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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549 
 FORM 8-K
 CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): February 1, 2024
 
 Stanley Black & Decker, Inc.
(Exact name of registrant as specified in its charter) 
CT1-522406-0548860
(State or other jurisdiction
of incorporation)		(Commission
File Number)		(I.R.S. Employer
Identification No.)

1000 STANLEY DRIVE
NEW BRITAIN, CT 06053
(Address of principal executive offices, including Zip Code)

Registrant’s telephone number, including area code: (860) 225-5111

Not Applicable
(Former name or former address, if changed since last report) 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title Of Each ClassTrading SymbolsName Of Each Exchange On Which Registered
Common Stock- $2.50 Par Value per ShareSWKNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨


Item 2.02 Results of Operations and Financial Condition
On February 1, 2024, Stanley Black & Decker, Inc. issued a press release announcing fourth quarter and full year 2023 results.
 
Item 9.01 Financial Statements and Exhibits.
(a) Not applicable
(b) Not applicable
(c) Not applicable
(d) Exhibits
99.1 Press release dated February 1, 2024, issued by Stanley Black & Decker, Inc.
99.2 Financial statements and supporting schedules contained in Stanley Black & Decker, Inc.'s February 1, 2024 press release.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  Stanley Black & Decker, Inc.
February 1, 2024  By:/s/ Janet M. Link
  Name:Janet M. Link
  Title:Senior Vice President, General Counsel and Secretary



Exhibit Index


Exhibit 99.1
a2q14pressreleaseimagea15.jpg

Stanley Black & Decker Reports 4Q & Full Year 2023 Results

Momentum in Strategic Transformation Supports Improved Profitability Expectations in 2024; Global Cost Reduction Program On-Track for Expected $2 Billion Run-Rate Savings by End of 2025

Fourth Quarter Gross Margin Expanded Sequentially Driven by Accelerated Supply Chain Actions to Counter Reduced Volumes, and Lower Shipping Costs

Generated Full Year Cash From Operating Activities of $1.2 Billion and Free Cash Flow* of $853 Million; Inventory Reduced by $1.9 Billion Since Mid-2022

New Britain, Connecticut, February 1, 2024 … Stanley Black & Decker (NYSE: SWK), a worldwide leader in tools and outdoor, today announced fourth quarter and full year 2023 financial results.

•Full Year Revenues of $15.8 Billion and Fourth Quarter Revenues of $3.7 Billion, Down Versus Prior Year Primarily Due to Lower Outdoor and DIY Volume as well as Infrastructure Customer Destocking
•Fourth Quarter Gross Margin Was 29.6%, Up 10.7 Points Versus Prior Year; Fourth Quarter Adjusted Gross Margin* Was 29.8%, Up 10.3 Points Versus Prior Year
•Fourth Quarter GAAP EPS Was ($1.84); Fourth Quarter Adjusted EPS* Was $0.92. Full Year GAAP EPS Was ($1.88); Full Year Adjusted EPS* Was $1.45
•Fourth Quarter Cash From Operating Activities Was $769 Million; Fourth Quarter Free Cash Flow* Was $647 Million
•Announced Agreement in December to Divest STANLEY Infrastructure for $760 Million in Cash
•Guiding 2024 Full Year Diluted GAAP EPS of $1.60 to $2.85 and Adjusted EPS* of $3.50 to $4.50; Free Cash Flow* Expected to Approximate $0.6 Billion to $0.8 Billion

Donald Allan, Jr., Stanley Black & Decker's President & CEO, commented, “Our performance in 2023 reflects our relentless focus on the successful execution of the strategic business transformation objectives and supports a strong foundation for improved profitability in 2024. Stanley Black & Decker today is a more streamlined business, built on the strength of our people and culture, with an intensified focus on our core market leadership positions in Tools & Outdoor and Industrial. Despite a challenging market backdrop that lowered volume expectations throughout the year, our disciplined efforts drove adjusted gross margin* improvements in each quarter and strong free cash flow* consistent with our plan, two of our most important areas of focus for 2023.
*Non-GAAP Financial Measure As Further Defined On Page 6

1
Exhibit 99.1
“As we look ahead to 2024, we expect relative strength in professional tools and some of our industrial markets and are prepared for weak consumer and outdoor demand trends to persist. Our plan for the year is underpinned by supply chain cost improvements that are broadly in our control to deliver earnings growth and strong cash generation. This improved performance will fund additional investments to further accelerate end-user inspired innovation and differentiated market activation designed to capture the compelling long-term share gain opportunities in the markets we serve.

“Stepping back, over the past year and a half we have transformed Stanley Black & Decker into a different company - refocused and reenergized - and I am confident that by executing our strategy we are positioning the Company to deliver higher levels of organic revenue growth*, profitability and cash flow to drive strong long-term shareholder returns.”

The Company’s primary areas of multi-year strategic focus remain unchanged:

•Advancing innovation, electrification, and global market penetration to achieve organic revenue growth* of 2 to 3x the market
•Streamlining and simplifying the organization, and investing in initiatives that more directly impact our customers and end users
•Returning adjusted gross margins* to historical 35%+ levels by accelerating the operations and supply chain transformation to improve fill rates and better match inventory with customer demand
•Prioritizing cash flow generation and inventory optimization

4Q’23 Key Points:

•Net sales for the quarter were $3.7 billion, down 6% versus prior year as volume (-7%) was moderately offset by currency (+1%).

