Black & Decker 2011 Annual Report Download - page 84

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72
pound sterling net investment. For the year ended December 31, 2011, maturing foreign exchange contracts resulted in net cash
payments of $36.0 million. For the year ended January 1, 2011, maturing foreign exchange contracts resulted in net cash receipts of
$14.9 million. Gains and losses on net investment hedges remain in Accumulated other comprehensive income (loss) until disposal of
the underlying assets. The details of the pre-tax amounts are below (in millions):
Year
-
to
-
Date 2011
Year
-
to
-
Date 2010
Income Statement
Classification
Amount
Recorded in OCI
Gain (Loss)
Effective Portion
Recorded in Income
Statement
Ineffective
Portion*
Recorded in
Income
Statement
Amount
Recorded in OCI
Gain (Loss)
Effective Portion
Recorded in Income
Statement
In
effective
Portion*
Recorded in
Income
Statement
Other-net
....................
$ (2.4) $ —
$ — $ (31.4) $ —
$ —
* Includes ineffective portion and amount excluded from effectiveness testing.
UNDESIGNATED HEDGES
Foreign Exchange Contracts: Currency swaps and 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 of these practices is to minimize the impact of foreign currency fluctuations on operating results. The total notional
amount of the contracts outstanding at December 31, 2011 was $3.9 billion of forward contracts and $100.8 million in currency swaps,
maturing at various dates primarily through May 2013 with the currency swap maturing in December 2014. The total notional amount
of the contracts outstanding at January 1, 2011 was $2.3 billion of forward contracts and $219.4 million in currency swaps. The most
significant cash flows related to undesignated hedges during 2011 and 2010 included net cash paid of $58.9 million and $6.7 million,
respectively. The income statement impacts related to derivatives not designated as hedging instruments for 2011 and 2010 are as
follows (in millions):
Derivatives Not
Designated as Hedging
Instruments under ASC 815
Income
Statement
Classification
Year
-
to
-
Date
2011
Amount of Gain (Loss)
Recorded in Income on
Derivative
Year
-
to
-
Date
2010
Amount of Gain (Loss)
Recorded in Income on
Derivative
Foreign Exchange Contracts
..............................
Other-net
$ (3.3) $ 38.5
Cost of Sales
$ —
$ 1.0
J. CAPITAL STOCK
EARNINGS PER SHARE — The following table reconciles net earnings attributable to common shareowners and the weighted
average shares outstanding used to calculate basic and diluted earnings per share for the fiscal years ended December 31, 2011,
January 1, 2011, and January 2, 2010.
Earnings per Share Computation
2011
2010
2009
Numerator (in millions):
................................................................
.
Net earnings from continuing operations attributable to common
shareowners ................................................................
...............
$ 691.3 $ 202.1 $ 225.6
Net loss from discontinued operations
................................
............
(16.7)
(3.9)
(1.3)
Net earnings attributable to common shareow
ners
.........................
$ 674.6
$ 198.2
$ 224.3
Less: Earnings attributable to participating restricted stock
units (“RSU’s”) ................................
................................
1.4 0.5 0.3
Net Earnings — basic ................................
............................
$ 673.2
$ 197.7
$ 224.0
Net Earnings — diluted ................................
.........................
$ 674.6
$ 198.2
$ 224.3
2011
2010
2009
Denominator (in thousands): ................................
.......................
Basic earnings per share –– weighted-average shares
........
165,832
147,224
79,788
Dilutive effect of stock options and awards
.......................
4,273
2,943
608
Diluted earnings per share –– weighted-average shares
........
170,105
150,167
80,396