STANLEY BLACK & DECKER, INC.SWK
STANLEY BLACK & DECKER, INC. Goodwill & Intangibles Disclosure
GOODWILL AND INTANGIBLE ASSETS
GOODWILL — The changes in the carrying amount of goodwill by segment are as follows:
| (Millions of Dollars) | Tools & Outdoor | Engineered Fastening | Total | |||||||||||||||||
| Balance December 30, 2023 | $ | 5,976.3 | $ | 2,019.6 | $ | 7,995.9 | ||||||||||||||
| Foreign currency translation and other | (67.1) | (23.3) | (90.4) | |||||||||||||||||
| Balance December 28, 2024 | $ | 5,909.2 | $ | 1,996.3 | $ | 7,905.5 | ||||||||||||||
| Foreign currency translation and other | 116.1 | 5.7 | 121.8 | |||||||||||||||||
| Reclassification to assets held for sale | — | (739.4) | (739.4) | |||||||||||||||||
| Balance January 3, 2026 | $ | 6,025.3 | $ | 1,262.6 | $ | 7,287.9 | ||||||||||||||
As required by the Company's policy, the Company performed its annual goodwill impairment testing in the third quarter of 2025. The Company assessed the fair values of its two reporting units utilizing a discounted cash flow valuation model. The key assumptions used were discount rates and perpetual growth rates applied to cash flow projections. Also inherent in the discounted cash flow valuations were near-term revenue growth rates and Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") margin rates. These assumptions contemplated business, market and overall economic conditions. Based on the results of the annual impairment testing performed in the third quarter of 2025, the Company determined that the fair values of each of its reporting units exceeded their respective carrying amounts.
When a portion of a reporting unit is classified as held for sale, the Company allocates goodwill to the disposal group based on the relative fair values of the business to be disposed of and the portion of the reporting unit that will be retained. The Company then performs a goodwill impairment test on the remaining reporting unit. As previously discussed, in December 2025, the Company entered into an agreement to sell its CAM business. As of January 3, 2026, the Company classified the CAM business, a portion of the Engineered Fastening reporting unit, as held for sale and allocated $739.4 million of the goodwill of the Engineered Fastening reporting unit to CAM. The Company then performed a goodwill impairment test on the remaining reporting unit after the allocation to CAM, which did not result in impairment.
Refer to Note S, Divestitures, for further discussion of the pending CAM divestiture.
INTANGIBLE ASSETS — Definite-lived intangible assets at January 3, 2026 and December 28, 2024 were as follows:
| 2025 | 2024 | ||||||||||||||||||||||
| (Millions of Dollars) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||||||||||
| Amortized Intangible Assets — Definite-lived | |||||||||||||||||||||||
| Patents and copyrights | $ | 27.1 | $ | (27.1) | $ | 25.3 | $ | (25.2) | |||||||||||||||
| Trade names | 197.5 | (134.1) | 222.0 | (134.0) | |||||||||||||||||||
| Customer relationships | 2,014.1 | (1,247.4) | 2,550.7 | (1,257.3) | |||||||||||||||||||
| Other intangible assets | 130.8 | (129.7) | 129.8 | (127.9) | |||||||||||||||||||
| Total | $ | 2,369.5 | $ | (1,538.3) | $ | 2,927.8 | $ | (1,544.4) | |||||||||||||||
Net intangibles totaling $410.1 million were reclassified to assets held for sale as of January 3, 2026 related to the pending divestiture of the CAM business.
Indefinite-lived trade names totaled $2.256 billion at January 3, 2026 and $2.348 billion at December 28, 2024. The year-over-year change is primarily due to a $108.4 million pre-tax, non-cash impairment charge, as discussed below, as well as currency fluctuations.
As required by the Company’s policy, the Company tested its indefinite-lived trade names for impairment during the third quarter of 2025 utilizing a discounted cash flow model. The key assumptions used included discount rates, royalty rates, and perpetual growth rates applied to the projected sales. With the exception of the Lenox, Troy-Bilt, and Irwin trade names discussed below, the Company determined that the fair values of its indefinite-lived trade names exceeded their respective carrying amounts.
During 2025, the Company updated its brand prioritization strategy to transition targeted product categories to its priority global brands, while leveraging certain of its complementary brands on more focused product categories and regions where those brands hold more meaningful market positions and value to end users. As a result of these strategic decisions, the Company recognized a $108.4 million pre-tax, non-cash impairment charge related to the Lenox, Troy-Bilt, and Irwin trade names in the third quarter of 2025. Subsequent to this impairment charge, the carrying value of the Lenox, Troy-Bilt, and Irwin trade names totaled $119.6 million. In the third quarter of 2024, the Company recognized a $41.0 million pre-tax, non-cash related to the Lenox trade name. The Lenox, Troy-Bilt, and Irwin trade names, which the Company intends to continue utilizing indefinitely in a more focused manner as described above, represented approximately 5% of 2025 net sales for the Tools & Outdoor segment.
Intangible assets amortization expense by segment was as follows:
| (Millions of Dollars) | 2025 | 2024 | 2023 | ||||||||||||||
| Tools & Outdoor | $ | 96.6 | $ | 101.6 | $ | 103.1 | |||||||||||
| Engineered Fastening | 50.2 | 61.6 | 89.6 | ||||||||||||||
| Consolidated | $ | 146.8 | $ | 163.2 | $ | 192.7 | |||||||||||
Future amortization expense in each of the next five years amounts to $111.1 million for 2026, $103.8 million for 2027, $100.4 million for 2028, $99.3 million for 2029, $95.9 million for 2030 and $320.7 million thereafter.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Feb 24, 2026 | Showing above |
| 2024 | Feb 18, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 22, 2022 | |
| 2021 | Feb 18, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 19, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.