XML 37 R25.htm IDEA: XBRL DOCUMENT
v3.21.2

BUSINESS SEGMENTS AND GEOGRAPHIC AREAS | 9 Months Ended
--- | ---
Oct. 02, 2021
Segment Reporting [Abstract] |
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS | 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 Group ("PTG"), Hand Tools, Accessories & Storage ("HTAS"), and Outdoor Products Group ("OPG") businesses. The PTG 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, 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 OPG business primarily sells corded and cordless electric lawn and garden products, including hedge trimmers, string trimmers, lawn mowers, pressure washers and related accessories to professionals and consumers under the BLACK+DECKER®, CRAFTSMAN® and DEWALT® brand names. The Industrial segment is comprised of the Engineered Fastening and Infrastructure businesses. The Engineered Fastening business primarily sells highly engineered components such as fasteners, fittings and various engineered products, which are designed for specific application across multiple verticals. The product lines include externally threaded fasteners, 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, high-strength structural fasteners, axel swage, latches, heat shields, pins, and couplings. The Infrastructure business consists of the Attachment Tools and Oil & Gas product lines. Attachment Tools sells hydraulic tools and high quality, performance-driven heavy equipment attachment tools for off-highway applications. Oil & Gas 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 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 credit losses (aside from corporate overhead expense), and segment profit as a percentage of net sales to assess the profitability of each segment. Corporate overhead is comprised of world headquarters facility expense, cost for the executive management team and expenses 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. Transactions between segments are not material. Segment assets primarily include cash, accounts receivable, inventory, other current assets, property, plant and equipment, right-of-use lease assets and intangible 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.
| Third Quarter |  | Year-to-Date
(Millions of Dollars) | 2021 |  | 2020 |  | 2021 |  | 2020
NET SALES |  |  |  |  |  |  |
Tools & Storage | $ | 3,185.9 |  |  | $ | 2,804.1 |  |  | $ | 9,445.3 |  |  | $ | 7,072.1 |
Industrial | 593.5 |  |  | 586.6 |  |  | 1,853.4 |  |  | 1,694.8 |
Security | 483.8 |  |  | 459.5 |  |  | 1,462.5 |  |  | 1,360.1 |
Total | $ | 4,263.2 |  |  | $ | 3,850.2 |  |  | $ | 12,761.2 |  |  | $ | 10,127.0 |
SEGMENT PROFIT |  |  |  |  |  |  |
Tools & Storage | $ | 485.8 |  |  | $ | 597.1 |  |  | $ | 1,772.2 |  |  | $ | 1,177.0 |
Industrial | 43.8 |  |  | 63.8 |  |  | 207.4 |  |  | 136.7 |
Security | 39.6 |  |  | 39.3 |  |  | 111.1 |  |  | 69.4 |
Segment profit | 569.2 |  |  | 700.2 |  |  | 2,090.7 |  |  | 1,383.1 |
Corporate overhead | (76.5) |  |  | (62.8) |  |  | (244.6) |  |  | (190.4) |
Other, net | (39.5) |  |  | (74.3) |  |  | (152.3) |  |  | (236.1) |
Loss on sales of businesses | — |  |  | — |  |  | (3.6) |  |  | — |
Restructuring charges | (5.8) |  |  | (42.8) |  |  | (22.1) |  |  | (74.6) |
Interest expense | (45.8) |  |  | (52.7) |  |  | (139.8) |  |  | (169.7) |
Interest income | 2.3 |  |  | 2.0 |  |  | 7.9 |  |  | 14.6 |
Earnings before income taxes and equity interest | $ | 403.9 |  |  | $ | 469.6 |  |  | $ | 1,536.2 |  |  | $ | 726.9 |
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 nine months ended October 2, 2021 and September 26, 2020, 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 nine months ended October 2, 2021 and September 26, 2020:
| Third Quarter |  | Year-to-Date
| 2021 |  | 2020 |  | 2021 |  | 2020
Industrial | 6.4 | % |  | 8.0 | % |  | 5.4 | % |  | 10.0 | %
Security | 52.7 | % |  | 49.7 | % |  | 51.4 | % |  | 49.1 | %
The decrease in the percent of Industrial segment revenue recognized over time relates to volume declines within Oil & Gas, which is the primary product line with revenue recognized over time within the Industrial segment. The following table is a further disaggregation of the Industrial segment revenue for the three and nine months ended October 2, 2021 and September 26, 2020:
| Third Quarter |  | Year-to-Date
(Millions of Dollars) | 2021 |  | 2020 |  | 2021 |  | 2020
Engineered Fastening | $ | 435.7 |  |  | $ | 436.0 |  |  | $ | 1,389.0 |  |  | $ | 1,212.4 |
Infrastructure | 157.8 |  |  | 150.6 |  |  | 464.4 |  |  | 482.4 |
Industrial | $ | 593.5 |  |  | $ | 586.6 |  |  | $ | 1,853.4 |  |  | $ | 1,694.8 |
The following table is a summary of total assets by segment as of October 2, 2021 and January 2, 2021:
(Millions of Dollars) | October 2, 2021 |  | January 2, 2021
Tools & Storage | $ | 15,676.0 |  |  | $ | 14,294.9 |
Industrial | 5,678.3 |  |  | 5,621.4 |
Security | 3,571.0 |  |  | 3,493.5 |
| 24,925.3 |  |  | 23,409.8 |
Corporate | (598.7) |  |  | 156.5 |
Consolidated | $ | 24,326.6 |  |  | $ | 23,566.3 |
Corporate assets primarily consist of cash, equity method investment, deferred taxes, property, plant and equipment, and right-of-use lease assets. Based on the nature of the Company's cash pooling arrangements, at times the corporate-related cash accounts will be in a net liability position. GEOGRAPHIC AREAS The following table is a summary of net sales by geographic area for the three and nine months ended October 2, 2021 and September 26, 2020:
| Third Quarter |  | Year-to-Date
(Millions of Dollars) | 2021 |  | 2020 |  | 2021 |  | 2020
United States | $ | 2,530.6 |  |  | $ | 2,336.2 |  |  | $ | 7,381.1 |  |  | $ | 6,182.2 |
Canada | 208.9 |  |  | 185.1 |  |  | 631.7 |  |  | 470.8 |
Other Americas | 227.1 |  |  | 168.6 |  |  | 638.4 |  |  | 388.8 |
France | 159.7 |  |  | 148.9 |  |  | 534.9 |  |  | 389.5 |
Other Europe | 814.8 |  |  | 722.3 |  |  | 2,591.1 |  |  | 1,953.5 |
Asia | 322.1 |  |  | 289.1 |  |  | 984.0 |  |  | 742.2 |
Consolidated | $ | 4,263.2 |  |  | $ | 3,850.2 |  |  | $ | 12,761.2 |  |  | $ | 10,127.0 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration