Black & Decker 2013 Annual Report Download - page 36
Download and view the complete annual report
Please find page 36 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.
.ZLNVHW:HLVHU%DOGZLQ6WDQOH\1DWLRQDODQG3ILVWHUEUDQGV7KHPDMRULW\RIWKH++,EXVLQHVVZDVSDUWRIWKH&RPSDQ\V
6HFXULW\VHJPHQWZKLOHWKHUHPDLQGHUZDVSDUWRIWKH&RPSDQ\V&',<VHJPHQW7KHGLYHVWLWXUHRIWKH++,EXVLQHVVLVSDUWRI
WKHFRQWLQXHGGLYHUVLILFDWLRQRIWKH&RPSDQ\VUHYHQXHVWUHDPVDQGJHRJUDSKLFIRRWSULQWFRQVLVWHQWZLWKWKH&RPSDQ\V
VWUDWHJLFIUDPHZRUN
7KHSXUFKDVHDQGVDOHDJUHHPHQWVWLSXODWHGWKDWWKHVDOHRFFXULQD)LUVWDQG6HFRQG&ORVLQJIRUDSSUR[LPDWHO\ELOOLRQDQG
DSSUR[LPDWHO\PLOOLRQUHVSHFWLYHO\7KH)LUVW&ORVLQJZKLFKH[FOXGHGWKHUHVLGHQWLDOSRUWLRQRIWKH7RQJ/XQJEXVLQHVV
RFFXUUHGRQ'HFHPEHU7KH6HFRQG&ORVLQJUHODWLQJWRWKHUHVLGHQWLDOSRUWLRQRIWKH7RQJ/XQJEXVLQHVVRFFXUUHG
RQ$SULO7KHRSHUDWLQJUHVXOWVRI++,DVZHOODVWKHUHVLGHQWLDOSRUWLRQRI7RQJ/XQJKDYHEHHQUHSRUWHGDV
GLVFRQWLQXHGRSHUDWLRQVLQWKH&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
'XULQJWKH&RPSDQ\FRPSOHWHGWKHLQFRPHWD[UHWXUQILOLQJVZKLFKLQFOXGHGWKHILQDOFDOFXODWLRQVRIWKHWD[JDLQ
RQ++,VDOHZKLFKWRRNSODFHLQ$VDUHVXOWRIWKHVHWD[UHWXUQILOLQJVWKH&RPSDQ\UHFRUGHGDQLQFRPHWD[EHQHILWRI
DSSUR[LPDWHO\PLOOLRQZLWKLQGLVFRQWLQXHGRSHUDWLRQVUHODWHGWRILQDOL]DWLRQRIWKHWD[DEOHJDLQRQWKH++,VDOH&KDQJHV
WRWKHRULJLQDOWD[JDLQZHUHGULYHQSULPDULO\E\WKHGHWHUPLQDWLRQRIWKHILQDOSXUFKDVHSULFHDOORFDWLRQDQGWKHILQDOL]DWLRQRI
WKH86WD[EDVLVFDOFXODWLRQERWKRIZKLFKZHUHILQDOL]HGGXULQJWKH\HDU
7KHQHWSURFHHGVIURPWKLVGLYHVWLWXUHZHUHXVHGWRUHSXUFKDVHPLOOLRQRIWKH&RPSDQ\VFRPPRQVWRFNDQGIRUGHEW
UHGXFWLRQWRHQVXUHWKH&RPSDQ\VOHYHUDJHUDWLRVUHPDLQLQLWVWDUJHWUDQJH7KH&RPSDQ\XVHGH[LVWLQJVRXUFHVRIOLTXLGLW\WR
IXQGWKH,QIDVWHFKDFTXLVLWLRQGHVFULEHGDERYH
5HIHUWR1RWH($FTXLVLWLRQVDQG1RWH7'LVFRQWLQXHG2SHUDWLRQVIRUIXUWKHUGLVFXVVLRQRIWKH&RPSDQ\VDFTXLVLWLRQVDQG
GLYHVWLWXUHV
'ULYLQJ)XUWKHU3URILWDEOH*URZWK:LWKLQ([LVWLQJ3ODWIRUPV
:KLOHGLYHUVLI\LQJWKHEXVLQHVVSRUWIROLRWKURXJKH[SDQVLRQLQWKH&RPSDQ\¶VVSHFLILHGJURZWKSODWIRUPVLVLPSRUWDQW
PDQDJHPHQWUHFRJQL]HVWKDWWKHEUDQGHGWRRODQGVWRUDJHSURGXFWRIIHULQJVLQWKH&',<DQG,QGXVWULDOVHJPHQWEXVLQHVVHVDUH
LPSRUWDQWIRXQGDWLRQVRIWKH&RPSDQ\WKDWFRQWLQXHWRSURYLGHVWURQJFDVKIORZDQGJURZWKSURVSHFWV0DQDJHPHQWLV
FRPPLWWHGWRJURZLQJWKHVHEXVLQHVVHVWKURXJKLQQRYDWLYHSURGXFWGHYHORSPHQWDVHYLGHQFHGE\&',<VVXFFHVVZLWKWKHILUVW
HYHUEDWWHU\SRZHUHGIUDPLQJQDLOHUXQGHUWKH'(:$/7EUDQGWKH%/$&.'(&.(56WHDP0RSDQGWKH67$1/(<)DW0D[
$XWRORFN7DSH0HDVXUH%UDQGVXSSRUWFRQWLQXHGLQYHVWPHQWLQHPHUJLQJPDUNHWVDQGDVKDUSIRFXVRQJOREDOFRVW
FRPSHWLWLYHQHVVDUHDOOH[SHFWHGWRIRVWHUYLWDOLW\RYHUWKHORQJWHUP7KH&RPSDQ\¶V,$5EXVLQHVVZLWKLQWKH,QGXVWULDO
VHJPHQWFRQWLQXHVWRUHDSEHQHILWVIURPLWVYHUWLFDOLQWHJUDWLRQRIKDQGDQGSRZHUWRROVXVHGIRULQGXVWULDODQGDXWRPRWLYH
UHSDLUSXUSRVHVDVZHOODVDGYDQFHGLQGXVWULDOVWRUDJHVROXWLRQV
&RQWLQXLQJWR,QYHVWLQWKH6WDQOH\%ODFN'HFNHU%UDQGV
7KH&RPSDQ\KDVDVWURQJSRUWIROLRRIEUDQGVDVVRFLDWHGZLWKKLJKTXDOLW\SURGXFWVLQFOXGLQJ67$1/(<%/$&.
