Black & Decker 2015 Annual Report Download - page 18

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4
Tools & Storage
The Tools & Storage segment is comprised of the Power Tools and Hand Tools & Storage businesses. The segment sells its
products to professional end users, distributors, retail consumers and industrial customers in a wide variety of industries and
geographies. The majority of sales are distributed through retailers, including home centers, mass merchants, hardware stores,
and retail lumber yards, as well as third-party distributors and a direct sales force. Annual revenues in the Tools & Storage
segment were $7.1 billion in 2015, representing 64% of the Company’s total revenues.
The Power Tools business includes professional products, consumer products, and power tool accessories. Professional
products include professional grade corded and cordless electric power tools and equipment including drills, impact wrenches
and drivers, grinders, saws, routers and sanders, as well as pneumatic tools and fasteners including nail guns, nails, staplers and
staples, concrete and masonry anchors. Consumer products include corded and cordless electric power tools sold primarily
under the BLACK+DECKER brand, lawn and garden products, including hedge trimmers, string trimmers, lawn mowers,
edgers and related accessories, and home products such as hand-held vacuums, paint tools and cleaning appliances. Power tool
accessories include drill bits, router bits, abrasives and saw blades.
The Hand Tools & Storage business sells measuring, leveling and layout tools, planes, hammers, demolition tools, knives,
saws, chisels and industrial and automotive tools. Storage products include tool boxes, sawhorses, medical cabinets and
engineered storage solution products.
Security
The Security segment is comprised of the Convergent Security Solutions ("CSS") and Mechanical Access Solutions ("MAS")
businesses. Annual revenues in the Security segment were $2.1 billion in 2015, representing 19% of the Company’s total
revenues.
The CSS business designs, supplies and installs electronic security systems and provides electronic security services, including
alarm monitoring, video surveillance, fire alarm monitoring, systems integration and system maintenance. Purchasers of these
systems typically contract for ongoing security systems monitoring and maintenance at the time of initial equipment
installation. The business also sells healthcare solutions, which include asset tracking solutions, infant protection, pediatric
protection, patient protection, wander management, fall management, and emergency call products. The CSS business sells to
consumers, retailers, educational, financial and healthcare institutions, as well as commercial, governmental and industrial
customers. Products are sold predominantly on a direct sales basis.
The MAS business sells and installs automatic doors, commercial hardware, locking mechanisms, electronic keyless entry
systems, keying systems, tubular and mortise door locksets. MAS sells to commercial customers primarily through independent
distribution channels.
Industrial
The Industrial segment is comprised of the Engineered Fastening and Infrastructure businesses. Annual revenues in the
Industrial segment were $1.9 billion in 2015, representing 17% of the Company’s total revenues.
The Engineered Fastening business primarily sells engineered fastening products and systems designed for specific
applications. The product lines include stud welding systems, blind rivets and tools, blind inserts and tools, drawn arc weld
studs, engineered plastic and mechanical fasteners, self-piercing riveting systems and precision nut running systems, micro
fasteners, and high-strength structural fasteners. The business sells to customers in the automotive, manufacturing, electronics,
and aerospace industries, amongst others, and its products are distributed through direct sales forces and, to a lesser extent,
third-party distributors.
The Infrastructure business consists of the Oil & Gas and Hydraulics businesses. The Oil & Gas business sells and rents custom
pipe handling, joint welding and coating equipment used in the construction of large and small diameter pipelines, and provides
pipeline inspection services. The Hydraulics business sells hydraulic tools and accessories. The Infrastructure businesses sell to
the oil and natural gas pipeline industry and other industrial customers. The products and services are primarily distributed
through a direct sales force and, to a lesser extent, third-party distributors.