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.

Page out of 152

  • 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


.ZLNVHW:HLVHU%DOGZLQ6WDQOH\1DWLRQDODQG3ILVWHUEUDQGV7KHPDMRULW\RIWKH++,EXVLQHVVZDVSDUWRIWKH&RPSDQ\V
6HFXULW\VHJPHQWZKLOHWKHUHPDLQGHUZDVSDUWRIWKH&RPSDQ\V&',<VHJPHQW7KHGLYHVWLWXUHRIWKH++,EXVLQHVVLVSDUWRI
WKHFRQWLQXHGGLYHUVLILFDWLRQRIWKH&RPSDQ\VUHYHQXHVWUHDPVDQGJHRJUDSKLFIRRWSULQWFRQVLVWHQWZLWKWKH&RPSDQ\V
VWUDWHJLFIUDPHZRUN
7KHSXUFKDVHDQGVDOHDJUHHPHQWVWLSXODWHGWKDWWKHVDOHRFFXULQD)LUVWDQG6HFRQG&ORVLQJIRUDSSUR[LPDWHO\ELOOLRQDQG
DSSUR[LPDWHO\PLOOLRQUHVSHFWLYHO\7KH)LUVW&ORVLQJZKLFKH[FOXGHGWKHUHVLGHQWLDOSRUWLRQRIWKH7RQJ/XQJEXVLQHVV
RFFXUUHGRQ'HFHPEHU7KH6HFRQG&ORVLQJUHODWLQJWRWKHUHVLGHQWLDOSRUWLRQRIWKH7RQJ/XQJEXVLQHVVRFFXUUHG
RQ$SULO7KHRSHUDWLQJUHVXOWVRI++,DVZHOODVWKHUHVLGHQWLDOSRUWLRQRI7RQJ/XQJKDYHEHHQUHSRUWHGDV
GLVFRQWLQXHGRSHUDWLRQVLQWKH&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
'XULQJWKH&RPSDQ\FRPSOHWHGWKHLQFRPHWD[UHWXUQILOLQJVZKLFKLQFOXGHGWKHILQDOFDOFXODWLRQVRIWKHWD[JDLQ
RQ++,VDOHZKLFKWRRNSODFHLQ$VDUHVXOWRIWKHVHWD[UHWXUQILOLQJVWKH&RPSDQ\UHFRUGHGDQLQFRPHWD[EHQHILWRI
DSSUR[LPDWHO\PLOOLRQZLWKLQGLVFRQWLQXHGRSHUDWLRQVUHODWHGWRILQDOL]DWLRQRIWKHWD[DEOHJDLQRQWKH++,VDOH&KDQJHV
WRWKHRULJLQDOWD[JDLQZHUHGULYHQSULPDULO\E\WKHGHWHUPLQDWLRQRIWKHILQDOSXUFKDVHSULFHDOORFDWLRQDQGWKHILQDOL]DWLRQRI
WKH86WD[EDVLVFDOFXODWLRQERWKRIZKLFKZHUHILQDOL]HGGXULQJWKH\HDU
7KHQHWSURFHHGVIURPWKLVGLYHVWLWXUHZHUHXVHGWRUHSXUFKDVHPLOOLRQRIWKH&RPSDQ\VFRPPRQVWRFNDQGIRUGHEW
UHGXFWLRQWRHQVXUHWKH&RPSDQ\VOHYHUDJHUDWLRVUHPDLQLQLWVWDUJHWUDQJH7KH&RPSDQ\XVHGH[LVWLQJVRXUFHVRIOLTXLGLW\WR
IXQGWKH,QIDVWHFKDFTXLVLWLRQGHVFULEHGDERYH
5HIHUWR1RWH($FTXLVLWLRQVDQG1RWH7'LVFRQWLQXHG2SHUDWLRQVIRUIXUWKHUGLVFXVVLRQRIWKH&RPSDQ\VDFTXLVLWLRQVDQG
GLYHVWLWXUHV
'ULYLQJ)XUWKHU3URILWDEOH*URZWK:LWKLQ([LVWLQJ3ODWIRUPV
:KLOHGLYHUVLI\LQJWKHEXVLQHVVSRUWIROLRWKURXJKH[SDQVLRQLQWKH&RPSDQ\¶VVSHFLILHGJURZWKSODWIRUPVLVLPSRUWDQW
PDQDJHPHQWUHFRJQL]HVWKDWWKHEUDQGHGWRRODQGVWRUDJHSURGXFWRIIHULQJVLQWKH&',<DQG,QGXVWULDOVHJPHQWEXVLQHVVHVDUH
LPSRUWDQWIRXQGDWLRQVRIWKH&RPSDQ\WKDWFRQWLQXHWRSURYLGHVWURQJFDVKIORZDQGJURZWKSURVSHFWV0DQDJHPHQWLV
FRPPLWWHGWRJURZLQJWKHVHEXVLQHVVHVWKURXJKLQQRYDWLYHSURGXFWGHYHORSPHQWDVHYLGHQFHGE\&',<VVXFFHVVZLWKWKHILUVW
