Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 30, 2024 | Apr. 25, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-05224 | |
Entity Registrant Name | STANLEY BLACK & DECKER, INC. | |
Entity Incorporation, State or Country Code | CT | |
Entity Tax Identification Number | 06-0548860 | |
Entity Address, Address Line One | 1000 STANLEY DRIVE | |
Entity Address, City or Town | NEW BRITAIN | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06053 | |
City Area Code | 860 | |
Local Phone Number | 225-5111 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | SWK | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 153,878,739 | |
Entity Central Index Key | 0000093556 | |
Current Fiscal Year End Date | --12-28 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Income Statement [Abstract] | ||
Net Sales | $ 3,869.5 | $ 3,931.8 |
Costs and Expenses | ||
Cost of sales | 2,761 | 3,096.3 |
Selling, general and administrative | 852 | 823 |
Provision for credit losses | (0.2) | 2.1 |
Other, net | 80 | 63.7 |
Loss on sales of businesses | 0 | 7.6 |
Asset impairment charge | 25.5 | 0 |
Restructuring charges | 15 | 12.1 |
Interest income | (43.6) | (39.8) |
Interest expense | 131.5 | 130.9 |
Costs and Expenses | 3,821.2 | 4,095.9 |
Earnings (loss) before income taxes | 48.3 | (164.1) |
Income taxes | 28.8 | 23.7 |
Net earnings (loss) | 19.5 | (187.8) |
Total Comprehensive Loss | $ (96.7) | $ (135) |
Earnings (loss) per share of common stock: | ||
Basic (in dollars per share) | $ 0.13 | $ (1.26) |
Diluted (in dollars per share) | $ 0.13 | $ (1.26) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Current Assets | ||
Cash and cash equivalents | $ 476.6 | $ 449.4 |
Accounts and notes receivable, net | 1,708.9 | 1,302 |
Inventories, net | 4,693.3 | 4,738.6 |
Current assets held for sale | 136.3 | 140.8 |
Prepaid expenses | 385.2 | 360.5 |
Other current assets | 20.5 | 26 |
Total Current Assets | 7,420.8 | 7,017.3 |
Property, plant and equipment, net | 2,115.9 | 2,169.9 |
Goodwill | 7,954.7 | 7,995.9 |
Intangibles, net | 3,903.1 | 3,949.6 |
Long-term assets held for sale | 691.2 | 716.8 |
Other assets | 1,768.2 | 1,814.3 |
Total Assets | 23,853.9 | 23,663.8 |
Current Liabilities | ||
Short-term borrowings | 1,740.4 | 1,074.8 |
Current maturities of long-term debt | 500 | 1.1 |
Accounts payable | 2,337.5 | 2,298.9 |
Accrued expenses | 2,206.5 | 2,464.3 |
Current liabilities held for sale | 45 | 44.1 |
Total Current Liabilities | 6,829.4 | 5,883.2 |
Long-term debt | 5,602.1 | 6,101 |
Deferred taxes | 293.5 | 333.2 |
Post-retirement benefits | 368.1 | 378.4 |
Long-term liabilities held for sale | 83.4 | 84.8 |
Other liabilities | 1,801 | 1,827.1 |
Commitments and Contingencies (Notes O and P) | ||
Shareowners’ Equity | ||
Common stock, par value $2.50 per share: Authorized 300,000,000 shares in 2024 and 2023 Issued 176,902,738 shares in 2024 and 2023 | 442.3 | 442.3 |
Retained earnings | 8,437.9 | 8,540.2 |
Additional paid in capital | 5,065.3 | 5,059 |
Accumulated other comprehensive loss | (2,185.3) | (2,069.1) |
Stockholders' equity subtotal | 11,760.2 | 11,972.4 |
Less: cost of common stock in treasury (23,050,447 shares in 2024 and 23,282,650 shares in 2023) | (2,883.8) | (2,916.3) |
Total Shareowners’ Equity | 8,876.4 | 9,056.1 |
Total Liabilities and Shareowners’ Equity | $ 23,853.9 | $ 23,663.8 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 30, 2024 | Dec. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 2.50 | $ 2.50 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 176,902,738 | 176,902,738 |
Treasury stock (in shares) | 23,050,447 | 23,282,650 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 30, 2024 | Dec. 30, 2023 | Apr. 01, 2023 | |
OPERATING ACTIVITIES | |||
Net earnings (loss) | $ 19.5 | $ (187.8) | |
Adjustments to reconcile net earnings (loss) to cash used in operating activities: | |||
Depreciation and amortization of property, plant and equipment | 99.1 | 112.9 | |
Amortization of intangibles | 41.1 | 48.3 | |
Loss on sales of businesses | 0 | 7.6 | |
Asset impairment charge | 25.5 | 0 | |
Stock-based compensation expense | 41.3 | 34.7 | |
Changes in working capital | (359.8) | (181.2) | |
Changes in other assets and liabilities | (297.7) | (120.8) | |
Cash used in operating activities | (431) | (286.3) | |
INVESTING ACTIVITIES | |||
Capital and software expenditures | (65.7) | (68.2) | |
Proceeds from sales of assets | 3.5 | 2.9 | |
Other | (1) | 4.1 | |
Cash used in investing activities | (63.2) | (61.2) | |
FINANCING ACTIVITIES | |||
Proceeds from debt issuances, net of fees | 0 | 747.2 | |
Net short-term commercial paper borrowings (repayments) | 674.9 | (285.9) | |
Proceeds from issuances of common stock | 3.8 | 3.1 | |
Purchases of common stock for treasury | (6.3) | (4.8) | |
Craftsman contingent consideration payments | 0 | (9.1) | |
Cash dividends on common stock | (121.8) | (119.8) | |
Other | (2) | (6.5) | |
Cash provided by financing activities | 548.6 | 324.2 | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (27.6) | 9.1 | |
Change in cash, cash equivalents and restricted cash | 26.8 | (14.2) | |
Cash, cash equivalents and restricted cash, beginning of period | 454.6 | 404.9 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | 481.4 | $ 454.6 | 390.7 |
Supplemental Cash Flow Elements [Abstract] | |||
Cash and cash equivalents | 476.6 | 449.4 | |
Restricted cash included in Other current assets | 1.5 | 4.6 | |
Cash and cash equivalents included in Current assets held for sale | 3.3 | 0.6 | |
Cash, cash equivalents and restricted cash | $ 481.4 | $ 454.6 | $ 390.7 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS' EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Non- Controlling Interests |
Beginning balance at Dec. 31, 2022 | $ 9,714.2 | $ 442.3 | $ 5,055.6 | $ 9,333.3 | $ (2,119.5) | $ (2,999.6) | $ 2.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings (loss) | (187.8) | (187.8) | |||||
Other comprehensive income (loss) | 52.8 | 52.8 | |||||
Cash dividends declared, common share | (119.8) | (119.8) | |||||
Issuance of common stock | 3.1 | (21.5) | 24.6 | ||||
Repurchase of common stock | (4.8) | (4.8) | |||||
Stock-based compensation related | 34.7 | 34.7 | |||||
Ending balance at Apr. 01, 2023 | 9,492.4 | 442.3 | 5,068.8 | 9,025.7 | (2,066.7) | (2,979.8) | 2.1 |
Beginning balance at Dec. 30, 2023 | 9,056.1 | 442.3 | 5,059 | 8,540.2 | (2,069.1) | (2,916.3) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings (loss) | 19.5 | 19.5 | |||||
Other comprehensive income (loss) | (116.2) | (116.2) | |||||
Cash dividends declared, common share | (121.8) | (121.8) | |||||
Issuance of common stock | 3.8 | (35) | 38.8 | ||||
Repurchase of common stock | (6.3) | (6.3) | |||||
Stock-based compensation related | 41.3 | 41.3 | |||||
Ending balance at Mar. 30, 2024 | $ 8,876.4 | $ 442.3 | $ 5,065.3 | $ 8,437.9 | $ (2,185.3) | $ (2,883.8) | $ 0 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared, common shares, per share (in dollars per share) | $ 0.81 | $ 0.80 |
Issuance of common stock (in shares) | 303,005 | 202,552 |
Repurchase of common stock (in shares) | 70,802 | 58,377 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 30, 2024 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 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 months ended March 30, 2024 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, 2023, and subsequent related filings with the Securities and Exchange Commission ("SEC"). On April 1, 2024, the Company completed the previously announced sale of its Infrastructure business. Based on management's commitment to sell this business, assets and liabilities related to Infrastructure were classified as held for sale on the Company's Condensed Consolidated Balance Sheets as of March 30, 2024 and December 30, 2023. This divestiture does not qualify for discontinued operations and therefore, its results are included in the Company's Consolidated Statements of Operations and Comprehensive Loss for all periods presented. The sale of the Infrastructure business is part of the Company's strategic commitment to simplify and streamline its portfolio to focus on the core Tools & Outdoor and Industrial businesses. Refer to Note Q, Divestitures, for further discussion of this transaction. |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 3 Months Ended |
Mar. 30, 2024 | |
Accounting Policies [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS NEW ACCOUNTING STANDARDS ADOPTED — In June 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . The new standard clarifies that a contractual restriction on the sale of an equity security should not be considered in measuring the fair value of the security. The new standard also requires certain disclosures related to equity securities with contractual sale restrictions. The ASU is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The Company adopted this standard in the first quarter of 2024 and it did not have a material impact on its consolidated financial statements. RECENTLY ISSUED ACCOUNTING STANDARDS NOT YET ADOPTED — In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The new standard was issued to improve transparency and decision usefulness of income tax disclosures by providing information that helps investors better understand how an entity’s operations, tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The amendments in this update primarily relate to requiring greater disaggregated disclosure of information in the rate reconciliation, income taxes paid, income (loss) from continuing operations before income tax expense (benefit), and income tax expense (benefit) from continuing operations. The ASU is effective for fiscal years beginning after December 15, 2024, and early adoption is permitted. The standard can be applied prospectively or retrospectively. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The new standard provides improvements to reportable segment disclosure requirements through amendments that require disclosure of significant segment expenses and other segment items on an interim and annual basis and requires all annual disclosures about a reportable segment’s profit or loss and assets to be made on an interim basis. The standard also requires the disclosure of the chief operating decision maker’s (“CODM”) title and position and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The standard also clarifies that if the CODM uses more than one measure in assessing segment performance and deciding how to allocate resources, a company may report the additional segment profit or loss measure(s) and that companies with a single reportable segment must provide all disclosures required by this amendment. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The standard should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 30, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table reconciles net earnings (loss) and the weighted-average shares outstanding used to calculate basic and diluted earnings (loss) per share of common stock for the three months ended March 30, 2024 and April 1, 2023: Year-to-Date 2024 2023 Numerator (in millions): Net earnings (loss) $ 19.5 $ (187.8) Denominator (in thousands): Basic weighted-average shares outstanding 150,235 149,574 Dilutive effect of stock contracts and awards 706 — Diluted weighted-average shares outstanding 150,941 149,574 Earnings (loss) per share of common stock: Basic $ 0.13 $ (1.26) Diluted $ 0.13 $ (1.26) The following weighted-average stock options were not included in the computation of weighted-average diluted shares outstanding because the effect would be anti-dilutive (in thousands): Year-to-Date 2024 2023 Number of stock options 4,995 5,735 |
ACCOUNTS AND NOTES RECEIVABLE,
ACCOUNTS AND NOTES RECEIVABLE, NET | 3 Months Ended |
Mar. 30, 2024 | |
Receivables [Abstract] | |
ACCOUNTS AND NOTES RECEIVABLE, NET | ACCOUNTS AND NOTES RECEIVABLE, NET (Millions of Dollars) March 30, 2024 December 30, 2023 Trade accounts receivable $ 1,480.6 $ 1,057.8 Notes receivable 64.8 66.9 Other accounts receivable 238.4 253.9 Accounts and notes receivable $ 1,783.8 $ 1,378.6 Allowance for credit losses (74.9) (76.6) Accounts and notes receivable, net $ 1,708.9 $ 1,302.0 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. The changes in the allowance for credit losses for the three months ended March 30, 2024 and April 1, 2023 are as follows: Year-to-Date (Millions of Dollars) 2024 2023 Beginning balance $ 76.6 $ 106.6 Charged to costs and expenses (0.2) 2.1 Other, including recoveries and deductions (a) (1.5) (2.9) Balance end of period $ 74.9 $ 105.8 (a) Amounts represent charge-offs less recoveries, the impacts of foreign currency translation, divestitures and net transfers to/from other accounts. The Company's payment terms are generally consistent with the industries in which their businesses operate and typically range from 30-90 days globally. 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. The Company has an accounts receivable sale program. According to the terms, the Company sells certain of its trade accounts receivables at fair value to a wholly owned, consolidated, bankruptcy-remote special purpose subsidiary (“BRS"). The BRS, in turn, can sell such receivables to a third-party financial institution (“Purchaser”) for cash. The Purchaser’s maximum cash investment in the receivables at any time is $110.0 million. The purpose of the program is to provide liquidity to the Company. These transfers qualify as sales under Accounting Standards Codification ("ASC") 860, Transfers and Servicing , and receivables are derecognized from the Company’s consolidated balance sheet when the BRS sells those receivables to the Purchaser. The Company has no retained interests in the transferred receivables, other than collection and administrative responsibilities. At March 30, 2024, the Company did not record a servicing asset or liability related to its retained responsibility based on its assessment of the servicing fee, market values for similar transactions and its cost of servicing the receivables sold. At March 30, 2024 and December 30, 2023, net receivables of approximately $64.4 million and $110.0 million, respectively, were derecognized. Proceeds from transfers of receivables to the Purchaser totaled $59.6 million and $56.9 million for the three months ended March 30, 2024 and April 1, 2023, respectively, and payments to the Purchaser totaled $105.2 million and $106.3 million, respectively. The program resulted in a pre-tax loss of $1.2 million and $1.0 million for the three months ended March 30, 2024 and April 1, 2023, respectively. All cash flows under the program are reported as a component of changes in working capital within operating activities in the Condensed Consolidated Statements of Cash Flows since all the cash from the Purchaser is received upon the initial sale of the receivable. As of March 30, 2024 and December 30, 2023, the Company's deferred revenue totaled $116.7 million and $116.8 million, respectively, of which $33.6 million and $31.7 million, respectively, was classified as current. |
INVENTORIES, NET
INVENTORIES, NET | 3 Months Ended |
Mar. 30, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | INVENTORIES, NET (Millions of Dollars) March 30, 2024 December 30, 2023 Finished products $ 2,945.9 $ 2,912.5 Work in process 303.3 263.4 Raw materials 1,444.1 1,562.7 Total $ 4,693.3 $ 4,738.6 |
GOODWILL
GOODWILL | 3 Months Ended |
Mar. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL Changes in the carrying amount of goodwill by segment are as follows: (Millions of Dollars) Tools & Outdoor Industrial Total Balance December 30, 2023 $ 5,976.3 $ 2,019.6 $ 7,995.9 Foreign currency translation & other (33.6) (7.6) (41.2) Balance March 30, 2024 $ 5,942.7 $ 2,012.0 $ 7,954.7 Goodwill totaling $539.6 million and $540.5 million relating to the Infrastructure business was reclassified to assets held for sale as of March 30, 2024 and December 30, 2023, respectively. These goodwill amounts were included in the determination of the impairment charges recorded in the fourth quarter of 2023 and first quarter of 2024 to adjust the carrying amount of Infrastructure's long-lived assets to its estimated fair value less selling costs. Refer to Note Q, Divestitures, |
