Black & Decker 2013 Annual Report Download - page 24
Download and view the complete annual report
Please find page 24 of the 2013 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.
7KH&RPSDQ\¶VEXVLQHVVLVVXEMHFWWRULVNVDVVRFLDWHGZLWKVRXUFLQJDQGPDQXIDFWXULQJRYHUVHDV
7KH&RPSDQ\LPSRUWVODUJHTXDQWLWLHVRIILQLVKHGJRRGVFRPSRQHQWSDUWVDQGUDZPDWHULDOV6XEVWDQWLDOO\DOORILWVLPSRUW
RSHUDWLRQVDUHVXEMHFWWRFXVWRPVUHTXLUHPHQWVDQGWRWDULIIVDQGTXRWDVVHWE\JRYHUQPHQWVWKURXJKPXWXDODJUHHPHQWV
ELODWHUDODFWLRQVRULQVRPHFDVHVXQLODWHUDODFWLRQ,QDGGLWLRQWKHFRXQWULHVLQZKLFKWKH&RPSDQ\¶VSURGXFWVDQGPDWHULDOV
DUHPDQXIDFWXUHGRULPSRUWHGPD\IURPWLPHWRWLPHLPSRVHDGGLWLRQDOTXRWDVGXWLHVWDULIIVRURWKHUUHVWULFWLRQVRQLWVLPSRUWV
LQFOXGLQJUHVWULFWLRQVRQPDQXIDFWXULQJRSHUDWLRQVRUDGYHUVHO\PRGLI\H[LVWLQJUHVWULFWLRQV,PSRUWVDUHDOVRVXEMHFWWR
XQSUHGLFWDEOHIRUHLJQFXUUHQF\YDULDWLRQZKLFKPD\LQFUHDVHWKH&RPSDQ\¶VFRVWRIJRRGVVROG$GYHUVHFKDQJHVLQWKHVH
LPSRUWFRVWVDQGUHVWULFWLRQVRUWKH&RPSDQ\¶VVXSSOLHUV¶IDLOXUHWRFRPSO\ZLWKFXVWRPVUHJXODWLRQVRUVLPLODUODZVFRXOG
KDUPWKH&RPSDQ\¶VEXVLQHVV
7KH&RPSDQ\¶VRSHUDWLRQVDUHDOVRVXEMHFWWRWKHHIIHFWVRILQWHUQDWLRQDOWUDGHDJUHHPHQWVDQGUHJXODWLRQVVXFKDVWKH1RUWK
$PHULFDQ)UHH7UDGH$JUHHPHQWDQGWKHDFWLYLWLHVDQGUHJXODWLRQVRIWKH:RUOG7UDGH2UJDQL]DWLRQ$OWKRXJKWKHVHWUDGH
DJUHHPHQWVJHQHUDOO\KDYHSRVLWLYHHIIHFWVRQWUDGHOLEHUDOL]DWLRQVRXUFLQJIOH[LELOLW\DQGFRVWRIJRRGVE\UHGXFLQJRU
HOLPLQDWLQJWKHGXWLHVDQGRUTXRWDVDVVHVVHGRQSURGXFWVPDQXIDFWXUHGLQDSDUWLFXODUFRXQWU\WUDGHDJUHHPHQWVFDQDOVR
LPSRVHUHTXLUHPHQWVWKDWDGYHUVHO\DIIHFWWKH&RPSDQ\¶VEXVLQHVVVXFKDVVHWWLQJTXRWDVRQSURGXFWVWKDWPD\EHLPSRUWHG
IURPDSDUWLFXODUFRXQWU\LQWRNH\PDUNHWVLQFOXGLQJWKH86RUWKH(XURSHDQ8QLRQRUPDNLQJLWHDVLHUIRURWKHUFRPSDQLHVWR
