Black & Decker 2013 Annual Report Download - page 77
Download and view the complete annual report
Please find page 77 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\UHFRUGVXQFHUWDLQWD[SRVLWLRQVLQDFFRUGDQFHZLWK$6&ZKLFKUHTXLUHVDWZRVWHSSURFHVV)LUVW
PDQDJHPHQWGHWHUPLQHVZKHWKHULWLVPRUHOLNHO\WKDQQRWWKDWDWD[SRVLWLRQZLOOEHVXVWDLQHGEDVHGRQWKHWHFKQLFDOPHULWVRI
WKHSRVLWLRQDQGVHFRQGIRUWKRVHWD[SRVLWLRQVWKDWPHHWWKHPRUHOLNHO\WKDQQRWWKUHVKROGPDQDJHPHQWUHFRJQL]HVWKHODUJHVW
DPRXQWRIWKHWD[EHQHILWWKDWLVJUHDWHUWKDQSHUFHQWOLNHO\WREHUHDOL]HGXSRQXOWLPDWHVHWWOHPHQWZLWKWKHUHODWHGWD[LQJ
DXWKRULW\7KH&RPSDQ\PDLQWDLQVDQDFFRXQWLQJSROLF\RIUHFRUGLQJLQWHUHVWDQGSHQDOWLHVRQXQFHUWDLQWD[SRVLWLRQVDVD
FRPSRQHQWRIWKHLQFRPHWD[H[SHQVHRQFRQWLQXLQJRSHUDWLRQVLQWKH&RQVROLGDWHG6WDWHPHQWRI2SHUDWLRQV
7KH&RPSDQ\LVVXEMHFWWRWD[LQDQXPEHURIORFDWLRQVLQFOXGLQJPDQ\VWDWHDQGIRUHLJQMXULVGLFWLRQV6LJQLILFDQWMXGJPHQWLV
UHTXLUHGZKHQFDOFXODWLQJWKHZRUOGZLGHSURYLVLRQIRULQFRPHWD[HV0DQ\IDFWRUVDUHFRQVLGHUHGZKHQHYDOXDWLQJDQGHVWLPDWLQJ
WKH&RPSDQ\VWD[SRVLWLRQVDQGWD[EHQHILWVZKLFKPD\UHTXLUHSHULRGLFDGMXVWPHQWVDQGZKLFKPD\QRWDFFXUDWHO\DQWLFLSDWH
DFWXDORXWFRPHV,WLVUHDVRQDEO\SRVVLEOHWKDWWKHDPRXQWRIWKHXQUHFRJQL]HGEHQHILWZLWKUHVSHFWWRFHUWDLQRIWKH&RPSDQ\V
XQUHFRJQL]HGWD[SRVLWLRQVZLOOVLJQLILFDQWO\LQFUHDVHRUGHFUHDVHZLWKLQWKHQH[WPRQWKV7KHVHFKDQJHVPD\EHWKHUHVXOWRI
VHWWOHPHQWVRIRQJRLQJDXGLWVRUILQDOGHFLVLRQVLQWUDQVIHUSULFLQJPDWWHUV7KH&RPSDQ\SHULRGLFDOO\DVVHVVHVLWVOLDELOLWLHVDQG
FRQWLQJHQFLHVIRUDOOWD[\HDUVVWLOOVXEMHFWWRDXGLWEDVHGRQWKHPRVWFXUUHQWDYDLODEOHLQIRUPDWLRQZKLFKLQYROYHVLQKHUHQW
XQFHUWDLQW\
($51,1*63(56+$5(²%DVLFHDUQLQJVSHUVKDUHHTXDOVQHWHDUQLQJVDWWULEXWDEOHWR6WDQOH\%ODFN'HFNHU,QFOHVV
