Toro 2008 Annual Report Download - page 26

ITEM 2. PROPERTIES
As of October 31, 2008, we utilized manufacturing, distribution, warehouse, and office facilities totaling approximately 5.6 million square feet of space.
We also had approximately 72 acres of excess land in Wisconsin adjacent to a distribution center, 36 acres of land in Minnesota utilized as a testing
and storage facility, 15 acres of land in Minnesota held for future expansion, 21 acres of land in California used as a testing facility, and 2 acres of
land in Nebraska used as a parking lot. Plant utilization varies during the year depending on the production cycle. We consider each of our current
facilities in use to be in good operating condition and adequate for its present use. Management believes we have sufficient manufacturing capacity
for fiscal 2009. The below schedule outlines our significant facilities by location, ownership, and function as of October 31, 2008:
Location Ownership Products Manufactured / Use
Bloomington, MN Owned/Leased Corporate headquarters, warehouse, and test facility
El Paso, TX Owned/Leased Components for professional and residential products, distribution center
Plymouth, WI Owned Professional and residential parts distribution center
Juarez, Mexico Leased Professional and residential products
Tomah, WI Owned/Leased Professional products and warehouse
Windom, MN Owned/Leased Residential and professional products and warehouse
Baraboo, WI Leased Professional and residential distribution center
Beatrice, NE Owned/Leased Professional products, office, and test facility
Riverside, CA Owned/Leased Office and test facility
Lakeville, MN Leased Residential and professional distribution center
Lincoln, NE Leased Professional distribution center
Hertfordshire, United Kingdom Owned Professional and residential products and distribution center, office
Shakopee, MN Owned Components for professional and residential products
Braeside, Australia Leased Distribution facility
El Cajon, CA Owned/Leased Professional and residential products and distribution center, office
Brooklyn Center, MN Leased Distribution facility and office
Hazelwood, MO Leased Distribution facility and office
Sanford, FL Leased Professional products and distribution center
Fiano Romano, Italy Owned Professional products and warehouse, office
Beverley, Australia Owned Professional products, office and distribution center
Capena, Italy Leased Distribution facility
Oevel, Belgium Owned Distribution facility and office
Abilene, TX Leased Office, professional products, and service center
being a defendant in patent infringement litigation. We are cur-
ITEM 3. LEGAL PROCEEDINGS
rently involved in patent litigation cases, both where we are assert-
ing patents and where we are defending against charges of
General
infringement.
We are a party to litigation in the ordinary course of business.
Litigation occasionally involves claims for punitive as well as com-
Lawnmower Engine Horsepower Marketing and Sales
pensatory damages arising out of use of our products. Although
Practices Litigation
we are self-insured to some extent, we maintain insurance against
In June 2004, individuals who claim to have purchased
certain product liability losses. We are also subject to administra-
lawnmowers in Illinois and Minnesota filed a class action lawsuit in
tive proceedings with respect to claims involving the discharge of
Illinois state court against us and other defendants alleging that the
hazardous substances into the environment. Some of these claims
horsepower labels on the products the plaintiffs purchased were
assert damages and liability for remedial investigations and clean
inaccurate. Those individuals later amended their complaint to add
up costs. We are also typically involved in commercial disputes,
additional plaintiffs and an additional defendant. The plaintiffs
employment disputes, and patent litigation cases in the ordinary
asserted violations of the federal Racketeer Influenced and Corrupt
course of business. To prevent possible infringement of our pat-
Organizations Act (‘‘RICO’’) and state statutory and common law
ents by others, we periodically review competitors’ products. To
claims. The plaintiffs sought certification of a class of all persons in
avoid potential liability with respect to others’ patents, we regularly
the United States who, beginning January 1, 1994 through the pre-
review certain patents issued by the USPTO and foreign patent
sent, purchased a lawnmower containing a two-stroke or
offices. We believe these activities help us minimize our risk of
four-stroke gas combustible engine up to 30 horsepower that was
manufactured or sold by the defendants. The amended complaint
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