Toro 2009 Annual Report Download - page 64

sold mainly through a network of distributors and dealers to profes- The following table shows summarized financial information con-
sional users engaged in maintaining golf courses, sports fields, cerning the company’s reportable segments:
municipal properties, agricultural fields, and residential and com-
Fiscal years ended
mercial landscapes, as well as directly to government customers October 31 Professional Residential Other Total
and rental companies.
2009
The residential segment consists of walk power mowers, riding Net sales $ 965,935 $532,707 $ 24,805 $1,523,447
mowers, snow throwers, replacement parts, and home solutions Intersegment gross
products, including trimmers, blowers, blower-vacuums, and under- sales 20,208 1,079 (21,287) –
Earnings (loss) before
ground and hose-end retail irrigation products sold in Australia.
income taxes 127,609 46,351 (78,172) 95,788
These products are sold to homeowners through a network of dis- Total assets 418,806 171,892 281,984 872,682
tributors and dealers, and through a broad array of home centers, Capital expenditures 25,871 7,531 4,537 37,939
hardware retailers, and mass retailers, as well as over the Internet. Depreciation and
‘‘Other’’ consists of the company’s distribution segment and cor- amortization 25,197 11,040 8,298 44,535
porate activities, including corporate financing activities and elimi- 2008
Net sales $1,304,101 $542,886 $ 31,197 $1,878,184
nation of intersegment revenues and expenses. Corporate activi-
Intersegment gross
ties include general corporate expenditures (finance, human sales 29,849 8,337 (38,186) –
resources, legal, information services, public relations, and similar Earnings (loss) before
activities) and other unallocated corporate assets and liabilities, income taxes 233,359 35,304 (87,374) 181,289
Total assets 460,241 187,371 284,648 932,260
such as corporate facilities, financing receivables, parts inventory,
Capital expenditures 35,140 8,948 4,826 48,914
and deferred tax assets. Depreciation and
The accounting policies of the segments are the same as those amortization 22,841 16,403 8,950 48,194
described in the summary of significant accounting policies in 2007
Note 1. The company evaluates the performance of its profes- Net sales $1,292,946 $541,108 $ 42,850 $1,876,904
sional and residential business segment results based on earnings Intersegment gross
sales 43,727 7,201 (50,928) –
from operations plus other (expense) income, net. Operating loss
Earnings (loss) before
for ‘‘Other’’ includes earnings (loss) from domestic wholly owned income taxes 253,096 42,910 (82,779) 213,227
distribution company operations, corporate activities, other income, Total assets 507,899 203,091 239,847 950,837
and interest expense. The business segment’s operating profits or Capital expenditures 26,921 8,458 6,789 42,168
Depreciation and
losses include direct costs incurred at the segment’s operating
amortization 21,186 11,476 9,443 42,105
level plus allocated expenses, such as profit sharing and manufac-
turing expenses. The allocated expenses represent costs that The following table presents the details of the other segment
these operations would have incurred otherwise but do not include operating loss before income taxes:
general corporate expenses, interest expense, and income taxes.
Fiscal years ended October 31 2009 2008 2007
The company accounts for intersegment gross sales at current
market prices. Corporate expenses $(70,802) $(77,297) $(86,655)
Interest expense (17,578) (19,333) (19,445)
Finance charge revenue 543 1,032 1,791
Elimination of corporate financing
expense 7,052 9,960 14,142
Other income (expense) 2,613 (1,736) 7,388
Total $(78,172) $(87,374) $(82,779)
The following table presents net sales for groups of similar prod-
ucts and services:
Fiscal years ended October 31 2009 2008 2007
Equipment $1,227,023 $1,511,230 $1,495,807
Irrigation 296,424 366,954 381,097
Total $1,523,447 $1,878,184 $1,876,904
Sales to one customer accounted for 14 percent of consolidated
net sales in fiscal 2009, 10 percent in fiscal 2008, and 12 percent
in fiscal 2007.
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