----

----

| FOR      THE FISCAL YEAR ENDED | COMMISSION      FILE NUMBER |
|--------------------------------|-----------------------------|
| December      31, 2009         | 1-01553                     |

|   | Maryland                                                        | 52-0248090                                   |   |
|--------|-----------------------------------------------------------------|----------------------------------------------|--------|
|   | (State      of Incorporation)                                   | (I.R.S.      Employer Identification Number) |   |
|   |                                                            |                                         |   |
|   | Towson,      Maryland                                           | 21286                                        |   |
|   | (Address      of principal executive offices)                   | (Zip      Code)                              |   |
|   |                                                            |                                         |   |
|   | (410)      716-3900                                             |                                         |
|   | (Registrant’s      telephone number, including area code) |                                         |

| Title      of each class                    | Name      of each exchange on which registered |
|---------------------------------------------|------------------------------------------------|
| Common      Stock, par value $.50 per share | New      York Stock Exchange                   |

| Securities      registered pursuant to Section 12(g) of the Act: | None |
|------------------------------------------------------------------|------|

| Large      accelerated filer x | Accelerated      filer o | Non-accelerated      filer o |  Smaller      reporting company o |
|--------------------------------|--------------------------|------------------------------|----------------------------------------|

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----

----

----

----

----

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| • | NOLAN      D. ARCHIBALD – 66 |
|---------|------------------------------------|

|   | Chairman,      President, and Chief Executive Officer, |
|--------|--------------------------------------------------------|

|   | January      1990 – present. |
|--------|------------------------------------|

| • | BRUCE      W. BROOKS – 45 |
|---------|---------------------------------|

|   | Group      Vice President of the Corporationand |
|--------|-------------------------------------------------|

|   | President      – Consumer Products Group, |
|--------|-------------------------------------------------|

|   | Power      Tools and Accessories, |
|--------|-----------------------------------|

|   | January      2009 – present; |
|--------|------------------------------------|

|   | Group      Vice President of the Corporationand |
|--------|-------------------------------------------------|

|   | President      – Consumer Products Group |
|--------|------------------------------------------------|

|   | for      North America, |
|--------|-------------------------|

|   | Power      Tools and Accessories, |
|--------|-----------------------------------|

|   | September      2008 – January 2009; |
|--------|-------------------------------------------|

|   | Group      Vice President of the Corporationand |
|--------|-------------------------------------------------|

|   | President      – Consumer Products Group, |
|--------|-------------------------------------------------|

|   | Power      Tools and Accessories, |
|--------|-----------------------------------|

|   | March      2007 – September 2008; |
|--------|-----------------------------------------|

|   | Vice      President of the Corporation and President – Construction      Tools, Industrial Products Group, |
|--------|------------------------------------------------------------------------------------------------------------------|

|   | Power      Tools and Accessories, |
|--------|-----------------------------------|

|   | May      2005 – March 2007; |
|--------|-----------------------------------|

|   | Vice      President and General Manager – |
|--------|-------------------------------------------------|

|   | Construction      Tools, Industrial Products Group, |
|--------|-----------------------------------------------------|

|   | Power      Tools and Accessories, |
|--------|-----------------------------------|

|   | October      2004 – May 2005. |
|--------|-------------------------------------|

| • | JAMES      T. CAUDILL – 42 |
|---------|----------------------------------|

|   | Group      Vice President of the Corporationand |
|--------|-------------------------------------------------|

|   | President      – Hardware and Home Improvement, |
|--------|-------------------------------------------------------|

|   | July      2006 – present; |
|--------|---------------------------------|

|   | Vice      President of the Corporation and President – Hardware      and Home Improvement, |
|--------|--------------------------------------------------------------------------------------------------|

|   | May      2005 – July 2006; |
|--------|----------------------------------|

|   | Vice      President and General Manager – |
|--------|-------------------------------------------------|

|   | Accessories,      Industrial Products Group, |
|--------|----------------------------------------------|

|   | Power      Tools and Accessories Group, |
|--------|-----------------------------------------|

|   | October      2004 – May 2005. |
|--------|-------------------------------------|

----

| • | CHARLES      E. FENTON – 61 |
|---------|-----------------------------------|

|   | Senior      Vice President and General Counsel, |
|--------|-------------------------------------------------|

|   | December      1996 – present. |
|--------|-------------------------------------|

| •  | LES      H. IRELAND – 45 |
|---------------|--------------------------------|

|   | Vice      President of the Corporation and |
|--------|--------------------------------------------|

|   | President      – North America, |
|--------|---------------------------------------|

|   | Power      Tools and Accessories, |
|--------|-----------------------------------|

|   | January      2009 – present; |
|--------|------------------------------------|

|   | Vice      President of the Corporation and |
|--------|--------------------------------------------|

|   | President      – Commercial Operations – |
|--------|------------------------------------------------------|

|   | Industrial      Products Group, |
|--------|---------------------------------|

|   | Power      Tools and Accessories, |
|--------|-----------------------------------|

|   | April      2008 – January 2009; |
|--------|---------------------------------------|

|   | Vice      President of the Corporation and |
|--------|--------------------------------------------|

|   | President      – Europe, Middle East, Africa, |
|--------|-----------------------------------------------------|

|   | Power      Tools and Accessories, |
|--------|-----------------------------------|

|   | January      2005 – April 2008; |
|--------|---------------------------------------|

|   | Vice      President of the Corporation and |
|--------|--------------------------------------------|

|   | Managing      Director – Commercial Operations, |
|--------|-------------------------------------------------------|

|   | Europe,      Black & Decker Consumer Group, |
|--------|-------------------------------------------------|

|   | Power      Tools and Accessories Group, |
|--------|-----------------------------------------|

|   | November      2001 – January 2005. |
|--------|------------------------------------------|

| • | MICHAEL      D. MANGAN – 53 |
|---------|-----------------------------------|

|   | Senior      Vice President of the Corporation and |
|--------|---------------------------------------------------|

|   | President      – Worldwide Power Tools andAccessories, |
|--------|--------------------------------------------------------------|

|   | September      2008 – present; |
|--------|--------------------------------------|

|   | Senior      Vice President and Chief Financial Officer, January      2000 – September 2008. |
|--------|---------------------------------------------------------------------------------------------------|

| • | PAUL      F. McBRIDE      – 54 |
|---------|--------------------------------------|

|   | Senior      Vice President – Human Resources |
|--------|----------------------------------------------------|

|   | and      Corporate Initiatives, |
|--------|---------------------------------|

|   | March      2004 – present. |
|--------|----------------------------------|

| •  | CHRISTINA      M. McMULLEN      – 54 |
|---------------|--------------------------------------------|

|   | Vice      President and Controller, |
|--------|-------------------------------------|

|   | April      2000 – present. |
|--------|----------------------------------|

| • | ANTHONY      V. MILANDO – 47 |
|---------|------------------------------------|

|   | Vice      President of the Corporation and |
|--------|--------------------------------------------|

|   | Vice      President Global Operations, |
|--------|----------------------------------------|

|   | Power      Tools and Accessories, |
|--------|-----------------------------------|

|   | January      2009 – present; |
|--------|------------------------------------|

|   | Vice      President of the Corporation and |
|--------|--------------------------------------------|

|   | Vice      President – Industrial Products Group |
|--------|-------------------------------------------------------|

|   | Global      Operations, |
|--------|-------------------------|

|   | Power      Tools and Accessories, |
|--------|-----------------------------------|

|   | July      2008 – January 2009; |
|--------|--------------------------------------|

|   | Vice      President – Industrial ProductsGroup |
|--------|------------------------------------------------------|

|   | Global      Operations, |
|--------|-------------------------|

|   | Power      Tools and Accessories, |
|--------|-----------------------------------|

|   | November      2005 – July 2008; |
|--------|---------------------------------------|

|   | Vice      President – Global Sourcing, |
|--------|----------------------------------------------|

|   | Power      Tools and Accessories, |
|--------|-----------------------------------|

|   | March      2001 – November 2005. |
|--------|----------------------------------------|

| •  | AMY      K. O’KEEFE – 39 |
|---------------|--------------------------------------|

|   | Vice      President of the Corporation and |
|--------|--------------------------------------------|

|   | Vice      President – Worldwide Power Tools |
|--------|---------------------------------------------------|

|   | and      Accessories Finance, |
|--------|-------------------------------|

|   | September      2008 – present; |
|--------|--------------------------------------|

|   | Vice      President of Finance, |
|--------|---------------------------------|

|   | Hardware      and Home Improvement Group, |
|--------|-------------------------------------------|

|   | August      2004 – September 2008. |
|--------|------------------------------------------|

| • | JAIME      A. RAMIREZ – 42 |
|---------|----------------------------------|

|   | Vice      President of the Corporation and President – Latin      America, Power Tools andAccessories, |
|--------|--------------------------------------------------------------------------------------------------------------|

|   | September      2008 – present; |
|--------|--------------------------------------|

|   | Vice      President and General Manager – |
|--------|-------------------------------------------------|

|   | Latin      America, Power Tools andAccessories, |
|--------|-------------------------------------------------|

|   | May      2007 – September 2008; |
|--------|---------------------------------------|

|   | Vice      President and General Manager – |
|--------|-------------------------------------------------|

|   | Andean      Region, Power Tools andAccessories, |
|--------|-------------------------------------------------|

|   | July      2000 – May 2007. |
|--------|----------------------------------|

| • | JAMES      R. RASKIN – 49 |
|---------|---------------------------------|

|   | Vice      President of the Corporation and |
|--------|--------------------------------------------|

|   | Vice      President – Business Development, |
|--------|---------------------------------------------------|

|   | July      2006 – present; |
|--------|---------------------------------|

|   | Vice      President – Business Development, |
|--------|---------------------------------------------------|

|   | May      2002 – July 2006. |
|--------|----------------------------------|

| •  | STEPHEN      F. REEVES – 50 |
|---------------|-----------------------------------|

|   | Senior      Vice President and Chief FinancialOfficer, |
|--------|--------------------------------------------------------|

|   | September      2008 – present; |
|--------|--------------------------------------|

|   | Vice      President of the Corporation and |
|--------|--------------------------------------------|

|   | Vice      President – Global Finance, |
|--------|---------------------------------------------|

|   | Power      Tools and Accessories, |
|--------|-----------------------------------|

|   | March      2004 – September 2008. |
|--------|-----------------------------------------|

| • | MARK      M. ROTHLEITNER – 51 |
|---------|-------------------------------------|

|   | Vice      President – Investor Relations andTreasurer, |
|--------|--------------------------------------------------------------|

|   | January      2000 – present. |
|--------|------------------------------------|

| •  | JOHN      W. SCHIECH – 51 |
|---------------|---------------------------------|

|   | Group      Vice President of the Corporationand |
|--------|-------------------------------------------------|

|   | President      – Industrial Products Group, |
|--------|---------------------------------------------------|

|   | Power      Tools and Accessories, |
|--------|-----------------------------------|

|   | January      2009 – present; |
|--------|------------------------------------|

|   | Group      Vice President of the Corporation |
|--------|----------------------------------------------|

|   | and      President – Industrial Products Group |
|--------|------------------------------------------------------|

|   | for      North America, Power Tools andAccessories, |
|--------|-----------------------------------------------------|

|   | September      2008 – January 2009; |
|--------|-------------------------------------------|

|   | Group      Vice President of the Corporation |
|--------|----------------------------------------------|

|   | and      President – Industrial Products Group, |
|--------|-------------------------------------------------------|

|   | Power      Tools and Accessories, |
|--------|-----------------------------------|

|   | March      2004 – September 2008. |
|--------|-----------------------------------------|

| •  | NATALIE      A. SHIELDS – 53 |
|---------------|------------------------------------|

|   | Vice      President and Corporate Secretary, |
|--------|----------------------------------------------|

|   | April      2006 – present; |
|--------|----------------------------------|

|   | International      Tax and Trade Counsel, |
|--------|-------------------------------------------|

|   | June      1993 – April 2006. |
|--------|------------------------------------|

----

| •  | BEN      S. SIHOTA – 51 |
|---------------|-------------------------------|

|   | Vice      President of the Corporation and President – |
|--------|--------------------------------------------------------------|

|   | Asia      Pacific, Power Tools andAccessories, |
|--------|------------------------------------------------|

|   | February      2006 – present; |
|--------|-------------------------------------|

|   | President      – Asia, Power Tools andAccessories, |
|--------|----------------------------------------------------------|

|   | September      2000 – February 2006. |
|--------|--------------------------------------------|

| •  | WILLIAM      S. TAYLOR – 54 |
|---------------|-----------------------------------|

|   | Vice      President of the Corporation and |
|--------|--------------------------------------------|

|   | Vice      President – Global Product Development |
|--------|--------------------------------------------------------|

|   | Industrial      Products Group, |
|--------|---------------------------------|

|   | Power      Tools and Accessories, |
|--------|-----------------------------------|

|   | January      2009 – present; |
|--------|------------------------------------|

|   | Vice      President of the Corporation and |
|--------|--------------------------------------------|

|   | Vice      President – Industrial Products |
|--------|-------------------------------------------------|

|   | Group      Product Development, |
|--------|---------------------------------|

|   | Power      Tools and Accessories, |
|--------|-----------------------------------|

|   | July      2008 – January 2009; |
|--------|--------------------------------------|

|   | Vice      President – Industrial ProductsGroup |
|--------|------------------------------------------------------|

|   | Product      Development, |
|--------|---------------------------|

|   | Power      Tools and Accessories, |
|--------|-----------------------------------|

|   | April      2008 – July 2008; |
|--------|------------------------------------|

|   | Vice      President/General Manager – |
|--------|---------------------------------------------|

|   | Industrial      Accessories Business, |
|--------|---------------------------------------|

|   | Power      Tools and Accessories, |
|--------|-----------------------------------|

|   | June      2005 – April 2008; |
|--------|------------------------------------|

|   | Vice      President and General Manager – |
|--------|-------------------------------------------------|

|   | Woodworking      Tools, Power Tools and Accessories, |
|--------|------------------------------------------------------|

|   | October      2004 – June 2005. |
|--------|--------------------------------------|

| •  | MICHAEL      A. TYLL – 53 |
|---------------|---------------------------------|

|   | Group      Vice President of the Corporationand |
|--------|-------------------------------------------------|

|   | President      – Fastening and Assembly Systems, |
|--------|--------------------------------------------------------|

|   | April      2006 – present; |
|--------|----------------------------------|

|   | President      – Automotive Division, |
|--------|---------------------------------------------|

|   | Fastening      and Assembly Systems, |
|--------|--------------------------------------|

|   | January      2001 – April 2006. |
|--------|---------------------------------------|

| •  | JOHN      H. A. WYATT – 51 |
|---------------|----------------------------------|

|   | Vice      President of the Corporation and |
|--------|--------------------------------------------|

|   | President      – Europe, Middle East, and Africa, |
|--------|---------------------------------------------------------|

|   | Power      Tools and Accessories, |
|--------|-----------------------------------|

|   | September      2008 – present; |
|--------|--------------------------------------|

|   | Vice      President – Consumer Products – |
|--------|-------------------------------------------------------|

|   | Europe,      Middle East, and Africa, |
|--------|---------------------------------------|

|   | Power      Tools and Accessories, |
|--------|-----------------------------------|

|   | October      2006 – September 2008. |
|--------|-------------------------------------------|

----

----

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| QUARTER                  |  2009 |   |   | 2008   |   |
|--------------------------|------------|--------|--------|--------|--------|
| January      to March    |       | $      | 46.66  |   | to     |   | $ | 20.10 |   |   | $ | 74.24 |   | to |   | $ | 61.71 |   |
| April      to June       |       | $      | 41.28  |   | to     |   | $ | 27.10 |   |   | $ | 71.23 |   | to |   | $ | 57.50 |   |
| July      to September   |       | $      | 51.12  |   | to     |   | $ | 26.44 |   |   | $ | 69.50 |   | to |   | $ | 51.56 |   |
| October      to December |       | $      | 67.13  |   | to     |   | $ | 42.51 |   |   | $ | 62.09 |   | to |   | $ | 32.31 |   |

| QUARTER                  |  2009 |   |  2008 |   |
|--------------------------|------------|--------|------------|--------|
| January      to March    |       | $      | .42        |   |   | $ | .42 |   |
| April      to June       |       |   | .12        |   |   |   | .42 |   |
| July      to September   |       |   | .12        |   |   |   | .42 |   |
| October      to December |       |   | .12        |   |   |   | .42 |   |
|                     |       | $      | .78        |   |   | $ | 1.68 |   |

