10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 1, 2017.

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from [            ] to [            ]

Commission File Number 001-05224

STANLEY BLACK & DECKER, INC.

(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

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)

(860) 225-5111

(REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA CODE)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  þ    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  þ    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	þ		Accelerated filer	¨
Non-accelerated filer	¨	(Do not check if a smaller reporting company)	Smaller reporting company	¨
			Emerging growth company	¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  þ

152,973,215 shares of the registrant’s common stock were outstanding as of April 17, 2017.

TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION	3
ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	3
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	27
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	34
ITEM 4. CONTROLS AND PROCEDURES	34
PART II — OTHER INFORMATION	36
ITEM 1. LEGAL PROCEEDINGS	36
ITEM 1A. RISK FACTORS	36
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	36
ITEM 6. EXHIBITS	37
SIGNATURE	38

PART I — FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

THREE MONTHS ENDED APRIL 1, 2017 AND APRIL 2, 2016

(Unaudited, Millions of Dollars, Except Per Share Amounts)

	Year-to-Date
	2017			2016
Net Sales	$	2,805.6		$	2,672.1
Costs and Expenses
Cost of sales	$	1,740.3		$	1,694.5
Selling, general and administrative	676.5			620.4
Provision for doubtful accounts	8.2			7.4
Other, net	106.2			46.2
Gain on sales of businesses	(269.2		)	—
Pension settlement	12.5			—
Restructuring charges	15.8			8.0
Interest expense	51.3			47.3
Interest income	(8.6		)	(5.8		)
	$	2,333.0		$	2,418.0
Earnings before income taxes	472.6			254.1
Income taxes	79.5			65.5
Net earnings	$	393.1		$	188.6
Less: Net loss attributable to non-controlling interests	—			(0.8		)
Net Earnings Attributable to Common Shareowners	$	393.1		$	189.4
Total Comprehensive Income Attributable to Common Shareowners	$	506.6		$	269.2
Earnings per share of common stock:
Basic	$	2.63		$	1.30
Diluted	$	2.59		$	1.28
Dividends per share of common stock	$	0.58		$	0.55
Weighted-Average Shares Outstanding (in thousands):
Basic	149,208			145,870
Diluted	151,526			147,619

See Notes to (Unaudited) Condensed Consolidated Financial Statements.

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STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

APRIL 1, 2017 AND DECEMBER 31, 2016

(Unaudited, Millions of Dollars, Except Per Share Amounts)

	April 1, 2017			December 31, 2016
ASSETS
Current Assets
Cash and cash equivalents	$	378.0		$	1,131.8
Accounts and notes receivable, net	1,728.0			1,302.8
Inventories, net	1,976.7			1,478.0
Assets held for sale	—			523.4
Other current assets	285.6			352.5
Total Current Assets	4,368.3			4,788.5
Property, Plant and Equipment, net	1,538.3			1,451.2
Goodwill	8,364.2			6,694.0
Intangibles, net	3,603.3			2,299.5
Other Assets	788.0			401.7
Total Assets	$	18,662.1		$	15,634.9
LIABILITIES AND SHAREOWNERS' EQUITY
Current Liabilities
Short-term borrowings	$	1,159.3		$	4.3
Current maturities of long-term debt	8.1			7.8
Accounts payable	1,928.8			1,640.4
Accrued expenses	1,118.2			1,101.5
Liabilities held for sale	—			53.5
Total Current Liabilities	4,214.4			2,807.5
Long-Term Debt	3,815.6			3,815.3
Deferred Taxes	1,174.8			735.4
Post-Retirement Benefits	637.6			644.3
Other Liabilities	2,001.6			1,258.8
Commitments and Contingencies (Note R)
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 2017 and 2016 Issued 176,902,738 shares in 2017 and 2016	442.3			442.3
Retained earnings	5,433.8			5,127.3
Additional paid in capital	4,767.7			4,774.4
Accumulated other comprehensive loss	(1,807.7		)	(1,921.2		)
ESOP	(22.3		)	(25.9		)
	8,813.8			8,396.9
Less: cost of common stock in treasury	(2,002.3		)	(2,029.9		)
Stanley Black & Decker, Inc. Shareowners’ Equity	6,811.5			6,367.0
Non-controlling interests	6.6			6.6
Total Shareowners’ Equity	6,818.1			6,373.6
Total Liabilities and Shareowners’ Equity	$	18,662.1		$	15,634.9

See Notes to (Unaudited) Condensed Consolidated Financial Statements.

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STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED APRIL 1, 2017 AND APRIL 2, 2016

(Unaudited, Millions of Dollars)

	Year-to-Date
	2017			2016
OPERATING ACTIVITIES
Net Earnings Attributable to Common Shareowners	$	393.1		$	189.4
Adjustments to reconcile net earnings to cash used in operating activities:
Depreciation and amortization of property, plant and equipment	67.8			64.2
Amortization of intangibles	33.7			35.9
Pre-tax gain on sales of businesses	(269.2		)	—
Changes in working capital	(410.2		)	(268.0		)
Changes in other assets and liabilities	39.2			(114.6		)
Cash used in operating activities	(145.6		)	(93.1		)
INVESTING ACTIVITIES
Capital and software expenditures	(64.7		)	(64.9		)
Business acquisitions, net of cash acquired	(2,435.4		)	(13.0		)
Proceeds from sales of assets	19.3			2.1
Proceeds from sales of businesses	744.8			—
Proceeds (payments) from net investment hedge settlements	20.7			(2.4		)
Other	(3.8		)	(3.5		)
Cash used in investing activities	(1,719.1		)	(81.7		)
FINANCING ACTIVITIES
Stock purchase contract fees	—			(3.5		)
Net short-term borrowings	1,156.7			481.2
Cash dividends on common stock	(86.7		)	(79.6		)
Proceeds from issuances of common stock	17.3			8.5
Purchases of common stock for treasury	(13.5		)	(361.4		)
Other	(1.0		)	(0.7		)
Cash provided by financing activities	1,072.8			44.5
Effect of exchange rate changes on cash and cash equivalents	38.1			17.1
Change in cash and cash equivalents	(753.8		)	(113.2		)
Cash and cash equivalents, beginning of period	1,131.8			465.4
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	378.0		$	352.2

See Notes to (Unaudited) Condensed Consolidated Financial Statements.

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STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

NOTES TO (UNAUDITED) CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

APRIL 1, 2017

A. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (hereinafter referred to as “generally accepted accounting principles”) for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations for the interim periods have been included and are of a normal, recurring nature. Operating results for the three months ended April 1, 2017 are not necessarily indicative of the results that may be expected for a full fiscal year. For further information, refer to the consolidated financial statements and footnotes included in Stanley Black & Decker, Inc.’s (the “Company”) Form 10-K for the year ended December 31, 2016, and subsequent related filings with the Securities and Exchange Commission.

In February 2017, the Company sold the majority of its mechanical security businesses within the Security segment, which included the commercial hardware brands of Best Access, phi Precision and GMT. In addition, the Company sold a small business within the Tools & Storage segment on January 3, 2017. The operating results of these businesses have been reported within continuing operations in the Consolidated Financial Statements through their respective date of sale in 2017 and for the three months ended April 2, 2016. In addition, the assets and liabilities related to the businesses sold were classified as held for sale on the Company's Consolidated Balance Sheets as of December 31, 2016. Refer to Note T, Divestitures, for further discussion.

In March 2017, the Company acquired the Tools business of Newell Brands ("Newell Tools") and the Craftsman brand, which are both being accounted for as business combinations. The results of these acquisitions are being consolidated into the Company's Tools & Storage segment. Refer to Note F, Acquisitions, for further discussion.

The preparation of financial statements in conformity with generally accepted accounting principles 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.

B. New Accounting Standards

In March 2017, the Financial Accounting Standards Boards ("FASB") issued Accounting Standards Update ("ASU") 2017-07, Compensation-Retirement Benefits (Topic 715). The new standard improves the presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements.

In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610). The new standard provides guidance for recognizing gains and losses of nonfinancial assets in contracts with non-customers. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new standard simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. This ASU will be applied prospectively and is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The new standard narrows the definition of a business and provides a framework for evaluation. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years.

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In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. The new standard eliminates the exception to the principle in ASC 740, for all intra-entity sales of assets other than inventory, to be deferred, until the transferred asset is sold to a third party or otherwise recovered through use. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230). The objective of this update is to provide additional guidance and reduce diversity in practice when classifying certain transactions within the statement of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. These standards are effective for financial statements issued for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326). The new standard amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The objective of this update is to simplify several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU was effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company adopted this standard prospectively in the first quarter of 2017 and it did not have a material impact on its consolidated financial statements. Prior periods were not adjusted.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods and is to be applied utilizing a modified retrospective approach. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The main objective of this update is to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The new guidance addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the new guidance to determine the impact it may have 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 was effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company adopted this standard in the first quarter of 2017 and it did not have an impact on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The new revenue recognition standard outlines a comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The new model provides a five-step analysis in determining when and how revenue is recognized. The core principle of the new guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB affirmed its proposal to defer the effective date of the standard to annual reporting periods (and interim reporting periods within those years) beginning after December 15, 2017. Entities are permitted to apply the new revenue standard early, but not before the original effective date of annual periods beginning after December 15, 2016. The standard shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In March, April, May and December 2016, the FASB clarified the implementation guidance on principal versus agent, identifying performance obligations, licensing, collectability and made

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technical corrections on various topics. The Company expects to apply the full retrospective method of adoption starting with the first interim period after December 15, 2017. Based on the Company’s preliminary assessment, the anticipated impacts to the financial statements are primarily related to classification of outbound freight on the income statement and presentation of returns reserve.

C. 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 three months ended April 1, 2017 and April 2, 2016:

	Year-to-Date
	2017		2016
Numerator (in millions):
Net Earnings Attributable to Common Shareowners	$	393.1	$	189.4
Denominator (in thousands):
Basic earnings per share — weighted-average shares	149,208		145,870
Dilutive effect of stock contracts and awards	2,318		1,749
Diluted earnings per share — weighted-average shares	151,526		147,619
Earnings per share of common stock:
Basic	$	2.63	$	1.30
Diluted	$	2.59	$	1.28

The following weighted-average stock options were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive (in thousands):

	Year-to-Date
	2017	2016
Number of stock options	1,163	1,590

As described in detail in Note J, Equity Arrangements, the Company issued Equity Units in December 2013 comprised of $345.0 million of Notes and Equity Purchase Contracts, which obligated the holders to purchase on November 17, 2016, for $100, between 1.0122 and 1.2399 shares of the Company’s common stock. The shares related to the Equity Purchase Contracts were anti-dilutive during January and February 2016. Upon the November 17, 2016 settlement date, the Company issued 3,504,165 shares of common stock and received cash proceeds of $345.0 million.

D.    Financing Receivables

Long-term trade financing receivables of $183.6 million and $180.9 million at April 1, 2017 and December 31, 2016, respectively, are reported within Other Assets in the Condensed 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 under lease 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 non-performing.

The Company has an accounts receivable sale program that expires on 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 sheet 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

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purchase price receivable. At April 1, 2017, the Company did not record a servicing asset or liability related to its retained responsibility based on its assessment of the servicing fee, market values for similar transactions and its cost of servicing the receivables sold.

At April 1, 2017 and December 31, 2016, $65.3 million and $100.5 million, respectively, of net receivables were derecognized. Gross receivables sold amounted to $453.8 million ($388.9 million, net) for the three months ended April 1, 2017. These sales resulted in a pre-tax loss of $1.4 million, and included servicing fees of $0.2 million, for the three months ended April 1, 2017. Proceeds from transfers of receivables to the Purchaser totaled $337.0 million for the three months ended April 1, 2017. 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 $372.4 million for the three months ended April 1, 2017.

Gross receivables sold amounted to $384.7 million ($341.3 million, net) for the three months ended April 2, 2016. These sales resulted in a pre-tax loss of $1.0 million, and included servicing fees of $0.2 million, for the three months ended April 2, 2016. Proceeds from transfers of receivables to the Purchaser totaled $277.6 million for the three months ended April 2, 2016. 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 $294.2 million for the three months ended April 2, 2016.

The Company’s risk of loss following the sale of the receivables is limited to the deferred purchase price receivable, which was $166.8 million at April 1, 2017 and $83.2 million at December 31, 2016. 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. There were no delinquencies or credit losses for the three months ended April 1, 2017 and April 2, 2016. Cash inflows related to the deferred purchase price receivable totaled $129.9 million for the three months ended April 1, 2017, and $90.8 million for the three months ended April 2, 2016. All cash flows under the program are reported as a component of changes in working capital within operating activities in the Condensed 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.

E. Inventories

The components of Inventories, net at April 1, 2017 and December 31, 2016 are as follows:

(Millions of Dollars)	April 1, 2017		December 31, 2016
Finished products	$	1,455.7	$	1,044.2
Work in process	158.4		133.3
Raw materials	362.6		300.5
Total	$	1,976.7	$	1,478.0

As more fully disclosed in Note F, Acquisitions, the Company acquired inventory with estimated fair values of approximately $203.0 million and $18.0 million during the first quarter of 2017 related to the Newell Tools and Craftsman brand acquisitions, respectively.

F. Acquisitions

2017 ACQUISITIONS

Newell Tools

On March 9, 2017, the Company acquired the Tools business of Newell Brands ("Newell Tools"), which includes the industrial cutting, hand tool and power tool accessory brands Irwin® and Lenox®, for approximately $1.84 billion, net of cash acquired and an estimated working capital adjustment. This acquisition will enhance the Company’s position within the global tools & storage industry and broadens the Company’s product offerings and solutions to customers and end users, particularly within power tool accessories. The results of Newell Tools are being consolidated into the Company's Tools & Storage segment.

The Newell Tools acquisition is being accounted for as a business combination, which requires, among other things, the assets acquired and liabilities assumed to be recognized at their fair values as of the acquisition date. The following table summarizes the estimated fair values of major assets acquired and liabilities assumed:

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(Millions of Dollars)
Cash	$	17.1
Accounts and notes receivable	44.4
Inventory	203.0
Prepaid expenses and other current assets	4.6
Property, plant and equipment	98.0
Trade names	283.0
Customer relationships	540.0
Other assets	8.2
Accounts payable	(65.2		)
Accrued expenses	(19.7		)
Deferred taxes	(299.8		)
Other liabilities	(0.7		)
Total identifiable net assets	$	812.9
Goodwill	1,044.5
Total consideration paid	$	1,857.4

The trade names were determined to have indefinite lives. The weighted-average useful life assigned to the customer relationships was 15 years.

Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined business, assembled workforce, and the going concern nature of Newell Tools. It is estimated that $14.9 million of goodwill, relating to the pre-acquisition historical tax basis of goodwill, will be deductible for tax purposes.

The purchase price allocation for Newell Tools is preliminary in all respects. During the measurement period, the Company expects to record adjustments relating to the finalization of intangible asset, inventory and property, plant and equipment valuations, various opening balance sheet contingencies, including environmental remediation and risk insurance reserves, and various income tax matters, amongst others.

A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. The Company’s judgments used to determine the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact the Company’s results from operations. The Company will complete its purchase price allocation as soon as reasonably possible within the measurement period.

Craftsman Brand

On March 8, 2017, the Company purchased the Craftsman brand from Sears Holdings, which provides the Company with the rights to develop, manufacture and sell Craftsman-branded products in non-Sears Holdings channels. The total estimated cash purchase price is $889.8 million, consisting of a cash payment at closing of $571.8 million, which reflects the impact of working capital adjustments, a cash payment at the end of year three with an estimated present value of $234.0 million, and future payments to Sears Holdings of between 2.5% and 3.5% on new Stanley Black & Decker sales of Craftsman products through March 2032, which was valued at $84.0 million at the acquisition date based on estimated future sales projections which are subject to change. Refer to Note M, Fair Value Measurements, for additional details. In addition, as part of the acquisition the Company also granted a perpetual license to Sears Holdings to continue selling Craftsman®-branded product in Sears-related channels. The perpetual license will be royalty-free until March 2032, which represents an estimated value of approximately $300.0 million, and 3% thereafter. The estimated fair value of the royalty-free license period is preliminary and based on estimated future sales projections which are subject to change. The Craftsman results are being consolidated into the Company's Tools & Storage segment.

The Craftsman brand acquisition is being accounted for as a business combination which requires, among other things, the assets acquired and liabilities assumed to be recognized at their fair values as of the acquisition date. The estimated fair value of assets acquired, which includes $47.6 million of working capital and $487.0 million of intangible assets, is $648.9 million. The related goodwill is approximately $540.9 million. The amount allocated to intangible assets includes $466.0 million of an indefinite-lived trade name. The useful life assigned to the customer relationships was 15 years.

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Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined business and the going concern nature of the Craftsman brand. Goodwill is not expected to be deductible for tax purposes.

The purchase price allocation for Craftsman is preliminary in all respects. During the measurement period, the Company expects to record adjustments relating to the finalization of valuations for intangible assets, inventory, the contingent consideration liability relating to future payments to Sears Holdings and the royalty-free license period described above, and various opening balance sheet contingencies, including warranty exposures, amongst others.

A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. The Company’s judgments used to determine the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact the Company’s results from operations. The Company will complete its purchase price allocation as soon as reasonably possible within the measurement period.

OTHER ACQUISITIONS

The Company also completed one smaller acquisition during the first quarter of 2017 for a total purchase price of $26.1 million, net of cash acquired, which is being consolidated into the Security segment.

2016 ACQUISITIONS

During 2016, the Company completed five small acquisitions for a total purchase price of $59.3 million, net of cash acquired, which are being integrated into the Company’s Tools & Storage and Security segments. The total purchase price for the acquisitions was allocated to the assets acquired and liabilities assumed based on their estimated fair values. The purchase accounting for these acquisitions is substantially complete with the exception of certain minor items and will be completed within the measurement period.

ACTUAL AND PRO-FORMA IMPACT OF THE ACQUISTIONS

Actual Impact from Acquisitions

The Company's Consolidated Statements of Operations and Comprehensive Income for the first quarter of 2017 include net sales of $66.1 million and a net loss of $32.5 million from 2017 acquisitions. These amounts include amortization relating to inventory step-up and intangible assets recorded upon acquisition, transaction costs, and other integration-related costs.

Pro-forma Impact from Acquisitions

The following table presents supplemental pro-forma information as if the acquisitions had occurred on January 3, 2016. The pro-forma consolidated results are not necessarily indicative of what the Company’s consolidated net earnings would have been had the Company completed the acquisitions on January 3, 2016. In addition, the pro-forma consolidated results do not purport to project the future results of the combined Company.

	First Quarter
(Millions of Dollars, except per share amounts)	2017		2016
Net sales	$	2,953.2	$	2,876.9
Net earnings attributable to common shareowners	436.9		142.3
Diluted earnings per share	$	2.88	$	0.96

2017 Pro-forma Results

The 2017 pro-forma results were calculated by combining the results of Stanley Black & Decker with the stand-alone results of the 2017 acquisitions for their respective pre-acquisition periods. Accordingly the following adjustments were made:

• Elimination of the historical pre-acquisition intangible asset amortization expense and the addition of intangible asset amortization expense related to intangibles valued as part of the purchase price allocation that would have been incurred from January 1, 2017 to the acquisition dates.

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• Because the 2017 acquisitions were assumed to occur on January 3, 2016, there were no deal costs or inventory step-up amortization factored into the 2017 pro-forma year, as such expenses would have occurred in the first year following the acquisition.

2016 Pro-forma Results

The 2016 pro-forma results were calculated by taking the historical financial results of Stanley Black & Decker and adding the historical results of the 2017 acquisitions for their respective pre-acquisition periods. Accordingly the following adjustments were made assuming the acquisitions commenced on January 3, 2016:

• Elimination of the historical pre-acquisition intangible asset amortization expense and the addition of intangible asset amortization expense related to intangibles valued as part of the purchase price allocation that would have been incurred from January 3, 2016 to April 2, 2016.

• Additional expense for deal costs and inventory step-up, which would have been amortized as the corresponding inventory was sold.

G.    Goodwill

Changes in the carrying amount of goodwill by segment are as follows:

(Millions of Dollars)	Tools & Storage		Security		Industrial		Total
Balance December 31, 2016	$	3,247.8	$	2,007.0	$	1,439.2	$	6,694.0
Acquisition adjustments	1,585.4		15.7		—		1,601.1
Foreign currency translation and other	54.1		9.8		5.2		69.1
Balance April 1, 2017	$	4,887.3	$	2,032.5	$	1,444.4	$	8,364.2

In the first quarter of 2017, goodwill increased by approximately $1.7 billion, which primarily related to the Newell Tools and Craftsman brand acquisitions. The goodwill amounts for these acquisitions are subject to change based upon the allocation of the consideration transferred to the assets acquired and liabilities assumed. Refer to Note F, Acquisitions, for further discussion.

H. Long-Term Debt and Financing Arrangements

Long-term debt and financing arrangements at April 1, 2017 and December 31, 2016 are as follows:

		April 1, 2017																December 31, 2016
(Millions of Dollars)	Interest Rate	Original Notional		Unamortized Discount			Unamortized Gain/(Loss) Terminated Swaps (1)			Purchase Accounting FV Adjustment		Deferred Financing Fees			Carrying Value			Carrying Value
Notes payable due 2018	2.45%	$	632.5	$	—		$	—		$	—	$	(2.9	)	$	629.6		$	629.2
Notes payable due 2018	1.62%	345.0		—			—			—		(1.6		)	343.4			343.1
Notes payable due 2021	3.40%	400.0		(0.2		)	16.2			—		(1.6		)	414.4			415.2
Notes payable due 2022	2.90%	754.3		(0.4		)	—			—		(3.5		)	750.4			750.3
Notes payable due 2028	7.05%	150.0		—			12.3			11.9		—			174.2			174.7
Notes payable due 2040	5.20%	400.0		(0.2		)	(34.5		)	—		(3.2		)	362.1			361.7
Notes payable due 2052 (junior subordinated)	5.75%	750.0		—			—			—		(19.4		)	730.6			730.4
Notes payable due 2053 (junior subordinated)	5.75%	400.0		—			4.8			—		(8.2		)	396.6			396.5
Other, payable in varying amounts through 2022	0.00% - 2.90%	22.4		—			—			—		—			22.4			22.0
Total long-term debt, including current maturities		$	3,854.2	$	(0.8	)	$	(1.2	)	$	11.9	$	(40.4	)	$	3,823.7		$	3,823.1
Less: Current maturities of long-term debt															(8.1		)	(7.8		)
Long-term debt															$	3,815.6		$	3,815.3

⁽¹⁾Unamortized gain/loss associated with interest rate swaps are more fully discussed in Note I, Financial Instruments.

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In January 2017, the Company amended its existing $2.0 billion commercial paper program to increase the maximum amount of notes authorized to be issued to $3.0 billion and to include Euro denominated borrowings in addition to U.S. Dollars. As of April 1, 2017, the Company had $1.2 billion of borrowings outstanding against the Company’s $3.0 billion commercial paper program, of which approximately $961.7 million in Euro denominated commercial paper was designated as a Net Investment Hedge as described in more detail in Note I, Financial Instruments. At December 31, 2016, the Company had no commercial paper borrowings outstanding.

In January 2017, the Company also executed a 364-day $1.3 billion committed credit facility (the "2017 Credit Agreement"). The 2017 Credit Agreement consists of a $1.3 billion revolving credit loan and a sub-limit of an amount equal to the Euro equivalent of $400 million for swing line advances. Borrowings under the 2017 Credit Agreement may be made in U.S. Dollars or Euros, pursuant to the terms of the agreement, and bear interest at a floating rate dependent on the denomination of the borrowing. Repayments must be made by January 17, 2018 or upon an earlier termination of the 2017 Credit Agreement at the election of the Company. The 2017 Credit Agreement serves as a liquidity back-stop for the Company’s $3.0 billion U.S. Dollar and Euro commercial paper program, also authorized and amended in January 2017, as discussed above. As of April 1, 2017, the Company had not drawn on this commitment.

As of April 1, 2017 and December 31, 2016, the Company had not drawn on its existing five year $1.75 billion committed credit facility.

I.    Financial Instruments

The Company is exposed to market risk from changes in foreign currency exchange rates, interest rates, stock prices and commodity prices. As part of the Company’s risk management program, a variety of financial instruments such as interest rate swaps, currency swaps, purchased currency options, foreign exchange contracts and commodity contracts may be used to mitigate interest rate exposure, foreign currency exposure and commodity price exposure.

If the Company elects to do so and if the instrument meets the criteria specified in ASC 815, "Derivatives and Hedging," management designates its derivative instruments as cash flow hedges, fair value hedges or net investment hedges. Generally, commodity price exposures are not hedged with derivative financial instruments and instead are actively managed through customer pricing initiatives, procurement-driven cost reduction initiatives and other productivity improvement projects. Financial instruments are not utilized for speculative purposes.

A summary of the fair values of the Company’s financial instruments recorded in the Condensed Consolidated Balance Sheets at April 1, 2017 and December 31, 2016 follows: 

(Millions of Dollars)	Balance Sheet Classification	April 1, 2017		December 31, 2016		Balance Sheet Classification	April 1, 2017		December 31, 2016
Derivatives designated as hedging instruments:
Interest Rate Contracts Cash Flow	LT other assets	$	—	$	—	LT other liabilities	$	43.4	$	47.3
Foreign Exchange Contracts Cash Flow	Other current assets	22.4		37.6		Accrued expenses	1.9		1.6
	LT other assets	0.7		—		LT other liabilities	—		—
Net Investment Hedge	Other current assets	6.2		44.1		Accrued expenses	10.7		1.8
	LT other assets	—		—		LT other liabilities	10.6		0.5
Non-derivative designated as hedging instrument:
Net Investment Hedge		—		—		Short term borrowings	961.7		—
Total Designated		$	29.3	$	81.7		$	1,028.3	$	51.2
Derivatives not designated as hedging instruments:
Foreign Exchange Contracts	Other current assets	$	10.6	$	28.5	Accrued expenses	$	3.2	$	46.4
Total Undesignated		$	10.6	$	28.5		$	3.2	$	46.4

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

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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.

During the three months ended April 1, 2017 and April 2, 2016, cash flows related to derivatives, including those that are separately discussed below, resulted in net cash received of $30.0 million and net cash paid of $0.9 million, respectively.

CASH FLOW HEDGES

As of April 1, 2017 and December 31, 2016, there was an after-tax mark-to-market loss of $53.6 million and $46.3 million, respectively, reported for cash flow hedge effectiveness in Accumulated other comprehensive loss. An after-tax loss of $7.9 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 three months ended April 1, 2017 and April 2, 2016 (in millions): 

Year-to-Date 2017	Gain (Loss) 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	$	3.8		Interest expense	$	—	$	—
Foreign Exchange Contracts	$	(8.7	)	Cost of sales	$	4.5	$	—

Year-to-Date 2016	Gain (Loss) 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	$	(31.6	)	Interest expense	$	—	$	—
Foreign Exchange Contracts	$	(21.9	)	Cost of sales	$	18.6	$	—

 * Includes ineffective portion and amount excluded from effectiveness testing on derivatives.

For the three months ended April 1, 2017, the hedged items' impact to the Consolidated Statements of Operations and Comprehensive Income was a loss of $4.5 million in Cost of sales, which is offsetting the amounts shown above. For the three months ended April 2, 2016, the hedged items’ impact to the Consolidated Statements of Operations and Comprehensive Income was a loss of $18.6 million. There was no impact related to the interest rate contracts' hedged items for all periods presented.

For the three months ended April 1, 2017, an after-tax gain of $0.4 million was reclassified from Accumulated other comprehensive loss into earnings (inclusive of the gain/loss amortization on terminated derivative instruments) during the periods in which the underlying hedged transactions affected earnings. For the three months ended April 2, 2016, an after-tax gain of $9.3 million was reclassified from Accumulated other comprehensive loss into earnings (inclusive of the gain/loss amortization on terminated derivative 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-debt proportions. At April 1, 2017 and December 31, 2016, the Company had $400 million of forward starting swaps outstanding which were executed in 2014. The objective of the hedges is to offset the expected variability on future payments associated with the interest rate on debt instruments expected to be issued in 2018. Gains or losses on the swaps are recorded in Accumulated other comprehensive loss and will be subsequently reclassified into earnings as the future interest expense is recognized in earnings or as ineffectiveness occurs.

Foreign Currency Contracts

Forward Contracts: Through its global businesses, the Company enters into transactions and makes investments denominated in multiple currencies that give rise to foreign currency risk. The Company and its subsidiaries regularly purchase inventory from subsidiaries with functional currencies different than their own, which creates currency-related volatility in the Company’s results of operations. The Company utilizes forward contracts to hedge these forecasted purchases and sales of

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inventory. Gains and losses reclassified from Accumulated other comprehensive loss for the effective portion of the hedge are recorded in Cost of sales. The ineffective portion, if any, as well as gains and losses incurred after a hedge has been de-designated are not recorded in Accumulated other comprehensive loss, but are recorded directly to the Consolidated Statements of Operations and Comprehensive Income in Other, net. At April 1, 2017, the notional value of forward currency contracts outstanding was $587.6 million, maturing on various dates through 2018. At December 31, 2016, the notional value of forward currency contracts outstanding was $503.8 million, maturing on various dates through 2017.

Purchased Option Contracts: The Company and its subsidiaries have entered into various intercompany transactions whereby the notional values are denominated in currencies other than the functional currencies of the party executing the trade. In order to better match the cash flows of its intercompany obligations with cash flows from operations, the Company enters into purchased option contracts. Gains and losses reclassified from Accumulated other comprehensive loss for the effective portions of the hedge are recorded in Cost of sales. The ineffective portion, if any, as well as gains and losses incurred after a hedge has been de-designated are not recorded in Accumulated other comprehensive loss, but are recorded directly to the Consolidated Statements of Operations and Comprehensive Income in Other, net. At April 1, 2017, the notional value of purchased option contracts was $187.5 million maturing on various dates through 2017. As of December 31, 2016, the notional value of purchased option contracts was $252.0 million, maturing on various dates through 2017.

FAIR VALUE HEDGES

Interest Rate Risk: In an effort to optimize the mix of fixed versus floating rate debt in the Company’s capital structure, the Company enters into interest rate swaps. In previous years, the Company entered into interest rate swaps on the first five years of the Company's $400 million5.75% notes due 2053, interest rate swaps with notional values which equaled the Company's $400 million3.40% notes due 2021 and the Company's $150 million7.05% notes due 2028. These interest rate swaps effectively converted the Company's fixed rate debt to floating rate debt based on LIBOR, thereby hedging the fluctuation in fair value resulting from changes in interest rates. In the second quarter of 2016, the Company terminated all of the above interest rate swaps and there were no open contracts as of April 1, 2017 and December 31, 2016. The terminations resulted in cash receipts of $27.0 million. This gain was deferred and is being amortized to earnings over the remaining life of the notes.

Prior to termination of the Company’s interest rate swaps discussed above, the changes in fair value of the swaps and the offsetting changes in fair value related to the underlying notes were recognized in earnings. A summary of fair value adjustments relating to these swaps is as follows (in millions):

	Year-to-Date 2016
Income Statement Classification	Gain/(Loss) on Swaps*		Gain /(Loss) on Borrowings
Interest Expense	$	25.3	$	(25.2	)

*Includes ineffective portion and amount excluded from effectiveness testing.

Amortization of the gain/loss on terminated swaps of $0.8 million are reported as a reduction of interest expense for the three months ended April 1, 2017. In addition to the fair value adjustments in the table above, net swap accruals and amortization of the gain/loss on terminated swaps of $3.0 million are reported as a reduction of interest expense for the three months ended April 2, 2016. Interest expense on the underlying debt when the hedge was active was $11.8 million for the three months ended April 2, 2016.

NET INVESTMENT HEDGES

Foreign Exchange Contracts: The Company utilizes net investment hedges to offset the translation adjustment arising from re-measurement of its investment in the assets and liabilities of its foreign subsidiaries. The total after-tax amounts in Accumulated other comprehensive loss were gains of $78.4 million and $88.6 million at April 1, 2017 and December 31, 2016, respectively.

As of April 1, 2017, the Company had foreign exchange forward contracts maturing on various dates in 2017 with notional values totaling $732.0 million outstanding hedging a portion of its British pound sterling, Mexican peso, Swedish krona, Euro and Canadian dollar denominated net investments; a cross currency swap with a notional value totaling $250.0 million maturing in 2023 hedging a portion of its Japanese yen denominated net investment; and Euro denominated commercial paper with a notional value of $961.7 million maturing in 2017 hedging a portion of its Euro denominated net investments. As of December 31, 2016, the Company had foreign exchange contracts maturing on various dates in 2017 with notional values totaling $1.0 billion outstanding hedging a portion of its British pound sterling, Mexican peso, Swedish krona, Euro and Canadian dollar denominated net investments, and a cross currency swap with a notional value totaling $250.0 million

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maturing 2023 hedging a portion of its Japanese yen denominated net investment. For the three months ended April 1, 2017 and April 2, 2016, maturing foreign exchange contracts resulted in net cash received of $20.7 million and net cash paid of $2.4 million, respectively.

