Black & Decker 2013 Annual Report Download - page 76
Download and view the complete annual report
Please find page 76 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.
&2672)6$/(6$1'6(//,1**(1(5$/$'0,1,675$7,9(²&RVWRIVDOHVLQFOXGHVWKHFRVWRISURGXFWVDQG
VHUYLFHVSURYLGHGUHIOHFWLQJFRVWVRIPDQXIDFWXULQJDQGSUHSDULQJWKHSURGXFWIRUVDOH7KHVHFRVWVLQFOXGHH[SHQVHVWRDFTXLUH
DQGPDQXIDFWXUHSURGXFWVWRWKHSRLQWWKDWWKH\DUHDOORFDEOHWREHVROGWRFXVWRPHUVDQGFRVWVWRSHUIRUPVHUYLFHVSHUWDLQLQJWR
VHUYLFHUHYHQXHVHJLQVWDOODWLRQRIVHFXULW\V\VWHPVDXWRPDWLFGRRUVDQGVHFXULW\PRQLWRULQJFRVWV&RVWRIVDOHVLV
SULPDULO\FRPSULVHGRILQERXQGIUHLJKWGLUHFWPDWHULDOVGLUHFWODERUDVZHOODVRYHUKHDGZKLFKLQFOXGHVLQGLUHFWODERUDQG
IDFLOLW\DQGHTXLSPHQWFRVWV&RVWRIVDOHVDOVRLQFOXGHVTXDOLW\FRQWUROSURFXUHPHQWDQGPDWHULDOUHFHLYLQJFRVWVDVZHOODV
LQWHUQDOWUDQVIHUFRVWV6*$FRVWVLQFOXGHWKHFRVWRIVHOOLQJSURGXFWVDVZHOODVDGPLQLVWUDWLYHIXQFWLRQFRVWV7KHVHH[SHQVHV
JHQHUDOO\UHSUHVHQWWKHFRVWRIVHOOLQJDQGGLVWULEXWLQJWKHSURGXFWVRQFHWKH\DUHDYDLODEOHIRUVDOHDQGSULPDULO\LQFOXGH
VDODULHVDQGFRPPLVVLRQVRIWKH&RPSDQ\¶VVDOHVIRUFHGLVWULEXWLRQFRVWVQRWDEO\VDODULHVDQGIDFLOLW\FRVWVDVZHOODV
DGPLQLVWUDWLYHH[SHQVHVIRUFHUWDLQVXSSRUWIXQFWLRQVDQGUHODWHGRYHUKHDG
$'9(57,6,1*&2676²7HOHYLVLRQDGYHUWLVLQJLVH[SHQVHGWKHILUVWWLPHWKHDGYHUWLVHPHQWDLUVZKHUHDVRWKHUDGYHUWLVLQJ
LVH[SHQVHGDVLQFXUUHG$GYHUWLVLQJFRVWVDUHFODVVLILHGLQ6*$DQGDPRXQWHGWRPLOOLRQLQPLOOLRQLQ
DQGPLOOLRQLQ([SHQVHSHUWDLQLQJWRFRRSHUDWLYHDGYHUWLVLQJZLWKFXVWRPHUVUHSRUWHGDVDUHGXFWLRQRI1HW
VDOHVZDVPLOOLRQLQPLOOLRQLQDQGPLOOLRQLQ&RRSHUDWLYHDGYHUWLVLQJZLWKFXVWRPHUV
FODVVLILHGDV6*$H[SHQVHDPRXQWHGWRPLOOLRQLQPLOOLRQLQDQGPLOOLRQLQ
6$/(67$;(6²6DOHVDQGYDOXHDGGHGWD[HVFROOHFWHGIURPFXVWRPHUVDQGUHPLWWHGWRJRYHUQPHQWDODXWKRULWLHVDUH
