black&decker 8K_2008
Upcoming SlideShare
Loading in...5
×
 

black&decker 8K_2008

on

  • 127 views

 

Statistics

Views

Total Views
127
Slideshare-icon Views on SlideShare
127
Embed Views
0

Actions

Likes
0
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    black&decker 8K_2008 black&decker 8K_2008 Document Transcript

    • 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) April 16, 2008 THE BLACK & DECKER CORPORATION (Exact name of registrant as specified in its charter) Maryland 1-1553 52-0248090 (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 701 East Joppa Road, Towson, Maryland 21286 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code 410-716-3900 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))
    • -2- ITEM 8.01 OTHER EVENTS. As more fully described in Note 16 of Notes to Consolidated Financial Statements included in Item 8 of the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2007 (Note 16), the Corporation assesses the performance of its reportable business segments based upon a number of factors, including segment profit. For segment reporting purposes, elements of segment profit and certain other segment data are translated using budgeted rates of exchange. Budgeted rates of exchange are established annually and, once established, all prior period segment data is updated to reflect the translation of elements of segment profit and certain other segment data at the current year’s budgeted rates of exchange. Amounts included in the first table of Note 16 under the captions “Reportable Business Segments” and “Corporate, Adjustments, & Eliminations” are reflected at the Corporation’s budgeted rates of exchange for 2007. The amounts included in that table under the caption “Currency Translation Adjustments” represent the difference between consolidated amounts determined using the budgeted rates of exchange for 2007 and those determined based upon the rates of exchange applicable under accounting principles generally accepted in the United States. The Corporation has established budgeted rates of exchange for 2008 and, accordingly, segment data for prior periods has been updated to reflect the translation of elements of segment profit and certain other segment data at the budgeted rates of exchange for 2008. For informational purposes, the Corporation has included as Exhibit 99 to this Current Report on Form 8-K selected unaudited supplemental information about its business segments for 2007, 2006, and 2005 updated to reflect the translation of elements of segment profit and certain other segment data at the budgeted rates of exchange for 2008. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS. Exhibit 99 Selected unaudited supplemental information about the Corporation’s business segments for each of the three years in the period ended December 31, 2007, and for each of the quarters in the years ended December 31, 2007 and 2006.
    • -3- THE BLACK & DECKER CORPORATION 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. THE BLACK & DECKER CORPORATION By: /s/ CHRISTINA M. MCMULLEN Christina M. McMullen Vice President and Controller Date: April 16, 2008
    • EXHIBIT 99 THE BLACK & DECKER CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION ABOUT BUSINESS SEGMENTS (Unaudited) (Millions of Dollars) Reportable Business Segments Power Hardware Fastening Currency Corporate, Tools & & Home & Assembly Translation Adjustments, Year Ended December 31, 2007 Accessories Improvement Systems Total Adjustments & Eliminations Consolidated Sales to unaffiliated customers $ 4,843.7 $ 1,006.7 $ 718.3 $ 6,568.7 $ (5.5) $ – $ 6,563.2 Segment profit (loss) (for Consolidated, operating income before restructuring and exit costs) 488.8 114.9 111.5 715.2 (2.5) (111.5) 601.2 Depreciation and amortization 97.4 22.8 20.6 140.8 (.3) 2.9 143.4 Capital expenditures 65.5 20.8 