Gains and losses on net investment hedges remain in Accumulated other comprehensive income (loss) until disposal of the underlying assets. Gains and losses after a hedge has been de-designated are recorded directly to the Consolidated Statements of Operations and Comprehensive Income in Other, net.

The pre-tax gain or loss from fair value changes was as follows (in millions):

	Year-to-Date 2017
Income Statement Classification	Amount Recorded in  OCI (Loss) Gain			Effective Portion Recorded in  Income Statement		Ineffective Portion* Recorded in Income Statement
Other, net	$	(15.7	)	$	—	$	—

	Year-to-Date 2016
Income Statement Classification	Amount Recorded in  OCI Gain (Loss)		Effective Portion Recorded in  Income Statement		Ineffective Portion* Recorded in Income Statement
Other, net	$	2.6	$	—	$	—

*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 forward contracts outstanding at April 1, 2017 was $1.2 billion, maturing on various dates in 2017. The total notional amount of the forward contracts outstanding at December 31, 2016 was $1.5 billion, maturing on various dates in 2017. The income statement impacts related to derivatives not designated as hedging instruments for the three months ended April 1, 2017 and April 2, 2016 are as follows (in millions): 

Derivatives Not Designated as Hedging Instruments under ASC 815	Income Statement Classification	Year-to-Date 2017 Amount of Gain (Loss) Recorded in Income on Derivative
Foreign Exchange Contracts	Other, net	$	28.6

Derivatives Not Designated as Hedging Instruments under ASC 815	Income Statement Classification	Year-to-Date 2016 Amount of Gain (Loss) Recorded in Income on Derivative
Foreign Exchange Contracts	Other, net	$	(6.0	)

J.    Equity Arrangements

In 2016, the Company repurchased 3,940,087 shares of common stock for approximately $374.1 million. Additionally, the Company net-share settled capped call options on its common stock and received 711,376 shares during 2016. Refer to Note J, Capital Stock, of the Company's Form 10-K for the year ended December 31, 2016.

In November 2016, the Company issued 3,504,165 shares of common stock to settle the purchase contracts of the 2013 Equity Units. See further discussion below.

In March 2015, the Company entered into a forward share purchase contract with a financial counterparty for 3,645,510 shares of common stock. The contract obligates the Company to pay $350.0 million, plus an additional amount related to the forward

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component of the contract. In November 2016, the Company amended the settlement date to April 2019, or earlier at the Company's option. The reduction of common shares outstanding was recorded at the inception of the forward share purchase contract in March 2015 and factored into the calculation of weighted-average shares outstanding at that time.

In October 2014, the Company entered into a forward share purchase contract on its common stock. The contract obligated the Company to pay $150.0 million, plus an additional amount related to the forward component of the contract, to the financial institution counterparty not later than October 2016, or earlier at the Company’s option, for the 1,603,822 shares purchased. The reduction of common shares outstanding was recorded at the inception of the forward share purchase contract in October 2014 and factored into the calculation of weighted-average shares outstanding at that time. In October 2016, the Company physically settled the contract, receiving 1,603,822 shares for a settlement amount of $147.4 million. Refer to Note J, Capital Stock, of the Company's Form 10-K for the year ended December 31, 2016, for additional disclosure related to the shares physically received.

As described more fully in Note H, Long-Term Debt and Financing Arrangements, of the Company’s Form 10-K for the year ended December 31, 2016, 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). 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. 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.

Equity Units and Capped Call Transactions

As described more fully in Note H, Long-Term Debt and Financing Arrangements, of the Company’s Form 10-K for the year ended December 31, 2016, in December 2013, the Company issued Equity Units comprised of $345.0 million of Notes and Equity Purchase Contracts. The Equity Purchase Contracts obligated the holders to purchase on November 17, 2016, for $100.00, between 1.0122 and 1.2399 shares of the Company’s common stock, which are equivalent to an initial settlement price of $98.80 and $80.65, respectively, per share of common stock.

In accordance with the Equity Purchase Contracts, on November 17, 2016, the Company issued 3,504,165 shares of common shares and received additional cash proceeds of $345.0 million. The conversion rate used in calculating the average of the daily volume-weighted-average price of common stock during the market value averaging period, was 1.0157 (equivalent to the minimum settlement rate and a conversion price of $98.45 per common share) on November 17, 2016.

Contemporaneously with the issuance of the Equity Units described above, the Company paid $9.7 million, or an average of $2.77 per option, to enter into capped call transactions on 3.5 million shares of common stock with a major financial institution. The purpose of the capped call transactions was to offset the potential economic dilution associated with the common shares issuable upon the settlement of the Equity Purchase Contracts. Refer to Note H, Long-Term Debt and Financing Arrangements, of the Company’s Form 10-K for the year ended December 31, 2016 for further discussion. The $9.7 million premium paid was recorded as a reduction to equity.

The capped call transactions cover, subject to customary anti-dilution adjustments, the number of shares equal to the number of shares issuable upon settlement of the Equity Purchase Contracts at the 1.0122 minimum settlement rate. In October and November 2016, the Company's capped call options on its common stock expired and were net-share settled resulting in the Company receiving 418,234 shares using an average reference price of $117.84 per common share.

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K.    Accumulated Other Comprehensive Loss

The following tables summarize the changes in the balances for each component of accumulated other comprehensive loss:

(Millions of Dollars)	Currency translation adjustment and other			Unrealized losses on cash flow hedges, net of tax			Unrealized gains (losses) on net investment hedges, net of tax			Pension (losses) gains, net of tax			Total
Balance - December 31, 2016	$	(1,586.3	)	$	(46.3	)	$	88.6		$	(377.2	)	$	(1,921.2	)
Other comprehensive income (loss) before reclassifications	114.6			(6.9		)	(10.2		)	(2.7		)	94.8
Adjustments related to sales of businesses	4.7			—			—			2.6			7.3
Reclassification adjustments to earnings	—			(0.4		)	—			11.8			11.4
Net other comprehensive income (loss)	119.3			(7.3		)	(10.2		)	11.7			113.5
Balance - April 1, 2017	$	(1,467.0	)	$	(53.6	)	$	78.4		$	(365.5	)	$	(1,807.7	)

(Millions of Dollars)	Currency translation adjustment and other			Unrealized losses on cash flow hedges, net of tax			Unrealized gains on net investment hedges, net of tax		Pension (losses) gains, net of tax			Total
Balance - January 2, 2016	$	(1,300.9	)	$	(52.1	)	$	11.8	$	(353.0	)	$	(1,694.2	)
Other comprehensive income (loss) before reclassifications	128.0			(43.8		)	1.6		0.5			86.3
Reclassification adjustments to earnings	—			(9.3		)	—		2.8			(6.5		)
Net other comprehensive income (loss)	128.0			(53.1		)	1.6		3.3			79.8
Balance - April 2, 2016	$	(1,172.9	)	$	(105.2	)	$	13.4	$	(349.7	)	$	(1,614.4	)

The reclassifications out of accumulated other comprehensive loss for the three months ended April 1, 2017 and April 2, 2016 were as follows (in millions):

Reclassifications from Accumulated other comprehensive loss to earnings	2017			2016			Affected line item in Consolidated Statements of Operations And Comprehensive Income
Realized gains on cash flow hedges	$	4.5		$	18.6		Cost of sales
Realized losses on cash flow hedges	(3.8		)	(3.8		)	Interest expense
Total before taxes	$	0.7		$	14.8
Tax effect	(0.3		)	(5.5		)	Income taxes on continuing operations
Realized gains on cash flow hedges, net of tax	$	0.4		$	9.3
Amortization of defined benefit pension items:
Actuarial losses and prior service costs / credits	$	(2.3	)	$	(2.6	)	Cost of sales
Actuarial losses and prior service costs / credits	(1.6		)	(1.7		)	Selling, general and administrative
Settlement loss	(12.5		)	—			Other, net
Total before taxes	$	(16.4	)	$	(4.3	)
Tax effect	4.6			1.5			Income taxes on continuing operations
Amortization of defined benefit pension items, net of tax	$	(11.8	)	$	(2.8	)

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L.    Net Periodic Benefit Cost — Defined Benefit Plans

Following are the components of net periodic pension (benefit) expense for the three months ended April 1, 2017 and April 2, 2016:

	Year-to-Date
	Pension Benefits												Other Benefits
	U.S. Plans						Non-U.S. Plans						All Plans
(Millions of Dollars)	2017			2016			2017			2016			2017			2016
Service cost	$	2.3		$	2.3		$	3.3		$	3.2		$	0.1		$	0.2
Interest cost	10.7			11.3			7.0			9.6			0.4			0.4
Expected return on plan assets	(16.1		)	(16.9		)	(11.0		)	(11.7		)	—			—
Amortization of prior service cost (credit)	0.3			1.3			(0.3		)	0.1			(0.3		)	(0.3		)
Amortization of net loss	1.9			1.7			2.3			1.5			—			—
Settlement / curtailment loss	—			—			12.5			0.1			—			—
Net periodic pension (benefit) expense	$	(0.9	)	$	(0.3	)	$	13.8		$	2.8		$	0.2		$	0.3

In March 2017, a pre-tax charge of approximately $12.5 million was recorded, reflecting losses previously reported in accumulated other comprehensive loss related to a non-U.S. pension plan for which the Company settled its obligation by purchasing an annuity and making lump sum payments to participants.

M.    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 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 values of these financial instruments through the use of matrix or model pricing, which utilizes observable inputs such as market interest and currency rates. When determining the fair values 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:

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(Millions of Dollars)	Total		Level 1		Level 2		Level 3
April 1, 2017
Money market fund	$	4.3	$	4.3	$	—	$	—
Derivative assets	$	39.9	$	—	$	39.9	$	—
Derivative and non-derivative liabilities	$	1,031.5	$	—	$	1,031.5	$	—
Contingent consideration liability	$	84.0	$	—	$	—	$	84.0
December 31, 2016
Money market fund	$	4.3	$	4.3	$	—	$	—
Derivative assets	$	110.2	$	—	$	110.2	$	—
Derivative liabilities	$	97.6	$	—	$	97.6	$	—

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 April 1, 2017 and December 31, 2016:

	April 1, 2017				December 31, 2016
(Millions of Dollars)	Carrying Value		Fair Value		Carrying Value		Fair Value
Other investments	$	8.9	$	9.2	$	8.9	$	9.2
Derivative assets	$	39.9	$	39.9	$	110.2	$	110.2
Derivative and non-derivative liabilities	$	1,031.5	$	1,031.5	$	97.6	$	97.6
Long-term debt, including current portion	$	3,823.7	$	3,991.4	$	3,823.1	$	3,967.4

As discussed in Note F, Acquisitions, the Company recorded a contingent consideration liability in the first quarter of 2017 relating to the Craftsman brand acquisition representing the Company's obligation to make future payments to Sears Holdings of between 2.5% and 3.5% on new Stanley Black & Decker sales of Craftsman products through March 2032. The estimated fair value of this liability is $84.0 million at April 1, 2017. The fair value was estimated using Level 3 inputs, including the contractual royalty rates and future sales projections. There was no change in the fair value of the contingent consideration from the date of acquisition through April 1, 2017.

The Company had no other significant non-recurring fair value measurements, nor any financial assets measured using Level 3 inputs, during the first three months of 2017 or 2016.

The money market fund and other investments outlined in the tables above 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 the stated cash flows in each obligation discounted at 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 April 1, 2017 and December 31, 2016. The fair values of foreign currency and interest rate swap agreements, comprising the derivative assets and liabilities in the table above, are based on current settlement values.

As discussed in Note D, Financing Receivables, 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, Financial Instruments, for more details regarding financial instruments, Note R, Commitments and 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.

N.    Other Costs and Expenses

Other, net is primarily comprised of intangible asset amortization expense, currency-related gains or losses, environmental remediation expense and acquisition-related transaction costs. In the first quarter of 2017, $40.0 million was recorded to Other, net for acquisition-related transaction and consulting costs primarily related to the Newell Tools and Craftsman brand acquisitions.

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O.    Restructuring Charges

A summary of the restructuring reserve activity from December 31, 2016 to April 1, 2017 is as follows:

(Millions of Dollars)	December 31, 2016		Net Additions		Usage			Currency		April 1, 2017
Severance and related costs	$	21.4	$	11.8	$	(9.0	)	$	0.3	$	24.5
Facility closures and asset impairments	14.2		4.0		(3.8		)	—		14.4
Total	$	35.6	$	15.8	$	(12.8	)	$	0.3	$	38.9

For the three months ended April 1, 2017, the Company recognized net restructuring charges of $15.8 million. This amount reflects $11.8 million of net severance charges associated with the reduction of approximately 180 employees. The Company also had $4.0 million of facility closure and other restructuring costs.

The majority of the $38.9 million of reserves remaining as of April 1, 2017 is expected to be utilized within the next 12 months.

Segments: The $16 million of net restructuring costs for the three months ended April 1, 2017 includes: $6 million pertaining to the Tools & Storage segment; $7 million pertaining to the Security segment; and $3 million pertaining to the Industrial segment.

P. Income Taxes

The Company recognized income tax expense of $79.5 million for the three months ended April 1, 2017, resulting in an effective tax rate of 16.8%. The effective tax rate differs from the U.S. statutory tax rate primarily due to a portion of the Company’s earnings being realized in lower-taxed foreign jurisdictions and the utilization of U.S. tax attributes during the first quarter of 2017 due to the divestiture of the mechanical security businesses. Non-deductible transaction costs and other acquisition-related restructuring items partially offset the net tax benefits mentioned above for the three months ended April 1, 2017. Excluding the tax impact of the divestitures and acquisition-related charges in the first quarter of 2017, the effective rate is 25.0%.

The Company recognized income tax expense of $65.5 million for the three months ended April 2, 2016, resulting in an effective tax rate of 25.8%. The effective tax rate differed from the U.S. statutory tax rate primarily due to a portion of the Company’s earnings being realized in lower-taxed foreign jurisdictions and the finalization of audit settlements.

The Company is subject to the examination of its income tax returns by the Internal Revenue Service and other taxing authorities both domestically and internationally. The final outcome of the future tax consequences of these examinations and legal proceedings, as well as the outcome of competent authority proceedings, changes and interpretation in regulatory tax laws, or expiration of statute of limitations could impact the Company’s financial statements. Accordingly, the Company has tax reserves recorded for which it is reasonably possible that the amount of the unrecognized tax benefit will increase or decrease which could have a material effect on the financial results for any particular fiscal quarter or year. However, based on the uncertainties associated with litigation and the status of examinations, including the protocols of finalizing audits by the relevant tax authorities which could include formal legal proceedings, it is not possible to estimate the impact of any such change.

Q.    Business Segments

The Company's operations are classified into three reportable business segments, which also represent its operating segments: Tools & Storage, Security and Industrial.

The Tools & Storage segment is comprised of the Power Tools & Equipment ("PTE") and Hand Tools, Accessories & Storage ("HTAS") businesses. The PTE business includes both professional and consumer products. Professional products include professional grade corded and cordless electric power tools and equipment including drills, impact wrenches and drivers, grinders, saws, routers and sanders, as well as pneumatic tools and fasteners including nail guns, nails, staplers and staples, concrete and masonry anchors. Consumer products include corded and cordless electric power tools sold primarily under the BLACK+DECKER brand, lawn and garden products, including hedge trimmers, string trimmers, lawn mowers, edgers and related accessories, and home products such as hand-held vacuums, paint tools and cleaning appliances. The HTAS business sells measuring, leveling and layout tools, planes, hammers, demolition tools, clamps, vises, knives, saws, chisels and industrial and automotive tools. Power tool accessories include drill bits, router bits, abrasives and saw blades. Storage products include tool boxes, sawhorses, medical cabinets and engineered storage solution products.

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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 sells healthcare solutions, which markets asset tracking, infant protection, pediatric protection, patient protection, wander management, fall management, and emergency call products. The MAS business primarily sells automatic doors.

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 charges, gain on sales of businesses, pension settlement and income taxes. Refer to Note O, Restructuring Charges, for the amount of net restructuring charges by segment. Corporate overhead is comprised of world headquarters facility expense, cost for the executive management team and cost for certain centralized functions that benefit the entire Company but are not directly attributable to the businesses, such as legal and corporate finance functions. Transactions between segments are not material. Segment assets primarily include cash, accounts receivable, inventory, other current assets, property, plant and equipment, intangible assets and other miscellaneous assets.

	Year-to-Date
(Millions of Dollars)	2017			2016
NET SALES
Tools & Storage	$	1,854.5		$	1,706.9
Security	478.5			504.2
Industrial	472.6			461.0
Total	$	2,805.6		$	2,672.1
SEGMENT PROFIT
Tools & Storage	$	287.3		$	262.0
Security	50.9			60.2
Industrial	86.3			76.0
Segment profit	424.5			398.2
Corporate overhead	(43.9		)	(48.4		)
Other, net	(106.2		)	(46.2		)
Gain on sales of businesses	269.2			—
Pension settlement	(12.5		)	—
Restructuring charges	(15.8		)	(8.0		)
Interest expense	(51.3		)	(47.3		)
Interest income	8.6			5.8
Earnings before income taxes	$	472.6		$	254.1

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The following table is a summary of total assets by segment as of April 1, 2017 and December 31, 2016:

(Millions of Dollars)	April 1, 2017			December 31, 2016
Tools & Storage	$	12,507.6		$	8,512.4
Security	3,152.8			3,139.0
Industrial	3,434.8			3,359.0
	19,095.2			15,010.4
Assets held for sale	—			523.4
Corporate assets	(433.1		)	101.1
Consolidated	$	18,662.1		$	15,634.9

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.

R. Commitments and 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 second phase of the trial addressing the remedy and certain other issues commenced on September 26, 2016 and closing arguments were held on April 4, 2017. The Company is waiting for a decision to be issued by the Court. 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

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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 April 1, 2017.

In the normal course of business, the Company is involved in various lawsuits and claims. In addition, the Company is a party to a number of proceedings before federal and state regulatory agencies relating to environmental remediation. Also, the Company, along with many other companies, has been named as a PRP in a number of administrative proceedings for the remediation of various waste sites, including 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 April 1, 2017 and December 31, 2016 the Company had reserves of $176.1 million and $160.9 million, respectively, for remediation activities associated with Company-owned properties, as well as for Superfund sites, for losses that are probable and estimable. Of the 2017 amount, $19.8 million is classified as current and $156.3 million as long-term which is expected to be paid over the estimated remediation period. As of April 1, 2017, the Company has recorded $13.2 million in other assets related to funding received by the EPA and placed in a trust in accordance with the final settlement with the EPA, embodied in a Consent Decree approved by the United States District Court for the Central District of California on July 3, 2013. Per the Consent Decree, Emhart Industries, Inc. (a dissolved, former indirectly wholly-owned subsidiary of The Black & Decker Corporation) (“Emhart”) has agreed to be responsible for an interim remedy at a site located in Rialto, California and formerly operated by West Coast Loading Corporation (“WCLC”), a defunct company for which Emhart was alleged to be liable as a successor. The remedy will be funded by (i) the amounts received from the EPA as gathered from multiple parties, and, to the extent necessary, (ii) Emhart's affiliate.  The interim remedy requires the construction of a water treatment facility and the filtering of ground water at or around the site for a period of approximately 30 years or more. Accordingly, as of April 1, 2017, the Company's cash obligation associated with the aforementioned remediation activities including WCLC is $162.9 million. The range of environmental remediation costs that is reasonably possible is $143.5 million to $282.9 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, on June 18, 2012,the CPG members voluntarily entered into an AOC with the EPA for remediation actions focused solely at mile 10.9 of the River. The Company’s estimated costs related to the RI/FS and focused remediation action at mile 10.9, based on an interim allocation, are included in its environmental reserves. On April 11, 2014, the EPA issued a Focused Feasibility Study (“FFS”) and proposed plan which addressed various early action remediation alternatives for the lower 8.3 miles of the River. The EPA received public comment on the FFS and proposed plan (including comments from the CPG and other entities asserting that the FFS and proposed plan do not comply with CERCLA) which public comment period ended on August 20, 2014. The CPG submitted to the EPA a draft RI report in February 2015 and draft FS report in April 2015 for the entire lower seventeen miles of the River. On March 4, 2016, the EPA issued a ROD selecting the remedy for the lower 8.3 miles of the River. The cleanup plan adopted by the EPA is now considered a final action for the lower 8.3 miles of the River and will include the removal of 3.5 million cubic yards of sediment, placement of a cap over the entire lower 8.3 miles of the River, and, according to the EPA, will cost approximately $1.4 billion and take 6 years to implement after the remedial design is completed. (The EPA estimates that the remedial design will take four years to complete.) The Company and 105 other parties received a letter dated March 31, 2016 from the EPA notifying such parties of potential liability for the costs of the cleanup of the lower 8.3 miles of the River and a letter dated March 30, 2017 stating that the EPA had offered 20 of the parties (not including the Company) an early cash out settlement. The EPA stated that these 20 parties did not discharge the primary contaminants of concern, but otherwise did not explain the process used and the criteria considered in determining which parties were eligible for early cash out settlement. The EPA stated that other parties who did

24

not discharge the primary contaminants of concern may also be eligible for cash out settlement, but expects those parties' allocation to be determined through a complex settlement analysis using a third party allocator. The Company asserts that it did not discharge the primary contaminants of concern and should be eligible for a cash out settlement. There has been no determination as to how the RI/FS will be modified in light of the EPA’s decision to implement a final action for the lower 8.3 miles of the River. At this time, the Company cannot reasonably estimate its liability related to the remediation efforts, excluding the RI/FS and remediation actions at mile 10.9, as the RI/FS is ongoing, the ultimate remedial approach and associated cost for the upper portion of the River has not yet been determined, and the parties that will participate in funding the remediation and their respective allocations are not yet known. On September 30, 2016, Occidental Chemical Corporation entered into an agreement with EPA to perform the remedial design for the cleanup plan for the lower 8.3 miles of the river.

Per the terms of a Final Order and Judgment approved by the United States District Court for the Middle District of Florida on January 22, 1991, Emhart is responsible for a percentage of remedial costs arising out of the Kerr McGee Chemical Corporation Superfund Site located in Jacksonville, Florida. On March 15, 2017, the Company received formal notification from the EPA that the EPA had issued a ROD selecting the preferred alternative identified in the Proposed Cleanup Plan. The cleanup adopted by the EPA is currently estimated to cost approximately $68.7 million. Accordingly, the Company increased its reserve by $17 million which is recorded in Other, net in the Consolidated Statements of Operations and Comprehensive Income for the three months ended April 1, 2017.

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.

S.    Guarantees

The Company’s financial guarantees at April 1, 2017 are as follows:

(Millions of Dollars)	Term	Maximum Potential Payment		Carrying Amount of Liability
Guarantees on the residual values of leased properties	One to five years	$	58.7	$	—
Standby letters of credit	Up to three years	71.2		—
Commercial customer financing arrangements	Up to six years	70.1		23.8
Total		$	200.0	$	23.8

The Company has guaranteed a portion of the residual values of leased properties arising from its synthetic lease program. The lease guarantees are for an amount up to $58.7 million while the fair value of the underlying buildings is estimated at $67.2 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 guarantees.

The Company has issued $71.2 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 trucks 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 $70.1 million and the $23.8 million carrying value of the guarantees issued is recorded in debt and other liabilities as appropriate in the Condensed 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.

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The changes in the carrying amount of product and service warranties for the three months ended April 1, 2017 and April 2, 2016 are as follows:

(Millions of Dollars)	2017			2016
Balance beginning of period	$	103.4		$	105.4
Warranties and guarantees issued	22.7			20.4
Warranty payments and currency	(24.6		)	(20.0		)
Balance end of period	$	101.5		$	105.8

T.    Divestitures

On January 3, 2017, the Company sold a small business within the Tools & Storage segment for $25.6 million. On February 22, 2017, the Company sold the majority of its mechanical security businesses within the Security segment to Dormakaba, which includes the commercial hardware brands of Best Access, phi Precision and GMT, for net proceeds of $719.2 million. As a result of these sales, the Company recognized an after-tax gain of $238.1 million in the first quarter of 2017, primarily related to the sale of the mechanical security businesses. Neither of these disposals qualify as discontinued operations in accordance with 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 and therefore, are included in the Company's continuing operations for all periods presented through the dates of sale in 2017. Pre-tax income for these businesses totaled $0.6 million and $6.5 million for the three months ended April 1, 2017 and April 2, 2016, respectively.

The carrying amounts of the assets and liabilities that were expected to be included in these sales were classified as held for sale as of December 31, 2016, as follows:

(Millions of Dollars)	December 31, 2016
Accounts and notes receivable, net	$	35.3
Inventories, net	33.2
Property, plant and equipment, net	52.3
Goodwill and other intangibles, net	399.8
Other assets	2.8
Total assets	$	523.4
Accounts payable and accrued expenses	$	38.0
Other liabilities	15.5
Total liabilities	$	53.5

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion contains statements reflecting the Company's views about its future performance that constitute “forward-looking statements” under the Private Securities Litigation Act of 1995. There are a number of important factors that could cause actual results to differ materially from those indicated by such forward-looking statements. Please read the information under the caption entitled “Cautionary Statement under the Private Securities Litigation Reform Act of 1995.”

Throughout this Management's Discussion and Analysis (“MD&A”), references to Notes refer to the "Notes To (Unaudited) Condensed Consolidated Financial Statements" in Part 1, Item 1 of this Form 10-Q, unless otherwise indicated.

BUSINESS OVERVIEW

Strategy

The Company is a diversified global provider of hand tools, power tools and related accessories, mechanical access solutions (primarily automatic doors), electronic security and monitoring systems, healthcare solutions, engineered fastening systems and products and services for various industrial applications. The Company continues to pursue a growth and acquisition strategy that involves industry, geographic and customer diversification to foster sustainable revenue, earnings and cash flow growth. The Company also remains focused on organic growth, including increasing its presence in emerging markets, with a goal of generating greater than 20% of annual revenues from those markets over time, and leveraging the Stanley Fulfillment System, a now expanded program ("SFS 2.0") focused on upgrading innovation and digital capabilities while maintaining commercial and supply chain excellence, and funding required investments, in part, through functional transformation. Strategic acquisitions, combined with strong organic growth performance, will help enable the Company to reach its objective of doubling its size to $22 billion in revenue by 2022 while expanding the margin rate.

In March 2017, the Company acquired the Tools business of Newell Brands ("Newell Tools"), which is an important step in the Company's quest to strengthen its presence in the global tools industry, and the Craftsman brand, which grants the Company the rights to develop, manufacture and sell Craftsman®-branded products in non-Sears Holdings channels. Furthermore, in February 2017, the Company completed the sale of the majority of its mechanical security businesses, which will allow the Company to deploy capital in a more accretive and growth-oriented manner.

In terms of capital allocation, the Company remains committed, over time, to returning approximately 50% of free cash flow to shareholders through a strong and growing dividend as well as opportunistically repurchasing shares. The remaining free cash flow (approximately 50%) will be deployed towards acquisitions.

Refer to the “Strategic Objectives” section of Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's Form 10-K for the year ended December 31, 2016 for additional strategic discussions.

Segments

The Company's operations are classified into three reportable business segments, which also represent its operating segments: Tools & Storage, Security and Industrial.

Tools & Storage

The Tools & Storage segment is comprised of the Power Tools & Equipment ("PTE") and Hand Tools, Accessories & Storage ("HTAS") businesses. Annual revenues in the Tools & Storage segment were $7.5 billion in 2016, representing 66% of the Company’s total revenues.

The PTE business includes both professional and consumer products. Professional products include professional grade corded and cordless electric power tools and equipment including drills, impact wrenches and drivers, grinders, saws, routers and sanders, as well as pneumatic tools and fasteners including nail guns, nails, staplers and staples, concrete and masonry anchors. Consumer products include corded and cordless electric power tools sold primarily under the BLACK+DECKER brand, lawn and garden products, including hedge trimmers, string trimmers, lawn mowers, edgers and related accessories, and home products such as hand-held vacuums, paint tools and cleaning appliances.

The HTAS business sells measuring, leveling and layout tools, planes, hammers, demolition tools, clamps, vises, knives, saws, chisels and industrial and automotive tools. Power tool accessories include drill bits, router bits, abrasives and saw blades. Storage products include tool boxes, sawhorses, medical cabinets and engineered storage solution products.

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Security

The Security segment is comprised of the Convergent Security Solutions ("CSS") and Mechanical Access Solutions ("MAS") businesses. Annual revenues in the Security segment were $2.1 billion in 2016, representing 18% of the Company’s total revenues.

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 sells healthcare solutions, which include asset tracking solutions, infant protection, pediatric protection, patient protection, wander management, fall management, and emergency call products. The MAS business primarily sells automatic doors.

Industrial

The Industrial segment is comprised of the Engineered Fastening and Infrastructure businesses. Annual Industrial segment revenues totaled $1.8 billion in 2016, representing 16% of the Company’s total revenues.

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.

Acquisitions

On March 8, 2017, the Company completed the purchase of the Craftsman brand from Sears Holdings, which provides the Company with the rights to develop, manufacture and sell Craftsman®-branded products in non-Sears Holdings channels. The Company plans to significantly increase the availability of Craftsman®-branded products to consumers in previously underpenetrated channels, enhance innovation, and add manufacturing jobs in the U.S. to support growth.

On March 9, 2017, the Company acquired Newell Tools, which includes the highly attractive industrial cutting, hand tool and power tool accessory brands Irwin® and Lenox®. The acquisition will enhance the Company’s position within the global tools & storage industry and broadens the Company’s product offerings and solutions to customers and end-users, particularly within power tool accessories.

Divestitures

On February 22, 2017, the Company completed the sale of the majority of its mechanical security businesses, which included the commercial hardware brands of Best Access, phi Precision and GMT. The sale will allow the Company to deploy capital in a more accretive and growth-oriented manner. On January 3, 2017, the Company sold a small business within the Tools & Storage segment.

Certain Items Impacting Earnings

Throughout MD&A, the Company has provided a discussion of the outlook and results both inclusive and exclusive of acquisition-related charges and gain on sales of businesses. The acquisition-related charges relate primarily to the Newell Tools and Craftsman brand acquisitions. The amounts and measures, including gross profit and segment profit, on a basis excluding such charges are considered relevant to aid analysis and understanding of the Company’s results aside from the material impact of these charges. In addition, these measures are utilized internally by management to understand business trends, as once the anticipated cost synergies from the Newell Tools and the Craftsman brand acquisitions are realized, such charges are not expected to recur. These amounts for the first quarter of 2017 are as follows:

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Acquisition-Related Charges

The Company reported $58 million in pre-tax acquisition-related charges in the first quarter of 2017, which were comprised of the following:

• $7 million reducing Gross Profit pertaining to amortization of the inventory step-up adjustments for the Newell Tools and Craftsman brand acquisitions;

• $11 million in SG&A primarily for integration-related costs and consulting fees; and

• $40 million in Other, net primarily for deal transactions costs.

The tax effect on the above charges during the first quarter of 2017 was $17 million, resulting in after-tax charges of $41 million, or $0.27 per diluted share.

Gain on Sales of Businesses

The Company reported a $269 million pre-tax gain in the first quarter of 2017 relating to the previously discussed sales of the majority of the mechanical security businesses and a small business in the Tools & Storage segment. The tax effect of the gain was $31 million, resulting in an after-tax gain of $238 million, or $1.57 per diluted share.

2017 Outlook

This outlook discussion is intended to provide broad insight into the Company’s near-term earnings and cash flow generation prospects. On March 10, 2017, the Company updated its 2017 earnings per share ("EPS") outlook to $7.63 - $7.83 ($6.98 - $7.18 excluding acquisition-related charges and gain on sales of businesses) to reflect the sale of the majority of its mechanical security businesses and the purchase of the Craftsman brand and Newell Tools. The Company is now raising the ranges of its 2017 EPS outlook to $7.95 - $8.15 ($7.08 - $7.28 on an adjusted basis), as it expects stronger full year results attributable primarily to an improved outlook for its industrial businesses. The Company is also reiterating its free cash flow conversion estimate, defined as free cash flow divided by net income, of approximately 100%.

RESULTS OF OPERATIONS

Net Sales: Net sales were $2.806 billion in the first three months of 2017 compared to $2.672 billion in the first three months of 2016, representing an increase of 5% fueled by strong organic growth of 5%. Volume and acquisitions, primarily Newell Tools, increased sales by 5% and 3%, respectively, while the impact of businesses sold and foreign currency decreased sales by 2% and 1%, respectively. Tools & Storage net sales increased 9% compared to the first three months of 2016 due to strong organic growth of 6%, driven by solid growth across all regions, and acquisition growth of 4%, which were partially offset by foreign currency pressure of 1%. Net sales in the Security segment declined 5% compared to the first three months of 2016 as organic growth of 1% and small bolt-on electronic acquisitions of 1% were more than offset by declines of 1% from foreign currency and 6% from the sale of the majority of the mechanical security businesses. Industrial net sales increased 3% compared to the first three months of 2016 primarily due to a 5% increase in volume, as Engineered Fastening exceeded expectations for the quarter, partially offset by a 1% decrease in both price and foreign currency.