LONG-TERM DEBT AND FINANCING AR
LONG-TERM DEBT AND FINANCING ARRANGEMENTS | 3 Months Ended |
Mar. 30, 2024 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND FINANCING ARRANGEMENTS | LONG-TERM DEBT AND FINANCING ARRANGEMENTS March 30, 2024 December 30, 2023 (Millions of Dollars) Interest Rate Notional Value Unamortized Discount Unamortized Gain/(Loss) Terminated Swaps 1 Purchase Accounting FV Adjustment Deferred Financing Fees Carrying Value Carrying Value Notes payable due 2025 2.30% $ 500.0 $ (0.2) $ — $ — $ (0.8) $ 499.0 $ 498.7 Notes payable due 2026 3.40% 500.0 (0.2) — — (0.8) 499.0 498.9 Notes payable due 2026 6.27% 350.0 — — — (1.2) 348.8 348.6 Notes payable due 2026 3.42% 25.0 — — 0.9 — 25.9 26.0 Notes payable due 2026 1.84% 27.0 — — 0.9 (0.1) 27.8 28.5 Notes payable due 2028 6.00% 400.0 (0.4) — — (2.0) 397.6 397.5 Notes payable due 2028 7.05% 150.0 — 4.7 4.5 — 159.2 159.7 Notes payable due 2028 4.25% 500.0 (0.1) — — (2.0) 497.9 497.7 Notes payable due 2028 3.52% 50.0 — — 3.1 (0.2) 52.9 53.1 Notes payable due 2030 2.30% 750.0 (1.5) — — (3.1) 745.4 745.3 Notes payable due 2032 3.00% 500.0 (0.7) — — (2.8) 496.5 496.3 Notes payable due 2040 5.20% 400.0 (0.2) (24.3) — (2.2) 373.3 372.9 Notes payable due 2048 4.85% 500.0 (0.5) — — (4.5) 495.0 495.0 Notes payable due 2050 2.75% 750.0 (1.7) — — (7.5) 740.8 740.7 Notes payable due 2060 (junior subordinated) 4.00% 750.0 — — — (8.5) 741.5 741.4 Other, payable in varying amounts 2024 through 2027 4.10%-4.31% 1.5 — — — — 1.5 1.8 Total Long-term debt, including current maturities $ 6,153.5 $ (5.5) $ (19.6) $ 9.4 $ (35.7) $ 6,102.1 $ 6,102.1 Less: Current maturities of long-term debt (500.0) (1.1) Long-term debt $ 5,602.1 $ 6,101.0 1 Unamortized gain/(loss) associated with interest rate swaps are more fully discussed in Note H, Financial Instruments. 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. The Company has a $3.5 billion commercial paper program which includes Euro denominated borrowings in addition to U.S. Dollars. As of March 30, 2024, the Company had commercial paper borrowings outstanding of $1.7 billion, of which $357.1 million in Euro denominated commercial paper was designated as a net investment hedge. As of December 30, 2023, the Company had $1.1 billion of borrowings outstanding, 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. The Company has a five-year $2.5 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 amount of $814.3 million is designated for swing line advances which may be drawn in Euros pursuant to the terms of the 5-Year Credit Agreement. 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 September 8, 2026 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 March 30, 2024 and December 30, 2023, the Company had not drawn on its five-year committed credit facility. The Company has a $1.5 billion syndicated 364-Day Credit Agreement (the "2023 Syndicated 364-Day Credit Agreement") which is a revolving credit loan. The borrowings under the 2023 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 2023 Syndicated 364-Day Credit Agreement. The Company must repay all advances under the 2023 Syndicated 364-Day Credit Agreement by the earlier of September 4, 2024 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 2023 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 March 30, 2024 and December 30, 2023, the Company had not drawn on its 2023 Syndicated 364-Day Credit Agreement . In September 2023, the Company terminated its $0.5 billion revolving credit loan (the "Club 364-Day Credit Agreement") dated September 2022, as amended. There were no outstanding borrowings under the Club 364-Day Credit Agreement upon termination. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS The Company is exposed to market risk from changes in foreign currency exchange rates, interest rates, stock prices and commodity prices. As part of the Company’s risk management program, a variety of financial instruments such as interest rate swaps, currency swaps, purchased currency options, foreign exchange contracts and commodity contracts may be used to mitigate interest rate exposure, foreign currency exposure and commodity price exposure. If the Company elects to do so and if the instrument meets the criteria specified in ASC 815, Derivatives and Hedging , management designates its derivative instruments as cash flow hedges, fair value hedges or net investment hedges. Generally, commodity price exposures are not hedged with derivative financial instruments and instead are actively managed through customer pricing initiatives, procurement-driven cost reduction initiatives and other productivity improvement projects. Financial instruments are not utilized for speculative purposes. A summary of the fair values of the Company’s derivatives recorded in the Condensed Consolidated Balance Sheets at March 30, 2024 and December 30, 2023 is as follows: (Millions of Dollars) Balance Sheet March 30, 2024 December 30, 2023 Balance Sheet March 30, 2024 December 30, 2023 Derivatives designated as hedging instruments: Foreign Exchange Contracts Cash Flow Other current assets $ 2.9 $ 0.1 Accrued expenses $ 0.3 $ 4.9 Non-derivative designated as hedging instrument: Net Investment Hedge $ — $ — Short-term borrowings $ 357.1 $ 399.7 Total designated as hedging instruments $ 2.9 $ 0.1 $ 357.4 $ 404.6 Derivatives not designated as hedging instruments: Foreign Exchange Contracts Other current assets $ 5.4 $ 8.4 Accrued expenses $ 8.6 $ 13.0 Total $ 8.3 $ 8.5 $ 366.0 $ 417.6 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. 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. As of March 30, 2024 and December 30, 2023, there were no assets that had been posted as collateral related to the above mentioned financial instruments. During the three months ended March 30, 2024 and April 1, 2023, cash flows related to derivatives, including those that are separately discussed below, resulted in net cash paid of $15.4 million and $4.6 million, respectively. CASH FLOW HEDGES There were after-tax mark-to-market losses of $37.5 million and $42.5 million as of March 30, 2024 and December 30, 2023, respectively, reported for cash flow hedge effectiveness in Accumulated other comprehensive loss. An after-tax loss of $1.9 million is expected to be reclassified to earnings as the hedged transactions occur or as amounts are amortized within the next twelve months. The ultimate amount recognized will vary based on fluctuations of the hedged currencies and interest rates through the maturity dates. The tables below detail pre-tax amounts of derivatives designated as cash flow hedges in Accumulated other comprehensive loss during the periods in which the underlying hedged transactions affected earnings for the three months ended March 30, 2024 and April 1, 2023: Year-to-Date 2024 (Millions of Dollars) Gain (Loss) Classification of Gain (Loss) Gain (Loss) Interest Rate Contracts $ — Interest expense $ (1.5) $ — Foreign Exchange Contracts $ 7.0 Cost of sales $ 1.7 $ — Year-to-Date 2023 (Millions of Dollars) Gain (Loss) Classification of Gain (Loss) Gain (Loss) Interest Rate Contracts $ — Interest expense $ (1.5) $ — Foreign Exchange Contracts $ (2.6) Cost of sales $ 0.6 $ — A summary of the pre-tax effect of cash flow hedge accounting on the Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 30, 2024 and April 1, 2023 is as follows: Year-to-Date 2024 (Millions of Dollars) Cost of Sales Interest Expense Total amount in the Consolidated Statements of Operations and Comprehensive Loss in which the effects of the cash flow hedges are recorded $ 2,761.0 $ 131.5 Gain (loss) on cash flow hedging relationships: Foreign Exchange Contracts: Hedged Items $ (1.7) $ — Gain (loss) reclassified from OCI into Income $ 1.7 $ — Interest Rate Swap Agreements: Gain (loss) reclassified from OCI into Income 1 $ — $ (1.5) Year-to-Date 2023 (Millions of Dollars) Cost of Sales Interest Expense Total amount in the Consolidated Statements of Operations and Comprehensive Loss in which the effects of the cash flow hedges are recorded $ 3,096.3 $ 130.9 Gain (loss) on cash flow hedging relationships: Foreign Exchange Contracts: Hedged Items $ (0.6) $ — Gain (loss) reclassified from OCI into Income $ 0.6 $ — Interest Rate Swap Agreements: Gain (loss) reclassified from OCI into Income 1 $ — $ (1.5) 1 Inclusive of the gain/loss amortization on terminated derivative financial instruments. An after-tax gain of $0.1 million and after-tax loss of $0.5 million were reclassified from Accumulated other comprehensive loss into earnings (inclusive of the gain/loss amortization on terminated derivative instruments) during the periods in which the underlying hedged transactions affected earnings for the three months ended March 30, 2024 and April 1, 2023, respectively. Interest Rate Contracts: In prior years, the Company entered 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. These swap agreements, which were designated as cash flow hedges, subsequently matured or were terminated and the gain/loss was recorded in Accumulated other comprehensive loss and is being amortized to interest expense. The cash flows stemming from the maturity or termination of the swaps are presented within financing activities in the Condensed Consolidated Statements of Cash Flows. As of March 30, 2024 and December 30, 2023, the Company did not have any outstanding forward starting swaps designated as cash flow hedges. 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 March 30, 2024 and December 30, 2023, the notional value of forward currency contracts outstanding is $208.3 million and $300.0 million, respectively, maturing on various dates through 2024. 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 in 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 March 30, 2024 and December 30, 2023, 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 Loss for the three months ended March 30, 2024 and April 1, 2023 is as follows: (Millions of Dollars) Year-to-Date 2024 Total amount in the Consolidated Statements of Operations and Comprehensive Loss in which the effects of the fair value hedges are recorded $ 131.5 Amortization of gain on terminated swaps $ (0.1) (Millions of Dollars) Year-to-Date 2023 Total amount in the Consolidated Statements of Operations and Comprehensive Loss in which the effects of the fair value hedges are recorded $ 130.9 Amortization of gain on terminated swaps $ (0.1) A summary of the amounts recorded in the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of March 30, 2024 and December 30, 2023 is as follows: March 30, 2024 (Millions of Dollars) Carrying Amount of Hedged Liability (1) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability Current Maturities of Long-Term Debt $ 500.0 Terminated Swaps $ — Long-Term Debt $ 532.5 Terminated Swaps $ (19.6) December 30, 2023 (Millions of Dollars) Carrying Amount of Hedged Liability (1) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability Current Maturities of Long-Term Debt $ 1.1 Terminated Swaps $ — Long-Term Debt $ 532.6 Terminated Swaps $ (19.7) (1) Represents hedged items no longer designated in qualifying fair value hedging relationships. 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 gains of $71.4 million and $64.9 million at March 30, 2024 and December 30, 2023, respectively. As of March 30, 2024 and December 30, 2023, the Company did not have any net investment hedges with a notional value outstanding. As of March 30, 2024, the Company had Euro denominated commercial paper with a value of $357.1 million, maturing in 2024, hedging a portion of the Company's Euro denominated net investments. As of December 30, 2023, the Company had Euro denominated commercial paper with a value of $399.7 million, maturing in 2024, hedging a portion of the Company's Euro denominated net investments. Maturing foreign exchange contracts resulted in no cash received or paid for the three months ended March 30, 2024 and April 1, 2023. Gains and losses on net investment hedges remain in Accumulated other comprehensive loss until disposal of the underlying assets. 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. Gains and losses after a hedge has been de-designated are recorded directly to the Consolidated Statements of Operations and Comprehensive Loss in Other, net. The pre-tax gain or loss from fair value changes for the three months ended March 30, 2024 and April 1, 2023 is as follows: Year-to-Date 2024 (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 $ (0.2) $ — Other, net $ — $ — Non-derivative designated as Net Investment Hedge $ 8.8 $ — Other, net $ — $ — Year-to-Date 2023 (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 $ 0.2 $ — Other, net $ — $ — Cross Currency Swap $ (0.1) $ — Other, net $ — $ — Non-derivative designated as Net Investment Hedge $ (12.6) $ — Other, net $ — $ — 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 is $1.0 billion as of March 30, 2024 and December 30, 2023, maturing on various dates through 2024. The loss recorded in the Consolidated Statements of Operations and Comprehensive Loss from changes in the fair value related to derivatives not designated as hedging instruments under ASC 815 for the three months ended March 30, 2024 and April 1, 2023 is as follows: (Millions of Dollars) Income Statement Classification Year-to-Date Year-to-Date Foreign Exchange Contracts Other, net $ (13.9) $ (1.0) |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Mar. 30, 2024 | |
Accumulated Other Comprehensive Income [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables summarize the changes in the balances for each component of Accumulated other comprehensive loss: (Millions of Dollars) Currency translation adjustment and other (Losses) gains on cash flow hedges, net of tax Gains on net investment hedges, net of tax Pension (losses) gains, net of tax Total Balance - December 30, 2023 $ (1,832.3) $ (42.5) $ 64.9 $ (259.2) $ (2,069.1) Other comprehensive (loss) income before reclassifications (130.8) 5.1 6.5 1.0 (118.2) Reclassification adjustments to earnings — (0.1) — 2.1 2.0 Net other comprehensive (loss) income (130.8) 5.0 6.5 3.1 (116.2) Balance - March 30, 2024 $ (1,963.1) $ (37.5) $ 71.4 $ (256.1) $ (2,185.3) (Millions of Dollars) Currency translation adjustment and other (Losses) gains on cash flow hedges, net of tax Gains (losses) on net investment hedges, net of tax Pension (losses) gains, net of tax Total Balance - December 31, 2022 $ (1,907.4) $ (44.5) $ 73.8 $ (241.4) $ (2,119.5) Other comprehensive income (loss) before reclassifications 64.0 (1.8) (9.4) (2.6) 50.2 Reclassification adjustments to earnings — 0.5 — 2.1 2.6 Net other comprehensive income (loss) 64.0 (1.3) (9.4) (0.5) 52.8 Balance -April 1, 2023 $ (1,843.4) $ (45.8) $ 64.4 $ (241.9) $ (2,066.7) The Company uses the portfolio method for releasing the stranded tax effects from Accumulated other comprehensive loss. The reclassifications out of Accumulated other comprehensive loss for the three months ended March 30, 2024 and April 1, 2023 were as follows: (Millions of Dollars) 2024 2023 Affected line item in Consolidated Statements of Operations And Comprehensive Loss Realized gains on cash flow hedges $ 1.7 $ 0.6 Cost of sales Realized losses on cash flow hedges (1.5) (1.5) Interest expense Total before taxes $ 0.2 $ (0.9) Tax effect (0.1) 0.4 Income taxes Realized gains (losses) on cash flow hedges, net of tax $ 0.1 $ (0.5) Amortization of defined benefit pension items: Actuarial losses and prior service costs / credits $ (2.8) $ (2.7) Other, net Tax effect 0.7 0.6 Income taxes Amortization of defined benefit pension items, net of tax $ (2.1) $ (2.1) |
