EX-99.2 3 exhibit992financialsq32022.htm EX-99.2 Document
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, Millions of Dollars Except Per Share Amounts)
 
 THIRD QUARTERYEAR-TO-DATE
 2022202120222021
NET SALES$4,119.6 $3,779.7 $12,960.6 $11,299.4 
COSTS AND EXPENSES
Cost of sales3,101.5 2,564.1 9,430.0 7,334.2 
Gross profit1,018.1 1,215.6 3,530.6 3,965.2 
% of Net Sales24.7 %32.2 %27.2 %35.1 %
Selling, general and administrative799.8 773.5 2,612.8 2,259.7 
% of Net Sales19.4 %20.5 %20.2 %20.0 %
Operating profit218.3 442.1 917.8 1,705.5 
% of Net sales5.3 %11.7 %7.1 %15.1 %
Other - net69.1 28.9 210.2 119.4 
Loss on sales of businesses8.6 — 8.4 3.6 
Asset impairment charge— — 168.4 — 
Restructuring charges68.6 0.6 140.8 12.8 
Income from operations72.0 412.6 390.0 1,569.7 
Interest - net76.3 43.4 199.9 131.8 
(LOSS) EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY INTEREST (4.3)369.2 190.1 1,437.9 
Income taxes on continuing operations(40.9)(0.5)(80.8)182.3 
NET EARNINGS FROM CONTINUING OPERATIONS BEFORE EQUITY INTEREST 36.6 369.7 270.9 1,255.6 
Share of net earnings of equity method investment— 9.8 — 16.0 
NET EARNINGS FROM CONTINUING OPERATIONS36.6 379.5 270.9 1,271.6 
Less: Net (losses) earnings attributable to non-controlling interests— (0.1)0.2 (1.7)
NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO STANLEY BLACK & DECKER, INC.$36.6 $379.6 $270.7 $1,273.3 
Less: Preferred stock dividends and beneficial conversion feature— — — 14.2 
NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREOWNERS$36.6 $379.6 $270.7 $1,259.1 
Add: Contract adjustment payments accretion0.3 0.4 1.0 0.9 
NET EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREOWNERS - DILUTED$36.9 $380.0 $271.7 $1,260.0 
Earnings from discontinued operations before income taxes (including pre-tax gain on Security sale of $1,220.0 million)1,204.9 34.7 1,233.5 98.2 
Income taxes on discontinued operations (including income taxes for gain on Security sale of $390.7 million)396.9 0.1 396.7 10.4 
NET EARNINGS FROM DISCONTINUED OPERATIONS$808.0 $34.6 $836.8 $87.8 
NET EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS - DILUTED$844.9 $414.6 $1,108.5 $1,347.8 
NET EARNINGS ATTRIBUTABLE TO STANLEY BLACK & DECKER, INC.$844.6 $414.2 $1,107.5 $1,361.1 
BASIC EARNINGS PER SHARE OF COMMON STOCK
Continuing operations$0.25 $2.38 $1.82 $7.94 
Discontinued operations$5.60 $0.22 $5.64 $0.55 
Total basic earnings per share of common stock$5.85 $2.60 $7.46 $8.50 
DILUTED EARNINGS PER SHARE OF COMMON STOCK
Continuing operations$0.24 $2.30 $1.72 $7.64 
Discontinued operations$5.26 $0.21 $5.30 $0.53 
Total diluted earnings per share of common stock$5.50 $2.51 $7.02 $8.17 
DIVIDENDS PER SHARE OF COMMON STOCK$0.80 $0.79 $2.38 $2.19 
WEIGHTED-AVERAGE SHARES OUTSTANDING (in thousands)
Basic144,379 159,444 148,384 158,494 
Diluted153,600 165,336 157,966 164,900 
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Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, Millions of Dollars)
 