----

| (1)  | Assumes      $100 invested at the close of business on December 31, 2004 in Black &      Decker common stock, Standard & Poor’s (S&P) 500 Index, and the      Peer Group. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)  | The      cumulative total return assumes reinvestment of  dividends. |
|-----------|----------------------------------------------------------------------|

| (3)  | The      Peer Group consists of the companies in the following indices within the      Standard & Poor’s Super Composite 1,500: Household Appliances,      Housewares & Specialties, Industrial Machinery, and Building Products.      A list of the companies in the Peer Group will be furnished upon request      addressed to the Corporate Secretary at 701 East Joppa Road, Towson,      Maryland 21286. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)  | Total      return is weighted according to market capitalization of each company at      the beginning of each year. |
|-----------|----------------------------------------------------------------------------------------------------------------------|

| PERIOD      (a)                                       | TOTAL      NUMBEROF      SHARESPURCHASED | (b)  | AVERAGEPRICE      PAIDPER      SHARE | TOTAL      NUMBEROF      SHARES PURCHASED      ASPART      OF PUBLICLYANNOUNCED      PLANS | MAXIMUM      NUMBEROF      SHARESTHAT      MAY YETBE      PURCHASEDUNDER      THE PLANS | (c)    |
|-------------------------------------------------------|------------------------------------------|-----------|--------------------------------------|-------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|--------|
| September      28, 2009 through October      25, 2009 | 2,816                                    |      | $                                    | 45.64                                                                                           | —                                                                                 |   | 3,777,145 |   |
| October      26, 2009 through November      29, 2009  | 186,326                                  |      |                                 | 59.76                                                                                           | —                                                                                 |   | 3,777,145 |   |
| November      30, 2009 through December      31, 2009 | —                                  |      |                                 | —                                                                                         | —                                                                                 |   | 3,777,145 |   |
| Total                                                 | 189,142                                  |      | $                                    | 59.55                                                                                           | —                                                                                 |   | 3,777,145 |   |

| (a)  | The      periods represent the Corporation’s monthly fiscal    calendar. |
|-----------|--------------------------------------------------------------------------------|

| (b)  | Shares      acquired from associates to satisfy withholding tax requirements upon the      vesting of restricted stock. |
|-----------|-------------------------------------------------------------------------------------------------------------------------|

| (c)  | The      maximum number of shares that may yet be purchased under the plans      represent the remaining shares that are available pursuant to the      Corporation’s publicly announced repurchase plans. The maximum number of      shares that may yet be purchased under the plans noted above included      4,000,000 shares authorized by the Board of Directors on October 17, 2007,      and 2,000,000 shares authorized by the Board of Directors on February 14,      2008. Under the terms of the definitive merger agreement to create Stanley      Black & Decker, absent the consent of The Stanley Works, the      Corporation has agreed not to repurchase shares of its common stock      pending consummation of the merger. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (DOLLARS      IN MILLIONS EXCEPT PER SHARE DATA)             |   2009 |        (c) |   2008 |        (d) |   2007 |  (e) |  2006 |          |   2005 |  (f) |
|--------------------------------------------------------------|------------------|-----------------|-------------|-----------------|-------------|-----------|------------|--------------------|-------------|-----------|
| Sales                                                        |             | $               | 4,775.1     |            |        | $         | 6,086.1    |               |        | $         | 6,563.2 |   |   | $ | 6,447.3 |   |   | $ | 6,523.7 |   |
| Net      earnings from continuing operations                 |             |            | 132.5       |            |        |      | 293.6      |               |        |      | 518.1 |   |   |   | 486.1 |   |   |   | 532.2 |   |
| Loss      from discontinued operations (g)                   |             |            | —     |            |        |      | —    |               |        |      | — |   |   |   | — |   |   |   | (.1 | ) |
| Net      earnings                                            |             |            | 132.5       |            |        |      | 293.6      |               |        |      | 518.1 |   |   |   | 486.1 |   |   |   | 532.1 |   |
| Net      earnings per common share – basic             |             |            | 2.18        |            |        |      | 4.83       |               |        |      | 7.96 |   |   |   | 6.67 |   |   |   | 6.68 |   |
| Net      earnings per common share – assuming dilution |             |            | 2.17        |            |        |      | 4.77       |               |        |      | 7.78 |   |   |   | 6.51 |   |   |   | 6.51 |   |
| Total      assets                                            |             |            | 5,495.2     |            |        |      | 5,183.3    |               |        |      | 5,410.9 |   |   |   | 5,247.7 |   |   |   | 5,842.4 |   |
| Long-term      debt                                          |             |            | 1,715.0     |            |        |      | 1,444.7    |               |        |      | 1,179.1 |   |   |   | 1,170.3 |   |   |   | 1,030.3 |   |
| Cash      dividends per common share                         |             |            | .78         |            |        |      | 1.68       |               |        |      | 1.68 |   |   |   | 1.52 |   |   |   | 1.12 |   |

| (a)  | The      Corporation adopted a new accounting standard effective January 1, 2009,      that clarifies whether instruments granted in share-based payment      transactions should be included in the computation of earnings per share      using the two-class method prior to vesting, and, as required,      retrospectively adjusted basic and diluted earnings per share for all      prior periods to reflect the adoption of that  standard. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)  | The      Corporation adopted a new accounting standard effective January 1, 2006,      for the recognition of stock-based compensation expense using the modified      retrospective method of adoption whereby the Corporation restated all      prior periods presented based on amounts previously recognized for      purposes of pro forma disclosures. Amounts in this five-year summary for      2005 reflect such restated amounts. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)  | Earnings      from continuing operations for 2009 includes a restructuring charge of      $11.9 million before taxes ($8.4 million after taxes). In addition,      earnings from continuing operations for 2009 includes merger-related      expenses of $58.8 million ($42.6 million after taxes) relating to the      Corporation’s proposed merger with The Stanley  Works. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)  | Earnings      from continuing operations for 2008 includes a restructuring charge of      $54.7 million before taxes ($39.6 million after taxes). |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)  | Earnings      from continuing operations for 2007 includes a favorable $153.4 million      settlement of tax litigation. In addition, earnings from continuing      operations for 2007 includes a charge for an environmental remediation      matter of $31.7 million before taxes ($20.6 million after taxes) and a      restructuring charge of $19.0 million before taxes ($12.8 million after      taxes). |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)  | Earnings      from continuing operations for 2005 includes a favorable $55.0 million      before taxes ($35.8 million after taxes) settlement of environmental and      product liability coverage litigation with an insurer. In addition,      earnings from continuing operations for 2005 includes $51.2 million of      incremental tax expense resulting from the repatriation of $888.3 million      of foreign earnings under the American Jobs Creation Act of      2004. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)  | Loss      from discontinued operations represents the loss, net of applicable income      taxes, of the Corporation’s discontinued European security hardware      business. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (DOLLARS      IN MILLIONS) |  2009 |   |  2008 |          |  2007 |   |
|----------------------------|------------|--------|------------|---------------|------------|--------|
| Total      sales           |       | $      | 4,775.1    |          |       | $      | 6,086.1 |   |   | $ | 6,563.2 |   |
| Unit      volume           |       |   | (20        | ) %      |       |   | (9 | )      % |   |   | (1 | )      % |
| Price                      |       |   | 1          |        % |       |   | — |        % |   |   | — |   % |
| Currency                   |       |   | (3         | )      %      |       |   | 2 |        % |   |   | 3 |        % |
| Change      in total sales |       |   | (22        | )      %      |       |   | (7 | )      % |   |   | 2 |        % |

|                                               |   | YEAR      ENDED DECEMBER 31, |      |
|----------------------------------------------------|--------|------------------------------|-----------|
| (PERCENTAGE      OF SALES)                         |   | 2009                         |      |   | 2008 |   |   | 2007 |   |
| Gross      margin                                  |   |                         | 33.2      | % |   |   | 32.8 | % |   |   | 33.9 | % |
| Selling,      general, and administrative expenses |   |                         | 26.5      | % |   |   | 25.0 | % |   |   | 24.7 | % |
| Merger-related      expenses                       |   |                         |  1.2 | %  |   |   | — | %  |   |   | — | %  |
| Restructuring      and exit costs                  |   |                         | .3        | % |   |   | .9 | % |   |   | .3 | % |
| Operating      income                              |   |                         | 5.2       | % |   |   | 6.9 | % |   |   | 8.9 | % |

----

----

| YEAR      ENDED DECEMBER 31,         |  2009 |   |  2008 |   |  2007 |   |
|--------------------------------------|------------|--------|------------|--------|------------|--------|
| Sales      to unaffiliated customers |       | $      | 3,471.5    |   |       | $      | 4,286.6 |   |   | $ | 4,754.8 |   |
| Segment      profit                  |       |   | 257.3      |   |       |   | 317.4 |   |   |   | 482.2 |   |

----

| YEAR      ENDED DECEMBER 31,         |  2009 |   |  2008 |   |  2007 |   |
|--------------------------------------|------------|--------|------------|--------|------------|--------|
| Sales      to unaffiliated customers |       | $      | 755.4      |   |       | $      | 891.6 |   |   | $ | 1,001.7 |   |
| Segment      profit                  |       |   | 76.9       |   |       |   | 75.8 |   |   |   | 113.6 |   |

| YEAR      ENDED DECEMBER 31,         |  2009 |   |  2008 |   |  2007 |   |
|--------------------------------------|------------|--------|------------|--------|------------|--------|
| Sales      to unaffiliated customers |       | $      | 536.6      |   |       | $      | 703.2 |   |   | $ | 720.7 |   |
| Segment      profit                  |       |   | 39.5       |   |       |   | 106.0 |   |   |   | 113.9 |   |

----

----

----

----

| (U.S.      DOLLARS IN MILLIONS)                            |  2010 |   |  2011 |   |  2012 |   |  2013 |    |  2014 |   |  THEREAFTER |   |  TOTAL |   |  FAIR      VALUE (ASSETS)/ LIABILITIES |   |
|------------------------------------------------------------|------------|--------|------------|--------|------------|--------|------------|---------|------------|--------|------------------|--------|-------------|--------|-------------------------------------------------------|--------|
| LIABILITIES                                                |       |   |       |   |       |   |       |    |       |   |             |   |        |   |                                                  |   |   |   |   |   |   |   |   |   |
| Short-term      borrowings                                 |       |   |       |   |       |   |       |    |       |   |             |   |        |   |                                                  |   |   |   |   |   |   |   |   |   |
| Variable      rate (U.S. dollars andother      currencies) |       | $      | —    |   |       | $      | —    |    |       | $      | —          |   |        | $      | —                                               |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |
| Average      interest rate                                 |       |   |       |   |       |   |       |    |       |   |             |   |        |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term      debt                                        |       |   |       |   |       |   |       |    |       |   |             |   |        |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Variable      rate (U.S. dollars)                          |       | $      | —    |   |       | $      | 75.0       |    |       | $      | 100.0            |   |        | $      | —                                               |   |   | $ | — |   |   | $ | — |   |   | $ | 175.0 |   |   | $ | 175.0 |   |
| Average      interest rate                                 |       |   |       |   |       |   | 1.37       | %  |       |   | 1.44             | %      |        |   |                                                  |   |   |   |   |   |   |   |   |   |   |   | 1.41 | % |   |   |   |   |
| Fixed      rate (U.S. dollars)                             |       | $      | —    |   |       | $      | 400.0      |    |       | $      | —          |   |        | $      | —                                               |   |   | $ | 650.0 |   |   | $ | 450.0 |   |   | $ | 1,500.0 |   |   | $ | 1,611.7 |   |
| Average      interest rate                                 |       |   |       |   |       |   | 7.13       | %  |       |   |             |   |        |   |                                                  |   |   |   | 7.01 | %  |   |   | 6.18 | % |   |   | 6.79 | % |   |   |   |   |
| INTEREST      RATE DERIVATIVES                             |       |   |       |   |       |   |       |    |       |   |             |   |        |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed      to Variable Rate Interest                       |       |   |       |   |       |   |       |    |       |   |             |   |        |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rate      Swaps (U.S. dollars)                             |       | $      | —    |   |       | $      | 100.0      |    |       | $      | —          |   |        | $      | —                                               |   |   | $ | 200.0 |   |   | $ | 25.0 |   |   | $ | 325.0 |   |   | $ | (26.6 | ) |
| Average      pay rate (a)                                  |       |   |       |   |       |   |       |    |       |   |             |   |        |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average      receive rate                                  |       |   |       |   |       |   |  4.87 | %  |       |   |             |   |        |   |                                                  |   |   |   | 4.64 | %  |   |   | 5.97 | % |   |   | 4.81 | % |   |   |   |   |

| (a)  | The      average pay rate for swaps in the notional principal amount of $125.0      million is based upon 3-month forward LIBOR (with swaps in the notional      principal amounts of $100.0 million maturing in 2011 and $25.0 million      maturing thereafter). The average pay rate for the remaining swap is based      upon 6-month forward LIBOR. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                               |  2009 |    |  2008 |   |  2007 |    |
|----------------------------------------------------|------------|---------|------------|--------|------------|---------|
| Cash      flow from operating activities      |       | $       | 485.6      |   |       | $       | 425.4 |   |   | $ | 725.9 |   |
| Cash      flow from investing activities      |       |    | 96.5       |   |       |    | (61.4 | ) |   |   | (149.8 | ) |
| Cash      flow from financing activities |       |    | 210.6      |   |       |    | (317.0 | ) |   |   | (568.2 | ) |
| Effect      of exchange rate changes on cash       |       |    | 12.7       |   |       |    | (23.9 | ) |   |   | 13.5 |   |
| Increase      in cash and cash equivalents         |       | $  | 805.4      |   |       | $  | 23.1 |   |   | $  | 21.4 |   |
| Cash      and cash equivalents at end of year      |       | $       | 1,083.2    |   |       | $       | 277.8 |   |   | $ | 254.7 |   |

|                                                     |   | 2009   |   |   | 2008   |   |
|----------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Cash      flow from operating activities            |   | $      | 485.6  |   |   | $      | 425.4 |   |
| Capital      expenditures                                |   |   | (63.1  | )      |   |   | (98.8 | ) |
| Proceeds      from disposals of assets                   |   |   | 3.2    |   |   |   | 20.4 |   |
|    Free      cash flow                    |   |   | 425.7  |   |   |   | 347.0 |   |
| Cash      inflow from net investment hedging activities  |   |   | 196.0  |   |   |   | 72.4 |   |
| Cash      outflow from net investment hedging activities |   |   | (38.2  | )      |   |   | (29.7 | ) |
|   Net      cash generation                     |   | $      | 583.5  |   |   | $      | 389.7 |   |

----

|                                 | LONG-TERM DEBT | SHORT-TERM DEBT | OUTLOOK |
|--------------------------------------|---------------------|----------------------|---------|
| Moody’s      Investors Service | Baa3                | P3                   | Upgrade |
| Standard      & Poor’s     | BBB                 | A3                   | Upgrade |
| Fitch      Ratings                   | BBB                 | F2                   | Upgrade |

