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 | ¨ |
ITEM 1. | ||
ITEM 1A. | ||
ITEM 1B. | ||
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ITEM 7. | ||
ITEM 7A. | ||
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ITEM 9. | ||
ITEM 9A. | ||
ITEM 9B. | ||
ITEM 10. | ||
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ITEM 12. | ||
ITEM 13. | ||
ITEM 14. | ||
ITEM 15. | ||
SIGNATURES | ||
EX-10.4 | ||
EX-10.19 (b) | ||
EX-12 | ||
EX-21 | ||
EX-23 | ||
EX-24 | ||
EX-31.I.A | ||
EX-31.I.B | ||
EX-32.I | ||
EX-32.II |
• | 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; |
• | 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 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 ratio required for compliance is 3.5 times EBITDA to 1.0 times Interest Expense and is computed quarterly, on a rolling twelve months (last twelve months) basis. Under this covenant definition, the interest coverage ratio was approximately 9 times EBITDA or higher in each of the 2015 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 timeframes 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 | 40 | 16 | 56 | |||||
Security | 5 | 3 | 8 | |||||
Industrial | 10 | 4 | 14 | |||||
Total | 55 | 23 | 78 |
2015 | 2014 | |||||||||||||||||||||||
High | Low | Dividend Per Common Share | High | Low | Dividend Per Common Share | |||||||||||||||||||
QUARTER: | ||||||||||||||||||||||||
First | $ | 100.17 | $ | 90.51 | $ | 0.52 | $ | 83.04 | $ | 75.64 | $ | 0.50 | ||||||||||||
Second | $ | 107.71 | $ | 95.93 | $ | 0.52 | $ | 89.02 | $ | 77.58 | $ | 0.50 | ||||||||||||
Third | $ | 108.17 | $ | 94.66 | $ | 0.55 | $ | 93.46 | $ | 85.01 | $ | 0.52 | ||||||||||||
Fourth | $ | 110.17 | $ | 98.15 | $ | 0.55 | $ | 97.36 | $ | 81.31 | $ | 0.52 | ||||||||||||
Total | $ | 2.14 | $ | 2.04 |
2015 | (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 | Maximum Number Of Shares That May Yet Be Purchased Under The Program | |||||||||
October 4 - November 7 | 2,105 | $ | 101.66 | — | — | ||||||||
November 8 - December 5 | 46,783 | $ | 109.25 | — | — | ||||||||
December 6 - January 2 | 40,362 | $ | 109.34 | — | — | ||||||||
Total | 89,250 | $ | 109.11 | — | — |
(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. |
(Millions of Dollars) | 2015 | 2014 | 2013 (a) | 2012 (b) | 2011 (c) | |||||||||||||||
Continuing Operations: | ||||||||||||||||||||
Net sales | $ | 11,172 | $ | 11,339 | $ | 10,890 | $ | 10,022 | $ | 9,332 | ||||||||||
Net earnings from continuing operations attributable to common shareowners | $ | 904 | $ | 857 | $ | 520 | $ | 458 | $ | 612 | ||||||||||
Net (loss) earnings from discontinued operations (d) | $ | (20 | ) | $ | (96 | ) | $ | (30 | ) | $ | 426 | $ | 63 | |||||||
Net earnings attributable to common shareowners | $ | 884 | $ | 761 | $ | 490 | $ | 884 | $ | 675 | ||||||||||
Basic earnings (loss) per share: | ||||||||||||||||||||
Continuing operations | $ | 6.10 | $ | 5.49 | $ | 3.35 | $ | 2.81 | $ | 3.69 | ||||||||||
Discontinued operations (d) | $ | (0.14 | ) | $ | (0.62 | ) | $ | (0.19 | ) | $ | 2.61 | $ | 0.38 | |||||||
Total basic earnings per share | $ | 5.96 | $ | 4.87 | $ | 3.16 | $ | 5.41 | $ | 4.06 | ||||||||||
Diluted earnings (loss) per share: | ||||||||||||||||||||
Continuing operations | $ | 5.92 | $ | 5.37 | $ | 3.28 | $ | 2.75 | $ | 3.60 | ||||||||||
Discontinued operations (d) | $ | (0.13 | ) | $ | (0.60 | ) | $ | (0.19 | ) | $ | 2.55 | $ | 0.37 | |||||||
Total diluted earnings per share | $ | 5.79 | $ | 4.76 | $ | 3.09 | $ | 5.30 | $ | 3.97 | ||||||||||
Percent of net sales (Continuing operations): | ||||||||||||||||||||
Cost of sales | 63.6 | % | 63.8 | % | 64.2 | % | 63.5 | % | 63.1 | % | ||||||||||
Selling, general and administrative (e) | 22.3 | % | 22.9 | % | 24.7 | % | 24.7 | % | 25.2 | % | ||||||||||
Other-net | 2.0 | % | 2.1 | % | 2.6 | % | 3.0 | % | 2.7 | % | ||||||||||
Interest, net | 1.5 | % | 1.4 | % | 1.4 | % | 1.3 | % | 1.2 | % | ||||||||||
Earnings before income taxes | 10.3 | % | 9.6 | % | 5.4 | % | 5.3 | % | 7.1 | % | ||||||||||
Net earnings from continuing operations attributable to common shareowners | 8.1 | % | 7.6 | % | 4.8 | % | 4.6 | % | 6.6 | % | ||||||||||
Balance sheet data: | ||||||||||||||||||||
Total assets | $ | 15,172 | $ | 15,849 | $ | 16,535 | $ | 15,844 | $ | 15,949 | ||||||||||
Long-term debt | $ | 3,837 | $ | 3,840 | $ | 3,799 | $ | 3,527 | $ | 2,926 | ||||||||||
Stanley Black & Decker, Inc.’s Shareowners’ Equity | $ | 5,812 | $ | 6,429 | $ | 6,799 | $ | 6,667 | $ | 7,004 | ||||||||||
Ratios: | ||||||||||||||||||||
Total debt to total capital | 39.8 | % | 37.4 | % | 38.2 | % | 34.7 | % | 33.0 | % | ||||||||||
Income tax rate - continuing operations | 21.6 | % | 20.9 | % | 11.7 | % | 14.2 | % | 8.2 | % | ||||||||||
Common stock data: | ||||||||||||||||||||
Dividends per share | $ | 2.14 | $ | 2.04 | $ | 1.98 | $ | 1.80 | $ | 1.64 | ||||||||||
Equity per share at year-end | $ | 39.08 | $ | 41.34 | $ | 43.73 | $ | 43.19 | $ | 42.84 | ||||||||||
Market price per share - high | $ | 110.17 | $ | 97.36 | $ | 92.36 | $ | 81.34 | $ | 77.29 | ||||||||||
Market price per share - low | $ | 90.51 | $ | 75.64 | $ | 73.97 | $ | 59.25 | $ | 47.83 | ||||||||||
Average shares outstanding (in 000’s): | ||||||||||||||||||||
Basic | 148,234 | 156,090 | 155,237 | 163,067 | 165,832 | |||||||||||||||
Diluted | 152,706 | 159,737 | 158,776 | 166,701 | 170,105 | |||||||||||||||
Other information: | ||||||||||||||||||||
Average number of employees | 51,815 | 50,375 | 49,445 | 45,327 | 44,309 | |||||||||||||||
Shareowners of record at end of year | 10,603 | 10,932 | 11,235 | 11,285 | 11,643 |
(a) | 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 |
(b) | The Company's 2012 results include $442 million of pre-tax charges related to merger and acquisition-related charges, the charges associated with the $200 million in cost actions implemented in 2012, as well as the charges associated with the extinguishment of debt during the third quarter of 2012. As a result of these charges, net earnings attributable to common shareowners were reduced by $329 million (or $1.97 per diluted share). As a percentage of Net Sales, Cost of sales was 30 basis points higher, Selling, general & administrative was 138 basis points higher, Other-net was 53 basis points higher, Earnings before income taxes was 441 basis points lower, and Net earnings attributable to common shareowners was 328 basis points lower. The Income tax rate - continuing operations ratio was 514 basis points lower. During 2012, the Company recognized an income tax benefit attributable to the settlement of certain tax contingencies of $49 million, or $0.29 per diluted share. |
(c) | The Company’s 2011 results include $227 million of pre-tax merger and acquisition-related charges incurred in connection with the Black & Decker merger and other acquisition activities, such as Niscayah. These charges include facility closure-related charges, employee related matters, including severance costs, transaction and integration costs. As a result of these charges, net earnings attributable to common shareowners were reduced by $180 million (or $1.06 per diluted share). As a percentage of Net sales, Cost of sales was 23 basis points higher, Selling, general & administrative was 105 basis points higher, Other-net was 52 basis points higher, Earnings before income taxes was 243 basis points lower, and Net earnings attributable to common shareowners was 193 basis points lower. The Income tax rate - continuing operations ratio was 321 basis points lower. During 2011, the Company recognized an income tax benefit attributable to the settlement of certain tax contingencies of $73 million, or $0.43 per diluted share. |
(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, HHI, and two small businesses that were divested in 2014. Amounts in 2012 reflect earnings of $426 million, or $2.55 per diluted share, related to Security Spain and Italy as well as HHI, partially offset by losses associated with two small businesses previously discussed. The net (loss) earnings from discontinued operations in 2013 and 2012 include net gains related to the HHI sale of $4.7 million and $358.9 million, respectively. Refer to Note T, Discontinued Operations, of the Notes to Consolidated Financial Statements in Item 8 for further discussion. Amounts in 2011 reflect earnings of $63 million (or $0.37 per diluted share) related to Security Spain and Italy, HHI, two small businesses divested in 2014, and three small businesses divested during 2011. |
(e) | SG&A is inclusive of the Provision for Doubtful Accounts. |
• | Maintaining organic growth momentum by utilizing SFS 2.0 as a catalyst, diversifying toward higher growth, higher profit businesses, and increasing relative weighting of emerging markets; |
• | Being selective and operating in markets where brand is meaningful, the value proposition is definable and sustainable through innovation and global cost leadership is achievable; |
• | Pursuing acquisitive growth on multiple fronts through opportunistically consolidating the tool industry and expanding the Industrial platform in Engineered Fastening and Infrastructure. |
• | The Tools & Storage business is the tool company to own with its strong brands, proven innovation machine, global scale, and broad offering of power and hand tools across many channels in both developed and developing markets. |
• | The Engineered Fastening business is a highly profitable, GDP+ growth business offering high value-added innovative solutions with recurring revenue attributes and global scale. |
• | The Convergent Security Solutions ("CSS") business, with its value-add vertical market offerings and attractive recurring revenue, presents a significant margin accretion opportunity over the longer term. The Security business, |
• | 4-6% organic revenue growth, with total revenue growth enhanced by acquisitions; |
• | 50-75 basis points of operating margin rate improvement to approximately 16% by 2018; |
• | 10-12% earnings per share growth (including acquisitions), 7-9% organic growth; |
• | Cash flow return on investment ("CFROI") expansion to 14-15%; and |
• | Progress towards 10+ working capital turns. |
• | Core SFS, which targets asset efficiency, remains as the foundation for the Company's operating system and despite the significant advances made in improving working capital turns and free cash generation, opportunities still remain for further working capital improvements and supply chain efficiency to enhance the Company's already strong asset efficiency performance. |
• | 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 80 or so acquisitions are not as efficient as they can be, based on external benchmarks. This presents the Company with an opportunity to reduce its SG&A as a percent of sales and becomes a cost effectiveness enabler with the side benefit of providing the funding mechanism for the following other aspects of SFS 2.0, which together act as enablers for outsized organic growth and margin expansion. |
• | Digital Excellence uses the power of digital to be disruptive and more effective and far reaching through the Company's products, solutions and analytics. Digital Excellence means leveraging the power of emerging technologies across the Company's businesses to connected devices, the Internet of Things, and big data, as well as social and mobile, even more than what is being done today. Digital will touch 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 |
• | 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 breakthrough innovation culture to identify market disruptive technologies. Although the Company has a track record of being highly innovative, opportunities exist to be even more innovative. The Company's breakthrough innovation focus is on coming up with the next major breakthrough 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. |
• | $29 million reducing Gross profit primarily pertaining to integration-related matters and amortization of the inventory step-up adjustment for the Infastech acquisition; |
• | $136 million in Selling, general & administrative expenses primarily for integration-related administrative costs and consulting fees, as well as employee related matters; |
• | $30 million in Other-net primarily related to deal transaction costs; |
• | $21 million pre-tax loss on the extinguishment of $300 million of debt in the fourth quarter of 2013; and |
• | $174 million in net Restructuring charges, which primarily represent Niscayah integration-related restructuring charges and cost reduction actions associated with the severance of employees. |
(Millions of Dollars) | 2015 | 2014 | 2013 | ||||||||
Net sales | $ | 7,141 | $ | 7,033 | $ | 6,705 | |||||
Segment profit | $ | 1,170 | $ | 1,074 | $ | 952 | |||||
% of Net sales | 16.4 | % | 15.3 | % | 14.2 | % |
(Millions of Dollars) | 2015 | 2014 | 2013 | ||||||||
Net sales | $ | 2,093 | $ | 2,261 | $ | 2,296 | |||||
Segment profit | $ | 240 | $ | 259 | $ | 235 | |||||
% of Net sales | 11.4 | % | 11.5 | % | 10.2 | % |
(Millions of Dollars) | 2015 | 2014 | 2013 | ||||||||
Net sales | $ | 1,938 | $ | 2,044 | $ | 1,889 | |||||
Segment profit | $ | 340 | $ | 351 | $ | 280 | |||||
% of Net sales | 17.5 | % | 17.1 | % | 14.8 | % |
1/3/2015 | Net Additions | Usage | Currency | 1/2/2016 | |||||||||||||||
Severance and related costs | $ | 81.2 | $ | 32.7 | $ | (66.5 | ) | $ | (3.1 | ) | $ | 44.3 | |||||||
Facility closures and asset impairments | 16.4 | 14.9 | (16.6 | ) | (0.3 | ) | 14.4 | ||||||||||||
Total | $ | 97.6 | $ | 47.6 | $ | (83.1 | ) | $ | (3.4 | ) | $ | 58.7 |
(Millions of Dollars) | 2015 | 2014 | 2013 | ||||||||
Net cash provided by operating activities | $ | 1,182 | $ | 1,296 | $ | 868 | |||||
Less: capital expenditures | (311 | ) | (291 | ) | (340 | ) | |||||
Free cash flow | $ | 871 | $ | 1,005 | $ | 528 |
Payments Due by Period | |||||||||||||||||||
(Millions of Dollars) | Total | 2016 | 2017 – 2018 | 2019 – 2020 | Thereafter | ||||||||||||||
Long-term debt (a) | $ | 3,851 | $ | 5 | $ | 985 | $ | 6 | $ | 2,855 | |||||||||
Interest payments on long-term debt (b) | 3,395 | 156 | 311 | 266 | 2,662 | ||||||||||||||
Operating leases | 251 | 73 | 98 | 51 | 29 | ||||||||||||||
Inventory purchase commitments (c) | 274 | 274 | — | — | — | ||||||||||||||
Deferred compensation | 25 | 1 | 2 | 2 | 20 | ||||||||||||||
Marketing obligations | 69 | 27 | 35 | 7 | — | ||||||||||||||
Derivatives (d) | 37 | — | 37 | — | — | ||||||||||||||
Forward stock purchase contracts (e) | 500 | 150 | 350 | — | — | ||||||||||||||
Pension funding obligations (f) | 52 | 52 | — | — | — | ||||||||||||||
Contract adjustment fees (g) | 14 | 14 | — | — | — | ||||||||||||||
Total contractual cash obligations | $ | 8,468 | $ | 752 | $ | 1,818 | $ | 332 | $ | 5,566 |
(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 January 2, 2016. |
(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 January 2, 2016. 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 October 2014 and March 2015, the Company entered into forward share purchase contracts which obligate the Company to pay $150.0 million and $350.0 million, respectively, plus additional amounts related to the forward component of the contracts to the respective financial institution counterparties not later than October 2016 or March 2017, respectively, 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 2016 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 Equity Purchase Contracts. See Note H, Long-Term Debt and Financing Arrangements for further discussion. |
Amount of Commitment Expirations Per Period | ||||||||||||||||||||
(Millions of Dollars) | Total | 2016 | 2017-2018 | 2019-2020 | Thereafter | |||||||||||||||
U.S. lines of credit | $ | 1,750 | $ | — | $ | — | $ | 1,750 | $ | — |
Name and Age | Office | Date Elected to Office | ||
John F. Lundgren (64) | Chairman and Chief Executive Officer. Has served as Chief Executive Officer since March 1, 2004 and Chairman from March 1, 2004 through March 12, 2010 and again from March 13, 2013 to present. Served as President and Chief Executive Officer from March 12, 2010 through January 13, 2013. | 3/1/2004 | ||
James M. Loree (57) | President & Chief Operating Officer since January 2013. Executive Vice President and Chief Operating Officer (2007); Executive Vice President Finance and Chief Financial Officer (1999). | 7/19/1999 | ||
Donald Allan, Jr. (51) | Senior Vice President & Chief Financial Officer since March 2010. Vice President & Chief Financial Officer (2009); Vice President & Corporate Controller (2002); Corporate Controller (2000); Assistant Controller (1999). | 10/24/2006 | ||
Jeffery D. Ansell (48) | Senior Vice President and Group Executive, Global Tools & Storage since January 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 | ||
Michael A. Bartone (56) | Vice President, Corporate Tax since January 2002. | 7/17/2009 | ||
Bruce H. Beatt (63) | Senior Vice President, General Counsel and Secretary since March 2010. Vice President, General Counsel and Secretary (2000). | 10/9/2000 | ||
James J. Cannon (45) | Senior Vice President & Group Executive, Stanley Security North America & Emerging Markets since October 2014. President, Stanley Oil & Gas (2012); President, IAR Europe & LAG (2011); President, IAR North America (2010); President, IAS (2009); President & General Manager, Stanley Engineered Storage Solutions (2007); General Manager, Stanley-Vidmar Storage Technologies (2005). | 7/23/2014 | ||
Craig A. Douglas (61) | Vice President & Treasurer since January 2002. | 7/17/2009 | ||
Rhonda O. Gass (52) | Vice President & Chief Information Officer since October 2012. | 10/11/2012 | ||
Lee B. McChesney (44) | President, Industrial Verticals - Global Tools & Storage since January 2016 and Chief Financial Officer, Global Tools & Storage since January 2015. Chief Financial Officer-CDIY (2010); Chief Financial Officer, MAS and Regional Executive, Stanley Security Solutions Asia (2009); Chief Financial Officer, Stanley Mechanical Access Solutions (2007); Chief Financial Officer, Stanley Security Solutions (2006). | 7/23/2014 | ||
Jaime Ramirez (48) | 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 | ||
Ben S. Sihota (57) | President, Emerging Markets Group since March 2010. Vice President and President-Asia/Pacific, Power Tools & Accessories, The Black & Decker Corporation (2006); President-Asia, Power Tools & Accessories, The Black & Decker Corporation (2000). | 3/12/2010 | ||
Steven J. Stafstrom (57) | Vice President, Operations-Global Tools & Storage since January 2015. Vice President, Operations, CDIY & Emerging Markets (2012). Vice President Global Operations, CDIY (2010); Vice President, Operations, Consumer Tools & Storage (2005). | 12/6/2012 | ||
William S. Taylor (60) | President, Power Tools - Global Tools and Storage since January 2015. President, Fastening & Accessories (2012). President, Professional Power Tools & Products (2010); Vice President-Global Product Development of the Industrial Products Group, The Black & Decker Corporation (2009); Vice President-Industrial Products Group Product Development, The Black & Decker Corporation (2008); Vice President/General Manager Industrial Accessories Business, The Black & Decker Corporation (2008); Vice President and General Manager Woodworking Tools, The Black & Decker Corporation (2005). | 3/12/2010 | ||
Joseph Voelker (60) | Senior Vice President, Human Resources, 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 (57) | 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 | 8,047,463 | (1) | $ | 77.36 | (2) | 10,098,668 | (3) | ||||||
Equity compensation plans not approved by security holders (4) | — | — | — | ||||||||||
Total | 8,047,463 | $ | 77.36 | 10,098,668 |
(1) | Consists of 6,042,839 shares underlying outstanding stock options (whether vested or unvested) with a weighted average exercise price of $77.36 and a weighted average term of 6.81 years; 1,929,210 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 75,414 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 2,104,326 of shares available for purchase under the employee stock purchase plan ("ESPP") at the election of employees and 7,994,342 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 January 2, 2016 is not determinable, since the plans do not authorize a maximum number of securities. |
STANLEY BLACK & DECKER, INC. | ||
By: | /s/ John F. Lundgren | |
John F. Lundgren, Chairman and Chief Executive Officer | ||
Date: | February 19, 2016 |
Signature | Title | Date | |||
/s/ John F. Lundgren | Chairman and Chief Executive Officer | February 19, 2016 | |||
John F. Lundgren | |||||
/s/ Donald Allan, Jr. | Senior Vice President and Chief Financial Officer | February 19, 2016 | |||
Donald Allan, Jr. | |||||
/s/ Jocelyn S. Belisle | Chief Accounting Officer | February 19, 2016 | |||
Jocelyn S. Belisle | |||||
* | Director | February 19, 2016 | |||
Andrea J. Ayers | |||||
* | Director | February 19, 2016 | |||
George W. Buckley | |||||
* | Director | February 19, 2016 | |||
Patrick D. Campbell | |||||
* | Director | February 19, 2016 | |||
Carlos M. Cardoso | |||||
* | Director | February 19, 2016 | |||
Robert B. Coutts | |||||
* | Director | February 19, 2016 | |||
Debra A. Crew | |||||
* | Director | February 19, 2016 | |||
Benjamin H. Griswold, IV | |||||
* | Director | February 19, 2016 | |||
Anthony Luiso | |||||
* | Director | February 19, 2016 | |||
Marianne M. Parrs | |||||
* | Director | February 19, 2016 | |||
Robert L. Ryan |
*By: /s/ Bruce H. Beatt |
Bruce H. Beatt (As Attorney-in-Fact) |
Schedule II — Valuation and Qualifying Accounts is included in Item 15 (page 48). |
Management’s Report on Internal Control Over Financial Reporting (page 49). |
Report of Independent Registered Public Accounting Firm — Financial Statement Opinion (page 50). |
Report of Independent Registered Public Accounting Firm — Internal Control Opinion (page 51). |
Consolidated Statements of Operations — fiscal years ended January 2, 2016, January 3, 2015, and December 28, 2013 (page 52). |
Consolidated Statements of Comprehensive Income (Loss) — fiscal years ended January 2, 2016, January 3, 2015, and December 28, 2013 (page 53). |
Consolidated Balance Sheets — January 2, 2016 and January 3, 2015 (page 54). |
Consolidated Statements of Cash Flows — fiscal years ended January 2, 2016, January 3, 2015, and December 28, 2013 (page 55). |
Consolidated Statements of Changes in Shareowners’ Equity — fiscal years ended January 2, 2016, January 3, 2015, and December 28, 2013 (page 56). |
Notes to Consolidated Financial Statements (page 57). |
Selected Quarterly Financial Data (Unaudited) (page 101). |
Consent of Independent Registered Public Accounting Firm (Exhibit 23). |
ADDITIONS | |||||||||||||||||||
Beginning Balance | Charged To Costs And Expenses | Charged To Other Accounts (b) | (a) Deductions | Ending Balance | |||||||||||||||
Allowance for Doubtful Accounts: | |||||||||||||||||||
Year Ended 2015 | $ | 60.7 | $ | 27.3 | $ | 0.7 | $ | (15.8 | ) | $ | 72.9 | ||||||||
Year Ended 2014 | $ | 64.4 | $ | 20.9 | $ | (8.3 | ) | $ | (16.3 | ) | $ | 60.7 | |||||||
Year Ended 2013 | $ | 58.7 | $ | 14.2 | $ | 5.2 | $ | (13.7 | ) | $ | 64.4 | ||||||||
Tax Valuation Allowance: | |||||||||||||||||||
Year Ended 2015 (c) | $ | 551.9 | $ | 30.5 | $ | 1.7 | $ | (103.4 | ) | $ | 480.7 | ||||||||
Year Ended 2014 | $ | 549.7 | $ | 90.0 | $ | (16.3 | ) | $ | (71.5 | ) | $ | 551.9 | |||||||
Year Ended 2013 | $ | 545.2 | $ | 3.8 | $ | 14.6 | $ | (13.9 | ) | $ | 549.7 |
(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/ John F. Lundgren | |
John F. Lundgren, Chairman and Chief Executive Officer |
/s/ Donald Allan Jr. | |
Donald Allan Jr., Senior Vice President and Chief Financial Officer |
2015 | 2014 | 2013 | |||||||||
Net Sales | $ | 11,171.8 | $ | 11,338.6 | $ | 10,889.5 | |||||
Costs and Expenses | |||||||||||
Cost of sales | $ | 7,099.8 | $ | 7,235.9 | $ | 6,985.8 | |||||
Selling, general and administrative | 2,459.1 | 2,575.0 | 2,676.4 | ||||||||
Provision for doubtful accounts | 27.3 | 20.9 | 14.2 | ||||||||
Other-net | 222.0 | 239.7 | 283.9 | ||||||||
Restructuring charges and asset impairments | 47.6 | 18.8 | 173.7 | ||||||||
(Gain) loss on debt extinguishment | — | (0.1 | ) | 20.6 | |||||||
Interest income | (15.2 | ) | (13.6 | ) | (12.8 | ) | |||||
Interest expense | 180.4 | 177.2 | 160.1 | ||||||||
$ | 10,021.0 | $ | 10,253.8 | $ | 10,301.9 | ||||||
Earnings from continuing operations before income taxes | 1,150.8 | 1,084.8 | 587.6 | ||||||||
Income taxes on continuing operations | 248.6 | 227.1 | 68.6 | ||||||||
Earnings from continuing operations | $ | 902.2 | $ | 857.7 | $ | 519.0 | |||||
Less: Net (loss) earnings attributable to non-controlling interests | (1.6 | ) | 0.5 | (1.0 | ) | ||||||
Net earnings from continuing operations attributable to common shareowners | $ | 903.8 | $ | 857.2 | $ | 520.0 | |||||
Loss from discontinued operations before income taxes | (19.3 | ) | (104.0 | ) | (43.0 | ) | |||||
Income tax expense (benefit) on discontinued operations | 0.8 | (7.7 | ) | (13.3 | ) | ||||||
Net loss from discontinued operations | $ | (20.1 | ) | $ | (96.3 | ) | $ | (29.7 | ) | ||
Net Earnings Attributable to Common Shareowners | $ | 883.7 | $ | 760.9 | $ | 490.3 | |||||
Basic earnings (loss) per share of common stock: | |||||||||||
Continuing operations | $ | 6.10 | $ | 5.49 | $ | 3.35 | |||||
Discontinued operations | (0.14 | ) | (0.62 | ) | (0.19 | ) | |||||
Total basic earnings per share of common stock | $ | 5.96 | $ | 4.87 | $ | 3.16 | |||||
Diluted earnings (loss) per share of common stock: | |||||||||||
Continuing operations | $ | 5.92 | $ | 5.37 | $ | 3.28 | |||||
Discontinued operations | (0.13 | ) | (0.60 | ) | (0.19 | ) | |||||
Total diluted earnings per share of common stock | $ | 5.79 | $ | 4.76 | $ | 3.09 |
2015 | 2014 | 2013 | |||||||||
Net earnings | $ | 883.7 | $ | 760.9 | $ | 490.3 | |||||
Other comprehensive loss: | |||||||||||
Currency translation adjustment and other | (504.1 | ) | (726.3 | ) | (99.9 | ) | |||||
Unrealized (losses) gains on cash flow hedges, net of tax | (1.2 | ) | 26.4 | 16.2 | |||||||
Unrealized gains (losses) on net investment hedges, net of tax | 49.0 | 39.6 | (13.5 | ) | |||||||
Pension gains (losses), net of tax | 32.3 | (110.9 | ) | (13.8 | ) | ||||||
Other comprehensive loss | $ | (424.0 | ) | $ | (771.2 | ) | $ | (111.0 | ) | ||
Comprehensive income (loss) attributable to common shareowners | $ | 459.7 | $ | (10.3 | ) | $ | 379.3 |
2015 | 2014 | ||||||
Assets | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 465.4 | $ | 496.6 | |||
Accounts and notes receivable, net | 1,331.8 | 1,396.7 | |||||
Inventories, net | 1,526.4 | 1,562.7 | |||||
Prepaid expenses | 177.4 | 180.5 | |||||
Assets held for sale | — | 29.5 | |||||
Other current assets | 161.1 | 282.8 | |||||
Total Current Assets | 3,662.1 | 3,948.8 | |||||
Property, Plant and Equipment, net | 1,450.2 | 1,454.1 | |||||
Goodwill | 7,084.3 | 7,275.5 | |||||
Customer Relationships, net | 778.7 | 938.9 | |||||
Trade Names, net | 1,641.8 | 1,668.6 | |||||
Other Intangible Assets, net | 121.0 | 144.2 | |||||
Other Assets | 434.2 | 419.0 | |||||
Total Assets | $ | 15,172.3 | $ | 15,849.1 | |||
Liabilities and Shareowners’ Equity | |||||||
Current Liabilities | |||||||
Short-term borrowings | $ | 2.5 | $ | 1.6 | |||
Current maturities of long-term debt | 5.1 | 5.9 | |||||
Accounts payable | 1,533.1 | 1,579.2 | |||||
Accrued expenses | 1,261.9 | 1,221.9 | |||||
Liabilities held for sale | — | 23.4 | |||||
Total Current Liabilities | 2,802.6 | 2,832.0 | |||||
Long-Term Debt | 3,836.6 | 3,839.8 | |||||
Deferred Taxes | 825.9 | 992.7 | |||||
Post-retirement Benefits | 669.4 | 749.9 | |||||
Other Liabilities | 1,178.6 | 922.8 | |||||
Commitments and Contingencies (Notes R and S) | — | — | |||||
Shareowners’ Equity | |||||||
Stanley Black & Decker, Inc. Shareowners’ Equity | |||||||
Preferred stock, without par value: Authorized and unissued 10,000,000 shares | — | — | |||||
Common stock, par value $2.50 per share: Authorized 300,000,000 shares in 2015 and 2014 Issued 176,902,738 shares in 2015 and 2014 | 442.3 | 442.3 | |||||
Retained earnings | 4,491.7 | 3,926.3 | |||||
Additional paid in capital | 4,421.7 | 4,727.1 | |||||
Accumulated other comprehensive loss | (1,694.2 | ) | (1,270.2 | ) | |||
ESOP | (34.9 | ) | (43.6 | ) | |||
7,626.6 | 7,781.9 | ||||||
Less: common stock in treasury (22,958,447 shares in 2015 and 19,777,288 shares in 2014) | (1,815.0 | ) | (1,352.8 | ) | |||
Stanley Black & Decker, Inc. Shareowners’ Equity | 5,811.6 | 6,429.1 | |||||
Non-controlling interests | 47.6 | 82.8 | |||||
Total Shareowners’ Equity | 5,859.2 | 6,511.9 | |||||
Total Liabilities and Shareowners’ Equity | $ | 15,172.3 | $ | 15,849.1 |
2015 | 2014 | 2013 | |||||||||
Operating Activities: | |||||||||||
Net earnings attributable to common shareowners | $ | 883.7 | $ | 760.9 | $ | 490.3 | |||||
Adjustments to reconcile net earnings to cash provided by operating activities: | |||||||||||
Depreciation and amortization of property, plant and equipment | 256.9 | 263.4 | 238.0 | ||||||||
Amortization of intangibles | 157.1 | 186.4 | 203.3 | ||||||||
Pretax (gain) loss on debt extinguishment | — | (0.1 | ) | 20.6 | |||||||
Asset impairments | 9.8 | 63.1 | 40.9 | ||||||||
Stock-based compensation expense | 67.9 | 57.1 | 66.4 | ||||||||
Provision for doubtful accounts | 29.5 | 22.1 | 13.7 | ||||||||
Deferred tax (benefit) expense | (1.3 | ) | 42.4 | (135.7 | ) | ||||||
Other non-cash items | 18.8 | 12.4 | — | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (41.3 | ) | 81.6 | 11.3 | |||||||
Inventories | (54.7 | ) | (175.9 | ) | (101.9 | ) | |||||
Accounts payable | (9.7 | ) | 71.7 | 105.0 | |||||||
Deferred revenue | 7.7 | 12.8 | (1.1 | ) | |||||||
Other current assets | 19.8 | 25.8 | 13.5 | ||||||||
Long-term receivables | (12.6 | ) | (13.2 | ) | (11.8 | ) | |||||
Other long-term assets | (11.5 | ) | 39.2 | 29.1 | |||||||
Accrued expenses | (59.0 | ) | 59.7 | (156.0 | ) | ||||||
Defined benefit liabilities | (65.8 | ) | (155.0 | ) | (110.2 | ) | |||||
Other long-term liabilities | (13.0 | ) | (58.5 | ) | 152.6 | ||||||
Net cash provided by operating activities | 1,182.3 | 1,295.9 | 868.0 | ||||||||
Investing Activities: | |||||||||||
Capital expenditures | (311.4 | ) | (291.0 | ) | (340.3 | ) | |||||
Proceeds from sales of assets | 29.1 | 15.4 | 4.0 | ||||||||
Business acquisitions, net of cash acquired | (17.6 | ) | (3.2 | ) | (933.9 | ) | |||||
(Payments) proceeds from sales of businesses, net of cash sold | — | (3.9 | ) | 93.5 | |||||||
Proceeds (payments) for net investment hedge settlements | 137.7 | (61.4 | ) | 3.6 | |||||||
Other | (42.8 | ) | (38.1 | ) | (25.3 | ) | |||||
Net cash used in investing activities | (205.0 | ) | (382.2 | ) | (1,198.4 | ) | |||||
Financing Activities: | |||||||||||
Payments on long-term debt | (16.1 | ) | (46.6 | ) | (302.2 | ) | |||||
Proceeds from debt issuance | — | — | 726.7 | ||||||||
Net short-term borrowings (repayments) | 1.2 | (391.0 | ) | 388.7 | |||||||
Stock purchase contract fees | (17.0 | ) | (16.4 | ) | (3.2 | ) | |||||
Purchase of common stock for treasury | (649.8 | ) | (28.2 | ) | (39.2 | ) | |||||
Proceeds from issuance of preferred stock | 632.5 | — | — | ||||||||
Redemption of preferred stock for treasury | (632.5 | ) | — | — | |||||||
Cash settlement on forward stock purchase contract | — | — | 18.8 | ||||||||
Payment on forward share purchase contract | — | — | (350.0 | ) | |||||||
Net premium paid on equity option | — | — | (83.2 | ) | |||||||
Premium paid on debt extinguishment | — | — | (42.8 | ) | |||||||
Non-controlling interest buyout | (33.5 | ) | — | — | |||||||
Termination of interest rate swaps | — | (33.4 | ) | — | |||||||
Proceeds from issuances of common stock | 163.5 | 71.3 | 154.6 | ||||||||
Cash dividends on common stock | (319.9 | ) | (321.3 | ) | (312.7 | ) | |||||
Other | (4.0 | ) | (0.6 | ) | — | ||||||
Net cash (used in) provided by financing activities | (875.6 | ) | (766.2 | ) | 155.5 | ||||||
Effect of exchange rate changes on cash | (132.9 | ) | (147.1 | ) | (44.9 | ) | |||||
(Decrease) increase in cash and cash equivalents | (31.2 | ) | 0.4 | (219.8 | ) | ||||||
Cash and cash equivalents, beginning of year | 496.6 | 496.2 | 716.0 | ||||||||
Cash and cash equivalents, end of year | $ | 465.4 | $ | 496.6 | $ | 496.2 |
Preferred Stock | Common Stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | ESOP | Treasury Stock | Non- Controlling Interests | Shareowners’ Equity | |||||||||||||||||||||||||||
Balance December 29, 2012 | $ | — | $ | 442.3 | $ | 4,473.5 | $ | 3,299.5 | $ | (388.0 | ) | $ | (62.8 | ) | $ | (1,097.4 | ) | $ | 60.0 | $ | 6,727.1 | ||||||||||||||
Net earnings | 490.3 | (1.0 | ) | 489.3 | |||||||||||||||||||||||||||||||
Other comprehensive loss | (111.0 | ) | (111.0 | ) | |||||||||||||||||||||||||||||||
Cash dividends declared — $1.98 per share | (307.1 | ) | (307.1 | ) | |||||||||||||||||||||||||||||||
Issuance of common stock | (115.6 | ) | 250.1 | 134.5 | |||||||||||||||||||||||||||||||
Settlement of forward share repurchase contract | 350.0 | (350.0 | ) | — | |||||||||||||||||||||||||||||||
Equity units — non-cash stock contract fees | (40.2 | ) | (40.2 | ) | |||||||||||||||||||||||||||||||
Equity units — offering fees | (9.2 | ) | (9.2 | ) | |||||||||||||||||||||||||||||||
Net premium paid on equity option | (83.2 | ) | (83.2 | ) | |||||||||||||||||||||||||||||||
Repurchase of common stock (2,225,732 shares) | 217.9 | (257.1 | ) | (39.2 | ) | ||||||||||||||||||||||||||||||
Non-controlling interest buyout | (1.1 | ) | (15.2 | ) | (16.3 | ) | |||||||||||||||||||||||||||||
Non-controlling interests of acquired businesses | 37.5 | 37.5 | |||||||||||||||||||||||||||||||||
Stock-based compensation related | 66.4 | 66.4 | |||||||||||||||||||||||||||||||||
Tax benefit related to stock options exercised | 20.1 | 20.1 | |||||||||||||||||||||||||||||||||
ESOP and related tax benefit | 2.2 | 9.6 | 11.8 | ||||||||||||||||||||||||||||||||
Balance December 28, 2013 | $ | — | $ | 442.3 | $ | 4,878.6 | $ | 3,484.9 | $ | (499.0 | ) | $ | (53.2 | ) | $ | (1,454.4 | ) | $ | 81.3 | $ | 6,880.5 | ||||||||||||||
Net earnings | 760.9 | 0.5 | 761.4 | ||||||||||||||||||||||||||||||||
Other comprehensive loss | (771.2 | ) | (771.2 | ) | |||||||||||||||||||||||||||||||
Cash dividends declared — $2.04 per share | (321.3 | ) | (321.3 | ) | |||||||||||||||||||||||||||||||
Issuance of common stock | (69.4 | ) | 129.8 | 60.4 | |||||||||||||||||||||||||||||||
Forward obligation to purchase treasury shares | (150.0 | ) | (150.0 | ) | |||||||||||||||||||||||||||||||
Repurchase of common stock (340,576 shares) | (28.2 | ) | (28.2 | ) | |||||||||||||||||||||||||||||||