NET PERIODIC BENEFIT COST - DEF
NET PERIODIC BENEFIT COST - DEFINED BENEFIT PLANS | 3 Months Ended |
Mar. 30, 2024 | |
Retirement Benefits [Abstract] | |
NET PERIODIC BENEFIT COSTS - DEFINED BENEFIT PLANS | NET PERIODIC BENEFIT COST — DEFINED BENEFIT PLANS Following are the components of net periodic pension expense for the three months ended March 30, 2024 and April 1, 2023: Year-to-Date Pension Benefits Other Benefits U.S. Plans Non-U.S. Plans All Plans (Millions of Dollars) 2024 2023 2024 2023 2024 2023 Service cost $ 1.6 $ 2.0 $ 3.1 $ 2.8 $ 0.1 $ 0.1 Interest cost 12.9 13.5 10.4 10.6 0.4 0.5 Expected return on plan assets (15.2) (15.5) (10.9) (10.1) — — Amortization of prior service cost (credit) 0.2 0.2 (0.2) (0.2) — — Amortization of net loss (gain) 2.0 2.2 1.1 0.8 (0.3) (0.3) Net periodic pension expense $ 1.5 $ 2.4 $ 3.5 $ 3.9 $ 0.2 $ 0.3 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 30, 2024 | |
Fair Value Disclosures [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 counterparty. Recurring Fair Value Measurements The following table presents the Company’s financial assets and liabilities that are measured at fair value on a recurring basis for each of the hierarchy levels: (Millions of Dollars) Total Level 1 Level 2 Level 3 March 30, 2024 Money market fund $ 13.9 $ 13.9 $ — $ — Deferred compensation plan investments $ 15.9 $ 15.9 $ — $ — Derivative assets $ 8.3 $ — $ 8.3 $ — Derivative liabilities $ 8.9 $ — $ 8.9 $ — Non-derivative hedging instrument $ 357.1 $ — $ 357.1 $ — Contingent consideration liability $ 203.4 $ — $ — $ 203.4 December 30, 2023 Money market fund $ 12.3 $ 12.3 $ — $ — Deferred compensation plan investments $ 20.2 $ 20.2 $ — $ — Derivative assets $ 8.5 $ — $ 8.5 $ — Derivative liabilities $ 17.9 $ — $ 17.9 $ — Non-derivative hedging instrument $ 399.7 $ — $ 399.7 $ — Contingent consideration liability $ 208.8 $ — $ — $ 208.8 The following table provides information about the Company's financial assets and liabilities not carried at fair value: March 30, 2024 December 30, 2023 (Millions of Dollars) Carrying Fair Carrying Fair Other investments $ 4.0 $ 3.9 $ 6.0 $ 5.8 Long-term debt, including current portion $ 6,102.1 $ 5,468.4 $ 6,102.1 $ 5,512.8 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 deferred compensation plan investments are considered Level 1 instruments and are recorded at their quoted market price. The fair values of the derivative financial instruments in the table above are based on current settlement values. 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 March 30, 2024 and December 30, 2023. As part of the Craftsman® brand acquisition in March 2017, the Company recorded a contingent consideration liability representing the Company's obligation to make future payments to Transform Holdco, LLC, which operates Sears and Kmart retail locations, of between 2.5% and 3.5% on sales of Craftsman products in new Stanley Black & Decker channels through March 2032. During the three months ended March 30, 2024, the Company paid $8.2 million for royalties owed. The Company will continue making future payments quarterly through the second quarter of 2032. The estimated fair value of the contingent consideration liability is determined using a discounted cash flow analysis taking into consideration future sales projections, forecasted payments to Transform Holdco, LLC, based on contractual royalty rates, and the related tax impacts. The estimated fair value of the contingent consideration liability was $203.4 million and $208.8 million as of March 30, 2024 and December 30, 2023, respectively. Adjustments to the contingent consideration liability, with the exception of cash payments, are recorded in SG&A in the Consolidated Statements of Operations and Comprehensive Loss. A 100 basis point reduction in the discount rate would result in an increase to the liability of approximately $6.1 million as of March 30, 2024. 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 contingent consideration liability discussed above, including estimated future sales projections, can materially impact the Company’s results of operations. Refer to Note H, Financial Instruments , for more details regarding derivative financial instruments, Note O, Contingencies, for more details regarding the other investments related to the WCLC trust, and Note G, Long-Term Debt and Financing Arrangements , for more information regarding the carrying values of the long-term debt. Non-Recurring Fair Value Measurements The Compan y recorded an impairment charge in the first quarter of 2024 and the fourth quarter of 2023 to adjust the carrying amount of the long-lived assets of its Infrastructure business sold on April 1, 2024, which is considered a Level 3 fair value measurement. Refer to Note Q, Divestitures for further discussion. The Company had no other significant non-recurring fair value measurements, nor any other financial assets or liabilities measured using Level 3 inputs, during the first three months of 2024 or 2023. |
RESTRUCTURING CHARGES AND OTHER
RESTRUCTURING CHARGES AND OTHER COSTS | 3 Months Ended |
Mar. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES AND OTHER COSTS | RESTRUCTURING CHARGES AND OTHER COSTS A summary of the restructuring reserve activity from December 30, 2023 to March 30, 2024 is as follows: (Millions of Dollars) December 30, Net Additions Usage Currency March 30, Severance and related costs $ 25.8 $ 13.3 $ (6.6) $ 0.4 $ 32.9 Facility closures and other 3.1 1.7 (3.4) — 1.4 Total $ 28.9 $ 15.0 $ (10.0) $ 0.4 $ 34.3 For the three months ended March 30, 2024, the Company recognized net restructuring charges of $15.0 million primarily related to severance. The majority of the $34.3 million of reserves remaining as of March 30, 2024 is expected to be utilized within the next 12 months. Segments: The $15.0 million of net restructuring charges for the three months ended March 30, 2024 includes: $7.0 million in the Tools & Outdoor segment; $5.7 million in the Industrial segment; and $2.3 million in Corporate. Other, net is primarily comprised of intangible asset amortization expense, currency-related gains or losses, environmental remediation expense, deal costs and related consulting costs, and certain pension gains or losses. Other, net amounted to $80.0 million and $63.7 million for the three months ended March 30, 2024 and April 1, 2023, respectively. The year-over-year increase was primarily driven by higher environmental costs, write-downs on certain investments, and lower income related to providing transition services to previously divested businesses. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES In accordance with ASC 740, Income Taxes , the Company estimates its annual effective tax rate each quarterly reporting period. Tax expense or benefit in interim periods is computed by applying the estimated annual effective tax rate to income or loss, and is adjusted for the tax effect of items of income and expense discretely reported in the period. The estimated annual effective tax rate used in determining income taxes on a year-to-date basis may change in subsequent interim periods. When changes to the estimated annual effective tax rate occur, the prior interim year-to-date tax expense or tax benefit is revised to reflect the revised estimated annual effective tax rate. Any adjustment is recorded in the period in which the change occurs. For the three months ended March 30, 2024, the Company recognized income tax expense of $28.8 million, resulting in an effective tax rate of 59.6%. The effective tax rate for the three months ended March 30, 2024 differs from the U.S. statutory tax rate of 21% primarily due to non-deductible expenses, losses for which a tax benefit is not recognized, and U.S. tax on foreign earnings, partially offset by tax credits and state income taxes. For the three months ended April 1, 2023, the Company recognized income tax expense of $23.7 million, resulting in an effective tax rate of (14.4)%. The effective tax rate for the three months ended April 1, 2023 differs from the U.S. statutory tax rate of 21% primarily due to U.S. tax on foreign earnings, non-deductible expenses, and interest on unrecognized tax benefits, partially offset by tax on foreign earnings at tax rates different than the U.S. tax rate, state income taxes, and tax credits. 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 twelve months. However, based on the uncertainties associated with finalizing audits with the relevant tax authorities including formal legal proceedings, it is not possible to reasonably estimate the impact of any such change. |
BUSINESS SEGMENTS AND GEOGRAPHI
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS | 3 Months Ended |
Mar. 30, 2024 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS | BUSINESS SEGMENTS AND GEOGRAPHIC AREAS The Company’s operations are classified into two reportable business segments: Tools & Outdoor and Industrial. The Tools & Outdoor segment is comprised of the Power Tools Group ("PTG"), Hand Tools, Accessories & Storage ("HTAS") and Outdoor Power Equipment ("Outdoor") product lines. The PTG product line includes both professional and consumer products. Professional products, primarily under the DEWALT® brand, 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, and concrete and masonry anchors. DIY and tradesperson focused products include corded and cordless electric power tools sold primarily under the CRAFTSMAN® brand, and consumer home products such as hand-held vacuums, paint tools and cleaning appliances primarily under the BLACK+DECKER® brand. The HTAS product line 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 Outdoor product line primarily sells corded and cordless electric lawn and garden products, including hedge trimmers, string trimmers, lawn mowers, pressure washers and related accessories, and gas powered lawn and garden products, including lawn tractors, zero turn ride on mowers, walk behind mowers, snow blowers, residential robotic mowers, utility terrain vehicles (UTVs), hand-held outdoor power equipment, garden tools, and parts and accessories to professionals and consumers under the DEWALT®, CRAFTSMAN®, CUB CADET®, BLACK+DECKER®, and HUSTLER® 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 designs, manufactures, and sells attachments, typically used on excavators, and handheld hydraulic and battery-powered tools for applications in infrastructure, construction, scrap recycling, demolition, and railroad infrastructure. 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. 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. Year-to-Date (Millions of Dollars) 2024 2023 Net Sales Tools & Outdoor $ 3,284.6 $ 3,315.4 Industrial 584.9 616.4 Consolidated $ 3,869.5 $ 3,931.8 Segment Profit Tools & Outdoor $ 255.7 $ 18.7 Industrial 65.2 67.4 Segment Profit 320.9 86.1 Corporate Overhead (64.2) (75.7) Other, net (80.0) (63.7) Loss on sales of businesses — (7.6) Asset impairment charge (25.5) — Restructuring charges (15.0) (12.1) Interest income 43.6 39.8 Interest expense (131.5) (130.9) Earnings (loss) before income taxes $ 48.3 $ (164.1) Corporate Overhead includes the corporate overhead element of SG&A, which is not allocated to the business segments. 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 months ended March 30, 2024 and April 1, 2023, the majority of the Company’s revenue was recognized at the time of sale. The percent of total segment revenue recognized over time for the Industrial segment for the three months ended March 30, 2024 and April 1, 2023 was 2.9% and 1.7%, respectively. The following table is a further disaggregation of the Industrial segment revenue for the three months ended March 30, 2024 and April 1, 2023: Year-to-Date (Millions of Dollars) 2024 2023 Engineered Fastening $ 492.3 $ 476.3 Infrastructure 92.6 140.1 Industrial $ 584.9 $ 616.4 The following table is a summary of total assets by segment as of March 30, 2024 and December 30, 2023: (Millions of Dollars) March 30, 2024 December 30, 2023 Tools & Outdoor $ 19,080.9 $ 18,960.8 Industrial 4,071.4 4,081.7 23,152.3 23,042.5 Assets held for sale 827.5 857.6 Corporate assets (125.9) (236.3) Consolidated $ 23,853.9 $ 23,663.8 Corporate assets primarily consist of cash, 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 months ended March 30, 2024 and April 1, 2023: Year-to-Date (Millions of Dollars) 2024 2023 United States $ 2,357.3 $ 2,422.4 Canada 215.9 218.3 Other Americas 209.5 193.4 Europe 788.7 783.7 Asia 298.1 314.0 Consolidated $ 3,869.5 $ 3,931.8 |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | 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. Government Investigations On January 19, 2024, the Company was notified by the Compliance and Field Operations Division (the “Division”) of the Consumer Product Safety Commission that the Division intends to recommend the imposition of a civil penalty of approximately $32 million for alleged untimely reporting in relation to certain utility bars and miter saws that were subject to voluntary recalls in September 2019 and March 2022, respectively. The Company believes there are defenses to the Division’s claims and has presented its defenses to the Division. However, given the early stage of this matter, at this time, the Company is not in a position to assess the likelihood of any potential loss or adverse effect on its financial condition or to estimate the amount of potential loss, if any, from this matter. The Company previously disclosed that it had identified certain undisclosed perquisites in prior periods. The Company voluntarily disclosed this information to the U.S. Securities and Exchange Commission (the “SEC” or the “Commission”) and cooperated with the SEC’s investigation of this matter. On June 20, 2023, the SEC issued a Cease-and-Desist Order (the “Order”) that resolved this matter. The Order reflects that the Company neither admitted to nor denied the allegations contained in the Order, and that the SEC did not impose any monetary penalties on the Company. The Order credited the Company’s self-reporting, cooperation, and remediation efforts. In a parallel action, the SEC issued a Cease-and-Desist Order against a former executive of the Company (the “Parallel Resolution”). The SEC’s press release announcing both resolutions noted that, with respect to the Parallel Resolution, “[a]fter consideration of Stanley Black & Decker’s self-reporting, cooperation, and remediation, the SEC declined to bring charges against the company related to [the former executive’s] conduct.” Also, as previously disclosed, the Company has identified certain transactions relating to its international operations that may raise compliance questions under the U.S. Foreign Corrupt Practices Act (“FCPA”) and voluntarily disclosed this information to the U.S. Department of Justice (“DOJ”) and the SEC in January 2023. The Company is cooperating with both agencies in their investigations of these transactions (the “FCPA Matters”). Currently, the Company does not believe that the FCPA Matters will have a material impact on its financial condition or results of operations, although it is possible that a loss related to the FCPA Matters may be incurred. Given the ongoing nature of the FCPA Matters, management cannot predict the duration, scope, or outcome of the DOJ’s or SEC’s investigations or estimate the potential magnitude of any such loss or range of loss, or the cost of the ongoing investigations. Any determination that certain transactions relating to the Company’s international operations were not in compliance with the FCPA could result in the imposition of fines, civil or criminal penalties, equitable remedies, including disgorgement, injunctive relief, or other sanctions against the Company. The Company also may become