Toro 2009 Annual Report Download - page 58

GOODWILL AND OTHER INTANGIBLE
5ASSETS 6SHORT-TERM CAPITAL RESOURCES
Goodwill – The changes in the net carrying amount of goodwill for The company has a $225,000 unsecured senior five-year revolving
fiscal 2009 and 2008 were as follows: credit facility that expires in January 2012. The company had no
outstanding borrowings under this credit facility as of October 31,
2009 or 2008. Interest expense on this credit line is determined
Professional Residential
Segment Segment Total based on a LIBOR rate plus a basis point spread defined in the
credit agreement. In addition, the company’s non-U.S. operations
Balance as of October 31, 2007 $75,457 $10,767 $86,224
Translation adjustment (1) (31) (32) maintain unsecured short-term lines of credit of $21,656. These
facilities bear interest at various rates depending on the rates in
Balance as of October 31, 2008 $75,456 $10,736 $86,192
Translation adjustment 58 157 215 their respective countries of operation. The company had no out-
standing short-term debt as of October 31, 2009 and $2,326 out-
Balance as of October 31, 2009 $75,514 $10,893 $86,407
standing short-term debt as of October 31, 2008, under these lines
The components of other intangible assets were as follows: of credit. In addition, the company had $4,529 in short-term debt
for certain receivables the company has provided recourse with
Estimated Gross Red Iron as of October 31, 2009. The weighted-average interest
Life Carrying Accumulated rate on short-term debt outstanding as of October 31, 2008 was
October 31, 2009 (Years) Amount Amortization Net
6.25 percent. The company was in compliance with all covenants
Patents 5-13 $ 8,654 $ (6,641) $ 2,013 related to the lines of credit described above as of October 31,
Non-compete agreements 2-10 2,839 (1,517) 1,322
Customer-related 10-13 6,549 (1,458) 5,091 2009.
Developed technology 2-10 12,799 (3,182) 9,617
Other 800 (800) –
Total amortizable 31,641 (13,598) 18,043 7LONG-TERM DEBT
Non-amortizable – trade
name 5,281 – 5,281 A summary of long-term debt as of October 31 is as follows:
Total other intangible
assets, net $36,922 $(13,598) $23,324 2009 2008
7.800% Debentures, due June 15, 2027 $100,000 $100,000
Estimated Gross 6.625% Senior Notes, due May 1, 2037 123,296 123,234
Life Carrying Accumulated Other 5,515 7,557
October 31, 2008 (Years) Amount Amortization Net Total long-term debt 228,811 230,791
Patents 5-13 $ 7,653 $ (6,320) $ 1,333 Less current portion 3,765 3,276
Non-compete agreements 2-10 2,439 (1,180) 1,259 Long-term debt, less current portion $225,046 $227,515
Customer-related 10-13 6,327 (928) 5,399
Developed technology 2-10 7,586 (2,327) 5,259 On April 26, 2007, the company issued $125,000 in aggregate
Other 800 (800) – principal amount of 6.625% senior notes due May 1, 2037. The
Total amortizable 24,805 (11,555) 13,250 senior notes were priced at 98.513% of par value, and the result-
Non-amortizable – trade ing discount of $1,859 associated with the issuance of these senior
name 5,578 – 5,578 notes is being amortized over the term of the notes using the
Total other intangible effective interest rate method. The underwriting fee and direct debt
assets, net $30,383 $(11,555) $18,828 issue costs totaling $1,524 will be amortized over the life of the
Amortization expense for intangible assets for the fiscal years notes. Although the coupon rate of the senior notes is 6.625%, the
ended October 31, 2009, 2008, and 2007 was $2,504, $1,938, and effective interest rate is 6.741% after taking into account the issu-
$1,200, respectively. Estimated amortization expense for the suc- ance discount. Interest on the senior notes is payable
ceeding fiscal years is as follows: 2010, $2,575; 2011, $2,509; semi-annually on May 1 and November 1 of each year. The senior
2012, $2,473; 2013, $2,280; 2014, $1,945; and after 2014, $6,261. notes are unsecured senior obligations of the company and rank
equally with the company’s other unsecured and unsubordinated
indebtedness from time to time outstanding. The indentures under
which the senior notes were issued contain customary covenants
and event of default provisions. The company may redeem some
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