HYHUEDWWHU\SRZHUHGIUDPLQJQDLOHUXQGHUWKH'(:$/7EUDQGWKH%/$&.'(&.(56WHDP0RSDQGWKH67$1/(<)DW0D[
$XWRORFN7DSH0HDVXUH%UDQGVXSSRUWFRQWLQXHGLQYHVWPHQWLQHPHUJLQJPDUNHWVDQGDVKDUSIRFXVRQJOREDOFRVW
FRPSHWLWLYHQHVVDUHDOOH[SHFWHGWRIRVWHUYLWDOLW\RYHUWKHORQJWHUP7KH&RPSDQ\¶V,$5EXVLQHVVZLWKLQWKH,QGXVWULDO
VHJPHQWFRQWLQXHVWRUHDSEHQHILWVIURPLWVYHUWLFDOLQWHJUDWLRQRIKDQGDQGSRZHUWRROVXVHGIRULQGXVWULDODQGDXWRPRWLYH
UHSDLUSXUSRVHVDVZHOODVDGYDQFHGLQGXVWULDOVWRUDJHVROXWLRQV
&RQWLQXLQJWR,QYHVWLQWKH6WDQOH\%ODFN'HFNHU%UDQGV
7KH&RPSDQ\KDVDVWURQJSRUWIROLRRIEUDQGVDVVRFLDWHGZLWKKLJKTXDOLW\SURGXFWVLQFOXGLQJ67$1/(<%/$&.
'(&.(5'(:$/73RUWHU&DEOH%RVWLWFK3URWR0$&)DFRP$HUR6FRXW3RZHUV/,67$
6,'&+520(9LGPDU621,752/DQG*47KH67$1/(<%/$&.'(&.(5DQG'(:$/7EUDQGVDUH
UHFRJQL]HGDVWKUHHRIWKHZRUOGVJUHDWEUDQGVDQGDUHDPRQJVWWKH&RPSDQ\VPRVWYDOXDEOHDVVHWV6XVWDLQHGEUDQGVXSSRUW
KDV\LHOGHGDVWHDG\LPSURYHPHQWDFURVVWKHVSHFWUXPRIOHJDF\6WDQOH\EUDQGDZDUHQHVVPHDVXUHVQRWDEO\DFOLPELQXQDLGHG
6WDQOH\KDQGWRROEUDQGDZDUHQHVVIURPLQWRLQ'XULQJ6WDQOH\DQG'(:$/7KDGSURPLQHQW
VLJQDJHDWPDMRUOHDJXHEDVHEDOOVWDGLXPVRURIDOO0DMRU/HDJXH%DVHEDOOJDPHV7KH&RPSDQ\KDVDOVRPDLQWDLQHG
ORQJVWDQGLQJ1$6&$5UDFLQJVSRQVRUVKLSVZKLFKSURYLGHGEUDQGH[SRVXUHLQRYHUUDFHZHHNHQGVLQ7KH&RPSDQ\
LVLQ\HDUVL[RIDWHQ\HDUDOOLDQFHDJUHHPHQWZLWKWKH:DOW'LVQH\:RUOG5HVRUWZKHUHE\67$1/(<ORJRVDUHGLVSOD\HG
RQFRQVWUXFWLRQZDOOVWKURXJKRXWWKHWKHPHSDUNVDQG67$1/(<0$&3URWRDQG9LGPDUEUDQGORJRVDQGRU
SURGXFWVDUHIHDWXUHGLQYDULRXVDWWUDFWLRQVZKHUHWKH\ZLOOEHVHHQE\PLOOLRQVRIYLVLWRUVHDFK\HDU$GGLWLRQDOO\6WDQOH\LV
³7KH2IILFLDO7RRO3URYLGHURIWKH:DOW'LVQH\:RUOG5HVRUW´,QWKH&RPSDQ\DOVREHJDQDGYHUWLVLQJLQWKH(QJOLVK
3UHPLHU/HDJXHZKLFKLVWKHQXPEHURQHVRFFHUOHDJXHLQWKHZRUOGZDWFKHGZHHNO\E\PLOOLRQSHRSOH)URPWKH
EHJLQQLQJRIWKURXJKWKHHQGRIWKH&RPSDQ\DGYHUWLVHGLQDSSUR[LPDWHO\WHOHYLVHGHYHQWV6WDUWLQJLQ
WKH&RPSDQ\EHFDPHDVSRQVRURIWKH/LYHUSRRO)RRWEDOO&OXEDQGWKH)XOKDP)RRWEDOO&OXELQFOXGLQJSOD\HUULJKWV
KRVSLWDOLW\DVVHWVDQGVWDGLXPVLJQDJH7KH&RPSDQ\DGYHUWLVHVLQWHOHYLVHG3URIHVVLRQDO%XOO5LGHUVHYHQWVLQWKH86DQG
%UD]LODQGVSRQVRUVILYHULGHUV$GGLWLRQDOO\WKH&RPSDQ\VSRQVRUVDWHDPDQGWZRULGHUVLQ0RWR*3WKHZRUOGVSUHPLHUH
PRWRUF\FOHUDFLQJVHULHVDQGKDVHQWHUHGDSDUWQHUVKLSZLWKWKH&KLQHVH%DVNHWEDOO$VVRFLDWLRQ&%$7KH&RPSDQ\ZLOO
FRQWLQXHWRDOORFDWHLWVEUDQGDQGDGYHUWLVLQJVSHQGZLVHO\JHQHUDWLQJPRUHWKDQELOOLRQEUDQGLPSUHVVLRQVDQQXDOO\