly Systems segment has worldwide responsibility for the manufacture and sale of fastening and assembly systems. The Corporation assesses the performance of its reportable business segments based upon a number of factors, including segment profit. In general, segments follow the same accounting policies as those described in Note 1 of Notes to Consolidated Financial Statements included in Item 8 of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2002, except with respect to foreign currency translation and except as further indicated below. The financial statements of a segment's operating units located outside of the United States, except those units operating in highly inflationary economies, are generally measured using the local currency as the functional currency. For these units located outside of the United States, segment assets and elements of segment profit are translated using budgeted rates of exchange. Budgeted rates of exchange are established annually and, once established, all prior period segment data is restated to reflect the current year's budgeted rates of exchange. The amounts included in the preceding tables under the captions "Reportable Business Segments" and "Corporate, Adjustments, & Eliminations" are reflected at the Corporation's budgeted rates of exchange for 2003. The amounts included in the preceding tables under the caption "Currency Translation Adjustments" represent the difference between consolidated amounts determined using those budgeted rates of exchange and those determined based upon the rates of exchange applicable under accounting principles generally accepted in the United States. Segment profit excludes interest income and expense, non-operating income and expense, adjustments to eliminate intercompany profit in inventory, income tax expense, and, for 2001 and 2000, goodwill amortization (except for the amortization of goodwill associated with certain acquisitions made by the Power Tools and Accessories and Fastening and Assembly Systems segments). In addition, segment profit excludes restructuring and exit costs and the gain on sale of business. In determining segment profit, expenses relating to pension and other postretirement benefits are based solely upon estimated service costs. Corporate expenses, as well as certain centrally managed expenses, are allocated to each reportable segment based upon budgeted amounts. While sales and transfers between segments are accounted for at cost plus a reasonable profit, the effects of intersegment sales are excluded from the computation of segment profit. Intercompany profit in inventory is excluded from segment assets and is recognized as a reduction of cost of goods sold by the selling segment when the related inventory is sold to an unaffiliated customer. Because the Corporation compensates the management of its various businesses on, among other factors, segment profit, the Corporation may elect to record certain segment-related expense items of an unusual or non-recurring nature in consolidation rather than reflect such items in segment profit. In addition, certain segment-related items of income or expense may be recorded in consolidation in one period and transferred to the various segments in a later period. -----END PRIVACY-ENHANCED MESSAGE-----