Non-controlling interest buyout | (0.6 | ) | (0.6 | ) | |||||||||||||||||||||||||||||||
Non-controlling interests of acquired businesses | 1.6 | 1.6 | |||||||||||||||||||||||||||||||||
Stock-based compensation related | 57.1 | 57.1 | |||||||||||||||||||||||||||||||||
Tax benefit related to stock options exercised | 10.8 | 10.8 | |||||||||||||||||||||||||||||||||
ESOP and related tax benefit | 1.8 | 9.6 | 11.4 | ||||||||||||||||||||||||||||||||
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 |
Useful Life (Years) | ||
Land improvements | 10 —20 | |
Buildings | 40 | |
Machinery and equipment | 3 — 15 | |
Computer software | 3 — 5 |
(Millions of Dollars) | 2015 | 2014 | |||||
Trade accounts receivable | $ | 1,165.0 | $ | 1,204.6 | |||
Trade notes receivable | 130.6 | 136.4 | |||||
Other accounts receivable | 109.1 | 116.4 | |||||
Gross accounts and notes receivable | 1,404.7 | 1,457.4 | |||||
Allowance for doubtful accounts | (72.9 | ) | (60.7 | ) | |||
Accounts and notes receivable, net | $ | 1,331.8 | $ | 1,396.7 | |||
Long-term trade notes receivable, net | $ | 182.1 | $ | 169.5 |
(Millions of Dollars) | 2015 | 2014 | |||||
Finished products | $ | 1,085.0 | $ | 1,105.0 | |||
Work in process | 136.1 | 141.4 | |||||
Raw materials | 305.3 | 316.3 | |||||
Total | $ | 1,526.4 | $ | 1,562.7 |
(Millions of Dollars) | 2015 | 2014 | |||||
Land | $ | 129.2 | $ | 136.3 | |||
Land improvements | 36.0 | 34.9 | |||||
Buildings | 525.3 | 542.8 | |||||
Leasehold improvements | 98.9 | 89.8 | |||||
Machinery and equipment | 1,979.9 | 1,895.9 | |||||
Computer software | 397.5 | 381.0 | |||||
Property, plant & equipment, gross | $ | 3,166.8 | $ | 3,080.7 | |||
Less: accumulated depreciation and amortization | (1,716.6 | ) | (1,626.6 | ) | |||
Property, plant & equipment, net | $ | 1,450.2 | $ | 1,454.1 |
(Millions of Dollars) | 2015 | 2014 | 2013 | ||||||||
Depreciation | $ | 219.2 | $ | 229.5 | $ | 208.7 | |||||
Amortization | 37.7 | 33.9 | 29.3 | ||||||||
Depreciation and amortization expense | $ | 256.9 | $ | 263.4 | $ | 238.0 |
(Millions of Dollars) | |||
Cash and cash equivalents | $ | 82.0 | |
Accounts and notes receivable, net | 117.3 | ||
Inventories, net | 86.7 | ||
Prepaid expenses and other current assets | 5.3 | ||
Property, plant and equipment, net | 46.0 | ||
Trade names | 22.0 | ||
Customer relationships | 251.0 | ||
Technology | 28.0 | ||
Other assets | 3.4 | ||
Accounts payable | (99.0 | ) | |
Accrued expenses | (52.6 | ) | |
Deferred taxes | (68.6 | ) | |
Other liabilities | (42.8 | ) | |
Total identifiable net assets | $ | 378.7 | |
Goodwill | 529.7 | ||
Total consideration transferred | $ | 908.4 |
(Millions of Dollars, except per share amounts) | Year-to-Date 2013 | ||
Net sales | $ | 11,001.5 | |
Net earnings attributable to common shareowners | 550.9 | ||
Diluted earnings per share-continuing operations | 3.47 |
• | 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 December 31, 2012 to December 28, 2013. |
• | Because the 2013 acquisitions were assumed to occur on January 2, 2012, there were no deal costs or inventory step-up amortization factored into the 2013 pro-forma year, as such expenses would have occurred in the first year following the acquisition. |
(Millions of Dollars) | Tools & Storage | Security | Industrial | Total | |||||||||||
Balance January 3, 2015 | $ | 3,445.7 | $ | 2,398.0 | $ | 1,431.8 | $ | 7,275.5 | |||||||
Acquisition adjustments | — | 11.8 | — | 11.8 | |||||||||||
Foreign currency translation and other | (102.3 | ) | (92.6 | ) | (8.1 | ) | (203.0 | ) | |||||||
Balance January 2, 2016 | $ | 3,343.4 | $ | 2,317.2 | $ | 1,423.7 | $ | 7,084.3 |
2015 | 2014 | ||||||||||||||
(Millions of Dollars) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||
Amortized Intangible Assets — Definite lives | |||||||||||||||
Patents and copyrights | $ | 50.6 | $ | (44.2 | ) | $ | 52.8 | $ | (43.9 | ) | |||||
Trade names | 164.8 | (100.8 | ) | 165.7 | (89.6 | ) | |||||||||
Customer relationships | 1,774.2 | (995.5 | ) | 1,832.0 | (893.1 | ) | |||||||||
Other intangible assets | 263.3 | (148.7 | ) | 275.6 | (140.3 | ) | |||||||||
Total | $ | 2,252.9 | $ | (1,289.2 | ) | $ | 2,326.1 | $ | (1,166.9 | ) |
(Millions of Dollars) | 2015 | 2014 | 2013 | ||||||||
Tools & Storage | $ | 39.0 | $ | 40.7 | $ | 47.2 | |||||
Industrial | 56.8 | 66.9 | 65.4 | ||||||||
Security | 61.3 | 78.8 | 90.7 | ||||||||
Consolidated | $ | 157.1 | $ | 186.4 | $ | 203.3 |
(Millions of Dollars) | 2015 | 2014 | |||||
Payroll and related taxes | $ | 271.8 | $ | 282.7 | |||
Income and other taxes | 157.6 | 139.2 | |||||
Customer rebates and sales returns | 66.5 | 71.3 | |||||
Insurance and benefits | 71.8 | 77.2 | |||||
Accrued restructuring costs | 58.7 | 97.6 | |||||
Derivative financial instruments | 49.8 | 95.0 | |||||
Warranty costs | 67.8 | 69.2 | |||||
Deferred revenue | 89.2 | 84.4 | |||||
Forward share purchase contract | 150.0 | — | |||||
Other | 278.7 | 305.3 | |||||
Total | $ | 1,261.9 | $ | 1,221.9 |
(Millions of Dollars) | Interest Rate | 2015 | 2014 | ||||||
Notes payable due 2018* | * | $ | 632.5 | $ | 632.5 | ||||
Notes payable due 2018 (junior subordinated) | 2.25% | 345.0 | 345.0 | ||||||
Notes payable due 2021 | 3.40% | 407.9 | 403.9 | ||||||
Notes payable due 2022 | 2.90% | 753.9 | 753.8 | ||||||
Notes payable due 2028 | 7.05% | 167.0 | 166.0 | ||||||
Notes payable due 2040 | 5.20% | 363.5 | 362.1 | ||||||
Notes payable due 2052 (junior subordinated) | 5.75% | 750.0 | 750.0 | ||||||
Notes payable due 2053 (junior subordinated) | 5.75% | 402.7 | 398.7 | ||||||
Other, payable in varying amounts through 2019 | 0.00% - 2.43% | 19.2 | 33.7 | ||||||
Total long-term debt, including current maturities | $ | 3,841.7 | $ | 3,845.7 | |||||
Less: Current maturities of long-term debt | (5.1 | ) | (5.9 | ) | |||||
Long-term debt | $ | 3,836.6 | $ | 3,839.8 |
(Millions of Dollars) | Balance Sheet Classification | 2015 | 2014 | Balance Sheet Classification | 2015 | 2014 | ||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Interest Rate Contracts Cash Flow | LT other assets | $ | — | $ | — | LT other liabilities | $ | 41.1 | $ | 34.3 | ||||||||||
Interest Rate Contracts Fair Value | Other current assets | 14.9 | 13.2 | Accrued expenses | 2.5 | 1.1 | ||||||||||||||
LT other assets | 1.4 | — | LT other liabilities | 5.2 | 19.1 | |||||||||||||||
Foreign Exchange Contracts Cash Flow | Other current assets | 21.9 | 43.3 | Accrued expenses | 1.8 | 1.7 | ||||||||||||||
LT other assets | 3.7 | — | LT other liabilities | — | — | |||||||||||||||
Net Investment Hedge | Other current assets | 30.3 | 75.4 | Accrued expenses | 4.8 | 0.1 | ||||||||||||||
$ | 72.2 | $ | 131.9 | $ | 55.4 | $ | 56.3 | |||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Foreign Exchange Contracts | Other current assets | $ | 7.1 | $ | 12.3 | Accrued expenses | $ | 40.7 | $ | 92.1 | ||||||||||
$ | 7.1 | $ | 12.3 | $ | 40.7 | $ | 92.1 |
Year-to-date 2015 | (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 2014 | (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 | $ | (34.3 | ) | Interest Expense | $ | — | $ | — | ||||||
Foreign Exchange Contracts | $ | 40.6 | Cost of sales | $ | 0.2 | $ | — |
Year-to-Date 2015 | Year-to-Date 2014 | ||||||||||||||
Income Statement Classification | Gain/(Loss) on Swaps* | Gain /(Loss) on Borrowings | Gain/(Loss) on Swaps* | Gain /(Loss) on Borrowings | |||||||||||
Interest Expense | $ | 11.8 | $ | (11.8 | ) | $ | 123.5 | $ | (123.9 | ) |
Year-to-Date 2015 | Year-to-Date 2014 | ||||||||||||||||||||||
Income Statement Classification | 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 | $ | 75.5 | $ | — | $ | — | $ | 64.0 | $ | — | $ | — |
Derivatives Not Designated as Hedging Instruments under ASC 815 | Income Statement Classification | Year-to-Date 2015 Amount of Gain (Loss) Recorded in Income on Derivative | Year-to-Date 2014 Amount of Gain (Loss) Recorded in Income on Derivative | ||||||
Foreign Exchange Contracts | Other-net | $ | (8.9 | ) | $ | (75.1 | ) |
2015 | 2014 | 2013 | |||||||||
Numerator (in millions): | |||||||||||
Net earnings from continuing operations attributable to common shareowners | $ | 903.8 | $ | 857.2 | $ | 520.0 | |||||
Net loss from discontinued operations | (20.1 | ) | (96.3 | ) | (29.7 | ) | |||||
Net earnings attributable to common shareowners | $ | 883.7 | $ | 760.9 | $ | 490.3 | |||||
Less: Earnings attributable to participating restricted stock units (“RSU’s”) | — | — | 0.2 | ||||||||
Net Earnings — basic | $ | 883.7 | $ | 760.9 | $ | 490.1 | |||||
Net Earnings — diluted | $ | 883.7 | $ | 760.9 | $ | 490.3 |
2015 | 2014 | 2013 | ||||||
Denominator (in thousands): | ||||||||
Basic earnings per share –– weighted-average shares | 148,234 | 156,090 | 155,237 | |||||
Dilutive effect of stock options and awards | 4,472 | 3,647 | 3,539 | |||||
Diluted earnings per share –– weighted-average shares | 152,706 | 159,737 | 158,776 |
2015 | 2014 | 2013 | |||||||||
Earnings (loss) per share of common stock: | |||||||||||
Basic earnings (loss) per share of common stock: | |||||||||||
Continuing operations | $ | 6.10 | $ | 5.49 | $ | 3.35 | |||||
Discontinued operations | (0.14 | ) | (0.62 | ) | (0.19 | ) | |||||
Total basic earnings per share of common stock | $ | 5.96 | $ | 4.87 | $ | 3.16 | |||||
Diluted earnings (loss) per share of common stock: | |||||||||||
Continuing operations | $ | 5.92 | $ | 5.37 | $ | 3.28 | |||||
Discontinued operations | (0.13 | ) | (0.60 | ) | (0.19 | ) | |||||
Total dilutive earnings per share of common stock | $ | 5.79 | $ | 4.76 | $ | 3.09 |
2015 | 2014 | 2013 | ||||||
Number of stock options | 646 | 634 | 307 |
2015 | 2014 | 2013 | ||||||
Outstanding, beginning of year | 157,125,450 | 155,479,230 | 159,952,027 | |||||
Issued from treasury | 6,046,405 | 1,986,796 | 3,828,056 | |||||
Returned to treasury | (9,227,564 | ) | (340,576 | ) | (8,300,853 | ) | ||
Outstanding, end of year | 153,944,291 | 157,125,450 | 155,479,230 | |||||
Shares subject to the forward share purchase contract | (5,249,332 | ) | (1,603,822 | ) | — | |||
Outstanding, less shares subject to the forward share purchase contract | 148,694,959 | 155,521,628 | 155,479,230 |
2015 | 2014 | ||||
Employee stock purchase plan | 2,104,326 | 2,286,365 | |||
Other stock-based compensation plans | 7,994,342 | 10,164,264 | |||
Total shares reserved | 10,098,668 | 12,450,629 |
2015 | 2014 | 2013 | |||||||||
Average expected volatility | 25.0 | % | 27.0 | % | 35.0 | % | |||||
Dividend yield | 2.0 | % | 2.2 | % | 2.5 | % | |||||
Risk-free interest rate | 1.9 | % | 1.8 | % | 1.6 | % | |||||
Expected term | 5.3 years | 5.3 years | 5.3 years | ||||||||
Fair value per option | $ | 21.94 | $ | 19.98 | $ | 20.70 | |||||
Weighted average vesting period | 2.8 years | 2.8 years | 2.8 years |
2015 | 2014 | 2013 | ||||||||||||||||||
Options | Price | Options | Price | Options | Price | |||||||||||||||
Outstanding, beginning of year | 7,324,081 | $ | 67.01 | 7,429,262 | $ | 61.69 | 9,056,493 | $ | 56.90 | |||||||||||
Granted | 996,250 | 109.23 | 983,750 | 95.18 | 961,250 | 79.72 | ||||||||||||||
Exercised | (2,154,372 | ) | 56.70 | (953,940 | ) | 54.02 | (2,414,697 | ) | 50.75 | |||||||||||
Forfeited | (123,120 | ) | 100.99 | (134,991 | ) | 85.01 | (173,784 | ) | 80.97 | |||||||||||
Outstanding, end of year | 6,042,839 | $ | 77.36 | 7,324,081 | $ | 67.01 | 7,429,262 | $ | 61.69 | |||||||||||
Exercisable, end of year | 3,774,248 | $ | 65.71 | 5,146,400 | $ | 59.81 | 5,310,381 | $ | 57.10 |
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 | 86,247 | 2.94 | $ | 32.95 | 86,247 | 2.94 | $ | 32.95 | |||||||||
$35.01 — 50.00 | 117,305 | 3.74 | 48.75 | 117,305 | 3.74 | 48.75 | |||||||||||
$50.01 — higher | 5,839,287 | 6.93 | 78.59 | 3,570,696 | 5.59 | 67.06 | |||||||||||
6,042,839 | 6.81 | $ | 77.36 | 3,774,248 | 5.47 | $ | 65.71 |
Restricted Share Units & Awards | Weighted Average Grant Date Fair Value | |||||
Non-vested at January 3, 2015 | 1,494,543 | $ | 77.16 | |||
Granted | 349,768 | 107.43 | ||||
Vested | (713,885 | ) | 101.10 | |||
Forfeited | (43,757 | ) | 100.44 | |||
Non-vested at January 2, 2016 | 1,086,669 | $ | 88.19 |
Share Units | Weighted Average Grant Date Fair Value | |||||
Non-vested at January 3, 2015 | 847,973 | $ | 73.76 | |||
Granted | 251,315 | 91.90 | ||||
Vested | (42,771 | ) | 74.86 | |||
Forfeited | (213,976 | ) | 74.86 | |||
Non-vested at January 2, 2016 | 842,541 | $ | 78.83 |
(Millions of Dollars) | Currency translation adjustment and other | Unrealized (losses) gains on cash flow hedges, net of tax | Unrealized (losses) gains on net investment hedges, net of tax | Pension (losses) gains, net of tax | Total | ||||||||||||||
Balance - December 28, 2013 | $ | (70.5 | ) | $ | (77.3 | ) | $ | (76.8 | ) | $ | (274.4 | ) | $ | (499.0 | ) | ||||
Other comprehensive (loss) income before reclassifications | (726.3 | ) | 18.9 | 39.6 | (116.0 | ) | (783.8 | ) | |||||||||||
Reclassification adjustments to earnings | — | 7.5 | — | 5.1 | 12.6 | ||||||||||||||
Net other comprehensive (loss) income | (726.3 | ) | 26.4 | 39.6 | (110.9 | ) | (771.2 | ) | |||||||||||
Balance - January 3, 2015 | (796.8 | ) | (50.9 | ) | (37.2 | ) | (385.3 | ) | (1,270.2 | ) | |||||||||
Other comprehensive (loss) income before reclassifications | (504.1 | ) | 21.2 | 49.0 | 21.3 | (412.6 | ) | ||||||||||||
Reclassification adjustments to earnings | — | (22.4 | ) | — | 11.0 | (11.4 | ) | ||||||||||||
Net other comprehensive (loss) income | (504.1 | ) | (1.2 | ) | 49.0 | 32.3 | (424.0 | ) | |||||||||||
Balance - January 2, 2016 | $ | (1,300.9 | ) | $ | (52.1 | ) | $ | 11.8 | $ | (353.0 | ) | $ | (1,694.2 | ) |
(Millions of Dollars) | 2015 | 2014 | ||||||||
Components of accumulated other comprehensive loss | Reclassification adjustments | Reclassification adjustments | Affected line item in Consolidated Statements of Operations And Comprehensive Income (Loss) | |||||||
Unrealized gain on cash flow hedges | $ | 57.4 | $ | 0.2 | Cost of sales | |||||
Unrealized losses on cash flow hedges | (15.1 | ) | (15.1 | ) | Interest Expense | |||||
Tax effect | (19.9 | ) | 7.4 | Income taxes on continuing operations | ||||||
Unrealized gains (losses) on cash flow hedges, net of tax | $ | 22.4 | $ | (7.5 | ) | |||||
Amortization of defined benefit pension items: | ||||||||||
Actuarial losses and prior service costs / credits | $ | (9.7 | ) | $ | (4.7 | ) | Cost of sales | |||
Actuarial losses and prior service costs / credits | (6.4 | ) | (3.2 | ) | Selling, general and administrative | |||||
Total before taxes | (16.1 | ) | (7.9 | ) | ||||||
Tax effect | 5.1 | 2.8 | Income taxes on continuing operations | |||||||
Amortization of defined benefit pension items, net of tax | $ | (11.0 | ) | $ | (5.1 | ) |
(Millions of Dollars) | 2015 | 2014 | 2013 | ||||||||
Multi-employer plan expense | $ | 4.0 | $ | 4.0 | $ | 3.3 | |||||
Other defined contribution plan expense | $ | 11.7 | $ | 14.0 | $ | 14.6 |
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||
(Millions of Dollars) | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||||||
Service cost | $ | 7.0 | $ | 8.9 | $ | 7.7 | $ | 14.4 | $ | 13.1 | $ | 13.4 | |||||||||||
Interest cost | 54.0 | 56.4 | 52.6 | 46.8 | 59.3 | 54.3 | |||||||||||||||||
Expected return on plan assets | (74.9 | ) | (72.1 | ) | (65.1 | ) | (56.5 | ) | (61.0 | ) | (54.9 | ) | |||||||||||
Prior service cost amortization | 1.8 | 1.1 | 1.1 | 0.9 | 0.3 | 0.4 | |||||||||||||||||
Actuarial loss amortization | 7.2 | 0.9 | 5.7 | 7.5 | 7.0 | 5.1 | |||||||||||||||||
Settlement / curtailment loss | — | — | — | 1.5 | 0.3 | 4.6 | |||||||||||||||||
Net periodic pension (benefit) expense | $ | (4.9 | ) | $ | (4.8 | ) | $ | 2.0 | $ | 14.6 | $ | 19.0 | $ | 22.9 |
Other Benefit Plans | |||||||||||
(Millions of Dollars) | 2015 | 2014 | 2013 | ||||||||
Service cost | $ | 0.5 | $ | 1.0 | $ | 0.8 | |||||
Interest cost | 2.1 | 2.7 | 2.5 | ||||||||
Prior service credit amortization | (1.3 | ) | (1.4 | ) | (1.4 | ) | |||||
Actuarial loss amortization | — | (0.1 | ) | — | |||||||
Net periodic post-retirement benefit expense | $ | 1.3 | $ | 2.2 | $ | 1.9 |
(Millions of Dollars) | 2015 | ||
Current year actuarial loss | $ | 7.5 | |
Amortization of actuarial loss | (14.7 | ) | |
Prior service cost from plan amendments | 6.0 | ||
Amortization of prior service costs | (1.4 | ) | |
Settlement / curtailment loss | (3.0 | ) | |
Currency / other | (16.4 | ) | |
Total income recognized in accumulated other comprehensive loss (pre-tax) | $ | (22.0 | ) |
U.S. Plans | Non-U.S. Plans | Other Benefits | |||||||||||||||||||||
(Millions of Dollars) | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||
Benefit obligation at end of prior year | $ | 1,460.5 | $ | 1,315.9 | $ | 1,540.4 | $ | 1,517.6 | $ | 69.8 | $ | 75.1 | |||||||||||
Service cost | 7.0 | 8.9 | 14.4 | 13.1 | 0.5 | 1.0 | |||||||||||||||||
Interest cost | 54.0 | 56.4 | 46.8 | 59.3 | 2.1 | 2.7 | |||||||||||||||||
Settlements/curtailments | — | — | (8.0 | ) | (7.1 | ) | — | — | |||||||||||||||
Actuarial (gain) loss | (45.8 | ) | 178.3 | (86.7 | ) | 168.6 | (2.1 | ) | 1.7 | ||||||||||||||
Plan amendments | 5.8 | 0.1 | 0.2 | 0.2 | — | — | |||||||||||||||||
Foreign currency exchange rates | — | — | (76.2 | ) | (132.7 | ) | (1.5 | ) | (1.0 | ) | |||||||||||||
Participant contributions | — | — | 0.3 | 0.3 | — | — | |||||||||||||||||
Expenses paid from assets and other | (3.4 | ) | (4.7 | ) | (1.3 | ) | (4.8 | ) | — | — | |||||||||||||
Benefits paid | (92.4 | ) | (94.4 | ) | (55.7 | ) | (74.1 | ) | (7.8 | ) | (9.7 | ) | |||||||||||
Benefit obligation at end of year | $ | 1,385.7 | $ | 1,460.5 | $ | 1,374.2 | $ | 1,540.4 | $ | 61.0 | $ | 69.8 | |||||||||||
Change in plan assets | |||||||||||||||||||||||
Fair value of plan assets at end of prior year | $ | 1,174.1 | $ | 1,052.9 | $ | 1,115.7 | $ | 1,075.9 | — | $ | — | ||||||||||||
Actual return on plan assets | (19.3 | ) | 116.1 | 8.3 | 169.2 | — | — | ||||||||||||||||
Participant contributions | — | — | 0.3 | 0.3 | — | — | |||||||||||||||||
Employer contributions | 22.5 | 104.2 | 35.5 | 41.1 | 7.8 | 9.7 | |||||||||||||||||
Settlements | — | — | (6.4 | ) | (5.2 | ) | — | — | |||||||||||||||
Foreign currency exchange rate changes | — | — | (48.2 | ) | (86.0 | ) | — | — | |||||||||||||||
Expenses paid from assets and other | (3.4 | ) | (4.7 | ) | (2.2 | ) | (5.5 | ) | — | — | |||||||||||||
Benefits paid | (92.4 | ) | (94.4 | ) | (55.7 | ) | (74.1 | ) | (7.8 | ) | (9.7 | ) | |||||||||||
Fair value of plan assets at end of plan year | $ | 1,081.5 | $ | 1,174.1 | $ | 1,047.3 | $ | 1,115.7 | $ | — | $ | — | |||||||||||
Funded status — assets less than benefit obligation | $ | (304.2 | ) | $ | (286.4 | ) | $ | (326.9 | ) | $ | (424.7 | ) | $ | (61.0 | ) | $ | (69.8 | ) | |||||
Unrecognized prior service cost (credit) | 9.1 | 5.1 | 2.3 | 3.2 | (6.6 | ) | (7.9 | ) | |||||||||||||||
Unrecognized net actuarial loss | 255.8 | 214.7 | 233.5 | 298.7 | 1.4 | 3.6 | |||||||||||||||||
Unrecognized net transition obligation | — | — | 0.1 | 0.1 | — | — | |||||||||||||||||
Net amount recognized | $ | (39.3 | ) | $ | (66.6 | ) | $ | (91.0 | ) | $ | (122.7 | ) | $ | (66.2 | ) | $ | (74.1 | ) |
U.S. Plans | Non-U.S. Plans | Other Benefits | |||||||||||||||||||||
(Millions of Dollars) | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets | |||||||||||||||||||||||
Prepaid benefit cost (non-current) | $ | — | $ | — | $ | 2.9 | $ | 0.6 | $ | — | $ | — | |||||||||||
Current benefit liability | (11.0 | ) | (15.9 | ) | (7.9 | ) | (8.1 | ) | (6.7 | ) | (7.5 | ) | |||||||||||
Non-current benefit liability | (293.2 | ) | (270.5 | ) | (321.9 | ) | (417.2 | ) | (54.3 | ) | (62.3 | ) | |||||||||||
Net liability recognized | $ | (304.2 | ) | $ | (286.4 | ) | $ | (326.9 | ) | $ | (424.7 | ) | $ | (61.0 | ) | $ | (69.8 | ) | |||||
Accumulated other comprehensive loss (pre-tax): | |||||||||||||||||||||||
Prior service cost (credit) | $ | 9.1 | $ | 5.1 | $ | 2.3 | $ | 3.2 | $ | (6.6 | ) | $ | (7.9 | ) | |||||||||
Actuarial loss | 255.8 | 214.7 | 233.5 | 298.7 | 1.4 | 3.6 | |||||||||||||||||
Transition liability | — | — | 0.1 | 0.1 | — | — | |||||||||||||||||
$ | 264.9 | $ | 219.8 | $ | 235.9 | $ | 302.0 | $ | (5.2 | ) | $ | (4.3 | ) | ||||||||||
Net amount recognized | $ | (39.3 | ) | $ | (66.6 | ) | $ | (91.0 | ) | $ | (122.7 | ) | $ | (66.2 | ) | $ | (74.1 | ) |
U.S. Plans | Non-U.S. Plans | ||||||||||||||
(Millions of Dollars) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Projected benefit obligation | $ | 1,385.7 | $ | 1,460.5 | $ | 894.5 | $ | 1,511.4 | |||||||
Accumulated benefit obligation | $ | 1,383.9 | $ | 1,460.5 | $ | 855.5 | $ | 1,463.3 | |||||||
Fair value of plan assets | $ | 1,081.5 | $ | 1,174.1 | $ | 566.9 | $ | 1,088.3 |
U.S. Plans | Non-U.S. Plans | ||||||||||||||
(Millions of Dollars) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Projected benefit obligation | $ | 1,385.7 | $ | 1,460.5 | $ | 921.7 | $ | 1,539.6 | |||||||
Accumulated benefit obligation | $ | 1,383.9 | $ | 1,460.5 | $ | 879.4 | $ | 1,488.0 | |||||||
Fair value of plan assets | $ | 1,081.5 | $ | 1,174.1 | $ | 591.9 | $ | 1,114.4 |
Pension Benefits | ||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | Other Benefits | ||||||||||||||||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 | ||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations at year end: | ||||||||||||||||||||||||||
Discount rate | 4.25 | % | 3.75 | % | 4.50 | % | 3.25 | % | 3.25 | % | 4.00 | % | 3.75 | % | 3.25 | % | 4.00 | % | ||||||||
Rate of compensation increase | 6.00 | % | 6.00 | % | 6.00 | % | 3.25 | % | 3.50 | % | 3.75 | % | 3.50 | % | 3.50 | % | 3.50 | % | ||||||||
Weighted-average assumptions used to determine net periodic benefit cost: | ||||||||||||||||||||||||||
Discount rate | 3.75 | % | 4.50 | % | 3.75 | % | 3.25 | % | 4.00 | % | 4.00 | % | 3.25 | % | 4.00 | % | 3.00 | % | ||||||||
Rate of compensation increase | 6.00 | % | 6.00 | % | 6.00 | % | 3.50 | % | 3.75 | % | 3.25 | % | 3.50 | % | 3.50 | % | 3.50 | % | ||||||||
Expected return on plan assets | 6.50 | % | 7.00 | % | 6.25 | % | 5.25 | % | 5.75 | % | 6.00 | % | — | — | — |
Asset Category | 2015 | Level 1 | Level 2 | ||||||||
Cash and cash equivalents | $ | 58.1 | $ | 39.7 | $ | 18.4 | |||||
Equity securities | |||||||||||
U.S. equity securities | 296.3 | 50.4 | 245.9 | ||||||||
Foreign equity securities | 269.0 | 43.2 | 225.8 | ||||||||
Fixed income securities | |||||||||||
Government securities | 696.7 | 248.3 | 448.4 | ||||||||
Corporate securities | 716.9 | — | 716.9 | ||||||||
Insurance contracts | 33.2 | — | 33.2 | ||||||||
Other | 58.6 | — | 58.6 | ||||||||
Total | $ | 2,128.8 | $ | 381.6 | $ | 1,747.2 |
Asset Category | 2014 | Level 1 | Level 2 | ||||||||
Cash and cash equivalents | $ | 98.6 | $ | 50.7 | $ | 47.9 | |||||
Equity securities | |||||||||||
U.S. equity securities | 305.9 | 50.9 | 255.0 | ||||||||
Foreign equity securities | 280.5 | 41.3 | 239.2 | ||||||||
Fixed income securities | |||||||||||
Government securities | 791.7 | 261.1 | 530.6 | ||||||||
Corporate securities | 676.5 | — | 676.5 | ||||||||
Insurance contracts | 34.0 | — | 34.0 | ||||||||
Other | 102.6 | — | 102.6 | ||||||||
Total | $ | 2,289.8 | $ | 404.0 | $ | 1,885.8 |
(Millions of Dollars) | Total | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Years 6-10 | |||||||||||||||||||||
Future payments | $ | 1,567.9 | $ | 152.0 | $ | 196.1 | $ | 149.9 | $ | 148.2 | $ | 150.6 | $ | 771.1 |
(Millions of Dollars) | Total Carrying Value | Level 1 | Level 2 | ||||||||
January 2, 2016: | |||||||||||
Money market fund | $ | 7.0 | $ | 7.0 | $ | — | |||||
Derivative assets | $ | 79.3 | $ | — | $ | 79.3 | |||||
Derivative liabilities | $ | 96.1 | $ | — | $ | 96.1 | |||||
January 3, 2015: | |||||||||||
Money market fund | $ | 9.9 | $ | 9.9 | $ | — | |||||
Derivative assets | $ | 144.2 | $ | — | $ | 144.2 | |||||
Derivative liabilities | $ | 148.4 | $ | — | $ | 148.4 |
January 2, 2016 | January 3, 2015 | ||||||||||||||
(Millions of Dollars) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||
Other investments | $ | 11.7 | $ | 11.7 | $ | 11.7 | $ | 11.9 | |||||||
Derivative assets | $ | 79.3 | $ | 79.3 | $ | 144.2 | $ | 144.2 | |||||||
Derivative liabilities | $ | 96.1 | $ | 96.1 | $ | 148.4 | $ | 148.4 | |||||||
Long-term debt, including current portion | $ | 3,841.7 | $ | 4,034.4 | $ | 3,845.7 | $ | 4,323.8 |
1/3/2015 | Net Additions | Usage | Currency | 1/2/2016 | |||||||||||||||
Severance and related costs | $ | 81.2 | $ | 32.7 | $ | (66.5 | ) | $ | (3.1 | ) | $ | 44.3 | |||||||
Facility closures and asset impairments | 16.4 | 14.9 | (16.6 | ) | (0.3 | ) | 14.4 | ||||||||||||
Total | $ | 97.6 | $ | 47.6 | $ | (83.1 | ) | $ | (3.4 | ) | $ | 58.7 |
(Millions of Dollars) | 2015 | 2014 | 2013 | ||||||||
Net Sales | |||||||||||
Tools & Storage | $ | 7,140.7 | $ | 7,033.0 | $ | 6,705.0 | |||||
Security | 2,092.9 | 2,261.2 | 2,295.9 | ||||||||
Industrial | 1,938.2 | 2,044.4 | 1,888.6 | ||||||||
Consolidated | $ | 11,171.8 | $ | 11,338.6 | $ | 10,889.5 | |||||
Segment Profit | |||||||||||
Tools & Storage | $ | 1,170.1 | $ | 1,074.4 | $ | 951.7 | |||||
Security | 239.6 | 259.2 | 235.2 | ||||||||
Industrial | 339.9 | 350.6 | 280.2 | ||||||||
Segment Profit | 1,749.6 | 1,684.2 | 1,467.1 | ||||||||
Corporate overhead | (164.0 | ) | (177.4 | ) | (254.0 | ) | |||||
Other-net | (222.0 | ) | (239.7 | ) | (283.9 | ) | |||||
Restructuring charges and asset impairments | (47.6 | ) | (18.8 | ) | (173.7 | ) | |||||
Gain (loss) on debt extinguishment | — | 0.1 | (20.6 | ) | |||||||
Interest income | 15.2 | 13.6 | 12.8 | ||||||||
Interest expense | (180.4 | ) | (177.2 | ) | (160.1 | ) | |||||
Earnings from continuing operations before income taxes | $ | 1,150.8 | $ | 1,084.8 | $ | 587.6 | |||||
Capital and Software Expenditures | |||||||||||
Tools & Storage | $ | 191.7 | $ | 183.0 | $ | 196.1 | |||||
Security | 35.9 | 27.9 | 79.8 | ||||||||
Industrial | 83.8 | 74.3 | 61.2 | ||||||||
Discontinued operations | — | 5.8 | 3.2 | ||||||||
Consolidated | $ | 311.4 | $ | 291.0 | $ | 340.3 | |||||
Depreciation and Amortization | |||||||||||
Tools & Storage | $ | 196.5 | $ | 193.9 | $ | 191.7 | |||||
Security | 105.2 | 127.8 | 132.1 | ||||||||
Industrial | 112.3 | 122.5 | 110.5 | ||||||||
Discontinued operations | $ | — | $ | 5.6 | $ | 7.0 | |||||
Consolidated | $ | 414.0 | $ | 449.8 | $ | 441.3 | |||||
Segment Assets | |||||||||||
Tools & Storage | $ | 8,492.9 | $ | 8,568.2 | $ | 9,004.9 | |||||
Security | 3,741.6 | 3,972.0 | 4,355.5 | ||||||||
Industrial | 3,438.7 | 3,501.8 | 3,668.3 | ||||||||
15,673.2 | 16,042.0 | 17,028.7 | |||||||||
Discontinued operations | — | 29.5 | 136.9 | ||||||||
Corporate assets | (500.9 | ) | (222.4 | ) | (630.5 | ) | |||||
Consolidated | $ | 15,172.3 | $ | 15,849.1 | $ | 16,535.1 |
(Millions of Dollars) | 2015 | 2014 | 2013 | ||||||||
Net Sales | |||||||||||
United States | $ | 5,882.0 | $ | 5,492.4 | $ | 5,208.0 | |||||
Canada | 516.3 | 591.3 | 600.3 | ||||||||
Other Americas | 706.5 | 788.4 | 818.2 | ||||||||
France | 595.7 | 695.6 | 704.6 | ||||||||
Other Europe | 2,371.5 | 2,585.3 | 2,417.9 | ||||||||
Asia | 1,099.8 | 1,185.6 | 1,140.5 | ||||||||
Consolidated | $ | 11,171.8 | $ | 11,338.6 | $ | 10,889.5 | |||||
Property, Plant & Equipment | |||||||||||
United States | $ | 676.0 | $ | 639.7 | $ | 620.7 | |||||
Canada | 19.1 | 20.9 | 25.0 | ||||||||
Other Americas | 82.6 | 82.2 | 84.4 | ||||||||
France | 64.8 | 74.7 | 85.3 | ||||||||
Other Europe | 328.4 | 333.2 | 368.8 | ||||||||
Asia | 279.3 | 303.4 | 294.4 | ||||||||
Consolidated | $ | 1,450.2 | $ | 1,454.1 | $ | 1,478.6 |
(Millions of Dollars) | 2015 | 2014 | |||||
Deferred tax liabilities: | |||||||
Depreciation | $ | 99.6 | $ | 72.7 | |||
Amortization of intangibles | 868.5 | 888.3 | |||||
Liability on undistributed foreign earnings | 319.9 | 369.2 | |||||
Discharge of indebtedness | 9.3 | 12.4 | |||||
Inventories | — | 8.8 | |||||
Deferred revenue | 25.5 | 32.0 | |||||
Other | 66.8 | 59.4 | |||||
Total deferred tax liabilities | $ | 1,389.6 | $ | 1,442.8 | |||
Deferred tax assets: | |||||||
Employee benefit plans | $ | 361.1 | $ | 308.3 | |||
Doubtful accounts and other customer allowances | 19.0 | 15.0 | |||||
Inventories | 16.1 | — | |||||
Accruals | 135.6 | 131.7 | |||||
Restructuring charges | 12.6 | 42.2 | |||||
Operating loss, capital loss and tax credit carryforwards | 562.5 | 594.6 | |||||
Currency and derivatives | 42.2 | 47.3 | |||||
Other | 82.7 | 97.1 | |||||
Total deferred tax assets | $ | 1,231.8 | $ | 1,236.2 | |||
Net Deferred Tax Liabilities before Valuation Allowance | $ | 157.8 | $ | 206.6 | |||
Valuation allowance | $ | 480.7 | $ | 551.9 | |||
Net Deferred Tax Liabilities after Valuation Allowance | $ | 638.5 | $ | 758.5 |
2015 | 2014 | ||||||||||||||
(Millions of Dollars) | Deferred Tax Asset | Deferred Tax Liability | Deferred Tax Asset | Deferred Tax Liability | |||||||||||
Current | $ | (85.4 | ) | $ | 18.5 | $ | (137.4 | ) | $ | 11.9 | |||||
Non-current | (120.5 | ) | 825.9 | (108.7 | ) | 992.7 | |||||||||
Total | $ | (205.9 | ) | $ | 844.4 | $ | (246.1 | ) | $ | 1,004.6 |
(Millions of Dollars) | 2015 | 2014 | 2013 | ||||||||
Current: | |||||||||||
Federal | $ | 64.4 | $ | 18.4 | $ | 84.0 | |||||
Foreign | 171.4 | 141.1 | 123.5 | ||||||||
State | 14.1 | 17.1 | (3.0 | ) | |||||||
Total current | $ | 249.9 | $ | 176.6 | $ | 204.5 | |||||
Deferred: | |||||||||||
Federal | $ | 64.2 | $ | 55.3 | $ | (77.1 | ) | ||||
Foreign | (47.3 | ) | (19.3 | ) | (50.6 | ) | |||||
State | (18.2 | ) | 14.5 | (8.2 | ) | ||||||
Total deferred | (1.3 | ) | 50.5 | (135.9 | ) | ||||||
Income taxes on continuing operations | $ | 248.6 | $ | 227.1 | $ | 68.6 |
(Millions of Dollars) | 2015 | 2014 | 2013 | ||||||||
Tax at statutory rate | $ | 402.9 | $ | 379.7 | $ | 205.8 | |||||
State income taxes, net of federal benefits | 14.9 | 24.3 | (6.6 | ) | |||||||
Difference between foreign and federal income tax | (166.9 | ) | (178.0 | ) | (124.9 | ) | |||||
Tax accrual reserve | 43.9 | 1.1 | 15.3 | ||||||||
Audit settlements | 1.3 | (5.3 | ) | 0.9 | |||||||
NOL/capital loss & valuation allowance related items | (21.6 | ) | 2.7 | 6.8 | |||||||
Foreign dividends and related items | 19.1 | 25.6 | (9.5 | ) | |||||||
Change in deferred tax liabilities on undistributed foreign earnings | (31.0 | ) | (6.0 | ) | (19.5 | ) | |||||
Statutory income tax rate change | 4.8 | (0.6 | ) | (1.7 | ) | ||||||
Other-net | (18.8 | ) | (16.4 | ) | 2.0 | ||||||
Income taxes on continuing operations | $ | 248.6 | $ | 227.1 | $ | 68.6 |
(Millions of Dollars) | 2015 | 2014 | 2013 | ||||||||
United States | $ | 405.5 | $ | 234.4 | $ | 112.7 | |||||
Foreign | 745.3 | 850.4 | 474.9 | ||||||||
Earnings from continuing operations before income taxes | $ | 1,150.8 | $ | 1,084.8 | $ | 587.6 |
(Millions of Dollars) | 2015 | 2014 | 2013 | ||||||||
Balance at beginning of year | $ | 280.8 | $ | 269.5 | $ | 207.2 | |||||
Additions based on tax positions related to current year | 23.2 | 27.4 | 37.1 | ||||||||
Additions based on tax positions related to prior years | 24.3 | 40.1 | 46.9 | ||||||||
Reductions based on tax positions related to prior years | (14.3 | ) | (30.9 | ) | (13.2 | ) | |||||
Settlements | (21.5 | ) | (5.9 | ) | 7.7 | ||||||
Statute of limitations expirations | (9.4 | ) | (19.4 | ) | (16.2 | ) | |||||
Balance at end of year | $ | 283.1 | $ | 280.8 | $ | 269.5 |
(Millions of Dollars) | Total | 2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | ||||||||||||||||||||
Operating lease obligations | $ | 251.0 | $ | 73.0 | $ | 57.0 | $ | 41.0 | $ | 29.0 | $ | 22.0 | $ | 29.0 | |||||||||||||
Marketing commitments | 69.5 | 26.9 | 26.5 | 8.8 | 4.5 | 2.8 | — | ||||||||||||||||||||
Total | $ | 320.5 | $ | 99.9 | $ | 83.5 | $ | 49.8 | $ | 33.5 | $ | 24.8 | $ | 29.0 |
(Millions of Dollars) | Term | Maximum Potential Payment | Carrying Amount of Liability | ||||||
Guarantees on the residual values of leased properties | One to four years | $ | 34.4 | $ | — | ||||
Standby letters of credit | Up to three years | 78.7 | — | ||||||
Commercial customer financing arrangements | Up to six years | 56.9 | 16.9 | ||||||
Total | $ | 170.0 | $ | 16.9 |
(Millions of Dollars) | 2015 | 2014 | 2013 | ||||||||
Balance beginning of period | $ | 109.6 | $ | 121.1 | $ | 123.2 | |||||
Warranties and guarantees issued | 91.8 | 98.0 | 92.9 | ||||||||
Liability assumed from acquisitions | — | — | 0.1 | ||||||||
Warranty payments and currency | (96.0 | ) | (109.5 | ) | (95.1 | ) | |||||
Balance end of period | $ | 105.4 | $ | 109.6 | $ | 121.1 |
(Millions of Dollars) | 2015 | 2014 | 2013 | ||||||||
Net Sales | $ | 39.4 | $ | 118.4 | $ | 150.1 | |||||
Loss from discontinued operations before income taxes | $ | (19.3 | ) | $ | (104.0 | ) | $ | (43.0 | ) | ||
Income tax expense (benefit) on discontinued operations | 0.8 | (7.7 | ) | (13.3 | ) | ||||||
Net loss from discontinued operations | $ | (20.1 | ) | $ | (96.3 | ) | $ | (29.7 | ) |
Quarter | ||||||||||||||||||||
(Millions of Dollars, except per share amounts) | First | Second | Third | Fourth | Year | |||||||||||||||
2015 | ||||||||||||||||||||
Net sales | $ | 2,630.0 | $ | 2,866.9 | $ | 2,829.5 | $ | 2,845.4 | $ | 11,171.8 | ||||||||||
Gross profit | 973.6 | 1,057.2 | 1,027.0 | 1,014.2 | 4,072.0 | |||||||||||||||
Selling, general and administrative expenses | 623.0 | 644.5 | 608.3 | 610.6 | 2,486.4 | |||||||||||||||
Net earnings from continuing operations | 166.0 | 235.5 | 233.4 | 267.3 | 902.2 | |||||||||||||||
Less: Net (loss) earnings attributable to non-controlling interest | (0.8 | ) | (0.2 | ) | (0.7 | ) | 0.1 | (1.6 | ) | |||||||||||
Net earnings from continuing operations attributable to Stanley Black & Decker, Inc. | 166.8 | 235.7 | 234.1 | 267.2 | 903.8 | |||||||||||||||
Net loss from discontinued operations | (4.5 | ) | (8.5 | ) | (5.4 | ) | (1.7 | ) | (20.1 | ) | ||||||||||
Net earnings attributable to Stanley Black & Decker, Inc. | $ | 162.3 | $ | 227.2 | $ | 228.7 | $ | 265.5 | $ | 883.7 | ||||||||||
Basic earnings (loss) per common share: | ||||||||||||||||||||
Continuing operations | $ | 1.10 | $ | 1.59 | $ | 1.60 | $ | 1.83 | $ | 6.10 | ||||||||||
Discontinued operations | (0.03 | ) | (0.06 | ) | (0.04 | ) | (0.01 | ) | (0.14 | ) | ||||||||||
Total basic earnings per common share | $ | 1.07 | $ | 1.53 | $ | 1.57 | $ | 1.82 | $ | 5.96 | ||||||||||
Diluted earnings (loss) per common share: | ||||||||||||||||||||
Continuing operations | $ | 1.07 | $ | 1.54 | $ | 1.55 | $ | 1.78 | $ | 5.92 | ||||||||||
Discontinued operations | (0.03 | ) | (0.06 | ) | (0.04 | ) | (0.01 | ) | (0.13 | ) | ||||||||||
Total diluted earnings per common share | $ | 1.04 | $ | 1.49 | $ | 1.52 | $ | 1.77 | $ | 5.79 | ||||||||||
2014 | ||||||||||||||||||||
Net sales | $ | 2,617.1 | $ | 2,860.1 | $ | 2,878.9 | $ | 2,982.5 | $ | 11,338.6 | ||||||||||
