Black & Decker 2013 Annual Report Download - page 49
Download and view the complete annual report
Please find page 49 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\KDVH[SRVXUHWRFRPPRGLW\SULFHVLQPDQ\EXVLQHVVHVSDUWLFXODUO\EUDVVQLFNHOUHVLQDOXPLQXPFRSSHU]LQF
VWHHODQGHQHUJ\XVHGLQWKHSURGXFWLRQRIILQLVKHGJRRGV*HQHUDOO\FRPPRGLW\SULFHH[SRVXUHVDUHQRWKHGJHGZLWK
GHULYDWLYHILQDQFLDOLQVWUXPHQWVEXWLQVWHDGDUHDFWLYHO\PDQDJHGWKURXJKFXVWRPHUSURGXFWDQGVHUYLFHSULFLQJDFWLRQV
SURFXUHPHQWGULYHQFRVWUHGXFWLRQLQLWLDWLYHVDQGRWKHUSURGXFWLYLW\LPSURYHPHQWSURMHFWV
2YHUDOOWKH&RPSDQ\H[SHULHQFHGLQIODWLRQRIDSSUR[LPDWHO\PLOOLRQPLOOLRQDQGPLOOLRQLQDQG
UHVSHFWLYHO\3ULFHHURVLRQKDVDOVRRFFXUUHGLQDQGLQDGGLWLRQWRLQIODWLRQZLWKDFXPXODWLYHXQIDYRUDEOH
LPSDFWRIPLOOLRQ7KHLPSDFWRILQIODWLRQLVH[SHFWHGWRFRQWLQXHLQZLWKFRVWDQGSULFLQJDFWLRQVEHLQJ
DJJUHVVLYHO\SXUVXHGWRRIIVHWDQ\DGYHUVHLPSDFWRQRSHUDWLRQV
)OXFWXDWLRQVLQWKHIDLUYDOXHRIWKH&RPSDQ\¶VFRPPRQVWRFNDIIHFWGRPHVWLFUHWLUHPHQWSODQH[SHQVHDVGLVFXVVHGLQWKH
(623VHFWLRQRI0'$$GGLWLRQDOO\WKH&RPSDQ\KDVPLOOLRQRIOLDELOLWLHVDVRI'HFHPEHUSHUWDLQLQJWR
XQIXQGHGGHILQHGFRQWULEXWLRQSODQVIRUFHUWDLQ86HPSOR\HHVIRUZKLFKWKHUHLVPDUNWRPDUNHWH[SRVXUH
7KHDVVHWVKHOGE\WKH&RPSDQ\¶VGHILQHGEHQHILWSODQVDUHH[SRVHGWRIOXFWXDWLRQVLQWKHPDUNHWYDOXHRIVHFXULWLHVSULPDULO\
JOREDOVWRFNVDQGIL[HGLQFRPHVHFXULWLHV7KHIXQGLQJREOLJDWLRQVIRUWKHVHSODQVZRXOGLQFUHDVHLQWKHHYHQWRIDGYHUVH
FKDQJHVLQWKHSODQDVVHWYDOXHVDOWKRXJKVXFKIXQGLQJZRXOGRFFXURYHUDSHULRGRIPDQ\\HDUV,QDQG
WKHUHZHUHPLOOLRQPLOOLRQDQGPLOOLRQUHVSHFWLYHO\LQLQYHVWPHQWUHWXUQVRQSHQVLRQSODQDVVHWV7KH
&RPSDQ\H[SHFWVIXQGLQJREOLJDWLRQVRQLWVGHILQHGEHQHILWSODQVWREHDSSUR[LPDWHO\PLOOLRQLQ7KH&RPSDQ\
HPSOR\VGLYHUVLILHGDVVHWDOORFDWLRQVWRKHOSPLWLJDWHWKLVULVN0DQDJHPHQWKDVZRUNHGWRPLQLPL]HWKLVH[SRVXUHE\IUHH]LQJ
DQGWHUPLQDWLQJGHILQHGEHQHILWSODQVZKHUHDSSURSULDWH
7KH&RPSDQ\KDVDFFHVVWRILQDQFLDOUHVRXUFHVDQGERUURZLQJFDSDELOLWLHVDURXQGWKHZRUOG7KHUHDUHQRLQVWUXPHQWVZLWKLQ
WKHGHEWVWUXFWXUHWKDWZRXOGDFFHOHUDWHSD\PHQWUHTXLUHPHQWVGXHWRDFKDQJHLQFUHGLWUDWLQJ
7KH&RPSDQ\¶VH[LVWLQJFUHGLWIDFLOLWLHVDQGVRXUFHVRIOLTXLGLW\LQFOXGLQJRSHUDWLQJFDVKIORZVDUHFRQVLGHUHGPRUHWKDQ
DGHTXDWHWRFRQGXFWEXVLQHVVDVQRUPDO$FFRUGLQJO\EDVHGRQSUHVHQWFRQGLWLRQVDQGSDVWKLVWRU\PDQDJHPHQWEHOLHYHVLWLV
XQOLNHO\WKDWRSHUDWLRQVZLOOEHPDWHULDOO\DIIHFWHGE\DQ\SRWHQWLDOGHWHULRUDWLRQRIWKHJHQHUDOFUHGLWPDUNHWVWKDWPD\RFFXU
7KH&RPSDQ\EHOLHYHVWKDWLWVVWURQJILQDQFLDOSRVLWLRQRSHUDWLQJFDVKIORZVFRPPLWWHGORQJWHUPFUHGLWIDFLOLWLHVDQG
