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 June 30, 2018.

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

153,009,803 shares of the registrant’s common stock were outstanding as of July 17, 2018.

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	37
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	47
ITEM 4. CONTROLS AND PROCEDURES	47
PART II — OTHER INFORMATION	49
ITEM 1. LEGAL PROCEEDINGS	49
ITEM 1A. RISK FACTORS	49
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	49
ITEM 6. EXHIBITS	50
SIGNATURE	51

PART I — FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

THREE AND SIX MONTHS ENDED JUNE 30, 2018 AND JULY 1, 2017

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

	Second Quarter						Year-to-Date
	2018			2017			2018			2017
Net Sales	$	3,643.6		$	3,286.7		$	6,852.9		$	6,143.0
Costs and Expenses
Cost of sales	$	2,356.5		$	2,073.4		$	4,400.1		$	3,863.7
Selling, general and administrative	801.8			738.6			1,580.6			1,420.6
Provision for doubtful accounts	4.0			5.6			10.8			13.9
Other, net	119.3			55.3			177.3			155.8
Loss (gain) on sales of businesses	0.8			0.9			0.8			(268.3		)
Pension settlement	—			0.3			—			12.8
Restructuring charges	13.4			8.0			36.3			23.8
Interest expense	69.0			56.0			132.2			107.3
Interest income	(15.6		)	(9.7		)	(31.4		)	(18.3		)
	$	3,349.2		$	2,928.4		$	6,306.7		$	5,311.3
Earnings before income taxes	294.4			358.3			546.2			831.7
Income taxes	1.0			80.7			82.7			160.4
Net earnings	$	293.4		$	277.6		$	463.5		$	671.3
Less: Net loss attributable to non-controlling interests	(0.2		)	—			(0.7		)	—
Net Earnings Attributable to Common Shareowners	$	293.6		$	277.6		$	464.2		$	671.3
Total Comprehensive Income Attributable to Common Shareowners	$	14.5		$	360.1		$	280.9		$	867.3
Earnings per share of common stock:
Basic	$	1.96		$	1.86		$	3.09		$	4.49
Diluted	$	1.93		$	1.82		$	3.03		$	4.42
Dividends per share of common stock	$	0.63		$	0.58		$	1.26		$	1.16
Weighted-average shares outstanding (in thousands):
Basic	149,748			149,514			150,101			149,353
Diluted	152,494			152,226			153,124			151,862

See Notes to (Unaudited) Condensed Consolidated Financial Statements.

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STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

JUNE 30, 2018 AND DECEMBER 30, 2017

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

	June 30, 2018			December 30, 2017
ASSETS
Current Assets
Cash and cash equivalents	$	385.8		$	637.5
Accounts and notes receivable, net	2,151.4			1,628.7
Inventories, net	2,444.2			2,018.4
Other current assets	341.2			274.4
Total Current Assets	5,322.6			4,559.0
Property, plant and equipment, net	1,817.1			1,742.5
Goodwill	8,947.7			8,776.1
Intangibles, net	3,596.7			3,507.4
Other assets	495.5			512.7
Total Assets	$	20,179.6		$	19,097.7
LIABILITIES AND SHAREOWNERS' EQUITY
Current Liabilities
Short-term borrowings	$	1,101.5		$	5.3
Current maturities of long-term debt	978.9			977.5
Accounts payable	2,288.5			2,021.0
Accrued expenses	1,270.0			1,387.7
Total Current Liabilities	5,638.9			4,391.5
Long-term debt	2,831.2			2,828.2
Deferred taxes	467.0			436.1
Post-retirement benefits	603.7			629.9
Other liabilities	2,451.0			2,507.0
Commitments and Contingencies (Note R)
Shareowners’ Equity
Stanley Black & Decker, Inc. Shareowners’ Equity
Preferred stock, without par value: Authorized 10,000,000 shares in 2018 and 2017 Issued and outstanding 750,000 shares in 2018 and 2017	750.0			750.0
Common stock, par value $2.50 per share: Authorized 300,000,000 shares in 2018 and 2017 Issued 176,902,738 shares in 2018 and 2017	442.3			442.3
Retained earnings	6,273.9			5,998.7
Additional paid in capital	4,606.4			4,643.2
Accumulated other comprehensive loss	(1,772.4		)	(1,589.1		)
ESOP	(14.4		)	(18.8		)
	10,285.8			10,226.3
Less: cost of common stock in treasury	(2,100.4		)	(1,924.1		)
Stanley Black & Decker, Inc. Shareowners’ Equity	8,185.4			8,302.2
Non-controlling interests	2.4			2.8
Total Shareowners’ Equity	8,187.8			8,305.0
Total Liabilities and Shareowners’ Equity	$	20,179.6		$	19,097.7

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 AND SIX MONTHS ENDED JUNE 30, 2018 AND JULY 1, 2017

(Unaudited, Millions of Dollars)

	Second Quarter						Year-to-Date
	2018			2017			2018			2017
OPERATING ACTIVITIES
Net earnings	$	293.4		$	277.6		$	463.5		$	671.3
Adjustments to reconcile net earnings to cash provided by (used in) operating activities:
Depreciation and amortization of property, plant and equipment	83.2			73.7			164.5			141.5
Amortization of intangibles	44.5			42.1			86.8			75.8
Loss (gain) on sales of businesses	0.8			0.9			0.8			(268.3		)
Changes in working capital	(185.0		)	(263.7		)	(729.3		)	(797.0		)
Changes in other assets and liabilities	(38.9		)	21.2			(137.7		)	14.4
Cash provided by (used in) operating activities	198.0			151.8			(151.4		)	(162.3		)
INVESTING ACTIVITIES
Capital and software expenditures	(111.7		)	(122.2		)	(218.0		)	(186.9		)
Business acquisitions, net of cash acquired	(505.6		)	5.3			(506.8		)	(2,430.1		)
Proceeds from sales of assets	6.6			3.2			7.9			22.5
(Payments) proceeds from sales of businesses, net of cash sold	(1.7		)	0.5			(1.9		)	745.3
Proceeds (payments) from net investment hedge settlements	37.8			(24.4		)	20.3			(3.7		)
Proceeds from deferred purchase price receivable	—			104.7			—			227.8
Other	(12.9		)	(13.5		)	(15.3		)	(17.3		)
Cash used in investing activities	(587.5		)	(46.4		)	(713.8		)	(1,642.4		)
FINANCING ACTIVITIES
Stock purchase contract fees	(10.1		)	—			(20.2		)	—
Net short-term borrowings (repayments)	753.6			(593.1		)	1,135.6			563.6
Cash dividends on common stock	(94.2		)	(86.5		)	(189.1		)	(173.2		)
Proceeds from issuances of common stock	9.5			15.6			22.6			32.9
Proceeds from issuance of preferred stock	—			727.5			—			727.5
Premium paid on equity option	—			(25.1		)	(57.3		)	(25.1		)
Purchases of common stock for treasury	(201.3		)	(2.1		)	(212.7		)	(15.6		)
Other	—			(1.3		)	(5.5		)	(2.3		)
Cash provided by financing activities	457.5			35.0			673.4			1,107.8
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(87.8		)	21.1			(59.9		)	59.2
Change in cash, cash equivalents and restricted cash	(19.8		)	161.5			(251.7		)	(637.7		)
Cash, cash equivalents and restricted cash, beginning of period	423.2			378.0			655.1			1,177.2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	$	403.4		$	539.5		$	403.4		$	539.5

The following table provides a reconciliation of the cash, cash equivalents and restricted cash balances as of June 30, 2018 and December 30, 2017, as shown above:

	June 30, 2018		December 30, 2017
Cash and cash equivalents	$	385.8	$	637.5
Restricted cash included in Other current assets	17.6		17.6
Cash, cash equivalents and restricted cash	$	403.4	$	655.1

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

JUNE 30, 2018

A. SIGNIFICANT ACCOUNTING POLICIES

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 and six months ended June 30, 2018 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 30, 2017, and subsequent related filings with the Securities and Exchange Commission.

In April 2018, the Company acquired the industrial business of Nelson Fastener Systems ("Nelson") from the Doncasters Group, which is being accounted for as a business combination. The results of this acquisition are being consolidated into the Company's Industrial segment. In March 2017, the Company acquired the Tools business of Newell Brands ("Newell Tools") and the Craftsman® brand, which were both accounted for as business combinations. The results of these acquisitions have been consolidated into the Company's Tools & Storage segment. Refer to Note F, Acquisitions, for further discussion on these acquisitions.

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. The Company also sold two small businesses within the Tools & Storage segment in the first and fourth quarters of 2017, and one small business in the Industrial segment in the third quarter of 2017. The operating results of these businesses have been reported within continuing operations in the Condensed Consolidated Financial Statements through their respective dates of sale in 2017. Refer to Note T, Divestitures, 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. Certain amounts reported in the previous year have been recast as a result of the retrospective adoption of new accounting standards in the first quarter of 2018. Refer to Note B, New Accounting Standards, for further discussion.

Financial Instruments

Derivative financial instruments are employed to manage risks, including foreign currency, interest rate exposures and commodity prices and are not used for trading or speculative purposes. 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. The Company recognizes all derivative instruments in the balance sheet at fair value.

Changes in the fair value of derivatives are recognized periodically either in earnings or in shareowners’ equity as a component of other comprehensive income (loss) ("OCI") , depending on whether the derivative financial instrument is undesignated or qualifies for hedge accounting, and if so, whether it represents a fair value, cash flow, or net investment hedge. Changes in the fair value of derivatives accounted for as fair value hedges are recorded in earnings in the same caption as the changes in the fair value of the hedged items. Gains and losses on derivatives designated as cash flow hedges, to the extent they are included in the assessment of effectiveness, are recorded in other comprehensive income (loss) and subsequently reclassified to earnings to offset the impact of the hedged items when they occur. In the event it becomes probable the forecasted transaction to which a cash flow hedge relates will not occur, the derivative would be terminated and the amount in other comprehensive income (loss) would be recognized in earnings. Changes in the fair value of derivatives that are designated and qualify as a hedge of the net investment in foreign operations, to the extent they are included in the assessment of effectiveness, are reported in other comprehensive income (loss) and are deferred until disposal of the underlying assets. Gains and losses representing components excluded from the assessment of effectiveness for cash flow and fair value hedges are recognized in earnings on a

6

straight-line basis in the same caption as the hedged item over the term of the hedge. Gains and losses representing components excluded from the assessment of effectiveness for net investment hedges are recognized in earnings on a straight-line basis in Other, net over the term of the hedge.

The net interest paid or received on interest rate swaps is recognized as interest expense. Gains and losses resulting from the early termination of interest rate swap agreements are deferred and amortized as adjustments to interest expense over the remaining period of the debt originally covered by the terminated swap.

Changes in the fair value of derivatives not designated as hedges are reported in Other, net in the Consolidated Statements of Operations and Comprehensive Income. Refer to Note I, Financial Instruments, for further discussion.

Revenue Recognition

The Company’s revenues result from the sale of goods or services and reflect the consideration to which the Company expects to be entitled. The Company records revenue based on a five-step model in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"). For its customer contracts, the Company identifies the performance obligations (goods or services), determines the transaction price, allocates the contract transaction price to the performance obligations, and recognizes the revenue when (or as) the performance obligation is transferred to the customer. A good or service is transferred when (or as) the customer obtains control of that good or service. The majority of the Company’s revenues are recorded at a point in time from the sale of tangible products.

Provisions for customer volume rebates, product returns, discounts and allowances are variable consideration and are recorded as a reduction of revenue in the same period the related sales are recorded. Such provisions are calculated using historical averages adjusted for any expected changes due to current business conditions. Consideration given to customers for cooperative advertising is recognized as a reduction of revenue except to the extent that there is a distinct good or service and evidence of the fair value of the advertising, in which case the expense is classified as selling, general, and administrative expense.

The Company’s revenues can be generated from contracts with multiple performance obligations. When a sales agreement involves multiple performance obligations, each obligation is separately identified and the transaction price is allocated based on the amount of consideration the Company expects to be entitled to in exchange for transferring the promised good or service to the customer.

Sales of security monitoring systems may have multiple performance obligations, including equipment, installation and monitoring or maintenance services. In most instances, the Company allocates the appropriate amount of consideration to each performance obligation based on the standalone selling price ("SSP") of the distinct goods or services performance obligation. In circumstances where SSP is not observable, the Company allocates the consideration for the performance obligations by utilizing one of the following methods: expected cost plus margin, the residual approach, or a mix of these estimation methods.

For performance obligations that the Company satisfies over time, revenue is recognized by consistently applying a method of measuring progress toward complete satisfaction of that performance obligation. The Company utilizes the method that most accurately depicts the progress toward completion of the performance obligation.

The Company’s contract sales for the installation of security intruder systems and other construction-related projects are generally recorded under the input method. The input method recognizes revenue on the basis of the Company’s efforts or inputs to the satisfaction of a performance obligation relative to the total inputs expected to satisfy that performance obligation. Revenue recognized on security contracts in process are based upon the allocated contract price and related total inputs of the project at completion. The extent of progress toward completion is generally measured using input methods based on labor metrics. Revisions to these estimates as contracts progress have the effect of increasing or decreasing profits each period. Provisions for anticipated losses are made in the period in which they become determinable. The revenues for monitoring and monitoring-related services are recognized as services are rendered over the contractual period.

The Company utilizes the output method for contract sales in the Oil & Gas business. The output method recognizes revenue based on direct measurements of the customer value of the goods or services transferred to date relative to the remaining goods or services promised under the contract. The output method includes methods such as surveys of performance completed to date, appraisals of results achieved, milestones reached, time elapsed, and units produced or units delivered.

Contract assets or liabilities result from transactions with revenue recorded over time. If the measure of remaining rights exceeds the measure of the remaining performance obligations the Company records a contract asset. Conversely, if the

7

measure of the remaining performance obligations exceeds the measure of the remaining rights, the Company records a contract liability.

Incremental costs of obtaining or fulfilling a contract with a customer that are expected to be recovered are recognized and classified in Other current assets or Other assets in the Condensed Consolidated Balance Sheets and are typically amortized over the contract period. The Company recognizes the incremental costs of obtaining or fulfilling a contract as expense when incurred if the amortization period of the asset is one year or less.

Customer billings for services not yet rendered are deferred and recognized as revenue as the services are rendered. The associated deferred revenue is included in Accrued expenses or Other liabilities, as appropriate, in the Condensed Consolidated Balance Sheets.

Refer to Note D, Accounts and Notes Receivable, for further discussion.

B.    NEW ACCOUNTING STANDARDS

Adoption of New Accounting Standards

In March 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-07, Compensation-Retirement Benefits (Topic 715) (“new pension standard”). The new pension standard improves the presentation of net periodic pension cost and net periodic postretirement benefit cost. The Company adopted this standard in the first quarter of 2018 utilizing the full retrospective method. As a result of the adoption, all components other than service cost were reclassified from Cost of sales and Selling, general and administrative to Other, net in the Consolidated Statements of Operations and Comprehensive Income.

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. This 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. The Company adopted these standards in the first quarter of 2018 utilizing the retrospective transition method. The impacts of the new standards relate to the presentation of restricted cash as well as certain cash flows related to the Company's accounts receivable sale program. Refer to Note D, Accounts and Notes Receivable, for further discussion.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“new revenue standard”). The new revenue 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. The standard allows for initial application to be performed retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. During 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 adopted the new revenue recognition standard in the first quarter of 2018 using the full retrospective method. Accordingly, certain prior period amounts have been recast to reflect the financial results of the Company in accordance with the new standard. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings for the earliest balance sheet period presented.

As a result of the adoption of the new revenue standard, outbound freight is recorded as a component of cost of sales as opposed to a reduction of net sales. The new revenue standard also requires companies to record an asset for anticipated customer return of inventory and a sales return reserve at the gross amount of the initial sale, rather than at the net margin amount. Additionally, certain sales to distributors subject to a guarantee with a third-party financier that were previously deferred are now recognized upon shipment in accordance with the new revenue standard and the associated short-term and long-term accounts receivable and short-term and long-term debt balances have been recast. Lastly, for certain product warranties provided to customers that meet the criteria of a service-type warranty, a portion of consideration paid by customers must now be deferred and recognized as revenue over the anticipated service warranty period.

8

As a result of the adoption of the new revenue and pension standards, certain amounts in the Consolidated Statements of Operations and Comprehensive Income for the three and six months ended July 1, 2017 have been recast, as follows:

(Millions of Dollars, except per share amounts)	Three months ended July 1, 20171		Adoption of ASU 2014-09		Adoption of ASU 2017-07			Three months ended July 1, 2017
Net Sales	$	3,229.5	$	57.2	$	—		$	3,286.7
Cost of sales	$	2,017.3	$	55.8	$	0.3		$	2,073.4
Selling, general and administrative	$	733.9	$	—	$	4.7		$	738.6
Provision for doubtful accounts	$	4.8	$	0.8	$	—		$	5.6
Other, net	$	60.3	$	—	$	(5.0	)	$	55.3
Earnings before income taxes	$	357.7	$	0.6	$	—		$	358.3
Income taxes	$	80.5	$	0.2	$	—		$	80.7
Net earnings attributable to common shareowners	$	277.2	$	0.4	$	—		$	277.6
Diluted earnings per share of common stock	$	1.82	$	—	$	—		$	1.82

¹As previously reported in the Company's Form 10-Q for the quarterly period ended July 1, 2017.

(Millions of Dollars, except per share amounts)	Six months ended July 1, 20171		Adoption of ASU 2014-09		Adoption of ASU 2017-07			Six months ended July 1, 2017
Net Sales	$	6,035.1	$	107.9	$	—		$	6,143.0
Cost of sales	$	3,757.6	$	105.6	$	0.5		$	3,863.7
Selling, general and administrative	$	1,410.4	$	—	$	10.2		$	1,420.6
Provision for doubtful accounts	$	13.0	$	0.9	$	—		$	13.9
Other, net	$	166.5	$	—	$	(10.7	)	$	155.8
Earnings before income taxes	$	830.3	$	1.4	$	—		$	831.7
Income taxes	$	160.0	$	0.4	$	—		$	160.4
Net earnings attributable to common shareowners	$	670.3	$	1.0	$	—		$	671.3
Diluted earnings per share of common stock	$	4.41	$	0.01	$	—		$	4.42

¹As previously reported in the Company's Form 10-Q for the year-to-date period ended July 1, 2017.

As a result of the adoption of the new revenue standard, certain balances as of December 30, 2017 in the Condensed Consolidated Balance Sheets have been recast, as follows:

(Millions of Dollars)	Balance at December 30, 20171			Adoption of ASU 2014-09			Balance at December 30, 2017
ASSETS
Accounts and notes receivable, net	$	1,635.9		$	(7.2	)	$	1,628.7
Other assets	$	487.8		$	24.9		$	512.7
LIABILITIES AND SHAREOWNERS' EQUITY
Current maturities of long-term debt	$	983.4		$	(5.9	)	$	977.5
Accrued expenses	$	1,352.1		$	35.6		$	1,387.7
Long-term debt	$	2,843.0		$	(14.8	)	$	2,828.2
Deferred taxes	$	434.2		$	1.9		$	436.1
Other liabilities	$	2,511.1		$	(4.1	)	$	2,507.0
Retained earnings2	$	5,990.4		$	8.3		$	5,998.7
Accumulated other comprehensive loss	$	(1,585.9	)	$	(3.2	)	$	(1,589.1	)

¹As previously reported in the Company's Form 10-K for the year ended December 30, 2017.

²Adjustment includes the cumulative effect of the adoption of $4.3 million for periods prior to fiscal year 2016.

As a result of the adoption of the new revenue and cash flows standards, certain amounts for the three and six months ended July 1, 2017 in the Condensed Consolidated Statements of Cash Flows have been recast, as follows:

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(Millions of Dollars)	Three months ended July 1, 20171			Adoption of ASU 2014-09			Adoption of ASU 2016-15 & 2016-18			Three months ended July 1, 2017
OPERATING ACTIVITIES
Net earnings	$	277.2		$	0.4		$	—		$	277.6
Changes in working capital	$	(159.1	)	$	0.1		$	(104.7	)	$	(263.7	)
Changes in other assets and liabilities	$	21.7		$	(0.5	)	$	—		$	21.2
Cash provided by (used in) operating activities	$	256.5		$	—		$	(104.7	)	$	151.8
INVESTING ACTIVITIES
Proceeds from deferred purchase price receivable	$	—		$	—		$	104.7		$	104.7
Cash used in investing activities	$	(151.1	)	$	—		$	104.7		$	(46.4	)
Change in cash, cash equivalents and restricted cash	$	161.5		$	—		$	—		$	161.5
Cash, cash equivalents and restricted cash, beginning of period	$	378.0		$	—		$	—		$	378.0
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	$	539.5		$	—		$	—		$	539.5

¹As previously reported in the Company's Form 10-Q for the quarterly period ended July 1, 2017.

(Millions of Dollars)	Six months ended July 1, 20171			Adoption of ASU 2014-09			Adoption of ASU 2016-15 & 2016-18			Six months ended July 1, 2017
OPERATING ACTIVITIES
Net earnings	$	670.3		$	1.0		$	—		$	671.3
Changes in working capital	$	(569.3	)	$	0.1		$	(227.8	)	$	(797.0	)
Changes in other assets and liabilities	$	60.9		$	(1.1	)	$	(45.4	)	$	14.4
Cash provided by (used in) operating activities	$	110.9		$	—		$	(273.2	)	$	(162.3	)
INVESTING ACTIVITIES
Proceeds from deferred purchase price receivable	$	—		$	—		$	227.8		$	227.8
Cash used in investing activities	$	(1,870.2	)	$	—		$	227.8		$	(1,642.4	)
Change in cash, cash equivalents and restricted cash	$	(592.3	)	$	—		$	(45.4	)	$	(637.7	)
Cash, cash equivalents and restricted cash, beginning of period	1,131.8			$	—		$	45.4		$	1,177.2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	$	539.5		$	—		$	—		$	539.5

¹As previously reported in the Company's Form 10-Q for the year-to-date period ended July 1, 2017.

In December 2017, the U.S. Securities and Exchange Commission ("SEC") staff issued SAB 118, which provides guidance on accounting for the tax effects of the Tax Cuts and Jobs Act (the “Act”). SAB 118 provides a measurement period that should not extend beyond one year from the Act enactment date for companies to complete the accounting under ASC 740, Income Taxes, (the "measurement period"). In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Act is incomplete but it can determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 based on the provisions of the tax laws that were in effect immediately before the enactment of the Act. The measurement period for accounting for the Act begins in the period of enactment and ends when an entity has obtained, prepared and analyzed the information necessary to complete the accounting requirements under ASC 740, but in no event can the measurement period extend beyond one year. Any provisional amount or adjustment to a provisional amount included in a company’s financial statements during the measurement period should be included in income from continuing operations as an adjustment to tax expense or benefit in the reporting period the amounts are determined. Refer to Note P, Income Taxes, for further discussion.

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In August 2017, the FASB issued ASU 2017-12, Derivatives And Hedging (Topic 815):Targeted Improvements to Accounting for Hedge Activities. The new standard amends the hedge accounting recognition and presentation requirements in ASC 815. As permitted by ASU 2017-12, the Company early adopted this standard in the first quarter of 2018 on a prospective basis. Refer to Note A, Significant Accounting Policies, for the updated financial instruments policy related to the adoption of this standard.

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. The Company adopted this standard in the first quarter of 2018 and it did not have an impact on its consolidated financial statements.

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. The Company adopted this standard prospectively in the first quarter of 2018.

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. The Company adopted this standard in the first quarter of 2018 and it did not have a material impact 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. The Company adopted this standard in the first quarter 2018 and it did not have a material impact on its consolidated financial statements.

Recently Issued Accounting Standards Not Yet Adopted

In July 2018, the FASB issued ASU 2018-09, Codification Improvements.  This standard does not prescribe any new accounting guidance, but instead makes minor improvements and clarifications of several different FASB Accounting Standards Codification areas based on comments and suggestions made by various stakeholders.  Certain updates are applicable immediately while others provide for a transition period to adopt as part of the next fiscal year beginning after December 15, 2018.  The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The new guidance permits, but does not require, companies to reclassify the stranded tax effects of the Act on items within accumulated other comprehensive income to retained earnings. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.

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

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326). The new standard amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ("new lease standard"). The objective of the new lease standard 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. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 (Leases), which provides narrow amendments to clarify how to apply certain aspects of the new lease standard. Both standards are effective for fiscal years beginning after December 15, 2018, including interim

11

periods within those annual periods and are to be applied utilizing a modified retrospective approach. The Company is currently evaluating these standards to determine the impact they may have on its consolidated financial statements.

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 and six months ended June 30, 2018 and July 1, 2017:

	Second Quarter				Year-to-Date
	2018		2017		2018		2017
Numerator (in millions):
Net earnings attributable to common shareowners1	$	293.6	$	277.6	$	464.2	$	671.3
Denominator (in thousands):
Basic weighted-average shares	149,748		149,514		150,101		149,353
Dilutive effect of stock contracts and awards	2,746		2,712		3,023		2,509
Diluted weighted-average shares	152,494		152,226		153,124		151,862
Earnings per share of common stock1:
Basic	$	1.96	$	1.86	$	3.09	$	4.49
Diluted	$	1.93	$	1.82	$	3.03	$	4.42

¹Prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note B, New Accounting Standards, for further discussion.

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):

	Second Quarter		Year-to-Date
	2018	2017	2018	2017
Number of stock options	1,161	—	1,162	1,163

As described in detail in Note J, Equity Arrangements, the Company issued $750 million Equity Units in May 2017 comprised of $750.0 million of convertible preferred stock and forward stock purchase contracts. On and after May 15, 2020, the convertible preferred stock may be converted into common stock at the option of the holder. At the election of the Company, upon conversion, the Company may deliver cash, common stock, or a combination thereof. The conversion rate was initially 6.1627 shares of common stock per one share of convertible preferred stock, which is equivalent to an initial conversion price of approximately $162.27 per share of common stock. As of June 30, 2018, due to the customary anti-dilution provisions, the conversion rate was 6.1709, equivalent to a conversion price of approximately $162.05 per share of common stock. The convertible preferred stock is excluded from the denominator of the diluted earnings per share calculation on the basis that the convertible preferred stock will be settled in cash except to the extent that the conversion value of the convertible preferred stock exceeds its liquidation preference. Therefore, before any redemption or conversion, the common shares that would be required to settle the applicable conversion value in excess of the liquidation preference, if the Company elects to settle such excess in common shares, are included in the denominator of diluted earnings per share in periods in which they are dilutive. The shares related to the convertible preferred stock have been anti-dilutive during most of 2018.

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D.    ACCOUNTS AND NOTES RECEIVABLE

(Millions of Dollars)	June 30, 2018			December 30, 20171
Trade accounts receivable	$	1,952.6		$	1,388.1
Trade notes receivable	145.4			158.7
Other accounts receivable	143.7			162.3
Gross accounts and notes receivable	$	2,241.7		$	1,709.1
Allowance for doubtful accounts	(90.3		)	(80.4		)
Accounts and notes receivable, net	$	2,151.4		$	1,628.7
Long-term receivables, net	$	168.5		$	176.9

¹Certain prior year amounts have been recast as a result of the adoption of new accounting standards. Refer to Note B, New Accounting Standards, for further discussion.

Trade receivables are dispersed among a large number of retailers, distributors and industrial accounts in many countries. Adequate reserves have been established to cover anticipated credit losses. Long-term receivables, net, of $168.5 million and $176.9 million at June 30, 2018 and December 30, 2017, respectively, are reported within Other assets in the Condensed Consolidated Balance Sheets. The Company's financing receivables are predominantly related to certain security equipment leases with commercial businesses. Generally, the Company retains legal title to any equipment 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. The Company’s payment terms are generally consistent with the industries in which their businesses operate and typically range from 30-90 days globally. Additionally, the Company considers the credit quality of all past-due or delinquent financing receivables as nonperforming. The Company does not adjust the promised amount of consideration for the effects of a significant financing component when the period between transfer of the product and receipt of payment is less than one year. Any significant financing components for contracts greater than one year are included in revenue over time.

Prior to January 2018, the Company had an accounts receivable sale program. According to the terms of that program, the Company was required to sell certain of its trade accounts receivables at fair value to a wholly-owned, consolidated, bankruptcy-remote special purpose subsidiary (“BRS”). The BRS, in turn, was required to sell such receivables to a third-party financial institution (“Purchaser”) for cash and a deferred purchase price receivable. The Purchaser’s maximum cash investment in the receivables at any time was $100.0 million. The purpose of the program was to provide liquidity to the Company. The Company accounted for these transfers as sales under ASC 860, Transfers and Servicing. Receivables were derecognized from the Company’s consolidated balance sheet when the BRS sold those receivables to the Purchaser. The Company had no retained interests in the transferred receivables, other than collection and administrative responsibilities and its right to the deferred purchase price receivable. In January 2018, the Company signed an amendment that changed the structure of this program which eliminated the deferred purchase price receivable from the Purchaser and resulted in the BRS retaining ownership of the trade accounts receivables. This program was then terminated on February 1, 2018.

At December 30, 2017, $100.8 million of net receivables were derecognized. Gross receivables sold amounted to $549.3 million ($464.0 million, net) and $1,003.1 million ($852.9 million, net) for the three and six months ended July 1, 2017, respectively. These sales resulted in a pre-tax loss of $1.9 million and $3.3 million, respectively, and included servicing fees of $0.4 million and $0.6 million, respectively, for the three and six months ended July 1, 2017. Proceeds from transfers of receivables to the Purchaser totaled $444.1 million and $781.1 million for the three and six months ended July 1, 2017, respectively. Collections of previously sold receivables, including deferred purchase price receivables, and all fees, which are settled one month in arrears, resulted in payments to the Purchaser of $408.7 million and $781.1 million for the three and six months ended July 1, 2017, respectively.

The Company’s risk of loss following the sale of the receivables is limited to the deferred purchase price receivable, which was $106.9 million at December 30, 2017. The deferred purchase price receivable settled in full in January 2018, and historically was repaid in cash as receivables were collected, generally within 30 days. As such the carrying value of the receivable recorded at December 30, 2017 approximated fair value. There were no delinquencies or credit losses for the three and six months ended July 1, 2017. Cash inflows related to the deferred purchase price receivable totaled $104.7 million and $227.8 million for the three and six months ended July 1, 2017, respectively. In accordance with the adoption of the new cash flows

13

standards described in Note B, New Accounting Standards, the proceeds related to the deferred purchase price receivable are classified as investing activities.

As of June 30, 2018 and December 30, 2017, the Company's deferred revenue totaled $188.2 million and $117.0 million respectively, of which $93.3 million and $95.6 million, respectively, was classified as current.

Revenue recognized for the three months ended June 30, 2018 and July 1, 2017 that was previously deferred as of December 30, 2017 and December 31, 2016 totaled $18.9 million and $15.2 million, respectively. Revenue recognized for the six months ended June 30, 2018 and July 1, 2017 that was previously deferred as of December 30, 2017 and December 31, 2016 totaled $93.5 million and $81.4 million, respectively.

As of June 30, 2018, approximately $1.155 billion of revenue from long-term contracts primarily in the Security segment was unearned related to customer contracts which were not completely fulfilled and will be recognized on a decelerating basis over the next 5 years. This amount excludes any of the Company's contracts with an original expected duration of one year or less.

E. INVENTORIES

The components of Inventories, net at June 30, 2018 and December 30, 2017 are as follows:

(Millions of Dollars)	June 30, 2018		December 30, 2017
Finished products	$	1,734.8	$	1,461.4
Work in process	197.3		155.5
Raw materials	512.1		401.5
Total	$	2,444.2	$	2,018.4

F.    ACQUISITIONS

2018 ACQUISITIONS

Nelson Fasteners Systems

On April 2, 2018, the Company acquired the industrial business of Nelson Fastener Systems ("Nelson") from the Doncasters Group, for $430.4 million, net of cash acquired and an estimated working capital adjustment. Nelson is complementary to the Company's product offerings, enhances its presence in the general industrial end markets, expands its portfolio of highly-engineered fastening solutions, and will deliver cost synergies. The results of Nelson are being consolidated into the Industrial segment.

The Nelson 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 identifiable net assets acquired, which includes $67.5 million of working capital and $174.0 million of intangible assets, is $227.0 million. The related goodwill is $203.4 million. The amount allocated to intangible assets includes $150.0 million for customer relationships. The useful lives assigned to the intangible assets range from 12 to 15 years.

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

The purchase price allocation for Nelson is preliminary in all respects. During the measurement period, the Company expects to record adjustments relating to the finalization of intangible assets, inventory and property, plant and equipment valuations, working capital accounts, leases, pension liabilities, various opening balance sheet contingencies, including environmental remediation, 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.

14

Other 2018 Acquisitions

During the second quarter of 2018, the Company completed four smaller acquisitions for a total purchase price of $84.3 million, net of cash acquired. The estimated fair value of the identifiable net assets acquired, which includes $13.9 million of working capital and $36.8 million of intangible assets, is $30.6 million. The related goodwill is $53.7 million. The amount allocated to intangible assets includes $24.4 million for customer relationships. The useful lives assigned to intangible assets ranges from 10 and 12 years.

The purchase price allocation for these acquisitions is preliminary in all respects. During the measurement period, the Company expects to record adjustments relating to the finalization of valuations for intangible assets, working capital accounts, and various opening balance sheet contingencies and various income tax matters, amongst others. These adjustments are not expected to have a material impact on the Company’s condensed consolidated financial statements.

2017 ACQUISITIONS

Newell Tools

On March 9, 2017, the Company acquired Newell Tools for approximately $1.86 billion, net of cash acquired. The Newell Tools results have been consolidated into the Company's Tools & Storage segment.

The Newell Tools acquisition was accounted for as a business combination. The purchase price allocation for Newell Tools was completed during the first quarter of 2018. The measurement period adjustments recorded in the first quarter of 2018 did not have a material impact to the Company's condensed consolidated financial statements. The following table summarizes the estimated fair values of major assets acquired and liabilities assumed:

(Millions of Dollars)
Cash and cash equivalents	$	20.0
Accounts and notes receivable, net	19.7
Inventories, net	195.5
Prepaid expenses and other current assets	27.1
Property, plant and equipment, net	112.4
Trade names	283.0
Customer relationships	548.0
Other assets	8.8
Accounts payable	(70.3		)
Accrued expenses	(40.7		)
Deferred taxes	(269.4		)
Other liabilities	(7.9		)
Total identifiable net assets	$	826.2
Goodwill	1,031.8
Total consideration paid	$	1,858.0

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

Goodwill was calculated as the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined business, assembled workforce, and the going concern nature of Newell Tools. It is estimated that $15.7 million of goodwill, relating to the pre-acquisition historical tax basis of goodwill, will be deductible for tax purposes.

Refer to Note E, Acquisitions, of the Company's Form 10-K for the year ended December 30, 2017 for further discussion.

15

Craftsman Brand

On March 8, 2017, the Company purchased the Craftsman® brand from Sears Holdings Corporation ("Sears Holdings") for a total estimated cash purchase price of $916.2 million on a discounted basis, which consists of an initial cash payment of $568.2 million, a cash payment due in March 2020 with an estimated present value at acquisition date of $234.0 million, and future payments to Sears Holdings of between 2.5% and 3.5% on sales of Craftsman products in new Stanley Black & Decker channels through March 2032, which was valued at $114.0 million at the acquisition date based on estimated future sales projections. Refer to Note M, Fair Value Measurements, for additional details. In addition, as part of the acquisition the Company also granted a perpetual license to Sears Holdings to continue selling Craftsman®-branded products in Sears Holdings-related channels. The perpetual license will be royalty-free until March 2032, which represents an estimated value of approximately $293.0 million, and 3% thereafter. The Craftsman results have been consolidated into the Company's Tools & Storage segment.

The Craftsman® brand acquisition was accounted for as a business combination. The purchase price allocation for Craftsman was completed during the first quarter of 2018. The measurement period adjustments recorded in the first quarter of 2018 did not have a material impact on the Company's condensed consolidated financial statements. The estimated fair value of identifiable net assets acquired, which includes $40.2 million of working capital and $418.0 million of intangible assets, is $482.6 million. The related goodwill is $726.6 million. The amount allocated to intangible assets includes $396.0 million of an indefinite-lived trade name. The useful life assigned to the customer relationships is 17 years.

Goodwill was calculated as the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined business and the going concern nature of the Craftsman® brand. It is estimated that $442.7 million of goodwill will be deductible for tax purposes.

Refer to Note E, Acquisitions, of the Company's Form 10-K for the year ended December 30, 2017 for further discussion.

Other 2017 Acquisitions

During 2017, the Company completed four smaller acquisitions for a total purchase price of $182.9 million, net of cash acquired, which are being consolidated into the Company's Tools & Storage and Security segments. The estimated fair value of the identifiable net assets acquired, which includes $38.2 million of working capital and $54.4 million of intangible assets, is $89.4 million. The related goodwill is $93.5 million. The amount allocated to intangible assets includes $51.4 million for customer relationships. The useful lives assigned to the customer relationships range between 10 and 15 years.

The purchase price allocation for these acquisitions is substantially complete. The Company will complete its purchase price allocation in the third quarter of 2018. Any measurement period adjustments resulting from the finalization of the Company's purchase accounting assessment are not expected to be material.

ACTUAL AND PRO-FORMA IMPACT OF THE ACQUISTIONS

Actual Impact from Acquisitions

The net sales and net losses from 2018 acquisitions included in the Company's Consolidated Statements of Operations and Comprehensive Income are $66.1 million and $11.3 million, respectively, for both the three and six months ended June 30, 2018. 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 2017 and 2018 acquisitions had occurred on January 1, 2017. The pro-forma consolidated results are not necessarily indicative of what the Company’s consolidated net sales and net earnings would have been had the Company completed the acquisitions on January 1, 2017. In addition, the pro-forma consolidated results do not purport to project the future results of the Company.

	Second Quarter				Year-to-Date
(Millions of Dollars, except per share amounts)	2018		2017		2018		2017
Net sales	$	3,651.4	$	3,394.1	$	6,930.2	$	6,505.4
Net earnings attributable to common shareowners	$	306.6	$	276.9	$	480.4	$	667.7
Diluted earnings per share	$	2.01	$	1.82	$	3.14	$	4.40

16

2018 Pro-forma Results

The 2018 pro-forma results were calculated by combining the results of Stanley Black & Decker with the stand-alone results of the 2018 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 December 31, 2017 to the acquisition dates.

• Additional depreciation expense for the property, plant, and equipment fair value adjustments that would have been incurred from December 31, 2017 to the acquisition date of Nelson.

• Because the 2018 acquisitions were assumed to occur on January 1, 2017, there were no deal costs or inventory step-up amortization factored into the 2018 pro-forma year, as such expenses would have occurred in the first year following the acquisition.

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 and 2018 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 of Newell Tools and Craftsman and from January 1, 2017 to July 1, 2017 for the remaining 2017 and 2018 acquisitions.

• Additional depreciation expense for the property, plant, and equipment fair value adjustments that would have been incurred from January 1, 2017 to the acquisition date of Newell Tools and from January 1, 2017 to July 1, 2017 for Nelson.

• 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			Industrial			Security			Total
Balance December 30, 2017	$	5,189.7		$	1,454.4		$	2,132.0		$	8,776.1
Acquisition adjustments	40.8			203.9			44.0			288.7
Foreign currency translation	(61.4		)	(3.8		)	(51.9		)	(117.1		)
Balance June 30, 2018	$	5,169.1		$	1,654.5		$	2,124.1		$	8,947.7

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H.    LONG-TERM DEBT AND FINANCING ARRANGEMENTS

Long-term debt and financing arrangements at June 30, 2018 and December 30, 2017 are as follows:

		June 30, 2018																December 30, 2017
(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 2
Notes payable due 2018	2.45%	$	632.5	$	—		$	—		$	—	$	(0.7	)	$	631.8		$	630.9
Notes payable due 2018	1.62%	345.0		—			—			—		(0.4		)	344.6			344.1
Notes payable due 2021	3.40%	400.0		(0.1		)	11.8			—		(1.1		)	410.6			412.1
Notes payable due 2022	2.90%	754.3		(0.3		)	—			—		(2.7		)	751.3			750.9
Notes payable due 2028	7.05%	150.0		—			10.9			10.6		—			171.5			172.6
Notes payable due 2040	5.20%	400.0		(0.2		)	(32.7		)	—		(3.0		)	364.1			363.3
Notes payable due 2052 (junior subordinated)	5.75%	750.0		—			—			—		(18.7		)	731.3			731.0
Notes payable due 2053 (junior subordinated)	5.75%	400.0		—			4.7			—		(8.0		)	396.7			396.6
Other, payable in varying amounts through 2022	0.00% - 4.50%	8.2		—			—			—		—			8.2			4.2
Total long-term debt, including current maturities		$	3,840.0	$	(0.6	)	$	(5.3	)	$	10.6	$	(34.6	)	$	3,810.1		$	3,805.7
Less: Current maturities of long-term debt															(978.9		)	(977.5		)
Long-term debt															$	2,831.2		$	2,828.2

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

²Certain prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note B, New Accounting Standards, for further discussion.

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 June 30, 2018, the Company had $1.1 billion of borrowings outstanding against the Company’s $3.0 billion commercial paper program, of which approximately $924.5 million in Euro denominated commercial paper was designated as a Net Investment Hedge as described in more detail in Note I, Financial Instruments. As of December 30, 2017, the Company had no commercial paper borrowings outstanding.

The Company has a five-year $1.75 billion committed credit facility (the “Credit Agreement”). Borrowings under the Credit Agreement may include U.S. Dollars up to the $1.75 billion commitment or in Euro or Pounds Sterling subject to a foreign currency sub-limit of $400.0 million and bear interest at a floating rate dependent upon the denomination of the borrowing. Repayments must be made on December 18, 2020 or upon an earlier termination date of the Credit Agreement, at the election of the Company. The Credit Agreement is designated to be a liquidity back-stop for the Company's $3.0 billion U.S. Dollar and Euro commercial paper program. As of June 30, 2018 and December 30, 2017, the Company had not drawn on its existing five-year $1.75 billion committed credit facility.

The Company also has a 364-day $1.25 billion committed credit facility (the "2017 Credit Agreement") executed in December 2017. The 2017 Credit Agreement consists of a $1.25 billion revolving credit loan and a sub-limit of an amount equal to the Euro equivalent of $400 million for swing line advances. Borrowings under the 2017 Credit Agreement may be made in U.S. Dollars or Euros, pursuant to the terms of the agreement, and bear interest at a floating rate dependent on the denomination of the borrowing. Repayments must be made by December 19, 2018 or upon an earlier termination of the 2017 Credit Agreement at the election of the Company. The Company also has the option at the termination date to convert all advances into a term loan provided certain requirements are met. The 2017 Credit Agreement serves as a liquidity back-stop for the Company’s $3.0 billion U.S. Dollar and Euro commercial paper program. As of June 30, 2018 and December 30, 2017, the Company had not drawn on this commitment.

In January 2017, the Company executed a 364-day $1.25 billion committed credit facility which consisted of a $1.25 billion revolving credit loan and a sub-limit of an amount equal to the Euro equivalent of $400 million for swing line advances. Borrowings under this credit agreement were made in U.S. Dollars or Euros, pursuant to the terms of the agreement, and bore interest at a floating rate dependent on the denomination of the borrowing. This credit agreement was terminated in December 2017 at the election of the Company.

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I.    FINANCIAL INSTRUMENTS

In the first quarter of 2018, the Company elected to early adopt ASU 2017-12, Derivatives And Hedging (Topic 815):Targeted Improvements to Accounting for Hedge Activities, which amends the hedge accounting recognition and presentation requirements of ASC 815. ASU 2017-12 requires the presentation and disclosure requirements to be applied prospectively and as a result, certain disclosures for the three and six month periods ending July 1, 2017 conform to the presentation and disclosure requirements prior to the adoption.

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

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

A summary of the fair values of the Company’s derivatives recorded in the Condensed Consolidated Balance Sheets at June 30, 2018 and December 30, 2017 is as follows: 

(Millions of Dollars)	Balance Sheet Classification	June 30, 2018		December 30, 2017		Balance Sheet Classification	June 30, 2018		December 30, 2017
Derivatives designated as hedging instruments:
Interest Rate Contracts Cash Flow	Other current assets	$	—	$	—	Accrued expenses	$	33.9	$	55.7
Foreign Exchange Contracts Cash Flow	Other current assets	7.3		4.1		Accrued expenses	5.4		33.4
	LT other assets	1.8		—		LT other liabilities	1.0		5.2
Net Investment Hedge	Other current assets	10.2		6.6		Accrued expenses	1.5		7.0
	LT other assets	—		—		LT other liabilities	15.8		5.8
Non-derivative designated as hedging instrument:
Net Investment Hedge		—		—		Short-term borrowings	924.5		—
Total designated as hedging		$	19.3	$	10.7		$	982.1	$	107.1
Derivatives not designated as hedging instruments:
Foreign Exchange Contracts	Other current assets	$	17.6	$	7.3	Accrued expenses	$	21.3	$	6.9
Total		$	36.9	$	18.0		$	1,003.4	$	114.0

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 six months ended June 30, 2018 and July 1, 2017, cash flows related to derivatives, including those that are separately discussed below, resulted in net cash received of $23.5 million and $22.8 million, respectively.