21.8 108.1 .4 7.9 116.4 Year Ended December 31, 2006 Sales to unaffiliated customers $ 4,907.3 $ 1,014.5 $ 692.4 $ 6,614.2 $ (166.9) $ – $ 6,447.3 Segment profit (loss) (for Consolidated, operating income) 591.3 138.3 100.4 830.0 (21.5) (68.1) 740.4 Depreciation and amortization 114.3 22.9 19.5 156.7 (4.0) 2.2 154.9 Capital expenditures 74.5 14.0 17.3 105.8 (2.6) 1.4 104.6 Year Ended December 31, 2005 Sales to unaffiliated customers $ 4,992.1 $ 1,030.9 $ 688.1 $ 6,711.1 $ (187.4) $ – $ 6,523.7 Segment profit (loss) (for Consolidated, operating income) 656.9 146.8 99.7 903.4 (24.4) (84.1) 794.9 Depreciation and amortization 106.9 25.6 19.4 151.9 (4.8) 3.5 150.6 Capital expenditures 84.0 12.9 16.2 113.1 (3.8) 1.8 111.1
    • The reconciliation of segment profit to consolidated earnings from continuing operations before income taxes for each of the three years in the period ended December 31, 2007, in millions of dollars, is as follows: Year Ended December 31, 2007 2006 2005 Segment profit for total reportable business segments $ 715.2 $ 830.0 $ 903.4 Items excluded from segment profit: Adjustment of budgeted foreign exchange rates to actual rates (2.5) (21.5) (24.4) Depreciation of Corporate property (1.4) (.9) (1.0) Adjustment to businesses' postretirement benefit expenses booked in consolidation (19.9) (25.2) (13.8) Other adjustments booked in consolidation directly related to reportable business segments 8.3 (.2) 3.3 Amounts allocated to businesses in arriving at segment profit in excess of (less than) Corporate center operating expenses, eliminations, and other amounts identified above (98.5) (41.8) (72.6) Operating income before restructuring and exit costs 601.2 740.4 794.9 Restructuring and exit costs 19.0 – – Operating income 582.2 740.4 794.9 Interest expense, net of interest income 82.3 73.8 45.4 Other expense (income) 2.3 2.2 (51.6) Earnings from continuing operations before income taxes $ 497.6 $ 664.4 $ 801.1
    • Reportable Business Segments Power Hardware Fastening Currency Corporate, Tools & & Home & Assembly Translation Adjustments, Quarter Ended April 1, 2007 Accessories Improvement Systems Total Adjustments & Eliminations Consolidated $ 1,177.5 $ 248.1 $ 178.8 $ 1,604.4 $ (27.2) $– $ 1,577.2 Sales to unaffiliated customers Segment profit (loss) (for Consolidated, 146.3 28.2 28.6 203.1 (4.0) (29.5) 169.6 operating income) 24.8 7.2 5.1 37.1 (.5) .6 37.2 Depreciation and amortization 13.0 4.8 2.4 20.2 (.2) .1 20.1 Capital expenditures Quarter Ended July 1, 2007 $ 1,273.8 $ 254.8 $ 182.8 $ 1,711.4 $ (11.5) $– $ 1,699.9 Sales to unaffiliated customers Segment profit (loss) (for Consolidated, 158.7 30.7 28.9 218.3 (1.5) (30.2) 186.6 operating income) 25.2 6.0 5.5 36.7 (.3) .7 37.1 Depreciation and amortization 14.9 5.9 4.9 25.7 (.2) 1.0 26.5 Capital expenditures Quarter Ended September 30, 2007 $ 1,189.9 $ 267.9 $ 176.6 $ 1,634.4 $ (.8) $– $ 1,633.6 Sales to unaffiliated customers Segment profit (loss) (for Consolidated, 122.7 33.1 27.6 183.4 (.1) (18.8) 164.5 operating income) 24.7 4.6 5.1 34.4 .1 .5 35.0 Depreciation and amortization 19.7 4.4 5.0 29.1 – (.3) 28.8 Capital expenditures Quarter Ended December 31, 2007 $ 1,202.5 $ 235.9 $ 180.1 $ 1,618.5 $ 34.0 $– $ 1,652.5 Sales to unaffiliated customers Segment profit (loss) (for Consolidated, operating income before restructuring 61.1 22.9 26.4 110.4 3.1 (33.0) 80.5 and exit costs) 22.7 5.0 4.9 32.6 .4 1.1 34.1 Depreciation and amortization 17.9 5.7 9.5 33.1 .8 7.1 41.0 Capital expenditures Quarter Ended April 2, 2006 $ 1,152.9 $ 253.1 $ 177.0 $ 1,583.0 $ (54.1) $– $ 1,528.9 Sales to unaffiliated customers Segment profit (loss) (for Consolidated, 141.6 33.9 25.5 201.0 (6.9) (25.9) 168.2 operating income) 27.3 5.8 4.9 38.0 (1.3) .7 37.4 Depreciation and amortization 20.3 1.6 2.8 24.7 (.8) – 23.9 Capital expenditures Quarter Ended July 2, 