Toro 2012 Annual Report Download - page 62
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Please find page 62 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.action, approximately 29.4 million shares were issued to sharehold- Components of the provision for income taxes were as follows:
ers of record as of June 15, 2012. The par value of the common
stock remains at $1.00 per share and; accordingly, approximately Fiscal years ended October 31 2012 2011 2010
$29,390 was transferred from retained earnings to common stock. Provision for income taxes:
Current –
Stock Repurchase Program. On December 1, 2010, the com- Federal $59,405 $47,922 $34,582
pany’s Board of Directors authorized the repurchase of 6 million State 4,609 3,963 2,918
shares of the company’s common stock (as adjusted from the orig- Non-U.S. 3,854 7,103 4,436
inal amount of 3 million shares in connection with the company’s Current provision $67,868 $58,988 $41,936
two-for-one stock split discussed above) in open-market or in pri- Deferred –
vately negotiated transactions. This program has no expiration date Federal $ (685) $ (31) $ 5,305
but may be terminated by the Board at any time. During fiscal State (132) (211) 198
2012, 2011, and 2010, the company paid $92,719, $129,955, and Non-U.S. (330) (1,578) 592
$135,777 to repurchase an aggregate of 2,591,039 shares, Deferred benefit (1,147) (1,820) 6,095
4,592,760 shares, and 5,356,948 shares, respectively. As of Octo- Total provision for income taxes $66,721 $57,168 $48,031
ber 31, 2012, 1,474,677 shares remained authorized for As of October 31, 2012, the company had net operating loss
repurchase. carryforwards of approximately $15,386 in foreign jurisdictions with
On December 11, 2012, the company’s Board of Directors unlimited expiration.
authorized the repurchase of up to an additional 5 million shares of Earnings before income taxes were as follows:
the company’s common stock in open-market or in privately negoti-
ated transactions. This repurchase program has no expiration date
Fiscal years ended October 31 2012 2011 2010
but may be terminated by the Board at any time.
Earnings before income taxes:
Treasury Shares. As of October 31, 2012, the company had U.S. $189,206 $160,444 $127,508
19,797,958 treasury shares at a cost of $1,012,536. As of Octo- Non-U.S. 7,056 14,382 13,760
ber 31, 2011, the company had 48,858,250 treasury shares at a Total $196,262 $174,826 $141,268
cost of $984,583. On November 30, 2011, the company’s Board of During the fiscal years ended October 31, 2012, 2011, and
Directors authorized the retirement of 30 million treasury shares, 2010, respectively, $9,017, $2,988, and $3,396 was added to
as adjusted for the company’s two-for-one stock split, previously stockholders’ equity reflecting the permanent book to tax difference
discussed. in accounting for tax benefits related to employee stock-based
award transactions.
The tax effects of temporary differences that give rise to the net
deferred income tax assets are presented below:
9INCOME TAXES
A reconciliation of the statutory federal income tax rate to the com- October 31 2012 2011
pany’s consolidated effective tax rate is summarized as follows: Deferred tax assets (liabilities):
Allowance for doubtful accounts $ 1,959 $ 1,156
Fiscal years ended October 31 2012 2011 2010 Inventory items 4,595 5,121
Statutory federal income tax rate 35.0% 35.0% 35.0% Warranty reserves and other accruals 39,559 38,370
Increase (reduction) in income taxes resulting Employee benefits 16,466 16,831
from: Depreciation (4,389) (3,909)
Domestic manufacturer’s deduction (2.0) (1.8) (1.1) Other 9,625 8,514
State and local income taxes, net of federal Deferred tax assets $67,815 $66,083
income tax benefit 1.5 1.4 1.4 Valuation allowance (6,781) (4,928)
Effect of foreign source income 0.2 0.2 0.2
Net deferred tax assets $61,034 $61,155
Domestic research tax credit (0.2) (2.4) (0.2)
Other, net (0.5) 0.3 (1.3) The valuation allowance as of October 31, 2012 and 2011 princi-
Consolidated effective tax rate 34.0% 32.7% 34.0% pally applies to capital loss carryforwards and foreign net operating
loss carryforwards that are expected to expire prior to utilization.
As of October 31, 2012, the company had approximately
$45,635 of accumulated undistributed earnings from subsidiaries
outside the United States that are considered to be reinvested
indefinitely. No deferred tax liability has been provided for such
earnings.
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