Toro 2013 Annual Report Download - page 57

financing costs for distributor and dealer inventories were $19,729, Reconciliations of basic and diluted weighted-average shares of
$19,492, and $16,394 for the fiscal years ended October 31, 2013, common stock outstanding are as follows:
2012, and 2011, respectively. BASIC
(Shares in thousands)
Advertising Fiscal years ended October 31 2013 2012 2011
General advertising expenditures are expensed the first time Weighted-average number of shares of
advertising takes place. Production costs associated with advertis- common stock 57,898 59,440 62,530
ing are expensed in the period incurred. Cooperative advertising Assumed issuance of contingent shares 24 64
represents expenditures for shared advertising costs that the com- Weighted-average number of shares of
pany reimburses to customers and is classified as a component of common stock and assumed issuance of
selling, general, and administrative expense. These obligations are contingent shares 57,922 59,446 62,534
accrued and expensed when the related revenues are recognized DILUTED
in accordance with the programs established for various product (Shares in thousands)
lines. Advertising costs were $48,071, $46,947, and $49,362 for Fiscal years ended October 31 2013 2012 2011
the fiscal years ended October 31, 2013, 2012, and 2011, Weighted-average number of shares of
respectively. common stock and assumed issuance of
contingent shares 57,922 59,446 62,534
Stock-Based Compensation Effect of dilutive securities 1,183 1,172 1,060
The company’s stock-based compensation awards are generally Weighted-average number of shares of
granted to executive officers, other employees, and non-employee common stock, assumed issuance of
contingent and restricted shares, and effect
members of the company’s Board of Directors, and include per-
of dilutive securities 59,105 60,618 63,594
formance share awards that are contingent on the achievement of
performance goals of the company, non-qualified stock options, Incremental shares from options and restricted stock are com-
restricted stock units, and restricted stock awards. Compensation puted by the treasury stock method. Options and restricted stock
expense equal to the grant date fair value is recognized for these of 182,868, 33,427, and 417,436 during fiscal 2013, 2012, and
awards over the vesting period and is classified in selling, general 2011, were excluded from the computation of diluted earnings per
and administrative expense. See Note 10 for additional information share because they were anti-dilutive.
regarding stock-based compensation plans.
Cash Flow Presentation
Net Earnings Per Share The consolidated statements of cash flows are prepared using the
Basic net earnings per share is calculated using net earnings avail- indirect method, which reconciles net earnings to cash flow from
able to common stockholders divided by the weighted-average operating activities. The necessary adjustments include the
number of shares of common stock outstanding during the year removal of timing differences between the occurrence of operating
plus the assumed issuance of contingent shares. Diluted net earn- receipts and payments and their recognition in net earnings. The
ings per share is similar to basic net earnings per share except adjustments also remove from operating activities cash flows aris-
that the weighted-average number of shares of common stock out- ing from investing and financing activities, which are presented
standing plus the assumed issuance of contingent shares is separately from operating activities. Cash flows from foreign cur-
increased to include the number of additional shares of common rency transactions and operations are translated at an average
stock that would have been outstanding assuming the issuance of exchange rate for the period. Cash paid for acquisitions is classi-
all potentially dilutive shares, such as common stock to be issued fied as investing activities.
upon exercise of options, contingently issuable shares, and
restricted common stock and units.
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