Gross Profit: Gross profit was $1.065 billion, or 38.0% of net sales, in the first three months of 2017 compared to $977.6 million, or 36.6% of net sales, in the first three months of 2016. Acquisition-related charges, which reduced gross profit, were $6.8 million in the first quarter of 2017 relating to the amortization of the inventory step-up adjustments for the Newell Tools and Craftsman brand acquisitions. Excluding these acquisition-related charges, gross profit was 38.2% of net sales in 2017 compared to 36.6% of net sales in the prior year. The year-over-year increase in the profit rate was driven by operating leverage, productivity and cost actions, which more than offset unfavorable currency and commodity inflation.

SG&A Expenses: SG&A, inclusive of the provision for doubtful accounts, was $684.7 million, or 24.4% of net sales, in 2017 compared to $627.8 million, or 23.5% of net sales, in 2016. Within SG&A, acquisition-related integration and consulting costs totaled $10.7 million in 2017. Excluding these charges, SG&A was 24.0% of net sales in 2017 compared to 23.5% in the prior year, reflecting investments in SFS 2.0 growth initiatives moderated by continued tight cost management.

Distribution center costs (i.e. warehousing and fulfillment facility and associated labor costs) are classified within SG&A. This classification may differ from other companies who may report such expenses within cost of sales. Due to diversity in practice, to the extent the classification of these distribution costs differs from other companies, the Company’s gross margins may not be comparable.

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Corporate Overhead: The corporate overhead element of SG&A, which is not allocated to the business segments, amounted to $43.9 million, or 1.6% of net sales, in 2017 compared to $48.4 million, or 1.8% of net sales, in the corresponding period of 2016. The year-over-year change was primarily due to lower employee-related costs.

Other, net: Other, net amounted to $106.2 million in 2017 compared to $46.2 million in 2016. Excluding acquisition-related transaction costs of $40.0 million, other, net totaled $66.2 million in 2017. The year-over-year increase was primarily driven by a one-time environmental remediation charge of $17 million in the first quarter of 2017 relating to a legacy Black & Decker site.

Gain on Sales of Businesses: Gain on sales of businesses totaled $269.2 million in the first quarter of 2017 primarily relating to the sale of the majority of the Company's mechanical security businesses, as previously discussed.

Pension settlement: Pension settlement of $12.5 million in the first quarter of 2017 reflects losses previously reported in accumulated other comprehensive loss related to a non-U.S. pension plan for which the Company settled its obligation by purchasing an annuity and making lump sum payments to participants.

Interest, net: Net interest expense of $42.7 million in the first quarter of 2017 was relatively consistent with net interest expense of $41.5 million in the first quarter of 2016.

Income Taxes:The Company recognized income tax expense of $79.5 million for the three months ended April 1, 2017 resulting in an effective tax rate of 16.8%. The effective tax rate differs from the U.S. statutory tax rate primarily due to a portion of the Company’s earnings being realized in lower-taxed foreign jurisdictions and the utilization of U.S. tax attributes during the first quarter of 2017 due to the divestiture of the mechanical security businesses. Non-deductible transaction costs and other acquisition-related restructuring items partially offset the net tax benefits mentioned above for the three months ended April 1, 2017. Excluding the tax impact of the divestitures and acquisition-related charges in the first quarter of 2017, the effective rate is 25.0%.

The Company recognized income tax expense of $65.5 million for the first quarter of 2016, resulting in an effective tax rate of 25.8%. The effective tax rate differed from the U.S. statutory tax rate primarily due to a portion of the Company’s earnings being realized in lower-taxed foreign jurisdictions and the finalization of audit settlements.

Business Segment Results

The Company’s reportable segments are aggregations of businesses that have similar products, services and end markets, among other factors. 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, other, net (inclusive of intangible asset amortization expense), restructuring charges, gain on sales of businesses, pension settlement and income taxes. Corporate overhead is comprised of world headquarters facility expense, cost for the executive management team and the expense pertaining to certain centralized functions that benefit the entire Company but are not directly attributable to the businesses, such as legal and corporate finance functions. Refer to Note O, Restructuring Charges, for the amount of net restructuring charges attributable to each segment. The Company's operations are classified into three reportable business segments, which also represent its operating segments: Tools & Storage, Security and Industrial.

Tools & Storage:

	Year-to-Date
(Millions of Dollars)	2017			2016
Net sales	$	1,854.5		$	1,706.9
Segment profit	$	287.3		$	262.0
% of Net sales	15.5		%	15.3		%

Tools & Storage net sales increased $147.6 million, or 9%, in the first three months of 2017 compared to the first three months of 2016. Organic sales increased 6% primarily due to organic growth of 8% in North America, 6% in Europe, and 1% in emerging markets. New products, including sales from the DEWALT FlexVolt™ system, and strong commercial execution fueled share gains in North America which continues to benefit from a healthy underlying U.S. tool market. Improving conditions in the industrial channels also contributed to growth in the region. Europe's share gains continued with another

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quarter of above-market organic growth from new products and benefits from commercial actions, including an expanded retail footprint. Organic growth within the emerging markets, led by Latin America and Asia, was driven by the continued success of the Company's mid-price-point product releases as well as pricing actions. Acquisition sales from Newell Tools and Craftsman contributed 4% to overall sales growth in the first quarter of 2017, while foreign currency resulted in a 1% decrease.

Segment profit for the first quarter of 2017 was $287.3 million, or 15.5% of net sales, compared to $262.0 million, or 15.3% of net sales, in the corresponding 2016 period. Excluding acquisition-related charges of $17.3 million, segment profit amounted to 16.4% of net sales in the first quarter of 2017, compared to 15.3% of net sales in the first quarter of 2016. The increase in the segment profit rate was primarily due to volume leverage, productivity, and mix, which more than offset currency and commodity inflation.

Security:

	Year-to-Date
(Millions of Dollars)	2017			2016
Net sales	$	478.5		$	504.2
Segment profit	$	50.9		$	60.2
% of Net sales	10.6		%	11.9		%

Security net sales decreased $25.7 million, or 5%, in the first three months of 2017 compared to the first three months of 2016 as organic growth of 1% and small bolt-on electronic security acquisitions of 1% were more than offset by foreign currency declines of 1% and lower sales of 6% resulting from the sale of the majority of the mechanical security businesses. North America delivered solid 2% organic growth, its highest growth quarter since the second quarter of 2015, fueled primarily by higher automatic doors and healthcare volumes. Europe posted relatively flat organic growth as strength within the Nordics and UK was offset by weakness in France.

Security segment profit for the first quarter of 2017 was $50.9 million, or 10.6% of net sales, compared to $60.2 million, or 11.9% of net sales, in the corresponding 2016 period. Excluding acquisition-related charges of $0.2 million, segment profit amounted to 10.7% of net sales in the first quarter of 2017, compared to 11.9% in the first quarter of 2016. The year-over-year decrease in the segment profit rate reflects the impact of the sale of the majority of the Company's mechanical security businesses, growth investments and channel/country mix. The segment profit rate would have been approximately 11.4% inclusive of a full quarter's results of the divested mechanical security businesses.

Industrial:

	Year-to-Date
(Millions of Dollars)	2017			2016
Net sales	$	472.6		$	461.0
Segment profit	$	86.3		$	76.0
% of Net sales	18.3		%	16.5		%

Industrial net sales increased $11.6 million, or 3%, in the first three months of 2017 compared to the first three months of 2016, due to a 5% increase in volume partially offset by a 1% decrease in both price and foreign currency. Engineered Fastening organic revenues increased 4%, exceeding expectations for the quarter, as strong automotive system volumes more than offset weaker industrial and electronics volumes. Infrastructure organic revenues were up 2% as higher Hydraulic Tools volumes, driven by successful commercial actions and improved market conditions, more than offset flat Oil & Gas volumes.

Industrial segment profit for the first quarter of 2017 was $86.3 million, or 18.3% of net sales, compared to $76.0 million, or 16.5% of net sales, in the corresponding 2016 period, as volume leverage, productivity gains and cost control more than offset the impact of currency.

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RESTRUCTURING ACTIVITIES

A summary of the restructuring reserve activity from December 31, 2016 to April 1, 2017 is as follows:

(Millions of Dollars)	December 31, 2016		Net Additions		Usage			Currency		April 1, 2017
Severance and related costs	$	21.4	$	11.8	$	(9.0	)	$	0.3	$	24.5
Facility closures and asset impairments	14.2		4.0		(3.8		)	—		14.4
Total	$	35.6	$	15.8	$	(12.8	)	$	0.3	$	38.9

For the three months ended April 1, 2017, the Company recognized net restructuring charges of $15.8 million reflecting $11.8 million of net severance charges associated with the reduction of approximately 180 employees and $4.0 million of facility closure and other restructuring costs. The Company expects these restructuring actions to result in annual net cost savings of approximately $12 million by the end of 2018, primarily in the Security and Tools & Storage segments.

The majority of the $38.9 million of reserves remaining as of April 1, 2017 is expected to be utilized within the next 12 months.

Segments: The approximately $16 million of net restructuring costs for the three months ended April 1, 2017 includes: $6 million pertaining to the Tools & Storage segment; $7 million pertaining to the Security segment; and $3 million pertaining to the Industrial segment.

FINANCIAL CONDITION

Liquidity, Sources and Uses of Capital: The Company’s primary sources of liquidity are cash flows generated from operations and available lines of credit under various credit facilities.

Operating Activities: Cash flows used in operations were $145.6 million in the first three months of 2017 compared to $93.1 million in the corresponding period of 2016. Operating cash flows were negatively impacted by acquisition-related payments of $30.0 million in the first quarter of 2017. Outflows from working capital (accounts receivable, inventory, accounts payable and deferred revenue) were $410.2 million in the first quarter of 2017 compared to $268.0 million in the first quarter of 2016. The increase in working capital cash outflows was primarily driven by higher inventory purchases, particularly in the Tools & Storage segment, and higher accounts receivables as a result of strong organic growth in the first quarter of 2017, partially offset by higher payable balances.

Free Cash Flow: Free cash flow, in line with normal seasonality, was an outflow of $210.3 million in 2017 compared to $158.0 million in 2016. Management considers free cash flow an important indicator of its liquidity, as well as its ability to fund future growth and provide a dividend to shareowners. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common stock and business acquisitions, among other items.

	Year-to-Date
(Millions of Dollars)	2017			2016
Net cash used in operating activities	$	(145.6	)	$	(93.1	)
Less: capital and software expenditures	(64.7		)	(64.9		)
Free cash outflow	$	(210.3	)	$	(158.0	)

Based on its potential to generate cash flow from operations on an annual basis and its credit position at April 1, 2017, the Company continues to believe over the long term it has the financial flexibility to deploy capital to its shareowners’ advantage through a combination of acquisitions, dividends and potential future share repurchases.

Investing Activities: Cash flows used in investing activities totaled $1.719 billion in the first quarter of 2017 primarily due to business acquisitions of $2.435 billion and capital and software expenditures of $64.7 million, partially offset by net cash proceeds from sales of businesses of $744.8 million. Cash flows used in investing activities totaled $81.7 million in the first quarter of 2016, which mainly consisted of capital and software expenditures of $64.9 million.

Financing Activities: Cash flows provided by financing activities totaled $1.073 billion in the first quarter of 2017 mainly due to $1.157 billion in net short-term borrowings under the Company's commercial paper program primarily to fund acquisitions, partially offset by $86.7 million of cash dividend payments. Cash flows provided by financing activities in the first quarter of 2016 were $44.5 million primarily due to $481.2 million of net proceeds from short-term borrowings under the Company's

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commercial paper program, partially offset by $361.4 million of share repurchases and $79.6 million of cash payments for dividends.

Credit Ratings & Liquidity:

The Company maintains strong investment grade credit ratings from the major U.S. rating agencies on its senior unsecured debt (S&P A, Fitch A-, Moody's Baa1), as well as its commercial paper program (S&P A-1, Fitch F2, Moody's P-2). There have been no changes to any of the ratings during the first quarter of 2017. Failure to maintain strong investment grade rating levels could adversely affect the Company’s cost of funds, liquidity and access to capital markets, but would not have an adverse effect on the Company’s ability to access committed credit facilities.

Cash and cash equivalents totaled $378 million as of April 1, 2017, comprised of $48 million in the U.S. and $330 million in foreign jurisdictions. As of December 31, 2016, cash and cash equivalents totaled $1.132 billion, which was predominantly held in foreign jurisdictions. Concurrent with the Black & Decker merger, the Company made a determination to repatriate certain legacy Black & Decker foreign earnings, on which U.S. income taxes had not previously been provided. As a result of this repatriation decision, the Company has recorded approximately $257 million and $261 million of associated deferred tax liabilities at April 1, 2017 and December 31, 2016, respectively. Current plans and liquidity requirements do not demonstrate a need to repatriate other foreign earnings. Accordingly, all other undistributed foreign earnings of the Company are considered to be permanently reinvested, or will be remitted substantially free of additional tax, consistent with the Company’s overall growth strategy internationally, including acquisitions and long-term financial objectives. No provision has been made for taxes that might be payable upon remittance of these undistributed foreign earnings. However, should management determine at a later point to repatriate additional foreign earnings, the Company would be required to accrue and pay taxes at that time.

In January 2017, the Company amended its existing $2.0 billion commercial paper program to increase the maximum amount of notes authorized to be issued to $3.0 billion and to include Euro denominated borrowings in addition to U.S. Dollars. As of April 1, 2017, the Company had $1.2 billion of borrowings outstanding against the Company’s $3.0 billion commercial paper program, of which $961.7 million in Euro denominated commercial paper was designated as a Net Investment Hedge as described in more detail in Note I, Financial Instruments. At December 31, 2016, the Company had no commercial paper borrowings outstanding.

In January 2017, the Company executed a 364-day $1.3 billion committed credit facility (the "2017 Credit Agreement"). The 2017 Credit Agreement consists of a $1.3 billion revolving credit loan and a sub-limit of an amount equal to the Euro equivalent of $400 million for swing line advances. Borrowings under the 2017 Credit Agreement may be made in U.S. Dollars or Euros, pursuant to the terms of the agreement, and bear interest at a floating rate dependent on the denomination of the borrowing. Repayments must be made by January 17, 2018 or upon an earlier termination of the 2017 Credit Agreement at the election of the Company. The 2017 Credit Agreement serves as a liquidity back-stop for the Company’s $3.0 billion U.S. Dollar and Euro commercial paper program, also authorized and amended in January 2017, as discussed above. As of April 1, 2017, the Company had not drawn on this commitment.

The Company has a five-year $1.75 billion committed credit facility (the “Credit Agreement”). Borrowings under the Credit Agreement may include U.S. Dollars up to the $1.75 billion commitment or in Euro or Pounds Sterling subject to a foreign currency sub-limit of $400.0 million and bear interest at a floating rate dependent upon the denomination of the borrowing. Repayments must be made on December 18, 2020 or upon an earlier termination date of the Credit Agreement, at the election of the Company. The Credit Agreement is designated to be a liquidity back-stop for the Company's $2.0 billion commercial paper program. As of April 1, 2017 and December 31, 2016, the Company has not drawn on this commitment.

In March 2015, the Company entered into a forward share purchase contract with a financial institution counterparty for 3,645,510 shares of common stock. The contract obligates the Company to pay $350.0 million, plus an additional amount related to the forward component of the contract. In November 2016, the Company amended the settlement date to April 2019, or earlier at the Company's option.

Refer to Note H, Long-Term Debt and Financing Arrangements, and Note J, Equity Arrangements, for further discussion of the Company's financing arrangements.

OTHER MATTERS

Critical Accounting Estimates: There have been no significant changes in the Company’s critical accounting estimates during the first quarter of 2017. Refer to the “Other Matters” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s Form 10-K for the year ended December 31, 2016 for a discussion of the Company’s critical accounting estimates.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There has been no significant change in the Company’s exposure to market risk during the first quarter of 2017. Refer to the “Market Risk” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s Form 10-K for the year ended December 31, 2016 for further discussion.

ITEM 4. CONTROLS AND PROCEDURES

Under the supervision and with the participation of management, including the Company’s President and Chief Executive Officer and its Executive Vice President and Chief Financial Officer, the Company has, pursuant to Rule 13a-15(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), evaluated the effectiveness of the design and operation of its disclosure controls and procedures (as defined under Rule 13a-15(e) of the Exchange Act). Based upon that evaluation, the Company’s President and Chief Executive Officer and its Executive Vice President and Chief Financial Officer have concluded that, as of April 1, 2017, the Company’s disclosure controls and procedures are effective. There has been no change in the Company’s internal control over financial reporting that occurred during the first quarter of 2017 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting. In March 2017, the Company acquired Newell Tools for approximately $1.84 billion. Management's assessment of, and conclusion on, the effectiveness of internal control over financial reporting excludes the internal controls of Newell Tools. As part of the ongoing integration activities, the Company will complete an assessment of existing controls and incorporate its controls and procedures into Newell Tools.

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CAUTIONARY STATEMENT

Under the Private Securities Litigation Reform Act of 1995

Statements in this Quarterly Report on Form 10-Q that are not historical, including but not limited to those regarding the Company’s ability to: (i) generate greater than 20% of annual revenues from emerging markets over time; (ii) double its size to $22 billion in revenue by 2022 while expanding its margin rate; (iii) achieve full year 2017 EPS of approximately $7.95 - $8.15 ($7.08 - $7.28 on an adjusted basis); (iv) achieve free cash flow conversion of approximately 100% for 2017; and (v) over time, return approximately 50% of free cash flow to shareholders through a strong and growing dividend, as well as opportunistically repurchasing its shares, with the remaining free cash flow (approximately 50%) deployed toward acquisitions; (collectively, the “Results”) are “forward-looking statements” and subject to risk and uncertainty.

The Company’s ability to deliver the Results as described above is based on current expectations and involves inherent risks and uncertainties, including factors listed below and other factors that could delay, divert, or change any of them, and could cause actual outcomes and results to differ materially from current expectations. In addition to the risks, uncertainties and other factors discussed in this Quarterly Report, the risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied in the forward-looking statements include, without limitation, those set forth under Item 1A Risk Factors of the Company’s Annual Report on Form 10-K and any material changes thereto set forth in any subsequent Quarterly Reports on Form 10-Q, or those contained in the Company’s other filings with the Securities and Exchange Commission, and those set forth below.

The Company’s ability to deliver the Results is dependent, or based, upon: (i)continued improved results from the Company’s Industrial businesses; (ii) the Company’s ability to invest in product, brand and commercialization of the Craftsman brand in previously underpenetrated channels, enhance innovation and add manufacturing jobs in the U.S. to support growth; (iii) the Company’s ability to successfully integrate Newell Tools while remaining focused on its diversified industrial portfolio strategy; (iv) the Company’s ability to deliver slightly higher overall organic growth resulting in incremental earnings per share of approximately $0.08; (v) the Company’s ability to achieve incremental cost and productivity actions of approximately $0.10 per share and limit the impact of higher environmental charges included in “Other, net” to approximately negative $0.08 per share; (vi) commodity inflation combined with foreign exchange headwinds being approximately $100-$105 million in 2017; (vii) core (non-M&A) restructuring charges being approximately $50 million in 2017 (inclusive of the 1Q 2017 pension settlement of approximately $13 million), and 2017 tax rate relatively consistent with the 2016 levels;(viii) the successful identification, completion and integration of, and realization of cost and revenue synergies associated with, acquisitions, as well as integration of existing businesses and formation of new business platforms; (ix) the continued acceptance of technologies used in the Company’s products and services (including the new DEWALT FlexVolt™ product); (x) the Company’s ability to manage existing Sonitrol franchisee and Mac Tools relationships; (xi) the Company’s ability to minimize costs associated with any sale or discontinuance of a business or product line, including any severance, restructuring, legal or other costs; (xii) the proceeds realized with respect to any business or product line disposals; (xiii) the extent of any asset impairments with respect to any businesses or product lines that are sold or discontinued; (xiv) the success of the Company’s efforts to manage freight costs, steel and other commodity costs as well as capital expenditures; (xv) the Company’s ability to sustain or increase prices in order to, among other things, offset or mitigate the impact of steel, freight, energy, non-ferrous commodity and other commodity costs and any inflation increases and/or currency impacts; (xvi) the Company’s ability to generate free cash flow and maintain a strong debt to capital ratio; (xvii) the Company’s ability to identify and effectively execute productivity improvements and cost reductions, while minimizing any associated restructuring charges; (xviii) the Company’s ability to obtain favorable settlement of tax audits; (xix) the ability of the Company to generate earnings sufficient to realize future income tax benefits during periods when temporary differences become deductible, including realizing tax credit carry forward amounts within the allowable carry forward periods; (xx) the continued ability of the Company to access credit markets under satisfactory terms; (xxi) the Company’s ability to negotiate satisfactory price and payment terms under which the Company buys and sells goods, services, materials and products; (xxii) the Company’s ability to successfully develop, market and achieve sales from new products and services; and (xxiii) the availability of cash to repurchase shares when conditions are right.

The Company’s ability to deliver the Results is also dependent upon: (i) the success of the Company’s marketing and sales efforts, including the ability to develop and market new and innovative products at the right price points in both existing and new markets; (ii) the ability of the Company to maintain or improve production rates in the Company’s manufacturing facilities, respond to significant changes in product demand and fulfill demand for new and existing products; (iii) the Company’s ability to continue improvements in working capital through effective management of accounts receivable and inventory levels; (iv) the ability to continue successfully managing and defending claims and litigation; (v) the success of the Company’s efforts to mitigate any adverse earnings impact resulting from increases generated by, for example, increases in the cost of energy or significant Chinese Renminbi, Canadian Dollar, Euro, British Pound, Brazilian Real, or other currency fluctuations; (vi) the geographic distribution of the Company’s earnings; (vii) the commitment to and success of the Stanley Fulfillment System; and (viii) successful implementation with expected results of cost reduction programs.

The Company’s ability to achieve the Results will also be affected by external factors. These external factors include: challenging global geopolitical and macroeconomic environment, possibly including impact from "Brexit" or other similar actions by other EU member states; the economic environment of emerging markets, particularly Latin America, Russia, China and Turkey; pricing pressure and other changes within competitive markets; the continued consolidation of customers particularly in consumer channels; inventory management pressures on the Company’s customers; the impact the tightened credit markets may have on the Company or its customers or suppliers; the extent to which the Company has to write off accounts receivable or assets or experiences supply chain disruptions in connection with bankruptcy filings by customers or suppliers; increasing competition; changes in laws, regulations and policies that affect the Company, including, but not limited to trade, monetary, tax and fiscal policies and laws; the timing and extent of any inflation or deflation; the impact of poor weather conditions on sales; currency exchange fluctuations; the impact of dollar/foreign currency exchange and interest rates on the competitiveness of products and the Company’s debt program; the strength of the U.S. and European economies; the extent to which world-wide markets associated with homebuilding and remodeling stabilize and rebound; the impact of events that cause or may cause disruption in the Company’s supply, manufacturing, distribution and sales networks such as war, terrorist activities, and political unrest; and recessionary or expansive trends in the economies of the world in which the Company operates. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date hereof.

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PART II — OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors as disclosed in the Company’s Form 10-K for the year ended December 31, 2016 filed with the Securities and Exchange Commission on February 15, 2017.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

The following table provides information about the Company’s purchases of equity securities that are registered by the Company pursuant to Section 12 of the Exchange Act during the three months ended April 1, 2017:

2017	(a) Total Number Of Shares Purchased	Average Price Paid Per Share		Total Number Of Shares Purchased As Part Of A Publicly Announced Program	(b) Maximum Number Of Shares That May Yet Be Purchased Under The Program
January 1 - February 4	2,030	$	117.13	—	10,000,000
February 5 - March 4	97,037	126.24		—	10,000,000
March 5 - April 1	8,042	132.66		—	10,000,000
	107,109	$	126.55	—	10,000,000

(a) The shares of common stock in this column were deemed surrendered to the Company by participants in various benefit plans of the Company to satisfy the participants’ taxes related to vesting or delivery of time-vesting restricted share units under those plans.

(b) On July 23, 2014, the Board of Directors approved a new repurchase of up to 25 million shares of the Company's common stock. As of April 1, 2017, the remaining authorized shares for repurchase is 10.0 million shares. Furthermore, approximately 3.6 million shares are reserved for purchase in connection with the forward share purchase contract entered into in March 2015, which obligates the Company to pay $350.0 million plus additional amounts related to the forward component of the contracts to the financial institution counterparties not later than April 2019 or earlier at the Company's option. Refer to Note J, Equity Arrangements, of the Notes to (Unaudited) Condensed Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q for further discussion.

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ITEM 6. EXHIBITS

(3.1	)	Revised Amended & Restated ByLaws.
(10.1	)	364-Day Credit Agreement, made as of January 18, 2017 among Stanley Black & Decker, Inc., the initial lenders named therein and Citibank, N.A. as administrative agent for the Lenders (incorporated by reference to the Company’s Current Report on Form 8-K filed on January 19, 2017).
(10.2	)	The Stanley Black & Decker, Inc. 2017 Management Incentive Compensation Plan.
(11	)	Statement re-computation of per share earnings (the information required to be presented in this exhibit appears in Note C to the Company’s (Unaudited) Condensed Consolidated Financial Statements set forth in this Quarterly Report on Form 10-Q).
(31)(i)(a)		Certification by President and Chief Executive Officer pursuant to Rule 13a-14(a).
(i)(b)		Certification by Executive Vice President and Chief Financial Officer pursuant to Rule 13a-14(a).
(32)(i)		Certification by President and Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(ii)		Certification by Executive Vice President and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(101	)	The following materials from Stanley Black & Decker Inc.'s Quarterly Report on Form 10-Q for the quarter ended April 1, 2017, formatted in XBRL (eXtensible Business Reporting Language); (i) Consolidated Statements of Operations and Comprehensive Income for the three months ended April 1, 2017 and April 2, 2016; (ii) Condensed Consolidated Balance Sheets at April 1, 2017 and December 31, 2016; (iii) Condensed Consolidated Statements of Cash Flows for the three months ended April 1, 2017 and April 2, 2016; and (iv) Notes to (Unaudited) Condensed Consolidated Financial Statements**.

** Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		STANLEY BLACK & DECKER, INC.
Date:	April 24, 2017	By:	/s/ DONALD ALLAN, JR.
			Donald Allan, Jr.
			Executive Vice President and Chief Financial Officer

38

EX-3.1

EXHIBIT 3.1

As amended April 21, 2017

STANLEY BLACK & DECKER, INC.

BYLAWS

ARTICLE I

SHAREHOLDERS’ MEETINGS

1. Annual Meeting. The Annual Meeting of the shareholders shall be held at such time in each year and at such place within or without the State of Connecticut as the Board of Directors may determine. Notice thereof shall be mailed to each shareholder to his or her last known post office address not less than ten days nor more than sixty days before such Meeting.

2. Special Meetings. Special Meetings of the shareholders shall be called by the Chairman, or the Chief Executive Officer or Secretary, or by the Chairman, or the Chief Executive Officer or Secretary upon the written request of the holders of not less than 35% of the voting power of all shares entitled to vote on any issue proposed to be considered at such Meeting by mailing a notice thereof to each shareholder to his or her last known post office address not less than twenty-five days nor more than fifty days before such Meeting.

3. Quorum. At any Meeting of shareholders the holders of not less than a majority of the shares outstanding and entitled to vote present in person or by proxy shall constitute a quorum. The Directors may establish a record date for voting or other purposes in accordance with law.

4. Business to be Conducted at Annual Meeting. No business may be transacted at an Annual Meeting of shareholders (including any adjournment thereof), other than business that is either (a) specified in the notice of meeting (or any supplement thereto) given by or at the direction of the Board of Directors (or any duly authorized committee thereof), (b) otherwise properly brought before the Annual Meeting by or at the direction of the Board of Directors (or any duly authorized committee thereof) or (c) otherwise properly brought before the Annual Meeting by any shareholder (i) who is a shareholder of record on the date of the giving of the notice provided for in this Section 4 and on the record date for the determination of shareholders entitled to vote at such Annual Meeting and (ii) who complies with the notice procedures set forth in this Section 4.

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In addition to any other applicable requirements, for business to be properly brought before an Annual Meeting by a shareholder, such shareholder must have given timely notice thereof in proper written form to the Secretary.

To be timely, a shareholder’s notice to the Secretary must be delivered to or mailed and received at the principal executive offices of the Corporation not less than ninety (90) days nor more than one hundred twenty (120) days prior to the anniversary of the date on which the proxy statement was first mailed relating to the immediately preceding Annual Meeting of shareholders; provided, however, that in the event that the Annual Meeting is called for a date that is not within thirty (30) days before or after such anniversary date, in order for a shareholder's notice to be timely it must be so received not later than the close of business on the tenth (10th) day following the day on which the notice of the date of such Annual Meeting was mailed or public disclosure of the date of such Annual Meeting was made, whichever first occurs. In no event shall the public announcement of an adjournment of an Annual Meeting commence a new time period for the giving of a shareholder's notice as described above.

To be in proper written form, a shareholder’s notice to the Secretary must set forth as to each matter such shareholder proposes to bring before the Annual Meeting (i) a brief description of the business desired to be brought before the Annual Meeting and the reasons for conducting such business at the Annual Meeting, including the complete text of any resolutions to be presented at the Annual Meeting with respect to such business, and the reasons for conducting such business at the Annual Meeting, (ii) the name and record address of the shareholder of record proposing such business and any other person on whose behalf the proposal is being made, (iii) the class or series and number of shares of capital stock of the Corporation which are owned beneficially or of record by such shareholder or such other person, (iv) a description of all arrangements or understandings between such shareholder and any such other person or persons in connection with the proposal of such business by such shareholder, (v) a description of any material interest of such shareholder or such other person in such business and (vi) a representation that such shareholder intends to appear in person or by proxy at the Annual Meeting to bring such business before the meeting.

No business shall be conducted at the Annual Meeting of shareholders except business brought before the Annual Meeting in accordance with the procedures set forth in this Section 4; provided, however, that, once business has been properly brought before the Annual Meeting in accordance with such procedures, nothing in this Section 4 shall be deemed to preclude discussion by any shareholder of any such business. If the Chairman of an Annual Meeting determines that business was not properly brought before the Annual Meeting in accordance with the foregoing procedures, the Chairman shall declare to the meeting that the business was not properly brought before the meeting and such business shall not be transacted.

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ARTICLE II

NOMINATIONS OF DIRECTOR CANDIDATES

1. Eligibility to Make Nominations. Nominations of candidates for election as directors of the Corporation at any meeting of shareholders called for election of directors may be made by the Board of Directors (an "Election Meeting") or at any annual meeting of shareholders by any shareholder entitled to vote at such annual meeting.

2. Procedure for Nominations by the Board of Directors. Nominations made by the Board of Directors shall be made at a meeting of the Board of Directors, or by written consent of directors in lieu of a meeting, not less than 30 days prior to the date of the Election Meeting, and such nominations shall be reflected in the minute books for the Corporation as of the date made. At the request of the Secretary of the Corporation each proposed nominee shall provide the Corporation with such information concerning himself or herself as is required, under the rules of the Securities and Exchange Commission, to be included in the Corporation’s proxy statement soliciting proxies for his or her election as a director.

3. Procedure for Nominations by Shareholders. Any shareholder entitled to vote in the election of directors generally may nominate one or more persons for election as directors at an Annual Meeting only if such shareholder has given timely written notice of such shareholder's intent to make such nomination or nominations. To be timely, a shareholder’s notice to the Secretary must be delivered to or mailed and received at the principal executive offices of the Corporation not less than ninety (90) days nor more than one hundred twenty (120) days prior to the anniversary of the date on which the proxy statement was first mailed relating to the immediately preceding Annual Meeting of shareholders; provided, however, that in the event that the Annual Meeting is called for a date that is not within thirty (30) days before or after such anniversary date, in order for a shareholder's notice to be timely it must be so received not later than the close of business on the tenth (10th) day following the day on which notice of the date of such Annual Meeting was mailed or public disclosure of the date of such Annual Meeting was made, whichever first occurs. In no event shall the public announcement of an adjournment of an Annual Meeting commence a new time period for the giving of a shareholder's notice as described above.

To be in proper written form, a shareholder’s notice to the Secretary must set forth: (i) the name and record address of the shareholder of record making such nomination and any other person on whose behalf the nomination is being made, and of the person or persons to be nominated, (ii) the class or series and number of shares of capital stock of the Corporation which are owned beneficially or of record by such shareholder or such other person, (iii) a description of all arrangements or understandings between such shareholder and any such other person or persons or any nominee or nominees in connection with the nomination by such shareholder, (iv) such other information regarding each nominee proposed by such shareholder as would be required to be disclosed in solicitations of

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proxies for election of directors in an election contest, or is otherwise required to be disclosed, pursuant to the rules of the Securities and Exchange Commission had the nominee been nominated or intended to be nominated by the Board of Directors, and shall include a consent signed by each such nominee to being named in the proxy statement for the Annual Meeting as a nominee and to serve as a director of the Corporation if so elected and (v) a representation that such shareholder intends to appear in person or by proxy at the Annual Meeting to make such nomination.

4. Substitution of Nominees. In the event that a person is validly designated as a nominee in accordance with Section 2 of this Article II and shall thereafter become unable or unwilling to stand for election to the Board of Directors, a substitute nominee may be designated by those named as proxies in proxies solicited on behalf of the Board of Directors if the person was designated as nominee in accordance with Section 2 of this Article II.