•Inventory at the end of the quarter was $4.7 billion, down approximately $240 million from the prior quarter and $1.1 billion versus the end of 2022 driven by the Company’s focus on optimizing inventory with approximately $100 million reduction attributable to the Infrastructure business held for sale accounting.

•Gross margin for the quarter was 29.6%, up 280 basis points sequentially versus the third quarter 2023. Adjusted gross margin* was 29.8%, up 220 basis points sequentially from third quarter 2023. Adjusted gross margin* was up versus the prior year rate of 19.5% as lower inventory destocking costs, supply chain transformation benefits and lower shipping costs more than offset the impact from lower volume.

•SG&A expenses were 22.3% of sales for the quarter versus 19.0% in the prior year. Excluding charges, fourth quarter adjusted SG&A expenses* were 21.7% of sales versus 18.3% in the prior year, as the Company
*Non-GAAP Financial Measure As Further Defined On Page 6

2
Exhibit 99.1
invested more in growth initiatives and realized higher variable compensation expense.

•Net loss from continuing operations was (7.4%) of sales, down 490 basis points versus prior year. Fourth quarter EBITDA* was 4.2% of sales. Fourth quarter adjusted EBITDA* was 9.4% of sales, up 620 basis points versus prior year.

4Q’23 Segment Results
($ in M)
Sales
Segment Profit
Charges1
Adjusted Segment Profit*
Segment Margin
Adjusted Segment Margin*
Tools & Outdoor
$3,154
$293.5
$22.3
$315.8
9.3%
10.0%
Industrial
$582
$65.0
($0.6)
$64.4
11.2%
11.1%
1 See Non-GAAP Adjustments On Page 5

•Tools & Outdoor net sales were down 7% versus fourth quarter 2022 as volume (-8%) was moderately offset by currency (+1%). The overall organic revenue* decline (-8%) was primarily the result of lower consumer outdoor and DIY market demand. Regional year-over-year organic revenue* included: North America (-10%), Europe (-1%) and Emerging markets (-1%). Fourth quarter U.S. retail point-of-sale demand remained negative versus the prior year, but above 2019 levels supported by price increases and strength in professional tools. The Tools & Outdoor segment margin was 9.3%, up 920 basis points versus prior year. Adjusted segment margin* was 10.0%, up 900 basis points versus fourth quarter 2022, as lower inventory destocking costs, supply chain transformation savings and reduced shipping costs were partially offset by lower volume.

•Industrial net sales were down 4% versus fourth quarter 2022 as price (+1%) was more than offset by lower volume (-5%) in Infrastructure. Engineered Fastening organic revenues* were up 7%, with double digit growth in aerospace and automotive, which was partially offset by softness in general industrial fastener markets. The Industrial segment margin was 11.2%, down 10 basis points versus prior year. The adjusted segment margin* was 11.1%, down 40 basis points versus prior year as lower volume more than offset price realization and cost control.




*Non-GAAP Financial Measure As Further Defined On Page 6

3
Exhibit 99.1
Global Cost Reduction Program: Supply Chain Transformation Supporting Gross Margin Accretion
The Company continued executing a series of initiatives that are expected to generate $1.5 billion of pre-tax run-rate cost savings by the end of 2024 growing to $2 billion by the end of 2025. Of the $2 billion savings, $1.5 billion is expected to be delivered through a supply chain transformation that leverages strategic sourcing, drives operational excellence, consolidates facilities and optimizes the distribution network, and reduces complexity of the product portfolio. These actions are expected to return adjusted gross margins* to historical 35%+ levels. Additionally, the Global Cost Reduction Program is expected to optimize the Company’s cost base to fund investments that accelerate growth in core businesses.

The Company was modestly ahead of its savings target for full year 2023 and achieved $835 million of pre-tax run-rate savings from lower headcount, indirect spend reductions and the supply chain transformation.

Inventory was reduced by approximately $1.1 billion versus fourth quarter 2022, which drove $1.2 billion of cash from operating activities and $853 million of free cash flow* generation in 2023. Since inception in mid-2022, the Global Cost Reduction Program has generated over $1 billion in pre-tax run-rate savings and the Company has reduced inventory by $1.9 billion.

2024 Outlook
Patrick D. Hallinan, Executive Vice President and CFO, commented, "Focused execution of our Global Cost Reduction Program in 2023 yielded improvements in our cost structure that pushed fourth quarter gross margins toward 30%, ahead of plan behind freight deflation and our teams accelerated efforts to deliver profit and cash. This, along with over $1 billion of inventory reductions through the course of the year, helped us deliver strong free cash flow*. Looking to 2024, we will continue our measured and disciplined approach to cost management as we drive toward our target of 35%+ adjusted gross margins* while funding additional organic revenue growth* investments. The entire organization is aligned around achieving margin expansion, cash generation and balance sheet strength, and working together to position the Company for long-term growth and value creation.”