ERUURZLQJFDSDFLW\DQGUHDG\DFFHVVWRHTXLW\PDUNHWVSURYLGHWKHILQDQFLDOIOH[LELOLW\QHFHVVDU\WRFRQWLQXHLWVUHFRUGRI
DQQXDOGLYLGHQGSD\PHQWVWRLQYHVWLQWKHURXWLQHQHHGVRILWVEXVLQHVVHVWRPDNHVWUDWHJLFDFTXLVLWLRQVDQGWRIXQGRWKHU
LQLWLDWLYHVHQFRPSDVVHGE\LWVJURZWKVWUDWHJ\DQGPDLQWDLQLWVVWURQJLQYHVWPHQWJUDGHFUHGLWUDWLQJV
27+(50$77(56
(PSOR\HH6WRFN2ZQHUVKLS3ODQ$VGHWDLOHGLQ1RWH/(PSOR\HH%HQHILW3ODQVWKH&RPSDQ\KDVDQ(623XQGHUZKLFKWKH
RQJRLQJ86&RUHDQGNGHILQHGFRQWULEXWLRQSODQVDUHIXQGHG2YHUDOO(623H[SHQVHLVDIIHFWHGE\WKHPDUNHWYDOXHRI
WKH&RPSDQ\¶VVWRFNRQWKHPRQWKO\GDWHVZKHQVKDUHVDUHUHOHDVHGDPRQJRWKHUIDFWRUV7KH&RPSDQ\¶VQHW(623DFWLYLW\
UHVXOWHGLQH[SHQVHRIPLOOLRQLQPLOOLRQLQDQGPLOOLRQLQ7KHGHFUHDVHLQQHW(623
H[SHQVHLQLVUHODWHGWRWKHUHOHDVHRIVKDUHVRIXQDOORFDWHGVWRFNWULJJHUHGE\DQDGGLWLRQDOFRQWULEXWLRQWRWKH
(623ZKLFKZDVXVHGE\WKH(623WRPDNHDQDGGLWLRQDOSD\PHQWRQWKHDVVRFLDWHGORDQDVPRUHIXOO\GLVFXVVHGLQ1RWH/
(PSOR\HH%HQHILW3ODQV(623H[SHQVHFRXOGLQFUHDVHLQWKHIXWXUHLIWKHPDUNHWYDOXHRIWKH&RPSDQ\¶VFRPPRQVWRFN
GHFOLQHV
&5,7,&$/$&&2817,1*(67,0$7(6²3UHSDUDWLRQRIWKH&RPSDQ\¶V&RQVROLGDWHG)LQDQFLDO6WDWHPHQWVUHTXLUHV
PDQDJHPHQWWRPDNHHVWLPDWHVDQGDVVXPSWLRQVWKDWDIIHFWWKHUHSRUWHGDPRXQWVRIDVVHWVOLDELOLWLHVUHYHQXHVDQGH[SHQVHV
6LJQLILFDQWDFFRXQWLQJSROLFLHVXVHGLQWKHSUHSDUDWLRQRIWKH&RQVROLGDWHG)LQDQFLDO6WDWHPHQWVDUHGHVFULEHGLQ1RWH$
6LJQLILFDQW$FFRXQWLQJ3ROLFLHV0DQDJHPHQWEHOLHYHVWKHPRVWFRPSOH[DQGVHQVLWLYHMXGJPHQWVEHFDXVHRIWKHLUVLJQLILFDQFH
WRWKH&RQVROLGDWHG)LQDQFLDO6WDWHPHQWVUHVXOWSULPDULO\IURPWKHQHHGWRPDNHHVWLPDWHVDERXWWKHHIIHFWVRIPDWWHUVZLWK
LQKHUHQWXQFHUWDLQW\7KHPRVWVLJQLILFDQWDUHDVLQYROYLQJPDQDJHPHQWHVWLPDWHVDUHGHVFULEHGEHORZ$FWXDOUHVXOWVLQWKHVH
DUHDVFRXOGGLIIHUIURPPDQDJHPHQW¶VHVWLPDWHV
$//2:$1&()25'28%7)8/$&&28176²7KH&RPSDQ\¶VHVWLPDWHIRULWVDOORZDQFHIRUGRXEWIXODFFRXQWVUHODWHGWR
WUDGHUHFHLYDEOHVLVEDVHGRQWZRPHWKRGV7KHDPRXQWVFDOFXODWHGIURPHDFKRIWKHVHPHWKRGVDUHFRPELQHGWRGHWHUPLQHWKH
WRWDODPRXQWUHVHUYHG)LUVWDVSHFLILFUHVHUYHLVHVWDEOLVKHGIRULQGLYLGXDODFFRXQWVZKHUHLQIRUPDWLRQLQGLFDWHVWKHFXVWRPHUV
PD\KDYHDQLQDELOLW\WRPHHWILQDQFLDOREOLJDWLRQV,QWKHVHFDVHVPDQDJHPHQWXVHVLWVMXGJPHQWEDVHGRQWKHVXUURXQGLQJ
IDFWVDQGFLUFXPVWDQFHVWRUHFRUGDVSHFLILFUHVHUYHIRUWKRVHFXVWRPHUVDJDLQVWDPRXQWVGXHWRUHGXFHWKHUHFHLYDEOHWRWKH
DPRXQWH[SHFWHGWREHFROOHFWHG7KHVHVSHFLILFUHVHUYHVDUHUHHYDOXDWHGDQGDGMXVWHGDVDGGLWLRQDOLQIRUPDWLRQLVUHFHLYHG
6HFRQGDUHVHUYHLVGHWHUPLQHGIRUDOOFXVWRPHUVEDVHGRQDUDQJHRISHUFHQWDJHVDSSOLHGWRUHFHLYDEOHDJLQJFDWHJRULHV7KHVH
SHUFHQWDJHVDUHEDVHGRQKLVWRULFDOFROOHFWLRQDQGZULWHRIIH[SHULHQFH