FRPSHWHE\HOLPLQDWLQJUHVWULFWLRQVRQSURGXFWVIURPFRXQWULHVZKHUHWKH&RPSDQ\¶VFRPSHWLWRUVVRXUFHSURGXFWV
7KH&RPSDQ\¶VDELOLW\WRLPSRUWSURGXFWVLQDWLPHO\DQGFRVWHIIHFWLYHPDQQHUPD\DOVREHDIIHFWHGE\FRQGLWLRQVDWSRUWVRU
LVVXHVWKDWRWKHUZLVHDIIHFWWUDQVSRUWDWLRQDQGZDUHKRXVLQJSURYLGHUVVXFKDVSRUWDQGVKLSSLQJFDSDFLW\ODERUGLVSXWHVVHYHUH
ZHDWKHURULQFUHDVHGKRPHODQGVHFXULW\UHTXLUHPHQWVLQWKH86DQGRWKHUFRXQWULHV7KHVHLVVXHVFRXOGGHOD\LPSRUWDWLRQRI
SURGXFWVRUUHTXLUHWKH&RPSDQ\WRORFDWHDOWHUQDWLYHSRUWVRUZDUHKRXVLQJSURYLGHUVWRDYRLGGLVUXSWLRQWRFXVWRPHUV7KHVH
DOWHUQDWLYHVPD\QRWEHDYDLODEOHRQVKRUWQRWLFHRUFRXOGUHVXOWLQKLJKHUWUDQVLWFRVWVZKLFKFRXOGKDYHDQDGYHUVHLPSDFWRQ
WKH&RPSDQ\¶VEXVLQHVVDQGILQDQFLDOFRQGLWLRQ
7KH&RPSDQ\¶VVXFFHVVGHSHQGVRQLWVDELOLW\WRLPSURYHSURGXFWLYLW\DQGVWUHDPOLQHRSHUDWLRQVWRFRQWURORUUHGXFHFRVWV
7KH&RPSDQ\LVFRPPLWWHGWRFRQWLQXRXVSURGXFWLYLW\LPSURYHPHQWDQGHYDOXDWLQJRSSRUWXQLWLHVWRUHGXFHIL[HGFRVWV
VLPSOLI\RULPSURYHSURFHVVHVDQGHOLPLQDWHH[FHVVFDSDFLW\7KH&RPSDQ\KDVXQGHUWDNHQUHVWUXFWXULQJDFWLRQVWKHVDYLQJV
RIZKLFKPD\EHPLWLJDWHGE\PDQ\IDFWRUVLQFOXGLQJHFRQRPLFZHDNQHVVFRPSHWLWLYHSUHVVXUHVDQGGHFLVLRQVWRLQFUHDVH
FRVWVLQDUHDVVXFKDVVDOHVSURPRWLRQRUUHVHDUFKDQGGHYHORSPHQWDERYHOHYHOVWKDWZHUHRWKHUZLVHDVVXPHG)DLOXUHWR
DFKLHYHRUGHOD\VLQDFKLHYLQJSURMHFWHGOHYHOVRIHIILFLHQFLHVDQGFRVWVDYLQJVIURPVXFKPHDVXUHVRUXQDQWLFLSDWHG
LQHIILFLHQFLHVUHVXOWLQJIURPPDQXIDFWXULQJDQGDGPLQLVWUDWLYHUHRUJDQL]DWLRQDFWLRQVLQSURJUHVVRUFRQWHPSODWHGZRXOG
DGYHUVHO\DIIHFWWKH&RPSDQ\¶VUHVXOWV
7KHSHUIRUPDQFHRIWKH&RPSDQ\PD\VXIIHUIURPEXVLQHVVGLVUXSWLRQVDVVRFLDWHGZLWKLQIRUPDWLRQWHFKQRORJ\V\VWHP
LPSOHPHQWDWLRQVRUFDWDVWURSKLFORVVHVDIIHFWLQJGLVWULEXWLRQFHQWHUVDQGRWKHULQIUDVWUXFWXUH
