Toro 2012 Annual Report Download - page 58
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Please find page 58 of the 2012 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.value and common requirements for measurement of and disclo-
New Accounting Pronouncements Adopted
sure regarding fair value between U.S. GAAP and International
In July 2012, the Financial Accounting Standards Board (‘‘FASB’’)
Financial Reporting Standards. Specifically, the amendments clarify
issued Accounting Standards Update (‘‘ASU’’) No. 2012-02,
the application of existing fair value measurement and disclosure
Intangibles – Goodwill and Other (Topic 350) – Testing Indefinite-
requirements, including: a) application of the highest and best use
Lived Intangible Assets for Impairment. ASU No. 2012-02 permits
and valuation premise concepts, b) measurement of the fair value
an entity to first assess qualitative factors to determine whether it
of an instrument classified in a reporting entity’s shareholders
is more likely than not that an indefinite-life intangible asset is
equity, and c) quantitative disclosure about the unobservable
impaired as a basis for determining whether it is necessary to per-
inputs used in a fair value measurement that is categorized within
form quantitative impairment in accordance with Subtopic 350-30,
Level 3 of the fair value hierarchy. The amendments also change a
Intangibles – Goodwill and Other – General Intangibles Other than
particular principle or requirement for fair value measurement and
Goodwill. The more-likely-than-not threshold is defined as having a
disclosure, including: a) measurement of the fair value of financial
likelihood of more than 50 percent. ASU No. 2012-02 is effective
instruments that are managed within a portfolio, b) application of
for annual and interim impairment tests performed for fiscal years
premiums and discounts in a fair value measurement, and
beginning after September 15, 2012 and early adoption is permit-
c) additional disclosure about fair value measurements. The com-
ted. The company adopted ASU No. 2012-02, as permitted, for its
pany adopted the amendments of ASU No. 2011-04 at the begin-
annual impairment test for its fiscal year ended October 31, 2012.
ning of its fiscal 2012 second quarter, as required. The adoption of
The adoption did not have a material impact on the company’s
this guidance did not have an impact on the company’s consoli-
consolidated financial statements.
dated financial statements.
In June 2011, the FASB issued ASU No. 2011-05, Comprehen-
sive Income (Topic 220) – Presentation of Comprehensive Income.
ASU No. 2011-05 guidance amended the presentation of compre-
hensive income to allow an entity the option to present the total of 2ACQUISITIONS
comprehensive income, the components of net income, and the
components of other comprehensive income either in a single con- On April 25, 2012, during the second quarter of fiscal 2012, the
tinuous statement of comprehensive income or in two separate but company completed the acquisition of certain assets for an equip-
consecutive statements. In both choices, an entity is required to ment line of concrete and mortar mixers, material handlers, com-
present each component of net income along with total net paction equipment, and other concrete power tools for the rental
income, each component of other comprehensive income along and construction market. On February 10, 2012, also during the
with a total for other comprehensive income, and a total amount second quarter of fiscal 2012, the company completed the acquisi-
for comprehensive income. The guidance eliminates the option to tion of certain assets and assumed certain liabilities for an equip-
present the components of other comprehensive income as part of ment line of vibratory plows, trenchers, and horizontal directional
the statement of changes in stockholders’ equity. In December drills for the underground utilities market. On December 9, 2011,
2011, the FASB issued ASU No. 2011-12, Deferral of the Effective during the first quarter of fiscal 2012, the company completed the
Date for Amendments to the Presentation of Reclassifications of acquisition of certain assets and assumed certain liabilities for a
Items Out of Accumulated Other Comprehensive Income in greens roller product line for the golf course market. The aggre-
Accounting Standards Update No. 2011-05. ASU No. 2011-12 gate purchase price of these acquisitions was $11,112, which
defers the changes in ASU No. 2011-05 of the requirement to included cash payments and issuance of a long-term note.
present separate line items on the income statement for reclassifi- On June 24, 2011, the company completed the acquisition of
cation adjustments of items out of accumulated other comprehen- certain assets of, and assumed certain liabilities for an equipment
sive income into net income. The effective date for ASU line of turf renovation equipment, including aerators, seeders, and
No. 2011-12 is consistent with the effective date for ASU power rakes, for the landscape, rental, municipal, and golf mar-
No. 2011-05, which is effective for fiscal years, and interim periods kets. On January 17, 2011, the company completed the acquisition
within those years, beginning after December 15, 2011, and is to of certain assets of, and assumed certain liabilities for a line of
be applied retrospectively; early adoption is permitted. The com- professionally installed landscape lighting fixtures and transformers
pany adopted this amended guidance in its fiscal 2012 fourth quar- for residential and commercial use. The aggregate net purchase
ter. The adoption of this guidance did not have a material impact price of these acquisitions during fiscal 2011 was $24,150, which
on the company’s consolidated financial statements. included cash payments, the issuance of long-term notes, and esti-
In May 2011, the FASB issued ASU No. 2011-04, Fair Value mated earnout considerations. The earnout considerations are
Measurement (Topic 820): Amendments to Achieve Common Fair based on annual financial results over certain thresholds as
Value Measurement and Disclosure Requirements in U.S. GAAP defined in the acquisition agreements.
and IFRS. The amendments result in a consistent definition of fair
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