Gross profit | 956.4 | 1,048.6 | 1,046.6 | 1,051.1 | 4,102.7 | |||||||||||||||
Selling, general and administrative expenses | 640.6 | 655.9 | 641.1 | 658.3 | 2,595.9 | |||||||||||||||
Net earnings from continuing operations | 169.9 | 222.7 | 246.1 | 219.0 | 857.7 | |||||||||||||||
Less: Net earnings (loss) attributable to non-controlling interest | 0.2 | 0.9 | (0.3 | ) | (0.3 | ) | 0.5 | |||||||||||||
Net earnings from continuing operations attributable to Stanley Black & Decker, Inc. | 169.7 | 221.8 | 246.4 | 219.3 | 857.2 | |||||||||||||||
Net loss from discontinued operations | (7.8 | ) | (5.3 | ) | (9.7 | ) | (73.5 | ) | (96.3 | ) | ||||||||||
Net earnings attributable to Stanley Black & Decker, Inc. | $ | 161.9 | $ | 216.5 | $ | 236.7 | $ | 145.8 | $ | 760.9 | ||||||||||
Basic earnings (loss) per common share: | ||||||||||||||||||||
Continuing operations | $ | 1.09 | $ | 1.42 | $ | 1.57 | $ | 1.41 | $ | 5.49 | ||||||||||
Discontinued operations | (0.05 | ) | (0.03 | ) | (0.06 | ) | (0.47 | ) | (0.62 | ) | ||||||||||
Total basic earnings per common share | $ | 1.04 | $ | 1.38 | $ | 1.51 | $ | 0.94 | $ | 4.87 | ||||||||||
Diluted earnings (loss) per common share: | ||||||||||||||||||||
Continuing operations | $ | 1.07 | $ | 1.39 | $ | 1.53 | $ | 1.37 | $ | 5.37 | ||||||||||
Discontinued operations | (0.05 | ) | (0.03 | ) | (0.06 | ) | (0.46 | ) | (0.60 | ) | ||||||||||
Total diluted earnings per common share | $ | 1.02 | $ | 1.36 | $ | 1.47 | $ | 0.91 | $ | 4.76 |
3.1 | (a) | Restated Certificate of Incorporation dated September 15, 1998 (incorporated by reference to Exhibit 3(i) to the Company’s Quarterly Report on Form 10-Q filed on May 13, 2010). | |
(b) | Certificate of Amendment to the Restated Certificate of Incorporation dated December 21, 2009 (incorporated by reference to Exhibit 3(ii) to the Company’s Quarterly Report on Form 10-Q filed on May 13, 2010). | ||
(c) | Certificate of Amendment to the Restated Certificate of Incorporation dated March 12, 2010 (incorporated by reference to Exhibit 3(iii) to the Company’s Quarterly Report on Form 10-Q filed on May 13, 2010). | ||
(d) | Certificate of Amendment to the Restated Certificate of Incorporation dated November 5, 2010 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on November 9, 2010). | ||
(e) | Certificate of Amendment to the Restated Certificate of Incorporation dated April 17, 2012 (incorporated by reference to Exhibit 3(i) to the Company’s Quarterly Report on Form 10-Q filed on May 2, 2012). | ||
3.2 | (a) | Amended and Restated ByLaws (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on April 19, 2013). | |
4.1 | (a) | Indenture, dated as of June 26, 1998, by and among Black & Decker Holdings Inc., as Issuer, The Black & Decker Corporation, as Guarantor, and The First National Bank of Chicago, as Trustee (incorporated by reference to Exhibit 4.9 to the Company’s Current Report on Form 8-K filed on March 12, 2010). | |
(b) | First Supplemental Indenture dated as of March 12, 2010, to the Indenture dated as of June 26, 1998, by and among Black & Decker Holdings, Inc., as issuer, The Black & Decker Corporation, as guarantor and The First National Bank of Chicago, as trustee (incorporated by reference to Exhibit 4.5 to the Company’s Current Report on Form 8-K filed on March 12, 2010). | ||
4.2 | (a) | Senior Indenture, dated as of November 1, 2002 between the Company and The Bank of New York Mellon Trust Company, N.A., as successor trustee to JPMorgan Chase Bank, defining the rights of holders of 3 1/2% Notes Due November 1, 2007, 4 9/10% Notes due November 1, 2012 and 6.15% Notes due 2013 (incorporated by reference to Exhibit 4(vi) to the Company’s Annual Report on Form 10-K for the year ended December 28, 2002). | |
(b) | Second Supplemental Indenture dated as of March 12, 2010 to the Indenture dated as of November 1, 2002 between The Stanley Works and The Bank of New York Mellon Trust Company, as successor trustee to JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on March 12, 2010). | ||
(c) | Third Supplemental Indenture dated as of September 3, 2010, to the Indenture dated as of November 1, 2002, among Stanley Black & Decker, Inc., The Black & Decker Corporation and The Bank of New York Mellon Trust Company, N.A., as successor trustee to JPMorgan Chase Bank, N.A. (formerly known as JPMorgan Chase Bank), as trustee (incorporated by reference to the Company’s Current Report on Form 8-K filed on September 7, 2010). | ||
(d) | Fourth Supplemental Indenture, dated as of November 22, 2011, among Stanley Black & Decker, Inc., The Black & Decker Corporation, as Guarantor, and the Bank of New York Mellon Trust Company, N.A., as Trustee, relating to the 3.40% Notes due 2021 (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on November 22, 2011). | ||
(e) | Fifth Supplemental Indenture, dated as of November 6, 2012, among Stanley Black & Decker, Inc., The Black & Decker Corporation, as Guarantor, and the Bank of New York Mellon Trust Company, N.A., as Trustee, relating to the 2.90% Notes due 2022 (incorporated by reference to Exhibit 4.3 to the Company's Current Report on Form 8-K filed on November 6, 2012). | ||
4.3 | (a) | Indenture, dated November 22, 2005, between The Stanley Works and HSBC Bank USA, National Association, as indenture trustee (incorporated by reference to Exhibit 4.5 to the Company’s Current Report on Form 8-K dated November 29, 2005). | |
(b) | First Supplemental Indenture, dated November 22, 2005, between The Stanley Works and HSBC Bank USA, National Association, as indenture trustee (incorporated by reference to Exhibit 4.6 to the Company’s Current Report on Form 8-K dated November 29, 2005). | ||
(c) | Second Supplemental Indenture dated as of November 5, 2010, to the Indenture dated as of November 22, 2005, between Stanley Black & Decker, Inc. and HSBC Bank USA, National Association, as trustee (incorporated by reference to Exhibit 4.4 of the Company’s Current Report on Form 8-K filed on November 9, 2010). | ||
(d) | Third Supplemental Indenture dated July 25, 2012, between the Company and HSBC Bank USA, National Association, as trustee, related to the 5.75% Junior Subordinated Debentures due 2052 (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K filed on July 25, 2012). | ||
(e) | Fourth Supplemental Indenture, dated as of December 3, 2013, between the Company and the Trustee, relating to the Notes (incorporated by reference to Exhibit 4.3 to the Company’s Form 8-K dated December 3, 2013). | ||
(f) | Fifth Supplemental Indenture, dated December 3, 2013, between the Company and the Trustee, related to the Debentures (incorporated by reference to Exhibit 4.9 to the Company’s Form 8-K dated December 3, 2013). | ||
(g) | Form of 5.75% Junior Subordinated Debentures due 2052 (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K dated July 25, 2012). | ||
(h) | Form of Debenture (incorporated by reference to Exhibit 4.9 to the Company’s Form 8-K dated December 3, 2013). | ||
4.4 | (a) | Rights Agreement dated as of January 19, 2006, by and between The Stanley Works and Computershare Investor Services L.L.C. (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K/A dated February 22, 2006). | |
(b) | Amendment No. 1 dated as of December 21, 2009 to the Rights Agreement, dated as of January 19, 2006, between The Stanley Works and the Computershare Investor Services L.L.C. (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K dated December 21, 2009). | ||
4.5 | (a) | Purchase Contract and Pledge Agreement dated as of November 5, 2010 among Stanley Black & Decker, Inc., The Bank of New York Mellon Trust Company, National Association, as purchase contract agent, and HSBC Bank USA, National Association, as collateral agent, as custodial agent, and as securities intermediary (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on November 9, 2010). | |
(b) | Form of 4.75% Series B Perpetual Cumulative Convertible Preferred Stock (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on November 9, 2010). | ||
(c) | Form of Corporate Unit (incorporated by reference to Exhibit 4.5 to the Company’s Current Report on Form 8-K filed on November 9, 2010). | ||
(d) | Form of Treasury Unit (incorporated by reference to Exhibit 4.6 to the Company’s Current Report on Form 8-K filed on November 9, 2010). | ||
(e) | Form of Cash-Settled Unit (incorporated by reference to Exhibit 4.7 to the Company’s Current Report on Form 8-K filed on November 9, 2010). | ||
(f) | Form of Unpledged Note (incorporated by reference to Exhibit 4.8 to the Company’s Current Report on Form 8-K filed on November 9, 2010). | ||
(g) | Form of Pledged Note (incorporated by reference to Exhibit 4.9 to the Company’s Current Report on Form 8-K filed on November 9, 2010). | ||
4.6 | (a) | Purchase Contract and Pledge Agreement, dated December 3, 2013, among the Company, The Bank of New York Mellon Trust Company, National Association, as Purchase Contract Agent, and HSBC Bank USA, National Association, as Collateral Agent, Custodial Agent and Securities Intermediary (incorporated by reference to Exhibit 4.1 to the Company’s Form 8-K dated December 3, 2013). | |
(b) | Form of Corporate Unit (incorporated by reference to Exhibit 4.1 to the Company’s Form 8-K dated December 3, 2013). | ||
(c) | Form of Treasury Unit (incorporated by reference to Exhibit 4.1 to the Company’s Form 8-K dated December 3, 2013). | ||
(d) | Form of Cash Settled Unit (incorporated by reference to Exhibit 4.1 to the Company’s Form 8-K dated December 3, 2013). | ||
(e) | Form of Unpledged Note (incorporated by reference to Exhibit 4.3 to the Company’s Form 8-K dated December 3, 2013). | ||
(f) | Form of Pledged Note (incorporated by reference to Exhibit 4.8 to the Company’s Form 8-K dated December 3, 2013). | ||
10.1 | Amended and Restated Five-Year Credit Agreement, made as of December 18, 2015 among Stanley Black & Decker, Inc., the initial lenders named therein and Citibank, N.A. as administrative agent for the lenders. (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on December 22, 2015). | ||
10.2 | (a) | Second Amended and Restated Employment Agreement, dated as of November 2, 2009, among The Stanley Works and John F. Lundgren (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed on November 3, 2009).* | |
(b) | Amended and Restated Change in Control Severance Agreement dated December 10, 2008 between The Stanley Works and John F. Lundgren. (incorporated by reference to Exhibit (xviii) to the Annual Report on Form 10-K for the period ended January 3, 2009).* | ||
(c) | Letter Agreement between Stanley Black & Decker, Inc. and John F. Lundgren effective January 13, 2013 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on January 14, 2013).* | ||
10.3 | (a) | Employment Agreement, dated as of November 2, 2009, among The Stanley Works and James M. Loree (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed on November 3, 2009).* | |
(b) | Letter Agreement between Stanley Black & Decker, Inc. and James M. Loree effective January 13, 2013 (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed on January 14, 2013).* | ||
10.4 | Letter Agreement between Stanley Black & Decker, Inc. and John H. Wyatt effective December 22, 2014, as amended February 17, 2016.* | ||
10.5 | Form A of Amended and Restated Change in Control Severance Agreement. James M. Loree is a party to a Restated and Amended Change in Control Severance Agreement in this Form. (incorporated by reference to Exhibit (xiv) to the Company’s Annual Report on Form 10-K for the period ended January 3, 2009).* | ||
10.7 | Form B of Amended and Restated Change in Control Severance Agreement. Jeffery D. Ansell is a party to an Amended and Restated Change in Control Severance Agreements in this Form (incorporated by reference to Exhibit (xv) to the Company’s Annual Report on Form 10-K for the period ended January 3, 2009).* | ||
10.8 | Form B of Change in Control Severance Agreement. Donald Allan, Jr., is a party to a Change in Control Severance Agreement in this Form (incorporated by reference to Exhibit (xvi) to the Company’s Annual Report on Form 10-K for the period ended January 3, 2009).* | ||
10.9 | Revised Form B of Change in Control Severance Agreement. John H. Wyatt is a Party to a Change In Control Severance Agreement in this Form and Three of the Company’s other Executive Officers are parties to a Change in Control Severance Agreement in this Form (incorporated by reference to Exhibit 10.9 to the Company’s Annual Report on Form 10-K for the period ended December 29, 2012).* | ||
10.10 | Form C of Change in Control Severance Agreement. Ten Executive Officers of the Company are parties to Change in Control Severance Agreements in this Form (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the period ended September 28, 2013).* | ||
10.11 | Deferred Compensation Plan for Non-Employee Directors amended and restated as of December 11, 2007 (incorporated by reference to Exhibit 10(vii) to the Company’s Annual Report on Form 10-K for the year ended December 29, 2007).* | ||
10.12 | Deferred Compensation Plan for Participants in Stanley’s Management Incentive Plan amended and restated as of December 11, 2007 (incorporated by reference to Exhibit 10(ix) to the Company’s Annual Report on Form 10-K for the year ended December 29, 2007).* | ||
10.13 | (a) | Stanley Black & Decker Supplemental Retirement Account Plan (as in effect, January 1, 2011, except as otherwise provided therein) (incorporated by reference to the Company’s Annual Report on Form 10-K for the period ended January 1, 2011).* | |
(b) | Stanley Black & Decker Supplemental Retirement Plan (effective, January 1, 2011, except as otherwise provided therein) (incorporated by reference to the Company’s Annual Report on Form 10-K for the period ended January 1, 2011).* | ||
10.14 | Stanley Black & Decker, Inc. Supplemental Executive Retirement Program as amended and restated effective October 15, 2015, (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on October 16, 2015).* | ||
10.15 | New 1991 Loan Agreement, dated June 30, 1998, between The Stanley Works, as lender, and Citibank, N.A. as trustee under the trust agreement for the Stanley Account Value Plan, to refinance the 1991 Salaried Employee ESOP Loan and the 1991 Hourly ESOP Loan and their related promissory notes (incorporated by reference to Exhibit 10(ii) to the Company’s Quarterly Report on Form 10-Q for the quarter ended July 4, 1998). | ||
10.16 | 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). | ||
10.17 | (a) | 2001 Long-Term Incentive Plan as amended effective October 17, 2008 (incorporated by reference to Exhibit (xi) to the Company’s Annual Report on Form 10-K for the period ended January 3, 2009).* | |
(b) | Form of Stock Option Certificate for stock options granted pursuant to 2001 Long-Term Incentive Plan (incorporated by reference to Exhibit 10(xiv)(a) to the Company’s Annual Report on Form 10-K for the year ended December 29, 2007).* | ||
10.18 | (a) | The Stanley Works 2009 Long-Term Incentive Plan (as amended March 12, 2010) (incorporated by reference Exhibit 4.7 to the Company’s Registration Statement on Form S-8 Reg. No. 333-165454 filed on March 12, 2010).* | |
(b) | Form of award letter for restricted stock unit grants to executive officers pursuant to the Company’s 2009 Long Term Incentive Plan (as amended March 12, 2010)(incorporated by reference to Exhibit 10(vi)(b) to the Company’s Quarterly Report on Form 10-Q filed on May 13, 2010)*. | ||
(c) | Form of stock option certificate for executive officers pursuant to the Company’s 2009 Long Term Incentive Plan (as amended March 12, 2010) (incorporated by reference to Exhibit 10(vi)(c) to the Company’s Quarterly Report on Form 10-Q filed on May 13, 2010)*. | ||
(d) | Terms of special one-time award of restricted stock units to John F. Lundgren under his employment agreement and The Stanley Works 2009 Long-Term Incentive Plan (as amended March 12, 2010) (incorporated by reference to Exhibit 10(vi)(d) to the Company’s Quarterly Report on Form 10-Q filed on May 13, 2010).* | ||
10.19 | (a) | The Stanley Black & Decker 2013 Long Term Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the period ended March 20, 2013).* |
(b) | Form of Award Document for Performance Awards granted to Executive Officers under 2013 Long Term Incentive Plan, updated 2016.* | ||
(c) | Form of stock option certificate for grants to executive officers pursuant to the Company’s 2013 Long Term Incentive Plan (incorporated by reference to Exhibit 10.18(c) to the Company’s Annual Report on Form 10-K for the period ended December 28, 2013).* | ||
(d) | Form of restricted stock unit award certificate for grants of restricted stock units to executive officers pursuant to the Company’s 2013 Long Term Incentive Plan (incorporated by reference to Exhibit 10.18(d) to the Company’s Annual Report on Form 10-K for the period ended December 28, 2013).* | ||
10.20 | (a) | The Stanley Works Restricted Stock Unit Plan for Non-Employee Directors amended and restated as of December 11, 2007 (incorporated by reference to Exhibit 10(xx) to the Company’s Annual Report on Form 10-K for the year ended December 29, 2007).* | |
(b) | Form of Certificate for RSUs issued pursuant to The Stanley Works Restricted Stock Unit Plan for Non-Employee Directors (incorporated by reference to Exhibit 10(xxv) to the Company’s Annual Report on Form 10-K for the year ended January 1, 2005).* | ||
10.21 | The Stanley Black & Decker, Inc. 2012 Management Incentive Compensation Plan (incorporated by reference to Exhibit 10.19 to the Company’s Annual Report on Form 10-K for the year ended December 29, 2012).* | ||
10.22 | Special Severance Policy for Management Incentive Compensation Plan Participants Levels 1-5 as amended effective October 17, 2008 (incorporated by reference to Exhibit (xxi) to the Company’s Annual Report on Form 10-K for the period ended January 3, 2009).* | ||
10.23 | Employee Stock Purchase Plan as amended April 23, 2009 (incorporated by reference to Exhibit 10(iii)(d) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended April 4, 2009).* | ||
10.24 | The Black & Decker 2003 Stock Option Plan, as amended (incorporated by reference to Exhibit 10.7 to the Company’s Current Report on Form 8-K filed on March 12, 2010).* | ||
10.25 | Form of Nonqualified Stock Option Agreement relating to The Black & Decker Corporation’s stock option plans (incorporated by reference to Exhibit 10(xix) to the Company’s Quarterly Report on Form 10-Q filed on May 13, 2010).* | ||
10.26 | (a) | The Black & Decker Supplemental Pension Plan, as amended and restated (incorporated by reference to Exhibit 10(xx) to the Company’s Quarterly Report on Form 10-Q filed on May 13, 2010).* | |
(b) | First Amendment to The Black & Decker Supplemental Pension Plan (incorporated by reference to Exhibit 10(xxi) to the Company’s Quarterly Report on Form 10-Q filed on May 13, 2010).* | ||
10.27 | The Black & Decker Supplemental Executive Retirement Plan, as amended and restated (incorporated by reference to Exhibit 10(xxii) to the Company’s Quarterly Report on Form 10-Q filed on May 13, 2010).* | ||
11 | Statement re computation of per share earnings (the information required to be presented in this exhibit appears in Note J to the Company’s Consolidated Financial Statements set forth in this Annual Report on Form 10-K). | ||
12 | Statement re computation of ratio of earnings to fixed charges. | ||
14 | Code of Ethics for CEO and Senior Financial Officers (incorporated by reference to the Company’s website, www.stanleyblackanddecker.com). | ||
21 | Subsidiaries of Registrant. | ||
23 | Consent of Independent Registered Public Accounting Firm. | ||
24 | Power of Attorney. | ||
31.1 | (a) | Certification by Chief Executive Officer pursuant to Rule 13a-14(a). | |
31.1 | (b) | Certification by Chief Financial Officer pursuant to Rule 13a-14(a). |
32.1 | Certification by Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
32.2 | Certification by Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
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). |
* | Management contract or compensation plan or arrangement. |
• | The Retirement Account Plan offers a 401(k) savings vehicle for you to save on a pre-tax basis with a company match of 50% on employee pre-tax contributions up to 7% of your pay and a diversified investment fund line-up. |
• | In addition, the Retirement Account Plan provides a Core allocation to an account for you regardless of your own contributions. Stanley Black & Decker will make a Core allocation to your account of 6% of your pay based on your age. |
• | The Company will pay you an annual housing-related stipend of $120,000, which is intended to partially defray your US housing costs and the incremental costs associated with maintaining your UK home in your absence. This housing stipend will be paid ratably to you, i.e. $10,000 per month. |
• | You and your family will be entitled to a travel benefit to help defray your costs for trips between the US and the UK. The Company will reimburse these costs, for airfare and one car rental per trip, based on invoices. These trips should be booked at a reasonable cost and aligned with the SBD Travel Policy requirements. The maximum annual travel costs for reimbursement are not to exceed $18,000. |
• | The Company will reimburse you based upon receipt of invoices for the incrementally higher tuition and boarding costs you incur for your minor daughter’s education until her graduation from high school. This allowance will cover the incremental cost of school tuition and board fees versus that which would have occurred if your family remained in the UK. |
• | In recognition of the fact that the retirement benefits you will receive in the US are lower than your previous European benefit, the Company will pay you additional “non-pensionable” compensation of $3,713 per month. |
• | Invention and Confidentiality Agreement; |
• | MICP Restrictive Covenant Agreement; and |
• | Signed Offer Letter |
• | Completed New Hire Information Sheet |
• | on the last day worked: vacation, short and long term disability, business travel accident insurance, 401(k) savings plan, deferred compensation and pension plan (if applicable), voluntary benefits (including homeowners, auto and pet insurance) and company service awards. |
• | on the last day of the last month of your last day paid, including separation pay, and has made any required contributions: medical, dental, and vision (if applicable); basic, supplemental and dependent life insurance, and accidental death and dismemberment insurance, group legal, employee assistance program (EAP)and Flexible Spending Accounts, if applicable. |
A. | Vacation - Vacation pay will be paid in accordance with the provisions of the Vacation Human Resource Guideline 2002. |
B. | Disability Benefits - There is no conversion privilege for short term disability benefits. However, Executive Long Term Disability can be continued if the employee chooses to do so and applies and pays for the first premium within 60 days of their last day worked. At the time of termination, a conversion option is available to participants enrolled in Executive LTD to convert the Executive LTD group benefit and also continue the Individual Executive LTD portion of the benefit. The group Executive LTD benefit may be converted at group conversion rates determined by the insurance company up to certain guaranteed maximum benefit amounts, provided the employee has been covered by the plan for the last 12 months. When these policies are continued, the employee is required to pay the premiums directly to the insurance company. Lindberg & Ripple, the insurance agents handling the Executive LTD plan, can provide more conversion information at (860)761-9790. |
C. | Basic & Supplemental Life Insurance/AD&D - All employees receiving separation pay will remain enrolled in the active Basic and Supplemental employee and dependent life insurance and AD&D plans in which they were enrolled on their last day worked through the end of the month of the last day paid, including separation pay, provided they make the necessary Supplemental Life/AD&D contributions. Employees may convert and/or port their active life insurance coverage to an individual policy within 31 days of their coverage end date, according to the terms of the insurance plan. There is a conversion option under the Basic and Supplemental Life insurance plans. There is also a portability option (with more favorable rates) under the Supplemental Life plan only. Conversion and Portability forms are available on uCentral. |
D. | Executive Life - (MICP Level 4 and above) - The company will continue paying the Executive Life premiums until the end of the calendar quarter coincident with or following the last day paid. At that time, eligible employees can discuss continuation alternatives with Lindberg & Ripple, the insurance agent handling this Executive Life plan. For more information, call Lindberg & Ripple at (860)761-9790. If the employee qualifies for a final retirement funding payment under the terms of the Executive Life insurance plan, the company will make this payment according to the retirement terms of the Executive Life Insurance plan based on your age and years of service. |
E. | Medical, Dental, and Vision Care - All employees receiving separation pay will remain enrolled in the active medical, dental and vision insurance plans in which they were enrolled on the last day worked through the end of the month of the last day paid, including separation pay, provided they make the necessary contributions. |
F. | Pensions - Employees who are pension plan participants and are at least 55 with at least 10 years of service as of their last day worked are eligible to retire. |
G. | Company cars - Company issued vehicles must be returned by the employee's last day worked, excluding any extended employment period. In the alternative, the employee may purchase the vehicle from the Company for the wholesale market value price set by the Company. |
H. | Stock Option Plan Exercise Periods - At the discretion of the Senior Vice President of Human Resources, employees will have 180 days plus 2 calendar months to exercise any eligible shares, under the terms of the Stock Option Plan. These time frames do not apply to any stock options for "retirees" or those granted by Black & Decker, Inc. |
I. | MICP Payments - Employees will receive a share pro-rated through their last day worked in an amount determined by the Senior Vice President of Human Resources in his/her sole discretion. |
J. | Retirement Account Plan (RAP)and Supplemental RAP- A salaried employee whose employment is terminated will receive from any plan those funds in which he or she is entitled to under the terms of the plan. Core allocations are credited quarterly provided active employment on last day of the calendar quarter. |
K. | Unemployment Compensation - Consistent with the applicable State laws, the Company should not accept unemployment compensation charges for employees who resign or who are discharged for cause (that is, violation(s) of reasonable rule(s) of conduct). |
A. | Applicability of Appeals Procedure - The appeals procedure set forth in this Section may be employed only for the purposes specified in this Section. |
B. | Procedure for Appeals - An employee whose claim for benefits under this Policy is denied in whole or in part may submit a written request to the Separation Pay Policy Plan Administrator at 1000 Stanley Drive, New Britain, CT 06053 for reconsideration within 60 days after receiving notice that he or she is deemed ineligible for benefits under this Policy. |
C. | Benefits Payable After Appeal -In the event that an appeal with respect to entitlement to a benefit is decided in favor of an employee, the benefit will be paid to him or her within 30 days of receiving written notice from the Separation Pay Policy Plan Administrator. |
• | Examination, without charge, in the officer of the Administrator of the Plan, all Plan documents, including copies of all documents which may be filed by the Plan with the U.S. Department of Labor, such as annual reports and Plan descriptions; |
• | Obtain copies of all documents governing the operation of the Plan and other Plan information upon written request to the Administrator of the Plan. The Administrator of the Plan may make reasonable charges for copies; |
• | Receive a summary of any financial reports. If such a summary is required by law, the Plan Administrator will automatically furnish each participant with a copy of the summary annual report. |
• | Your employer will change from Black & Decker, Inc. to Emhart Teknologies, LLC; |
• | You will be a participant in the Management Incentive Compensation Program for the Engineered Fastening Business (Level 1A) for the 2016 Fiscal Year, with a target bonus equal to 70% of your base salary and a maximum bonus equal to 140% of your base salary; |
• | For performance periods beginning with the 2016 fiscal year, you will participate in the Long-Term Performance Award program as a Level 1A employee, with a target opportunity of 70% of your base salary and a 140% of base salary maximum payout. |
• | The Company will reimburse your reasonable cost for Connecticut housing for up to 24 months, until you and your family move to Connecticut, and will assist with your relocation from Maryland to Connecticut pursuant to the Company’s standard relocation policy. |
• | You will continue to receive the transition benefits through December 31, 2017, and, except as modified above, the other benefits set forth in my letter of December 22, 2014. |
Threshold | Target | Max | |
% of Pay | <VALUE1> | <VALUE2> | <VALUE3> |
# 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 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 appropriate circumstances. All decisions or interpretations of the Committee with respect to any question arising in respect of the Performance Awards shall be binding, conclusive and final. The waiver by the Company of any provision of this document or any other Award document shall not operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision of this document or any other Award document. The validity and construction of the terms of this document and any other Award document shall be governed by the laws of the State of Connecticut. The terms and conditions set forth in this document and any other Award document are subject in all respects to the terms and conditions of the Plan, which shall be controlling. The Participant agrees to execute such other agreements, documents or assignments as may be necessary or desirable to effect the purposes hereof. |
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. |
Fiscal Year | |||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
Earnings from continuing operations before income taxes and non-controlling interest | $ | 1,150.8 | $ | 1,084.8 | $ | 587.6 | $ | 533.1 | $ | 666.1 | |||||||||
Add: | |||||||||||||||||||
Interest expense | 180.4 | 177.2 | 160.1 | 144.0 | 140.4 | ||||||||||||||
Portion of rents representative of interest factor | 12.0 | 13.6 | 14.6 | 14.4 | 14.6 | ||||||||||||||
Distributed income of equity investees | — | — | — | — | 2.8 | ||||||||||||||
Income as adjusted | $ | 1,343.2 | $ | 1,275.6 | $ | 762.3 | $ | 691.5 | $ | 823.9 | |||||||||
Fixed charges: | |||||||||||||||||||
Interest expense | $ | 180.4 | $ | 177.2 | $ | 160.1 | $ | 144.0 | $ | 140.4 | |||||||||
Portion of rents representative of interest factor | 12.0 | 13.6 | 14.6 | 14.4 | 14.6 | ||||||||||||||
Fixed charges | $ | 192.4 | $ | 190.8 | $ | 174.7 | $ | 158.4 | $ | 155.0 | |||||||||
Ratio of earnings to fixed charges | 7.0 | 6.7 | 4.4 | 4.4 | 5.3 |
Jurisdiction of Incorporation/ | ||
Corporate Name | Organization | |
Domestic Subsidiaries | United States | |
AeroScout LLC | Delaware | |
AeroScout (US)LLC | Delaware | |
Asia Fastening (US), Inc. | Delaware | |
BD Abrasive LLC | Delaware | |
B&D Holdings, LLC | Maryland | |
BDK Faucet Holdings Inc. | Delaware | |
Black & Decker (Ireland) Inc. | Delaware | |
Black & Decker (U.S.) Inc. | Maryland | |
Black & Decker de Panama LLC | Maryland | |
Black & Decker Funding Corporation | Delaware | |
Black & Decker Group, LLC | Delaware | |
Black & Decker Healthcare Management Inc. | Maryland | |
Black & Decker Holdings, LLC | Delaware | |
Black & Decker Inc. | Delaware | |
Black & Decker India Inc. | Maryland | |
Black & Decker Investment Company, LLC | Delaware | |
Black & Decker Investments (Australia) Limited | Maryland | |
Black & Decker Investments LLC | Maryland | |
Black & Decker Mexfin LLC | Delaware | |
Black & Decker Puerto Rico Inc. | Delaware | |
Black & Decker Shelbyville, LLC | Kentucky | |
Bostitch-Holding, L.L.C. | Delaware | |
CLP2 GP, 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 | |
Devilbiss Air Power Company | Delaware | |
Emglo Products, LLC | Maryland | |
Emhart Harttung Inc. | Delaware | |
Emhart Teknologies LLC | Delaware | |
Hardware City Associates Limited Partnership | Connecticut | |
Infastech Decorah, LLC | Delaware | |
Infologix - DDMS, Inc. | Delaware | |
InfoLogix Systems Corporation | Delaware | |
Infologix, Inc. | Delaware | |
Jafford LLC | Maryland | |
JennCo1, Inc. | Delaware | |
Microalloying International, Inc. | Delaware | |
Newfrey LLC | Delaware | |
Pacom Systems (North America) Inc. | Delaware | |
PIH U.S., Inc. | Alabama | |
Porter-Cable Argentina, LLC | Minnesota | |
RIGHTCO II, LLC | Delaware |
Domestic Subsidiaries (continued) | ||
Sargent & Greenleaf, Inc. | Indiana | |
SBD Cayman LLC | Delaware | |
SBD Insurance, Inc. | Connecticut | |
SBD Property Holdings, LLC | Delaware | |
SecurityCo Solutions, Inc. | Delaware | |
Spiralock Corporation | Michigan | |
Stanley Access Technologies LLC | Delaware | |
Stanley Atlantic LLC | Delaware | |
Stanley Black & Decker Cayman Holdings, Inc. | Delaware | |
Stanley Black & Decker Chile, L.L.C. | Delaware | |
Stanley Black & Decker, Inc. | Connecticut | |
Stanley Canada Holdings, L.L.C. | Delaware | |
Stanley Convergent Security Solutions, Inc. | Delaware | |
Stanley European Holdings, L.L.C. | Delaware | |
Stanley Fastening Systems, L.P. | Delaware | |
Stanley Housing Fund, Inc. | Delaware | |
Stanley Industrial & Automotive, LLC | Delaware | |
Stanley Inspection, L. L. C. | Delaware | |
Stanley International Holdings, Inc. | Delaware | |
Stanley Inspection US, L.L.C. | Alabama | |
Stanley Logistics, L.L.C. | Delaware | |
Stanley Pipeline Inspection, L.L.C. | Delaware | |
Stanley Security Solutions, Inc. | Indiana | |
Stanley Supply & Services, Inc. | Massachusetts | |
The Black & Decker Corporation | Maryland | |