HDUQLQJVDOORFDWHGWRUHVWULFWHGVWRFNXQLWVZLWKQRQIRUIHLWDEOHGLYLGHQGULJKWVGLYLGHGE\ZHLJKWHGDYHUDJHVKDUHVRXWVWDQGLQJ
GXULQJWKH\HDU'LOXWHGHDUQLQJVSHUVKDUHLQFOXGHWKHLPSDFWRIFRPPRQVWRFNHTXLYDOHQWVXVLQJWKHWUHDVXU\VWRFNPHWKRG
ZKHQWKHHIIHFWLVGLOXWLYH
1(:$&&2817,1*67$1'$5'6²,Q-XO\WKH)LQDQFLDO$FFRXQWLQJ6WDQGDUGV%RDUG)$6%LVVXHG$68
,QFRPH7D[HV7RSLF3UHVHQWDWLRQRIDQ8QUHFRJQL]HG7D[%HQHILW:KHQD1HW2SHUDWLQJ/RVV&DUU\IRUZDUG
D6LPLODU7D[/RVVRUD7D[&UHGLW&DUU\IRUZDUG([LVWV7KH)$6%VREMHFWLYHLQLVVXLQJWKLV$68LVWRHOLPLQDWHGLYHUVLW\LQ
SUDFWLFHUHVXOWLQJIURPDODFNRIJXLGDQFHRQWKLVWRSLFLQFXUUHQW86*$$31HZUHFXUULQJGLVFORVXUHVDUHQRWUHTXLUHG
EHFDXVHWKH$68GRHVQRWDIIHFWWKHUHFRJQLWLRQRUPHDVXUHPHQWRIXQFHUWDLQWD[SRVLWLRQVXQGHU$6&7KLV$68LV
HIIHFWLYHIRUUHSRUWLQJSHULRGVEHJLQQLQJDIWHU'HFHPEHUZLWKHDUO\DGRSWLRQSHUPLWWHG7KH&RPSDQ\GLGQRWHDUO\
DGRSWWKLVJXLGDQFHIRUWKH\HDUHQGHG'HFHPEHU7KH&RPSDQ\LVLQWKHSURFHVVRITXDQWLI\LQJWKHHIIHFWRIDGRSWLQJ
WKLVJXLGDQFH
,Q0DUFKWKH)$6%LVVXHG$68³)RUHLJQ&XUUHQF\0DWWHUV7RSLF3DUHQW¶V$FFRXQWLQJIRUWKH
&XPXODWLYH7UDQVODWLRQ$GMXVWPHQWXSRQ'HUHFRJQLWLRQRI&HUWDLQ6XEVLGLDULHVRU*URXSVRI$VVHWVZLWKLQD)RUHLJQ(QWLW\RU
RIDQ,QYHVWPHQWLQD)RUHLJQ(QWLW\´7KLVJXLGDQFHDSSOLHVWRWKHUHOHDVHRIWKHFXPXODWLYHWUDQVODWLRQDGMXVWPHQWLQWRQHW
LQFRPHZKHQDSDUHQWHLWKHUVHOOVDSDUWRUDOORILWVLQYHVWPHQWLQDIRUHLJQHQWLW\RUQRORQJHUKROGVDFRQWUROOLQJILQDQFLDO
LQWHUHVWLQDVXEVLGLDU\RUJURXSRIDVVHWVWKDWLVDEXVLQHVVZLWKLQDIRUHLJQHQWLW\7KLVVWDQGDUGXSGDWHLVHIIHFWLYH
SURVSHFWLYHO\IRUILVFDO\HDUVDQGLQWHULPUHSRUWLQJSHULRGVZLWKLQWKRVH\HDUVEHJLQQLQJDIWHU'HFHPEHU7KH
&RPSDQ\LVFXUUHQWO\HYDOXDWLQJWKHLPSDFWRIDGRSWLQJWKLVJXLGDQFH
,Q)HEUXDU\WKH)$6%LVVXHG$685HSRUWLQJRI$PRXQWV5HFODVVLILHG2XWRI$FFXPXODWHG2WKHU
