Black & Decker 2014 Annual Report Download - page 18

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4
Description of the Business
The Company’s operations are classified into three reportable business segments, which also represent its operating segments:
Construction & Do-It-Yourself (“CDIY”), Industrial and Security. All segments have significant international operations in
developed countries, but do not have large investments that would be subject to expropriation risk in developing countries.
Fluctuations in foreign currency exchange rates result in translational and transactional impacts to international operations in
each segment.
Additional information regarding the Company’s business segments and geographic areas is incorporated herein by reference to
the material captioned “Business Segment Results” in Item 7 and Note P, Business Segments and Geographic Areas, of the
Notes to Consolidated Financial Statements in Item 8.
CDIY
The CDIY segment is comprised of the Professional Power Tool business, the Consumer Products Group, which includes
outdoor products, the Hand Tools & Storage business, and the Fastening & Accessories business. The segment sells its products
to professional end users, distributors and retail consumers. The majority of sales are distributed through retailers, including
home centers, mass merchants, hardware stores, and retail lumber yards. Annual revenues in the CDIY segment were $5.6
billion in 2014, representing 49% of the Company’s total revenues.
The Professional Power Tool business sells professional grade corded and cordless electric power tools and equipment
including drills, impact wrenches and drivers, grinders, saws, routers and sanders.
The Consumer Products Group sells corded and cordless electric power tools sold primarily under the Black & Decker brand,
lawn and garden products and home products. Lawn and garden products include hedge trimmers, string trimmers, lawn
mowers, edgers, and related accessories. Home products include hand held vacuums and cleaning appliances.
The Hand Tools & Storage business sells measuring, leveling and layout tools, planes, hammers, demolition tools, knives, saws
and chisels. Storage products include tool boxes, sawhorses and storage units.
The Fastening and Accessories business sells cordless power tools, pneumatic tools and fasteners including nail guns, nails,
staplers and staples, concrete and masonry anchors, as well as power tool accessories which include drill bits, router bits,
abrasives and saw blades.
Industrial
The Industrial segment is comprised of the Industrial and Automotive Repair ("IAR"), Engineered Fastening and Infrastructure
businesses. Annual revenues in the Industrial segment were $3.5 billion in 2014, representing 31% of the Company’s total
revenues.
The IAR business sells professional hand tools, power tools and engineered storage solution products. The business sells to
industrial customers in a wide variety of industries and geographies. The products are distributed through third party
distributors as well as a direct sales force.
The Engineered Fastening business primarily sells engineered fastening products and systems designed for specific
applications. The product lines include stud welding systems, blind rivets and tools, blind inserts and tools, drawn arc weld
studs, engineered plastic and mechanical fasteners, self-piercing riveting systems and precision nut running systems, micro
fasteners, and high-strength structural fasteners. The business sells to customers in the automotive, manufacturing, electronics,
and aerospace industries, amongst others, and its products are distributed through direct sales forces and, to a lesser extent,
third party distributors.
The Infrastructure business consists of the Oil & Gas and Hydraulics businesses. The Oil & Gas business sells and rents custom
pipe handling, joint welding and coating equipment used in the construction of large and small diameter pipelines, and provides
pipeline inspection services. The Hydraulics business sells hydraulic tools and accessories. The Infrastructure businesses sell to
the oil and natural gas pipeline industry and other industrial customers. The products and services are primarily distributed
through a direct sales force and, to a lesser extent, third party distributors.
Security
The Security segment is comprised of the Convergent Security Solutions ("CSS") and Mechanical Access Solutions ("MAS")
businesses. Annual revenues in the Security segment were $2.3 billion in 2014, representing 20% of the Company’s total
revenues.