You are here

Financial Highlights

Share

Financial Highlights

(Millions of dollars,
except per-share amounts, continuing operations)
2019(1)2018(1)2017(1)20162015(2)
SWK     
Revenue$14,442.2$13,982.4$12,966.6$11,593.5$11,171.8
Gross Margin—$$4,845.2$4,916.8$4,825.1$4,268.0$4,072.0
Gross Margin—%33.5%35.2%37.2%36.8%36.4%
Working Capital Turns9.88.89.110.89.2
Free Cash Flow*$1,081$769$976$1,138$871
Diluted EPS$8.40$8.15$7.46$6.53$5.92
Tools & Storage     
Revenue$10,062.1$9,814.0$9,045.0$7,619.2$7,140.7
Segment Profit—$$1,577.6$1,535.7$1,520.7$1,258.4$1,170.1
Segment Profit—%15.7%15.6%16.8%16.5%16.4%
Industrial     
Revenue$2,434.7$2,187.8$1,974.3$1,864.0$1,938.2
Segment Profit—$$359.9$345.8$345.9$300.1$339.9
Segment Profit—%14.8%15.8%17.5%16.1%17.5%
Security     
Revenue$1,945.4$1,980.6$1,947.3$2,110.3$2,092.9
Segment Profit—$$212.3$211.5$213.7$267.9$239.6
Segment Profit—%10.9%10.7%11.0%12.7%11.4%

Chart Notes

  1. With the exception of Free Cash Flow, results exclude acquisition-related charges, a non-cash fair value adjustment, gain or loss on sales of businesses, an environmental remediation settlement, a cost reduction program, an incremental freight charge related to a service provider’s bankruptcy, charges related to the extinguishment of debt, Security business transformation, margin resiliency initiatives and tax charges related to recently enacted U.S. tax legislation, as applicable.
  2. 2015 results are shown as previously reported, which excludes the impacts from the 2018 adoption of Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” and ASU 2017-07, “Compensation—Retirement Benefits.”
  • Free Cash Flow = Net cash flow from operating activities less capital and software expenditures. Free Cash Flow for 2015–2017 is shown as previously reported, which excludes the impacts from the 2018 adoption of ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments” and ASU 2016-18, “Restricted Cash.”

2019 Scorecard

Adjusted EBITDA
(Continuing Operations)
(a) ($ MILLIONS)

EPS (Continuing operations)(b) ($ GAAP)($ Adjusted)

Free Cash Flow(c) ($ millions)

Working Capital Turns(d)

Average Capital Employed(e) ($ billions)

Cash Flow Return on Investment(f)

Total Sales Growth

Organic Sales Growth

(Millions of dollars, continuing operations)20192018201720162015
Net earnings before equity interest$969$605$1,227$968$904
Interest income(54)(69)(40)(23)(15)
Interest expense284278223194180
Income taxes161416301262249
Depreciation and amortization560507461408414
EBITDA$1,920$1,737$2,172$1,809$1,732
Pre-tax acquisition-related charges and other363450(108)
Adjusted EBITDA$2,283$2,187$2,064$1,809$1,732

Chart Notes

零风险炒股策略(a) “EBITDA” (earnings before interest, taxes, depreciation, and amortization) and “Adjusted EBITDA” are non-GAAP measurements. Management believes Adjusted EBITDA, which excludes the impacts of acquisition-related and other charges, is important for the ability to determine the earnings power of the Company. Adjusted EBITDA for 2019 results excludes $363 million of (pre-tax) charges related to restructuring, acquisitions, charges related to the extinguishment of debt, Security business transformation, margin resiliency initiatives, and a gain on a sale of a business. Adjusted EBITDA for 2018 results excludes $450 million of (pre-tax) charges related to acquisitions, an environmental remediation settlement, a non-cash fair value adjustment, a cost reduction program, an incremental freight charge related to a service provider’s bankruptcy, and a loss related to a previously divested business. Adjusted EBITDA for 2017 results excludes $156 million of (pre-tax) charges related to acquisition-related charges and a $264 million (pre-tax) gain on sales of businesses.

(b) The Company has excluded $309 million of after-tax charges ($2.05 of diluted EPS) related to restructuring, acquisitions, charges related to the extinguishment of debt, Security business transformation, margin resiliency initiatives, a gain on a sale of a business, and a charge related to the Company’s share of equity method investment earnings, in the 2019 calculation of diluted EPS. The Company has excluded $631 million of after-tax charges ($4.16 of diluted EPS) related to acquisitions, an environmental remediation settlement, a non-cash fair value adjustment, a cost reduction program, an incremental freight charge related to a supplier’s bankruptcy, a loss related to a previously divested business, and tax charges primarily related to the enactment of new U.S. tax legislation, in the 2018 calculation of diluted EPS. The Company has excluded $91 million of after-tax income ($0.59 of diluted EPS) related to the gain on sales of businesses, partially offset by acquisition-related charges and a one-time net tax charge related to the enactment of new U.S. tax legislation, in the 2017 calculation of diluted EPS. These amounts were excluded because the Company believes doing so provides a better indicator of operating trends when analyzing diluted EPS, due to the unusually large magnitude of these amounts and the fact that they are expected to be non-recurring. Therefore, the Company has provided these measures both including and excluding such amounts. 

零风险炒股策略(c) Free Cash Flow = Net cash flow from operating activities less capital and software expenditures. Cash flow from operating activities for 2015–2017 represent as previously reported amounts, which excludes the impacts from the 2018 adoption of ASU 2016-15 and ASU 2016-18.

(d) Working Capital Turns are computed as annualized fourth-quarter sales divided by year-end working capital (accounts receivable, inventory, accounts payable, and deferred revenue). 

(e) Average Capital Employed is computed as the 2-point average of debt and equity. 

零风险炒股策略(f) Cash Flow Return on Investment is computed as cash from operations plus after-tax interest expense, divided by the 2-point average of debt and equity.