19

CASH FLOW HEDGES

There were after-tax mark-to-market losses of $57.3 million and $112.6 million as of June 30, 2018 and December 30, 2017, respectively, reported for cash flow hedge effectiveness in Accumulated other comprehensive loss. An after-tax loss of $29.8 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 of derivatives designated as cash flow hedges in Accumulated other comprehensive loss for active derivatives during the periods in which the underlying hedged transactions affected earnings for the three and six months ended June 30, 2018 and July 1, 2017: 

	Second Quarter 2018
(Millions of dollars)	Gain (Loss) Recorded in  OCI		Classification of Gain (Loss) Reclassified from OCI to Income	Gain (Loss) Reclassified from OCI to Income			Gain (Loss) Recognized in Income on Amounts Excluded from Effectiveness Testing
Interest Rate Contracts	$	3.8	Interest expense	$	—		$	—
Foreign Exchange Contracts	$	29.7	Cost of sales	$	(9.2	)	$	—

	Year-to-Date 2018
(Millions of dollars)	Gain (Loss) Recorded in OCI		Classification of Gain (Loss) Reclassified from OCI to Income	Gain (Loss) Reclassified from OCI to Income			Gain (Loss) Recognized in Income on Amounts Excluded from Effectiveness Testing
Interest Rate Contracts	$	21.8	Interest expense	$	—		$	—
Foreign Exchange Contracts	$	23.0	Cost of sales	$	(12.0	)	$	—

	Second Quarter 2017
(Millions of dollars)	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	$	(11.0	)	Interest expense	$	—	$	—
Foreign Exchange Contracts	$	(29.9	)	Cost of sales	$	5.2	$	—

	Year-to-Date 2017
(Millions of dollars)	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	$	(7.2	)	Interest expense	$	—	$	—
Foreign Exchange Contracts	$	(38.6	)	Cost of sales	$	9.7	$	—

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

20

A summary of the pre-tax effect of cash flow hedge accounting on the Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June 30, 2018 is as follows:

	Second Quarter 2018						Year-to-Date 2018
(Millions of dollars)	Cost of Sales			Interest Expense			Cost of Sales			Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Income in which the effects of the cash flow hedges are recorded	$	2,356.5		$	69.0		$	4,400.1		$	132.2
Gain (loss) on cash flow hedging relationships:
Foreign Exchange Contracts:
Hedged Items	$	9.2		$	—		$	12.0		$	—
Gain (loss) reclassified from OCI into Income	$	(9.2	)	$	—		$	(12.0	)	$	—
Interest Rate Swap Agreements:
Gain (loss) reclassified from OCI into Income 1	$	—		$	(3.8	)	$	—		$	(7.6	)

¹ Inclusive of the gain/loss amortization on terminated derivative financial instruments.

For the three and six months ended July 1, 2017, the hedged items’ impact to the Consolidated Statements of Operations and Comprehensive Income was a loss of $5.2 million and $9.7 million, respectively in Cost of sales. There was no impact related to the interest rate contracts' hedged items for all periods presented.

An after-tax loss of $7.1 million and an after-tax gain of $1.0 million was reclassified from Accumulated other comprehensive loss into earnings (inclusive of the gain/loss amortization on terminated derivative instruments) for the three months ended June 30, 2018 and July 1, 2017, respectively. An after-tax loss of $11.7 million and an after-tax gain of $1.4 million was reclassified from Accumulated other comprehensive loss into earnings (inclusive of the gain/loss amortization on terminated derivative instruments) for the six months ended June 30, 2018 and July 1, 2017, respectively, 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 June 30, 2018 and December 30, 2017, the Company had forward starting interest rate swaps on $400 million of future debt issuances 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 interest expense as the future interest expense on debt is recognized in earnings.

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 are recorded in Cost of sales as the hedged item affects earnings. There are no components excluded from the assessment of effectiveness for these contracts. At June 30, 2018 and December 30, 2017, the notional value of forward currency contracts outstanding was $264.1 million and $559.9 million, respectively, maturing on various dates through 2018.

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 are recorded in Cost of sales as the hedged item affects earnings. There are no components excluded from the assessment of effectiveness for these contracts. As of June 30, 2018 and December 30, 2017, the notional value of purchased option contracts was $375.5 million and $400.0 million, respectively, maturing on various dates through 2019.

21

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 prior years, the Company entered into interest rate swaps related to certain of its notes payable which were subsequently terminated. Amortization of the gain/loss on previously terminated swaps is reported as a reduction of interest expense. Prior to termination, the changes in the fair value of the swaps and the offsetting changes in fair value related to the underlying notes were recognized in earnings. As of June 30, 2018 and December 30, 2017, the Company did not have any active fair value interest rate swaps.

A summary of the pre-tax effect of fair value hedge accounting on the Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June 30, 2018 is as follows:

(Millions of dollars)	Second Quarter 2018 Interest Expense		Year-to-Date 2018 Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Income in which the effects of the fair value hedges are recorded	$	69.0	$	132.2
Amortization of gain/loss on terminated swaps	$	0.8	$	1.6

Amortization of the gain/loss on terminated swaps of $0.8 million and $1.6 million is reported as a reduction of interest expense for the three and six months ended July 1, 2017, respectively.

A summary of the amounts recorded on the balance sheet related to cumulative basis adjustments for fair value hedges for the six months ended June 30, 2018 is as follows:

	Year-to-Date 2018
(Millions of dollars)	Carrying Amount of Hedged Liability		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability
Current Maturities of Long-Term Debt	$	—	Terminated Swaps	$	3.2
Long-Term Debt	$	—	Terminated Swaps	$	(8.4	)

NET INVESTMENT HEDGES

The Company utilizes net investment hedges to offset the translation adjustment arising from re-measurement of its investment in the assets and liabilities of its foreign subsidiaries. The total after-tax amounts in Accumulated other comprehensive loss were a gain of $46.8 million and $3.4 million at June 30, 2018 and December 30, 2017, respectively.

As of June 30, 2018, the Company had foreign exchange forward contracts maturing on various dates in 2018 with notional values totaling $701.4 million outstanding hedging a portion of its British pound sterling, 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; an option contract with a notional value totaling $36.2 million maturing in 2018 hedging a portion of its Mexican peso denominated net investment; and Euro denominated commercial paper with a value of $924.5 million maturing in 2018 hedging a portion of its Euro denominated net investments. As of December 30, 2017, the Company had foreign exchange contracts maturing on various dates through 2018 with notional values totaling $751.2 million outstanding hedging a portion of its British pound sterling, Mexican peso, Swedish krona, Euro and Canadian dollar denominated net investments, and a cross currency swap with a notional value totaling $250.0 million maturing in 2023 hedging a portion of its Japanese yen denominated net investment.

Maturing foreign exchange contracts resulted in net cash received of $20.3 million and net cash paid of $3.7 million for the six months ended June 30, 2018 and July 1, 2017, respectively.

Gains and losses on net investment hedges remain in Accumulated other comprehensive income (loss) until disposal of the underlying assets. Upon adoption of ASU 2017-12, gains and losses representing components excluded from the assessment of effectiveness are recognized in earnings in Other, net on a straight-line basis over the term of the hedge. Prior to the adoption of ASU 2017-12, no components were excluded from the assessment of effectiveness. Refer to Note B, New Accounting Standards, for further discussion.

The pre-tax gain or loss from fair value changes for the three and six ended June 30, 2018 and July 1, 2017 was as follows:

22

	Second Quarter 2018
(Millions of Dollars)	Total Gain (Loss) Recorded in OCI		Excluded Component Recorded in OCI		Income Statement Classification	Total Gain (Loss) Reclassified from OCI to Income		Excluded Component Amortized from OCI to Income
Forward Contracts	$	48.7	$	2.3	Other, net	$	2.3	$	2.3
Cross Currency Swap	$	1.4	$	1.4	Other, net	$	1.7	$	1.7
Option Contracts	$	2.6	$	—	Other, net	$	—	$	—
Non-derivative designated as Net Investment Hedge	$	51.5	$	—	Other, net	$	—	$	—

	Year-to-Date 2018
(Millions of Dollars)	Total Gain (Loss) Recorded in OCI			Excluded Component Recorded in OCI		Income Statement Classification	Total Gain (Loss) Reclassified from OCI to Income		Excluded Component Amortized from OCI to Income
Forward Contracts	$	22.2		$	6.2	Other, net	$	4.1	$	4.1
Cross Currency Swap	$	2.9		$	8.3	Other, net	$	3.4	$	3.4
Option Contracts	$	(0.9	)	$	—	Other, net	$	—	$	—
Non-derivative designated as Net Investment Hedge	$	38.9		$	—	Other, net	$	—	$	—

	Second Quarter 2017							Year-to-Date 2017
(Millions of Dollars)	Amount Recorded in  OCI Gain (Loss)			Effective Portion Recorded in  Income Statement		Ineffective Portion* Recorded in Income Statement		Amount Recorded in  OCI Gain (Loss)			Effective Portion Recorded in  Income Statement		Ineffective Portion* Recorded in Income Statement
Other, net	$	(73.3	)	$	—	$	—	$	(89.0	)	$	—	$	—

*Includes ineffective portion and amount excluded from effectiveness testing.

UNDESIGNATED HEDGES

Foreign Exchange Contracts: 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 is to minimize the impact of foreign currency fluctuations on operating results. The total notional amount of the forward contracts outstanding at June 30, 2018 was $1.4 billion, maturing on various dates through 2018. The total notional amount of the forward contracts outstanding at December 30, 2017 was $1.0 billion, maturing on various dates through 2018. The impacts of changes in the fair value related to derivatives not designated as hedging instruments under ASC 815 for the three and six months ended June 30, 2018 and July 1, 2017 are as follows: 

(Millions of Dollars)	Income Statement Classification	Second Quarter 2018 Amount of Gain (Loss) Recorded in Income on Derivative			Year-to-Date 2018 Amount of Gain (Loss) Recorded in Income on Derivative
Foreign Exchange Contracts	Other, net	$	(2.2	)	$	14.9

(Millions of Dollars)	Income Statement Classification	Second Quarter 2017 Amount of Gain (Loss) Recorded in Income on Derivative		Year-to-Date 2017 Amount of Gain (Loss) Recorded in Income on Derivative
Foreign Exchange Contracts	Other, net	$	1.1	$	29.7

J.    EQUITY ARRANGEMENTS

In April 2018, the Company repurchased 1,399,732 shares of common stock for approximately $200.0 million.

23

In March 2018, the Company purchased from a financial institution “at-the-money” capped call options with an approximate term of three years, on 3.2 million shares of its common stock (subject to customary anti-dilution adjustments) for an aggregate premium of $57.3 million, or an average of $17.96 per share. The premium paid was recorded as a reduction of Shareowners’ equity. The purpose of the capped call options is to hedge the risk of stock price appreciation between the lower and upper strike prices of the capped call options for a future share repurchase.

The capped call has an initial lower strike price of $156.86 and an upper strike price of $203.92, which is approximately 30% higher than the closing price of the Company's common stock on March 13, 2018. As of June 30, 2018, there has been no change to the upper and lower strike prices. The aggregate fair value of the options at June 30, 2018 was $34.8 million.

The capped call transactions may be settled by net share settlement (the default settlement method) or, at the Company’s option and subject to certain conditions, cash settlement, physical settlement or modified physical settlement. The number of shares the Company will receive will be determined by the terms of the contracts using a volume-weighted-average price calculation for the market value of the Company's common stock, over an averaging period. The market value determined will then be measured against the applicable strike price of the capped call transactions.

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 June 2018, the Company amended the settlement date to April 2021, 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.

$750 Million Equity Units and Capped Call Transactions

In May 2017, the Company issued 7,500,000 Equity Units with a total notional value of $750.0 million (“$750 million Equity Units”). Each unit has a stated amount of $100 and initially consists of a three-year forward stock purchase contract (“2020 Purchase Contracts”) for the purchase of a variable number of shares of common stock, on May 15, 2020, for a price of $100, and a 10% beneficial ownership interest in one share of 0% Series C Cumulative Perpetual Convertible Preferred Stock, without par, with a liquidation preference of $1,000 per share (“Series C Preferred Stock”). The Company received approximately $727.5 million in cash proceeds from the $750 million Equity Units, net of underwriting costs and commissions, before offering expenses, and issued 750,000 shares of Series C Preferred Stock, recording $750.0 million in preferred stock. The proceeds were used for general corporate purposes, including repayment of short-term borrowings. The Company also used $25.1 million of the proceeds to enter into capped call transactions utilized to hedge potential economic dilution as described in more detail below.

Convertible Preferred Stock

In May 2017, the Company issued 750,000 shares of Series C Preferred Stock, without par, with a liquidation preference of $1,000 per share. The convertible preferred stock will initially not bear any dividends and the liquidation preference of the convertible preferred stock will not accrete. The convertible preferred stock has no maturity date, and will remain outstanding unless converted by holders or redeemed by the Company. Holders of shares of the convertible preferred stock will generally have no voting rights. The Series C Preferred Stock is pledged as collateral to support holders’ purchase obligations under the 2020 Purchase Contracts and can be remarketed. In connection with any successful remarketing, the Company may (but is not required to) modify certain terms of the convertible preferred stock, including the dividend rate, the conversion rate, and the earliest redemption date. After any successful remarketing in connection with which the dividend rate on the convertible preferred stock is increased, the Company will pay cumulative dividends on the convertible preferred stock, if declared by the board of directors, quarterly in arrears from the applicable remarketing settlement date.

On and after May 15, 2020, the Series C Preferred Stock may be converted into common stock at the option of the holder. The initial conversion rate was 6.1627 shares of common stock per one share of Series C Preferred Stock, which is equivalent to an initial conversion price of approximately $162.27 per share of common stock. As of June 30, 2018, due to the customary anti-dilution provisions, the conversion rate was 6.1709, equivalent to a conversion price of approximately $162.05 per share of common stock. At the election of the Company, upon conversion, the Company may deliver cash, common stock, or a combination thereof.

The Company may not redeem the Series C Preferred Stock prior to June 22, 2020. At the election of the Company, on or after June 22, 2020, the Company may redeem for cash, all or any portion of the outstanding shares of the Series C Preferred Stock at a redemption price equal to 100% of the liquidation preference, plus any accumulated and unpaid dividends. If the Company calls the Series C Preferred Stock for redemption, holders may convert their shares immediately preceding the redemption date.

24

2020 Purchase Contracts

The 2020 Purchase Contracts obligate the holders to purchase, on May 15, 2020, for a price of $100 in cash, a maximum number of 5.4 million shares of the Company’s common stock (subject to customary anti-dilution adjustments). The 2020 Purchase Contract holders may elect to settle their obligation early, in cash. The Series C Preferred Stock is pledged as collateral to guarantee the holders’ obligations to purchase common stock under the terms of the 2020 Purchase Contracts. The initial settlement rate determining the number of shares that each holder must purchase will not exceed the maximum settlement rate, and is determined over a market value averaging period immediately preceding May 15, 2020.

The initial maximum settlement rate of 0.7241 was calculated using an initial reference price of $138.10, equal to the last reported sale price of the Company's common stock on May 11, 2017. As of June 30, 2018, due to the customary anti-dilution provisions, the maximum settlement rate was 0.7251, equivalent to a reference price of $137.92. If the applicable market value of the Company's common stock is less than or equal to the reference price, the settlement rate will be the maximum settlement rate; and if the applicable market value of common stock is greater than the reference price, the settlement rate will be a number of shares of the Company's common stock equal to $100 divided by the applicable market value. Upon settlement of the 2020 Purchase Contracts, the Company will receive additional cash proceeds of $750 million.

The Company will make quarterly payments ("Contracts Adjustment Payments") to the holders of the 2020 Purchase Contracts at a rate of 5.375% per annum, payable quarterly in arrears on February 15, May 15, August 15 and November 15, commencing August 15, 2017. The $117.1 million present value of the Contract Adjustment Payments reduced Shareowners’ Equity at inception. As each quarterly Contract Adjustment Payment is made, the related liability is reduced and the difference between the cash payments and the present value will accrete to interest expense, approximately $1.3 million per year over the three-year term. As of June 30, 2018, the present value of the Contract Adjustment Payments was $78.3 million.

The holders can settle the purchase contracts early, for cash, subject to certain exceptions and conditions in the prospectus supplement. Upon early settlement of any purchase contracts, the Company will deliver the number of shares of its common stock equal to 85% of the number of shares of common stock that would have otherwise been deliverable.

2017 Capped Call Transactions

In order to offset the potential economic dilution associated with the common shares issuable upon conversion of the Series C Preferred Stock, to the extent that the conversion value of the convertible preferred stock exceeds its liquidation preference, the Company entered into capped call transactions with three major financial institutions.

The capped call transactions have a term of approximately three years and are intended to cover the number of shares issuable upon conversion of the Series C Preferred Stock. Subject to customary anti-dilution adjustments, the capped call had an initial lower strike price of $162.27, which corresponds to the minimum 6.1627 settlement rate of the Series C Preferred Stock, and an upper strike price of $179.53, which is approximately 30% higher than the closing price of the Company's common stock on May 11, 2017. As of June 30, 2018, due to the customary anti-dilution provisions, the capped call transactions had an adjusted lower strike price of $162.05 and an adjusted upper strike price of $179.29.

The capped call transactions may be settled by net share settlement (the default settlement method) or, at the Company’s option and subject to certain conditions, cash settlement, physical settlement or modified physical settlement. The number of shares the Company will receive will be determined by the terms of the contracts using a volume-weighted-average price calculation for the market value of the Company's common stock, over an averaging period. The market value determined will then be measured against the applicable strike price of the capped call transactions. The Company expects the capped call transactions to offset the potential dilution upon conversion of the Series C Preferred Stock if the calculated market value is greater than the lower strike price but less than or equal to the upper strike price of the capped call transactions. Should the calculated market value exceed the upper strike price of the capped call transactions, the dilution mitigation will be limited based on such capped value as determined under the terms of the contracts.

With respect to the impact on the Company, the 2017 capped call transactions and $750 million Equity Units, when taken together, result in the economic equivalent of having the conversion price on $750 million Equity Units at $179.29, the upper strike of the capped call as of June 30, 2018.

In May 2017, the Company paid $25.1 million, or an average of $5.43 per option, to enter into capped call transactions on 4.6 million shares of common stock. The $25.1 million premium paid was a reduction of Shareowners’ Equity. The aggregate fair value of the options at June 30, 2018 was $16.2 million.

25

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 other1			Unrealized gains (losses) on cash flow hedges, net of tax			Unrealized gains (losses) on net investment hedges, net of tax			Pension gains (losses), net of tax			Total
Balance - December 30, 2017	$	(1,108.2	)	$	(112.6	)	$	3.4		$	(371.7	)	$	(1,589.1	)
Other comprehensive (loss) income before reclassifications	(294.9		)	43.6			49.3			7.1			(194.9		)
Reclassification adjustments to earnings	—			11.7			(5.9		)	5.8			11.6
Net other comprehensive (loss) income	(294.9		)	55.3			43.4			12.9			(183.3		)
Balance - June 30, 2018	$	(1,403.1	)	$	(57.3	)	$	46.8		$	(358.8	)	$	(1,772.4	)

¹Certain prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note B, New Accounting Standards, for further discussion.

(Millions of Dollars)	Currency translation adjustment and other1			Unrealized gains (losses) on cash flow hedges, net of tax			Unrealized gains (losses) on net investment hedges, net of tax			Pension gains (losses), net of tax			Total
Balance - December 31, 2016	$	(1,586.7	)	$	(46.3	)	$	88.6		$	(377.2	)	$	(1,921.6	)
Other comprehensive income (loss) before reclassifications	298.0			(44.7		)	(57.8		)	(20.3		)	175.2
Adjustments related to sales of businesses	4.7			—			—			2.6			7.3
Reclassification adjustments to earnings	—			(1.4		)	—			14.9			13.5
Net other comprehensive income (loss)	302.7			(46.1		)	(57.8		)	(2.8		)	196.0
Balance - July 1, 2017	$	(1,284.0	)	$	(92.4	)	$	30.8		$	(380.0	)	$	(1,725.6	)

¹Certain prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note B, New Accounting Standards, for further discussion.

The reclassifications out of Accumulated other comprehensive loss for the six months ended June 30, 2018 and July 1, 2017 were as follows:

(Millions of Dollars)	2018			2017			Affected line item in Consolidated Statements of Operations And Comprehensive Income
Realized gains (losses) on cash flow hedges	$	(12.0	)	$	9.7		Cost of sales
Realized gains (losses) on cash flow hedges	(7.6		)	(7.6		)	Interest expense
Total before taxes	$	(19.6	)	$	2.1
Tax effect	7.9			(0.7		)	Income taxes
Realized gains (losses) on cash flow hedges, net of tax	$	(11.7	)	$	1.4
Realized gains (losses) on net investment hedges	$	7.5		$	—		Other, net
Tax effect	(1.6		)	—			Income taxes
Realized gains (losses) on net investment hedges, net of tax	$	5.9		$	—
Amortization of defined benefit pension items:
Actuarial losses and prior service costs / credits	$	(7.8	)	$	(8.0	)	Other, net
Settlement loss	—			(12.8		)	Other, net
Total before taxes	$	(7.8	)	$	(20.8	)
Tax effect	2.0			5.9			Income taxes
Amortization of defined benefit pension items, net of tax	$	(5.8	)	$	(14.9	)

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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 and six months ended June 30, 2018 and July 1, 2017:

	Second Quarter
	Pension Benefits												Other Benefits
	U.S. Plans						Non-U.S. Plans						All Plans
(Millions of Dollars)	2018			2017			2018			2017			2018			2017
Service cost	$	2.0		$	2.1		$	3.8		$	3.3		$	0.2		$	0.2
Interest cost	11.0			10.9			7.2			7.1			0.4			0.3
Expected return on plan assets	(17.5		)	(16.1		)	(11.8		)	(11.2		)	—			—
Amortization of prior service cost (credit)	0.3			0.2			(0.2		)	(0.3		)	(0.4		)	(0.4		)
Amortization of net loss	2.0			2.3			2.3			2.3			—			—
Settlement / curtailment loss	—			—			0.1			0.3			—			—
Net periodic pension (benefit) expense	$	(2.2	)	$	(0.6	)	$	1.4		$	1.5		$	0.2		$	0.1

	Year-to-Date
	Pension Benefits												Other Benefits
	U.S. Plans						Non-U.S. Plans						All Plans
(Millions of Dollars)	2018			2017			2018			2017			2018			2017
Service cost	$	3.8		$	4.4		$	7.7		$	6.6		$	0.3		$	0.3
Interest cost	21.4			21.6			14.7			14.1			0.8			0.7
Expected return on plan assets	(34.3		)	(32.2		)	(24.0		)	(22.2		)	—			—
Amortization of prior service cost (credit)	0.5			0.5			(0.6		)	(0.6		)	(0.7		)	(0.7		)
Amortization of net loss	3.9			4.2			4.7			4.6			—			—
Settlement / curtailment loss	—			—			0.2			12.8			—			—
Net periodic pension (benefit) expense	$	(4.7	)	$	(1.5	)	$	2.7		$	15.3		$	0.4		$	0.3

In accordance with the adoption of ASU 2017-07, the components of net periodic benefit cost other than the service cost component are included in Other, net in the Consolidated Statements of Operations and Comprehensive Income.

For the three and six months ended July 1, 2017, the Company recorded pre-tax charges of approximately $0.3 million and $12.8 million, respectively, 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

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 is exposed to market risk from changes in foreign currency exchange rates, interest rates, stock prices and commodity prices. The Company holds various financial instruments to manage these risks. These financial instruments are carried at fair value and are included within the scope of ASC 820. The Company determines the fair value of these financial

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instruments through the use of matrix or model pricing, which utilizes observable inputs such as market interest and currency rates. When determining fair value 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 Carrying Value		Level 1		Level 2		Level 3
June 30, 2018
Money market fund	$	10.8	$	10.8	$	—	$	—
Derivative assets	$	36.9	$	—	$	36.9	$	—
Derivative liabilities	$	78.9	$	—	$	78.9	$	—
Non-derivative hedging instrument	$	—	$	—	$	924.5	$	—
Contingent consideration liability	$	115.0	$	—	$	—	$	115.0
December 30, 2017
Money market fund	$	11.6	$	11.6	$	—	$	—
Derivative assets	$	18.0	$	—	$	18.0	$	—
Derivative liabilities	$	114.0	$	—	$	114.0	$	—
Contingent consideration liability	$	114.0	$	—	$	—	$	114.0

The following table provides information about the Company's financial assets and liabilities not carried at fair value.

	June 30, 2018				December 30, 20171
(Millions of Dollars)	Carrying Value		Fair Value		Carrying Value		Fair Value
Other investments	$	7.6	$	7.8	$	7.6	$	7.9
Long-term debt, including current portion	$	3,810.1	$	3,925.6	$	3,805.7	$	3,991.0

¹Certain prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note B, New Accounting Standards, for further discussion.

The money market fund and other investments related to the West Coast Loading Corporation ("WCLC") trust are considered Level 1 instruments within the fair value hierarchy. The long-term debt instruments are considered Level 2 instruments and are measured using a discounted cash flow analysis based on the Company’s marginal borrowing rates. The differences between the carrying values and fair values of long-term debt are attributable to the stated interest rates differing from the Company's marginal borrowing rates. The fair values of the Company's variable rate short-term borrowings approximate their carrying values at June 30, 2018 and December 30, 2017. The fair values of the derivative financial instruments in the table above are based on current settlement values.

As discussed in Note F, Acquisitions, the Company recorded a contingent consideration liability relating to the Craftsman® brand acquisition representing the Company's obligation to make future payments to Sears Holdings of between 2.5% and 3.5% on sales of Craftsman products in new Stanley Black & Decker channels through March 2032, which was valued at $114.0 million as of the acquisition date. The first payment is due the first quarter of 2020 relating to royalties owed for the previous eleven quarters, and future payments will be due quarterly through the first quarter of 2032. The estimated fair value was determined using a discounted cash flow analysis based on future sales projections and contractual royalty rates. A 100 basis point reduction in the discount rate would have resulted in an increase to the liability of approximately $8 million as of the acquisition date. The liability may fluctuate in the future if there are changes to sales projections or the discount rate as a result of actual sales levels or changes in market conditions. There was no significant change in the fair value of the contingent consideration as of June 30, 2018.

The Company had no significant non-recurring fair value measurements, nor any other financial assets or liabilities measured using Level 3 inputs, during the first six months of 2018 or 2017.

As discussed in Note D, Accounts And Notes Receivable, the Company had a deferred purchase price receivable related to sales of trade receivables. The deferred purchase price receivable was settled in full in January 2018, and historically was repaid in cash as receivables were collected, generally within 30 days. The carrying value of the receivable as of December 30, 2017 approximated fair value.

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Refer to Note I, Financial Instruments, for more details regarding derivative 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, acquisition-related transaction and consulting costs, and certain pension gains or losses. During the three and six months ended June 30, 2018, Other, net included $9.4 million and $15.3 million in acquisition-related transaction and consulting costs, respectively, and a $77.7 million environmental remediation charge related to a recently announced settlement with the Environmental Protection Agency ("EPA"). Refer to Note R, Commitments and Contingencies, for further discussion of the EPA settlement. During the three and six months ended July 1, 2017, Other, net included $5.6 million and $45.6 million of acquisition-related transaction and consulting costs, respectively.

O.    RESTRUCTURING CHARGES

A summary of the restructuring reserve activity from December 30, 2017 to June 30, 2018 is as follows:

(Millions of Dollars)	December 30, 2017		Net Additions		Usage			Currency			June 30, 2018
Severance and related costs	$	20.0	$	32.8	$	(22.9	)	$	(0.9	)	$	29.0
Facility closures and asset impairments	3.2		3.5		(5.0		)	—			1.7
Total	$	23.2	$	36.3	$	(27.9	)	$	(0.9	)	$	30.7

For the six months ended June 30, 2018, the Company recognized net restructuring charges of $36.3 million. This amount reflects $32.8 million of net severance charges associated with the reduction of approximately 1,000 employees and $3.5 million of facility closure and other restructuring costs.

For the three months ended June 30, 2018, the Company recognized net restructuring charges of $13.4 million. This amount reflects $10.5 million of net severance charges associated with the reduction of approximately 594 employees. The Company also had $2.9 million of facility closure and other restructuring costs.

The majority of the $30.7 million of reserves remaining as of June 30, 2018 is expected to be utilized within the next 12 months.

Segments: The $36 million of net restructuring charges for the six months ended June 30, 2018 includes: $15 million pertaining to the Tools & Storage segment; $5 million pertaining to the Industrial segment; $12 million pertaining to the Security segment; and $4 million pertaining to Corporate.

The $13 million of net restructuring charges for the three months ended June 30, 2018 includes: $7 million pertaining to the Tools & Storage segment; $2 million pertaining to the Industrial segment; $3 million pertaining to the Security segment and $1 million pertaining to Corporate.

P. INCOME TAXES

The Company recognized income tax expense of $1.0 million and $82.7 million for the three and six months ended June 30, 2018, resulting in effective tax rates of 0.3% and 15.1%, respectively. Excluding the impacts of the aforementioned EPA settlement in the second quarter of 2018, the tax charge recorded in the first quarter of 2018 related to the recently enacted U.S. tax legislation, and the acquisition-related charges, the effective tax rates were 7.0% and 13.4% for the three and six months ended June 30, 2018, respectively. These effective tax rates differ from the U.S. statutory tax rate during these periods primarily due to tax on foreign earnings and the effective settlements of income tax audits.

The Company recognized income tax expense of $80.7 million and $160.4 million for the three and six months ended July 1, 2017, respectively, resulting in effective tax rates of 22.5% and 19.3%, respectively. The effective tax rates differed from the U.S. statutory tax rate during these periods primarily due to a portion of the Company’s earnings being realized in lower-taxed foreign jurisdictions, the utilization of U.S. tax attributes during the first quarter of 2017 due to the divestiture of the mechanical security businesses and the favorable settlement of certain income tax audits during the second quarter of 2017. Non-deductible transaction costs and other acquisition-related restructuring items partially offset the net tax benefits mentioned above for the three and six months ended July 1, 2017. Excluding the tax impact of the divestitures and acquisition-related charges for the three and six months ended July 1, 2017, the effective tax rates were 23.5% and 24.1%, respectively.

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The Company is subject to examinations by taxing authorities in U.S. federal, state, and foreign jurisdictions. The Company considers many factors when evaluating and estimating its tax positions and the impact on income tax expense, which may require periodic adjustments and which may not accurately anticipate actual outcomes. It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company's unrecognized tax positions will significantly increase or decrease within the next 12 months. 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 reasonably estimate the impact of any such change.

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act. As of June 30, 2018, the Company has not completed its accounting for the tax effects of the enactment of the Act; however, in certain cases (as described below), the Company has made a reasonable estimate of the effects on its existing deferred tax balances and the one-time transition tax. In other cases, the Company has not been able to make a reasonable estimate and continues to account for those items based on its existing accounting under ASC 740, Income Taxes, and the provisions of the tax laws that were in effect immediately prior to enactment.

During the first quarter of 2018, the Company recorded a provisional charge of $23.1 million as an adjustment to the provisional amounts recorded at December 30, 2017 related to the re-measurement of deferred tax assets and liabilities, and liabilities for unrecognized tax benefits. The provisional charges were included as a component of income taxes on the Consolidated Statements of Operations and Comprehensive Income.

The Company operates in many countries throughout the world through numerous subsidiaries. In order to complete the accounting associated with the Act, the Company will continue to accumulate the relevant data, refine computational elements, monitor and analyze U.S. federal and state guidance if and when issued, and adjust its provisional estimates accordingly within the measurement period prescribed by SAB 118. Any adjustments could be material to income tax expense.

Provisional amounts

Deferred tax assets and liabilities: The Company remeasured certain deferred tax assets and liabilities based on the U.S. tax rates at which they are expected to become realized in the future. The provisional amount recorded in 2017 related to the re-measurement of its deferred tax balance resulted in a decrease to tax expense of approximately $252.5 million as of December 30, 2017. Upon further analysis of certain aspects of the Act and refinement of the calculations during the first quarter of 2018, the Company adjusted the provisional amount by $17.4 million as an increase to tax expense, which is included as a component of income taxes on the Consolidated Statements of Operations and Comprehensive Income. The Company is still analyzing certain aspects of the Act and refining its estimate, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts.

International provision tax effects: As of December 30, 2017, the Company recorded a provisional amount for the one-time transition tax on undistributed foreign earnings, resulting in an increase to income tax expense of $276.1 million comprised of an accrued provisional income tax payable of approximately $460.7 million, partially offset by the reversal of the deferred tax liability of approximately $184.6 million associated with certain legacy Black & Decker unremitted foreign earnings and profits which were previously designated as not being indefinitely reinvested. The remaining deferred tax liability on unremitted foreign earnings of $4.9 million represents withholding taxes which will become payable upon distribution. The Company is still analyzing certain aspects of the Act and refining its estimate, which may be adjusted, possibly materially, due to changes in interpretations and assumptions the Company has made, guidance that may be issued and actions the Company may take as a result of the Act.

Q.    BUSINESS SEGMENTS AND GEOGRAPHIC AREAS

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

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

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

The Industrial segment is comprised of the Engineered Fastening and Infrastructure businesses. The Engineered Fastening business primarily sells engineered fastening products and systems designed for specific applications. The product lines include blind rivets and tools, blind inserts and tools, drawn arc weld studs and systems, engineered plastic and mechanical fasteners, self-piercing riveting systems, precision nut running systems, micro fasteners, and high-strength structural fasteners. The Infrastructure business consists of the Oil & Gas and Hydraulics businesses. The Oil & Gas business sells and rents custom pipe handling, joint welding and coating equipment used in the construction of large and small diameter pipelines, and provides pipeline inspection services. The Hydraulics business sells hydraulic tools and accessories.

The Security segment is comprised of the Convergent Security Solutions ("CSS") and Mechanical Access Solutions ("MAS") businesses. The CSS business designs, supplies and installs commercial electronic security systems and provides electronic security services, including alarm monitoring, video surveillance, fire alarm monitoring, systems integration and system maintenance. Purchasers of these systems typically contract for ongoing security systems monitoring and maintenance at the time of initial equipment installation. The business also sells healthcare solutions, which include asset tracking, infant protection, pediatric protection, patient protection, wander management, fall management, and emergency call products. The MAS business primarily sells automatic doors.

The Company utilizes segment profit, which is defined as net sales minus cost of sales and SG&A inclusive of the provision for doubtful accounts (aside from corporate overhead expense), and segment profit as a percentage of net sales to assess the profitability of each segment. Segment profit excludes the corporate overhead expense element of SG&A, other, net (inclusive of intangible asset amortization expense), gain or loss on sales of businesses, pension settlement, restructuring charges, interest expense, interest income, 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. Net sales and long-lived assets are attributed to the geographic regions based on the geographic locations of the end customer and the Company subsidiary, respectively.

	Second Quarter						Year-to-Date
(Millions of Dollars)	2018			20171			2018			20171
NET SALES
Tools & Storage	$	2,567.8		$	2,307.4		$	4,783.6		$	4,202.3
Industrial	573.1			503.4			1,077.3			983.1
Security	502.7			475.9			992.0			957.6
Total	$	3,643.6		$	3,286.7		$	6,852.9		$	6,143.0
SEGMENT PROFIT
Tools & Storage	$	398.6		$	371.9		$	700.0		$	656.4
Industrial	85.5			94.7			166.0			179.8
Security	48.1			51.8			93.6			102.5
Segment profit	532.2			518.4			959.6			938.7
Corporate overhead	(50.9		)	(49.3		)	(98.2		)	(93.9		)
Other, net	119.3			55.3			177.3			155.8
Loss (gain) on sales of businesses	0.8			0.9			0.8			(268.3		)
Pension settlement	—			0.3			—			12.8
Restructuring charges	13.4			8.0			36.3			23.8
Interest expense	69.0			56.0			132.2			107.3
Interest income	(15.6		)	(9.7		)	(31.4		)	(18.3		)
Earnings before income taxes	$	294.4		$	358.3		$	546.2		$	831.7

¹Certain prior year amounts have been recast as a result of the adoption of the new revenue and pension standards. Refer to Note B, New Accounting Standards, for further discussion.

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As described in Note A, Significant Accounting Policies, the Company recognizes revenue at a point in time from the sale of tangible products or over time depending on when the performance obligation is satisfied. For the three and six months ended June 30, 2018 and July 1, 2017, the majority of the Company’s revenue was recognized at the time of sale. The following table provides the percent of total segment revenue recognized over time for the Industrial and Security segments for the three and six months ended June 30, 2018 and July 1, 2017:

	Second Quarter				Year-to-Date
(Millions of Dollars)	2018		2017		2018		2017
Industrial	10.3	%	14.5	%	10.6	%	12.9	%
Security	43.9	%	49.6	%	46.1	%	47.8	%

The following table is a further disaggregation of the Industrial segment revenue for the three and six months ended June 30, 2018 and July 1, 2017:

	Second Quarter				Year-to-Date
(Millions of Dollars)	2018		2017		2018		2017
Engineered Fastening	$	468.2	$	388.8	$	880.0	$	778.8
Infrastructure	104.9		114.6		197.3		204.3
Industrial	$	573.1	$	503.4	$	1,077.3	$	983.1

The following table is a summary of total assets by segment as of June 30, 2018 and December 30, 2017:

(Millions of Dollars)	June 30, 2018			December 30, 20171
Tools & Storage	$	13,367.5		$	12,817.5
Industrial	3,896.7			3,413.3
Security	3,453.0			3,406.9
	20,717.2			19,637.7
Corporate assets	(537.6		)	(540.0		)
Consolidated	$	20,179.6		$	19,097.7

¹Certain prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note B, New Accounting Standards, for further discussion.

Corporate assets primarily consist of cash, deferred taxes and property, plant and equipment. Based on the nature of the Company's cash pooling arrangements, the corporate-related cash accounts will be in a net liability position at times.

GEOGRAPHIC AREAS

The following table is a summary of net sales by geographic area for the three and six months ended June 30, 2018 and July 1, 2017:

	Second Quarter				Year-to-Date
(Millions of Dollars)	2018		20171		2018		20171
United States	$	2,004.9	$	1,807.5	$	3,673.8	$	3,347.4
Canada	165.5		143.1		309.7		275.9
Other Americas	206.9		199.0		392.2		357.0
France	160.4		153.0		323.2		302.1
Other Europe	785.4		701.6		1,540.7		1,321.5
Asia	320.5		282.5		613.3		539.1
Consolidated	$	3,643.6	$	3,286.7	$	6,852.9	$	6,143.0

¹Certain prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note B, New Accounting Standards, for further discussion.

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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 the normal course of business, the Company is a party to administrative proceedings and litigation, before federal and state regulatory agencies, relating to environmental remediation with respect to claims involving the discharge of hazardous substances into the environment, generally at current and former manufacturing facilities. In addition, some of these claims assert that the Company is responsible for damages and liability, for remedial investigation and clean-up costs, with respect to sites that have never been owned or operated by the Company but the Company has been identified as a potentially responsible party ("PRP").

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 at current and former manufacturing facilities and has also been named as a PRP in certain administrative proceedings.

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 26 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 June 30, 2018 and December 30, 2017, the Company had reserves of $250.7 million and $176.1 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 2018 amount, $28.7 million is classified as current and $222.0 million as long-term which is expected to be paid over the estimated remediation period. The range of environmental remediation costs that is reasonably possible is $218.1 million to $351.6 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.

As of June 30, 2018, the Company has recorded $12.2 million in other assets related to funding received by the Environmental Protection Agency (“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. As of June 30, 2018, the Company's net cash obligation associated with remediation activities including WCLC assets is $238.5 million.

The EPA has also 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 contested the EPA's selection of the remedial alternative

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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. disputed the factual, legal and scientific bases cited by the EPA for such an administrative 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 administrative order at this time. Black & Decker and Emhart Industries, Inc. continue to vigorously litigate the issue of their liability for environmental conditions at the Centredale site, including the completion of the Phase 1 trial in late July, 2015 and the completion of the Phase 2 trial in April, 2017. The Court in Phase 1 of the trial found that dioxin contamination at the Centredale site was not "divisible," and that Emhart was jointly and severally liable for dioxin contamination at the site. In its Phase 2 Findings of Fact and Conclusions of Law, entered on August 17, 2017, the Court found that certain components of the EPA's selected remedy were arbitrary and capricious, and remanded the matter to the EPA while retaining jurisdiction over the ongoing remedy selection and implementation process. The Court also held in Phase 2 that Black and Decker had sufficient cause for its declination to comply with the EPA's June 10, 2014 administrative order and that no associated civil penalties or fines were warranted. The United States filed a Motion for Reconsideration concerning the Court's Phase 2 rulings and appealed the ruling to the United States Court of Appeals for the First Circuit. Emhart's Motion to Dismiss the Appeal was denied without prejudice for consideration with the merits. On July 9, 2018, a Consent Decree was lodged with the United States District Court documenting the terms of a settlement between the Company and the United States for reimbursement of EPA's past costs and remediation of environmental contamination found at the Centredale site. The terms of the Consent Decree are subject to public comment and Court approval. Once approved and entered, the settlement will resolve outstanding issues relating to Phase 1 and 2 of the litigation with the United States. The 3rd Phase of the litigation and trial, which is in its relatively early stages, will address the potential allocation of liability to other PRPs who may have contributed to contamination of the Centredale site with dioxins, polychlorinated biphenyls and other contaminants of concern. Based on the Company's estimated remediation and response cost obligations arising out of the Settlement reached with the United States (including the EPA’s past costs as well as costs of additional investigation, remediation, and related costs such as EPA’s oversight costs), the Company has increased its reserve for this site by $77.7 million to $145.8 million. Accordingly, in June 2018, the $77.7 million increase was recorded in Other, net in the Consolidated Statements of Operations and Comprehensive Income.

The Company and approximately 47 other companies comprise the Lower Passaic Cooperating Parties Group (the “CPG”). The CPG members and other companies are parties to a May 2007 Administrative Settlement Agreement and Order on Consent (“AOC”) with the EPA to perform a remedial investigation/feasibility study (“RI/FS”) of the lower seventeen miles of the Lower Passaic River in New Jersey (the “River”). The Company’s potential liability stems from former operations in Newark, New Jersey. As an interim step related to the 2007 AOC, on June 18, 2012,the CPG members voluntarily entered into an AOC with the EPA for remediation actions focused solely at mile 10.9 of the River. The Company’s estimated costs related to the RI/FS and focused remediation action at mile 10.9, based on an interim allocation, are included in its environmental reserves. On April 11, 2014, the EPA issued a Focused Feasibility Study (“FFS”) and proposed plan which addressed various early action remediation alternatives for the lower 8.3 miles of the River. The EPA received public comment on the FFS and proposed plan (including comments from the CPG and other entities asserting that the FFS and proposed plan do not comply with CERCLA) which public comment period ended on August 20, 2014. The CPG submitted to the EPA a draft RI report in February 2015 and draft FS report in April 2015 for the entire lower seventeen miles of the River. On March 4, 2016, the EPA issued a Record of Decision selecting the remedy for the lower 8.3 miles of the River. The cleanup plan adopted by the EPA is now considered a final action for the lower 8.3 miles of the River and will include the removal of 3.5 million cubic yards of sediment, placement of a cap over the entire lower 8.3 miles of the River, and, according to the EPA, will cost approximately $1.4 billion and take 6 years to implement after the remedial design is completed. (The EPA estimates that the remedial design will take four years to complete.) The Company and 105 other parties received a letter dated March 31, 2016 from the EPA notifying such parties of potential liability for the costs of the cleanup of the lower 8.3 miles of the River and a letter dated March 30, 2017 stating that the EPA had offered 20 of the parties (not including the Company) an early cash out settlement. In a letter dated May 17, 2017, the EPA stated that these 20 parties did not discharge any of the eight hazardous substances identified as the contaminants of concern in the lower 8.3 mile ROD. In the March 30, 2017 letter, the EPA stated that other parties who did not discharge dioxins, furans or polychlorinated biphenyls (which are considered the contaminants of concern posing the greatest risk to human health or the environment) may also be eligible for cash out settlement, but expects those parties' allocation to be determined through a complex settlement analysis using a third-party allocator. The Company asserts that it did not discharge dioxins, furans or polychlorinated biphenyls and should be eligible for a cash out settlement. On September 30, 2016, Occidental Chemical Corporation ("OCC") entered into an agreement with the EPA to perform the remedial design for the cleanup plan for the lower 8.3 miles of the River. On June 30, 2018, OCC filed a complaint in the United States District Court for the District of New Jersey against over 100 companies, including the Company, seeking CERCLA cost recovery or contribution for past costs relating to various investigations and cleanups OCC has conducted or is conducting in connection with the River. According to the complaint, OCC has incurred or is incurring costs which includes the estimated cost to complete the remedial design for the cleanup plan for the lower 8.3 miles of the River. OCC also seeks a declaratory judgment

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to hold the defendants liable for their proper shares of future response costs, including the remedial action for the lower 8.3 miles of the River. 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. 

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 estimated to cost approximately $68.7 million. Accordingly, in the first quarter of 2017, the Company increased its reserve by $17.1 million which was recorded in Other, net in the Consolidated Statements of Operations and Comprehensive Income.

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 June 30, 2018 are as follows:

(Millions of Dollars)	Term	Maximum Potential Payment		Carrying Amount of Liability
Guarantees on the residual values of leased assets	One to four years	$	100.4	$	—
Standby letters of credit	Up to three years	74.3		—
Commercial customer financing arrangements	Up to six years	71.0		7.3
Total		$	245.7	$	7.3

The Company has guaranteed a portion of the residual values of leased assets arising from its synthetic lease program. The lease guarantees are for an amount up to $100.4 million while the fair value of the underlying assets is estimated at $118.9 million. The related assets would be available to satisfy the guarantee obligations and therefore it is unlikely the Company will incur any future loss associated with these guarantees.

The Company has issued $74.3 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 $71.0 million and the $7.3 million carrying value of the guarantees issued is recorded in other liabilities in the Condensed Consolidated Balance Sheets.

The Company provides warranties on certain products across its businesses. The types of product warranties offered generally range from one year to limited lifetime. 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 warranties for the six months ended June 30, 2018 and July 1, 2017 are as follows:

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(Millions of Dollars)	2018			2017
Balance beginning of period1	$	108.5		$	103.4
Warranties and guarantees issued	53.9			50.4
Warranty payments and currency	(58.3		)	(47.1		)
Balance end of period	$	104.1		$	106.7

¹ 2018 beginning of period balance has been recast as a result of the adoption of new accounting standards. Refer to Note B, New Accounting Standards, for further discussion.

T.    DIVESTITURES

On January 3, 2017, the Company sold a business within the Tools & Storage segment for approximately $26 million. On February 22, 2017, the Company sold the majority of its mechanical security businesses within the Security segment, which includes the commercial hardware brands of Best Access, phi Precision and GMT, for net proceeds of approximately $717 million. As a result of these sales, the Company recognized a pre-tax gain of $268.3 million in the first half of 2017, primarily related to the sale of the mechanical security businesses. Pre-tax income for these businesses totaled $0.6 million during the first quarter of 2017.