a party to litigation or other legal proceedings over the FCPA Matters described above. The Company is committed to upholding the highest standards of corporate governance and is continuously focused on ensuring the effectiveness of its policies, procedures, and controls. The Company is in the process, with the assistance of professional advisors, of reviewing and further enhancing relevant policies, procedures, and controls. Class Action Litigation As previously disclosed, on March 24, 2023, a putative class action lawsuit titled Naresh Vissa Rammohan v. Stanley Black & Decker, Inc., et al ., Case No. 3:23-cv-00369-KAD (the “ Rammohan Class Action”), was filed in the United States District Court for the District of Connecticut against the Company and certain of the Company’s current and former officers and directors. The complaint was filed on behalf of a purported class consisting of all purchasers of Stanley Black & Decker common stock between October 28, 2021 and July 28, 2022, inclusive. The complaint asserts violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 based on allegedly false and misleading statements related to consumer demand for the Company’s products amid changing COVID-19 trends and macroeconomic conditions. The complaint seeks unspecified damages and an award of costs and expenses. On October 13, 2023, Lead Plaintiff General Retirement System of the City of Detroit filed an Amended Complaint that asserts the same claims and seeks the same forms of relief as the original complaint. The Company intends to vigorously defend this action in all respects and on December 14, 2023 filed a motion to dismiss the Amended Complaint in its entirety. Briefing on that motion concluded on April 5, 2024, and the Company awaits a decision on that motion. Given the early stage of this litigation, at this time, the Company is not in a position to assess the likelihood of any potential loss or adverse effect on its financial condition or to estimate the amount or range of potential losses, if any, from this action. Derivative Actions As previously disclosed, on August 2, 2023 and September 20, 2023, derivative complaints were filed in the United States District Court for the District of Connecticut, titled Callahan v. Allan, et al ., Case No. 3:23-cv-01028-OAW (the “ Callahan Derivative Action”) and Applebaum v. Allan, et al ., Case No. 3:23-cv-01234-OAW (the “ Applebaum Derivative Action”), respectively, by putative stockholders against certain current and former directors and officers of the Company premised on the same allegations as the Rammohan Class Action. The Callahan and Applebaum Derivative Actions were consolidated by Court order on November 6, 2023 and defendants’ responses to both complaints have been stayed pending the disposition of any motions to dismiss in the Rammohan Class Action. The individual defendants intend to vigorously defend the Callahan and Applebaum Derivative Actions in all respects. However, given the early stage of this litigation, at this time, the Company is not in a position to assess the likelihood of any potential loss or adverse effect on its financial condition or to estimate the amount or range of potential losses, if any, from these actions. On October 19, 2023, a derivative complaint was filed in Connecticut Superior Court, titled Vladimir Gusinsky Revocable Trust v. Allan, et al ., Docket Number HHBCV236082260S, by a putative stockholder against certain current and former directors and officers of the Company. Plaintiff seeks to recover for alleged breach of fiduciary duties and unjust enrichment under Connecticut state law premised on the same allegations as the Rammohan Class Action. By Court order on November 11, 2023, the Connecticut Superior Court granted the parties’ motion to stay defendants’ response to the complaint pending the disposition of any motions to dismiss in the Rammohan Class Action. The individual defendants intend to vigorously defend this action in all respects. However, given the early stage of this litigation, at this time, the Company is not in a position to assess the likelihood of any potential loss or adverse effect on its financial condition or to estimate the amount or range of potential losses, if any, from this action. Environmental 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 numerous administrative proceedings for the remediation of various waste sites, including 23 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. If 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 March 30, 2024 and December 30, 2023, the Company had reserves of $124.2 million and $124.5 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 March 30, 2024 amount, $50.5 million is classified as current and $73.7 million as long-term which is expected to be paid over the estimated remediation period. As of March 30, 2024, the range of environmental remediation costs that is reasonably possible is $80.4 million to $226.5 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 the Company's policy. West Cost Loading Corporation As of March 30, 2024, the Company has recorded $17.0 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 and liquidated 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 treatment of ground water at or around the site for a period of approximately 30 years or more. As of March 30, 2024, the Company's net cash obligation associated with remediation activities, including WCLC assets, is $107.2 million. Centredale Site On April 8, 2019, the United States District Court approved a Consent Decree 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 Manor Restoration Project Superfund Site ("Centredale site"), located in North Providence, Rhode Island. Black & Decker and Emhart 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 Centredale site. The Company is complying with the terms of the settlement. Remediation work at the Centredale site remains ongoing. Technical and regulatory issues have arisen in connection with the disposal methods selected and described in the statement of work for contaminated Centredale site soils and sediment. Emhart’s contractor is working with the EPA and the State of Rhode Island to develop alternatives. Emhart has recently entered into a cooperative agreement with the Federal and State Natural Resource Trustees to collectively conduct an assessment of what, if any, Natural Resource Damages may be associated with the contamination at the Centredale Site. Litigation continues in the District Court concerning Phase 3 of the case, which is addressing 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. As of March 30, 2024, the Company has a remaining reserve of $27.8 million for this site. Lower Passaic River 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. The CPG has substantially completed the RI/FS for the entire 17-mile River. The Company’s estimated costs related to the RI/FS are included in its environmental reserves. Lower 8.3 Miles 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. On March 4, 2016, the EPA issued a Record of Decision ("ROD") selecting the remedy for the lower 8.3 miles of the River, which 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. 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. OCC has submitted the final remedial design, which is under review by EPA. 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 include the estimated cost ($165 million) 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 for OCC's ongoing activities in connection with the River. The Company and other defendants have answered the complaint and have been engaged in discovery with OCC. On February 24, 2021, the Company and other defendants filed a third party complaint against the Passaic Valley Sewerage Commissioners and forty-two municipalities to require those entities to pay their equitable share of response costs. On December 20, 2022, various defendants (including the Company) in the OCC litigation filed an unopposed motion to stay the litigation for six months which was granted by the Court on March 1, 2023 and has been extended while the Court considers the Consent Decree filed by the United States, as discussed below. 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. In a March 30, 2017 letter, the EPA stated that 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 be eligible for cash out settlement, but expected those parties' allocation to be determined through a complex settlement analysis using a third-party allocator. The EPA subsequently clarified this statement to say that such parties would be eligible to be "funding parties" for the lower 8.3 mile remedial action with each party's share of the costs determined by the EPA based on the allocation process and the remaining parties would be "work parties" for the remedial action. The Company participated in the allocation process and asserted that it did not discharge dioxins, furans or polychlorinated biphenyls and should be eligible to be a "funding party" for the lower 8.3 mile remedial action. The allocator selected by the EPA issued a confidential allocation report on December 28, 2020, which was reviewed by the EPA. As a result of the allocation process, on February 11, 2022, the EPA and certain parties (including the Company) reached an agreement in principle for a cash-out settlement for remediation of the entire 17-mile Lower Passaic River. On December 16, 2022, the United States lodged a Consent Decree with the United States District Court for the District of New Jersey in United States v. Alden Leeds, Inc. et al. (No. 2:22-cv-07326) that addressed the liability of 85 parties (including the Company) for an aggregate amount of $150 million based in part on the EPA-sponsored allocation report that found OCC 99.4% responsible for the cleanup costs of the River. The Consent Decree was subject to a 90-day public comment period, which ended March 22, 2023. On November 21, 2023, the United States informed the Court that it concluded, based on the public comments, that a small number of parties (not including the Company) should be removed from the settlement and that a change should be made to the United States’ reservation of rights (which was agreed to by the remaining settling parties). On January 17, 2024, the United States filed the modified Consent Decree with the Court and filed its motion to enter the modified Consent Decree on January 31, 2024. On April 1, 2024, the settling defendants (including the Company) and certain other parties filed briefs in support of, and OCC filed a brief in opposition to, the motion to enter the modified Consent Decree. The Court will enter or disapprove the modified Consent Decree after the motion is fully briefed. Upper 9 Miles On October 10, 2018, the EPA issued a letter directing the CPG to prepare a streamlined feasibility study for the upper 9 miles of the River based on an iterative approach using adaptive management strategies. The CPG submitted a draft Interim Remedy Feasibility Study to the EPA on December 4, 2020, which identified various targeted dredge and cap alternatives with costs that range from $420 million to $468 million (net present value). The EPA issued the Interim Remedy ROD on September 28, 2021, selecting an alternative that the EPA estimates will cost $441 million (net present value). On March 2, 2023, the EPA issued a Unilateral Administrative Order requiring OCC to design the interim remedy for the upper 9 miles of the River (the “2023 UAO”). Notwithstanding the stay of the litigation commenced in 2018 (and two days after the public comment period on the Consent Decree closed), OCC filed a complaint named Occidental Chem. Corp. v. Givaudan Fragrances Corp., et al. , No. 2:23‑cv-1699 at 2, 5 (D.N.J. Mar. 24, 2023) (the “2023 Litigation”) against forty parties (not including the Company) for recovery of past and future response costs it will incur in complying with the 2023 UAO. All of the defendants named in the 2023 Litigation are also defendants or third-party defendants in the litigation commenced in 2018. Maxus Bankruptcy Settlement Pursuant to a settlement agreement by and among the Maxus Liquidating Trust, YPF and Repsol submitted to the bankruptcy court on April 7, 2023, YPF and Repsol will jointly pay a combined sum of $573 million to various creditors. Based on the waterfall payout of the bankruptcy plan, the CPG received approximately $9 million, which will be used either to offset future CPG costs, including EPA RI/FS oversight and legal and administrative costs, or to reimburse CPG members for a portion of their past contributions to the RI/FS costs. At this time, the Company cannot reasonably estimate its liability related to the litigation and remediation efforts as discussed above, excluding the RI/FS, as the OCC litigation is pending and the EPA settlement process has not been completed and requires court approval. Kerr McGee 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. On or about November 2, 2023, the Multistate Trust managing the remediation revised the estimated remediation costs for work to be performed in 2024, and the Company adjusted the reserve for its percentage share of such costs accordingly. As of March 30, 2024, the Company has reserved $27.8 million for this site. The amount recorded for the aforementioned 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 environmental matters in excess of the amounts recorded will have a materially adverse effect on its financial position, results of operations or liquidity. |
COMMITMENTS AND GUARANTEES
COMMITMENTS AND GUARANTEES | 3 Months Ended |
Mar. 30, 2024 | |
Commitments and Guarantees [Abstract] | |
COMMITMENTS AND GUARANTEES | COMMITMENTS AND GUARANTEES COMMITMENTS — The Company has numerous assets, predominantly real estate, vehicles and equipment, under various lease arrangements. The following is a summary of the Company's right-of-use assets and lease liabilities: (Millions of Dollars) March 30, 2024 December 30, 2023 Right-of-use assets $489.4 $502.9 Lease liabilities $494.9 $506.6 Weighted-average incremental borrowing rate 4.7% 4.6% Weighted-average remaining term 6 years 7 years Right-of-use assets are included within Other assets Accrued expenses Other liabilities The Company has arrangements with third-party financial institutions that offer voluntary supply chain finance ("SCF") programs. These arrangements enable certain of the Company’s suppliers, at the supplier’s sole discretion, to sell receivables due from the Company to the financial institutions on terms directly negotiated with the financial institutions. The Company negotiates commercial terms with its suppliers, including prices, quantities, and payment terms, regardless of suppliers’ decisions to finance the receivables due from the Company under these SCF programs. The Company has no economic interest in a supplier’s decision to participate in these SCF programs, and no direct financial relationship with the financial institutions, as it relates to these SCF programs. The amounts due to the financial institutions for suppliers that voluntarily participate in these SCF programs were presented within Accounts payable on the Company’s Condensed Consolidated Balance Sheets and totaled $519.6 million and $528.1 million as of March 30, 2024 and December 30, 2023, respectively. As of March 30, 2024, the Company had unrecognized commitments that require the future purchase of goods or services (unconditional purchase obligations) to provide it with access to products and services at competitive prices. These obligations consist of supplier agreements with long-term minimum material purchase requirements and freight forwarding arrangements with minimum quantity commitments. As of March 30, 2024, the Company had unconditional purchase obligations of $326.2 million, consisting of $101.0 million in 2024, $151.1 million in 2025, $41.1 million in 2026, $25.7 million in 2027 and $7.3 million in 2028. GUARANTEES — The Company’s financial guarantees at March 30, 2024 are as follows: (Millions of Dollars) Term Maximum Carrying Guarantees on the residual values of leased assets One $ 157.4 $ — Standby letters of credit Up to twenty years 182.6 — Commercial customer financing arrangements Up to six years 90.7 15.0 Total $ 430.7 $ 15.0 The Company has guaranteed a portion of the residual values associated with certain of its variable rate leases. The lease guarantees are for an amount up to $157.4 million while the fair value of the underlying assets is estimated at $210.5 million. The related assets would be available to satisfy the guarantee obligations. The Company has issued $182.6 million in standby letters of credit that guarantee future payments which may be required under certain insurance programs and in relation to certain environmental remediation activities described more fully in Note O, Contingencies . 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 $90.7 million and the $15.0 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. There are also certain products with no warranty. Further, the Company sometimes incurs discretionary costs to service its products in connection with product performance issues. Historical warranty and service claim experience forms the basis for warranty obligations recognized. Adjustments are recorded to the warranty liability as new information becomes available. The changes in the carrying amount of product warranties for the three months ended March 30, 2024 and April 1, 2023 are as follows: (Millions of Dollars) 2024 2023 Balance beginning of period $ 136.7 $ 126.6 Warranties and guarantees issued 46.6 39.3 Warranty payments and currency (39.9) (41.1) Balance end of period $ 143.4 $ 124.8 |