Management expects 2024 EPS to be in the range of $1.60 to $2.85 on a GAAP basis, and between $3.50 to $4.50 on an adjusted basis. Free cash flow* is expected to approximate $0.6 billion to $0.8 billion, significantly ahead of net income, as we continue to prioritize inventory reductions. Guidance assumes the previously announced Infrastructure divestiture closes at the end of first quarter 2024. Other guidance assumptions will be discussed in more detail on the upcoming earnings call.

*Non-GAAP Financial Measure As Further Defined On Page 6

4
Exhibit 99.1
The difference between 2024 GAAP and adjusted EPS* guidance is approximately $1.65 to $1.90, consisting primarily of charges related to the supply chain transformation under the Global Cost Reduction Program.

Non-GAAP Adjustments
Total pre-tax non-GAAP adjustments in the fourth quarter of 2023 were $197.3 million, primarily related to a non-cash impairment charge, footprint actions and other costs related to the supply chain transformation. Gross profit included $9.9 million of charges while SG&A included $23.9 million. Other, net included a net benefit of $2.3 million and Restructuring included $11.8 million of charges. In addition, in the fourth quarter of 2023, the Company recognized a $150.8 million non-cash asset impairment charge related to the Infrastructure business and a $3.2 million pre-tax loss related to a previously divested business.

Earnings Webcast
Stanley Black & Decker will host a webcast with investors today, February 1, 2024, at 8:00 am ET. A slide presentation, which will accompany the call, will be available on the "Investors" section of the Company’s website at www.stanleyblackanddecker.com/investors and will remain available after the call.
The call will be available through a live, listen-only webcast or teleconference. Links to access the webcast, register for the teleconference, and view the accompanying slide presentation will be available on the "Investors" section of the Company’s website, www.stanleyblackanddecker.com/investors under the subheading "News & Events." A replay will also be available two hours after the call and can be accessed on the “Investors” section of Stanley Black & Decker’s website.

About Stanley Black & Decker
Headquartered in the USA, Stanley Black & Decker (NYSE: SWK) is a worldwide leader in Tools and Outdoor, operating manufacturing facilities globally. The Company's more than 50,000 diverse and high-performing employees produce innovative and end-user inspired power tools, hand tools, storage, digital tool solutions, lifestyle products, outdoor products and engineered fasteners to support the world's makers, creators, tradespeople and builders. The Company’s world class portfolio of trusted brands includes DEWALT®, CRAFTSMAN®, STANLEY®, BLACK+DECKER®, and CUB CADET®. Guided by its purpose – for those who make the world – Stanley Black & Decker strives to be a force for good in support of its communities, employees, customers and other stakeholders. To learn more visit: www.stanleyblackanddecker.com.

Investor Contacts:
Dennis Lange
Vice President, Investor Relations
dennis.lange@sbdinc.com
(860) 827-3833


*Non-GAAP Financial Measure As Further Defined On Page 6

5
Exhibit 99.1
Christina Francis
Director, Investor Relations
christina.francis@sbdinc.com
(860) 438-3470

Media Contacts:
Debora Raymond
Vice President, Public Relations
debora.raymond@sbdinc.com
(203) 640-8054

Non-GAAP Financial Measures
Organic revenue or organic sales is defined as the difference between total current and prior year sales less the impact of companies acquired and divested in the past twelve months and any foreign currency impacts. Organic revenue growth, organic sales growth or organic growth is organic revenue or organic sales divided by prior year sales. Gross profit is defined as sales less cost of sales. Gross margin is gross profit as a percentage of sales. Segment profit is defined as sales less cost of sales and selling, general and administrative (“SG&A”) expenses (aside from corporate overhead expense). Segment margin is segment profit as a percentage of sales. EBITDA is earnings before interest, taxes, depreciation and amortization. EBITDA margin is EBITDA as a percentage of sales. Gross profit, gross margin, SG&A, segment profit, segment margin, EBITDA and EBITDA margin are adjusted for certain gains and charges, such as supply chain transformation costs, acquisition and divestiture-related items, asset impairments, restructuring, and other adjusting items. Management uses these metrics as key measures to assess the performance of the Company as a whole, as well as the related measures at the segment level. Adjusted earnings per share or adjusted EPS, is diluted GAAP EPS excluding certain gains and charges. Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important indicator of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners and is useful information for investors. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common stock and business acquisitions, among other items. Free cash flow conversion is defined as free cash flow divided by net income. The Non-GAAP statement of operations and business segment information is reconciled to GAAP on pages 12 through 16 and in the appendix to the earnings conference call slides available at http://www.stanleyblackanddecker.com/investors. The Company considers the use of the Non-GAAP financial measures above relevant to aid analysis and understanding of the Company’s results, business trends and outlook measures aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods.

The Company also provides expectations for the non-GAAP financial measures of adjusted EPS, presented on a basis excluding certain gains and charges, as well as free cash flow. Forecasted adjusted EPS is reconciled to GAAP EPS on page 5. Due to high variability and difficulty in predicting items that impact cash flow from operations, a reconciliation of forecasted free cash flow to its most directly comparable GAAP estimate has been omitted. The Company believes such a reconciliation would also imply a degree of precision that is inappropriate for this forward-looking measure.