The Company also sold a small business in the Industrial segment during the third quarter of 2017 and a small business in the Tools & Storage segment during the fourth quarter of 2017 for total proceeds of approximately $14 million. During the second quarter of 2018, the Company recognized a $0.8 million charge as a result of the finalization of the purchase price for the Tools & Storage business sold during the fourth quarter of 2017.

The above disposals did not 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, the operating results of these businesses are included in the Company's continuing operations through their respective dates of sale in 2017.

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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, engineered fastening systems and products, services and equipment for oil & gas and infrastructure applications, commercial electronic security and monitoring systems, healthcare solutions, and mechanical access solutions (primarily automatic doors). 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 remains focused on organic growth with margin expansion, including increasing its presence in emerging markets, and leveraging the Stanley Fulfillment System ("SFS 2.0"), which focuses on digital excellence, commercial excellence, breakthrough innovation, core SFS operating principles and functional transformation. In addition, the Company continues to make strides towards achieving its 22/22 Vision of reaching $22 billion in revenue by 2022 while expanding the margin rate, by becoming known as one of the world’s leading innovators, delivering top-quartile financial performance and elevating its commitment to social responsibility.

In April 2018, the Company acquired the industrial business of Nelson Fastener Systems ("Nelson"), which enhances its presence in the general industrial end markets and expands its portfolio of highly-engineered fastening solutions.

In March 2017, the Company acquired the Tools business of Newell Brands ("Newell Tools"), which has strengthened its presence in the global tools industry, and the Craftsman® brand, which granted the Company the rights to develop, manufacture and sell Craftsman®-branded products in non-Sears Holdings channels. Furthermore, in February 2017, the Company sold the majority of its mechanical security businesses, which allowed 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 30, 2017 for additional strategic discussions.

Segments

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

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 $9.0 billion in 2017, representing 70% 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.

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

Industrial

The Industrial segment is comprised of the Engineered Fastening and Infrastructure businesses. Annual revenues in the Industrial segment were $2.0 billion in 2017, representing 15% 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 blind rivets and tools, blind inserts and tools, drawn arc weld studs and systems, engineered plastic and mechanical fasteners, self-piercing riveting systems, precision nut running systems, micro fasteners, and high-strength structural fasteners.

The Infrastructure business consists of the Oil & Gas and Hydraulics businesses. The Oil & Gas business sells and rents custom pipe handling, joint welding and coating equipment used in the construction of large and small diameter pipelines, and provides pipeline inspection services. The Hydraulics business sells hydraulic tools and accessories.

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 $1.9 billion in 2017, representing 15% of the Company’s total revenues.

The CSS business designs, supplies and installs commercial electronic security systems and provides electronic security services, including alarm monitoring, video surveillance, fire alarm monitoring, systems integration and system maintenance. Purchasers of these systems typically contract for ongoing security systems monitoring and maintenance at the time of initial equipment installation. The business also sells healthcare solutions, which include asset tracking, infant protection, pediatric protection, patient protection, wander management, fall management, and emergency call products. The MAS business primarily sells automatic doors.

Acquisitions

On April 2, 2018, the Company acquired Nelson from the Doncasters Group, which is being integrated into the Engineered Fastening business. This acquisition is complementary to the Company's product offerings, enhances its presence in the general industrial end markets, expands its portfolio of highly-engineered fastening solutions, and will deliver cost synergies.

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

On March 8, 2017, the Company purchased the Craftsman® brand from Sears Holdings, which provided 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.

Refer to Note F, Acquisitions, for further discussion.

Divestitures

On February 22, 2017, the Company sold the majority of its mechanical security businesses, which included the commercial hardware brands of Best Access, phi Precision and GMT. The sale allowed the Company to deploy capital in a more accretive and growth-oriented manner.

Refer to Note T, Divestitures, for further discussion.

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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, gain or loss on sales of businesses, environmental settlement charge, and tax charge related to the recently enacted U.S. tax legislation. The results and measures, including gross profit and segment profit, on a basis excluding these amounts are considered relevant to aid analysis and understanding of the Company’s results and business trends aside from the material impact of these items. These amounts are as follows:

Second Quarter and Year-To-Date 2018

The Company reported $127 million and $152 million in pre-tax charges during the second quarter and year-to-date 2018 periods, respectively, which were comprised of the following:

• $9 million and $11 million for the second quarter and year-to-date 2018 periods, respectively, reducing Gross Profit primarily pertaining to amortization of the inventory step-up adjustment for the Nelson acquisition in the second quarter of 2018 and facility-related charges;

• $26 million and $42 million for the second quarter and year-to-date 2018 periods, respectively, in SG&A primarily for integration-related costs and consulting fees;

• $87 million and $93 million for the second quarter and year-to-date 2018 periods, respectively, in Other, net primarily related to the recently announced settlement with the Environmental Protection Agency ("EPA") and deal transaction costs;

• $1 million for the second quarter and year-to-date 2018 periods related to a previously divested business; and

• $4 million and $5 million for the second quarter and year-to-date 2018 periods, respectively, in Restructuring charges pertaining to facility closures and employee severance.

The tax effect on the above charges during the second quarter of 2018 was $29 million, resulting in after-tax charges of $98 million, or $0.64 per diluted share.

On a year-to-date basis, the tax effect on the above charges was $34 million. The Company also recorded a $23 million tax charge in the first quarter of 2018 related to the recently enacted U.S. tax legislation. The above charges, as well as the tax charge relating to the recently enacted U.S. tax legislation, resulted in net after-tax charges of $141 million, or $0.92 per diluted share, in the first half of 2018.

Second Quarter and Year-To-Date 2017

The Company reported $42 million in pre-tax charges during the second quarter of 2017 and a $168 million pre-tax gain during the first half of 2017, respectively, which were comprised of the following:

• $26 million and $33 million for the second quarter and year-to-date 2017 periods, respectively, reducing Gross Profit pertaining to amortization of the inventory step-up adjustments for the Newell Tools and Craftsman® brand acquisitions;

• $8 million and $19 million for the second quarter and year-to-date 2017 periods, respectively, in SG&A primarily for integration-related costs and consulting fees;

• $6 million and $46 million for the second quarter and year-to-date 2017 periods, respectively, in Other, net primarily for deal transaction costs;

• $268 million gain relating to the sales of the majority of the mechanical security businesses and a small business in the Tools & Storage segment in the first quarter of 2017; and

• $2 million for the second quarter and year-to-date 2017 periods in Restructuring charges pertaining to employee severance.

The tax effect on the above charges during the second quarter of 2017 was $13 million, resulting in after-tax charges of $29 million, or $0.19 per diluted share. On a year-to-date basis, the above amounts resulted in a net after-tax gain of $168 million, or $1.10 per diluted share.

2018 Outlook

This outlook discussion is intended to provide broad insight into the Company’s near-term earnings and cash flow generation prospects. The Company is revising its 2018 diluted earnings per share outlook to $7.00 to $7.20, from $7.40 to $7.60, reflecting the recently announced settlement with the EPA regarding the remediation of the Centredale Superfund site. The Company is reiterating its diluted earnings per share range, excluding acquisition-related charges, the aforementioned

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environmental settlement, and tax charges related to the recently enacted U.S. tax legislation, of $8.30 to $8.50, and its free cash flow conversion estimate, defined as free cash flow divided by net income, of approximately 100%. The Company has changed the following assumptions for 2018 from its prior outlook: incremental price, cost and productivity actions will approximate $0.48 of accretion per diluted share, higher organic volume expectations will approximate $0.12 of incremental accretion per diluted share, benefits from the $200 million share repurchase executed in the second quarter of 2018 will approximate $0.10 of accretion per diluted share, foreign currency impacts from the strengthening of the U.S. dollar during the second quarter of 2018 will result in approximately $0.40 of incremental dilution to earnings per share, and higher commodity inflation expectations, including the impact from the initial $34 billion of section 301 tariffs, will result in approximately $0.30 of incremental dilution to earnings per share.

RESULTS OF OPERATIONS

Below is a summary of the Company’s operating results at the consolidated level, followed by an overview of business segment performance. Certain amounts reported in the previous year have been recast as a result of the retrospective adoption of new accounting standards in the first quarter of 2018. Refer to Note B, New Accounting Standards, for further discussion.

Terminology: The term “organic” is utilized to describe results aside from the impacts of foreign currency fluctuations, acquisitions during their initial 12 months of ownership, and divestitures. This ensures appropriate comparability to operating results of prior periods.

Net Sales: Net sales were $3.644 billion in the second quarter of 2018 compared to $3.287 billion in the second quarter of 2017, representing an increase of 11% fueled by strong organic growth of 7%, which includes a one point contribution from price. Acquisitions, primarily Nelson, and foreign currency increased sales by 3% and 1%, respectively. Tools & Storage net sales increased 11% compared to the second quarter of 2017 due to strong volume growth of 9%, price of 1% from initial actions in response to commodity inflation and currency pressure, and favorable foreign currency of 1%. Industrial net sales increased 14% compared to the second quarter of 2017 primarily due to acquisition growth of 11% and favorable foreign currency of 3%. Net sales in the Security segment increased 6% compared to the second quarter of 2017 driven by bolt-on commercial electronic security acquisitions of 4%, favorable foreign currency of 3% and price of 1%, partially offset by lower volume of 2%.

Net sales were $6.853 billion in the first half of 2018 compared to $6.143 billion in the first half of 2017, representing an increase of 12% with strong organic growth of 6%. Acquisitions, primarily Newell Tools and Nelson, and foreign currency increased sales by 4% and 3%, respectively, while the impact of businesses sold decreased sales by 1%. Tools & Storage net sales increased 14% compared to the first half of 2017 due to strong organic growth of 8%, fueled by solid growth across all regions, acquisition growth of 4% and favorable foreign currency of 2%. Industrial net sales increased 10% compared to the first half of 2017 primarily due to acquisition growth of 6% and favorable foreign currency of 5%, partially offset by a 1% decrease due to a business sold in the third quarter of 2017. Net sales in the Security segment increased 4% compared to the first half of 2017 due to a 1% increase in price and a 4% increase in both foreign currency and small bolt-on commercial electronic security acquisitions, which more than offset declines of 3% from the sale of the majority of the mechanical security businesses and 2% from lower volumes.

Gross Profit: Gross profit was $1.287 billion, or 35.3% of net sales, in the second quarter of 2018 compared to $1.213 billion, or 36.9% of net sales, in the second quarter of 2017. Acquisition-related charges, which reduced gross profit, were $8.8 million for the three months ended June 30, 2018 and $26.1 million for the three months ended July 1, 2017. Excluding these charges, gross profit was 35.6% of net sales for the three months ended June 30, 2018, compared to 37.7% of net sales for the three months ended July 1, 2017, as volume leverage, productivity and price were more than offset by an anticipated $50 million of commodity inflation and $20 million of foreign currency pressure, which emerged during the last 8 weeks of the second quarter of 2018.

Gross profit was $2.453 billion, or 35.8% of net sales, in the first half of 2018 compared to $2.279 billion, or 37.1% of net sales, in the first half of 2017. Acquisition-related charges, which reduced gross profit, were $10.5 million for the six months ended June 30, 2018 and $32.9 million for the six months ended July 1, 2017. Excluding these charges, gross profit was 35.9% of net sales for the six months ended June 30, 2018, compared to 37.6% of net sales for the six months ended July 1, 2017. The year-over-year decrease in the profit rate was attributable to commodity inflation of approximately $100 million and foreign currency pressure, which more than offset volume leverage, productivity and price.

SG&A Expenses: SG&A, inclusive of the provision for doubtful accounts, was $805.8 million, or 22.1% of net sales, in the second quarter of 2018, compared to $744.2 million, or 22.6% of net sales, in the second quarter of 2017. Within SG&A,

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acquisition-related charges totaled $25.5 million for the three months ended June 30, 2018 and $8.7 million for the three months ended July 1, 2017. Excluding these charges, SG&A was 21.4% of net sales for the three months ended June 30, 2018, compared to 22.4% for the three months ended July 1, 2017, as tight cost management and volume leverage was partially offset by SFS 2.0 growth investments.

On a year-to-date basis, SG&A, inclusive of the provision for doubtful accounts, was $1,591.4 million, or 23.2% of net sales, in 2018, compared to $1,434.5 million, or 23.4% of net sales, in 2017. Within SG&A, acquisition-related charges totaled $41.9 million for the six months ended June 30, 2018 and $19.4 million for the six months ended July 1, 2017. Excluding these charges, SG&A was 22.6% of net sales for the six months ended June 30, 2018, compared to 23.0% for the six months ended July 1, 2017, as tight cost management was partially offset by SFS 2.0 growth investments.

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.

Corporate Overhead: The corporate overhead element of SG&A, which is not allocated to the business segments, amounted to

$50.9 million, or 1.4% of net sales, in the second quarter of 2018 compared to $49.3 million, or 1.5% of net sales, in the corresponding period of 2017. On a year-to-date basis, the corporate overhead element of SG&A, amounted to $98.2 million, or 1.4% of net sales, in 2018 compared to $93.9 million, or 1.5% of net sales, in 2017.

Other, net: Other, net amounted to $119.3 million and $55.3 million in the second quarter of 2018 and 2017, respectively. The year-over-year increase was primarily driven by a $77.7 million environmental remediation charge related to the recently announced EPA settlement regarding the cleanup of the Centredale Superfund site. Excluding this charge and acquisition-related charges of $9.4 million and $5.6 million in the second quarter of 2018 and 2017, respectively, Other, net totaled $32.2 million and $49.7 million in the second quarter of 2018 and 2017, respectively. The year-over-year decrease reflects a favorable resolution of a prior claim, among other items. 

Other, net amounted to $177.3 million and $155.8 million in the first half of 2018 and 2017, respectively. Excluding the aforementioned EPA settlement charge and acquisition-related charges of $93.0 million in the first half of 2018 and acquisition-related charges of $45.6 million in the first half of 2017, Other, net totaled $84.3 million and $110.2 million, respectively, during these periods. The year-over-year decrease was driven by an environmental remediation charge of $17 million in the first quarter of 2017 relating to a legacy Black & Decker site and a favorable resolution of a prior claim, partially offset by higher intangible amortization expense. 

Refer to Note R, Commitments and Contingencies, for additional information regarding the EPA settlement discussed above.

Loss (Gain) on Sales of Businesses: For the three and six months ended June 30, 2018, the Company reported a $0.8 million loss relating to a previously divested business. In the first half of 2017, the Company reported a $268.3 million pre-tax gain primarily relating to the sale of the majority of the Company's mechanical security businesses, as previously discussed.

Pension settlement: Pension settlement of $12.8 million in the first half 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 was $53.4 million in the second quarter of 2018 compared to $46.3 million in the second quarter of 2017. On a year-to-date basis, net interest expense was $100.8 million in 2018 compared to $89.0 million in 2017. The year-over-year increase during both periods was primarily due to higher interest rates on the Company's U.S. commercial paper borrowings partially offset by higher interest income.

Income Taxes:The Company recognized income tax expense of $1.0 million and $82.7 million for the three and six months ended June 30, 2018, resulting in effective tax rates of 0.3% and 15.1%, respectively. Excluding the impacts of the aforementioned EPA settlement in the second quarter of 2018, the tax charge recorded in the first quarter of 2018 related to the recently enacted U.S. tax legislation, and the acquisition-related charges, the effective tax rates were 7.0% and 13.4% for the three and six months ended June 30, 2018, respectively. These effective tax rates differ from the U.S. statutory tax rate during these periods primarily due to tax on foreign earnings and the effective settlements of income tax audits.

The Company recognized income tax expense of $80.7 million and $160.4 million for the three and six months ended July 1, 2017, respectively, resulting in effective tax rates of 22.5% and 19.3%, respectively. The effective tax rates differed from the

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U.S. statutory tax rate during these periods primarily due to a portion of the Company’s earnings being realized in lower-taxed foreign jurisdictions, the utilization of U.S. tax attributes during the first quarter of 2017 due to the divestiture of the mechanical security businesses and the favorable settlement of certain income tax audits during the second quarter of 2017. Non-deductible transaction costs and other acquisition-related restructuring items partially offset the net tax benefits mentioned above for the three and six months ended July 1, 2017. Excluding the tax impact of the divestitures and acquisition-related charges, the effective tax rates were 23.5% and 24.1% for the three and six months ended July 1, 2017, respectively.

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), loss (gain) on sales of businesses, pension settlement, restructuring charges, interest expense, interest income, 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 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, Industrial and Security.

Tools & Storage:

	Second Quarter						Year-to-Date
(Millions of Dollars)	2018			2017			2018			2017
Net sales	$	2,567.8		$	2,307.4		$	4,783.6		$	4,202.3
Segment profit	$	398.6		$	371.9		$	700.0		$	656.4
% of Net sales	15.5		%	16.1		%	14.6		%	15.6		%

Tools & Storage net sales increased $260.4 million, or 11%, in the second quarter of 2018 compared to the second quarter of 2017. Sales volume increased 9% with all regions contributing, price contributed 1% and foreign currency increased sales by 1%. Organic growth in emerging markets was 17%, North America was 10%, and Europe was 5%. Emerging markets growth was largely due to mid-price-point product releases, higher e-commerce volumes, continued benefits from the Russia & Turkey go-to-market model changes, and positive price. North America organic growth accelerated as new product innovation, including the FLEXVOLT® system, the initial rollout of Craftsman brand, a recovery in outdoor products and pricing actions all delivered growth on top of a continued healthy U.S. tool market. Share gains continued within Europe with growth supported by new products and successful commercial actions.

On a year-to-date basis, net sales increased $581.3 million, or 14%, in the first half of 2018 compared to the first half of 2017. Organic sales increased 8% driven by organic growth of 16% in emerging markets, 7% in North America, and 6% in Europe. Acquisition sales, primarily from Newell Tools, contributed 4% to overall sales growth in the first half of 2018 and favorable foreign currency increased sales by 2%.

Segment profit for the second quarter of 2018 was $398.6 million, or 15.5% of net sales, compared to $371.9 million, or 16.1% of net sales, in the corresponding 2017 period. Excluding acquisition-related charges of $17.8 million and $34.1 million for the three months ended June 30, 2018 and July 1, 2017, respectively, segment profit amounted to 16.2% in the second quarter of 2018, compared to 17.6% in the second quarter of 2017, as benefits from volume leverage, pricing, productivity and cost control were more than offset by the impact from commodity inflation and currency.

Year-to-date segment profit for the second quarter of 2018 was $700.0 million, or 14.6% of net sales, compared to $656.4 million, or 15.6% of net sales, in the corresponding 2017 period. Excluding acquisition-related charges of $32.5 million and $51.4 million for the six months ended June 30, 2018 and July 1, 2017, respectively, segment profit amounted to 15.3% in the first half of 2018 compared to 16.8% in the first half of 2017. The year-over-year change was primarily driven by the same factors that impacted the second quarter of 2018, as discussed above.

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Industrial:

	Second Quarter						Year-to-Date
(Millions of Dollars)	2018			2017			2018			2017
Net sales	$	573.1		$	503.4		$	1,077.3		$	983.1
Segment profit	$	85.5		$	94.7		$	166.0		$	179.8
% of Net sales	14.9		%	18.8		%	15.4		%	18.3		%

Industrial net sales increased $69.7 million, or 14%, in the second quarter of 2018 compared to the second quarter of 2017, due to acquisition growth of 11% and favorable foreign currency of 3%. Engineered Fastening organic revenues increased 3% as significant automotive and industrial fastener penetration gains were partially offset by the anticipated impact from lower automotive system shipments. Infrastructure organic revenues were down 10% as higher volumes in the Hydraulics business were offset by expected lower pipeline project activity in the Oil & Gas business.

On a year-to-date basis, net sales increased $94.2 million, or 10%, in the first half of 2018 compared to the first half of 2017, due to acquisition growth of 6% and favorable foreign currency of 5%, partially offset by a 1% decline due to a sale of a business in the third quarter of 2017. Engineered Fastening organic revenues increased 1% and Infrastructure organic revenues were down 6% primarily due to the same factors that impacted the second quarter of 2018, as discussed above.

Industrial segment profit for the second quarter of 2018 was $85.5 million or 14.9% of net sales, compared to $94.7 million, or 18.8% of net sales, in the corresponding 2017 period. Excluding acquisition-related charges of $10.9 million for the three months ended June 30, 2018, segment profit amounted to 16.8% in the second quarter of 2018 compared to 18.8% in the second quarter of 2017, as productivity gains and cost control were offset by the impact of commodity inflation, growth investments and the modestly dilutive impact from the Nelson acquisition.

Year-to-date segment profit for the Industrial segment was $166.0 million, or 15.4% of net sales, in 2018 compared to $179.8 million, or 18.3% of net sales, in the corresponding 2017 period. Excluding acquisition-related charges of $12.9 million for the six months ended June 30, 2018, segment profit amounted to 16.6% in the first half of 2018 compared to 18.3% in the first half of 2017. The year-over-year change in the segment profit rate was primarily due to the same factors that impacted the second quarter of 2018, as discussed above.

Security:

	Second Quarter						Year-to-Date
(Millions of Dollars)	2018			2017			2018			2017
Net sales	$	502.7		$	475.9		$	992.0		$	957.6
Segment profit	$	48.1		$	51.8		$	93.6		$	102.5
% of Net sales	9.6		%	10.9		%	9.4		%	10.7		%

Security net sales increased $26.8 million, or 6%, in the second quarter of 2018 compared to the second quarter of 2017, primarily due to small bolt-on commercial electronic security acquisitions of 4%, favorable foreign currency of 3%, and price of 1%, partially offset by lower volumes of 2%. North America declined 2% organically as higher volumes within automatic doors and Healthcare were offset by lower volume and a difficult comparable in commercial electronic security. Europe was flat organically as strength within the Nordics was offset by anticipated weakness in France.

On a year-to-date basis, net sales increased $34.4 million, or 4%, in the first half of 2018 compared to the first half of 2017, primarily due to a 1% increase in price and a 4% increase in both foreign currency and small bolt-on commercial electronic security acquisitions, which more than offset declines of 3% from the sale of the majority of the mechanical security businesses and 2% from lower volumes. Organic sales for both North America and Europe decreased 1% primarily due to the same factors that impacted the second quarter, as discussed above.

Security segment profit for the second quarter of 2018 was $48.1 million, or 9.6% of net sales, compared to $51.8 million, or 10.9% of net sales, in the corresponding 2017 period. Excluding acquisition-related charges of $2.0 million and $0.7 million for the three months ended June 30, 2018 and July 1, 2017, respectively, segment profit amounted to 10.0% in the second quarter of 2018 compared to 11.0% in the second quarter of 2017, reflecting investments to support the business transformation in commercial electronic security partially offset by a continued focus on cost containment.

Year-to-date segment profit was $93.6 million, or 9.4% of net sales, in 2018 compared to $102.5 million, or 10.7% of net sales, in the corresponding 2017 period. Excluding acquisition-related charges of $3.3 million and $0.9 million for the six months ended June 30, 2018 and July 1, 2017, respectively, segment profit amounted to 9.8% in the first half of 2018 compared to

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10.8% in the first half of 2017. The year-over-year change in the segment profit rate reflects investments to support business transformation in commercial electronic security and the impact from the sale of the majority of the mechanical security business, partially offset by a continued focus on cost containment.

RESTRUCTURING ACTIVITIES

A summary of the restructuring reserve activity from December 30, 2017 to June 30, 2018 is as follows:

(Millions of Dollars)	December 30, 2017		Net Additions		Usage			Currency			June 30, 2018
Severance and related costs	$	20.0	$	32.8	$	(22.9	)	$	(0.9	)	$	29.0
Facility closures and asset impairments	3.2		3.5		(5.0		)	—			1.7
Total	$	23.2	$	36.3	$	(27.9	)	$	(0.9	)	$	30.7

For the six months ended June 30, 2018, the Company recognized net restructuring charges of $36.3 million. This amount reflects $32.8 million of net severance charges associated with the reduction of approximately 1,000 employees and $3.5 million of facility closure and other restructuring costs.

For the three months ended June 30, 2018, the Company recognized net restructuring charges of $13.4 million. This amount reflects $10.5 million of net severance charges associated with the reduction of approximately 594 employees and $2.9 million of facility closure and other restructuring costs.

The Company expects these restructuring actions to result in annual net cost savings of approximately $40 million by the end of 2019.

The majority of the $30.7 million of reserves remaining as of June 30, 2018 is expected to be utilized within the next 12 months.

Segments: The $36 million of net restructuring charges for the six months ended June 30, 2018 includes: $15 million pertaining to the Tools & Storage segment; $5 million pertaining to the Industrial segment; $12 million pertaining to the Security segment; and $4 million pertaining to Corporate.

The $13 million of net restructuring charges for the three months ended June 30, 2018 includes: $7 million pertaining to the Tools & Storage segment; $2 million pertaining to the Industrial segment; $3 million pertaining to the Security segment and $1 million pertaining to Corporate.

The anticipated annual net cost savings of approximately $40 million by the end of 2019 includes: $13 million in the Tools and Storage segment; $3 million in the Industrial segment; $19 million in the Security segment; and $5 million in Corporate.

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 provided by operations were $198.0 million in the second quarter of 2018 compared to $151.8 million in the corresponding period of 2017. Cash outflows from working capital (accounts receivable, inventory, accounts payable and deferred revenue) in both periods were primarily driven by higher accounts receivables and inventory purchases in the Tools & Storage segment as a result of strong organic growth and to support anticipated demand from new product launches, including Craftsman.

Year-to-date cash flows used in operations were $151.4 million in the first half of 2018 compared to $162.3 million in the corresponding period of 2017. Cash outflows from working capital were primarily driven by the same factors that impacted the second quarter, as discussed above.

Free Cash Flow: Free cash flow, as defined in the table below, was $86.3 million in the second quarter of 2018, compared to $29.6 million in the second quarter2017. Free cash flow on a year-to-date basis was an outflow of $369.4 million in 2018 compared to $349.2 million in 2017. The decrease in year-to-date free cash flow in 2018 was primarily due to higher planned capital expenditures to support growth in the Company's supply chain and investments related to SFS 2.0 initiatives. Management considers free cash flow an important indicator of its liquidity, as well as its ability to fund future growth and

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provide dividends 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.

	Second Quarter						Year-to-Date
(Millions of Dollars)	2018			2017			2018			2017
Net cash used in operating activities1	$	198.0		$	151.8		$	(151.4	)	$	(162.3	)
Less: capital and software expenditures	(111.7		)	(122.2		)	(218.0		)	(186.9		)
Free cash flow	$	86.3		$	29.6		$	(369.4	)	$	(349.2	)

¹ Certain prior year amounts within operating activities have been recast as a result of the adoption of new accounting standards. Refer to Note B, New Accounting Standards, for further discussion.

Based on its potential to generate cash flow from operations on an annual basis and its credit position at June 30, 2018, 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 $587.5 million in the second quarter of 2018 driven by business acquisitions of $505.6 million, primarily related to Nelson, and capital and software expenditures of $111.7 million, partially offset by net investment hedge settlements of $37.8 million. Cash flows used in investing activities totaled $46.4 million in the second quarter of 2017, which mainly consisted of capital and software expenditures of $122.2 million, partially offset by proceeds of $104.7 million from the deferred purchase price receivable related to the Company's accounts receivable sales program, which was terminated in February 2018.

Year-to-date cash flows used in investing activities totaled $713.8 million in 2018 primarily due to business acquisitions of $506.8 million and capital and software expenditures of $218.0 million. Cash flows used in investing activities totaled $1.642 billion in the first half of 2017, which mainly consisted of business acquisitions of $2.430 billion and capital and software expenditures of $186.9 million, partially offset by net cash proceeds from sales of businesses of $745.3 million and $227.8 million of proceeds from the deferred purchase price receivable related to the Company's accounts receivable sales program, which was terminated in February 2018.

Financing Activities: Cash flows provided by financing activities totaled $457.5 million in the second quarter of 2018 primarily due to $753.6 million of net proceeds from short-term borrowings under the Company's commercial paper program, partially offset by the repurchase of common shares for $201.3 million and cash dividend payments of $94.2 million. Cash flows provided by financing activities in the second quarter of 2017 were $35.0 million mainly due to $727.5 million in proceeds from the issuance of equity units, partially offset by $593.1 million of net repayments of short-term borrowings and $86.5 million of cash dividend payments.

Year-to-date cash flows provided by financing activities totaled $673.4 million in 2018 primarily due to $1.136 billion of net proceeds from short-term borrowings under the Company's commercial paper program, partially offset by the repurchase of common shares for $212.7 million and cash dividend payments of $189.1 million. Cash flows provided by financing activities in 2017 were $1.108 billion mainly due to proceeds of $727.5 million from the issuance of equity units and $563.6 million from net short-term borrowings under the Company's commercial paper program primarily to fund acquisitions, partially offset by $173.2 million of cash dividend payments.

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), and 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 second quarter of 2018. 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 its existing committed credit facilities.

Cash and cash equivalents totaled $386 million as of June 30, 2018, comprised of $37 million in the U.S. and $349 million in foreign jurisdictions. As of December 30, 2017, cash and cash equivalents totaled $638 million, comprised of $54 million in the U.S. and $584 million in foreign jurisdictions.

As a result of the Tax Cuts and Jobs Act signed into law on December 22, 2017 (the "Act"), the Company recorded a provisional tax liability of $466 million as of December 30, 2017 for the one-time transition tax associated with unremitted foreign earnings and profits, which included $5 million of foreign withholding taxes that will become payable upon

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distribution. The Company is still analyzing certain aspects of the Act and refining its estimate, which may change materially due to changes in interpretations and assumptions the Company has made, new guidance that may be issued in the future, and actions the Company may take as a result of the new legislation. The Act permits a U.S. company to elect to pay the net tax liability interest-free over a period of up to eight years. The Company has considered the implications of paying the required one-time transition tax, and believes it will not have a material impact on its liquidity. Refer to Note P, Income Taxes, for further discussion of the impacts of the Act.

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 June 30, 2018, the Company had $1.1 billion of borrowings outstanding against the Company’s $3.0 billion commercial paper program, of which $925 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 30, 2017, the Company had no commercial paper borrowings outstanding.

The Company has a five-year $1.75 billion committed credit facility (the “Credit Agreement”). Borrowings under the Credit Agreement may include U.S. Dollars up to the $1.75 billion commitment or in Euro or Pounds Sterling subject to a foreign currency sub-limit of $400.0 million and bear interest at a floating rate dependent upon the denomination of the borrowing. Repayments must be made on December 18, 2020 or upon an earlier termination date of the Credit Agreement, at the election of the Company. The Credit Agreement is designated to be a liquidity back-stop for the Company's $3.0 billion U.S. Dollar and Euro commercial paper program. As of June 30, 2018 and December 30, 2017, the Company had not drawn on this commitment.

The Company also has a 364-day $1.25 billion committed credit facility (the "2017 Credit Agreement") executed in December 2017. The 2017 Credit Agreement consists of a $1.25 billion revolving credit loan and a sub-limit of an amount equal to the Euro equivalent of $400 million for swing line advances. Borrowings under the 2017 Credit Agreement may be made in U.S. Dollars or Euros, pursuant to the terms of the agreement, and bear interest at a floating rate dependent on the denomination of the borrowing. Repayments must be made by December 19, 2018 or upon an earlier termination of the 2017 Credit Agreement at the election of the Company. The Company also has the option at the termination date to convert all advances into a term loan provided certain requirements are met. The 2017 Credit Agreement serves as a liquidity back-stop for the Company’s $3.0 billion U.S. Dollar and Euro commercial paper program. As of June 30, 2018 and December 30, 2017, the Company had not drawn on this commitment.

In January 2017, the Company executed a 364-day $1.25 billion committed credit facility which consisted of a $1.25 billion revolving credit loan and a sub-limit of an amount equal to the Euro equivalent of $400 million for swing line advances. Borrowings under this credit agreement could be made in U.S. Dollars or Euros, pursuant to the terms of the agreement, and bore interest at a floating rate dependent on the denomination of the borrowing. This credit agreement was terminated in December 2017 at the election of the Company.

In March 2018, the Company purchased from a financial institution “at-the-money” capped call options with an approximate term of three years, on 3.2 million shares of its common stock (subject to customary anti-dilution adjustments) for an aggregate premium of $57.3 million. The capped call has a lower strike price of $156.86 and an upper strike price of $203.92. The purpose of the capped call options is to hedge the risk of stock price appreciation between the lower and upper strike prices of the capped call options for a future share repurchase. Refer to Note J, Equity Arrangements, for further discussion.

In May 2017, the Company issued 7,500,000 Equity Units with a total notional value of $750.0 million ("$750 million Equity Units"). Each unit has a stated amount of $100 and initially consists of a three-year forward stock purchase contract for the purchase of a variable number of shares of common stock, on May 15, 2020, for a price of $100, and a 10% beneficial ownership interest in one share of 0% Series C Cumulative Perpetual Convertible Preferred Stock, without par, with a liquidation preference of $1,000 per share ("Series C Preferred Stock"). The Company received approximately $727.5 million in cash proceeds from the $750 million Equity Units, net of underwriting costs and commissions, before offering expenses, and issued 750,000 shares of Series C Preferred Stock, recording $750.0 million in preferred stock. The proceeds were used for general corporate purposes, including repayment of short-term borrowings. The Company also used $25.1 million of the proceeds to enter into capped call transactions utilized to hedge potential economic dilution.

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 June 2018, the Company amended the settlement date to April 2021, or earlier at the Company's option.

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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 second quarter of 2018. 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 30, 2017 for a discussion of the Company’s critical accounting estimates.

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 second quarter of 2018. Refer to the Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s Form 10-K for the year ended December 30, 2017 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 June 30, 2018, 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 second quarter of 2018 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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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) achieve its vision of doubling the size of the Company to $22 billion in revenue by 2022 while expanding its margin rate, by becoming known as one of the world’s leading innovators, delivering top-quartile financial performance and elevating its commitment to social responsibility; (ii) achieve full year 2018 diluted EPS of approximately $7.00-$7.20 ($8.30-$8.50 excluding acquisition-related charges, the recently announced settlement with the EPA regarding the Centredale Superfund site, and tax charges relating to the recently enacted U.S. tax legislation); (iii) achieve free cash flow conversion, defined as free cash flow divided by net income, of approximately 100% for 2018; and (iv) 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) the Company’s ability to invest in product, brand and commercialization of the Craftsman® brand (including successful brand launch in the second half of 2018); (ii) the Company’s ability to successfully integrate Newell Tools while remaining focused on being one of the world’s leading innovators, continuing to deliver top-quartile financial performance and elevating our commitment to social responsibility; (iii) the Company’s ability to deliver overall organic growth of approximately 7% in 2018; (iv) the Company’s ability to limit the impact from: commodity inflation of approximately $205 million; foreign currency headwinds of approximately $80 million; and the first $34 billion of section 301 tariffs and section 232 steel and aluminum tariffs of approximately $35 million; (v)net impact from: closed acquisitions, cost and price actions and improved productivity being approximately +$1.53 to $1.63 EPS in 2018; and share repurchase executed in second quarter being approximately +$0.10; (vi) core (non M&A) restructuring charges being approximately $50 million in 2018; (vii) 2018 core tax rate being approximately 18%; (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 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, aluminum, 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; (xxiii) the availability of cash to repurchase shares when conditions are right; (xxiv) adjustments to the provisional estimates recorded in 2017 for the enacted U.S. Tax Cuts and Jobs Act based on legislative developments and refined calculations; and (xxv) the ability of the Company to proactively manage the impact of the legislative changes brought about by the U.S. Tax Cuts and Jobs Act.

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 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 as well as the impact of any U.S. tariffs on imported goods; 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 impact from demand changes within world-wide markets associated with homebuilding and remodeling; 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 including, hostilities on the Korean Peninsula; 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

The Company has reached a settlement with the Environmental Protection Agency (“EPA”) for reimbursement of EPA’s past costs and remediation of environmental contamination found at the Centredale Manor Restoration Project Superfund (“Centredale”) site located in North Providence, Rhode Island. The EPA had alleged 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 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 contested 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 potentially responsible parties ("PRPs"), including the federal government as well as insurance carriers. Although the settlement with the EPA resolves EPA's claims against the Company, the litigation against other PRPs to recover costs associated with this clean-up continues.

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 30, 2017 filed with the Securities and Exchange Commission on February 27, 2018.

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 June 30, 2018:

2018	(a) Total Number Of Shares Purchased	Average Price Paid Per Share		Total Number Of Shares Purchased As Part Of A Publicly Announced Plan Or Program	(b) Maximum Number Of Shares That May Yet Be Purchased Under The Program
April 1 - May 5	8,671	$	142.91	1,399,732	13,600,000
May 6 - June 2	—	—		—	13,600,000
June 3 - June 30	—	—		—	13,600,000
Total	8,671	$	142.91	1,399,732	13,600,000

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

(b) On July 20, 2017, the Board of Directors approved a new repurchase program for up to 15.0 million shares of the Company’s common stock and terminated its previously approved repurchase program.  As of June 30, 2018, the authorized shares available for repurchase under the new repurchase program totaled 13.6 million shares. The currently authorized shares available for repurchase do not include approximately 3.6 million shares reserved and authorized for purchase under the Company’s previously approved repurchase program relating to a forward share purchase contract entered into in March 2015. Refer to Note J, 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)	Amended and Restated Bylaws of the Company (incorporated by reference to Exhibit 3.1 on the Company’s Current Report on Form 8-K filed on July 18, 2018).
(10.1)	The Stanley Black & Decker 2018 Omnibus Award Plan.
(10.2)	Form of stock option certificate for grants to executive officers pursuant to the Company’s 2018 Omnibus Award Plan.
(10.3)	Form of restricted stock unit award certificate for grants to executive officers pursuant to the Company’s 2018 Omnibus Award Plan.
(10.4)	Form of restricted stock unit retention award certificate for grants to executive officers pursuant to the Company’s 2018 Omnibus Award 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 June 30, 2018, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June 30, 2018 and July 1, 2017; (ii) Condensed Consolidated Balance Sheets at June 30, 2018 and December 30, 2017; (iii) Condensed Consolidated Statements of Cash Flows for the three and six months ended June 30, 2018 and July 1, 2017; 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:	July 20, 2018	By:	/s/ DONALD ALLAN, JR.
			Donald Allan, Jr.
			Executive Vice President and Chief Financial Officer

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EX-10.1

EXHIBIT 10.1

THE STANLEY BLACK & DECKER2018 OMNIBUS AWARD PLAN

Section 1. Purpose

The purposes of this Stanley Black & Decker 2018 Omnibus Award Plan (the “Plan”) are to encourage selected employees, consultants, and non-employee directors of Stanley Black & Decker, Inc. (together with any successor thereto, the “Company”) or any of its Affiliates to acquire a proprietary interest in the growth and performance of the Company, to generate an increased incentive to contribute to the Company’s future success and prosperity, thus enhancing the value of the Company for the benefit of its shareholders, and to enhance the ability of the Company and its Affiliates to attract and retain exceptionally qualified individuals upon whom, in large measure, the sustained progress, growth and profitability of the Company depend.

Section 2. Definitions

As used in the Plan, the following terms shall have the meanings set forth below:

(a) “Affiliate” shall mean (i) any entity that, directly or through one or more intermediaries, is controlled by the Company and (ii) any entity in which the Company has a significant equity interest, as determined by the Committee.

(b) “Award” shall mean any Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Performance Award, Dividend Equivalent, or Other Stock-Based Award granted under the Plan.

(c) “Award Agreement” shall mean any written agreement, contract, or other instrument or document evidencing any Award granted under the Plan. An Award Agreement may be in an electronic medium.

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

(e) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

(f) “Committee” shall mean the Compensation and Talent Development Committee of the Board.

(g) “Dividend Equivalent” shall mean any right granted under Section 6(e) of the Plan.

(h) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

(i) “Fair Market Value” shall mean (i) with respect to any property other than Shares, the fair market value of such property determined by such methods or procedures as shall be established from time to time by the Committee and (ii) with respect to Shares, the average of the high and the low price of a Share as quoted on the New York Stock Exchange Composite Tape on the date as of which fair market value is to be determined (or if not then trading on the New York Stock Exchange, on the securities exchange or over-the-counter market on which the Shares are principally trading on such date) or, if there is no trading of Shares on such date, the average of the high and the low price on the next preceding date on which there was such trading. In the event that there is no public market for Shares on the date as of which fair market value is to be determined, the fair market value of Shares shall be as determined in good faith by the Committee.

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(j) “Immediate family members” of a Participant shall mean the Participant’s child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person sharing the employee’s household (other than a tenant or employee), a trust in which these persons have more than fifty percent of the beneficial interest, a foundation in which these persons (or the employee) control the management of assets, and any other entity in which these persons (or the employee) own more than fifty percent of the voting interests.

(k) “Incentive Stock Option” shall mean an option granted under Section 6(a) of the Plan that is intended to meet the requirements of Section 422 of the Code, or any successor provision thereto. Incentive Stock Options may be granted only to Participants who meet the definition of “employees” under Section 3401(c) of the Code.

(l) “Non-Employee Director” shall mean any non-employee director of the Company or of any Affiliate.

(m) “Non-Qualified Stock Option” shall mean an option granted under Section 6(a) of the Plan that is not intended to be an Incentive Stock Option.

(n) “Option” shall mean an Incentive Stock Option or a Non-Qualified Stock Option, as applicable.

(o) “Other Stock-Based Award” shall mean any right granted under Section 6(f) of the Plan.

(p) “Participant” shall mean any employee of, or consultant to, the Company or any Affiliate who is designated by the Committee to be granted an Award under the Plan and any Non-Employee Director of the Company who is designated by the Corporate Governance Committee to be granted an Award under the Plan.

(q) “Performance Award” shall mean any Award granted under Section 6(d) of the Plan.

(r) “Person” shall mean any individual, corporation, partnership, association, joint-stock company, trust, unincorporated organization, or government or political subdivision thereof.

(s) “Prior Plans” shall mean the 2001 Plan, the 2009 Plan, and the 2013 Plan, collectively.

(t) “Released Securities” shall mean securities that were Restricted Securities with respect to which all applicable restrictions have expired, lapsed, or been waived.

(u) “Restricted Securities” shall mean securities covered by Awards of Restricted Stock or other Awards under which issued and outstanding Shares are held subject to certain restrictions.

(v) “Restricted Stock” shall mean any Share granted under Section 6(c) of the Plan.

(w) “Restricted Stock Unit” shall mean any unit granted under Section 6(c) of the Plan.

(x) “Shares” shall mean shares of the common stock of the Company, par value $2.50 per share, and such other securities or property as may become the subject of Awards, or become subject to Awards, pursuant to an adjustment made under Section 4(b) of the Plan.

(y) “Stock Appreciation Right” shall mean any right granted under Section 6(b) of the Plan.

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(z) “2001 Plan” shall mean the Company’s 2001 Long-Term Incentive Plan.

(aa) “2009 Plan” shall mean the Company’s 2009 Long-Term Incentive Plan.

(bb) “2013 Plan” shall mean the Company’s 2013 Long-Term Incentive Plan.

Section 3. Administration

Except as otherwise provided herein, the Plan shall be administered by the Committee. Subject to the terms of the Plan and applicable law, the Committee shall have full power and authority to: (i) designate Participants; (ii) determine the type or types of Awards to be granted to each Participant under the Plan; (iii) determine the number of Shares to be covered by, or with respect to which payments, rights, or other matters are to be calculated in connection with, Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, to what extent, and under what circumstances Awards may be settled or exercised in cash, Shares, other securities, other Awards, or other property, or cancelled, forfeited, or suspended, and the method or methods by which Awards may be settled, exercised, cancelled, forfeited, or suspended; (vi) determine in accordance with the requirements of Section 409A of the Code whether, to what extent, and under what circumstances cash, Shares, other securities, other Awards, other property and other amounts payable with respect to an Award under the Plan shall be deferred either automatically or at the election of the holder thereof or of the Committee; (vii) interpret and administer the Plan and any instrument or agreement relating to, or Award made under, the Plan; (viii) establish, amend, suspend, or waive such rules and regulations and appoint such agents as it deems appropriate for the proper administration of the Plan; and (ix) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan. Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions under or with respect to the Plan or any Award shall be within the sole discretion of the Committee, may be made at any time, and shall be final, conclusive, and binding upon all Persons, including the Company, any Affiliate, any Participant, any holder or beneficiary of any Award, any shareholder, and any employee of the Company or of any Affiliate. All elective deferrals permitted pursuant to this Section 3 shall be accomplished by the delivery of a written, irrevocable election by the Participant on a form provided by the Company. All deferrals shall be made in accordance with administrative guidelines established by the Committee to ensure that such deferrals comply with all applicable requirements of Section 409A of the Code.  The Committee may credit interest, at such rates to be determined by the Committee, on cash payments that are deferred and credit dividends or dividend equivalents on deferred payments denominated in the form of Shares.

Notwithstanding the foregoing, unless otherwise determined by the Board, the Corporate Governance Committee of the Board shall be responsible for recommending to the Board grants of Awards to Non-Employee Directors (including any Award Agreements applicable to such Awards).

Section 4. Shares Available for Awards

(a) Shares Available. Subject, in each case, to adjustment as provided in Section 4(b):

(i) Calculation of Number of Shares Available. The aggregate number of Shares authorized to be issued in connection with the granting of Awards under the Plan shall not exceed 16,750,000, plus any Shares that become available for Awards in accordance with Section 4(a)(ii) of the Plan. Notwithstanding the foregoing, (A) no more than 1,000,000 Shares shall be cumulatively available for delivery pursuant to the exercise of Incentive Stock Options, (B) the maximum number of Shares with respect to which Options and Stock Appreciation Rights may be granted to any single Participant in any single fiscal year shall not exceed 4,000,000 Shares, and (C) notwithstanding any plan or program of the Company to the contrary, the maximum amount of compensation that may be paid to any single Non-Employee Director in any single fiscal year (including Awards under the Plan, determined based on the fair market value of such Award as of the grant date, as well as retainer fees) shall not exceed $750,000. In the case of any Awards granted under the Plan, (x) each Share

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with respect to which an Option or stock-settled Stock Appreciation Right is granted under the Plan shall reduce the aggregate number of Shares that may be delivered under the Plan by one Share and (y) each share with respect to which any other Award denominated in Shares is granted under the Plan shall reduce the aggregate number of Shares that may be delivered under the Plan by 4.0 Shares.