2006 $ 1,296.5 $ 263.2 $ 180.1 $ 1,739.8 $ (42.9) $– $ 1,696.9 Sales to unaffiliated customers Segment profit (loss) (for Consolidated, 181.8 41.7 27.2 250.7 (5.9) (18.5) 226.3 operating income) 27.1 6.4 4.9 38.4 (1.0) .4 37.8 Depreciation and amortization 19.1 3.5 3.2 25.8 (.5) .1 25.4 Capital expenditures Quarter Ended October 1, 2006 $ 1,226.2 $ 253.8 $ 165.3 $ 1,645.3 $ (35.1) $– $ 1,610.2 Sales to unaffiliated customers Segment profit (loss) (for Consolidated, 149.3 35.9 23.7 208.9 (4.1) (12.3) 192.5 operating income) 30.9 6.1 4.9 41.9 (1.0) .6 41.5 Depreciation and amortization 19.9 4.4 3.2 27.5 (.7) .1 26.9 Capital expenditures Quarter Ended December 31, 2006 $ 1,231.7 $ 244.4 $ 170.0 $ 1,646.1 $ (34.8) $– $ 1,611.3 Sales to unaffiliated customers Segment profit (loss) (for Consolidated, 118.6 26.8 24.0 169.4 (4.6) (11.4) 153.4 operating income) 29.0 4.6 4.8 38.4 (.7) .5 38.2 Depreciation and amortization 15.2 4.5 8.1 27.8 (.6) 1.2 28.4 Capital expenditures
    • The reconciliation of segment profit to the consolidated earnings before income taxes for each of the quarters in the years ended December 31, 2007 and 2006, in millions of dollars, is as follows: Quarter Ended April 1, July 1, September 30, December 31, 2007 2007 2007 2007 Segment profit for total reportable business segments $ 203.1 $ 218.3 $ 183.4 $ 110.4 Items excluded from segment profit: Adjustment of budgeted foreign exchange rates to actual rates (4.0) (1.5) (.1) 3.1 Depreciation of Corporate property (.2) (.3) (.2) (.7) Adjustment to businesses' postretirement benefit expenses booked in consolidation (4.8) (5.0) (5.0) (5.1) Other adjustments booked in consolidation directly related to reportable business segments 1.3 (4.9) 4.6 7.3 Amounts allocated to businesses in arriving at segment profit in excess of (less than) Corporate center operating expenses, eliminations, and other amounts identified above (25.8) (20.0) (18.2) (34.5) Operating income before restructuring and exit costs 169.6 186.6 164.5 80.5 Restructuring and exit costs – – – 19.0 Operating income 169.6 186.6 164.5 61.5 Interest expense, net of interest income 21.5 20.0 19.9 20.9 Other expense 1.1 .2 .9 .1 Earnings before income taxes $ 147.0 $ 166.4 $ 143.7 $ 40.5 Quarter Ended April 2, July 2, October 1, December 31, 2006 2006 2006 2006 Segment profit for total reportable business segments $ 201.0 $ 250.7 $ 208.9 $ 169.4 Items excluded from segment profit: Adjustment of budgeted foreign exchange rates to actual rates (6.9) (5.9) (4.1) (4.6) Depreciation of Corporate property (.2) (.3) (.2) (.2) Adjustment to businesses' postretirement benefit expenses booked in consolidation (6.2) (6.3) (6.4) (6.3) Other adjustments booked in consolidation directly related to reportable business segments (2.3) (2.0) 5.6 (1.5) Amounts allocated to businesses in arriving at segment profit in excess of (less than) Corporate center operating expenses, eliminations, and other amounts identified above (17.2) (9.9) (11.3) (3.4) Operating income 168.2 226.3 192.5 153.4 Interest expense, net of interest income 13.7 17.5 20.7 21.9 Other expense – .9 .9 .4 Earnings before income taxes $ 154.5 $ 207.9 $ 170.9 $ 131.1
    • BASIS OF PRESENTATION: The Corporation operates in three reportable business segments: Power Tools and Accessories, Hardware and Home Improvement, and Fastening and Assembly Systems. The Power Tools and Accessories segment has worldwide responsibility for the manufacture and sale of consumer and industrial power tools and accessories, lawn and garden products, and electric cleaning, automotive, lighting, and household products, as well as for product service. In addition, the Power Tools and Accessories segment has responsibility for the sale of security hardware to customers in Mexico, Central America, the Caribbean, and South America; and for the sale of plumbing products to