Black & Decker 2010 Annual Report Download - page 118

Download and view the complete annual report

Please find page 118 of the 2010 Black & Decker annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 168

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168

as production activities are phased out as well as auction values (prices for similar assets) for assets where use
has been discontinued or future cash flows are minimal.
A summary of the Company’s financial instruments carrying and fair values at January 1, 2011 and January 2,
2010 follows. Refer to Note I, Derivative Financial Instruments for more details regarding derivative financial
instruments, and Note H, Long-Term Debt and Financing Arrangements for more information regarding
carrying values of the Long-term debt shown below.
(millions of dollars), (asset)/liability
Carrying
Value
Fair
Value
Carrying
Value
Fair
Value
2010 2009
Long-term debt, including current portion . . . ............. $3,434.2 $3,607.1 $1,292.7 $1,282.3
Derivative assets ................................... $ (55.0) $ (55.0) $ (33.3) $ (33.3)
Derivative liabilities ................................ $ 115.7 $ 115.7 $ 84.7 $ 84.7
The fair values of Long-term debt instruments are estimated using a discounted cash flow analysis, based on
the Company’s marginal borrowing rates. The fair values of foreign currency and interest rate swap
agreements, comprising the derivative assets and liabilities in the table above, are based on current settlement
values.
As discussed in Note B, Accounts and Financing Receivable, the Company has a deferred purchase price
receivable related to sales of trade receivables. The deferred purchase price receivable will be repaid in cash as
receivables are collected, generally within 30 days, and as such the carrying value of the receivable
approximates fair value.
N. OTHER COSTS AND EXPENSES
Other-net is primarily comprised of intangible asset amortization expense (See Note F Goodwill and Other
Intangible Assets for further discussion), currency impact, environmental expense and merger and
acquisition-related charges primarily consisting of transaction costs, partially offset by pension curtailments
and settlements.
Research and development costs, which are classified in SG&A, were $131.4 million, $18.3 million and
$25.4 million for fiscal years 2010, 2009 and 2008, respectively.
105