(ii) Following the date on which the shareholders approve the Plan, no further awards shall be granted under any Prior Plans, except that, if Shares covered by an Award granted under the Plan or by an award granted under the 2013 Plan, the 2009 Plan or the 2001 Plan, or to which such an Award or award relates, are forfeited or cancelled, or if an Award or award otherwise terminates without the delivery of Shares, then the Shares covered by such Award or award, or to which such Award or award relates, or the number of Shares otherwise counted against the aggregate number of Shares available under the Plan with respect to such Award or award, to the extent of any such forfeiture, cancellation or termination, shall again be, or shall become available for, granting Awards under the Plan. For the avoidance of doubt, any Shares which (1) are tendered to or withheld by the Company to satisfy payment of applicable tax withholding requirements in connection with the vesting or delivery of an Award, (2) are withheld by the Company upon exercise of an Option pursuant to a “net exercise” arrangement, or (3) underlie a Stock Appreciation Right that is settled in Shares, shall not again be made available for Awards under the Plan. Further, Shares that are purchased by the Company in the open market pursuant to any repurchase plan or program, whether using Option proceeds or otherwise, shall not be made available for grants of Awards under the Plan.

(iii) Accounting for Awards. For purposes of this Section 4,

(A) if an Award (other than a Dividend Equivalent) is denominated or settled in Shares, the number of Shares covered by such Award, or to which such Award relates, shall be counted on the date of grant of such Award against the aggregate number of Shares available for granting Awards under the Plan; for the avoidance of doubt, any Award that by its terms is to be settled solely in cash shall not be counted against the aggregate number of Shares available for granting Awards under the Plan, and

(B) Dividend Equivalents shall be counted against the aggregate number of Shares available for granting Awards under the Plan, if at all, only in such amount and at such time as the Committee shall determine under procedures adopted by the Committee consistent with the purposes of the Plan; provided, however, that Awards that operate in tandem with (whether granted simultaneously with or at a different time from), or that are substituted for, other Awards or awards granted under the 2013 Plan, the 2009 Plan or the 2001 Plan may be counted or not counted under procedures adopted by the Committee in order to avoid double counting. Any Shares that are delivered by the Company, and any Awards that are granted by, or become obligations of, the Company through the assumption by the Company or an Affiliate of, or in substitution for, outstanding awards previously granted by an acquired company, shall not be counted against the Shares available for granting Awards under the Plan.

(iv) Sources of Shares Deliverable Under Awards. Any Shares delivered pursuant to an Award may consist, in whole or in part, of authorized and unissued Shares, treasury Shares or any other Shares.

(b) Adjustments. In the event that the Committee determines that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split,

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reverse stock split, reorganization, merger, consolidation split-up, spin-off, combination repurchase, or exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase Shares or other securities of the Company, or other similar corporate transaction or event affects the Shares such that an adjustment is determined by the Committee to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and type of Shares (or other securities or property) which thereafter may be made the subject of Awards, (ii) the number and type of Shares (or other securities or property) subject to outstanding Awards, (iii) the number and type of Shares (or other securities or property) specified as the annual per-participant limitation under Section 4(a), and (iv) the grant, purchase, or exercise price with respect to any Award, or, if deemed appropriate, make provision for a cash payment to the holder of an outstanding Award; provided, however, in each case, that with respect to Awards of Incentive Stock Options no such adjustment shall be authorized to the extent that such authority would cause the Plan to violate Section 422(b)(1) of the Code or any successor provision thereto; and provided further, however, that the number of Shares subject to any Award denominated in Shares shall always be a whole number.

Section 5. Eligibility

Any employee of (including any officer of), or consultant to, the Company or of any Affiliate and any Non-Employee Director of the Company shall be eligible to be designated a Participant.

Section 6. Awards

(a) Options. The Committee is hereby authorized to grant Options to Participants with the following terms and conditions and with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan, as the Committee may determine:

(i) Exercise Price. The purchase price per Share purchasable under an Option shall be determined by the Committee; provided, however, that such purchase price shall not be less than the Fair Market Value of a Share on the date of grant of such Option (or, if the Committee so determines, in the case of any Option retroactively granted in tandem with or in substitution for another Award or any outstanding award granted under any other plan of the Company, on the date of grant of such other Award or award).

(ii) Option Term. The term of each Option shall be fixed by the Committee; provided, however, that in no event shall the term of any Option exceed a period of ten years from the date of its grant.

(iii) Time and Method of Exercise. The Committee shall determine the time or times at which an Option may be exercised in whole or in part, and the method or methods by which, and the form or forms, including cash, Shares, other Awards, or other property, or any combination thereof, having a Fair Market Value on the exercise date equal to the relevant exercise price, in which, payment of the exercise price with respect thereto may be made or deemed to have been made. Without limiting the generality of the foregoing, and unless otherwise set forth in the Participant’s Award Agreement, such payment may be made: (A) in cash, or its equivalent, (B) subject to such rules as may be established by the Committee and subject to applicable law, (i) by exchanging Shares owned by the Participant (which are not the subject of any pledge or other security interest and which have been owned by such Participant for at least six months), or (ii) through delivery of irrevocable instructions to a broker to sell the Shares otherwise deliverable upon the exercise of the Option and to deliver promptly to the Company an amount equal to the aggregate exercise price, (C) subject to any conditions or limitations established by the Committee, the Company’s withholding of

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Shares otherwise issuable upon exercise of an Option pursuant to a “net exercise” arrangement (it being understood that, solely for purposes of determining the number of treasury shares held by the Company, the Shares so withheld will not be treated as issued and acquired by the Company upon such exercise), (D) by a combination of the foregoing, or (E) by such other methods as may be approved by the Committee, provided that the combined value of all cash and cash equivalents and the fair market value of any such Shares so tendered to the Company or withheld as of the date of such tender or withholding is at least equal to such aggregate exercise price.

(iv) Incentive Stock Options. All Options when granted under the Plan are intended to be Non-Qualified Stock Options, unless the applicable Award Agreement expressly states that the Option is intended to be an Incentive Stock Option. The terms of any Incentive Stock Option granted under the Plan shall comply in all respects with the provisions of Section 422 of the Code, or any successor provision thereto, and any regulations promulgated thereunder. If any Participant shall make any disposition of Shares delivered pursuant to the exercise of an Incentive Stock Option under the circumstances described in Section 421(b) of the Code (relating to certain disqualifying dispositions) or any successor provision of the Code, such Participant shall notify the Company of such disposition within ten days thereof.

(v) Transferability. An Option shall not be transferable other than by will or the laws of descent and distribution or pursuant to a domestic relations order, as defined in the Code, and, during the Participant’s lifetime, shall be exercisable only by the Participant, except that the Committee may:

(A) permit exercise, during the Participant’s lifetime, by the Participant’s guardian or legal representative; and

(B) permit transfer, upon the Participant’s death, to beneficiaries designated by the Participant in a manner authorized by the Committee, provided that the Committee determines that such exercise and such transfer are consonant with requirements for exemption from Section 16(b) of the Exchange Act and, with respect to an Incentive Stock Option, the requirements of Section 422(b)(5) of the Code; and

(C) grant Non-Qualified Stock Options that are transferable, or amend outstanding Non-Qualified Stock Options to make them so transferable, without payment of consideration, to Immediate Family of the Participant.

(b) Stock Appreciation Rights. The Committee is hereby authorized to grant Stock Appreciation Rights to Participants. Subject to the terms of the Plan and any applicable Award Agreement, a Stock Appreciation Right granted under the Plan shall confer on the holder thereof a right to receive in cash or Shares, at the Company’s sole discretion, upon exercise thereof, the excess of (i) the Fair Market Value of one Share on the date of exercise over (ii) the grant price of the right as specified by the Committee, which shall not be less than the Fair Market Value of one Share on the date of grant of the Stock Appreciation Right (or, if the Committee so determines, in the case of any Stock Appreciation Right retroactively granted in tandem with or in substitution for another Award or any outstanding award granted under any other plan of the Company, on the date of grant of such other Award or award). Subject to the terms of the Plan and any applicable Award Agreement, the grant price, term, methods of exercise, methods of settlement, and any other terms and conditions of any Stock Appreciation Right shall be as determined by the Committee; provided that no Stock Appreciation Right shall be exercisable more than ten years from the date of grant. The Committee may impose such conditions or restrictions on the exercise of any Stock Appreciation Right as it may deem appropriate.

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(c) Restricted Stock and Restricted Stock Units.

(i) Issuance. The Committee is hereby authorized to grant Awards of Restricted Stock and Restricted Stock Units to Participants.

(ii) Restrictions. Shares of Restricted Stock and Restricted Stock Units shall be subject to such restrictions as the Committee may impose (including any limitation on the right to vote a Share of Restricted Stock or the right to receive any dividend or other right or property), which restrictions, subject to Section 6(e), may lapse separately or in combination at such time or times, in such installments or otherwise, as the Committee may deem appropriate.

(iii) Registration. Any Restricted Stock granted under the Plan may be evidenced in such manner as the Committee may deem appropriate, including book-entry registration or issuance of a stock certificate or certificates. In the event any stock certificate is issued in respect of Shares of Restricted Stock granted under the Plan, such certificate shall be registered in the name of the Participant and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock.

(iv) Forfeiture. Except as otherwise determined by the Committee, upon termination of employment or service (as determined under criteria established by the Committee) for any reason during the applicable restriction period, all Shares of Restricted Stock and all Restricted Stock Units that are, in either case, still subject to restriction, shall be forfeited and reacquired by the Company. Unrestricted Shares, evidenced in such manner as the Committee shall deem appropriate, shall be delivered to the holder of Restricted Stock promptly after such Restricted Stock shall become Released Securities.

(v) Restricted Stock Units. Notwithstanding anything to the contrary in the Plan or in any Award Agreement, Restricted Stock Units shall be subject to the following requirements. Unless previously forfeited, and subject to Section 10(b), Restricted Stock Units shall be settled on or before the 30^th day following the earliest of (I) the applicable vesting date set forth in the Award Agreement, (II) the Participant’s death, (III) the Participant’s separation from service within the meaning of Section 409A of the Code after attaining the age of Retirement as defined below or as a result of a disability within the meaning of Section 22(e)(3) of the Code. Restricted Stock Units may be denominated or payable in cash, Shares, other securities or other property. If the Committee reasonably anticipates that making a payment in respect of Restricted Stock Units may violate Federal securities laws or other applicable law, such payment may be delayed and made in accordance with Section 409A of the Code and Section 1.409A‑2(b)(7)(ii) of the Treasury Regulations thereunder.

(d) Performance Awards. The Committee is hereby authorized to grant Performance Awards to Participants. Subject to the terms of the Plan and any applicable Award Agreement, a Performance Award granted under the Plan (i) may be denominated or payable in cash, Shares (including Restricted Stock), other securities, other Awards, or other property and (ii) shall confer on the holder thereof rights valued as determined by the Committee and payable to, or exercisable by, the holder of the Performance Award, in whole or in part, upon the achievement of such performance goals during such performance periods as the Committee shall establish.

The performance goals upon which the payment or vesting of any Performance Awards may be based shall be determined by the Committee in its discretion, and may include, as 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

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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) 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) cash flow, operating 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; (x) total sales or sales growth, or portions thereof (such as organic sales growth); (xi) operating margin or profit margin; (xii) share price or total shareholder return; (xiii) earnings from continuing operations; (xiv) cost targets, reductions or savings, productivity or efficiencies; (xv) economic value added; and (xvi) 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 acquisitions, divestitures, joint ventures or similar transactions.

Where applicable, the performance goals may be described in terms of Company-wide objectives or objectives that are related to the performance of the individual Participant or of the subsidiary, Affiliate, division, department, business unit, region, function or other organizational unit within the Company, subsidiary or Affiliate in which the Participant is employed. The performance goals may be made relative to the performance of other companies or subsidiaries, divisions, departments, business units, regions, functions or other organizational units within such other companies, and may be made relative to an index or one or more of the performance goals themselves, 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).

The performance goals to be achieved during any performance period, the length of any performance period, the amount of any Performance Award granted, and the amount of any payment or transfer to be made pursuant to any Performance Award shall be determined by the Committee, in each case subject to the terms of the Plan and the applicable Award Agreement.

(e) Dividend Equivalents. The Committee is hereby authorized to grant to Participants Awards (other than Awards in respect of Options and Stock Appreciation Rights) under which the holders thereof shall be entitled to receive payments equivalent to dividends or interest with respect to a number of Shares determined by the Committee, and the Committee may provide that such amounts (if any) shall be deemed to have been reinvested in additional Shares or otherwise reinvested.To the extent that Dividend Equivalents are credited in respect of any Award made under Section 6 of the Plan (including any Performance Award), such Dividend Equivalent(s) will vest (or be forfeited) at the same time as the underlying Award to which such Dividend Equivalent(s) relate. Subject to the terms of the Plan and any applicable Awards Agreement, such Awards may have such additional terms and conditions as the Committee may determine.

(f) Other Stock-Based Awards. The Committee is hereby authorized to grant to Participants such other Awards that are denominated or payable in, valued in whole or in part by reference to, or otherwise based on or related to, Shares (including securities convertible into Shares), as are deemed by the Committee to be consistent with the purposes of the Plan; provided, however, that such grants must comply with applicable law. Subject to the terms of the Plan and any applicable Award Agreement, the Committee shall determine the terms and conditions of such Awards. Shares or other securities delivered pursuant to a purchase right granted under this Section 6(f) shall be purchased for such consideration, which may be paid by such method or methods and in such form or forms, including cash, Shares, other securities, other Awards, or other property, or any combination thereof, as the

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Committee shall determine, the value of which consideration, as established by the Committee, shall not be less than the Fair Market Value of such Shares or other securities as of the date such purchase right is granted (or, if the Committee so determines, in the case of any such purchase right retroactively granted in tandem with or in substitution for another Award or any outstanding award granted under any other plan of the Company, on the date of grant of such other Award or award).

(g) General.

(i) No Cash Consideration for Awards. Awards may be granted for no cash consideration or for such minimal cash consideration as may be required by applicable law.

(ii) Awards May Be Granted Separately or Together. Awards may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in substitution for any other Award or any awards granted under any other plan of the Company or any Affiliate. Awards granted in addition to or in tandem with other Awards, or in addition to or in tandem with awards granted under any other plan of the Company or any Affiliate, may be granted either at the same time as or at a different time from the grant of such other Awards or awards.

(iii) Forms of Payment Under Awards. Subject to the terms of the Plan and of any applicable Award Agreement, payments or transfers to be made by the Company or an Affiliate upon the grant, exercise, or payment of an Award may be made in such form or forms as the Committee shall determine, including cash, Shares, other securities, other Awards, or other property, or any combination thereof, and may be made in a single payment or transfer, in installments, or on a deferred basis, in each case in accordance with rules and procedures established by the Committee. Such rules and procedures may include provisions for the payment or crediting of reasonable interest on installment or deferred payments or the grant or crediting of Dividend Equivalents in respect of installment or deferred payments. The Participant (or, in the event of death, the Participant’s beneficiary or estate) may direct the sale on behalf of, or for the benefit of the Participant (or, in the event of death, the Participant’s beneficiary or estate) of some or all of the Shares delivered pursuant to an Award granted to the Participant.

(iv) Limits on Transfer of Awards. Except as provided in Section 6(a) above regarding Options, no Award (other than Released Securities), and no right under any such Award, shall be assignable, alienable, saleable, or transferable by a Participant otherwise than by will or by the laws of descent and distribution or pursuant to a qualified domestic relations order, as defined in the Code (or, in the case of an Award of Restricted Securities, to the Company); provided, however, that, if so determined by the Committee, a Participant may, in the manner established by the Committee, designate a beneficiary or beneficiaries to exercise the rights of the Participant, and to receive any property distributable, with respect to any Award upon the death of the Participant. Each Award, and each right under any Award, shall be exercisable, during the Participant’s lifetime, only by the Participant or, if permissible under applicable law, by the Participant’s guardian or legal representative. No Award (other than Released Securities), and no right under any such Award, may be pledged, alienated, attached, or otherwise encumbered, and any purported pledge, alienation, attachment, or encumbrance thereof shall be void and unenforceable against the Company or any Affiliate. Except as permitted under Section 409A of the Code, any deferred compensation (within the meaning of Section 409A of the Code) payable to Participant or for a Participant’s benefit under this Plan and Awards hereunder may not be reduced by, or offset against, any amount owing by a Participant to the Company or any Affiliate.

(v) Terms of Awards. Except as otherwise specified in the Plan, the Term of each Award shall be for such period as may be determined by the Committee. Notwithstanding the foregoing,

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in no event shall the term of any Incentive Stock Option exceed a period of ten years from the date of its grant.

(vi) Share Certificates. All certificates for Shares or other securities delivered under the Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such Shares or other securities are then listed, and any applicable Federal or state securities laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

Section 7. Amendment and Termination

Except to the extent prohibited by applicable law and unless otherwise expressly provided in an Award Agreement or in the Plan:

(a) Amendments to the Plan. The Board may amend, alter, suspend, discontinue, or terminate the Plan or any Award (and the related Award Agreement), including any amendment, alteration, suspension, discontinuation, or termination that would impair the rights of any Participant, or any other holder or beneficiary of any Award theretofore granted, without the consent of any shareholder, Participant, other holder or beneficiary of an Award, or other Person; provided, however, that, notwithstanding any other provision of the Plan or any Award Agreement, without the approval of the shareholders of the Company no such amendment, alteration, suspension, discontinuation, or termination shall be made that would:

(i) increase the total number of Shares available for Awards under the Plan, except as provided in Section 4 hereof;

(ii) increase the annual compensation limitation established with respect to Non-Employee Directors as set forth in Section 4(a)(i)(C) of the Plan;

(iii) permit Options, Stock Appreciation Rights, or Other Stock-Based Awards encompassing rights to purchase Shares to be granted with per Share grant, purchase, or exercise prices of less than the Fair Market Value of a Share on the date of grant thereof, except to the extent permitted under Sections 4(b), 6(a), 6(b), or 6(f) hereof; or

(iv) otherwise require approval of the shareholders of the Company in order to comply with rules of the applicable national securities exchange upon which the Shares are traded or quoted.

(b) Adjustments of Awards Upon Certain Acquisitions. In the event the Company or any Affiliate shall assume outstanding employee awards or the right or obligation to make future awards in connection with the acquisition of another business or another corporation or business entity, the Committee may make such adjustments, not inconsistent with the terms of the Plan, in the terms of Awards as it shall deem appropriate in order to achieve reasonable comparability or other equitable relationship between the assumed awards and the Awards granted under the Plan as so adjusted.

(c) Adjustments of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. The Committee shall be authorized to make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including the events described in Section 4(b) hereof) affecting the Company, any Affiliate, or the financial statements of the Company or any Affiliate, or of changes in applicable laws, regulations, or accounting principles,

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whenever the Committee determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits to be made available under the Plan.

(d) Certain Adjustments of Awards Not Permitted. Except in connection with an event or transaction described in subsections (b) or (c) of this Section 7 or Section 4(b), the terms of outstanding Awards may not be amended to reduce the purchase price per Share purchasable under an Option or the grant price of Stock Appreciation Rights, or to cancel outstanding Options or Stock Appreciation Rights in exchange for cash, other Awards or Options or Stock Appreciation Rights with a purchase price per share or grant price, as applicable, that is less than the purchase price per share or grant price of the original Options or Stock Appreciation Rights, as applicable, without shareholder approval.

(e) Correction of Defects, Omissions and Inconsistencies. The Committee may correct any defect, supply any omission, or reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall deem desirable to carry the Plan or such Award into effect.

Section 8. General Provisions

(a) No Rights to Awards. No Participant or other Person shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of Participants or holders or beneficiaries of Awards under the Plan. The terms and conditions of Awards need not be the same with respect to each recipient.

(b) Delegation. The Committee may delegate to one or more officers or managers of the Company or any Affiliate, or a committee of such officers or managers, the authority, subject to such terms and limitations as the Committee shall determine, to grant Awards to, or to cancel, modify, waive rights with respect to, alter, discontinue, suspend or terminate Awards held by, Participants who are neither (i) officers of the Company for purposes of Section 16 of the Exchange Act, nor (ii) Non-Employee Directors.

(c) Withholding. The Company or any Affiliate shall be authorized to withhold from any Award granted or any payment due or transfer made under any Award or under the Plan the amount determined by the Company (in cash, Shares, other securities, other Awards, or other property) of withholding taxes due in respect of an Award, its exercise, or any payment or transfer under such Awards or under the Plan and to take such other action as may be necessary in the opinion of the Company or Affiliate to satisfy all obligations for the payment of such taxes.

(d) No Limit on Other Compensation Arrangements. Nothing contained in the Plan shall prevent the Company or any Affiliate from adopting or continuing in effect other or additional compensation arrangements, and such arrangements may be either generally applicable or applicable only in specific cases.

(e) No Right to Employment. The grant of an Award shall not be construed as giving a Participant the right to be retained in the employ or service of the Company or any Affiliate. Further, the Company or an Affiliate may at any time dismiss a Participant from employment or service, free from any liability, or any claim under the Plan, unless otherwise expressly provided in the Plan or in any Award Agreement.

(f) Governing Law. The validity, construction and effect of the Plan and any rules and regulations relating to the Plan shall be determined in accordance with the laws of the State of Connecticut and applicable Federal law.

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(g) Severability. If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction, or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person, or Award, and the remainder of the Plan and any such Award shall remain in full force and effect.

(h) No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Affiliate and a Participant or any other Person. To the extent that any Person acquires a right to receive payments from the Company or any Affiliate pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Company or any Affiliate.

(i) No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional Shares, or whether such fractional Shares or any rights thereto shall be cancelled, terminated, or otherwise eliminated.

(j) Headings. Headings are given to the Sections and subsections of the Plan solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof.

(k) Construction. For purposes of the Plan, the terms “include,” “includes” and “including” shall mean such terms without limitation.

(l) Detrimental Activity and Recapture. Any Award Agreement 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 from time to time, if a Participant during employment or other service with the Company or an Affiliate, engages in activity detrimental to the Company. In addition, notwithstanding anything in this Plan to the contrary, any Award Agreement 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 provision intended to have a similar effect, upon such terms and conditions as may be required by the Committee 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 the Shares may be traded.

Section 9. Change in Control

(a) In the event of a Change in Control, unless otherwise set forth in an Award Agreement or provided in an individual severance or employment agreement to which the applicable Participant is a party, the following acceleration, exercisability and valuation provisions will apply:

(i) The vesting of any Award that is determined to be a “Replaced Award” (as such term is defined below) will not be accelerated, and any applicable restrictions or conditions thereon will not lapse, solely as a result of the Change in Control.

(ii) If an award meeting the requirements of Section 9(a)(iii) (a “Replacement Award”) is notprovided to the Participant in accordance with Section 9(a)(iii) in order to replace or adjust such outstanding Award held by the Participant immediately prior to the Change in Control (a “Replaced Award”), then each then-outstanding Option and Stock Appreciation Right

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held by the Participant will become fully vested and exercisable and the restrictions applicable to each outstanding Award of Restricted Stock or Restricted Stock Units, Performance Award, Dividend Equivalent or Other Stock-Based Award held by the Participant will lapse and such Award will be fully vested (with any applicable performance goals deemed to have been achieved at a target level as of the date of such vesting). For the avoidance of doubt, if all Awards hereunder are terminated without any Replacement Awards or Replaced Awards, then the Company or its successor in the Change in Control may terminate all Awards whose exercise price is less than or equal to the value per Share realized in connection with the Change in Control (without any consideration therefor).

(iii) An award meets the conditions of this Section 9(a)(iii) (and hence qualifies as a Replacement Award) if (A) it is of the same type (e.g., stock option for Option, restricted stock for Restricted Stock, restricted stock unit for Restricted Stock Unit, etc.) as the Replaced Award, (B) it has a value at least equal to the value of the Replaced Award, (C) it relates to publicly traded equity securities of the Company or its successor in the Change in Control or another entity that is affiliated with the Company or its successor following the Change in Control, (D) if the Participant holding the Replaced Award is subject to U.S. federal income tax under the Code, the tax consequences to such Participant under the Code of the Replacement Award are not less favorable to such Participant than the tax consequences of the Replaced Award, and (E) its other terms and conditions are not less favorable to the Participant holding the Replaced Award than the terms and conditions of the Replaced Award (including the provisions that would apply in the event of a subsequent Change in Control). Without limiting the generality of the foregoing, the Replacement Award may take the form of a continuation of the Replaced Award if the requirements of the preceding sentence are satisfied. The determination of whether the conditions of this Section 9(a)(iii) are satisfied will be made by the Committee, as constituted immediately prior to the Change in Control, in its sole discretion. Without limiting the generality of the foregoing, the Committee may determine the value of Awards and Replacement Awards that are stock options by reference to either their intrinsic value or their fair value.

(iv) If the Participant terminates his or her employment for Good Reason, the Participant is involuntarily terminated by the Company or, if applicable, an Affiliate, for reasons other than for Cause, or the Participant’s employment terminates due to the Participant’s death or Disability or Retirement, as such terms are hereinafter defined, during the period of two years following a Change in Control (A) all Replacement Awards held by the Participant will become fully vested and, if applicable, exercisable and free of restrictions (with any applicable performance goals deemed to have been achieved at a target level as of the date of such vesting), and (B) all Options and Stock Appreciation Rights held by the Participant immediately before such termination of employment that the Participant also held as of the date of the Change in Control or that constitute Replacement Awards will remain exercisable for not less than three years following such termination of employment or until the expiration of the stated term of such Option or Stock Appreciation Rights, whichever period is shorter (provided, however, that if the applicable Award Agreement provides for a longer period of exercisability, that provision will control).

(b) For purposes of the Plan, a “Change in Control” shall be deemed to have occurred if:

(i) any Person, as hereinafter defined, is or becomes the Beneficial Owner, as hereinafter defined, directly or indirectly, of securities of the Company, as hereinafter defined, (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

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Beneficial Owner in connection with a transaction described in clause (A) of subsection (iii) below; or

(ii) the following individuals cease for any reason to constitute a majority of the number of Board directors then serving: individuals who, on the Effective Date, constitute the Board and any new Board director (other than a Board director whose initial assumption of office is in connection with an actual or threatened election contest, including a consent solicitation, relating to the election of directors of the Company or by reason of any agreement intended to avoid or settle any election contest or solicitation of proxies or consents) whose appointment or election by the Board or nomination for election by the Company’s shareholders was approved or recommended by a vote of at least two-thirds (2/3) of the Board directors then still in office who either were Board directors on the Effective Date or whose appointment, election or nomination for election was previously so approved or recommended; or

(iii) 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 (A) 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 (B) 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 or 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

(iv) the shareholders 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 shareholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale.

(c) Notwithstanding any provision of the Plan to the contrary, to the extent an Award shall be deemed to be vested or earned, or to the extent the restrictions applicable to an Award shall be deemed to lapse, upon the occurrence of a Change in Control and such Change in Control is not described by Section 409A(a)(2)(A)(v) of the Code, then any resulting payment permitted by this Section 9 that would be considered deferred compensation under Section 409A of the Code will instead be made to the Participant on the 30th day following the earliest of (i) the Participant’s “separation from service” with the Company (determined in accordance with Section 409A of the Code), (ii) the date payment otherwise would have been made in the absence of any provisions in the Plan to the contrary (provided such date is permissible under Section 409A of the Code), or (iii) the Participant’s death.

(d) Solely for purposes of Sections 9(b) and (d), and notwithstanding anything to the contrary in any other provision of the Plan, the following terms shall have the following meanings:

(i) “Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act;

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(ii) “Company” shall mean Stanley Black & Decker, Inc.;

(iii) “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 (A) the Company or any of its subsidiaries, (B) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Affiliates, (C) an underwriter temporarily holding securities pursuant to an offering of such securities, or (D) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company; and

(e) Unless otherwise specified in an applicable employment agreement, change in control severance agreement, change in control severance plan or award document, in each case, as may be applicable to the Participant:

(i) “Cause” shall mean

(A) the willful and continued failure by the Participant to substantially perform the Participant’s duties with the Company or its Affiliates (other than any such failure resulting from the Participant’s incapacity due to physical or mental illness or any such actual or anticipated failure after the issuance of a notice of termination for Good Reason by the Participant) that has not been cured within 30 calendar days after a written demand for substantial performance is delivered to the Participant by the Company, which demand specifically identifies the manner in which the Company believes that the Participant has not substantially performed the Participant’s duties, or

(B) the willful engaging by the Participant in conduct which is demonstrably and materially injurious to the Company or its Affiliates, monetarily or otherwise.

For purposes of clauses (A) and (B) of this definition, no act, or failure to act, on the Participant’s part shall be deemed “willful” unless done, or omitted to be done, by the Participant not in good faith and without reasonable belief that the Participant’s act, or failure to act, was in the best interest of the Company.

(ii) “Disability” shall have the meaning set forth in the applicable Award Agreement (or, if not defined in the applicable Award Agreement, shall have the meaning provided in Section 22(e)(3) of the Code, or any successor provision thereto);

(iii) “Good Reason” shall mean, in each case without the consent of the affected Participant:

(A) a reduction by the Company in the Participant’s annual base salary as in effect immediately prior to the Change in Control or as the same may be increased from time to time, except for across-the-board salary reductions similarly affecting all senior officers of the Company and all senior officers of any Person in control of the Company;

(B) the relocation of the Participant’s principal place of employment to a location more than 35 miles from the Participant’s principal place of employment immediately prior to the Change in Control or the Company’s requiring the Participant to be based anywhere other than such principal place of employment (or permitted relocation thereof), except for required travel on the Company’s business to an

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extent substantially consistent with the Participant’s business travel obligations immediately prior to the Change in Control;

(C) the failure by the Company to pay to the Participant any portion of the Participant’s current compensation or to pay to the Participant any portion of an installment of deferred compensation under any deferred compensation program of the Company, in any event within seven calendar days of the date such compensation is due.

No termination of employment shall be deemed to be for Good Reason unless (I) the applicable Participant provides the Company with written notice setting forth the specific facts or circumstances constituting Good Reason within 60 days after the initial existence of the occurrence of such facts or circumstances, (II) the Company has failed to cure such facts or circumstances within 30 days after its receipt of such written notice, and (III) the effective date of the Participant’s termination of employment for Good Reason occurs no later than one year after the initial existence of the facts or circumstances constituting Good Reason.

(iv) “Retirement” shall have the meaning set forth in the applicable Award Agreement (or, if not defined in the applicable Award Agreement, shall mean the Participant’s termination of employment with the Company and its Affiliates at or after attaining the age of 55 and completing 10 years of service).

Section 10. Compliance with Section 409A of the Code.

(a) To the extent applicable, it is intended that the Plan and any grants made hereunder comply with the provisions of Section 409A of the Code, so that the income inclusion provisions of Section 409A(a)(1) of the Code do not apply to Participants. The Plan and any Awards granted hereunder shall be administered in a manner consistent with this intent. Any reference in the Plan to Section 409A of the Code will also include any regulations or any other formal guidance promulgated with respect to Section 409A of the Code by the U.S. Department of the Treasury or the Internal Revenue Service.

(b) If at the time of a Participant’s separation from service (within the meaning of Section 409A of the Code), (i) the Participant shall be a specified employee (within the meaning of Section 409A of the Code and using the identification methodology selected by the Company from time to time) and (ii) the Company shall make a good faith determination that an amount payable hereunder constitutes deferred compensation (within the meaning of Section 409A of the Code) the payment of which is required to be delayed pursuant to the six-month delay rule set forth in Section 409A of the Code in order to avoid taxes or penalties under Section 409A of the Code, then the Company shall not pay such amount on the otherwise scheduled payment date but shall instead pay it, without interest, on the first business day of the seventh month after the Participant’s separation from service or, if earlier, on the Participant’s death.

(c) Notwithstanding any provision of the Plan or of any Award Agreement to the contrary, in light of the uncertainty with respect to the proper application of Section 409A of the Code, the Company reserves the right to make amendments to the Plan and any Award Agreements as the Company deems necessary or desirable to avoid the imposition of taxes or penalties under Section 409A of the Code. In any case, a Participant shall be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on a Participant or for a Participant’s account in connection with the Plan and any Award Agreements (including any taxes and penalties under Section 409A of the Code), and neither the Company nor any of its Affiliates shall have any obligation to indemnify or otherwise hold a Participant harmless from any or all of such taxes or penalties.

Section 11. Effective Date of the Plan

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The Plan shall be effective when approved by the shareholders of the Company.

Section 12. Term of the Plan

No Award shall be granted under the Plan after the tenth anniversary of the Effective Date. However, unless otherwise expressly provided in the Plan or in an applicable Award Agreement, any Award theretofore granted may extend beyond such date, and the authority of the Committee to amend, alter, or adjust any such Award, or to waive any conditions or rights under any such Award, and the authority of the Board to amend the Plan, shall extend beyond such date.

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EX-10.2

EXHIBIT 10.2

2018 Omnibus Award Plan

Stock Option Grant Certificate

Subject to the terms and conditions set forth in this certificate,

<NAME> has been awarded an Option to purchase <NUMBER> Shares as follows:

Grant Date:	<DATE>
Expiration Date:	<DATE2>
Purchase Price Per Share:	<AMOUNT>
Vests:	as set forth in your Equity Plan account for this Option grant

Stanley Black & Decker, Inc.

As a member of the Stanley Black & Decker team, your skills and contributions are vital to our Company's and its Shareholders continued success. This award of stock options provides you with the opportunity to earn significant financial rewards for your efforts and contributions to making Stanley Black & Decker the most successful company it can be.

On behalf of the Board of Directors, Congratulations.             

James M. Loree

Chief Executive Officer

Stanley Black & Decker, Inc.

NON-QUALIFIED STOCK OPTION TERMS

This certifies that Stanley Black & Decker, Inc. (the “Company”) has on the Grant Date granted to the Grantee named in this certificate the option (the “Option”) to purchase, on or before the Expiration Date at the Purchase Price per Share, the Option Shares, which shall be shares of the Common Stock of Stanley Black & Decker, Inc., par value $2.50 per share (the “Common Stock”) all as set forth in this certificate. The Option is granted subject to the following terms and conditions and the terms and conditions of the Company’s 2018 Omnibus Award Plan, as amended from time to time (the “Plan”).

1. Vesting and Exercisability. The Option will become vested and exercisable on the date (or dates) and in the amounts specified in the Participant’s Merrill Lynch (or subsequent record keeper’s) account for this Option grant, provided the Grantee continues in employment with the Company or an Affiliate until the applicable vesting date. In addition, 100% of the Option will become vested in the event of the Grantee’s termination of employment due to Retirement, Disability or death. Once vested, the vested portion of the Option may be exercised, from time to time, from the applicable vesting date until the earlier of (i) the Expiration Date set forth in this certificate or (ii) the applicable date described below in paragraph 6 regarding termination of employment. Stock may be purchased hereunder only to the extent that this Option has become vested. If, prior to the vesting date for any portion of the Option, the Grantee’s employment with the Company and its Affiliates terminates for any reason other than Retirement, Disability or death, the unvested portion of the Option will be forfeited.

2. Process of Exercise. The vested portion of the Option may be exercised, in whole or in part, by written notification to the Company’s Treasurer at the Company’s executive offices in New Britain, Connecticut, or by any other procedure established by the Company from time to time. Such notification shall (i) specify the number of shares with respect to which the Option is being exercised, and (ii) be accompanied by payment for such shares. Such notification shall be effective upon its receipt by the Treasurer or any other party designated by the Treasurer on or before the Expiration Date. The Option may not be exercised with respect to a fractional share or with respect to the lesser of 100 shares or the balance of the shares then covered by the Option. In the event the Expiration Date falls on a day which is not a regular business day at the Company’s executive offices in New Britain, Connecticut, then such written notification must be received at such office on or before the last regular business day prior to the Expiration Date. Payment is to be made by check payable to the order of Stanley Black & Decker, Inc. or by one of the alternative methods of payment described in the Plan and acceptable to the Company’s Compensation and Talent Development Committee (the “Committee”). No shares shall be issued on exercise of the Option until full payment for such shares has been made and all checks delivered in payment therefor have been collected. The Grantee shall not have any rights of a shareholder upon exercise of the Option, including but not limited to, the right to vote or to receive dividends, until stock certificates have been issued to the Grantee or Grantee’s ownership has been otherwise recorded.

3. Tax Withholding; etc. The Company shall not be required to issue any certificate or certificates for shares purchased upon the exercise of any part of the Option prior to (i) the admission of such shares to listing on any stock exchange on which the stock may then be listed, (ii) the completion of any registration or other qualification of such shares under any state or federal law or rulings or regulations of any governmental regulatory body, (iii) the obtaining of any consent or approval or other clearance from any governmental agency which the Company shall, in its sole discretion, determine to be necessary or advisable, and (iv) the payment to the Company, upon its demand, of any amount requested by the Company for withholding federal, state or local income or earnings taxes or any other applicable tax or assessment (plus interest or penalties thereon, if any, caused by a delay in making such payment) incurred by reason of the exercise of the Option or the transfer of such shares. The Option shall be exercised and

shares issued only upon compliance with the Securities Act of 1933, as amended (the “Act”), and any other applicable securities laws, and the Grantee shall comply with any requirements imposed by the Committee under such laws. If the Grantee qualifies as an “affiliate” (as that term is defined in Rule 144 (“Rule 144”) promulgated under the Act), upon demand by the Company, the Grantee (or any person acting on his or her behalf) shall deliver to the Treasurer at the time of any exercise of the Option a written representation that upon exercising the Option he or she will acquire shares pursuant to the Plan for his or her own account, that he or she is not taking the shares with a view to distribution and that he or she will dispose of the shares only in compliance with Rule 144.

4. Transferability. Except as otherwise provided in the Plan, the Option is not transferable by the Grantee otherwise than (i) by will or by the laws of descent and distribution, (ii) pursuant to a qualified domestic relations order, as defined in the Internal Revenue Code of 1986, as amended (the “Code”), or (iii) following the Grantee’s Retirement, in whole or in part and without payment of consideration, to (a) the Grantee’s spouse, children and grandchildren (an “Immediate Family Member”) or Immediate Family Members, (b) a trust or trusts for the exclusive benefit of Immediate Family Member(s), or (c) a partnership or partnerships in which Immediate Family Member(s) are the only Partner(s). More particularly (but without limiting the generality of the foregoing), the Option may not be assigned, transferred (except as provided above), pledged or hypothecated in any way, shall not be assignable by operation of law and shall not be subject to execution, attachment or similar process. The Company reserves the right to charge administrative fees in respect of such transfers.

5. No Right to Employment. The Option does not confer upon the Grantee any right with respect to continuation of employment with the Company or any Affiliate, and will not interfere in any way with the right of the Company or any Affiliate to terminate the Grantee’s employment.

6. Termination of Employment. Notwithstanding any other provisions:

If the Grantee’s employment with the Company and its Affiliates terminates for any reason other than Retirement, Disability or death, the Grantee may exercise the portion of the Option that has become vested as of the Grantee’s termination date until the earlier of (i) the Expiration Date set forth in this certificate or (ii) the last day of the two (2) month period following such termination date. If the Grantee’s employment terminates due to Retirement, Disability or death, the Option will become immediately vested in full and the Grantee (or, following the Grantee’s death, the person designated in the Grantee’s last will and testament or if no person is designated, the Grantee’s estate) may exercise the Option until the Expiration Date set forth in this certificate.

Leaves of absence for such periods and purposes conforming to the personnel policy of the Company as may be approved by the Committee shall not be deemed terminations or interruptions of employment.

In the event the Option is exercised by the executors, administrators, legatees or distributees of the estate of the Grantee, the Company shall be under no obligation to issue shares unless the Company is satisfied that the person or persons exercising the Option are the duly appointed legal representatives of the Grantee’s estate or the proper legatees or distributees thereof.

7. Adjustments. In the event of a merger, consolidation, reorganization, recapitalization, stock dividend, stock split or other changes in corporate structure or capitalization affecting the Common Stock, the number of shares remaining to be exercised under the Option and the Purchase Price shall be appropriately adjusted by the Committee in accordance with the terms and provisions of the Plan. If, as a result of any adjustment under this paragraph, the Grantee becomes entitled to a fractional share, he or she

shall have the right to purchase only the adjusted number of full shares and no payment or other adjustment will be made with respect to the fractional share so disregarded.

8. Miscellaneous. All decisions or interpretations of the Committee with respect to any question arising under the Plan or under the Option shall be binding, conclusive and final. The waiver by the Company of any provision of the Option shall not operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision of the Option. The Option shall be irrevocable during the Option period and its validity and construction shall be governed by the laws of the State of Connecticut. The terms and conditions set forth in the Option are subject in all respects to the terms and conditions of the Plan, which shall be controlling. Grantee agrees to execute such other agreements, documents, or assignments as may be necessary or desirable to effect the purposes of this the Option.

9. Binding Effect. The grant of this Option shall be binding and effective only if this certificate is executed by or on behalf of the Company.

10. Capitalized Terms. The term “Retirement” means the Grantee’s termination of employment at or after attaining the age of 55 and completing 10 years of service. The term “Disability” has the meaning provided in Section 22(e)(3) of the Code, or any successor provision. All other capitalized terms used in this certificate which are not defined herein or on the front of this certificate shall have the meanings given them in the Plan unless the context clearly requires otherwise.

EX-10.3

EXHIBIT 10.3

2018 Omnibus Award Plan

Restricted Stock Unit Award

Subject to the terms and conditions set forth in this certificate,

<Name> has been awarded <Number> Restricted Stock Units as follows:

Grant Date:	<Date>
Vests:	as set forth in your Equity Plan account for this Award

Stanley Black & Decker, Inc.

As a member of the Stanley Black & Decker team, your skills and contributions are vital to our Company's and its Shareholders continued success. This award of restricted stock units provides you with the opportunity to earn significant financial rewards for your efforts and contributions to making Stanley Black & Decker the most successful company it can be.

On behalf of the Board of Directors, Congratulations.    

James M. Loree

Chief Executive Officer

Stanley Black & Decker, Inc.

RESTRICTED STOCK UNIT AWARD TERMS

1. Grant of Restricted Stock Units. This certifies that Stanley Black & Decker, Inc. (the “Company”) has on the Award Date specified in this Award Certificate granted to the Participant named above an award (the “Award”) of that number of Restricted Stock Units set forth in this Award Certificate, subject to certain restrictions and on the terms and conditions contained in this Award Certificate and the 2018 Omnibus Award Plan, as amended from time to time (the “Plan”). A copy of the Plan is available upon request. In the event of any conflict between the terms of the Plan and this Award Certificate, the terms of the Plan shall govern.

2. Dividend Equivalents. Amounts equal to the dividends and distributions paid on shares of the Company's Common Stock, $2.50 par value per share (the “Common Stock”), shall be accrued for the benefit of the Participant to the same extent as if each Restricted Stock Unit then held by Participant was a share of Common Stock and shall vest and be distributed to the Participant in cash as the Restricted Stock Units vest.

3.Vesting. Subject to the terms and conditions of this Award Certificate and the Plan, the Restricted Stock Units shall vest in the amounts and on the dates specified in the Participant’s Merrill Lynch (or subsequent record keeper’s) account for this Award, provided the Participant remains continuously employed by the Company or an Affiliate until the applicable vesting date.

4.Settlement of Restricted Stock Units. Upon vesting of Participant's Restricted Stock Units, the Restricted Stock Units shall be cancelled and in exchange therefor the Company shall cause a number of shares of Common Stock equal to the number of the Restricted Stock Units then cancelled to be issued to the Participant in book-entry form. Any shares of Common Stock issued with respect to the Restricted Stock Units shall be fully registered and freely transferable.

5.Forfeiture Upon Termination of Employment. If, prior to vesting of the Restricted Stock Units pursuant to Section 3, Participant ceases to be continuously employed by either the Company or an Affiliate for any reason other than Retirement (as defined below), Disability (as defined below) or death, then Participant’s rights to all of the unvested Restricted Stock Units shall be immediately and irrevocably forfeited and no shares of Common Stock shall be issued in respect thereof. Approved leaves of absence or employment transfers between the Company or an Affiliate (or vice versa) shall not be deemed terminations or interruptions of employment for vesting of the Restricted Stock Units.

6.Death and Disability. Upon Participant's death or if Participant's employment is terminated as a result of Participant's Disability, the Restricted Stock Units shall become immediately vested in full. "Disability" has the meaning provided in Section 22(e)(3) of the Code, or any successor provision.

7. Retirement. Upon Participant's termination of employment with the Company and each of its Affiliates following the Participant's Retirement, the Restricted Stock Units shall become immediately vested in full. "Retirement" means the Participant’s termination of employment with the Company and each of its Affiliates after attaining the age of 55 and completing 10 years of service.

8. Restriction on Transfer. Restricted Stock Units shall not be assignable, alienable, saleable, or transferable. Notwithstanding the foregoing, Participant may, in the manner established by the Committee, designate a beneficiary or beneficiaries to receive shares of Common Stock with respect to the Restricted Stock Units upon the death of Participant.

9. Income Tax Matters.

(a) In order to comply with all applicable federal or state income tax laws or regulations, the Company may take such action as it deems appropriate to ensure that all applicable federal or state payroll, withholding, income or other taxes, which are the sole and absolute responsibility of Participant, are withheld or collected from Participant.

(b) In accordance with the terms of the Plan, and such rules as may be adopted by the Committee under the Plan, Participant may elect to satisfy Participant’s income tax withholding obligations arising from the vesting of the Restricted Stock Units by (i) delivering cash, check (bank check, certified check or personal check) or money order payable to the Company, (ii) having the Company withhold a portion of the Shares otherwise to be delivered having a Fair Market Value equal to the minimum statutorily required amount of such taxes, or (iii) delivering to the Company shares of Common Stock already owned by Participant having a Fair Market Value equal to the minimum statutorily required amount of such taxes. Any shares already owned by Participant referred to in the preceding sentence must have been owned by Participant for no less than six months prior to the date delivered to the Company if such shares were acquired upon the exercise of an option or upon the vesting of restricted stock units or restricted stock.