DIVESTITURES
DIVESTITURES | 3 Months Ended |
Mar. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DIVESTITURES | DIVESTITURES Infrastructure business On April 1, 2024, the Company completed the previously announced sale of its Infrastructure business to Epiroc AB for $760 million. The Company received proceeds of $728.5 million at closing, net of customary adjustments and costs. As of March 30, 2024 and December 30, 2023, the assets and liabilities related to the Infrastructure business were classified as held for sale on the Company's Condensed Consolidated Balance Sheet. This divestiture does not qualify for discontinued operations and therefore, its results are included in the Company's Consolidated Statements of Operations and Comprehensive Loss for all periods presented. Following is the pre-tax income for this business for the first three months ended March 30, 2024, and April 1, 2023: (Millions of Dollars) 2024 2023 Pre-tax income $ 9.6 $ 18.0 In addition, the Company recognized pre-tax asset impairment charges of $25.5 million and $150.8 million in the first quarter of 2024 and fourth quarter of 2023, respectively, to adjust the carrying amount of the long-lived assets of the Infrastructure business to its estimated fair value less the costs to sell. The carrying amounts of the assets and liabilities that were aggregated in assets held for sale and liabilities held for sale as of March 30, 2024 and December 30, 2023 are presented in the following table: (Millions of Dollars) March 30, 2024 December 30, 2023 Cash and cash equivalents $ 3.3 $ 0.6 Accounts and notes receivable, net 43.0 41.3 Inventories, net 87.7 96.5 Other current assets 2.3 2.4 Property, plant and equipment, net 71.4 70.4 Goodwill 363.3 389.7 Intangibles, net 214.2 214.3 Other assets 42.3 42.4 Total assets $ 827.5 $ 857.6 Accounts payable and accrued expenses $ 45.0 $ 44.1 Other long-term liabilities 83.4 84.8 Total liabilities $ 128.4 $ 128.9 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Pay vs Performance Disclosure | ||
Net earnings (loss) | $ 19.5 | $ (187.8) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
Use of Estimates | 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. |
Reclassifications | Certain amounts reported in previous years have been reclassified to conform to the 2024 presentation. |
New Accounting Standards Adopted and Recently Issued Accounting Standards Not Yet Adopted | NEW ACCOUNTING STANDARDS ADOPTED — In June 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . The new standard clarifies that a contractual restriction on the sale of an equity security should not be considered in measuring the fair value of the security. The new standard also requires certain disclosures related to equity securities with contractual sale restrictions. The ASU is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The Company adopted this standard in the first quarter of 2024 and it did not have a material impact on its consolidated financial statements. RECENTLY ISSUED ACCOUNTING STANDARDS NOT YET ADOPTED — In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The new standard was issued to improve transparency and decision usefulness of income tax disclosures by providing information that helps investors better understand how an entity’s operations, tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The amendments in this update primarily relate to requiring greater disaggregated disclosure of information in the rate reconciliation, income taxes paid, income (loss) from continuing operations before income tax expense (benefit), and income tax expense (benefit) from continuing operations. The ASU is effective for fiscal years beginning after December 15, 2024, and early adoption is permitted. The standard can be applied prospectively or retrospectively. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The new standard provides improvements to reportable segment disclosure requirements through amendments that require disclosure of significant segment expenses and other segment items on an interim and annual basis and requires all annual disclosures about a reportable segment’s profit or loss and assets to be made on an interim basis. The standard also requires the disclosure of the chief operating decision maker’s (“CODM”) title and position and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The standard also clarifies that if the CODM uses more than one measure in assessing segment performance and deciding how to allocate resources, a company may report the additional segment profit or loss measure(s) and that companies with a single reportable segment must provide all disclosures required by this amendment. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The standard should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table reconciles net earnings (loss) and the weighted-average shares outstanding used to calculate basic and diluted earnings (loss) per share of common stock for the three months ended March 30, 2024 and April 1, 2023: Year-to-Date 2024 2023 Numerator (in millions): Net earnings (loss) $ 19.5 $ (187.8) Denominator (in thousands): Basic weighted-average shares outstanding 150,235 149,574 Dilutive effect of stock contracts and awards 706 — Diluted weighted-average shares outstanding 150,941 149,574 Earnings (loss) per share of common stock: Basic $ 0.13 $ (1.26) Diluted $ 0.13 $ (1.26) |
Schedule of Antidilutive Securities Excluded From Computation of Earnings | The following weighted-average stock options were not included in the computation of weighted-average diluted shares outstanding because the effect would be anti-dilutive (in thousands): Year-to-Date 2024 2023 Number of stock options 4,995 5,735 |
ACCOUNTS AND NOTES RECEIVABLE_2
ACCOUNTS AND NOTES RECEIVABLE, NET (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | (Millions of Dollars) March 30, 2024 December 30, 2023 Trade accounts receivable $ 1,480.6 $ 1,057.8 Notes receivable 64.8 66.9 Other accounts receivable 238.4 253.9 Accounts and notes receivable $ 1,783.8 $ 1,378.6 Allowance for credit losses (74.9) (76.6) Accounts and notes receivable, net $ 1,708.9 $ 1,302.0 |
Accounts Receivable, Allowance for Credit Loss | The changes in the allowance for credit losses for the three months ended March 30, 2024 and April 1, 2023 are as follows: Year-to-Date (Millions of Dollars) 2024 2023 Beginning balance $ 76.6 $ 106.6 Charged to costs and expenses (0.2) 2.1 Other, including recoveries and deductions (a) (1.5) (2.9) Balance end of period $ 74.9 $ 105.8 (a) Amounts represent charge-offs less recoveries, the impacts of foreign currency translation, divestitures and net transfers to/from other accounts. |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | (Millions of Dollars) March 30, 2024 December 30, 2023 Finished products $ 2,945.9 $ 2,912.5 Work in process 303.3 263.4 Raw materials 1,444.1 1,562.7 Total $ 4,693.3 $ 4,738.6 |
GOODWILL (Tables)
GOODWILL (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [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 & Outdoor Industrial Total Balance December 30, 2023 $ 5,976.3 $ 2,019.6 $ 7,995.9 Foreign currency translation & other (33.6) (7.6) (41.2) Balance March 30, 2024 $ 5,942.7 $ 2,012.0 $ 7,954.7 |
LONG-TERM DEBT AND FINANCING _2
LONG-TERM DEBT AND FINANCING ARRANGEMENTS (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Financing Arrangements | March 30, 2024 December 30, 2023 (Millions of Dollars) Interest Rate Notional Value Unamortized Discount Unamortized Gain/(Loss) Terminated Swaps 1 Purchase Accounting FV Adjustment Deferred Financing Fees Carrying Value Carrying Value Notes payable due 2025 2.30% $ 500.0 $ (0.2) $ — $ — $ (0.8) $ 499.0 $ 498.7 Notes payable due 2026 3.40% 500.0 (0.2) — — (0.8) 499.0 498.9 Notes payable due 2026 6.27% 350.0 — — — (1.2) 348.8 348.6 Notes payable due 2026 3.42% 25.0 — — 0.9 — 25.9 26.0 Notes payable due 2026 1.84% 27.0 — — 0.9 (0.1) 27.8 28.5 Notes payable due 2028 6.00% 400.0 (0.4) — — (2.0) 397.6 397.5 Notes payable due 2028 7.05% 150.0 — 4.7 4.5 — 159.2 159.7 Notes payable due 2028 4.25% 500.0 (0.1) — — (2.0) 497.9 497.7 Notes payable due 2028 3.52% 50.0 — — 3.1 (0.2) 52.9 53.1 Notes payable due 2030 2.30% 750.0 (1.5) — — (3.1) 745.4 745.3 Notes payable due 2032 3.00% 500.0 (0.7) — — (2.8) 496.5 496.3 Notes payable due 2040 5.20% 400.0 (0.2) (24.3) — (2.2) 373.3 372.9 Notes payable due 2048 4.85% 500.0 (0.5) — — (4.5) 495.0 495.0 Notes payable due 2050 2.75% 750.0 (1.7) — — (7.5) 740.8 740.7 Notes payable due 2060 (junior subordinated) 4.00% 750.0 — — — (8.5) 741.5 741.4 Other, payable in varying amounts 2024 through 2027 4.10%-4.31% 1.5 — — — — 1.5 1.8 Total Long-term debt, including current maturities $ 6,153.5 $ (5.5) $ (19.6) $ 9.4 $ (35.7) $ 6,102.1 $ 6,102.1 Less: Current maturities of long-term debt (500.0) (1.1) Long-term debt $ 5,602.1 $ 6,101.0 1 Unamortized gain/(loss) associated with interest rate swaps are more fully discussed in Note H, Financial Instruments. |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [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 March 30, 2024 and December 30, 2023 is as follows: (Millions of Dollars) Balance Sheet March 30, 2024 December 30, 2023 Balance Sheet March 30, 2024 December 30, 2023 Derivatives designated as hedging instruments: Foreign Exchange Contracts Cash Flow Other current assets $ 2.9 $ 0.1 Accrued expenses $ 0.3 $ 4.9 Non-derivative designated as hedging instrument: Net Investment Hedge $ — $ — Short-term borrowings $ 357.1 $ 399.7 Total designated as hedging instruments $ 2.9 $ 0.1 $ 357.4 $ 404.6 Derivatives not designated as hedging instruments: Foreign Exchange Contracts Other current assets $ 5.4 $ 8.4 Accrued expenses $ 8.6 $ 13.0 Total $ 8.3 $ 8.5 $ 366.0 $ 417.6 |
Detail Pre-tax Amounts Reclassified from Accumulated Other Comprehensive Loss into Earnings | The tables below detail pre-tax amounts of derivatives designated as cash flow hedges in Accumulated other comprehensive loss during the periods in which the underlying hedged transactions affected earnings for the three months ended March 30, 2024 and April 1, 2023: Year-to-Date 2024 (Millions of Dollars) Gain (Loss) Classification of Gain (Loss) Gain (Loss) Interest Rate Contracts $ — Interest expense $ (1.5) $ — Foreign Exchange Contracts $ 7.0 Cost of sales $ 1.7 $ — Year-to-Date 2023 (Millions of Dollars) Gain (Loss) Classification of Gain (Loss) Gain (Loss) Interest Rate Contracts $ — Interest expense $ (1.5) $ — Foreign Exchange Contracts $ (2.6) Cost of sales $ 0.6 $ — A summary of the pre-tax effect of cash flow hedge accounting on the Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 30, 2024 and April 1, 2023 is as follows: Year-to-Date 2024 (Millions of Dollars) Cost of Sales Interest Expense Total amount in the Consolidated Statements of Operations and Comprehensive Loss in which the effects of the cash flow hedges are recorded $ 2,761.0 $ 131.5 Gain (loss) on cash flow hedging relationships: Foreign Exchange Contracts: Hedged Items $ (1.7) $ — Gain (loss) reclassified from OCI into Income $ 1.7 $ — Interest Rate Swap Agreements: Gain (loss) reclassified from OCI into Income 1 $ — $ (1.5) Year-to-Date 2023 (Millions of Dollars) Cost of Sales Interest Expense Total amount in the Consolidated Statements of Operations and Comprehensive Loss in which the effects of the cash flow hedges are recorded $ 3,096.3 $ 130.9 Gain (loss) on cash flow hedging relationships: Foreign Exchange Contracts: Hedged Items $ (0.6) $ — Gain (loss) reclassified from OCI into Income $ 0.6 $ — Interest Rate Swap Agreements: Gain (loss) reclassified from OCI into Income 1 $ — $ (1.5) 1 Inclusive of the gain/loss amortization on terminated derivative financial instruments. |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | A summary of the pre-tax effect of fair value hedge accounting on the Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 30, 2024 and April 1, 2023 is as follows: (Millions of Dollars) Year-to-Date 2024 Total amount in the Consolidated Statements of Operations and Comprehensive Loss in which the effects of the fair value hedges are recorded $ 131.5 Amortization of gain on terminated swaps $ (0.1) (Millions of Dollars) Year-to-Date 2023 Total amount in the Consolidated Statements of Operations and Comprehensive Loss in which the effects of the fair value hedges are recorded $ 130.9 Amortization of gain on terminated swaps $ (0.1) A summary of the amounts recorded in the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of March 30, 2024 and December 30, 2023 is as follows: March 30, 2024 (Millions of Dollars) Carrying Amount of Hedged Liability (1) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability Current Maturities of Long-Term Debt $ 500.0 Terminated Swaps $ — Long-Term Debt $ 532.5 Terminated Swaps $ (19.6) December 30, 2023 (Millions of Dollars) Carrying Amount of Hedged Liability (1) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability Current Maturities of Long-Term Debt $ 1.1 Terminated Swaps $ — Long-Term Debt $ 532.6 Terminated Swaps $ (19.7) (1) Represents hedged items no longer designated in qualifying fair value hedging relationships. |
Schedule of Derivatives Pre-tax Gain or Loss from Fair Value Change | The pre-tax gain or loss from fair value changes for the three months ended March 30, 2024 and April 1, 2023 is as follows: Year-to-Date 2024 (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 $ (0.2) $ — Other, net $ — $ — Non-derivative designated as Net Investment Hedge $ 8.8 $ — Other, net $ — $ — Year-to-Date 2023 (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 $ 0.2 $ — Other, net $ — $ — Cross Currency Swap $ (0.1) $ — Other, net $ — $ — Non-derivative designated as Net Investment Hedge $ (12.6) $ — Other, net $ — $ — |
Income Statement Impacts Related to Derivatives Not Designated as Hedging Instruments | The loss recorded in the Consolidated Statements of Operations and Comprehensive Loss from changes in the fair value related to derivatives not designated as hedging instruments under ASC 815 for the three months ended March 30, 2024 and April 1, 2023 is as follows: (Millions of Dollars) Income Statement Classification Year-to-Date Year-to-Date Foreign Exchange Contracts Other, net $ (13.9) $ (1.0) |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Accumulated Other Comprehensive Income [Abstract] | |