*Non-GAAP Financial Measure As Further Defined On Page 6

6
Exhibit 99.1
CAUTIONARY STATEMENTS
Under the Private Securities Litigation Reform Act of 1995

This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, any projections or guidance of earnings, revenue, profitability or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new products, services or developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include, among others, the words “may,” “will,” “estimate,” “intend,” “could,” “project,” “plan,” “continue,” “believe,” “expect,” “anticipate”, “run-rate”, “annualized”, “forecast”, “commit”, “goal”, “target”, “design”, “on track”, “position or positioning”, “guidance” or any other similar words.

Although the Company believes that the expectations reflected in any of its forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of its forward-looking statements. The Company's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, such as those disclosed or incorporated by reference in the Company's filings with the Securities and Exchange Commission.

Important factors that could cause the Company's actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in its forward-looking statements include, among others, the following: (i) successfully developing, marketing and achieving sales from new products and services and the continued acceptance of current products and services; (ii) macroeconomic factors, including global and regional business conditions, commodity prices, inflation and deflation, interest rate volatility, currency exchange rates, and uncertainties in the global financial markets related to the recent failures of several financial institutions; (iii) laws, regulations and governmental policies affecting the Company's activities in the countries where it does business, including those related to tariffs, taxation, data privacy, anti-bribery, anti-corruption, government contracts and trade controls such as section 301 tariffs and section 232 steel and aluminum tariffs; (iv) the economic, political, cultural and legal environment in Europe and the emerging markets in which the Company generates sales, particularly Latin America and China; (v) realizing the anticipated benefits of mergers, acquisitions, joint ventures, strategic alliances or divestitures; (vi) pricing pressure and other changes within competitive markets; (vii) availability and price of raw materials, component parts, freight, energy, labor and sourced finished goods; (viii) the impact that the tightened credit markets may have on the Company or its customers or suppliers; (ix) the extent to which the Company has to write off accounts receivable, inventory or other assets or experiences supply chain disruptions in connection with bankruptcy filings by customers or suppliers; (x) the Company's ability to identify and effectively execute productivity improvements and cost reductions; (xi) potential business, supply chain and distribution disruptions, including those related to physical security threats, information technology or cyber-attacks, epidemics, natural disasters or pandemics, sanctions, political unrest, war or terrorism, including the conflicts between Russia and Ukraine, and Israel and Hamas, and tensions or conflicts in South Korea, China and Taiwan; (xii) the continued consolidation of customers, particularly in consumer channels, and the Company’s continued reliance on significant customers; (xiii) managing franchisee relationships; (xiv) the impact of poor weather conditions and climate change and risks related to the transition to a lower-carbon economy, such as the Company’s ability to successfully adopt new technology, meet market-driven demands for carbon neutral and renewable energy technology, or to comply with more stringent and increasingly complex environmental regulations or requirements for its manufacturing facilities and business operations; (xv) failure to meet environmental, social and governance (ESG) expectations or standards, or achieve its ESG goals; (xvi) maintaining or improving production rates in the Company's manufacturing facilities, responding to significant changes in customer preferences, product demand and fulfilling demand for new and existing products, and learning, adapting and integrating new technologies into products, services and processes; (xvii) changes in the competitive landscape in the Company's markets; (xviii) the Company's non-U.S. operations, including sales to non-U.S. customers; (xix) the impact from demand changes within world-wide markets associated with homebuilding and remodeling; (xx) potential adverse developments in new or pending litigation and/or government investigations; (xxi) the incurrence of debt and changes in the Company's ability to obtain debt on commercially reasonable terms and at competitive rates; (xxii) substantial pension and other postretirement benefit obligations; (xxiii) potential regulatory liabilities, including environmental, privacy, data breach, workers compensation and product liabilities; (xxiv) attracting, developing and retaining senior management and other key employees, managing a workforce in many jurisdictions, labor shortages, work stoppages or other labor disruptions; (xxv) the Company's ability to keep abreast with the pace of technological change; (xxvi) changes in accounting estimates; (xxvii) the Company’s ability to protect its intellectual property rights and to maintain its public reputation and the strength of its brands; and (xxviii) the Company’s ability to implement, and achieve the expected benefits (including cost savings and reduction in working capital) from, its Global Cost Reduction Program including: continuing to advance innovation, electrification and global market penetration to achieve organic revenue growth of 2-3 times the market; streamlining and simplifying the organization, and investing in initiatives that more directly impact the Company's customers and end users; returning adjusted gross margins* to historical 35%+ levels by accelerating the supply chain transformation to leverage strategic sourcing, drive operational excellence, consolidate facilities, optimize the distribution network and reduce complexity of the product portfolio; improving fill rates and matching inventory with customer demand; prioritizing cash flow generation and inventory optimization; executing the SBD Operating Model to deliver operational excellence through efficiency, simplified organizational design; and reducing complexity through platforming products and implementing initiatives to drive a SKU reduction.

Additional factors that could cause actual results to differ materially from forward-looking statements are set forth in the Annual Report on Form 10-K and in the Quarterly Reports on Form 10-Q, including under the headings “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in the Consolidated Financial Statements and the related Notes.