10. Other. The Company shall not be required to issue any certificate or certificates for shares upon vesting of the Restricted Stock Units (i) if the Common Stock is not listed on any national securities exchange, (ii) prior to the completion of any registration or other qualification of such shares under any state or federal law or rulings or regulations of any governmental regulatory body, and (iii) prior to the Company obtaining any consent or approval or other clearance from any governmental agency which the Company shall, in its sole discretion, determine to be necessary or advisable. Shares to be issued in respect of Restricted Stock Units will be issued only in compliance with the Securities Act of 1933, as amended (the "Act"), and any other applicable securities laws, and the Participant shall comply with any requirements imposed by the Committee under such laws. If the Participant qualifies as an "affiliate" (as that term is defined in Rule 144 ("Rule 144") promulgated under the Act), upon demand by the Company, the Participant (or any person acting on his or her behalf) shall deliver to the Treasurer at the time of vesting of the Restricted Stock Units a written representation that he or she will acquire shares pursuant to the Plan for his or her own account, that he or she is not taking the shares with a view to distribution and that he or she will dispose of the shares only in compliance with Rule 144.

11. No right to employment. This Restricted Stock Unit Award does not confer on Participant any right with respect to the continuation of employment with the Company or any Affiliate, nor will it interfere in any way with the right of the Company or any Affiliate to terminate the Participant’s employment at any time.

12. Miscellaneous. All decisions or interpretations of the Committee with respect to any question arising under the Plan or this Restricted Stock Unit Award shall be binding, conclusive and final. The waiver by the Company of any provision of this Restricted Stock Unit Award shall not operate as or be construed to be a subsequent waiver of the same provision or of any other provision of the Award. The validity and construction of the Restricted Stock Unit Award shall be governed by the laws of the State of Connecticut. Participant agrees to execute such other agreements, documents or assignments as may be necessary or desirable to effect the purposes of this Restricted Stock Unit Award.

13. Binding Effect. The grant of this Award shall be binding and effective only if this Award Certificate is executed by or on behalf of the Company.

14. Capitalized Terms. All capitalized terms used in this certificate which are not defined in this certificate shall have the meanings given them in the Plan unless the context clearly requires otherwise.

EX-10.4

EXHIBIT 10.4

2018 Omnibus Award Plan

Restricted Stock Unit Award

Subject to the terms and conditions set forth in this certificate,

<Name> has been awarded <Number> Restricted Stock Units as follows:

Grant Date:	<Date>
Vests:	as set forth in your Equity Plan account for this Award

Stanley Black & Decker, Inc.

As a member of the Stanley Black & Decker team, your skills and contributions are vital to our Company's and its Shareholders continued success. This award of restricted stock units provides you with the opportunity to earn significant financial rewards for your efforts and contributions to making Stanley Black & Decker the most successful company it can be.

On behalf of the Board of Directors, Congratulations.

James M. Loree

Chief Executive Officer

Stanley Black & Decker, Inc.

RESTRICTED STOCK UNIT AWARD TERMS

1. Grant of Restricted Stock Units. This certifies that Stanley Black & Decker, Inc. (the “Company”) has on the Award Date specified in this Award Certificate granted to the Participant named above an award (the “Award”) of that number of Restricted Stock Units set forth in this Award Certificate, subject to certain restrictions and on the terms and conditions contained in this Award Certificate and the 2018 Omnibus Award Plan, as amended from time to time (the “Plan”). A copy of the Plan is available upon request. In the event of any conflict between the terms of the Plan and this Award Certificate, the terms of the Plan shall govern.

2. Dividend Equivalents. Amounts equal to the dividends and distributions paid on shares of the Company's Common Stock, $2.50 par value per share (the “Common Stock”), shall be accrued for the benefit of the Participant to the same extent as if each Restricted Stock Unit then held by Participant was a share of Common Stock and shall vest and be distributed to the Participant in cash as the Restricted Stock Units vest.

3.Vesting. Subject to the terms and conditions of this Award Certificate and the Plan, the Restricted Stock Units shall vest in the amounts and on the dates specified in the Participant’s Merrill Lynch (or subsequent record keeper’s) account for this Award, provided the Participant remains continuously employed by the Company or an Affiliate until the applicable vesting date.

4.Settlement of Restricted Stock Units. Upon vesting of Participant's Restricted Stock Units, the Restricted Stock Units shall be cancelled and in exchange therefor the Company shall cause a number of shares of Common Stock equal to the number of the Restricted Stock Units then cancelled to be issued to the Participant in book-entry form. Any shares of Common Stock issued with respect to the Restricted Stock Units shall be fully registered and freely transferable.

5.Forfeiture Upon Termination of Employment. If, prior to vesting of the Restricted Stock Units pursuant to Section 3, Participant ceases to be continuously employed by either the Company or an Affiliate for any reason other than Disability (as defined below) or death, then Participant’s rights to all of the unvested Restricted Stock Units shall be immediately and irrevocably forfeited and no shares of Common Stock shall be issued in respect thereof. Approved leaves of absence or employment transfers between the Company or an Affiliate (or vice versa) shall not be deemed terminations or interruptions of employment for vesting of the Restricted Stock Units.

6.Death and Disability. Upon Participant's death or if Participant's employment is terminated as a result of Participant's Disability, the Restricted Stock Units shall become immediately vested in full. "Disability" has the meaning provided in Section 22(e)(3) of the Code, or any successor provision.

7. Restriction on Transfer. Restricted Stock Units shall not be assignable, alienable, saleable, or transferable. Notwithstanding the foregoing, Participant may, in the manner established by the Committee, designate a beneficiary or beneficiaries to receive shares of Common Stock with respect to the Restricted Stock Units upon the death of Participant.

8. Income Tax Matters.

(a) In order to comply with all applicable federal or state income tax laws or regulations, the Company may take such action as it deems appropriate to ensure that all applicable federal or state payroll, withholding, income or other taxes, which are the sole and absolute responsibility of Participant, are withheld or collected from Participant.

(b) In accordance with the terms of the Plan, and such rules as may be adopted by the Committee under the Plan, Participant may elect to satisfy Participant’s income tax withholding obligations arising from the vesting of the Restricted Stock Units by (i) delivering cash, check (bank check, certified check or personal check) or money order payable to the Company, (ii) having the Company withhold a portion of the Shares otherwise to be delivered having a Fair Market Value equal to the minimum statutorily required amount of such taxes, or (iii) delivering to the Company shares of Common Stock already owned by Participant having a Fair Market Value equal to the minimum statutorily required amount of such taxes. Any shares already owned by Participant referred to in the preceding sentence must have been owned by Participant for no less than six months prior to the date delivered to the Company if such shares were acquired upon the exercise of an option or upon the vesting of restricted stock units or restricted stock.

9. Other. The Company shall not be required to issue any certificate or certificates for shares upon vesting of the Restricted Stock Units (i) if the Common Stock is not listed on any national securities exchange, (ii) prior to the completion of any registration or other qualification of such shares under any state or federal law or rulings or regulations of any governmental regulatory body, and (iii) prior to the Company obtaining any consent or approval or other clearance from any governmental agency which the Company shall, in its sole discretion, determine to be necessary or advisable. Shares to be issued in respect of Restricted Stock Units will be issued only in compliance with the Securities Act of 1933, as amended (the "Act"), and any other applicable securities laws, and the Participant shall comply with any requirements imposed by the Committee under such laws. If the Participant qualifies as an "affiliate" (as that term is defined in Rule 144 ("Rule 144") promulgated under the Act), upon demand by the Company, the Participant (or any person acting on his or her behalf) shall deliver to the Treasurer at the time of vesting of the Restricted Stock Units a written representation that he or she will acquire shares pursuant to the Plan for his or her own account, that he or she is not taking the shares with a view to distribution and that he or she will dispose of the shares only in compliance with Rule 144.

10. No right to employment. This Restricted Stock Unit Award does not confer on Participant any right with respect to the continuation of employment with the Company or any Affiliate, nor will it interfere in any way with the right of the Company or any Affiliate to terminate the Participant’s employment at any time.

11. Miscellaneous. All decisions or interpretations of the Committee with respect to any question arising under the Plan or this Restricted Stock Unit Award shall be binding, conclusive and final. The waiver by the Company of any provision of this Restricted Stock Unit Award shall not operate as or be construed to be a subsequent waiver of the same provision or of any other provision of the Award. The validity and construction of the Restricted Stock Unit Award shall be governed by the laws of the State of Connecticut. Participant agrees to execute such other agreements, documents or assignments as may be necessary or desirable to effect the purposes of this Restricted Stock Unit Award.

12. Binding Effect. The grant of this Award shall be binding and effective only if this Award Certificate is executed by or on behalf of the Company.

13. Capitalized Terms. All capitalized terms used in this Award Certificate which are not defined in this Award Certificate shall have the meanings given them in the Plan unless the context clearly requires otherwise.

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:	July 20, 2018	/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:	July 20, 2018	/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 June 30, 2018 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: July 20, 2018

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 June 30, 2018 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: July 20, 2018

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 17, 2018
Document Information [Line Items]
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Entity Common Stock, Shares Outstanding		153,009,803
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Trading Symbol	SWK
Entity Registrant Name	STANLEY BLACK & DECKER, INC.
Entity Central Index Key	0000093556
Current Fiscal Year End Date	--12-29
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		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Net Sales	$ 3,643.6	$ 3,286.7	$ 6,852.9	$ 6,143.0
Costs and Expenses
Cost of Goods and Services Sold	2,356.5	2,073.4	4,400.1	3,863.7
Selling, General and Administrative Expense	801.8	738.6	1,580.6	1,420.6
Provision for Doubtful Accounts	4.0	5.6	10.8	13.9
Other-net	119.3	55.3	177.3	155.8
Gain (Loss) on Disposition of Business	0.8	0.9	0.8	(268.3)
Defined Benefit Plan, Settlements, Plan Assets	0.0	0.3	0.0	12.8
Restructuring charges	13.4	8.0	36.3	23.8
Interest Expense	69.0	56.0	132.2	107.3
Interest income	(15.6)	(9.7)	(31.4)	(18.3)
Costs and Expenses, Total	3,349.2	2,928.4	6,306.7	5,311.3
Earnings from continuing operations before income taxes	294.4	358.3	546.2	831.7
Income taxes on continuing operations	1.0	80.7	82.7	160.4
Earnings from continuing operations	293.4	277.6	463.5	671.3
Income (Loss) from Continuing Operations Attributable to Noncontrolling Interest	(0.2)	0.0	(0.7)	0.0
Net Income (Loss) Attributable to Parent	293.6	277.6	464.2	671.3
Total Comprehensive (Loss) Income Attributable to Common Shareowners	$ 14.5	$ 360.1	$ 280.9	$ 867.3
Basic earnings per share of common stock:
Total basic earnings per share of common stock	$ 1.96	$ 1.86	$ 3.09	$ 4.49
Diluted earnings per share of common stock:
Total dilutive earnings per share of common stock	(1.93)	(1.82)	(3.03)	(4.42)
Dividends per shares of common stock	$ 0.63	$ 0.58	$ 1.26	$ 1.16
Weighted Average Shares Outstanding (in thousands):
Basic (in shares)	149,748	149,514	150,101	149,353
Diluted (in shares)	152,494	152,226	153,124	151,862

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 30, 2017
Document Period End Date	Jun. 30, 2018
Current Assets
Cash and Cash Equivalents, at Carrying Value	$ 385.8	$ 637.5
Accounts, Notes, Loans and Financing Receivable, Net, Current	2,151.4	1,628.7
Inventories, net	2,444.2	2,018.4
Other current assets	341.2	274.4
Total Current Assets	5,322.6	4,559.0
Property, Plant and Equipment, net	1,817.1	1,742.5
Goodwill	8,947.7	8,776.1
Intangibles, net	3,596.7	3,507.4
Other Assets	495.5	512.7
Total Assets	20,179.6	19,097.7
Current Liabilities
Short-term borrowings	1,101.5	5.3
Long-term Debt, Current Maturities	978.9	977.5
Accounts payable	2,288.5	2,021.0
Accrued expenses	1,270.0	1,387.7
Total Current Liabilities	5,638.9	4,391.5
Long-Term Debt	2,831.2	2,828.2
Deferred Taxes	467.0	436.1
Post-retirement Benefits	603.7	629.9
Other Liabilities	2,451.0	2,507.0
Stanley Black & Decker, Inc. Shareowners' Equity
Preferred stock, without par value: Authorized and unissued 10,000,000 shares	750.0	750.0
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	6,273.9	5,998.7
Additional paid in capital	4,606.4	4,643.2
Accumulated other comprehensive loss	(1,772.4)	(1,589.1)
ESOP	(14.4)	(18.8)
Stockholders' Equity Subtotal, Total	10,285.8	10,226.3
Less: cost of common stock in treasury	(2,100.4)	(1,924.1)
Stanley Black & Decker, Inc. Shareowners' Equity	8,185.4	8,302.2
Non-controlling interests	2.4	2.8
Total Shareowners' Equity	8,187.8	8,305.0
Total Liabilities and Shareowners' Equity	$ 20,179.6	$ 19,097.7

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 30, 2017
Preferred stock, shares unissued	9,250,000	10,000,000
Preferred stock, shares authorized	10,000,000	10,000,000
Common Stock, Par or Stated Value Per Share	$ 2.5	$ 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		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest	$ 293.4	$ 277.6	$ 463.5	$ 671.3
Restricted Cash and Cash Equivalents, Current	403.4	539.5	403.4	539.5
Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation and amortization of property, plant and equipment	83.2	73.7	164.5	141.5
Amortization of intangibles	44.5	42.1	86.8	75.8
Changes in working capital	(185.0)	(263.7)	(729.3)	(797.0)
Changes in other assets and liabilities	(38.9)	21.2	(137.7)	14.4
Cash provided by operating activities	198.0	151.8	(151.4)	(162.3)
Gain (Loss) on Disposition of Business	0.8	0.9	0.8	(268.3)
Proceeds from Divestiture of Businesses, Net of Cash Divested	(1.7)	0.5	(1.9)	745.3
INVESTING ACTIVITIES
Capital expenditures	(111.7)	(122.2)	(218.0)	(186.9)
Business acquisitions, net of cash acquired	(505.6)	5.3	(506.8)	(2,430.1)
Proceeds from sale of assets	6.6	3.2	7.9	22.5
Proceeds (payments) on net investment hedge settlements	37.8	(24.4)	20.3	(3.7)
Supplemental Deferred Purchase Price	0.0	104.7	0.0	227.8
Payments for (Proceeds from) Other Investing Activities	(12.9)	(13.5)	(15.3)	(17.3)
Cash provided by (used in) investing activities	(587.5)	(46.4)	(713.8)	(1,642.4)
FINANCING ACTIVITIES
Stock purchase contract fees	(10.1)	0.0	(20.2)	0.0
Net short-term borrowings	753.6	(593.1)	1,135.6	563.6
Cash dividends on common stock	(94.2)	(86.5)	(189.1)	(173.2)
Proceeds from the issuance of common stock	9.5	15.6	22.6	32.9
Proceeds from Issuance of Preferred Stock and Preference Stock	0.0	727.5	0.0	727.5
Payments for Repurchase of Other Equity	0.0	(25.1)	(57.3)	(25.1)
Purchase of common stock for treasury	(201.3)	(2.1)	(212.7)	(15.6)
Proceeds from (Payments for) Other Financing Activities	0.0	(1.3)	(5.5)	(2.3)
Cash provided by (used in) financing activities	457.5	35.0	673.4	1,107.8
Effect of exchange rate changes on cash and cash equivalents	(87.8)	21.1	(59.9)	59.2
Change in cash and cash equivalents	(19.8)	161.5	(251.7)	(637.7)
Cash and cash equivalents, beginning of period		378.0	637.5	1,177.2
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 385.8	$ 539.5	$ 385.8	$ 539.5

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Reconciliation of Cash and Cash Equivalents - USD ($) $ in Millions	Jun. 30, 2018	Dec. 30, 2017
Restricted Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents, at Carrying Value	$ 385.8	$ 637.5
Restricted Cash and Investments, Current	17.6	17.6
Restricted Cash and Cash Equivalents, Current	$ 403.4	$ 655.1

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Basis of Presentation

6 Months Ended

Jun. 30, 2018

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 and six months ended June 30, 2018 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 30, 2017, and subsequent related filings with the Securities and Exchange Commission.

In April 2018, the Company acquired the industrial business of Nelson Fastener Systems ("Nelson") from the Doncasters Group, which is being accounted for as a business combination. The results of this acquisition are being consolidated into the Company's Industrial segment. In March 2017, the Company acquired the Tools business of Newell Brands ("Newell Tools") and the Craftsman® brand, which were both accounted for as business combinations. The results of these acquisitions have been consolidated into the Company's Tools & Storage segment. Refer to Note F, Acquisitions, for further discussion on these acquisitions.

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. The Company also sold two small businesses within the Tools & Storage segment in the first and fourth quarters of 2017, and one small business in the Industrial segment in the third quarter of 2017. The operating results of these businesses have been reported within continuing operations in the Condensed Consolidated Financial Statements through their respective dates of sale in 2017. Refer to Note T, Divestitures, 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. Certain amounts reported in the previous year have been recast as a result of the retrospective adoption of new accounting standards in the first quarter of 2018. Refer to Note B, New Accounting Standards, for further discussion.

Financial Instruments

Derivative financial instruments are employed to manage risks, including foreign currency, interest rate exposures and commodity prices and are not used for trading or speculative purposes. 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. The Company recognizes all derivative instruments in the balance sheet at fair value.

Changes in the fair value of derivatives are recognized periodically either in earnings or in shareowners’ equity as a component of other comprehensive income (loss) ("OCI") , depending on whether the derivative financial instrument is undesignated or qualifies for hedge accounting, and if so, whether it represents a fair value, cash flow, or net investment hedge. Changes in the fair value of derivatives accounted for as fair value hedges are recorded in earnings in the same caption as the changes in the fair value of the hedged items. Gains and losses on derivatives designated as cash flow hedges, to the extent they are included in the assessment of effectiveness, are recorded in other comprehensive income (loss) and subsequently reclassified to earnings to offset the impact of the hedged items when they occur. In the event it becomes probable the forecasted transaction to which a cash flow hedge relates will not occur, the derivative would be terminated and the amount in other comprehensive income (loss) would be recognized in earnings. Changes in the fair value of derivatives that are designated and qualify as a hedge of the net investment in foreign operations, to the extent they are included in the assessment of effectiveness, are reported in other comprehensive income (loss) and are deferred until disposal of the underlying assets. Gains and losses representing components excluded from the assessment of effectiveness for cash flow and fair value hedges are recognized in earnings on a straight-line basis in the same caption as the hedged item over the term of the hedge. Gains and losses representing components excluded from the assessment of effectiveness for net investment hedges are recognized in earnings on a straight-line basis in Other, net over the term of the hedge.

The net interest paid or received on interest rate swaps is recognized as interest expense. Gains and losses resulting from the early termination of interest rate swap agreements are deferred and amortized as adjustments to interest expense over the remaining period of the debt originally covered by the terminated swap.

Changes in the fair value of derivatives not designated as hedges are reported in Other, net in the Consolidated Statements of Operations and Comprehensive Income. Refer to Note I, Financial Instruments, for further discussion.

Revenue Recognition

The Company’s revenues result from the sale of goods or services and reflect the consideration to which the Company expects to be entitled. The Company records revenue based on a five-step model in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"). For its customer contracts, the Company identifies the performance obligations (goods or services), determines the transaction price, allocates the contract transaction price to the performance obligations, and recognizes the revenue when (or as) the performance obligation is transferred to the customer. A good or service is transferred when (or as) the customer obtains control of that good or service. The majority of the Company’s revenues are recorded at a point in time from the sale of tangible products.

Provisions for customer volume rebates, product returns, discounts and allowances are variable consideration and are recorded as a reduction of revenue in the same period the related sales are recorded. Such provisions are calculated using historical averages adjusted for any expected changes due to current business conditions. Consideration given to customers for cooperative advertising is recognized as a reduction of revenue except to the extent that there is a distinct good or service and evidence of the fair value of the advertising, in which case the expense is classified as selling, general, and administrative expense.

The Company’s revenues can be generated from contracts with multiple performance obligations. When a sales agreement involves multiple performance obligations, each obligation is separately identified and the transaction price is allocated based on the amount of consideration the Company expects to be entitled to in exchange for transferring the promised good or service to the customer.

Sales of security monitoring systems may have multiple performance obligations, including equipment, installation and monitoring or maintenance services. In most instances, the Company allocates the appropriate amount of consideration to each performance obligation based on the standalone selling price ("SSP") of the distinct goods or services performance obligation. In circumstances where SSP is not observable, the Company allocates the consideration for the performance obligations by utilizing one of the following methods: expected cost plus margin, the residual approach, or a mix of these estimation methods.

For performance obligations that the Company satisfies over time, revenue is recognized by consistently applying a method of measuring progress toward complete satisfaction of that performance obligation. The Company utilizes the method that most accurately depicts the progress toward completion of the performance obligation.

The Company’s contract sales for the installation of security intruder systems and other construction-related projects are generally recorded under the input method. The input method recognizes revenue on the basis of the Company’s efforts or inputs to the satisfaction of a performance obligation relative to the total inputs expected to satisfy that performance obligation. Revenue recognized on security contracts in process are based upon the allocated contract price and related total inputs of the project at completion. The extent of progress toward completion is generally measured using input methods based on labor metrics. Revisions to these estimates as contracts progress have the effect of increasing or decreasing profits each period. Provisions for anticipated losses are made in the period in which they become determinable. The revenues for monitoring and monitoring-related services are recognized as services are rendered over the contractual period.

The Company utilizes the output method for contract sales in the Oil & Gas business. The output method recognizes revenue based on direct measurements of the customer value of the goods or services transferred to date relative to the remaining goods or services promised under the contract. The output method includes methods such as surveys of performance completed to date, appraisals of results achieved, milestones reached, time elapsed, and units produced or units delivered.

Contract assets or liabilities result from transactions with revenue recorded over time. If the measure of remaining rights exceeds the measure of the remaining performance obligations the Company records a contract asset. Conversely, if the measure of the remaining performance obligations exceeds the measure of the remaining rights, the Company records a contract liability.

Incremental costs of obtaining or fulfilling a contract with a customer that are expected to be recovered are recognized and classified in Other current assets or Other assets in the Condensed Consolidated Balance Sheets and are typically amortized over the contract period. The Company recognizes the incremental costs of obtaining or fulfilling a contract as expense when incurred if the amortization period of the asset is one year or less.

Customer billings for services not yet rendered are deferred and recognized as revenue as the services are rendered. The associated deferred revenue is included in Accrued expenses or Other liabilities, as appropriate, in the Condensed Consolidated Balance Sheets.

Refer to Note D, Accounts and Notes Receivable, for further discussion.

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New Accounting Standards

6 Months Ended

Jun. 30, 2018

Notes To Financial Statements [Abstract]

New Accounting Standards

NEW ACCOUNTING STANDARDS

Adoption of New Accounting Standards

In March 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-07, Compensation-Retirement Benefits (Topic 715) (“new pension standard”). The new pension standard improves the presentation of net periodic pension cost and net periodic postretirement benefit cost. The Company adopted this standard in the first quarter of 2018 utilizing the full retrospective method. As a result of the adoption, all components other than service cost were reclassified from Cost of sales and Selling, general and administrative to Other, net in the Consolidated Statements of Operations and Comprehensive Income.

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. This 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. The Company adopted these standards in the first quarter of 2018 utilizing the retrospective transition method. The impacts of the new standards relate to the presentation of restricted cash as well as certain cash flows related to the Company's accounts receivable sale program. Refer to Note D, Accounts and Notes Receivable, for further discussion.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“new revenue standard”). The new revenue 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. The standard allows for initial application to be performed retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. During 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 adopted the new revenue recognition standard in the first quarter of 2018 using the full retrospective method. Accordingly, certain prior period amounts have been recast to reflect the financial results of the Company in accordance with the new standard. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings for the earliest balance sheet period presented.

As a result of the adoption of the new revenue standard, outbound freight is recorded as a component of cost of sales as opposed to a reduction of net sales. The new revenue standard also requires companies to record an asset for anticipated customer return of inventory and a sales return reserve at the gross amount of the initial sale, rather than at the net margin amount. Additionally, certain sales to distributors subject to a guarantee with a third-party financier that were previously deferred are now recognized upon shipment in accordance with the new revenue standard and the associated short-term and long-term accounts receivable and short-term and long-term debt balances have been recast. Lastly, for certain product warranties provided to customers that meet the criteria of a service-type warranty, a portion of consideration paid by customers must now be deferred and recognized as revenue over the anticipated service warranty period.

As a result of the adoption of the new revenue and pension standards, certain amounts in the Consolidated Statements of Operations and Comprehensive Income for the three and six months ended July 1, 2017 have been recast, as follows:

(Millions of Dollars, except per share amounts)	Three months ended July 1, 20171		Adoption of ASU 2014-09		Adoption of ASU 2017-07			Three months ended July 1, 2017
Net Sales	$	3,229.5	$	57.2	$	—		$	3,286.7
Cost of sales	$	2,017.3	$	55.8	$	0.3		$	2,073.4
Selling, general and administrative	$	733.9	$	—	$	4.7		$	738.6
Provision for doubtful accounts	$	4.8	$	0.8	$	—		$	5.6
Other, net	$	60.3	$	—	$	(5.0	)	$	55.3
Earnings before income taxes	$	357.7	$	0.6	$	—		$	358.3
Income taxes	$	80.5	$	0.2	$	—		$	80.7
Net earnings attributable to common shareowners	$	277.2	$	0.4	$	—		$	277.6
Diluted earnings per share of common stock	$	1.82	$	—	$	—		$	1.82

¹As previously reported in the Company's Form 10-Q for the quarterly period ended July 1, 2017.

(Millions of Dollars, except per share amounts)	Six months ended July 1, 20171		Adoption of ASU 2014-09		Adoption of ASU 2017-07			Six months ended July 1, 2017
Net Sales	$	6,035.1	$	107.9	$	—		$	6,143.0
Cost of sales	$	3,757.6	$	105.6	$	0.5		$	3,863.7
Selling, general and administrative	$	1,410.4	$	—	$	10.2		$	1,420.6
Provision for doubtful accounts	$	13.0	$	0.9	$	—		$	13.9
Other, net	$	166.5	$	—	$	(10.7	)	$	155.8
Earnings before income taxes	$	830.3	$	1.4	$	—		$	831.7
Income taxes	$	160.0	$	0.4	$	—		$	160.4
Net earnings attributable to common shareowners	$	670.3	$	1.0	$	—		$	671.3
Diluted earnings per share of common stock	$	4.41	$	0.01	$	—		$	4.42

¹As previously reported in the Company's Form 10-Q for the year-to-date period ended July 1, 2017.

As a result of the adoption of the new revenue standard, certain balances as of December 30, 2017 in the Condensed Consolidated Balance Sheets have been recast, as follows:

(Millions of Dollars)	Balance at December 30, 20171			Adoption of ASU 2014-09			Balance at December 30, 2017
ASSETS
Accounts and notes receivable, net	$	1,635.9		$	(7.2	)	$	1,628.7
Other assets	$	487.8		$	24.9		$	512.7
LIABILITIES AND SHAREOWNERS' EQUITY
Current maturities of long-term debt	$	983.4		$	(5.9	)	$	977.5
Accrued expenses	$	1,352.1		$	35.6		$	1,387.7
Long-term debt	$	2,843.0		$	(14.8	)	$	2,828.2
Deferred taxes	$	434.2		$	1.9		$	436.1
Other liabilities	$	2,511.1		$	(4.1	)	$	2,507.0
Retained earnings2	$	5,990.4		$	8.3		$	5,998.7
Accumulated other comprehensive loss	$	(1,585.9	)	$	(3.2	)	$	(1,589.1	)

¹As previously reported in the Company's Form 10-K for the year ended December 30, 2017.

²Adjustment includes the cumulative effect of the adoption of $4.3 million for periods prior to fiscal year 2016.

As a result of the adoption of the new revenue and cash flows standards, certain amounts for the three and six months ended July 1, 2017 in the Condensed Consolidated Statements of Cash Flows have been recast, as follows:

(Millions of Dollars)	Three months ended July 1, 20171			Adoption of ASU 2014-09			Adoption of ASU 2016-15 & 2016-18			Three months ended July 1, 2017
OPERATING ACTIVITIES
Net earnings	$	277.2		$	0.4		$	—		$	277.6
Changes in working capital	$	(159.1	)	$	0.1		$	(104.7	)	$	(263.7	)
Changes in other assets and liabilities	$	21.7		$	(0.5	)	$	—		$	21.2
Cash provided by (used in) operating activities	$	256.5		$	—		$	(104.7	)	$	151.8
INVESTING ACTIVITIES
Proceeds from deferred purchase price receivable	$	—		$	—		$	104.7		$	104.7
Cash used in investing activities	$	(151.1	)	$	—		$	104.7		$	(46.4	)
Change in cash, cash equivalents and restricted cash	$	161.5		$	—		$	—		$	161.5
Cash, cash equivalents and restricted cash, beginning of period	$	378.0		$	—		$	—		$	378.0
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	$	539.5		$	—		$	—		$	539.5

¹As previously reported in the Company's Form 10-Q for the quarterly period ended July 1, 2017.

(Millions of Dollars)	Six months ended July 1, 20171			Adoption of ASU 2014-09			Adoption of ASU 2016-15 & 2016-18			Six months ended July 1, 2017
OPERATING ACTIVITIES
Net earnings	$	670.3		$	1.0		$	—		$	671.3
Changes in working capital	$	(569.3	)	$	0.1		$	(227.8	)	$	(797.0	)
Changes in other assets and liabilities	$	60.9		$	(1.1	)	$	(45.4	)	$	14.4
Cash provided by (used in) operating activities	$	110.9		$	—		$	(273.2	)	$	(162.3	)
INVESTING ACTIVITIES
Proceeds from deferred purchase price receivable	$	—		$	—		$	227.8		$	227.8
Cash used in investing activities	$	(1,870.2	)	$	—		$	227.8		$	(1,642.4	)
Change in cash, cash equivalents and restricted cash	$	(592.3	)	$	—		$	(45.4	)	$	(637.7	)
Cash, cash equivalents and restricted cash, beginning of period	1,131.8			$	—		$	45.4		$	1,177.2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	$	539.5		$	—		$	—		$	539.5

¹As previously reported in the Company's Form 10-Q for the year-to-date period ended July 1, 2017.

In December 2017, the U.S. Securities and Exchange Commission ("SEC") staff issued SAB 118, which provides guidance on accounting for the tax effects of the Tax Cuts and Jobs Act (the “Act”). SAB 118 provides a measurement period that should not extend beyond one year from the Act enactment date for companies to complete the accounting under ASC 740, Income Taxes, (the "measurement period"). In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Act is incomplete but it can determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 based on the provisions of the tax laws that were in effect immediately before the enactment of the Act. The measurement period for accounting for the Act begins in the period of enactment and ends when an entity has obtained, prepared and analyzed the information necessary to complete the accounting requirements under ASC 740, but in no event can the measurement period extend beyond one year. Any provisional amount or adjustment to a provisional amount included in a company’s financial statements during the measurement period should be included in income from continuing operations as an adjustment to tax expense or benefit in the reporting period the amounts are determined. Refer to Note P, Income Taxes, for further discussion.

In August 2017, the FASB issued ASU 2017-12, Derivatives And Hedging (Topic 815):Targeted Improvements to Accounting for Hedge Activities. The new standard amends the hedge accounting recognition and presentation requirements in ASC 815. As permitted by ASU 2017-12, the Company early adopted this standard in the first quarter of 2018 on a prospective basis. Refer to Note A, Significant Accounting Policies, for the updated financial instruments policy related to the adoption of this standard.

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. The Company adopted this standard in the first quarter of 2018 and it did not have an impact on its consolidated financial statements.

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. The Company adopted this standard prospectively in the first quarter of 2018.

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. The Company adopted this standard in the first quarter of 2018 and it did not have a material impact 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. The Company adopted this standard in the first quarter 2018 and it did not have a material impact on its consolidated financial statements.

Recently Issued Accounting Standards Not Yet Adopted

In July 2018, the FASB issued ASU 2018-09, Codification Improvements.  This standard does not prescribe any new accounting guidance, but instead makes minor improvements and clarifications of several different FASB Accounting Standards Codification areas based on comments and suggestions made by various stakeholders.  Certain updates are applicable immediately while others provide for a transition period to adopt as part of the next fiscal year beginning after December 15, 2018.  The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The new guidance permits, but does not require, companies to reclassify the stranded tax effects of the Act on items within accumulated other comprehensive income to retained earnings. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.

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

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326). The new standard amends guidance on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ("new lease standard"). The objective of the new lease standard 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. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 (Leases), which provides narrow amendments to clarify how to apply certain aspects of the new lease standard. Both standards are effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods and are to be applied utilizing a modified retrospective approach. The Company is currently evaluating these standards to determine the impact they may have on its consolidated financial statements.

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Earnings Per Share

6 Months Ended

Jun. 30, 2018

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 and six months ended June 30, 2018 and July 1, 2017:

	Second Quarter				Year-to-Date
	2018		2017		2018		2017
Numerator (in millions):
Net earnings attributable to common shareowners1	$	293.6	$	277.6	$	464.2	$	671.3
Denominator (in thousands):
Basic weighted-average shares	149,748		149,514		150,101		149,353
Dilutive effect of stock contracts and awards	2,746		2,712		3,023		2,509
Diluted weighted-average shares	152,494		152,226		153,124		151,862
Earnings per share of common stock1:
Basic	$	1.96	$	1.86	$	3.09	$	4.49
Diluted	$	1.93	$	1.82	$	3.03	$	4.42

¹Prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note B, New Accounting Standards, for further discussion.

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):

	Second Quarter		Year-to-Date
	2018	2017	2018	2017
Number of stock options	1,161	—	1,162	1,163

As described in detail in Note J, Equity Arrangements, the Company issued $750 million Equity Units in May 2017 comprised of $750.0 million of convertible preferred stock and forward stock purchase contracts. On and after May 15, 2020, the convertible preferred stock may be converted into common stock at the option of the holder. At the election of the Company, upon conversion, the Company may deliver cash, common stock, or a combination thereof. The conversion rate was initially 6.1627 shares of common stock per one share of convertible preferred stock, which is equivalent to an initial conversion price of approximately $162.27 per share of common stock. As of June 30, 2018, due to the customary anti-dilution provisions, the conversion rate was 6.1709, equivalent to a conversion price of approximately $162.05 per share of common stock. The convertible preferred stock is excluded from the denominator of the diluted earnings per share calculation on the basis that the convertible preferred stock will be settled in cash except to the extent that the conversion value of the convertible preferred stock exceeds its liquidation preference. Therefore, before any redemption or conversion, the common shares that would be required to settle the applicable conversion value in excess of the liquidation preference, if the Company elects to settle such excess in common shares, are included in the denominator of diluted earnings per share in periods in which they are dilutive. The shares related to the convertible preferred stock have been anti-dilutive during most of 2018.

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Financing Receivables

6 Months Ended

Jun. 30, 2018

Notes To Financial Statements [Abstract]

Financing Receivables

(Millions of Dollars)	June 30, 2018			December 30, 20171
Trade accounts receivable	$	1,952.6		$	1,388.1
Trade notes receivable	145.4			158.7
Other accounts receivable	143.7			162.3
Gross accounts and notes receivable	$	2,241.7		$	1,709.1
Allowance for doubtful accounts	(90.3		)	(80.4		)
Accounts and notes receivable, net	$	2,151.4		$	1,628.7
Long-term receivables, net	$	168.5		$	176.9

¹Certain prior year amounts have been recast as a result of the adoption of new accounting standards. Refer to Note B, New Accounting Standards, for further discussion.

Trade receivables are dispersed among a large number of retailers, distributors and industrial accounts in many countries. Adequate reserves have been established to cover anticipated credit losses. Long-term receivables, net, of $168.5 million and $176.9 million at June 30, 2018 and December 30, 2017, respectively, are reported within Other assets in the Condensed Consolidated Balance Sheets. The Company's financing receivables are predominantly related to certain security equipment leases with commercial businesses. Generally, the Company retains legal title to any equipment 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. The Company’s payment terms are generally consistent with the industries in which their businesses operate and typically range from 30-90 days globally. Additionally, the Company considers the credit quality of all past-due or delinquent financing receivables as nonperforming. The Company does not adjust the promised amount of consideration for the effects of a significant financing component when the period between transfer of the product and receipt of payment is less than one year. Any significant financing components for contracts greater than one year are included in revenue over time.

Prior to January 2018, the Company had an accounts receivable sale program. According to the terms of that program, the Company was required to sell certain of its trade accounts receivables at fair value to a wholly-owned, consolidated, bankruptcy-remote special purpose subsidiary (“BRS”). The BRS, in turn, was required to sell such receivables to a third-party financial institution (“Purchaser”) for cash and a deferred purchase price receivable. The Purchaser’s maximum cash investment in the receivables at any time was $100.0 million. The purpose of the program was to provide liquidity to the Company. The Company accounted for these transfers as sales under ASC 860, Transfers and Servicing. Receivables were derecognized from the Company’s consolidated balance sheet when the BRS sold those receivables to the Purchaser. The Company had no retained interests in the transferred receivables, other than collection and administrative responsibilities and its right to the deferred purchase price receivable. In January 2018, the Company signed an amendment that changed the structure of this program which eliminated the deferred purchase price receivable from the Purchaser and resulted in the BRS retaining ownership of the trade accounts receivables. This program was then terminated on February 1, 2018.

At December 30, 2017, $100.8 million of net receivables were derecognized. Gross receivables sold amounted to $549.3 million ($464.0 million, net) and $1,003.1 million ($852.9 million, net) for the three and six months ended July 1, 2017, respectively. These sales resulted in a pre-tax loss of $1.9 million and $3.3 million, respectively, and included servicing fees of $0.4 million and $0.6 million, respectively, for the three and six months ended July 1, 2017. Proceeds from transfers of receivables to the Purchaser totaled $444.1 million and $781.1 million for the three and six months ended July 1, 2017, respectively. Collections of previously sold receivables, including deferred purchase price receivables, and all fees, which are settled one month in arrears, resulted in payments to the Purchaser of $408.7 million and $781.1 million for the three and six months ended July 1, 2017, respectively.

The Company’s risk of loss following the sale of the receivables is limited to the deferred purchase price receivable, which was $106.9 million at December 30, 2017. The deferred purchase price receivable settled in full in January 2018, and historically was repaid in cash as receivables were collected, generally within 30 days. As such the carrying value of the receivable recorded at December 30, 2017 approximated fair value. There were no delinquencies or credit losses for the three and six months ended July 1, 2017. Cash inflows related to the deferred purchase price receivable totaled $104.7 million and $227.8 million for the three and six months ended July 1, 2017, respectively. In accordance with the adoption of the new cash flows standards described in Note B, New Accounting Standards, the proceeds related to the deferred purchase price receivable are classified as investing activities.

As of June 30, 2018 and December 30, 2017, the Company's deferred revenue totaled $188.2 million and $117.0 million respectively, of which $93.3 million and $95.6 million, respectively, was classified as current.

Revenue recognized for the three months ended June 30, 2018 and July 1, 2017 that was previously deferred as of December 30, 2017 and December 31, 2016 totaled $18.9 million and $15.2 million, respectively. Revenue recognized for the six months ended June 30, 2018 and July 1, 2017 that was previously deferred as of December 30, 2017 and December 31, 2016 totaled $93.5 million and $81.4 million, respectively.

As of June 30, 2018, approximately $1.155 billion of revenue from long-term contracts primarily in the Security segment was unearned related to customer contracts which were not completely fulfilled and will be recognized on a decelerating basis over the next 5 years. This amount excludes any of the Company's contracts with an original expected duration of one year or less.

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Inventories

6 Months Ended

Jun. 30, 2018

Notes To Financial Statements [Abstract]

Inventories

INVENTORIES

The components of Inventories, net at June 30, 2018 and December 30, 2017 are as follows:

(Millions of Dollars)	June 30, 2018		December 30, 2017
Finished products	$	1,734.8	$	1,461.4
Work in process	197.3		155.5
Raw materials	512.1		401.5
Total	$	2,444.2	$	2,018.4

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Acquisitions

6 Months Ended

Jun. 30, 2018

Notes To Financial Statements [Abstract]

Acquisitions

ACQUISITIONS

2018 ACQUISITIONS

Nelson Fasteners Systems

On April 2, 2018, the Company acquired the industrial business of Nelson Fastener Systems ("Nelson") from the Doncasters Group, for $430.4 million, net of cash acquired and an estimated working capital adjustment. Nelson is complementary to the Company's product offerings, enhances its presence in the general industrial end markets, expands its portfolio of highly-engineered fastening solutions, and will deliver cost synergies. The results of Nelson are being consolidated into the Industrial segment.

The Nelson 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 identifiable net assets acquired, which includes $67.5 million of working capital and $174.0 million of intangible assets, is $227.0 million. The related goodwill is $203.4 million. The amount allocated to intangible assets includes $150.0 million for customer relationships. The useful lives assigned to the intangible assets range from 12 to 15 years.

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

The purchase price allocation for Nelson is preliminary in all respects. During the measurement period, the Company expects to record adjustments relating to the finalization of intangible assets, inventory and property, plant and equipment valuations, working capital accounts, leases, pension liabilities, various opening balance sheet contingencies, including environmental remediation, 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.

Other 2018 Acquisitions

During the second quarter of 2018, the Company completed four smaller acquisitions for a total purchase price of $84.3 million, net of cash acquired. The estimated fair value of the identifiable net assets acquired, which includes $13.9 million of working capital and $36.8 million of intangible assets, is $30.6 million. The related goodwill is $53.7 million. The amount allocated to intangible assets includes $24.4 million for customer relationships. The useful lives assigned to intangible assets ranges from 10 and 12 years.

The purchase price allocation for these acquisitions is preliminary in all respects. During the measurement period, the Company expects to record adjustments relating to the finalization of valuations for intangible assets, working capital accounts, and various opening balance sheet contingencies and various income tax matters, amongst others. These adjustments are not expected to have a material impact on the Company’s condensed consolidated financial statements.

2017 ACQUISITIONS

Newell Tools

On March 9, 2017, the Company acquired Newell Tools for approximately $1.86 billion, net of cash acquired. The Newell Tools results have been consolidated into the Company's Tools & Storage segment.

The Newell Tools acquisition was accounted for as a business combination. The purchase price allocation for Newell Tools was completed during the first quarter of 2018. The measurement period adjustments recorded in the first quarter of 2018 did not have a material impact to the Company's condensed consolidated financial statements. The following table summarizes the estimated fair values of major assets acquired and liabilities assumed:

(Millions of Dollars)
Cash and cash equivalents	$	20.0
Accounts and notes receivable, net	19.7
Inventories, net	195.5
Prepaid expenses and other current assets	27.1
Property, plant and equipment, net	112.4
Trade names	283.0
Customer relationships	548.0
Other assets	8.8
Accounts payable	(70.3		)
Accrued expenses	(40.7		)
Deferred taxes	(269.4		)
Other liabilities	(7.9		)
Total identifiable net assets	$	826.2
Goodwill	1,031.8
Total consideration paid	$	1,858.0

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

Goodwill was calculated as the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined business, assembled workforce, and the going concern nature of Newell Tools. It is estimated that $15.7 million of goodwill, relating to the pre-acquisition historical tax basis of goodwill, will be deductible for tax purposes.

Refer to Note E, Acquisitions, of the Company's Form 10-K for the year ended December 30, 2017 for further discussion.

Craftsman Brand

On March 8, 2017, the Company purchased the Craftsman® brand from Sears Holdings Corporation ("Sears Holdings") for a total estimated cash purchase price of $916.2 million on a discounted basis, which consists of an initial cash payment of $568.2 million, a cash payment due in March 2020 with an estimated present value at acquisition date of $234.0 million, and future payments to Sears Holdings of between 2.5% and 3.5% on sales of Craftsman products in new Stanley Black & Decker channels through March 2032, which was valued at $114.0 million at the acquisition date based on estimated future sales projections. Refer to Note M, Fair Value Measurements, for additional details. In addition, as part of the acquisition the Company also granted a perpetual license to Sears Holdings to continue selling Craftsman®-branded products in Sears Holdings-related channels. The perpetual license will be royalty-free until March 2032, which represents an estimated value of approximately $293.0 million, and 3% thereafter. The Craftsman results have been consolidated into the Company's Tools & Storage segment.

The Craftsman® brand acquisition was accounted for as a business combination. The purchase price allocation for Craftsman was completed during the first quarter of 2018. The measurement period adjustments recorded in the first quarter of 2018 did not have a material impact on the Company's condensed consolidated financial statements. The estimated fair value of identifiable net assets acquired, which includes $40.2 million of working capital and $418.0 million of intangible assets, is $482.6 million. The related goodwill is $726.6 million. The amount allocated to intangible assets includes $396.0 million of an indefinite-lived trade name. The useful life assigned to the customer relationships is 17 years.

Goodwill was calculated as the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined business and the going concern nature of the Craftsman® brand. It is estimated that $442.7 million of goodwill will be deductible for tax purposes.

Refer to Note E, Acquisitions, of the Company's Form 10-K for the year ended December 30, 2017 for further discussion.

Other 2017 Acquisitions

During 2017, the Company completed four smaller acquisitions for a total purchase price of $182.9 million, net of cash acquired, which are being consolidated into the Company's Tools & Storage and Security segments. The estimated fair value of the identifiable net assets acquired, which includes $38.2 million of working capital and $54.4 million of intangible assets, is $89.4 million. The related goodwill is $93.5 million. The amount allocated to intangible assets includes $51.4 million for customer relationships. The useful lives assigned to the customer relationships range between 10 and 15 years.

The purchase price allocation for these acquisitions is substantially complete. The Company will complete its purchase price allocation in the third quarter of 2018. Any measurement period adjustments resulting from the finalization of the Company's purchase accounting assessment are not expected to be material.

ACTUAL AND PRO-FORMA IMPACT OF THE ACQUISTIONS

Actual Impact from Acquisitions

The net sales and net losses from 2018 acquisitions included in the Company's Consolidated Statements of Operations and Comprehensive Income are $66.1 million and $11.3 million, respectively, for both the three and six months ended June 30, 2018. 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 2017 and 2018 acquisitions had occurred on January 1, 2017. The pro-forma consolidated results are not necessarily indicative of what the Company’s consolidated net sales and net earnings would have been had the Company completed the acquisitions on January 1, 2017. In addition, the pro-forma consolidated results do not purport to project the future results of the Company.