October 1, 2022January 1, 2022
ASSETS
Cash and cash equivalents$408.7 $142.1 
Accounts and notes receivable, net1,503.2 1,481.7 
Inventories, net6,347.2 5,419.9 
Current assets held for sale— 869.6 
Other current assets545.5 613.1 
Total current assets8,804.6 8,526.4 
Property, plant and equipment, net2,305.6 2,336.8 
Goodwill and other intangibles, net12,860.9 13,285.7 
Long-term assets held for sale— 2,635.8 
Other assets1,552.8 1,395.3 
Total assets$25,523.9 $28,180.0 
LIABILITIES AND SHAREOWNERS’ EQUITY
Short-term borrowings$2,569.2 $2,241.1 
Current maturities of long-term debt1.2 1.3 
Accounts payable2,492.8 3,423.6 
Accrued expenses2,543.8 2,641.0 
Current liabilities held for sale— 460.4 
Total current liabilities7,607.0 8,767.4 
Long-term debt5,350.5 4,353.6 
Long-term liabilities held for sale— 137.4 
Other long-term liabilities3,017.7 3,329.2 
Stanley Black & Decker, Inc. shareowners’ equity9,546.6 11,590.5 
Non-controlling interests’ equity2.1 1.9 
Total liabilities and shareowners' equity$25,523.9 $28,180.0 

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Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
SUMMARY OF CASH FLOW ACTIVITY
(Unaudited, Millions of Dollars)
 
THIRD QUARTERYEAR-TO-DATE
 2022202120222021
OPERATING ACTIVITIES
Net earnings from continuing operations$36.6 $379.5 $270.9 $1,271.6 
Net earnings from discontinued operations808.0 34.6 836.8 87.8 
Depreciation and amortization138.0 144.2 425.1 430.6 
Loss on sales of businesses8.6 — 8.4 3.6 
Gain on sale of discontinued operations(1,220.0)— (1,220.0)— 
Asset impairment charge— — 168.4 — 
Share of net earnings of equity method investment— (9.8)— (16.0)
Changes in working capital1
(393.3)(456.7)(2,297.4)(1,373.5)
Other196.5 (87.2)(302.8)(112.9)
Net cash (used in) provided by operating activities(425.6)4.6 (2,110.6)291.2 
INVESTING AND FINANCING ACTIVITIES
Capital and software expenditures(114.4)(129.1)(399.9)(322.5)
Proceeds from sales of assets24.7 1.7 39.9 7.1 
Proceeds from sales of businesses, net of cash sold4,146.9 — 4,147.1 (1.9)
Business acquisitions, net of cash acquired(26.5)(9.3)(72.1)(10.8)
Purchase of long-term investments(2.9)(3.5)(12.2)(14.5)
Acquisition of assets(14.4)(0.5)(15.2)(1.4)
Net investment hedge settlements1.7 (1.3)10.6 (53.9)
Proceeds from debt issuances, net of fees— — 992.6 — 
Stock purchase contract fees(9.9)(9.9)(29.5)(29.5)
Net short-term (repayments) borrowings(3,263.4)149.6 328.0 150.7 
Proceeds from issuances of common stock3.4 7.7 23.0 108.1 
Purchases of common stock for treasury(4.6)(2.8)(2,318.7)(20.1)
Redemption of preferred stock for treasury— — — (750.0)
Craftsman contingent consideration(11.4)(7.6)(32.5)(21.5)
Termination of interest rate swaps— — 22.7 — 
Cash dividends on common stock(115.5)(126.0)(345.8)(347.7)
Cash dividends on preferred stock— — — (18.9)
Effect of exchange rate changes on cash(78.2)(15.5)(95.8)(45.9)
Other(3.4)(4.2)(11.8)(13.4)
Net cash provided by (used in) investing and financing activities532.1 (150.7)2,230.4 (1,386.1)
Increase (decrease) in cash, cash equivalents and restricted cash106.5 (146.1)119.8 (1,094.9)
Cash, cash equivalents and restricted cash, beginning of period308.1 449.5 294.8 1,398.3 
Cash, cash equivalents and restricted cash, end of period$414.6 $303.4 $414.6 $303.4 
Free Cash Flow Computation2
Net cash (used in) provided by operating activities$(425.6)$4.6 $(2,110.6)$291.2 
Less: capital and software expenditures(114.4)(129.1)(399.9)(322.5)
Free cash flow (before dividends)$(540.0)$(124.5)$(2,510.5)$(31.3)
Reconciliation of Cash, Cash Equivalents and Restricted Cash
October 1, 2022January 1, 2022
Cash and cash equivalents$408.7 $142.1 
Restricted cash included in Other current assets5.9 7.6 
Cash and cash equivalents included in Current assets held for sale— 145.1 
Cash, cash equivalents and restricted cash$414.6 $294.8 
1
Working capital is comprised of accounts receivable, inventory, accounts payable and deferred revenue.
2
Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners, and is useful information for investors. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common and preferred stock and business acquisitions, among other items.
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Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(Unaudited, Millions of Dollars)
 