The Farmington River Power Company | Connecticut | |
View Technologies | Delaware | |
Zag USA, Inc. | Delaware |
International Subsidiaries | Jurisdiction of Incorporation/ Organization | |
Black & Decker Argentina S.A. | Argentina | |
Black & Decker Distribution 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 Australia Limited | Australia | |
Powers Rawl Pty. Ltd. | Australia | |
Rawl Australasia Pty. Ltd. | Australia | |
Rawlplug Unit Trust | Australia | |
SBDK Australia GP | Australia | |
Stanley Black & Decker Australia Pty Ltd | Australia | |
Stanley Black & Decker Holdings Australia Pty Ltd. | Australia | |
Stanley Security Solutions Australia Pty Ltd | Australia | |
The Stanley Works Pty. Ltd. | Australia | |
Stanley Black & Decker Austria GmbH | Austria | |
Facom Belgie BVBA | Belgium | |
General Protection BVBA | 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 | |
Black & Decker do Brasil Ltda. | Brazil | |
CRC-Evans PIH Serviços De Tubulação Do Brasil Ltda | Brazil | |
M.HART do Brasil Ltda. | Brazil | |
Refal Industria e Comercio de Rebites e Rebitadeiras Ltda. | Brazil | |
Spiralock do Brasil, Ltda. | Brazil | |
CRC-Evans Canada LTD. | Canada | |
First National AlarmCap LP/Premiere Societe en Commandite Nationale Alarmcap | Canada | |
Mac Tools Canada Inc. | Canada | |
Microtec Enterprises, Inc. | Canada | |
Mont-Hard (Canada) Inc. | Canada | |
Stanley Black & Decker Canada Corporation | Canada | |
Stanley CLP2 | Canada | |
Stanley CLP3 | Canada | |
Stanley Inspection Canada Ltd | Canada | |
XMARK Corporation | Canada | |
Besco Investment Group Co. Ltd. | Cayman Islands | |
Black & Decker (Cayman) Finance Limited | Cayman Islands | |
Black & Decker Manufacturing, Distribution & Global Purchasing Holdings LP | Cayman Islands | |
Chiro (Cayman) Holdings Ltd. | Cayman Islands | |
Jointech Corporation, LTD. | Cayman Islands | |
SBD Holdings Cayman, LP | Cayman Islands | |
Wintech Corporation Limited | Cayman Islands | |
Maquinas y Herramientas Black & Decker de Chile S.A. | Chile | |
Anzi Masterfix Tool Limited Liability Company | China |
International Subsidiaries (continued) | ||
Besco Machinery Industry (Zhejiang) Co., Ltd. | China | |
Black & Decker (Suzhou) Co., LTD. | China | |
Black & Decker (Suzhou) Power Tools Co., LTD. | China | |
Black & Decker (Suzhou) Precision Manufacturing Co., LTD. | China | |
Black & Decker Asia Based Enterprises | China | |
Black & Decker SSC CO., LTD. | China | |
Guangzhou Emhart Fastening System Co., LTD. | China | |
Hefei INTACA Science & Technology Development Co., Ltd. | China | |
Infastech (Shenzhen) Limited | China | |
Infastech Fastening Systems (Wuxi) Limited | China | |
Jiangsu Guoqiang Tools Co., Ltd. | China | |
Jiangsu Tongfeng Hardware Co., Ltd. | China | |
Powers Shanghai Trading Ltd. | China | |
Quingdao Sungun Power Tool Co., Ltd | China | |
Shanghai Eastern Iron Hardware Co., Ltd. | China | |
Stanley Black & Decker Precision Manufacturing (Shenzhen) Co., Ltd. | China | |
Shanghai Emhart Fastening Systems LTD. | China | |
Stanley GMT Hardware Co., Ltd. | China | |
Stanley Works(Wendeng) Tools Co., Ltd. | China | |
The Stanley Works (Langfang) Fastening Systems Co., Ltd. | China | |
The Stanley Works (Shanghai) Co., Ltd. | China | |
The Stanley Works (Shanghai) Management Co., Ltd. | China | |
The Stanley Works (Zhejiang) Industrial Tools Co., Ltd. | China | |
The Stanley Works (Zhongshan) Tool Co., Ltd. | China | |
Black & Decker de Colombia S.A.S. | Colombia | |
Black and Decker de Costa Rica Limitada | Costa Rica | |
Black & Decker (Czech) s.r.o. | Czech Republic | |
Stanley Black & Decker Czech Republic 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 S.A.S. | France | |
Black & Decker Finance SAS | France | |
Bost Garnache Industries S.A.S. | France | |
Dubuis et Cie S.A.S. | France | |
Emhart Fastening & Assembly SNC | France | |
Facom Holding S.A.S. | France | |
Facom S.A.S. | France | |
Novia SWK S.A.S. | France | |
Piole Parolai Equipement S.A.S. | France | |
Pro One Finance S.A.S. | France | |
Societe Miniere et Commerciale S.A.S | France | |
Stanley Black & Decker France S.A.S. | France | |
Stanley Black et Decker France Services S.A.S. | France | |
Stanley Healthcare Solutions France Sàrl | France | |
Stanley Security France SAS | France | |
Stanley Tools S.A.S. | France |
International Subsidiaries (continued) | ||
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 für Brand- und Einbruchmeldesysteme mbH | Germany | |
Stanley Black & Decker Deutschland GmbH | Germany | |
Stanley Security Deutschland Administration GmbH | Germany | |
Stanley Security Deutschland GmbH | Germany | |
Stanley Security Deutschland Holdings GmbH | Germany | |
Tucker GmbH | Germany | |
Stanley Black & Decker (Hellas) EPE | Greece | |
Avdel Holdings (Hong Kong) Limited | Hong Kong | |
BDC International Limited | Hong Kong | |
BD Precision (Hong Kong) Limited | Hong Kong | |
BD SUZHOU (Hong Kong) Limited | Hong Kong | |
BD SUZHOU POWER TOOLS (Hong Kong) Limited | Hong Kong | |
BD XIAMEN (Hong Kong) Limited | Hong Kong | |
Black & Decker Hong Kong Limited | Hong Kong | |
Emhart Guangzhou (Hong Kong) Limited | Hong Kong | |
Hangtech Limited | Hong Kong | |
Infastech (China) Limited | Hong Kong | |
Infastech Company Limited | Hong Kong | |
Niscayah Asia Ltd | Hong Kong | |
Niscayah Investments Ltd | Hong Kong | |
Stanley Black & Decker Hungary Korlatolt Felelossegu Tarsasag | Hungary | |
Stanley Finance Hungary Group Financing Limited Liability Company | Hungary | |
Avfast (India) Pvt. Ltd. | India | |
Infastech Fastening Technologies India Private Limited | India | |
Stanley Black & Decker India Limited | India | |
Stanley Engineered Fastening India Private Limited | India | |
Stanley Security Solutions India Private Limited | India | |
Stanley Works (India) Private Limited | India | |
PT Stanley Black & Decker | Indonesia | |
Baltimore Financial Services Company | Ireland | |
Baltimore Insurance Limited | Ireland | |
BELCO Investments Company | Ireland | |
Black & Decker International Finance 1 Limited | Ireland | |
Black & Decker International Finance 3 Limited | Ireland | |
Chesapeake Falls Holdings Company | Ireland | |
Gamrie Limited | Ireland | |
SBD European Investment | Ireland | |
SBD European Security International | Ireland | |
SBD European Security Investment | Ireland | |
SBD Infastech 1 | Ireland | |
SBD Infastech 2 | Ireland | |
SBD Infastech 3 | Ireland | |
Stanley Black & Decker Finance Unlimited Company | Ireland | |
Stanley Black & Decker International Finance 1 Limited | Ireland | |
Stanley Black & Decker International Finance 2 | Ireland | |
Stanley Black & Decker International Finance 3 | Ireland | |
Stanley Black & Decker International Finance 4 | Ireland |
International Subsidiaries (continued) | ||
Stanley Black & Decker International Finance 5 | Ireland | |
Stanley Black & Decker Ireland | Ireland | |
Stanley Black & Decker Latin American Investment | Ireland | |
Stanley Security Limited | Ireland | |
AeroScout Ltd. | Israel | |
The Stanley Works Israel 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 | |
Nippon Pop Rivets & Fasteners, LTD. | Japan | |
Infastech (Korea) Limited | Korea, Republic of | |
Black & Decker (OVERSEAS) GmbH | Liechtenstein | |
Asia Fastening (Cayman) S.à r.l. | Luxembourg | |
Black & Decker Asia Manufacturing Holdings 1 S.a.r.l. | Luxembourg | |
Black & Decker Asia Manufacturing Holdings 2 S.a.r.l. | Luxembourg | |
Black & Decker Global Holdings S.a.r.l. | Luxembourg | |
Black & Decker International Holdings S.A.R.L | Luxembourg | |
Black & Decker Limited S.A.R.L. | Luxembourg | |
Black & Decker Luxembourg Finance S.C.A. | Luxembourg | |
Black & Decker Luxembourg S.A.R.L. | Luxembourg | |
Black & Decker TransAsia S.a.r.l. | Luxembourg | |
Chesapeake Investments Company S.A.R.L. | Luxembourg | |
Global Fastening (Cayman) S.à r.l. | Luxembourg | |
Infastech S.à r.l. | Luxembourg | |
Global Fastening (Luxembourg) S.a.r.l. | Luxembourg | |
SBD European Security Holdings S.à.r.l. | Luxembourg | |
Stanley Black & Decker Partnership Japan | Luxembourg | |
SBD Niscayah S.a.r.l. | 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 | |
Infastech Holdings (Malaysia) Sdn Bhd | Malaysia | |
Stanley Security Malaysia Sdn Bhd | Malaysia | |
Stanley Works (Malaysia) Sdn Bhd | Malaysia | |
Black & Decker de Reynosa, s. de r.l . de c.v. | Mexico | |
Black & Decker, S.A. de c.v. | Mexico | |
DeWalt Industrial Tools, S.A. de C.V. | Mexico | |
Grupo Black & Decker MEXICO, s. de r.l . de c.v. | Mexico | |
Herramientas Stanley 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 | |
Emhart Teknologies B.V. | Netherlands | |
Interfast B.V. | Netherlands | |
Stanley Black & Decker Asian Holdings B.V. | Netherlands | |
Stanley Black & Decker Netherlands B.V. | Netherlands |
International Subsidiaries (continued) | ||
Stanley European Holdings B.V. | Netherlands | |
Stanley European Holdings II B.V. | Netherlands | |
Stanley Israel Investments B.V. | Netherlands | |
Stanley Security Alarmcentrale B.V. | Netherlands | |
Stanley Security Nederland B.V. | Netherlands | |
Stanley Works Holdings B.V. | Netherlands | |
Stanley Black & Decker NZ Limited | New Zealand | |
Stanley Black & Decker Norway AS | Norway | |
Stanley Security Holdings AS | Norway | |
Stanley Security AS | Norway | |
Black & Decker de Panama, S. de R.L. | Panama | |
Emhart Panama, S.A. | Panama | |
SBD Panama Investments LLC | Panama | |
SBD Panama LLC | Panama | |
Black & Decker del Peru S.A. | Peru | |
Masterfix Poland Ltd. Sp. z.o.o. | Poland | |
Stanley Black & Decker Polska Sp. z o.o. | Poland | |
Stanley Fastening Systems Poland Sp. z o.o. | Poland | |
Stanley Security Portugal, Unipessoal, Lda | Portugal | |
Stanley Black & Decker Limited Liability Company | Russian Federation | |
Aeroscout (Singapore) Pte. Ltd. | Singapore | |
Bellwether Capital Private Limited | Singapore | |
Black & Decker Asia Pacific Pte. Ltd. | Singapore | |
Infastech (Singapore) Pte. Ltd. | Singapore | |
Infastech Intellectual Properties Pte. Ltd. | Singapore | |
Infastech Receivables Company Pte Ltd | Singapore | |
Joint Prosperity Investment Private Limited | Singapore | |
Stanley Security 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 | |
De-Tect Unit Inspection(Pty) Ltd | South Africa | |
Oceaneering Heat Treatment Services (Pty) Ltd | South Africa | |
Unit Inspection (International) (PTY) Ltd | South Africa | |
Unit Inspection Property (Pty) Ltd | South Africa | |
Avdel Spain SA | Spain | |
Pacom Systems Espana SL | Spain | |
Stanley Black & Decker Iberica, S.L. | Spain | |
SBD Holding AB | Sweden | |
Niscayah Group AB | Sweden | |
Niscayah Teknik AB | Sweden | |
Pacom Group AB | Sweden | |
Stanley Black & Decker Sweden AB | Sweden | |
Stanley Security Sverige AB | Sweden | |
Emhart GmbH | Switzerland | |
Sargent & Greenleaf S.A. | Switzerland | |
Stanley Black & Decker Holding GmbH | Switzerland | |
Stanley Black & Decker Sales GmbH | Switzerland | |
Stanley Security Switzerland Sàrl | Switzerland | |
Stanley Works (Europe) GmbH | Switzerland | |
Besco Pneumatic Corporation | Taiwan | |
Fastener Jamher Taiwan Inc. | Taiwan |
International Subsidiaries (continued) | ||
Stanley Chiro International Ltd | Taiwan | |
Stanley Fastening Systems Investment (Taiwan) Co. | Taiwan | |
Stanley Security Solutions Taiwan Ltd. | Taiwan | |
Black & Decker (Thailand) Limited | Thailand | |
Emhart Teknologies (Thailand) LTD. | Thailand | |
Infastech Thai Company Limited | Thailand | |
PIH (Thailand) Company Limited | Thailand | |
Stanley Works Limited | Thailand | |
Stanley Black & Decker Turkey Alet retim, Sanayi ve Ticaret Limited | Turkey | |
Alkhaja Pimex LLC | United Arab Emirates | |
Stanley Middle East FZE | United Arab Emirates | |
Avdel Holding Limited | United Kingdom | |
Avdel UK Limited | United Kingdom | |
Aven Tools Limited | United Kingdom | |
Bandhart | United Kingdom | |
Bandhart Overseas | United Kingdom | |
Black & Decker | United Kingdom | |
Black & Decker Europe | United Kingdom | |
Black & Decker Finance | United Kingdom | |
Black & Decker International | United Kingdom | |
Black & Decker International Finance (UK) Limited | United Kingdom | |
Black & Decker International Finance Holdings (UK) Limited | United Kingdom | |
CRC-Evans Offshore Limited | United Kingdom | |
Dewalt Industrial Power Tool Company Ltd. | United Kingdom | |
ELU Powers Tools Ltd | United Kingdom | |
Emhart International Limited | United Kingdom | |
Global Project (Services) Limited | United Kingdom | |
Meta Vision Systems Limited | United Kingdom | |
Niscayah Holdings Limited | United Kingdom | |
PIH Holdings Limited | United Kingdom | |
PIH Services Limited | United Kingdom | |
Pipeline Induction Heat Limited | United Kingdom | |
Stanley Black & Decker Innovations Limited | United Kingdom | |
Stanley Black & Decker UK Holdings Limited | United Kingdom | |
Stanley Black & Decker UK Limited | United Kingdom | |
Stanley Security Solutions (NI) Limited | United Kingdom | |
Stanley Security Solutions Limited | United Kingdom | |
Stanley Security Solutions-Europe Limited | United Kingdom | |
Stanley U.K. Holding Ltd. | United Kingdom | |
Stanley UK Acquisition Company Limited | United Kingdom | |
Stanley UK Services Limited | United Kingdom | |
SWK (U.K.) Holding Limited | United Kingdom | |
SWK (UK) Limited | United Kingdom | |
The Stanley Works Limited | United Kingdom | |
Tucker Fasteners Limited | United Kingdom | |
Universal Inspection Systems Limited | United Kingdom | |
Black & Decker de Venezuela, C.A. | Venezuela | |
Black & Decker Holdings de Venezuela, C.A. | Venezuela | |
Besco Investment Holdings Ltd. | Virgin Islands, British | |
Infastech/Tri-Star Limited | Virgin Islands, British | |
PIH Services ME Ltd. | 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-3 No. 333-207522) |
Signature | Title | Date | |||
/s/ John F. Lundgren | Chairman and Chief Executive Officer | February 17, 2016 | |||
John F. Lundgren | |||||
/s/ Andrea J. Ayers | Director | February 17, 2016 | |||
Andrea J. Ayers | |||||
/s/ George W. Buckley | Director | February 17, 2016 | |||
George W. Buckley | |||||
/s/ Patrick D. Campbell | Director | February 17, 2016 | |||
Patrick D. Campbell | |||||
/s/ Carlos M. Cardoso | Director | February 17, 2016 | |||
Carlos M. Cardoso | |||||
/s/ Robert B. Coutts | Director | February 17, 2016 | |||
Robert B. Coutts | |||||
/s/ Debra A. Crew | Director | February 17, 2016 | |||
Debra A. Crew | |||||
/s/ Benjamin H. Griswold, IV | Director | February 17, 2016 | |||
Benjamin H. Griswold, IV | |||||
/s/ Anthony Luiso | Director | February 17, 2016 | |||
Anthony Luiso | |||||
/s/ Marianne M. Parrs | Director | February 17, 2016 | |||
Marianne M. Parrs | |||||
/s/ Robert L. Ryan | Director | February 17, 2016 | |||
Robert L. Ryan | |||||
/s/ John F. Lundgren | ||
Date: | February 19, 2016 | John F. Lundgren |
Chairman and Chief Executive Officer |
/s/ Donald Allan Jr. | ||
Date: | February 19, 2016 | Donald Allan Jr. |
Senior 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/ John F. Lundgren |
John F. Lundgren |
Chairman and Chief Executive Officer |
February 19, 2016 |
(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. |
Senior Vice President and Chief Financial Officer |
February 19, 2016 |
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Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Feb. 01, 2016 |
Jul. 03, 2015 |
|
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 | --01-02 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 02, 2016 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 152,335,308 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 16,500,000,000 |
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Gain (loss) on sale of discontinued operation, before tax | $ (19.3) | $ (104.0) | $ (43.0) |
Gain (loss) on sale of discontinued operation, tax | $ 0.8 | $ (7.7) | $ (13.3) |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Net earnings | $ 883.7 | $ 760.9 | $ 490.3 |
Other comprehensive (loss) income: | |||
Currency translation adjustment and other | (504.1) | (726.3) | (99.9) |
Unrealized gains (losses) on cash flow hedges, net of tax | (1.2) | 26.4 | 16.2 |
Gain (Loss) on Derivative Used in Net Investment Hedge, Net of Tax | 49.0 | 39.6 | (13.5) |
Pension losses, net of tax | 32.3 | (110.9) | (13.8) |
Other Comprehensive Income (Loss), Net of Tax | (424.0) | (771.2) | (111.0) |
Comprehensive (loss) income attributable to common shareowners | $ 459.7 | $ (10.3) | $ 379.3 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jan. 02, 2016 |
Jan. 03, 2015 |
---|---|---|
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares unissued | 10,000,000 | 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 | 22,958,447 | 19,777,288 |
Consolidated Statements of Changes in Shareowners' Equity (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Cash dividends declared, (USD per share) | $ 2.14 | $ 2.04 | $ 1.98 |
Treasury Stock, Shares, Acquired | 6,623,709 | 8,300,853 | |
Stock Repurchased During Period, Shares | 9,227,564 | 340,576 | 2,225,732 |
Schedule II - Valuation and Qualifying Accounts |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 03, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 January 2, 2016, January 3, 2015, and December 28, 2013 (Millions of Dollars)
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SIGNIFICANT ACCOUNTING POLICIES |
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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 the fiscal year 2015, 53 weeks in the fiscal year 2014 and 52 weeks in the fiscal year 2013. During the first quarter of 2015, the Company combined the Construction & Do-It-Yourself ("CDIY") business with certain complementary elements of the Industrial and Automotive Repair ("IAR") and Healthcare businesses (formerly part of the Industrial and Security segments, respectively) to form one Tools & Storage business. The Company recast segment net sales and profit for all years presented to align with this change in organizational structure. There was no impact to the consolidated financial statements of the Company as a result of this change. 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. In the third quarter of 2013, the Company classified two small businesses within the Security and Industrial segments as held for sale based on management's intention to sell these businesses. These businesses were sold in 2014. In December 2012, the Company sold its Hardware & Home Improvement business ("HHI"), including the residential portion of Tong Lung Metal Industry Co. ("Tong Lung"), to Spectrum Brands Holdings, Inc. ("Spectrum") for approximately $1.4 billion in cash. The purchase and sale agreement stipulated that the sale occur in a First and Second Closing. The First Closing, which excluded the residential portion of the Tong Lung business, occurred on December 17, 2012 and resulted in an after-tax gain of $358.9 million. The Second Closing, in which the residential portion of the Tong Lung business was sold for $93.5 million in cash, occurred on April 8, 2013 and resulted in an after-tax gain of $4.7 million. The operating results of the above businesses have been reported as discontinued operations in the Consolidated Financial Statements. The consolidated balance sheet as of January 3, 2015 aggregates amounts associated with discontinued operations as described above. Refer to Note T, Discontinued Operations, 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 the previous years have been reclassified to conform to the 2015 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 predominantly 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 valued at the lower of First-In, First-Out (“FIFO”) cost or market 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 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 assesses 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 value 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 by comparing 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 were to exceed the fair value, it would be written down to fair value. No significant goodwill or other intangible asset impairments were recorded during 2015, 2014 or 2013, with the exception of the goodwill and intangible assets related to the Security segment's Spain & Italy operations, which were classified as held for sale in the fourth quarter of 2014 and subsequently sold in 2015. Refer to Note T, Discontinued Operations, for further discussion. 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, 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, 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 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 and are deferred until the subsidiary is sold. Changes in the fair value of derivatives designated as hedges under 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, Derivative 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 $101.7 million in 2015, $121.5 million in 2014, and $121.1 million in 2013. Expense pertaining to cooperative advertising with customers reported as a reduction of Net Sales was $211.9 million in 2015, $206.5 million in 2014, and $172.4 million in 2013. Cooperative advertising with customers classified as SG&A expense amounted to $6.4 million in 2015, $6.2 million in 2014, and $6.0 million in 2013. 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 $183.0 million, $226.2 million, and $201.6 million in 2015, 2014, and 2013, respectively. Distribution costs are classified as SG&A and amounted to $229.3 million, $243.2 million and $229.5 million in 2015, 2014 and 2013, 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 carry forwards. 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 12 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. EARNINGS PER SHARE — Basic earnings per share equals net earnings attributable to Stanley Black & Decker, Inc., less earnings allocated to restricted stock units with non-forfeitable dividend rights (if applicable), 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 January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("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 is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.” The objective of this update is to simplify the presentation of deferred income taxes by requiring all deferred tax assets and liabilities to be classified as noncurrent in the statement of financial position. The amendments in this update do not affect the current requirement to offset deferred tax assets and liabilities for each tax-paying component within a tax jurisdiction. This ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, and can be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.” This update requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The ASU requires that the acquirer record, in the financial statements of the period in which adjustments to provisional amounts are determined, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. This ASU is effective prospectively for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years, with early adoption permitted. In August 2015, the FASB issued ASU 2015-15, "Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements." This ASU provides additional guidance to ASU 2015-03, discussed further below, which did not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. ASU 2015-15 noted that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company will adopt this guidance in the first quarter of 2016 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 are effective for fiscal years beginning after December 15, 2016, 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 April 2015, the FASB issued ASU 2015-04, "Compensation - Retirement Benefits (Subtopic 715): Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets." This update provides a practical expedient that permits a company to measure defined benefit plan assets and obligations using the month-end date that is closest to the company's fiscal year-end and apply that practical expedient consistently from year to year. The practical expedient should be applied consistently to all plans if the company has more than one plan. This ASU is effective prospectively for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. The Company adopted this standard in 2015 and it did not have an impact on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs." The new standard requires that all costs incurred to issue debt be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The standard also indicates that debt issuance costs do not meet the definition of an asset because they provide no future economic benefit. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The new guidance should be applied on a retrospective basis. The Company will adopt this guidance in the first quarter of 2016 and does not expect it to have a material impact on its consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis." The new standard amends the consolidation guidance in ASC 810 and significantly changes the consolidation analysis required under current generally accepted accounting principles. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company does not expect this new guidance to have a significant impact on its consolidated financial statements. In January 2015, the FASB issued ASU 2015-01, "Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items," which eliminates from GAAP the concept of extraordinary items stating that the concept causes uncertainty because it is unclear when an item should be considered both unusual and infrequent and that users do not find the classification and presentation necessary to identify those events and transactions. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted provided the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect this standard to have an impact on its consolidated financial statements upon adoption. In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern," which requires management of a company to evaluate whether there is substantial doubt about the company’s ability to continue as a going concern. This ASU is effective for the annual reporting period ending after December 15, 2016, and for interim and annual reporting periods thereafter, with early adoption permitted. The Company does not expect this standard to have an impact on its consolidated financial statements upon adoption. 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, including industry-specific 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. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements. In April 2014, the FASB issued ASU 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." The amendments contained in this update change the criteria for reporting discontinued operations and enhance the reporting requirements for discontinued operations. Under the revised standard, a discontinued operation must represent a strategic shift that has or will have a major effect on an entity's operations and financial results. Examples could include a disposal of a major line of business, a major geographical area, a major equity method investment, or other major parts of an entity. The revised standard will also allow an entity to have certain continuing cash flows or involvement with the component after the disposal. Additionally, the standard requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. This ASU is effective for reporting periods beginning after December 15, 2014 with early adoption permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issue. The Company adopted this standard in the first quarter of 2015. |
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 trade financing receivables of $182.1 million and $169.5 million at January 2, 2016 and January 3, 2015, respectively, are reported within Other Assets in the Consolidated Balance Sheets. Financing receivables and long-term 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. The Company extended the terms of its accounts receivable sale program to January 5, 2018. According to the terms of that program the Company is 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, must 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 is $100.0 million. The purpose of the program is to provide liquidity to the Company. The Company accounts for these transfers as sales under ASC 860 “Transfers and Servicing.” Receivables are derecognized from the Company’s Consolidated Balance Sheets when the BRS sells those receivables to the Purchaser. The Company has no retained interests in the transferred receivables, other than collection and administrative responsibilities and its right to the deferred purchase price receivable. At January 2, 2016, 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. At January 2, 2016 and January 3, 2015, $100.4 million and $100.3 million, respectively, of net receivables were derecognized. Gross receivables sold amounted to $1,580.4 million ($1,373.5 million, net) for the year ended January 2, 2016 and $1,421.2 million ($1,260.1 million, net) for the year ended January 3, 2015. These sales resulted in a pre-tax loss of $3.9 million and $3.6 million for the years ended January 2, 2016 and January 3, 2015, respectively. These pre-tax losses include servicing fees of $0.6 million for both the years ended January 2, 2016 and January 3, 2015. Proceeds from transfers of receivables to the Purchaser totaled $1,350.4 million and $1,262.1 million for the years ended January 2, 2016 and January 3, 2015, 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 $1,350.4 million and $1,246.8 million for the years ended January 2, 2016 and January 3, 2015, respectively. The Company’s risk of loss following the sale of the receivables is limited to the deferred purchase price receivable, which was $41.1 million at January 2, 2016 and $21.7 million at January 3, 2015. The deferred purchase price receivable will be repaid in cash as receivables are collected, generally within 30 days, and as such the carrying value of the receivable recorded approximates fair value. Delinquencies and credit losses on receivables sold were $0.3 million for both the years ended January 2, 2016 and January 3, 2015. Cash inflows related to the deferred purchase price receivable totaled $416.9 million for the year ended January 2, 2016 and $400.6 million for the year ended January 3, 2015. 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 $651.0 million at January 2, 2016 and $600.4 million at January 3, 2015 were valued at the lower of LIFO cost or market. If the LIFO method had not been used, inventories would have been $26.7 million higher than reported at January 2, 2016 and $34.9 million higher than reported at January 3, 2015. |
PROPERTY, PLANT AND EQUIPMENT |
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PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT
Depreciation and amortization expense associated with property, plant and equipment was as follows:
The amounts above are inclusive of depreciation and amortization expense for discontinued operations amounting to $2.7 million in 2014 and $2.8 million in 2013. |
MERGER AND ACQUISITIONS |
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MERGER AND ACQUISITIONS | ACQUISITIONS 2015 ACQUISITIONS The Company completed two small acquisitions for a total purchase price of $17.2 million, net of cash acquired, which are being integrated into the Company's Security segment. 2013 ACQUISITIONS INFASTECH On February 27, 2013, the Company acquired a 100% ownership interest in Infastech for a total purchase price of $826.4 million, net of cash acquired. Infastech designs, manufactures and distributes highly-engineered fastening technologies and applications for a diverse blue-chip customer base in the industrial, electronics, automotive, construction and aerospace end markets. The acquisition of Infastech added to the Company's strong positioning in specialty engineered fastening, an industry with solid growth prospects, and further expanded the Company's global footprint with its strong concentration in fast-growing emerging markets. Infastech is headquartered in Hong Kong and has been consolidated into the Company's Industrial segment. The Infastech acquisition has been accounted for using the acquisition method of accounting 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 weighted average useful lives assigned to the trade names, customer relationships, and technology were 15 years, 12.7 years, and 10 years, respectively. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the expected cost synergies of the combined business, assembled workforce, and the going concern nature of Infastech. GQ On May 28, 2013, the Company purchased a 60% controlling share in Jiangsu Guoqiang Tools Co., Ltd. ("GQ") for a total purchase price of $48.5 million, net of cash acquired. GQ is a manufacturer and seller of power tools in both domestic and foreign markets. The acquisition of GQ complements the Company's existing power tools product offerings and further diversifies the Company's operations and international presence. GQ is headquartered in Qidong, China and has been consolidated into the Company's Tools & Storage segment. The estimated net liabilities acquired of GQ, including $20.4 million of intangible assets and $3.5 million of cash, totaled approximately $10.8 million and the resulting goodwill was $92.6 million. The total purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values. In December 2015, the Company purchased the remaining 40% interest for a total purchase price of $33.5 million. Four smaller acquisitions were completed during 2013 for a total purchase price of $40.9 million, net of cash acquired, which have been integrated into each of the Company’s three segments. ACTUAL AND PRO-FORMA IMPACT FROM ACQUISITIONS As noted above, the Company completed two small acquisitions in 2015 which did not have a significant impact on the Company's Consolidated Statements of Operations for the year ended January 2, 2016. The Company did not complete any acquisitions during 2014. During 2013, the Company completed the acquisitions of Infastech, GQ and four smaller acquisitions. The following table presents supplemental pro-forma information for continuing operations for the year ended December 28, 2013 as if those acquisitions had occurred on January 2, 2012. This pro-forma information includes acquisition-related charges. 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 these acquisitions on January 2, 2012. In addition, the pro-forma consolidated results do not reflect the actual or expected realization of any cost savings associated with the acquisitions.