----

|                                            |                                  | PAYMENTS      DUE BY PERIOD  |
|-------------------------------------------------|---------------------------------------|------------------------------|
|                                            |  LESS      THAN 1      YEAR |  1 TO      3 YEARS |  3 TO      5 YEARS |  AFTER 5      YEARS |  TOTAL |
| Short-term      borrowings (a) (b) (c)          |                                  | $                            | — |   | $ | — |   | $ | — |   | $ | — |   | $ | — |
| Long-term      debt (c)                         |                                  |                         | 104.4 |   |   | 736.8 |   |   | 772.2 |   |   | 625.1 |   |   | 2,238.5 |
| Operating      leases                           |                                  |                         | 65.6 |   |   | 83.6 |   |   | 34.6 |   |   | 12.1 |   |   | 195.9 |
| Purchase      obligations (d)                   |                                  |                         | 319.1 |   |   | 3.5 |   |   | .5 |   |   | .2 |   |   | 323.3 |
| Total      contractual cash obligations (e) (f) |                                  | $                            | 489.1 |   | $ | 823.9 |   | $ | 807.3 |   | $ | 637.4 |   | $ | 2,757.7 |

| (a)  | As      more fully described in Note 8 of Notes to Consolidated Financial      Statements, the Corporation has a $1.0 billion commercial paper program as      well as a supporting $1.0 billion credit facility that matures in December      2012. At December 31, 2009, there were no amounts outstanding under the      commercial paper program or other short-term borrowing arrangements. The      Corporation’s average borrowing outstanding under these facilities during      2009 was $167.0 million. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)  | As      described in Note 8 of Notes to Consolidated Financial Statements, the      Corporation has uncommitted lines of credit of approximately $250 million      at December 31, 2009. These uncommitted lines of credit do not have      termination dates and are reviewedperiodically. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)  | Payments      due by period include contractually required interest payments.      Contractually required interest payments on variable rate long-term debt      presented is based upon variable borrowing rates at December 31,      2009. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)  | The      Corporation enters into contractual arrangements that result in its      obligation to make future payments, including purchase obligations. The      Corporation enters into these arrangements in the ordinary course of      business in order to ensure adequate levels of inventories, machinery and      equipment, or services. Purchase obligations primarily consist of      inventory purchase commitments, including raw materials, components, and      sourced products, and arrangements for other  services. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)  | The      Corporation anticipates that funding of its pension and postretirement      benefit plans in 2010 will approximate $75 million to $80 million. That      amount principally represents contributions either required by regulations      or laws or, with respect to unfunded plans, necessary to fund current      benefits. The Corporation has not presented estimated pension and      postretirement funding in the table above as the funding can vary from      year to year based upon changes in the fair value of the plan assets and      actuarial assumptions. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)  | As      more fully disclosed in Note 12 of Notes to the Consolidated Financial      Statements, at December 31, 2009, the Corporation has recognized $291.8      million of liabilities for unrecognized tax benefits of which $31.5      million related to interest. The final outcome of these tax uncertainties      is dependent upon various matters including tax examinations, legal      proceedings, competent authority proceedings, changes in regulatory tax      laws, or interpretation of those tax laws, or expiration of statutes of      limitation. However, based on the number of jurisdictions, the      uncertainties associated with litigation, and the status of examinations,      including the protocols of finalizing audits by the relevant tax      authorities, which could include formal legal proceedings, there is a high      degree of uncertainty regarding the future cash outflows associated with      these tax uncertainties. As of December 31, 2009, the Corporation      classified $48.0 million of its liabilities for unrecognized tax benefits      as a current liability. While the Corporation cannot reasonably predict      the timing of the cash flows, if any, associated with its liabilities for      unrecognized tax benefits, it believes that such cash flows would      principally occur within the next fiveyears. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| YEAR      ENDED DECEMBER 31,                                                                             |  2009 |   |  2008 |   |  2007 |   |
|----------------------------------------------------------------------------------------------------------|------------|--------|------------|--------|------------|--------|
| SALES                                                                                                    |       | $      | 4,775.1    |   |       | $      | 6,086.1 |   |   | $ | 6,563.2 |   |
| Cost      of goods sold                                                                                  |       |   | 3,188.6    |   |       |   | 4,087.7 |   |   |   | 4,336.2 |   |
| Selling,      general, and administrative expenses                                                       |       |   | 1,266.4    |   |       |   | 1,521.6 |   |   |   | 1,625.8 |   |
|          Merger-related expenses                                                          |       |   | 58.8       |   |       |   |  — |   |   |   |  — |   |
| Restructuring      and exit costs                                                                        |       |   | 11.9       |   |       |   | 54.7 |   |   |   | 19.0 |   |
| OPERATING      INCOME                                                                                    |       |   | 249.4      |   |       |   | 422.1 |   |   |   | 582.2 |   |
| Interest      expense (net of interest income of $7.9      for 2009, $38.4 for 2008, and $19.8 for 2007) |       |   | 83.8       |   |       |   | 62.4 |   |   |   | 82.3 |   |
| Other      (income) expense                                                                              |       |   | (4.8       | )      |       |   | (5.0 | )  |   |   | 2.3 |   |
| EARNINGS      BEFORE INCOME TAXES                                                                        |       |   | 170.4      |   |       |   | 364.7 |   |   |   | 497.6 |   |
| Income      taxes (benefit)                                                                              |       |   | 37.9       |   |       |   | 71.1 |   |   |   | (20.5 | ) |
| NET      EARNINGS                                                                                        |       | $      | 132.5      |   |       | $      | 293.6 |   |   | $ | 518.1 |   |
| NET      EARNINGS PER COMMON SHARE – BASIC                                                         |       | $      | 2.18       |   |       | $      | 4.83 |   |   | $ | 7.96 |   |
| NET      EARNINGS PER COMMON SHARE – ASSUMING DILUTION                                             |       | $      | 2.17       |   |       | $      | 4.77 |   |   | $ | 7.78 |   |

----

| DECEMBER      31,                                                                                                              |  2009 |   |  2008 |   |
|--------------------------------------------------------------------------------------------------------------------------------|------------|--------|------------|--------|
| ASSETS                                                                                                                         |       |   |       |   |   |   |
| Cash      and cash equivalents                                                                                                 |       | $      | 1,083.2    |   |   | $ | 277.8 |   |
| Trade      receivables, less allowances of $45.8 for 2009 and $39.1 for      2008                                              |       |   | 832.8      |   |   |   | 924.6 |   |
| Inventories                                                                                                                    |       |   | 777.1      |   |   |   | 1,024.2 |   |
| Other      current assets                                                                                                      |       |   | 308.8      |   |   |   | 377.0 |   |
| TOTAL      CURRENT ASSETS                                                                                                      |       |   | 3,001.9    |   |   |   | 2,603.6 |   |
| PROPERTY,      PLANT, AND EQUIPMENT                                                                                            |       |   | 473.4      |   |   |   | 527.9 |   |
| GOODWILL                                                                                                                       |       |   | 1,230.0    |   |   |   | 1,223.2 |   |
| OTHER      ASSETS                                                                                                              |       |   | 789.9      |   |   |   | 828.6 |   |
|                                                                                                                           |       | $      | 5,495.2    |   |   | $ | 5,183.3 |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                                                |       |   |       |   |   |   |   |   |
| Short-term      borrowings                                                                                                     |       | $      | —    |   |   | $ | 83.3 |   |
| Current      maturities of long-term debt                                                                                      |       |   | —    |   |   |   | .1 |   |
| Trade      accounts payable                                                                                                    |       |   | 403.2      |   |   |   | 453.1 |   |
| Other      current liabilities                                                                                                 |       |   | 792.7      |   |   |   | 947.4 |   |
| TOTAL      CURRENT LIABILITIES                                                                                                 |       |   | 1,195.9    |   |   |   | 1,483.9 |   |
| LONG-TERM      DEBT                                                                                                            |       |   | 1,715.0    |   |   |   | 1,444.7 |   |
| POSTRESTIREMENT      BENEFITS                                                                                                  |       |   | 760.4      |   |   |   | 669.4 |   |
| OTHER      LONG-TERM LIABILITIES                                                                                               |       |   | 524.8      |   |   |   | 460.5 |   |
| STOCKHOLDERS’      EQUITY                                                                                                |       |   |       |   |   |   |   |   |
| Common      stock (outstanding: December 31, 2009 – 61,645,196 shares; December      31, 2008 – 60,092,726 shares) |       |   | 30.8       |   |   |   | 30.0 |   |
| Capital      in excess of par value                                                                                            |       |   | 119.1      |   |   |   | 14.3 |   |
| Retained      earnings                                                                                                         |       |   | 1,622.0    |   |   |   | 1,536.8 |   |
| Accumulated      other comprehensive income (loss)                                                                             |       |   | (472.8     | )      |   |   | (456.3 | ) |
| TOTAL      STOCKHOLDERS’ EQUITY                                                                                          |       |   | 1,299.1    |   |   |   | 1,124.8 |   |
|                                                                                                                           |       | $      | 5,495.2    |   |   | $ | 5,183.3 |   |

----

|                                                                                                                                                                     |  OUTSTANDING COMMON SHARES |       |  PAR VALUE |   |  CAPITAL      IN EXCESS      OF PAR      VALUE |  RETAINED EARNINGS |          |  ACCUMULATED OTHER COMPREHENSIVE INCOME      (LOSS) |   |  TOTAL STOCKHOLDERS’ EQUITY |          |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|------------|----------------------|--------|---------------------------------------------------------------|------------------------------|---------------|-------------------------------------------------------------------------|--------|--------------------------------------------------|---------------|
| BALANCE      AT DECEMBER 31, 2006                                                                                                                                        |                                      | 66,734,843 |                 |   | $                                                             | 33.4                         |          |                                                                    | $      | —                                          |          | $ | 1,473.0 |   |   | $ | (342.8 | ) |   | $ | 1,163.6 |   |
| Comprehensive      income (loss):                                                                                                                                        |                                      |       |                 |   |                                                          |                         |          |                                                                    |   |                                             |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      earnings                                                                                                                                                        |                                      |       | —              |   |                                                          |                         | —       |                                                                    |   |                                             | —       |   |   | 518.1 |   |   |   | — |   |   |   | 518.1 |   |
| Net      loss on derivative instruments (net of tax)                                                                                                                     |                                      |       | —              |   |                                                          |                         | —       |                                                                    |   |                                             | —       |   |   | — |   |   |   | (25.4 | ) |   |   | (25.4 | ) |
| Minimum      pension liability adjustment (net of tax)                                                                                                                   |                                      |       | —              |   |                                                          |                         | —       |                                                                    |   |                                             | —       |   |   | — |   |   |   | 161.0 |   |   |   | 161.0 |   |
| Foreign      currency translation adjustments, less effect of hedging activities      (net      of tax)                                                                  |                                      |       | —              |   |                                                          |                         | —       |                                                                    |   |                                             | —       |   |   | — |   |   |   | 83.2 |   |   |   | 83.2 |   |
|          Amortization      of actuarial losses and prior      service cost (net of tax)                                                                   |                                      |       | —              |   |                                                          |                         |  — |                                                                    |   |                                             |  — |   |   |  — |   |   |   | 25.7 |   |   |   | 25.7 |   |
| Comprehensive      income                                                                                                                                                |                                      |       | —              |   |                                                          |                         | —       |                                                                    |   |                                             | —       |   |   | 518.1 |   |   |   | 244.5 |   |   |   | 762.6 |   |
| Cumulative      effect of adopting the new accounting standard relating to uncertain tax      positions                                                                  |                                      |       | —              |   |                                                          |                         | —       |                                                                    |   |                                             | —       |   |   | (7.3) |   |   |   | — |   |   |   | (7.3 | ) |
| Cash      dividends on common stock ($1.68 per share)                                                                                                                    |                                      |       | —              |   |                                                          |                         | —       |                                                                    |   |                                             | —       |   |   | (108.6 | ) |   |   | — |   |   |   | (108.6 | ) |
| Common      stock issued under stock-based plans (net of forfeitures)                                                                                                    |                                      |       | 1,666,123            |   |                                                          |                         | .8            |                                                                    |   |                                             | 109.0         |   |   | — |   |   |   | — |   |   |   | 109.8 |   |
| Purchase      and retirement of common stock                                                                                                                             |                                      |       | (5,477,243           | )      |                                                          |                         | (2.7          | )                                                                       |   |                                             | (82.0         | ) |   | (376.7 | ) |   |   | — |   |   |   | (461.4 | ) |
| BALANCE      AT DECEMBER 31, 2007                                                                                                                                        |                                      | 62,923,723 |                 |   |                                                          | 31.5                         |          |                                                                    |   | 27.0                                             |          |   | 1,498.5 |   |   |   | (98.3 | ) |   |   | 1,458.7 |   |
| Comprehensive      income (loss):                                                                                                                                        |                                      |       |                 |   |                                                          |                         |          |                                                                    |   |                                             |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      earnings                                                                                                                                                        |                                      |       | —              |   |                                                          |                         | —       |                                                                    |   |                                             | —       |   |   | 293.6 |   |   |   | — |   |   |   | 293.6 |   |
| Net gain      on derivative instruments (net of tax)                                                                                                                |                                      |       | —              |   |                                                          |                         | —       |                                                                    |   |                                             | —       |   |   | — |   |   |   | 83.5 |   |   |   | 83.5 |   |
| Minimum      pension liability adjustment (net of tax)                                                                                                                   |                                      |       | —              |   |                                                          |                         | —       |                                                                    |   |                                             | —       |   |   | — |   |   |   | (284.2 | )  |   |   | (284.2 | ) |
| Foreign      currency translation adjustments, less effect of hedging activities      (net      of tax)                                                                  |                                      |       | —              |   |                                                          |                         | —       |                                                                    |   |                                             | —       |   |   | — |   |   |   | (172.1 | )  |   |   | (172.1 | ) |
| Amortization      of actuarial losses and prior      service cost (net of tax)                                                                                           |                                      |       | —              |   |                                                          |                         | —       |                                                                    |   |                                             | —       |   |   | — |   |   |   | 14.8 |   |   |   | 14.8 |   |
| Comprehensive      income (loss)                                                                                                                                         |                                      |       | —              |   |                                                          |                         | —       |                                                                    |   |                                             | —       |   |   | 293.6 |   |   |   | (358.0 | ) |   |   | (64.4 | ) |
| Adoption      of new accounting standard requiring a year-end measurement date for      defined benefit pension and other postretirement benefit plans (net of      tax) |                                      |       | —              |   |                                                          |                         | —       |                                                                    |   |                                             | —       |   |   | (5.1 | ) |   |   | — |   |   |   | (5.1 | ) |
| Cash      dividends on common stock ($1.68 per share)                                                                                                                    |                                      |       | —              |   |                                                          |                         | —       |                                                                    |   |                                             | —       |   |   | (101.8 | ) |   |   | — |   |   |   | (101.8 | ) |
| Common      stock issued under stock-based plans (net of forfeitures)                                                                                                    |                                      |       | 305,647              |   |                                                          |                         | .1            |                                                                    |   |                                             | 39.6          |   |   | — |   |   |   | — |   |   |   | 39.7 |   |
| Purchase      and retirement of common stock                                                                                                                             |                                      |       | (3,136,644           | )      |                                                          |                         | (1.6          | )                                                                       |   |                                             | (52.3         | ) |   | (148.4 | ) |   |   | — |   |   |   | (202.3 | ) |
| BALANCE      AT DECEMBER 31, 2008                                                                                                                                        |                                      | 60,092,726 |                 |   |                                                          | 30.0                         |          |                                                                    |   | 14.3                                             |          |   | 1,536.8 |   |   |   | (456.3 | ) |   |   | 1,124.8 |   |
| Comprehensive      income (loss):                                                                                                                                        |                                      |       |                 |   |                                                          |                         |          |                                                                    |   |                                             |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      earnings                                                                                                                                                        |                                      |       | —              |   |                                                          |                         | —       |                                                                    |   |                                             | —       |   |   | 132.5 |   |   |   | — |   |   |   | 132.5 |   |
| Net loss      on derivative instruments (net of tax)                                                                                                                |                                      |       | —              |   |                                                          |                         | —       |                                                                    |   |                                             | —       |   |   | — |   |   |   | (53.4 | ) |   |   | (53.4 | )  |
| Minimum      pension liability adjustment (net of tax)                                                                                                                   |                                      |       | —              |   |                                                          |                         | —       |                                                                    |   |                                             | —       |   |   | — |   |   |   | (66.8 | ) |   |   | (66.8 | ) |
| Foreign      currency translation adjustments, less effect of hedging activities      (net      of tax)                                                                  |                                      |       | —              |   |                                                          |                         | —       |                                                                    |   |                                             | —       |   |   | — |   |   |   | 88.4 |   |   |   | 88.4 |   |
| Amortization      of actuarial losses and prior      service cost (net of tax)                                                                                           |                                      |       | —              |   |                                                          |                         | —       |                                                                    |   |                                             | —       |   |   | — |   |   |   | 15.3 |   |   |   | 15.3 |   |
| Comprehensive      income (loss)                                                                                                                                         |                                      |       | —              |   |                                                          |                         | —       |                                                                    |   |                                             | —       |   |   | 132.5 |   |   |   | (16.5 | ) |   |   | 116.0 |   |
| Cash      dividends on common stock ($.78 per share)                                                                                                                     |                                      |       | —              |   |                                                          |                         | —       |                                                                    |   |                                             | —       |   |   | (47.3 | ) |   |   | — |   |   |   | (47.3 | ) |
| Common      stock issued under stock-based plans (net of forfeitures)                                                                                                    |                                      |       | 1,799,668            |   |                                                          |                         | .9            |                                                                    |   |                                             | 118.1         |   |   | — |   |   |   | — |   |   |   | 119.0 |   |
| Purchase      and retirement of common stock                                                                                                                             |                                      |       | (247,198             | )      |                                                          |                         | (.1           | )                                                                       |   |                                             | (13.3         | ) |   | — |   |   |   | — |   |   |   | (13.4 | ) |
| BALANCE      AT DECEMBER 31, 2009                                                                                                                                        |                                      | 61,645,196 |                 |   | $                                                             | 30.8                         |          |                                                                    | $      | 119.1                                            |          | $ | 1,622.0 |   |   | $ | (472.8 | ) |   | $ | 1,299.1 |   |