H[FOXGHGIURP1HWVDOHVUHSRUWHGLQWKH&RQVROLGDWHG6WDWHPHQWVRI2SHUDWLRQV
6+,33,1*$1'+$1'/,1*&2676²7KH&RPSDQ\JHQHUDOO\GRHVQRWELOOFXVWRPHUVIRUIUHLJKW6KLSSLQJDQGKDQGOLQJ
FRVWVDVVRFLDWHGZLWKLQERXQGIUHLJKWDUHUHSRUWHGLQ&RVWRIVDOHV6KLSSLQJFRVWVDVVRFLDWHGZLWKRXWERXQGIUHLJKWDUHUHSRUWHG
DVDUHGXFWLRQRI1HWVDOHVDQGDPRXQWHGWRPLOOLRQPLOOLRQDQGPLOOLRQLQDQG
UHVSHFWLYHO\'LVWULEXWLRQFRVWVDUHFODVVLILHGDV6*$DQGDPRXQWHGWRPLOOLRQPLOOLRQDQGPLOOLRQLQ
DQGUHVSHFWLYHO\
672&.%$6('&203(16$7,21²&RPSHQVDWLRQFRVWUHODWLQJWRVWRFNEDVHGFRPSHQVDWLRQJUDQWVLVUHFRJQL]HGRQD
VWUDLJKWOLQHEDVLVRYHUWKHYHVWLQJSHULRGZKLFKLVJHQHUDOO\IRXU\HDUV7KHH[SHQVHIRUVWRFNRSWLRQVDQGUHVWULFWHGVWRFN
XQLWVDZDUGHGWRUHWLUHPHQWHOLJLEOHHPSOR\HHVWKRVHDJHGDQGRYHUDQGZLWKRUPRUH\HDUVRIVHUYLFHLVUHFRJQL]HGRQ
WKHJUDQWGDWHRULIODWHUE\WKHGDWHWKH\EHFRPHUHWLUHPHQWHOLJLEOH
32675(7,5(0(17'(),1('%(1(),73/$1²7KH&RPSDQ\XVHVWKHFRUULGRUDSSURDFKWRGHWHUPLQHH[SHQVH
UHFRJQLWLRQIRUHDFKGHILQHGEHQHILWSHQVLRQDQGRWKHUSRVWUHWLUHPHQWSODQ7KHFRUULGRUDSSURDFKGHIHUVDFWXDULDOJDLQVDQG
ORVVHVUHVXOWLQJIURPYDULDQFHVEHWZHHQDFWXDODQGH[SHFWHGUHVXOWVEDVHGRQHFRQRPLFHVWLPDWHVRUDFWXDULDODVVXPSWLRQVDQG
DPRUWL]HVWKHPRYHUIXWXUHSHULRGV)RUSHQVLRQSODQVWKHVHXQUHFRJQL]HGJDLQVDQGORVVHVDUHDPRUWL]HGZKHQWKHQHWJDLQV
DQGORVVHVH[FHHGRIWKHJUHDWHURIWKHPDUNHWUHODWHGYDOXHRISODQDVVHWVRUWKHSURMHFWHGEHQHILWREOLJDWLRQDWWKH
EHJLQQLQJRIWKH\HDU)RURWKHUSRVWUHWLUHPHQWEHQHILWVDPRUWL]DWLRQRFFXUVZKHQWKHQHWJDLQVDQGORVVHVH[FHHGRIWKH
DFFXPXODWHGSRVWUHWLUHPHQWEHQHILWREOLJDWLRQDWWKHEHJLQQLQJRIWKH\HDU)RURQJRLQJDFWLYHSODQVWKHDPRXQWLQH[FHVVRI
WKHFRUULGRULVDPRUWL]HGRQDVWUDLJKWOLQHEDVLVRYHUWKHDYHUDJHUHPDLQLQJVHUYLFHSHULRGIRUDFWLYHSODQSDUWLFLSDQWV)RU
SODQVZLWKSULPDULO\LQDFWLYHSDUWLFLSDQWVWKHDPRXQWLQH[FHVVRIWKHFRUULGRULVDPRUWL]HGRQDVWUDLJKWOLQHEDVLVRYHUWKH