5. Determination of Compliance with Procedure. If the Chairman of the Election Meeting or the Annual Meeting determines that a nomination was not in accordance with the foregoing procedures, such nomination shall be void and shall be disregarded.

ARTICLE III

DIRECTORS AND COMMITTEES

1. Directors. The business, property and affairs of this Corporation shall be managed by or under the direction of the Board of Directors consisting of not less than nine nor more than eighteen Directors, the exact number to be determined by the Board of Directors from time to time. All Directors shall be shareholders of record. At each Annual Meeting of shareholders, each nominee for Director shall stand for election to a one-year term expiring at the next Annual Meeting of shareholders. Despite the expiration of a Director’s term, such Director shall continue to serve until either the Director’s successor shall have been duly elected and qualified or there is a decrease in the number of Directors. The Directors may increase the prescribed number of Directors by the concurring vote of a majority of the prescribed number of Directors. No reduction of the number of Directors shall remove or shorten the term of any Director in office. A majority of the number of Directors prescribed shall constitute a quorum for the transaction of business.

1.A.    Election of Directors.

(a) At each Annual Meeting of the shareholders, (i) each vote entitled to be cast may be voted for or against up to that number of candidates that is equal to the number of Directors to be elected, or a shareholder may indicate an abstention, but without cumulating the votes; (ii) to be elected, a nominee must have received a plurality of the votes cast by holders of shares entitled to vote in the election at a meeting at which a quorum is present, provided a nominee who is elected but receives more votes against than for election shall serve as a Director for a term

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that shall terminate on the date that is the earlier of (A) ninety days from the date on which the voting results are determined, or (B) the date on which an individual is selected by the Board of Directors to fill the office held by such Director, which selection shall be deemed to constitute the filling of a vacancy by the Board. Subject to subsection (a)(iii), a nominee who is elected but receives more votes against than for election shall not serve as a Director beyond the ninety-day period specified in subsection (a)(ii)(A); and (iii) the Board of Directors may select any qualified individual to fill the office held by a Director who received more votes against than for election.

(b) Subsection (a) does not apply to an election of Directors if at the expiration of the notice period specified in Article II, Section 3 of these Bylaws, there are more candidates for election than the number of Directors to be elected, one or more of whom are properly proposed by shareholders. An individual shall not be considered a candidate for purposes of this subsection if the Board of Directors determines before the notice of meeting is given that such individual’s candidacy does not create a bona fide election contest.

2. Meetings. The Chairman, the Chief Executive Officer or any Vice Chairman may and upon written application of any three Directors shall call a meeting of the Board of Directors to be held at such time and place as may be determined by the person calling said meeting and shall cause notice thereof to be given. Unless waived in writing, three days verbal or written (mail) notice shall be required provided, however, that if in the judgment of any two officers an emergency exists, a meeting may be called forthwith by telephone or facsimile or verbal notice and such notice shall be deemed sufficient notice notwithstanding that some of the Directors may not have actual notice.

The Annual Meeting of the Directors for the election of officers shall be held without notice, immediately after the Annual Meeting of shareholders. Regular meetings of the Directors shall be held at least on a quarterly basis.

3. Written Consent. If all the Directors, or all members of a committee of the Board of Directors, as the case may be, severally or collectively consent in writing to any action taken or to be taken by the Corporation, and the number of such Directors or members constitutes a quorum for such action, such action shall be a valid corporate action as though it had been authorized at a meeting of the Board of Directors or committee, as the case may be. The Secretary shall file such consents with the minutes of the Board of Directors or of the committee, as the case may be.

4. Participation by Telephone. A Director may participate in a meeting of the Board of Directors or of a committee by any means of communication by which all Directors participating in the meeting may simultaneously hear one another during the meeting, and participation in a meeting pursuant to this subsection shall constitute presence in person at such meeting.

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5. Vacancies. In case any vacancy or vacancies shall exist in the Board of Directors at any time the remaining members of the Board by majority action may fill the vacancy or vacancies. The term of a Director elected to fill a vacancy expires at the next shareholders meeting at which Directors are elected.

6. Committees. The Board of Directors may from time to time appoint from its membership such committees as it may deem necessary or desirable for the best interests of the Corporation and may delegate to any committee all needful authority to the extent permitted by law. The meetings of all committees are open to all directors. Each committee shall fix its own rules as to procedure and calling of meetings. It shall appoint a Secretary, who need not be a member of the committee. Such Secretary shall call meetings of the committee on the request of the Chair of the committee or any two members and shall keep permanent record of all of its proceedings. A majority of the members of any committee shall constitute a quorum.

7. Executive Committee. There shall be an Executive Committee consisting of the Chairman of the Board, the Chief Executive Officer (if he or she shall also be a Director), and the Chairmen of the Finance and Pension, Audit, Compensation and Organization, and Corporate Governance Committees.

During intervals between meetings of the Board of Directors, the Executive Committee shall possess and may exercise all the powers of the Board of Directors in the management of the business and affairs of the Corporation, but the Committee shall have no power to declare dividends or do other things specially reserved by law to the Directors. The Executive Committee shall have power to appoint such subcommittees as it may deem necessary to report and make recommendations to the Executive Committee. Any action taken by the Executive Committee shall be subject to change, alteration and revision by the Board of Directors, provided that no rights or acts of others shall be affected by any such alteration or revision.

8. Finance and Pension Committee. A Finance and Pension Committee consisting of at least three Directors shall be appointed by the Board of Directors. The Committee shall advise and assist the Chief Financial Officer and the Treasurer in major matters concerning the finances of the Corporation and in matters of major policy decisions in the purchase and sale of securities. In performance of this the Committee shall regularly review the financial condition of the Corporation so as to counsel these officers and the Board on the total financial resources, strength and capabilities of the Corporation. In this connection, the Committee shall analyze and advise on fundamental corporate changes in capital structure (both debt and equity); review the capital structure of the Corporation and make recommendations with respect to management proposals concerning financing, purchases of treasury stock, investments, and dividend actions; review periodically the Corporation’s risk management program and its adequacy to safeguard the Corporation against extraordinary liabilities or losses; and advise and assist in matters such as short-term investments, credit liabilities, financings, and hedges of foreign currency exposures.

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The Committee shall oversee the Corporation’s administration of its pension plans and of the pension plans of its subsidiaries. The Committee shall be responsible for setting (subject to the approval of the Board of Directors) the retirement policies of the Corporation and its subsidiaries; for amending pension plans, savings and retirement plans, stock ownership plans or any similar plans or related trust agreements; and for approving actuarial assumptions and investment policies for the Corporation’s pension plans. It shall report at least annually to the Board of Directors. The Committee may delegate any or all of these functions to such employees as it, in its judgment, deems appropriate.

Specifically, the Committee shall approve retaining or terminating the services of actuaries, lawyers, accountants or other professionals for the plans; shall approve annually the amount of the contributions to be made by the Corporation to the respective plans; and shall approve appointing and terminating trustees and investment managers and determine the allocation of the assets of the plans among one or more trustees or investment managers.

9. Audit Committee. An Audit Committee consisting of at least three Directors shall be appointed by the Board of Directors. Except as permitted by the independence requirements of the New York Stock Exchange, none of the Audit Committee members shall be officers or employees of the Corporation or any of its affiliates. Audit Committee members shall have no relationship to the Corporation that may interfere with the exercise of their independence from management and the Corporation. Each member of the Audit Committee shall be financially literate and at least one member shall have accounting or related financial management expertise, as such qualifications are interpreted by the Corporation’s Board of Directors in its business judgment.

The responsibilities of the Audit Committee shall be to:

(a) Meet with the independent auditor prior to the audit to review the plan and scope of the audit; meet with management and the independent auditor to review the audited financial statements, including major issues and developments regarding financial reporting and accounting matters; and review the management letter prepared by the independent auditor and management’s responses.

(b) Discuss with the independent auditor the matters required to be discussed on an annual or quarterly basis, as the case may be, under generally accepted auditing standards and any other applicable laws or regulations relating to the conduct of the audit.

(c) Meet periodically with management and the independent and internal auditors to review the adequacy of the Corporation’s system of internal controls over financial reporting and the safeguarding of assets and review significant risk and

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control exposures and the steps being taken by management to monitor such exposures.

(d) Recommend to the Board of Directors the appointment of the independent auditor, subject to shareholder approval, which firm is ultimately accountable to the Audit Committee and the Board of Directors; approve the fees to be paid to the independent auditor; receive and review with the independent auditor periodic reports regarding the auditor’s independence and if so determined by the Audit Committee, recommend that the Board of Directors take appropriate action to satisfy itself of the independence of the auditor; and evaluate the performance of the independent auditor and, if so determined by the Audit Committee, recommend that the Board of Directors replace the independent auditor.

(e) Periodically review the audit plan, the internal audit department responsibilities, budget, resources, skills and staffing; concur in the appointment or replacement of the Director of Internal Audit; review at least annually a summary of audit findings prepared by the internal auditing department and management’s responses.

(f) Review with the Corporation’s General Counsel the Corporation’s legal compliance, including the Business Conduct Guidelines and legal, regulatory or compliance matters that may have a material impact on the financial statements.

(g) Evaluate the adequacy of the Corporation’s Audit Committee Charter annually and recommend any changes to the Board of Directors for adoption.

(h) Perform any other oversight functions as requested by the Board of Directors.

10. Compensation and Organization Committee. A Compensation and Organization Committee consisting of at least three Directors, none of whom shall be employees of the Corporation or any of its subsidiaries, shall be appointed by the Board of Directors. The Committee shall review and approve major organization and compensation structure changes as recommended by Management. Although the Board, itself, will review the performance of the chief executive officer and fix his or her salary, the Committee shall approve the performance and determine the salaries of the other executive officers of the Corporation and of other senior executives whose base salary exceeds an amount fixed by the Board of Directors; shall determine the compensation of all executive officers and such senior executives under the Corporation’s senior executive compensation plans; shall administer all of the Corporation’s senior executive compensation plans; and shall assure that there is a succession plan in place.

11. Corporate Governance Committee. A Corporate Governance Committee consisting of at least three directors, none of whom shall be employees of the Corporation or any of its subsidiaries, shall be appointed by the Board of Directors. The Committee shall consider and make recommendations to the Board of Directors as to Board of Director

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membership with respect to names generated by the Committee itself or submitted by shareholders. The Committee shall consider and make recommendations to the Board of Directors with respect to Board of Director committee membership and chair assignments. (These will normally be acted upon by the Board of Directors at its Annual Meeting held immediately after the Annual Meeting of shareholders.) The Committee shall consider and make recommendations to the Board of Directors with respect to the number of members of the Board of Directors. (The Charter and Bylaws provide for not less than nine nor more than eighteen as may be determined by the Board). Annually, the Committee shall consider and recommend to the Board of Directors the persons whom the Committee proposes that the Board of Directors nominate for election as directors at the Annual Meeting of shareholders. The Committee shall consider and make recommendations to the Board of Directors with respect to remuneration of directors.

The Committee shall provide guidance to the Management on major issues in areas of corporate social responsibility, including environmental issues and public affairs. The Committee shall review and approve policy guidelines to be used by Management in making charitable contributions and shall annually review all charitable contributions made by the Corporation during the previous twelve months and recommend to the Board the level of contributions to be set for the ensuing year.

12. In the absence of any one or more members from a meeting of any of the committees provided for in these Bylaws, the Chairman or the Chief Executive Officer may in his or her discretion invite any member or members of the Board (otherwise qualified to serve) to attend such meeting. Temporary members thus appointed to attend for absentees shall act as regular members and shall have the right to vote.

13. Powers of All Committees. The powers of all committees are at all times subject to the control of the Directors, and any member of any committee may be removed at any time at the pleasure of the Board.

ARTICLE IV

OFFICERS

1. Election of Officers. The Board of Directors shall have power to elect from its own members or otherwise a Chairman, a President, a Chief Executive Officer, one or more Vice Chairmen and Vice Presidents, a Controller, a Secretary, a Treasurer, one or more Assistant Treasurers and Assistant Secretaries, and such other officers, agents and employees as it may deem expedient, and to define the duties and authority of all officers, employees and agents and to delegate to them such lawful powers as may be deemed advisable.

The officers shall respectively perform all acts and duties required of such officers by law, by the Charter and Bylaws of this Corporation, or by the Board of Directors.

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2. Chairman of the Board. If the Directors have elected a Chairman, the Chairman shall preside at all meetings of the Board, except that in the Chairman’s absence, the Directors present shall designate a person to preside. The Chairman shall have such additional duties as the Board of Directors or the Executive Committee may assign.

3. President. The President shall be elected by the Directors and shall have such duties as the Board of Directors or the Executive Committee may assign.

4. Chief Executive Officer. One of the officers shall be appointed Chief Executive Officer of the Corporation by the Board of Directors. Subject to the Board of Directors and the Executive Committee, the Chief Executive Officer shall have general supervision and control of the policies, business and affairs of the Corporation.

5. Vice Chairmen. Each Vice Chairman shall have such powers and perform such duties as may be conferred upon him or her or determined by the Chief Executive Officer.

6. Vice Presidents. Each Vice President shall have such powers and perform such duties as may be conferred upon him or her or determined by the Chief Executive Officer.

7. Treasurer. The Treasurer shall have the oversight and control of the funds of the Corporation and shall have the power and authority to make and endorse notes, drafts and checks and other obligations necessary for the transaction of the business of the Corporation except as herein otherwise provided.

8. Controller. The Controller shall have the oversight and control of the accounting records of the Corporation and shall prepare such accounting reports and recommendations as shall be appropriate for the operation of the Corporation.

9. Secretary. It shall be the duty of the Secretary to make and keep records of the votes, doings and proceedings of all meetings of the shareholders and Board of Directors of the Corporation, and of its Committees, and to authenticate records of the Corporation.

10. Assistant Treasurers. The Assistant Treasurers shall have such duties as the Treasurer shall determine.

11. Assistant Secretaries. The Assistant Secretaries shall have such duties as the Secretary shall determine.

12. Powers of All Officers. The powers of all officers are at all times subject to the control of the Directors, and any officer may be removed at any time at the pleasure of the Board.

ARTICLE V

INDEMNIFICATION

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To the extent properly permitted by law the Board of Directors shall provide for the indemnification and reimbursement of, and advances of expenses to, any person made a party to any action, suit or proceeding by reason of the fact that he or she, or a person whose legal representative or successor he or she is,

(a) is or was a Director, officer, employee or agent of the Corporation, or

(b) served at the Corporation’s request as a director, officer, employee or agent of another corporation,

for expenses, including attorney’s fees, and such amount of any judgment, money decree, fine, penalty or settlement for which he or she may have become liable as the Board of Directors deems reasonable, actually incurred by him or her in connection with the defense or reasonable settlement of any such action, suit or proceeding or any appeal therein.

This provision of indemnification shall be in addition to any other right or remedy which such person may have. The Corporation shall have the right to intervene in and defend all such actions, suits or proceedings brought against any such person.

ARTICLE VI

CORPORATE SEAL

The corporate seal shall be in the custody of the Secretary and either the Secretary or any other officer shall have the power to affix the same for the Corporation.

ARTICLE VII

STOCK CERTIFICATES

1. Signatures. Certificates of stock shall be signed by the Chairman, the President or a Vice President and by the Secretary or the Treasurer (except that where any such certificate is signed by a transfer agent or transfer clerk and by the registrar, the signatures of any such Chairman, President, Vice President, Secretary or Treasurer may be facsimiles, engraved or printed) and shall be sealed with the seal of the corporation (or shall bear a facsimile of such seal).

2. Lost Certificates. No certificate for shares of stock in the Corporation shall be issued in place of any certificate alleged to have been lost, stolen or destroyed except upon production of such evidence of such loss, theft or destruction as the Board of Directors in its discretion may require and upon delivery to the Corporation of a bond of indemnity in form and, unless such requirement is waived by Resolution of the Board, with one or more sureties, satisfactory to the Board in at least double the value of the stock represented by said Certificate.

ARTICLE VIII

FISCAL YEAR

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The Corporation’s fiscal year shall close on the Saturday nearest December 31st of each year.

ARTICLE IX

INDEPENDENT AUDIT

The Board of Directors shall provide for a yearly independent audit, the form and scope of which shall be determined by the Board from time to time.

ARTICLE X

AMENDMENTS

The Board of Directors of the Corporation may adopt, amend or repeal the Bylaws of the Corporation, subject, however, to the power of the shareholders to adopt, amend or repeal the same, provided that any notice of a meeting of shareholders or of the Board of Directors at which Bylaws are to be adopted, amended or repealed, shall include notice of such proposed action.

ARTICLE XI

ACQUISITIONS OF STOCK

(a) Except as set forth in subsection (b) hereof, the Corporation shall not acquire any of its voting equity securities (as defined below) at a price per share above the market price per share (as defined below) of such securities on the date of such acquisition from any person actually known by the Corporation to be the beneficial owner (as determined pursuant to Rule 13d‑3 under the Securities Exchange Act of 1934, as amended, or any successor rule or regulation) of more than three percent of the Corporation’s voting equity securities who has been the beneficial owner of the Corporation’s voting equity securities for less than two years prior to the date of the Corporation’s acquisition thereof, unless such acquisition (i) has been approved by a vote of a majority of the shares entitled to vote, excluding shares owned by any beneficial owner any of whose shares are proposed to be acquired pursuant to the proposed acquisition that is the subject of such vote or (ii) is pursuant to an offer made on the same terms to all holders of securities of such class. The determination of the Board of Directors shall be conclusive in determining the price paid per share for acquired voting equity securities if the Corporation acquires such securities for consideration other than cash.

(b) This provision shall not restrict the Corporation from: (i) acquiring shares in the open market in transactions in which there has been no prior arrangement with, or solicitation of (other than a solicitation publicly made to all holders), any selling holder of voting equity securities or in which all shareholders desiring to sell their shares have an equal chance to sell their shares; (ii) offering to acquire shares of shareholders owning less than 100 shares of any class of voting equity securities; (iii) acquiring shares pursuant to the terms of a stock option or similar plan that has been approved by a vote of a majority of the Corporation’s common shares represented at a meeting of shareholders and entitled to vote thereon; (iv) acquiring shares from, or on behalf of, any employee benefit plan

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maintained by the Corporation or any subsidiary or any trustee of, or fiduciary with respect to, any such plan when acting in such capacity; or (v) acquiring shares pursuant to a statutory appraisal right or otherwise as required by law.

(c) Market price per share on a particular day means the highest sale price on that day or during the period of five trading days immediately preceding that day of a share of such voting equity security on the Composite Tape for New York Stock Exchange‑Listed Stocks, or if such voting equity security is not quoted on the Composite Tape on the New York Stock Exchange or listed on such Exchange, on the principal United States securities exchange registered under the Securities Exchange Act of 1934 on which such voting equity security is listed, or, if such voting equity security is not listed on any such exchange, the highest sales price or, if sales price is not reported, the highest closing bid quotation with respect to a share of such voting equity security on that day or during the period of five trading days immediately preceding that day on the National Association of Securities Dealers, Inc. Automated Quotations System or any system then in use, or if no such quotations are available, the fair market value on the date in question of a share of such voting equity security as determined by a majority of the Board of Directors.

(d) Voting equity securities of the Corporation means equity securities issued from time to time by the Corporation which by their terms are entitled to be voted generally in the election of the directors of the Corporation.

(e) The Board of Directors shall have the power to interpret the terms and provisions of, and make any determinations with respect to, this Article XI, which interpretations and determinations shall be conclusive.

* * *

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EX-10.2

EXHIBIT 10.2

The Stanley Black & Decker 2017 Management Incentive Compensation Plan

1. Purpose. The purpose of Stanley Black & Decker Management Incentive Compensation Plan is to reinforce corporate, organizational and business-development goals, to promote the achievement of year-to-year financial and other business objectives and to reward the performance of eligible employees in fulfilling their personal responsibilities.

2.    Definitions. The following terms, as used herein, shall have the following meanings:

(a) “Affiliate” shall mean, with respect to the Company or any of its subsidiaries, any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company.

(b) “Award” shall mean an incentive compensation award, granted pursuant to the Plan that is contingent upon the attainment of Performance Goals with respect to a Performance Period.

(c) "Beneficial Owner" shall have the meaning set forth in Rule 13d-3 under the Exchange Act.

(d) “Board” shall mean the Board of Directors of the Company.

(e) A "Change in Control" shall be deemed to have occurred if the event set forth in any one of the following paragraphs shall have occurred:

(1) any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates) representing 25% or more of the combined voting power of the Company's then outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (i) of paragraph (3) below; or

(2) the following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on the date hereof, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company's shareowners was approved or recommended by a vote of at least two-thirds

(2/3) of the directors then still in office who either were directors on the date hereof or whose appointment, election or nomination for election was previously so approved or recommended; or

(3) there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation or other entity, other than (i) a merger or consolidation which results in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least 50% of the combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities Beneficially Owned by such Person any securities acquired directly from the Company or its Affiliates) representing 25% or more of the combined voting power of the Company's then outstanding securities; or

(4) the shareowners of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company's assets, other than a sale or disposition by the Company of all or substantially all of the Company's assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned by shareowners of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale.

(f) “Code” shall mean the Internal Revenue Code of 1986, as amended.

(g) “Committee” shall mean the Compensation and Organization Committee of the Board of Directors, the composition of which shall at all times consist solely of two or more "outside directors" within the meaning of section 162(m) of the Code.

(h) “Company” shall mean Stanley Black & Decker, Inc. and its successors.

(i) “Covered Employee” shall have the meaning set forth in Section 162(m)(3) of the Code.

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(j) “Disability” shall have the meaning set forth in Section 22(e)(3) of the Code, or any successor provision.

(k) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

(l) “Participant” shall mean any employee of the Company or an Affiliate who is, pursuant to Section 4 of the Plan, selected to participate in the Plan.

(m) “Performance Goals” shall mean performance goals based on one or more of the following criteria, determined in accordance with generally accepted accounting principles, where applicable: (i) pre-tax income or after-tax income; (ii) earnings including operating income, earnings before or after taxes, earnings before or after interest, depreciation, amortization, or extraordinary or special items; (iii) net income excluding amortization of intangible assets, depreciation and impairment of goodwill and intangible assets; (iv) operating income; (v) earnings or book value per share (basic or diluted); (vi) return on assets (gross or net), return on investment, return on capital, or return on equity; (vii) revenue or return on revenues; (viii) net tangible assets (working capital plus property, plants and equipment) or return on net tangible assets (operating income divided by average net tangible assets) or working capital; (ix) operating cash flow (operating income plus or minus changes in working capital less capital expenditures); (x) cash flow, free cash flow, cash flow return on investment (discounted or otherwise), net cash provided by operations, or cash flow in excess of cost of capital; (xi) sales or sales growth; (xii) operating margin or profit margin; (xiii) share price or total shareholder return; (xiv) earnings from continuing operations; (xv) cost targets, reductions or savings, productivity or efficiencies; (xvi) economic value added; and (xvii) strategic business criteria, consisting of one or more objectives based on meeting specified market penetration or market share, geographic business expansion, customer satisfaction, employee satisfaction, human resources management, financial management, project management, supervision of litigation, information technology, or goals relating to divestitures, joint ventures or similar transactions. Where applicable, the Performance Goals may be expressed in terms of attaining a specified level of the particular criterion or the attainment of a percentage increase or decrease in the particular criterion, and may be applied to one or more of the Company or a parent or subsidiary of the Company, or a division or strategic business unit of the Company, or may be made relative to the performance of other companies or subsidiaries, divisions, departments, regions, functions or other organizational units within such other companies, all as determined by the Committee. The Performance Goals may include a threshold level of performance below which no payment will be made (or no vesting will occur), levels of performance at which specified payments will be paid (or specified vesting will occur) and a maximum level of performance above which no additional payment will be made (or at which full vesting will occur).

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Each of the foregoing Performance Goals shall be evaluated in accordance with generally accepted accounting principles, where applicable, and shall be subject to certification by the Committee.

(n) “Performance Period” shall mean, unless the Committee determines otherwise, a period of no longer than 12 months.

(o) “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Company or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the shareowners of the Company in substantially the same proportions as their ownership of shares of the Company.

(p) “Plan” shall mean the Stanley Black & Decker Management Incentive Compensation Plan, as amended from time to time.

(q) "Retirement" shall mean a Participant's termination of employment with the Company or an Affiliate thereof at or after attaining age 55 and completing ten years of service.

3. Administration. The Plan shall be administered by the Committee. The Committee shall have the authority in its sole discretion, subject to and not inconsistent with the express provisions of the Plan, to administer the Plan and to exercise all the powers and authorities either specifically granted to it under the Plan or necessary or advisable in the administration of the Plan, including, without limitation, the authority to grant Awards; to determine the persons to whom and the time or times at which Awards shall be granted; to determine the terms, conditions, restrictions and performance criteria, including Performance Goals, relating to any Award; to determine whether, to what extent, and under what circumstances an Award may be settled, cancelled, forfeited, or surrendered; to construe and interpret the Plan and any Award; to prescribe, amend and rescind rules and regulations relating to the Plan; to determine the terms and provisions of Awards; and to make all other determinations deemed necessary or advisable for the administration of the Plan. The Committee shall have the authority to make equitable adjustments to the Performance Goals in recognition of unusual or non-recurring events affecting the Company or any parent or subsidiary of the Company or the financial statements of the Company or any parent or subsidiary of the Company, in response to changes in applicable laws or regulations or to account for items of gain, loss or expense determined to be extraordinary or unusual in nature or infrequent in occurrence or related to the disposal of a segment of a business or related to a change in accounting principles; provided that, with respect to any Award to a Covered Employee such adjustment shall only be made to the extent it does not result in the loss of the otherwise available exemption of such award under Section 162(m) of the Code.

4

All decisions, determinations and interpretations of the Committee shall be final and binding on all persons, including the Company and the Participant (or any person claiming any rights under the Plan from or through any Participant).

Subject to Section 162(m) of the Code or as otherwise required for compliance with other applicable law, the Committee may delegate all or any part of its authority under the Plan to any officer or officers of the Company.

4. Eligibility. Awards may be granted to Participants in the sole discretion of the Committee. In determining the persons to whom Awards shall be granted and the Performance Goals relating to each Award, the Committee shall take into account such factors as the Committee shall deem relevant in connection with accomplishing the purposes of the Plan.

5. Terms of Awards. Awards granted pursuant to the Plan shall be communicated to Participants in such form as the Committee shall from time to time approve and the terms and conditions of such Awards shall be set forth therein.

(a) In General. On or prior to the earlier of the 90th day after the commencement of a Performance Period or the date on which 25% of a Performance Period has elapsed, the Committee shall specify in writing, by resolution of the Committee or other appropriate action, the Participants for such Performance Period and the Performance Goals applicable to each Award for each Participant with respect to such Performance Period. Unless otherwise provided by the Committee in connection with specified terminations of employment, payment in respect of Awards shall be made only if and to the extent the Performance Goals with respect to such Performance Period are attained.

(b) Special Provisions Regarding Awards. Notwithstanding anything to the contrary contained in this Section 5, in no event shall payment in respect of an Award granted for a Performance Period be made to a Participant who is or is reasonably expected to be a Covered Employee exceed the lesser of 300% of the Participant's annual base salary on the date the Performance Period commences for any twelve month period or $5,000,000. The Committee may, in its sole discretion, increase (subject to the maximum amount set forth in this Section 5(b)) or decrease the amounts otherwise payable to Participants upon the achievement of Performance Goals under an Award; provided, however, that in no event may the Committee so increase the amount otherwise payable to a Covered Employee pursuant to an Award.

(c) Time and Form of Payment. Subject to Section 6(h), all payments in respect of Awards granted under this Plan shall be made in cash on the 45th day following the end of the Performance Period but in no event later than the 45th day following the fiscal year in which the Award vests.

6. General Provisions.

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(a) Compliance with Legal Requirements. The Plan and the granting and payment of Awards, and the other obligations of the Company under the Plan shall be subject to all applicable federal and state laws, rules and regulations, and to such approvals by any regulatory or governmental agency as may be required.

(b) Nontransferability. Awards shall not be transferable by a Participant except upon the Participant’s death following the end of the Performance Period but prior to the date payment is made, in which case the Award shall be transferable in accordance with any beneficiary designation made by the Participant in accordance with Section 6(l) below or, in the absence thereof, by will or the laws of descent and distribution.

(c) No Right To Continued Employment. Nothing in the Plan or in any Award granted pursuant hereto shall confer upon any Participant the right to continue in the employ of the Company or to be entitled to any remuneration or benefits not set forth in the Plan or to interfere with or limit in any way whatever rights otherwise exist of the Company to terminate such Participant’s employment or change such Participant’s remuneration.

(d) Withholding Taxes. Where a Participant or other person is entitled to receive a payment pursuant to an Award hereunder, the Company shall have the right either to deduct from the payment, or to require the Participant or such other person to pay to the Company prior to delivery of such payment, an amount sufficient to satisfy any federal, state, local or other withholding tax requirements related thereto.

(e) Amendment, Termination and Duration of the Plan. The Board or the Committee may at any time and from time to time alter, amend, suspend, or terminate the Plan in whole or in part; provided that, no amendment that requires shareholder approval in order for the Plan to continue to comply with Section 162(m) of the Code shall be effective unless the same shall be approved by the requisite vote of the shareholders of the Company. Notwithstanding the foregoing, no amendment (other than an amendment necessary to comply with Section 409A of the Code) shall affect adversely any of the rights of any Participant under any Award following the end of the Performance Period to which such Award relates, provided that the exercise of the Committee’s discretion pursuant to Section 5(b) to reduce the amount of an Award shall not be deemed an amendment of the Plan.

(f) Participant Rights. No Participant shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment for Participants.

(g) Termination of Employment.

(i) Unless otherwise provided by the Committee, and except as set forth in subparagraph (ii) of this Section 6(g), a Participant must be actively

6

employed by the Company or one of its Affiliates at the end of the Performance Period in order to be eligible to receive payment in respect of such Award.

(ii) Unless otherwise provided by the Committee, if a Participant’s employment is terminated as result of death, Disability or Retirement prior to the end of the Performance Period, the Participant's Award shall be cancelled and in respect of his or her cancelled Award the Participant shall receive a pro rata portion of the Award as determined by the Committee and such Award shall be payable at the same time as Awards are paid to active Participants.

(h) Change in Control. Notwithstanding any provision in the Plan to the contrary, upon a Change in Control, unless an outstanding Award is assumed, replaced or converted by the successor or the resulting entity (or any parent thereof), each outstanding Award shall be cancelled and in respect of his or her cancelled Award a Participant shall receive a pro rata portion of the Award, calculated by determining the achievement of the applicable Performance Goal or Performance Goals based on actual performance though the date of such Change in Control, and then multiplying this amount by a fraction, the numerator of which is the number of days completed in the Performance Period prior to the Change in Control and the denominator of which is the total number of days in the Performance Period (the “Pro Rata Change in Control Amount”). The determination as to whether an Award is assumed, replaced or converted in connection with the Change in Control shall be made by the Committee, in good faith, taking into account such factors as it deems appropriate, including the feasibility of continuing the applicable Performance Goals or Performance Goals based on the resulting entity in the applicable Change in Control. If (i) an Award is assumed, replaced or converted pursuant to the immediately preceding sentence (an “Assumed Award”) and (ii) if a Participant incurs a termination by the Company without Cause or if the Participant terminates his or her employment for Good Reason, in each case, prior to the end of the applicable performance period, then, unless otherwise provided for in a Participant’s employment or severance agreement or in a severance plan in which the Participant then participates, such Participant will be entitled to receive a pro rata portion of the Assumed Award, assuming the achievement of the underlying performance goals at target level and based on the number of days completed in the Performance Period prior to the date of his or her termination of employment. The pro rata portion of the Change in Control Amount shall be paid in cash as soon as practicable following the Change in Control and the pro rate portion of the Assumed Award will be paid within 30 days following such participant’s termination of employment. After a Change in Control, the Committee may not exercise the discretion referred to in Section 5(b) to decrease the amount payable in respect of any Award which is outstanding immediately prior to the occurrence of the Change in Control.

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(i) Unfunded Status of Awards. The Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation. With respect to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award shall give any such Participant any rights that are greater than those of a general creditor of the Company.

(j) Governing Law. The Plan and all determinations made and actions taken pursuant hereto shall be governed by the laws of the State of Connecticut without giving effect to the conflict of laws principles thereof.

(k) Effective Date. The Plan shall take effect upon its adoption by the Board; provided, however, that the Plan shall be subject to the requisite approval of the shareholders of the Company in order to comply with Section 162(m) of the Code. In the absence of such approval, the Plan (and any Awards made pursuant to the Plan prior to the date of such approval) shall be null and void.

(l) Beneficiary. A Participant may file with the Committee a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, amend or revoke such designation. If no designated beneficiary survives the Participant and an Award is payable to the Participant’s beneficiary pursuant to Section 6(b), the Participant’s estate shall be deemed to be the grantee’s beneficiary.

(m) Interpretation. The Plan is designed and intended to comply, to the extent applicable, with Section 162(m) of the Code, and all provisions hereof shall be construed in a manner to so comply.

