Black & Decker 2015 Annual Report Download - page 33

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19
earnings attributable to common shareowners was 248 basis points lower. The Income tax rate - continuing operations
ratio was 761 basis points lower.
(b) The Company's 2012 results include $442 million of pre-tax charges related to merger and acquisition-related charges,
the charges associated with the $200 million in cost actions implemented in 2012, as well as the charges associated with
the extinguishment of debt during the third quarter of 2012. As a result of these charges, net earnings attributable to
common shareowners were reduced by $329 million (or $1.97 per diluted share). As a percentage of Net Sales, Cost of
sales was 30 basis points higher, Selling, general & administrative was 138 basis points higher, Other-net was 53 basis
points higher, Earnings before income taxes was 441 basis points lower, and Net earnings attributable to common
shareowners was 328 basis points lower. The Income tax rate - continuing operations ratio was 514 basis points lower.
During 2012, the Company recognized an income tax benefit attributable to the settlement of certain tax contingencies
of $49 million, or $0.29 per diluted share.
(c) The Company’s 2011 results include $227 million of pre-tax merger and acquisition-related charges incurred in
connection with the Black & Decker merger and other acquisition activities, such as Niscayah. These charges include
facility closure-related charges, employee related matters, including severance costs, transaction and integration costs.
As a result of these charges, net earnings attributable to common shareowners were reduced by $180 million (or $1.06
per diluted share). As a percentage of Net sales, Cost of sales was 23 basis points higher, Selling, general &
administrative was 105 basis points higher, Other-net was 52 basis points higher, Earnings before income taxes was
243 basis points lower, and Net earnings attributable to common shareowners was 193 basis points lower. The Income
tax rate - continuing operations ratio was 321 basis points lower. During 2011, the Company recognized an income tax
benefit attributable to the settlement of certain tax contingencies of $73 million, or $0.43 per diluted share.
(d) Discontinued operations in 2015 reflects a $20 million loss, or $0.13 per diluted share, primarily related to operating
losses associated with the Security segment’s Spain and Italy operations (“Security Spain and Italy”), which were
classified as held for sale in the fourth quarter of 2014 and subsequently sold in 2015. Amounts in 2014 reflect a $96
million loss, or $0.60 per diluted share, associated with Security Spain and Italy as well as two small businesses that
were divested in 2014. Amounts in 2013 reflect a $30 million loss, or $0.19 per diluted share, associated with Security
Spain and Italy, HHI, and two small businesses that were divested in 2014. Amounts in 2012 reflect earnings of $426
million, or $2.55 per diluted share, related to Security Spain and Italy as well as HHI, partially offset by losses
associated with two small businesses previously discussed. The net (loss) earnings from discontinued operations in
2013 and 2012 include net gains related to the HHI sale of $4.7 million and $358.9 million, respectively. Refer to Note
T, Discontinued Operations, of the Notes to Consolidated Financial Statements in Item 8 for further discussion.
Amounts in 2011 reflect earnings of $63 million (or $0.37 per diluted share) related to Security Spain and Italy, HHI,
two small businesses divested in 2014, and three small businesses divested during 2011.
(e) SG&A is inclusive of the Provision for Doubtful Accounts.