The 2013 pro-forma results were calculated by combining the results of Stanley Black & Decker with the stand-alone results of the 2013 acquisitions for their respective pre-acquisition periods. The following adjustments were made to account for certain costs which would have been incurred during these pre-acquisition periods:
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GOODWILL AND INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS GOODWILL — The changes in the carrying amount of goodwill by segment are as follows:
As discussed previously, in the first quarter of 2015 the Company combined the CDIY business with certain complementary elements of the IAR and Healthcare business (formerly part of the Industrial and Security segments, respectively) to form one Tools & Storage business. As a result, the Company reclassed $569 million of goodwill to the Tools & Storage segment as of January 3, 2015 to reflect the change in organizational structure. There was no impact to the consolidated financial statements of the Company as a result of this change. As required by the Company's policy, goodwill and indefinite-lived trade names were tested for impairment in the third quarter of 2015. The Company assessed the fair value of its reporting units based on a discounted cash flow valuation model. 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. The fair values of indefinite-lived trade names were also assessed using a discounted cash flow valuation model. The key assumptions used included discount rates, royalty rates and perpetual growth rates applied to projected sales. Based on the results of the testing in the third quarter of 2015, the Company determined that the fair values of each of its reporting units and indefinite-lived trade names exceeded their respective carrying amounts. During the fourth quarter of 2015, in connection with its quarterly forecasting cycle, the Company updated the forecasted operating results for each of its businesses based on the most recent financial results and best estimates of future operations. The updated forecasts reflected an expected decline in near-term revenue growth and profitability for the Infrastructure reporting unit within the Industrial segment, primarily due to ongoing difficult market conditions in the oil & gas industry, particularly in certain markets such as China and Russia, as well as continued declines in scrap steel prices. Accordingly, in connection with the preparation of the Consolidated Financial Statements for the year ended January 2, 2016, the Company performed an updated impairment analysis with respect to the Infrastructure reporting unit, which included approximately $273 million of goodwill at year-end. Based on this analysis, which included revised assumptions of near-term revenue growth and profitability levels, it was determined that the fair value of the Infrastructure reporting unit exceeded its carrying value by 13%. Therefore, management concluded it was not more-likely-than-not that an impairment had occurred. Management is confident in the long-term viability and success of the Infrastructure reporting unit based on the strong long-term growth prospects of the markets and geographies served, the intensified focus and investments being made in organic growth initiatives (bolstered by the recently implemented SFS 2.0 program), and Infrastructure's leading market position in its respective industries. In the event that future operating results of any of the Company's reporting units do not meet current expectations, management, based upon conditions at the time, would consider taking restructuring or other 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 January 2, 2016 and January 3, 2015 were as follows:
Total indefinite-lived trade names are $1,577.8 million at January 2, 2016 and $1,592.5 million at January 3, 2015. The year-over-year change is due to currency fluctuations. Aggregate intangible assets amortization expense by segment was as follows:
The 2014 and 2013 amounts above are inclusive of amortization expense for discontinued operations amounting to $2.9 million and $4.2 million, respectively. Future amortization expense in each of the next five years amounts to $150.0 million for 2016, $140.3 million for 2017, $131.1 million for 2018, $116.1 million for 2019, $96.5 million for 2020 and $329.7 million thereafter. |
ACCRUED EXPENSES |
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ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses at January 2, 2016 and January 3, 2015 were as follows:
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LONG-TERM DEBT AND FINANCING ARRANGEMENTS | LONG-TERM DEBT AND FINANCING ARRANGEMENTS Long-term debt and financing arrangements at January 2, 2016 and January 3, 2015 follow:
*See full discussion on 2018 Notes Payable below. Aggregate annual principal maturities of long-term debt for each of the years from 2016 to 2020 are $4.7 million, $4.2 million, $980.9 million, $5.0 million, $1.3 million, respectively, and $2,854.9 million thereafter. These maturities represent the principal amounts to be paid and accordingly exclude the remaining $13.2 million of unamortized fair value adjustments made in purchase accounting, which increased the Black & Decker note payable due 2028, as well as a loss of $22.5 million pertaining to fair value adjustments and unamortized interest rate swap termination gains on interest rate swaps as described in Note I, Derivative Financial Instruments. Interest paid during 2015, 2014 and 2013 amounted to $176.6 million, $181.5 million and $172.6 million, respectively. In December 2013, the Company remitted $351.8 million to the Trustee for the redemption of the $300 million of Black & Decker Corporation 5.75% senior notes due 2016. The additional $51.8 million deposited with the Trustee was to ensure that the Trustee would have sufficient funds to redeem the notes in full under the related indenture on the specified redemption date under any and all circumstances. Upon receipt of the funds, the Company’s obligations with respect to the notes and the related indenture were discharged and therefore, the notes were no longer an obligation of the Company. At December 28, 2013, of the $51.8 million paid, the Company had recorded a $42.8 million pre-tax loss related to the anticipated redemption premium and $9.0 million receivable. The loss was offset by gains of $11.9 million related to the release of fair value adjustments made in purchase accounting, $8.1 million from the recognition of gains on previously terminated derivatives and $2.2 million of accrued interest, resulting in a net pre-tax loss of $20.6 million. On January 24, 2014, the Trustee formally discharged the notes for a redemption value of $342.8 million, inclusive of accrued interest and paid the Company the $9.0 million receivable. 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 December 2013, the Company also issued 3,450,000 Equity Units, each with a stated value of $100 and received approximately $334.7 million in cash proceeds, as described in greater detail below. In November 2012, the Company issued $800 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 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 January 2, 2016, the Company's carrying value includes $0.4 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, in whole or in part, at the redemption price plus accrued and unpaid interest if redeemed before July 25, 2017, or at 100% of their principal amount plus accrued and unpaid interest if redeemed after July 25, 2017. At January 2, 2016, the Company's carrying value of its $400.0 million notes payable due 2021 includes a loss of $2.7 million pertaining to the fair value adjustment of fixed-to-floating interest rate swaps, $10.8 million pertaining to the unamortized gain on previously terminated swaps and a $0.2 million unamortized discount on the notes. At January 2, 2016, the Company's carrying value on its $150.0 million notes payable due 2028 includes gains of $3.8 million pertaining to the fair value adjustment of the fixed-to-floating interest rate swaps and $13.2 million associated with fair value adjustments made in purchase accounting. At January 2, 2016, the Company's carrying value of its $400.0 million notes payable due in 2040 includes $36.2 million pertaining to the unamortized loss on previously terminated fixed-to-floating interest rate swaps and a $0.3 million unamortized discount on the notes. At January 2, 2016, the Company's carrying value of its $400.0 million 2053 Junior Subordinated Debentures includes a $2.7 million gain pertaining to the fair value adjustment of the fixed-to-floating interest rate swaps. Unamortized gains and fair value adjustments associated with interest rate swaps are more fully discussed in Note I, Derivative Financial Instruments. Commercial Paper and Credit Facilities At January 2, 2016, and January 3, 2015, the Company had no commercial paper borrowings outstanding against the Company’s $2.0 billion commercial paper program. In December 2015, the Company amended and restated its existing five-year $1.5 billion committed credit facility with the concurrent execution of a new 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 $2.0 billion commercial paper program. As of January 2, 2016, the Company has not drawn on this commitment. In addition, the Company has short-term lines of credit that are primarily uncommitted, with numerous banks, aggregating $743.8 million, of which $644.1 million was available at January 2, 2016. Short-term arrangements are reviewed annually for renewal. At January 2, 2016, the aggregate amount of committed and uncommitted, long- and short-term lines was $2.7 billion, of which $2.5 million was recorded as short-term borrowings at January 2, 2016 excluding commercial paper borrowings outstanding. In addition, $99.8 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 short-term borrowings, primarily commercial paper, for the fiscal years ended January 2, 2016 and January 3, 2015 were 0.4% and 0.2%, respectively. 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 are 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 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: Each Equity Purchase Contract obligates the holders to purchase, on November 17, 2016, for a price of $100, between 1.0122 and 1.2399 shares of the Company’s common stock (subject to customary anti-dilution adjustments) or approximately 3.5 to 4.3 million common shares, respectively. As of January 2, 2016, due to customary anti-dilution provisions, the settlement rate on the Equity Units Stock was 1.0140 (equivalent to a conversion price of approximately $98.62 per common share). If a fundamental change occurs, in certain circumstances, the number of shares of common stock deliverable upon settlement of the Equity Purchase Contracts will be increased by a make-whole amount, resulting in the issuance of a maximum of approximately 6.1 million shares of common stock. Upon settlement of the Equity Purchase Contracts on November 17, 2016, the Company will receive additional cash proceeds or debt extinguishment of $345.0 million. The Junior Subordinated 2018 Notes, described further below, are initially pledged as collateral to secure the holders’ obligations to purchase the Company’s common stock under the terms of the Equity Purchase Contracts. Equity Purchase Contract holders may elect to settle their obligations under the Equity Purchase Contracts early, in cash. Holders of the Equity Purchase Contracts are 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 is made, the related liability is reduced and the difference between the cash payment and the present value of the Contract Adjustment Payment of approximately $0.6 million is accreted to interest expense over the three-year term. As of January 2, 2016, the present value of the Contract Adjustment Payments was $13.6 million. 2018 Junior Subordinated Notes: The $345.0 million aggregate principal amount of the 2018 Junior Subordinated Notes will mature on November 17, 2018. The 2018 Junior Subordinated Notes bear 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 are unsecured and rank subordinate and junior in right of payment to the Company’s existing and future senior indebtedness. The 2018 Junior Subordinated Notes initially rank equally in right of payment with all of the Company’s other unsecured junior subordinated debt. The Company may elect, at its option, to remarket the 2018 Junior Subordinated Notes early during a period beginning on August 12, 2016 and ending October 26, 2016. Unless an early remarketing is successful, the Company will be required to remarket the 2018 Junior Subordinated Notes during a final remarketing period beginning on November 7, 2016 and ending November 14, 2016. Holders of Equity Units may elect not to participate in the remarketing by creating “Treasury Units” (replacing the 2018 Junior Subordinated Notes with zero-coupon U.S. Treasury securities as substitute collateral to secure their obligations under the Equity Purchase Contracts) or “Cash Settled Units” (replacing the 2018 Junior Subordinated Notes with cash as substitute collateral to secure their obligations under the Equity Purchase Contracts), or by settling the Equity Purchase Contracts early in cash prior to November 17, 2016. Upon a successful remarketing, the proceeds attributable to 2018 Junior Subordinated Notes that were components of Equity Units will be used to satisfy in full the Equity Unit holders’ obligations to purchase the Company’s common stock under the Equity Purchase Contracts (or, in the case of an early remarketing, will be used to purchase a portfolio of U.S. Treasury securities, the proceeds of which will be used to satisfy such obligations). At the time of the remarketing: (1) the interest rate on the 2018 Junior Subordinated Notes may be re-set and (2) the ranking of the 2018 Junior Subordinated Notes will change such that they rank senior to all of the Company’s existing and future unsecured junior subordinated debt and junior to all of the Company’s existing and future senior debt. Interest expense of $7.8 million was recorded for both 2015 and 2014 related to the contractual interest coupon on the 2018 Junior Subordinated 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 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. 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. With respect to the impact on the Company, the capped call transactions and Equity Units, when taken together, result in the economic equivalent of having the conversion price on Equity Units at $112.71, the upper strike of the capped call as of January 2, 2016. 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. The capped call transactions may be settled by net share settlement or, at the Company’s option and subject to certain conditions, cash settlement, physical settlement or modified physical settlement (in which case the number of shares the Company will receive will be reduced by a number of shares based on the excess, if any, of the volume-weighted average price of its common stock, as measured under the terms of the capped call transactions, over the upper strike price of the capped call transactions). If the capped call transactions are exercised and the volume-weighted average price per share of common stock, as measured under the terms of the capped call transactions, is greater than the lower strike price of the capped call transactions but not greater than the upper strike price of the capped call transactions, then the value the Company expects to receive from the capped call counterparties will be generally based on the amount of such excess. As a result, the capped call transactions may offset the potential dilution upon settlement of the Equity Purchase Contracts. If, however, the volume-weighted average price per share of common stock, as measured under the terms of the capped call transactions, exceeds the upper strike price of the capped call transactions, the value the Company expects to receive upon settlement of the capped call transactions (or portions thereof) will be approximately equal to (x) the excess of the upper strike price of the capped call transactions over the lower strike price of the capped call transactions times (y) the number of shares of common stock relating to the capped call transactions (or the portions thereof) being exercised, in each case as determined under the terms of the capped call transactions. As a result, the dilution mitigation under the capped call transactions will be limited based on such capped value. See Note J, Capital Stock, for further details on the capped call transactions. 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 (“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 are due November 17, 2018. 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, initially 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 $1.9 million was recorded for 2015, 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 and $26.9 million each for 2014 and 2013, 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 $5.0 million at January 2, 2016, 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 has a lower strike price of $75.00, which corresponds 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 | DERIVATIVE 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, are used to mitigate interest rate exposure, foreign currency exposure and commodity price exposure. Financial instruments are not utilized for speculative purposes. 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. A summary of the fair value of the Company’s derivatives recorded in the Consolidated Balance Sheets at January 2, 2016 and January 3, 2015 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 2015 and 2014, significant cash flows related to derivatives including those that are separately discussed in Cash Flow Hedges, Fair Value Hedges and Net Investment Hedges below resulted in net cash received of $144.4 million and net cash paid of $14.6 million, respectively. CASH FLOW HEDGES — There was a $52.1 million and a $50.9 million after-tax loss as of January 2, 2016 and January 3, 2015, respectively, reported for cash flow hedge effectiveness in Accumulated other comprehensive loss. An after-tax gain of $12.7 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 the twelve months ended January 2, 2016 and January 3, 2015 (in millions):
* Includes ineffective portion and amount excluded from effectiveness testing on derivatives. For 2015 and 2014, the hedged items’ impact to the Consolidated Statement of Operations was a loss of $57.4 million and a loss of $0.2 million, respectively, in Cost of Sales. There was no impact related to the interest rate contracts’ hedged items for any period presented. For 2015, an after-tax gain of $22.4 million and for 2014 and 2013, after-tax losses of $7.5 million and $11.7 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 January 2, 2016, and for January 3, 2015, 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 non-US dollar functional currencies 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 income (loss) for the effective and ineffective portions of the hedge as well as any amounts excluded from effectiveness testing are recorded in Cost of sales. Gains and losses incurred after a hedge has been de-designated are not recorded in Accumulated other comprehensive income (loss), but are recorded directly to the Consolidated Statements of Operations in Other-net. At January 2, 2016, the notional value of the forward currency contracts outstanding was $439.3 million, maturing on various dates through 2017. At January 3, 2015, the notional value of the forward currency contracts outstanding was $369.5 million, maturing on various dates in 2015. 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 income (loss) for the effective and ineffective portions of the hedge as well as any amounts excluded from effectiveness testing are recorded in Cost of sales. At January 2, 2016, the notional value of option contracts outstanding was $197.4 million, maturing on various dates through 2016. As of January 3, 2015, the notional value of purchased option contracts was $185.0 million, maturing on various dates in 2015. 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 2014, the Company entered into interest rate swaps on the first five years of the Company's $400 million 5.75% notes due 2053. In 2012, the Company entered into interest rate swaps with notional values which equaled the Company's $400 million 3.40% notes due 2021 and $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. Previously, the Company entered into interest rate swaps related to certain of its notes payable which were subsequently terminated as discussed below. In 2014, the Company terminated $400 million of interest rate swaps hedging the Company's $400 million 5.20% notes due 2040. These terminations resulted in cash payments of $33.4 million and the resulting loss of $38.9 million was deferred and will be amortized to earnings over the life of the remaining notes. In 2013, the Company repurchased the $300 million 5.75% notes due in 2016 and, as a result, $8.1 million of the previously deferred gain was recognized in earnings at that time. The changes in fair value of the interest rate swaps during the period were recognized in earnings as well as the offsetting changes in fair value of the underlying notes. The notional value of open contracts was $950.0 million as of both January 2, 2016 and January 3, 2015. A summary of the fair value adjustments relating to these swaps is as follows (in millions):
* Includes ineffective portion and amount excluded from effectiveness testing on derivatives. In addition to the fair value adjustments in the table above, the net swap accruals for each period and amortization of the gains on terminated swaps are also reported as a reduction of interest expense and totaled $14.2 million and $19.2 million for 2015 and 2014, respectively. Interest expense on the underlying debt was $47.1 million and $54.6 million for 2015 and 2014, respectively. 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 income (loss) were a gain of $11.8 million and a loss of $37.2 million at January 2, 2016 and January 3, 2015, respectively. As of January 2, 2016, the Company had foreign exchange contracts that mature on various dates through 2016 with notional values totaling $1.9 billion outstanding hedging a portion of its British pound sterling, Mexican peso, Japanese yen, Swedish krona, Euro and Canadian dollar denominated net investment. As of January 3, 2015, the Company had foreign exchange contracts maturing on various dates through 2015 with notional values totaling $1.3 billion outstanding hedging a portion of its British pound sterling, Mexican peso, Japanese yen and Canadian denominated net investment. For the year ended January 2, 2016 and January 3, 2015, maturing foreign exchange contracts resulted in net cash received of $137.7 million and net cash paid of $61.4 million, respectively. Gains and losses on net investment hedges remain in Accumulated other comprehensive income (loss) until disposal of the underlying assets. The pre-tax gain or loss from fair value changes was as follows (in millions):
*Includes ineffective portion and amount excluded from effectiveness testing. 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 contracts outstanding at January 2, 2016 was $2.0 billion of forward contracts maturing on various dates through 2016. The total notional amount of the contracts outstanding at January 3, 2015 was $1.9 billion of forward contracts maturing on various dates through 2015. The income statement impacts related to derivatives not designated as hedging instruments for 2015 and 2014 are as follows (in millions):
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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 January 2, 2016, January 3, 2015, and December 28, 2013. Earnings per Share Computation:
The following weighted-average stock options and warrants 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 Equity Units comprised of $345.0 million of Notes and Equity Purchase Contracts, which obligate 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 2014 and through April 2015. Upon the November 17, 2016 settlement date, the Company will issue approximately 3.5 to 4.3 million shares of common stock, subject to customary anti-dilution adjustments, and expects to receive additional cash proceeds of $345.0 million. COMMON STOCK ACTIVITY — Common stock activity for 2015, 2014 and 2013 was as follows:
The Company repurchased a total of 6,623,709 shares of common stock in 2015. Additionally, the Company net-share settled capped call options on its common stock and received 2,603,855 shares during 2015. For further detail on these transactions, see "Other Equity Arrangements" below. 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. For further detail on these transactions, see "Other Equity Arrangements" below. In March 2015, the Company entered into a forward share purchase contract on its common stock. The contract obligates the Company to pay $350.0 million, plus an additional amount related to the forward component of the contract, to the financial institution counterparty not later than March 2017, or earlier at the Company’s option, for the 3,645,510 shares purchased. The reduction of common shares outstanding was recorded at the inception of the forward share purchase contract 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 obligates 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 and factored into the calculation of weighted average shares outstanding at that time. In April 2013, the Company received 617,037 shares upon settlement of the capped call options purchased in November 2012. In December 2012, upon executing an accelerated share repurchase contract, the Company received 9,345,794 shares. The Company received an additional 1,608,695 shares upon settlement of the contract in April 2013. For further detail on these transactions, see "Other Equity Arrangements" below. In 2011, the Company entered into a forward share purchase contract on its common stock. The contract obligated the Company to pay $350.0 million, plus an additional amount related to the forward component of the contract, to the financial institution counterparty not later than August 2013, or earlier at the Company’s option, for the 5,581,400 shares purchased. The reduction of common shares outstanding was recorded at the inception of the forward share purchase contract and factored into the calculation of weighted average shares outstanding at that time. The Company elected to prepay the forward share purchase contract for $362.7 million in January 2013. In August 2013, the Company physically settled the contract, receiving 5,581,400 shares and $18.8 million from the financial institution counterparty representing a purchase price adjustment. These shares have been 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 January 2, 2016 and January 3, 2015 are as follows:
PREFERRED STOCK PURCHASE RIGHTS — Each outstanding share of common stock has a 1 share purchase right. Each purchase right may 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 do not have voting rights, expire on March 10, 2016, and may be redeemed by the Company at a price of $0.01 per right at any time prior to the tenth day following the public announcement that a person has acquired beneficial ownership of 15% or more of the outstanding shares of common stock. In the event that the Company is acquired in a merger or other business combination transaction, provision shall be made so that each holder of a right (other than a holder who is a 14.9%-or-more shareowner) shall have the right to receive, upon exercise thereof, that number of shares of common stock of the surviving Company having a market value equal to two times the exercise price of the right. Similarly, if anyone becomes the beneficial owner of more than 15% of the then outstanding shares of common stock (except pursuant to an offer for all outstanding shares of common stock which the independent directors have deemed to be fair and in the best interest of the Company), provision will be made so that each holder of a right (other than a holder who is a 14.9%-or-more shareowner) shall thereafter have the right to receive, upon exercise thereof, common stock (or, in certain circumstances, cash, property or other securities of the Company) having a market value equal to two times the exercise price of the right. At January 2, 2016, there were 148,694,959 outstanding rights. 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 Organization 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 2015, 2014 and 2013.
