Black & Decker 2013 Annual Report Download - page 38

Download and view the complete annual report

Please find page 38 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



7KH&RPSDQ\UHSRUWHGPLOOLRQLQSUHWD[PHUJHUDQGDFTXLVLWLRQUHODWHGDQGRWKHUFKDUJHVGXULQJZKLFKZHUH
FRPSULVHGRIWKHIROORZLQJ
 PLOOLRQUHGXFLQJ*URVVSURILWSULPDULO\SHUWDLQLQJWRIDFLOLW\FORVXUHUHODWHGFKDUJHV
 PLOOLRQLQ6HOOLQJJHQHUDODGPLQLVWUDWLYHH[SHQVHVSULPDULO\IRULQWHJUDWLRQUHODWHGDGPLQLVWUDWLYHFRVWVDQG
FRQVXOWLQJIHHVDVZHOODVHPSOR\HHUHODWHGPDWWHUV
 PLOOLRQLQ2WKHUQHWSULPDULO\UHODWHGWRWUDQVDFWLRQFRVWVDQGWKHPLOOLRQORVVRQWKHH[WLQJXLVKPHQWRI
PLOOLRQRIGHEWLQWKHWKLUGTXDUWHURIDQG
 PLOOLRQLQ5HVWUXFWXULQJFKDUJHVZKLFKSULPDULO\UHSUHVHQW1LVFD\DKUHODWHGUHVWUXFWXULQJFKDUJHVDQGFRVW
FRQWDLQPHQWDFWLRQVDVVRFLDWHGZLWKWKHVHYHUDQFHRIHPSOR\HHV
7KHWD[HIIHFWRQWKHDERYHFKDUJHVVRPHRIZKLFKZHUHQRWWD[GHGXFWLEOHLQZDVPLOOLRQUHVXOWLQJLQDQDIWHUWD[
FKDUJHRIPLOOLRQRUSHUGLOXWHGVKDUH