----

| YEAR      ENDED DECEMBER 31,                                                                                   |  2009 |   |  2008 |    |  2007 |   |
|----------------------------------------------------------------------------------------------------------------|------------|--------|------------|---------|------------|--------|
| OPERATING      ACTIVITIES                                                                                      |       |   |       |    |       |   |   |   |   |
| Net      earnings                                                                                              |       | $      | 132.5      |    |       | $      | 293.6 |   |   |  $ | 518.1 |   |
| Adjustments      to reconcile net earnings to cash flow from      operating activities:                        |       |   |       |    |       |   |   |   |   |   |   |   |
| Non-cash      charges and credits:                                                                             |       |   |       |    |       |   |   |   |   |   |   |   |
| Depreciation      and amortization                                                                             |       |   | 128.0      |    |       |   | 136.6 |   |   |   | 143.4 |   |
| Stock-based      compensation                                                                                  |       |   | 69.8       |    |       |   | 29.1 |   |   |   | 25.9 |   |
| Amortization      of actuarial losses and prior service costs                                                  |       |   | 15.3       |    |       |   | 14.8 |   |   |   | 25.7 |   |
| Settlement      of income tax litigation                                                                       |       |   | —    |    |       |   | — |   |   |   | (153.4 | ) |
| Restructuring      and exit costs                                                                              |       |   | 11.9       |    |       |   | 54.7 |   |   |   | 19.0 |   |
| Other                                                                                                          |       |   | (7.5       | )       |       |   | .3 |   |   |   | .5 |   |
| Changes      in selected working capital items (net      of effects of businesses acquired):                   |       |   |       |    |       |   |   |   |   |   |   |   |
| Trade      receivables                                                                                         |       |   | 127.2      |    |       |   | 132.5 |   |   |   | 99.4 |   |
| Inventories                                                                                                    |       |   | 273.3      |    |       |   | 67.9 |   |   |   | (32.0 | )  |
| Trade      accounts payable                                                                                    |       |   | (53.1      | )       |       |   | (47.9 | )  |   |   | 32.6 |   |
| Other      current liabilities                                                                                 |       |   | (102.2     | )       |       |   | (141.8 | ) |   |   | 33.3 |   |
| Restructuring      spending                                                                                    |       |   | (39.8      | )       |       |   | (25.3 | ) |   |   | (1.0 | ) |
| Other      assets and liabilities                                                                              |       |   | (69.8      | )       |       |   | (89.1 | ) |   |   | 14.4 |   |
| CASH      FLOW FROM OPERATING ACTIVITIES                                                                       |       |   | 485.6      |    |       |   | 425.4 |   |   |   | 725.9 |   |
| INVESTING      ACTIVITIES                                                                                      |       |   |       |    |       |   |   |   |   |   |   |   |
| Capital      expenditures                                                                                      |       |   | (63.1      | )       |       |   | (98.8 | ) |   |   | (116.4 | ) |
| Proceeds      from disposal of assets                                                                          |       |   | 3.2        |    |       |   | 20.4 |   |   |   | 13.0 |   |
| Purchase      of businesses, net of cash acquired                                                              |       |   | —    |    |       |   | (25.7 | ) |   |   | — |   |
| Cash      outflow associated with purchase of previously acquired business                                     |       |   | (1.4       | )  |       |   | — |   |   |   | — |   |
| Cash      inflow from hedging activities                                                                       |       |   | 196.0      |    |       |   | 72.4 |   |   |   | 2.0 |   |
| Cash      outflow from hedging activities                                                                      |       |   | (38.2      | )       |       |   | (29.7 | ) |   |   | (47.4 | ) |
| Other      investing activities, net                                                                           |       |   | —    |    |       |   | — |   |   |   | (1.0 | )  |
| CASH      FLOW FROM INVESTING ACTIVITIES                                                                       |       |   | 96.5       |    |       |   | (61.4 | ) |   |   | (149.8 | ) |
| FINANCING      ACTIVITIES                                                                                      |       |   |       |    |       |   |   |   |   |   |   |   |
| Net      (decrease) increase in short-term borrowings                                                          |       |   | (84.3      | )       |       |   | (246.0 | ) |   |   | 68.8 |   |
| Proceeds      from issuance of long-term debt (net      of debt issue costs of $2.7 for 2009 and $.3 for 2008) |       |   | 343.1      |    |       |   | 224.7 |   |   |   | — |   |
| Payments      on long-term debt                                                                                |       |   | (50.1      | )       |       |   | (.2 | ) |   |   | (150.3 | ) |
| Purchase      of common stock                                                                                  |       |   | (13.4      | )       |       |   | (202.3 | ) |   |   | (461.4 | ) |
| Issuance      of common stock                                                                                  |       |   | 62.6       |    |       |   | 8.6 |   |   |   | 83.3 |   |
| Cash      dividends                                                                                            |       |   | (47.3      | )       |       |   | (101.8 | ) |   |   | (108.6 | ) |
| CASH      FLOW FROM FINANCING ACTIVITIES                                                                       |       |   | 210.6      |    |       |   | (317.0 | ) |   |   | (568.2 | ) |
| Effect      of exchange rate changes on cash                                                                   |       |   | 12.7       |    |       |   | (23.9 | ) |   |   | 13.5 |   |
| INCREASE IN      CASH AND CASH EQUIVALENTS                                                                |       |   | 805.4      |    |       |   | 23.1 |   |   |   | 21.4 |   |
| Cash      and cash equivalents at beginning of year                                                            |       |   | 277.8      |    |       |   | 254.7 |   |   |   | 233.3 |   |
| CASH      AND CASH EQUIVALENTS AT END OF YEAR                                                                  |       | $      | 1,083.2    |    |       | $      | 277.8 |   |   | $ | 254.7 |   |

----

----

----

----

| AS      OF DECEMBER 31, 2009 |  BUY |   |  SELL |   |
|------------------------------|-----------|--------|------------|--------|
| United      States dollar    |      | $      | 243.9      |   |   | $ | (6.9 | ) |
| Pound      sterling          |      |   | —    |   |   |   | (35.1 | ) |
| Euro                         |      |   | 60.6       |   |   |   | (163.5 | ) |
| Canadian      dollar         |      |   | —    |   |   |   | (77.3 | ) |
| Australian      dollar       |      |   | —    |   |   |   | (13.3 | ) |
| Czech      koruna            |      |   | 14.9       |   |   |   | — |   |
| Swedish      krona           |      |   | —    |   |   |   | (13.2 | ) |
| Norwegian      krone         |      |   | —    |   |   |   | (8.1 | ) |
| Other                        |      |   | 7.4        |   |   |   | (12.7 | ) |
| Total                        |      | $      | 326.8      |   |   | $ | (330.1 | ) |
|                         |      |   |       |   |   |   |   |   |
| AS      OF DECEMBER 31, 2008 |      |   |       |   |   |   |   |   |
| Total                        |      | $      | 583.2      |   |   | $ | (518.3 | ) |

----

| AS      OF DECEMBER 31, 2009 |  BUY |   |  SELL    |   |
|------------------------------|-----------|--------|---------------|--------|
| United      States dollar    |      | $      | 1,425.1       |   |   | $ | (2,863.8 | ) |
| Pound      sterling          |      |   | 1,838.4       |   |   |   | (537.7 | ) |
| Euro                         |      |   | 1,009.9       |   |   |   | (750.2 | ) |
| Canadian      dollar         |      |   | 22.9          |   |   |   | (64.5 | ) |
| Czech      koruna            |      |   |  — |   |   |   | (5.1 | )  |
| Japanese      yen            |      |   | —       |   |   |   | (31.4 | ) |
| Swedish      krona           |      |   | 95.0          |   |   |   | (73.7 | ) |
| New      Zealand dollar      |      |   |  22.5    |   |   |   |  (11.2 | ) |
| Swiss      franc             |      |   | 1.2           |   |   |   | (16.9 | ) |
| Norwegian      krone         |      |   | —       |   |   |   | (4.4 | ) |
| Danish      krone            |      |   | .8            |   |   |   | (34.3 | ) |
| Other                        |      |   | 5.6           |   |   |   | (25.1 | ) |
| Total                        |      | $      | 4,421.4       |   |   | $ | (4,418.3 | ) |
|                         |      |   |          |   |   |   |   |   |
| AS      OF DECEMBER 31, 2008 |      |   |          |   |   |   |   |   |
| Total                        |      | $      | 2,261.4       |   |   | $ | (2,434.2 | ) |

| AS      OF DECEMBER 31, |   | 2009   |   |   | 2008   |   |
|-------------------------|--------|--------|--------|--------|--------|--------|
| Zinc                    |   |   | 7.3    |   |   |   | 13.7 |   |
| Copper                  |   |   | 1.6    |   |   |   | 3.3 |   |

----

----

|        i. | Under      the terms of two restricted stock plans, all restrictions lapsed on      outstanding, but non-vested, restricted stock and restricted stock units,      except for those held by the Corporation’s Chairman, President, and Chief      Executive Officer. As a result of that lapse, the Corporation recognized      previously unrecognized compensation expense in the amount of      approximately $33.0 million, restrictions lapsed on 479,034 restricted      shares, and the Corporation issued 311,963 shares in satisfaction of the      restricted units (those 311,963 shares were net of 166,037 shares withheld      to satisfy employee tax withholding requirements). In addition, the      Corporation repurchased 186,326 shares, representing shares with a      fair value equal to amounts necessary to satisfy employee tax withholding      requirements on the 479,034 restricted shares on which restrictions      lapsed. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        ii. | Under      the terms of severance agreements with 19 of its key employees, all      unvested stock options held by those individuals, aggregating      approximately 1.1 million options, immediately vested. As a result, the      Corporation recognized previously unrecognized compensation expense      associated with those options in the amount of approximately $9.3      million. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        iii. | Under      the terms of The Black & Decker Supplemental Executive Retirement      Plan, which covers six key employees, the participants became fully      vested. As a result, the Corporation recognized additional pension expense      of approximately $5.3 million. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                   |  2009 |   |  2008 |   |
|--------------------------------------------------------|------------|--------|------------|--------|
| FIFO      cost                                         |       |   |       |   |   |   |
| Raw      materials and work-in-process                 |       | $      | 195.7      |   |   | $ | 263.9 |   |
| Finished      products                                 |       |   | 593.3      |   |   |   | 783.8 |   |
|                                                   |       |   | 789.0      |   |   |   | 1,047.7 |   |
| Adjustment      to arrive at LIFO      inventory value |       |   | (11.9      | )      |   |   | (23.5 | ) |
|                                                   |       | $      | 777.1      |   |   | $ | 1,024.2 |   |

|                                         |  2009 |   |  2008 |   |
|----------------------------------------------|------------|--------|------------|--------|
| Property,      plant, and equipment at cost: |       |   |       |   |   |   |
| Land      and improvements                   |       | $      | 40.9       |   |   | $ | 41.3 |   |
| Buildings                                    |       |   | 299.6      |   |   |   | 299.7 |   |
| Machinery      and equipment                 |       |   | 1,252.2    |   |   |   | 1,288.9 |   |
|                                         |       |   | 1,592.7    |   |   |   | 1,629.9 |   |
| Less      accumulated depreciation           |       |   | 1,119.3    |   |   |   | 1,102.0 |   |
|                                         |       | $      | 473.4      |   |   | $ | 527.9 |   |

|                                                 |  POWER      TOOLS      & ACCESSORIES |   |  HARDWARE&      HOME IMPROVEMENT |    |  FASTENING      &  ASSEMBLY  SYSTEMS |   |   TOTAL |    |
|------------------------------------------------------|-----------------------------------------------|--------|------------------------------------------------|---------|-------------------------------------------------------------------|--------|-------------------|---------|
| Balance      at January 1, 2008                      |                                          | $      | 436.4                                          |    |                                                              | $      | 464.4             |    |   | $ | 312.1 |   |   | $ | 1,212.9 |   |
| Acquisition                                          |                                          |   | —                                        |    |                                                              |   | —           |    |   |   | 13.9 |   |   |   | 13.9 |   |
| Currency      translation adjustment                 |                                          |   | (3.5                                           | )  |                                                              |   | (1.0              | )  |   |   | .9 |   |   |   | (3.6 | )  |
| Balance      at December 31, 2008                    |                                          |   | 432.9                                          |    |                                                              |   | 463.4             |    |   |   | 326.9 |   |   |   | 1,223.2 |   |
| Activity      associated with prior year acquisition |                                          |   | —                                        |    |                                                              |   | —           |    |   |   | (.3 | )  |   |   | (.3 | ) |
| Currency      translation adjustment                 |                                          |   | 3.2                                            |    |                                                              |   | .7                |    |   |   | 3.2 |   |   |   | 7.1 |   |
| Balance      at December 31, 2009                    |                                          | $      | 436.1                                          |    |                                                              | $      | 464.1             |    |   | $ | 329.8 |   |   | $ | 1,230.0 |   |

----

|                                                                                                       |  2009 |   |  2008 |   |
|------------------------------------------------------------------------------------------------------------|------------|--------|------------|--------|
| Customer      relationships (net      of accumulated amortization of      $21.4 in 2009 and $15.7 in 2008) |       | $      | 51.2       |   |   | $ | 56.9 |   |
| Technology      and patents (net      of accumulated amortizationof      $11.8 in 2009 and $9.5 in 2008)   |       |   | 11.9       |   |   |   | 14.2 |   |
| Trademarks      and trade names(net      of accumulated amortizationof      $2.2 in 2009 and $5.6 in 2008) |       |   | 197.9      |   |   |   | 206.5 |   |
| Total      intangibles, net                                                                                |       | $      | 261.0      |   |   | $ | 277.6 |   |

|                                        |  2009 |   |  2008 |   |
|---------------------------------------------|------------|--------|------------|--------|
| Trade      discounts and allowances         |       | $      | 153.9      |   |   | $ | 202.8 |   |
| Employee      benefits                      |       |   | 117.5      |   |   |   | 128.8 |   |
| Salaries      and wages                     |       |   | 93.9       |   |   |   | 81.1 |   |
| Advertising      and promotion              |       |   | 38.8       |   |   |   | 37.8 |   |
| Warranty                                    |       |   | 50.7       |   |   |   | 55.2 |   |
| Income      taxes, including deferred taxes |       |   | 64.0       |   |   |   | 102.0 |   |
| All      other                              |       |   | 273.9      |   |   |   | 339.7 |   |
|                                        |       | $      | 792.7      |   |   | $ | 947.4 |   |

|                                                                                                                       |  2009 |   |  2008 |   |
|----------------------------------------------------------------------------------------------------------------------------|------------|--------|------------|--------|
| Warranty      reserve at January 1                                                                                         |       | $      | 55.2       |   |   | $ | 60.5 |   |
| Accruals      for warranties issued duringthe      period and changes in estimates related      to pre-existing warranties |       |   | 92.1       |   |   |   | 123.0 |   |
| Settlements      made                                                                                                      |       |   | (98.1      | )      |   |   | (125.1 | ) |
| Currency      translation adjustments                                                                                      |       |   | 1.5        |   |   |   | (3.2 | ) |
| Warranty      reserve at December 31                                                                                       |       | $      | 50.7       |   |   | $ | 55.2 |   |

----

|                                                                                           |  2009 |   |  2008  |   |
|------------------------------------------------------------------------------------------------|------------|--------|-------------|--------|
| 7.125%      notes due 2011 (including      discount of      $.4      in 2009 and $.7 in 2008)  |       | $      | 399.6       |   |   | $ | 399.3 |   |
| 4.75%      notes due 2014 (including      discount of      $1.1      in 2009 and $1.3 in 2008) |       |   | 298.9       |   |   |   | 298.7 |   |
| 8.95%      notes due in 2014 (including discount of      $3.6 in 2009)                         |       |   | 346.4  |   |   |   |  — |   |
| 5.75%      notes due 2016 (including      discount of      $.8      in 2009 and $1.0 in 2008)  |       |   | 299.2       |   |   |   | 299.0 |   |
| 7.05%      notes due 2028                                                                      |       |   | 150.0       |   |   |   | 150.0 |   |
| Other      loans due through 2012                                                              |       |   | 175.0       |   |   |   | 225.0 |   |
| Fair      value hedging adjustment                                                             |       |   | 45.9        |   |   |   | 72.8 |   |
| Less      current maturities of      long-term debt                                            |       |   | —     |   |   |   | (.1 | ) |
|                                                                                           |       | $      | 1,715.0     |   |   | $ | 1,444.7 |   |

