Black & Decker 2013 Annual Report Download - page 87
Download and view the complete annual report
Please find page 87 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.
$W'HFHPEHUWKH&RPSDQ\KDGIL[HGWRIORDWLQJLQWHUHVWUDWHVZDSVRQLWVPLOOLRQQRWHVSD\DEOHGXHLQ
7KHFDUU\LQJYDOXHRIWKHQRWHVSD\DEOHGXHLQLQFOXGHVDORVVRIPLOOLRQSHUWDLQLQJWRWKHIDLUYDOXHDGMXVWPHQWRIWKH
VZDSVDQGPLOOLRQSHUWDLQLQJWRWKHXQDPRUWL]HGJDLQ RQ SUHYLRXVO\WHUPLQDWHGVZDSV DQG D PLOOLRQXQDPRUWL]HG
GLVFRXQWRQWKHQRWHV
$W'HFHPEHUWKH&RPSDQ\KDGIL[HGWRIORDWLQJLQWHUHVWUDWHVZDSVRQLWVPLOOLRQQRWHVSD\DEOHGXHLQ
7KHFDUU\LQJYDOXHRIWKHQRWHVSD\DEOHGXHLQLQFOXGHVDORVVRIPLOOLRQSHUWDLQLQJWRWKHIDLUYDOXHDGMXVWPHQWRIWKH
VZDSVDQGDPLOOLRQXQDPRUWL]HGGLVFRXQWRQWKHQRWHV
8QDPRUWL]HGJDLQVDQGIDLUYDOXHDGMXVWPHQWVDVVRFLDWHGZLWKLQWHUHVWUDWHVZDSVDUHPRUHIXOO\GLVFXVVHGLQ1RWH,'HULYDWLYH
)LQDQFLDO,QVWUXPHQWV
&RPPHUFLDO3DSHUDQG&UHGLW)DFLOLWLHV
$W'HFHPEHUWKH&RPSDQ\KDGPLOOLRQRIFRPPHUFLDOSDSHUERUURZLQJVRXWVWDQGLQJDQGDW'HFHPEHU
WKH&RPSDQ\KDGQRFRPPHUFLDOSDSHUERUURZLQJVRXWVWDQGLQJDJDLQVWWKH&RPSDQ\¶VELOOLRQFRPPHUFLDOSDSHUSURJUDP
,Q-XQHWKH&RPSDQ\WHUPLQDWHGLWVIRXU\HDUELOOLRQFRPPLWWHGFUHGLWIDFLOLW\ZLWKWKHFRQFXUUHQWH[HFXWLRQRIDQHZ
ILYH\HDUELOOLRQFRPPLWWHGFUHGLWIDFLOLW\WKH³&UHGLW$JUHHPHQW´%RUURZLQJVXQGHUWKH&UHGLW$JUHHPHQWPD\LQFOXGH
86'ROODUVXSWRWKHELOOLRQFRPPLWPHQWRULQ(XURRU3RXQGV6WHUOLQJVXEMHFWWRDIRUHLJQFXUUHQF\VXEOLPLWRI
PLOOLRQDQGEHDULQWHUHVWDWDIORDWLQJUDWHGHSHQGHQWXSRQWKHGHQRPLQDWLRQRIWKHERUURZLQJ5HSD\PHQWVPXVWEHPDGHRQ-XQH
RUXSRQDQHDUOLHUWHUPLQDWLRQGDWHRIWKH&UHGLW$JUHHPHQWDWWKHHOHFWLRQRIWKH&RPSDQ\6LPXOWDQHRXVO\WKH&RPSDQ\
WHUPLQDWHGLWVELOOLRQGD\FRPPLWWHGFUHGLWIDFLOLW\ZLWKWKHFRQFXUUHQWH[HFXWLRQRIDQHZPLOOLRQGD\FRPPLWWHG
FUHGLWIDFLOLW\WKH)DFLOLW\7KH)DFLOLW\FRQWDLQVDRQH\HDUWHUPRXWSURYLVLRQDQGERUURZLQJVXQGHUWKH)DFLOLW\PD\LQFOXGH
86'ROODUVXSWRWKHPLOOLRQFRPPLWPHQWRULQ(XURRU3RXQGV6WHUOLQJVXEMHFWWRDIRUHLJQFXUUHQF\VXEOLPLWRI
PLOOLRQDQGEHDULQWHUHVWDWDIORDWLQJUDWHGHSHQGHQWXSRQWKHGHQRPLQDWLRQRIWKHERUURZLQJ5HSD\PHQWVPXVWEHPDGHE\-XQH
XQOHVVWKHRQH\HDUWHUPRXWHOHFWLRQLVPDGHRUXSRQDQHDUOLHUWHUPLQDWLRQGDWHRIWKH)DFLOLW\DWWKHHOHFWLRQRIWKH
&RPSDQ\7KH&UHGLW$JUHHPHQWDQG)DFLOLW\DUHGHVLJQDWHGWREHDOLTXLGLW\EDFNVWRSIRUWKH&RPSDQ\VELOOLRQFRPPHUFLDO
SDSHUSURJUDP$VRI'HFHPEHUWKH&RPSDQ\KDVQRWGUDZQRQHLWKHURIWKHVHFRPPLWPHQWV
