Toro 2010 Annual Report Download - page 54

separately from operating activities. Cash flows from foreign cur-
Net Earnings Per Share
rency transactions and operations are translated at an average
Basic net earnings per share is calculated using net earnings avail-
exchange rate for the period. Cash paid for acquisitions is classi-
able to common stockholders divided by the weighted-average
fied as investing activities.
number of shares of common stock outstanding during the year
plus the assumed issuance of contingent shares. Diluted net earn-
Statement of Stockholders’ Equity and Comprehensive
ings per share is similar to basic net earnings per share except
Income Information
that the weighted-average number of shares of common stock out-
Components of accumulated other comprehensive loss as of Octo-
standing plus the assumed issuance of contingent shares is
ber 31 were as follows:
increased to include the number of additional shares of common
stock that would have been outstanding assuming the issuance of
2010 2009 2008
all potentially dilutive shares, such as common stock to be issued
upon exercise of options, contingently issuable shares, and Foreign currency translation adjustment $3,008 $ 2,368 $15,654
Adjustments to employee retirement benefits,
non-vested restricted shares.
net of tax 3,261 3,942 1,309
Reconciliations of basic and diluted weighted-average shares of Unrealized loss (gain) on derivative
common stock outstanding are as follows: instruments, net of tax 2,793 3,093 (8,419)
Total accumulated other comprehensive loss $9,062 $ 9,403 $ 8,544
BASIC
(Shares in thousands)
Fiscal years ended October 31 2010 2009 2008 New Accounting Pronouncements Adopted
In April 2008, the Financial Accounting Standards Board (‘‘FASB’’)
Weighted-average number of shares of
common stock 32,980 35,784 37,730 issued revised guidance on determining the useful life of intangible
Assumed issuance of contingent shares 2 46 assets. The revised guidance amends the factors that should be
Weighted-average number of shares of considered in developing renewal or extension assumptions used
common stock and assumed issuance of to determine the useful life of a recognized intangible asset. The
contingent shares 32,982 35,788 37,736 revised guidance applies to intangible assets that are acquired
DILUTED individually or with a group of other assets and both intangible
(Shares in thousands) assets acquired in business combinations and asset acquisitions.
Fiscal years ended October 31 2010 2009 2008 The company adopted this revised guidance on November 1,
Weighted-average number of shares of 2009, as required and the adoption only has a prospective impact
common stock and assumed issuance of on its financial position or results of operations.
contingent shares 32,982 35,788 37,736 In December 2007, the FASB issued guidance for business
Effect of dilutive securities 455 452 843 combinations that requires most identifiable assets, liabilities, non-
Weighted-average number of shares of controlling interests, and goodwill acquired to be recorded at full
common stock, assumed issuance of fair value. It also establishes disclosure requirements that will
contingent and restricted shares, and effect enable users to evaluate the nature and financial effects of the
of dilutive securities 33,437 36,240 38,579
business combination. The company adopted this new guidance
Options to purchase an aggregate of 330,555, 1,406,871, and for any business combination occurring on or after November 1,
763,802 shares of common stock outstanding during fiscal 2010, 2009, as required. The adoption of the new guidance did not have
2009, and 2008, respectively, were excluded from the diluted net a material impact on the company’s financial position or results of
earnings per share calculation because their exercise prices were operations.
greater than the average market price of the company’s common In September 2006, the FASB issued guidance that establishes
stock during the same respective periods. a framework for measuring fair value, and expands disclosures
about fair value measurements. In February 2008, the FASB
Cash Flow Presentation deferred the implementation for certain nonfinancial assets and lia-
The consolidated statements of cash flows are prepared using the bilities. The company adopted the authoritative guidance issued by
indirect method which reconciles net earnings to cash flow from the FASB for nonfinancial assets and liabilities that are not
operating activities. The necessary adjustments include the required to be measured on a recurring basis during the first quar-
removal of timing differences between the occurrence of operating ter of fiscal 2010, as required, and for Level 1 and Level 2 fair
receipts and payments and their recognition in net earnings. The value measurements during the second quarter of fiscal 2010, as
adjustments also remove from operating activities cash flows aris- required. The adoption of the guidance had no impact on the com-
ing from investing and financing activities, which are presented pany’s financial position or results of operations.
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