	Second Quarter				Year-to-Date
(Millions of Dollars, except per share amounts)	2018		2017		2018		2017
Net sales	$	3,651.4	$	3,394.1	$	6,930.2	$	6,505.4
Net earnings attributable to common shareowners	$	306.6	$	276.9	$	480.4	$	667.7
Diluted earnings per share	$	2.01	$	1.82	$	3.14	$	4.40

2018 Pro-forma Results

The 2018 pro-forma results were calculated by combining the results of Stanley Black & Decker with the stand-alone results of the 2018 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 December 31, 2017 to the acquisition dates.

• Additional depreciation expense for the property, plant, and equipment fair value adjustments that would have been incurred from December 31, 2017 to the acquisition date of Nelson.

• Because the 2018 acquisitions were assumed to occur on January 1, 2017, there were no deal costs or inventory step-up amortization factored into the 2018 pro-forma year, as such expenses would have occurred in the first year following the acquisition.

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 and 2018 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 of Newell Tools and Craftsman and from January 1, 2017 to July 1, 2017 for the remaining 2017 and 2018 acquisitions.

• Additional depreciation expense for the property, plant, and equipment fair value adjustments that would have been incurred from January 1, 2017 to the acquisition date of Newell Tools and from January 1, 2017 to July 1, 2017 for Nelson.

• 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

6 Months Ended

Jun. 30, 2018

Notes To Financial Statements [Abstract]

Goodwill

GOODWILL

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

(Millions of Dollars)	Tools & Storage			Industrial			Security			Total
Balance December 30, 2017	$	5,189.7		$	1,454.4		$	2,132.0		$	8,776.1
Acquisition adjustments	40.8			203.9			44.0			288.7
Foreign currency translation	(61.4		)	(3.8		)	(51.9		)	(117.1		)
Balance June 30, 2018	$	5,169.1		$	1,654.5		$	2,124.1		$	8,947.7

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Long-Term Debt and Financing Arrangements

6 Months Ended

Jun. 30, 2018

Notes To Financial Statements [Abstract]

Long-Term Debt and Financing Arrangements

LONG-TERM DEBT AND FINANCING ARRANGEMENTS

Long-term debt and financing arrangements at June 30, 2018 and December 30, 2017 are as follows:

		June 30, 2018																December 30, 2017
(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 2
Notes payable due 2018	2.45%	$	632.5	$	—		$	—		$	—	$	(0.7	)	$	631.8		$	630.9
Notes payable due 2018	1.62%	345.0		—			—			—		(0.4		)	344.6			344.1
Notes payable due 2021	3.40%	400.0		(0.1		)	11.8			—		(1.1		)	410.6			412.1
Notes payable due 2022	2.90%	754.3		(0.3		)	—			—		(2.7		)	751.3			750.9
Notes payable due 2028	7.05%	150.0		—			10.9			10.6		—			171.5			172.6
Notes payable due 2040	5.20%	400.0		(0.2		)	(32.7		)	—		(3.0		)	364.1			363.3
Notes payable due 2052 (junior subordinated)	5.75%	750.0		—			—			—		(18.7		)	731.3			731.0
Notes payable due 2053 (junior subordinated)	5.75%	400.0		—			4.7			—		(8.0		)	396.7			396.6
Other, payable in varying amounts through 2022	0.00% - 4.50%	8.2		—			—			—		—			8.2			4.2
Total long-term debt, including current maturities		$	3,840.0	$	(0.6	)	$	(5.3	)	$	10.6	$	(34.6	)	$	3,810.1		$	3,805.7
Less: Current maturities of long-term debt															(978.9		)	(977.5		)
Long-term debt															$	2,831.2		$	2,828.2

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

²Certain prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note B, New Accounting Standards, for further discussion.

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 June 30, 2018, the Company had $1.1 billion of borrowings outstanding against the Company’s $3.0 billion commercial paper program, of which approximately $924.5 million in Euro denominated commercial paper was designated as a Net Investment Hedge as described in more detail in Note I, Financial Instruments. As of December 30, 2017, the Company had no commercial paper borrowings outstanding.

The Company has a five-year $1.75 billion committed credit facility (the “Credit Agreement”). Borrowings under the Credit Agreement may include U.S. Dollars up to the $1.75 billion commitment or in Euro or Pounds Sterling subject to a foreign currency sub-limit of $400.0 million and bear interest at a floating rate dependent upon the denomination of the borrowing. Repayments must be made on December 18, 2020 or upon an earlier termination date of the Credit Agreement, at the election of the Company. The Credit Agreement is designated to be a liquidity back-stop for the Company's $3.0 billion U.S. Dollar and Euro commercial paper program. As of June 30, 2018 and December 30, 2017, the Company had not drawn on its existing five-year $1.75 billion committed credit facility.

The Company also has a 364-day $1.25 billion committed credit facility (the "2017 Credit Agreement") executed in December 2017. The 2017 Credit Agreement consists of a $1.25 billion revolving credit loan and a sub-limit of an amount equal to the Euro equivalent of $400 million for swing line advances. Borrowings under the 2017 Credit Agreement may be made in U.S. Dollars or Euros, pursuant to the terms of the agreement, and bear interest at a floating rate dependent on the denomination of the borrowing. Repayments must be made by December 19, 2018 or upon an earlier termination of the 2017 Credit Agreement at the election of the Company. The Company also has the option at the termination date to convert all advances into a term loan provided certain requirements are met. The 2017 Credit Agreement serves as a liquidity back-stop for the Company’s $3.0 billion U.S. Dollar and Euro commercial paper program. As of June 30, 2018 and December 30, 2017, the Company had not drawn on this commitment.

In January 2017, the Company executed a 364-day $1.25 billion committed credit facility which consisted of a $1.25 billion revolving credit loan and a sub-limit of an amount equal to the Euro equivalent of $400 million for swing line advances. Borrowings under this credit agreement were made in U.S. Dollars or Euros, pursuant to the terms of the agreement, and bore interest at a floating rate dependent on the denomination of the borrowing. This credit agreement was terminated in December 2017 at the election of the Company.

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Financial Instruments

6 Months Ended

Jun. 30, 2018

Notes To Financial Statements [Abstract]

Financial Instruments

FINANCIAL INSTRUMENTS

In the first quarter of 2018, the Company elected to early adopt ASU 2017-12, Derivatives And Hedging (Topic 815):Targeted Improvements to Accounting for Hedge Activities, which amends the hedge accounting recognition and presentation requirements of ASC 815. ASU 2017-12 requires the presentation and disclosure requirements to be applied prospectively and as a result, certain disclosures for the three and six month periods ending July 1, 2017 conform to the presentation and disclosure requirements prior to the adoption.

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

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

A summary of the fair values of the Company’s derivatives recorded in the Condensed Consolidated Balance Sheets at June 30, 2018 and December 30, 2017 is as follows: 

(Millions of Dollars)	Balance Sheet Classification	June 30, 2018		December 30, 2017		Balance Sheet Classification	June 30, 2018		December 30, 2017
Derivatives designated as hedging instruments:
Interest Rate Contracts Cash Flow	Other current assets	$	—	$	—	Accrued expenses	$	33.9	$	55.7
Foreign Exchange Contracts Cash Flow	Other current assets	7.3		4.1		Accrued expenses	5.4		33.4
	LT other assets	1.8		—		LT other liabilities	1.0		5.2
Net Investment Hedge	Other current assets	10.2		6.6		Accrued expenses	1.5		7.0
	LT other assets	—		—		LT other liabilities	15.8		5.8
Non-derivative designated as hedging instrument:
Net Investment Hedge		—		—		Short-term borrowings	924.5		—
Total designated as hedging		$	19.3	$	10.7		$	982.1	$	107.1
Derivatives not designated as hedging instruments:
Foreign Exchange Contracts	Other current assets	$	17.6	$	7.3	Accrued expenses	$	21.3	$	6.9
Total		$	36.9	$	18.0		$	1,003.4	$	114.0

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 six months ended June 30, 2018 and July 1, 2017, cash flows related to derivatives, including those that are separately discussed below, resulted in net cash received of $23.5 million and $22.8 million, respectively.

CASH FLOW HEDGES

There were after-tax mark-to-market losses of $57.3 million and $112.6 million as of June 30, 2018 and December 30, 2017, respectively, reported for cash flow hedge effectiveness in Accumulated other comprehensive loss. An after-tax loss of $29.8 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 of derivatives designated as cash flow hedges in Accumulated other comprehensive loss for active derivatives during the periods in which the underlying hedged transactions affected earnings for the three and six months ended June 30, 2018 and July 1, 2017: 

	Second Quarter 2018
(Millions of dollars)	Gain (Loss) Recorded in  OCI		Classification of Gain (Loss) Reclassified from OCI to Income	Gain (Loss) Reclassified from OCI to Income			Gain (Loss) Recognized in Income on Amounts Excluded from Effectiveness Testing
Interest Rate Contracts	$	3.8	Interest expense	$	—		$	—
Foreign Exchange Contracts	$	29.7	Cost of sales	$	(9.2	)	$	—

	Year-to-Date 2018
(Millions of dollars)	Gain (Loss) Recorded in OCI		Classification of Gain (Loss) Reclassified from OCI to Income	Gain (Loss) Reclassified from OCI to Income			Gain (Loss) Recognized in Income on Amounts Excluded from Effectiveness Testing
Interest Rate Contracts	$	21.8	Interest expense	$	—		$	—
Foreign Exchange Contracts	$	23.0	Cost of sales	$	(12.0	)	$	—

	Second Quarter 2017
(Millions of dollars)	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	$	(11.0	)	Interest expense	$	—	$	—
Foreign Exchange Contracts	$	(29.9	)	Cost of sales	$	5.2	$	—

	Year-to-Date 2017
(Millions of dollars)	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	$	(7.2	)	Interest expense	$	—	$	—
Foreign Exchange Contracts	$	(38.6	)	Cost of sales	$	9.7	$	—

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

A summary of the pre-tax effect of cash flow hedge accounting on the Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June 30, 2018 is as follows:

	Second Quarter 2018						Year-to-Date 2018
(Millions of dollars)	Cost of Sales			Interest Expense			Cost of Sales			Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Income in which the effects of the cash flow hedges are recorded	$	2,356.5		$	69.0		$	4,400.1		$	132.2
Gain (loss) on cash flow hedging relationships:
Foreign Exchange Contracts:
Hedged Items	$	9.2		$	—		$	12.0		$	—
Gain (loss) reclassified from OCI into Income	$	(9.2	)	$	—		$	(12.0	)	$	—
Interest Rate Swap Agreements:
Gain (loss) reclassified from OCI into Income 1	$	—		$	(3.8	)	$	—		$	(7.6	)

¹ Inclusive of the gain/loss amortization on terminated derivative financial instruments.

For the three and six months ended July 1, 2017, the hedged items’ impact to the Consolidated Statements of Operations and Comprehensive Income was a loss of $5.2 million and $9.7 million, respectively in Cost of sales. There was no impact related to the interest rate contracts' hedged items for all periods presented.

An after-tax loss of $7.1 million and an after-tax gain of $1.0 million was reclassified from Accumulated other comprehensive loss into earnings (inclusive of the gain/loss amortization on terminated derivative instruments) for the three months ended June 30, 2018 and July 1, 2017, respectively. An after-tax loss of $11.7 million and an after-tax gain of $1.4 million was reclassified from Accumulated other comprehensive loss into earnings (inclusive of the gain/loss amortization on terminated derivative instruments) for the six months ended June 30, 2018 and July 1, 2017, respectively, 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 June 30, 2018 and December 30, 2017, the Company had forward starting interest rate swaps on $400 million of future debt issuances 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 interest expense as the future interest expense on debt is recognized in earnings.

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 are recorded in Cost of sales as the hedged item affects earnings. There are no components excluded from the assessment of effectiveness for these contracts. At June 30, 2018 and December 30, 2017, the notional value of forward currency contracts outstanding was $264.1 million and $559.9 million, respectively, maturing on various dates through 2018.

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 are recorded in Cost of sales as the hedged item affects earnings. There are no components excluded from the assessment of effectiveness for these contracts. As of June 30, 2018 and December 30, 2017, the notional value of purchased option contracts was $375.5 million and $400.0 million, respectively, maturing on various dates through 2019.

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 prior years, the Company entered into interest rate swaps related to certain of its notes payable which were subsequently terminated. Amortization of the gain/loss on previously terminated swaps is reported as a reduction of interest expense. Prior to termination, the changes in the fair value of the swaps and the offsetting changes in fair value related to the underlying notes were recognized in earnings. As of June 30, 2018 and December 30, 2017, the Company did not have any active fair value interest rate swaps.

A summary of the pre-tax effect of fair value hedge accounting on the Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June 30, 2018 is as follows:

(Millions of dollars)	Second Quarter 2018 Interest Expense		Year-to-Date 2018 Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Income in which the effects of the fair value hedges are recorded	$	69.0	$	132.2
Amortization of gain/loss on terminated swaps	$	0.8	$	1.6

Amortization of the gain/loss on terminated swaps of $0.8 million and $1.6 million is reported as a reduction of interest expense for the three and six months ended July 1, 2017, respectively.

A summary of the amounts recorded on the balance sheet related to cumulative basis adjustments for fair value hedges for the six months ended June 30, 2018 is as follows:

	Year-to-Date 2018
(Millions of dollars)	Carrying Amount of Hedged Liability		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability
Current Maturities of Long-Term Debt	$	—	Terminated Swaps	$	3.2
Long-Term Debt	$	—	Terminated Swaps	$	(8.4	)

NET INVESTMENT HEDGES

The Company utilizes net investment hedges to offset the translation adjustment arising from re-measurement of its investment in the assets and liabilities of its foreign subsidiaries. The total after-tax amounts in Accumulated other comprehensive loss were a gain of $46.8 million and $3.4 million at June 30, 2018 and December 30, 2017, respectively.

As of June 30, 2018, the Company had foreign exchange forward contracts maturing on various dates in 2018 with notional values totaling $701.4 million outstanding hedging a portion of its British pound sterling, 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; an option contract with a notional value totaling $36.2 million maturing in 2018 hedging a portion of its Mexican peso denominated net investment; and Euro denominated commercial paper with a value of $924.5 million maturing in 2018 hedging a portion of its Euro denominated net investments. As of December 30, 2017, the Company had foreign exchange contracts maturing on various dates through 2018 with notional values totaling $751.2 million outstanding hedging a portion of its British pound sterling, Mexican peso, Swedish krona, Euro and Canadian dollar denominated net investments, and a cross currency swap with a notional value totaling $250.0 million maturing in 2023 hedging a portion of its Japanese yen denominated net investment.

Maturing foreign exchange contracts resulted in net cash received of $20.3 million and net cash paid of $3.7 million for the six months ended June 30, 2018 and July 1, 2017, respectively.

Gains and losses on net investment hedges remain in Accumulated other comprehensive income (loss) until disposal of the underlying assets. Upon adoption of ASU 2017-12, gains and losses representing components excluded from the assessment of effectiveness are recognized in earnings in Other, net on a straight-line basis over the term of the hedge. Prior to the adoption of ASU 2017-12, no components were excluded from the assessment of effectiveness. Refer to Note B, New Accounting Standards, for further discussion.

The pre-tax gain or loss from fair value changes for the three and six ended June 30, 2018 and July 1, 2017 was as follows:

	Second Quarter 2018
(Millions of Dollars)	Total Gain (Loss) Recorded in OCI		Excluded Component Recorded in OCI		Income Statement Classification	Total Gain (Loss) Reclassified from OCI to Income		Excluded Component Amortized from OCI to Income
Forward Contracts	$	48.7	$	2.3	Other, net	$	2.3	$	2.3
Cross Currency Swap	$	1.4	$	1.4	Other, net	$	1.7	$	1.7
Option Contracts	$	2.6	$	—	Other, net	$	—	$	—
Non-derivative designated as Net Investment Hedge	$	51.5	$	—	Other, net	$	—	$	—

	Year-to-Date 2018
(Millions of Dollars)	Total Gain (Loss) Recorded in OCI			Excluded Component Recorded in OCI		Income Statement Classification	Total Gain (Loss) Reclassified from OCI to Income		Excluded Component Amortized from OCI to Income
Forward Contracts	$	22.2		$	6.2	Other, net	$	4.1	$	4.1
Cross Currency Swap	$	2.9		$	8.3	Other, net	$	3.4	$	3.4
Option Contracts	$	(0.9	)	$	—	Other, net	$	—	$	—
Non-derivative designated as Net Investment Hedge	$	38.9		$	—	Other, net	$	—	$	—

	Second Quarter 2017							Year-to-Date 2017
(Millions of Dollars)	Amount Recorded in  OCI Gain (Loss)			Effective Portion Recorded in  Income Statement		Ineffective Portion* Recorded in Income Statement		Amount Recorded in  OCI Gain (Loss)			Effective Portion Recorded in  Income Statement		Ineffective Portion* Recorded in Income Statement
Other, net	$	(73.3	)	$	—	$	—	$	(89.0	)	$	—	$	—

*Includes ineffective portion and amount excluded from effectiveness testing.

UNDESIGNATED HEDGES

Foreign Exchange Contracts: 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 is to minimize the impact of foreign currency fluctuations on operating results. The total notional amount of the forward contracts outstanding at June 30, 2018 was $1.4 billion, maturing on various dates through 2018. The total notional amount of the forward contracts outstanding at December 30, 2017 was $1.0 billion, maturing on various dates through 2018. The impacts of changes in the fair value related to derivatives not designated as hedging instruments under ASC 815 for the three and six months ended June 30, 2018 and July 1, 2017 are as follows: 

(Millions of Dollars)	Income Statement Classification	Second Quarter 2018 Amount of Gain (Loss) Recorded in Income on Derivative			Year-to-Date 2018 Amount of Gain (Loss) Recorded in Income on Derivative
Foreign Exchange Contracts	Other, net	$	(2.2	)	$	14.9

(Millions of Dollars)	Income Statement Classification	Second Quarter 2017 Amount of Gain (Loss) Recorded in Income on Derivative		Year-to-Date 2017 Amount of Gain (Loss) Recorded in Income on Derivative
Foreign Exchange Contracts	Other, net	$	1.1	$	29.7

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Equity Arrangements

6 Months Ended

Jun. 30, 2018

Notes To Financial Statements [Abstract]

Equity Arrangements

EQUITY ARRANGEMENTS

In April 2018, the Company repurchased 1,399,732 shares of common stock for approximately $200.0 million.

In March 2018, the Company purchased from a financial institution “at-the-money” capped call options with an approximate term of three years, on 3.2 million shares of its common stock (subject to customary anti-dilution adjustments) for an aggregate premium of $57.3 million, or an average of $17.96 per share. The premium paid was recorded as a reduction of Shareowners’ equity. The purpose of the capped call options is to hedge the risk of stock price appreciation between the lower and upper strike prices of the capped call options for a future share repurchase.

The capped call has an initial lower strike price of $156.86 and an upper strike price of $203.92, which is approximately 30% higher than the closing price of the Company's common stock on March 13, 2018. As of June 30, 2018, there has been no change to the upper and lower strike prices. The aggregate fair value of the options at June 30, 2018 was $34.8 million.

The capped call transactions may be settled by net share settlement (the default settlement method) or, at the Company’s option and subject to certain conditions, cash settlement, physical settlement or modified physical settlement. The number of shares the Company will receive will be determined by the terms of the contracts using a volume-weighted-average price calculation for the market value of the Company's common stock, over an averaging period. The market value determined will then be measured against the applicable strike price of the capped call transactions.

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 June 2018, the Company amended the settlement date to April 2021, 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.

$750 Million Equity Units and Capped Call Transactions

In May 2017, the Company issued 7,500,000 Equity Units with a total notional value of $750.0 million (“$750 million Equity Units”). Each unit has a stated amount of $100 and initially consists of a three-year forward stock purchase contract (“2020 Purchase Contracts”) for the purchase of a variable number of shares of common stock, on May 15, 2020, for a price of $100, and a 10% beneficial ownership interest in one share of 0% Series C Cumulative Perpetual Convertible Preferred Stock, without par, with a liquidation preference of $1,000 per share (“Series C Preferred Stock”). The Company received approximately $727.5 million in cash proceeds from the $750 million Equity Units, net of underwriting costs and commissions, before offering expenses, and issued 750,000 shares of Series C Preferred Stock, recording $750.0 million in preferred stock. The proceeds were used for general corporate purposes, including repayment of short-term borrowings. The Company also used $25.1 million of the proceeds to enter into capped call transactions utilized to hedge potential economic dilution as described in more detail below.

Convertible Preferred Stock

In May 2017, the Company issued 750,000 shares of Series C Preferred Stock, without par, with a liquidation preference of $1,000 per share. The convertible preferred stock will initially not bear any dividends and the liquidation preference of the convertible preferred stock will not accrete. The convertible preferred stock has no maturity date, and will remain outstanding unless converted by holders or redeemed by the Company. Holders of shares of the convertible preferred stock will generally have no voting rights. The Series C Preferred Stock is pledged as collateral to support holders’ purchase obligations under the 2020 Purchase Contracts and can be remarketed. In connection with any successful remarketing, the Company may (but is not required to) modify certain terms of the convertible preferred stock, including the dividend rate, the conversion rate, and the earliest redemption date. After any successful remarketing in connection with which the dividend rate on the convertible preferred stock is increased, the Company will pay cumulative dividends on the convertible preferred stock, if declared by the board of directors, quarterly in arrears from the applicable remarketing settlement date.

On and after May 15, 2020, the Series C Preferred Stock may be converted into common stock at the option of the holder. The initial conversion rate was 6.1627 shares of common stock per one share of Series C Preferred Stock, which is equivalent to an initial conversion price of approximately $162.27 per share of common stock. As of June 30, 2018, due to the customary anti-dilution provisions, the conversion rate was 6.1709, equivalent to a conversion price of approximately $162.05 per share of common stock. At the election of the Company, upon conversion, the Company may deliver cash, common stock, or a combination thereof.

The Company may not redeem the Series C Preferred Stock prior to June 22, 2020. At the election of the Company, on or after June 22, 2020, the Company may redeem for cash, all or any portion of the outstanding shares of the Series C Preferred Stock at a redemption price equal to 100% of the liquidation preference, plus any accumulated and unpaid dividends. If the Company calls the Series C Preferred Stock for redemption, holders may convert their shares immediately preceding the redemption date.

2020 Purchase Contracts

The 2020 Purchase Contracts obligate the holders to purchase, on May 15, 2020, for a price of $100 in cash, a maximum number of 5.4 million shares of the Company’s common stock (subject to customary anti-dilution adjustments). The 2020 Purchase Contract holders may elect to settle their obligation early, in cash. The Series C Preferred Stock is pledged as collateral to guarantee the holders’ obligations to purchase common stock under the terms of the 2020 Purchase Contracts. The initial settlement rate determining the number of shares that each holder must purchase will not exceed the maximum settlement rate, and is determined over a market value averaging period immediately preceding May 15, 2020.

The initial maximum settlement rate of 0.7241 was calculated using an initial reference price of $138.10, equal to the last reported sale price of the Company's common stock on May 11, 2017. As of June 30, 2018, due to the customary anti-dilution provisions, the maximum settlement rate was 0.7251, equivalent to a reference price of $137.92. If the applicable market value of the Company's common stock is less than or equal to the reference price, the settlement rate will be the maximum settlement rate; and if the applicable market value of common stock is greater than the reference price, the settlement rate will be a number of shares of the Company's common stock equal to $100 divided by the applicable market value. Upon settlement of the 2020 Purchase Contracts, the Company will receive additional cash proceeds of $750 million.

The Company will make quarterly payments ("Contracts Adjustment Payments") to the holders of the 2020 Purchase Contracts at a rate of 5.375% per annum, payable quarterly in arrears on February 15, May 15, August 15 and November 15, commencing August 15, 2017. The $117.1 million present value of the Contract Adjustment Payments reduced Shareowners’ Equity at inception. As each quarterly Contract Adjustment Payment is made, the related liability is reduced and the difference between the cash payments and the present value will accrete to interest expense, approximately $1.3 million per year over the three-year term. As of June 30, 2018, the present value of the Contract Adjustment Payments was $78.3 million.

The holders can settle the purchase contracts early, for cash, subject to certain exceptions and conditions in the prospectus supplement. Upon early settlement of any purchase contracts, the Company will deliver the number of shares of its common stock equal to 85% of the number of shares of common stock that would have otherwise been deliverable.

2017 Capped Call Transactions

In order to offset the potential economic dilution associated with the common shares issuable upon conversion of the Series C Preferred Stock, to the extent that the conversion value of the convertible preferred stock exceeds its liquidation preference, the Company entered into capped call transactions with three major financial institutions.

The capped call transactions have a term of approximately three years and are intended to cover the number of shares issuable upon conversion of the Series C Preferred Stock. Subject to customary anti-dilution adjustments, the capped call had an initial lower strike price of $162.27, which corresponds to the minimum 6.1627 settlement rate of the Series C Preferred Stock, and an upper strike price of $179.53, which is approximately 30% higher than the closing price of the Company's common stock on May 11, 2017. As of June 30, 2018, due to the customary anti-dilution provisions, the capped call transactions had an adjusted lower strike price of $162.05 and an adjusted upper strike price of $179.29.

The capped call transactions may be settled by net share settlement (the default settlement method) or, at the Company’s option and subject to certain conditions, cash settlement, physical settlement or modified physical settlement. The number of shares the Company will receive will be determined by the terms of the contracts using a volume-weighted-average price calculation for the market value of the Company's common stock, over an averaging period. The market value determined will then be measured against the applicable strike price of the capped call transactions. The Company expects the capped call transactions to offset the potential dilution upon conversion of the Series C Preferred Stock if the calculated market value is greater than the lower strike price but less than or equal to the upper strike price of the capped call transactions. Should the calculated market value exceed the upper strike price of the capped call transactions, the dilution mitigation will be limited based on such capped value as determined under the terms of the contracts.

With respect to the impact on the Company, the 2017 capped call transactions and $750 million Equity Units, when taken together, result in the economic equivalent of having the conversion price on $750 million Equity Units at $179.29, the upper strike of the capped call as of June 30, 2018.

In May 2017, the Company paid $25.1 million, or an average of $5.43 per option, to enter into capped call transactions on 4.6 million shares of common stock. The $25.1 million premium paid was a reduction of Shareowners’ Equity. The aggregate fair value of the options at June 30, 2018 was $16.2 million.

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Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2018

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 other1			Unrealized gains (losses) on cash flow hedges, net of tax			Unrealized gains (losses) on net investment hedges, net of tax			Pension gains (losses), net of tax			Total
Balance - December 30, 2017	$	(1,108.2	)	$	(112.6	)	$	3.4		$	(371.7	)	$	(1,589.1	)
Other comprehensive (loss) income before reclassifications	(294.9		)	43.6			49.3			7.1			(194.9		)
Reclassification adjustments to earnings	—			11.7			(5.9		)	5.8			11.6
Net other comprehensive (loss) income	(294.9		)	55.3			43.4			12.9			(183.3		)
Balance - June 30, 2018	$	(1,403.1	)	$	(57.3	)	$	46.8		$	(358.8	)	$	(1,772.4	)

¹Certain prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note B, New Accounting Standards, for further discussion.

(Millions of Dollars)	Currency translation adjustment and other1			Unrealized gains (losses) on cash flow hedges, net of tax			Unrealized gains (losses) on net investment hedges, net of tax			Pension gains (losses), net of tax			Total
Balance - December 31, 2016	$	(1,586.7	)	$	(46.3	)	$	88.6		$	(377.2	)	$	(1,921.6	)
Other comprehensive income (loss) before reclassifications	298.0			(44.7		)	(57.8		)	(20.3		)	175.2
Adjustments related to sales of businesses	4.7			—			—			2.6			7.3
Reclassification adjustments to earnings	—			(1.4		)	—			14.9			13.5
Net other comprehensive income (loss)	302.7			(46.1		)	(57.8		)	(2.8		)	196.0
Balance - July 1, 2017	$	(1,284.0	)	$	(92.4	)	$	30.8		$	(380.0	)	$	(1,725.6	)

¹Certain prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note B, New Accounting Standards, for further discussion.

The reclassifications out of Accumulated other comprehensive loss for the six months ended June 30, 2018 and July 1, 2017 were as follows:

(Millions of Dollars)	2018			2017			Affected line item in Consolidated Statements of Operations And Comprehensive Income
Realized gains (losses) on cash flow hedges	$	(12.0	)	$	9.7		Cost of sales
Realized gains (losses) on cash flow hedges	(7.6		)	(7.6		)	Interest expense
Total before taxes	$	(19.6	)	$	2.1
Tax effect	7.9			(0.7		)	Income taxes
Realized gains (losses) on cash flow hedges, net of tax	$	(11.7	)	$	1.4
Realized gains (losses) on net investment hedges	$	7.5		$	—		Other, net
Tax effect	(1.6		)	—			Income taxes
Realized gains (losses) on net investment hedges, net of tax	$	5.9		$	—
Amortization of defined benefit pension items:
Actuarial losses and prior service costs / credits	$	(7.8	)	$	(8.0	)	Other, net
Settlement loss	—			(12.8		)	Other, net
Total before taxes	$	(7.8	)	$	(20.8	)
Tax effect	2.0			5.9			Income taxes
Amortization of defined benefit pension items, net of tax	$	(5.8	)	$	(14.9	)

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Net Periodic Benefit Cost - Defined Benefit Plans

6 Months Ended

Jun. 30, 2018

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 and six months ended June 30, 2018 and July 1, 2017:

	Second Quarter
	Pension Benefits												Other Benefits
	U.S. Plans						Non-U.S. Plans						All Plans
(Millions of Dollars)	2018			2017			2018			2017			2018			2017
Service cost	$	2.0		$	2.1		$	3.8		$	3.3		$	0.2		$	0.2
Interest cost	11.0			10.9			7.2			7.1			0.4			0.3
Expected return on plan assets	(17.5		)	(16.1		)	(11.8		)	(11.2		)	—			—
Amortization of prior service cost (credit)	0.3			0.2			(0.2		)	(0.3		)	(0.4		)	(0.4		)
Amortization of net loss	2.0			2.3			2.3			2.3			—			—
Settlement / curtailment loss	—			—			0.1			0.3			—			—
Net periodic pension (benefit) expense	$	(2.2	)	$	(0.6	)	$	1.4		$	1.5		$	0.2		$	0.1

	Year-to-Date
	Pension Benefits												Other Benefits
	U.S. Plans						Non-U.S. Plans						All Plans
(Millions of Dollars)	2018			2017			2018			2017			2018			2017
Service cost	$	3.8		$	4.4		$	7.7		$	6.6		$	0.3		$	0.3
Interest cost	21.4			21.6			14.7			14.1			0.8			0.7
Expected return on plan assets	(34.3		)	(32.2		)	(24.0		)	(22.2		)	—			—
Amortization of prior service cost (credit)	0.5			0.5			(0.6		)	(0.6		)	(0.7		)	(0.7		)
Amortization of net loss	3.9			4.2			4.7			4.6			—			—
Settlement / curtailment loss	—			—			0.2			12.8			—			—
Net periodic pension (benefit) expense	$	(4.7	)	$	(1.5	)	$	2.7		$	15.3		$	0.4		$	0.3

In accordance with the adoption of ASU 2017-07, the components of net periodic benefit cost other than the service cost component are included in Other, net in the Consolidated Statements of Operations and Comprehensive Income.

For the three and six months ended July 1, 2017, the Company recorded pre-tax charges of approximately $0.3 million and $12.8 million, respectively, 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

6 Months Ended

Jun. 30, 2018

Notes To Financial Statements [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

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 is exposed to market risk from changes in foreign currency exchange rates, interest rates, stock prices and commodity prices. The Company holds various financial instruments to manage these risks. These financial instruments are carried at fair value and are included within the scope of ASC 820. The Company determines the fair value 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 fair value 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 Carrying Value		Level 1		Level 2		Level 3
June 30, 2018
Money market fund	$	10.8	$	10.8	$	—	$	—
Derivative assets	$	36.9	$	—	$	36.9	$	—
Derivative liabilities	$	78.9	$	—	$	78.9	$	—
Non-derivative hedging instrument	$	—	$	—	$	924.5	$	—
Contingent consideration liability	$	115.0	$	—	$	—	$	115.0
December 30, 2017
Money market fund	$	11.6	$	11.6	$	—	$	—
Derivative assets	$	18.0	$	—	$	18.0	$	—
Derivative liabilities	$	114.0	$	—	$	114.0	$	—
Contingent consideration liability	$	114.0	$	—	$	—	$	114.0

The following table provides information about the Company's financial assets and liabilities not carried at fair value.

	June 30, 2018				December 30, 20171
(Millions of Dollars)	Carrying Value		Fair Value		Carrying Value		Fair Value
Other investments	$	7.6	$	7.8	$	7.6	$	7.9
Long-term debt, including current portion	$	3,810.1	$	3,925.6	$	3,805.7	$	3,991.0

¹Certain prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note B, New Accounting Standards, for further discussion.

The money market fund and other investments related to the West Coast Loading Corporation ("WCLC") trust are considered Level 1 instruments within the fair value hierarchy. The long-term debt instruments are considered Level 2 instruments and are measured using a discounted cash flow analysis based on the Company’s marginal borrowing rates. The differences between the carrying values and fair values of long-term debt are attributable to the stated interest rates differing from the Company's marginal borrowing rates. The fair values of the Company's variable rate short-term borrowings approximate their carrying values at June 30, 2018 and December 30, 2017. The fair values of the derivative financial instruments in the table above are based on current settlement values.

As discussed in Note F, Acquisitions, the Company recorded a contingent consideration liability relating to the Craftsman® brand acquisition representing the Company's obligation to make future payments to Sears Holdings of between 2.5% and 3.5% on sales of Craftsman products in new Stanley Black & Decker channels through March 2032, which was valued at $114.0 million as of the acquisition date. The first payment is due the first quarter of 2020 relating to royalties owed for the previous eleven quarters, and future payments will be due quarterly through the first quarter of 2032. The estimated fair value was determined using a discounted cash flow analysis based on future sales projections and contractual royalty rates. A 100 basis point reduction in the discount rate would have resulted in an increase to the liability of approximately $8 million as of the acquisition date. The liability may fluctuate in the future if there are changes to sales projections or the discount rate as a result of actual sales levels or changes in market conditions. There was no significant change in the fair value of the contingent consideration as of June 30, 2018.

The Company had no significant non-recurring fair value measurements, nor any other financial assets or liabilities measured using Level 3 inputs, during the first six months of 2018 or 2017.

As discussed in Note D, Accounts And Notes Receivable, the Company had a deferred purchase price receivable related to sales of trade receivables. The deferred purchase price receivable was settled in full in January 2018, and historically was repaid in cash as receivables were collected, generally within 30 days. The carrying value of the receivable as of December 30, 2017 approximated fair value.

Refer to Note I, Financial Instruments, for more details regarding derivative 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

6 Months Ended

Jun. 30, 2018

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, acquisition-related transaction and consulting costs, and certain pension gains or losses. During the three and six months ended June 30, 2018, Other, net included $9.4 million and $15.3 million in acquisition-related transaction and consulting costs, respectively, and a $77.7 million environmental remediation charge related to a recently announced settlement with the Environmental Protection Agency ("EPA"). Refer to Note R, Commitments and Contingencies, for further discussion of the EPA settlement. During the three and six months ended July 1, 2017, Other, net included $5.6 million and $45.6 million of acquisition-related transaction and consulting costs, respectively.

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Restructuring Charges

6 Months Ended

Jun. 30, 2018

Notes To Financial Statements [Abstract]

Restructuring Charges

RESTRUCTURING CHARGES

A summary of the restructuring reserve activity from December 30, 2017 to June 30, 2018 is as follows:

(Millions of Dollars)	December 30, 2017		Net Additions		Usage			Currency			June 30, 2018
Severance and related costs	$	20.0	$	32.8	$	(22.9	)	$	(0.9	)	$	29.0
Facility closures and asset impairments	3.2		3.5		(5.0		)	—			1.7
Total	$	23.2	$	36.3	$	(27.9	)	$	(0.9	)	$	30.7

For the six months ended June 30, 2018, the Company recognized net restructuring charges of $36.3 million. This amount reflects $32.8 million of net severance charges associated with the reduction of approximately 1,000 employees and $3.5 million of facility closure and other restructuring costs.

For the three months ended June 30, 2018, the Company recognized net restructuring charges of $13.4 million. This amount reflects $10.5 million of net severance charges associated with the reduction of approximately 594 employees. The Company also had $2.9 million of facility closure and other restructuring costs.

The majority of the $30.7 million of reserves remaining as of June 30, 2018 is expected to be utilized within the next 12 months.

Segments: The $36 million of net restructuring charges for the six months ended June 30, 2018 includes: $15 million pertaining to the Tools & Storage segment; $5 million pertaining to the Industrial segment; $12 million pertaining to the Security segment; and $4 million pertaining to Corporate.

The $13 million of net restructuring charges for the three months ended June 30, 2018 includes: $7 million pertaining to the Tools & Storage segment; $2 million pertaining to the Industrial segment; $3 million pertaining to the Security segment and $1 million pertaining to Corporate.

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Income Taxes

6 Months Ended

Jun. 30, 2018

Notes To Financial Statements [Abstract]

Income Taxes

INCOME TAXES

The Company recognized income tax expense of $1.0 million and $82.7 million for the three and six months ended June 30, 2018, resulting in effective tax rates of 0.3% and 15.1%, respectively. Excluding the impacts of the aforementioned EPA settlement in the second quarter of 2018, the tax charge recorded in the first quarter of 2018 related to the recently enacted U.S. tax legislation, and the acquisition-related charges, the effective tax rates were 7.0% and 13.4% for the three and six months ended June 30, 2018, respectively. These effective tax rates differ from the U.S. statutory tax rate during these periods primarily due to tax on foreign earnings and the effective settlements of income tax audits.

The Company recognized income tax expense of $80.7 million and $160.4 million for the three and six months ended July 1, 2017, respectively, resulting in effective tax rates of 22.5% and 19.3%, respectively. The effective tax rates differed from the U.S. statutory tax rate during these periods primarily due to a portion of the Company’s earnings being realized in lower-taxed foreign jurisdictions, the utilization of U.S. tax attributes during the first quarter of 2017 due to the divestiture of the mechanical security businesses and the favorable settlement of certain income tax audits during the second quarter of 2017. Non-deductible transaction costs and other acquisition-related restructuring items partially offset the net tax benefits mentioned above for the three and six months ended July 1, 2017. Excluding the tax impact of the divestitures and acquisition-related charges for the three and six months ended July 1, 2017, the effective tax rates were 23.5% and 24.1%, respectively.

The Company is subject to examinations by taxing authorities in U.S. federal, state, and foreign jurisdictions. The Company considers many factors when evaluating and estimating its tax positions and the impact on income tax expense, which may require periodic adjustments and which may not accurately anticipate actual outcomes. It is reasonably possible that the amount of the unrecognized benefit with respect to certain of the Company's unrecognized tax positions will significantly increase or decrease within the next 12 months. 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 reasonably estimate the impact of any such change.

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act. As of June 30, 2018, the Company has not completed its accounting for the tax effects of the enactment of the Act; however, in certain cases (as described below), the Company has made a reasonable estimate of the effects on its existing deferred tax balances and the one-time transition tax. In other cases, the Company has not been able to make a reasonable estimate and continues to account for those items based on its existing accounting under ASC 740, Income Taxes, and the provisions of the tax laws that were in effect immediately prior to enactment.

During the first quarter of 2018, the Company recorded a provisional charge of $23.1 million as an adjustment to the provisional amounts recorded at December 30, 2017 related to the re-measurement of deferred tax assets and liabilities, and liabilities for unrecognized tax benefits. The provisional charges were included as a component of income taxes on the Consolidated Statements of Operations and Comprehensive Income.

The Company operates in many countries throughout the world through numerous subsidiaries. In order to complete the accounting associated with the Act, the Company will continue to accumulate the relevant data, refine computational elements, monitor and analyze U.S. federal and state guidance if and when issued, and adjust its provisional estimates accordingly within the measurement period prescribed by SAB 118. Any adjustments could be material to income tax expense.

Provisional amounts

Deferred tax assets and liabilities: The Company remeasured certain deferred tax assets and liabilities based on the U.S. tax rates at which they are expected to become realized in the future. The provisional amount recorded in 2017 related to the re-measurement of its deferred tax balance resulted in a decrease to tax expense of approximately $252.5 million as of December 30, 2017. Upon further analysis of certain aspects of the Act and refinement of the calculations during the first quarter of 2018, the Company adjusted the provisional amount by $17.4 million as an increase to tax expense, which is included as a component of income taxes on the Consolidated Statements of Operations and Comprehensive Income. The Company is still analyzing certain aspects of the Act and refining its estimate, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts.

International provision tax effects: As of December 30, 2017, the Company recorded a provisional amount for the one-time transition tax on undistributed foreign earnings, resulting in an increase to income tax expense of $276.1 million comprised of an accrued provisional income tax payable of approximately $460.7 million, partially offset by the reversal of the deferred tax liability of approximately $184.6 million associated with certain legacy Black & Decker unremitted foreign earnings and profits which were previously designated as not being indefinitely reinvested. The remaining deferred tax liability on unremitted foreign earnings of $4.9 million represents withholding taxes which will become payable upon distribution. The Company is still analyzing certain aspects of the Act and refining its estimate, which may be adjusted, possibly materially, due to changes in interpretations and assumptions the Company has made, guidance that may be issued and actions the Company may take as a result of the Act.

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Business Segments

6 Months Ended

Jun. 30, 2018

Notes To Financial Statements [Abstract]

Business Segments

BUSINESS SEGMENTS AND GEOGRAPHIC AREAS

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

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

The Industrial segment is comprised of the Engineered Fastening and Infrastructure businesses. The Engineered Fastening business primarily sells engineered fastening products and systems designed for specific applications. The product lines include blind rivets and tools, blind inserts and tools, drawn arc weld studs and systems, engineered plastic and mechanical fasteners, self-piercing riveting systems, precision nut running systems, micro fasteners, and high-strength structural fasteners. The Infrastructure business consists of the Oil & Gas and Hydraulics businesses. The Oil & Gas business sells and rents custom pipe handling, joint welding and coating equipment used in the construction of large and small diameter pipelines, and provides pipeline inspection services. The Hydraulics business sells hydraulic tools and accessories.

The Security segment is comprised of the Convergent Security Solutions ("CSS") and Mechanical Access Solutions ("MAS") businesses. The CSS business designs, supplies and installs commercial electronic security systems and provides electronic security services, including alarm monitoring, video surveillance, fire alarm monitoring, systems integration and system maintenance. Purchasers of these systems typically contract for ongoing security systems monitoring and maintenance at the time of initial equipment installation. The business also sells healthcare solutions, which include asset tracking, infant protection, pediatric protection, patient protection, wander management, fall management, and emergency call products. The MAS business primarily sells automatic doors.

The Company utilizes segment profit, which is defined as net sales minus cost of sales and SG&A inclusive of the provision for doubtful accounts (aside from corporate overhead expense), and segment profit as a percentage of net sales to assess the profitability of each segment. Segment profit excludes the corporate overhead expense element of SG&A, other, net (inclusive of intangible asset amortization expense), gain or loss on sales of businesses, pension settlement, restructuring charges, interest expense, interest income, 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. Net sales and long-lived assets are attributed to the geographic regions based on the geographic locations of the end customer and the Company subsidiary, respectively.

	Second Quarter						Year-to-Date
(Millions of Dollars)	2018			20171			2018			20171
NET SALES
Tools & Storage	$	2,567.8		$	2,307.4		$	4,783.6		$	4,202.3
Industrial	573.1			503.4			1,077.3			983.1
Security	502.7			475.9			992.0			957.6
Total	$	3,643.6		$	3,286.7		$	6,852.9		$	6,143.0
SEGMENT PROFIT
Tools & Storage	$	398.6		$	371.9		$	700.0		$	656.4
Industrial	85.5			94.7			166.0			179.8
Security	48.1			51.8			93.6			102.5
Segment profit	532.2			518.4			959.6			938.7
Corporate overhead	(50.9		)	(49.3		)	(98.2		)	(93.9		)
Other, net	119.3			55.3			177.3			155.8
Loss (gain) on sales of businesses	0.8			0.9			0.8			(268.3		)
Pension settlement	—			0.3			—			12.8
Restructuring charges	13.4			8.0			36.3			23.8
Interest expense	69.0			56.0			132.2			107.3
Interest income	(15.6		)	(9.7		)	(31.4		)	(18.3		)
Earnings before income taxes	$	294.4		$	358.3		$	546.2		$	831.7

¹Certain prior year amounts have been recast as a result of the adoption of the new revenue and pension standards. Refer to Note B, New Accounting Standards, for further discussion.

As described in Note A, Significant Accounting Policies, the Company recognizes revenue at a point in time from the sale of tangible products or over time depending on when the performance obligation is satisfied. For the three and six months ended June 30, 2018 and July 1, 2017, the majority of the Company’s revenue was recognized at the time of sale. The following table provides the percent of total segment revenue recognized over time for the Industrial and Security segments for the three and six months ended June 30, 2018 and July 1, 2017:

	Second Quarter				Year-to-Date
(Millions of Dollars)	2018		2017		2018		2017
Industrial	10.3	%	14.5	%	10.6	%	12.9	%
Security	43.9	%	49.6	%	46.1	%	47.8	%

The following table is a further disaggregation of the Industrial segment revenue for the three and six months ended June 30, 2018 and July 1, 2017:

	Second Quarter				Year-to-Date
(Millions of Dollars)	2018		2017		2018		2017
Engineered Fastening	$	468.2	$	388.8	$	880.0	$	778.8
Infrastructure	104.9		114.6		197.3		204.3
Industrial	$	573.1	$	503.4	$	1,077.3	$	983.1

The following table is a summary of total assets by segment as of June 30, 2018 and December 30, 2017:

(Millions of Dollars)	June 30, 2018			December 30, 20171
Tools & Storage	$	13,367.5		$	12,817.5
Industrial	3,896.7			3,413.3
Security	3,453.0			3,406.9
	20,717.2			19,637.7
Corporate assets	(537.6		)	(540.0		)
Consolidated	$	20,179.6		$	19,097.7

¹Certain prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note B, New Accounting Standards, for further discussion.

