Black & Decker 2011 Annual Report Download - page 116

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104
For 2010, both basic and diluted earnings per share for the full year do not equal the sum of the basic and diluted earnings per share as
reported for the first through fourth quarters. This is primarily due to a significant increase in basic and diluted weighted average
shares outstanding from the issuance of stock to former Black & Decker shareowners as a result of the Merger.
During 2010, the Company recognized $538 million ($421 million after tax), or $2.80 per diluted share, in charges primarily related to
the Merger which included amortization of inventory step-up, facility closure-related charges, certain executive compensation and
severance costs, transaction and integration costs partially offset by pension curtailment gains. The impact of these merger and
acquisition-related charges and effect on diluted earnings per share by quarter was as follows:
Merger and Acquisition
-
Related Charge
Diluted EPS Impact
• Q1 2010 — $213 million ($179 million after-tax) ................................................................
.......................
$1.19 per diluted share
• Q2 2010 — $229 million ($160 million after-tax) ................................................................
.......................
$1.07 per diluted share
• Q3 2010 — $57 million ($41 million after-tax) ................................................................
...........................
$0.27 per diluted share
• Q4 2010 — $39 million ($41 million after-tax) ................................................................
...........................
$0.27 per diluted share
In the second quarter of 2010, the Company recognized an income tax benefit attributable to the settlement of certain tax
contingencies of $36 million, or $0.24 per diluted share ($0.21 per diluted share on a full-year basis).