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LONG-TERM DEBT AND FINANCING ARRANGEMENTS | 12 Months Ended
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Dec. 28, 2024
Debt Disclosure [Abstract] |
LONG-TERM DEBT AND FINANCING ARRANGEMENTS | LONG-TERM DEBT AND FINANCING ARRANGEMENTS
| December 28, 2024 |  | December 30, 2023
(Millions of Dollars) | Interest Rate | Notional Value | Carrying Value 1 |  | Carrying Value 1
Notes payable due 2025 | 2.30% | $ | 500.0 |  | $ | 499.9 |  |  | $ | 498.7 |
Notes payable due 2026 | 3.40% | 500.0 |  | 499.4 |  |  | 498.9 |
Notes payable due 2026 | 6.27% | 350.0 |  | 349.3 |  |  | 348.6 |
Notes payable due 2026 | 3.42% | 25.0 |  | 25.7 |  |  | 26.0 |
Notes payable due 2026 | 1.84% | 26.1 |  | 26.7 |  |  | 28.5 |
Notes payable due 2028 | 6.00% | 400.0 |  | 398.0 |  |  | 397.5 |
Notes payable due 2028 | 7.05% | 150.0 |  | 157.5 |  |  | 159.7 |
Notes payable due 2028 | 4.25% | 500.0 |  | 498.3 |  |  | 497.7 |
Notes payable due 2028 | 3.52% | 50.0 |  | 52.4 |  |  | 53.1 |
Notes payable due 2030 | 2.30% | 750.0 |  | 746.2 |  |  | 745.3 |
Notes payable due 2032 | 3.00% | 500.0 |  | 496.6 |  |  | 496.3 |
Notes payable due 2040 | 5.20% | 400.0 |  | 374.5 |  |  | 372.9 |
Notes payable due 2048 | 4.85% | 500.0 |  | 495.2 |  |  | 495.0 |
Notes payable due 2050 | 2.75% | 750.0 |  | 741.0 |  |  | 740.7 |
Notes payable due 2060 (junior subordinated) | 4.00% | 750.0 |  | 741.6 |  |  | 741.4 |
Other, payable in varying amounts 2025 through 2026 | 4.23%-4.31% | 0.7 |  | 0.7 |  |  | 1.8 |
Total long-term debt, including current maturities |  | $ | 6,151.8 |  | $ | 6,103.0 |  |  | $ | 6,102.1 |
Less: Current maturities of long-term debt |  |  | (500.4) |  |  | (1.1) |
Long-term debt |  |  | $ | 5,602.6 |  |  | $ | 6,101.0 |
1 Carrying values are net of unamortized discounts, deferred issuance costs, unamortized terminated swaps and purchase accounting fair value adjustments. As of December 28, 2024, the total aggregate annual principal maturities of long-term debt for the next five years and thereafter are as follows: $500.4 million in 2025, $901.4 million in 2026, $1,100.0 million in 2028, and $3,650.0 million beyond 2029. These maturities represent the principal amounts to be paid and accordingly exclude the remaining $7.5 million of unamortized fair value adjustments made in acquisition accounting, which increased the Black & Decker note payable due 2028 and MTD notes payable due 2026 and 2028, as well as $4.8 million of unamortized discounts, a net loss of $19.3 million pertaining to unamortized termination gains and losses on interest rate swaps (as described in Note H, Financial Instruments), and $32.2 million of unamortized deferred financing fees. In March 2023, the Company issued $350.0 million of senior unsecured term notes maturing March 6, 2026 ("2026 Term Notes") and $400.0 million of senior unsecured term notes maturing March 6, 2028 (“2028 Term Notes”). The 2026 Term Notes accrue interest at a fixed rate of 6.272% per annum and the 2028 Term Notes at a fixed rate of 6.0% per annum, with interest payable semi-annually in arrears, and both notes rank equally in right of payment with all of the Company's existing and future unsecured, unsubordinated debt. The Company received total net proceeds from this offering of $745.3 million, net of $4.7 million of underwriting expenses and other fees associated with the transaction. The Company used the net proceeds from the offering for general corporate purposes, including repayment of indebtedness under the commercial paper program. Commercial Paper and Credit Facilities The Company has a $3.5 billion commercial paper program which includes Euro denominated borrowings in addition to U.S. Dollars. As of December 28, 2024, the Company had no commercial paper borrowings outstanding. As of December 30, 2023, the Company had commercial paper borrowings outstanding of $1.1 billion, of which $399.7 million in Euro denominated commercial paper was designated as a net investment hedge. Refer to Note H, Financial Instruments, for further discussion. In June 2024, the Company amended and restated its existing five-year $2.5 billion committed credit facility with the concurrent execution of a new five-year $2.25 billion committed credit facility (the “5-Year Credit Agreement”). Borrowings under the 5-Year Credit Agreement may be made in U.S. Dollars, Euros or Pounds Sterling. A sub-limit of an amount equal to the Euro equivalent of $800.0 million is designated for swing line advances. Borrowings bear interest at a floating rate plus an applicable margin dependent upon the denomination of the borrowing and specific terms of the 5-Year Credit Agreement. The Company must repay all advances under the 5-Year Credit Agreement by the earlier of June 28, 2029 or upon termination. The 5-Year