7. Detrimental Activity and Recapture Provisions.     The Committee or the Board may provide for the cancellation or forfeiture of an Award or the forfeiture and repayment to the Company of any gain related to an Award, or other provisions intended to have a similar effect, upon such terms and conditions as may be determined by the Committee or the Board from time to time (including under any applicable clawback policy adopted by the Company), including, without limitation, in the event that a Participant, during employment or other service with the Company or an Affiliate, engages in activity detrimental to the business of the Company. In addition, notwithstanding anything in the Plan to the contrary, the Committee or the Board may also provide for the cancellation or forfeiture of an Award or the forfeiture and repayment to the Company of any gain related to an Award, or other provisions intended to have a similar effect, upon such terms and conditions as may be required by the Committee or the Board under Section 10D of the Exchange Act and any applicable rules or regulations promulgated by the Securities and Exchange Commission or any national securities exchange or national securities association on which common stock of the Company may be traded or under any clawback policy adopted by the Company.

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9

EX-31.A

EXHIBIT 31(i)(a)

CERTIFICATIONS

I, James M. Loree, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Stanley Black & Decker, Inc. and subsidiaries;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	April 24, 2017	/s/ James M. Loree
		James M. Loree
		President and Chief Executive Officer

EX-31.B

EXHIBIT 31(i)(b)

CERTIFICATIONS

I, Donald Allan Jr., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Stanley Black & Decker, Inc. and subsidiaries;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	April 24, 2017	/s/ Donald Allan Jr.
		Donald Allan Jr.
		Executive Vice President and Chief Financial Officer

EX-32.I

EXHIBIT 32 (i)

STANLEY BLACK & DECKER, INC.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Stanley Black & Decker, Inc. (the “Company”) on Form 10-Q for the period ending April 1, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, James M. Loree, President and Chief Executive Officer, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ James M. Loree

James M. Loree

President and Chief Executive Officer

Date: April 24, 2017

EX-32.II

EXHIBIT 32 (ii)

STANLEY BLACK & DECKER, INC.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Stanley Black & Decker, Inc. (the “Company”) on Form 10-Q for the period ending April 1, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Donald Allan, Jr., Executive Vice President and Chief Financial Officer, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Donald Allan, Jr.

Donald Allan, Jr.

Executive Vice President and Chief Financial Officer

Date: April 24, 2017

XML

Document and Entity Information - shares	3 Months Ended
	Apr. 01, 2017	Apr. 17, 2017
Document Information [Line Items]
Document Type	10-Q
Document Period End Date	Apr. 01, 2017
Amendment Flag	false
Entity Common Stock, Shares Outstanding		152,973,215
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Trading Symbol	SWK
Entity Registrant Name	STANLEY BLACK & DECKER, INC.
Entity Central Index Key	0000093556
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Net Sales	$ 2,805.6	$ 2,672.1
Costs and Expenses
Cost of sales	1,740.3	1,694.5
Selling, general and administrative	676.5	620.4
Provision for doubtful accounts	8.2	7.4
Other-net	106.2	46.2
Gain (Loss) on Disposition of Business	(269.2)	0.0
Defined Benefit Plan, Settlements, Plan Assets	12.5	0.0
Restructuring charges	15.8	8.0
Interest expense	51.3	47.3
Interest income	(8.6)	(5.8)
Costs and Expenses, Total	2,333.0	2,418.0
Earnings from continuing operations before income taxes	472.6	254.1
Income taxes on continuing operations	79.5	65.5
Earnings from continuing operations	393.1	188.6
Income (Loss) from Continuing Operations Attributable to Noncontrolling Interest	0.0	(0.8)
Net Earnings Attributable to Common Shareowners	393.1	189.4
Total Comprehensive (Loss) Income Attributable to Common Shareowners	$ 506.6	$ 269.2
Basic earnings per share of common stock:
Total basic earnings per share of common stock	$ 2.63	$ 1.30
Diluted earnings per share of common stock:
Total diluted earnings per share of common stock	2.59	1.28
Dividends per shares of common stock	$ 0.58	$ 0.55
Weighted Average Shares Outstanding (in thousands):
Basic (in shares)	149,208	145,870
Diluted (in shares)	151,526	147,619

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Dec. 31, 2016
Document Period End Date	Apr. 01, 2017
Current Assets
Cash and cash equivalents	$ 378.0	$ 1,131.8
Accounts and notes receivable, net	1,728.0	1,302.8
Inventories, net	1,976.7	1,478.0
Disposal Group, Including Discontinued Operation, Assets, Current	0.0	523.4
Other current assets	285.6	352.5
Total Current Assets	4,368.3	4,788.5
Property, Plant and Equipment, net	1,538.3	1,451.2
Goodwill	8,364.2	6,694.0
Intangibles, net	3,603.3	2,299.5
Other Assets	788.0	401.7
Total Assets	18,662.1	15,634.9
Current Liabilities
Short-term borrowings	1,159.3	4.3
Current maturities of long-term debt	8.1	7.8
Accounts payable	1,928.8	1,640.4
Accrued expenses	1,118.2	1,101.5
Disposal Group, Including Discontinued Operation, Liabilities	0.0	53.5
Total Current Liabilities	4,214.4	2,807.5
Long-Term Debt	3,815.6	3,815.3
Deferred Taxes	1,174.8	735.4
Post-retirement Benefits	637.6	644.3
Other Liabilities	2,001.6	1,258.8
Stanley Black & Decker, Inc. Shareowners' Equity
Preferred stock, without par value: Authorized and unissued 10,000,000 shares	0.0	0.0
Common stock, par value $2.50 per share: Authorized 300,000,000 shares in 2013 and 2012 Issued 176,906,265 shares in 2013 and 2012	442.3	442.3
Retained earnings	5,433.8	5,127.3
Additional paid in capital	4,767.7	4,774.4
Accumulated other comprehensive loss	(1,807.7)	(1,921.2)
ESOP	(22.3)	(25.9)
Stockholders' Equity Subtotal, Total	8,813.8	8,396.9
Less: cost of common stock in treasury	(2,002.3)	(2,029.9)
Stanley Black & Decker, Inc. Shareowners' Equity	6,811.5	6,367.0
Non-controlling interests	6.6	6.6
Total Shareowners' Equity	6,818.1	6,373.6
Total Liabilities and Shareowners' Equity	$ 18,662.1	$ 15,634.9

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Apr. 01, 2017	Dec. 31, 2016
Preferred stock, shares unissued	10,000,000	10,000,000
Preferred stock, shares authorized	10,000,000	10,000,000
Common Stock, Par or Stated Value Per Share	$ 2.50	$ 2.50
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	176,902,738	176,902,738

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
OPERATING ACTIVITIES
Net Earnings Attributable to Common Shareowners	$ 393.1	$ 189.4
Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation and amortization of property, plant and equipment	67.8	64.2
Amortization of intangibles	33.7	35.9
Changes in working capital	(410.2)	(268.0)
Changes in other assets and liabilities	39.2	(114.6)
Cash provided by operating activities	(145.6)	(93.1)
Gain (Loss) on Disposition of Business	(269.2)	0.0
INVESTING ACTIVITIES
Capital expenditures	(64.7)	(64.9)
Business acquisitions, net of cash acquired	(2,435.4)	(13.0)
Proceeds from sale of assets	19.3	2.1
Proceeds from Divestiture of Businesses	744.8	0.0
Proceeds (payments) on net investment hedge settlements	20.7	(2.4)
Payments for (Proceeds from) Other Investing Activities	3.8	3.5
Cash provided by (used in) investing activities	(1,719.1)	(81.7)
FINANCING ACTIVITIES
Stock purchase contract fees	0.0	(3.5)
Net short-term borrowings	1,156.7	481.2
Cash dividends on common stock	(86.7)	(79.6)
Proceeds from the issuance of common stock	17.3	8.5
Purchase of common stock for treasury	(13.5)	(361.4)
Proceeds from (Payments for) Other Financing Activities	(1.0)	(0.7)
Cash provided by (used in) financing activities	1,072.8	44.5
Effect of exchange rate changes on cash and cash equivalents	38.1	17.1
Change in cash and cash equivalents	(753.8)	(113.2)
Cash and cash equivalents, beginning of period	1,131.8	465.4
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 378.0	$ 352.2

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Basis of Presentation

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (hereinafter referred to as “generally accepted accounting principles”) for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations for the interim periods have been included and are of a normal, recurring nature. Operating results for the three months ended April 1, 2017 are not necessarily indicative of the results that may be expected for a full fiscal year. For further information, refer to the consolidated financial statements and footnotes included in Stanley Black & Decker, Inc.’s (the “Company”) Form 10-K for the year ended December 31, 2016, and subsequent related filings with the Securities and Exchange Commission.

In February 2017, the Company sold the majority of its mechanical security businesses within the Security segment, which included the commercial hardware brands of Best Access, phi Precision and GMT. In addition, the Company sold a small business within the Tools & Storage segment on January 3, 2017. The operating results of these businesses have been reported within continuing operations in the Consolidated Financial Statements through their respective date of sale in 2017 and for the three months ended April 2, 2016. In addition, the assets and liabilities related to the businesses sold were classified as held for sale on the Company's Consolidated Balance Sheets as of December 31, 2016. Refer to Note T, Divestitures, for further discussion.

In March 2017, the Company acquired the Tools business of Newell Brands ("Newell Tools") and the Craftsman brand, which are both being accounted for as business combinations. The results of these acquisitions are being consolidated into the Company's Tools & Storage segment. Refer to Note F, Acquisitions, for further discussion.

The preparation of financial statements in conformity with generally accepted accounting principles 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.

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New Accounting Standards

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

New Accounting Standards

New Accounting Standards

In March 2017, the Financial Accounting Standards Boards ("FASB") issued Accounting Standards Update ("ASU") 2017-07, Compensation-Retirement Benefits (Topic 715). The new standard improves the presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements.

In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610). The new standard provides guidance for recognizing gains and losses of nonfinancial assets in contracts with non-customers. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new standard simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. This ASU will be applied prospectively and is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The new standard narrows the definition of a business and provides a framework for evaluation. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years.

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. The new standard eliminates the exception to the principle in ASC 740, for all intra-entity sales of assets other than inventory, to be deferred, until the transferred asset is sold to a third party or otherwise recovered through use. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230). The objective of this update is to provide additional guidance and reduce diversity in practice when classifying certain transactions within the statement of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. These standards are effective for financial statements issued for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326). The new standard amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The objective of this update is to simplify several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU was effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company adopted this standard prospectively in the first quarter of 2017 and it did not have a material impact on its consolidated financial statements. Prior periods were not adjusted.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods and is to be applied utilizing a modified retrospective approach. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The main objective of this update is to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The new guidance addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the new guidance to determine the impact it may have 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 was effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company adopted this standard in the first quarter of 2017 and it did not have an impact on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The new revenue recognition standard outlines a comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The new model provides a five-step analysis in determining when and how revenue is recognized. The core principle of the new guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB affirmed its proposal to defer the effective date of the standard to annual reporting periods (and interim reporting periods within those years) beginning after December 15, 2017. Entities are permitted to apply the new revenue standard early, but not before the original effective date of annual periods beginning after December 15, 2016. The standard shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In March, April, May and December 2016, the FASB clarified the implementation guidance on principal versus agent, identifying performance obligations, licensing, collectability and made technical corrections on various topics. The Company expects to apply the full retrospective method of adoption starting with the first interim period after December 15, 2017. Based on the Company’s preliminary assessment, the anticipated impacts to the financial statements are primarily related to classification of outbound freight on the income statement and presentation of returns reserve.

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Earnings Per Share

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Earnings Per Share

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 three months ended April 1, 2017 and April 2, 2016:

	Year-to-Date
	2017		2016
Numerator (in millions):
Net Earnings Attributable to Common Shareowners	$	393.1	$	189.4
Denominator (in thousands):
Basic earnings per share — weighted-average shares	149,208		145,870
Dilutive effect of stock contracts and awards	2,318		1,749
Diluted earnings per share — weighted-average shares	151,526		147,619
Earnings per share of common stock:
Basic	$	2.63	$	1.30
Diluted	$	2.59	$	1.28

The following weighted-average stock options were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive (in thousands):

	Year-to-Date
	2017	2016
Number of stock options	1,163	1,590

As described in detail in Note J, Equity Arrangements, the Company issued Equity Units in December 2013 comprised of $345.0 million of Notes and Equity Purchase Contracts, which obligated the holders to purchase on November 17, 2016, for $100, between 1.0122 and 1.2399 shares of the Company’s common stock. The shares related to the Equity Purchase Contracts were anti-dilutive during January and February 2016. Upon the November 17, 2016 settlement date, the Company issued 3,504,165 shares of common stock and received cash proceeds of $345.0 million.

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Financing Receivables

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Financing Receivables

Financing Receivables

Long-term trade financing receivables of $183.6 million and $180.9 million at April 1, 2017 and December 31, 2016, respectively, are reported within Other Assets in the Condensed 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 under lease 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 non-performing.

The Company has an accounts receivable sale program that expires on 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 sheet 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 April 1, 2017, the Company did not record a servicing asset or liability related to its retained responsibility based on its assessment of the servicing fee, market values for similar transactions and its cost of servicing the receivables sold.

At April 1, 2017 and December 31, 2016, $65.3 million and $100.5 million, respectively, of net receivables were derecognized. Gross receivables sold amounted to $453.8 million ($388.9 million, net) for the three months ended April 1, 2017. These sales resulted in a pre-tax loss of $1.4 million, and included servicing fees of $0.2 million, for the three months ended April 1, 2017. Proceeds from transfers of receivables to the Purchaser totaled $337.0 million for the three months ended April 1, 2017. 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 $372.4 million for the three months ended April 1, 2017.

Gross receivables sold amounted to $384.7 million ($341.3 million, net) for the three months ended April 2, 2016. These sales resulted in a pre-tax loss of $1.0 million, and included servicing fees of $0.2 million, for the three months ended April 2, 2016. Proceeds from transfers of receivables to the Purchaser totaled $277.6 million for the three months ended April 2, 2016. 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 $294.2 million for the three months ended April 2, 2016.

The Company’s risk of loss following the sale of the receivables is limited to the deferred purchase price receivable, which was $166.8 million at April 1, 2017 and $83.2 million at December 31, 2016. 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. There were no delinquencies or credit losses for the three months ended April 1, 2017 and April 2, 2016. Cash inflows related to the deferred purchase price receivable totaled $129.9 million for the three months ended April 1, 2017, and $90.8 million for the three months ended April 2, 2016. All cash flows under the program are reported as a component of changes in working capital within operating activities in the Condensed 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.

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Inventories

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Inventories

Inventories

The components of Inventories, net at April 1, 2017 and December 31, 2016 are as follows:

(Millions of Dollars)	April 1, 2017		December 31, 2016
Finished products	$	1,455.7	$	1,044.2
Work in process	158.4		133.3
Raw materials	362.6		300.5
Total	$	1,976.7	$	1,478.0

As more fully disclosed in Note F, Acquisitions, the Company acquired inventory with estimated fair values of approximately $203.0 million and $18.0 million during the first quarter of 2017 related to the Newell Tools and Craftsman brand acquisitions, respectively.

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Acquisitions

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Acquisitions

Acquisitions

2017 ACQUISITIONS

Newell Tools

On March 9, 2017, the Company acquired the Tools business of Newell Brands ("Newell Tools"), which includes the industrial cutting, hand tool and power tool accessory brands Irwin® and Lenox®, for approximately $1.84 billion, net of cash acquired and an estimated working capital adjustment. This acquisition will enhance the Company’s position within the global tools & storage industry and broadens the Company’s product offerings and solutions to customers and end users, particularly within power tool accessories. The results of Newell Tools are being consolidated into the Company's Tools & Storage segment.

The Newell Tools acquisition is being accounted for as a business combination, which requires, among other things, the assets acquired and liabilities assumed to be recognized at their fair values as of the acquisition date. The following table summarizes the estimated fair values of major assets acquired and liabilities assumed:

(Millions of Dollars)
Cash	$	17.1
Accounts and notes receivable	44.4
Inventory	203.0
Prepaid expenses and other current assets	4.6
Property, plant and equipment	98.0
Trade names	283.0
Customer relationships	540.0
Other assets	8.2
Accounts payable	(65.2		)
Accrued expenses	(19.7		)
Deferred taxes	(299.8		)
Other liabilities	(0.7		)
Total identifiable net assets	$	812.9
Goodwill	1,044.5
Total consideration paid	$	1,857.4

The trade names were determined to have indefinite lives. The weighted-average useful life assigned to the customer relationships was 15 years.

Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined business, assembled workforce, and the going concern nature of Newell Tools. It is estimated that $14.9 million of goodwill, relating to the pre-acquisition historical tax basis of goodwill, will be deductible for tax purposes.

The purchase price allocation for Newell Tools is preliminary in all respects. During the measurement period, the Company expects to record adjustments relating to the finalization of intangible asset, inventory and property, plant and equipment valuations, various opening balance sheet contingencies, including environmental remediation and risk insurance reserves, and various income tax matters, amongst others.

A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. The Company’s judgments used to determine the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact the Company’s results from operations. The Company will complete its purchase price allocation as soon as reasonably possible within the measurement period.

Craftsman Brand

On March 8, 2017, the Company purchased the Craftsman brand from Sears Holdings, which provides the Company with the rights to develop, manufacture and sell Craftsman-branded products in non-Sears Holdings channels. The total estimated cash purchase price is $889.8 million, consisting of a cash payment at closing of $571.8 million, which reflects the impact of working capital adjustments, a cash payment at the end of year three with an estimated present value of $234.0 million, and future payments to Sears Holdings of between 2.5% and 3.5% on new Stanley Black & Decker sales of Craftsman products through March 2032, which was valued at $84.0 million at the acquisition date based on estimated future sales projections which are subject to change. Refer to Note M, Fair Value Measurements, for additional details. In addition, as part of the acquisition the Company also granted a perpetual license to Sears Holdings to continue selling Craftsman®-branded product in Sears-related channels. The perpetual license will be royalty-free until March 2032, which represents an estimated value of approximately $300.0 million, and 3% thereafter. The estimated fair value of the royalty-free license period is preliminary and based on estimated future sales projections which are subject to change. The Craftsman results are being consolidated into the Company's Tools & Storage segment.

The Craftsman brand acquisition is being accounted for as a business combination which requires, among other things, the assets acquired and liabilities assumed to be recognized at their fair values as of the acquisition date. The estimated fair value of assets acquired, which includes $47.6 million of working capital and $487.0 million of intangible assets, is $648.9 million. The related goodwill is approximately $540.9 million. The amount allocated to intangible assets includes $466.0 million of an indefinite-lived trade name. The useful life assigned to the customer relationships was 15 years.

Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined business and the going concern nature of the Craftsman brand. Goodwill is not expected to be deductible for tax purposes.

The purchase price allocation for Craftsman is preliminary in all respects. During the measurement period, the Company expects to record adjustments relating to the finalization of valuations for intangible assets, inventory, the contingent consideration liability relating to future payments to Sears Holdings and the royalty-free license period described above, and various opening balance sheet contingencies, including warranty exposures, amongst others.

A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. The Company’s judgments used to determine the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact the Company’s results from operations. The Company will complete its purchase price allocation as soon as reasonably possible within the measurement period.

OTHER ACQUISITIONS

The Company also completed one smaller acquisition during the first quarter of 2017 for a total purchase price of $26.1 million, net of cash acquired, which is being consolidated into the Security segment.

2016 ACQUISITIONS

During 2016, the Company completed five small acquisitions for a total purchase price of $59.3 million, net of cash acquired, which are being integrated into the Company’s Tools & Storage and Security segments. The total purchase price for the acquisitions was allocated to the assets acquired and liabilities assumed based on their estimated fair values. The purchase accounting for these acquisitions is substantially complete with the exception of certain minor items and will be completed within the measurement period.

ACTUAL AND PRO-FORMA IMPACT OF THE ACQUISTIONS

Actual Impact from Acquisitions

The Company's Consolidated Statements of Operations and Comprehensive Income for the first quarter of 2017 include net sales of $66.1 million and a net loss of $32.5 million from 2017 acquisitions. These amounts include amortization relating to inventory step-up and intangible assets recorded upon acquisition, transaction costs, and other integration-related costs.

Pro-forma Impact from Acquisitions

The following table presents supplemental pro-forma information as if the acquisitions had occurred on January 3, 2016. The pro-forma consolidated results are not necessarily indicative of what the Company’s consolidated net earnings would have been had the Company completed the acquisitions on January 3, 2016. In addition, the pro-forma consolidated results do not purport to project the future results of the combined Company.

	First Quarter
(Millions of Dollars, except per share amounts)	2017		2016
Net sales	$	2,953.2	$	2,876.9
Net earnings attributable to common shareowners	436.9		142.3
Diluted earnings per share	$	2.88	$	0.96

2017 Pro-forma Results

The 2017 pro-forma results were calculated by combining the results of Stanley Black & Decker with the stand-alone results of the 2017 acquisitions for their respective pre-acquisition periods. Accordingly the following adjustments were made:

• Elimination of the historical pre-acquisition intangible asset amortization expense and the addition of intangible asset amortization expense related to intangibles valued as part of the purchase price allocation that would have been incurred from January 1, 2017 to the acquisition dates.

• Because the 2017 acquisitions were assumed to occur on January 3, 2016, there were no deal costs or inventory step-up amortization factored into the 2017 pro-forma year, as such expenses would have occurred in the first year following the acquisition.

2016 Pro-forma Results

The 2016 pro-forma results were calculated by taking the historical financial results of Stanley Black & Decker and adding the historical results of the 2017 acquisitions for their respective pre-acquisition periods. Accordingly the following adjustments were made assuming the acquisitions commenced on January 3, 2016:

• Elimination of the historical pre-acquisition intangible asset amortization expense and the addition of intangible asset amortization expense related to intangibles valued as part of the purchase price allocation that would have been incurred from January 3, 2016 to April 2, 2016.

• Additional expense for deal costs and inventory step-up, which would have been amortized as the corresponding inventory was sold.

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Goodwill

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Goodwill

Goodwill

Changes in the carrying amount of goodwill by segment are as follows:

(Millions of Dollars)	Tools & Storage		Security		Industrial		Total
Balance December 31, 2016	$	3,247.8	$	2,007.0	$	1,439.2	$	6,694.0
Acquisition adjustments	1,585.4		15.7		—		1,601.1
Foreign currency translation and other	54.1		9.8		5.2		69.1
Balance April 1, 2017	$	4,887.3	$	2,032.5	$	1,444.4	$	8,364.2

In the first quarter of 2017, goodwill increased by approximately $1.7 billion, which primarily related to the Newell Tools and Craftsman brand acquisitions. The goodwill amounts for these acquisitions are subject to change based upon the allocation of the consideration transferred to the assets acquired and liabilities assumed. Refer to Note F, Acquisitions, for further discussion.

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Long-Term Debt and Financing Arrangements

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Long-Term Debt and Financing Arrangements

Long-Term Debt and Financing Arrangements

Long-term debt and financing arrangements at April 1, 2017 and December 31, 2016 are as follows:

		April 1, 2017																December 31, 2016
(Millions of Dollars)	Interest Rate	Original Notional		Unamortized Discount			Unamortized Gain/(Loss) Terminated Swaps (1)			Purchase Accounting FV Adjustment		Deferred Financing Fees			Carrying Value			Carrying Value
Notes payable due 2018	2.45%	$	632.5	$	—		$	—		$	—	$	(2.9	)	$	629.6		$	629.2
Notes payable due 2018	1.62%	345.0		—			—			—		(1.6		)	343.4			343.1
Notes payable due 2021	3.40%	400.0		(0.2		)	16.2			—		(1.6		)	414.4			415.2
Notes payable due 2022	2.90%	754.3		(0.4		)	—			—		(3.5		)	750.4			750.3
Notes payable due 2028	7.05%	150.0		—			12.3			11.9		—			174.2			174.7
Notes payable due 2040	5.20%	400.0		(0.2		)	(34.5		)	—		(3.2		)	362.1			361.7
Notes payable due 2052 (junior subordinated)	5.75%	750.0		—			—			—		(19.4		)	730.6			730.4
Notes payable due 2053 (junior subordinated)	5.75%	400.0		—			4.8			—		(8.2		)	396.6			396.5
Other, payable in varying amounts through 2022	0.00% - 2.90%	22.4		—			—			—		—			22.4			22.0
Total long-term debt, including current maturities		$	3,854.2	$	(0.8	)	$	(1.2	)	$	11.9	$	(40.4	)	$	3,823.7		$	3,823.1
Less: Current maturities of long-term debt															(8.1		)	(7.8		)
Long-term debt															$	3,815.6		$	3,815.3

⁽¹⁾Unamortized gain/loss associated with interest rate swaps are more fully discussed in Note I, Financial Instruments.

In January 2017, the Company amended its existing $2.0 billion commercial paper program to increase the maximum amount of notes authorized to be issued to $3.0 billion and to include Euro denominated borrowings in addition to U.S. Dollars. As of April 1, 2017, the Company had $1.2 billion of borrowings outstanding against the Company’s $3.0 billion commercial paper program, of which approximately $961.7 million in Euro denominated commercial paper was designated as a Net Investment Hedge as described in more detail in Note I, Financial Instruments. At December 31, 2016, the Company had no commercial paper borrowings outstanding.

In January 2017, the Company also executed a 364-day $1.3 billion committed credit facility (the "2017 Credit Agreement"). The 2017 Credit Agreement consists of a $1.3 billion revolving credit loan and a sub-limit of an amount equal to the Euro equivalent of $400 million for swing line advances. Borrowings under the 2017 Credit Agreement may be made in U.S. Dollars or Euros, pursuant to the terms of the agreement, and bear interest at a floating rate dependent on the denomination of the borrowing. Repayments must be made by January 17, 2018 or upon an earlier termination of the 2017 Credit Agreement at the election of the Company. The 2017 Credit Agreement serves as a liquidity back-stop for the Company’s $3.0 billion U.S. Dollar and Euro commercial paper program, also authorized and amended in January 2017, as discussed above. As of April 1, 2017, the Company had not drawn on this commitment.

As of April 1, 2017 and December 31, 2016, the Company had not drawn on its existing five year $1.75 billion committed credit facility.

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Financial Instruments

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Financial Instruments

Financial Instruments

The Company is exposed to market risk from changes in foreign currency exchange rates, interest rates, stock prices and commodity prices. As part of the Company’s risk management program, a variety of financial instruments such as interest rate swaps, currency swaps, purchased currency options, foreign exchange contracts and commodity contracts may be used to mitigate interest rate exposure, foreign currency exposure and commodity price exposure.

If the Company elects to do so and if the instrument meets the criteria specified in ASC 815, "Derivatives and Hedging," management designates its derivative instruments as cash flow hedges, fair value hedges or net investment hedges. Generally, commodity price exposures are not hedged with derivative financial instruments and instead are actively managed through customer pricing initiatives, procurement-driven cost reduction initiatives and other productivity improvement projects. Financial instruments are not utilized for speculative purposes.

A summary of the fair values of the Company’s financial instruments recorded in the Condensed Consolidated Balance Sheets at April 1, 2017 and December 31, 2016 follows: 

(Millions of Dollars)	Balance Sheet Classification	April 1, 2017		December 31, 2016		Balance Sheet Classification	April 1, 2017		December 31, 2016
Derivatives designated as hedging instruments:
Interest Rate Contracts Cash Flow	LT other assets	$	—	$	—	LT other liabilities	$	43.4	$	47.3
Foreign Exchange Contracts Cash Flow	Other current assets	22.4		37.6		Accrued expenses	1.9		1.6
	LT other assets	0.7		—		LT other liabilities	—		—
Net Investment Hedge	Other current assets	6.2		44.1		Accrued expenses	10.7		1.8
	LT other assets	—		—		LT other liabilities	10.6		0.5
Non-derivative designated as hedging instrument:
Net Investment Hedge		—		—		Short term borrowings	961.7		—
Total Designated		$	29.3	$	81.7		$	1,028.3	$	51.2
Derivatives not designated as hedging instruments:
Foreign Exchange Contracts	Other current assets	$	10.6	$	28.5	Accrued expenses	$	3.2	$	46.4
Total Undesignated		$	10.6	$	28.5		$	3.2	$	46.4

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.

During the three months ended April 1, 2017 and April 2, 2016, cash flows related to derivatives, including those that are separately discussed below, resulted in net cash received of $30.0 million and net cash paid of $0.9 million, respectively.

CASH FLOW HEDGES

As of April 1, 2017 and December 31, 2016, there was an after-tax mark-to-market loss of $53.6 million and $46.3 million, respectively, reported for cash flow hedge effectiveness in Accumulated other comprehensive loss. An after-tax loss of $7.9 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 three months ended April 1, 2017 and April 2, 2016 (in millions): 

Year-to-Date 2017	Gain (Loss) 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	$	3.8		Interest expense	$	—	$	—
Foreign Exchange Contracts	$	(8.7	)	Cost of sales	$	4.5	$	—

Year-to-Date 2016	Gain (Loss) 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	$	(31.6	)	Interest expense	$	—	$	—
Foreign Exchange Contracts	$	(21.9	)	Cost of sales	$	18.6	$	—

 * Includes ineffective portion and amount excluded from effectiveness testing on derivatives.

For the three months ended April 1, 2017, the hedged items' impact to the Consolidated Statements of Operations and Comprehensive Income was a loss of $4.5 million in Cost of sales, which is offsetting the amounts shown above. For the three months ended April 2, 2016, the hedged items’ impact to the Consolidated Statements of Operations and Comprehensive Income was a loss of $18.6 million. There was no impact related to the interest rate contracts' hedged items for all periods presented.

For the three months ended April 1, 2017, an after-tax gain of $0.4 million was reclassified from Accumulated other comprehensive loss into earnings (inclusive of the gain/loss amortization on terminated derivative instruments) during the periods in which the underlying hedged transactions affected earnings. For the three months ended April 2, 2016, an after-tax gain of $9.3 million was reclassified from Accumulated other comprehensive loss into earnings (inclusive of the gain/loss amortization on terminated derivative 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-debt proportions. At April 1, 2017 and December 31, 2016, the Company had $400 million of forward starting swaps outstanding which were executed in 2014. The objective of the hedges is to offset the expected variability on future payments associated with the interest rate on debt instruments expected to be issued in 2018. Gains or losses on the swaps are recorded in Accumulated other comprehensive loss and will be subsequently reclassified into earnings as the future interest expense is recognized in earnings or as ineffectiveness occurs.

Foreign Currency Contracts

Forward Contracts: Through its global businesses, the Company enters into transactions and makes investments denominated in multiple currencies that give rise to foreign currency risk. The Company and its subsidiaries regularly purchase inventory from subsidiaries with functional currencies different than their own, which creates currency-related volatility in the Company’s results of operations. The Company utilizes forward contracts to hedge these forecasted purchases and sales of inventory. Gains and losses reclassified from Accumulated other comprehensive loss for the effective portion of the hedge are recorded in Cost of sales. The ineffective portion, if any, as well as gains and losses incurred after a hedge has been de-designated are not recorded in Accumulated other comprehensive loss, but are recorded directly to the Consolidated Statements of Operations and Comprehensive Income in Other, net. At April 1, 2017, the notional value of forward currency contracts outstanding was $587.6 million, maturing on various dates through 2018. At December 31, 2016, the notional value of forward currency contracts outstanding was $503.8 million, maturing on various dates through 2017.

Purchased Option Contracts: The Company and its subsidiaries have entered into various intercompany transactions whereby the notional values are denominated in currencies other than the functional currencies of the party executing the trade. In order to better match the cash flows of its intercompany obligations with cash flows from operations, the Company enters into purchased option contracts. Gains and losses reclassified from Accumulated other comprehensive loss for the effective portions of the hedge are recorded in Cost of sales. The ineffective portion, if any, as well as gains and losses incurred after a hedge has been de-designated are not recorded in Accumulated other comprehensive loss, but are recorded directly to the Consolidated Statements of Operations and Comprehensive Income in Other, net. At April 1, 2017, the notional value of purchased option contracts was $187.5 million maturing on various dates through 2017. As of December 31, 2016, the notional value of purchased option contracts was $252.0 million, maturing on various dates through 2017.

FAIR VALUE HEDGES

Interest Rate Risk: In an effort to optimize the mix of fixed versus floating rate debt in the Company’s capital structure, the Company enters into interest rate swaps. In previous years, the Company entered into interest rate swaps on the first five years of the Company's $400 million5.75% notes due 2053, interest rate swaps with notional values which equaled the Company's $400 million3.40% notes due 2021 and the Company's $150 million7.05% notes due 2028. These interest rate swaps effectively converted the Company's fixed rate debt to floating rate debt based on LIBOR, thereby hedging the fluctuation in fair value resulting from changes in interest rates. In the second quarter of 2016, the Company terminated all of the above interest rate swaps and there were no open contracts as of April 1, 2017 and December 31, 2016. The terminations resulted in cash receipts of $27.0 million. This gain was deferred and is being amortized to earnings over the remaining life of the notes.

Prior to termination of the Company’s interest rate swaps discussed above, the changes in fair value of the swaps and the offsetting changes in fair value related to the underlying notes were recognized in earnings. A summary of fair value adjustments relating to these swaps is as follows (in millions):

	Year-to-Date 2016
Income Statement Classification	Gain/(Loss) on Swaps*		Gain /(Loss) on Borrowings
Interest Expense	$	25.3	$	(25.2	)

*Includes ineffective portion and amount excluded from effectiveness testing.

