Toro 2011 Annual Report Download - page 26

ITEM 2. PROPERTIES
As of October 31, 2011, we utilized manufacturing, distribution, warehouse, and office facilities totaling approximately 5.5 million square feet of
space worldwide. 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, and 21 acres of land in California
used as a testing site. 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. Management believes we have sufficient manufacturing capacity for fiscal 2012. Our significant facilities
are listed below by location, ownership, and function as of October 31, 2011:
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, and 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 distribution center
Windom, MN Owned/Leased Residential and professional products, and warehouse
Beatrice, NE Owned/Leased Professional products, test facility, distribution center, and office
Riverside, CA Owned/Leased Professional products, test facility, distribution center, and office
Lakeville, MN Leased Residential and professional distribution center
Hertfordshire, United Kingdom Owned Professional and residential products, distribution center, test lab, and office
Ploiesti, Romania Owned Professional products, distribution center, and office
Shakopee, MN Owned Components for professional and residential products
Braeside, Australia Leased Distribution center and service area
El Cajon, CA Owned/Leased Professional and residential products, distribution center, test lab, and office
Brooklyn Center, MN Leased Distribution facility, service area, and office
St. Louis, MO Leased Distribution facility, service area, and office
Sanford, FL Leased Professional products and distribution center
Fiano Romano, Italy Owned Professional products, distribution center, and office
Beverley, Australia Owned Professional products, distribution center, service area, and office
Capena, Italy Leased Distribution center
Oevel, Belgium Owned Distribution center, service area, and office
Kent, WA Leased Distribution facility, service area, and office
Abilene, TX Leased Office, professional products, and service center
products. To avoid potential liability with respect to others’ patents,
ITEM 3. LEGAL PROCEEDINGS
we regularly review certain patents issued by the USPTO and for-
eign patent offices. We believe these activities help us minimize
We are a party to litigation in the ordinary course of business.
our risk of being a defendant in patent infringement litigation. We
Litigation occasionally involves claims for punitive as well as com-
are currently involved in patent litigation cases where we are
pensatory damages arising out of use of our products. Although
asserting and defending against patent infringement.
we are self-insured to some extent, we maintain insurance against
For a description of our material legal proceedings, see Note 13
certain product liability losses. We are also subject to litigation and
of the Notes to Consolidated Financial Statements under the head-
administrative and judicial proceedings with respect to claims
ing ‘‘Commitments and Contingent Liabilities — Litigation’’ included
involving asbestos and the discharge of hazardous substances into
in Item 8, Financial Statements and Supplementary Data of this
the environment. Some of these claims assert damages and liabil-
Annual Report on Form 10-K, which is incorporated into this Item 3
ity for personal injury, remedial investigations or clean-up and
by reference.
other costs and damages. We are also typically involved in com-
mercial disputes, employment disputes, and patent litigation cases
ITEM 4. (REMOVED AND RESERVED)
in the ordinary course of business. To prevent possible infringe-
ment of our patents by others, we periodically review competitors’
20