Toro 2008 Annual Report Download - page 17

way we conduct our operations. Failure to comply with these regu- Employees
lations could lead to fines and other penalties. During fiscal 2008, we employed an average of 5,133 employees.
We are also involved in the evaluation and clean-up of a limited The total number of employees as of October 31, 2008 was 4,966.
number of properties currently and previously owned. We do not We consider our employee relations to be good. Three collective
expect that these matters will have a material adverse effect on bargaining agreements cover approximately 17 percent of these
our consolidated financial position or results of operations. employees. These three agreements expire in May 2010, October
2010, and October 2011. From time to time, we also retain consul-
Customer Financing tants, independent contractors, and temporary and part-time
Wholesale Financing. Toro Credit Company, our wholly owned workers.
finance subsidiary, provides financing for select products we manu-
facture for North American Toro distributors and approximately 170 Available Information
select U.S. dealers. Toro Credit Company purchases select receiv- Filings with the SEC. We are a reporting company under the
ables from Toro and our distributors for extended periods that Securities Exchange Act of 1934, as amended, and file reports,
assist the distributors and dealers in carrying representative inven- proxy statements, and other information with the Securities and
tories of equipment. Down payments are not required and, Exchange Commission (SEC). Copies of these reports, proxy
depending on the finance program for each product line, finance statements, and other information can be inspected and copied at
charges are incurred by us, shared between us and the distributor the SEC’s Public Reference Room at 100 F Street N.E., Washing-
and/or the dealer, or paid by the distributor or dealer. A security ton, D.C. 20549. You may obtain information on the operation of
interest is retained in the distributors’ and dealers’ inventories, and the Public Reference Room by calling the SEC at
those inventories are monitored regularly. Terms to the distributors 1-800-SEC-0330. Because we make filings to the SEC electroni-
and dealers require payment as the equipment, which secures the cally, you may also access this information from the SEC’s home
indebtedness, is sold to customers, or when payment terms page on the Internet at http://www.sec.gov.
become due, whichever occurs first. Rates are based on prime We make available, free of charge on our Internet web site
rate plus a fixed percentage that differs based on whether the www.thetorocompany.com (select the ‘‘Investor Information’’ link
financing is for a distributor or dealer. Rates may also vary based and then the ‘‘Financials’’ link), our annual reports on Form 10-K,
on the product that is financed. quarterly reports on Form 10-Q, current reports on Form 8-K,
Independent Toro dealers that do not finance through Toro proxy statements on Schedule 14A, amendments to those reports,
Credit Company finance their inventories with third party sources and other documents filed or furnished pursuant to Section 13(a)
or pay cash. The finance charges represent interest for a or 15(d) of the Securities Exchange Act of 1934, as amended, as
pre-established length of time based on a predefined rate by a soon as reasonably practicable after we electronically file such
contract with third party financing sources. Exmark and some inter- material with, or furnish it to, the SEC. The information contained
national products sold through dealers are financed primarily with on our web site or connected to our web site is not incorporated
third party financing sources or by the distributor. by reference into this Annual Report on Form 10-K and should not
be considered part of this report.
End-User Financing. We have agreements with a third party
financing company to provide lease-financing options to golf course Corporate Governance. We have a Code of Ethics for our CEO
and sports fields and grounds equipment customers in the United and Senior Financial Officers, a Code of Conduct for all employ-
States and Europe. The purpose of these agreements is to ees, and a Board of Directors Business Ethics Policy Statement.
increase sales by giving buyers of our products alternative financ- Copies of these documents are posted on our website at
ing options when purchasing our products. www.thetorocompany.com (select the ‘‘Investor Information’’ link
We also have a multi-year agreement with a third party financing and then the ‘‘Corporate Governance’’ link).
company to provide financing programs under a private label pro- We also make available, free of charge on our web site at
gram in the U.S. This program, offered primarily to Toro and www.thetorocompany.com (select the ‘‘Investor Information’’ link
Exmark dealers, provides end-user customers a revolving line of and then the ‘‘Corporate Governance’’ link) and in print to any
credit for Toro and Exmark products, parts, and services. shareholder who requests, our Corporate Governance Guidelines
and the charters of our Audit Committee, Compensation and
Distributor Financing. Occasionally, we enter into long-term Human Resources Committee, Nominating and Governance Com-
loan agreements with some distributors. These transactions are mittee, and Finance Committee of our Board of Directors.
used for expansion of the distributors’ businesses, acquisitions, Requests for copies can be directed to Investor Relations at
refinancing working capital agreements, or ownership transitions. 888-237-3054.
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