Black & Decker 2011 Annual Report Download - page 139

FINANCIAL AND INVESTOR COMMUNICATIONS
Stanley Black & Decker investor relations department provides
information to shareowners and the financial community. We
encourage inquiries and will provide services which include:
• Fullling requests for annual reports, proxy statements,
forms 10-Q and 10-K, copies of press releases and other
Company information.
• Meetings with securities analysts and fund managers.
Contact the Stanley Black & Decker investor relations
department at our corporate oces by calling Kate Vanek,
VP, Investor Relations at   or by mail at
 Stanley Drive, New Britain, CT . We make earnings
releases available online on the Internet on the day that
results are released to the news media. Stanley Black & Decker
releases and a variety of shareowner information can be found
at the Company’s website: www.stanleyblackanddecker.com.
FINANCIAL HIGHLIGHTS AND SCORECARD FOOTNOTES
(b) The Company has excluded the 2011 and 2010 after-tax
merger and acquisition-related charges of $200 million
($1.18 of diluted EPS) and $421 million ($2.80 of diluted EPS),
respectively, in the calculation of diluted EPS. Additionally
the Company has excluded $67 million ($0.66 of diluted EPS)
in the 2008 calculation of diluted EPS. These amounts were
excluded because the Company believes these are better
indicators of operating trends when analyzing diluted EPS,
due to the unusual large magnitude of these charges and the
fact that they are non-recurring. Therefore, the Company
has provided these measures both including and excluding
such charges.
(c) Free Cash Flow = Net cash provided by operating activities
minus capital expenditures. In 2011 and 2010, free cash
ow excludes $307 million and $382 million of merger
and acquisition-related charges and payments incurred
primarily in connection with the Black & Decker merger and
acquisition of Niscayah. Such normalized free cash ow is
considered a meaningful metric to aid the understanding
of the Company’s cash flow performance aside from the
material impact of these merger and acquisition-related
charges/payments. In 2008, free cash ow also excludes
income taxes paid on the gain from the CST/Berger divesture
due to the fact the taxes are non-recurring and the related
gross cash proceeds are classified as investing inflows.
Refer to page 28 in the enclosed 10-K for the reconciliation of
operating cash flow to free cash flow.
(d) Working Capital Turns are computed as year-end working
capital (accounts receivable, inventory and accounts
payable) divided by fourth quarter sales, annualized.
(e) Average Capital Employed is computed by dividing the
13-point average of debt and equity.
(f) ROCE is computed as net earnings from continuing
operations plus after-tax expense and after-tax amortization
of intangibles, divided by the 13-point average of debt
and equity. For 2011 and 2010, net earnings from continuing
operations exclude $200 million and $421 million of
merger and acquisition-related charges incurred primarily
in connection with the Black & Decker merger and
Niscayah acquisition.
CAUTIONARY STATEMENTS UNDER THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 
Statements in this Annual Report that are not historical,
including, but not limited to, those that often contain words
such as “expect,” “anticipate,” “intend,” “plan,” “believe,”
“seek,” “see,” or “will,” are “forward-looking statements” and
subject to risk and uncertainty. The results that are expressed
or implied in such statements involve inherent risks and
uncertainties that could cause actual outcomes and results to
dier materially from those expectations, including, but not
limited to, the risks, uncertainties and other factors set forth
or referred to under Item 1A Risk Factors and Item 7 MD&A of
the Company’s 2011 Annual Report on the Form 10-K that is
part of this Annual Report, and any material changes thereto
set forth in any subsequent Quarterly Reports on Form 10-Q,
as well as those contained in the Company’s other filings
with the Securities and Exchange Commission. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements to reflect events or circumstances
that may arise after the date hereof.
Visit www.yearinreview.stanleyblackanddecker.com to
view videos and pictures that bring exciting aspects of the
Stanley Black & Decker story to life, to explore our nancials,
and to read about our businesses, our brands and our plans
for growth.
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