Black & Decker 2015 Annual Report Download - page 78

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64
The Company’s risk of loss following the sale of the receivables is limited to the deferred purchase price receivable, which was
$41.1 million at January 2, 2016 and $21.7 million at January 3, 2015. The deferred purchase price receivable will be repaid in
cash as receivables are collected, generally within 30 days, and as such the carrying value of the receivable recorded
approximates fair value. Delinquencies and credit losses on receivables sold were $0.3 million for both the years ended
January 2, 2016 and January 3, 2015. Cash inflows related to the deferred purchase price receivable totaled $416.9 million for
the year ended January 2, 2016 and $400.6 million for the year ended January 3, 2015. All cash flows under the program are
reported as a component of changes in accounts receivable within operating activities in the Consolidated Statements of Cash
Flows since all the cash from the Purchaser is either: 1) received upon the initial sale of the receivable; or 2) from the ultimate
collection of the underlying receivables and the underlying receivables are not subject to significant risks, other than credit risk,
given their short-term nature.
C. INVENTORIES
(Millions of Dollars) 2015 2014
Finished products......................................................................................................... $ 1,085.0 $ 1,105.0
Work in process............................................................................................................ 136.1 141.4
Raw materials............................................................................................................... 305.3 316.3
Total............................................................................................................................. $ 1,526.4 $ 1,562.7
Net inventories in the amount of $651.0 million at January 2, 2016 and $600.4 million at January 3, 2015 were valued at the
lower of LIFO cost or market. If the LIFO method had not been used, inventories would have been $26.7 million higher than
reported at January 2, 2016 and $34.9 million higher than reported at January 3, 2015.
D. PROPERTY, PLANT AND EQUIPMENT
(Millions of Dollars) 2015 2014
Land........................................................................................................................... $ 129.2 $ 136.3
Land improvements................................................................................................... 36.0 34.9
Buildings.................................................................................................................... 525.3 542.8
Leasehold improvements........................................................................................... 98.9 89.8
Machinery and equipment......................................................................................... 1,979.9 1,895.9
Computer software .................................................................................................... 397.5 381.0
Property, plant & equipment, gross........................................................................... $ 3,166.8 $ 3,080.7
Less: accumulated depreciation and amortization..................................................... (1,716.6)(1,626.6)
Property, plant & equipment, net............................................................................... $ 1,450.2 $ 1,454.1
Depreciation and amortization expense associated with property, plant and equipment was as follows:
(Millions of Dollars) 2015 2014 2013
Depreciation .......................................................................................... $ 219.2 $ 229.5 $ 208.7
Amortization.......................................................................................... 37.7 33.9 29.3
Depreciation and amortization expense................................................. $ 256.9 $ 263.4 $ 238.0
The amounts above are inclusive of depreciation and amortization expense for discontinued operations amounting to $2.7
million in 2014 and $2.8 million in 2013.
E. ACQUISITIONS
2015 ACQUISITIONS
The Company completed two small acquisitions for a total purchase price of $17.2 million, net of cash acquired, which are
being integrated into the Company's Security segment.