----

|                                                     | ASSET      DERIVATIVES      |                  | LIABILITY      DERIVATIVES |                        |
|----------------------------------------------------------|-----------------------------|-----------------------|----------------------------|-----------------------------|
|                                                     | BALANCE      SHEET LOCATION |  FAIR VALUE |                       | BALANCE      SHEET LOCATION | FAIR VALUE |   |
| Derivatives      Designated as Hedging Instruments       |                        |                  |                       |                        |   |   |   |
| Interest      rate contracts                             | Other      current assets   |                  | $                          | 2.4                         |   | Other      current liabilities |   | $ | — |   |
|                                                     | Other      assets           |                  |                       | 24.2                        |   | Other      long-term liabilities |   |   | — |   |
| Foreign      exchange contracts                          | Other      current assets   |                  |                       | 48.5                        |   | Other      current liabilities |   |   | 50.1 |   |
|                                                     | Other      assets           |                  |                       | .9                          |   | Other      long-term liabilities |   |   | .3 |   |
| Net      investment contracts                            | Other      current assets   |                  |                       | 2.9                         |   | Other      current liabilities |   |   | 15.2 |   |
| Commodity      contracts                                 | Other      current assets   |                  |                       | 6.0                         |   | Other      current liabilities |   |   | — |   |
| Total      Derivatives Designated as Hedging Instruments |                        | $                     | 84.9                       |                        |   |   | $ | 65.6 |   |

| Derivatives      Not Designated as Hedging Instruments |                      |   |   |   |   |                           |   |
|--------------------------------------------------------|---------------------------|--------|--------|--------|--------|--------------------------------|--------|
| Foreign      exchange contracts                        | Other      current assets |   | $      | 17.9   |   | Other      current liabilities |   | $ | 17.0 |   |
| Total      Derivatives                                 |                      |   | $      | 102.8  |   |                           |   | $ | 82.6 |   |

| Derivatives      in Cash Flow Hedging      Relationships |   AMOUNT OF      GAIN (LOSS) RECOGNIZED IN      OCI (a)[EFFECTIVE      PORTION] |   | LOCATION      OF GAIN      (LOSS) RECLASSIFIED      FROM OCI      INTO INCOME [EFFECTIVE      PORTION] |  AMOUNT      OF GAIN      (LOSS)      RECLASSIFIED      FROM      OCI      INTO INCOME      [INEFFECTIVE PORTION] |                             | LOCATION OF GAIN      (LOSS) RECOGNIZEDIN      INCOME [INEFFECTIVE      PORTION] | AMOUNT      OF GAIN      (LOSS) RECOGNIZEDIN      INCOME [INEFFECTIVE PORTION] |   |
|----------------------------------------------------------|-----------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|----------------------------------|------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|--------|
| Foreign      exchange contracts                          |                                                                                                | $      | 46.9                                                                                                                  |                                                                                                                        | Cost      of goods sold          |                                                                                                 | $                                                                                             | 42.4   |   | Cost      of goods sold |   | $ | — |   |
|                                                     |                                                                                                |   |                                                                                                                  |                                                                                                                        | Interest      expense, net       |                                                                                                 |                                                                                          | 2.3    |   | Interest      expense, net |   |   | — |   |
|                                                     |                                                                                                |   |                                                                                                                  |                                                                                                                        | Other      expense (income) |                                                                                                 |                                                                                          | 78.8   |   | Other      expense (income) |   |   | .1 |   |
| Commodity      contracts                                 |                                                                                                |   | 9.6                                                                                                                   |                                                                                                                        | Cost      of goods sold          |                                                                                                 |                                                                                          | (6.5   | ) | Cost      of goods sold |   |   | — |   |
| Total                                                    |                                                                                                | $      | 56.5                                                                                                                  |                                                                                                                        |                             |                                                                                                 | $                                                                                             | 117.0  |   |   |   | $ | .1 |   |

----

| Derivatives      in Fair Value Hedging Relationships | LOCATION      OF GAIN (LOSS) RECOGNIZED      IN INCOME |  AMOUNT      OF GAIN (LOSS) RECOGNIZED      IN INCOME |   |
|------------------------------------------------------|------------------------------------------------------------------|---------------------------------------------------------------------------|--------|
| Interest      rate contracts                         | Interest      expense, net                                       |                                                                      | $      | (8.6 | ) |

| Derivatives      in Net Investment Hedging Relationships |   AMOUNT      OF GAIN (LOSS) RECOGNIZED      IN OCI  [EFFECTIVE      PORTION] |   | LOCATION      OF GAIN (LOSS) RECOGNIZED      IN INCOME [INEFFECTIVE      PORTION] |  AMOUNT      OF GAIN (LOSS) RECOGNIZED      IN INCOME  [INEFFECTIVE      PORTION] |                             |
|----------------------------------------------------------|--------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|----------------------------------|
| Foreign      exchange contracts                          |                                                                                                   | $      | (66.1                                                                                       | )                                                                                                          | Other      expense (income) |   | $ | — |   |

| Derivatives      Not Designated as Hedging Instruments | LOCATION      OF GAIN (LOSS) RECOGNIZED      IN INCOME |  AMOUNT      OF GAIN (LOSS) RECOGNIZED      IN INCOME |   |
|--------------------------------------------------------|------------------------------------------------------------------|----------------------------------------------------------------------|--------|
| Foreign      exchange contracts                        | Cost      of goods sold                                          |                                                                 | $      | (.1 | ) |
|                                                   | Other      expense (income)                                      |                                                                 |   | 1.6 |   |
| Total                                                  |                                                             |                                                                 | $      | 1.5 |   |

| (a)   | OCI      is defined as Accumulated Other Comprehensive income (loss), a component      of stockholders’ equity. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------|

|         |  QUOTED      PRICES IN      ACTIVE  MARKETS      FOR IDENTICAL  ASSETS  (LEVEL      1) |   |  SIGNIFICANT OTHER OBSERVABLE INPUTS  (LEVEL      2) |   |    NETTING | (a)  |  DECEMBER 31, 2009 |    |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|---------------------------|-----------|-----------------------------------|---------|
| Assets:      |                                                                                                                                |   |                                                                               |   |                      |      |                              |    |   |   |   |   |
| Investments  |                                                                                                                                | $      | 34.3                                                                               |   |                      | $         | 25.2                              |    |   | $ | — |   |   | $ | 59.5 |   |
| Derivatives  |                                                                                                                                |   | 6.0                                                                                |   |                      |      | 96.8                              |    |   |   | (65.7 | ) |   |   | 37.1 |   |
| Liabilities: |                                                                                                                                |   |                                                                               |   |                      |      |                              |    |   |   |   |   |   |   |   |   |
| Derivatives  |                                                                                                                                |   | —                                                                            |   |                      |      | (82.6                             | )       |   |   | 65.7 |   |   |   | (16.9 | )  |
| Debt         |                                                                                                                                |   | —                                                                            |   |                      |      | (1,786.7                          | )  |   |   | — |   |   |   | (1,786.7 | )  |

|         |  QUOTED      PRICES IN      ACTIVE  MARKETS      FOR IDENTICAL  ASSETS  (LEVEL      1) |   |  SIGNIFICANT OTHER OBSERVABLE INPUTS  (LEVEL      2) |   |    NETTING | (a)  |  DECEMBER 31, 2008 |    |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|---------------------------|-----------|-----------------------------------|---------|
| Assets:      |                                                                                                                                |   |                                                                               |   |                      |      |                              |    |   |   |   |   |
| Investments  |                                                                                                                                | $      | 45.8                                                                               |   |                      | $         | 21.7                              |    |   | $ | — |   |   | $ | 67.5 |   |
| Derivatives  |                                                                                                                                |   | —                                                                            |   |                      |      | 402.7                             |    |   |   | (219.3 | ) |   |   | 183.4 |   |
| Liabilities: |                                                                                                                                |   |                                                                               |   |                      |      |                              |    |   |   |   |   |   |   |   |   |
| Derivatives  |                                                                                                                                |   | (7.7                                                                               | )      |                      |      | (261.6                            | )       |   |   | 219.3 |   |   |   | (50.0 | )  |
| Debt         |                                                                                                                                |   | —                                                                            |   |                      |      | (1,370.8                          | )  |   |   | — |   |   |   | (1,370.8 | )  |

| (a)  | Accounting      principles generally accepted in the Unites States permit the netting of      derivative receivables and derivative payables when a legally enforceable      master netting arrangement exists. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                 |  2009 |   |  2008 |    |  2007 |   |
|----------------------|------------|--------|------------|---------|------------|--------|
| United      States   |       | $      | (121.2     | )  |       | $      | .4 |   |   | $ | 97.2 |   |
| Other      countries |       |   | 291.6      |    |       |   | 364.3 |   |   |   | 400.4 |   |
|                 |       | $      | 170.4      |    |       | $      | 364.7 |   |   | $ | 497.6 |   |

|                 |  2009 |   |  2008 |   |  2007 |   |
|----------------------|------------|--------|------------|--------|------------|--------|
| Current:             |       |   |       |   |       |   |   |   |   |
| United      States   |       | $      | (28.7      | )      |       | $      | (6.1 | ) |   | $ | (65.5 | )  |
| Other      countries |       |   | 50.5       |   |       |   | 69.8 |   |   |   | 68.6 |   |
|                 |       |   | 21.8       |   |       |   | 63.7 |   |   |   | 3.1 |   |
| Deferred:            |       |   |       |   |       |   |   |   |   |   |   |   |
| United      States   |       |   | 15.5       |   |       |   | 3.2 |   |   |   | (16.3 | ) |
| Other      countries |       |   | .6         |   |       |   | 4.2 |   |   |   | (7.3 | ) |
|                 |       |   | 16.1       |   |       |   | 7.4 |   |   |   | (23.6 | ) |
|                 |       | $      | 37.9       |   |       | $      | 71.1 |   |   | $ | (20.5 | ) |

----

|                                        |  2009 |    |  2008 |   |
|---------------------------------------------|------------|---------|------------|--------|
| Deferred      tax liabilities:              |       |    |       |   |   |   |
| Other                                       |       |  $ | (84.1      | )      |   |  $ | (80.4 | ) |
| Gross      deferred tax liabilities         |       |    | (84.1      | )      |   |   | (80.4 | ) |
| Deferred      tax assets:                   |       |    |       |   |   |   |   |   |
| Tax      loss carryforwards                 |       |    | 49.9       |   |   |   | 36.2 |   |
| Postretirement      benefits                |       |    | 244.0      |   |   |   | 209.1 |   |
| Environmental      remediation matters      |       |    | 34.3       |   |   |   | 34.7 |   |
| Stock-based      compensation               |       |    | 29.8       |   |   |   | 40.7 |   |
| Other                                       |       |    | 161.6      |   |   |   | 163.9 |   |
| Gross      deferred tax assets              |       |    | 519.6      |   |   |   | 484.6 |   |
| Deferred      tax asset valuation allowance |       |    | (37.8      | )      |   |   | (27.6 | ) |
| Net      deferred tax assets                |       | $       | 397.7      |   |   |  $ | 376.6 |   |

|                                                           |  2009 |   |  2008 |    |  2007 |    |
|----------------------------------------------------------------|------------|--------|------------|---------|------------|---------|
| Income      taxes at federal statutory      rate               |       | $      | 59.7       |    |       | $       | 127.6 |   |   | $ | 174.2 |   |
| Settlement      of tax litigation                              |       |   | —    |    |       |    | — |   |   |   | (153.4 | ) |
| Lower      effective taxes on earnings      in other countries |       |   | (37.9      | )  |       |    | (59.5 | ) |   |   | (53.6 | ) |
| Other –      net                                    |       |   | 16.1       |    |       |    | 3.0 |   |   |   | 12.3 |   |
| Income      taxes (benefit)                                    |       | $      | 37.9       |    |       |  $ | 71.1 |   |   |  $ | (20.5 | ) |

|                                                                |  2009 |   |  2008 |   |  2007 |   |
|---------------------------------------------------------------------|------------|--------|------------|--------|------------|--------|
| Balance      at January 1                                           |       | $      | 231.5      |   |       | $      | 317.4 |   |   | $  | 359.5 |   |
| Additions      based on tax positions related      to current year  |       |   | 23.9       |   |       |   | 33.9 |   |   |   |  35.2 |   |
| Additions      for tax positions  related      to prior years  |       |   | 18.9       |   |       |   | 65.5 |   |   |   |  63.0 |   |
| Reductions      for tax positions  related      to prior years |       |   | (9.2       | )      |       |   | (40.3 | ) |   |   |  (115.0 | )  |
| Settlements      (payments)                                         |       |   | (4.8       | )      |       |   | (57.0 | ) |   |   |  (26.2 | )  |
| Expiration      of the statute of limitations                       |       |   | (3.4       | )      |       |   | (75.1 | ) |   |   |  (13.5 | ) |
| Foreign      currency translation adjustment                        |       |   | 3.4        |   |       |   | (12.9 | ) |   |   |  14.4 |   |
| Balance      at December 31                                         |       | $      | 260.3      |   |       | $      | 231.5 |   |   | $  |  317.4 |   |