'(&.(5'(:$/73RUWHU&DEOH%RVWLWFK3URWR0$&)DFRP$HUR6FRXW3RZHUV/,67$
6,'&+520(9LGPDU621,752/DQG*47KH67$1/(<%/$&.'(&.(5DQG'(:$/7EUDQGVDUH
UHFRJQL]HGDVWKUHHRIWKHZRUOGVJUHDWEUDQGVDQGDUHDPRQJVWWKH&RPSDQ\VPRVWYDOXDEOHDVVHWV6XVWDLQHGEUDQGVXSSRUW
KDV\LHOGHGDVWHDG\LPSURYHPHQWDFURVVWKHVSHFWUXPRIOHJDF\6WDQOH\EUDQGDZDUHQHVVPHDVXUHVQRWDEO\DFOLPELQXQDLGHG
6WDQOH\KDQGWRROEUDQGDZDUHQHVVIURPLQWRLQ'XULQJ6WDQOH\DQG'(:$/7KDGSURPLQHQW
VLJQDJHDWPDMRUOHDJXHEDVHEDOOVWDGLXPVRURIDOO0DMRU/HDJXH%DVHEDOOJDPHV7KH&RPSDQ\KDVDOVRPDLQWDLQHG
ORQJVWDQGLQJ1$6&$5UDFLQJVSRQVRUVKLSVZKLFKSURYLGHGEUDQGH[SRVXUHLQRYHUUDFHZHHNHQGVLQ7KH&RPSDQ\
LVLQ\HDUVL[RIDWHQ\HDUDOOLDQFHDJUHHPHQWZLWKWKH:DOW'LVQH\:RUOG5HVRUWZKHUHE\67$1/(<ORJRVDUHGLVSOD\HG
RQFRQVWUXFWLRQZDOOVWKURXJKRXWWKHWKHPHSDUNVDQG67$1/(<0$&3URWRDQG9LGPDUEUDQGORJRVDQGRU
SURGXFWVDUHIHDWXUHGLQYDULRXVDWWUDFWLRQVZKHUHWKH\ZLOOEHVHHQE\PLOOLRQVRIYLVLWRUVHDFK\HDU$GGLWLRQDOO\6WDQOH\LV
³7KH2IILFLDO7RRO3URYLGHURIWKH:DOW'LVQH\:RUOG5HVRUW´,QWKH&RPSDQ\DOVREHJDQDGYHUWLVLQJLQWKH(QJOLVK
3UHPLHU/HDJXHZKLFKLVWKHQXPEHURQHVRFFHUOHDJXHLQWKHZRUOGZDWFKHGZHHNO\E\PLOOLRQSHRSOH)URPWKH
EHJLQQLQJRIWKURXJKWKHHQGRIWKH&RPSDQ\DGYHUWLVHGLQDSSUR[LPDWHO\WHOHYLVHGHYHQWV6WDUWLQJLQ
WKH&RPSDQ\EHFDPHDVSRQVRURIWKH/LYHUSRRO)RRWEDOO&OXEDQGWKH)XOKDP)RRWEDOO&OXELQFOXGLQJSOD\HUULJKWV
KRVSLWDOLW\DVVHWVDQGVWDGLXPVLJQDJH7KH&RPSDQ\DGYHUWLVHVLQWHOHYLVHG3URIHVVLRQDO%XOO5LGHUVHYHQWVLQWKH86DQG
%UD]LODQGVSRQVRUVILYHULGHUV$GGLWLRQDOO\WKH&RPSDQ\VSRQVRUVDWHDPDQGWZRULGHUVLQ0RWR*3WKHZRUOGVSUHPLHUH
PRWRUF\FOHUDFLQJVHULHVDQGKDVHQWHUHGDSDUWQHUVKLSZLWKWKH&KLQHVH%DVNHWEDOO$VVRFLDWLRQ&%$7KH&RPSDQ\ZLOO
FRQWLQXHWRDOORFDWHLWVEUDQGDQGDGYHUWLVLQJVSHQGZLVHO\JHQHUDWLQJPRUHWKDQELOOLRQEUDQGLPSUHVVLRQVDQQXDOO\