Toro 2014 Annual Report Download - page 68

restricted stock units. That cost is expected to be recognized over In addition, the company and its subsidiaries have defined bene-
a weighted-average period of 2.2 years. fit, supplemental, and other retirement plans covering certain
employees in the U.S. and the United Kingdom. The projected
Performance Share Awards. The company grants performance benefit obligation of these plans as of October 31, 2014 and 2013
share awards to executive officers and other employees under was $45,420 and $42,034, respectively, and the net liability
which they are entitled to receive shares of the company’s com- amount recognized in the consolidated balance sheets as of Octo-
mon stock contingent on the achievement of performance goals of ber 31, 2014 and 2013 was $3,432 and $3,982, respectively. The
the company and businesses of the company, which are generally accumulated benefit obligation of these plans as of October 31,
measured over a three-year period. The number of shares of com- 2014 and 2013 was $42,431 and $39,967, respectively. The
mon stock a participant receives will be increased (up to 200 per- funded status of these plans as of October 31, 2014 and 2013 was
cent of target levels) or reduced (down to zero) based on the level $10,085 and $9,063, respectively. The fair value of the plan assets
of achievement of performance goals and vest at the end of a as of October 31, 2014 and 2013 was $35,335 and $32,971,
three-year period. Performance share awards are generally respectively. The net expense recognized in the consolidated
granted on an annual basis in the first quarter of the company’s financial statements for these plans was $1,092, $1,149, and $703
fiscal year. Compensation expense is recognized for these awards for the fiscal years ended October 31, 2014, 2013, and 2012,
on a straight-line basis over the vesting period based on the per respectively.
share fair value as of the date of grant and the probability of Amounts recognized in accumulated other comprehensive loss
achieving each performance goal. consisted of:
The company granted performance share awards as follows:
Defined Benefit Postretirement
Fiscal years ended October 31 2014 2013 2012 Fiscal years ended October 31 Pension Plans Benefit Plan Total
Weighted-average fair value at date of grant $59.31 $42.06 $28.24 2014
Fair value of performance share awards vested 7,926 9,057 1,828 Net actuarial loss $4,521 $ 513 $5,034
Net prior service cost (credit) 257 (25) 232
The table below summarizes the activity during fiscal 2014 for Accumulated other
unvested performance share awards: comprehensive loss $4,778 $ 488 $5,266
2013
Weighted- Net actuarial loss $2,915 $ 611 $3,526
Average Fair Net prior service cost (credit) 289 (132) 157
Performance Value at Date
Accumulated other comprehensive
Shares of Grant
loss $3,204 $ 479 $3,683
Unvested as of October 31, 2013 520,800 $33.41
Granted 121,600 60.19 The following amounts are included in accumulated other com-
Vested (133,640) 31.76 prehensive loss as of October 31, 2014 and are expected to be
Cancelled (31,960) 31.76
recognized as components of net periodic benefit cost during fiscal
Unvested as of October 31, 2014 476,800 $40.82 2015.
As of October 31, 2014, there was $4,293 of total unrecognized
compensation expense related to unvested performance share Defined Benefit Postretirement
Pension Plans Benefit Plan Total
awards. That cost is expected to be recognized over a weighted-
Net actuarial loss $570 $ 2 $572
average period of 1.7 years.
Net prior service cost (credit) 51 (41) 10
Total $621 $(39) $582
11 EMPLOYEE RETIREMENT PLANS
The company maintains The Toro Company Investment, Savings,
and Employee Stock Ownership Plan for eligible employees. The
company’s expenses under this plan were $15,550, $14,931, and
$14,304 for the fiscal years ended October 31, 2014, 2013, and
2012, respectively.
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