Credit Agreement is designated to be a liquidity back-stop for the Company's $3.5 billion U.S. Dollar and Euro commercial paper program. As of December 28, 2024 and December 30, 2023, the Company had not drawn on its five-year committed credit facility. In June 2024, the Company terminated its 364-Day $1.5 billion committed credit facility ("the 2023 Syndicated 364-Day Credit Agreement") dated September 2023. There were no outstanding borrowings under the 2023 Syndicated 364-Day Credit Agreement upon termination and as of December 30, 2023. Contemporaneously, the Company entered into a new $1.25 billion syndicated 364-Day Credit Agreement (the "2024 Syndicated 364-Day Credit Agreement") which is a revolving credit loan. The borrowings under the 2024 Syndicated 364-Day Credit Agreement may be made in U.S. Dollars or Euros and bear interest at a floating rate plus an applicable margin dependent upon the denomination of the borrowing and pursuant to the terms of the 2024 Syndicated 364-Day Credit Agreement. The Company must repay all advances under the 2024 Syndicated 364-Day Credit Agreement by the earlier of June 27, 2025 or upon termination. The Company may, however, convert all advances outstanding upon termination into a term loan that shall be repaid in full no later than the first anniversary of the termination date provided that the Company, among other things, pays a fee to the administrative agent for the account of each lender. The 2024 Syndicated 364-Day Credit Agreement serves as part of the liquidity back-stop for the Company’s $3.5 billion U.S. Dollar and Euro commercial paper program. As of December 28, 2024, the Company had not drawn on its 2024 Syndicated 364-Day Credit Agreement. In addition, the Company has other short-term lines of credit that are primarily uncommitted, with numerous banks, aggregating to $296.2 million, of which $205.7 million was available at December 28, 2024 and $90.5 million of the short-term credit lines were utilized primarily pertaining to outstanding letters of credit for which there are no required or reported debt balances. Short-term arrangements are reviewed annually for renewal. At December 28, 2024, the aggregate amount of short-term and long-term committed and uncommitted lines of credit was approximately $3.8 billion. The weighted-average interest rates on U.S. dollar denominated short-term borrowings for the years ended December 28, 2024 and December 30, 2023 were 5.6% and 5.1%, respectively. The weighted-average interest rates on Euro denominated short-term borrowings for the years ended December 28, 2024 and December 30, 2023 were 3.9% and 3.5%, respectively. Interest paid relating to the Company's indebtedness, including long-term debt and commercial paper borrowings, during 2024, 2023 and 2022 amounted to $479.9 million, $531.5 million and $320.8 million, respectively. The 5-Year Credit Agreement and the 2024 Syndicated 364-Day Credit Agreement, as described above, contain customary affirmative and negative covenants, including but not limited to, maintenance of an interest coverage ratio. The interest coverage ratio tested for covenant compliance compares adjusted Earnings Before Interest, Taxes, Depreciation and Amortization to adjusted net Interest Expense ("Adjusted EBITDA"/"Adjusted Net Interest Expense"). The Company must maintain, for each period of four consecutive fiscal quarters of the Company, an interest coverage ratio of not less than 3.50 to 1.00, provided that the Company is only required to maintain an interest coverage ratio of not less than (i) 1.50 to 1.00 for any four fiscal quarter period ending on or before the end of the Company’s second fiscal quarter of 2024, and (ii) 2.50 to 1.00 for any four fiscal quarter period ending after the Company’s second fiscal quarter of 2024 through and including the Company’s second fiscal quarter of 2025. For purposes of calculating the Company’s compliance with the interest coverage ratio, as defined in each credit agreement, the Company is permitted to increase EBITDA to allow for additional adjustment addbacks incurred prior to the end of the Company’s second fiscal quarter of 2025, provided that (A) the sum of the applicable adjustment addbacks incurred through and including the Company’s second fiscal quarter of 2024 may not exceed $500 million in the aggregate, and (B) the sum of the applicable adjustment addbacks incurred from the Company’s third fiscal quarter of 2024 through and including the Company’s second fiscal quarter of 2025 may not exceed $250 million in the aggregate; provided, further, that the sum of the applicable adjustment addbacks for any four consecutive fiscal quarter period may not exceed $500 million in the aggregate.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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