Amortization of the gain/loss on terminated swaps of $0.8 million are reported as a reduction of interest expense for the three months ended April 1, 2017. In addition to the fair value adjustments in the table above, net swap accruals and amortization of the gain/loss on terminated swaps of $3.0 million are reported as a reduction of interest expense for the three months ended April 2, 2016. Interest expense on the underlying debt when the hedge was active was $11.8 million for the three months ended April 2, 2016.

NET INVESTMENT HEDGES

Foreign Exchange Contracts: The Company utilizes net investment hedges to offset the translation adjustment arising from re-measurement of its investment in the assets and liabilities of its foreign subsidiaries. The total after-tax amounts in Accumulated other comprehensive loss were gains of $78.4 million and $88.6 million at April 1, 2017 and December 31, 2016, respectively.

As of April 1, 2017, the Company had foreign exchange forward contracts maturing on various dates in 2017 with notional values totaling $732.0 million outstanding hedging a portion of its British pound sterling, Mexican peso, Swedish krona, Euro and Canadian dollar denominated net investments; a cross currency swap with a notional value totaling $250.0 million maturing in 2023 hedging a portion of its Japanese yen denominated net investment; and Euro denominated commercial paper with a notional value of $961.7 million maturing in 2017 hedging a portion of its Euro denominated net investments. As of December 31, 2016, the Company had foreign exchange contracts maturing on various dates in 2017 with notional values totaling $1.0 billion outstanding hedging a portion of its British pound sterling, Mexican peso, Swedish krona, Euro and Canadian dollar denominated net investments, and a cross currency swap with a notional value totaling $250.0 million maturing 2023 hedging a portion of its Japanese yen denominated net investment. For the three months ended April 1, 2017 and April 2, 2016, maturing foreign exchange contracts resulted in net cash received of $20.7 million and net cash paid of $2.4 million, respectively.

Gains and losses on net investment hedges remain in Accumulated other comprehensive income (loss) until disposal of the underlying assets. Gains and losses after a hedge has been de-designated are recorded directly to the Consolidated Statements of Operations and Comprehensive Income in Other, net.

The pre-tax gain or loss from fair value changes was as follows (in millions):

	Year-to-Date 2017
Income Statement Classification	Amount Recorded in  OCI (Loss) Gain			Effective Portion Recorded in  Income Statement		Ineffective Portion* Recorded in Income Statement
Other, net	$	(15.7	)	$	—	$	—

	Year-to-Date 2016
Income Statement Classification	Amount Recorded in  OCI Gain (Loss)		Effective Portion Recorded in  Income Statement		Ineffective Portion* Recorded in Income Statement
Other, net	$	2.6	$	—	$	—

*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 forward contracts outstanding at April 1, 2017 was $1.2 billion, maturing on various dates in 2017. The total notional amount of the forward contracts outstanding at December 31, 2016 was $1.5 billion, maturing on various dates in 2017. The income statement impacts related to derivatives not designated as hedging instruments for the three months ended April 1, 2017 and April 2, 2016 are as follows (in millions): 

Derivatives Not Designated as Hedging Instruments under ASC 815	Income Statement Classification	Year-to-Date 2017 Amount of Gain (Loss) Recorded in Income on Derivative
Foreign Exchange Contracts	Other, net	$	28.6

Derivatives Not Designated as Hedging Instruments under ASC 815	Income Statement Classification	Year-to-Date 2016 Amount of Gain (Loss) Recorded in Income on Derivative
Foreign Exchange Contracts	Other, net	$	(6.0	)

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Equity Arrangements

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Equity Arrangements

Equity Arrangements

In 2016, the Company repurchased 3,940,087 shares of common stock for approximately $374.1 million. Additionally, the Company net-share settled capped call options on its common stock and received 711,376 shares during 2016. Refer to Note J, Capital Stock, of the Company's Form 10-K for the year ended December 31, 2016.

In November 2016, the Company issued 3,504,165 shares of common stock to settle the purchase contracts of the 2013 Equity Units. See further discussion below.

In March 2015, the Company entered into a forward share purchase contract with a financial counterparty for 3,645,510 shares of common stock. The contract obligates the Company to pay $350.0 million, plus an additional amount related to the forward component of the contract. In November 2016, the Company amended the settlement date to April 2019, or earlier at the Company's option. The reduction of common shares outstanding was recorded at the inception of the forward share purchase contract in March 2015 and factored into the calculation of weighted-average shares outstanding at that time.

In October 2014, the Company entered into a forward share purchase contract on its common stock. The contract obligated the Company to pay $150.0 million, plus an additional amount related to the forward component of the contract, to the financial institution counterparty not later than October 2016, or earlier at the Company’s option, for the 1,603,822 shares purchased. The reduction of common shares outstanding was recorded at the inception of the forward share purchase contract in October 2014 and factored into the calculation of weighted-average shares outstanding at that time. In October 2016, the Company physically settled the contract, receiving 1,603,822 shares for a settlement amount of $147.4 million. Refer to Note J, Capital Stock, of the Company's Form 10-K for the year ended December 31, 2016, for additional disclosure related to the shares physically received.

As described more fully in Note H, Long-Term Debt and Financing Arrangements, of the Company’s Form 10-K for the year ended December 31, 2016, 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). 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. 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.

Equity Units and Capped Call Transactions

As described more fully in Note H, Long-Term Debt and Financing Arrangements, of the Company’s Form 10-K for the year ended December 31, 2016, in December 2013, the Company issued Equity Units comprised of $345.0 million of Notes and Equity Purchase Contracts. The Equity Purchase Contracts obligated the holders to purchase on November 17, 2016, for $100.00, between 1.0122 and 1.2399 shares of the Company’s common stock, which are equivalent to an initial settlement price of $98.80 and $80.65, respectively, per share of common stock.

In accordance with the Equity Purchase Contracts, on November 17, 2016, the Company issued 3,504,165 shares of common shares and received additional cash proceeds of $345.0 million. The conversion rate used in calculating the average of the daily volume-weighted-average price of common stock during the market value averaging period, was 1.0157 (equivalent to the minimum settlement rate and a conversion price of $98.45 per common share) on November 17, 2016.

Contemporaneously with the issuance of the Equity Units described above, the Company paid $9.7 million, or an average of $2.77 per option, to enter into capped call transactions on 3.5 million shares of common stock with a major financial institution. The purpose of the capped call transactions was to offset the potential economic dilution associated with the common shares issuable upon the settlement of the Equity Purchase Contracts. Refer to Note H, Long-Term Debt and Financing Arrangements, of the Company’s Form 10-K for the year ended December 31, 2016 for further discussion. The $9.7 million premium paid was recorded as a reduction to equity.

The capped call transactions cover, subject to customary anti-dilution adjustments, the number of shares equal to the number of shares issuable upon settlement of the Equity Purchase Contracts at the 1.0122 minimum settlement rate. In October and November 2016, the Company's capped call options on its common stock expired and were net-share settled resulting in the Company receiving 418,234 shares using an average reference price of $117.84 per common share.

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Accumulated Other Comprehensive Loss

3 Months Ended

Apr. 01, 2017

Accumulated Other Comprehensive Income [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

The following tables summarize the changes in the balances for each component of accumulated other comprehensive loss:

(Millions of Dollars)	Currency translation adjustment and other			Unrealized losses on cash flow hedges, net of tax			Unrealized gains (losses) on net investment hedges, net of tax			Pension (losses) gains, net of tax			Total
Balance - December 31, 2016	$	(1,586.3	)	$	(46.3	)	$	88.6		$	(377.2	)	$	(1,921.2	)
Other comprehensive income (loss) before reclassifications	114.6			(6.9		)	(10.2		)	(2.7		)	94.8
Adjustments related to sales of businesses	4.7			—			—			2.6			7.3
Reclassification adjustments to earnings	—			(0.4		)	—			11.8			11.4
Net other comprehensive income (loss)	119.3			(7.3		)	(10.2		)	11.7			113.5
Balance - April 1, 2017	$	(1,467.0	)	$	(53.6	)	$	78.4		$	(365.5	)	$	(1,807.7	)

(Millions of Dollars)	Currency translation adjustment and other			Unrealized losses on cash flow hedges, net of tax			Unrealized gains on net investment hedges, net of tax		Pension (losses) gains, net of tax			Total
Balance - January 2, 2016	$	(1,300.9	)	$	(52.1	)	$	11.8	$	(353.0	)	$	(1,694.2	)
Other comprehensive income (loss) before reclassifications	128.0			(43.8		)	1.6		0.5			86.3
Reclassification adjustments to earnings	—			(9.3		)	—		2.8			(6.5		)
Net other comprehensive income (loss)	128.0			(53.1		)	1.6		3.3			79.8
Balance - April 2, 2016	$	(1,172.9	)	$	(105.2	)	$	13.4	$	(349.7	)	$	(1,614.4	)

The reclassifications out of accumulated other comprehensive loss for the three months ended April 1, 2017 and April 2, 2016 were as follows (in millions):

Reclassifications from Accumulated other comprehensive loss to earnings	2017			2016			Affected line item in Consolidated Statements of Operations And Comprehensive Income
Realized gains on cash flow hedges	$	4.5		$	18.6		Cost of sales
Realized losses on cash flow hedges	(3.8		)	(3.8		)	Interest expense
Total before taxes	$	0.7		$	14.8
Tax effect	(0.3		)	(5.5		)	Income taxes on continuing operations
Realized gains on cash flow hedges, net of tax	$	0.4		$	9.3
Amortization of defined benefit pension items:
Actuarial losses and prior service costs / credits	$	(2.3	)	$	(2.6	)	Cost of sales
Actuarial losses and prior service costs / credits	(1.6		)	(1.7		)	Selling, general and administrative
Settlement loss	(12.5		)	—			Other, net
Total before taxes	$	(16.4	)	$	(4.3	)
Tax effect	4.6			1.5			Income taxes on continuing operations
Amortization of defined benefit pension items, net of tax	$	(11.8	)	$	(2.8	)

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Net Periodic Benefit Cost - Defined Benefit Plans

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Net Periodic Benefit Cost - Defined Benefit Plans

Net Periodic Benefit Cost — Defined Benefit Plans

Following are the components of net periodic pension (benefit) expense for the three months ended April 1, 2017 and April 2, 2016:

	Year-to-Date
	Pension Benefits												Other Benefits
	U.S. Plans						Non-U.S. Plans						All Plans
(Millions of Dollars)	2017			2016			2017			2016			2017			2016
Service cost	$	2.3		$	2.3		$	3.3		$	3.2		$	0.1		$	0.2
Interest cost	10.7			11.3			7.0			9.6			0.4			0.4
Expected return on plan assets	(16.1		)	(16.9		)	(11.0		)	(11.7		)	—			—
Amortization of prior service cost (credit)	0.3			1.3			(0.3		)	0.1			(0.3		)	(0.3		)
Amortization of net loss	1.9			1.7			2.3			1.5			—			—
Settlement / curtailment loss	—			—			12.5			0.1			—			—
Net periodic pension (benefit) expense	$	(0.9	)	$	(0.3	)	$	13.8		$	2.8		$	0.2		$	0.3

In March 2017, a pre-tax charge of approximately $12.5 million was recorded, reflecting losses previously reported in accumulated other comprehensive loss related to a non-U.S. pension plan for which the Company settled its obligation by purchasing an annuity and making lump sum payments to participants.

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Fair Value Measurements

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [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 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 values of these financial instruments through the use of matrix or model pricing, which utilizes observable inputs such as market interest and currency rates. When determining the fair values 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:

(Millions of Dollars)	Total		Level 1		Level 2		Level 3
April 1, 2017
Money market fund	$	4.3	$	4.3	$	—	$	—
Derivative assets	$	39.9	$	—	$	39.9	$	—
Derivative and non-derivative liabilities	$	1,031.5	$	—	$	1,031.5	$	—
Contingent consideration liability	$	84.0	$	—	$	—	$	84.0
December 31, 2016
Money market fund	$	4.3	$	4.3	$	—	$	—
Derivative assets	$	110.2	$	—	$	110.2	$	—
Derivative liabilities	$	97.6	$	—	$	97.6	$	—

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 April 1, 2017 and December 31, 2016:

	April 1, 2017				December 31, 2016
(Millions of Dollars)	Carrying Value		Fair Value		Carrying Value		Fair Value
Other investments	$	8.9	$	9.2	$	8.9	$	9.2
Derivative assets	$	39.9	$	39.9	$	110.2	$	110.2
Derivative and non-derivative liabilities	$	1,031.5	$	1,031.5	$	97.6	$	97.6
Long-term debt, including current portion	$	3,823.7	$	3,991.4	$	3,823.1	$	3,967.4

As discussed in Note F, Acquisitions, the Company recorded a contingent consideration liability in the first quarter of 2017 relating to the Craftsman brand acquisition representing the Company's obligation to make future payments to Sears Holdings of between 2.5% and 3.5% on new Stanley Black & Decker sales of Craftsman products through March 2032. The estimated fair value of this liability is $84.0 million at April 1, 2017. The fair value was estimated using Level 3 inputs, including the contractual royalty rates and future sales projections. There was no change in the fair value of the contingent consideration from the date of acquisition through April 1, 2017.

The Company had no other significant non-recurring fair value measurements, nor any financial assets measured using Level 3 inputs, during the first three months of 2017 or 2016.

The money market fund and other investments outlined in the tables above 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 the stated cash flows in each obligation discounted at 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 April 1, 2017 and December 31, 2016. The fair values of foreign currency and interest rate swap agreements, comprising the derivative assets and liabilities in the table above, are based on current settlement values.

As discussed in Note D, Financing Receivables, 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, Financial Instruments, for more details regarding financial instruments, Note R, Commitments and 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.

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Other Costs and Expenses

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Other Costs and Expenses

Other Costs and Expenses

Other, net is primarily comprised of intangible asset amortization expense, currency-related gains or losses, environmental remediation expense and acquisition-related transaction costs. In the first quarter of 2017, $40.0 million was recorded to Other, net for acquisition-related transaction and consulting costs primarily related to the Newell Tools and Craftsman brand acquisitions.

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Restructuring Charges

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Restructuring Charges

Restructuring Charges

A summary of the restructuring reserve activity from December 31, 2016 to April 1, 2017 is as follows:

(Millions of Dollars)	December 31, 2016		Net Additions		Usage			Currency		April 1, 2017
Severance and related costs	$	21.4	$	11.8	$	(9.0	)	$	0.3	$	24.5
Facility closures and asset impairments	14.2		4.0		(3.8		)	—		14.4
Total	$	35.6	$	15.8	$	(12.8	)	$	0.3	$	38.9

For the three months ended April 1, 2017, the Company recognized net restructuring charges of $15.8 million. This amount reflects $11.8 million of net severance charges associated with the reduction of approximately 180 employees. The Company also had $4.0 million of facility closure and other restructuring costs.

The majority of the $38.9 million of reserves remaining as of April 1, 2017 is expected to be utilized within the next 12 months.

Segments: The $16 million of net restructuring costs for the three months ended April 1, 2017 includes: $6 million pertaining to the Tools & Storage segment; $7 million pertaining to the Security segment; and $3 million pertaining to the Industrial segment.

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Income Taxes

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Income Taxes

Income Taxes

The Company recognized income tax expense of $79.5 million for the three months ended April 1, 2017, resulting in an effective tax rate of 16.8%. The effective tax rate differs from the U.S. statutory tax rate primarily due to a portion of the Company’s earnings being realized in lower-taxed foreign jurisdictions and the utilization of U.S. tax attributes during the first quarter of 2017 due to the divestiture of the mechanical security businesses. Non-deductible transaction costs and other acquisition-related restructuring items partially offset the net tax benefits mentioned above for the three months ended April 1, 2017. Excluding the tax impact of the divestitures and acquisition-related charges in the first quarter of 2017, the effective rate is 25.0%.

The Company recognized income tax expense of $65.5 million for the three months ended April 2, 2016, resulting in an effective tax rate of 25.8%. The effective tax rate differed from the U.S. statutory tax rate primarily due to a portion of the Company’s earnings being realized in lower-taxed foreign jurisdictions and the finalization of audit settlements.

The Company is subject to the examination of its income tax returns by the Internal Revenue Service and other taxing authorities both domestically and internationally. The final outcome of the future tax consequences of these examinations and legal proceedings, as well as the outcome of competent authority proceedings, changes and interpretation in regulatory tax laws, or expiration of statute of limitations could impact the Company’s financial statements. Accordingly, the Company has tax reserves recorded for which it is reasonably possible that the amount of the unrecognized tax benefit will increase or decrease which could have a material effect on the financial results for any particular fiscal quarter or year. However, based on the uncertainties associated with litigation and the status of examinations, including the protocols of finalizing audits by the relevant tax authorities which could include formal legal proceedings, it is not possible to estimate the impact of any such change.

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Business Segments

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Business Segments

Business Segments

The Company's operations are classified into three reportable business segments, which also represent its operating segments: Tools & Storage, Security and Industrial.

The Tools & Storage segment is comprised of the Power Tools & Equipment ("PTE") and Hand Tools, Accessories & Storage ("HTAS") businesses. The PTE business includes both professional and consumer products. Professional products include professional grade corded and cordless electric power tools and equipment including drills, impact wrenches and drivers, grinders, saws, routers and sanders, as well as pneumatic tools and fasteners including nail guns, nails, staplers and staples, concrete and masonry anchors. Consumer products include corded and cordless electric power tools sold primarily under the BLACK+DECKER brand, lawn and garden products, including hedge trimmers, string trimmers, lawn mowers, edgers and related accessories, and home products such as hand-held vacuums, paint tools and cleaning appliances. The HTAS business sells measuring, leveling and layout tools, planes, hammers, demolition tools, clamps, vises, knives, saws, chisels and industrial and automotive tools. Power tool accessories include drill bits, router bits, abrasives and saw blades. 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 sells healthcare solutions, which markets asset tracking, infant protection, pediatric protection, patient protection, wander management, fall management, and emergency call products. The MAS business primarily sells automatic doors.

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 charges, gain on sales of businesses, pension settlement and income taxes. Refer to Note O, Restructuring Charges, for the amount of net restructuring charges by segment. Corporate overhead is comprised of world headquarters facility expense, cost for the executive management team and cost for certain centralized functions that benefit the entire Company but are not directly attributable to the businesses, such as legal and corporate finance functions. Transactions between segments are not material. Segment assets primarily include cash, accounts receivable, inventory, other current assets, property, plant and equipment, intangible assets and other miscellaneous assets.

	Year-to-Date
(Millions of Dollars)	2017			2016
NET SALES
Tools & Storage	$	1,854.5		$	1,706.9
Security	478.5			504.2
Industrial	472.6			461.0
Total	$	2,805.6		$	2,672.1
SEGMENT PROFIT
Tools & Storage	$	287.3		$	262.0
Security	50.9			60.2
Industrial	86.3			76.0
Segment profit	424.5			398.2
Corporate overhead	(43.9		)	(48.4		)
Other, net	(106.2		)	(46.2		)
Gain on sales of businesses	269.2			—
Pension settlement	(12.5		)	—
Restructuring charges	(15.8		)	(8.0		)
Interest expense	(51.3		)	(47.3		)
Interest income	8.6			5.8
Earnings before income taxes	$	472.6		$	254.1

The following table is a summary of total assets by segment as of April 1, 2017 and December 31, 2016:

(Millions of Dollars)	April 1, 2017			December 31, 2016
Tools & Storage	$	12,507.6		$	8,512.4
Security	3,152.8			3,139.0
Industrial	3,434.8			3,359.0
	19,095.2			15,010.4
Assets held for sale	—			523.4
Corporate assets	(433.1		)	101.1
Consolidated	$	18,662.1		$	15,634.9

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.

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Commitments and Contingencies

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Commitments and Contingencies

Commitments and 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 second phase of the trial addressing the remedy and certain other issues commenced on September 26, 2016 and closing arguments were held on April 4, 2017. The Company is waiting for a decision to be issued by the Court. 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 April 1, 2017.

In the normal course of business, the Company is involved in various lawsuits and claims. In addition, the Company is a party to a number of proceedings before federal and state regulatory agencies relating to environmental remediation. Also, the Company, along with many other companies, has been named as a PRP in a number of administrative proceedings for the remediation of various waste sites, including 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 April 1, 2017 and December 31, 2016 the Company had reserves of $176.1 million and $160.9 million, respectively, for remediation activities associated with Company-owned properties, as well as for Superfund sites, for losses that are probable and estimable. Of the 2017 amount, $19.8 million is classified as current and $156.3 million as long-term which is expected to be paid over the estimated remediation period. As of April 1, 2017, the Company has recorded $13.2 million in other assets related to funding received by the EPA and placed in a trust in accordance with the final settlement with the EPA, embodied in a Consent Decree approved by the United States District Court for the Central District of California on July 3, 2013. Per the Consent Decree, Emhart Industries, Inc. (a dissolved, former indirectly wholly-owned subsidiary of The Black & Decker Corporation) (“Emhart”) has agreed to be responsible for an interim remedy at a site located in Rialto, California and formerly operated by West Coast Loading Corporation (“WCLC”), a defunct company for which Emhart was alleged to be liable as a successor. The remedy will be funded by (i) the amounts received from the EPA as gathered from multiple parties, and, to the extent necessary, (ii) Emhart's affiliate.  The interim remedy requires the construction of a water treatment facility and the filtering of ground water at or around the site for a period of approximately 30 years or more. Accordingly, as of April 1, 2017, the Company's cash obligation associated with the aforementioned remediation activities including WCLC is $162.9 million. The range of environmental remediation costs that is reasonably possible is $143.5 million to $282.9 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, on June 18, 2012,the CPG members voluntarily entered into an AOC with the EPA for remediation actions focused solely at mile 10.9 of the River. The Company’s estimated costs related to the RI/FS and focused remediation action at mile 10.9, based on an interim allocation, are included in its environmental reserves. On April 11, 2014, the EPA issued a Focused Feasibility Study (“FFS”) and proposed plan which addressed various early action remediation alternatives for the lower 8.3 miles of the River. The EPA received public comment on the FFS and proposed plan (including comments from the CPG and other entities asserting that the FFS and proposed plan do not comply with CERCLA) which public comment period ended on August 20, 2014. The CPG submitted to the EPA a draft RI report in February 2015 and draft FS report in April 2015 for the entire lower seventeen miles of the River. On March 4, 2016, the EPA issued a ROD selecting the remedy for the lower 8.3 miles of the River. The cleanup plan adopted by the EPA is now considered a final action for the lower 8.3 miles of the River and will include the removal of 3.5 million cubic yards of sediment, placement of a cap over the entire lower 8.3 miles of the River, and, according to the EPA, will cost approximately $1.4 billion and take 6 years to implement after the remedial design is completed. (The EPA estimates that the remedial design will take four years to complete.) The Company and 105 other parties received a letter dated March 31, 2016 from the EPA notifying such parties of potential liability for the costs of the cleanup of the lower 8.3 miles of the River and a letter dated March 30, 2017 stating that the EPA had offered 20 of the parties (not including the Company) an early cash out settlement. The EPA stated that these 20 parties did not discharge the primary contaminants of concern, but otherwise did not explain the process used and the criteria considered in determining which parties were eligible for early cash out settlement. The EPA stated that other parties who did not discharge the primary contaminants of concern may also be eligible for cash out settlement, but expects those parties' allocation to be determined through a complex settlement analysis using a third party allocator. The Company asserts that it did not discharge the primary contaminants of concern and should be eligible for a cash out settlement. There has been no determination as to how the RI/FS will be modified in light of the EPA’s decision to implement a final action for the lower 8.3 miles of the River. At this time, the Company cannot reasonably estimate its liability related to the remediation efforts, excluding the RI/FS and remediation actions at mile 10.9, as the RI/FS is ongoing, the ultimate remedial approach and associated cost for the upper portion of the River has not yet been determined, and the parties that will participate in funding the remediation and their respective allocations are not yet known. On September 30, 2016, Occidental Chemical Corporation entered into an agreement with EPA to perform the remedial design for the cleanup plan for the lower 8.3 miles of the river.

Per the terms of a Final Order and Judgment approved by the United States District Court for the Middle District of Florida on January 22, 1991, Emhart is responsible for a percentage of remedial costs arising out of the Kerr McGee Chemical Corporation Superfund Site located in Jacksonville, Florida. On March 15, 2017, the Company received formal notification from the EPA that the EPA had issued a ROD selecting the preferred alternative identified in the Proposed Cleanup Plan. The cleanup adopted by the EPA is currently estimated to cost approximately $68.7 million. Accordingly, the Company increased its reserve by $17 million which is recorded in Other, net in the Consolidated Statements of Operations and Comprehensive Income for the three months ended April 1, 2017.

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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Guarantees

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Guarantees

Guarantees

The Company’s financial guarantees at April 1, 2017 are as follows:

(Millions of Dollars)	Term	Maximum Potential Payment		Carrying Amount of Liability
Guarantees on the residual values of leased properties	One to five years	$	58.7	$	—
Standby letters of credit	Up to three years	71.2		—
Commercial customer financing arrangements	Up to six years	70.1		23.8
Total		$	200.0	$	23.8

The Company has guaranteed a portion of the residual values of leased properties arising from its synthetic lease program. The lease guarantees are for an amount up to $58.7 million while the fair value of the underlying buildings is estimated at $67.2 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 guarantees.

The Company has issued $71.2 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 trucks 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 $70.1 million and the $23.8 million carrying value of the guarantees issued is recorded in debt and other liabilities as appropriate in the Condensed 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.

The changes in the carrying amount of product and service warranties for the three months ended April 1, 2017 and April 2, 2016 are as follows:

(Millions of Dollars)	2017			2016
Balance beginning of period	$	103.4		$	105.4
Warranties and guarantees issued	22.7			20.4
Warranty payments and currency	(24.6		)	(20.0		)
Balance end of period	$	101.5		$	105.8

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Divestitures

3 Months Ended

Apr. 01, 2017

Discontinued Operations and Disposal Groups [Abstract]

Divestitures

Divestitures

On January 3, 2017, the Company sold a small business within the Tools & Storage segment for $25.6 million. On February 22, 2017, the Company sold the majority of its mechanical security businesses within the Security segment to Dormakaba, which includes the commercial hardware brands of Best Access, phi Precision and GMT, for net proceeds of $719.2 million. As a result of these sales, the Company recognized an after-tax gain of $238.1 million in the first quarter of 2017, primarily related to the sale of the mechanical security businesses. Neither of these disposals qualify as discontinued operations in accordance with 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 and therefore, are included in the Company's continuing operations for all periods presented through the dates of sale in 2017. Pre-tax income for these businesses totaled $0.6 million and $6.5 million for the three months ended April 1, 2017 and April 2, 2016, respectively.

The carrying amounts of the assets and liabilities that were expected to be included in these sales were classified as held for sale as of December 31, 2016, as follows:

(Millions of Dollars)	December 31, 2016
Accounts and notes receivable, net	$	35.3
Inventories, net	33.2
Property, plant and equipment, net	52.3
Goodwill and other intangibles, net	399.8
Other assets	2.8
Total assets	$	523.4
Accounts payable and accrued expenses	$	38.0
Other liabilities	15.5
Total liabilities	$	53.5

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Earnings Per Share (Tables)

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Reconciliation of Net Earnings Attributable to Common Shareowners 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 three months ended April 1, 2017 and April 2, 2016:

	Year-to-Date
	2017		2016
Numerator (in millions):
Net Earnings Attributable to Common Shareowners	$	393.1	$	189.4
Denominator (in thousands):
Basic earnings per share — weighted-average shares	149,208		145,870
Dilutive effect of stock contracts and awards	2,318		1,749
Diluted earnings per share — weighted-average shares	151,526		147,619
Earnings per share of common stock:
Basic	$	2.63	$	1.30
Diluted	$	2.59	$	1.28

Weighted-Average Stock Options and Warrants Outstanding Not included in Computation of Diluted Shares Outstanding

The following weighted-average stock options were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive (in thousands):

	Year-to-Date
	2017	2016
Number of stock options	1,163	1,590

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Inventories (Tables)

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Components of Inventories

The components of Inventories, net at April 1, 2017 and December 31, 2016 are as follows:

(Millions of Dollars)	April 1, 2017		December 31, 2016
Finished products	$	1,455.7	$	1,044.2
Work in process	158.4		133.3
Raw materials	362.6		300.5
Total	$	1,976.7	$	1,478.0

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Goodwill (Tables)

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Changes in Carrying Amount of Goodwill by Segment

Changes in the carrying amount of goodwill by segment are as follows:

(Millions of Dollars)	Tools & Storage		Security		Industrial		Total
Balance December 31, 2016	$	3,247.8	$	2,007.0	$	1,439.2	$	6,694.0
Acquisition adjustments	1,585.4		15.7		—		1,601.1
Foreign currency translation and other	54.1		9.8		5.2		69.1
Balance April 1, 2017	$	4,887.3	$	2,032.5	$	1,444.4	$	8,364.2

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Long-Term Debt and Financing Arrangements (Tables)

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Long-Term Debt and Financing Arrangements

Long-term debt and financing arrangements at April 1, 2017 and December 31, 2016 are as follows:

		April 1, 2017																December 31, 2016
(Millions of Dollars)	Interest Rate	Original Notional		Unamortized Discount			Unamortized Gain/(Loss) Terminated Swaps (1)			Purchase Accounting FV Adjustment		Deferred Financing Fees			Carrying Value			Carrying Value
Notes payable due 2018	2.45%	$	632.5	$	—		$	—		$	—	$	(2.9	)	$	629.6		$	629.2
Notes payable due 2018	1.62%	345.0		—			—			—		(1.6		)	343.4			343.1
Notes payable due 2021	3.40%	400.0		(0.2		)	16.2			—		(1.6		)	414.4			415.2
Notes payable due 2022	2.90%	754.3		(0.4		)	—			—		(3.5		)	750.4			750.3
Notes payable due 2028	7.05%	150.0		—			12.3			11.9		—			174.2			174.7
Notes payable due 2040	5.20%	400.0		(0.2		)	(34.5		)	—		(3.2		)	362.1			361.7
Notes payable due 2052 (junior subordinated)	5.75%	750.0		—			—			—		(19.4		)	730.6			730.4
Notes payable due 2053 (junior subordinated)	5.75%	400.0		—			4.8			—		(8.2		)	396.6			396.5
Other, payable in varying amounts through 2022	0.00% - 2.90%	22.4		—			—			—		—			22.4			22.0
Total long-term debt, including current maturities		$	3,854.2	$	(0.8	)	$	(1.2	)	$	11.9	$	(40.4	)	$	3,823.7		$	3,823.1
Less: Current maturities of long-term debt															(8.1		)	(7.8		)
Long-term debt															$	3,815.6		$	3,815.3

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Financial Instruments (Tables)

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Summary of Fair Value of Derivatives

A summary of the fair values of the Company’s financial instruments recorded in the Condensed Consolidated Balance Sheets at April 1, 2017 and December 31, 2016 follows: 

(Millions of Dollars)	Balance Sheet Classification	April 1, 2017		December 31, 2016		Balance Sheet Classification	April 1, 2017		December 31, 2016
Derivatives designated as hedging instruments:
Interest Rate Contracts Cash Flow	LT other assets	$	—	$	—	LT other liabilities	$	43.4	$	47.3
Foreign Exchange Contracts Cash Flow	Other current assets	22.4		37.6		Accrued expenses	1.9		1.6
	LT other assets	0.7		—		LT other liabilities	—		—
Net Investment Hedge	Other current assets	6.2		44.1		Accrued expenses	10.7		1.8
	LT other assets	—		—		LT other liabilities	10.6		0.5
Non-derivative designated as hedging instrument:
Net Investment Hedge		—		—		Short term borrowings	961.7		—
Total Designated		$	29.3	$	81.7		$	1,028.3	$	51.2
Derivatives not designated as hedging instruments:
Foreign Exchange Contracts	Other current assets	$	10.6	$	28.5	Accrued expenses	$	3.2	$	46.4
Total Undesignated		$	10.6	$	28.5		$	3.2	$	46.4

Detail Pre-tax Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) 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 three months ended April 1, 2017 and April 2, 2016 (in millions): 

Year-to-Date 2017	Gain (Loss) 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	$	3.8		Interest expense	$	—	$	—
Foreign Exchange Contracts	$	(8.7	)	Cost of sales	$	4.5	$	—

Year-to-Date 2016	Gain (Loss) 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	$	(31.6	)	Interest expense	$	—	$	—
Foreign Exchange Contracts	$	(21.9	)	Cost of sales	$	18.6	$	—

 * Includes ineffective portion and amount excluded from effectiveness testing on derivatives.

