Financial Highlights**

2014 Financial Highlights (PDF 56 KB)

(millions of dollars,
except per-share amounts)
SWK
2014(1) 2013(1) 2012(1) 2011(1) 2010(1)
Revenue 11,338.6 10,889.5 10,022.4 9,332.3 7,438.3
Gross Margin – $ 4,104.5 3,933.2 3,686.9 3,461.3 2,814.0
Gross Margin – % 36.2% 36.1% 36.8% 37.1% 37.8%
Working Capital Turns 9.2 8.1 7.8 7.3 5.9
Free Cash Flow* 1,005 528 593 706 557
Diluted EPS from Continuing Operations 5.67 4.98 4.72 4.65 3.54
CDIY
Revenue 5,559.3 5,271.4 5,001.4 4,799.2 3,937.1
Segment Profit – $ 872.5 790.1 734.8 622.4 509.6
Segment Profit – % 15.7% 15.0% 14.7% 13.0% 12.9%
Industrial
Revenue 3,498.8 3,302.6 2,739.3 2,691.4 2,042.7
Segment Profit – $ 560.3 481.5 448.6 447.5 310.5
Segment Profit – % 16.0% 14.6% 16.4% 16.6% 15.2%
Security
Revenue 2,280.5 2,315.5 2,281.7 1,841.7 1,458.5
Segment Profit – $ 266.1 271.3 342.6 310.8 258.4
Segment Profit – % 11.7% 11.7% 15.0% 16.9% 17.7%
(1) Excludes merger and acquisition-related charges, with the exception of Free Cash Flow.
* Free Cash Flow = Net cash provided by operating activities minus capital expenditures.
** In the fourth quarter of 2014, the Company classified the results of the Security segment's Spain and Italy operations as held for sale based on management's intention to sell these businesses. The results from 2010-2013 were recast for these discontinued operations for comparability.
2014 Scorecard*
Adjusted EBITDA (Continuing Operations)(a)
($ millions)
EPS (Continuing Operations)(b)
Free Cash Flow(c) ($ millions)
Total Sales Growth long-term objective: +10–12%
Organic Sales Growth long-term objective: +4–6%
Working Capital Turns(d)
Average Capital Employed(e) ($ billions)
Cash Flow Return on Investment(f)
(a) “EBITDA” (earnings before interest, taxes, depreciation, and amortization) is a non-GAAP measurement. Management believes it is important for the ability to determine the earnings power of the Company and to properly value the Company, due to high levels of non-cash expenses related to recent acquisitions. The Company’s 2014 results exclude $54 million (pretax) of charges related to merger and acquisition-related charges. The Company’s 2013 results exclude $390 million (pretax) of charges related to merger and acquisition-related charges as well as the charges associated with the extinguishment of debt during the fourth quarter of 2013. The Company’s 2012 results exclude $442 million (pretax) of charges related to merger and acquisition-related charges, the charges associated with the $200 million in cost actions implemented in 2012, as well as the charges associated with the extinguishment of debt during the third quarter of 2012. In 2011 and 2010, EBITDA excludes pretax merger and acquisition-related charges of $227 million and $478 million, respectively, primarily associated with the Black & Decker merger and Niscayah acquisitions.
(millions of dollars) 2014 2013 2012 2011 2010
Net earnings from continuing operations 857 520 458 612 151
Interest income (14) (13) (10) (27) (9)
Interest expense 177 160 144 140 110
Income taxes 227 69 76 54 19
Depreciation and amortization 444 434 400 366 304
EBITDA from continuing operations 1,691 1,170 1,068 1,145 575
Merger and acquisition-related charges 54 390 442 227 478
Adjusted EBITDA 1,745 1,560 1,510 1,372 1,053
(b) The Company has excluded the 2014, 2013, 2012, 2011, and 2010 after-tax merger and acquisition-related charges of $49 million ($0.30 of diluted EPS), $270 million ($1.70 of diluted EPS), $329 million ($1.97 of diluted EPS), $180 million ($1.06 of diluted EPS), and $380 million ($2.53 of diluted EPS), respectively, in the calculation of diluted EPS. These amounts were excluded because the Company believes doing so provides a better indicator of operating trends when analyzing diluted EPS, due to the unusually large magnitude of these charges and the fact that they are non-recurring. Therefore, the Company has provided these measures both including and excluding such charges.
(c) Free Cash Flow = Net cash provided by operating activities minus capital expenditures.
(d) Working Capital turns are computed as year-end working capital (accounts receivable, inventory, accounts payable, and deferred revenue) divided by fourth quarter sales, annualized.
(e) Average Capital Employed is computed by dividing the 2-point average of debt and equity.
(f) CFROI is computed as cash from operations plus after-tax interest expense, divided by the 2-point average of debt and equity.
Comparison of 5-Year Cumulative Total Return Among Stanley Black & Decker,
S&P 500 Index and Peer Group

Comparison of 5-Year Cumulative Total Return Among Stanley Black & Decker, S&P 500 Index and Peer Group (PDF 139 KB)

Set forth below is a line graph comparing the yearly percentage change in the Company’s cumulative total shareholder return for the last five years to that of the Standard & Poor’s 500 Index (an index made up of 500 companies including Stanley Black & Decker) and the Peer Group. The Peer Group is a group of eight companies that serve the same markets the Company serves and many of which compete with one or more of the Company’s product lines. Total return assumes reinvestment of dividends.

Comparison of 5-Year Cumulative Total Return (value of $100 investment at year end)

the points in the above table are as follows: 2009 2010 2011 2012 2013 2014

Stanley Black & Decker
$100.00 $132.85 $137.53 $150.51 $173.40 $210.29

S&P 500
100.00 115.06 117.48 134.00 179.69 205.02

Peer Group
100.00 128.71 115.94 166.74 237.50 278.96
Assumes $100 invested at the closing price on December 31, 2009, in the Company’s common stock, S&P 500 Index and the Peer Group. The Peer Group consists of the following eight companies: Eaton Corporation plc, Danaher Corporation, Illinois Tool Works, Inc., Ingersoll-Rand Company, Masco Corporation, Newell Rubbermaid, Inc., Snap-On Incorporated and The Sherwin-Williams Company. Prior to 2013, the Company included Cooper Industries, Inc. in its Peer Group. Due to the acquisition of Cooper Industries, Inc. by Eaton Corporation in November 2012, the results of Eaton Corporation have been included in the Peer Group in place of Cooper Industries, Inc. for all years. Prior to 2010, the Company included The Black & Decker Corporation in its Peer Group. Due to the merger on March 12, 2010, the results of The Black & Decker Corporation are now included in the Company’s consolidated results. As a matter of consistency, the total returns of The Black & Decker Corporation have been excluded from all prior years.