Forward-looking statements in this press release speak only as of the date hereof, and forward-looking statements in documents that are incorporated by reference herein speak only as of the date of those documents. The Company does not undertake any obligation or intention to update or revise any forward-looking statements, whether as a result of future events or circumstances, new information or otherwise, except as required by law.
7
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, Millions of Dollars Except Per Share Amounts) 
 FOURTH QUARTERYEAR-TO-DATE
 2023202220232022
NET SALES$3,736.5 $3,986.8 $15,781.1 $16,947.4 
COSTS AND EXPENSES
Cost of sales2,632.1 3,233.3 11,848.5 12,663.3 
Gross profit1,104.4 753.5 3,932.6 4,284.1 
% of Net Sales29.6 %18.9 %24.9 %25.3 %
Selling, general and administrative834.0 757.2 3,290.7 3,370.0 
% of Net Sales22.3 %19.0 %20.9 %19.9 %
Other - net95.8 64.6 320.1 274.8 
Loss on sales of businesses3.2 — 10.8 8.4 
Asset impairment charges150.8 — 274.8 168.4 
Restructuring charges11.8 — 39.4 140.8 
Income (loss) from operations8.8 (68.3)(3.2)321.7 
Interest - net87.6 83.9 372.5 283.8 
(LOSS) EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES(78.8)(152.2)(375.7)37.9 
Income taxes on continuing operations197.3 (51.6)(94.0)(132.4)
NET (LOSS) EARNINGS FROM CONTINUING OPERATIONS (276.1)(100.6)(281.7)170.3 
Less: Net earnings attributable to non-controlling interests— — — 0.2 
NET (LOSS) EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO STANLEY BLACK & DECKER, INC.(276.1)(100.6)(281.7)170.1 
      Less: Preferred stock dividends and beneficial conversion feature$— $5.8 $— $5.8 
NET (LOSS) EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREOWNERS$(276.1)$(106.4)$(281.7)$164.3 
Add: Contract adjustment payments accretion— 0.2 — 1.2 
NET (LOSS) EARNINGS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREOWNERS - DILUTED$(276.1)$(106.2)$(281.7)$165.5 
(Loss) earnings from discontinued operations before income taxes (including 2023 pre-tax loss on Security sale of $14.3 million and 2022 pre-tax gain on Security sale of $1,197.4 million)(13.5)(22.6)(14.3)1,210.9 
Income taxes on discontinued operations (including 2023 income taxes of $14.5 million for loss on Security sale and 2022 income taxes of $312.5 million for gain on Security sale)14.8 (78.2)14.5 318.5 
NET (LOSS) EARNINGS FROM DISCONTINUED OPERATIONS$(28.3)$55.6 $(28.8)$892.4 
NET (LOSS) EARNINGS ATTRIBUTABLE TO COMMON SHAREOWNERS - DILUTED$(304.4)$(50.6)$(310.5)$1,057.9 
NET (LOSS) EARNINGS ATTRIBUTABLE TO STANLEY BLACK & DECKER, INC.$(304.4)$(45.0)$(310.5)$1,062.5 
BASIC (LOSS) EARNINGS PER SHARE OF COMMON STOCK
Continuing operations$(1.84)$(0.72)$(1.88)$1.11 
Discontinued operations$(0.19)$0.38 $(0.19)$6.02 
Total basic (loss) earnings per share of common stock$(2.03)$(0.35)$(2.07)$7.13 
DILUTED (LOSS) EARNINGS PER SHARE OF COMMON STOCK
Continuing operations$(1.84)$(0.72)$(1.88)$1.06 
Discontinued operations$(0.19)$0.37 $(0.19)$5.70 
Total diluted (loss) earnings per share of common stock$(2.03)$(0.34)$(2.07)$6.76 
DIVIDENDS PER SHARE OF COMMON STOCK$0.81 $0.80 $3.22 $3.18 
WEIGHTED-AVERAGE SHARES OUTSTANDING (in thousands)
Basic149,933146,967149,751148,170
Diluted149,933146,967149,751156,553
8
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, Millions of Dollars)
 
December 30, 2023December 31, 2022
ASSETS
Cash and cash equivalents$449.4 $395.6 
Accounts and notes receivable, net1,302.0 1,231.0 
Inventories, net4,738.6 5,861.1 
Current assets held for sale140.8 — 
Other current assets386.5 487.0 
Total current assets7,017.3 7,974.7 
Property, plant and equipment, net2,169.9 2,353.1 
Goodwill and other intangibles, net11,945.5 12,977.5 
Long-term assets held for sale716.8 — 
Other assets1,814.3 1,658.0 
Total assets$23,663.8 $24,963.3 
LIABILITIES AND SHAREOWNERS’ EQUITY
Short-term borrowings$1,074.8 $2,102.9 
Current maturities of long-term debt1.1 1.2 
Accounts payable2,298.9 2,344.4 
Accrued expenses2,464.3 2,120.7 
Current liabilities held for sale44.1 — 
Total current liabilities5,883.2 6,569.2 
Long-term debt6,101.0 5,352.9 
Long-term liabilities held for sale84.8 — 
Other long-term liabilities2,538.7 3,327.0 
Stanley Black & Decker, Inc. shareowners’ equity9,056.1 9,712.1 
Non-controlling interests’ equity— 2.1 
Total liabilities and shareowners' equity$23,663.8 $24,963.3 

