Toro 2009 Annual Report Download - page 56

sheet date during which management of a reporting entity should recorded in the financial statements and for how much, provides
evaluate events or transactions that may occur for potential recog- guidance on recording interest and penalties, and prescribes
nition or disclosure in the financial statements; (ii) the circum- accounting and reporting for income taxes in interim periods. The
stances under which an entity should recognize events or transac- company adopted FIN 48 as of November 1, 2007, as required.
tions occurring after the balance sheet date in its financial The adoption of FIN 48 had no material impact on the company’s
statements; and (iii) the disclosures that an entity should make consolidated financial position or results of operations for fiscal
about events or transactions that occurred after the balance sheet 2008.
date. The company adopted this Statement in the third fiscal quar-
ter ended July 31, 2009, as required. This Statement did not
impact the company’s consolidated financial results. 2ACQUISITIONS AND DIVESTITURE
In October 2006, the FASB issued SFAS No. 158, ‘‘Employers’
Accounting for Defined Benefit Pension and Other Postretirement On October 13, 2009, the company completed the purchase of
Plans.’’ SFAS No. 158 requires employers to recognize on their certain assets and assumed certain liabilities for Ty-Crop Manufac-
balance sheets the funded status of pension and other postretire- turing Ltd., a leading manufacturer of topdressing and material
ment benefit plans. In addition, employers will recognize, as a handling equipment for golf course and sports fields applications.
component of other comprehensive income, changes in the funded The acquisition of Ty-Crop’s top dressing and material handling
status of pension and other postretirement benefit plans, such as equipment enhances Toro’s product offering of application and cul-
actuarial gains and losses and prior service costs that arise during tivation equipment to help customer’s achieve improved agronomic
the year but are not recognized as components of net periodic conditions of turf. The purchase price was $7,900, with $6,400
benefit cost. SFAS No. 158 requires the measurement date of plan paid in cash and $1,500 in a long-term note.
assets and benefit obligations to be as of the end of the On October 10, 2008, the company completed the purchase of
employer’s fiscal year. The company adopted the provisions of certain assets and assumed certain liabilities of Southern
SFAS No. 158, which require the funded status of pension and Green, Inc., a leading manufacturer of deep-tine aeration equip-
other postretirement benefit plans to be recorded on the balance ment. The acquisition of Southern Green’s versatile line of Soil
sheet as of October 31, 2007, as required, and the company Reliever姞 aerators increased Toro’s offering of highly-productive
adopted the provisions that require the measurement date of plan turf cultivation equipment and provided entry into a new product
assets and benefit obligations to be the same as its fiscal year end category for its golf course and sports field markets. The purchase
as of October 31, 2009, as required. The effect of adopting the price was $4,900, with $3,430 paid in cash and $1,470 in a
measurement date of plan assets and benefit obligations to be the long-term note.
same as its fiscal year end had no material impact on the com- On December 6, 2007, the company completed the purchase of
pany’s consolidated financial position or results of operations for Turf Guard wireless monitoring technology from JLH Labs, LLC, a
fiscal 2009. leader in wireless soil monitoring technology. The Turf Guard sys-
In September 2006, the FASB issued SFAS No. 157, ‘‘Fair tem is designed to measure soil moisture, salinity, and temperature
Value Measurements.’’ SFAS No. 157 defines fair value, estab- through buried wireless sensors that communicate data to an
lishes a framework for measuring fair value, and expands disclo- internet server for processing and presentation to a user through
sures concerning fair value. The company adopted the provisions the web. The purchase price was $2,660, with $1,000 paid in cash
of SFAS No. 157 for financial assets and liabilities and nonfinancial and $1,660 in a long-term note. In accordance with the terms of
assets and liabilities measured at fair value on a recurring basis the asset purchase agreement, the company may be obligated to
during the first quarter of fiscal 2009, as required. The company make earn-out payments to JLH Labs, LLC over the five-year
also adopted the provisions of SFAS No. 157 for nonfinancial period ending October 31, 2012 based on the financial results of
assets and liabilities that are not required or permitted to be mea- Turf Guard systems.
sured on a recurring basis during the first quarter of fiscal 2010, as During the first quarter of fiscal 2008, the company completed
required. The adoption of this statement had no material impact on the sale of a portion of the operations of one of its company-
the company’s financial position or results of operations for fiscal owned distributorships.
2009. On August 16, 2007, the company completed the acquisition of
In June 2006, the Financial Accounting Standards Board (FASB) Rain Master Irrigation Systems, Inc., a manufacturer of irrigation
issued Interpretation No. 48, ‘‘Accounting for Uncertainty in Income central controllers and other products for the commercial land-
Taxes’’ (FIN 48). FIN 48 clarifies the accounting for uncertainty in scape market. The purchase price was $17,882, with $11,882 paid
income taxes recognized in a company’s financial statements in in cash and $6,000 in long-term notes.
accordance with FASB Statement No. 109, ‘‘Accounting for Income On January 19, 2007, the company completed the purchase of
Taxes.’’ FIN 48 describes when an uncertain tax item should be certain assets and assumed certain liabilities of Allen Hover
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