----

----

|                                                                                                          |                                                                                  | 2009    |                                                                                               |   | 2008                                                                     |    |
|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------|----------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|---------|
|                                                                                                          |  PENSION BENEFITS PLANS  IN      THE UNITED STATES |    |  PENSION  BENEFITS PLANS OUTSIDE OF      THE UNITED STATES |   |  OTHER POST- RETIREMENT BENEFITS ALL      PLANS |    |  PENSION BENEFITS PLANS  IN      THE UNITED STATES |   |  PENSION        BENEFITS PLANS OUTSIDE OF      THE UNITED STATES |   |  OTHER  POST- RETIREMENT BENEFITS ALL      PLANS |   |
| CHANGE      IN BENEFIT OBLIGATION                                                                             |                                                                                  |    |                                                                                               |   |                                                                     |    |   |   |   |   |   |   |   |   |   |   |
| Benefit      obligation at beginning of year                                                                  |                                                                                  | $       | 1,012.3                                                                                            |   |                                                                     | $       | 531.4 |   |   | $ | 81.4 |   |   | $ | 1,013.2 |   |   | $ | 793.1 |   |   | $ | 86.9 |   |
| Service      cost                                                                                             |                                                                                  |    | 18.2                                                                                               |   |                                                                     |    | 7.7 |   |   |   | .7 |   |   |   | 26.1 |   |   |   | 14.7 |   |   |   | .8 |   |
| Interest      cost                                                                                            |                                                                                  |    | 65.9                                                                                               |   |                                                                     |    | 33.5 |   |   |   | 4.8 |   |   |   | 78.1 |   |   |   | 49.1 |   |   |   | 4.9 |   |
| Curtailment      gain                                                                                         |                                                                                  |    | —                                                                                            |   |                                                                     |    | — |   |   |   | — |   |   |   | (1.1 | ) |   |   | (1.5 | ) |   |   | — |   |
| Plan      participants’ contributions                                                                   |                                                                                  |    | —                                                                                            |   |                                                                     |    | 1.1 |   |   |   | 1.4 |   |   |   | — |   |   |   | 1.6 |   |   |   | 3.3 |   |
| Actuarial      (gains) losses                                                                                 |                                                                                  |    | 107.3                                                                                              |   |                                                                     |    | 72.5 |   |   |   | 9.6 |   |   |   | (21.9 | ) |   |   | (96.7 | ) |   |   | 3.4 |   |
| Foreign      currency exchange rate changes                                                                   |                                                                                  |    | —                                                                                            |   |                                                                     |    | 50.3 |   |   |   | 1.5 |   |   |   | — |   |   |   | (182.3 | )  |   |   | (1.9 | ) |
| Benefits      paid                                                                                            |                                                                                  |    | (67.8                                                                                              | )      |                                                                     |    | (36.9 | ) |   |   | (12.9 | ) |   |   | (82.1 | ) |   |   | (46.6 | ) |   |   | (15.6 | ) |
| Plan      amendments                                                                                          |                                                                                  |    | 2.5                                                                                                |   |                                                                     |    | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (.4 | ) |
| Benefit      obligation at end of year                                                                        |                                                                                  |    | 1,138.4                                                                                            |   |                                                                     |    | 659.6 |   |   |   | 86.5 |   |   |   | 1,012.3 |   |   |   | 531.4 |   |   |   | 81.4 |   |
| CHANGE      IN PLAN ASSETS                                                                                    |                                                                                  |    |                                                                                               |   |                                                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair      value of plan assets at beginning of year                                                           |                                                                                  | 606.4   |                                                                                               |   |                                                                     | 343.6   |   |   |   | — |   |   |   | 987.8 |   |   |   | 643.6 |   |   |   | — |   |
| Actual      return/(loss) on plan assets                                                                      |                                                                                  |    | 140.4                                                                                              |   |                                                                     |    | 62.6 |   |   |   | — |   |   |   | (297.1 | ) |   |   | (119.6 | ) |   |   | — |   |
| Expenses                                                                                                      |                                                                                  |    | (6.6                                                                                               | )      |                                                                     |    | (1.4 | ) |   |   | — |   |   |   | (9.2 | ) |   |   | (2.1 | ) |   |   | — |   |
| Benefits      paid                                                                                            |                                                                                  |    | (67.8                                                                                              | )      |                                                                     |    | (35.5 | ) |   |   | (12.9 | ) |   |   | (82.1 | ) |   |   | (44.5 | ) |   |   | (15.6 | ) |
| Employer      contributions                                                                                   |                                                                                  |    | 6.8                                                                                                |   |                                                                     |    | 13.1 |   |   |   | 11.5 |   |   |   | 7.0 |   |   |   | 21.4 |   |   |   | 12.3 |   |
| Contributions      by plan participants                                                                       |                                                                                  |    | —                                                                                            |   |                                                                     |    | 1.1 |   |   |   | 1.4 |   |   |   | — |   |   |   | 1.6 |   |   |   | 3.3 |   |
| Foreign      currency exchange rate changes                                                                   |                                                                                  |    | —                                                                                            |   |                                                                     |    | 39.2 |   |   |   | — |   |   |   | — |   |   |   | (156.8 | ) |   |   | — |   |
| Fair      value of plan assets at end of year                                                                 |                                                                                  |    | 679.2                                                                                              |   |                                                                     |    | 422.7 |   |   |   | — |   |   |   | 606.4 |   |   |   | 343.6 |   |   |   | — |   |
| Funded      status                                                                                            |                                                                                  |    | (459.2                                                                                             | )      |                                                                     |    | (236.9 | ) |   |   | (86.5 | ) |   |   | (405.9 | ) |   |   | (187.8 | ) |   |   | (81.4 | ) |
| Contributions      subsequent to measurement date                                                             |                                                                                  | — |                                                                                               |   |                                                                     | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Accrued      benefit cost at December 31                                                                      |                                                                                  | $       | (459.2                                                                                             | )      |                                                                     | $       | (236.9 | ) |   | $ | (86.5 | ) |   | $ | (405.9 | ) |   | $ | (187.8 | ) |   | $ | (81.4 | ) |
| AMOUNTS      RECOGNIZED IN THE CONSOLIDATED      BALANCE      SHEET                                           |                                                                                  |    |                                                                                               |   |                                                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noncurrent      assets                                                                                        |                                                                                  | $       | —                                                                                            |   |                                                                     | $       | — |   |   | $ | — |   |   | $ | 17.5 |   |   | $ | — |   |   | $ | — |   |
| Current      liabilities                                                                                      |                                                                                  |    | (7.0                                                                                               | )      |                                                                     |    | (5.9 | ) |   |   | (9.3 | ) |   |   | (8.6 | ) |   |   | (5.3 | ) |   |   | (9.3 | ) |
| Postretirement      benefits                                                                                  |                                                                                  |    | (452.2                                                                                             | )      |                                                                     |    | (231.0 | ) |   |   | (77.2 | ) |   |   | (414.8 | ) |   |   | (182.5 | ) |   |   | (72.1 | ) |
| Net      amount recognized at December 31                                                                     |                                                                                  | $       | (459.2                                                                                             | )      |                                                                     | $       | (236.9 | ) |   | $ | (86.5 | ) |   | $ | (405.9 | ) |   | $ | (187.8 | ) |   | $ | (81.4 | ) |
| WEIGHTED-AVERAGE      ASSUMPTIONS USED      TO DETERMINE BENEFIT OBLIGATIONS      AS OF MEASUREMENT      DATE |                                                                                  |    |                                                                                               |   |                                                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Discount      rate                                                                                            |                                                                                  |    | 5.75                                                                                               | %      |                                                                     |    | 5.56 | % |   |   | 5.25 | % |   |   | 6.75 | % |   |   | 6.16 | % |   |   | 6.25 | % |
| Rate      of compensation increase                                                                            |                                                                                  |    | 3.95                                                                                               | %      |                                                                     |    | 3.61 | % |   |   | — |   |   |   | 3.95 | % |   |   | 3.60 | % |   |   | — |   |

| DECEMBER      31, 2009           |  PENSIONBENEFITS PLANS      IN      THE UNITEDSTATES |   |  PENSION BENEFITS  PLANS OUTSIDEOF THE UNITED      STATES |    |  OTHER POSTRETIREMENT BENEFITS ALL      PLANS |   |  TOTAL |    |
|----------------------------------|---------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|---------|-------------------------------------------------------------------|--------|-------------|---------|
| Prior      service (cost) credit |                                                                | $      | (5.7                                                                                         | )  |                                                              | $      | (5.0        | )  |   | $ | 19.7 |   |   | $ | 9.0 |   |
| Net      loss                    |                                                                |   | (579.9                                                                                       | )  |                                                              |   | (174.0      | )  |   |   | (23.9 | )  |   |   | (777.8 | )  |
| Total                            |                                                                | $      | (585.6                                                                                       | )  |                                                              | $      | (179.0      | )  |   | $ | (4.2 | )  |   | $ | (768.8 | )  |
|                             |                                                                |   |                                                                                         |    |                                                              |   |        |    |   |   |   |   |   |   |   |   |
| DECEMBER      31, 2008           |                                                                |   |                                                                                         |    |                                                              |   |        |    |   |   |   |   |   |   |   |   |
| Prior      service (cost) credit |                                                                | $      | (9.9                                                                                         | )  |                                                              | $      | (5.4        | )  |   | $ | 23.1 |   |   | $ | 7.8 |   |
| Net      loss                    |                                                                |   | (556.3                                                                                       | )  |                                                              |   | (117.8      | )  |   |   | (15.1 | )  |   |   | (689.2 | )  |
| Total                            |                                                                | $      | (566.2                                                                                       | )  |                                                              | $      | (123.2      | )  |   | $ | 8.0 |   |   | $ | (681.4 | )  |

----

|                             |  PENSION      BENEFITS      PLANS      IN      THE UNITED      STATES |   |  PENSION      BENEFITS  PLANS      OUTSIDE      OF THEUNITED STATES |   |  OTHER POSTRETIREMENT BENEFITS ALL      PLANS |   |  TOTAL |   |
|----------------------------------|---------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|-------------|--------|
| Prior      service cost (credit) |                                                                            | $      | .8                                                                                           |   |                                                              | $      | 1.0         |   |   | $ | (3.4 | ) |   | $ | (1.6 | ) |
| Net      loss                    |                                                                            |   | 38.6                                                                                         |   |                                                              |   | 5.9         |   |   |   | 1.5 |   |   |   | 46.0 |   |
| Total                            |                                                                            | $      | 39.4                                                                                         |   |                                                              | $      | 6.9         |   |   | $ | (1.9 | ) |   | $ | 44.4 |   |

| ASSET      CATEGORY           |  QUOTED      PRICES IN      ACTIVE  MARKETS      FOR IDENTICAL  ASSETS  (LEVEL      1) |   |   SIGNIFICANT      OTHER      OBSERVABLE      INPUTS      (LEVEL      2) |   |   SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL      3) |   | DECEMBER      31, 2009 TOTAL |   |
|------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|-----------------------------------|--------|
| Cash      and cash equivalents     |                                                                                                                                | $      | .3                                                                                 |   |                                                                 | $      | 4.9                               |   |   | $ | — |   |   | $ | 5.2 |   |
| Equity      securities:            |                                                                                                                                |   |                                                                               |   |                                                                 |   |                              |   |   |   |   |   |   |   |   |   |
| U.S.      companies                |                                                                                                                                |   | 107.0                                                                              |   |                                                                 |   | —                           |   |   |   | — |   |   |   | 107.0 |   |
| Mutual      funds                  |                                                                                                                                |   | 163.1                                                                              |   |                                                                 |   | 193.6                             |   |   |   | — |   |   |   | 356.7 |   |
| Fixed      income:                 |                                                                                                                                |   |                                                                               |   |                                                                 |   |                              |   |   |   |   |   |   |   |   |   |
| U.S.      treasury securities |                                                                                                                                |   | —                                                                            |   |                                                                 |   | 43.4                              |   |   |   | — |   |   |   | 43.4 |   |
| Corporate      bonds               |                                                                                                                                |   | —                                                                            |   |                                                                 |   | 43.2                              |   |   |   | — |   |   |   | 43.2 |   |
| Mortgage-backed      securities    |                                                                                                                                |   | —                                                                            |   |                                                                 |   | 8.1                               |   |   |   | — |   |   |   | 8.1 |   |
| Mutual      funds                  |                                                                                                                                |   | —                                                                            |   |                                                                 |   | 93.8                              |   |   |   | 8.0 |   |   |   | 101.8 |   |
| Other      fixed income            |                                                                                                                                |   | —                                                                            |   |                                                                 |   | 1.5                               |   |   |   | — |   |   |   | 1.5 |   |
| Alternative      investments       |                                                                                                                                |   | —                                                                            |   |                                                                 |   | —                           |   |   |   | 23.1 |   |   |   | 23.1 |   |
| Other                              |                                                                                                                                |   | (10.8                                                                              | )      |                                                                 |   | —                           |   |   |   | — |   |   |   | (10.8 | ) |
| Total                              |                                                                                                                                | $      | 259.6                                                                              |   |                                                                 | $      | 388.5                             |   |   | $ | 31.1 |   |   | $ | 679.2 |   |

----

| ASSET      CATEGORY       |  QUOTED      PRICES IN      ACTIVE  MARKETS      FOR IDENTICAL  ASSETS  (LEVEL      1) |   |   SIGNIFICANT      OTHER      OBSERVABLE      INPUTS      (LEVEL      2) |   |   SIGNIFICANT      UNOBSERVABLE INPUTS (LEVEL      3) |   | DECEMBER      31, 2009 TOTAL |   |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|-----------------------------------|--------|
| Cash      and cash equivalents |                                                                                                                                | $      | 4.6                                                                                |   |                                                                 | $      | —                           |   |   | $ | — |   |   | $ | 4.6 |   |
| Equity      securities:        |                                                                                                                                |   |                                                                               |   |                                                                 |   |                              |   |   |   |   |   |   |   |   |   |
| International companies   |                                                                                                                                |   | 61.0                                                                               |   |                                                                 |   | 6.9                               |   |   |   | — |   |   |   | 67.9 |   |
| Mutual      funds              |                                                                                                                                |   | 218.3                                                                              |   |                                                                 |   | —                           |   |   |   | — |   |   |   | 218.3 |   |
| Fixed      income:             |                                                                                                                                |   |                                                                               |   |                                                                 |   |                              |   |   |   |   |   |   |   |   |   |
| Corporate      bonds           |                                                                                                                                |   | —                                                                            |   |                                                                 |   | 69.7                              |   |   |   | — |   |   |   | 69.7 |   |
| Government      issues         |                                                                                                                                |   | —                                                                            |   |                                                                 |   | 50.3                              |   |   |   | — |   |   |   | 50.3 |   |
| Other      fixed income        |                                                                                                                                |   | —                                                                            |   |                                                                 |   | 4.7                               |   |   |   | — |   |   |   | 4.7 |   |
| Alternative      investments   |                                                                                                                                |   | .3                                                                                 |   |                                                                 |   | —                           |   |   |   | 6.7 |   |   |   | 7.0 |   |
| Other                          |                                                                                                                                |   | .2                                                                                 |   |                                                                 |   | —                           |   |   |   | — |   |   |   | .2 |   |
| Total                          |                                                                                                                                | $      | 284.4                                                                              |   |                                                                 | $      | 131.6                             |   |   | $ | 6.7 |   |   | $ | 422.7 |   |

|                                         |   PENSION      BENEFITS PLANS      IN THE UNITED      STATES |   |  PENSION      BENEFITS PLANS      OUTSIDE OF THE UNITED      STATES |   |  TOTAL |   |
|----------------------------------------------|----------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|-------------|--------|
| Balance,      beginning of year              |                                                                             | $      | 37.4                                                                               |   |        | $      | 20.7 |   |   | $ | 58.1 |   |
| Sales      (net of purchases)                |                                                                             |   | (4.7                                                                               | )      |        |   | (11.5 | )  |   |   | (16.2 | )  |
| Transfers      in (out)                      |                                                                             |   | —                                                                            |   |        |   | (.2 | ) |   |   | (.2 | ) |
| Net      realized and unrealized gain (loss) |                                                                             |   | (1.6                                                                               | )      |        |   | (3.9 | ) |   |   | (5.5 | ) |
| Foreign      exchange                        |                                                                             |   | —                                                                            |   |        |   | 1.6 |   |   |   | 1.6 |   |
| Balance,      end of year                    |                                                                             | $      | 31.1                                                                               |   |        | $      | 6.7 |   |   | $ | 37.8 |   |

|                                                                                                                    | PENSION      BENEFITSPLANS      IN      THE UNITED      STATES |   | PENSION      BENEFITS PLANS      OUTSIDE      OF THE  UNITED      STATES |   |
|-------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------|--------|
|                                                                                                                    |  2009                                                          |   |  2008                                                                              |   |  2009 |   |  2008 |   |
| All      defined benefit plans:                                                                                         |                                                                |   |                                                                                    |   |   |   |   |   |   |   |   |   |
| Accumulated      benefit obligation                                                                                     |                                                                | $      | 1,079.3                                                                                 |   |   | $ | 958.4 |   |   | $ | 632.9 |   |   | $ | 504.4 |   |
| Unfunded      defined benefit plans:                                                                                    |                                                                |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Projected      benefit obligation                                                                                       |                                                                |   | 108.8                                                                                   |   |   |   | 95.3 |   |   |   | 125.5 |   |   |   | 119.4 |   |
| Accumulated      benefit obligation                                                                                     |                                                                |   | 97.3                                                                                    |   |   |   | 84.5 |   |   |   | 116.3 |   |   |   | 110.5 |   |
| Defined      benefit plans with an accumulated benefit obligation      in      excess of the fair value of plan assets: |                                                                |   |                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Projected      benefit obligation                                                                                       |                                                                |   | 1,138.4                                                                                 |   |   |   | 1,006.1 |   |   |   | 659.6 |   |   |   | 522.3 |   |
| Accumulated      benefit obligation                                                                                     |                                                                |   | 1,079.3                                                                                 |   |   |   | 952.2 |   |   |   | 632.9 |   |   |   | 496.1 |   |
| Fair      value of plan assets                                                                                          |                                                                |   | 679.2                                                                                   |   |   |   | 582.7 |   |   |   | 422.7 |   |   |   | 334.6 |   |