Corporate assets primarily consist of cash, deferred taxes and property, plant and equipment. Based on the nature of the Company's cash pooling arrangements, the corporate-related cash accounts will be in a net liability position at times.

GEOGRAPHIC AREAS

The following table is a summary of net sales by geographic area for the three and six months ended June 30, 2018 and July 1, 2017:

	Second Quarter				Year-to-Date
(Millions of Dollars)	2018		20171		2018		20171
United States	$	2,004.9	$	1,807.5	$	3,673.8	$	3,347.4
Canada	165.5		143.1		309.7		275.9
Other Americas	206.9		199.0		392.2		357.0
France	160.4		153.0		323.2		302.1
Other Europe	785.4		701.6		1,540.7		1,321.5
Asia	320.5		282.5		613.3		539.1
Consolidated	$	3,643.6	$	3,286.7	$	6,852.9	$	6,143.0

¹Certain prior year amounts have been recast as a result of the adoption of the new revenue standard. Refer to Note B, New Accounting Standards, for further discussion.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2018

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 the normal course of business, the Company is a party to administrative proceedings and litigation, before federal and state regulatory agencies, relating to environmental remediation with respect to claims involving the discharge of hazardous substances into the environment, generally at current and former manufacturing facilities. In addition, some of these claims assert that the Company is responsible for damages and liability, for remedial investigation and clean-up costs, with respect to sites that have never been owned or operated by the Company but the Company has been identified as a potentially responsible party ("PRP").

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 at current and former manufacturing facilities and has also been named as a PRP in certain administrative proceedings.

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 26 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 June 30, 2018 and December 30, 2017, the Company had reserves of $250.7 million and $176.1 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 2018 amount, $28.7 million is classified as current and $222.0 million as long-term which is expected to be paid over the estimated remediation period. The range of environmental remediation costs that is reasonably possible is $218.1 million to $351.6 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.

As of June 30, 2018, the Company has recorded $12.2 million in other assets related to funding received by the Environmental Protection Agency (“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. As of June 30, 2018, the Company's net cash obligation associated with remediation activities including WCLC assets is $238.5 million.

The EPA has also 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 contested 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. disputed the factual, legal and scientific bases cited by the EPA for such an administrative 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 administrative order at this time. Black & Decker and Emhart Industries, Inc. continue to vigorously litigate the issue of their liability for environmental conditions at the Centredale site, including the completion of the Phase 1 trial in late July, 2015 and the completion of the Phase 2 trial in April, 2017. The Court in Phase 1 of the trial found that dioxin contamination at the Centredale site was not "divisible," and that Emhart was jointly and severally liable for dioxin contamination at the site. In its Phase 2 Findings of Fact and Conclusions of Law, entered on August 17, 2017, the Court found that certain components of the EPA's selected remedy were arbitrary and capricious, and remanded the matter to the EPA while retaining jurisdiction over the ongoing remedy selection and implementation process. The Court also held in Phase 2 that Black and Decker had sufficient cause for its declination to comply with the EPA's June 10, 2014 administrative order and that no associated civil penalties or fines were warranted. The United States filed a Motion for Reconsideration concerning the Court's Phase 2 rulings and appealed the ruling to the United States Court of Appeals for the First Circuit. Emhart's Motion to Dismiss the Appeal was denied without prejudice for consideration with the merits. On July 9, 2018, a Consent Decree was lodged with the United States District Court documenting the terms of a settlement between the Company and the United States for reimbursement of EPA's past costs and remediation of environmental contamination found at the Centredale site. The terms of the Consent Decree are subject to public comment and Court approval. Once approved and entered, the settlement will resolve outstanding issues relating to Phase 1 and 2 of the litigation with the United States. The 3rd Phase of the litigation and trial, which is in its relatively early stages, will address the potential allocation of liability to other PRPs who may have contributed to contamination of the Centredale site with dioxins, polychlorinated biphenyls and other contaminants of concern. Based on the Company's estimated remediation and response cost obligations arising out of the Settlement reached with the United States (including the EPA’s past costs as well as costs of additional investigation, remediation, and related costs such as EPA’s oversight costs), the Company has increased its reserve for this site by $77.7 million to $145.8 million. Accordingly, in June 2018, the $77.7 million increase was recorded in Other, net in the Consolidated Statements of Operations and Comprehensive Income.

The Company and approximately 47 other companies comprise the Lower Passaic Cooperating Parties Group (the “CPG”). The CPG members and other companies are parties to a May 2007 Administrative Settlement Agreement and Order on Consent (“AOC”) with the EPA to perform a remedial investigation/feasibility study (“RI/FS”) of the lower seventeen miles of the Lower Passaic River in New Jersey (the “River”). The Company’s potential liability stems from former operations in Newark, New Jersey. As an interim step related to the 2007 AOC, on June 18, 2012,the CPG members voluntarily entered into an AOC with the EPA for remediation actions focused solely at mile 10.9 of the River. The Company’s estimated costs related to the RI/FS and focused remediation action at mile 10.9, based on an interim allocation, are included in its environmental reserves. On April 11, 2014, the EPA issued a Focused Feasibility Study (“FFS”) and proposed plan which addressed various early action remediation alternatives for the lower 8.3 miles of the River. The EPA received public comment on the FFS and proposed plan (including comments from the CPG and other entities asserting that the FFS and proposed plan do not comply with CERCLA) which public comment period ended on August 20, 2014. The CPG submitted to the EPA a draft RI report in February 2015 and draft FS report in April 2015 for the entire lower seventeen miles of the River. On March 4, 2016, the EPA issued a Record of Decision selecting the remedy for the lower 8.3 miles of the River. The cleanup plan adopted by the EPA is now considered a final action for the lower 8.3 miles of the River and will include the removal of 3.5 million cubic yards of sediment, placement of a cap over the entire lower 8.3 miles of the River, and, according to the EPA, will cost approximately $1.4 billion and take 6 years to implement after the remedial design is completed. (The EPA estimates that the remedial design will take four years to complete.) The Company and 105 other parties received a letter dated March 31, 2016 from the EPA notifying such parties of potential liability for the costs of the cleanup of the lower 8.3 miles of the River and a letter dated March 30, 2017 stating that the EPA had offered 20 of the parties (not including the Company) an early cash out settlement. In a letter dated May 17, 2017, the EPA stated that these 20 parties did not discharge any of the eight hazardous substances identified as the contaminants of concern in the lower 8.3 mile ROD. In the March 30, 2017 letter, the EPA stated that other parties who did not discharge dioxins, furans or polychlorinated biphenyls (which are considered the contaminants of concern posing the greatest risk to human health or the environment) may also be eligible for cash out settlement, but expects those parties' allocation to be determined through a complex settlement analysis using a third-party allocator. The Company asserts that it did not discharge dioxins, furans or polychlorinated biphenyls and should be eligible for a cash out settlement. On September 30, 2016, Occidental Chemical Corporation ("OCC") entered into an agreement with the EPA to perform the remedial design for the cleanup plan for the lower 8.3 miles of the River. On June 30, 2018, OCC filed a complaint in the United States District Court for the District of New Jersey against over 100 companies, including the Company, seeking CERCLA cost recovery or contribution for past costs relating to various investigations and cleanups OCC has conducted or is conducting in connection with the River. According to the complaint, OCC has incurred or is incurring costs which includes the estimated cost to complete the remedial design for the cleanup plan for the lower 8.3 miles of the River. OCC also seeks a declaratory judgment to hold the defendants liable for their proper shares of future response costs, including the remedial action for the lower 8.3 miles of the River. 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. 

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 estimated to cost approximately $68.7 million. Accordingly, in the first quarter of 2017, the Company increased its reserve by $17.1 million which was recorded in Other, net in the Consolidated Statements of Operations and Comprehensive Income.

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

6 Months Ended

Jun. 30, 2018

Notes To Financial Statements [Abstract]

Guarantees

GUARANTEES

The Company’s financial guarantees at June 30, 2018 are as follows:

(Millions of Dollars)	Term	Maximum Potential Payment		Carrying Amount of Liability
Guarantees on the residual values of leased assets	One to four years	$	100.4	$	—
Standby letters of credit	Up to three years	74.3		—
Commercial customer financing arrangements	Up to six years	71.0		7.3
Total		$	245.7	$	7.3

The Company has guaranteed a portion of the residual values of leased assets arising from its synthetic lease program. The lease guarantees are for an amount up to $100.4 million while the fair value of the underlying assets is estimated at $118.9 million. The related assets would be available to satisfy the guarantee obligations and therefore it is unlikely the Company will incur any future loss associated with these guarantees.

The Company has issued $74.3 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 $71.0 million and the $7.3 million carrying value of the guarantees issued is recorded in other liabilities in the Condensed Consolidated Balance Sheets.

The Company provides warranties on certain products across its businesses. The types of product warranties offered generally range from one year to limited lifetime. 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 warranties for the six months ended June 30, 2018 and July 1, 2017 are as follows:

(Millions of Dollars)	2018			2017
Balance beginning of period1	$	108.5		$	103.4
Warranties and guarantees issued	53.9			50.4
Warranty payments and currency	(58.3		)	(47.1		)
Balance end of period	$	104.1		$	106.7

¹ 2018 beginning of period balance has been recast as a result of the adoption of new accounting standards. Refer to Note B, New Accounting Standards, for further discussion.

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Divestitures

6 Months Ended

Jun. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

Divestitures

DIVESTITURES

On January 3, 2017, the Company sold a business within the Tools & Storage segment for approximately $26 million. On February 22, 2017, the Company sold the majority of its mechanical security businesses within the Security segment, which includes the commercial hardware brands of Best Access, phi Precision and GMT, for net proceeds of approximately $717 million. As a result of these sales, the Company recognized a pre-tax gain of $268.3 million in the first half of 2017, primarily related to the sale of the mechanical security businesses. Pre-tax income for these businesses totaled $0.6 million during the first quarter of 2017.

The Company also sold a small business in the Industrial segment during the third quarter of 2017 and a small business in the Tools & Storage segment during the fourth quarter of 2017 for total proceeds of approximately $14 million. During the second quarter of 2018, the Company recognized a $0.8 million charge as a result of the finalization of the purchase price for the Tools & Storage business sold during the fourth quarter of 2017.

The above disposals did not 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, the operating results of these businesses are included in the Company's continuing operations through their respective dates of sale in 2017.

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2018

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 and six months ended June 30, 2018 and July 1, 2017:

	Second Quarter				Year-to-Date
	2018		2017		2018		2017
Numerator (in millions):
Net earnings attributable to common shareowners1	$	293.6	$	277.6	$	464.2	$	671.3
Denominator (in thousands):
Basic weighted-average shares	149,748		149,514		150,101		149,353
Dilutive effect of stock contracts and awards	2,746		2,712		3,023		2,509
Diluted weighted-average shares	152,494		152,226		153,124		151,862
Earnings per share of common stock1:
Basic	$	1.96	$	1.86	$	3.09	$	4.49
Diluted	$	1.93	$	1.82	$	3.03	$	4.42

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):

	Second Quarter		Year-to-Date
	2018	2017	2018	2017
Number of stock options	1,161	—	1,162	1,163

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Inventories (Tables)

6 Months Ended

Jun. 30, 2018

Notes To Financial Statements [Abstract]

Components of Inventories

The components of Inventories, net at June 30, 2018 and December 30, 2017 are as follows:

(Millions of Dollars)	June 30, 2018		December 30, 2017
Finished products	$	1,734.8	$	1,461.4
Work in process	197.3		155.5
Raw materials	512.1		401.5
Total	$	2,444.2	$	2,018.4

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Goodwill (Tables)

6 Months Ended

Jun. 30, 2018

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			Industrial			Security			Total
Balance December 30, 2017	$	5,189.7		$	1,454.4		$	2,132.0		$	8,776.1
Acquisition adjustments	40.8			203.9			44.0			288.7
Foreign currency translation	(61.4		)	(3.8		)	(51.9		)	(117.1		)
Balance June 30, 2018	$	5,169.1		$	1,654.5		$	2,124.1		$	8,947.7

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Long-Term Debt and Financing Arrangements (Tables)

6 Months Ended

Jun. 30, 2018

Notes To Financial Statements [Abstract]

Long-Term Debt and Financing Arrangements

Long-term debt and financing arrangements at June 30, 2018 and December 30, 2017 are as follows:

		June 30, 2018																December 30, 2017
(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 2
Notes payable due 2018	2.45%	$	632.5	$	—		$	—		$	—	$	(0.7	)	$	631.8		$	630.9
Notes payable due 2018	1.62%	345.0		—			—			—		(0.4		)	344.6			344.1
Notes payable due 2021	3.40%	400.0		(0.1		)	11.8			—		(1.1		)	410.6			412.1
Notes payable due 2022	2.90%	754.3		(0.3		)	—			—		(2.7		)	751.3			750.9
Notes payable due 2028	7.05%	150.0		—			10.9			10.6		—			171.5			172.6
Notes payable due 2040	5.20%	400.0		(0.2		)	(32.7		)	—		(3.0		)	364.1			363.3
Notes payable due 2052 (junior subordinated)	5.75%	750.0		—			—			—		(18.7		)	731.3			731.0
Notes payable due 2053 (junior subordinated)	5.75%	400.0		—			4.7			—		(8.0		)	396.7			396.6
Other, payable in varying amounts through 2022	0.00% - 4.50%	8.2		—			—			—		—			8.2			4.2
Total long-term debt, including current maturities		$	3,840.0	$	(0.6	)	$	(5.3	)	$	10.6	$	(34.6	)	$	3,810.1		$	3,805.7
Less: Current maturities of long-term debt															(978.9		)	(977.5		)
Long-term debt															$	2,831.2		$	2,828.2

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Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2018

Notes To Financial Statements [Abstract]

Summary of Fair Value of Derivatives

A summary of the fair values of the Company’s derivatives recorded in the Condensed Consolidated Balance Sheets at June 30, 2018 and December 30, 2017 is as follows: 

(Millions of Dollars)	Balance Sheet Classification	June 30, 2018		December 30, 2017		Balance Sheet Classification	June 30, 2018		December 30, 2017
Derivatives designated as hedging instruments:
Interest Rate Contracts Cash Flow	Other current assets	$	—	$	—	Accrued expenses	$	33.9	$	55.7
Foreign Exchange Contracts Cash Flow	Other current assets	7.3		4.1		Accrued expenses	5.4		33.4
	LT other assets	1.8		—		LT other liabilities	1.0		5.2
Net Investment Hedge	Other current assets	10.2		6.6		Accrued expenses	1.5		7.0
	LT other assets	—		—		LT other liabilities	15.8		5.8
Non-derivative designated as hedging instrument:
Net Investment Hedge		—		—		Short-term borrowings	924.5		—
Total designated as hedging		$	19.3	$	10.7		$	982.1	$	107.1
Derivatives not designated as hedging instruments:
Foreign Exchange Contracts	Other current assets	$	17.6	$	7.3	Accrued expenses	$	21.3	$	6.9
Total		$	36.9	$	18.0		$	1,003.4	$	114.0

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 of derivatives designated as cash flow hedges in Accumulated other comprehensive loss for active derivatives during the periods in which the underlying hedged transactions affected earnings for the three and six months ended June 30, 2018 and July 1, 2017: 

	Second Quarter 2018
(Millions of dollars)	Gain (Loss) Recorded in  OCI		Classification of Gain (Loss) Reclassified from OCI to Income	Gain (Loss) Reclassified from OCI to Income			Gain (Loss) Recognized in Income on Amounts Excluded from Effectiveness Testing
Interest Rate Contracts	$	3.8	Interest expense	$	—		$	—
Foreign Exchange Contracts	$	29.7	Cost of sales	$	(9.2	)	$	—

	Year-to-Date 2018
(Millions of dollars)	Gain (Loss) Recorded in OCI		Classification of Gain (Loss) Reclassified from OCI to Income	Gain (Loss) Reclassified from OCI to Income			Gain (Loss) Recognized in Income on Amounts Excluded from Effectiveness Testing
Interest Rate Contracts	$	21.8	Interest expense	$	—		$	—
Foreign Exchange Contracts	$	23.0	Cost of sales	$	(12.0	)	$	—

	Second Quarter 2017
(Millions of dollars)	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	$	(11.0	)	Interest expense	$	—	$	—
Foreign Exchange Contracts	$	(29.9	)	Cost of sales	$	5.2	$	—

	Year-to-Date 2017
(Millions of dollars)	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	$	(7.2	)	Interest expense	$	—	$	—
Foreign Exchange Contracts	$	(38.6	)	Cost of sales	$	9.7	$	—

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

A summary of the pre-tax effect of cash flow hedge accounting on the Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June 30, 2018 is as follows:

	Second Quarter 2018						Year-to-Date 2018
(Millions of dollars)	Cost of Sales			Interest Expense			Cost of Sales			Interest Expense
Total amount in the Consolidated Statements of Operations and Comprehensive Income in which the effects of the cash flow hedges are recorded	$	2,356.5		$	69.0		$	4,400.1		$	132.2
Gain (loss) on cash flow hedging relationships:
Foreign Exchange Contracts:
Hedged Items	$	9.2		$	—		$	12.0		$	—
Gain (loss) reclassified from OCI into Income	$	(9.2	)	$	—		$	(12.0	)	$	—
Interest Rate Swap Agreements:
Gain (loss) reclassified from OCI into Income 1	$	—		$	(3.8	)	$	—		$	(7.6	)

¹ Inclusive of the gain/loss amortization on terminated derivative financial instruments.

Details of Foreign Exchange Contracts Pre-Tax Amounts

	Year-to-Date 2018
(Millions of Dollars)	Total Gain (Loss) Recorded in OCI			Excluded Component Recorded in OCI		Income Statement Classification	Total Gain (Loss) Reclassified from OCI to Income		Excluded Component Amortized from OCI to Income
Forward Contracts	$	22.2		$	6.2	Other, net	$	4.1	$	4.1
Cross Currency Swap	$	2.9		$	8.3	Other, net	$	3.4	$	3.4
Option Contracts	$	(0.9	)	$	—	Other, net	$	—	$	—
Non-derivative designated as Net Investment Hedge	$	38.9		$	—	Other, net	$	—	$	—

	Second Quarter 2017							Year-to-Date 2017
(Millions of Dollars)	Amount Recorded in  OCI Gain (Loss)			Effective Portion Recorded in  Income Statement		Ineffective Portion* Recorded in Income Statement		Amount Recorded in  OCI Gain (Loss)			Effective Portion Recorded in  Income Statement		Ineffective Portion* Recorded in Income Statement
Other, net	$	(73.3	)	$	—	$	—	$	(89.0	)	$	—	$	—

*Includes ineffective portion and amount excluded from effectiveness testing.

Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments

The impacts of changes in the fair value related to derivatives not designated as hedging instruments under ASC 815 for the three and six months ended June 30, 2018 and July 1, 2017 are as follows: 

(Millions of Dollars)	Income Statement Classification	Second Quarter 2018 Amount of Gain (Loss) Recorded in Income on Derivative			Year-to-Date 2018 Amount of Gain (Loss) Recorded in Income on Derivative
Foreign Exchange Contracts	Other, net	$	(2.2	)	$	14.9

(Millions of Dollars)	Income Statement Classification	Second Quarter 2017 Amount of Gain (Loss) Recorded in Income on Derivative		Year-to-Date 2017 Amount of Gain (Loss) Recorded in Income on Derivative
Foreign Exchange Contracts	Other, net	$	1.1	$	29.7

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Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2018

Jul. 01, 2017

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 other1			Unrealized gains (losses) on cash flow hedges, net of tax			Unrealized gains (losses) on net investment hedges, net of tax			Pension gains (losses), net of tax			Total
Balance - December 30, 2017	$	(1,108.2	)	$	(112.6	)	$	3.4		$	(371.7	)	$	(1,589.1	)
Other comprehensive (loss) income before reclassifications	(294.9		)	43.6			49.3			7.1			(194.9		)
Reclassification adjustments to earnings	—			11.7			(5.9		)	5.8			11.6
Net other comprehensive (loss) income	(294.9		)	55.3			43.4			12.9			(183.3		)
Balance - June 30, 2018	$	(1,403.1	)	$	(57.3	)	$	46.8		$	(358.8	)	$	(1,772.4	)

(Millions of Dollars)	Currency translation adjustment and other1			Unrealized gains (losses) on cash flow hedges, net of tax			Unrealized gains (losses) on net investment hedges, net of tax			Pension gains (losses), net of tax			Total
Balance - December 31, 2016	$	(1,586.7	)	$	(46.3	)	$	88.6		$	(377.2	)	$	(1,921.6	)
Other comprehensive income (loss) before reclassifications	298.0			(44.7		)	(57.8		)	(20.3		)	175.2
Adjustments related to sales of businesses	4.7			—			—			2.6			7.3
Reclassification adjustments to earnings	—			(1.4		)	—			14.9			13.5
Net other comprehensive income (loss)	302.7			(46.1		)	(57.8		)	(2.8		)	196.0
Balance - July 1, 2017	$	(1,284.0	)	$	(92.4	)	$	30.8		$	(380.0	)	$	(1,725.6	)

Reclassifications out of accumulated other comprehensive income (loss)

The reclassifications out of Accumulated other comprehensive loss for the six months ended June 30, 2018 and July 1, 2017 were as follows:

(Millions of Dollars)	2018			2017			Affected line item in Consolidated Statements of Operations And Comprehensive Income
Realized gains (losses) on cash flow hedges	$	(12.0	)	$	9.7		Cost of sales
Realized gains (losses) on cash flow hedges	(7.6		)	(7.6		)	Interest expense
Total before taxes	$	(19.6	)	$	2.1
Tax effect	7.9			(0.7		)	Income taxes
Realized gains (losses) on cash flow hedges, net of tax	$	(11.7	)	$	1.4
Realized gains (losses) on net investment hedges	$	7.5		$	—		Other, net
Tax effect	(1.6		)	—			Income taxes
Realized gains (losses) on net investment hedges, net of tax	$	5.9		$	—
Amortization of defined benefit pension items:
Actuarial losses and prior service costs / credits	$	(7.8	)	$	(8.0	)	Other, net
Settlement loss	—			(12.8		)	Other, net
Total before taxes	$	(7.8	)	$	(20.8	)
Tax effect	2.0			5.9			Income taxes
Amortization of defined benefit pension items, net of tax	$	(5.8	)	$	(14.9	)

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Net Periodic Benefit Cost - Defined Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2018

Notes To Financial Statements [Abstract]

Components of Net Periodic Benefit Cost

Following are the components of net periodic pension (benefit) expense for the three and six months ended June 30, 2018 and July 1, 2017:

	Second Quarter
	Pension Benefits												Other Benefits
	U.S. Plans						Non-U.S. Plans						All Plans
(Millions of Dollars)	2018			2017			2018			2017			2018			2017
Service cost	$	2.0		$	2.1		$	3.8		$	3.3		$	0.2		$	0.2
Interest cost	11.0			10.9			7.2			7.1			0.4			0.3
Expected return on plan assets	(17.5		)	(16.1		)	(11.8		)	(11.2		)	—			—
Amortization of prior service cost (credit)	0.3			0.2			(0.2		)	(0.3		)	(0.4		)	(0.4		)
Amortization of net loss	2.0			2.3			2.3			2.3			—			—
Settlement / curtailment loss	—			—			0.1			0.3			—			—
Net periodic pension (benefit) expense	$	(2.2	)	$	(0.6	)	$	1.4		$	1.5		$	0.2		$	0.1

	Year-to-Date
	Pension Benefits												Other Benefits
	U.S. Plans						Non-U.S. Plans						All Plans
(Millions of Dollars)	2018			2017			2018			2017			2018			2017
Service cost	$	3.8		$	4.4		$	7.7		$	6.6		$	0.3		$	0.3
Interest cost	21.4			21.6			14.7			14.1			0.8			0.7
Expected return on plan assets	(34.3		)	(32.2		)	(24.0		)	(22.2		)	—			—
Amortization of prior service cost (credit)	0.5			0.5			(0.6		)	(0.6		)	(0.7		)	(0.7		)
Amortization of net loss	3.9			4.2			4.7			4.6			—			—
Settlement / curtailment loss	—			—			0.2			12.8			—			—
Net periodic pension (benefit) expense	$	(4.7	)	$	(1.5	)	$	2.7		$	15.3		$	0.4		$	0.3

In accordance with the adoption of ASU 2017-07, the components of net periodic benefit cost other than the service cost component are included in Other, net in the Consolidated Statements of Operations and Comprehensive Income.

For the three and six months ended July 1, 2017, the Company recorded pre-tax charges of approximately $0.3 million and $12.8 million, respectively, 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)

6 Months Ended

Jun. 30, 2018

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 Carrying Value		Level 1		Level 2		Level 3
June 30, 2018
Money market fund	$	10.8	$	10.8	$	—	$	—
Derivative assets	$	36.9	$	—	$	36.9	$	—
Derivative liabilities	$	78.9	$	—	$	78.9	$	—
Non-derivative hedging instrument	$	—	$	—	$	924.5	$	—
Contingent consideration liability	$	115.0	$	—	$	—	$	115.0
December 30, 2017
Money market fund	$	11.6	$	11.6	$	—	$	—
Derivative assets	$	18.0	$	—	$	18.0	$	—
Derivative liabilities	$	114.0	$	—	$	114.0	$	—
Contingent consideration liability	$	114.0	$	—	$	—	$	114.0

Summary of Financial Instruments Carrying and Fair Values

	June 30, 2018				December 30, 20171
(Millions of Dollars)	Carrying Value		Fair Value		Carrying Value		Fair Value
Other investments	$	7.6	$	7.8	$	7.6	$	7.9
Long-term debt, including current portion	$	3,810.1	$	3,925.6	$	3,805.7	$	3,991.0

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Restructuring Charges (Tables)

6 Months Ended

Jun. 30, 2018

Notes To Financial Statements [Abstract]

Summary of Restructuring Reserve Activity

A summary of the restructuring reserve activity from December 30, 2017 to June 30, 2018 is as follows:

(Millions of Dollars)	December 30, 2017		Net Additions		Usage			Currency			June 30, 2018
Severance and related costs	$	20.0	$	32.8	$	(22.9	)	$	(0.9	)	$	29.0
Facility closures and asset impairments	3.2		3.5		(5.0		)	—			1.7
Total	$	23.2	$	36.3	$	(27.9	)	$	(0.9	)	$	30.7

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Business Segments (Tables)

6 Months Ended

Jun. 30, 2018

Notes To Financial Statements [Abstract]

Business Segments

	Second Quarter						Year-to-Date
(Millions of Dollars)	2018			20171			2018			20171
NET SALES
Tools & Storage	$	2,567.8		$	2,307.4		$	4,783.6		$	4,202.3
Industrial	573.1			503.4			1,077.3			983.1
Security	502.7			475.9			992.0			957.6
Total	$	3,643.6		$	3,286.7		$	6,852.9		$	6,143.0
SEGMENT PROFIT
Tools & Storage	$	398.6		$	371.9		$	700.0		$	656.4
Industrial	85.5			94.7			166.0			179.8
Security	48.1			51.8			93.6			102.5
Segment profit	532.2			518.4			959.6			938.7
Corporate overhead	(50.9		)	(49.3		)	(98.2		)	(93.9		)
Other, net	119.3			55.3			177.3			155.8
Loss (gain) on sales of businesses	0.8			0.9			0.8			(268.3		)
Pension settlement	—			0.3			—			12.8
Restructuring charges	13.4			8.0			36.3			23.8
Interest expense	69.0			56.0			132.2			107.3
Interest income	(15.6		)	(9.7		)	(31.4		)	(18.3		)
Earnings before income taxes	$	294.4		$	358.3		$	546.2		$	831.7

Summary of Total Assets by Segment

he following table is a summary of total assets by segment as of June 30, 2018 and December 30, 2017:

(Millions of Dollars)	June 30, 2018			December 30, 20171
Tools & Storage	$	13,367.5		$	12,817.5
Industrial	3,896.7			3,413.3
Security	3,453.0			3,406.9
	20,717.2			19,637.7
Corporate assets	(537.6		)	(540.0		)
Consolidated	$	20,179.6		$	19,097.7

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Guarantees (Tables)

6 Months Ended

Jun. 30, 2018

Notes To Financial Statements [Abstract]

Financial Guarantees

The Company’s financial guarantees at June 30, 2018 are as follows:

(Millions of Dollars)	Term	Maximum Potential Payment		Carrying Amount of Liability
Guarantees on the residual values of leased assets	One to four years	$	100.4	$	—
Standby letters of credit	Up to three years	74.3		—
Commercial customer financing arrangements	Up to six years	71.0		7.3
Total		$	245.7	$	7.3

Changes in Carrying Amount of Product and Service Warranties

The changes in the carrying amount of product warranties for the six months ended June 30, 2018 and July 1, 2017 are as follows:

(Millions of Dollars)	2018			2017
Balance beginning of period1	$	108.5		$	103.4
Warranties and guarantees issued	53.9			50.4
Warranty payments and currency	(58.3		)	(47.1		)
Balance end of period	$	104.1		$	106.7

¹ 2018 beginning of period balance has been recast as a result of the adoption of new accounting standards. Refer to Note B, New Accounting Standards, for further discussion.

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Basis of Presentation - Additional Information (Detail) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018 USD ($)	Jul. 01, 2017 USD ($)	Jun. 30, 2018 USD ($)	Jul. 01, 2017 USD ($)	Dec. 30, 2017 Integer
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Document Period End Date			Jun. 30, 2018
Net Sales | $	$ 3,643.6	$ 3,286.7	$ 6,852.9	$ 6,143.0
Tools & Storage [Member]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
number of businesses sold					2
Industrial Segment
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
number of businesses sold					1

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New Accounting Standards New Accounting Standards (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017	Dec. 30, 2017	Apr. 01, 2017	Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Document Period End Date			Jun. 30, 2018
Deferred Revenue, Revenue Recognized	$ 18.9	$ 15.2	$ 93.5	$ 81.4
Accounts, Notes, Loans and Financing Receivable, Net, Current	2,151.4		2,151.4		$ 1,628.7
Revenue, Net	3,643.6	3,286.7	6,852.9	6,143.0
Cost of Goods and Services Sold	2,356.5	2,073.4	4,400.1	3,863.7
Selling, General and Administrative Expense	801.8	738.6	1,580.6	1,420.6
Provision for Doubtful Accounts	4.0	5.6	10.8	13.9
Other Noninterest Expense	119.3	55.3	177.3	155.8
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	294.4	358.3	546.2	831.7
Income Tax Expense (Benefit)	1.0	80.7	82.7	160.4
Net Income (Loss) Attributable to Parent	$ 293.6	$ 277.6	$ 464.2	$ 671.3
Earnings Per Share, Diluted	$ 1.93	$ 1.82	$ 3.03	$ 4.42
Other Assets, Noncurrent	$ 495.5		$ 495.5		512.7
Long-term Debt, Current Maturities	978.9		978.9		977.5
Accrued Liabilities, Current	1,270.0		1,270.0		1,387.7
Long-term Debt, Excluding Current Maturities	2,831.2		2,831.2		2,828.2
Deferred Tax Liabilities, Net, Noncurrent	467.0		467.0		436.1
Other Liabilities, Noncurrent	2,451.0		2,451.0		2,507.0
Retained Earnings (Accumulated Deficit)	6,273.9		6,273.9		5,998.7
Accumulated Other Comprehensive Income (Loss), Net of Tax	(1,772.4)	$ (1,725.6)	(1,772.4)	$ (1,725.6)	(1,589.1)		$ (1,921.6)
Increase (Decrease) in Operating Capital	(185.0)	(263.7)	(729.3)	(797.0)
Increase (Decrease) in Other Operating Assets and Liabilities, Net	(38.9)	21.2	(137.7)	14.4
Net Cash Provided by (Used in) Operating Activities	198.0	151.8	(151.4)	(162.3)
Supplemental Deferred Purchase Price	0.0	104.7	0.0	227.8	106.9
Net Cash Provided by (Used in) Investing Activities	(587.5)	(46.4)	(713.8)	(1,642.4)
Cash and Cash Equivalents, Period Increase (Decrease)	(19.8)	161.5	(251.7)	(637.7)
Cash and Cash Equivalents, at Carrying Value	$ 385.8	539.5	385.8	539.5	637.5	$ 378.0	1,177.2
Accounting Standards Update 2014-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue, Net		57.2		107.9
Adjustments for New Accounting Pronouncement [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue, Net		0.0		0.0
Scenario, Previously Reported [Member] | Adjustments for New Accounting Pronouncement [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts, Notes, Loans and Financing Receivable, Net, Current					1,635.9
Revenue, Net		3,229.5		6,035.1
Cost of Goods and Services Sold		2,017.3		3,757.6
Selling, General and Administrative Expense		733.9		1,410.4
Provision for Doubtful Accounts		4.8		13.0
Other Noninterest Expense		60.3		166.5
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest		357.7		830.3
Income Tax Expense (Benefit)		80.5		160.0
Net Income (Loss) Attributable to Parent		$ 277.2		$ 670.3
Earnings Per Share, Diluted		$ 1.82		$ 4.41
Other Assets, Noncurrent					487.8
Long-term Debt, Current Maturities					983.4
Accrued Liabilities, Current					1,352.1
Long-term Debt, Excluding Current Maturities					2,843.0
Deferred Tax Liabilities, Net, Noncurrent					434.2
Other Liabilities, Noncurrent					2,511.1
Retained Earnings (Accumulated Deficit)					5,990.4
Accumulated Other Comprehensive Income (Loss), Net of Tax					(1,585.9)
Increase (Decrease) in Operating Capital		$ (159.1)		$ (569.3)
Increase (Decrease) in Other Operating Assets and Liabilities, Net		21.7		60.9
Net Cash Provided by (Used in) Operating Activities		256.5		110.9
Supplemental Deferred Purchase Price		0.0	0.0
Net Cash Provided by (Used in) Investing Activities		(151.1)		(1,870.2)
Cash and Cash Equivalents, Period Increase (Decrease)		161.5		(592.3)
Cash and Cash Equivalents, at Carrying Value		539.5		539.5		378.0	1,131.8
Restatement Adjustment [Member] | Accounting Standards Update 2014-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost of Goods and Services Sold		55.8		105.6
Selling, General and Administrative Expense		0.0		0.0
Provision for Doubtful Accounts		0.8		0.9
Other Noninterest Expense		0.0		0.0
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest		0.6		1.4
Income Tax Expense (Benefit)		0.2		0.4
Net Income (Loss) Attributable to Parent		$ 0.4		$ 1.0
Earnings Per Share, Diluted		$ 0		$ 0.01
Increase (Decrease) in Operating Capital		$ 0.1		$ 0.1
Increase (Decrease) in Other Operating Assets and Liabilities, Net		(0.5)		(1.1)
Net Cash Provided by (Used in) Operating Activities		0.0		0.0
Supplemental Deferred Purchase Price		0.0	0.0
Net Cash Provided by (Used in) Investing Activities		0.0		0.0
Cash and Cash Equivalents, Period Increase (Decrease)		0.0		0.0
Cash and Cash Equivalents, at Carrying Value		0.0		0.0		0.0	0.0
Restatement Adjustment [Member] | Adjustments for New Accounting Pronouncement [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts, Notes, Loans and Financing Receivable, Net, Current					(7.2)
Cost of Goods and Services Sold		0.3		0.5
Selling, General and Administrative Expense		4.7		10.2
Provision for Doubtful Accounts		0.0		0.0
Other Noninterest Expense		(5.0)		(10.7)
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest		0.0		0.0
Income Tax Expense (Benefit)		0.0		0.0
Net Income (Loss) Attributable to Parent		$ 0.0		$ 0.0
Earnings Per Share, Diluted		$ 0		$ 0
Other Assets, Noncurrent					24.9
Long-term Debt, Current Maturities					(5.9)
Accrued Liabilities, Current					35.6
Long-term Debt, Excluding Current Maturities					(14.8)
Deferred Tax Liabilities, Net, Noncurrent					1.9
Other Liabilities, Noncurrent					(4.1)
Retained Earnings (Accumulated Deficit)					8.3		4.3
Accumulated Other Comprehensive Income (Loss), Net of Tax					$ (3.2)
Increase (Decrease) in Operating Capital		$ (104.7)		$ (227.8)
Increase (Decrease) in Other Operating Assets and Liabilities, Net		0.0		(45.4)
Net Cash Provided by (Used in) Operating Activities		(104.7)		(273.2)
Supplemental Deferred Purchase Price		104.7	$ 227.8
Net Cash Provided by (Used in) Investing Activities		104.7		227.8
Cash and Cash Equivalents, Period Increase (Decrease)		0.0		(45.4)
Cash and Cash Equivalents, at Carrying Value		$ 0.0		$ 0.0		$ 0.0	$ 45.4

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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		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Numerator
Net Earnings Attributable to Common Shareowners	$ 293.6	$ 277.6	$ 464.2	$ 671.3
Denominator:
Basic earnings per share - weighted-average shares	149,748	149,514	150,101	149,353
Weighted Average Number Diluted Shares Outstanding Adjustment	2,746	2,712	3,023	2,509
Diluted earnings per share - weighted-average shares	152,494	152,226	153,124	151,862
Basic earnings per share of common stock:
Total basic earnings per share of common stock	$ (1.96)	$ (1.86)	$ (3.09)	$ (4.49)
Diluted earnings per share of common stock:
Total dilutive earnings per share of common stock	$ 1.93	$ 1.82	$ 3.03	$ 4.42

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Weighted-Average Stock Options and Warrants Outstanding Not included in Computation of Diluted Shares Outstanding (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017	Dec. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Long-term Debt	$ 3,810.1		$ 3,810.1		$ 3,805.7
Preferred Stock Par Value Per Share	$ 2.5		$ 2.5		$ 2.50
Debt instrument, face amount	$ 3,840.0		$ 3,840.0
Payments for Repurchase of Common Stock	$ 201.3	$ 2.1	$ 212.7	$ 15.6
Common Stock, Shares, Issued	176,902,738		176,902,738		176,902,738
Equity Units Conversion Rate Number Of Common Stock Shares		0.7241	0.7251

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Earnings Per Share - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended			6 Months Ended
	Mar. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017	Dec. 30, 2017
Stockholders Equity Note [Line Items]
Option Indexed to Issuer's Equity, Strike Price			$ 162.05	$ 162.27	$ 162.05
Equity Unit				$ 750.0		$ 750.0
Preferred Stock, Liquidation Preference, Value				$ 750.0		$ 750.0
Preferred Stock Conversion Rate Number Of Common Stock Shares			$ 6.1709	$ 6.1627	$ 6.1709
Document Period End Date					Jun. 30, 2018
Long-term Debt					$ 750.0
Common Stock, Par or Stated Value Per Share		$ 2.5			$ 2.5		$ 2.50
Equity Units Conversion Rate Number Of Common Stock Shares				0.7241	0.7251
Common Stock, Shares, Issued		176,902,738			176,902,738		176,902,738
Minimum [Member]
Stockholders Equity Note [Line Items]
Option Indexed to Issuer's Equity, Strike Price	$ 156.86			$ 162.27	$ 162.05
Maximum [Member]
Stockholders Equity Note [Line Items]
Option Indexed to Issuer's Equity, Strike Price	$ 203.92			$ 179.53	$ 179.29
Stock Options [Member]
Stockholders Equity Note [Line Items]
Antidilutive securities excluded from the computation of EPS		1,161,000		0	1,162,000	1,163,000

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Financing Receivables - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017	Dec. 30, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Document Period End Date			Jun. 30, 2018
Deferred Revenue, Revenue Recognized	$ 18.9	$ 15.2	$ 93.5	$ 81.4
Number of Days Before Considered Past Due or Delinquent			90 days
Net receivables derecognized					$ 100.8
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale, Gain (Loss) on Sale		1.9		3.3
Proceeds from transfers of receivables to the purchaser		444.1		781.1
Payment to the Purchaser		408.7		781.1
Sale of receivables, deferred purchase price	0.0	104.7	$ 0.0	227.8	106.9
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		104.7		227.8
Deferred Revenue	188.2		188.2		117.0
Deferred Revenue, Current	93.3		93.3		95.6
Accounts Receivable, Gross, Current	1,952.6		1,952.6		1,388.1
Notes, Loans and Financing Receivable, Gross, Current	145.4		145.4		158.7
Other Receivables, Gross, Current	143.7		143.7		162.3
Trade Accounts And Notes Receivable Gross Current	2,241.7		2,241.7		1,709.1
Allowance for Doubtful Accounts Receivable, Current	(90.3)		(90.3)		(80.4)
Accounts, Notes, Loans and Financing Receivable, Net, Current	2,151.4		2,151.4		1,628.7
Financial Guarantee Insurance Contracts, Premium Received over Contract Period, Unearned Premium Revenue	1,155.0		1,155.0
Gross receivables sold
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables sold		549.3		1,003.1
Net receivables sold
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables sold		464.0		852.9
Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cash investment purchaser allowed to have in transferors receivables	100.0		100.0
Payment to the Purchaser, servicing fees		$ 0.4		$ 0.6
Other Assets [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Long-term trade financing receivables	168.5		168.5		$ 176.9
Newell Tools [Member] | Deferred Tax Asset [Domain]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities	269.4		269.4
Newell Tools [Member] | Cash [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities	7.9		7.9
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	$ 826.2		$ 826.2

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Components of Inventories (Detail) - USD ($) $ in Millions	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Apr. 01, 2017	Jun. 30, 2018	Jul. 01, 2017	Dec. 30, 2017
Schedule of Inventory [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired	$ 505.6	$ (5.3)		$ 506.8	$ 2,430.1
Document Period End Date				Jun. 30, 2018
Finished products	1,734.8			$ 1,734.8		$ 1,461.4
Work in process	197.3			197.3		155.5
Raw materials	512.1			512.1		401.5
Total	2,444.2			2,444.2		2,018.4
Newell Tools [Member]
Schedule of Inventory [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired			$ 1,860.0
Series of Individually Immaterial Business Acquisitions [Member]
Schedule of Inventory [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired				84.3		$ 182.9
Inventories [Member] | Newell Tools [Member]
Schedule of Inventory [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	$ 195.5			$ 195.5

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Inventories - Additional Informeation (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($)
Schedule of Inventory [Line Items]
Document Period End Date	Jun. 30, 2018
Newell Tools [Member] | Inventories [Member]
Schedule of Inventory [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	$ 195.5

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Acquisitions - Additional Information (Detail) $ in Millions	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2018 USD ($)	Jul. 01, 2017 USD ($)	Apr. 01, 2017 USD ($)	Jun. 30, 2018 USD ($)	Jul. 01, 2017 USD ($)	Dec. 30, 2017 USD ($)	Mar. 01, 2032	Feb. 01, 2032 USD ($)	Feb. 01, 2020 USD ($)
Business Acquisition [Line Items]
Business Acquisition, Goodwill, Expected Tax Deductible Amount	$ 15.7			$ 15.7
Document Period End Date				Jun. 30, 2018
Goodwill	8,947.7			$ 8,947.7		$ 8,776.1
Purchase price for acquisitions	$ 505.6	$ (5.3)		506.8	$ 2,430.1
Number of Businesses Acquired	4					4
Inventories, net	$ 2,444.2			2,444.2		$ 2,018.4
Industrial Segment
Business Acquisition [Line Items]
Goodwill	2,124.1			2,124.1		2,132.0
Nelson Fasteners [Member]
Business Acquisition [Line Items]
Purchase price for acquisitions	430.4
Fair Value, Net Asset (Liability)	227.0			227.0
Newell Tools [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred				$ 1,858.0
Purchase price for acquisitions			$ 1,860.0
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life				15 years
Newell Tools [Member]
Business Acquisition [Line Items]
Business Acquisition, Goodwill, Expected Tax Deductible Amount						442.7
Total Consideration Paid for Acquisition	916.2			$ 916.2
Business Combination, Consideration Transferred				568.2
Fair Value, Net Asset (Liability)	482.6			$ 482.6
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life				17 years
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue	293.0			$ 293.0
Series of Individually Immaterial Business Acquisitions [Member]
Business Acquisition [Line Items]
Purchase price for acquisitions				84.3		182.9
Fair Value, Net Asset (Liability)	30.6			$ 30.6		$ 89.4
Scenario, Forecast [Member]
Business Acquisition [Line Items]
Business Combination, Contingent Consideration Percent of Sales, Liability, Noncurrent							3.00%
Business Combination, Contingent Consideration, Liability, Noncurrent								$ 114.0
Scenario, Forecast [Member] | Subsequent Event [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Payable									$ 234.0
Minimum [Member] | Nelson Fasteners [Member]
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life				12 years
Minimum [Member] | Series of Individually Immaterial Business Acquisitions [Member]
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life				10 years		10 years
Minimum [Member] | Scenario, Forecast [Member]
Business Acquisition [Line Items]
Business Combination, Contingent Consideration Percent of Sales, Liability, Noncurrent								2.50%
Maximum [Member] | Nelson Fasteners [Member]
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life				15 years
Maximum [Member] | Series of Individually Immaterial Business Acquisitions [Member]
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life				12 years		15 years
Maximum [Member] | Scenario, Forecast [Member]
Business Acquisition [Line Items]
Business Combination, Contingent Consideration Percent of Sales, Liability, Noncurrent								3.50%
Prepaid Expenses and Other Current Assets [Member] | Newell Tools [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	27.1			$ 27.1
Accrued Liabilities [Member] | Newell Tools [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities	40.7			40.7
Property, Plant and Equipment [Member] | Newell Tools [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	112.4			112.4
Trade Names [Member] | Newell Tools [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	283.0			283.0
Deferred Tax Asset [Domain] | Newell Tools [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities	269.4			269.4
Cash [Member] | Newell Tools [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	20.0			20.0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities	7.9			7.9
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net	826.2			826.2
Goodwill [Member] | Nelson Fasteners [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	203.4			203.4
Goodwill [Member] | Newell Tools [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	1,031.8			1,031.8
Goodwill [Member] | Newell Tools [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	726.6			726.6
Goodwill [Member] | Series of Individually Immaterial Business Acquisitions [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	53.7			53.7		$ 93.5
intangible assets [Member] | Nelson Fasteners [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	174.0			174.0
intangible assets [Member] | Newell Tools [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	418.0			418.0
intangible assets [Member] | Series of Individually Immaterial Business Acquisitions [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	36.8			36.8		54.4
Customer Relationships [Member] | Nelson Fasteners [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	150.0			150.0
Customer Relationships [Member] | Newell Tools [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	548.0			548.0
Customer Relationships [Member] | Series of Individually Immaterial Business Acquisitions [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	24.4			24.4		51.4
Other Assets [Member] | Newell Tools [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	8.8			8.8
Accounts Payable [Member] | Newell Tools [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	70.3			70.3
Accounts Receivable [Member] | Newell Tools [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	19.7			19.7
Nelson Fasteners [Member]
Business Acquisition [Line Items]
Fair Value, Net Asset (Liability)	67.5			67.5
Series of Individually Immaterial Business Acquisitions [Member]
Business Acquisition [Line Items]
Fair Value, Net Asset (Liability)	$ 13.9			$ 13.9		$ 38.2

