Black & Decker 2012 Annual Report Download - page 36

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During 2011, the Company completed nine other acquisitions for a total purchase price of $216.2 million, net of cash acquired.
The purchase price allocations for these acquisitions have been completed. There were no significant changes to the purchase
price allocations made during 2012.
2011 Divestitures
The Company sold three small businesses during 2011 for total cash proceeds of $27 million. The largest of these businesses
was part of the Company’s Industrial segment, with the two smaller businesses being part of the Company’s Security segment.
Net sales associated with these businesses were $61 million and $66 million in 2011 and 2010, respectively. These businesses
were sold as the related product lines provided limited growth opportunity or were not considered part of the Company’s core
offerings. The operating results of these three businesses have been reported as discontinued operations in the Consolidated
Statements of Operations for 2011 and 2010.
Refer to Note E, Merger and Acquisitions, and Note T, Discontinued Operations, for further discussion of the Company's
acquisitions and divestitures.
Driving Further Profitable Growth Within Existing Platforms
While diversifying the business portfolio through expansion in the Company’s specified growth platforms is important,
management recognizes that the branded tool and storage product offerings in the CDIY and Industrial segment businesses are
important foundations of the Company that continue to provide strong cash flow and growth prospects. Management is
committed to growing these businesses through innovative product development, as evidenced by CDIY's success with the 12-
volt and 18/20-volt MAX lithium ion power tool lines marketed under the D
E WALT brand and the new Black & Decker
Matrix™ and Gyro™ products. Increasing brand support, continued investment in emerging markets and a sharp focus on
global cost competitiveness are all expected to foster vitality over the long term. The Company’s IAR business within the
Industrial segment continues to reap benefits from its vertical integration of hand and power tools used for industrial and
automotive repair purposes as well as advanced industrial storage solutions.
Continuing to Invest in the Stanley Black & Decker Brands
The Company has a strong portfolio of brands associated with high-quality products including Stanley®, FatMax®,
D
E WALT®, Black & Decker®, Porter-Cable®, Bostitch®, Facom®, Mac®, Proto®, CRC®, Emhart Teknologies™,
Vidmar®, and Niscayah®. The Stanley®, Black & Decker® and D
E WALT® brands are recognized as three of the world's
great brands and are amongst the Company's most valuable assets. Sustained brand support has yielded a steady improvement
across the spectrum of legacy Stanley brand awareness measures, notably a climb in unaided Stanley hand tool brand
awareness from 27% in 2005 to 47% in 2012. During 2012, Stanley and D
E WALT had prominent signage at 11 major league
baseball stadiums or 40% of all major league baseball games. The Company is also maintaining long-standing NASCAR racing
sponsorships which will provide brand exposure over 36 race weekends in 2013. The Company is in year five of a ten year
alliance agreement with the Walt Disney World Resort® whereby Stanley® logos are displayed on construction walls
throughout the theme parks and Stanley®, Mac®, Proto®, and Vidmar® brand logos and/or products are featured in various
attractions where they will be seen by millions of visitors each year. Additionally, Stanley is “The Official Tool Provider of the
Walt Disney World Resort®.” In 2009, the Company also began advertising in the English Premier League, which is the
number one soccer league in the world, watched weekly by 650 million people. From the beginning of 2012 through the end of
2013, the Company will advertise in approximately 225 televised events. Starting in 2011, the Company became a sponsor of
the Liverpool Football Club and the Fulham Football Club including player rights, hospitality assets and stadium signage. The
Company advertises in 60 televised Professional Bull Riders events in the US and Brazil and sponsors five riders. Additionally,
the Company sponsors a team and two riders in Moto GP, the world's premiere motorcycle racing series. The Company will
continue to allocate its brand and advertising spend wisely generating more than 25 billion brand impressions annually.
The Stanley Fulfillment System (SFS)
SFS employs continuous improvement techniques to streamline operations and drive efficiency throughout the supply chain.
SFS has five primary elements that work in concert: sales and operations planning (“S&OP”), operational lean, complexity
reduction, global supply management, and order-to-cash excellence. S&OP is a dynamic and continuous unified process that
links and balances supply and demand in a manner that produces world-class fill rates while minimizing DSI (Days Sales of
Inventory). Operational lean is the systemic application of lean principles in progressive steps throughout the enterprise to
optimize flow toward a pre-defined end state by eliminating waste, increasing efficiency and driving value. Complexity
reduction is a focused and overt effort to eradicate costly and unnecessary complexity from the Company's products, supply
chain and back room process and organizations. Complexity reduction enables all other SFS elements and, when successfully
deployed, results in world-class cost, speed of execution and customer satisfaction. Global supply management focuses on
strategically leveraging the company’s scale to achieve the best possible price and payment terms with the best possible quality,