Fair Value Adjustments Relating to Swaps

A summary of fair value adjustments relating to these swaps is as follows (in millions):

	Year-to-Date 2016
Income Statement Classification	Gain/(Loss) on Swaps*		Gain /(Loss) on Borrowings
Interest Expense	$	25.3	$	(25.2	)

Details of Foreign Exchange Contracts Pre-Tax Amounts

The pre-tax gain or loss from fair value changes was as follows (in millions):

	Year-to-Date 2017
Income Statement Classification	Amount Recorded in  OCI (Loss) Gain			Effective Portion Recorded in  Income Statement		Ineffective Portion* Recorded in Income Statement
Other, net	$	(15.7	)	$	—	$	—

	Year-to-Date 2016
Income Statement Classification	Amount Recorded in  OCI Gain (Loss)		Effective Portion Recorded in  Income Statement		Ineffective Portion* Recorded in Income Statement
Other, net	$	2.6	$	—	$	—

Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments

The income statement impacts related to derivatives not designated as hedging instruments for the three months ended April 1, 2017 and April 2, 2016 are as follows (in millions): 

Derivatives Not Designated as Hedging Instruments under ASC 815	Income Statement Classification	Year-to-Date 2017 Amount of Gain (Loss) Recorded in Income on Derivative
Foreign Exchange Contracts	Other, net	$	28.6

Derivatives Not Designated as Hedging Instruments under ASC 815	Income Statement Classification	Year-to-Date 2016 Amount of Gain (Loss) Recorded in Income on Derivative
Foreign Exchange Contracts	Other, net	$	(6.0	)

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Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Apr. 01, 2017

Apr. 02, 2016

Accumulated Other Comprehensive Income [Abstract]

Changes to the components of accumulated other comprehensive income (loss)

The following tables summarize the changes in the balances for each component of accumulated other comprehensive loss:

(Millions of Dollars)	Currency translation adjustment and other			Unrealized losses on cash flow hedges, net of tax			Unrealized gains (losses) on net investment hedges, net of tax			Pension (losses) gains, net of tax			Total
Balance - December 31, 2016	$	(1,586.3	)	$	(46.3	)	$	88.6		$	(377.2	)	$	(1,921.2	)
Other comprehensive income (loss) before reclassifications	114.6			(6.9		)	(10.2		)	(2.7		)	94.8
Adjustments related to sales of businesses	4.7			—			—			2.6			7.3
Reclassification adjustments to earnings	—			(0.4		)	—			11.8			11.4
Net other comprehensive income (loss)	119.3			(7.3		)	(10.2		)	11.7			113.5
Balance - April 1, 2017	$	(1,467.0	)	$	(53.6	)	$	78.4		$	(365.5	)	$	(1,807.7	)

(Millions of Dollars)	Currency translation adjustment and other			Unrealized losses on cash flow hedges, net of tax			Unrealized gains on net investment hedges, net of tax		Pension (losses) gains, net of tax			Total
Balance - January 2, 2016	$	(1,300.9	)	$	(52.1	)	$	11.8	$	(353.0	)	$	(1,694.2	)
Other comprehensive income (loss) before reclassifications	128.0			(43.8		)	1.6		0.5			86.3
Reclassification adjustments to earnings	—			(9.3		)	—		2.8			(6.5		)
Net other comprehensive income (loss)	128.0			(53.1		)	1.6		3.3			79.8
Balance - April 2, 2016	$	(1,172.9	)	$	(105.2	)	$	13.4	$	(349.7	)	$	(1,614.4	)

Reclassifications out of accumulated other comprehensive income (loss)

The reclassifications out of accumulated other comprehensive loss for the three months ended April 1, 2017 and April 2, 2016 were as follows (in millions):

Reclassifications from Accumulated other comprehensive loss to earnings	2017			2016			Affected line item in Consolidated Statements of Operations And Comprehensive Income
Realized gains on cash flow hedges	$	4.5		$	18.6		Cost of sales
Realized losses on cash flow hedges	(3.8		)	(3.8		)	Interest expense
Total before taxes	$	0.7		$	14.8
Tax effect	(0.3		)	(5.5		)	Income taxes on continuing operations
Realized gains on cash flow hedges, net of tax	$	0.4		$	9.3
Amortization of defined benefit pension items:
Actuarial losses and prior service costs / credits	$	(2.3	)	$	(2.6	)	Cost of sales
Actuarial losses and prior service costs / credits	(1.6		)	(1.7		)	Selling, general and administrative
Settlement loss	(12.5		)	—			Other, net
Total before taxes	$	(16.4	)	$	(4.3	)
Tax effect	4.6			1.5			Income taxes on continuing operations
Amortization of defined benefit pension items, net of tax	$	(11.8	)	$	(2.8	)

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Net Periodic Benefit Cost - Defined Benefit Plans (Tables)

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Components of Net Periodic Benefit Cost

Following are the components of net periodic pension (benefit) expense for the three months ended April 1, 2017 and April 2, 2016:

	Year-to-Date
	Pension Benefits												Other Benefits
	U.S. Plans						Non-U.S. Plans						All Plans
(Millions of Dollars)	2017			2016			2017			2016			2017			2016
Service cost	$	2.3		$	2.3		$	3.3		$	3.2		$	0.1		$	0.2
Interest cost	10.7			11.3			7.0			9.6			0.4			0.4
Expected return on plan assets	(16.1		)	(16.9		)	(11.0		)	(11.7		)	—			—
Amortization of prior service cost (credit)	0.3			1.3			(0.3		)	0.1			(0.3		)	(0.3		)
Amortization of net loss	1.9			1.7			2.3			1.5			—			—
Settlement / curtailment loss	—			—			12.5			0.1			—			—
Net periodic pension (benefit) expense	$	(0.9	)	$	(0.3	)	$	13.8		$	2.8		$	0.2		$	0.3

In March 2017, a pre-tax charge of approximately $12.5 million was recorded, reflecting losses previously reported in accumulated other comprehensive loss related to a non-U.S. pension plan for which the Company settled its obligation by purchasing an annuity and making lump sum payments to participants.

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Fair Value Measurements (Tables)

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [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:

(Millions of Dollars)	Total		Level 1		Level 2		Level 3
April 1, 2017
Money market fund	$	4.3	$	4.3	$	—	$	—
Derivative assets	$	39.9	$	—	$	39.9	$	—
Derivative and non-derivative liabilities	$	1,031.5	$	—	$	1,031.5	$	—
Contingent consideration liability	$	84.0	$	—	$	—	$	84.0
December 31, 2016
Money market fund	$	4.3	$	4.3	$	—	$	—
Derivative assets	$	110.2	$	—	$	110.2	$	—
Derivative liabilities	$	97.6	$	—	$	97.6	$	—

Summary of Financial Instruments Carrying and Fair Values

	April 1, 2017				December 31, 2016
(Millions of Dollars)	Carrying Value		Fair Value		Carrying Value		Fair Value
Other investments	$	8.9	$	9.2	$	8.9	$	9.2
Derivative assets	$	39.9	$	39.9	$	110.2	$	110.2
Derivative and non-derivative liabilities	$	1,031.5	$	1,031.5	$	97.6	$	97.6
Long-term debt, including current portion	$	3,823.7	$	3,991.4	$	3,823.1	$	3,967.4

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Restructuring Charges (Tables)

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Summary of Restructuring Reserve Activity

A summary of the restructuring reserve activity from December 31, 2016 to April 1, 2017 is as follows:

(Millions of Dollars)	December 31, 2016		Net Additions		Usage			Currency		April 1, 2017
Severance and related costs	$	21.4	$	11.8	$	(9.0	)	$	0.3	$	24.5
Facility closures and asset impairments	14.2		4.0		(3.8		)	—		14.4
Total	$	35.6	$	15.8	$	(12.8	)	$	0.3	$	38.9

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Business Segments (Tables)

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Business Segments

	Year-to-Date
(Millions of Dollars)	2017			2016
NET SALES
Tools & Storage	$	1,854.5		$	1,706.9
Security	478.5			504.2
Industrial	472.6			461.0
Total	$	2,805.6		$	2,672.1
SEGMENT PROFIT
Tools & Storage	$	287.3		$	262.0
Security	50.9			60.2
Industrial	86.3			76.0
Segment profit	424.5			398.2
Corporate overhead	(43.9		)	(48.4		)
Other, net	(106.2		)	(46.2		)
Gain on sales of businesses	269.2			—
Pension settlement	(12.5		)	—
Restructuring charges	(15.8		)	(8.0		)
Interest expense	(51.3		)	(47.3		)
Interest income	8.6			5.8
Earnings before income taxes	$	472.6		$	254.1

Summary of Total Assets by Segment

he following table is a summary of total assets by segment as of April 1, 2017 and December 31, 2016:

(Millions of Dollars)	April 1, 2017			December 31, 2016
Tools & Storage	$	12,507.6		$	8,512.4
Security	3,152.8			3,139.0
Industrial	3,434.8			3,359.0
	19,095.2			15,010.4
Assets held for sale	—			523.4
Corporate assets	(433.1		)	101.1
Consolidated	$	18,662.1		$	15,634.9

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Guarantees (Tables)

3 Months Ended

Apr. 01, 2017

Notes To Financial Statements [Abstract]

Financial Guarantees

The Company’s financial guarantees at April 1, 2017 are as follows:

(Millions of Dollars)	Term	Maximum Potential Payment		Carrying Amount of Liability
Guarantees on the residual values of leased properties	One to five years	$	58.7	$	—
Standby letters of credit	Up to three years	71.2		—
Commercial customer financing arrangements	Up to six years	70.1		23.8
Total		$	200.0	$	23.8

Changes in Carrying Amount of Product and Service Warranties

The changes in the carrying amount of product and service warranties for the three months ended April 1, 2017 and April 2, 2016 are as follows:

(Millions of Dollars)	2017			2016
Balance beginning of period	$	103.4		$	105.4
Warranties and guarantees issued	22.7			20.4
Warranty payments and currency	(24.6		)	(20.0		)
Balance end of period	$	101.5		$	105.8

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Divestitures (Tables)

3 Months Ended

Apr. 01, 2017

Discontinued Operations and Disposal Groups [Abstract]

Operating Results, Assets and Liabilities of Divested Businesses

The carrying amounts of the assets and liabilities that were expected to be included in these sales were classified as held for sale as of December 31, 2016, as follows:

(Millions of Dollars)	December 31, 2016
Accounts and notes receivable, net	$	35.3
Inventories, net	33.2
Property, plant and equipment, net	52.3
Goodwill and other intangibles, net	399.8
Other assets	2.8
Total assets	$	523.4
Accounts payable and accrued expenses	$	38.0
Other liabilities	15.5
Total liabilities	$	53.5

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Basis of Presentation - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Disposal Group, Including Discontinued Operation, Consideration	$ 719.0
Document Period End Date	Apr. 01, 2017
Net Sales	$ 2,805.6	$ 2,672.1

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Reconciliation of Net Earnings Attributable to Common Shareowners 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
	Apr. 01, 2017	Apr. 02, 2016
Numerator
Net Earnings Attributable to Common Shareowners	$ 393.1	$ 189.4
Denominator:
Basic earnings per share - weighted-average shares	149,208	145,870
Weighted Average Number Diluted Shares Outstanding Adjustment	2,318	1,749
Diluted earnings per share - weighted-average shares	151,526	147,619
Basic earnings per share of common stock:
Total basic earnings per share of common stock	$ (2.63)	$ (1.30)
Diluted earnings per share of common stock:
Total dilutive earnings per share of common stock	$ (2.59)	$ (1.28)

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Weighted-Average Stock Options and Warrants Outstanding Not included in Computation of Diluted Shares Outstanding (Detail) - USD ($)		1 Months Ended	3 Months Ended		12 Months Ended
	Nov. 17, 2016	Nov. 30, 2016	Apr. 01, 2017	Apr. 02, 2016	Dec. 31, 2016	Dec. 28, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Long-term Debt			$ 3,823,700,000		$ 3,823,100,000
Preferred Stock Par Value Per Share			$ 2.50		$ 2.50
Debt instrument, face amount			$ 3,854,200,000
Payments for Repurchase of Common Stock			$ 13,500,000	$ 361,400,000	$ 374,100,000
Common Stock, Shares, Issued	3,504,165		176,902,738		176,902,738
Equity Units Conversion Rate Number Of Common Stock Shares		3,504,165			418,234
Notes 2 Point 25 Percent due 2018 [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Long-term Debt	$ 0		$ 343,400,000		$ 343,100,000
Preferred Stock Par Value Per Share					$ 100.00
Debt instrument, face amount			$ 345,000,000
Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Equity Units Conversion Rate Number Of Common Stock Shares	1.0157
Common Stock [Member] | Minimum [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Payments for Repurchase of Common Stock						$ 98.80
Equity Units Conversion Rate Number Of Common Stock Shares					1.0122	1.0122
Common Stock [Member] | Maximum [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Payments for Repurchase of Common Stock						$ 80.65
Equity Units Conversion Rate Number Of Common Stock Shares					1.2399	1.2399

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Earnings Per Share - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended		3 Months Ended		12 Months Ended
	Nov. 17, 2016	Nov. 30, 2016	Dec. 31, 2013	Apr. 01, 2017	Apr. 02, 2016	Dec. 31, 2016	Dec. 28, 2013
Stockholders Equity Note [Line Items]
Mandatory Convertible Equity Units			$ 345.0
Document Period End Date				Apr. 01, 2017
Long-term Debt				$ 345.0
Common Stock, Par or Stated Value Per Share				$ 2.50		$ 2.50
Equity Units Conversion Rate Number Of Common Stock Shares		3,504,165				418,234
Common Stock, Shares, Issued	3,504,165			176,902,738		176,902,738
Stock Options [Member]
Stockholders Equity Note [Line Items]
Antidilutive securities excluded from the computation of EPS				1,163,000	1,590,000
Notes 2 Point 25 Percent due 2018 [Member]
Stockholders Equity Note [Line Items]
Common Stock, Par or Stated Value Per Share						$ 100.00
Convertible Notes Payable Four Point Two Five Percent Due Twenty Eighteen [Member]
Stockholders Equity Note [Line Items]
Convertible Preferred Stock Shares Issuable Upon Conversion	3,504,165
Common Stock [Member]
Stockholders Equity Note [Line Items]
Equity Units Conversion Rate Number Of Common Stock Shares	1.0157
Common Stock [Member] | Minimum [Member]
Stockholders Equity Note [Line Items]
Equity Units Conversion Rate Number Of Common Stock Shares						1.0122	1.0122
Common Stock [Member] | Maximum [Member]
Stockholders Equity Note [Line Items]
Equity Units Conversion Rate Number Of Common Stock Shares						1.2399	1.2399

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Financing Receivables - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Apr. 01, 2017	Apr. 02, 2016	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Document Period End Date	Apr. 01, 2017
Number of Days Before Considered Past Due or Delinquent	90 days
Net receivables derecognized	$ 65.3		$ 100.5
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale, Gain (Loss) on Sale	1.4	$ 1.0
Proceeds from transfers of receivables to the purchaser	337.0	277.6
Payment to the Purchaser	372.4	294.2
Sale of receivables, deferred purchase price	166.8		83.2
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together, Net Credit Losses During Period	0.0	0.0
Cash inflows related to the deferred purchase price receivable	129.9	90.8
Gross receivables sold
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables sold	453.8	384.7
Net receivables sold
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables sold	388.9	341.3
Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cash investment purchaser allowed to have in transferors receivables	100.0
Payment to the Purchaser, servicing fees	0.2	$ 0.2
Other assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Long-term trade financing receivables	$ 183.6		$ 180.9

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Components of Inventories (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Dec. 31, 2016
Schedule of Inventory [Line Items]
Document Period End Date	Apr. 01, 2017
Finished products	$ 1,455.7	$ 1,044.2
Work in process	158.4	133.3
Raw materials	362.6	300.5
Total	1,976.7	$ 1,478.0
Craftsman [Member]
Schedule of Inventory [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory	$ 18.0

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Inventories - Additional Informeation (Details) $ in Millions	3 Months Ended
	Apr. 01, 2017 USD ($)
Schedule of Inventory [Line Items]
Document Period End Date	Apr. 01, 2017
Newell Tools [Member] | Inventories [Member]
Schedule of Inventory [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	$ 203.0
Craftsman [Member]
Schedule of Inventory [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory	$ 18.0

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Acquisitions - Additional Information (Detail)	3 Months Ended		12 Months Ended
	Apr. 01, 2017 USD ($) Acquisition	Apr. 02, 2016 USD ($)	Dec. 31, 2016 USD ($) Acquisition	Mar. 01, 2032	Feb. 01, 2032 USD ($)	Feb. 01, 2020 USD ($)
Business Acquisition [Line Items]
Business Acquisition, Goodwill, Expected Tax Deductible Amount	$ 14,900,000
Document Period End Date	Apr. 01, 2017
Goodwill	$ 8,364,200,000		$ 6,694,000,000
Purchase price for acquisitions	2,435,400,000	$ 13,000,000	59,300,000
Inventories, net	$ 1,976,700,000		$ 1,478,000,000
Number of Businesses Acquired | Acquisition	1		5
Industrial Segment
Business Acquisition [Line Items]
Goodwill	$ 2,032,500,000		$ 2,007,000,000
Newell Tools [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred	1,857,400,000
Purchase price for acquisitions	$ 1,840,000,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	15 years
Newell Tools [Member]
Business Acquisition [Line Items]
Total Consideration Paid for Acquisition	$ 889,800,000
Business Combination, Consideration Transferred	$ 571,800,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	15 years
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue	$ 300,000,000
Series of Individually Immaterial Business Acquisitions [Member]
Business Acquisition [Line Items]
Purchase price for acquisitions	$ 26,100,000
Scenario, Forecast [Member]
Business Acquisition [Line Items]
Business Combination, Contingent Consideration Percent of Sales, Liability, Noncurrent				3.00%
Business Combination, Contingent Consideration, Liability, Noncurrent					$ 84,000,000.000
Scenario, Forecast [Member] | Subsequent Event [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Payable						$ 234,000,000
Minimum [Member] | Scenario, Forecast [Member]
Business Acquisition [Line Items]
Business Combination, Contingent Consideration Percent of Sales, Liability, Noncurrent					2.50%
Maximum [Member] | Scenario, Forecast [Member]
Business Acquisition [Line Items]
Business Combination, Contingent Consideration Percent of Sales, Liability, Noncurrent					3.50%

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Estimated Fair Values of Major Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Dec. 31, 2016
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Fair Value, Net Asset (Liability)	$ 648.9
Goodwill	8,364.2	$ 6,694.0
Newell Tools [Member]
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Total Consideration Paid for Acquisition	1,857.4
Craftsman [Member]
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Deferred Revenue	300.0
Total Consideration Paid for Acquisition	571.8
Cash [Member] | Newell Tools [Member]
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	17.1
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities	(0.7)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory	812.9
Accounts Receivable [Member] | Newell Tools [Member]
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	44.4
Inventories [Member] | Newell Tools [Member]
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	203.0
Prepaid Expenses and Other Current Assets [Member] | Newell Tools [Member]
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	4.6
Property, Plant and Equipment [Member] | Newell Tools [Member]
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	98.0
Trade Names [Member] | Newell Tools [Member]
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	283.0
Customer Relationships [Member] | Newell Tools [Member]
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	540.0
Customer Relationships [Member] | Craftsman [Member]
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	487.0
Other assets | Newell Tools [Member]
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	8.2
Accounts Payable [Member] | Newell Tools [Member]
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(65.2)
Accrued Liabilities [Member] | Newell Tools [Member]
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities	(19.7)
Deferred Tax Asset [Domain] | Newell Tools [Member]
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities	(299.8)
Goodwill [Member]
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	1,700.0
Goodwill [Member] | Newell Tools [Member]
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	1,044.5
Goodwill [Member] | Craftsman [Member]
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	540.9
Craftsman [Member]
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Fair Value, Net Asset (Liability)	47.6
Indefinite-Lived Trade Names	$ 466.0

XML

Supplemental Pro Forma Information Related to Business Acquisitions (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Business Acquisition [Line Items]
Business Acquisition, Pro Forma Revenue	$ 0.0	$ 0.0
Business Acquisition, Pro Forma Net Income (Loss)	$ 0.0	$ 0.0
Business Acquisition, Pro Forma Earnings Per Share, Diluted	$ 2.88	$ 0.96
Newell Acquisition [Member]
Business Acquisition [Line Items]
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual	$ 66.1
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual	$ 32.5

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Changes in Carrying Amount of Goodwill by Segment (Detail) $ in Millions	3 Months Ended
	Apr. 01, 2017 USD ($)
Goodwill [Line Items]
Goodwill, Acquired During Period	$ 1,601.1
Goodwill Beginning Balance	6,694.0
Foreign currency translation	69.1
Goodwill Ending Balance	8,364.2
Tools & Storage [Member]
Goodwill [Line Items]
Goodwill, Acquired During Period	1,585.4
Goodwill Beginning Balance	3,247.8
Foreign currency translation	54.1
Goodwill Ending Balance	4,887.3
Industrial Segment
Goodwill [Line Items]
Goodwill, Acquired During Period	0.0
Goodwill Beginning Balance	2,007.0
Foreign currency translation	9.8
Goodwill Ending Balance	2,032.5
Securities Industry
Goodwill [Line Items]
Goodwill, Acquired During Period	15.7
Goodwill Beginning Balance	1,439.2
Foreign currency translation	5.2
Goodwill Ending Balance	1,444.4
Goodwill [Member]
Goodwill [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	$ 1,700.0

XML

Long-Term Debt and Financing Arrangements (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Dec. 31, 2016	Nov. 17, 2016	Jan. 03, 2015
Debt Instrument [Line Items]
Document Period End Date	Apr. 01, 2017
Debt Issuance Costs, Net	$ 40.4
Long-term debt fair value adjustment	11.9
Commercial paper borrowings outstanding	1,200.0	$ 0.0
Commercial paper borrowings capacity	3,000.0
Debt instrument, face amount	3,854.2
Long-term Debt	3,823.7	3,823.1
Less: Current maturities of long-term debt	(8.1)	(7.8)
Long-Term Debt	3,815.6	$ 3,815.3
Notes 2 Point 45 Percent due 2018 [Member] [Member]
Debt Instrument [Line Items]
Debt Issuance Costs, Net	2.9
Debt instrument, face amount	$ 632.5
Long-term debt, interest rate	2.45%	2.45%
Long-term Debt	$ 629.6	$ 629.2
Notes 2 Point 25 Percent due 2018 [Member]
Debt Instrument [Line Items]
Debt Issuance Costs, Net	$ 1.6
Stated interest rate	1.62%	2.25%
Debt instrument, face amount	$ 345.0
Long-term Debt	343.4	$ 343.1	$ 0.0
Notes payable due 2021
Debt Instrument [Line Items]
Long-term debt, interest rate		3.40%
Long-term Debt	414.4	$ 415.2
Notes Payable due 2022 [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	754.3
Notes Payable Maturities 2022 [Member]
Debt Instrument [Line Items]
Debt Issuance Costs, Net	$ 3.5
Stated interest rate	2.90%
Long-term debt, interest rate		2.90%
Long-term Debt	$ 750.4	$ 750.3
Notes payable due 2028
Debt Instrument [Line Items]
Debt Issuance Costs, Net	$ 0.0
Stated interest rate	7.05%
Long-term debt, interest rate		7.05%
Long-term Debt	$ 174.2	$ 174.7
Notes payable due 2040
Debt Instrument [Line Items]
Debt Issuance Costs, Net	3.2
Long-term debt fair value adjustment	$ 0.0
Stated interest rate	5.20%
Long-term debt, interest rate		5.20%
Long-term Debt	$ 362.1	$ 361.7
Notes 5 Point 75 Percent Due 2052 [Member]
Debt Instrument [Line Items]
Debt Issuance Costs, Net	$ 19.4
Stated interest rate	5.75%
Debt instrument, face amount	$ 750.0
Long-term debt, interest rate		5.75%
Long-term Debt	730.6	$ 730.4
Notes 5 Point 75 Percent due 2053 [Member]
Debt Instrument [Line Items]
Debt Issuance Costs, Net	$ 8.2
Stated interest rate	5.75%			5.75%
Debt instrument, face amount	$ 400.0
Long-term debt, interest rate		5.75%
Long-term Debt	396.6	$ 396.5
Other, payable in varying amounts through 2021
Debt Instrument [Line Items]
Debt Issuance Costs, Net	0.0
Debt instrument, face amount	22.4
Long-term Debt	$ 22.4	$ 22.0
Other, payable in varying amounts through 2021 | Minimum [Member]
Debt Instrument [Line Items]
Stated interest rate	0.00%	0.00%
Other, payable in varying amounts through 2021 | Maximum [Member]
Debt Instrument [Line Items]
Stated interest rate	2.4275%	2.43%
New Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Current Borrowing Capacity	$ 1,750.0
Fixed-to-Floating Interest Rate Swaps Terminated | Notes 2 Point 45 Percent due 2018 [Member] [Member]
Debt Instrument [Line Items]
Long-term debt fair value adjustment	0.0
Fixed-to-Floating Interest Rate Swaps Terminated | Notes 2 Point 25 Percent due 2018 [Member]
Debt Instrument [Line Items]
Long-term debt fair value adjustment	0.0
Fixed-to-Floating Interest Rate Swaps Terminated | Notes Payable Maturities 2022 [Member]
Debt Instrument [Line Items]
Long-term debt fair value adjustment	0.0
Fixed-to-Floating Interest Rate Swaps Terminated | Notes 5 Point 75 Percent Due 2052 [Member]
Debt Instrument [Line Items]
Long-term debt fair value adjustment	0.0
Fixed-to-Floating Interest Rate Swaps Terminated | Other, payable in varying amounts through 2021
Debt Instrument [Line Items]
Long-term debt fair value adjustment	0.0
Fixed to Floating Interest Rate Swap | Notes payable due 2028
Debt Instrument [Line Items]
Long-term debt fair value adjustment	11.9
Debt instrument, face amount	150.0
Fixed to Floating Interest Rate Swap | Notes payable due 2040
Debt Instrument [Line Items]
Debt instrument, face amount	400.0
Fixed to Floating Interest Rate Swap | Notes 5 Point 75 Percent due 2053 [Member]
Debt Instrument [Line Items]
Long-term debt fair value adjustment	0.0
Cash Flow Hedges | Interest Rate Swap [Member]
Debt Instrument [Line Items]
Derivative, Notional Amount	$ 400.0	$ 400.0

XML

Long-Term Debt and Financing Arrangements - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Jan. 01, 2017	Dec. 31, 2016	Nov. 17, 2016	Jan. 03, 2015
Debt Instrument [Line Items]
Commercial Paper Current Borrowing Capacity	$ 2,000.0
Deferred Finance Costs, Net	(40.4)
Long-term Debt	$ 3,823.7		$ 3,823.1
Document Period End Date	Apr. 01, 2017
Debt instrument, face amount	$ 3,854.2
Debt Instrument, Unamortized Discount	(0.8)
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge	(1.2)
Long-term debt fair value adjustment	11.9
Commercial paper borrowings outstanding	1,200.0		0.0
Commercial paper borrowings capacity	3,000.0
Long-term Debt, Current Maturities	(8.1)		(7.8)
Long-term Debt, Excluding Current Maturities	$ 3,815.6		$ 3,815.3
sub-limit on revolving credit facility		$ 400.0
Notes 2 Point 45 Percent due 2018 [Member] [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Effective Percentage	2.45%		2.45%
Deferred Finance Costs, Net	$ (2.9)
Long-term Debt	629.6		$ 629.2
Debt instrument, face amount	632.5
Notes 2 Point 45 Percent due 2018 [Member] [Member] | Fixed-to-Floating Interest Rate Swaps Terminated
Debt Instrument [Line Items]
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge	0.0
Long-term debt fair value adjustment	0.0
Notes 2 Point 45 Percent due 2018 [Member] [Member] | Fixed to Floating Interest Rate Swap
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount	0.0
Notes 2 Point 25 Percent due 2018 [Member]
Debt Instrument [Line Items]
Deferred Finance Costs, Net	(1.6)
Long-term Debt	343.4		$ 343.1	$ 0.0
Debt instrument, face amount	$ 345.0
Stated interest rate	1.62%		2.25%
Notes 2 Point 25 Percent due 2018 [Member] | Fixed-to-Floating Interest Rate Swaps Terminated
Debt Instrument [Line Items]
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge	$ 0.0
Long-term debt fair value adjustment	0.0
Notes 2 Point 25 Percent due 2018 [Member] | Fixed to Floating Interest Rate Swap
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount	0.0
Notes payable due 2021
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Effective Percentage			3.40%
Long-term Debt	414.4		$ 415.2
Notes 3 Point 4 Percent Due in 2021 [Member]
Debt Instrument [Line Items]
Deferred Finance Costs, Net	$ (1.6)
Stated interest rate	3.40%
Notes 3 Point 4 Percent Due in 2021 [Member] | Fixed-to-Floating Interest Rate Swaps Terminated
Debt Instrument [Line Items]
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge	$ 16.2
Long-term debt fair value adjustment	0.0
Notes 3 Point 4 Percent Due in 2021 [Member] | Fixed to Floating Interest Rate Swap
Debt Instrument [Line Items]
Debt instrument, face amount	400.0
Debt Instrument, Unamortized Discount	(0.2)
Notes Payable due 2022 [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	754.3
Debt Instrument, Unamortized Discount	(0.4)
Notes Payable Maturities 2022 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Effective Percentage			2.90%
Deferred Finance Costs, Net	(3.5)
Long-term Debt	$ 750.4		$ 750.3
Stated interest rate	2.90%
Notes Payable Maturities 2022 [Member] | Fixed-to-Floating Interest Rate Swaps Terminated
Debt Instrument [Line Items]
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge	$ 0.0
Long-term debt fair value adjustment	0.0
Notes payable due 2028
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Effective Percentage			7.05%
Deferred Finance Costs, Net	0.0
Long-term Debt	$ 174.2		$ 174.7
Stated interest rate	7.05%
Notes payable due 2028 | Fixed to Floating Interest Rate Swap
Debt Instrument [Line Items]
Debt instrument, face amount	$ 150.0
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge	12.3
Long-term debt fair value adjustment	11.9
Notes 7 Point 05 Percent Due in 2028 [Member] | Fixed to Floating Interest Rate Swap
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount	0.0
Notes payable due 2040
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Effective Percentage			5.20%
Deferred Finance Costs, Net	(3.2)
Long-term Debt	362.1		$ 361.7
Debt Instrument, Unamortized Discount	(0.2)
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge	34.5
Long-term debt fair value adjustment	$ 0.0
Stated interest rate	5.20%
Notes payable due 2040 | Fixed to Floating Interest Rate Swap
Debt Instrument [Line Items]
Debt instrument, face amount	$ 400.0
Notes 5 Point 75 Percent Due 2052 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Effective Percentage			5.75%
Deferred Finance Costs, Net	(19.4)
Long-term Debt	730.6		$ 730.4
Debt instrument, face amount	$ 750.0
Stated interest rate	5.75%
Notes 5 Point 75 Percent Due 2052 [Member] | Fixed-to-Floating Interest Rate Swaps Terminated
Debt Instrument [Line Items]
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge	$ 0.0
Long-term debt fair value adjustment	0.0
Notes 5 Point 75 Percent Due 2052 [Member] | Fixed to Floating Interest Rate Swap
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount	0.0
Notes 5 Point 75 Percent due 2053 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Effective Percentage			5.75%
Deferred Finance Costs, Net	(8.2)
Long-term Debt	396.6		$ 396.5
Debt instrument, face amount	$ 400.0
Stated interest rate	5.75%				5.75%
Notes 5 Point 75 Percent due 2053 [Member] | Fixed to Floating Interest Rate Swap
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount	$ 0.0
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge	4.8
Long-term debt fair value adjustment	0.0
Notes Payable, Other Payables [Member]
Debt Instrument [Line Items]
Deferred Finance Costs, Net	0.0
Long-term Debt	22.4		$ 22.0
Debt instrument, face amount	22.4
Notes Payable, Other Payables [Member] | Fixed-to-Floating Interest Rate Swaps Terminated
Debt Instrument [Line Items]
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge	0.0
Long-term debt fair value adjustment	0.0
Notes Payable, Other Payables [Member] | Fixed to Floating Interest Rate Swap
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount	0.0
Net Investment Hedging [Member]
Debt Instrument [Line Items]
Commercial paper borrowings outstanding	961.7
2017 Credit Agreement [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 1,300.0
New Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Current Borrowing Capacity	$ 1,750.0
Maximum [Member] | Notes Payable, Other Payables [Member]
Debt Instrument [Line Items]
Stated interest rate	2.4275%		2.43%

