Toro 2009 Annual Report Download - page 55

revenues are recognized in accordance with the programs estab- respectively, were excluded from the diluted net earnings per
lished for various product lines. Advertising costs were $33,496, share calculation because their exercise prices were greater than
$43,137, and $39,877 for the fiscal years ended October 31, 2009, the average market price of the company’s common stock during
2008, and 2007, respectively. the same respective periods.
Stock-Based Compensation Cash Flow Presentation
The company’s stock-based compensation awards include per- The consolidated statements of cash flows are prepared using the
formance shares issued to key employees that are contingent on indirect method which reconciles net earnings to cash flow from
the achievement of performance goals of the company, as well as operating activities. The necessary adjustments include the
non-qualified stock options. Compensation expense equal to the removal of timing differences between the occurrence of operating
grant date fair value is recognized for these awards over the vest- receipts and payments and their recognition in net earnings. The
ing period. See Note 10 for additional information regarding stock- adjustments also remove from operating activities cash flows aris-
based compensation plans. ing from investing and financing activities, which are presented
separately from operating activities. Cash flows from foreign cur-
Net Earnings Per Share rency transactions and operations are translated at an average
Basic net earnings per share is calculated using net earnings avail- exchange rate for the period. Cash paid for acquisitions is classi-
able to common stockholders divided by the weighted-average fied as investing activities.
number of shares of common stock outstanding during the year
plus the assumed issuance of contingent shares. Diluted net earn- Statement of Stockholders’ Equity and Comprehensive
ings per share is similar to basic net earnings per share except Income Information
that the weighted-average number of shares of common stock out- Components of accumulated other comprehensive loss as of Octo-
standing plus the assumed issuance of contingent shares is ber 31 were as follows:
increased to include the number of additional shares of common
stock that would have been outstanding assuming the issuance of 2009 2008 2007
all potentially dilutive shares, such as common stock to be issued Foreign currency translation adjustment $2,368 $15,654 $ (2,713)
upon exercise of options, contingently issuable shares, and Adjustment related to the adoption of SFAS
No. 158, net of tax – – 1,484
non-vested restricted shares.
Adjustments to employee retirement plans,
Reconciliations of basic and diluted weighted-average shares of net of tax 3,942 1,309 184
common stock outstanding are as follows: Unrealized loss (gain) on derivative
instruments, net of tax 3,093 (8,419) 3,942
BASIC
Total accumulated other comprehensive loss $9,403 $ 8,544 $ 2,897
(Shares in thousands)
Fiscal years ended October 31 2009 2008 2007
New Accounting Pronouncements
Weighted-average number of shares of
In June 2009, the Financial Accounting Standards Board (FASB)
common stock 35,784 37,730 40,661
Assumed issuance of contingent shares 4 621 issued Statement of Financial Accounting Standards (SFAS)
No. 168, ‘‘The FASB Accounting Standards Codification姠 and the
Weighted-average number of shares of
common stock and assumed issuance of Hierarchy of Generally Accepted Accounting Principles, a replace-
contingent shares 35,788 37,736 40,682 ment of FASB Statement No. 162’’ (the Codification). The Codifica-
DILUTED tion, which was launched on July 1, 2009, became the single
source of authoritative nongovernmental U.S. GAAP, superseding
(Shares in thousands)
Fiscal years ended October 31 2009 2008 2007 existing FASB, American Institute of Certified Public Accountants
(AICPA), Emerging Issues Task Force (EITF) and related literature.
Weighted-average number of shares of
common stock and assumed issuance of The Codification eliminates the GAAP hierarchy contained in SFAS
contingent shares 35,788 37,736 40,682 No. 162 and establishes one level of authoritative GAAP. All other
Effect of dilutive securities 452 843 1,182 literature is considered non-authoritative. The company adopted
Weighted-average number of shares of this Statement for its fiscal year ending October 31, 2009, as
common stock, assumed issuance of required. There was no change to the company’s consolidated
contingent and restricted shares, and effect financial statements due to the implementation of this Statement.
of dilutive securities 36,240 38,579 41,864 In May 2009, the FASB issued SFAS No. 165, ‘‘Subsequent
Options to purchase an aggregate of 1,406,871 and 763,802 Events.’’ This Statement sets forth: (i) the period after the balance
shares of common stock outstanding during fiscal 2009 and 2008,
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