&RPSUHKHQVLYH,QFRPH7KLVVWDQGDUGUHTXLUHVDGGLWLRQDOGLVFORVXUHVUHJDUGLQJWKHUHSRUWLQJRIUHFODVVLILFDWLRQVRXWRI
DFFXPXODWHGRWKHUFRPSUHKHQVLYHLQFRPH$2&,7KLVVWDQGDUGXSGDWHLVHIIHFWLYHIRUUHSRUWLQJSHULRGVEHJLQQLQJDIWHU
'HFHPEHU7KH&RPSDQ\DGRSWHGWKLVJXLGDQFHGXULQJWKHILUVWTXDUWHURI
,QDQGWKH)$6%LVVXHG$68,QWDQJLEOHV*RRGZLOODQG2WKHU7RSLF7HVWLQJ*RRGZLOOIRU
,PSDLUPHQWDQG$68,QWDQJLEOHV*RRGZLOODQG2WKHU7RSLF7HVWLQJ,QGHILQLWH/LYHG,QWDQJLEOHV$VVHWVIRU
,PSDLUPHQW7KHREMHFWLYHRIWKHVHVWDQGDUGXSGDWHVZDVWRUHGXFHWKHFRVWVDQGFRPSOH[LW\RISHUIRUPLQJLPSDLUPHQWWHVWV
IRUJRRGZLOODQGLQGHILQLWHOLYHGLQWDQJLEOHDVVHWVE\SURYLGLQJHQWLWLHVDQRSWLRQWRSHUIRUPDTXDOLWDWLYHDVVHVVPHQWWR
GHWHUPLQHZKHWKHUIXUWKHULPSDLUPHQWWHVWLQJLVQHFHVVDU\7KH&RPSDQ\DGRSWHGWKLVJXLGDQFHLQFRQMXQFWLRQZLWKLWV
DQQXDOLPSDLUPHQWWHVWLQJ
,QWKHILUVWTXDUWHURIWKH&RPSDQ\DGRSWHG$68&RPSUHKHQVLYH,QFRPH7RSLFZKLFKUHYLVHGWKH
PDQQHULQZKLFKWKH&RPSDQ\SUHVHQWVFRPSUHKHQVLYHLQFRPHLQWKHILQDQFLDOVWDWHPHQWV7KHQHZJXLGDQFHUHTXLUHVHQWLWLHV
WRUHSRUWFRPSRQHQWVRIFRPSUHKHQVLYHLQFRPHLQHLWKHUFRQWLQXRXVVWDWHPHQWRIFRPSUHKHQVLYHLQFRPHRUWZRVHSDUDWH
EXWFRQVHFXWLYHVWDWHPHQWV7KH$68GLGQRWFKDQJHWKHLWHPVWKDWPXVWEHUHSRUWHGLQRWKHUFRPSUHKHQVLYHLQFRPH
,Q'HFHPEHUWKH)$6%LVVXHGJXLGDQFHHQKDQFLQJGLVFORVXUHUHTXLUHPHQWVRQWKHQDWXUHRIDQHQWLW\VULJKWWRRIIVHWDQG
UHODWHGDUUDQJHPHQWVDVVRFLDWHGZLWKLWVILQDQFLDODQGGHULYDWLYHLQVWUXPHQWV7KHQHZJXLGDQFHUHTXLUHVWKHGLVFORVXUHRIWKH
JURVVDPRXQWVVXEMHFWWRULJKWVRIVHWRIIDPRXQWVRIIVHWLQDFFRUGDQFHZLWKWKHDFFRXQWLQJVWDQGDUGVIROORZHGDQGWKHUHODWHG
QHWH[SRVXUH7KHQHZGLVFORVXUHUHTXLUHPHQWVDUHHIIHFWLYHIRUDQQXDOUHSRUWLQJSHULRGVEHJLQQLQJRQRUDIWHU-DQXDU\
DQGLQWHULPSHULRGVWKHUHLQ7KHDGRSWLRQRIWKLVJXLGDQFHGLGQRWKDYHDPDWHULDOLPSDFWWR&RPSDQ\VFRQVROLGDWHGILQDQFLDO