XML

Summary of Fair Value of Derivatives (Detail) - USD ($) $ in Millions	Apr. 01, 2017	Dec. 31, 2016
Net Investment Hedging [Member] | Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Notional Amount of Interest Rate Derivatives	$ 732.0
Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fair value of asset derivatives	29.3	$ 81.7
Fair value of liability derivatives	1,028.3	51.2
Designated as Hedging Instruments | Cash Flow Hedges | Interest Rate Contracts | LT other assets
Derivatives, Fair Value [Line Items]
Fair value of asset derivatives	0.0	0.0
Designated as Hedging Instruments | Cash Flow Hedges | Interest Rate Contracts | LT other liabilities
Derivatives, Fair Value [Line Items]
Fair value of liability derivatives	43.4	47.3
Designated as Hedging Instruments | Cash Flow Hedges | Foreign Exchange Contracts | Other current assets
Derivatives, Fair Value [Line Items]
Fair value of asset derivatives	22.4	37.6
Designated as Hedging Instruments | Cash Flow Hedges | Foreign Exchange Contracts | LT other assets
Derivatives, Fair Value [Line Items]
Fair value of asset derivatives	0.7	0.0
Designated as Hedging Instruments | Cash Flow Hedges | Foreign Exchange Contracts | Accrued expenses
Derivatives, Fair Value [Line Items]
Fair value of liability derivatives	1.9	1.6
Designated as Hedging Instruments | Cash Flow Hedges | Foreign Exchange Contracts | LT other liabilities
Derivatives, Fair Value [Line Items]
Fair value of liability derivatives	0.0	0.0
Designated as Hedging Instruments | Net Investment Hedging [Member] | Other current assets
Derivatives, Fair Value [Line Items]
Fair value of asset derivatives	6.2	44.1
Designated as Hedging Instruments | Net Investment Hedging [Member] | LT other assets
Derivatives, Fair Value [Line Items]
Fair value of asset derivatives		0.0
Designated as Hedging Instruments | Net Investment Hedging [Member] | Accrued expenses
Derivatives, Fair Value [Line Items]
Fair value of liability derivatives	10.7	1.8
Designated as Hedging Instruments | Net Investment Hedging [Member] | LT other liabilities
Derivatives, Fair Value [Line Items]
Fair value of asset derivatives	0.0
Fair value of liability derivatives	10.6	0.5
Designated as Hedging Instruments | Net Investment Hedging [Member] | Short-term Debt [Member]
Derivatives, Fair Value [Line Items]
Hedging Liabilities, Current	961.7	0.0
Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Fair value of asset derivatives	10.6	28.5
Fair value of liability derivatives	3.2	46.4
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other current assets
Derivatives, Fair Value [Line Items]
Fair value of asset derivatives	10.6	28.5
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Accrued expenses
Derivatives, Fair Value [Line Items]
Fair value of liability derivatives	$ 3.2	$ 46.4

XML

Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended
		Apr. 01, 2017	Apr. 02, 2016	Dec. 31, 2016	Jan. 03, 2015	Oct. 31, 2012	Jan. 31, 2012
Derivative Instruments, Gain (Loss) [Line Items]
Document Period End Date		Apr. 01, 2017
Payments for (Proceeds from) Derivative Instrument, Investing Activities		$ 30.0	$ (0.9)
Debt instrument, face amount		$ 3,854.2
Notes 5 Point 75 Percent due 2053 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Stated interest rate		5.75%			5.75%
Debt instrument, face amount		$ 400.0
Notes 3 Point 4 Percent Due in 2021 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Stated interest rate		3.40%
Notes payable due 2040
Derivative Instruments, Gain (Loss) [Line Items]
Stated interest rate		5.20%
Notes payable due 2028
Derivative Instruments, Gain (Loss) [Line Items]
Stated interest rate		7.05%
Notes Payable due 2022 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Debt instrument, face amount		$ 754.3
Notes 5 Point 75 Percent Due 2052 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Stated interest rate		5.75%
Debt instrument, face amount		$ 750.0
Cash Flow Hedges
Derivative Instruments, Gain (Loss) [Line Items]
After-tax gain (loss) for cash flow hedge effectiveness in accumulated other comprehensive loss		(53.6)		$ (46.3)
Cash flow gain (loss) hedge loss expected to be reclassified to earnings as hedged transactions occur or as amounts are amortized within the next 12 months		(7.9)
Gain (loss) reclassified from accumulated other comprehensive loss into earnings		(0.4)	(9.3)
Fair Value Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Loss on Derivative		0.8	3.0
Interest Expense, Debt			11.8
Foreign Exchange Forward | Cash Flow Hedges
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Interest Rate Derivatives		587.6		503.8
Foreign Exchange Option | Cash Flow Hedges
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Interest Rate Derivatives		187.5		252.0
Interest Rate Risk | Fair Value Hedging [Member] | Notes 5 Point 75 Percent due 2053 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Interest Rate Derivatives					$ 400.0
Interest Rate Risk | Fair Value Hedging [Member] | Notes 3 Point 4 Percent Due in 2021 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Stated interest rate						3.40%
Notional Amount of Interest Rate Derivatives						$ 400.0
Interest Rate Risk | Fair Value Hedging [Member] | Notes payable due 2028
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Interest Rate Derivatives							$ 150.0
Interest Rate Risk | Fair Value Hedging [Member] | Notes 7 Point 05 Percent Due in 2028 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Stated interest rate							7.05%
Foreign Exchange Contracts | Net Investment Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Payments for (Proceeds from) Derivative Instrument, Investing Activities		(20.7)	(2.4)
Notional Amount of Interest Rate Derivatives		732.0
Gain (loss) included in accumulated other comprehensive income (loss)		(78.4)		(88.6)
Foreign Exchange Contracts | Net Investment Hedging | Currency, British Pound Sterling
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Interest Rate Derivatives				1,000.0
Currency Swap [Member] | Net Investment Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Interest Rate Derivatives		250.0		250.0
Interest Rate Swap [Member] | Cash Flow Hedges
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Interest Rate Derivatives		400.0		400.0
Not Designated as Hedging Instrument | Forward Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Interest Rate Derivatives		1,200.0		1,500.0
Interest Expense [Member] | Fair Value Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Interest Expense, Debt			25.2
Interest Expense [Member] | Interest Rate Contracts | Cash Flow Hedges
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net		3.8	(31.6)
Gain (loss) reclassified from accumulated other comprehensive loss into earnings		0.0	0.0
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net		0.0
Other Income And Expense [Member] | Foreign Exchange Contracts | Net Investment Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net		(15.7)	2.6
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion		0.0	0.0
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net		0.0	0.0
Cost of sales | Foreign Exchange Contracts | Cash Flow Hedges
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net		(8.7)	(21.9)
Derivative, Hedged Item, Gain (Loss) Effect on Income Statement		4.5	18.6
Gain (loss) reclassified from accumulated other comprehensive loss into earnings		(4.5)	(18.6)
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net	[1]	0.0	$ 0.0
Short-term Debt [Member] | Designated as Hedging Instrument [Member] | Net Investment Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Hedging Liabilities, Current		$ 961.7		$ 0.0

[1] Includes ineffective portion and amount excluded from effectiveness testing on derivatives.

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Detail Pre-tax Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) into Earnings for Active Derivative Financial Instruments (Detail) - Cash Flow Hedges - USD ($) $ in Millions		3 Months Ended
		Apr. 01, 2017	Apr. 02, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from OCI to Income (Effective Portion)		$ 0.4	$ 9.3
Interest Rate Contracts | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount Recorded in OCI Gain (Loss)		3.8	(31.6)
Gain (Loss) Reclassified from OCI to Income (Effective Portion)		0.0	0.0
Gain (Loss) Recognized in Income (Ineffective Portion)		0.0
Foreign Exchange Contracts | Cost of sales
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Hedged Item, Gain (Loss) Effect on Income Statement		4.5	18.6
Amount Recorded in OCI Gain (Loss)		(8.7)	(21.9)
Gain (Loss) Reclassified from OCI to Income (Effective Portion)		4.5	18.6
Gain (Loss) Recognized in Income (Ineffective Portion)	[1]	$ 0.0	$ 0.0

[1] Includes ineffective portion and amount excluded from effectiveness testing on derivatives.

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Fair Value Adjustments Relating to Swaps (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Jul. 02, 2016	Apr. 02, 2016
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Document Period End Date	Apr. 01, 2017
Fair Value Hedging [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Proceeds from Derivative Instrument, Financing Activities		$ 27.0
Interest Expense, Debt			$ (11.8)
Fair Value Hedging [Member] | Interest Expense [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Gain/(Loss) on Swaps			25.3
Interest Expense, Debt			(25.2)
Foreign Exchange Contract [Member] | Net Investment Hedging [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Notional Amount of Interest Rate Derivatives	$ 732.0
Foreign Exchange Contract [Member] | Net Investment Hedging [Member] | Other Income And Expense [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	(15.7)		2.6
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net	$ 0.0		$ 0.0
Notes 5 Point 20 Percent Due 2040 [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Stated interest rate	5.20%

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Details of Foreign Exchange Contracts Pre-Tax Amounts (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Proceeds from Hedge, Investing Activities	$ (30.0)	$ 0.9
Document Period End Date	Apr. 01, 2017
Fair Value Hedging [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative, Loss on Derivative	$ 0.8	3.0
Interest Expense, Debt		11.8
Net Investment Hedging | Foreign Exchange Contracts
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative, Notional Amount	732.0
Proceeds from Hedge, Investing Activities	20.7	2.4
Net Investment Hedging | Foreign Exchange Contracts | Other Income And Expense [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Amount Recorded in OCI Gain (Loss)	(15.7)	2.6
Gain (Loss) Recognized in Income (Ineffective Portion)	0.0	$ 0.0
Net Investment Hedging | Currency Swap [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative, Notional Amount	$ 250.0		$ 250.0

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Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other Income And Expense [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Amount of Gain (Loss) Recorded in Income on Derivative	$ 28.6	$ (6.0)
Fair Value Hedging [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Interest Expense, Debt		11.8
Derivative, Loss on Derivative	$ 0.8	$ 3.0

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Equity Arrangements - Additional Information (Detail) - USD ($)				1 Months Ended					3 Months Ended		12 Months Ended
	Nov. 17, 2016	Feb. 01, 2016	Oct. 31, 2014	Nov. 30, 2016	Oct. 31, 2016	Mar. 31, 2015	Feb. 28, 2015	Dec. 31, 2013	Apr. 01, 2017	Apr. 02, 2016	Dec. 31, 2016	Dec. 28, 2013
Stockholders Equity Note [Line Items]
Forward share purchase contract			$ 150,000,000		$ 147,400,000	$ 350,000,000
Payments for Repurchase of Common Stock									$ 13,500,000	$ 361,400,000	$ 374,100,000
Common Stock, Shares, Issued	3,504,165								176,902,738		176,902,738
Long-term debt, including current maturities									$ 3,823,700,000		$ 3,823,100,000
Call option, aggregate premium								$ 9,700,000
Preferred Stock, Value, Issued									$ 0		$ 0
Equity Forward Contracts, Net Settlement, Shares			1,603,822			3,645,510
Option Indexed to Issuer's Equity, Settlement Alternatives, Shares, at Fair Value		293,142					911,077				711,376
Equity Units Conversion Rate Number Of Common Stock Shares				3,504,165							418,234
Stock Issued During Period, Value, Treasury Stock Reissued	$ 98.45
Treasury Stock Acquired, Average Cost Per Share		$ 94.34					$ 96.46
Document Period End Date									Apr. 01, 2017
Treasury Stock, Shares, Acquired											3,940,087
Stock Exercise Price Per Share											$ 117.84
Call Option [Member]
Stockholders Equity Note [Line Items]
Call option, average price (in dollars per share)												$ 2.77
Notes 2 Point 25 Percent due 2018 [Member]
Stockholders Equity Note [Line Items]
Long-term debt, including current maturities	$ 0								$ 343,400,000		$ 343,100,000
Convertible Preferred Stock [Member]
Stockholders Equity Note [Line Items]
Common stock to be issued up on conversion												3,500,000.0
Common Stock [Member]
Stockholders Equity Note [Line Items]
Equity Units Conversion Rate Number Of Common Stock Shares	1.0157
Common Stock [Member] | Maximum [Member]
Stockholders Equity Note [Line Items]
Payments for Repurchase of Common Stock												$ 80.65
Equity Units Conversion Rate Number Of Common Stock Shares											1.2399	1.2399
Common Stock [Member] | Minimum [Member]
Stockholders Equity Note [Line Items]
Payments for Repurchase of Common Stock												$ 98.80
Equity Units Conversion Rate Number Of Common Stock Shares											1.0122	1.0122
Call Option [Member]
Stockholders Equity Note [Line Items]
Number of common shares purchased under call option		3,100,000.0								9,100,000.0		12,200,000.0

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Summary of Capped Call (Equity Options) Issued (Detail) - USD ($)			1 Months Ended			3 Months Ended		12 Months Ended
	Nov. 17, 2016	Feb. 01, 2016	Nov. 30, 2016	Feb. 28, 2015	Dec. 31, 2013	Apr. 01, 2017	Apr. 02, 2016	Dec. 31, 2016	Dec. 28, 2013
Option Indexed to Issuer's Equity [Line Items]
Option Indexed to Issuer's Equity, Settlement Alternatives, Shares, at Fair Value		293,142		911,077				711,376
Long-term Debt					$ 345,000,000
Net Premium Paid					$ 9,700,000
Common Stock, Par or Stated Value Per Share						$ 2.50		$ 2.50
Equity Units Conversion Rate Number Of Common Stock Shares			3,504,165					418,234
Payments for Repurchase of Common Stock						$ 13,500,000	$ 361,400,000	$ 374,100,000
Common Stock, Shares, Issued	3,504,165					176,902,738		176,902,738
Cash Settlement on Forward Stock Purchase Contract						$ 345,000,000
Stock Exercise Price Per Share								$ 117.84
Treasury Stock Acquired, Average Cost Per Share		$ 94.34		$ 96.46
Call Option [Member]
Option Indexed to Issuer's Equity [Line Items]
Original Number of Options		3,100,000.0					9,100,000.0		12,200,000.0
Call Option [Member]
Option Indexed to Issuer's Equity [Line Items]
Common Stock Price Per Share									$ 2.77
Notes 2 Point 25 Percent due 2018 [Member]
Option Indexed to Issuer's Equity [Line Items]
Common Stock, Par or Stated Value Per Share								$ 100.00
Common Stock [Member]
Option Indexed to Issuer's Equity [Line Items]
Equity Units Conversion Rate Number Of Common Stock Shares	1.0157
Common Stock [Member] | Minimum [Member]
Option Indexed to Issuer's Equity [Line Items]
Equity Units Conversion Rate Number Of Common Stock Shares								1.0122	1.0122
Payments for Repurchase of Common Stock									$ 98.80
Common Stock [Member] | Maximum [Member]
Option Indexed to Issuer's Equity [Line Items]
Equity Units Conversion Rate Number Of Common Stock Shares								1.2399	1.2399
Payments for Repurchase of Common Stock									$ 80.65
Convertible Preferred Stock [Member]
Option Indexed to Issuer's Equity [Line Items]
Conversion of Stock, Shares Issued									3,500,000.0

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Accumulated Other Comprehensive Loss - Changes in AOCI (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Accumulated other comprehensive income (loss):
Balance - beginning of period	$ (1,921.2)	$ (1,694.2)
Other comprehensive income (loss) before reclassifications	(94.8)	(86.3)
Reclassification adjustments to earnings	11.4	(6.5)
Net other comprehensive income (loss)	113.5	79.8
Balance - end of period	(1,807.7)	(1,614.4)
Currency translation adjustment and other
Accumulated other comprehensive income (loss):
Balance - beginning of period	(1,586.3)	(1,300.9)
Other comprehensive income (loss) before reclassifications	(114.6)	(128.0)
Reclassification adjustments to earnings	0.0	0.0
Net other comprehensive income (loss)	119.3	128.0
Balance - end of period	(1,467.0)	(1,172.9)
Unrealized losses on cash flow hedges, net of tax
Accumulated other comprehensive income (loss):
Balance - beginning of period	(46.3)	(52.1)
Other comprehensive income (loss) before reclassifications	6.9	43.8
Reclassification adjustments to earnings	(0.4)	(9.3)
Net other comprehensive income (loss)	(7.3)	(53.1)
Balance - end of period	(53.6)	(105.2)
Unrealized gains (losses) on net investment hedges, net of tax
Accumulated other comprehensive income (loss):
Balance - beginning of period	88.6	11.8
Other comprehensive income (loss) before reclassifications	10.2	(1.6)
Reclassification adjustments to earnings	0.0	0.0
Net other comprehensive income (loss)	(10.2)	1.6
Balance - end of period	78.4	13.4
Pension (losses) gains, net of tax
Accumulated other comprehensive income (loss):
Balance - beginning of period	(377.2)	(353.0)
Other comprehensive income (loss) before reclassifications	2.7	(0.5)
Reclassification adjustments to earnings	11.8	2.8
Net other comprehensive income (loss)	11.7	3.3
Balance - end of period	(365.5)	$ (349.7)
Disposal Group, Not Discontinued Operations [Member] | Currency translation adjustment and other
Accumulated other comprehensive income (loss):
Reclassification adjustments to earnings	4.7
Disposal Group, Not Discontinued Operations [Member]
Accumulated other comprehensive income (loss):
Reclassification adjustments to earnings	(7.3)
Disposal Group, Not Discontinued Operations [Member] | Unrealized losses on cash flow hedges, net of tax
Accumulated other comprehensive income (loss):
Reclassification adjustments to earnings	0.0
Disposal Group, Not Discontinued Operations [Member] | Unrealized gains (losses) on net investment hedges, net of tax
Accumulated other comprehensive income (loss):
Reclassification adjustments to earnings	0.0
Disposal Group, Not Discontinued Operations [Member] | Pension (losses) gains, net of tax
Accumulated other comprehensive income (loss):
Reclassification adjustments to earnings	$ 2.6

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Accumulated Other Comprehensive Loss - Reclassifications out of AOCI (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income taxes on continuing operations	$ (79.5)	$ (65.5)
Reclassifications from Accumulated other comprehensive loss to earnings
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax	0.7	14.8
Reclassifications from Accumulated other comprehensive loss to earnings | Cost of sales
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax	4.5	18.6
Reclassifications from Accumulated other comprehensive loss to earnings | Interest Expense [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax	3.8	3.8
Reclassifications from Accumulated other comprehensive loss to earnings | Unrealized losses on cash flow hedges, net of tax
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income taxes on continuing operations	(0.3)	(5.5)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax	0.4	9.3
Reclassifications from Accumulated other comprehensive loss to earnings | Pension (losses) gains, net of tax
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax	(16.4)	(4.3)
Income taxes on continuing operations	(4.6)	(1.5)
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax	(11.8)	(2.8)
Reclassifications from Accumulated other comprehensive loss to earnings | Pension (losses) gains, net of tax | Cost of sales
Accumulated Other Comprehensive Income (Loss) [Line Items]
Actuarial losses, reclassification to Statements of Operations and Comprehensive Income	(2.3)	(2.6)
Reclassifications from Accumulated other comprehensive loss to earnings | Pension (losses) gains, net of tax | Other Expense [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Actuarial losses, reclassification to Statements of Operations and Comprehensive Income	(12.5)	0.0
Reclassifications from Accumulated other comprehensive loss to earnings | Pension (losses) gains, net of tax | Selling, general and administrative
Accumulated Other Comprehensive Income (Loss) [Line Items]
Actuarial losses, reclassification to Statements of Operations and Comprehensive Income	$ (1.6)	$ (1.7)

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Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Defined Benefit Plan Disclosure [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax	$ (12.5)	$ 0.0
Document Period End Date	Apr. 01, 2017
Pension Benefit, U.S. Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 2.3	2.3
Interest cost	10.7	11.3
Expected return on plan assets	(16.1)	(16.9)
Amortization of prior service cost (credit)	0.3	1.3
Defined Benefit Plan, Amortization of Gains (Losses)	1.9	1.7
Curtailment loss	0.0	0.0
Net periodic benefit cost	(0.9)	(0.3)
Pension Benefits, Non-U.S Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	3.3	3.2
Interest cost	7.0	9.6
Expected return on plan assets	(11.0)	(11.7)
Amortization of prior service cost (credit)	(0.3)	0.1
Defined Benefit Plan, Amortization of Gains (Losses)	2.3	1.5
Curtailment loss	12.5	0.1
Net periodic benefit cost	13.8	2.8
Other Benefits, U.S Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	0.1	0.2
Interest cost	0.4	0.4
Expected return on plan assets	0.0	0.0
Amortization of prior service cost (credit)	(0.3)	(0.3)
Defined Benefit Plan, Amortization of Gains (Losses)	0.0	0.0
Curtailment loss	0.0	0.0
Net periodic benefit cost	$ 0.2	$ 0.3

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Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Document Period End Date	Apr. 01, 2017
Derivative assets	$ 39.9	$ 110.2
Derivative liabilities	1,031.5	97.6
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market fund	4.3	4.3
Derivative assets	39.9	110.2
Derivative liabilities	1,031.5	97.6
Business Combination, Contingent Consideration, Liability, Noncurrent	84.0
Reported Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	39.9	110.2
Derivative liabilities	1,031.5	97.6
Level 1 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market fund	4.3	4.3
Derivative assets	0.0	0.0
Derivative liabilities	0.0	0.0
Business Combination, Contingent Consideration, Liability, Noncurrent	0.0
Level 2 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market fund	0.0	0.0
Derivative assets	39.9	110.2
Derivative liabilities	1,031.5	97.6
Business Combination, Contingent Consideration, Liability, Noncurrent	0.0
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market fund	0.0	0.0
Derivative assets	0.0	0.0
Derivative liabilities	0.0	$ 0.0
Business Combination, Contingent Consideration, Liability, Noncurrent	$ 84.0

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Summary of Financial Instruments Carrying and Fair Values (Detail) - USD ($)	3 Months Ended
	Apr. 01, 2017	Mar. 01, 2032	Feb. 01, 2032	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Document Period End Date	Apr. 01, 2017
Investments, Fair Value Disclosure	$ 9,200,000			$ 9,200,000
Long-term debt, including current maturities	3,823,700,000			3,823,100,000
Long-term Debt, Fair Value	3,991,400,000			3,967,400,000
Derivative assets	39,900,000			110,200,000
Derivative liabilities	1,031,500,000			97,600,000
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	8,900,000			8,900,000
Long-term debt, including current maturities	3,823,700,000			3,823,100,000
Derivative assets	39,900,000			110,200,000
Derivative liabilities	$ 1,031,500,000			$ 97,600,000
Scenario, Forecast [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Business Combination, Contingent Consideration Percent of Sales, Liability, Noncurrent		3.00%
Business Combination, Contingent Consideration, Liability, Noncurrent			$ 84,000,000.000
Scenario, Forecast [Member] | Minimum [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Business Combination, Contingent Consideration Percent of Sales, Liability, Noncurrent			2.50%
Scenario, Forecast [Member] | Maximum [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Business Combination, Contingent Consideration Percent of Sales, Liability, Noncurrent			3.50%

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Other Costs and Expenses - Additional Information (Detail) $ in Millions	3 Months Ended
	Apr. 01, 2017 USD ($)
Disclosure Other Costs And Expenses Additional Information [Abstract]
Business Acquisition, Transaction Costs	$ 40.0

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Summary of Restructuring Reserve Activity (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Restructuring Cost and Reserve [Line Items]
Document Period End Date	Apr. 01, 2017
Reserve, Beginning Balance	$ 35.6
Restructuring charges	15.8	$ 8.0
Usage	(12.8)
Currency	0.3
Reserve, Ending Balance	38.9
Severance and related costs
Restructuring Cost and Reserve [Line Items]
Reserve, Beginning Balance	21.4
Restructuring charges	11.8
Usage	(9.0)
Currency	0.3
Reserve, Ending Balance	24.5
Facility closures
Restructuring Cost and Reserve [Line Items]
Reserve, Beginning Balance	14.2
Restructuring charges	4.0
Usage	(3.8)
Currency	0.0
Reserve, Ending Balance	14.4
Series of Individually Immaterial Business Acquisitions [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	15.8
Severance Costs	$ 11.8

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Restructuring Charges - Additional Information (Detail) $ in Millions	3 Months Ended
	Apr. 01, 2017 USD ($) employee	Apr. 02, 2016 USD ($)	Dec. 31, 2016 USD ($)
Restructuring Cost and Reserve [Line Items]
Document Period End Date	Apr. 01, 2017
Restructuring charges and asset impairments recognized	$ (15.8)	$ (8.0)
Restructuring reserves	38.9		$ 35.6
Tools & Storage [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges and asset impairments recognized	(6.0)
Securities Industry
Restructuring Cost and Reserve [Line Items]
Restructuring charges and asset impairments recognized	(7.0)
Series of Individually Immaterial Business Acquisitions [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges and asset impairments recognized	(15.8)
Severance Costs	$ 11.8
Number of employees reduced | employee	180
Business Exit Costs	$ 4.0
Facility closures
Restructuring Cost and Reserve [Line Items]
Restructuring charges and asset impairments recognized	(4.0)
Restructuring reserves	14.4		14.2
Severance and related costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges and asset impairments recognized	(11.8)
Restructuring reserves	24.5		$ 21.4
Severance and related costs | Series of Individually Immaterial Business Acquisitions [Member] | Industrial Segment
Restructuring Cost and Reserve [Line Items]
Restructuring charges and asset impairments recognized	$ (3.0)

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Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Disclosure Income Taxes Additional Information [Abstract]
Income taxes on continuing operations	$ 79.5	$ 65.5
Document Period End Date	Apr. 01, 2017
Effective tax rate	16.80%	25.80%
Business Combination, Acquisition Related Costs	25.00%

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Business Segments (Detail) $ in Millions	3 Months Ended
	Apr. 01, 2017 USD ($) Integer	Apr. 02, 2016 USD ($)
Segment Reporting Information [Line Items]
Number of Reportable Segments | Integer	3
Net Sales	$ 2,805.6	$ 2,672.1
Segment profit	424.5	398.2
Corporate overhead	(43.9)	(48.4)
Other-net	(106.2)	(46.2)
Gain (Loss) on Disposition of Business	269.2	0.0
Defined Benefit Plan, Settlements, Plan Assets	(12.5)	0.0
Restructuring charges and asset impairments recognized	(15.8)	(8.0)
Interest expense	(51.3)	(47.3)
Interest income	8.6	5.8
Earnings from continuing operations before income taxes	472.6	254.1
Tools & Storage [Member]
Segment Reporting Information [Line Items]
Restructuring charges and asset impairments recognized	(6.0)
Securities Industry
Segment Reporting Information [Line Items]
Restructuring charges and asset impairments recognized	(7.0)
Segment, Continuing Operations | Tools & Storage [Member]
Segment Reporting Information [Line Items]
Net Sales	1,854.5	1,706.9
Segment profit	287.3	262.0
Segment, Continuing Operations | Securities Industry
Segment Reporting Information [Line Items]
Net Sales	478.5	504.2
Segment profit	50.9	60.2
Segment, Continuing Operations | Industrial Segment
Segment Reporting Information [Line Items]
Net Sales	472.6	461.0
Segment profit	$ 86.3	$ 76.0

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Business Segments - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Segment Reporting Information [Line Items]
Decrease in segment profit due to non-cash inventory step-up amortization	$ 424.5	$ 398.2

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Summary of Total Assets by Segment (Detail) - USD ($) $ in Millions	Apr. 01, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Assets	$ (18,662.1)	$ (15,634.9)
Segment, Continuing Operations
Segment Reporting Information [Line Items]
Assets	(19,095.2)	(15,010.4)
Segment, Continuing Operations | Tools & Storage [Member]
Segment Reporting Information [Line Items]
Assets	(12,507.6)	(8,512.4)
Segment, Continuing Operations | Securities Industry
Segment Reporting Information [Line Items]
Assets	(3,152.8)	(3,139.0)
Segment, Continuing Operations | Industrial Segment
Segment Reporting Information [Line Items]
Assets	(3,434.8)	(3,359.0)
Segment, Continuing Operations | Corporate assets
Segment Reporting Information [Line Items]
Assets	(433.1)	101.1
Discontinued Operations [Member]
Segment Reporting Information [Line Items]
Assets	$ 0.0	$ (523.4)

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Commitments and Contingencies - Additional Information (Detail) $ in Millions	3 Months Ended	12 Months Ended
	Apr. 01, 2017 USD ($) sites	Dec. 28, 2013 USD ($)	Dec. 31, 2016 USD ($)
Loss Contingencies [Line Items]
Document Period End Date	Apr. 01, 2017
Superfund Sites | sites	31
Environmental remediation. Period construction of treatment facility to be maintained	30 years
Centredale Site [Member]
Loss Contingencies [Line Items]
Environmental remediation costs, reserve	$ 68.1
Centredale Site [Member] | Minimum [Member]
Loss Contingencies [Line Items]
Environmental remediation costs deemed probable and reasonably estimable		$ 68.1
Centredale Site [Member] | Maximum [Member]
Loss Contingencies [Line Items]
Environmental remediation costs deemed probable and reasonably estimable		$ 139.7
Property, Plant and Equipment, Other Types
Loss Contingencies [Line Items]
Environmental remediation costs, reserve	176.1		$ 160.9
Reserve for environmental remediation costs, current	19.8
Reserve for environmental remediation costs, noncurrent	156.3
Accrual for Environmental Loss Contingencies, EPA Funded Amount	13.2
Accrual for Environmental Loss Contingencies, Obligation After EPA Funding	162.9
Environmental Remediation Expense	17.0
Property, Plant and Equipment, Other Types | Minimum [Member]
Loss Contingencies [Line Items]
Environmental remediation costs deemed probable and reasonably estimable	143.5
Property, Plant and Equipment, Other Types | Maximum [Member]
Loss Contingencies [Line Items]
Environmental remediation costs deemed probable and reasonably estimable	$ 282.9

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Financial Guarantees (Detail) $ in Millions	3 Months Ended
	Apr. 01, 2017 USD ($)
Guarantor Obligations [Line Items]
Guarantee Obligations Maximum Potential Payment	$ 200.0
Guarantee Liability Carrying Amount	23.8
Guarantees on the residual values of leased properties
Guarantor Obligations [Line Items]
Guarantee Obligations Maximum Potential Payment	58.7
Guarantee Liability Carrying Amount	$ 0.0
Guarantees on the residual values of leased properties | Minimum [Member]
Guarantor Obligations [Line Items]
Guarantee Obligation Term	1 year
Guarantees on the residual values of leased properties | Maximum [Member]
Guarantor Obligations [Line Items]
Guarantee Obligation Term	5 years
Standby Letters of Credit [Member]
Guarantor Obligations [Line Items]
Guarantee Obligations Maximum Potential Payment	$ 71.2
Guarantee Liability Carrying Amount	$ 0.0
Standby Letters of Credit [Member] | Maximum [Member]
Guarantor Obligations [Line Items]
Guarantee Obligation Term	3 years
Commercial customer financing arrangements
Guarantor Obligations [Line Items]
Guarantee Obligations Maximum Potential Payment	$ 70.1
Guarantee Liability Carrying Amount	$ 23.8
Commercial customer financing arrangements | Maximum [Member]
Guarantor Obligations [Line Items]
Guarantee Obligation Term	6 years

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Guarantees - Additional Information (Detail) $ in Millions	Apr. 01, 2017 USD ($)
Guarantor Obligations [Line Items]
Guarantee Obligations Maximum Potential Payment	$ 200.0
Carrying amount of guarantees recorded in the consolidated balance sheet	23.8
Property Lease Guarantee [Member]
Guarantor Obligations [Line Items]
Guarantee Obligations Maximum Potential Payment	58.7
Capital Leased Assets, Noncurrent, Fair Value Disclosure	67.2
Carrying amount of guarantees recorded in the consolidated balance sheet	0.0
Standby Letters of Credit [Member]
Guarantor Obligations [Line Items]
Guarantee Obligations Maximum Potential Payment	71.2
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	70.1
Carrying amount of guarantees recorded in the consolidated balance sheet	$ 23.8

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Changes in Carrying Amount of Product and Service Warranties (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Disclosure Changes In Carrying Amount Of Product And Service Warranties [Abstract]
Balance beginning of period	$ 103.4	$ 105.4
Warranties and guarantees issued	22.7	20.4
Warranty payments and currency	(24.6)	(20.0)
Balance end of period	$ 101.5	$ 105.8

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Divestitures - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016	Dec. 31, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds (payments) from sales of businesses, net of cash sold	$ 719.0
Accounts and notes receivable, net			$ 35.3
Proceeds (payments) from sales of businesses, net of cash sold	744.8	$ 0.0
Income (Loss) from Individually Significant Component Disposed of or Held-for-sale, Excluding Discontinued Operations, before Income Tax	0.6	$ 6.5
Inventories, net			33.2
Property, Plant and Equipment, net			52.3
Goodwill and other intangibles, net			399.8
Other Assets			2.8
Total assets			523.4
Accounts payable and accrued expenses			38.0
Other liabilities			15.5
Liabilities held for sale	0.0		$ (53.5)
Gain (Loss) on Disposition of Business	(238.1)
small business in Tools & Storage segment [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds (payments) from sales of businesses, net of cash sold	25.6
Small Business in Security Segment [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds (payments) from sales of businesses, net of cash sold	$ 719.2

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Divestitures - Operating Results of Divested Businesses (Detail) - USD ($) $ in Millions	Apr. 01, 2017	Dec. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net		$ 35.3
Carrying amounts of assets and liabilites of discontinued operations
Assets Held-for-sale, Current	$ 0.0	(523.4)
Liabilities of Assets Held-for-sale	$ 0.0	53.5
Disposal Group, Including Discontinued Operation, Inventory		33.2
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment, Current		52.3
Disposal Group, Including Discontinued Operation, Intangible Assets		399.8
Disposal Group, Including Discontinued Operation, Other Assets		2.8
Disposal Group, Including Discontinued Operation, Assets		523.4
Disposal Group, Including Discontinued Operation, Accounts Payable and Accrued Liabilities		38.0
Disposal Group, Including Discontinued Operation, Other Liabilities		$ 15.5