Toro 2013 Annual Report Download - page 61

income totaled $18,710. The excess termination fees over the Accumulated Other Comprehensive Loss.
deferred income recorded has been deferred and is being recog- Components of accumulated other comprehensive loss (‘‘AOCL’’),
nized as an adjustment to interest expense over the term of the net of tax, within the consolidated statements of stockholders’
debt securities issued. As of October 31, 2013, the company had equity are as follows:
$2,153 remaining in other assets for the excess termination fees
over deferred income. As of October 31 2013 2012 2011
Principal payments required on long-term debt in each of the Foreign currency translation adjustments $ 7,778 $5,436 $2,904
next five fiscal years ending October 31 are as follows: 2014, $0; Pension and retiree medical benefits 3,683 4,328 3,800
2015, $0; 2016, $0; 2017, $0; 2018, $0; and after 2018, $225,000. Derivative instruments 1,109 210 122
Total accumulated other comprehensive loss $12,570 $9,974 $6,826
The components and activity of accumulated other comprehen-
sive loss are as follows:
8STOCKHOLDERS’ EQUITY
Stock Split. On May 24, 2012, the company announced that its Foreign Pension
Board of Directors declared a two-for-one stock split of the com- Currency and Post- Cash Flow
Translation retirement Derivative
pany’s common stock, effected in the form of a 100 percent stock Adjustments Benefits Instruments Total
dividend. The stock split was distributed or paid on June 29, 2012,
October 31, 2012 $5,436 $4,328 $ 210 $ 9,974
to shareholders of record as of June 15, 2012. As a result of this Other comprehensive loss
action, approximately 29.4 million shares were issued to sharehold- before reclassifications 2,342 – 1,870 4,212
ers of record as of June 15, 2012. The par value of the common Amounts reclassified from
AOCL – (645) (971) (1,616)
stock remains at $1.00 per share and; accordingly, approximately
Net current period other
$29,390 was transferred from retained earnings to common stock. comprehensive loss (income) $2,342 $ (645) $ 899 $ 2,596
All share and per share amounts have been retroactively updated
October 31, 2013 $7,778 $3,683 $1,109 $12,570
to reflect this stock split.
Accumulated other comprehensive loss associated with pension
Common Shares Authorized. On March 12, 2013, following the and postretirement benefits are included in Note 11. Details of
approval by the company’s shareholders at its 2013 annual meet- amounts reclassified from accumulated other comprehensive loss
ing of shareholders, the company amended its Restated Certificate to the respective line items in net earnings for cash flow derivative
of Incorporation by filing a Certificate of Amendment to Restated instruments are included in Note 14.
Certificate of Incorporation to increase the number of authorized
shares from 100 million to 175 million.
Stock Repurchase Program. On December 11, 2012, the com- 9INCOME TAXES
pany’s Board of Directors authorized the repurchase of 5 million
shares of the company’s common stock in open-market or in pri- A reconciliation of the statutory federal income tax rate to the com-
vately negotiated transactions. This program has no expiration date pany’s consolidated effective tax rate is summarized as follows:
but may be terminated by the Board at any time. During fiscal
2013, 2012, and 2011, the company paid $98,842, $92,719, and Fiscal years ended October 31 2013 2012 2011
$129,955 to repurchase an aggregate of 2,131,615 shares, Statutory federal income tax rate 35.0% 35.0% 35.0%
2,591,039 shares, and 4,592,760 shares, respectively. As of Octo- Increase (reduction) in income taxes resulting
from:
ber 31, 2013, 4,343,062 shares remained authorized for
Domestic manufacturer’s deduction (2.0) (2.0) (1.8)
repurchase. State and local income taxes, net of federal
Treasury Shares. As of October 31, 2013, the company had income tax benefit 1.5 1.5 1.4
Effect of foreign source income (0.3) 0.2 0.2
21,275,717 treasury shares at a cost of $1,081,086. As of Octo-
Domestic research tax credit (2.4) (0.2) (2.4)
ber 31, 2012, the company had 19,797,958 treasury shares at a Other, net (0.1) (0.5) 0.3
cost of $1,012,536. On November 30, 2011, the company’s Board
Consolidated effective tax rate 31.7% 34.0% 32.7%
of Directors authorized the retirement of 30 million treasury shares,
as adjusted for the company’s two-for-one stock split, previously
discussed.
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