9
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
SUMMARY OF CASH FLOW ACTIVITY
(Unaudited, Millions of Dollars)
 
FOURTH QUARTERYEAR-TO-DATE
 2023202220232022
OPERATING ACTIVITIES
Net (loss) earnings $(304.4)$(45.0)$(310.5)$1,062.7 
Depreciation and amortization148.4 147.1 625.1 572.2 
Loss on sales of businesses3.2 — 10.8 8.4 
Loss (gain) on sale of discontinued operations13.5 22.6 14.3 (1,197.4)
Asset impairment charges150.8 — 274.8 168.4 
Changes in working capital1
515.7 592.7 769.0 (1,704.7)
Other242.1 (66.3)(192.2)(369.1)
Net cash provided by (used in) operating activities769.3 651.1 1,191.3 (1,459.5)
INVESTING AND FINANCING ACTIVITIES
Capital and software expenditures(122.3)(130.5)(338.7)(530.4)
Proceeds from sales of assets2.0 1.8 15.1 41.7 
Proceeds from sales of businesses, net of cash sold— — (5.7)4,147.1 
Business acquisitions, net of cash acquired— 0.2 — (71.9)
Proceeds from debt issuances, net of fees— — 745.3 992.6 
Stock purchase contract fees— (9.9)— (39.4)
Credit facility borrowings— — — 2,500.0 
Credit facility repayments— — — (2,500.0)
Net short-term commercial paper (repayments) borrowings(450.4)(466.1)(1,044.7)(138.1)
Proceeds from issuances of common stock7.5 15.7 19.0 38.7 
Purchases of common stock for treasury(9.3)(4.3)(16.1)(2,323.0)
Proceeds from issuances of remarketed preferred stock— 750.0 — 750.0 
Redemption and conversion of preferred stock— (750.0)— (750.0)
Craftsman contingent consideration— (8.8)(18.0)(41.3)
Cash dividends on common stock(121.8)(120.0)(482.6)(465.8)
Effect of exchange rate changes on cash30.8 63.9 2.1 (31.9)
Other(3.3)(2.8)(17.3)(8.7)
Net cash (used in) provided by investing and financing activities(666.8)(660.8)(1,141.6)1,569.6 
Increase (decrease) in cash, cash equivalents and restricted cash102.5 (9.7)49.7 110.1 
Cash, cash equivalents and restricted cash, beginning of period352.1 414.6 404.9 294.8 
Cash, cash equivalents and restricted cash, end of period$454.6 $404.9 $454.6 $404.9 
Free Cash Flow Computation2
Net cash provided by (used in) operating activities$769.3 $651.1 $1,191.3 $(1,459.5)
Less: capital and software expenditures(122.3)(130.5)(338.7)(530.4)
Free cash flow (before dividends)$647.0 $520.6 $852.6 $(1,989.9)
Reconciliation of Cash, Cash Equivalents and Restricted Cash
December 30, 2023December 31, 2022
Cash and cash equivalents$449.4 $395.6 
Restricted cash included in Other current assets4.6 9.3 
Cash and cash equivalents included in Current assets held for sale0.6 — 
Cash, cash equivalents and restricted cash$454.6 $404.9 
1
Working capital is comprised of accounts receivable, inventory, accounts payable and deferred revenue.
2
Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners, and is useful information for investors. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company’s common stock and business acquisitions, among other items.
10
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(Unaudited, Millions of Dollars)

 
 FOURTH QUARTERYEAR-TO-DATE
 2023202220232022
NET SALES
Tools & Outdoor$3,154.2 $3,382.9 $13,367.1 $14,423.7 
Industrial582.3 603.9 2,414.0 2,523.4 
Segment Net Sales3,736.5 3,986.8 15,781.1 16,947.1 
Corporate Overhead — — — 0.3 
Total$3,736.5 $3,986.8 $15,781.1 $16,947.4 
SEGMENT PROFIT
Tools & Outdoor$293.5 $3.4 $687.6 $971.9 
Industrial65.0 68.2 266.5 236.2 
Segment Profit358.5 71.6 954.1 1,208.1 
Corporate Overhead (88.1)(75.3)(312.2)(294.0)
Total$270.4 $(3.7)$641.9 $914.1 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor9.3 %0.1 %5.1 %6.7 %
Industrial11.2 %11.3 %11.0 %9.4 %
Segment Profit9.6 %1.8 %6.0 %7.1 %

11
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)

 
FOURTH QUARTER 2023
 GAAPNon-GAAP Adjustments
Non-GAAP2
Gross profit$1,104.4 $9.9 $1,114.3 
% of Net Sales29.6 %29.8 %
Selling, general and administrative834.0 (23.9)810.1 
% of Net Sales22.3 %21.7 %
(Loss) earnings from continuing operations before income taxes(78.8)197.3 118.5 
Income taxes on continuing operations197.3 (216.8)(19.5)
Net (loss) earnings from continuing operations attributable to common shareowners - Diluted(276.1)414.1 138.0 
Diluted (loss) earnings per share of common stock - Continuing operations1
$(1.84)$2.76 $0.92 
1
The Non-GAAP diluted earnings per share for the fourth quarter of 2023 is calculated using diluted weighted-average shares outstanding of 150.671 million.
FOURTH QUARTER 2022
 GAAPNon-GAAP Adjustments
Non-GAAP2
Gross profit$753.5 $24.5 $778.0 
% of Net Sales18.9 %19.5 %
Selling, general and administrative757.2 (27.2)730.0 
% of Net Sales19.0 %18.3 %
Loss from continuing operations before income taxes(152.2)54.0 (98.2)
Income taxes on continuing operations(51.6)(37.7)(89.3)
Net loss from continuing operations attributable to common shareowners - Diluted(106.2)91.7 (14.5)
Diluted loss per share of common stock - Continuing operations$(0.72)$0.62 $(0.10)
2
The Non-GAAP 2023 and 2022 information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results, business trends and outlook measures aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods. See further detail on Non-GAAP adjustments on page 16.
 