Stock Options: The number of stock options and weighted-average exercise prices are as follows:
At January 2, 2016, the range of exercise prices on outstanding stock options was $30.03 to $109.25. Stock option expense was $16.7 million, $16.5 million and $21.4 million for the years ended January 2, 2016, January 3, 2015 and December 28, 2013, respectively. At January 2, 2016, the Company had $32.6 million of unrecognized pre-tax compensation expense for stock options. This expense will be recognized over the remaining vesting periods which are 2.6 years on a weighted average basis. During 2015, the Company received $122.2 million in cash from the exercise of stock options. The related tax benefit from the exercise of these options is $36.0 million. During 2015, 2014 and 2013, the total intrinsic value of options exercised was $102.7 million, $33.7 million and $72.0 million, respectively. When options are exercised, the related shares are issued from treasury stock. ASC 718, “Compensation — Stock Compensation,” requires the benefit arising from tax deductions in excess of recognized compensation cost to be classified as a financing cash flow. To quantify the recognized compensation cost on which the excess tax benefit is computed, both actual compensation expense recorded and pro-forma compensation cost reported in disclosures are considered. 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. In 2015, 2014 and 2013, the Company reported $21.2 million, $7.3 million and $15.2 million, respectively, of excess tax benefits as a financing cash flow within the proceeds from issuance of common stock caption. Outstanding and exercisable stock option information at January 2, 2016 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. 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 ($71.29 per share for fiscal year 2015 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 2015, 2014 and 2013, 182,039 shares, 128,144 shares and 172,259 shares, respectively, were issued under the plan at average prices of $71.80, $71.69, and $58.59 per share, respectively, and the intrinsic value of the ESPP purchases was $5.4 million, $1.9 million and $3.7 million, respectively. For 2015, the Company received $13.1 million in cash from ESPP purchases, and there is 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 2015, 2014 and 2013, respectively: dividend yield of 2.2%, 2.5% and 2.5%; expected volatility of 19.0%, 25.0% and 28.0%; risk-free interest rates of 0.1% for all three years; and expected lives of one year. The weighted average fair value of those purchase rights granted in 2015, 2014 and 2013 was $31.41, $17.10 and $24.07, respectively. Total compensation expense recognized for ESPP amounted to $5.4 million for 2015, $2.1 million for 2014, and $4.3 million for 2013. Restricted Share Units and Awards: Compensation cost for restricted share units and awards, including restricted shares granted to French employees in lieu of RSU’s, (collectively “RSU’s”) granted to employees is recognized ratably over the vesting term, which varies but is generally 4 years. RSU grants totaled 349,768 shares, 559,955 shares and 368,059 shares in 2015, 2014 and 2013, respectively. The weighted-average grant date fair value of RSU’s granted in 2015, 2014 and 2013 was $107.43, $93.67 and $80.68 per share, respectively. Total compensation expense recognized for RSU’s amounted to $30.9 million, $26.0 million and $32.6 million, in 2015, 2014 and 2013, respectively. The actual tax benefit received in the period the shares were delivered was $14.7 million. The excess tax benefit recognized was $7.0 million, $3.5 million, and $4.9 million in 2015, 2014 and 2013, respectively. As of January 2, 2016, unrecognized compensation expense for RSU’s amounted to $67.5 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 January 2, 2016, 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 2015, 2014 and 2013 was $72.2 million, $64.5 million and $63.0 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. Additionally, the Board of Directors were granted restricted share units for which compensation expense of $1.1 million was recognized for 2015, 2014 and 2013. Long-Term Performance Awards: The Company has granted Long Term Performance Awards (“LTIPs”) under its 2009 and 2013 Long Term Incentive Plans 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 2013, 2014 and 2015. Each grant has separate annual performance goals for each year within the respective three year performance period. Earnings per share and return on capital employed or 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 2016, 2017 and 2018 for the 2013, 2014 and 2015 grants, respectively. Total payouts are based on actual performance in relation to these goals. In 2010, the Company initiated a Working Capital Incentive Plan under its 2009 Long Term Incentive Plan. The program provided executives the opportunity to receive stock in the event certain working capital turn objectives were achieved by June of 2013 and sustained for a period of at least six months. The ultimate issuance of shares occurred in the third quarter of 2013 based on actual performance during the performance period. Expense recognized for these performance awards amounted to $13.8 million in 2015, $11.4 million in 2014, and $9.4 million in 2013. 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. In accordance with ASC 815-40 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 have various expiration dates ranging from April 2016 through September 2016 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. As of January 2, 2016, due to customary market adjustments, the lower and upper strike prices of the remaining options are $85.91 and $106.36, respectively. The aggregate fair value of the remaining options at January 2, 2016 was $48.5 million. 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. In December 2012, the Company entered into a forward starting accelerated share repurchase (“ASR”) contract with certain financial institutions to purchase $850.0 million of the Company's common stock. The Company paid $850.0 million to the financial institutions and received an initial delivery of 9.3 million shares, which reduced the Company's shares outstanding at December 29, 2012. The value of the initial shares received on the date of purchase was $680.0 million, reflecting a $72.76 price per share which was recorded as a treasury share purchase for purposes of calculating earnings per share. In accordance with ASC 815-40, the Company recorded the remaining $170.0 million as a forward contract indexed to its own common stock in additional paid in capital. In April 2013, the Company settled the contract and received 1.6 million shares determined by the average price per share paid by the financial institutions during the purchase period. The average price is calculated using the volume weighted average price ("VWAP") of the Company's stock (inclusive of a VWAP discount) during that period. In November 2012, the Company purchased from certain financial institutions “out-of-the-money” capped call options, subject to adjustments for standard anti-dilution provisions, on 10.1 million shares of its common stock for an aggregate premium of $29.5 million, or an average of $2.92 per share. The purpose of the capped call options was to reduce share price volatility on potential future share repurchases. In accordance with ASC 815-40 the premium paid was recorded as a reduction of Shareowners’ equity. The average lower strike price was $71.43 and the average upper strike price was $79.75, subject to customary market adjustments. The capped call options were net-share settled and the Company received 0.6 million shares in April 2013. The Company recorded the receipt of treasury shares at fair value upon settlement. 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 obligate 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. As of January 2, 2016, due to customary anti-dilution provisions, the settlement rate on the Equity Units Stock was 1.0140 (equivalent to a conversion price of approximately $98.62 per common share). Upon the November 17, 2016 settlement date, the Company will issue approximately 3.5 to 4.3 million shares of common stock, subject to customary anti-dilution adjustments, and expects to receive additional cash proceeds of $345.0 million. If a fundamental change occurs, in certain circumstances, the number of shares of common stock deliverable upon settlement of the Equity Purchase Contracts will be increased by the make-whole amount, resulting in the issuance of a maximum of approximately 6.1 million shares of common stock. Holders may elect to settle their Equity Purchase Contracts early in cash prior to 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. With respect to the impact on the Company, the capped call transactions and Equity Units, when taken together, result in the economic equivalent of having the conversion price on Equity Units at $112.71, the upper strike of the capped call (as of January 2, 2016). Refer to Note H, Long-Term Debt and Financing Arrangements, for further discussion. In accordance with ASC 815-40, 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. The capped call transactions have a term of approximately three years and initially have 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 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 aggregate fair value of the options at January 2, 2016 was $26.3 million. 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”), resulting in cash proceeds to the Company of $632.5 million. In accordance with the Purchase Contracts, on November 17, 2015, the Company issued 6.3 million shares of Convertible Preferred Stock. 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. In accordance with ASC 815-40, 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. |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
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Accumulated Other Comprehensive Income (Loss) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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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 contribute from 1% to 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 $21.1 million, $19.9 million and $18.8 million in 2015, 2014 and 2013, respectively. In addition, approximately 7,200 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. Approximately 3,600 U.S. employees also receive a Core transition benefit, allocations of which range from 1% to 2% of eligible compensation based on age and date of hire. Approximately 1,500 U.S. employees are eligible to receive an additional average 1% contribution actuarially designed to replace previously curtailed pension benefits. Allocations for benefits earned under the Core plan were $22.1 million in 2015, $20.7 million million in 2014 and $21.1 million in 2013. 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 2015, 2014 and 2013, the Company made additional contributions to the ESOP for $7.2 million, $9.4 million, and $9.5 million, respectively, which were used by the ESOP to make additional payments on the 1991 internal loan. These payments triggered the release of 184,753, 230,032 and 219,900 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 $0.8 million in 2015, $0.7 million in 2014 and $1.9 million in 2013. ESOP expense is affected by the market value of the Company’s common stock on the monthly dates when shares are released. The market value of shares released averaged $101.79 in 2015, $88.05 per share in 2014 and $80.71 per share in 2013. 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 $9.7 million in 2015, $10.6 million in 2014 and $12.3 million in 2013, net of the tax benefit which is recorded within equity. 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 $3.8 million, $4.7 million and $6.1 million for 2015, 2014 and 2013, respectively. Both allocated and unallocated ESOP shares are treated as outstanding for purposes of computing earnings per share. As of January 2, 2016, the cumulative number of ESOP shares allocated to participant accounts was 13,661,101, of which participants held 2,482,944 shares, and the number of unallocated shares was 1,880,256. At January 2, 2016, there were 23,189 released shares in the ESOP trust holding account pending allocation. The Company made cash contributions totaling $4.4 million in 2015, $3.4 million in 2014 and $30.7 million in 2013 excluding additional contributions of $7.2 million, $9.4 million and $9.5 million in 2015, 2014 and 2013, respectively, as discussed previously. PENSION AND OTHER BENEFIT PLANS — The Company sponsors pension plans covering most domestic hourly and certain executive employees, and approximately 14,000 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 12,900 participants are covered under these plans. Net periodic post-retirement benefit expense was comprised of the following elements:
Changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss in 2015 are as follows:
The amounts in Accumulated other comprehensive loss expected to be recognized as components of net periodic benefit costs during 2016 total $17.3 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 $2,714.0 million at January 2, 2016 and $2,948.9 million at January 3, 2015. 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:
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 5.60% weighted-average expected rate of return assumption to determine the 2016 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 January 2, 2016 and January 3, 2015 by asset category and the level of the valuation inputs within the fair value hierarchy established by ASC 820 are as follows (in millions):
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 2015, the funded status percentage (total plan assets divided by total projected benefit obligation) of all global pension plans improved from 76% in 2014 to 77%. 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 $52 million to its pension and other post-retirement benefit plans in 2016. 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 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 7.1% for 2016, reducing gradually to 4.5% 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 January 2, 2016 by approximately $1.8 million to $2.0 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:
As discussed in Note T, Discontinued Operations, the Company recorded a pre-tax impairment loss of $60.7 million in the fourth quarter of 2014 in order to measure the Security segment's Spain and Italy operations at their estimated fair values less cost to sell. The estimated fair values were determined using Level 3 inputs, including relevant market information as well as a discounted cash flow analysis based on estimated projections. The Company had no other significant non-recurring fair value measurements, nor any financial assets or liabilities measured using Level 3 inputs, during 2015 and 2014. 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 January 2, 2016 and January 3, 2015:
The other investments relate to the West Coast Loading Corporation ("WCLC") trust and 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 January 2, 2016 and January 3, 2015. 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 has a deferred purchase price receivable related to sales of trade receivables. The deferred purchase price receivable will be repaid in cash as receivables are collected, generally within 30 days, and as such the carrying value of the receivable approximates fair value. Refer to Note I, Derivative 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 other charges primarily consisting of merger and acquisition-related transaction costs, as well as pension curtailments and settlements. Research and development costs, which are classified in SG&A, were $188.0 million, $174.6 million and $170.7 million for fiscal years 2015, 2014 and 2013, respectively. |
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 January 3, 2015 to January 2, 2016 is as follows (in millions):
During 2015, the Company recognized net restructuring charges and asset impairments of $47.6 million. Net severance charges totaled $32.7 million relating to the reduction of approximately 1,300 employees, inclusive of reversals due to the elimination of excess severance accruals and changes in management's strategy for certain prior year actions as a result of new developments during 2015. The Company also recognized $5.1 million of facility closure costs and $9.8 million of asset impairments. The majority of the $58.7 million reserves remaining as of January 2, 2016 is expected to be utilized within the next twelve months. Segments: The $47.6 million of net restructuring charges and asset impairments for the twelve months ended January 2, 2016 includes: $17.6 million of net charges pertaining to the Tools & Storage segment; $28.7 million of net charges pertaining to the Security segment; $12.0 million of net charges pertaining to the Industrial segment; and $10.7 million of net reserve reductions 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 As previously discussed, in the first quarter of 2015 the Company combined the CDIY business with certain complementary elements of the IAR and Healthcare businesses (formerly part of the Industrial and Security segments, respectively) to form one Tools & Storage business. As a result, the Company recast segment financial information for all years to align with this change in organizational structure. There was no impact to the consolidated financial statements of the Company as a result of this change. The Company classifies its business into three reportable segments, which also represent its operating segments: Tools & Storage, Security and Industrial. The Tools & Storage segment is comprised of the Power Tools and Hand Tools & Storage businesses. The Power Tools business includes professional products, consumer products and power tool accessories. 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. Power tool accessories include drill bits, router bits, abrasives and saw blades. The Hand Tools & Storage business sells measuring, leveling and layout tools, planes, hammers, demolition tools, knives, saws, chisels, and industrial and automotive tools. Storage products include tool boxes, sawhorses, medical cabinets, and engineered storage solution products. The Security segment is comprised of the Convergent Security Solutions ("CSS") and Mechanical Access Solutions ("MAS") businesses. The CSS business designs, supplies and installs 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 includes healthcare solutions, which markets asset tracking, infant protection, pediatric protection, patient protection, wander management, fall management, and emergency call products. The MAS business sells automatic doors, commercial hardware, locking mechanisms, electronic keyless entry systems, keying systems, tubular and mortise door locksets. 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 stud welding systems, blind rivets and tools, blind inserts and tools, drawn arc weld studs, 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 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, and income taxes. Refer to Note O, Restructuring Charges and Asset Impairments, for the amount of net restructuring charges by segment, and to Note F, Goodwill and Intangible Assets, for intangible 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 accounts receivable, inventory, other current assets, property, plant and equipment, intangible assets and other miscellaneous assets. Geographic net sales and long-lived assets are attributed to the geographic regions based on the geographic location of each Company subsidiary. 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%, 11%, and 11% of the Tools & Storage segment net sales in 2015, 2014 and 2013, respectively. Sales to Lowes were 14%, 13% and 13% of the Tools & Storage segment net sales in 2015, 2014 and 2013, respectively. In 2013, the Company recorded $165 million of facility closure-related and other charges associated with the merger and other acquisitions across all segments, impacting segment profit by $18 million in Tools & Storage, $20 million in Industrial, and $38 million in Security for the year ended December 28, 2013, with the remainder residing in corporate overhead. GEOGRAPHIC AREAS
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INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES Significant components of the Company’s deferred tax assets and liabilities at the end of each fiscal year were as follows:
The Company adopted ASU 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists," during the first quarter of 2014. This ASU provides that a liability related to an unrecognized tax benefit should be offset against a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. As a result, the Company reclassified $30.1 million of unrecognized tax benefits as of January 2, 2016 and $142.9 million of unrecognized tax benefits as of January 3, 2015, which is reflected in the Operating loss, capital loss and tax credit carryforwards line in the table above. The reduction in the amount of the reclassification is primarily due to the utilization of foreign tax credits during 2015. The Company’s liability on undistributed foreign earnings decreased by $49.3 million during 2015, of which $31.0 million was recorded to the income tax provision and $18.3 million was recorded to currency translation adjustments within Accumulated other comprehensive loss. The amount recorded to currency translation adjustments was driven by the significant fluctuations in foreign exchange rates during 2015, which had the effect of reducing the liability. The amount recorded to the income tax provision is primarily related to a remeasurement of the liability due to a reduction in the taxable earnings and profits of a foreign subsidiary. Net operating loss carryforwards of $1.183 billion as of January 2, 2016, 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 2016 with certain jurisdictions having indefinite carry forward periods. The U.S. federal capital loss carry forward of $672.2 million begins expiring in 2017. The capital loss carryforward is primarily attributable to the sale of shares for the U.S. HHI business during the tax year ended December 29, 2012. The U.S. foreign tax credit carryforwards of $15.7 million and research and development tax credit carryforwards of $1.8 million begin expiring in 2023 and 2035, respectively. 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 $480.7 million and $551.9 million for deferred tax assets existing as of January 2, 2016 and January 3, 2015, respectively. The valuation allowance is 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. Capital losses are only allowed to offset capital gains, of which $38 million (tax effected) was utilized in 2015. The classification of deferred taxes as of January 2, 2016 and January 3, 2015 is as follows:
Income tax expense (benefit) attributable to continuing operations consisted of the following:
Net income taxes paid during 2015, 2014 and 2013 were $191.6 million, $113.7 million and $147.3 million, respectively. The 2015 and 2014 amounts include refunds of $31.0 million and $47.1 million, respectively, primarily related to prior year overpayments and closing of tax audits. The 2013 amount includes refunds of $64.5 million primarily related to the closing of a tax audit and a foreign tax credit carry back claim. The reconciliation of the U.S. federal statutory income tax provision to the income taxes provision on continuing operations is as follows:
The components of earnings from continuing operations before income taxes consisted of the following:
Except for certain legacy Black & Decker foreign earnings, as described below, all remaining undistributed foreign earnings of the Company at January 2, 2016, in the amount of approximately $4.391 billion, are considered to be invested indefinitely or will be remitted substantially free of additional tax. Accordingly, no provision has been made for tax that might be payable upon remittance of such earnings, nor is it practicable to determine the amount of this liability. As of January 2, 2016, the amount of earnings subject to repatriation is $1.312 billion for which a deferred tax liability of $319.9 million exists. 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 January 2, 2016 and January 3, 2015 includes $262.2 million and $261.0 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 decreased by $0.1 million in 2015, increased by $22.0 million in 2014 and increased by $4.1 million in 2013. The liability for potential penalties and interest totaled $59.5 million as of January 2, 2016, $59.6 million as of January 3, 2015, and $37.6 million as of December 28, 2013. 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. At this time, an estimate of the range of reasonably possible outcomes is $5 million to $10 million. The Company is subject to the examination of its income tax returns by the Internal Revenue Service and other tax authorities. Tax years 2008 and 2009 have been settled with the Internal Revenue Service as of December 23, 2014 and tax years 2010, 2011, and 2012 are currently under audit. The Company also files many state and foreign income tax returns in jurisdictions with varying statutes of limitations. Tax years 2011 and forward generally remain subject to examination by most state tax authorities. In significant foreign jurisdictions, tax years 2010 and forward generally remain subject to examination. |
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 $1.6 million due in the future under non-cancelable subleases. Rental expense, exclusive of sublease income, for operating leases was $121.5 million in 2015, $135.9 million in 2014, and $146.2 million in 2013. 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 one 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. As of January 2, 2016, the estimated fair value of assets and remaining obligation for the properties were $39.5 million and $34.4 million, respectively. GUARANTEES — The Company's financial guarantees at January 2, 2016 are as follows:
The Company has guaranteed a portion of the residual value arising from its previously mentioned synthetic leases. The lease guarantees aggregate $34.4 million while the fair value of the underlying assets is estimated at $39.5 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 $78.7 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 $56.9 million and the $16.9 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, while certain products carry 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 January 2, 2016, January 3, 2015, and December 28, 2013:
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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. The Court in this initial phase of 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. The next two phases of trial will address whether the EPA’s proposed remedy for the Site is “arbitrary and capricious”, and if necessary, the 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 $139.7 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 January 2, 2016. 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 31 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 January 2, 2016 and January 3, 2015, the Company had reserves of $170.7 million and $177.3 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 2015 amount, $17.1 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 January 2, 2016, the Company has recorded $18.7 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 January 2, 2016, the Company's cash obligation associated with the aforementioned remediation activities including WCLC is $152.0 million. The range of environmental remediation costs that is reasonably possible is $130.4 million to $260.8 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 60 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, the CPG members voluntarily entered into an AOC on June 18, 2012 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 environmental reserves as of January 2, 2016 and January 3, 2015. 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 proposed plan describes the remedial alternatives considered to address contaminated sediments in the River and identifies the EPA’s preferred alternative - the removal of sediments bank to bank in the lower 8.3 miles of the River and constructing an engineered cap over the dredged area. The preferred alternative would include the removal and disposal of 4.3 million cubic yards of sediment, would cost approximately $1.7 billion according to the EPA’s estimate, and take 5 years to complete. The EPA has 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 the draft RI report in February 2015 and draft FS report in April 2015 for the entire lower seventeen miles of the River. The EPA’s final decision whether to adopt the proposed plan or a different alternative will be made after the EPA has taken into consideration the public comments. According to the EPA, it will issue a Record of Decision regarding the FFS and proposed plan during the first quarter of 2016. 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 has not yet been determined, and the parties that will participate in funding the remediation and their respective allocations are not yet known. 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 0.1% to 3.0%, depending on the expected timing of disbursements. The discounted and undiscounted amount of the liability relative to these sites is $27.5 million and $33.6 million, respectively. The payments relative to these sites are expected to be $7.8 million in 2016, $4.7 million in 2017, $2.0 million in 2018, $1.9 million in 2019, $2.0 million in 2020, and $15.2 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. |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS 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. As a result of this decision, the Company recorded a pre-tax impairment loss of $60.7 million in 2014 to remeasure the disposal group at estimated fair value less costs to sell. In July 2015, the Company completed the sale of these businesses resulting in an insignificant incremental loss. During 2013, the Company classified two small businesses within the Security and Industrial segments as held for sale based on management's intention to sell these businesses. As a result of this decision, the Company recorded pre-tax impairment losses of $22.2 million in 2013 in order to remeasure these businesses at estimated fair value less costs to sell. Both of these businesses were sold in 2014 resulting in an insignificant incremental loss. In December 2012, the Company sold its HHI business, including the residential portion of Tong Lung, to Spectrum Brands Holdings, Inc. ("Spectrum") for approximately $1.4 billion in cash. The purchase and sale agreement stipulated that the sale occur in a First and Second Closing. The First Closing, which excluded the residential portion of the Tong Lung business, occurred on December 17, 2012 and resulted in an after-tax gain of $358.9 million. The Second Closing, in which the residential portion of the Tong Lung business was sold for $93.5 million in cash, occurred on April 8, 2013 and resulted in an after-tax gain of $4.7 million. As a result of these actions, the above businesses have been reported as discontinued operations in the Company's Consolidated Financial Statements. The consolidated balance sheet as of January 3, 2015 aggregates amounts associated with discontinued operations as described above. Summarized results of discontinued operations are presented in the following table:
During 2013, the Company completed the 2012 income tax return filings which included the final calculations of the tax gain on the HHI sale which took place in 2012. As a result of these tax return filings, the Company recorded an income tax benefit of approximately $19.1 million within discontinued operations related to finalization of the taxable gain on the HHI sale. Changes to the original tax gain were driven primarily by the determination of the final purchase price allocation and the finalization of the U.S. tax basis calculation, both of which were finalized during the year. As of January 3, 2015, assets and liabilities held for sale relating to Security Spain and Italy totaled $29.5 million and $23.4 million, respectively. There were no assets or liabilities held for sale as of January 2, 2016. |
SELECTED QUARTERLY FINANCIAL DATA SELECTED QUARTERLY FINANCIAL DATA |
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Quarterly Financial Information [Text Block] | SELECTED QUARTERLY FINANCIAL DATA (unaudited)
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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 the fiscal year 2015, 53 weeks in the fiscal year 2014 and 52 weeks in the fiscal year 2013. During the first quarter of 2015, the Company combined the Construction & Do-It-Yourself ("CDIY") business with certain complementary elements of the Industrial and Automotive Repair ("IAR") and Healthcare businesses (formerly part of the Industrial and Security segments, respectively) to form one Tools & Storage business. The Company recast segment net sales and profit for all years presented to align with this change in organizational structure. There was no impact to the consolidated financial statements of the Company as a result of this change. 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. In the third quarter of 2013, the Company classified two small businesses within the Security and Industrial segments as held for sale based on management's intention to sell these businesses. These businesses were sold in 2014. In December 2012, the Company sold its Hardware & Home Improvement business ("HHI"), including the residential portion of Tong Lung Metal Industry Co. ("Tong Lung"), to Spectrum Brands Holdings, Inc. ("Spectrum") for approximately $1.4 billion in cash. The purchase and sale agreement stipulated that the sale occur in a First and Second Closing. The First Closing, which excluded the residential portion of the Tong Lung business, occurred on December 17, 2012 and resulted in an after-tax gain of $358.9 million. The Second Closing, in which the residential portion of the Tong Lung business was sold for $93.5 million in cash, occurred on April 8, 2013 and resulted in an after-tax gain of $4.7 million. |
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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 predominantly 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 valued at the lower of First-In, First-Out (“FIFO”) cost or market 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 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 assesses 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 value 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 by comparing 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 were to exceed the fair value, it would be written down to fair value. No significant goodwill or other intangible asset impairments were recorded during 2015, 2014 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, 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, 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 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 and are deferred until the subsidiary is sold. Changes in the fair value of derivatives designated as hedges under 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, Derivative 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 $101.7 million in 2015, $121.5 million in 2014, and $121.1 million in 2013. Expense pertaining to cooperative advertising with customers reported as a reduction of Net Sales was $211.9 million in 2015, $206.5 million in 2014, and $172.4 million in 2013. Cooperative advertising with customers classified as SG&A expense amounted to $6.4 million in 2015, $6.2 million in 2014, and $6.0 million in 2013. |
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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 $183.0 million, $226.2 million, and $201.6 million in 2015, 2014, and 2013, respectively. Distribution costs are classified as SG&A and amounted to $229.3 million, $243.2 million and $229.5 million in 2015, 2014 and 2013, 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 carry forwards. 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 12 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. |
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EARNINGS PER SHARE | EARNINGS PER SHARE — Basic earnings per share equals net earnings attributable to Stanley Black & Decker, Inc., less earnings allocated to restricted stock units with non-forfeitable dividend rights (if applicable), 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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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment |
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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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MERGER AND ACQUISITIONS (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the estimated fair values of major assets acquired and liabilities assumed:
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Pro Forma Impact from Acquisitions | In addition, the pro-forma consolidated results do not reflect the actual or expected realization of any cost savings associated with the acquisitions.
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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 January 2, 2016 and January 3, 2015 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 January 2, 2016 and January 3, 2015 were as follows:
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LONG-TERM DEBT AND FINANCING ARRANGEMENTS (Tables) |
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Long-Term Debt and Financing Arrangements | Long-term debt and financing arrangements at January 2, 2016 and January 3, 2015 follow:
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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 value of the Company’s derivatives recorded in the Consolidated Balance Sheets at January 2, 2016 and January 3, 2015 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 the twelve months ended January 2, 2016 and January 3, 2015 (in millions):
* 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 (in millions):
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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 (in millions):
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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 2015 and 2014 are as follows (in millions):
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CAPITAL STOCK (Tables) |
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Jan. 02, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 January 2, 2016, January 3, 2015, and December 28, 2013. Earnings per Share Computation:
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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 and warrants 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 2015, 2014 and 2013 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 January 2, 2016 and January 3, 2015 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 are as follows:
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Outstanding and Exercisable Stock Option | Outstanding and exercisable stock option information at January 2, 2016 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 January 2, 2016, 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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Jan. 02, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 2015 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 $2,714.0 million at January 2, 2016 and $2,948.9 million at January 3, 2015. 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 January 2, 2016 and January 3, 2015 by asset category and the level of the valuation inputs within the fair value hierarchy established by ASC 820 are as follows (in millions):
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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 12,900 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 02, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 January 2, 2016 and January 3, 2015:
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RESTRUCTURING AND ASSET IMPAIRMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restructuring Reserve Activity | A summary of the restructuring reserve activity from January 3, 2015 to January 2, 2016 is as follows (in millions):
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BUSINESS SEGMENTS AND GEOGRAPHIC AREAS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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Jan. 02, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 classification of deferred taxes as of January 2, 2016 and January 3, 2015 is as follows:
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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 taxes provision on continuing operations is as follows:
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Components of Earnings from Continuing Operations Before Income Taxes | The components of earnings from continuing operations before income taxes consisted of the following:
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Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to the unrecognized tax benefits:
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COMMITMENTS AND GUARANTEES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 January 2, 2016 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 January 2, 2016, January 3, 2015, and December 28, 2013:
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DISCONTINUED OPERATIONS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 02, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Results, Assets and Liabilities of Divested Businesses | Summarized results of discontinued operations are presented in the following table:
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Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
||||||||
Allowance for Doubtful Accounts | ||||||||||
Movement in Valuation Allowances and Reserves | ||||||||||
Beginning balance | $ 60.7 | $ 64.4 | $ 58.7 | |||||||
Charged to Costs and Expenses | 27.3 | 20.9 | 14.2 | |||||||