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Estimated Fair Values of Major Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 30, 2017
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Document Period End Date	Jun. 30, 2018
Goodwill	$ 8,947.7	$ 8,776.1
Newell Tools [Member]
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Fair Value, Net Asset (Liability)	227.0
Craftsman [Member]
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Deferred Revenue	293.0
Fair Value, Net Asset (Liability)	482.6
Total Consideration Paid for Acquisition	568.2
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	150.0
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	174.0
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	418.0
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	203.4
Goodwill [Member] | Craftsman [Member]
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	726.6
Craftsman [Member]
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items]
Fair Value, Net Asset (Liability)	40.2
Indefinite-Lived Trade Names	$ 396.0

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Supplemental Pro Forma Information Related to Business Acquisitions (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Business Acquisition [Line Items]
Business Acquisition, Pro Forma Revenue	$ 3,651.4	$ 3,394.1	$ 6,930.2	$ 6,505.4
Business Acquisition, Pro Forma Net Income (Loss)	$ 306.6	$ 276.9	$ 480.4	$ 667.7
Business Acquisition, Pro Forma Earnings Per Share, Diluted	$ 2.01	$ 1.82	$ 3.14	$ 4.40
Document Period End Date			Jun. 30, 2018
Newell Acquisition [Member]
Business Acquisition [Line Items]
Business Acquisition, Pro Forma Revenue	$ 66.1
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual	$ 11.3

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Changes in Carrying Amount of Goodwill by Segment (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($)
Goodwill [Line Items]
Goodwill, Acquired During Period	$ 288.7
Goodwill Beginning Balance	8,776.1
Foreign currency translation	(117.1)
Goodwill Ending Balance	8,947.7
Tools & Storage [Member]
Goodwill [Line Items]
Goodwill, Acquired During Period	40.8
Goodwill Beginning Balance	5,189.7
Foreign currency translation	(61.4)
Goodwill Ending Balance	5,169.1
Industrial Segment
Goodwill [Line Items]
Goodwill, Acquired During Period	203.9
Goodwill Beginning Balance	2,132.0
Foreign currency translation	(51.9)
Goodwill Ending Balance	2,124.1
Securities Industry
Goodwill [Line Items]
Goodwill, Acquired During Period	44.0
Goodwill Beginning Balance	1,454.4
Foreign currency translation	(3.8)
Goodwill Ending Balance	$ 1,654.5

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Long-Term Debt and Financing Arrangements (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 30, 2017	Apr. 01, 2017	Jan. 01, 2017
Debt Instrument [Line Items]
Document Period End Date	Jun. 30, 2018
Debt Issuance Costs, Net	$ 34.6
Long-term debt fair value adjustment	10.6
Commercial paper borrowings outstanding	1,100.0	$ 0.0
Commercial paper borrowings capacity	3,000.0	3,000.0	$ 3,000.0
sub-limit on revolving credit facility		400.0		$ 400.0
Debt instrument, face amount	3,840.0
Long-term Debt	3,810.1	3,805.7
Less: Current maturities of long-term debt	(978.9)	(977.5)
Long-Term Debt	2,831.2	2,828.2
Notes 2 Point 45 Percent due 2018 [Member] [Member]
Debt Instrument [Line Items]
Debt Issuance Costs, Net	0.7
Debt instrument, face amount	$ 632.5
Long-term debt, interest rate	2.45%
Long-term Debt	$ 631.8	630.9
Notes 2 Point 25 Percent due 2018 [Member]
Debt Instrument [Line Items]
Debt Issuance Costs, Net	$ 0.4
Stated interest rate	1.62%
Debt instrument, face amount	$ 345.0
Long-term Debt	$ 344.6	344.1
Notes payable due 2021
Debt Instrument [Line Items]
Long-term debt, interest rate	3.40%
Long-term Debt	$ 410.6	412.1
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	$ 2.7
Long-term debt, interest rate	2.90%
Long-term Debt	$ 751.3	750.9
Notes payable due 2028
Debt Instrument [Line Items]
Debt Issuance Costs, Net	$ 0.0
Long-term debt, interest rate	7.05%
Long-term Debt	$ 171.5	172.6
Notes payable due 2040
Debt Instrument [Line Items]
Debt Issuance Costs, Net	3.0
Long-term debt fair value adjustment	$ 0.0
Long-term debt, interest rate	5.20%
Long-term Debt	$ 364.1	363.3
Notes 5 Point 75 Percent Due 2052 [Member]
Debt Instrument [Line Items]
Debt Issuance Costs, Net	18.7
Debt instrument, face amount	$ 750.0
Long-term debt, interest rate	5.75%
Long-term Debt	$ 731.3	731.0
Notes 5 Point 75 Percent due 2053 [Member]
Debt Instrument [Line Items]
Debt Issuance Costs, Net	8.0
Debt instrument, face amount	$ 400.0
Long-term debt, interest rate	5.75%
Long-term Debt	$ 396.7	396.6
Other, payable in varying amounts through 2021
Debt Instrument [Line Items]
Debt Issuance Costs, Net	0.0
Debt instrument, face amount	8.2
Long-term Debt	$ 8.2	$ 4.2
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	3.38%	3.38%
New Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Current Borrowing Capacity	$ 1,750.0	$ 1,750.0
Committed Credit Facility [Member]
Debt Instrument [Line Items]
Amount of Credit Facility Foreign Currency Sublimit		400.0
2017 Credit Agreement [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Current Borrowing Capacity		1,250.0
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	10.6
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

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Long-Term Debt and Financing Arrangements - Additional Information (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 30, 2017	Apr. 01, 2017	Jan. 01, 2017
Debt Instrument [Line Items]
Commercial Paper Current Borrowing Capacity			$ 2,000.0
Deferred Finance Costs, Net	$ (34.6)
Long-term Debt	$ 3,810.1	$ 3,805.7
Document Period End Date	Jun. 30, 2018
Debt instrument, face amount	$ 3,840.0
Debt Instrument, Unamortized Discount	(0.6)
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge	(5.3)
Long-term debt fair value adjustment	10.6
Commercial paper borrowings outstanding	1,100.0	0.0
Commercial paper borrowings capacity	3,000.0	3,000.0	$ 3,000.0
Long-term Debt, Current Maturities	(978.9)	(977.5)
Long-term Debt, Excluding Current Maturities	$ 2,831.2	2,828.2
sub-limit on revolving credit facility		400.0		$ 400.0
Notes 2 Point 45 Percent due 2018 [Member] [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Effective Percentage	2.45%
Deferred Finance Costs, Net	$ (0.7)
Long-term Debt	631.8	630.9
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 1 Point 62 Percent due 2018 [Member]
Debt Instrument [Line Items]
Deferred Finance Costs, Net	(0.4)
Long-term Debt	344.6	344.1
Debt instrument, face amount	$ 345.0
Stated interest rate	1.62%
Notes 1 Point 62 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 1 Point 62 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	$ 410.6	412.1
Notes 3 Point 4 Percent Due in 2021 [Member]
Debt Instrument [Line Items]
Deferred Finance Costs, Net	(1.1)
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	11.8
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	(0.1)
Notes Payable due 2022 [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	754.3
Debt Instrument, Unamortized Discount	$ (0.3)
Notes Payable Maturities 2022 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Effective Percentage	2.90%
Deferred Finance Costs, Net	$ (2.7)
Long-term Debt	751.3	750.9
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	171.5	172.6
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	10.9
Long-term debt fair value adjustment	10.6
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	$ (3.0)
Long-term Debt	364.1	363.3
Debt Instrument, Unamortized Discount	(0.2)
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge	32.7
Long-term debt fair value adjustment	0.0
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	$ (18.7)
Long-term Debt	731.3	731.0
Debt instrument, face amount	750.0
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	$ (8.0)
Long-term Debt	396.7	396.6
Debt instrument, face amount	400.0
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	4.7
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	8.2	4.2
Debt instrument, face amount	8.2
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	924.5
2017 Credit Agreement [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Current Borrowing Capacity		1,250.0
Line of Credit Facility, Maximum Borrowing Capacity				$ 1,250.0
New Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Current Borrowing Capacity	$ 1,750.0	$ 1,750.0
Maximum [Member] | Notes Payable, Other Payables [Member]
Debt Instrument [Line Items]
Stated interest rate	3.38%	3.38%

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Summary of Fair Value of Derivatives (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017	Dec. 30, 2017
Derivatives, Fair Value [Line Items]
Long-term Debt, Excluding Current Maturities	$ 2,831.2		$ 2,831.2		$ 2,828.2
Long-term Debt, Current Maturities	978.9		$ 978.9		977.5
Document Period End Date			Jun. 30, 2018
Cash Flow Hedges
Derivatives, Fair Value [Line Items]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	7.1	$ 1.0	$ 11.7	$ 1.4
Fair Value Hedging [Member]
Derivatives, Fair Value [Line Items]
Derivative, Loss on Derivative	0.8	0.8	1.6	1.6
Net Investment Hedging [Member] | Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Notional Amount of Interest Rate Derivatives	701.4		701.4
Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Fair value of asset derivatives	19.3		19.3		10.7
Fair value of liability derivatives	982.1		982.1		107.1
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		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	33.9		33.9		55.7
Designated as Hedging Instruments | Cash Flow Hedges | Foreign Exchange Contracts | Other current assets
Derivatives, Fair Value [Line Items]
Fair value of asset derivatives	7.3		7.3		4.1
Designated as Hedging Instruments | Cash Flow Hedges | Foreign Exchange Contracts | LT other assets
Derivatives, Fair Value [Line Items]
Fair value of asset derivatives	1.8		1.8		0.0
Designated as Hedging Instruments | Cash Flow Hedges | Foreign Exchange Contracts | Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Fair value of liability derivatives	5.4		5.4		33.4
Designated as Hedging Instruments | Cash Flow Hedges | Foreign Exchange Contracts | LT other liabilities
Derivatives, Fair Value [Line Items]
Fair value of liability derivatives	1.0		1.0		5.2
Designated as Hedging Instruments | Fair Value Hedging [Member] | Long-term Debt [Member]
Derivatives, Fair Value [Line Items]
Long-term Debt, Excluding Current Maturities	2,831.2		2,831.2
Designated as Hedging Instruments | Net Investment Hedging [Member] | Other current assets
Derivatives, Fair Value [Line Items]
Fair value of asset derivatives	10.2		10.2		6.6
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 Liabilities [Member]
Derivatives, Fair Value [Line Items]
Fair value of liability derivatives	1.5		1.5		7.0
Designated as Hedging Instruments | Net Investment Hedging [Member] | LT other liabilities
Derivatives, Fair Value [Line Items]
Fair value of asset derivatives	0.0		0.0
Fair value of liability derivatives	15.8		15.8		5.8
Designated as Hedging Instruments | Net Investment Hedging [Member] | Short-term Debt [Member]
Derivatives, Fair Value [Line Items]
Hedging Liabilities, Current	924.5		924.5		0.0
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Other current assets
Derivatives, Fair Value [Line Items]
Fair value of asset derivatives	17.6		17.6		7.3
Not Designated as Hedging Instrument | Foreign Exchange Contracts | Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Fair value of liability derivatives	21.3		21.3		$ 6.9
Other, net | Cash Flow Hedges | Interest Rate Contracts
Derivatives, Fair Value [Line Items]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	0.0		0.0
Other, net | Cash Flow Hedges | Foreign Exchange Contracts
Derivatives, Fair Value [Line Items]
Derivative, Hedged Item, Gain (Loss) Effect on Income Statement	9.2	5.2	12.0	9.7
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	$ (9.2)	$ 5.2	$ (12.0)	$ 9.7

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Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017	Dec. 30, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge		$ (5.3)		$ (5.3)
Cost of Goods and Services Sold		2,356.5	$ 2,073.4	4,400.1	$ 3,863.7
Interest Expense		69.0	56.0	$ 132.2	107.3
Document Period End Date				Jun. 30, 2018
Payments for (Proceeds from) Derivative Instrument, Investing Activities				$ 23.5	(22.8)
Debt instrument, face amount		3,840.0		3,840.0
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax				(11.6)	(13.5)
Notes 5 Point 75 Percent due 2053 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Debt instrument, face amount		400.0		400.0
Notes payable due 2040
Derivative Instruments, Gain (Loss) [Line Items]
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge		32.7		32.7
Notes Payable due 2022 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Debt instrument, face amount		754.3		754.3
Notes 5 Point 75 Percent Due 2052 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Debt instrument, face amount		750.0		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		(57.3)		(57.3)		$ (112.6)
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				(29.8)
Gain (loss) reclassified from accumulated other comprehensive loss into earnings		(7.1)	(1.0)	(11.7)	(1.4)
Fair Value Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Loss on Derivative		0.8	0.8	1.6	1.6
Fixed-to-Floating Interest Rate Swaps Terminated | Notes 3 Point 4 Percent Due in 2021 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge		11.8		11.8
Fixed-to-Floating Interest Rate Swaps Terminated | Notes 5 Point 75 Percent Due 2052 [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge		0.0		0.0
Foreign Exchange Forward | Cash Flow Hedges
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Interest Rate Derivatives		264.1		264.1		559.9
Foreign Exchange Option | Cash Flow Hedges
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Interest Rate Derivatives		375.5		375.5		400.0
Foreign Exchange Contracts | Net Investment Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Payments for (Proceeds from) Derivative Instrument, Investing Activities				(20.3)	(3.7)
Notional Amount of Interest Rate Derivatives		701.4		701.4
Accumulated Other Comprehensive Income Loss Cumulative Changes In Net Gain Loss From Hedging Activities Effect Net Of Tax		(46.8)		(46.8)		(3.4)
Foreign Exchange Contracts | Net Investment Hedging [Member] | Currency, British Pound Sterling
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Interest Rate Derivatives						751.2
Currency Swap [Member] | Net Investment Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Interest Rate Derivatives		250.0		250.0		250.0
Options Held [Member] | Net Investment Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Interest Rate Derivatives		36.2		36.2
Interest Rate Swap [Member] | Cash Flow Hedges
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Interest Rate Derivatives		400.0		400.0		400.0
Not Designated as Hedging Instrument | Forward Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Notional Amount of Interest Rate Derivatives		1,400.0		1,400.0		$ 1,000.0
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	(11.0)	21.8	(7.2)
Gain (loss) reclassified from accumulated other comprehensive loss into earnings		0.0	0.0	0.0	0.0
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net		0.0		0.0
Interest Expense [Member] | Foreign Exchange Contracts | Cash Flow Hedges
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Hedged Item, Gain (Loss) Effect on Income Statement		0.0		0.0
Gain (loss) reclassified from accumulated other comprehensive loss into earnings		0.0		0.0
Interest Expense [Member] | Interest Rate Swap [Member] | Cash Flow Hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) reclassified from accumulated other comprehensive loss into earnings		3.8		7.6
Interest Expense [Member] | Net Investment Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) reclassified from accumulated other comprehensive loss into earnings				0.0
Derivative, Loss on Derivative				0.0
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax		0.0
Gain (Loss) on Components Excluded from Assessment of Price Risk Hedge Effectiveness		0.0
Interest Expense [Member] | Currency Swap [Member] | Net Investment Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) reclassified from accumulated other comprehensive loss into earnings		(1.7)		(3.4)
Derivative, Loss on Derivative		1.7		3.4
Interest Expense [Member] | Forward Contracts | Net Investment Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net		48.7		22.2
Gain (loss) reclassified from accumulated other comprehensive loss into earnings		(2.3)		(4.1)
Derivative, Loss on Derivative		2.3		4.1
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net		2.3		6.2
Interest Expense [Member] | Cross Currency Interest Rate Contract [Member] | Net Investment Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net		1.4		2.9
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net		1.4		8.3
Interest Expense [Member] | Equity Option [Member] | Net Investment Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net		2.6		(0.9)
Gain (loss) reclassified from accumulated other comprehensive loss into earnings		0.0		0.0
Derivative, Loss on Derivative		0.0		0.0
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net		0.0		0.0
Interest Expense [Member] | Designated as Hedging Instrument [Member] | Net Investment Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Net of Tax		51.5		38.9
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net				0.0
Gain (Loss) on Components Excluded from Assessment of Price Risk Hedge Effectiveness		0.0
Other Income And Expense [Member] | Foreign Exchange Contracts | Net Investment Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net			(73.3)		(89.0)
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
Other, net | Interest Rate Contracts | Cash Flow Hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) reclassified from accumulated other comprehensive loss into earnings		0.0		0.0
Other, net | 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		29.7	(29.9)	23.0	(38.6)
Derivative, Hedged Item, Gain (Loss) Effect on Income Statement		9.2	5.2	12.0	9.7
Gain (loss) reclassified from accumulated other comprehensive loss into earnings		9.2	(5.2)	12.0	(9.7)
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net	[1]	0.0	$ 0.0	0.0	$ 0.0
Other current assets | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Asset, Fair Value, Gross Asset		0.0		0.0
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge		3.2		3.2
Long-term Debt [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Asset, Fair Value, Gross Asset		0.0		0.0
Deferred (Gain) Loss on Discontinuation of Fair Value Hedge		$ (8.4)		$ (8.4)

[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) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Interest Expense		$ 69.0	$ 56.0	$ 132.2	$ 107.3
Document Period End Date				Jun. 30, 2018
Fair Value Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Loss on Derivative		0.8	0.8	$ 1.6	1.6
Cash Flow Hedges
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from OCI to Income (Effective Portion)		7.1	1.0	11.7	1.4
Cash Flow Hedges | Interest Rate Contracts | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount Recorded in OCI Gain (Loss)		3.8	(11.0)	21.8	(7.2)
Gain (Loss) Reclassified from OCI to Income (Effective Portion)		0.0	0.0	0.0	0.0
Gain (Loss) Recognized in Income (Ineffective Portion)		0.0		0.0
Cash Flow Hedges | Interest Rate Contracts | Other, net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) Reclassified from OCI to Income (Effective Portion)		0.0		0.0
Cash Flow Hedges | Foreign Exchange Contracts | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Hedged Item, Gain (Loss) Effect on Income Statement		0.0		0.0
Gain (Loss) Reclassified from OCI to Income (Effective Portion)		0.0		0.0
Cash Flow Hedges | Foreign Exchange Contracts | Other, net
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Hedged Item, Gain (Loss) Effect on Income Statement		9.2	5.2	12.0	9.7
Amount Recorded in OCI Gain (Loss)		29.7	(29.9)	23.0	(38.6)
Gain (Loss) Reclassified from OCI to Income (Effective Portion)		(9.2)	5.2	(12.0)	9.7
Gain (Loss) Recognized in Income (Ineffective Portion)	[1]	$ 0.0	$ 0.0	$ 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	6 Months Ended
	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Document Period End Date		Jun. 30, 2018
Foreign Exchange Contract [Member] | Net Investment Hedging [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Notional Amount of Interest Rate Derivatives		$ 701.4
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	$ (73.3)		$ (89.0)
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net	$ 0.0		$ 0.0
Long-term Debt [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative Asset, Fair Value, Gross Liability		0.0
Other current assets | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative Asset, Fair Value, Gross Liability		$ 0.0

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Details of Foreign Exchange Contracts Pre-Tax Amounts (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017	Dec. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Proceeds from Hedge, Investing Activities			$ (23.5)	$ 22.8
Document Period End Date			Jun. 30, 2018
Fair Value Hedging [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative, Loss on Derivative	$ 0.8	$ 0.8	$ 1.6	1.6
Net Investment Hedging | Foreign Exchange Contracts
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative, Notional Amount	701.4		701.4
Proceeds from Hedge, Investing Activities			20.3	3.7
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)		(73.3)		(89.0)
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		$ 250.0

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Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
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	$ (2.2)	$ 1.1	$ 14.9	$ 29.7
Fair Value Hedging [Member]
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative, Loss on Derivative	$ 0.8	$ 0.8	$ 1.6	$ 1.6

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Equity Arrangements - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		3 Months Ended			6 Months Ended
	Mar. 31, 2018	Mar. 31, 2015	Jun. 30, 2018	Mar. 31, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017	Dec. 30, 2017	May 17, 2017	May 11, 2017
Stockholders Equity Note [Line Items]
Treasury Stock, Shares, Acquired						1,399,732
Treasury Stock, Common, Value			$ 200.0			$ 200.0
Interest Expense						1.3
Forward share purchase contract		$ 350.0
Payments for Repurchase of Common Stock			$ 201.3		$ 2.1	$ 212.7	$ 15.6
Common Stock, Shares, Issued			176,902,738			176,902,738		176,902,738
Long-term Debt						$ 750.0
Number of common shares purchased under call option				3,200,000	4,600,000
Call option, aggregate premium				$ 57.3	$ 25.1
Preferred Stock, Value, Issued			$ 750.0			$ 750.0		$ 750.0
Equity Forward Contracts, Net Settlement, Shares		3,645,510
Equity Units Conversion Rate Number Of Common Stock Shares					0.7241	0.7251
Document Period End Date						Jun. 30, 2018
equity units issued					7,500,000		7,500,000
Equity Unit					$ 750.0		$ 750.0
Shares Issued, Price Per Share			$ 137.92		$ 100	$ 137.92	$ 100			$ 138.10
Forward Contract Indexed to Issuer's Equity, Forward Rate Per Share					100	100
Preferred Stock, Liquidation Preference Per Share					$ 1,000		$ 1,000
equity unit proceeds					$ 727.5		$ 727.5
Preferred Stock, Shares Issued					750,000		750,000
Preferred Stock, Liquidation Preference, Value					$ 750.0		$ 750.0
Preferred Stock Conversion Rate Number Of Common Stock Shares				$ 6.1709	$ 6.1627	6.1709
Option Indexed to Issuer's Equity, Strike Price				162.05	162.27	$ 162.05
Forward Contract Indexed to Issuer's Equity, Shares						5,400,000
Option Indexed to Issuer's Equity, Settlement Alternatives, Cash, at Fair Value			$ 34.8			$ 34.8
Percentage Of Contract Price Paid			5.375%			5.375%
Forward Contract Indexed to Issuer's Equity, Settlement Alternatives, Cash, at Fair Value			$ 78.3			$ 78.3			$ 117.1
Call Option [Member]
Stockholders Equity Note [Line Items]
Call option, average price (in dollars per share)				$ 17.96	5.43
Maximum [Member]
Stockholders Equity Note [Line Items]
Option Indexed to Issuer's Equity, Strike Price	$ 203.92				179.53	$ 179.29
Minimum [Member]
Stockholders Equity Note [Line Items]
Option Indexed to Issuer's Equity, Strike Price	$ 156.86				$ 162.27	$ 162.05
May 2017 Capped Call [Member]
Stockholders Equity Note [Line Items]
Option Indexed to Issuer's Equity, Settlement Alternatives, Cash, at Fair Value			$ 16.2			$ 16.2

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Summary of Capped Call (Equity Options) Issued (Detail) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended			6 Months Ended
	Mar. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017	Dec. 30, 2017
Option Indexed to Issuer's Equity [Line Items]
Option Indexed to Issuer's Equity, Strike Price			$ 162.05	$ 162.27	$ 162.05
Document Period End Date					Jun. 30, 2018
Long-term Debt				$ 750.0		$ 750.0
Original Number of Options			3,200,000	4,600,000
Net Premium Paid			$ 57.3	$ 25.1
Common Stock, Par or Stated Value Per Share				$ 100	$ 100
Equity Units Conversion Rate Number Of Common Stock Shares				0.7241	0.7251
Payments for Repurchase of Common Stock		$ 201.3		$ 2.1	$ 212.7	$ 15.6
Common Stock, Shares, Issued		176,902,738			176,902,738		176,902,738
Cash Settlement on Forward Stock Purchase Contract					$ 750.0
Minimum [Member]
Option Indexed to Issuer's Equity [Line Items]
Option Indexed to Issuer's Equity, Strike Price	$ 156.86			$ 162.27	$ 162.05
Maximum [Member]
Option Indexed to Issuer's Equity [Line Items]
Option Indexed to Issuer's Equity, Strike Price	$ 203.92			179.53	$ 179.29
Capped call (equity options)
Option Indexed to Issuer's Equity [Line Items]
Common Stock Price Per Share			$ 17.96	$ 5.43

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Accumulated Other Comprehensive Loss - Changes in AOCI (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Accumulated other comprehensive income (loss):
Balance - beginning of period	$ (1,589.1)	$ (1,921.6)
Other comprehensive (loss) income before reclassifications	(194.9)	175.2
Reclassification adjustments to earnings	11.6	13.5
Net other comprehensive (loss) income	(183.3)	196.0
Balance - end of period	(1,772.4)	(1,725.6)
Currency translation adjustment and other1
Accumulated other comprehensive income (loss):
Balance - beginning of period	(1,108.2)	(1,586.7)
Other comprehensive (loss) income before reclassifications	(294.9)	298.0
Reclassification adjustments to earnings	0.0	0.0
Net other comprehensive (loss) income	(294.9)	302.7
Balance - end of period	(1,403.1)	(1,284.0)
Unrealized gains (losses) on cash flow hedges, net of tax
Accumulated other comprehensive income (loss):
Balance - beginning of period	(112.6)	(46.3)
Other comprehensive (loss) income before reclassifications	43.6	(44.7)
Reclassification adjustments to earnings	11.7	(1.4)
Net other comprehensive (loss) income	55.3	(46.1)
Balance - end of period	(57.3)	(92.4)
Unrealized gains (losses) on net investment hedges, net of tax
Accumulated other comprehensive income (loss):
Balance - beginning of period	3.4	88.6
Other comprehensive (loss) income before reclassifications	49.3	(57.8)
Reclassification adjustments to earnings	(5.9)	0.0
Net other comprehensive (loss) income	43.4	(57.8)
Balance - end of period	46.8	30.8
Pension gains (losses), net of tax
Accumulated other comprehensive income (loss):
Balance - beginning of period	(371.7)	(377.2)
Other comprehensive (loss) income before reclassifications	7.1	(20.3)
Reclassification adjustments to earnings	5.8	14.9
Net other comprehensive (loss) income	12.9	(2.8)
Balance - end of period	$ (358.8)	(380.0)
Disposal Group, Not Discontinued Operations [Member] | Currency translation adjustment and other1
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 gains (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 gains (losses), 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		4 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jul. 01, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income taxes	$ (1.0)	$ (80.7)			$ (82.7)	$ (160.4)
(Millions of Dollars)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax					(19.6)	2.1
(Millions of Dollars) | Other, net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax					(12.0)	9.7
(Millions of Dollars) | Other Expense [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax					7.5	0.0
(Millions of Dollars) | Interest Expense [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax					7.6	7.6
(Millions of Dollars) | Pension gains (losses), net of tax
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax					(7.8)	(20.8)
Income taxes					(2.0)	(5.9)
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, after Tax					(5.8)	(14.9)
(Millions of Dollars) | Pension gains (losses), net of tax | Other Expense [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Actuarial losses, reclassification to Statements of Operations and Comprehensive Income			$ 0.0	$ 0.0	(7.8)	(8.0)
Cash Flow Hedges | (Millions of Dollars) | Unrealized gains (losses) on cash flow hedges, net of tax
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income taxes					7.9	(0.7)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax					11.7	1.4
Net Investment Hedging [Member] | (Millions of Dollars) | Unrealized gains (losses) on cash flow hedges, net of tax
Accumulated Other Comprehensive Income (Loss) [Line Items]
Income taxes					(1.6)	0.0
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax					$ 5.9	$ 0.0

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Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Apr. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
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	$ 0.0	$ (0.3)	$ (12.8)	$ 0.0	$ (12.8)
Document Period End Date				Jun. 30, 2018
Foreign Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	3.8	3.3		$ 7.7	6.6
Interest cost	7.2	7.1		14.7	14.1
Expected return on plan assets	(11.8)	(11.2)		(24.0)	(22.2)
Amortization of prior service cost (credit)	(0.2)	(0.3)		(0.6)	(0.6)
Defined Benefit Plan, Amortization of Gain (Loss)	2.3	2.3		4.7	4.6
Curtailment loss	0.1	0.3		0.2	12.8
Net periodic benefit cost	1.4	1.5		2.7	15.3
Other Postretirement Benefits Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	0.2	0.2		0.3	0.3
Interest cost	0.4	0.3		0.8	0.7
Expected return on plan assets	0.0	0.0		0.0	0.0
Amortization of prior service cost (credit)	(0.4)	(0.4)		(0.7)	(0.7)
Defined Benefit Plan, Amortization of Gain (Loss)	0.0	0.0		0.0	0.0
Curtailment loss	0.0	0.0		0.0	0.0
Net periodic benefit cost	0.2	0.1		0.4	0.3
Domestic Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	2.0	2.1		3.8	4.4
Interest cost	11.0	10.9		21.4	21.6
Expected return on plan assets	(17.5)	(16.1)		(34.3)	(32.2)
Amortization of prior service cost (credit)	0.3	0.2		0.5	0.5
Defined Benefit Plan, Amortization of Gain (Loss)	2.0	2.3		3.9	4.2
Curtailment loss	0.0	0.0		0.0	0.0
Net periodic benefit cost	$ (2.2)	$ (0.6)		$ (4.7)	$ (1.5)

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Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Feb. 01, 2032	Dec. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Document Period End Date	Jun. 30, 2018
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market fund	$ 10.8		$ 11.6
Derivative assets	36.9		18.0
Derivative liabilities	78.9		114.0
non derivative hedging instrument	0.0
Business Combination, Contingent Consideration, Liability, Noncurrent	115.0		114.0
Level 1 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market fund	10.8		11.6
Derivative assets	0.0		0.0
Derivative liabilities	0.0		0.0
non derivative hedging instrument	0.0
Business Combination, Contingent Consideration, Liability, Noncurrent	0.0		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
Business Combination, Contingent Consideration, Liability, Noncurrent	0.0		0.0
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market fund	0.0		0.0
Derivative assets	0.0		0.0
Derivative liabilities	0.0		0.0
non derivative hedging instrument	0.0
Business Combination, Contingent Consideration, Liability, Noncurrent	115.0		114.0
Scenario, Forecast [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Business Combination, Contingent Consideration, Liability, Noncurrent		$ 114.0
Not Designated as Hedging Instrument | Level 2 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset, Fair Value, Gross Asset	36.9		18.0
Derivative liabilities	78.9
non derivative hedging instrument	924.5
Derivative Liability, Fair Value, Gross Liability	$ 1,003.4		$ 114.0

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Summary of Financial Instruments Carrying and Fair Values (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Mar. 01, 2032	Feb. 01, 2032	Dec. 30, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Document Period End Date	Jun. 30, 2018
Investments, Fair Value Disclosure	$ 7.8			$ 7.9
Long-term debt, including current maturities	3,810.1			3,805.7
Long-term Debt, Fair Value	3,925.6			3,991.0
Sensitivity Analysis of Fair Value, Contingent Consideration Liability, Impact of 10 Percent Adverse Change in Discount Rate				8.0
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, Fair Value Disclosure	7.6			7.6
Long-term debt, including current maturities	$ 3,810.1			$ 3,805.7
Scenario, Forecast [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Business Combination, Contingent Consideration Percent of Sales, Liability, Noncurrent		3.00%
Business Combination, Contingent Consideration, Liability, Noncurrent			$ 114.0
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) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Document Period End Date			Jun. 30, 2018
Business Acquisition, Transaction Costs	$ 9.4	$ 5.6	$ 15.3	$ 45.6
Centredale Site [Member]
Environmental Costs Recognized, Capitalized	$ 77.7		$ 77.7

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Summary of Restructuring Reserve Activity (Detail) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($) employee	Jul. 01, 2017 USD ($)	Jun. 30, 2018 USD ($) employee	Jul. 01, 2017 USD ($)
Restructuring Cost and Reserve [Line Items]
Document Period End Date			Jun. 30, 2018
Reserve, Beginning Balance			$ 23.2
Restructuring charges	$ 13.4	$ 8.0	36.3	$ 23.8
Usage			(27.9)
Currency			(0.9)
Reserve, Ending Balance	30.7		30.7
Severance and related costs
Restructuring Cost and Reserve [Line Items]
Reserve, Beginning Balance			20.0
Restructuring charges			32.8
Usage			(22.9)
Currency			(0.9)
Reserve, Ending Balance	29.0		29.0
Facility closures
Restructuring Cost and Reserve [Line Items]
Reserve, Beginning Balance			3.2
Restructuring charges			3.5
Usage			(5.0)
Currency			0.0
Reserve, Ending Balance	1.7		1.7
Series of Individually Immaterial Business Acquisitions [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	13.4		36.3
Severance Costs	$ 10.5		$ 32.8
Restructuring and Related Cost, Number of Positions Eliminated | employee	594		1,000
Business Exit Costs	$ 2.9		$ 3.5
Tools & Storage [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	7.0		15.0
Corporate Segment [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1.0		4.0
Securities Industry
Restructuring Cost and Reserve [Line Items]
Restructuring charges	3.0		12.0
Industrial Segment
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 2.0		$ 5.0

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Restructuring Charges - Additional Information (Detail) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($) employee	Jul. 01, 2017 USD ($)	Jun. 30, 2018 USD ($) employee	Jul. 01, 2017 USD ($)	Dec. 30, 2017 USD ($)
Restructuring Cost and Reserve [Line Items]
Document Period End Date			Jun. 30, 2018
Restructuring charges and asset impairments recognized	$ (13.4)	$ (8.0)	$ (36.3)	$ (23.8)
Restructuring reserves	30.7		30.7		$ 23.2
Tools & Storage [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges and asset impairments recognized	(7.0)		(15.0)
Securities Industry
Restructuring Cost and Reserve [Line Items]
Restructuring charges and asset impairments recognized	(3.0)		(12.0)
Industrial Segment
Restructuring Cost and Reserve [Line Items]
Restructuring charges and asset impairments recognized	(2.0)		(5.0)
Corporate Segment [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges and asset impairments recognized	(1.0)		(4.0)
Series of Individually Immaterial Business Acquisitions [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges and asset impairments recognized	(13.4)		(36.3)
Severance Costs	$ 10.5		$ 32.8
Number of employees reduced | employee	594		1,000
Business Exit Costs	$ 2.9		$ 3.5
Facility closures
Restructuring Cost and Reserve [Line Items]
Restructuring charges and asset impairments recognized			(3.5)
Restructuring reserves	1.7		1.7		3.2
Severance and related costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges and asset impairments recognized			(32.8)
Restructuring reserves	$ 29.0		$ 29.0		$ 20.0

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Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017	Dec. 30, 2017
Disclosure Income Taxes Additional Information [Abstract]
Tax Cuts and Jobs Act of 2017					$ 460.7
Income taxes on continuing operations	$ 1.0	$ 80.7	$ 82.7	$ 160.4
Document Period End Date			Jun. 30, 2018
Effective tax rate	0.30%	22.50%	15.10%	19.30%
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount			$ 23.1
Business Combination, Acquisition Related Costs	7.00%	23.50%	13.40%	24.10%
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Change in Tax Rate, Provisional Income Tax Expense (Benefit)			$ 17.4		252.5
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Provisional Income Tax (Expense) Benefit					276.1
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Change in Tax Rate, Deferred Tax Liability, Provisional Income Tax (Expense) Benefit					184.6
Deferred Tax Liabilities, Gross, Noncurrent					$ 4.9

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Business Segments (Detail) $ in Millions	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2018 USD ($)	Jul. 01, 2017 USD ($)	Apr. 01, 2017 USD ($)	Jun. 30, 2018 USD ($) Integer	Jul. 01, 2017 USD ($)	Dec. 30, 2017 USD ($)
Segment Reporting Information [Line Items]
Revenue, Net	$ 3,643.6	$ 3,286.7		$ 6,852.9	$ 6,143.0
Document Period End Date				Jun. 30, 2018
Number of Reportable Segments | Integer				3
Segment profit	532.2	518.4		$ 959.6	938.7
Corporate overhead	(50.9)	(49.3)		(98.2)	(93.9)
Other-net	(119.3)	(55.3)		(177.3)	(155.8)
Gain (Loss) on Disposition of Business	0.8	0.9		0.8	(268.3)	$ 14.0
Defined Benefit Plan, Settlements, Plan Assets	0.0	(0.3)	$ (12.8)	0.0	(12.8)
Restructuring charges and asset impairments recognized	(13.4)	(8.0)		(36.3)	(23.8)
Interest Expense	(69.0)	(56.0)		(132.2)	(107.3)
Interest income	15.6	9.7		31.4	18.3
Earnings from continuing operations before income taxes	(294.4)	(358.3)		(546.2)	(831.7)
Tools & Storage [Member]
Segment Reporting Information [Line Items]
Restructuring charges and asset impairments recognized	(7.0)			(15.0)
Securities Industry
Segment Reporting Information [Line Items]
Restructuring charges and asset impairments recognized	(3.0)			(12.0)
Industrial Segment
Segment Reporting Information [Line Items]
Restructuring charges and asset impairments recognized	(2.0)			(5.0)
Segment, Continuing Operations | Tools & Storage [Member]
Segment Reporting Information [Line Items]
Revenue, Net	2,567.8	2,307.4		4,783.6	4,202.3
Segment profit	398.6	371.9		700.0	656.4
Segment, Continuing Operations | Securities Industry
Segment Reporting Information [Line Items]
Revenue, Net	$ 502.7	$ 475.9		$ 992.0	$ 957.6
Net Sales	.439	.496		.461	.478
Segment profit	$ 48.1	$ 51.8		$ 93.6	$ 102.5
Segment, Continuing Operations | Industrial Segment
Segment Reporting Information [Line Items]
Revenue, Net	$ 573.1	$ 503.4		$ 1,077.3	$ 983.1
Net Sales	.103	.145		.106	.129
Segment profit	$ 85.5	$ 94.7		$ 166.0	$ 179.8
Engineered Fastening [Member] | Segment, Continuing Operations | Industrial Segment
Segment Reporting Information [Line Items]
Revenue, Net	468.2	388.8		880.0	778.8
Infrastructure business [Member] | Segment, Continuing Operations | Industrial Segment
Segment Reporting Information [Line Items]
Revenue, Net	$ 104.9	$ 114.6		$ 197.3	$ 204.3

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Business Segments - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Segment Reporting Information [Line Items]
Revenue, Net	$ 3,643.6	$ 3,286.7	$ 6,852.9	$ 6,143.0
Decrease in segment profit due to non-cash inventory step-up amortization	532.2	518.4	959.6	938.7
Continuing Operations [Member] | Tools & Storage [Member]
Segment Reporting Information [Line Items]
Revenue, Net	2,567.8	2,307.4	4,783.6	4,202.3
Decrease in segment profit due to non-cash inventory step-up amortization	$ 398.6	$ 371.9	$ 700.0	$ 656.4
Continuing Operations [Member] | Securities Industry
Segment Reporting Information [Line Items]
Revenue Recognition, New Accounting Pronouncement, Timing	.439	.496	.461	.478
Revenue, Net	$ 502.7	$ 475.9	$ 992.0	$ 957.6
Decrease in segment profit due to non-cash inventory step-up amortization	$ 48.1	$ 51.8	$ 93.6	$ 102.5
Continuing Operations [Member] | Industrial Segment
Segment Reporting Information [Line Items]
Revenue Recognition, New Accounting Pronouncement, Timing	.103	.145	.106	.129
Revenue, Net	$ 573.1	$ 503.4	$ 1,077.3	$ 983.1
Decrease in segment profit due to non-cash inventory step-up amortization	$ 85.5	$ 94.7	$ 166.0	$ 179.8

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Summary of Total Assets by Segment (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 30, 2017
Segment Reporting Information [Line Items]
Document Period End Date	Jun. 30, 2018
Assets	$ (20,179.6)	$ (19,097.7)
Segment, Continuing Operations
Segment Reporting Information [Line Items]
Assets	(20,717.2)	(19,637.7)
Segment, Continuing Operations | Tools & Storage [Member]
Segment Reporting Information [Line Items]
Assets	(13,367.5)	(12,817.5)
Segment, Continuing Operations | Securities Industry
Segment Reporting Information [Line Items]
Assets	(3,453.0)	(3,406.9)
Segment, Continuing Operations | Industrial Segment
Segment Reporting Information [Line Items]
Assets	(3,896.7)	(3,413.3)
Segment, Continuing Operations | Corporate assets
Segment Reporting Information [Line Items]
Assets	$ (537.6)	$ (540.0)

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Business Segments Business Segment and Geographic Area - Geographic Area (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Segment Reporting Disclosure [Line Items]
Revenue, Net	$ 3,643.6	$ 3,286.7	$ 6,852.9	$ 6,143.0
CANADA
Segment Reporting Disclosure [Line Items]
Revenue, Net	165.5	143.1	309.7	275.9
Other Americas [Member]
Segment Reporting Disclosure [Line Items]
Revenue, Net	206.9	199.0	392.2	357.0
FRANCE
Segment Reporting Disclosure [Line Items]
Revenue, Net	160.4	153.0	323.2	302.1
Other Europe [Member]
Segment Reporting Disclosure [Line Items]
Revenue, Net	785.4	701.6	1,540.7	1,321.5
Asia [Member]
Segment Reporting Disclosure [Line Items]
Revenue, Net	320.5	282.5	613.3	539.1
UNITED STATES
Segment Reporting Disclosure [Line Items]
Revenue, Net	$ 2,004.9	$ 1,807.5	$ 3,673.8	$ 3,347.4

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Commitments and Contingencies - Additional Information (Detail) $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Apr. 01, 2017 USD ($)	Jun. 30, 2018 USD ($) sites	Dec. 28, 2013 USD ($)	Dec. 30, 2017 USD ($)
Loss Contingencies [Line Items]
Document Period End Date		Jun. 30, 2018
Superfund Sites | sites		26
Environmental remediation. Period construction of treatment facility to be maintained		30 years
Centredale Site [Member]
Loss Contingencies [Line Items]
Environmental remediation costs, reserve		$ 77.7
Environmental Remediation Expense	$ 17.1
Centredale Site [Member] | Minimum [Member]
Loss Contingencies [Line Items]
Environmental remediation costs deemed probable and reasonably estimable			$ 77.7
Centredale Site [Member] | Maximum [Member]
Loss Contingencies [Line Items]
Environmental remediation costs deemed probable and reasonably estimable			$ 145.8
Property, Plant and Equipment, Other Types
Loss Contingencies [Line Items]
Environmental remediation costs, reserve		0.0		$ 176.1
Reserve for environmental remediation costs, current		28.7
Reserve for environmental remediation costs, noncurrent		222.0
Accrual for Environmental Loss Contingencies, EPA Funded Amount		12.2
Accrual for Environmental Loss Contingencies, Obligation After EPA Funding		238.5
Property, Plant and Equipment, Other Types | Minimum [Member]
Loss Contingencies [Line Items]
Environmental remediation costs deemed probable and reasonably estimable		218.1
Property, Plant and Equipment, Other Types | Maximum [Member]
Loss Contingencies [Line Items]
Environmental remediation costs deemed probable and reasonably estimable		$ 351.6

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Financial Guarantees (Detail) $ in Millions	3 Months Ended
	Jun. 30, 2018 USD ($)
Guarantor Obligations [Line Items]
Guarantee Obligations Maximum Potential Payment	$ 245.7
Guarantee Liability Carrying Amount	7.3
Guarantees on the residual values of leased properties
Guarantor Obligations [Line Items]
Guarantee Obligations Maximum Potential Payment	100.4
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	4 years
Standby Letters of Credit [Member]
Guarantor Obligations [Line Items]
Guarantee Obligations Maximum Potential Payment	$ 74.3
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	$ 71.0
Guarantee Liability Carrying Amount	$ 7.3
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	Jun. 30, 2018 USD ($)
Guarantor Obligations [Line Items]
Guarantee Obligations Maximum Potential Payment	$ 245.7
Carrying amount of guarantees recorded in the consolidated balance sheet	7.3
Property Lease Guarantee [Member]
Guarantor Obligations [Line Items]
Guarantee Obligations Maximum Potential Payment	100.4
Capital Leased Assets, Noncurrent, Fair Value Disclosure	118.9
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	74.3
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	71.0
Carrying amount of guarantees recorded in the consolidated balance sheet	$ 7.3

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Changes in Carrying Amount of Product and Service Warranties (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Disclosure Changes In Carrying Amount Of Product And Service Warranties [Abstract]
Balance beginning of period	$ 108.5	$ 103.4
Warranties and guarantees issued	53.9	50.4
Warranty payments and currency	(58.3)	(47.1)
Balance end of period	$ 104.1	$ 106.7

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Divestitures - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Apr. 01, 2017	Jun. 30, 2018	Jul. 01, 2017	Dec. 30, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (Loss) on Disposition of Business	$ 0.8	$ 0.9		$ 0.8	$ (268.3)	$ 14.0
Income (Loss) from Individually Significant Component Disposed of or Held-for-sale, Excluding Discontinued Operations, before Income Tax			$ 0.6
Gain (Loss) on Disposition of Business			(268.3)
Document Period End Date				Jun. 30, 2018
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			26.0
Small Business in Security Segment [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds (payments) from sales of businesses, net of cash sold			$ 717.0

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Divestitures - Operating Results of Divested Businesses (Detail) $ in Millions	3 Months Ended
	Apr. 01, 2017 USD ($)
Discontinued Operations and Disposal Groups [Abstract]
Income (Loss) from Individually Significant Component Disposed of or Held-for-sale, Excluding Discontinued Operations, before Income Tax	$ 0.6