12
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars Except Per Share Amounts)
 
YEAR-TO-DATE 2023
 GAAPNon-GAAP Adjustments
Non-GAAP2
Gross profit$3,932.6 $166.9 $4,099.5 
% of Net Sales24.9 %26.0 %
Selling, general and administrative3,290.7 (99.4)3,191.3 
% of Net Sales20.9 %20.2 %
(Loss) earnings from continuing operations before income taxes(375.7)566.2 190.5 
Income taxes on continuing operations(94.0)65.8 (28.2)
Net (loss) earnings from continuing operations attributable to common shareowners - Diluted(281.7)500.4 218.7 
Diluted (loss) earnings per share of common stock - Continuing operations1
$(1.88)$3.33 $1.45 
1
The Non-GAAP diluted earnings per share for year-to-date 2023 is calculated using diluted weighted-average shares outstanding of 150.371 million.
YEAR-TO-DATE 2022
 GAAPNon-GAAP Adjustments
Non-GAAP2
Gross profit$4,284.1 $127.4 $4,411.5 
% of Net Sales25.3 %26.0 %
Selling, general and administrative3,370.0 (180.3)3,189.7 
% of Net Sales19.9 %18.8 %
Earnings from continuing operations before income taxes37.9 642.2 680.1 
Income taxes on continuing operations(132.4)84.0 (48.4)
Net earnings from continuing operations attributable to common shareowners - Diluted165.5 558.2 723.7 
Diluted earnings per share of common stock - Continuing operations$1.06 $3.56 $4.62 
2
The Non-GAAP 2023 and 2022 information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results, business trends and outlook measures aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods. See further detail on Non-GAAP adjustments on page 16.
 

13
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)
 
FOURTH QUARTER 2023
 GAAP
Non-GAAP Adjustments1
Non-GAAP3
SEGMENT PROFIT
Tools & Outdoor$293.5 $22.3 $315.8 
Industrial65.0 (0.6)64.4 
Segment Profit358.5 21.7 380.2 
Corporate Overhead(88.1)12.1 (76.0)
Total$270.4 $33.8 $304.2 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor9.3 %10.0 %
Industrial11.2 %11.1 %
Segment Profit9.6 %10.2 %
1
Non-GAAP adjustments relate primarily to footprint actions and other costs associated with the supply chain transformation and integration-related costs.
FOURTH QUARTER 2022
 GAAP
Non-GAAP Adjustments2
Non-GAAP3
SEGMENT PROFIT
Tools & Outdoor$3.4 $29.8 $33.2 
Industrial68.2 1.4 69.6 
Segment Profit71.6 31.2 102.8 
Corporate Overhead (75.3)20.5 (54.8)
Total$(3.7)$51.7 $48.0 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor0.1 %1.0 %
Industrial11.3 %11.5 %
Segment Profit1.8 %2.6 %
2
Non-GAAP adjustments relate primarily to supply chain transformation and integration-related costs.
3
The Non-GAAP 2023 and 2022 business segment information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results, business trends and outlook measures aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods.

14
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
(Unaudited, Millions of Dollars)
 
YEAR-TO-DATE 2023
 GAAP
Non-GAAP Adjustments1
Non-GAAP3
SEGMENT PROFIT
Tools & Outdoor$687.6 $196.7 $884.3 
Industrial266.5 18.7 285.2 
Segment Profit954.1 215.4 1,169.5 
Corporate Overhead(312.2)50.9 (261.3)
Total$641.9 $266.3 $908.2 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor5.1 %6.6 %
Industrial11.0 %11.8 %
Segment Profit6.0 %7.4 %
1
Non-GAAP adjustments relate primarily to footprint actions and other costs associated with the supply chain transformation and integration-related costs.
YEAR-TO-DATE 2022
 GAAP
Non-GAAP Adjustments2
Non-GAAP3
SEGMENT PROFIT
Tools & Outdoor$971.9 $235.4 $1,207.3 
Industrial236.2 7.8 244.0 
Segment Profit1,208.1 243.2 1,451.3 
Corporate Overhead(294.0)64.5 (229.5)
Total$914.1 $307.7 $1,221.8 
Segment Profit as a Percentage of Net Sales
Tools & Outdoor6.7 %8.4 %
Industrial9.4 %9.7 %
Segment Profit7.1 %8.6 %
2
Non-GAAP adjustments relate primarily to integration-related costs, non-cash inventory step-up charges, and a voluntary retirement program.
3
The Non-GAAP 2023 and 2022 business segment information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the Company’s results, business trends and outlook measures aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods.