Charged To Other Accounts | [1],[2] | 0.7 | 8.3 | 5.2 | ||||||
Deductions | [3] | (15.8) | (16.3) | (13.7) | ||||||
Ending balance | 72.9 | 60.7 | 64.4 | |||||||
Tax Valuation Allowance | ||||||||||
Movement in Valuation Allowances and Reserves | ||||||||||
Beginning balance | 551.9 | 549.7 | 545.2 | |||||||
Charged to Costs and Expenses | 30.5 | 90.0 | 3.8 | |||||||
Charged To Other Accounts | [1],[2] | 1.7 | 16.3 | 14.6 | ||||||
Deductions | [3] | (103.4) | (71.5) | (13.9) | ||||||
Ending balance | $ 480.7 | $ 551.9 | $ 549.7 | |||||||
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ACCOUNTS AND NOTES RECEIVABLE (Detail) - USD ($) $ in Millions |
Jan. 02, 2016 |
Jan. 03, 2015 |
---|---|---|
Receivables [Abstract] | ||
Trade accounts receivable | $ 1,165.0 | $ 1,204.6 |
Trade notes receivable | 130.6 | 136.4 |
Other accounts receivable | 109.1 | 116.4 |
Gross accounts and notes receivable | 1,404.7 | 1,457.4 |
Allowance for doubtful accounts | (72.9) | (60.7) |
Accounts and notes receivable, net | $ 1,331.8 | $ 1,396.7 |
INVENTORIES (Detail) - USD ($) $ in Millions |
Jan. 02, 2016 |
Jan. 03, 2015 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished products | $ 1,085.0 | $ 1,105.0 |
Work in process | 136.1 | 141.4 |
Raw materials | 305.3 | 316.3 |
Total | $ 1,526.4 | $ 1,562.7 |
INVENTORIES - Additional Information (Detail) - USD ($) $ in Millions |
Jan. 02, 2016 |
Jan. 03, 2015 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Net inventory amount valued at lower of LIFO cost or market | $ 651.0 | $ 600.4 |
Increase in inventories if LIFO method had not been used | $ 26.7 | $ 34.9 |
PROPERTY, PLANT AND EQUIPMENT (Detail) - USD ($) $ in Millions |
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
---|---|---|---|
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | $ 3,166.8 | $ 3,080.7 | |
Less: accumulated depreciation and amortization | (1,716.6) | (1,626.6) | |
Property, Plant and Equipment, net | 1,450.2 | 1,454.1 | $ 1,478.6 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | 129.2 | 136.3 | |
Land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | 36.0 | 34.9 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | 525.3 | 542.8 | |
Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | 98.9 | 89.8 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | 1,979.9 | 1,895.9 | |
Computer software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant & equipment, gross | $ 397.5 | $ 381.0 |
Depreciation and Amortization Expense Associated with Property, Plant and Equipment (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 219.2 | $ 229.5 | $ 208.7 |
Amortization | 37.7 | 33.9 | 29.3 |
Depreciation and amortization expense | $ 256.9 | 263.4 | 238.0 |
Depreciation and amortization expense, discontinued operations | $ 2.7 | $ 2.8 |
MERGER AND ACQUISITIONS - Estimated Fair Values of Major Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions |
Jan. 02, 2016 |
Jan. 03, 2015 |
May. 28, 2013 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 7,084.3 | $ 7,275.5 | |
GQ [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 3.5 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 20.4 | ||
Total identifiable net assets | (10.8) | ||
Goodwill | $ 92.6 |
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 03, 2015 |
Dec. 28, 2013 |
Jan. 02, 2016 |
|
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets, discontinued operations | $ 2.9 | $ 4.2 | |
Gross Carrying Amount | 2,326.1 | $ 2,252.9 | |
Accumulated Amortization | (1,166.9) | (1,289.2) | |
Patents and copyrights | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 52.8 | 50.6 | |
Accumulated Amortization | (43.9) | (44.2) | |
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 165.7 | 164.8 | |
Accumulated Amortization | (89.6) | (100.8) | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,832.0 | 1,774.2 | |
Accumulated Amortization | (893.1) | (995.5) | |
Other intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 275.6 | 263.3 | |
Accumulated Amortization | $ (140.3) | $ (148.7) |
GOODWILL AND INTANGIBLE ASSETS - Aggregate Intangible Assets Amortization Expense by Segment (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 7,084.3 | $ 7,275.5 | |
Amortization of intangible assets, discontinued operations | 2.9 | $ 4.2 | |
Amortization of intangible Assets | 157.1 | 186.4 | 203.3 |
Construction and Do It Yourself | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 3,343.4 | 3,445.7 | |
Amortization of intangible Assets | 39.0 | 40.7 | 47.2 |
Security Segment Business [Domain] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 2,317.2 | 2,398.0 | |
Industrial Segment | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 1,423.7 | 1,431.8 | |
Amortization of intangible Assets | 56.8 | 66.9 | 65.4 |
Securities Industry [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible Assets | $ 61.3 | $ 78.8 | $ 90.7 |
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Apr. 04, 2015 |
Jan. 03, 2015 |
Dec. 28, 2013 |
Jan. 02, 2016 |
|
Goodwill [Line Items] | ||||
Total indefinite-lived trade names | $ 1,592.5 | $ 1,577.8 | ||
Amortization of intangible assets, discontinued operations | $ 2.9 | $ 4.2 | ||
Future amortization expense in 2013 | 150.0 | |||
Future amortization expense in 2014 | 140.3 | |||
Future amortization expense in 2015 | 131.1 | |||
Future amortization expense in 2016 | 116.1 | |||
Future amortization expense in 2017 | 96.5 | |||
Future amortization expense thereafter | $ 329.7 | |||
Tools & Storage [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Transfers | $ 569.0 |
ACCRUED EXPENSES (Detail) - USD ($) $ in Millions |
Jan. 02, 2016 |
Jan. 03, 2015 |
---|---|---|
Payables and Accruals [Abstract] | ||
Payroll and related taxes | $ 271.8 | $ 282.7 |
Income and other taxes | 157.6 | 139.2 |
Customer rebates and sales returns | 66.5 | 71.3 |
Insurance and benefits | 71.8 | 77.2 |
Accrued restructuring costs | 58.7 | 97.6 |
Derivative financial instruments | 49.8 | 95.0 |
Warranty costs | 67.8 | 69.2 |
Deferred revenue | 89.2 | 84.4 |
Payment on Forward Share Purchase Contract | 150.0 | 0.0 |
Other | 278.7 | 305.3 |
Total | $ 1,261.9 | $ 1,221.9 |
DERIVATIVE FINANCIAL INSTRUMENTS - Fair Value Adjustments Relating to Swaps (Detail) - USD ($) $ in Millions |
1 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Feb. 28, 2014 |
Dec. 31, 2013 |
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
Oct. 31, 2012 |
Jan. 31, 2012 |
Jan. 01, 2011 |
Nov. 30, 2010 |
|
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||
Long-term debt, interest rate | 2.45% | 4.25% | |||||||
Interest Rate Derivative Liabilities, at Fair Value | $ 400.0 | ||||||||
Payments for Derivative Instrument, Financing Activities | $ 33.4 | ||||||||
Deferred Gain (Loss) on Discontinuation of Interest Rate Fair Value Hedge | 38.9 | ||||||||
Long-term debt, face amount | $ 632.5 | ||||||||
Fair Value Hedges | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||
Derivative, Loss on Derivative | $ 14.2 | 19.2 | |||||||
Derivative, Notional Amount | 950.0 | ||||||||
Interest Expense, Debt | 47.1 | 54.6 | |||||||
Fair Value Hedges | Interest expenses | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||
Gain/(Loss) on Swaps | (11.8) | 123.5 | |||||||
Gain /(Loss) on Borrowings | $ (11.8) | $ 123.9 | |||||||
Notes 7 Point 05 Percent Due 2028 [Member] | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||
Long-term debt, interest rate | 7.05% | 7.05% | |||||||
Notes 7 Point 05 Percent Due 2028 [Member] | Interest Rate Risk [Member] | Fair Value Hedges | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||
Derivative, Notional Amount | $ 150.0 | ||||||||
Notes 5 Point 75 Percent Due 2016 [Member] | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||
Long-term debt, interest rate | 5.75% | ||||||||
Long-term debt, face amount | $ 300.0 | ||||||||
Notes 5 Point 75 Percent Due 2016 [Member] | Interest Rate Risk [Member] | Fair Value Hedges | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||
Long-term debt, interest rate | 5.75% | ||||||||
Unrealized Gain (Loss) on Derivatives | $ 8.1 | ||||||||
Notes payable due 2028 | Interest Rate Risk [Member] | Fair Value Hedges | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||
Long-term debt, interest rate | 7.05% | ||||||||
Notes 5 Point 20 Percent Due 2040 [Member] | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||
Long-term debt, interest rate | 5.20% | 5.20% | |||||||
Notes 5 Point 20 Percent Due 2040 [Member] | Interest Rate Risk [Member] | Fair Value Hedges | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||
Long-term debt, interest rate | 5.20% | ||||||||
Derivative, Notional Amount | $ 400.0 | ||||||||
Notes 3 Point 4 Percent Due in 2021 [Member] | Interest Rate Risk [Member] | Fair Value Hedges | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||||||
Long-term debt, interest rate | 3.40% | ||||||||
Derivative, Notional Amount | $ 400.0 |
DERIVATIVE FINANCIAL INSTRUMENTS - Details of Foreign Exchange Contracts Pre-Tax Amounts (Detail) - USD ($) $ in Millions |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
Oct. 31, 2012 |
Jan. 01, 2011 |
Nov. 30, 2010 |
|||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 632.5 | |||||||
Long-term debt, interest rate | 2.45% | 4.25% | ||||||
Payments for (Proceeds from) Derivative Instrument, Investing Activities | $ (137.7) | $ 61.4 | $ (3.6) | |||||
Cash Flow Hedges | Foreign Exchange Forward | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||||
Derivative, Notional Amount | 439.3 | 369.5 | ||||||
Cash Flow Hedges | Foreign Exchange Contracts | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||||
Amount Recorded in OCI Gain (Loss) | 52.5 | 40.6 | ||||||
Ineffective Portion Recorded in Income Statement | [1] | 0.0 | 0.0 | |||||
Cash Flow Hedges | Foreign Exchange Option [Member] | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||||
Derivative, Notional Amount | 197.4 | 185.0 | ||||||
Fair Value Hedges | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||||
Derivative, Notional Amount | 950.0 | |||||||
Net Investment Hedging | Foreign Exchange Contracts | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||||
Accumulated Other Comprehensive Income Loss Cumulative Changes In Net Gain Loss From Hedging Activities Effect Net Of Tax | (11.8) | (37.2) | ||||||
Payments for (Proceeds from) Derivative Instrument, Investing Activities | 137.7 | 61.4 | ||||||
Net Investment Hedging | Foreign Exchange Contracts | Other, net | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||||
Amount Recorded in OCI Gain (Loss) | 75.5 | (64.0) | ||||||
Effective Portion Recorded in Income Statement | 0.0 | 0.0 | ||||||
Ineffective Portion Recorded in Income Statement | 0.0 | 0.0 | ||||||
Notes 5 Point 75 Percent Due 2016 [Member] | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 300.0 | |||||||
Long-term debt, interest rate | 5.75% | |||||||
Notes 5 Point 75 Percent Due 2016 [Member] | Fair Value Hedges | Interest Rate Risk [Member] | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||||
Long-term debt, interest rate | 5.75% | |||||||
Notes 3 Point 4 Percent Due in 2021 [Member] | Fair Value Hedges | Interest Rate Risk [Member] | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||||
Long-term debt, interest rate | 3.40% | |||||||
Derivative, Notional Amount | $ 400.0 | |||||||
Currency British Pound Sterling [Member] | Net Investment Hedging | Foreign Exchange Contracts | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||||||||
Derivative, Notional Amount | $ 1,900.0 | $ 1,300.0 | ||||||
|
DERIVATIVE FINANCIAL INSTRUMENTS - Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments (Detail) - USD ($) $ in Millions |
1 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2013 |
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
Jan. 01, 2011 |
|
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 2.45% | 4.25% | |||
Amount of gain (loss) recorded in Income on derivative, year to date | $ 8.1 | ||||
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 | $ (8.9) | $ (75.1) | |||
Not Designated as Hedging Instrument | Forward Contracts | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Derivative, Notional Amount | 2,000.0 | $ 1,900.0 | |||
Fair Value Hedging [Member] | |||||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||||
Derivative, Notional Amount | $ 950.0 | ||||
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 |
1 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2013 |
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
Oct. 31, 2012 |
Jan. 31, 2012 |
Jan. 01, 2011 |
Nov. 30, 2010 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Payments for (Proceeds from) Derivative Instruments | $ 144.4 | $ 14.6 | ||||||
Long-term debt, face amount | $ 632.5 | |||||||
Long-term debt, interest rate | 2.45% | 4.25% | ||||||
Matured foreign exchange contracts, net cash payment | $ (137.7) | $ 61.4 | $ (3.6) | |||||
Notes 5 Point 20 Percent Due 2040 [Member] | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Long-term debt, interest rate | 5.20% | 5.20% | ||||||
Notes payable due 2016 | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Long-term debt, face amount | $ 300.0 | |||||||
Long-term debt, interest rate | 5.75% | |||||||
Not Designated as Hedging Instrument | Forward Contracts | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Derivative, Notional Amount | $ 2,000.0 | $ 1,900.0 | ||||||
Cash Flow Hedges | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
After-tax gain (loss) for cash flow hedge effectiveness in accumulated other comprehensive loss | (52.1) | (50.9) | ||||||
Gain (Loss) reclassified from OCI to income (Effective Portion) | (22.4) | (7.5) | $ (11.7) | |||||
Cash Flow Hedges | Foreign Exchange Contracts | Cost of Sales | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Hedged item impact on Consolidated Statement of Operations | 57.4 | (0.2) | ||||||
Gain (Loss) reclassified from OCI to income (Effective Portion) | 57.4 | (0.2) | ||||||
Cash Flow Hedges | Interest Rate Swap | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Derivative, Notional Amount | $ 400.0 | |||||||
Cash Flow Hedges | Foreign Exchange Forward | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
De-designated forward currency contracts, maturity year | 2017 | |||||||
Derivative, Notional Amount | $ 439.3 | 369.5 | ||||||
Cash Flow Hedges | Foreign Exchange Option | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Derivative, Notional Amount | 197.4 | 185.0 | ||||||
Fair Value Hedges | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Derivative, Notional Amount | 950.0 | |||||||
Net swap accruals and amortization of gains on terminated swaps | 14.2 | 19.2 | ||||||
Interest Expense, Debt | 47.1 | 54.6 | ||||||
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 5 Point 20 Percent Due 2040 [Member] | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Derivative, Notional Amount | $ 400.0 | |||||||
Long-term debt, interest rate | 5.20% | |||||||
Fair Value Hedges | Interest Rate Risk [Member] | Notes payable due 2028 | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Long-term debt, interest rate | 7.05% | |||||||
Fair Value Hedges | Interest Rate Risk [Member] | Notes payable due 2016 | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Long-term debt, interest rate | 5.75% | |||||||
Gain recognized in income | $ 8.1 | |||||||
Net Investment Hedging | Foreign Exchange Contracts | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gain (loss) included in accumulated other comprehensive income (loss) | (11.8) | (37.2) | ||||||
Matured foreign exchange contracts, net cash payment | 137.7 | 61.4 | ||||||
Net Investment Hedging | Foreign Exchange Contracts | Currency British Pound Sterling [Member] | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Derivative, Notional Amount | $ 1,900.0 | $ 1,300.0 |
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 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 02, 2016 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Jan. 03, 2015 |
Sep. 27, 2014 |
Jun. 28, 2014 |
Mar. 29, 2014 |
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Numerator | |||||||||||
Net earnings attributable to Stanley Black & Decker, Inc. | $ 267.2 | $ 234.1 | $ 235.7 | $ 166.8 | $ 219.3 | $ 246.4 | $ 221.8 | $ 169.7 | $ 903.8 | $ 857.2 | $ 520.0 |
Net loss from discontinued operations | 1.7 | 5.4 | 8.5 | 4.5 | 73.5 | 9.7 | 5.3 | 7.8 | 20.1 | 96.3 | 29.7 |
Net earnings | $ 265.5 | $ 228.7 | $ 227.2 | $ 162.3 | $ 145.8 | $ 236.7 | $ 216.5 | $ 161.9 | 883.7 | 760.9 | 490.3 |
Less: Earnings attributable to participating restricted stock units ("RSU's") | 0.0 | 0.0 | 0.2 | ||||||||
Net Earnings - basic | 883.7 | 760.9 | 490.1 | ||||||||
Net Earnings - diluted | $ 883.7 | $ 760.9 | $ 490.3 | ||||||||
Denominator | |||||||||||
Basic earnings per share -- weighted-average shares | 148,234 | 156,090 | 155,237 | ||||||||
Potential Dilutive Securities That Could Be Included In Computation Of Earnings Per Share Amount | 4,472 | 3,647 | 3,539 | ||||||||
Diluted earnings per share -- weighted-average shares | 152,706 | 159,737 | 158,776 | ||||||||
Basic earnings per share of common stock: | |||||||||||
Continuing operations (USD per share) | $ 1.83 | $ 1.60 | $ 1.59 | $ 1.10 | $ 1.41 | $ 1.57 | $ 1.42 | $ 1.09 | $ 6.10 | $ 5.49 | $ 3.35 |
Discontinued operations (USD per share) | (0.01) | (0.04) | (0.06) | (0.03) | (0.47) | (0.06) | (0.03) | (0.05) | (0.14) | (0.62) | (0.19) |
Total basic earnings per share of common stock (USD per share) | 1.82 | 1.57 | 1.53 | 1.07 | 0.94 | 1.51 | 1.38 | 1.04 | 5.96 | 4.87 | 3.16 |
Diluted earnings per share of common stock: | |||||||||||
Continuing operations (USD per share) | 1.78 | 1.55 | 1.54 | 1.07 | 1.37 | 1.53 | 1.39 | 1.07 | 5.92 | 5.37 | 3.28 |
Discontinued operations (USD per share) | (0.01) | (0.04) | (0.06) | (0.03) | (0.46) | (0.06) | (0.03) | (0.05) | (0.13) | (0.60) | (0.19) |
Total diluted earnings per share of common stock (USD per share) | $ 1.77 | $ 1.52 | $ 1.49 | $ 1.04 | $ 0.91 | $ 1.47 | $ 1.36 | $ 1.02 | $ 5.79 | $ 4.76 | $ 3.09 |
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 |
12 Months Ended | |||
---|---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
Oct. 03, 2015 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Long-term debt, including current maturities | $ 3,841.7 | $ 3,845.7 | ||
Common Stock, Par or Stated Value Per Share | $ 2.5 | $ 2.5 | ||
Common Stock, Shares, Issued | 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 | 646,000 | 634,000 | 307,000 | |
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 | ||
Minimum | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common Stock, Shares, Issued | 3.5 | |||
Maximum | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common Stock, Shares, Issued | 4.3 | |||
Common Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Equity Units Conversion Rate Number Of Common Stock Shares | 1.0140 | |||
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 | ||
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 | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2013 |
Dec. 29, 2012 |
Nov. 30, 2012 |
Nov. 30, 2010 |
Apr. 04, 2015 |
Jun. 29, 2013 |
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
Dec. 31, 2011 |
Oct. 03, 2015 |
Oct. 31, 2014 |
Aug. 01, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Treasury Stock, Shares, Acquired | 3,381,162 | 6,623,709 | 8,300,853 | ||||||||||
Option Indexed to Issuer's Equity, Settlement Alternatives, Shares, at Fair Value | 911,077 | 2,603,855 | 1,692,778 | ||||||||||
Forward share purchase contract | $ 362.7 | $ 350.0 | $ 150.0 | $ 350.0 | |||||||||
Cash Settlement on Forward Stock Purchase Contract | $ 0.0 | $ 0.0 | $ (18.8) | ||||||||||
Accelerated Share Repurchases, Initial Delivery of Shares Repurchased | 9,345,794 | 1,608,695 | |||||||||||
Common Stock Share Activity | |||||||||||||
Outstanding, beginning of year | 157,125,450 | 157,125,450 | 155,479,230 | 159,952,027 | |||||||||
Issued from treasury | 6,046,405 | 1,986,796 | 3,828,056 | ||||||||||
Outstanding, end of year | 159,952,027 | 153,944,291 | 157,125,450 | 155,479,230 | |||||||||
Shares subject to the forward share purchase contract | (3,645,510) | (5,249,332) | (1,603,822) | 0 | (5,581,400) | (1,603,822) | (5,581,400) | ||||||
Outstanding, less shares subject to the forward share purchase contract | 148,694,959 | 155,521,628 | 155,479,230 | ||||||||||
Stock Repurchased During Period, Shares | (9,227,564) | (340,576) | (2,225,732) | ||||||||||
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 | 10,094,144 | 9,100,000.0 | 617,037 | 12,200,000.0 |
CAPITAL STOCK - Common Stock Shares Reserved for Issuance under Various Employee and Director Stock Plans (Detail) - shares |
Jan. 02, 2016 |
Jan. 03, 2015 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Common stock shares reserved for issuance | 10,098,668 | 12,450,629 |
Employee stock purchase plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Common stock shares reserved for issuance | 2,104,326 | 2,286,365 |
Other stock-based compensation plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Common stock shares reserved for issuance | 7,994,342 | 10,164,264 |
CAPITAL STOCK - Assumptions used for Black-Scholes valuation of Options (Detail) - Stock options - $ / shares |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average expected volatility | 25.00% | 27.00% | 35.00% |
Dividend yield | 2.00% | 2.20% | 2.50% |
Risk-free interest rate | 1.90% | 1.80% | 1.60% |
Expected term | 5 years 3 months | 5 years 3 months | 5 years 3 months |
Fair value per option | $ 21.94 | $ 19.98 | $ 20.70 |
Weighted average vesting period | 2 years 9 months 18 days | 2 years 9 months 18 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 | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average expected volatility | 25.00% | 27.00% | 35.00% |
Dividend yield | 2.00% | 2.20% | 2.50% |
Risk-free interest rate | 1.90% | 1.80% | 1.60% |
Expected term | 5 years 3 months | 5 years 3 months | 5 years 3 months |
Fair value per option | $ 21.94 | $ 19.98 | $ 20.70 |
CAPITAL STOCK - Number of Stock Options and Weighted-average Exercise Prices (Detail) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Options | |||
Outstanding, beginning of year (in shares) | 7,324,081 | 7,429,262 | 9,056,493 |
Granted (in shares) | 996,250 | 983,750 | 961,250 |
Exercised (in shares) | (2,154,372) | (953,940) | (2,414,697) |
Forfeited (in shares) | (123,120) | (134,991) | (173,784) |
Outstanding, end of year (in shares) | 6,042,839 | 7,324,081 | 7,429,262 |
Exercisable, end of year (in shares) | 3,774,248 | 5,146,400 | 5,310,381 |
Price | |||
Outstanding, beginning of year (USD per share) | $ 67.01 | $ 61.69 | $ 56.90 |
Granted (USD per share) | 109.23 | 95.18 | 79.72 |
Exercised (USD per share) | 56.70 | 54.02 | 50.75 |
Forfeited (USD per share) | 100.99 | 85.01 | 80.97 |
Outstanding, end of year (USD per share) | 77.36 | 67.01 | 61.69 |
Exercisable, end of year (USD per share) | $ 65.71 | $ 59.81 | $ 57.10 |
CAPITAL STOCK - Outstanding and Exercisable Stock Option (Detail) - $ / shares |
12 Months Ended | |||
---|---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
Dec. 29, 2012 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Oustanding Stock Options, Options (in shares) | 6,042,839 | 7,324,081 | 7,429,262 | 9,056,493 |
Oustanding Stock Options, Weighted-average Remaining Contractual Life | 6 years 9 months 22 days | |||
Oustanding Stock Options, Weighted-average Exercise Price (USD per share) | $ 77.36 | |||
Exercisable Stock Options, Options (in shares) | 3,774,248 | 5,146,400 | 5,310,381 | |
Exercisable Stock Options, Weighted-average Remaining Contractual Life | 5 years 5 months 19 days | |||
Exercisable Stock Options, Weighted-average Exercise Price (USD per share) | $ 65.71 | |||
$35.00 and below | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Oustanding Stock Options, Options (in shares) | 86,247 | |||
Oustanding Stock Options, Weighted-average Remaining Contractual Life | 2 years 11 months 9 days | |||
Oustanding Stock Options, Weighted-average Exercise Price (USD per share) | $ 32.95 | |||
Exercisable Stock Options, Options (in shares) | 86,247 | |||
Exercisable Stock Options, Weighted-average Remaining Contractual Life | 2 years 11 months 9 days | |||
Exercisable Stock Options, Weighted-average Exercise Price (USD per share) | $ 32.95 | |||
$35.01 - 50.00 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Oustanding Stock Options, Options (in shares) | 117,305 | |||
Oustanding Stock Options, Weighted-average Remaining Contractual Life | 3 years 8 months 27 days | |||
Oustanding Stock Options, Weighted-average Exercise Price (USD per share) | $ 48.75 | |||
Exercisable Stock Options, Options (in shares) | 117,305 | |||
Exercisable Stock Options, Weighted-average Remaining Contractual Life | 3 years 8 months 27 days | |||
Exercisable Stock Options, Weighted-average Exercise Price (USD per share) | $ 48.75 | |||
$50.01 - higher | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Oustanding Stock Options, Options (in shares) | 5,839,287 | |||
Oustanding Stock Options, Weighted-average Remaining Contractual Life | 6 years 11 months 5 days | |||
Oustanding Stock Options, Weighted-average Exercise Price (USD per share) | $ 78.59 | |||
Exercisable Stock Options, Options (in shares) | 3,570,696 | |||
Exercisable Stock Options, Weighted-average Remaining Contractual Life | 5 years 7 months 2 days | |||
Exercisable Stock Options, Weighted-average Exercise Price (USD per share) | $ 67.06 | |||
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 4 days |
CAPITAL STOCK - Summary of Non-vested Restricted Stock Unit Activity (Detail) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Weighted Average Grant Date Fair Value | |||
Excess Tax Benefit from Share-based Compensation | $ 21.2 | $ 7.3 | $ 15.2 |
Restricted Share Units & Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 14.7 | ||
Share Units | |||
Non-vested, Beginning Balance (in shares) | 1,494,543 | ||
Granted (in shares) | 349,768 | 559,955 | 368,059 |
Vested (in shares) | (713,885) | ||
Forfeited (in shares) | (43,757) | ||
Non-vested, Ending Balance (in shares) | 1,086,669 | 1,494,543 | |
Weighted Average Grant Date Fair Value | |||
Non-vested, Beginning Balance (USD per share) | $ 77.16 | ||
Granted (USD per share) | 107.43 | $ 93.67 | $ 80.68 |
Vested (USD per share) | 101.10 | ||
Forfeited (USD per share) | 100.44 | ||
Non-vested, Ending Balance (USD per share) | $ 88.19 | $ 77.16 | |
Excess Tax Benefit from Share-based Compensation | $ 7.0 | $ 3.5 | $ 4.9 |
CAPITAL STOCK - Summary of Long-Term Performance Awards Activity (Detail) - Long-Term Performance Awards |
12 Months Ended |
---|---|
Jan. 02, 2016
$ / shares
shares
| |
Share Units | |
Non-vested, Beginning Balance (in shares) | shares | 847,973 |
Granted (in shares) | shares | 251,315 |
Vested (in shares) | shares | (42,771) |
Forfeited (in shares) | shares | (213,976) |
Non-vested, Ending Balance (in shares) | shares | 842,541 |
Weighted Average Grant Date Fair Value | |
Non-vested, Beginning Balance (USD per share) | $ / shares | $ 73.76 |
Granted (USD per share) | $ / shares | 91.90 |
Vested (USD per share) | $ / shares | 74.86 |
Forfeited (USD per share) | $ / shares | 74.86 |
Non-vested, Ending Balance (USD per share) | $ / shares | $ 78.83 |
CAPITAL STOCK - Additional Information, Earnings Per Share (Detail) $ in Millions |
Nov. 30, 2010
USD ($)
|
---|---|
Class of Warrant or Right [Line Items] | |
Long-term debt, face amount | $ 632.5 |
CAPITAL STOCK - Additional Information, Common Stock Share Activity (Detail) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2013 |
Dec. 29, 2012 |
Apr. 04, 2015 |
Jun. 29, 2013 |
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
Dec. 31, 2011 |
Oct. 31, 2014 |
Aug. 01, 2013 |
|
Class of Stock [Line Items] | ||||||||||
Initial delivery of shares repurchased (in shares) | 9,345,794 | 1,608,695 | ||||||||
Repurchase of common stock, shares | (9,227,564) | (340,576) | (2,225,732) | |||||||
Forward share purchase contract | $ 362.7 | $ 350.0 | $ 150.0 | $ 350.0 | ||||||
Forward share purchase contract, shares purchased | 3,645,510 | 5,249,332 | 1,603,822 | 0 | 5,581,400 | 1,603,822 | 5,581,400 |
CAPITAL STOCK - Additional Information, Preferred Stock Purchase Rights (Detail) - 12 months ended Jan. 02, 2016 - Series A Preferred Stock |
$ / shares
$ / right
shares
|
SEK / shares
$ / right
shares
|
---|---|---|
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) | $ / shares | $ 220 | |
Preferred stock purchase right, expiration date | Mar. 10, 2016 | |
Preferred stock purchase right, preferred stock purchase right, redemption price per right | $ / right | 0.01 | 0.01 |
Number of stock warrants or right, outstanding | shares | 148,694,959 | 148,694,959 |
Minimum | ||
Class of Stock [Line Items] | ||
Preferred stock purchase right, percentage threshold of outstanding common stock for redemption of rights | 15.00% | 15.00% |
Preferred stock purchase right, required ratio to exercise price in event of a business comination | 200.00% | 200.00% |
Maximum | ||
Class of Stock [Line Items] | ||
Preferred stock purchase right, percentage threshold of outstanding common stock for right redemption provision in business combination scenario | 14.90% | 14.90% |
CAPITAL STOCK - Additional Information, Stock Option Valuation Assumptions (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate intrinsic value | $ 102.7 | $ 33.7 | $ 72.0 |
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 | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 67.9 | $ 57.1 | $ 66.4 |
Cash received from exercise of stock options | 122.2 | ||
Tax benefit from exercise of stock options | 36.0 | ||
Aggregate intrinsic value | 102.7 | 33.7 | 72.0 |
Excess Tax Benefit from Share-based Compensation | $ 21.2 | 7.3 | 15.2 |
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) | $ 109.25 | ||
Share-based Compensation | $ 16.7 | $ 16.5 | $ 21.4 |
Unrecognized pre-tax compensation expense | $ 32.6 | ||
Number of years of service to be eligible for employee retirement compensation | 2 years 7 months 12 days |
CAPITAL STOCK - Additional Information, Employee Stock Purchase Plan (Detail) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Weighted average exercise price (USD per share) | $ 109.23 | $ 95.18 | $ 79.72 |
Aggregate intrinsic value | $ 102.7 | $ 33.7 | $ 72.0 |
Stock-based compensation expense | $ 67.9 | $ 57.1 | $ 66.4 |
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) | $ 71.29 | ||
Employee stock purchase plan, shares authorized for subscription | 6,000,000 | ||
Employee stock purchase plan, shares issued | 182,039 | 128,144 | 172,259 |
Employee stock purchase plan, price per share | $ 71.80 | $ 71.69 | $ 58.59 |
Aggregate intrinsic value | $ 5.4 | $ 1.9 | $ 3.7 |
Cash received related to ESPP purchases | $ 13.1 | ||
Expected term | 1 year | ||
Dividend yield | 2.20% | 2.50% | 2.50% |
Expected volatility | 19.00% | 25.00% | 28.00% |
Risk-free interest rate | 0.10% | ||
Weighted average fair value of purchase rights granted | $ 31.41 | $ 17.10 | $ 24.07 |
Stock-based compensation expense | $ 5.4 | $ 2.1 | $ 4.3 |
CAPITAL STOCK - Additional Information, Restricted Share Units and Awards (Detail) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options vesting period | 4 years | ||
Stock-based compensation expense | $ 67.9 | $ 57.1 | $ 66.4 |
Excess Tax Benefit from Share-based Compensation, Financing Activities | 21.2 | $ 7.3 | 15.2 |
Non Employee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 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) | 349,768 | 559,955 | 368,059 |
Weighted average grant date fair value, granted (USD per share) | $ 107.43 | $ 93.67 | $ 80.68 |
Stock-based compensation expense | $ 30.9 | $ 26.0 | $ 32.6 |
Stock-based compensation, tax benefit | 14.7 | ||
Excess Tax Benefit from Share-based Compensation, Financing Activities | 7.0 | 3.5 | 4.9 |
Unrecognized pre-tax compensation expense | $ 67.5 | ||
Unrecognized pre-tax compensation expense, weighted average recognition period | 2 years 1 month 4 days | ||
Total fair value of shares vested | $ 72.2 | $ 64.5 | $ 63.0 |
CAPITAL STOCK - Additional Information, Long-Term Performance Awards (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
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 | 2018 | 2017 | 2016 |
Share-based Compensation | $ 67.9 | $ 57.1 | $ 66.4 |
Long-Term Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation | $ 13.8 | $ 11.4 | $ 9.4 |
CAPITAL STOCK - Additional Information, Other Equity Arrangements (Detail) - USD ($) |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 08, 2016 |
Feb. 01, 2016 |
Nov. 10, 2010 |
Dec. 31, 2013 |
Dec. 29, 2012 |
Nov. 30, 2012 |
Nov. 30, 2010 |
Oct. 03, 2015 |
Apr. 04, 2015 |
Jun. 29, 2013 |
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
Dec. 24, 2015 |
Nov. 03, 2010 |
|
Option Indexed to Issuer's Equity [Line Items] | |||||||||||||||
Accelerated share repurchases, authorized amount of accelerated share repurchase | $ 850,000,000 | ||||||||||||||
Purchase of common stock for treasury | $ 850,000,000 | $ 326,100,000 | $ 649,800,000 | $ 28,200,000 | $ 39,200,000 | ||||||||||
Initial delivery of shares repurchased (in shares) | 9,345,794 | 1,608,695 | |||||||||||||
Accelerated share repurchases, initial value of shares repurchased | $ 680,000,000 | ||||||||||||||
Accelerated share repurchases, initial price paid (USD per share) | $ 72.76 | ||||||||||||||
Accelerated share repurchases, forward contract | $ 170,000,000 | ||||||||||||||
Accelerated Share Repurchases, Final Delivery of Shares Repurchased | 1,600,000 | ||||||||||||||
Option Indexed to Issuer's Equity, Settlement Alternatives, Shares, at Fair Value | 1,692,778 | 911,077 | 2,603,855 | ||||||||||||
Call option, aggregate premium | $ 9,700,000 | $ 50,300,000 | |||||||||||||
Number of net-share settled options exercised (in shares) | 2,154,372 | 953,940 | 2,414,697 | ||||||||||||
Long-term debt, including current maturities | $ 3,841,700,000 | $ 3,845,700,000 | |||||||||||||
Equity Unit Shares Issuable Upon Conversion | 6,100,000 | ||||||||||||||
Preferred Stock, Liquidation Preference Per Share | $ 100.49 | ||||||||||||||
Preferred Stock, Value, Issued | $ 632,500,000 | $ 0 | $ 0 | $ 632,500,000 | |||||||||||
Preferred Stock, Par or Stated Value Per Share | $ 100 | ||||||||||||||
Common Stock, Shares, Issued | 176,902,738 | 176,902,738 | |||||||||||||
Treasury Stock Acquired, Average Cost Per Share | $ 103.97 | $ 96.46 | $ 112.71 | ||||||||||||
Treasury Stock, Shares, Acquired | 3,381,162 | 6,623,709 | 8,300,853 | ||||||||||||
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 | |||||||||||||
Stock Exercise Price Per Share | 112.71 | ||||||||||||||
Stock Exercise Price Per Share Percentage Greater Than Closing Price | $ 0.40 | $ 0.60 | |||||||||||||
Maximum | |||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | |||||||||||||||
Common Stock, Shares, Issued | 4.3 | ||||||||||||||
Stock Exercise Price Per Share | $ 97.95 | $ 112.91 | |||||||||||||
Minimum | |||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | |||||||||||||||
Common Stock, Shares, Issued | 3.5 | ||||||||||||||
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 | $ 2.77 | |||||||||||||
Open Option Contracts Written At Fair Value | $ 26,300,000 | ||||||||||||||
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 | ||||||||||||||
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] | |||||||||||||||
Conversion price (USD per share) | $ 98.62 | ||||||||||||||
Equity Units Conversion Rate Number Of Common Stock Shares | 1.0140 | ||||||||||||||
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 | |||||||||||||
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 | |||||||||||||
Convertible notes payable due in 2018 (subordinated) | |||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | |||||||||||||||
Long-term debt, including current maturities | $ 632,500,000 | $ 345,000,000 | $ 345,000,000 | ||||||||||||
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 | 10,094,144 | 9,100,000.0 | 617,037 | 12,200,000.0 | |||||||||||
Option indexed to issuer's equity, premium amount | $ 29,500,000 | $ 73,500,000 | |||||||||||||
Option indexed to issuer's equity, average premium price per share (USD per share) | $ 2.92 | $ 6.03 | |||||||||||||
Option indexed to issuer's equity, average lower strike price (USD per share) | 71.43 | $ 85.91 | 86.07 | ||||||||||||
Option indexed to issuer's equity, average upper strike price (USD per share) | $ 79.75 | $ 106.36 | $ 106.56 | ||||||||||||
Option Indexed to Issuer's Equity, Settlement Alternatives | 0.6 | ||||||||||||||
$1B cappd call [Member] | Call Option [Member] | |||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | |||||||||||||||
Open Option Contracts Written At Fair Value | $ 48,500,000 | ||||||||||||||
Subsequent Event [Member] | |||||||||||||||
Option Indexed to Issuer's Equity [Line Items] | |||||||||||||||
Purchase of common stock for treasury | $ 230,900,000 | $ 124,200,000 | |||||||||||||
Option Indexed to Issuer's Equity, Settlement Alternatives, Shares, at Fair Value | 293,142 | ||||||||||||||
Treasury Stock Acquired, Average Cost Per Share | $ 94.34 | $ 94.34 | |||||||||||||
Treasury Stock, Shares, Acquired | 2,446,287 | 1,316,858 | |||||||||||||
Subsequent Event [Member] | 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 |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Detail) - USD ($) $ in Millions |
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
---|---|---|---|
Accumulated Other Comprehensive Income (Loss) [Abstract] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (1,694.2) | $ (1,270.2) | $ (499.0) |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in AOCI (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (1,694.2) | $ (1,270.2) | $ (499.0) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (412.6) | (783.8) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (11.4) | 12.6 | |
Other Comprehensive Income (Loss), Net of Tax | (424.0) | (771.2) | (111.0) |
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,300.9) | (796.8) | (70.5) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (504.1) | (726.3) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.0 | 0.0 | |
Other Comprehensive Income (Loss), Net of Tax | (504.1) | (726.3) | |
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 | (52.1) | (50.9) | (77.3) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 21.2 | 18.9 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (22.4) | 7.5 | |
Other Comprehensive Income (Loss), Net of Tax | (1.2) | 26.4 | |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 11.8 | (37.2) | (76.8) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 49.0 | 39.6 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.0 | 0.0 | |
Other Comprehensive Income (Loss), Net of Tax | 49.0 | 39.6 | |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (353.0) | (385.3) | $ (274.4) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 21.3 | (116.0) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 11.0 | 5.1 | |
Other Comprehensive Income (Loss), Net of Tax | $ 32.3 | $ (110.9) |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Reclassifications out of AOCI (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 02, 2016 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Jan. 03, 2015 |
Sep. 27, 2014 |
Jun. 28, 2014 |
Mar. 29, 2014 |
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income Tax Expense (Benefit) | $ (248.6) | $ (227.1) | $ (68.6) | ||||||||
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | $ 267.3 | $ 233.4 | $ 235.5 | $ 166.0 | $ 219.0 | $ 246.1 | $ 222.7 | $ 169.9 | 902.2 | 857.7 | $ 519.0 |
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) | 19.9 | (7.4) | |||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 22.4 | (7.5) | |||||||||
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) | 5.1 | 2.8 | |||||||||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax | (11.0) | (5.1) | |||||||||
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | (16.1) | (7.9) | |||||||||
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 | (6.4) | (3.2) | |||||||||
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 | 57.4 | 0.2 | |||||||||
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) | (4.7) | |||||||||
Interest Expense [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 | $ (15.1) | $ (15.1) |
EMPLOYEE BENEFIT PLANS - Expense for Defined Contribution Plans Aside from ESOP Plans (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 7.2 | $ 9.4 | $ 9.5 |
Multi-employer plan expense | 4.0 | 4.0 | 3.3 |
Other defined contribution plan expense | $ 11.7 | $ 14.0 | $ 14.6 |
Employee Stock Ownership Plan (ESOP), Shares in ESOP | 184,753 | 230,032 | 219,900 |
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 | 23,189 | ||
Employee Stock Ownership Plan (ESOP), Cash Contributions to ESOP | $ 4.4 | $ 3.4 | $ 30.7 |
EMPLOYEE BENEFIT PLANS - Net Periodic Pension Expense (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement / curtailment loss (gain) | $ 3.0 | ||
Pension Benefit, U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 7.0 | $ 8.9 | $ 7.7 |
Interest cost | 54.0 | 56.4 | 52.6 |
Expected return on plan assets | (74.9) | (72.1) | (65.1) |
Prior service cost amortization | 1.8 | 1.1 | 1.1 |
Actuarial loss amortization | 7.2 | 0.9 | 5.7 |
Settlement / curtailment loss (gain) | 0.0 | 0.0 | 0.0 |
Net periodic pension expense | (4.9) | (4.8) | 2.0 |
Pension Benefit, Non-U.S Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 14.4 | 13.1 | 13.4 |
Interest cost | 46.8 | 59.3 | 54.3 |
Expected return on plan assets | (56.5) | (61.0) | (54.9) |
Prior service cost amortization | 0.9 | 0.3 | 0.4 |
Actuarial loss amortization | 7.5 | 7.0 | 5.1 |
Settlement / curtailment loss (gain) | 1.5 | 0.3 | 4.6 |
Net periodic pension expense | $ 14.6 | $ 19.0 | $ 22.9 |
EMPLOYEE BENEFIT PLANS - Net Periodic Post-Retirement Benefit Expense (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement / curtailment loss (gain) | $ 3.0 | ||
Other Postretirement Benefit Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.5 | $ 1.0 | $ 0.8 |
Interest cost | 2.1 | 2.7 | 2.5 |
Prior service credit amortization | (1.3) | (1.4) | (1.4) |
Actuarial loss amortization | 0.0 | (0.1) | 0.0 |
Net periodic pension expense | $ 1.3 | $ 2.2 | $ 1.9 |
EMPLOYEE BENEFIT PLANS - Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Detail) $ in Millions |
12 Months Ended |
---|---|