7KH&RPSDQ\UHOLHVKHDYLO\RQFRPSXWHUV\VWHPVWRPDQDJHDQGRSHUDWHLWVEXVLQHVVHVDQGUHFRUGDQGSURFHVVWUDQVDFWLRQV
&RPSXWHUV\VWHPVDUHLPSRUWDQWWRSURGXFWLRQSODQQLQJFXVWRPHUVHUYLFHDQGRUGHUIXOILOOPHQWDPRQJRWKHUEXVLQHVVFULWLFDO
SURFHVVHV&RQVLVWHQWDQGHIILFLHQWRSHUDWLRQRIWKHFRPSXWHUKDUGZDUHDQGVRIWZDUHV\VWHPVLVLPSHUDWLYHWRWKHVXFFHVVIXO
VDOHVDQGHDUQLQJVSHUIRUPDQFHRIWKHYDULRXVEXVLQHVVHVLQPDQ\FRXQWULHV
'HVSLWHHIIRUWVWRSUHYHQWVXFKVLWXDWLRQVLQVXUDQFHSROLFLHVDQGORVVFRQWURODQGULVNPDQDJHPHQWSUDFWLFHVWKDWSDUWLDOO\
PLWLJDWHWKHVHULVNVWKH&RPSDQ\¶VV\VWHPVPD\EHDIIHFWHGE\GDPDJHRULQWHUUXSWLRQIURPDPRQJRWKHUFDXVHVSRZHU
RXWDJHVFRPSXWHUYLUXVHVRUVHFXULW\EUHDFKHV&RPSXWHUKDUGZDUHDQGVWRUDJHHTXLSPHQWWKDWLVLQWHJUDOWRHIILFLHQW
RSHUDWLRQVVXFKDVHPDLOWHOHSKRQHDQGRWKHUIXQFWLRQDOLW\LVFRQFHQWUDWHGLQFHUWDLQSK\VLFDOORFDWLRQVLQWKHYDULRXV
FRQWLQHQWVLQZKLFKWKH&RPSDQ\RSHUDWHV
,QDGGLWLRQWKH&RPSDQ\LVLQWKHSURFHVVRIV\VWHPFRQYHUVLRQVWR6$3DVZHOODVRWKHUDSSOLFDWLRQVWRSURYLGHDFRPPRQ
SODWIRUPDFURVVPRVWRILWVEXVLQHVVHV7KHUHFDQEHQRDVVXUDQFHVWKDWH[SHFWHGH[SHQVHV\QHUJLHVZLOOEHDFKLHYHGRUWKDW
WKHUHZLOOQRWEHGHOD\VWRWKHH[SHFWHGWLPLQJRIVXFKV\QHUJLHV,WLVSRVVLEOHWKHFRVWVWRFRPSOHWHWKHV\VWHPFRQYHUVLRQV
PD\H[FHHGFXUUHQWH[SHFWDWLRQVDQGWKDWVLJQLILFDQWFRVWVPD\EHLQFXUUHGWKDWZLOOUHTXLUHLPPHGLDWHH[SHQVHUHFRJQLWLRQDV
RSSRVHGWRFDSLWDOL]DWLRQ7KHULVNRIGLVUXSWLRQWRNH\RSHUDWLRQVLVLQFUHDVHGZKHQFRPSOH[V\VWHPFKDQJHVVXFKDVWKH6$3
FRQYHUVLRQVDUHXQGHUWDNHQ,IV\VWHPVIDLOWRIXQFWLRQHIIHFWLYHO\RUEHFRPHGDPDJHGRSHUDWLRQDOGHOD\VPD\HQVXHDQGWKH
&RPSDQ\PD\EHIRUFHGWRPDNHVLJQLILFDQWH[SHQGLWXUHVWRUHPHG\VXFKLVVXHV$Q\VLJQLILFDQWGLVUXSWLRQLQWKH&RPSDQ\¶V
FRPSXWHURSHUDWLRQVFRXOGKDYHDPDWHULDODGYHUVHLPSDFWRQLWVEXVLQHVVDQGUHVXOWV