Toro 2014 Annual Report Download - page 69

Amounts recognized in net periodic benefit cost and other com- The Professional business segment consists of turf and land-
prehensive loss consisted of: scape equipment and irrigation products. Beginning in fiscal 2015,
the Professional business segment will also include professional
snow and ice removal equipment as a result of the acquisition of
Defined Benefit Postretirement
Fiscal years ended October 31 Pension Plans Benefit Plan Total the BOSS business, as discussed in Note 2. Turf and landscape
2014 equipment products include sports fields and grounds maintenance
Net actuarial gain $ 88 $ (89) $ (1) equipment, golf course mowing and maintenance equipment, land-
Amortization of unrecognized scape contractor mowing equipment, landscape creation and reno-
prior service (credit) cost (32) 106 74 vation equipment, rental and specialty construction equipment, and
Amortization of unrecognized other maintenance equipment. Irrigation and lighting products con-
actuarial loss (gain) 1,519 (9) 1,510
sist of sprinkler heads, electric and hydraulic valves, controllers,
Total recognized in other computer irrigation central control systems, and micro-irrigation drip
comprehensive loss $ 1,575 $ 8 $ 1,583
tape and hose products, as well as professionally installed lighting
Total recognized in net periodic products offered through distributors and landscape contractors
benefit cost and other
that also purchase irrigation products. Professional business seg-
comprehensive loss $ 2,110 $ 565 $ 2,675
ment products are sold mainly through a network of distributors
2013
and dealers to professional users engaged in maintaining golf
Net actuarial gain $(1,170) $(283) $(1,453)
Amortization of unrecognized prior courses, sports fields, municipal properties, agricultural fields, resi-
service (credit) cost (34) 106 72 dential and commercial landscapes, and removing snow, as well
Amortization of unrecognized as directly to government customers, rental companies, and large
actuarial loss (gain) 768 (32) 736 retailers.
Total recognized in other The Residential business segment consists of walk power
comprehensive loss (income) $ (436) $(209) $ (645) mowers, riding mowers, snow throwers, replacement parts, and
Total recognized in net periodic home solutions products, including trimmers, blowers, blower-vacu-
benefit cost and other ums, and underground and hose-end retail irrigation products sold
comprehensive loss $ 117 $ 387 $ 504 in Australia. Residential business segment products are sold to
homeowners through a network of distributors and dealers, and
The company has omitted the remaining disclosures for its
through a broad array of home centers, hardware retailers, and
defined benefit plans and postretirement healthcare plan as the
mass retailers, as well as over the Internet.
company deems these plans to be immaterial to its consolidated
The Other segment consists of the company’s Distribution seg-
financial position and results of operations.
ment and corporate activities and elimination of intersegment reve-
nues and expenses. Corporate activities include general corporate
expenditures (finance, human resources, legal, information ser-
12 SEGMENT DATA vices, public relations, and similar activities) and other unallocated
corporate assets and liabilities, such as corporate facilities, parts
The company’s businesses are organized, managed, and internally
inventory, and deferred tax assets.
grouped into segments based on differences in products and ser-
The accounting policies of the segments are the same as those
vices. Segment selection was based on the manner in which man-
described in the summary of significant accounting policies in
agement organizes segments for making operating and investment
Note 1. The company evaluates the performance of its Profes-
decisions and assessing performance. The company has identified
sional and Residential business segment results based on earn-
eight operating segments and has aggregated those segments into
ings from operations plus other income, net. Operating loss for the
three reportable segments: Professional, Residential, and Distribu-
Other segment includes earnings (loss) from domestic wholly
tion. The aggregation of the company’s segments is based on the
owned distribution companies, corporate activities, other income,
segments having the following similarities: economic characteris-
and interest expense. The business segment’s operating profits or
tics, types of products and services, types of production processes,
losses include direct costs incurred at the segment’s operating
type or class of customers, and method of distribution. The com-
level plus allocated expenses, such as profit sharing and manufac-
pany’s Distribution segment, which consists of company-owned
turing expenses. The allocated expenses represent costs that
domestic distributorships, has been combined with the company’s
these operations would have incurred otherwise, but do not include
corporate activities and elimination of intersegment revenues and
general corporate expenses, interest expense, and income taxes.
expenses and is shown as ‘‘Other’’ due to the insignificance of the
The company accounts for intersegment gross sales at current
segment.
market prices.
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