Toro 2014 Annual Report Download - page 12

Kingdom. Models differ as to cutting width, type of starter mecha- enhancements to our single-stage snow thrower models, such as a
nism, method of grass clipping discharge, deck type, operational Toro Premium engine, extended life paddles, and a heavy-duty
controls, and power sources, and are either self-propelled or push drive belt. Our two-stage snow throwers are generally designed for
mowers. We also offer a line of rear-roller walk power mowers, a relatively large areas of deep and heavy snow. Our two-stage
design that provides a striped finish, for the United Kingdom mar- snow throwers include a line of models featuring our patented Anti-
ket. In fiscal 2014, we introduced the new Toro Recycler with Clogging System and Quick Stick chute control technology. Our
SmartStow that allows the mower to be stored vertically, thereby electric snow throwers are lightweight and ideal for clearing up to
reducing space needed for storage. The new Toro Recycler also 6 inches of snow from decks, steps, sidewalks, and small
features variable speed self propel with front wheel drive that is driveways.
designed to easily maneuver in tight spaces. In addition, in fiscal
2014, we launched a line of Lawn-Boy 21 walk power mowers Financial Information about International Operations
that are sold at The Home Depot. and Business Segments
We currently manufacture our products in the United States
Riding Products. We manufacture and market riding products (‘‘U.S.’’), Mexico, Australia, the United Kingdom, Italy, Romania,
under the Toro brand name. Riding products primarily consist of and China for sale throughout the world. We maintain sales offices
zero-turn radius mowers that are designed to save homeowners in the United States, Belgium, the United Kingdom, Australia, Sin-
time by using superior maneuverability to cut around obstacles gapore, Japan, China, Italy, Korea, and Germany. New product
more quickly and easily than tractor technology. Our TimeCut- development is pursued primarily in the United States. Our net
ter SS zero-turn radius mowers are equipped with our Smart sales outside the U.S. were 28.7 percent, 30.1 percent, and
Speed control system, which is designed to allow the operator to 30.3 percent of total consolidated net sales for fiscal 2014, 2013,
choose different ground speed ranges with the flip of a lever with- and 2012, respectively.
out changing the blade or engine speed. We also sell direct-collect A portion of our cash flow is derived from sales and purchases
riding mowers that are manufactured and sold in the European denominated in foreign currencies. To reduce the uncertainty of
market. Many models of our riding products are available with a foreign currency exchange rate movements on these sales and
variety of engines, decks, transmissions, and accessories. In fiscal purchase commitments, we enter into foreign currency exchange
2014, we redesigned our TITAN line of zero-turn mowers that contracts for select transactions. For additional information regard-
combine features similar to those found on our commercial line of ing our foreign currency exchange contracts, see Part II, Item 7A,
zero-turn mowers, such as a heavy-duty frame and commercial- ‘‘Quantitative and Qualitative Disclosures about Market Risk’’ of
grade transmission, with the user-friendly features akin to our resi- this report. For additional financial information regarding our inter-
dential zero-turn mowers, such as the contoured 18 extra tall seat national operations and geographical areas, and each of our three
with armrests. reportable business segments, see Note 12 of the Notes to Con-
Home Solutions Products. We design and market home solu- solidated Financial Statements, in the section entitled ‘‘Segment
tions products under the Toro and Pope brand names, including Data,’’ included in Part II, Item 8, ‘‘Financial Statements and Sup-
electric, gas, and cordless grass trimmers; electric and cordless plementary Data’’ of this report.
hedge trimmers; and electric, gas, and cordless blower-vacuums.
In Australia, we also design and market underground and hose- Engineering and Research
end retail irrigation products under the Pope brand name. In fiscal We are committed to an ongoing engineering program dedicated to
2014, we introduced a lithium-ion battery-powered 48V Max 13developing innovative new products and improvements in the qual-
dual-line string trimmer that features variable speed control for ity and performance of existing products. However, a focus on
multiple applications and performance without the hassle or main- innovation also carries certain risks that new technology could be
tenance of a gas-powered engine. slow to be accepted or not accepted by the marketplace. We
attempt to mitigate these risks through our focus on and commit-
Snow Thrower Products. We manufacture and market a range ment to understanding our customers’ needs and requirements.
of gas-powered single-stage and two-stage snow thrower models, We invest time upfront with customers, using ‘‘Voice of the Cus-
as well as a range of electric snow thrower models. Single-stage tomer’’ tools, to help us develop innovative products that are
snow throwers are walk behind units with lightweight four-cycle intended to meet or exceed customer expectations. We use
gasoline engines. Most single-stage snow thrower models include Design for Manufacturing and Assembly (‘‘DFM/A’’) tools to ensure
Power Curve snow thrower technology, and some feature our early manufacturing involvement in new product designs intended
Quick Shoot control system that is designed to enable operators to reduce production costs. DFM/A focuses on reducing the num-
to quickly change snow-throwing direction. Our pivoting scraper is ber of parts required to assemble new products, as well as design-
designed to keep the rotor in constant contact with the pavement. ing products to move more efficiently through the manufacturing
In fiscal 2014, we made a number of performance-improving
6