Black & Decker 2011 Annual Report Download - page 18

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Environmental Regulations
The Company is subject to various environmental laws and regulations in the U.S. and foreign countries where it has operations.
Future laws and regulations are expected to be increasingly stringent and will likely increase the Company’s expenditures related to
environmental matters.
In the normal course of business, the Company is involved in various lawsuits and claims. In addition, the Company is a party to a
number of proceedings before federal and state regulatory agencies relating to environmental remediation. 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. In the event that 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 December 31, 2011 and January 1,
2011, the Company had reserves of $165 million and $173 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 2011 amount, $12 million is
classified as current and $153 million as long-term, which is expected to be paid over the estimated remediation period. The range of
environmental remediation costs that is reasonably possible is $140 million to $355 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 policy.
The amount recorded for 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 matters in
excess of the amounts recorded will have a materially adverse effect on its financial position, results of operations or liquidity.
Additional information regarding environmental matters is available in Note S, Contingencies, of the Notes to the Consolidated
Financial Statements in Item 8.
Employees
At December 31, 2011, the Company had approximately 44,700 employees, 16,600 of whom are employed in the U.S. Approximately
800 U.S. employees are covered by collective bargaining agreements negotiated with 21 different local labor unions who are, in turn,
affiliated with approximately 6 different international labor unions. The majority of the Company’s hourly-paid and weekly-paid
employees outside the U.S. are not covered by collective bargaining agreements. The Company’s labor agreements in the U.S. expire
in 2012, 2013, and 2014. There have been no significant interruptions of the Company’s operations in recent years due to labor
disputes. The Company believes that its relationship with its employees is good.
Available Information
The Company’s website is located at http://www.stanleyblackanddecker.com. This URL is intended to be an inactive textual reference
only. It is not intended to be an active hyperlink to our website. The information on our website is not, and is not intended to be, part
of this Form 10-K and is not incorporated into this report by reference. The Company makes its Forms 10-K, 10-Q, 8-K and
amendments to each available free of charge on its website as soon as reasonably practicable after filing them with, or furnishing them
to, the U.S. Securities and Exchange Commission.
ITEM 1A. RISK FACTORS
The Company’s business, operations and financial condition are subject to various risks and uncertainties. You should carefully
consider the risks and uncertainties described below, together with all of the other information in this Annual Report on Form 10-K,
including those risks set forth under the heading entitled "Cautionary Statements Under the Private Securities Litigation Reform Act
of 1995", and in other documents that the Company files with the U.S. Securities and Exchange Commission, before making any
investment decision with respect to its securities. If any of the risks or uncertainties actually occur or develop, the Company’s
business, financial condition, results of operations and future growth prospects could change. Under these circumstances, the trading
prices of the Company’s securities could decline, and you could lose all or part of your investment in the Company’s securities.