Black & Decker 2013 Annual Report Download - page 78


VWDWHPHQWV
%$&&28176$1'127(65(&(,9$%/(
0LOOLRQVRI'ROODUV  
7UDGHDFFRXQWVUHFHLYDEOH    
7UDGHQRWHVUHFHLYDEOH   
2WKHUDFFRXQWVUHFHLYDEOH  
*URVVDFFRXQWVDQGQRWHVUHFHLYDEOH  
$OORZDQFHIRUGRXEWIXODFFRXQWV 
$FFRXQWVDQGQRWHVUHFHLYDEOHQHW    
/RQJWHUPWUDGHQRWHVUHFHLYDEOHQHW    
7UDGHUHFHLYDEOHVDUHGLVSHUVHGDPRQJDODUJHQXPEHURIUHWDLOHUVGLVWULEXWRUVDQGLQGXVWULDODFFRXQWVLQPDQ\FRXQWULHV
$GHTXDWHUHVHUYHVKDYHEHHQHVWDEOLVKHGWRFRYHUDQWLFLSDWHGFUHGLWORVVHV/RQJWHUPWUDGHILQDQFLQJUHFHLYDEOHVRI
PLOOLRQDQGPLOOLRQDW'HFHPEHUDQG'HFHPEHUUHVSHFWLYHO\DUHUHSRUWHGZLWKLQ2WKHU$VVHWVLQWKH
&RQVROLGDWHG%DODQFH6KHHWV)LQDQFLQJUHFHLYDEOHVDQGORQJWHUPILQDQFLQJUHFHLYDEOHVDUHSUHGRPLQDWHO\UHODWHGWRFHUWDLQ
VHFXULW\HTXLSPHQWOHDVHVZLWKFRPPHUFLDOEXVLQHVVHV*HQHUDOO\WKH&RPSDQ\UHWDLQVOHJDOWLWOHWRDQ\HTXLSPHQWOHDVHVDQG
EHDUVWKHULJKWWRUHSRVVHVVVXFKHTXLSPHQWLQDQHYHQWRIGHIDXOW$OOILQDQFLQJUHFHLYDEOHVDUHLQWHUHVWEHDULQJDQGWKH
&RPSDQ\KDVQRWFODVVLILHGDQ\ILQDQFLQJUHFHLYDEOHVDVKHOGIRUVDOH,QWHUHVWLQFRPHHDUQHGIURPILQDQFLQJUHFHLYDEOHVWKDW
DUHQRWGHOLQTXHQWLVUHFRUGHGRQWKHHIIHFWLYHLQWHUHVWPHWKRG7KH&RPSDQ\FRQVLGHUVDQ\ILQDQFLQJUHFHLYDEOHWKDWKDVQRW
EHHQFROOHFWHGZLWKLQGD\VRIRULJLQDOELOOLQJGDWHDVSDVWGXHRUGHOLQTXHQW$GGLWLRQDOO\WKH&RPSDQ\FRQVLGHUVWKHFUHGLW
TXDOLW\RIDOOSDVWGXHRUGHOLQTXHQWILQDQFLQJUHFHLYDEOHVDVQRQSHUIRUPLQJ
7KH&RPSDQ\KDVDQDFFRXQWVUHFHLYDEOHVDOHSURJUDPWKDWH[SLUHVRQ'HFHPEHU$FFRUGLQJWRWKHWHUPVRIWKDW
SURJUDPWKH&RPSDQ\LVUHTXLUHGWRVHOOFHUWDLQRILWVWUDGHDFFRXQWVUHFHLYDEOHVDWIDLUYDOXHWRDZKROO\RZQHGFRQVROLGDWHG
EDQNUXSWF\UHPRWHVSHFLDOSXUSRVHVXEVLGLDU\³%56´7KH%56LQWXUQPXVWVHOOVXFKUHFHLYDEOHVWRDWKLUGSDUW\ILQDQFLDO
LQVWLWXWLRQ³3XUFKDVHU´IRUFDVKDQGDGHIHUUHGSXUFKDVHSULFHUHFHLYDEOH7KH3XUFKDVHU¶VPD[LPXPFDVKLQYHVWPHQWLQWKH
UHFHLYDEOHVDWDQ\WLPHLVPLOOLRQ7KHSXUSRVHRIWKHSURJUDPLVWRSURYLGHOLTXLGLW\WRWKH&RPSDQ\7KH&RPSDQ\
DFFRXQWVIRUWKHVHWUDQVIHUVDVVDOHVXQGHU$6&³7UDQVIHUVDQG6HUYLFLQJ´5HFHLYDEOHVDUHGHUHFRJQL]HGIURPWKH
&RPSDQ\¶V&RQVROLGDWHG%DODQFH6KHHWVZKHQWKH%56VHOOVWKRVHUHFHLYDEOHVWRWKH3XUFKDVHU7KH&RPSDQ\KDVQRUHWDLQHG