15
Exhibit 99.2
STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS (LOSS) TO EBITDA
(Unaudited, Millions of Dollars)
FOURTH QUARTERYEAR-TO-DATE
2023202220232022
NET (LOSS) EARNINGS FROM CONTINUING OPERATIONS$(276.1)$(100.6)$(281.7)$170.3 
% of Net Sales(7.4)%(2.5)%(1.8)%1.0 %
Interest - net87.6 83.9 372.5 283.8 
Income taxes on continuing operations197.3 (51.6)(94.0)(132.4)
Depreciation and amortization148.4 147.1 625.1 572.2 
EBITDA1
$157.2 $78.8 $621.9 $893.9 
% of Net Sales4.2 %2.0 %3.9 %5.3 %
Non-GAAP Adjustments before income taxes197.3 54.0 566.2 642.2 
Less: Accelerated depreciation included in Non-GAAP Adjustments before income taxes4.2 5.5 50.0 7.5 
Adjusted EBITDA1
$350.3 $127.3 $1,138.1 $1,528.6 
% of Net Sales9.4 %3.2 %7.2 %9.0 %
1EBITDA is earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA represents EBITDA excluding certain gains and charges, as summarized below. EBITDA and Adjusted EBITDA, both Non-GAAP measures, are considered relevant to aid analysis and understanding of the Company’s operating results and ensures appropriate comparability to prior periods.

SUMMARY OF NON-GAAP ADJUSTMENTS BEFORE INCOME TAXES
(Unaudited, Millions of Dollars)
FOURTH QUARTERYEAR-TO-DATE
2023202220232022
Supply Chain Transformation Costs:
Footprint Rationalization2
$8.6 $25.3 $96.9 $25.3 
Strategic Sourcing & Operational Excellence3
0.4 — 69.1 — 
Inventory step-up charges— — — 80.3 
Facility-related costs0.4 7.0 1.5 14.8 
Voluntary retirement program— — (0.4)5.7 
Other charges (gains)0.5 (7.8)(0.2)1.3 
Gross Profit$9.9 $24.5 $166.9 $127.4 
Supply Chain Transformation Costs:
Footprint Rationalization2
$2.4 $— $10.8 $— 
Complexity Reduction4
1.0 — 9.0 7.2 
Integration-related costs9.6 13.9 33.6 85.2 
Transition services costs related to previously divested businesses9.6 12.2 46.6 21.1 
Functional transformation initiatives— 4.3 — 19.2 
Voluntary retirement program(0.3)(0.6)(2.7)33.4 
Other charges (gains)1.6 (2.6)2.1 14.2 
Selling, general and administrative$23.9 $27.2 $99.4 $180.3 
Acquisition & divestiture-related costs and income5
$0.9 $2.3 $(14.3)$18.2 
Voluntary retirement program— — — 7.1 
Asset impairment charges6
150.8 — 274.8 168.4 
Restructuring charges 11.8 — 39.4 140.8 
(Loss) earnings from continuing operations before income taxes$197.3 $54.0 $566.2 $642.2 

16
Exhibit 99.2
2Footprint Rationalization costs in 2023 primarily relate to transfers and closures of targeted manufacturing sites, which resulted in accelerated depreciation of production equipment of $49.1 million, non-cash asset write-downs of $44.0 million (predominantly tooling, raw materials and WIP) and other facility exit and re-configuration costs of $14.6 million.
3Strategic Sourcing & Operational Excellence costs primarily relate to third-party consultant fees to provide expertise in identifying and quantifying opportunities to source in a more integrated manner and re-design in-plant operations following footprint rationalization, developing a detailed program and related governance, and assisting the Company with the implementation of actions necessary to achieve the related objectives.
4Complexity Reduction costs primarily relate to third-party consultant fees to assist the Company with identifying strategies related to its SKU reduction and product platforming initiatives, quantifying the opportunities and designing detailed plans to achieve the related benefits.
5Includes deal-related costs and loss on sales of businesses, net of income related to providing transition services to previously divested businesses.
6Asset impairment charges in 2023 include a $124.0 million pre-tax impairment loss related to the Irwin and Troy-Bilt trade names and a $150.8 million pre-tax impairment loss related to the Infrastructure business. The $168.4 million pre-tax asset impairment charge in 2022 related to the Oil & Gas business.
17
v3.24.0.1
Document and Entity Information Document
Feb. 01, 2024
Cover [Abstract]  
Written Communications false
Soliciting Material false
Entity Central Index Key 0000093556
Title of 12(b) Security Common Stock
Entity Registrant Name CT
Document Type 8-K
Entity File Number 1-5224
Entity Tax Identification Number 06-0548860
Entity Address, Address Line One 1000 STANLEY DRIVE
Entity Address, City or Town NEW BRITAIN
Entity Address, Postal Zip Code 06053
Entity Address, State or Province CT
Document Period End Date Feb. 01, 2024
Entity Registrant Name Stanley Black & Decker, Inc.
Trading Symbol SWK
Security Exchange Name NYSE
City Area Code 860
Local Phone Number 225-5111
Entity Emerging Growth Company false
Amendment Flag false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
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