7KH&RPSDQ\UHSRUWHGPLOOLRQLQSUHWD[FKDUJHVGXULQJSHUWDLQLQJWRWKH0HUJHUDQGRWKHUDFTXLVLWLRQDFWLYLWLHV
ZKLFKZHUHFRPSULVHGRIWKHIROORZLQJ
 PLOOLRQUHGXFLQJ*URVVSURILWSULPDULO\SHUWDLQLQJWRIDFLOLW\FORVXUHUHODWHGFKDUJHV
 PLOOLRQLQ6HOOLQJJHQHUDODGPLQLVWUDWLYHH[SHQVHVSULPDULO\IRULQWHJUDWLRQUHODWHGDGPLQLVWUDWLYHFRVWVDQG
FRQVXOWLQJIHHVDVZHOODVHPSOR\HHUHODWHGPDWWHUV
 PLOOLRQLQ2WKHUQHWSUHGRPLQDQWO\IRUWUDQVDFWLRQFRVWVDQG
 PLOOLRQLQ5HVWUXFWXULQJFKDUJHVSULPDULO\IRUVHYHUDQFHDQGWKHSODQQHGFORVXUHVRIIDFLOLWLHV
7KHWD[HIIHFWRQWKHDERYHFKDUJHVVRPHRIZKLFKZHUHQRWWD[GHGXFWLEOHLQZDVPLOOLRQUHVXOWLQJLQDQDIWHUWD[
FKDUJHRIPLOOLRQRUSHUGLOXWHGVKDUH
2XWORRNIRU
7KLVRXWORRNGLVFXVVLRQLVLQWHQGHGWRSURYLGHEURDGLQVLJKWLQWRWKH&RPSDQ\¶VQHDUWHUPHDUQLQJVDQGFDVKIORZJHQHUDWLRQ
SURVSHFWV7KH&RPSDQ\H[SHFWVGLOXWHGHDUQLQJVSHUVKDUHWRDSSUR[LPDWHWRLQLQFOXVLYHRIPLOOLRQRI
PHUJHUDQGDFTXLVLWLRQUHODWHGFKDUJHVWRVXSSRUWWKH,QIDVWHFKDFTXLVLWLRQ([FOXGLQJVXFKFKDUJHVHDUQLQJVSHUGLOXWLYH
VKDUHLVH[SHFWHGWREHLQWKHUDQJHRIWR7KH&RPSDQ\H[SHFWVIUHHFDVKIORZWRDSSUR[LPDWHPLOOLRQZKLFK
LQFOXGHVDSSUR[LPDWHO\PLOOLRQRIPHUJHUDQGDFTXLVLWLRQUHODWHGSD\PHQWV7KHRXWORRNDVVXPHVWKDWRUJDQLFQHW
VDOHVZLOOLQFUHDVHIURPGULYLQJDSSUR[LPDWHO\WRRIGLOXWHGHDUQLQJVSHUVKDUHDFFUHWLRQ2UJDQLFJURZWK
LQLWLDWLYHVDUHH[SHFWHGWR\LHOGJURZWKZLWKWKHUHPDLQGHUIURPWKHFRUHEXVLQHVV7KH6HFXULW\PDUJLQLPSURYHPHQWLV
H[SHFWHGWRGULYHDSSUR[LPDWHO\EDVLVSRLQWVLQFUHDVHWRWKHVHJPHQWRSHUDWLQJPDUJLQDQG\LHOGDSSUR[LPDWHO\RI
(36DFFUHWLRQ&RVWFRQWDLQPHQWDFWLRQVWDNHQLQLQ&',<,QGXVWULDODQG&RUSRUDWHZLOOKDYHDSRVLWLYHFDUU\RYHULPSDFW
RIDSSUR[LPDWHO\RIGLOXWHG(367KH,QIDVWHFKDFTXLVLWLRQLVH[SHFWHGWRDGGRI(36DFFUHWLRQLQ)RUHLJQ
H[FKDQJHUDWHVDUHH[SHFWHGWRKDYHDQHJDWLYHLPSDFWRIDSSUR[LPDWHO\RIGLOXWHG(36$QLQFUHDVHLQWD[UDWHVDQG
,QWHUHVW2WKHUH[SHQVHVFRPELQHGLVH[SHFWHGWRGULYHKHDGZLQGVRIDSSUR[LPDWHO\WRRIGLOXWHG(36
$VPHQWLRQHGSUHYLRXVO\WKH&RPSDQ\KDVGHFLGHGWRLQWHQVLI\LWVIRFXVRQLQFUHDVLQJRUJDQLFJURZWKFRQFHQWUDWHGLQILYH
PDMRUDUHDVGXULQJWKHQH[WIHZ\HDUVLQFUHDVHSUHVHQFHLQHPHUJLQJPDUNHWVLQWKH3RZHU7RROV+DQG7RROVDQG
&RPPHUFLDO+DUGZDUHPLGSULFHSRLQWFDWHJRULHVFUHDWHDVPDUWWRROVDQGVWRUDJHPDUNHWXVLQJUDGLRIUHTXHQF\
LGHQWLILFDWLRQ5),'DQGUHDOWLPHORFDWLQJV\VWHP57/6WHFKQRORJ\OHYHUDJHWKH$HUR6FRXW57/6FDSDELOLW\LQWR
WKHHOHFWURQLFVHFXULW\PDUNHWLQFOXGLQJWKHDFXWHFDUHYHUWLFDOZLWKLQWKH&RPSDQ\V+HDOWKFDUHEXVLQHVVRIIVKRUHRLODQG
JDVSLSHOLQHVHUYLFHUHYHQXHLQWKH&RPSDQ\V2LO*DVEXVLQHVVDQGFRQWLQXHWRLGHQWLI\DQGUHDOL]HUHYHQXHV\QHUJLHV
DVVRFLDWHGZLWKVHYHUDODFTXLVLWLRQVDQGWKH%ODFN'HFNHU0HUJHU)URPWKH&RPSDQ\ZLOOLQYHVW
DSSUR[LPDWHO\PLOOLRQPLOOLRQRIUHFXUULQJRSHUDWLQJH[SHQVHDQGPLOOLRQRIFDSLWDOWRVXSSRUWWKHVH
LQLWLDWLYHV7KH&RPSDQ\H[SHFWVWKDWLQYHVWPHQWDQGDFKLHYHPHQWLQWKHVHJURZWKDUHDVZLOOJHQHUDWHDSSUR[LPDWHO\
PLOOLRQRILQFUHPHQWDOUHYHQXHRYHUWKHVDPHWKUHH\HDUSHULRGDQGVKRXOGLQFUHDVHLWVRUJDQLFJURZWKUDWHFRPPHQVXUDWHO\