LQWHUHVWVLQWKHWUDQVIHUUHGUHFHLYDEOHVRWKHUWKDQFROOHFWLRQDQGDGPLQLVWUDWLYHUHVSRQVLELOLWLHVDQGLWVULJKWWRWKHGHIHUUHG
SXUFKDVHSULFHUHFHLYDEOH$W'HFHPEHUWKH&RPSDQ\GLGQRWUHFRUGDVHUYLFLQJDVVHWRUOLDELOLW\UHODWHGWRLWV
UHWDLQHGUHVSRQVLELOLW\EDVHGRQLWVDVVHVVPHQWRIWKHVHUYLFLQJIHHPDUNHWYDOXHVIRUVLPLODUWUDQVDFWLRQVDQGLWVFRVWRI
VHUYLFLQJWKHUHFHLYDEOHVVROG
$W'HFHPEHUDQG'HFHPEHUPLOOLRQDQGPLOOLRQUHVSHFWLYHO\RIQHWUHFHLYDEOHVZHUH
GHUHFRJQL]HG*URVVUHFHLYDEOHVVROGDPRXQWHGWRPLOOLRQPLOOLRQQHWIRUWKH\HDUHQGHG'HFHPEHU
DQGPLOOLRQPLOOLRQQHWIRUWKH\HDUHQGHG'HFHPEHU7KHVHVDOHVUHVXOWHGLQDSUHWD[ORVV
RIPLOOLRQDQGPLOOLRQIRUWKH\HDUVHQGHG'HFHPEHUDQG'HFHPEHUUHVSHFWLYHO\7KHVHSUHWD[
ORVVHVLQFOXGHVHUYLFLQJIHHVRIPLOOLRQDQGPLOOLRQIRUWKH\HDUVHQGHG'HFHPEHUDQG'HFHPEHU
UHVSHFWLYHO\3URFHHGVIURPWUDQVIHUVRIUHFHLYDEOHVWRWKH3XUFKDVHUWRWDOHGPLOOLRQDQGPLOOLRQIRUWKH
\HDUVHQGHG'HFHPEHUDQG'HFHPEHUUHVSHFWLYHO\&ROOHFWLRQVRISUHYLRXVO\VROGUHFHLYDEOHVLQFOXGLQJ
GHIHUUHGSXUFKDVHSULFHUHFHLYDEOHVDQGDOOIHHVZKLFKDUHVHWWOHGRQHPRQWKLQDUUHDUVUHVXOWHGLQSD\PHQWVWRWKH3XUFKDVHU
RIPLOOLRQDQGPLOOLRQIRUWKH\HDUVHQGHG'HFHPEHUDQG'HFHPEHUUHVSHFWLYHO\
7KH&RPSDQ\¶VULVNRIORVVIROORZLQJWKHVDOHRIWKHUHFHLYDEOHVLVOLPLWHGWRWKHGHIHUUHGSXUFKDVHSULFHUHFHLYDEOHZKLFKZDV
PLOOLRQDW'HFHPEHUDQGPLOOLRQDW'HFHPEHU7KHGHIHUUHGSXUFKDVHSULFHUHFHLYDEOHZLOOEH
UHSDLGLQFDVKDVUHFHLYDEOHVDUHFROOHFWHGJHQHUDOO\ZLWKLQGD\VDQGDVVXFKWKHFDUU\LQJYDOXHRIWKHUHFHLYDEOHUHFRUGHG
DSSUR[LPDWHVIDLUYDOXH'HOLQTXHQFLHVDQGFUHGLWORVVHVRQUHFHLYDEOHVVROGZHUHPLOOLRQIRUWKH\HDUHQGHG
'HFHPEHUDQGPLOOLRQIRUWKH\HDUHQGHG'HFHPEHU&DVKLQIORZVUHODWHGWRWKHGHIHUUHGSXUFKDVHSULFH
UHFHLYDEOHWRWDOHGPLOOLRQIRUWKH\HDUHQGHG'HFHPEHUDQGPLOOLRQIRUWKH\HDUHQGHG'HFHPEHU
$OOFDVKIORZVXQGHUWKHSURJUDPDUHUHSRUWHGDVDFRPSRQHQWRIFKDQJHVLQDFFRXQWVUHFHLYDEOHZLWKLQRSHUDWLQJ
DFWLYLWLHVLQWKH&RQVROLGDWHG6WDWHPHQWVRI&DVK)ORZVVLQFHDOOWKHFDVKIURPWKH3XUFKDVHULVHLWKHUUHFHLYHGXSRQWKH
LQLWLDOVDOHRIWKHUHFHLYDEOHRUIURPWKHXOWLPDWHFROOHFWLRQRIWKHXQGHUO\LQJUHFHLYDEOHVDQGWKHXQGHUO\LQJUHFHLYDEOHVDUH
QRWVXEMHFWWRVLJQLILFDQWULVNVRWKHUWKDQFUHGLWULVNJLYHQWKHLUVKRUWWHUPQDWXUH