 THIRD QUARTERYEAR-TO-DATE
 2022202120222021
NET SALES
Tools & Outdoor$3,494.7 $3,185.9 $11,040.8 $9,445.3 
Industrial624.8 593.5 1,919.5 1,853.4 
Segment Net Sales4,119.5 3,779.4 12,960.3 11,298.7 
Corporate Overhead 0.1 0.3 0.3 0.7 
Total$4,119.6 $3,779.7 $12,960.6 $11,299.4 
SEGMENT PROFIT
Tools & Outdoor$228.4 $478.5 $968.5 $1,750.2 
Industrial68.4 42.6 168.0 202.9 
Segment Profit296.8 521.1 1,136.5 1,953.1 
Corporate Overhead (78.5)(79.0)(218.7)(247.6)
Total$218.3 $442.1 $917.8 $1,705.5 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor6.5 %15.0 %8.8 %18.5 %
Industrial10.9 %7.2 %8.8 %10.9 %
Segment Profit7.2 %13.8 %8.8 %17.3 %

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Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)
 
THIRD QUARTER 2022
 GAAP
Acquisition-
Related Charges & Other1
Non-GAAP3
Gross profit$1,018.1 $(2.5)$1,015.6 
% of Net Sales24.7 %24.7 %
Selling, general and administrative799.8 (41.3)758.5 
% of Net Sales19.4 %18.4 %
Operating profit218.3 38.8 257.1 
% of Net Sales5.3 %6.2 %
(Loss) earnings from continuing operations before income taxes and equity interest(4.3)118.7 114.4 
Income taxes on continuing operations(40.9)39.4 (1.5)
Net earnings from continuing operations attributable to common shareowners - Diluted36.9 79.3 116.2 
Diluted earnings per share of common stock - Continuing operations$0.24 $0.52 $0.76 
1
Acquisition-related charges and other relate primarily to restructuring and integration-related costs.
THIRD QUARTER 2021
 GAAP
Acquisition-
Related Charges & Other2
Non-GAAP3
Gross profit$1,215.6 $5.1 $1,220.7 
% of Net Sales32.2 %32.3 %
Selling, general and administrative773.5 (18.7)754.8 
% of Net Sales20.5 %20.0 %
Operating profit442.1 23.8 465.9 
% of Net Sales11.7 %12.3 %
Earnings from continuing operations before income taxes and equity interest369.2 32.5 401.7 
Income taxes on continuing operations(0.5)6.8 6.3 
Share of net earnings of equity method investment9.8 — 9.8 
Net earnings from continuing operations attributable to common shareowners - Diluted380.0 25.7 405.7 
Diluted earnings per share of common stock - Continuing operations$2.30 $0.15 $2.45 
2
Acquisition-related charges and other relate primarily to functional transformation initiatives, facility-related costs and deal costs.
3
The non-GAAP 2022 and 2021 information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results, business trends and outlook measures aside from the material impact of acquisition-related and other charges and ensures appropriate comparability to operating results of prior periods.
 


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Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)
 