Changes to the Components of Accumulated Other Comprehensive Loss | The following tables summarize the changes in the balances for each component of Accumulated other comprehensive loss: (Millions of Dollars) Currency translation adjustment and other (Losses) gains on cash flow hedges, net of tax Gains on net investment hedges, net of tax Pension (losses) gains, net of tax Total Balance - December 30, 2023 $ (1,832.3) $ (42.5) $ 64.9 $ (259.2) $ (2,069.1) Other comprehensive (loss) income before reclassifications (130.8) 5.1 6.5 1.0 (118.2) Reclassification adjustments to earnings — (0.1) — 2.1 2.0 Net other comprehensive (loss) income (130.8) 5.0 6.5 3.1 (116.2) Balance - March 30, 2024 $ (1,963.1) $ (37.5) $ 71.4 $ (256.1) $ (2,185.3) (Millions of Dollars) Currency translation adjustment and other (Losses) gains on cash flow hedges, net of tax Gains (losses) on net investment hedges, net of tax Pension (losses) gains, net of tax Total Balance - December 31, 2022 $ (1,907.4) $ (44.5) $ 73.8 $ (241.4) $ (2,119.5) Other comprehensive income (loss) before reclassifications 64.0 (1.8) (9.4) (2.6) 50.2 Reclassification adjustments to earnings — 0.5 — 2.1 2.6 Net other comprehensive income (loss) 64.0 (1.3) (9.4) (0.5) 52.8 Balance -April 1, 2023 $ (1,843.4) $ (45.8) $ 64.4 $ (241.9) $ (2,066.7) |
Reclassifications out of Accumulated Other Comprehensive Loss | The reclassifications out of Accumulated other comprehensive loss for the three months ended March 30, 2024 and April 1, 2023 were as follows: (Millions of Dollars) 2024 2023 Affected line item in Consolidated Statements of Operations And Comprehensive Loss Realized gains on cash flow hedges $ 1.7 $ 0.6 Cost of sales Realized losses on cash flow hedges (1.5) (1.5) Interest expense Total before taxes $ 0.2 $ (0.9) Tax effect (0.1) 0.4 Income taxes Realized gains (losses) on cash flow hedges, net of tax $ 0.1 $ (0.5) Amortization of defined benefit pension items: Actuarial losses and prior service costs / credits $ (2.8) $ (2.7) Other, net Tax effect 0.7 0.6 Income taxes Amortization of defined benefit pension items, net of tax $ (2.1) $ (2.1) |
NET PERIODIC BENEFIT COST - D_2
NET PERIODIC BENEFIT COST - DEFINED BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | Following are the components of net periodic pension expense for the three months ended March 30, 2024 and April 1, 2023: Year-to-Date Pension Benefits Other Benefits U.S. Plans Non-U.S. Plans All Plans (Millions of Dollars) 2024 2023 2024 2023 2024 2023 Service cost $ 1.6 $ 2.0 $ 3.1 $ 2.8 $ 0.1 $ 0.1 Interest cost 12.9 13.5 10.4 10.6 0.4 0.5 Expected return on plan assets (15.2) (15.5) (10.9) (10.1) — — Amortization of prior service cost (credit) 0.2 0.2 (0.2) (0.2) — — Amortization of net loss (gain) 2.0 2.2 1.1 0.8 (0.3) (0.3) Net periodic pension expense $ 1.5 $ 2.4 $ 3.5 $ 3.9 $ 0.2 $ 0.3 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the Company’s financial assets and liabilities that are measured at fair value on a recurring basis for each of the hierarchy levels: (Millions of Dollars) Total Level 1 Level 2 Level 3 March 30, 2024 Money market fund $ 13.9 $ 13.9 $ — $ — Deferred compensation plan investments $ 15.9 $ 15.9 $ — $ — Derivative assets $ 8.3 $ — $ 8.3 $ — Derivative liabilities $ 8.9 $ — $ 8.9 $ — Non-derivative hedging instrument $ 357.1 $ — $ 357.1 $ — Contingent consideration liability $ 203.4 $ — $ — $ 203.4 December 30, 2023 Money market fund $ 12.3 $ 12.3 $ — $ — Deferred compensation plan investments $ 20.2 $ 20.2 $ — $ — Derivative assets $ 8.5 $ — $ 8.5 $ — Derivative liabilities $ 17.9 $ — $ 17.9 $ — Non-derivative hedging instrument $ 399.7 $ — $ 399.7 $ — Contingent consideration liability $ 208.8 $ — $ — $ 208.8 |
Summary of Financial Instruments Carrying and Fair Values | The following table provides information about the Company's financial assets and liabilities not carried at fair value: March 30, 2024 December 30, 2023 (Millions of Dollars) Carrying Fair Carrying Fair Other investments $ 4.0 $ 3.9 $ 6.0 $ 5.8 Long-term debt, including current portion $ 6,102.1 $ 5,468.4 $ 6,102.1 $ 5,512.8 |
RESTRUCTURING CHARGES AND OTH_2
RESTRUCTURING CHARGES AND OTHER COSTS (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Reserve Activity | A summary of the restructuring reserve activity from December 30, 2023 to March 30, 2024 is as follows: (Millions of Dollars) December 30, Net Additions Usage Currency March 30, Severance and related costs $ 25.8 $ 13.3 $ (6.6) $ 0.4 $ 32.9 Facility closures and other 3.1 1.7 (3.4) — 1.4 Total $ 28.9 $ 15.0 $ (10.0) $ 0.4 $ 34.3 |
BUSINESS SEGMENTS AND GEOGRAP_2
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | Year-to-Date (Millions of Dollars) 2024 2023 Net Sales Tools & Outdoor $ 3,284.6 $ 3,315.4 Industrial 584.9 616.4 Consolidated $ 3,869.5 $ 3,931.8 Segment Profit Tools & Outdoor $ 255.7 $ 18.7 Industrial 65.2 67.4 Segment Profit 320.9 86.1 Corporate Overhead (64.2) (75.7) Other, net (80.0) (63.7) Loss on sales of businesses — (7.6) Asset impairment charge (25.5) — Restructuring charges (15.0) (12.1) Interest income 43.6 39.8 Interest expense (131.5) (130.9) Earnings (loss) before income taxes $ 48.3 $ (164.1) |
Business Segments | The following table is a further disaggregation of the Industrial segment revenue for the three months ended March 30, 2024 and April 1, 2023: Year-to-Date (Millions of Dollars) 2024 2023 Engineered Fastening $ 492.3 $ 476.3 Infrastructure 92.6 140.1 Industrial $ 584.9 $ 616.4 |
Summary of Total Assets by Segment | The following table is a summary of total assets by segment as of March 30, 2024 and December 30, 2023: (Millions of Dollars) March 30, 2024 December 30, 2023 Tools & Outdoor $ 19,080.9 $ 18,960.8 Industrial 4,071.4 4,081.7 23,152.3 23,042.5 Assets held for sale 827.5 857.6 Corporate assets (125.9) (236.3) Consolidated $ 23,853.9 $ 23,663.8 |
Summary of Net Sales by Geographic Area | The following table is a summary of net sales by geographic area for the three months ended March 30, 2024 and April 1, 2023: Year-to-Date (Millions of Dollars) 2024 2023 United States $ 2,357.3 $ 2,422.4 Canada 215.9 218.3 Other Americas 209.5 193.4 Europe 788.7 783.7 Asia 298.1 314.0 Consolidated $ 3,869.5 $ 3,931.8 |
COMMITMENTS AND GUARANTEES (Tab
COMMITMENTS AND GUARANTEES (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Commitments and Guarantees [Abstract] | |
Summary of Right-of-Use Assets and Lease Liabilities | The following is a summary of the Company's right-of-use assets and lease liabilities: (Millions of Dollars) March 30, 2024 December 30, 2023 Right-of-use assets $489.4 $502.9 Lease liabilities $494.9 $506.6 Weighted-average incremental borrowing rate 4.7% 4.6% Weighted-average remaining term 6 years 7 years |
Financial Guarantees | The Company’s financial guarantees at March 30, 2024 are as follows: (Millions of Dollars) Term Maximum Carrying Guarantees on the residual values of leased assets One $ 157.4 $ — Standby letters of credit Up to twenty years 182.6 — Commercial customer financing arrangements Up to six years 90.7 15.0 Total $ 430.7 $ 15.0 |
Changes in Carrying Amount of Product and Service Warranties | The changes in the carrying amount of product warranties for the three months ended March 30, 2024 and April 1, 2023 are as follows: (Millions of Dollars) 2024 2023 Balance beginning of period $ 136.7 $ 126.6 Warranties and guarantees issued 46.6 39.3 Warranty payments and currency (39.9) (41.1) Balance end of period $ 143.4 $ 124.8 |
DIVESTITURES (Tables)
DIVESTITURES (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Pre Tax Losses | Following is the pre-tax income for this business for the first three months ended March 30, 2024, and April 1, 2023: (Millions of Dollars) 2024 2023 Pre-tax income $ 9.6 $ 18.0 |
Schedule of Discontinued Operations | The carrying amounts of the assets and liabilities that were aggregated in assets held for sale and liabilities held for sale as of March 30, 2024 and December 30, 2023 are presented in the following table: (Millions of Dollars) March 30, 2024 December 30, 2023 Cash and cash equivalents $ 3.3 $ 0.6 Accounts and notes receivable, net 43.0 41.3 Inventories, net 87.7 96.5 Other current assets 2.3 2.4 Property, plant and equipment, net 71.4 70.4 Goodwill 363.3 389.7 Intangibles, net 214.2 214.3 Other assets 42.3 42.4 Total assets $ 827.5 $ 857.6 Accounts payable and accrued expenses $ 45.0 $ 44.1 Other long-term liabilities 83.4 84.8 Total liabilities $ 128.4 $ 128.9 |
EARNINGS PER SHARE - Reconcilia
EARNINGS PER SHARE - Reconciliation of Net Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Numerator (in millions): | ||
Net earnings (loss) | $ 19.5 | $ (187.8) |
Denominator (in thousands): | ||
Basic weighted-average shares outstanding (in shares) | 150,235 | 149,574 |
Dilutive effect of stock contracts and awards (in shares) | 706 | 0 |
Diluted weighted-average shares outstanding (in shares) | 150,941 | 149,574 |
Earnings (loss) per share of common stock: | ||
Basic (in dollars per share) | $ 0.13 | $ (1.26) |
Diluted (in shares) | $ 0.13 | $ (1.26) |
Number of stock options (in shares) | 4,995 | 5,735 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) $ in Millions | 1 Months Ended |
Mar. 31, 2015 USD ($) shares | |
Earnings Per Share [Abstract] | |
Forward share purchase contract (in shares) | shares | 3,645,510 |
Forward share purchase contract | $ | $ 350 |
ACCOUNTS AND NOTES RECEIVABLE_3
ACCOUNTS AND NOTES RECEIVABLE, NET - Schedule of Accounts Receivable (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Receivables [Abstract] | ||
Trade accounts receivable | $ 1,480.6 | $ 1,057.8 |
Notes receivable | 64.8 | 66.9 |
Other accounts receivable | 238.4 | 253.9 |
Accounts and notes receivable | 1,783.8 | 1,378.6 |
Allowance for credit losses | (74.9) | (76.6) |
Accounts and notes receivable, net | $ 1,708.9 | $ 1,302 |
ACCOUNTS AND NOTES RECEIVABLE_4
ACCOUNTS AND NOTES RECEIVABLE, NET - Schedule of Changes in Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 76.6 | $ 106.6 |
Charged to costs and expenses | (0.2) | 2.1 |
Other, including recoveries and deductions | (1.5) | (2.9) |
Balance end of period | $ 74.9 | $ 105.8 |
ACCOUNTS AND NOTES RECEIVABLE_5
ACCOUNTS AND NOTES RECEIVABLE, NET - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Dec. 30, 2023 | |
Receivables [Abstract] | |||
Cash investment purchaser allowed to have in transferors receivables | $ 110 | ||
Net receivables derecognized | 64.4 | $ 110 | |
Proceeds from transfers of receivables to the purchaser | 59.6 | $ 56.9 | |
Payment to the purchaser | 105.2 | 106.3 | |
Pre-tax program loss | 1.2 | 1 | |
Deferred revenue | 116.7 | 116.8 | |
Deferred revenue, current | 33.6 | $ 31.7 | |
Deferred revenue recognized | $ 5.9 | $ 7.7 |
INVENTORIES, NET (Details)
INVENTORIES, NET (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 2,945.9 | $ 2,912.5 |
Work in process | 303.3 | 263.4 |
Raw materials | 1,444.1 | 1,562.7 |
Total | $ 4,693.3 | $ 4,738.6 |
GOODWILL - Changes in Carrying
GOODWILL - Changes in Carrying Amount of Goodwill by Segment (Details) $ in Millions | 3 Months Ended |
Mar. 30, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | $ 7,995.9 |
Foreign currency translation & other | (41.2) |
Goodwill ending balance | 7,954.7 |
Tools & Outdoor | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | 5,976.3 |
Foreign currency translation & other | (33.6) |
Goodwill ending balance | 5,942.7 |
Industrial | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | 2,019.6 |
Foreign currency translation & other | (7.6) |
Goodwill ending balance | $ 2,012 |
GOODWILL - Additional Informati
GOODWILL - Additional Information (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Discontinued Operations, Held-for-sale | Infrastructure Reporting Unit | ||
Goodwill [Line Items] | ||
Held for sale, goodwill | $ 539.6 | $ 540.5 |
LONG-TERM DEBT AND FINANCING _3
LONG-TERM DEBT AND FINANCING ARRANGEMENTS - Schedule of Long-term Debt (Details) - USD ($) | 3 Months Ended | ||
Mar. 30, 2024 | Dec. 30, 2023 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | |||
Notional Value | $ 6,153,500,000 | ||
Unamortized Discount | (5,500,000) | ||
Unamortized Gain/(Loss) Terminated Swaps | (19,600,000) | ||
Purchase Accounting FV Adjustment | 9,400,000 | ||
Deferred Financing Fees | (35,700,000) | ||
Carrying Value | 6,102,100,000 | $ 6,102,100,000 | |
Less: Current maturities of long-term debt | (500,000,000) | (1,100,000) | |
Long-term debt | $ 5,602,100,000 | 6,101,000,000 | |
Notes 2.30% Due in 2025 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 2.30% | ||
Notional Value | $ 500,000,000 | ||
Unamortized Discount | (200,000) | ||
Unamortized Gain/(Loss) Terminated Swaps | 0 | ||
Purchase Accounting FV Adjustment | 0 | ||
Deferred Financing Fees | (800,000) | ||
Carrying Value | $ 499,000,000 | 498,700,000 | |
Notes 3.4% Due in 2026 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.40% | ||
Notional Value | $ 500,000,000 | ||
Unamortized Discount | (200,000) | ||
Unamortized Gain/(Loss) Terminated Swaps | 0 | ||
Purchase Accounting FV Adjustment | 0 | ||
Deferred Financing Fees | (800,000) | ||
Carrying Value | $ 499,000,000 | 498,900,000 | |
Notes 6.27% Due in 2026 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 6.27% | 6.272% | |
Notional Value | $ 350,000,000 | $ 350,000,000 | |
Unamortized Discount | 0 | ||
Unamortized Gain/(Loss) Terminated Swaps | 0 | ||
Purchase Accounting FV Adjustment | 0 | ||
Deferred Financing Fees | (1,200,000) | ||
Carrying Value | $ 348,800,000 | 348,600,000 | |
Notes 3.42% Due in 2026 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.42% | ||
Notional Value | $ 25,000,000 | ||
Unamortized Discount | 0 | ||
Unamortized Gain/(Loss) Terminated Swaps | 0 | ||
Purchase Accounting FV Adjustment | 900,000 | ||
Deferred Financing Fees | 0 | ||
Carrying Value | $ 25,900,000 | 26,000,000 | |
Notes 1.84% Due in 2026 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 1.84% | ||
Notional Value | $ 27,000,000 | ||
Unamortized Discount | 0 | ||
Unamortized Gain/(Loss) Terminated Swaps | 0 | ||
Purchase Accounting FV Adjustment | 900,000 | ||
Deferred Financing Fees | (100,000) | ||
Carrying Value | $ 27,800,000 | 28,500,000 | |
Notes 6.00% Due in 2028 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 6% | 6% | |
Notional Value | $ 400,000,000 | $ 400,000,000 | |
Unamortized Discount | (400,000) | ||
Unamortized Gain/(Loss) Terminated Swaps | 0 | ||
Purchase Accounting FV Adjustment | 0 | ||
Deferred Financing Fees | (2,000,000) | ||
Carrying Value | $ 397,600,000 | 397,500,000 | |
Notes 7.05% Due 2028 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 7.05% | ||
Notional Value | $ 150,000,000 | ||
Unamortized Discount | 0 | ||
Unamortized Gain/(Loss) Terminated Swaps | 4,700,000 | ||
Purchase Accounting FV Adjustment | 4,500,000 | ||
Deferred Financing Fees | 0 | ||
Carrying Value | $ 159,200,000 | 159,700,000 | |
Notes 4.25% Due 2028 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.25% | ||
Notional Value | $ 500,000,000 | ||
Unamortized Discount | (100,000) | ||
Unamortized Gain/(Loss) Terminated Swaps | 0 | ||
Purchase Accounting FV Adjustment | 0 | ||
Deferred Financing Fees | (2,000,000) | ||
Carrying Value | $ 497,900,000 | 497,700,000 | |
Notes 3.52% Due in 2028 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.52% | ||
Notional Value | $ 50,000,000 | ||
Unamortized Discount | 0 | ||
Unamortized Gain/(Loss) Terminated Swaps | 0 | ||
Purchase Accounting FV Adjustment | 3,100,000 | ||
Deferred Financing Fees | (200,000) | ||
Carrying Value | $ 52,900,000 | 53,100,000 | |
Notes 2.30% Due 2030 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 2.30% | ||
