Toro 2011 Annual Report Download - page 9

PART I
targeted acquisitions using a disciplined approach that adds value
ITEM 1. BUSINESS
while considering our existing brands and product portfolio.
Our purpose is to help our customers enrich the beauty, produc-
Introduction
tivity, and sustainability of the land. Our mission is to be the lead-
The Toro Company was incorporated in Minnesota in 1935 as a
ing worldwide provider of outdoor landscaping products, support
successor to a business founded in 1914 and reincorporated in Del-
services, and integrated systems that help customers preserve and
aware in 1983. Unless the context indicates otherwise, the terms
beautify their outdoor landscapes with environmentally responsible
‘‘company,’’ ‘‘Toro,’’ ‘‘we,’’ ‘‘us,’’ and ‘‘our’’ refer to The Toro Com-
solutions of customer-valued quality and innovation.
pany and its consolidated subsidiaries. Our executive offices are
located at 8111 Lyndale Avenue South, Bloomington, Minnesota,
Products by Market
55420-1196, telephone number [phone]. Our web site for
We strive to be a leader in adapting advanced technologies to
corporate and investor information is www.thetorocompany.com,
products and services that provide solutions for landscapes, agri-
which also contains links to our branded product sites. The informa-
cultural fields, turf care maintenance, and residential demands. The
tion contained on our web sites or connected to our web sites is not
following is a summary of our products, by market, for the profes-
incorporated by reference into this Annual Report on Form 10-K and
sional segment and our products for the residential segment:
should not be considered part of this report.
We design, manufacture, and market professional turf mainte- Professional – We design professional turf, landscape, and agri-
nance equipment and services, turf irrigation systems, agricultural cultural products and market them worldwide through a network of
micro-irrigation systems, landscaping equipment and lighting, and distributors and dealers as well as directly to government custom-
residential yard and snow removal products. We produced our first ers, rental companies, and large retailers. These channel partners
mower for golf course use in 1921 when we mounted five reel then sell our products to professional users engaged in creating
mowers on a Toro tractor, and we introduced our first lawn mower and renovating landscapes, irrigating turf and agricultural fields,
for residential use in 1935. We have continued to enhance our and maintaining turf, such as golf courses, sports fields, municipal
product lines ever since. We classify our operations into three properties, and residential and commercial landscapes.
reportable business segments: Professional, Residential, and Dis-
Landscape Contractor Market. Products for the landscape con-
tribution. Our Distribution segment, which consists of our company-
tractor market include zero-turn radius riding mowers, heavy-duty
owned domestic distributorships, has been combined with our cor-
walk behind mowers, mid-size walk behind mowers, stand-on
porate activities and is shown as ‘‘Other.’’ Net sales of our three
mowers, turf cultivation equipment, compact utility loaders,
reportable segments accounted for the following percentages of
walk-behind trenchers, and stump grinders. These products are
our consolidated net sales for fiscal 2011: Professional, 66 per-
sold through dealers and are available through rental centers to
cent; Residential, 33 percent; and Other, 1 percent.
individuals and companies who maintain, create, and renovate res-
Our products are advertised and sold at the retail level under the
idential and commercial landscapes on behalf of property owners.
primary trademarks of Toro姞, Exmark姞, Irritrol姞, Hayter姞, Pope姞,
We market products to landscape contractors under the Toro and
Lawn-Boy姞, and Lawn Genie姞, most of which are registered in the
Exmark brands. In fiscal 2011, we introduced the new Z Master姞
United States and/or in the primary foreign countries where we
G3 Commercial Series mower, featuring our exclusive TURBO
market such products. This report also contains trademarks, trade
FORCE姞 cutting decks, unitized pump, and wheel motors for pro-
names, and service marks that are owned by other persons or
fessional results and dependability. We also introduced the new
entities, such as The Home Depot.
Exmark Pioneer姞 E-Series and S-Series mowers, featuring a pat-
We emphasize quality and innovation in our products, customer
ented cutting deck design yielding professional results and improv-
service, manufacturing, and marketing. We strive to provide
ing cutting efficiency, and the new Exmark Quest姞 mower, which is
well-built, dependable products supported by an extensive service
engineered using many of the same elements and features we use
network. We have committed funding for research, development,
in our commercial-grade mowers and features a hydrostatic drive
and engineering in order to improve existing products and develop
system and zero-turn radius technology.
new products. Through these efforts, we seek to be responsive to
Our compact utility loaders are the cornerstone products for our
trends that may affect our target markets now and in the future. A
Toro Sitework Systems business, which are designed to improve
significant portion of our revenue historically has been, and we
efficiency in the creation and renovation of landscapes. We offer
expect it to continue to be, attributable to new and enhanced prod-
over 35 attachments for our compact utility loaders, including
ucts. We define new products as those introduced in the current
trenchers, augers, vibratory plows, and backhoes. In fiscal 2011,
and previous two fiscal years. We plan to continue to pursue
we acquired a line of turf renovation equipment, including aerators,
3