DYHUDJHUHPDLQLQJOLIHH[SHFWDQF\RILQDFWLYHSODQSDUWLFLSDQWV
,1&20(7$;(6²7KH&RPSDQ\DFFRXQWVIRULQFRPHWD[HVXQGHUWKHDVVHWDQGOLDELOLW\PHWKRGLQDFFRUGDQFHZLWK$6&
,QFRPH7D[HV$6&ZKLFKUHTXLUHVWKHUHFRJQLWLRQRIGHIHUUHGWD[DVVHWVDQGOLDELOLWLHVIRUWKHH[SHFWHGIXWXUH
WD[FRQVHTXHQFHVRIHYHQWVWKDWKDYHEHHQLQFOXGHGLQWKHILQDQFLDOVWDWHPHQWV'HIHUUHGWD[DVVHWVDQGOLDELOLWLHVDUH
GHWHUPLQHGEDVHGRQWKHGLIIHUHQFHVEHWZHHQWKHILQDQFLDOVWDWHPHQWVDQGWD[EDVLVRIDVVHWVDQGOLDELOLWLHVXVLQJWKHHQDFWHGWD[
UDWHVLQHIIHFWIRUWKH\HDULQZKLFKWKHGLIIHUHQFHVDUHH[SHFWHGWRUHYHUVH$Q\FKDQJHVLQWD[UDWHVRQGHIHUUHGWD[DVVHWVDQG
OLDELOLWLHVDUHUHFRJQL]HGLQLQFRPHLQWKHSHULRGWKDWLQFOXGHVWKHHQDFWPHQWGDWH
7KH&RPSDQ\UHFRUGVQHWGHIHUUHGWD[DVVHWVWRWKHH[WHQWWKDWLWLVPRUHOLNHO\WKDQQRWWKDWWKHVHDVVHWVZLOOEHUHDOL]HG,Q
PDNLQJWKLV GHWHUPLQDWLRQ 0DQDJHPHQWFRQVLGHUVDOODYDLODEOH SRVLWLYHDQG QHJDWLYHHYLGHQFHLQFOXGLQJIXWXUH UHYHUVDOVRI
H[LVWLQJWHPSRUDU\GLIIHUHQFHVHVWLPDWHVRIIXWXUHWD[DEOHLQFRPHWD[SODQQLQJVWUDWHJLHVDQGWKHUHDOL]DELOLW\RIQHWRSHUDWLQJ
ORVVFDUU\IRUZDUGV,QWKHHYHQWWKDWLWLVGHWHUPLQHGWKDWDQDVVHWLVQRWPRUHOLNHO\WKDWQRWWREHUHDOL]HGDYDOXDWLRQDOORZDQFH
LVUHFRUGHGDJDLQVWWKHDVVHW9DOXDWLRQDOORZDQFHVUHODWHGWRGHIHUUHGWD[DVVHWVFDQEHLPSDFWHGE\FKDQJHVWRWD[ODZVFKDQJHV
WRVWDWXWRU\WD[UDWHVDQGIXWXUHWD[DEOHLQFRPHOHYHOV,QWKHHYHQWWKH&RPSDQ\ZHUHWRGHWHUPLQHWKDWLWZRXOGQRWEHDEOHWR
UHDOL]HDOORUDSRUWLRQRILWVGHIHUUHGWD[DVVHWVLQWKHIXWXUHWKHXQUHDOL]DEOHDPRXQWZRXOGEHFKDUJHGWRHDUQLQJVLQWKHSHULRG
LQZKLFKWKDWGHWHUPLQDWLRQLVPDGH&RQYHUVHO\LIWKH&RPSDQ\ZHUHWRGHWHUPLQHWKDWLWZRXOGEHDEOHWRUHDOL]HGHIHUUHGWD[
DVVHWVLQWKHIXWXUHLQH[FHVVRIWKHQHWFDUU\LQJDPRXQWVLWZRXOGGHFUHDVHWKHUHFRUGHGYDOXDWLRQDOORZDQFHWKURXJKDIDYRUDEOH
DGMXVWPHQWWRHDUQLQJVLQWKHSHULRGWKDWWKHGHWHUPLQDWLRQZDVPDGH