customers outside the United States and Canada. On March 1, 2006, the Corporation acquired Vector Products, Inc., which is included in the Power Tools and Accessories segment. The Hardware and Home Improvement segment has worldwide responsibility for the manufacture and sale of security hardware (except for the sale of security hardware in Mexico, Central America, the Caribbean, and South America). The Hardware and Home Improvement segment also has responsibility for the manufacture of plumbing products and for the sale of plumbing products to customers in the United States and Canada. The Fastening and Assembly Systems segment has worldwide responsibility for the manufacture and sale of fastening and assembly systems. The profitability measure employed by the Corporation and its chief operating decision maker for making decisions about allocating resources to segments and assessing segment performance is segment profit (for the Corporation on a consolidated basis, operating income before restructuring and exit costs). In general, segments follow the same accounting policies as those described in Note 1 of Notes to Consolidated Financial Statements included in Item 8 of the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2007, except with respect to foreign currency translation and except as further indicated below. The financial statements of a segment’s operating units located outside of the United States, except those units operating in highly inflationary economies, are generally measured using the local currency as the functional currency. For these units located outside of the United States, segment assets and elements of segment profit are translated using budgeted rates of exchange. Budgeted rates of exchange are established annually and, once established, all prior period segment data is restated to reflect the current year's budgeted rates of exchange. The amounts included in the preceding table under the captions “Reportable Business Segments” and “Corporate, Adjustments, & Eliminations” are reflected at the Corporation’s budgeted rates of exchange for 2008. The amounts included in the preceding table under the caption “Currency Translation Adjustments” represent the difference between consolidated amounts determined using those budgeted rates of exchange and those determined based upon the rates of exchange applicable under accounting principles generally accepted in the United States. Segment profit excludes interest income and expense, non-operating income and expense, adjustments to eliminate intercompany profit in inventory, and income tax expense. In addition, segment profit excludes restructuring and exit costs. In determining segment profit, expenses relating to pension and other postretirement benefits are based solely upon estimated service costs. Corporate expenses, as well as certain centrally managed expenses, including expenses related to share-based compensation, are allocated to each reportable segment based upon budgeted amounts. While sales and transfers between segments are accounted for at cost plus a reasonable profit, the
    • effects of intersegment sales are excluded from the computation of segment profit. Intercompany profit in inventory is excluded from segment assets and is recognized as a reduction of cost of goods sold by the selling segment when the related inventory is sold to an unaffiliated customer. Because the Corporation compensates the management of its various businesses on, among other factors, segment profit, the Corporation may elect to record certain segment-related expense items of an unusual or non-recurring nature in consolidation rather than reflect such items in segment profit. In addition, certain segment-related items of income or expense may be recorded in consolidation in one period and transferred to the various segments in a later period.