Toro 2010 Annual Report Download - page 61

Download and view the complete annual report

Please find page 61 of the 2010 Toro annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 101

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101

Amounts recognized in net periodic benefit cost and other com- domestic distributorships, has been combined with the company’s
prehensive income consisted of: corporate activities and elimination of intersegment revenues and
expenses and is shown as ‘‘Other’’ due to the insignificance of the
segment.
Other
Defined Benefit Postretirement The Professional segment consists of turf equipment and irriga-
Fiscal years ended October 31 Pension Plans Benefit Plans Total tion products. Turf equipment products include sports fields and
2010 grounds maintenance equipment, golf course mowing and mainte-
Net (gain) loss $ (411) $ 669 $ 258 nance equipment, landscape contractor mowing equipment, land-
Curtailment gain (578) – (578) scape creation equipment, and other maintenance equipment. Irri-
Amortization of unrecognized gation products consist of sprinkler heads, electric and hydraulic
prior service (credit) cost (56) 121 65 valves, controllers, computer irrigation central control systems, and
Amortization of unrecognized
actuarial gain (351) (75) (426) micro-irrigation drip tape and hose products. These products are
sold mainly through a network of distributors and dealers to profes-
Total recognized in other
comprehensive (income) loss $(1,396) $ 715 $ (681) sional users engaged in maintaining golf courses, sports fields,
municipal properties, agricultural fields, and residential and com-
Total recognized in net periodic
benefit cost and other mercial landscapes, as well as directly to government customers
comprehensive (income) loss $(1,621) $1,266 $ (355) and rental companies.
2009 The Residential segment consists of walk power mowers, riding
Net loss (gain) $ 2,545 $ (675) $1,870 mowers, snow throwers, replacement parts, and home solutions
Amortization of unrecognized prior products, including trimmers, blowers, blower-vacuums, and under-
service cost 130 122 252 ground and hose-end retail irrigation products sold in Australia.
Amortization of unrecognized These products are sold to homeowners through a network of dis-
actuarial loss (gain) 632 (121) 511
tributors and dealers, and through a broad array of home centers,
Total recognized in other hardware retailers, and mass retailers, as well as over the Internet.
comprehensive loss (income) $ 3,307 $ (674) $2,633
The Other segment consists of the company’s distribution seg-
Total recognized in net periodic ment and corporate activities and elimination of intersegment reve-
benefit cost and other
nues and expenses. Corporate activities include general corporate
comprehensive loss $ 4,020 $ 242 $4,262
expenditures (finance, human resources, legal, information ser-
The company has omitted the remaining disclosures for its vices, public relations, and similar activities) and other unallocated
defined benefit plans and postretirement healthcare plan as the corporate assets and liabilities, such as corporate facilities, parts
company deems these plans to be immaterial to its consolidated inventory, and deferred tax assets.
financial position and results of operations. The accounting policies of the segments are the same as those
described in the summary of significant accounting policies in
Note 1. The company evaluates the performance of its Profes-
sional and Residential business segment results based on earn-
12 SEGMENT DATA
ings from operations plus other income (expense), net. Operating
The company’s businesses are organized, managed, and internally
loss for the Other segment includes earnings (loss) from domestic
grouped into segments based on differences in products and ser-
wholly owned distribution companies operations, corporate activi-
vices. Segment selection was based on the manner in which man-
ties, other income (expense), and interest expense. The business
agement organizes segments for making operating decisions and
segment’s operating profits or losses include direct costs incurred
assessing performance. The company has identified seven operat-
at the segment’s operating level plus allocated expenses, such as
ing segments and has aggregated those segments into three
profit sharing and manufacturing expenses. The allocated
reportable segments: Professional, Residential, and Distribution.
expenses represent costs that these operations would have
The aggregation of the company’s segments is based upon the
incurred otherwise but do not include general corporate expenses,
segments having the following similarities: economic characteris-
interest expense, and income taxes. The company accounts for
tics, types of products and services, types of production processes,
intersegment gross sales at current market prices.
type or class of customers, and method of distribution. The com-
pany’s Distribution segment, which consists of company-owned
55