Notional Value | $ 750,000,000 | ||
Unamortized Discount | (1,500,000) | ||
Unamortized Gain/(Loss) Terminated Swaps | 0 | ||
Purchase Accounting FV Adjustment | 0 | ||
Deferred Financing Fees | (3,100,000) | ||
Carrying Value | $ 745,400,000 | 745,300,000 | |
Notes 3.00% Due in 2032 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3% | ||
Notional Value | $ 500,000,000 | ||
Unamortized Discount | (700,000) | ||
Unamortized Gain/(Loss) Terminated Swaps | 0 | ||
Purchase Accounting FV Adjustment | 0 | ||
Deferred Financing Fees | (2,800,000) | ||
Carrying Value | $ 496,500,000 | 496,300,000 | |
Notes 5.20% Due 2040 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.20% | ||
Notional Value | $ 400,000,000 | ||
Unamortized Discount | (200,000) | ||
Unamortized Gain/(Loss) Terminated Swaps | (24,300,000) | ||
Purchase Accounting FV Adjustment | 0 | ||
Deferred Financing Fees | (2,200,000) | ||
Carrying Value | $ 373,300,000 | 372,900,000 | |
Notes 4.85% Due 2048 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.85% | ||
Notional Value | $ 500,000,000 | ||
Unamortized Discount | (500,000) | ||
Unamortized Gain/(Loss) Terminated Swaps | 0 | ||
Purchase Accounting FV Adjustment | 0 | ||
Deferred Financing Fees | (4,500,000) | ||
Carrying Value | $ 495,000,000 | 495,000,000 | |
Notes 2.75% Due 2050 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 2.75% | ||
Notional Value | $ 750,000,000 | ||
Unamortized Discount | (1,700,000) | ||
Unamortized Gain/(Loss) Terminated Swaps | 0 | ||
Purchase Accounting FV Adjustment | 0 | ||
Deferred Financing Fees | (7,500,000) | ||
Carrying Value | 740,800,000 | 740,700,000 | |
Other, payable in varying amounts 2024 through 2027 | |||
Debt Instrument [Line Items] | |||
Notional Value | 1,500,000 | ||
Unamortized Discount | 0 | ||
Unamortized Gain/(Loss) Terminated Swaps | 0 | ||
Purchase Accounting FV Adjustment | 0 | ||
Deferred Financing Fees | 0 | ||
Carrying Value | $ 1,500,000 | 1,800,000 | |
Other, payable in varying amounts 2024 through 2027 | Minimum | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.10% | ||
Other, payable in varying amounts 2024 through 2027 | Maximum | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.31% | ||
Junior Subordinated Debt | Notes 4.00% Due in 2060 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4% | ||
Notional Value | $ 750,000,000 | ||
Unamortized Discount | 0 | ||
Unamortized Gain/(Loss) Terminated Swaps | 0 | ||
Purchase Accounting FV Adjustment | 0 | ||
Deferred Financing Fees | (8,500,000) | ||
Carrying Value | $ 741,500,000 | $ 741,400,000 |
LONG-TERM DEBT AND FINANCING _4
LONG-TERM DEBT AND FINANCING ARRANGEMENTS - Additional Information (Details) | 1 Months Ended | 3 Months Ended | |||||
Jan. 31, 2023 | Sep. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Feb. 28, 2023 USD ($) | Mar. 30, 2024 USD ($) | Apr. 01, 2023 USD ($) | Dec. 30, 2023 USD ($) | |
Debt Instrument [Line Items] | |||||||
Face amount of debt | $ 6,153,500,000 | ||||||
Proceeds from debt issuances, net of fees | $ 745,300,000 | 0 | $ 747,200,000 | ||||
Underwriting expenses and other fees | 4,700,000 | ||||||
Maximum borrowing capacity | 3,500,000,000 | ||||||
Commercial paper, outstanding | 1,700,000,000 | $ 1,100,000,000 | |||||
Debt instrument, adjustment addback amount | $ 500,000,000 | ||||||
Lower minimum interest coverage ratio | 3.5 | 1.5 | |||||
Debt instrument, minimum interest coverage ratio | 3.5 | ||||||
Designated as Hedging Instrument | |||||||
Debt Instrument [Line Items] | |||||||
Commercial paper, outstanding | 357,100,000 | $ 399,700,000 | |||||
Commercial Paper | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 3,500,000,000 | ||||||
Notes 6.27% Due in 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt | $ 350,000,000 | $ 350,000,000 | |||||
Interest rate | 6.272% | 6.27% | |||||
Notes 6.00% Due in 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of debt | $ 400,000,000 | $ 400,000,000 | |||||
Interest rate | 6% | 6% | |||||
5 Year Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, term | 5 years | 5 years | 5 years | ||||
Five-year commercial credit facility | $ 2,500,000,000 | ||||||
Amount outstanding | 0 | $ 0 | |||||
Committed Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Amount of credit facility foreign currency sublimit | 814,300,000 | ||||||
2023 Syndicated 364-Day Credit Agreement | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 3,500,000,000 | ||||||
Long-term debt, term | 364 days | ||||||
Amount outstanding | $ 0 | $ 0 | |||||
Maximum borrowing capacity | $ 1,500,000,000 | ||||||
September 2023 Club Credit Agreement | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, term | 364 days | ||||||
Amount outstanding | $ 0 | ||||||
Extinguishment of debt | $ 500,000,000 |
FINANCIAL INSTRUMENTS - Summary
FINANCIAL INSTRUMENTS - Summary of Fair Value of Derivatives (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 8.3 | $ 8.5 |
Derivative liabilities | 366 | 417.6 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 2.9 | 0.1 |
Derivative liabilities | 357.4 | 404.6 |
Designated as Hedging Instrument | Cash Flow Hedges | Foreign Exchange Contracts Cash Flow | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 2.9 | 0.1 |
Designated as Hedging Instrument | Cash Flow Hedges | Foreign Exchange Contracts Cash Flow | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0.3 | 4.9 |
Designated as Hedging Instrument | Net Investment Hedge | Short-term borrowings | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 357.1 | 399.7 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts Cash Flow | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 5.4 | 8.4 |
Not Designated as Hedging Instrument | Foreign Exchange Contracts Cash Flow | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 8.6 | $ 13 |
FINANCIAL INSTRUMENTS - Additio
FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | Dec. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Payments for derivative instruments | $ 15,400,000 | $ 4,600,000 | |
Gain (loss) reclassified from accumulated other comprehensive loss into earnings | 100,000 | (500,000) | |
Foreign Exchange Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Accumulated other comprehensive gains | 71,400,000 | $ 64,900,000 | |
Forward Contracts | Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative notional amount | 1,000,000,000 | 1,000,000,000 | |
Cash Flow Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
After market-to-market losses | 37,500,000 | 42,500,000 | |
After tax gain to be reclassified to earnings | 1,900,000 | ||
Cash Flow Hedges | Foreign Exchange Forward | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative notional amount | 208,300,000 | 300,000,000 | |
Net Investment Hedge | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative notional amount | 357,100,000 | $ 399,700,000 | |
Net Investment Hedge | Foreign Exchange Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Payments for derivative instruments | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS - Derivat
FINANCIAL INSTRUMENTS - Derivatives Designated as Cash Flow Hedges in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Foreign Exchange Contract | Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from OCI to Income | $ 0 | $ 0 |
Foreign Exchange Contract | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from OCI to Income | 1.7 | 0.6 |
Cash Flow Hedges | Interest Rate Contracts | Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recorded in OCI | 0 | 0 |
Gain (Loss) Reclassified from OCI to Income | (1.5) | (1.5) |
Gain (Loss) Recognized in Income on Amounts Excluded from Effectiveness Testing | 0 | 0 |
Cash Flow Hedges | Foreign Exchange Contract | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recorded in OCI | 7 | (2.6) |
Gain (Loss) Reclassified from OCI to Income | 1.7 | 0.6 |
Gain (Loss) Recognized in Income on Amounts Excluded from Effectiveness Testing | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS - Pretax
FINANCIAL INSTRUMENTS - Pretax Effect of Cash Flow Hedge Accounting (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Derivative [Line Items] | ||
Cost of sales | $ 2,761 | $ 3,096.3 |
Interest expense | 131.5 | 130.9 |
Cost of Sales | Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Hedged Items | (1.7) | (0.6) |
Gain (loss) reclassified from OCI into Income | 1.7 | 0.6 |
Cost of Sales | Interest Rate Swap | ||
Derivative [Line Items] | ||
Gain (loss) reclassified from OCI into Income | 0 | 0 |
Interest Expense | Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Hedged Items | 0 | 0 |
Gain (loss) reclassified from OCI into Income | 0 | 0 |
Interest Expense | Interest Rate Swap | ||
Derivative [Line Items] | ||
Gain (loss) reclassified from OCI into Income | $ (1.5) | $ (1.5) |
FINANCIAL INSTRUMENTS - Preta_2
FINANCIAL INSTRUMENTS - Pretax Effect of Fair Value Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total amount in the Consolidated Statements of Operations and Comprehensive Loss in which the effects of the fair value hedges are recorded | $ 131.5 | $ 130.9 |
Fair Value Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amortization of gain on terminated swaps | $ (0.1) | $ (0.1) |
FINANCIAL INSTRUMENTS - Fair Va
FINANCIAL INSTRUMENTS - Fair Value Adjustments Relating to Swaps (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Current Maturities of Long-Term Debt | $ 500 | $ 1.1 |
Long-Term Debt | 532.5 | 532.6 |
Unamortized gain (loss) terminated swaps | (19.6) | |
Other Current Liabilities | Designated as Hedging Instrument | Fair Value Hedging | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Unamortized gain (loss) terminated swaps | 0 | 0 |
Long-term Debt | Designated as Hedging Instrument | Fair Value Hedging | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Unamortized gain (loss) terminated swaps | $ (19.6) | $ (19.7) |
FINANCIAL INSTRUMENTS - Details
FINANCIAL INSTRUMENTS - Details of Foreign Exchange Contracts Pre-Tax Amounts (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Non-derivative designated as net investment hedge, total gain (loss) recorded in OCI | $ 8.8 | $ (12.6) |
Non-derivative designated as net investment hedge, excluded component recorded in OCI | 0 | 0 |
Non derivative instruments, gain (loss) amortized from accumulated other comprehensive income into income, net | 0 | 0 |
Forward Contracts | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Total Gain (Loss) Recorded in OCI | (0.2) | 0.2 |
Excluded Component Recorded in OCI | 0 | 0 |
Other comprehensive income (loss), derivative, excluded component, increase (decrease), adjustments, before tax | 0 | 0 |
Cross Currency Swap | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Total Gain (Loss) Recorded in OCI | (0.1) | |
Excluded Component Recorded in OCI | 0 | |
Other comprehensive income (loss), derivative, excluded component, increase (decrease), adjustments, before tax | 0 | |
Other, net | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Non-derivative designated as net investment hedge, excluded component amortized from OCI to income | 0 | 0 |
Other, net | Forward Contracts | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Total Gain (Loss) Reclassified from OCI to Income | $ 0 | 0 |
Other, net | Cross Currency Swap | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Total Gain (Loss) Reclassified from OCI to Income | $ 0 |
FINANCIAL INSTRUMENTS - Undesig
FINANCIAL INSTRUMENTS - Undesignated Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Other, Net | Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Undesignated hedges | $ (13.9) | $ (1) |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Changes in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Accumulated other comprehensive (loss): | ||
Beginning balance | $ 9,056.1 | $ 9,714.2 |
Other comprehensive (loss) income before reclassifications | (118.2) | 50.2 |
Reclassification adjustments to earnings | 2 | 2.6 |
Net other comprehensive (loss) income | (116.2) | 52.8 |
Ending balance | 8,876.4 | 9,492.4 |
Accumulated Other Comprehensive Loss | ||
Accumulated other comprehensive (loss): | ||
Beginning balance | (2,069.1) | (2,119.5) |
Ending balance | (2,185.3) | (2,066.7) |
Currency translation adjustment and other | ||
Accumulated other comprehensive (loss): | ||
Beginning balance | (1,832.3) | (1,907.4) |
Other comprehensive (loss) income before reclassifications | (130.8) | 64 |
Reclassification adjustments to earnings | 0 | 0 |
Net other comprehensive (loss) income | (130.8) | 64 |
Ending balance | (1,963.1) | (1,843.4) |
(Losses) gains on cash flow hedges, net of tax | ||
Accumulated other comprehensive (loss): | ||
Beginning balance | (42.5) | (44.5) |
Other comprehensive (loss) income before reclassifications | 5.1 | (1.8) |
Reclassification adjustments to earnings | (0.1) | 0.5 |
Net other comprehensive (loss) income | 5 | (1.3) |
Ending balance | (37.5) | (45.8) |
Gains on net investment hedges, net of tax | ||
Accumulated other comprehensive (loss): | ||
Beginning balance | 64.9 | 73.8 |
Other comprehensive (loss) income before reclassifications | 6.5 | (9.4) |
Reclassification adjustments to earnings | 0 | 0 |
Net other comprehensive (loss) income | 6.5 | (9.4) |
Ending balance | 71.4 | 64.4 |
Pension (losses) gains, net of tax | ||
Accumulated other comprehensive (loss): | ||
Beginning balance | (259.2) | (241.4) |
Other comprehensive (loss) income before reclassifications | 1 | (2.6) |
Reclassification adjustments to earnings | 2.1 | 2.1 |
Net other comprehensive (loss) income | 3.1 | (0.5) |
Ending balance | $ (256.1) | $ (241.9) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassifications out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Cost of sales | $ 2,761 | $ 3,096.3 |
Interest expense | (131.5) | (130.9) |
Earnings (loss) before income taxes | 48.3 | (164.1) |
Other, net | 80 | 63.7 |
Income taxes | (28.8) | (23.7) |
Net earnings (loss) | 19.5 | (187.8) |
Reclassification of Accumulated Other Comprehensive Income | (Losses) gains on cash flow hedges, net of tax | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Cost of sales | 1.7 | 0.6 |
Interest expense | (1.5) | (1.5) |
Earnings (loss) before income taxes | 0.2 | (0.9) |
Income taxes | (0.1) | 0.4 |
Net earnings (loss) | 0.1 | (0.5) |
Reclassification of Accumulated Other Comprehensive Income | Pension (losses) gains, net of tax | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Income taxes | 0.7 | 0.6 |
Net earnings (loss) | (2.1) | (2.1) |
Reclassification of Accumulated Other Comprehensive Income | Actuarial losses and prior service costs / credits | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other, net | $ (2.8) | $ (2.7) |
NET PERIODIC BENEFIT COST - D_3
NET PERIODIC BENEFIT COST - DEFINED BENEFIT PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Pension Benefits | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 1.6 | $ 2 |
Interest cost | 12.9 | 13.5 |
Expected return on plan assets | (15.2) | (15.5) |
Amortization of prior service cost (credit) | 0.2 | 0.2 |
Amortization of net loss (gain) | 2 | 2.2 |
Net periodic pension expense | 1.5 | 2.4 |
Pension Benefits | Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 3.1 | 2.8 |
Interest cost | 10.4 | 10.6 |
Expected return on plan assets | (10.9) | (10.1) |
Amortization of prior service cost (credit) | (0.2) | (0.2) |
Amortization of net loss (gain) | 1.1 | 0.8 |
Net periodic pension expense | 3.5 | 3.9 |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.1 | 0.1 |
Interest cost | 0.4 | 0.5 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost (credit) | 0 | 0 |
Amortization of net loss (gain) | (0.3) | (0.3) |
Net periodic pension expense | $ 0.2 | $ 0.3 |
FAIR VALUE MEASUREMENTS - Finan
FAIR VALUE MEASUREMENTS - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 8.3 | $ 8.5 |