----

|      |  PENSION      BENEFITS PLANS IN      THE UNITED      STATES |   |  PENSION      BENEFITS PLANS      OUTSIDE      OF      THE UNITED      STATES |   |  OTHER      POST-RETIREMENT BENEFITS      ALL      PLANS |   |
|-----------|---------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|
| 2010      |                                                                            | $      | 72.9                                                                                         |   |                                                               | $      | 30.9 |   |   | $ | 9.6 |   |
| 2011      |                                                                            |   | 72.9                                                                                         |   |                                                               |   | 32.0 |   |   |   | 9.2 |   |
| 2012      |                                                                            |   | 72.5                                                                                         |   |                                                               |   | 33.0 |   |   |   | 8.7 |   |
| 2013      |                                                                            |   | 94.7                                                                                         |   |                                                               |   | 34.3 |   |   |   | 8.3 |   |
| 2014      |                                                                            |   | 74.2                                                                                         |   |                                                               |   | 35.3 |   |   |   | 8.1 |   |
| 2015-2019 |                                                                            |   | 388.0                                                                                        |   |                                                               |   | 195.1 |   |   |   | 35.9 |   |

|                                                                                        |  PENSION      BENEFITS PLANS      IN THE UNITED      STATES |   | PENSION      BENEFITSPLANS      OUTSIDE OF THE UNITED      STATES |   |
|---------------------------------------------------------------------------------------------|-----------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|
|                                                                                        |  2009                                                            |   |  2008                                                        |   |  2007 |   |  2009 |   |  2008 |   |  2007 |   |
| Service      cost                                                                           |                                                                  | $      | 19.3                                                              |   |   | $ | 22.6 |   |   | $ | 26.0 |   |   | $ | 7.7 |   |   | $ | 12.3 |   |   | $ | 14.7 |   |
| Interest      cost                                                                          |                                                                  |   | 65.9                                                              |   |   |   | 63.7 |   |   |   | 62.5 |   |   |   | 33.5 |   |   |   | 40.9 |   |   |   | 39.6 |   |
| Expected      return on plan assets                                                         |                                                                  |   | (69.5                                                             | )      |   |   | (77.9 | ) |   |   | (75.6 | ) |   |   | (32.4 | ) |   |   | (40.1 | ) |   |   | (39.3 | ) |
| Amortization      of prior service cost                                                     |                                                                  |   | 1.4                                                               |   |   |   | 2.1 |   |   |   | 2.1 |   |   |   | 1.0 |   |   |   | 1.4 |   |   |   | 1.7 |   |
| Amortization      of net actuarial loss                                                     |                                                                  |   | 18.4                                                              |   |   |   | 15.9 |   |   |   | 26.3 |   |   |   | — |   |   |   | 4.7 |   |   |   | 12.9 |   |
| Curtailment      loss                                                                       |                                                                  |   | 5.3                                                               |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 1.1 |   |   |   | — |   |
| Net      periodic cost                                                                      |                                                                  | $      | 40.8                                                              |   |   | $ | 26.4 |   |   | $ | 41.3 |   |   | $ | 9.8 |   |   | $ | 20.3 |   |   | $ | 29.6 |   |
| WEIGHTED-AVERAGE      ASSUMPTIONS USED      IN DETERMINING NET PERIODIC      COST FOR YEAR: |                                                                  |   |                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Discount      rate                                                                          |                                                                  |   | 6.75                                                              | %      |   |   | 6.50 | % |   |   | 6.00 | % |   |   | 6.16 | % |   |   | 5.67 | % |   |   | 4.93 | % |
| Expected      return on plan assets                                                         |                                                                  |   | 8.25                                                              | %      |   |   | 8.75 | % |   |   | 8.75 | % |   |   | 7.24 | % |   |   | 7.49 | % |   |   | 7.49 | % |
| Rate      of compensation increase                                                          |                                                                  |   | 4.00                                                              | %      |   |   | 4.00 | % |   |   | 3.95 | % |   |   | 3.60 | % |   |   | 3.65 | % |   |   | 3.65 | % |

|                                                                                                    |   | 2009   |   |   | 2008   |   |   | 2007   |   |
|---------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Service      cost                                                                                       |   | $      | .7     |   |   | $      | .8     |   |   | $ | .8 |   |
| Interest      cost                                                                                      |   |   | 4.8    |   |   |   | 4.9    |   |   |   | 5.3 |   |
| Amortization      of prior service cost                                                                 |   |   | (3.4   | )      |   |   | (3.6   | )      |   |   | (4.5 | ) |
| Amortization      of net actuarial loss                                                                 |   |   | .8     |   |   |   | .4     |   |   |   | .2 |   |
| Net      periodic cost                                                                                  |   | $      | 2.9    |   |   | $      | 2.5    |   |   | $ | 1.8 |   |
| Weighted-average      discount rate used      in determining net  periodic      cost for year |   |   | 6.25   | %      |   |   | 6.00   | %      |   |   | 6.25 | % |

| ONE-PERCENTAGE-POINT                                              |  INCREASE |   |  (DECREASE) |   |
|-------------------------------------------------------------------|----------------|--------|------------------|--------|
| Effect      on total of service and interest      cost components | $              | .2     |             |   | $ | (.2 | ) |
| Effect      on postretirement benefit      obligation             |           | 3.9    |             |   |   | (3.6 | ) |

----

|                                                            |  2009 |   |  2008 |   |
|-----------------------------------------------------------------|------------|--------|------------|--------|
| Foreign      currency translation adjustment                    |       | $      | 32.1       |   |   | $ | (65.4 | ) |
| Net      gain (loss) on derivative instruments, net      of tax |       |   | 2.6        |   |   |   | 55.9 |   |
| Minimum      pension liability adjustment, net      of tax      |       |   | (507.5     | )      |   |   | (446.8 | ) |
|                                                            |       | $      | (472.8     | )      |   | $ | (456.3 | ) |

| (AMOUNTS      IN MILLIONSEXCEPT      PER SHARE DATA)                                                                             |  2009 |    |  2008 |    |  2007 |    |
|----------------------------------------------------------------------------------------------------------------------------------|------------|---------|------------|---------|------------|---------|
| Numerator:                                                                                                                       |       |    |       |    |       |    |   |   |   |
| Net      earnings                                                                                                                |       | $       | 132.5      |    |       | $       | 293.6 |   |   | $ | 518.1 |   |
|          Dividends on stock-based plans                                                                           |       |    | (.8        | )       |       |    | (1.5 | )  |   |   | (1.3 | ) |
| Undistributed      earnings allocable to      stock-based plans                                                                  |       |    | (1.5       | )  |       |    | (3.0 | ) |   |   | (5.1 | ) |
| Numerator      for basic anddiluted      earnings per share – net      earnings available to common      shareholders |       |  $ | 130.2      |    |       |  $ | 289.1  |   |   |  $ | 511.7  |   |
| Denominator:                                                                                                                     |       |    |       |    |       |    |   |   |   |   |   |   |
| Denominator      for basic earnings      per share –weighted-average      shares                                           |       |    | 59.6       |    |       |    | 59.8 |   |   |   | 64.3 |   |
| Employee      stock options                                                                                                      |       |    | .3         |    |       |    | .8 |   |   |   | 1.4 |   |
| Denominator      for diluted earnings      per share –adjusted      weighted-averageshares      and assumedconversions     |       |    | 59.9       |    |       |    | 60.6 |   |   |   | 65.7 |   |
| Basic      earnings per share                                                                                                    |       | $       | 2.18       |    |       | $       | 4.83 |   |   | $ | 7.96 |   |
| Diluted      earnings per share                                                                                                  |       | $       | 2.17       |    |       | $       | 4.77 |   |   | $ | 7.78 |   |

|                                      |  2009 |   |  2008 |   |  2007 |   |
|-------------------------------------------|------------|--------|------------|--------|------------|--------|
| Number      of options (in      millions) |       |   | 4.8        |   |       |   | 2.6 |   |   |   | 1.6 |   |
| Weighted-average      exercise      price |       | $      | 63.71      |   |       | $      | 81.39 |   |   | $ | 88.76 |   |

|                                                    |  STOCK OPTIONS |   |  WEIGHTED- AVERAGE EXERCISE      PRICE |   |
|---------------------------------------------------------|--------------------------|--------|-------------------------------------------------------|--------|
| Outstanding      at December 31, 2006                   |                     |   | 6,036,012                                             |   |   | $ | 55.68 |   |
| Granted                                                 |                     |   | 790,470                                               |   |   |   | 88.38 |   |
| Exercised                                               |                     |   | (1,406,664                                            | )      |   |   | 49.75 |   |
| Forfeited                                               |                     |   | (154,788                                              | )      |   |   | 80.80 |   |
| Outstanding      at December 31, 2007                   |                     |   | 5,265,030                                             |   |   |   | 61.43 |   |
| Granted                                                 |                     |   | 548,020                                               |   |   |   | 67.11 |   |
| Exercised                                               |                     |   | (163,728                                              | )      |   |   | 51.74 |   |
| Forfeited                                               |                     |   | (149,128                                              | )      |   |   | 83.80 |   |
| Outstanding      at December 31, 2008                   |                     |   | 5,500,194                                             |   |   |   | 61.68 |   |
| Granted                                                 |                     |   | 795,940                                               |   |   |   | 38.28 |   |
| Exercised                                               |                     |   | (1,342,211                                            | )      |   |   | 42.04 |   |
| Forfeited                                               |                     |   | (255,799                                              | )      |   |   | 68.13 |   |
| Outstanding      at December 31, 2009                   |                     |   | 4,698,124                                             |   |   | $ | 62.97 |   |
| Options      expected to vest at December      31, 2009 |                     |   | 4,623,002                                             |   |   | $ | 62.94 |   |
| Options      exercisable at December      31, 2009      |                     |   | 3,800,872                                             |   |   | $ | 63.08 |   |

----

|                        |  2009 |   |  2008 |   |  2007 |   |
|-----------------------------|------------|--------|------------|--------|------------|--------|
| Expected      life in years |       |   | 6.0        |   |       |   | 6.0 |   |   |   | 5.5 |   |
| Interest      rate          |       |   | 2.23       | %      |       |   | 3.30 | % |   |   | 4.56 | % |
| Volatility                  |       |   | 35.4       | %      |       |   | 30.7 | % |   |   | 25.3 | % |
| Dividend      yield         |       |   | 2.00       | %      |       |   | 2.50 | % |   |   | 1.90 | % |

|                                 |  NUMBER OF      SHARES |   |  WEIGHTED- AVERAGE FAIR      VALUE AT GRANT      DATE |   |
|--------------------------------------|----------------------------------|--------|---------------------------------------------------------------------------|--------|
| Non-vested      at December 31, 2006 |                             |   | 618,038                                                                   |   |   | $ | 76.32 |   |
| Granted                              |                             |   | 266,537                                                                   |   |   |   | 88.53 |   |
| Forfeited                            |                             |   | (46,425                                                                   | )      |   |   | 81.04 |   |
| Vested                               |                             |   | (157,056                                                                  | )      |   |   | 56.10 |   |
| Non-vested      at December 31, 2007 |                             |   | 681,094                                                                   |   |   |   | 85.43 |   |
| Granted                              |                             |   | 347,175                                                                   |   |   |   | 66.62 |   |
| Forfeited                            |                             |   | (53,592                                                                   | )      |   |   | 82.20 |   |
| Vested                               |                             |   | (50,263                                                                   | )      |   |   | 56.16 |   |
| Non-vested      at December 31, 2008 |                             |   | 924,414                                                                   |   |   |   | 80.15 |   |
| Granted                              |                             |   | 584,560                                                                   |   |   |   | 38.29 |   |
| Forfeited                            |                             |   | (54,005                                                                   | )      |   |   | 74.16 |   |
| Vested                               |                             |   | (1,115,269                                                                | )      |   |   | 63.85 |   |
| Non-vested      at December 31, 2009 |                             |   | 339,700                                                                   |   |   | $ | 62.57 |   |

----

|                                                                                                                                                       | Reportable      Business Segments       |    |                                |   |                                       |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|---------|-------------------------------------|--------|--------------------------------------------|--------|--------|
| Year      Ended December 31, 2009                                                                                                                          | Power      Tools      & Accessories |    | Hardware&      Home Improvement |   | Fastening &      Assembly Systems |   | Total  |   | Currency      Translation Adjustments |   | Corporate,      Adjustment,      &      Eliminations |   | Consolidated |
| Sales to unaffiliated      customers                                                                                                                       | $                                       | 3,471.5 |                                | $      | 755.4                                      |   | $      | 536.6 |   | $ | 4,763.5 |   | $ | 11.6 |   | $ | — |   | $ | 4,775.1 |
| Segment profit (loss)(for Consolidated,      operatingincome      before merger-related expenses      and restructuringand      exit      costs) |                                    | 257.3   |                                |   | 76.9                                       |   |   | 39.5 |   |   | 373.7 |   |   | 13.5 |   |   | (67.1 | ) |   | 320.1 |
| Depreciation      and amortization                                                                                                                         |                                    | 85.1    |                                |   | 18.8                                       |   |   | 22.0 |   |   | 125.9 |   |   | .6 |   |   | 1.5 |   |   | 128.0 |
| Income      from equity method investees                                                                                                                   |                                    | 21.3    |                                |   | —                                    |   |   | — |   |   | 21.3 |   |   | — |   |   | (1.9 | ) |   | 19.4 |
| Capital      expenditures                                                                                                                                  |                                    | 41.3    |                                |   | 13.2                                       |   |   | 7.4 |   |   | 61.9 |   |   | .3 |   |   | .9 |   |   | 63.1 |
| Segment      assets (for      Consolidated, total      assets)                                                                                             |                                    | 2,108.2 |                                |   | 503.9                                      |   |   | 388.8 |   |   | 3,000.9 |   |   | 85.9 |   |   | 2,408.4 |   |   | 5,495.2 |
| Investment      in equity method investees                                                                                                                 |                                    | 28.1    |                                |   | —                                    |   |   | .6 |   |   | 28.7 |   |   | — |   |   | (1.7 | ) |   | 27.0 |
|                                                                                                                                                       |                                    |    |                                |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Year      Ended December 31, 2008                                                                                                                          |                                    |    |                                |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales      to unaffiliated customers                                                                                                                       | $                                       | 4,286.6 |                                | $      | 891.6                                      |   | $      | 703.2 |   | $ | 5,881.4 |   | $ | 204.7 |   | $ | — |   | $ | 6,086.1 |
| Segment      profit (loss) (for      Consolidated, operating income      before      restructuring and      exit      costs)                               |                                    | 317.4   |                                |   | 75.8                                       |   |   | 106.0 |   |   | 499.2 |   |   | 29.4 |   |   | (51.8 | ) |   | 476.8 |
| Depreciation      and amortization                                                                                                                         |                                    | 89.9    |                                |   | 20.6                                       |   |   | 21.6 |   |   | 132.1 |   |   | 3.4 |   |   | 1.1 |   |   | 136.6 |
| Income      from equity method investees                                                                                                                   |                                    | 12.0    |                                |   | —                                    |   |   | — |   |   | 12.0 |   |   | — |   |   | (.9 | ) |   | 11.1 |
| Capital      expenditures                                                                                                                                  |                                    | 56.6    |                                |   | 16.5                                       |   |   | 18.6 |   |   | 91.7 |   |   | 2.3 |   |   | 4.8 |   |   | 98.8 |
| Segment      assets (for      Consolidated, total      assets)                                                                                             |                                    | 2,492.6 |                                |   | 571.7                                      |   |   | 433.1 |   |   | 3,497.4 |   |   | (11.8 | ) |   | 1,697.7 |   |   | 5,183.3 |
| Investment      in equity method investees                                                                                                                 |                                    | 26.8    |                                |   | —                                    |   |   | .5 |   |   | 27.3 |   |   | — |   |   | (1.7 | ) |   | 25.6 |
|                                                                                                                                                       |                                    |    |                                |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Year      Ended December 31, 2007                                                                                                                          |                                    |    |                                |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales      to unaffiliated customers                                                                                                                       | $                                       | 4,754.8 |                                | $      | 1,001.7                                    |   | $      | 720.7 |   | $ | 6,477.2 |   | $ | 86.0 |   | $ | — |   | $ | 6,563.2 |
| Segment      profit (loss) (for      Consolidated, operating income      before restructuringand      exit costs)                                     |                                    | 482.2   |                                |   | 113.6                                      |   |   | 113.9 |   |   | 709.7 |   |   | (2.3 | ) |   | (106.2 | ) |   | 601.2 |
| Depreciation      and amortization                                                                                                                         |                                    | 96.7    |                                |   | 22.8                                       |   |   | 20.5 |   |   | 140.0 |   |   | .5 |   |   | 2.9 |   |   | 143.4 |
| Income      from equity method investees                                                                                                                   |                                    | 12.7    |                                |   | —                                    |   |   | — |   |   | 12.7 |   |   | — |   |   | (1.0 | ) |   | 11.7 |
| Capital      expenditures                                                                                                                                  |                                    | 65.0    |                                |   | 20.8                                       |   |   | 22.2 |   |   | 108.0 |   |   | .5 |   |   | 7.9 |   |   | 116.4 |
| Segment      assets (for      Consolidated, total      assets)                                                                                             |                                    | 2,654.2 |                                |   | 653.7                                      |   |   | 406.6 |   |   | 3,714.5 |   |   | 135.5 |   |   | 1,560.9 |   |   | 5,410.9 |
| Investment      in equity method investees                                                                                                                 |                                    | 15.6    |                                |   | —                                    |   |   | .5 |   |   | 16.1 |   |   | — |   |   | (1.7 | ) |   | 14.4 |