Jan. 02, 2016
USD ($)
| |
Compensation and Retirement Disclosure [Abstract] | |
Current year actuarial loss | $ 7.5 |
Amortization of actuarial loss | (14.7) |
Prior service cost from plan amendments | 6.0 |
Amortization of prior service costs | 1.4 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | (3.0) |
Currency / other | (16.4) |
Total loss recognized in other comprehensive income (pre-tax) | $ (22.0) |
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 | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Amounts recognized in the Consolidated Balance Sheets | |||
Non-current benefit liability | $ (669.4) | $ (749.9) | |
Pension Benefit, U.S. Plans | |||
Change in benefit obligation | |||
Benefit obligation at end of prior year | 1,460.5 | 1,315.9 | |
Service cost | 7.0 | 8.9 | $ 7.7 |
Interest cost | 54.0 | 56.4 | 52.6 |
Settlements/curtailments | 0.0 | 0.0 | |
Actuarial (gain) loss | (45.8) | 178.3 | |
Plan amendments | 5.8 | 0.1 | |
Foreign currency exchange rates | 0.0 | 0.0 | |
Participant contributions | 0.0 | 0.0 | |
Acquisitions, divestitures and other | (3.4) | (4.7) | |
Benefits paid | (92.4) | (94.4) | |
Benefit obligation at end of year | 1,385.7 | 1,460.5 | 1,315.9 |
Change in plan assets | |||
Fair value of plan assets at end of prior year | 1,174.1 | 1,052.9 | |
Actual return on plan assets | (19.3) | 116.1 | |
Participant contributions | 0.0 | 0.0 | |
Employer contributions | 22.5 | 104.2 | |
Settlements | 0.0 | 0.0 | |
Foreign currency exchange rate changes | 0.0 | 0.0 | |
Acquisitions, divestitures and other | (3.4) | (4.7) | |
Benefits paid | (92.4) | (94.4) | |
Fair value of plan assets at end of plan year | 1,081.5 | 1,174.1 | 1,052.9 |
Net liability recognized | (304.2) | (286.4) | |
Unrecognized prior service cost (credit) | (9.1) | (5.1) | |
Unrecognized net actuarial loss | 255.8 | 214.7 | |
Unrecognized net transition obligation | 0.0 | 0.0 | |
Net amount recognized | (39.3) | (66.6) | |
Amounts recognized in the Consolidated Balance Sheets | |||
Prepaid benefit cost (non-current) | 0.0 | 0.0 | |
Current benefit liability | (11.0) | (15.9) | |
Non-current benefit liability | (293.2) | (270.5) | |
Net liability recognized | (304.2) | (286.4) | |
Accumulated other comprehensive loss (pre-tax): | |||
Prior service cost (credit) | 9.1 | 5.1 | |
Actuarial loss | 255.8 | 214.7 | |
Unrecognized net transition obligation | 0.0 | 0.0 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax, Total | 264.9 | 219.8 | |
Net amount recognized | (39.3) | (66.6) | |
Pension Benefit, Non-U.S Plans | |||
Change in benefit obligation | |||
Benefit obligation at end of prior year | 1,540.4 | 1,517.6 | |
Service cost | 14.4 | 13.1 | 13.4 |
Interest cost | 46.8 | 59.3 | 54.3 |
Settlements/curtailments | (8.0) | (7.1) | |
Actuarial (gain) loss | (86.7) | 168.6 | |
Plan amendments | 0.2 | 0.2 | |
Foreign currency exchange rates | (76.2) | (132.7) | |
Participant contributions | 0.3 | 0.3 | |
Acquisitions, divestitures and other | (1.3) | (4.8) | |
Benefits paid | (55.7) | (74.1) | |
Benefit obligation at end of year | 1,374.2 | 1,540.4 | 1,517.6 |
Change in plan assets | |||
Fair value of plan assets at end of prior year | 1,115.7 | 1,075.9 | |
Actual return on plan assets | 8.3 | 169.2 | |
Participant contributions | 0.3 | 0.3 | |
Employer contributions | 35.5 | 41.1 | |
Settlements | (6.4) | (5.2) | |
Foreign currency exchange rate changes | (48.2) | (86.0) | |
Acquisitions, divestitures and other | (2.2) | (5.5) | |
Benefits paid | (55.7) | (74.1) | |
Fair value of plan assets at end of plan year | 1,047.3 | 1,115.7 | 1,075.9 |
Net liability recognized | (326.9) | (424.7) | |
Unrecognized prior service cost (credit) | (2.3) | (3.2) | |
Unrecognized net actuarial loss | 233.5 | 298.7 | |
Unrecognized net transition obligation | 0.1 | 0.1 | |
Net amount recognized | (91.0) | (122.7) | |
Amounts recognized in the Consolidated Balance Sheets | |||
Prepaid benefit cost (non-current) | 2.9 | 0.6 | |
Current benefit liability | (7.9) | (8.1) | |
Non-current benefit liability | (321.9) | (417.2) | |
Net liability recognized | (326.9) | (424.7) | |
Accumulated other comprehensive loss (pre-tax): | |||
Prior service cost (credit) | 2.3 | 3.2 | |
Actuarial loss | 233.5 | 298.7 | |
Unrecognized net transition obligation | 0.1 | 0.1 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax, Total | 235.9 | 302.0 | |
Net amount recognized | (91.0) | (122.7) | |
Other Postretirement Benefit Plans, Defined Benefit | |||
Change in benefit obligation | |||
Benefit obligation at end of prior year | 69.8 | 75.1 | |
Service cost | 0.5 | 1.0 | 0.8 |
Interest cost | 2.1 | 2.7 | 2.5 |
Settlements/curtailments | 0.0 | 0.0 | |
Actuarial (gain) loss | (2.1) | 1.7 | |
Plan amendments | 0.0 | 0.0 | |
Foreign currency exchange rates | (1.5) | (1.0) | |
Participant contributions | 0.0 | 0.0 | |
Acquisitions, divestitures and other | 0.0 | 0.0 | |
Benefits paid | (7.8) | (9.7) | |
Benefit obligation at end of year | 61.0 | 69.8 | 75.1 |
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 | 7.8 | 9.7 | |
Settlements | 0.0 | 0.0 | |
Foreign currency exchange rate changes | 0.0 | 0.0 | |
Acquisitions, divestitures and other | 0.0 | 0.0 | |
Benefits paid | (7.8) | (9.7) | |
Fair value of plan assets at end of plan year | 0.0 | 0.0 | $ 0.0 |
Net liability recognized | (61.0) | (69.8) | |
Unrecognized prior service cost (credit) | 6.6 | 7.9 | |
Unrecognized net actuarial loss | 1.4 | 3.6 | |
Unrecognized net transition obligation | 0.0 | 0.0 | |
Net amount recognized | (66.2) | (74.1) | |
Amounts recognized in the Consolidated Balance Sheets | |||
Prepaid benefit cost (non-current) | 0.0 | 0.0 | |
Current benefit liability | (6.7) | (7.5) | |
Non-current benefit liability | (54.3) | (62.3) | |
Net liability recognized | (61.0) | (69.8) | |
Accumulated other comprehensive loss (pre-tax): | |||
Prior service cost (credit) | (6.6) | (7.9) | |
Actuarial loss | 1.4 | 3.6 | |
Unrecognized net transition obligation | 0.0 | 0.0 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax, Total | (5.2) | (4.3) | |
Net amount recognized | $ (66.2) | $ (74.1) |
EMPLOYEE BENEFIT PLANS - Pension Plans in which Accumulated Benefit Obligations Exceed Plan Assets (Detail) - USD ($) $ in Millions |
Jan. 02, 2016 |
Jan. 03, 2015 |
---|---|---|
Pension Benefit, U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 1,385.7 | $ 1,460.5 |
Accumulated benefit obligation | 1,383.9 | 1,460.5 |
Fair value of plan assets | 1,081.5 | 1,174.1 |
Pension Benefit, Non-U.S Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 894.5 | 1,511.4 |
Accumulated benefit obligation | 855.5 | 1,463.3 |
Fair value of plan assets | $ 566.9 | $ 1,088.3 |
EMPLOYEE BENEFIT PLANS - Pension Plans in which Projected Benefit Obligations Exceed Plan Assets (Detail) - USD ($) $ in Millions |
Jan. 02, 2016 |
Jan. 03, 2015 |
---|---|---|
Pension Benefit, U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 1,385.7 | $ 1,460.5 |
Accumulated benefit obligation | 1,383.9 | 1,460.5 |
Fair value of plan assets | 1,081.5 | 1,174.1 |
Pension Benefit, Non-U.S Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 921.7 | 1,539.6 |
Accumulated benefit obligation | 879.4 | 1,488.0 |
Fair value of plan assets | $ 591.9 | $ 1,114.4 |
EMPLOYEE BENEFIT PLANS - Assumptions used in Valuing Pension and Post-Retirement Plan Obligations and Net Costs (Detail) |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Expected return on plan assets | 5.60% | ||
Pension Benefit, U.S. Plans | |||
Weighted-average assumptions used to determine benefit obligations at year end: | |||
Discount rate | 4.25% | 3.75% | 4.50% |
Rate of compensation increase | 6.00% | 6.00% | 6.00% |
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 3.75% | 4.50% | 3.75% |
Rate of compensation increase | 6.00% | 6.00% | 6.00% |
Expected return on plan assets | 6.50% | 7.00% | 6.25% |
Pension Benefit, Non-U.S Plans | |||
Weighted-average assumptions used to determine benefit obligations at year end: | |||
Discount rate | 3.25% | 3.25% | 4.00% |
Rate of compensation increase | 3.25% | 3.50% | 3.75% |
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 3.25% | 4.00% | 4.00% |
Rate of compensation increase | 3.50% | 3.75% | 3.25% |
Expected return on plan assets | 5.25% | 5.75% | 6.00% |
Other Benefits, U.S Plans | |||
Weighted-average assumptions used to determine benefit obligations at year end: | |||
Discount rate | 3.75% | 3.25% | 4.00% |
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 3.25% | 4.00% | 3.00% |
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Expected return on plan assets | 0.00% | 0.00% | 0.00% |
EMPLOYEE BENEFIT PLANS - Asset Allocations by Asset Category and Level of Valuation Inputs with in Fair Value Hierarchy (Detail) - USD ($) $ in Millions |
Jan. 02, 2016 |
Jan. 03, 2015 |
---|---|---|
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Defined Benefit Plan, Funded Percentage | 77.00% | 76.00% |
Level 1 | Defined Benefit Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | $ 381.6 | $ 404.0 |
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 | 39.7 | 50.7 |
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 | 50.4 | 50.9 |
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 | 43.2 | 41.3 |
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 | 248.3 | 261.1 |
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 | 1,747.2 | 1,885.8 |
Level 2 | Defined Benefit Pension | Insurance contracts | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 33.2 | 34.0 |
Level 2 | Defined Benefit Pension | Other | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 58.6 | 102.6 |
Level 2 | Defined Benefit Pension | Cash and Cash Equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 18.4 | 47.9 |
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 | 245.9 | 255.0 |
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 | 225.8 | 239.2 |
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 | 448.4 | 530.6 |
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 | 716.9 | 676.5 |
Fair Value | Defined Benefit Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 2,128.8 | 2,289.8 |
Fair Value | Defined Benefit Pension | Insurance contracts | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 33.2 | 34.0 |
Fair Value | Defined Benefit Pension | Other | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 58.6 | 102.6 |
Fair Value | Defined Benefit Pension | Cash and Cash Equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | ||
Fair value of plan assets | 58.1 | 98.6 |
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 | 296.3 | 305.9 |
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 | 269.0 | 280.5 |
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 | 696.7 | 791.7 |
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 | $ 716.9 | $ 676.5 |
EMPLOYEE BENEFIT PLANS - Expected Future Benefit Payments (Detail) $ in Millions |
12 Months Ended |
---|---|
Jan. 02, 2016
USD ($)
| |
Compensation and Retirement Disclosure [Abstract] | |
Defined Benefit Plan, Expected Future Benefit Payments, ten Fiscal Years Thereafter | 10 years |
Total | $ 1,567.9 |
Year 1 | 152.0 |
Year 2 | 196.1 |
Year 3 | 149.9 |
Year 4 | 148.2 |
Year 5 | 150.6 |
Years 6-10 | $ 771.1 |
EMPLOYEE BENEFIT PLANS - Additional Information (Detail) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016
USD ($)
employee
$ / shares
shares
|
Jan. 03, 2015
USD ($)
$ / shares
shares
|
Dec. 28, 2013
USD ($)
$ / shares
shares
|
|
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit allocations | 1.00% | ||
Employees covered by pension plan | employee | 1,500 | ||
Allocations for benefits earned under the Cornerstone plan | $ 22.1 | $ 20.7 | $ 21.1 |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 7.2 | $ 9.4 | $ 9.5 |
Employee Stock Ownership Plan (ESOP), Shares in ESOP | shares | 184,753 | 230,032 | 219,900 |
Net income (expense) from ESOP activities | $ 0.8 | $ 0.7 | $ 1.9 |
Defined benefit plans amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit costs | 17.3 | ||
Accumulated benefit obligation for defined benefit pension plans | $ 2,714.0 | 2,948.9 | |
Weighted-average long-term rate of return assumption percentage used in determination of net periodic benefit expense | 5.60% | ||
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 | $ 52.0 | ||
Assumed health care cost trend rate for next year | 7.10% | ||
Assumed ultimate trend rate for health care cost | 4.50% | ||
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 | 12,900 | ||
Employee Defined Contribution Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer contribution | $ 21.1 | $ 19.9 | $ 18.8 |
Foreign | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employees covered by pension plan | employee | 14,000 | ||
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 | $ 1.8 | ||
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 | $ 2.0 | ||
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 | $ 101.79 | $ 88.05 | $ 80.71 |
Dividends paid on the shares used to pay internal loan debt service | $ 9.7 | $ 10.6 | $ 12.3 |
Interest costs incurred by ESOP | $ 3.8 | 4.7 | 6.1 |
Number of ESOP shares allocated to participant accounts | shares | 13,661,101 | ||
Number of ESOP shares allocated to participant accounts held | shares | 2,482,944 | ||
Number of ESOP unallocated shares | shares | 1,880,256 | ||
Employee Stock Ownership Plan (ESOP), Number of Committed-to-be-Released Shares | shares | 23,189 | ||
Employer cash contributions | $ 4.4 | $ 3.4 | $ 30.7 |
Employee Stock Ownership Plan (ESOP), Plan | Core Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of employees covered by benefit plans | employee | 7,200 | ||
Employee Stock Ownership Plan (ESOP), Plan | Core Translation Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of employees covered by benefit plans | employee | 3,600 | ||
Employee Stock Ownership Plan (ESOP), Plan | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit employer matches participant contributions percentage | 1.00% | ||
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 | Minimum | Core Translation Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer contribution (percent) | 1.00% | ||
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% | ||
Employee Stock Ownership Plan (ESOP), Plan | Maximum | Core Translation Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer contribution (percent) | 2.00% |
FAIR VALUE MEASUREMENTS - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis for Each of Hierarchy Levels (Detail) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Jan. 03, 2015 |
Jan. 02, 2016 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 144.2 | $ 79.3 |
Derivatives liabilities | 148.4 | 96.1 |
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 |
Money market fund | 9.9 | 7.0 |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 144.2 | 79.3 |
Derivatives liabilities | 148.4 | 96.1 |
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 | 144.2 | 79.3 |
Derivatives liabilities | 148.4 | 96.1 |
Reported Value Measurement [Member] | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 144.2 | 79.3 |
Derivatives liabilities | 148.4 | 96.1 |
Money market fund | 9.9 | $ 7.0 |
Security Spain & Italy [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment of Long-Lived Assets Held-for-use | $ 60.7 |
FAIR VALUE MEASUREMENTS - Summary of Company's Financial Instruments Carrying and Fair Values (Detail) - USD ($) $ in Millions |
Jan. 02, 2016 |
Jan. 03, 2015 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments, Fair Value Disclosure | $ 11.7 | $ 11.9 |
Long-term debt, including current portion | 3,841.7 | 3,845.7 |
Long-term Debt, Fair Value | 4,034.4 | 4,323.8 |
Derivative assets | 79.3 | 144.2 |
Derivative liabilities | 96.1 | 148.4 |
Total Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investments, Fair Value Disclosure | 11.7 | 11.7 |
Long-term debt, including current portion | 3,841.7 | 3,845.7 |
Derivative assets | 79.3 | 144.2 |
Derivative liabilities | $ 96.1 | $ 148.4 |
OTHER COSTS AND EXPENSES - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Other Costs and Expenses [Abstract] | |||
Research and development costs | $ 188.0 | $ 174.6 | $ 170.7 |
RESTRUCTURING AND ASSET IMPAIRMENTS - Summary of Restructuring Reserve Activity (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Restructuring Cost and Reserve [Line Items] | |||
Asset impairments | $ 9.8 | $ 63.1 | $ 40.9 |
Restructuring Reserve | |||
Reserve, Beginning Balance | 97.6 | ||
Net Additions | 47.6 | ||
Usage | (83.1) | ||
Currency | (3.4) | ||
Reserve, Ending Balance | 58.7 | 97.6 | |
Facility closures | |||
Restructuring Reserve | |||
Reserve, Beginning Balance | 16.4 | ||
Net Additions | 14.9 | ||
Usage | (16.6) | ||
Currency | (0.3) | ||
Reserve, Ending Balance | 14.4 | 16.4 | |
Employee Severance [Member] | |||
Restructuring Reserve | |||
Reserve, Beginning Balance | 81.2 | ||
Net Additions | 32.7 | ||
Usage | (66.5) | ||
Currency | (3.1) | ||
Reserve, Ending Balance | 44.3 | $ 81.2 | |
2012 Actions | Series of Individually Immaterial Business Acquisitions | |||
Restructuring Reserve | |||
Net Additions | $ 47.6 |
RESTRUCTURING AND ASSET IMPAIRMENTS - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and asset impairments recognized | $ 47.6 | ||
Facility closure costs | $ 165.0 | ||
Asset impairments | 9.8 | $ 63.1 | $ 40.9 |
Restructuring reserves | 58.7 | $ 97.6 | |
Construction and Do It Yourself | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and asset impairments recognized | 17.6 | ||
Securities Industry [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and asset impairments recognized | 28.7 | ||
Industrial Segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and asset impairments recognized | 12.0 | ||
Corporate [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and asset impairments recognized | 10.7 | ||
Acquisition | 2012 Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and asset impairments recognized | 47.6 | ||
Severance and related charges | 32.7 | ||
Facility closure costs | $ 5.1 |
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS - Business Segments (Detail) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2013 |
Jan. 02, 2016 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Jan. 03, 2015 |
Sep. 27, 2014 |
Jun. 28, 2014 |
Mar. 29, 2014 |
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | $ 2,845.4 | $ 2,829.5 | $ 2,866.9 | $ 2,630.0 | $ 2,982.5 | $ 2,878.9 | $ 2,860.1 | $ 2,617.1 | $ 11,171.8 | $ 11,338.6 | $ 10,889.5 | |
Segment Profit | 1,749.6 | 1,684.2 | 1,467.1 | |||||||||
Corporate overhead | (164.0) | (177.4) | (254.0) | |||||||||
Other-net | (222.0) | (239.7) | (283.9) | |||||||||
Restructuring charges and asset impairments | (47.6) | (18.8) | (173.7) | |||||||||
(Gain) loss on debt extinguishment | $ 42.8 | 0.0 | (0.1) | 20.6 | ||||||||
Interest income | 15.2 | 13.6 | 12.8 | |||||||||
Interest expense | (180.4) | (177.2) | (160.1) | |||||||||
Earnings from continuing operations before income taxes | 1,150.8 | 1,084.8 | 587.6 | |||||||||
Capital and Software Expenditures | 311.4 | 291.0 | 340.3 | |||||||||
Depreciation and Amortization, Discontinued Operations | 0.0 | 5.6 | 7.0 | |||||||||
Depreciation and amortization of property, plant and equipment | 256.9 | 263.4 | 238.0 | |||||||||
Total Assets | (15,172.3) | (15,849.1) | (15,172.3) | (15,849.1) | (16,535.1) | |||||||
Construction and Do It Yourself | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Business Combination, Integration Related Costs | 18.0 | |||||||||||
Net Sales | 7,140.7 | 7,033.0 | 6,705.0 | |||||||||
Segment Profit | 1,170.1 | 1,074.4 | 951.7 | |||||||||
Capital and Software Expenditures | 191.7 | 183.0 | 196.1 | |||||||||
Depreciation And Amortization excluding Discontinued Operations | 196.5 | 193.9 | 191.7 | |||||||||
Securities Industry [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Business Combination, Integration Related Costs | 38.0 | |||||||||||
Capital and Software Expenditures | 83.8 | 74.3 | 61.2 | |||||||||
Depreciation And Amortization excluding Discontinued Operations | 112.3 | 122.5 | 110.5 | |||||||||
Total Segments excluding Non Op [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization of property, plant and equipment | 414.0 | 449.8 | 441.3 | |||||||||
Industrial Segment | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Business Combination, Integration Related Costs | 20.0 | |||||||||||
Capital and Software Expenditures | 35.9 | 27.9 | 79.8 | |||||||||
Depreciation And Amortization excluding Discontinued Operations | 105.2 | 127.8 | 132.1 | |||||||||
Corporate Assets | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total Assets | (500.9) | (222.4) | (500.9) | (222.4) | (630.5) | |||||||
Continuing Operations [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total Assets | (15,673.2) | (16,042.0) | (15,673.2) | (16,042.0) | (17,028.7) | |||||||
Continuing Operations [Member] | Construction and Do It Yourself | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total Assets | (8,492.9) | (8,568.2) | (8,492.9) | (8,568.2) | (9,004.9) | |||||||
Continuing Operations [Member] | Securities Industry [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 1,938.2 | 2,044.4 | 1,888.6 | |||||||||
Segment Profit | 339.9 | 350.6 | 280.2 | |||||||||
Total Assets | (3,438.7) | (3,501.8) | (3,438.7) | (3,501.8) | (3,668.3) | |||||||
Continuing Operations [Member] | Industrial Segment | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 2,092.9 | 2,261.2 | 2,295.9 | |||||||||
Segment Profit | 239.6 | 259.2 | 235.2 | |||||||||
Total Assets | (3,741.6) | (3,972.0) | (3,741.6) | (3,972.0) | (4,355.5) | |||||||
Discontinued operations | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Capital and Software Expenditures | 0.0 | 5.8 | 3.2 | |||||||||
Total Assets | $ 0.0 | $ (29.5) | $ 0.0 | $ (29.5) | $ (136.9) | |||||||
Home Depot [Member] | Construction and Do It Yourself | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Percentage Of Net Sales | 13.00% | 11.00% | 11.00% |
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS - Geographic Areas (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 02, 2016 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Jan. 03, 2015 |
Sep. 27, 2014 |
Jun. 28, 2014 |
Mar. 29, 2014 |
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | $ 2,845.4 | $ 2,829.5 | $ 2,866.9 | $ 2,630.0 | $ 2,982.5 | $ 2,878.9 | $ 2,860.1 | $ 2,617.1 | $ 11,171.8 | $ 11,338.6 | $ 10,889.5 |
Property, plant & equipment | 1,450.2 | 1,454.1 | 1,450.2 | 1,454.1 | 1,478.6 | ||||||
United States | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 5,882.0 | 5,492.4 | 5,208.0 | ||||||||
Property, plant & equipment | 676.0 | 639.7 | 676.0 | 639.7 | 620.7 | ||||||
Canada | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 516.3 | 591.3 | 600.3 | ||||||||
Property, plant & equipment | 19.1 | 20.9 | 19.1 | 20.9 | 25.0 | ||||||
Other Americas | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 706.5 | 788.4 | 818.2 | ||||||||
Property, plant & equipment | 82.6 | 82.2 | 82.6 | 82.2 | 84.4 | ||||||
FRANCE | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 595.7 | 695.6 | 704.6 | ||||||||
Property, plant & equipment | 64.8 | 74.7 | 64.8 | 74.7 | 85.3 | ||||||
Other Europe | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 2,371.5 | 2,585.3 | 2,417.9 | ||||||||
Property, plant & equipment | 328.4 | 333.2 | 328.4 | 333.2 | 368.8 | ||||||
Asia | |||||||||||
Segment Reporting Disclosure [Line Items] | |||||||||||
Net Sales | 1,099.8 | 1,185.6 | 1,140.5 | ||||||||
Property, plant & equipment | $ 279.3 | $ 303.4 | $ 279.3 | $ 303.4 | $ 294.4 |
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS - Additional Information (Detail) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016
Segment
|
Jan. 03, 2015 |
Dec. 28, 2013
USD ($)
|
|
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 3 | ||
Facility closure costs | $ 165 | ||
Construction and Do It Yourself | |||
Segment Reporting Information [Line Items] | |||
Other charges associated with merger and other acquisitions | $ 18 | ||
Construction and Do It Yourself | Home Depot [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage Of Net Sales | 13.00% | 11.00% | 11.00% |
Construction and Do It Yourself | Lowes | |||
Segment Reporting Information [Line Items] | |||
Percentage Of Net Sales | 14.00% | 13.00% | 13.00% |
Industrial Segment | |||
Segment Reporting Information [Line Items] | |||
Other charges associated with merger and other acquisitions | $ 20 | ||
Securities Industry [Member] | |||
Segment Reporting Information [Line Items] | |||
Other charges associated with merger and other acquisitions | $ 38 |
INCOME TAXES - Significant Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Valuation Allowance [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | $ (412.6) | $ (783.8) | |
Income Tax Reconciliation Change In Undistributed Earnings | 49.3 | 6.0 | $ 19.5 |
Deferred Tax Assets, Capital Loss Carryforwards | 38.0 | ||
Deferred tax liabilities: | |||
Depreciation | 99.6 | 72.7 | |
Amortization of intangibles | 868.5 | 888.3 | |
Deferred Tax Liabilities, Undistributed Foreign Earnings | 319.9 | 369.2 | |
Discharge of Indebtedness | 9.3 | 12.4 | |
Inventories | 0.0 | 8.8 | |
Deferred revenue | 25.5 | 32.0 | |
Other | 66.8 | 59.4 | |
Total deferred tax liabilities | 1,389.6 | 1,442.8 | |
Deferred tax assets: | |||
Employee benefit plans | 361.1 | 308.3 | |
Doubtful accounts and other customer allowances | 19.0 | 15.0 | |
Deferred Tax Assets, Inventory | 16.1 | 0.0 | |
Accruals | 135.6 | 131.7 | |
Restructuring charges | 12.6 | 42.2 | |
Deferred Tax Assets Operating Loss And Capital Loss Carryforwards | 562.5 | 594.6 | |
Currency and derivatives | 42.2 | 47.3 | |
Other | 82.7 | 97.1 | |
Total deferred tax assets | 1,231.8 | 1,236.2 | |
Net Deferred Tax Liabilities before Valuation Allowance | 157.8 | 206.6 | |
Valuation allowance | 480.7 | 551.9 | |
Net Deferred Tax Liabilities after Valuation Allowance | 638.5 | 758.5 | |
Accumulated Translation Adjustment [Member] | |||
Valuation Allowance [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (504.1) | (726.3) | |
Income Tax Reconciliation Change In Undistributed Earnings | 18.3 | ||
income tax provision [Member] | |||
Valuation Allowance [Line Items] | |||
Income Tax Reconciliation Change In Undistributed Earnings | 31.0 | ||
Adjustments for New Accounting Pronouncement [Member] | |||
Deferred tax assets: | |||
Deferred Tax Assets Operating Loss And Capital Loss Carryforwards | 30.1 | $ 142.9 | |
United States | |||
Valuation Allowance [Line Items] | |||
Deferred Tax Assets, Capital Loss Carryforwards | $ 672.2 |
INCOME TAXES - Classification of Deferred Taxes (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Income Tax Reconciliation Change In Undistributed Earnings | $ 49.3 | $ 6.0 | $ 19.5 |
Tax Credit Carryforward, Amount | 15.7 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Research | 1.8 | ||
Valuation allowance | 480.7 | 551.9 | |
Operating Loss Carryforwards | 1,183.0 | ||
Deferred tax asset current | (85.4) | (137.4) | |
Deferred tax asset non-current | (120.5) | (108.7) | |
Total | (205.9) | (246.1) | |
Deferred tax liability current | 18.5 | 11.9 | |
Deferred tax liability non-current | 825.9 | 992.7 | |
Total | 844.4 | 1,004.6 | |
Deferred Tax Assets, Capital Loss Carryforwards | 38.0 | ||
income tax provision [Member] | |||
Income Tax Reconciliation Change In Undistributed Earnings | 31.0 | ||
Accumulated Translation Adjustment [Member] | |||
Income Tax Reconciliation Change In Undistributed Earnings | 18.3 | ||
Adjustments for New Accounting Pronouncement [Member] | |||
unrecognized tax benefit, Increase (Decrease) | 30.1 | $ 142.9 | |
United States | |||
Deferred Tax Assets, Capital Loss Carryforwards | $ 672.2 |
INCOME TAXES - Income Tax Expense (Benefit) Attributable to Continuing Operations (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Income Taxes Paid, Net | $ 191.6 | $ 113.7 | $ 147.3 |
Current: | |||
Federal | 64.4 | 18.4 | 84.0 |
Foreign | 171.4 | 141.1 | 123.5 |
State | 14.1 | 17.1 | (3.0) |
Total current | 249.9 | 176.6 | 204.5 |
Deferred: | |||
Federal | 64.2 | 55.3 | (77.1) |
Foreign | (47.3) | (19.3) | (50.6) |
State | (18.2) | 14.5 | (8.2) |
Total deferred | (1.3) | 42.4 | (135.7) |
Income taxes on continuing operations | 248.6 | 227.1 | 68.6 |
Income Tax Refund | 31.0 | 47.1 | 64.5 |
Continuing Operations [Member] | |||
Deferred: | |||
Total deferred | $ (1.3) | $ 50.5 | $ (135.9) |
INCOME TAXES - Reconciliation of U.S. Federal Statutory Income Tax to Income Taxes on Continuing Operations (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Tax at statutory rate | $ 402.9 | $ 379.7 | $ 205.8 |
State income taxes, net of federal benefits | 14.9 | (24.3) | (6.6) |
Difference between foreign and federal income tax | (166.9) | (178.0) | (124.9) |
Tax accrual reserve | 43.9 | 1.1 | 15.3 |
Audit settlements | 1.3 | 5.3 | 0.9 |
NOL & Valuation Allowance related items | 21.6 | (2.7) | 6.8 |
Foreign dividends and related items | (19.1) | (25.6) | (9.5) |
Change in deferred tax liabilities on undistributed foreign earnings | (49.3) | (6.0) | (19.5) |
Statutory income tax rate change | 4.8 | (0.6) | (1.7) |
Other-net | (18.8) | (16.4) | 2.0 |
Income taxes on continuing operations | 248.6 | $ 227.1 | $ 68.6 |
income tax provision [Member] | |||
Change in deferred tax liabilities on undistributed foreign earnings | $ (31.0) |
INCOME TAXES - Components of Earnings from Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Income Tax Disclosure [Abstract] | |||
Taxes Provided For On Repatriated Earnings | $ 1,312.0 | ||
United States | 405.5 | $ 234.4 | $ 112.7 |
Foreign | 745.3 | 850.4 | 474.9 |
Earnings from continuing operations before income taxes | 1,150.8 | $ 1,084.8 | $ 587.6 |
Deferred Tax Liability Related To Amounts That May Be Repatriated | $ 319.9 |
INCOME TAXES - Summary of Activity Related to Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance | $ 480.7 | $ 551.9 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 262.2 | 261.0 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Balance at beginning of year | 280.8 | 269.5 | $ 207.2 |
Additions based on tax positions related to current year | 23.2 | 27.4 | 37.1 |
Additions based on tax positions related to prior years | 24.3 | 40.1 | 46.9 |
Reductions based on tax positions related to prior years | (14.3) | (30.9) | (13.2) |
Settlements | (21.5) | (5.9) | (7.7) |
Statute of limitations expirations | (9.4) | (19.4) | (16.2) |
Balance at end of year | 283.1 | 280.8 | 269.5 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 0.1 | 22.0 | 4.1 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 59.5 | 59.6 | $ 37.6 |
Adjustments for New Accounting Pronouncement [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
unrecognized tax benefit, Increase (Decrease) | $ 30.1 | $ 142.9 |
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
|
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 480.7 | $ 551.9 |
The Black & Decker Corporation | ||
Operating Loss Carryforwards [Line Items] | ||
Undistributed Earnings, Basic | 4,391.0 | |
Minimum | ||
Operating Loss Carryforwards [Line Items] | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Upper Bound | 5.0 | |
Maximum | ||
Operating Loss Carryforwards [Line Items] | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Upper Bound | $ 10.0 |
COMMITMENTS AND GUARANTEES - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Guarantor Obligations [Line Items] | |||
Guarantee Obligations Maximum Potential Payment | $ 170.0 | ||
Carrying amount of guarantees recorded in the consolidated balance sheet | 16.9 | ||
Lease Obligations | |||
Guarantor Obligations [Line Items] | |||
Estimated asset fair value | 39.5 | ||
Guarantee Obligations Maximum Potential Payment | 34.4 | ||
Guarantees on the residual values of leased properties | |||
Guarantor Obligations [Line Items] | |||
Estimated asset fair value | 39.5 | ||
Guarantee Obligations Maximum Potential Payment | 34.4 | ||
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 | 78.7 | ||
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 | 56.9 | ||
Carrying amount of guarantees recorded in the consolidated balance sheet | 16.9 | ||
Noncancelable Lease Obligations | |||
Guarantor Obligations [Line Items] | |||
Sublease rentals | 1.6 | ||
Rent expenses under operating lease | $ 121.5 | $ 135.9 | $ 146.2 |
COMMITMENTS AND GUARANTEES - Summary of Future Commitements For Operating Lease Obligations (Detail) $ in Millions |
Jan. 02, 2016
USD ($)
|
---|---|
Schedule of Operating Leases [Line Items] | |
Total | $ 320.5 |
2013 | 99.9 |
2014 | 83.5 |
2015 | 49.8 |
2016 | 33.5 |
2017 | 24.8 |
Thereafter | 29.0 |
Operating lease obligations | |
Schedule of Operating Leases [Line Items] | |
Total | 251.0 |
2013 | 73.0 |
2014 | 57.0 |
2015 | 41.0 |
2016 | 29.0 |
2017 | 22.0 |
Thereafter | 29.0 |
Marketing and other commitments | |
Schedule of Operating Leases [Line Items] | |
Total | 69.5 |
2013 | 26.9 |
2014 | 26.5 |
2015 | 8.8 |
2016 | 4.5 |
2017 | 2.8 |
Thereafter | $ 0.0 |
COMMITMENTS AND GUARANTEES - Financial Guarantees (Detail) $ in Millions |
12 Months Ended |
---|---|
Jan. 02, 2016
USD ($)
| |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | $ 170.0 |
Carrying Amount of Liability | 16.9 |
Guarantees on the residual values of leased properties | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | 34.4 |
Carrying Amount of Liability | $ 0.0 |
Standby letters of credit | |
Guarantor Obligations [Line Items] | |
Term | P3Y |
Maximum Potential Payment | $ 78.7 |
Carrying Amount of Liability | $ 0.0 |
Commercial customer financing arrangements | |
Guarantor Obligations [Line Items] | |
Term | P6Y |
Maximum Potential Payment | $ 56.9 |
Carrying Amount of Liability | $ 16.9 |
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 | ||
---|---|---|---|
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Summary of warranty liability activity | |||
Beginning balance | $ 109.6 | $ 121.1 | $ 123.2 |
Warranties and guarantees issued | 91.8 | 98.0 | 92.9 |
Liability assumed from acquisitions | 0.0 | 0.0 | 0.1 |
Warranty payments and currency | (96.0) | (109.5) | (95.1) |
Ending balance | $ 105.4 | $ 109.6 | $ 121.1 |
CONTINGENCIES - Additional Information (Detail) $ in Millions |
12 Months Ended | |
---|---|---|
Jan. 02, 2016
USD ($)
sites
|
Jan. 03, 2015
USD ($)
|
|
Commitments and Contingencies Disclosure [Line Items] | ||
Superfund Sites | sites | 31 | |
Reserve for environmental loss contingencies, EPA funded amount | $ 18.7 | |
Environmental remediation. Period construction of treatment facility to be maintained | 30 years | |
Undiscounted environmental liability expected to be paid 2013 | $ 7.8 | |
Accrual for Environmental Loss Contingencies, Undiscounted, Second Year | 4.7 | |
Undiscounted environmental liability expected to be paid in 2015 | 2.0 | |
Undiscounted environmental liability expected to be paid in 2016 | 1.9 | |
Undiscounted environmental liability expected to be paid in 2017 | 2.0 | |
Undiscounted environmental liability expected to be paid thereafter | 15.2 | |
Leased Sites | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Discounted environmental liability | 27.5 | |
Undiscounted environmental liability | 33.6 | |
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] | ||
Reserve for environmental remediation costs | 170.7 | $ 177.3 |
Reserve for environmental remediation costs, current | 17.1 | |
Reserve for environmental remediation costs, noncurrent | 153.6 | |
Reserve for environmental loss contingencies, obligation after EPA funding | 152.0 | |
Passaic River [Member] [Domain] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Environmental remediation deemed probable and reasonably estimable | $ 1,700.0 | |
Environmental remediation. Period construction of treatment facility to be maintained | 5 years | |
Minimum | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Environmental liability discount rate | 0.10% | |
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 | $ 130.4 | |
Maximum | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Environmental liability discount rate | 3.00% | |
Maximum | Centredale Site | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Environmental remediation deemed probable and reasonably estimable | $ 139.7 | |
Maximum | Property, Plant and Equipment, Other Types | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Environmental remediation deemed probable and reasonably estimable | $ 260.8 |
DISCONTINUED OPERATIONS - Additional Information (Detail) $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Apr. 08, 2013
USD ($)
|
Dec. 17, 2012
USD ($)
|
Dec. 29, 2012
USD ($)
|
Oct. 31, 2012
USD ($)
|
Sep. 28, 2013
Entity
|
Jan. 02, 2016
USD ($)
|
Jan. 03, 2015
USD ($)
|
Dec. 28, 2013
USD ($)
Entity
|
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Income Tax Expense (Benefit) Related to Sale of Business | $ (19.1) | |||||||
(Payments) proceeds from sales of businesses, net of cash sold | $ 0.0 | $ (3.9) | 93.5 | |||||
Assets held for sale | $ 0.0 | 29.5 | ||||||
Other Businesses [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Impairment of Long-Lived Assets to be Disposed of | $ 22.2 | |||||||
Number Of Entities Classified As Held for Sale | Entity | 2 | 2 | ||||||
Security Spain & Italy [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Impairment of Long-Lived Assets to be Disposed of | $ 60.7 | |||||||
Hardware & Home Improvement | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
(Payments) proceeds from sales of businesses, net of cash sold | $ 1,400.0 | $ 1,400.0 | ||||||
Gain (loss) from sale of businesses | $ (358.9) | |||||||
First closing | Hardware & Home Improvement | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Gain (loss) from sale of businesses | $ (358.9) | |||||||
Second closing | Tong Lung | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
(Payments) proceeds from sales of businesses, net of cash sold | $ 93.5 | |||||||
Gain (loss) from sale of businesses | $ (4.7) |
DISCONTINUED OPERATIONS - Operating Results of Divested Businesses (Detail) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 02, 2016 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Jan. 03, 2015 |
Sep. 27, 2014 |
Jun. 28, 2014 |
Mar. 29, 2014 |
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Assets held for sale | $ 0.0 | $ 29.5 | $ 0.0 | $ 29.5 | |||||||
Operating results of discontinued operations: | |||||||||||
Net Sales | 39.4 | 118.4 | $ 150.1 | ||||||||
(Loss) earnings from discontinued operations before income taxes (including pretax gain on HHI sale of $384.7 million in 2012) | 19.3 | 104.0 | 43.0 | ||||||||
Income tax (benefit) expense on discontinued operations (including income taxes associated with the gain on HHI sale of $25.8 million in 2012) | (0.8) | 7.7 | 13.3 | ||||||||
Net loss from discontinued operations | (1.7) | $ (5.4) | $ (8.5) | $ (4.5) | (73.5) | $ (9.7) | $ (5.3) | $ (7.8) | (20.1) | (96.3) | $ (29.7) |
Carrying amounts of assets and liabilites of discontinued operations | |||||||||||
Assets Held-for-sale, Current | 0.0 | 29.5 | 0.0 | 29.5 | |||||||
Liabilities of Assets Held-for-sale | $ 0.0 | 23.4 | $ 0.0 | 23.4 | |||||||
Security Spain & Italy [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Assets held for sale | 29.5 | 29.5 | |||||||||
Liabilities of Disposal Group, Including Discontinued Operation, Current | 23.4 | 23.4 | |||||||||
Carrying amounts of assets and liabilites of discontinued operations | |||||||||||
Assets Held-for-sale, Current | $ 29.5 | $ 29.5 |
SELECTED QUARTERLY FINANCIAL DATA SELECTED QUARTERLY FINANCIAL DATA- Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jan. 03, 2015 |
Sep. 27, 2014 |
Jun. 28, 2014 |
Mar. 29, 2014 |
Jan. 02, 2016 |
|
merger and acquisition related charges [Abstract] | |||||
Business Combination, Acquisition Related Costs | $ 40.0 | $ 6.0 | $ 4.0 | $ 4.0 | |
Business Combination, Acquisition Related Costs, Net of Tax | $ 31.0 | $ 6.0 | $ 9.0 | $ 3.0 | |
Business Combination, Acquisition Related Costs, Diluted Earnings Per Share Impact | $ 0.19 | $ 0.04 | $ 0.06 | $ 0.02 | |
Net Additions | $ 47.6 |
SELECTED QUARTERLY FINANCIAL DATA SELECTED QUARTERLY FINANCIAL DATA (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 02, 2016 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Jan. 03, 2015 |
Sep. 27, 2014 |
Jun. 28, 2014 |
Mar. 29, 2014 |
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
|
Quarterly Financial Data [Abstract] | |||||||||||
Net Sales | $ 2,845.4 | $ 2,829.5 | $ 2,866.9 | $ 2,630.0 | $ 2,982.5 | $ 2,878.9 | $ 2,860.1 | $ 2,617.1 | $ 11,171.8 | $ 11,338.6 | $ 10,889.5 |
Gross Profit | 1,014.2 | 1,027.0 | 1,057.2 | 973.6 | 1,051.1 | 1,046.6 | 1,048.6 | 956.4 | 4,072.0 | 4,102.7 | |
Selling, General and Administrative Expense, Total including Allowance for Doubtful Accounts | 610.6 | 608.3 | 644.5 | 623.0 | 658.3 | 641.1 | 655.9 | 640.6 | 2,486.4 | 2,595.9 | |
Earnings from continuing operations | 267.3 | 233.4 | 235.5 | 166.0 | 219.0 | 246.1 | 222.7 | 169.9 | 902.2 | 857.7 | 519.0 |
Income (Loss) from Continuing Operations Attributable to Noncontrolling Interest | 0.1 | (0.7) | (0.2) | (0.8) | (0.3) | (0.3) | 0.9 | 0.2 | (1.6) | 0.5 | (1.0) |
Net earnings from continuing operations attributable to common shareowners | 267.2 | 234.1 | 235.7 | 166.8 | 219.3 | 246.4 | 221.8 | 169.7 | 903.8 | 857.2 | 520.0 |
Net loss from discontinued operations | (1.7) | (5.4) | (8.5) | (4.5) | (73.5) | (9.7) | (5.3) | (7.8) | (20.1) | (96.3) | (29.7) |
Net Earnings Attributable to Common Shareowners | $ 265.5 | $ 228.7 | $ 227.2 | $ 162.3 | $ 145.8 | $ 236.7 | $ 216.5 | $ 161.9 | $ 883.7 | $ 760.9 | $ 490.3 |
Continuing operations (USD per share) | $ 1.83 | $ 1.60 | $ 1.59 | $ 1.10 | $ 1.41 | $ 1.57 | $ 1.42 | $ 1.09 | $ 6.10 | $ 5.49 | $ 3.35 |
Discontinued operations (USD per share) | (0.01) | (0.04) | (0.06) | (0.03) | (0.47) | (0.06) | (0.03) | (0.05) | (0.14) | (0.62) | (0.19) |
Total basic earnings per share of common stock (USD per share) | 1.82 | 1.57 | 1.53 | 1.07 | 0.94 | 1.51 | 1.38 | 1.04 | 5.96 | 4.87 | 3.16 |
Continuing operations (USD per share) | 1.78 | 1.55 | 1.54 | 1.07 | 1.37 | 1.53 | 1.39 | 1.07 | 5.92 | 5.37 | 3.28 |
Discontinued operations (USD per share) | (0.01) | (0.04) | (0.06) | (0.03) | (0.46) | (0.06) | (0.03) | (0.05) | (0.13) | (0.60) | (0.19) |
Total diluted earnings per share of common stock (USD per share) | $ 1.77 | $ 1.52 | $ 1.49 | $ 1.04 | $ 0.91 | $ 1.47 | $ 1.36 | $ 1.02 | $ 5.79 | $ 4.76 | $ 3.09 |
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