Derivative liabilities | 366 | 417.6 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 8.5 | |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market fund | 13.9 | 12.3 |
Deferred compensation plan investments | 15.9 | 20.2 |
Derivative assets | 8.3 | 8.5 |
Derivative liabilities | 8.9 | 17.9 |
Non-derivative hedging instrument | 357.1 | 399.7 |
Contingent consideration liability | 203.4 | 208.8 |
Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market fund | 13.9 | 12.3 |
Deferred compensation plan investments | 15.9 | 20.2 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Non-derivative hedging instrument | 0 | 0 |
Contingent consideration liability | 0 | 0 |
Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market fund | 0 | 0 |
Deferred compensation plan investments | 0 | 0 |
Derivative assets | 8.3 | |
Derivative liabilities | 8.9 | 17.9 |
Non-derivative hedging instrument | 357.1 | 399.7 |
Contingent consideration liability | 0 | 0 |
Fair Value, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market fund | 0 | 0 |
Deferred compensation plan investments | 0 | 0 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Non-derivative hedging instrument | 0 | 0 |
Contingent consideration liability | $ 203.4 | $ 208.8 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Financial Instruments Carrying and Fair Values (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other investments | $ 4 | $ 6 |
Long-term debt, including current portion | 6,102.1 | 6,102.1 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other investments | 3.9 | 5.8 |
Long-term debt, including current portion | $ 5,468.4 | $ 5,512.8 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 30, 2024 USD ($) basisPoint | Dec. 30, 2023 USD ($) | Mar. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Payments for royalties owed | $ 8.2 | ||
Change in fair value due to change in discount rate | $ 6.1 | ||
Measurement Input, Discount Rate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Business combination, contingent consideration, liability, measurement input | basisPoint | 0.0100 | ||
Craftsman | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration liability | $ 203.4 | $ 208.8 | |
Craftsman | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Percentage of sales | 2.50% | ||
Craftsman | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Percentage of sales | 3.50% |
RESTRUCTURING CHARGES AND OTH_3
RESTRUCTURING CHARGES AND OTHER COSTS - Summary of Restructuring Reserve Activity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Restructuring Reserve [Roll Forward] | ||
Reserve, beginning balance | $ 28.9 | |
Net Additions | 15 | $ 12.1 |
Usage | (10) | |
Currency | 0.4 | |
Reserve, ending balance | 34.3 | |
Severance and related costs | ||
Restructuring Reserve [Roll Forward] | ||
Reserve, beginning balance | 25.8 | |
Net Additions | 13.3 | |
Usage | (6.6) | |
Currency | 0.4 | |
Reserve, ending balance | 32.9 | |
Facility closures and other | ||
Restructuring Reserve [Roll Forward] | ||
Reserve, beginning balance | 3.1 | |
Net Additions | 1.7 | |
Usage | (3.4) | |
Currency | 0 | |
Reserve, ending balance | $ 1.4 |
RESTRUCTURING CHARGES AND OTH_4
RESTRUCTURING CHARGES AND OTHER COSTS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Dec. 30, 2023 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 15 | $ 12.1 | |
Restructuring reserves | 34.3 | $ 28.9 | |
Other, net | 80 | $ 63.7 | |
Corporate Overhead | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 2.3 | ||
Tools & Outdoor | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 7 | ||
Industrial | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 5.7 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 28.8 | $ 23.7 |
Effective tax rate | 59.60% | (14.40%) |
BUSINESS SEGMENTS AND GEOGRAP_3
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS - Segment Net Sales and Profit (Details) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 USD ($) segment | Apr. 01, 2023 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 2 | |
Net sales | $ 3,869.5 | $ 3,931.8 |
Segment Profit | 320.9 | 86.1 |
Corporate Overhead | (64.2) | (75.7) |
Other, net | (80) | (63.7) |
Loss on sales of businesses | 0 | (7.6) |
Asset impairment charge | (25.5) | 0 |
Restructuring charges | (15) | (12.1) |
Interest income | 43.6 | 39.8 |
Interest expense | (131.5) | (130.9) |
Earnings (loss) before income taxes | 48.3 | (164.1) |
Tools & Outdoor | ||
Segment Reporting Information [Line Items] | ||
Segment Profit | 255.7 | 18.7 |
Tools & Outdoor | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 3,284.6 | 3,315.4 |
Restructuring charges | (7) | |
Industrial | ||
Segment Reporting Information [Line Items] | ||
Segment Profit | 65.2 | 67.4 |
Industrial | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 584.9 | $ 616.4 |
Restructuring charges | $ (5.7) |
BUSINESS SEGMENTS AND GEOGRAP_4
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS - Percentage of Deferred Revenue (Details) | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Industrial | ||
Segment Reporting Information [Line Items] | ||
Deferred revenue as a percent of total segment revenue | 2.90% | 1.70% |
BUSINESS SEGMENTS AND GEOGRAP_5
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS - Disaggregation of Net Sales (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Segment Reporting Information [Line Items] | ||
Net Sales | $ 3,869.5 | $ 3,931.8 |
Industrial | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 584.9 | 616.4 |
Engineered Fastening | Industrial | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 492.3 | 476.3 |
Infrastructure | Industrial | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net Sales | $ 92.6 | $ 140.1 |
BUSINESS SEGMENTS AND GEOGRAP_6
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS - Summary of Total Assets by Segment (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Segment Reporting Information [Line Items] | ||
Assets | $ 23,853.9 | $ 23,663.8 |
Assets held for sale | 827.5 | 857.6 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 23,152.3 | 23,042.5 |
Corporate Overhead | ||
Segment Reporting Information [Line Items] | ||
Assets | (125.9) | (236.3) |
Tools & Outdoor | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 19,080.9 | 18,960.8 |
Industrial | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 4,071.4 | $ 4,081.7 |
BUSINESS SEGMENTS AND GEOGRAP_7
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS - Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Segment Reporting Disclosure [Line Items] | ||
Net Sales | $ 3,869.5 | $ 3,931.8 |
United States | ||
Segment Reporting Disclosure [Line Items] | ||
Net Sales | 2,357.3 | 2,422.4 |
Canada | ||
Segment Reporting Disclosure [Line Items] | ||
Net Sales | 215.9 | 218.3 |
Other Americas | ||
Segment Reporting Disclosure [Line Items] | ||
Net Sales | 209.5 | 193.4 |
Europe | ||
Segment Reporting Disclosure [Line Items] | ||
Net Sales | 788.7 | 783.7 |
Asia | ||
Segment Reporting Disclosure [Line Items] | ||
Net Sales | $ 298.1 | $ 314 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) cubic_yard in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | |||||||||||||||
Jan. 19, 2024 USD ($) | Apr. 07, 2023 USD ($) | Mar. 02, 2023 company mi | Dec. 16, 2022 USD ($) company | Feb. 11, 2022 mi | Sep. 28, 2021 USD ($) | Dec. 04, 2020 USD ($) | Oct. 10, 2018 mi | Jun. 30, 2018 USD ($) municipality company mi | Mar. 30, 2017 mi | Sep. 30, 2016 mi | Mar. 31, 2016 company mi | Mar. 04, 2016 USD ($) cubic_yard mi | Apr. 11, 2014 mi | May 31, 2007 company mi | Mar. 30, 2024 USD ($) site mi | Dec. 30, 2023 USD ($) | |
Loss Contingencies [Line Items] | |||||||||||||||||
Penalty charge | $ 32 | ||||||||||||||||
Superfund sites | site | 23 | ||||||||||||||||
Environmental remediation costs deemed probable and reasonably estimable | $ 150 | $ 441 | $ 1,400 | ||||||||||||||
Other assets, miscellaneous | $ 17 | ||||||||||||||||
Environmental remediation, period construction of treatment facility to be maintained | 30 years | ||||||||||||||||
Number of miles of river | mi | 9 | 17 | 9 | 8.3 | 8.3 | 8.3 | 8.3 | 8.3 | 8.3 | 17 | 17 | ||||||
Cubic yards of settlement | cubic_yard | 3.5 | ||||||||||||||||
Approximate implementation time | 6 years | ||||||||||||||||
Number of companies named in suit | company | 100 | ||||||||||||||||
Estimated costs of remediation | $ 165 | ||||||||||||||||
Number of municipalities, suit filed | municipality | 42 | ||||||||||||||||
Number of other parties notified | company | 105 | ||||||||||||||||
Number of parties | company | 40 | 85 | |||||||||||||||
Environmental exit costs anticipated cost, percentage | 99.40% | ||||||||||||||||
YPF And Repsol | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Litigation settlement, amount | $ 573 | ||||||||||||||||
Lower Passaic Cooperating Parties Group | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Number of companies | company | 47 | ||||||||||||||||
YPF And Repsol | Lower Passaic Cooperating Parties Group | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Litigation settlement, amount awarded from other party | $ 9 | ||||||||||||||||
Minimum | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Environmental remediation costs deemed probable and reasonably estimable | $ 420 | ||||||||||||||||
Maximum | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Environmental remediation costs deemed probable and reasonably estimable | $ 468 | ||||||||||||||||
Property, Plant and Equipment, Other Types | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Environmental remediation costs, reserve | $ 124.2 | $ 124.5 | |||||||||||||||
Reserve for environmental remediation costs, current | 50.5 | ||||||||||||||||
Reserve for environmental remediation costs, noncurrent | 73.7 | ||||||||||||||||
Accrual for environmental loss contingencies, obligation after EPA funding | 107.2 | ||||||||||||||||
Environmental remediation expense | 27.8 | ||||||||||||||||
Property, Plant and Equipment, Other Types | Minimum | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Environmental remediation costs deemed probable and reasonably estimable | 80.4 | ||||||||||||||||
Property, Plant and Equipment, Other Types | Maximum | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Environmental remediation costs deemed probable and reasonably estimable | 226.5 | ||||||||||||||||
Centredale Site | |||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||
Environmental remediation costs deemed probable and reasonably estimable | $ 27.8 |
COMMITMENTS AND GUARANTEES - Sc
COMMITMENTS AND GUARANTEES - Schedule of Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Commitments and Guarantees [Abstract] | ||
Right-of-use assets | $ 489.4 | $ 502.9 |
Lease liabilities | $ 494.9 | $ 506.6 |
Weighted-average incremental borrowing rate | 4.70% | 4.60% |
Weighted-average remaining term | 6 years | 7 years |
COMMITMENTS AND GUARANTEES - Ad
COMMITMENTS AND GUARANTEES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Dec. 30, 2023 | |
Guarantor Obligations [Line Items] | ||
Operating lease, right-of-use asset, statement of financial position, extensible enumeration | Other assets | Other assets |
Operating lease, liability, current, statement of financial position, extensible enumeration | Accrued expenses | Accrued expenses |
Operating lease, liability, noncurrent, statement of financial position, extensible enumeration | Other liabilities | Other liabilities |
Right-of-use assets | $ 489.4 | $ 502.9 |
Lease liabilities | 494.9 | 506.6 |
Supplier finance program, obligation, current | 519.6 | 528.1 |
Unconditional purchase obligation | 326.2 | |
2024 Remainder of fiscal year | 101 | |
2025 | 151.1 | |
2026 | 41.1 | |
2027 | 25.7 | |
2028 | 7.3 | |
Maximum Potential Payment | 430.7 | |
Carrying amount of guarantees recorded in the consolidated balance sheet | $ 15 | |
Product warrantees | 1 year | |
Discontinued Operations, Held-for-sale | Infrastructure | ||
Guarantor Obligations [Line Items] | ||
Right-of-use assets | $ 19 | 19 |
Lease liabilities | 19 | $ 19 |
Property Lease Guarantee [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payment | 157.4 | |
Carrying amount of guarantees recorded in the consolidated balance sheet | 0 | |
Lease Obligations | ||
Guarantor Obligations [Line Items] | ||
Residual value of leased asset | 210.5 | |
Standby letters of credit | ||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payment | 182.6 | |
Carrying amount of guarantees recorded in the consolidated balance sheet | 0 | |
Commercial customer financing arrangements | ||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payment | 90.7 | |
Carrying amount of guarantees recorded in the consolidated balance sheet | $ 15 |
COMMITMENTS AND GUARANTEES - Fi
COMMITMENTS AND GUARANTEES - Financial Guarantees (Details) $ in Millions | 3 Months Ended |
Mar. 30, 2024 USD ($) | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | $ 430.7 |
Carrying Amount of Liability | 15 |
Guarantees on the residual values of leased assets | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | 157.4 |
Carrying Amount of Liability | $ 0 |
Guarantees on the residual values of leased assets | Minimum | |
Guarantor Obligations [Line Items] | |
Term | 1 year |
Guarantees on the residual values of leased assets | Maximum | |
Guarantor Obligations [Line Items] | |
Term | 9 years |
Standby letters of credit | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | $ 182.6 |
Carrying Amount of Liability | $ 0 |
Standby letters of credit | Maximum | |
Guarantor Obligations [Line Items] | |
Term | 20 years |
Commercial customer financing arrangements | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | $ 90.7 |
Carrying Amount of Liability | $ 15 |
Commercial customer financing arrangements | Maximum | |
Guarantor Obligations [Line Items] | |
Term | 6 years |
COMMITMENTS AND GUARANTEES - Ch
COMMITMENTS AND GUARANTEES - Changes in Carrying Amount of Product and Service Warranties (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance beginning of period | $ 136.7 | $ 126.6 |
Warranties and guarantees issued | 46.6 | 39.3 |
Warranty payments and currency | (39.9) | (41.1) |
Balance end of period | $ 143.4 | $ 124.8 |
DIVESTITURES - Additional Infor
DIVESTITURES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Apr. 01, 2024 | Mar. 30, 2024 | Dec. 30, 2023 | Apr. 01, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Asset impairment charge | $ 25.5 | $ 0 | ||
Discontinued Operations, Held-for-sale | Infrastructure | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Asset impairment charge | $ 25.5 | $ 150.8 | ||
Subsequent Event | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Infrastructure | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Sale of business | $ 760 | |||
Proceeds from sale of business | $ 728.5 |
DIVESTITURES - Pre Tax Losses (
DIVESTITURES - Pre Tax Losses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Pre-tax income | $ 0 | $ (7.6) |
Discontinued Operations, Held-for-sale | Infrastructure | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Pre-tax income | $ 9.6 | $ 18 |
DIVESTITURES - Assets Held For
DIVESTITURES - Assets Held For Sale And Liabilities (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 30, 2023 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash and cash equivalents | $ 3.3 | $ 0.6 |
Assets held for sale | 827.5 | 857.6 |
Discontinued Operations, Held-for-sale | Infrastructure | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash and cash equivalents | 3.3 | 0.6 |
Accounts and notes receivable, net | 43 | 41.3 |
Inventories, net | 87.7 | 96.5 |
Other current assets | 2.3 | 2.4 |
Property, plant and equipment, net | 71.4 | 70.4 |
Goodwill | 363.3 | 389.7 |
Intangibles, net | 214.2 | 214.3 |
Other assets | 42.3 | 42.4 |
Assets held for sale | 827.5 | 857.6 |
Accounts payable and accrued expenses | 45 | 44.1 |
Other long-term liabilities | 83.4 | 84.8 |
Total liabilities | $ 128.4 | $ 128.9 |