,QDGGLWLRQWKH&RPSDQ\KDVVKRUWWHUPOLQHVRIFUHGLWWKDWDUHSULPDULO\XQFRPPLWWHGZLWKQXPHURXVEDQNVDJJUHJDWLQJ
PLOOLRQRIZKLFKPLOOLRQZDVDYDLODEOHDW'HFHPEHU6KRUWWHUPDUUDQJHPHQWVDUHUHYLHZHGDQQXDOO\IRUUHQHZDO
7KHDJJUHJDWHDPRXQWRIFRPPLWWHGDQGXQFRPPLWWHGORQJDQGVKRUWWHUPOLQHVLVELOOLRQRIZKLFKPLOOLRQLVUHFRUGHG
DVVKRUWWHUPERUURZLQJVDW'HFHPEHUH[FOXGLQJFRPPHUFLDOSDSHUERUURZLQJVRXWVWDQGLQJXQGHUWKHFRPPHUFLDOSDSHU
SURJUDP,QDGGLWLRQPLOOLRQRIWKHVKRUWWHUPFUHGLWOLQHVZDVXWLOL]HGSULPDULO\SHUWDLQLQJWRRXWVWDQGLQJOHWWHUVRIFUHGLW
IRUZKLFKWKHUHDUHQRUHTXLUHGRUUHSRUWHGGHEWEDODQFHV7KHZHLJKWHGDYHUDJHLQWHUHVWUDWHVRQVKRUWWHUPERUURZLQJVSULPDULO\
FRPPHUFLDOSDSHUIRUWKHILVFDO\HDUVHQGHG'HFHPEHUDQG'HFHPEHUZHUHDQGUHVSHFWLYHO\
(TXLW\8QLWV
2Q'HFHPEHUWKH&RPSDQ\LVVXHG(TXLW\8QLWVWKH³(TXLW\8QLWV´HDFKZLWKDVWDWHGYDOXHRI7KH
(TXLW\8QLWVDUHLQLWLDOO\FRPSULVHGRIDRUXQGLYLGHGEHQHILFLDORZQHUVKLSLQDSULQFLSDODPRXQWMXQLRU
VXERUGLQDWHGQRWHGXHWKH³-XQLRU6XERUGLQDWHG1RWH´DQGDIRUZDUGFRPPRQVWRFNSXUFKDVHFRQWUDFWWKH³(TXLW\
3XUFKDVH &RQWUDFW´ 7KH &RPSDQ\ UHFHLYHG DSSUR[LPDWHO\ PLOOLRQ LQ FDVK SURFHHGV IURP WKH (TXLW\ 8QLWV QHW RI
XQGHUZULWLQJGLVFRXQWVDQGFRPPLVVLRQVEHIRUHRIIHULQJH[SHQVHVDQGUHFRUGHGPLOOLRQLQORQJWHUPGHEW7KHSURFHHGV
ZHUHXVHGSULPDULO\WRUHSD\FRPPHUFLDOSDSHUERUURZLQJV7KH&RPSDQ\DOVRXVHGPLOOLRQRIWKHSURFHHGVWRHQWHULQWR
FDSSHGFDOOWUDQVDFWLRQVXWLOL]HGWRKHGJHSRWHQWLDOHFRQRPLFGLOXWLRQDVGHVFULEHGLQPRUHGHWDLOEHORZ
(TXLW\3XUFKDVH&RQWUDFWV
(DFK(TXLW\3XUFKDVH&RQWUDFWREOLJDWHVWKHKROGHUVWRSXUFKDVHRQ1RYHPEHUIRUDSULFHRIEHWZHHQDQG
VKDUHVRIWKH&RPSDQ\¶VFRPPRQVWRFNVXEMHFWWRFXVWRPDU\DQWLGLOXWLRQDGMXVWPHQWVRUDSSUR[LPDWHO\WRPLOOLRQ
FRPPRQVKDUHVUHVSHFWLYHO\,IDIXQGDPHQWDOFKDQJHRFFXUVLQFHUWDLQFLUFXPVWDQFHVWKHQXPEHURIVKDUHVRIFRPPRQVWRFN
GHOLYHUDEOHXSRQVHWWOHPHQWRIWKH(TXLW\3XUFKDVH&RQWUDFWVZLOOEHLQFUHDVHGE\DPDNHZKROHDPRXQWUHVXOWLQJLQWKHLVVXDQFH
RID PD[LPXP RIDSSUR[LPDWHO\ PLOOLRQ VKDUHVRIFRPPRQ VWRFN 8SRQVHWWOHPHQWRI WKH (TXLW\3XUFKDVH&RQWUDFWV RQ
1RYHPEHUWKH&RPSDQ\H[SHFWVWRUHFHLYHDGGLWLRQDOFDVKSURFHHGVRIPLOOLRQ7KH-XQLRU6XERUGLQDWHG
1RWHVGHVFULEHGIXUWKHUEHORZDUHLQLWLDOO\SOHGJHGDVFROODWHUDOWRVHFXUHWKHKROGHUV¶REOLJDWLRQVWRSXUFKDVHWKH&RPSDQ\¶V
FRPPRQVWRFN XQGHU WKHWHUPVRI WKH(TXLW\3XUFKDVH &RQWUDFWV(TXLW\3XUFKDVH &RQWUDFW KROGHUVPD\HOHFW WRVHWWOHWKHLU
REOLJDWLRQVXQGHUWKH(TXLW\3XUFKDVH&RQWUDFWVHDUO\LQFDVK