Toro 2008 Annual Report Download - page 57

On January 19, 2007, the company completed the purchase of The components of other intangible assets were as follows:
certain assets and assumed certain liabilities of Allen Hover
Mower. Allen Hover Mower sells walk power mowers worldwide for
Estimated Gross
Life Carrying Accumulated
the golf course and grounds maintenance markets that are specifi-
October 31, 2008 (years) Amount Amortization Net
cally designed to perform well on steep inclines.
Patents 5-13 $ 7,653 $ (6,320) $ 1,333
The purchase price of these acquisitions was allocated to the
Non-compete agreements 2-10 2,439 (1,180) 1,259
identifiable assets acquired and liabilities assumed based on esti-
Customer-related 10-13 6,327 (928) 5,399
mates of their fair value, with the excess purchase price for busi-
Developed technology 2-10 7,586 (2,327) 5,259
ness acquisitions recorded as goodwill. These acquisitions were
Other 800 (800) –
immaterial based on the company’s consolidated financial condition
Total amortizable 24,805 (11,555) 13,250
and results of operations. See Note 4 for further details related to
Non-amortizable –
the acquired intangible assets.
tradename 5,578 – 5,578
Total other intangible
assets, net $30,383 $(11,555) $18,828
3OTHER INCOME, NET
Estimated Gross
Life Carrying Accumulated
Other income (expense) is as follows:
October 31, 2007 (Years) Amount Amortization Net
Patents 10-13 $ 6,553 $ (6,155) $ 398
Fiscal years ended October 31 2008 2007 2006
Non-compete agreements 2-10 1,400 (938) 462
Interest income $ 1,856 $3,148 $ 1,433
Customer-related 10-13 6,655 (504) 6,151
Gross finance charge revenue 1,032 1,791 2,557
Developed technology 2-10 3,490 (1,536) 1,954
Retail financing revenue 2,717 1,786 2,257
Other 800 (800) –
Foreign currency exchange rate (loss) gain (5,041) 1,330 961
Total amortizable 18,898 (9,933) 8,965
Gain on sale of a business 113 ––
Equity losses from investments (859) (361) (1,559)
Non-amortizable – tradename 5,710 – 5,710
Litigation recovery 1,025 50 862
Total other intangible assets,
Miscellaneous 1,370 1,279 1,039
net $24,608 $ (9,933) $14,675
Total $ 2,213 $9,023 $ 7,550 Amortization expense for intangible assets for the fiscal years
ended October 31, 2008, 2007, and 2006 was $1,938, $1,200, and
$864, respectively. Estimated amortization expense for the suc-
GOODWILL AND OTHER INTANGIBLE ceeding fiscal years is as follows: 2009, $1,946; 2010, $1,688;
4ASSETS 2011, $1,627; 2012, $1,595; 2013, $1,398; and after 2013, $4,996.
Goodwill – The changes in the net carrying amount of goodwill for
fiscal 2008 and 2007 were as follows: 5SHORT-TERM CAPITAL RESOURCES
Professional Residential
Segment Segment Total The company has a $225,000 unsecured senior five-year revolving
Balance as of October 31, 2006 $70,948 $10,521 $81,469 credit facility that expires in January 2012. The company had no
Goodwill acquired 4,290 – 4,290 outstanding borrowings under this credit facility as of October 31,
Translation adjustment 219 246 465 2008 and 2007. Interest expense on this credit line is determined
Balance as of October 31, 2007 $75,457 $10,767 $86,224 based on a LIBOR rate plus a basis point spread defined in the
Translation adjustment (1) (31) (32) credit agreement. In addition, the company’s non-U.S. operations
Balance as of October 31, 2008 $75,456 $10,736 $86,192 maintain unsecured short-term lines of credit of $15,627. These
facilities bear interest at various rates depending on the rates in
their respective countries of operation. The company had $2,326
and $372 outstanding as of October 31, 2008 and 2007, respec-
tively, under these lines of credit. The weighted-average interest
rate on short-term debt outstanding as of October 31, 2008 and
2007 was 6.25 percent and 6.89 percent, respectively. The com-
pany was in compliance with all covenants related to the lines of
credit described above as of October 31, 2008.
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