YEAR-TO-DATE 2022
 GAAP
Acquisition-
Related Charges & Other1
Non-GAAP3
Gross profit$3,530.6 $102.9 $3,633.5 
% of Net Sales27.2 %28.0 %
Selling, general and administrative2,612.8 (153.1)2,459.7 
% of Net Sales20.2 %19.0 %
Operating profit917.8 256.0 1,173.8 
% of Net Sales7.1 %9.1 %
Earnings from continuing operations before income taxes and equity interest190.1 588.2 778.3 
Income taxes on continuing operations(80.8)121.7 40.9 
Net earnings from continuing operations attributable to common shareowners - Diluted271.7 466.5 738.2 
Diluted earnings per share of common stock - Continuing operations$1.72 $2.95 $4.67 
1
Acquisition-related charges and other relate primarily to a non-cash asset impairment charge related to the Oil & Gas business, restructuring, integration-related costs, non-cash inventory step-up charges, a voluntary retirement program and the Russia business closure.
YEAR-TO-DATE 2021
 GAAP
Acquisition-
Related Charges & Other2
Non-GAAP3
Gross profit$3,965.2 $10.8 $3,976.0 
% of Net Sales35.1 %35.2 %
Selling, general and administrative2,259.7 (52.1)2,207.6 
% of Net Sales20.0 %19.5 %
Operating profit1,705.5 62.9 1,768.4 
% of Net Sales15.1 %15.7 %
Earnings from continuing operations before income taxes and equity interest1,437.9 89.5 1,527.4 
Income taxes on continuing operations182.3 21.2 203.5 
Share of net earnings of equity method investment16.0 11.2 27.2 
Net earnings from continuing operations attributable to common shareowners - Diluted1,260.0 79.5 1,339.5 
Diluted earnings per share of common stock - Continuing operations$7.64 $0.48 $8.12 
2
Acquisition-related charges and other relate primarily to functional transformation initiatives, restructuring, deal costs and facility-related costs.
3
The non-GAAP 2022 and 2021 information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results, business trends and outlook measures aside from the material impact of acquisition-related and other charges and ensures appropriate comparability to operating results of prior periods.
 

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Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)
 
THIRD QUARTER 2022
 GAAP
Acquisition-
Related Charges and Other1
Non-GAAP3
SEGMENT PROFIT
Tools & Outdoor$228.4 $10.6 $239.0 
Industrial68.4 1.0 69.4 
Segment Profit296.8 11.6 308.4 
Corporate Overhead(78.5)27.2 (51.3)
Total$218.3 $38.8 $257.1 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor6.5 %6.8 %
Industrial10.9 %11.1 %
Segment Profit7.2 %7.5 %
1
Acquisition-related charges and other relate primarily to integration-related costs.
THIRD QUARTER 2021
 GAAP
Acquisition-
Related Charges and Other2
Non-GAAP3
SEGMENT PROFIT
Tools & Outdoor$478.5 $14.2 $492.7 
Industrial42.6 3.2 45.8 
Segment Profit521.1 17.4 538.5 
Corporate Overhead (79.0)6.4 (72.6)
Total$442.1 $23.8 $465.9 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor15.0 %15.5 %
Industrial7.2 %7.7 %
Segment Profit13.8 %14.2 %
2
Acquisition-related charges and other relate primarily to functional transformation initiatives and facility-related costs.
3
The non-GAAP 2022 and 2021 business segment information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results, business trends and outlook measures aside from the material impact of acquisition-related and other charges and ensures appropriate comparability to operating results of prior periods.

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Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)
 
YEAR-TO-DATE 2022
 GAAP
Acquisition-
Related Charges and Other1
Non-GAAP3
SEGMENT PROFIT
Tools & Outdoor$968.5 $205.6 $1,174.1 
Industrial168.0 6.4 174.4 
Segment Profit1,136.5 212.0 1,348.5 
Corporate Overhead(218.7)44.0 (174.7)
Total$917.8 $256.0 $1,173.8 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor8.8 %10.6 %
Industrial8.8 %9.1 %
Segment Profit8.8 %10.4 %
1
Acquisition-related charges and other relate primarily to integration-related costs, non-cash inventory step-up charges, a voluntary retirement program and the Russia business closure.
YEAR-TO-DATE 2021
 GAAP
Acquisition-
Related Charges and Other2
Non-GAAP3
SEGMENT PROFIT
Tools & Outdoor$1,750.2 $27.6 $1,777.8 
Industrial202.9 9.8 212.7 
Segment Profit1,953.1 37.4 1,990.5 
Corporate Overhead(247.6)25.5 (222.1)
Total$1,705.5 $62.9 $1,768.4 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor18.5 %18.8 %
Security10.9 %11.5 %
Segment Profit17.3 %17.6 %
2
Acquisition-related charges and other relate primarily to functional transformation initiatives and facility-related costs.
3
The non-GAAP 2022 and 2021 business segment information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results, business trends and outlook measures aside from the material impact of acquisition-related and other charges and ensures appropriate comparability to operating results of prior periods.
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