----

|                                                                                                                                                                                             |  2009 |   |  2008 |   |  2007 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------|------------|--------|------------|--------|
| Segment      profit for total reportable      business segments                                                                                                                                  |       | $      | 373.7      |   |       | $      | 499.2 |   |   | $ | 709.7 |   |
| Items      excluded from segment profit:                                                                                                                                                         |       |   |       |   |       |   |   |   |   |   |   |   |
| Adjustment      of budgeted foreign exchange      rates to actual rates                                                                                                                          |       |   | 13.5       |   |       |   | 29.4 |   |   |   | (2.3 | ) |
| Depreciation      of Corporate property                                                                                                                                                          |       |   | (1.5       | )      |       |   | (1.1 | ) |   |   | (1.4 | ) |
| Adjustment      to businesses’ postretirement benefit      expenses booked in consolidation                                                                                                |       |   | (12.0      | )      |       |   | (3.6 | ) |   |   | (19.9 | ) |
| Other      adjustments booked in consolidation directly      related to reportable business segments                                                                                             |       |   | (.3        | )      |       |   | (4.9 | ) |   |   | 8.3 |   |
| Amounts      allocated to businesses in arriving at segment      profit in excess of (less than) Corporate center      operating expenses, eliminations, and other amounts      identified above |       |   | (53.3      | )      |       |   | (42.2 | ) |   |   | (93.2 | ) |
| Operating      income before merger-related expenses and restructuring      and exit costs                                                                                                  |       |   | 320.1      |   |       |   | 476.8 |   |   |   | 601.2 |   |
| Merger-related      expenses                                                                                                                                                                |       |   | 58.8  |   |       |   | — |   |   |   | — |   |
| Restructuring      and exit costs                                                                                                                                                                |       |   | 11.9       |   |       |   | 54.7 |   |   |   | 19.0 |   |
| Operating      income                                                                                                                                                                            |       |   | 249.4      |   |       |   | 422.1 |   |   |   | 582.2 |   |
| Interest      expense, net of interest income                                                                                                                                                    |       |   | 83.8       |   |       |   | 62.4 |   |   |   | 82.3 |   |
| Other      (income) expense                                                                                                                                                                      |       |   | (4.8       | )      |       |   | (5.0 | ) |   |   | 2.3 |   |
| Earnings      before income taxes                                                                                                                                                                |       | $      | 170.4      |   |       | $      | 364.7 |   |   | $ | 497.6 |   |

|                                                                      |  2009 |   |  2008 |   |  2007 |   |
|---------------------------------------------------------------------------|------------|--------|------------|--------|------------|--------|
| Segment      assets for total      reportable      business      segments |       | $      | 3,000.9    |   |       | $      | 3,497.4 |   |   | $ | 3,714.5 |   |
| Items      excluded from segment assets:                                  |       |   |       |   |       |   |   |   |   |   |   |   |
| Adjustment      of budgeted foreign exchange      rates to actual rates   |       |   | 85.9       |   |       |   | (11.8 | )  |   |   | 135.5 |   |
| Goodwill                                                                  |       |   | 636.6      |   |       |   | 633.8 |   |   |   | 640.5 |   |
| Pension      assets                                                       |       |   | —    |   |       |   | 17.5 |   |   |   | 76.6 |   |
| Other      Corporate assets                                               |       |   | 1,771.8    |   |       |   | 1,046.4 |   |   |   | 843.8 |   |
|                                                                      |       | $      | 5,495.2    |   |       | $      | 5,183.3 |   |   | $ | 5,410.9 |   |

----

|                                                                   |  2009 |   |  2008 |   |  2007 |   |
|------------------------------------------------------------------------|------------|--------|------------|--------|------------|--------|
| Consumer      and industrial power      tools      and product service |       | $      | 2,449.2    |   |       | $      | 3,236.1 |   |   | $ | 3,537.3 |   |
| Lawn      and garden products                                          |       |   | 312.1      |   |       |   | 377.9 |   |   |   | 430.6 |   |
| Consumer      and industrial accessories                               |       |   | 392.6      |   |       |   | 452.0 |   |   |   | 479.2 |   |
| Cleaning,      automotive, lighting, and household      products       |       |   | 266.7      |   |       |   | 321.0 |   |   |   | 345.3 |   |
| Security      hardware                                                 |       |   | 552.5      |   |       |   | 649.9 |   |   |   | 730.9 |   |
| Plumbing      products                                                 |       |   | 248.0      |   |       |   | 309.2 |   |   |   | 323.3 |   |
| Fastening      and assembly systems                                    |       |   | 554.0      |   |       |   | 740.0 |   |   |   | 716.6 |   |
|                                                                   |       | $      | 4,775.1    |   |       | $      | 6,086.1 |   |   | $ | 6,563.2 |   |

|               |  2009 |   |  2008 |   |  2007 |   |
|--------------------|------------|--------|------------|--------|------------|--------|
| United      States |       | $      | 2,705.5    |   |       | $      | 3,358.6 |   |   | $ | 3,930.2 |   |
| Canada             |       |   | 275.7      |   |       |   | 382.3 |   |   |   | 361.8 |   |
| North      America |       |   | 2,981.2    |   |       |   | 3,740.9 |   |   |   | 4,292.0 |   |
| Europe             |       |   | 1,076.7    |   |       |   | 1,516.0 |   |   |   | 1,568.0 |   |
| Other              |       |   | 717.2      |   |       |   | 829.2 |   |   |   | 703.2 |   |
|               |       | $      | 4,775.1    |   |       | $      | 6,086.1 |   |   | $ | 6,563.2 |   |

|                 |  2009 |   |  2008 |   |  2007 |   |
|----------------------|------------|--------|------------|--------|------------|--------|
| United      States   |       | $      | 195.4      |   |       | $      | 217.7 |   |   | $ | 259.6 |   |
| Mexico               |       |   | 71.5       |   |       |   | 98.3 |   |   |   | 106.8 |   |
| Other      countries |       |   | 206.5      |   |       |   | 211.9 |   |   |   | 229.8 |   |
|                 |       | $      | 473.4      |   |       | $      | 527.9 |   |   | $ | 596.2 |   |

|       |   |   |
|------------|--------|--------|
| 2010       |   | $      | 65.6 |   |
| 2011       |   |   | 47.6 |   |
| 2012       |   |   | 36.0 |   |
| 2013       |   |   | 20.4 |   |
| 2014       |   |   | 14.2 |   |
| Thereafter |   |   | 12.1 |   |
|       |   | $      | 195.9 |   |

|                                            |  SEVERANCE BENEFITS |   |  WRITE-DOWN TO      FAIR VALUE LESS      COSTS TO      SELL OF      CERTAIN LONG-LIVED ASSETS |   |  OTHER CHARGES |   |  TOTAL   |   |
|-------------------------------------------------|-------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|---------------|--------|
| Restructuring      reserve at December 31, 2006 |                          | $      | 2.8                                                                                                                              |   |                     | $      | —       |   |   | $ | .4 |   |   | $ | 3.2 |   |
| Reserves      established in 2007               |                          |   | 14.8                                                                                                                             |   |                     |   | 4.0           |   |   |   | .2 |   |   |   | 19.0 |   |
| Utilization      of reserves:                   |                          |   |                                                                                                                             |   |                     |   |          |   |   |   |   |   |   |   |   |   |
| Cash                                            |                          |   | (1.0                                                                                                                             | )      |                     |   | —       |   |   |   | — |   |   |   | (1.0 | ) |
| Non-cash                                        |                          |   | —                                                                                                                          |   |                     |   | (4.0          | )      |   |   | — |   |   |   | (4.0 | ) |
| Foreign      currency translation               |                          |   | .1                                                                                                                               |   |                     |   | —       |   |   |   | — |   |   |   | .1 |   |
| Restructuring      reserve at December 31, 2007 |                          |   | 16.7                                                                                                                             |   |                     |   | —       |   |   |   | .6 |   |   |   | 17.3 |   |
| Reserves      established in 2008               |                          |   | 48.3                                                                                                                             |   |                     |   | 3.7           |   |   |   | 2.7 |   |   |   | 54.7 |   |
| Utilization      of reserves:                   |                          |   |                                                                                                                             |   |                     |   |          |   |   |   |   |   |   |   |   |   |
| Cash                                            |                          |   | (24.9                                                                                                                            | )      |                     |   | —       |   |   |   | (.4 | ) |   |   | (25.3 | ) |
| Non-cash                                        |                          |   | —                                                                                                                          |   |                     |   | (3.7          | )      |   |   | (.9 | ) |   |   | (4.6 | ) |
| Foreign      currency translation               |                          |   | (4.5                                                                                                                             | )      |                     |   | —       |   |   |   | — |   |   |   | (4.5 | ) |
| Restructuring      reserve at December 31, 2008 |                          |   | 35.6                                                                                                                             |   |                     |   | —       |   |   |   | 2.0 |   |   |   | 37.6 |   |
| Reserves      established in 2009               |                          |   | 12.6                                                                                                                             |   |                     |   | .4            |   |   |   | 1.2 |   |   |   | 14.2 |   |
| Reversal      of reserves                       |                          |   | (1.8                                                                                                                             | )      |                     |   |  — |   |   |   | (.5 | )  |   |   | (2.3 | )  |
| Utilization      of reserves:                   |                          |   |                                                                                                                             |   |                     |   |          |   |   |   |   |   |   |   |   |   |
| Cash                                            |                          |   | (37.9                                                                                                                            | )      |                     |   | —       |   |   |   | (1.9 | ) |   |   | (39.8 | ) |
| Non-cash                                        |                          |   | —                                                                                                                          |   |                     |   | (.4           | )      |   |   | — |   |   |   | (.4 | ) |
| Foreign      currency translation               |                          |   | 1.2                                                                                                                              |   |                     |   | —       |   |   |   | — |   |   |   | 1.2 |   |
| Restructuring      reserve at December 31, 2009 |                          | $      | 9.7                                                                                                                              |   |                     | $      | —       |   |   | $ | .8 |   |   | $ | 10.5 |   |

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| (DOLLARS      IN MILLIONS EXCEPT PER SHARE DATA)YEAR      ENDED DECEMBER 31, 2009 |  FIRST QUARTER |   |  SECOND QUARTER |   |  THIRD QUARTER |   |  FOURTH QUARTER |   |
|-----------------------------------------------------------------------------------|--------------------------|--------|---------------------------|--------|--------------------------|--------|---------------------------|--------|
| Sales                                                                             |                     | $      | 1,073.7                   |   |                     | $      | 1,191.4                   |   |   | $ | 1,208.7 |   |   | $ | 1,301.3 |   |
| Gross      margin                                                                 |                     |   | 340.8                     |   |                     |   | 372.2                     |   |   |   | 400.3 |   |   |   | 473.2 |   |
| Net      earnings                                                                 |                     |   | 4.9                       |   |                     |   | 38.3                      |   |   |   | 55.4 |   |   |   | 33.9 |   |
| Net      earnings per common share–basic                                    |                     | $      | .08                       |   |                     | $      | .63                       |   |   | $ | .91 |   |   | $ | .56 |   |
| Net      earnings per common share–diluted                                  |                     | $      | .08                       |   |                     | $      | .63                       |   |   | $ | .91 |   |   | $ | .55 |   |

| YEAR      ENDED DECEMBER 31, 2008                |  FIRST QUARTER |   |  SECOND QUARTER |   |  THIRD QUARTER |   |  FOURTH QUARTER |   |
|--------------------------------------------------|--------------------------|--------|---------------------------|--------|--------------------------|--------|---------------------------|--------|
| Sales                                            |                     | $      | 1,495.8                   |   |                     | $      | 1,641.7                   |   |   | $ | 1,570.8 |   |   | $ | 1,377.8 |   |
| Gross      margin                                |                     |   | 517.5                     |   |                     |   | 537.2                     |   |   |   | 508.9 |   |   |   | 434.8 |   |
| Net      earnings                                |                     |   | 67.4                      |   |                     |   | 96.7                      |   |   |   | 85.8 |   |   |   | 43.7 |   |
| Net      earnings per common share–basic   |                     | $      | 1.10                      |   |                     | $      | 1.58                      |   |   | $ | 1.43 |   |   | $ | .72 |   |
| Net      earnings per common share–diluted |                     | $      | 1.08                      |   |                     | $      | 1.56                      |   |   | $ | 1.41 |   |   | $ | .72 |   |

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| (a)  | List      of Financial Statements, Financial Statement Schedules, and      Exhibits |
|-----------|-------------------------------------------------------------------------------------|

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| (b)  | Exhibits |
|-----------|----------|

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| (c)  | Financial      Statement Schedules and Other Financial  Statements |
|-----------|--------------------------------------------------------------------|

| DESCRIPTION                                           |  BALANCE AT      BEGINNING OF      PERIOD |   |  ADDITIONS CHARGED      TO COSTS      AND EXPENSES |   |  DEDUCTIONS |   |  OTHER CHANGES ADD (DEDUCT) |   |  BALANCE AT      END OF      PERIOD |   |
|-------------------------------------------------------|----------------------------------------------------------|--------|------------------------------------------------------------------------|--------|------------------|--------|-------------------------------------------------|--------|----------------------------------------------------|--------|
| Year      Ended December 31, 2009                     |                                                     |   |                                                                   |   |             |   |                                            |   |                                               |   |   |   |   |   |   |
| Reserve      for doubtful accounts and cash discounts |                                                     | $      | 39.1                                                                   |   |             | $      | 71.9                                            |   |                                               | $      | 67.3 | (a) |   | $ | 2.1 | (b) |   | $ | 45.8 |   |
| Year      Ended December 31, 2008                     |                                                     |   |                                                                   |   |             |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Reserve      for doubtful accounts and cash discounts |                                                     | $      | 44.2                                                                   |   |             | $      | 89.2                                            |   |                                               | $      | 91.8 | (a) |   | $ | (2.5 | )(b) |   | $ | 39.1 |   |
| Year      Ended December 31, 2007                     |                                                     |   |                                                                   |   |             |   |                                            |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Reserve      for doubtful accounts and cash discounts |                                                     | $      | 44.5                                                                   |   |             | $      | 91.8                                            |   |                                               | $      | 94.5 | (a) |   | $ | 2.4 | (b) |   | $ | 44.2 |   |

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|   |              |   | THE      BLACK & DECKER CORPORATION |                                                                  |
|--------|-------------------|--------|-----------------------------------------|-----------------------------------------------------------------------|
|   |              |   |                                    |                                                                  |   |   |
| Date:  | February 19, 2010 |   | By                                      | /s/ NOLAN D. ARCHIBALD                                                |   |   |
|   |              |   |                                    |  Nolan      D. Archibald                                         |   |   |
|   |              |   |                                    |  Chairman,      President, and Chief      Executive Officer |   |   |
|   |              |   |                                    |                                                                  |   |   |

| SIGNATURE                        |   | TITLE                                                 |        DATE                   |   |
|----------------------------------|--------|-------------------------------------------------------|------------------------------------|--------|
|                             |   |                                                  |                               |   |
| Principal      Executive Officer |   |                                                  |                               |   |
| /s/      NOLAN D. ARCHIBALD      |   |                                                  |        February      19, 2010 |   |
| Nolan      D. Archibald          |   | Chairman,      President, and Chief Executive Officer |                               |   |
|                             |   |                                                  |                               |   |

| Principal      Financial Officer |   |                                                   |                               |   |
|----------------------------------|--------|--------------------------------------------------------|------------------------------------|--------|
| /s/      STEPHEN F. REEVES       |   |                                                   |        February      19, 2010 |   |
| Stephen      F. Reeves           |   | Senior      Vice President and Chief Financial Officer |                               |   |
|                             |   |                                                   |                               |   |

| Principal      Accounting Officer |   |                               |                               |   |
|-----------------------------------|--------|------------------------------------|------------------------------------|--------|
| /s/      CHRISTINA M. MCMULLEN    |   |                               |        February      19, 2010 |   |
| Christina      M. McMullen        |   | Vice      President and Controller |                               |   |
|                              |   |                               |                               |   |
|                              |   |                               |                               |   |

|   | Nolan      D. Archibald  |   | Manual      A. Fernandez      |   |
|--------|--------------------------|--------|-------------------------------|--------|
|   | Norman      R. Augustine |   | Benjamin      H. Griswold, IV |   |
|   | Barbara      L. Bowles   |   | Anthony      Luiso            |   |
|   | George      W. Buckley   |   | Robert      L. Ryan           |   |
|   | M.      Anthony Burns    |   | Mark      H. Willes           |   |
|   | Kim      B. Clark        |   |                          |   |

| By     | /s/      NOLAN D. ARCHIBALD |   | Date:  | February      19, 2010 |   |
|--------|-----------------------------|--------|--------|------------------------|--------|
|   | Nolan      D. Archibald     |   |   |                   |   |
|   | Attorney-in-Fact            |   |   |                   |   |

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