Black & Decker 2010 Annual Report Download - page 85

prevailing in prior years as compared with the cost of 2009 purchases, the effect of which increased Cost of
sales by approximately $6.5 million and decreased Net earnings attributable to Stanley by approximately
$4.0 million.
D. PROPERTY, PLANT AND EQUIPMENT
(Millions of Dollars) 2010 2009
Land ..................................................... $113.9 $44.1
Land improvements .......................................... 40.6 23.8
Buildings ................................................. 464.2 284.2
Leasehold improvements ...................................... 43.0 29.8
Machinery and equipment ..................................... 1,300.2 902.7
Computer software .......................................... 225.1 209.9
Property, plant & equipment, gross .............................. $2,187.0 $1,494.5
Less: accumulated depreciation and amortization .................... (1,020.5) (918.6)
Property, plant & equipment, net ................................ $1,166.5 $575.9
As more fully disclosed in Note E. Merger and Acquisitions, in connection with the Merger, the Company
acquired property, plant and equipment with a fair value of $569.9 million.
Depreciation and amortization expense associated with property, plant and equipment was as follows:
(Millions of Dollars) 2010 2009 2008
Depreciation............................................... $177.4 $76.1 $74.0
Amortization .............................................. 26.0 19.4 18.5
Depreciation and amortization expense ........................... $203.4 $95.5 $92.5
The amounts above are inclusive of discontinued operations depreciation and amortization expense of
$0.5 million in 2008.
E. MERGER AND ACQUISITIONS
MERGER
On March 12, 2010 (the “merger date”), a wholly owned subsidiary of The Stanley Works (“Stanley”) was
merged with and into Black & Decker, with the result that Black & Decker became a wholly owned subsidiary
of Stanley. As part of the Merger, Black & Decker stockholders received 1.275 shares of Stanley stock for
each share outstanding as of the merger date. All of the outstanding Black & Decker shares and equity based
awards were exchanged for Stanley shares and equity awards as part of the Merger. Fractional shares generated
by the conversion ratio were cash settled for $0.3 million. After the exchange was completed, pre-merger
Stanley shareowners retained ownership of 50.5% of the combined Company. In conjunction with consummat-
ing the Merger, the name of the combined Company was changed to “Stanley Black & Decker, Inc”.
Black & Decker is a global manufacturer and marketer of power tools and accessories, hardware and home
improvement products, and technology-based fastening systems. The Merger creates a larger and more globally
diversified company with a broad array of products and services with significant exposure to growing and
profitable product areas. Stanley and Black & Decker’s product lines are generally complementary, and do not
present areas of significant overlap. By combining the two companies, there are significant cost saving
opportunities through reductions in corporate overhead, business unit and purchasing consolidation, and by
combining elements of manufacturing and distribution.
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