Black & Decker 2015 Annual Report Download - page 20

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The Company has numerous trademarks that are used in its businesses worldwide. In the Tools & Storage segment, significant
trademarks include STANLEY®, BLACK+DECKER®, DEWALT®, Porter-Cable®, BOSTITCH®, FatMax®, Powers®,
Guaranteed Tough®, Innerspace®, MAC®, MAC Tools®, Proto®, Vidmar®, Facom®, USAG™, Lista®, and the yellow &
black color scheme for power tools and accessories. Significant trademarks in the Industrial segment include STANLEY®,
CRC®, LaBounty®, Dubuis®, AeroScout®, Cribmaster®, Expert®, SIDCHROME™, POP®, Warren®, GRIPCO®, Avdel®,
HeliCoil®, MasterFix®, Tucker®, NPR®, Dodge®, and Spiralock®. The Security segment includes significant trademarks
such as STANLEY®, BEST®, Blick™, HSM®, Sargent & Greenleaf®, S&G®, SONITROL®, Niscayah®, Stanley Access
Technologies™, AeroScout®, Hugs®, WanderGuard®, Roam Alert®, MyCall®, Arial® and Bed-Check®. The terms of these
trademarks typically vary from 10 to 20 years, with most trademarks being renewable indefinitely for like terms.
Environmental Regulations
The Company is subject to various environmental laws and regulations in the U.S. and foreign countries where it has
operations. Future laws and regulations are expected to be increasingly stringent and will likely increase the Company’s
expenditures related to environmental matters.
In the normal course of business, the Company is involved in various legal proceedings relating to environmental issues. The
Company’s policy is to accrue environmental investigatory and remediation costs for identified sites when it is probable that a
liability has been incurred and the amount of loss can be reasonably estimated. In the event that no amount in the range of
probable loss is considered most likely, the minimum loss in the range is accrued. The amount of liability recorded is based on
an evaluation of currently available facts with respect to each individual site and includes such factors as existing technology,
presently enacted laws and regulations, and prior experience in remediation of contaminated sites. The liabilities recorded do
not take into account any claims for recoveries from insurance or third parties. As assessments and remediation progress at
individual sites, the amounts recorded are reviewed periodically and adjusted to reflect additional technical and legal
information that becomes available. As of January 2, 2016 and January 3, 2015, the Company had reserves of $170.7 million
and $177.3 million, respectively, for remediation activities associated with Company-owned properties, as well as for
Superfund sites, for losses that are probable and estimable. Of the 2015 amount, $17.1 million is classified as current and
$153.6 million as long-term, which is expected to be paid over the estimated remediation period. As of January 2, 2016, the
Company has recorded $18.7 million in other assets related to funding by the Environmental Protection Agency ("EPA") and
monies received have been placed in trust in accordance with the Consent Decree associated with the West Coast Loading
Corporation ("WCLC") proceedings, as further discussed in Note S, Contingencies, of the Notes to Consolidated Financial
Statements in Item 8. Accordingly, the Company's cash obligation as of January 2, 2016 associated with the aforementioned
remediation activities is $152.0 million. The range of environmental remediation costs that is reasonably possible is $130.4
million to $260.8 million, which is subject to change in the near term. The Company may be liable for environmental
remediation of sites it no longer owns. Liabilities have been recorded on those sites in accordance with policy.
The amount recorded for identified contingent liabilities is based on estimates. Amounts recorded are reviewed periodically and
adjusted to reflect additional technical and legal information that becomes available. Actual costs to be incurred in future
periods may vary from the estimates, given the inherent uncertainties in evaluating certain exposures. Subject to the
imprecision in estimating future contingent liability costs, the Company does not expect that any sum it may have to pay in
connection with these matters in excess of the amounts recorded will have a materially adverse effect on its financial position,
results of operations or liquidity. Additional information regarding environmental matters is available in Note S, Contingencies,
of the Notes to Consolidated Financial Statements in Item 8.
Employees
At January 2, 2016, the Company had approximately 51,250 employees, 13,533 of whom are employed in the U.S.
Approximately 1,022 U.S. employees are covered by collective bargaining agreements negotiated with 29 different local labor
unions who are, in turn, affiliated with approximately 6 different international labor unions. The majority of the Company’s
hourly-paid and weekly-paid employees outside the U.S. are not covered by collective bargaining agreements. The Company’s
labor agreements in the U.S. expire between 2016 and 2020. There have been no significant interruptions of the Company’s
operations in recent years due to labor disputes. The Company believes that its relationship with its employees is good.
Research and Development Costs
Research and development costs, which are classified in SG&A, were $188.0 million, $174.6 million and $170.7 million for
fiscal years 2015, 2014 and 2013, respectively.