SEGMENT DATA

12 Months Ended

Oct. 31, 2011

SEGMENT DATA

SEGMENT DATA

12 SEGMENT DATA

The company's businesses are organized, managed, and internally grouped into segments based on differences in products and services. Segment selection was based on the manner in which management organizes segments for making operating decisions and assessing performance. The company has identified eight operating segments and has aggregated those segments into three reportable segments: Professional, Residential, and Distribution. The aggregation of the company's segments is based on the segments having the following similarities: economic characteristics, types of products and services, types of production processes, type or class of customers, and method of distribution. The company's Distribution segment, which consists of company-owned domestic distributorships, has been combined with the company's corporate activities and elimination of intersegment revenues and expenses and is shown as "Other" due to the insignificance of the segment.

   The Professional business segment consists of turf and landscape equipment and irrigation products. Turf and landscape equipment products include sports fields and grounds maintenance equipment, golf course mowing and maintenance equipment, landscape contractor mowing equipment, landscape creation and renovation equipment, lighting products, and other maintenance equipment. Irrigation products consist of sprinkler heads, electric and hydraulic valves, controllers, computer irrigation central control systems, and micro-irrigation drip tape and hose products. Professional business segment products are sold mainly through a network of distributors and dealers to professional users engaged in maintaining golf courses, sports fields, municipal properties, agricultural fields, and residential and commercial landscapes, as well as directly to government customers, rental companies, and large retailers.

   The Residential business segment consists of walk power mowers, riding mowers, snow throwers, replacement parts, and home solutions products, including trimmers, blowers, blower-vacuums, and underground and hose-end retail irrigation products sold in Australia. Residential business segment products are sold to homeowners through a network of distributors and dealers, and through a broad array of home centers, hardware retailers, and mass retailers, as well as over the Internet.

   The Other segment consists of the company's distribution segment and corporate activities and elimination of intersegment revenues and expenses. Corporate activities include general corporate expenditures (finance, human resources, legal, information services, public relations, and similar activities) and other unallocated corporate assets and liabilities, such as corporate facilities, parts inventory, and deferred tax assets.

   The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1. The company evaluates the performance of its Professional and Residential business segment results based on earnings from operations plus other income (expense), net. Operating loss for the Other segment includes earnings (loss) from domestic wholly owned distribution companies, corporate activities, other income (expense), and interest expense. The business segment's operating profits or losses include direct costs incurred at the segment's operating level plus allocated expenses, such as profit sharing and manufacturing expenses. The allocated expenses represent costs that these operations would have incurred otherwise but do not include general corporate expenses, interest expense, and income taxes. The company accounts for intersegment gross sales at current market prices.

   The following table shows summarized financial information concerning the company's reportable segments:

Fiscal years ended October 31		Professional		Residential		Other			Total
2011
Net sales	$	1,239,068	$	623,889	$	20,996		$	1,883,953
Intersegment gross sales		35,539		3,560		(39,099	)		–
Earnings (loss) before income taxes		205,009		54,410		(84,593	)		174,826
Total assets		497,388		202,222		171,053			870,663
Capital expenditures		43,933		5,615		7,899			57,447
Depreciation and amortization		31,380		9,846		7,280			48,506
2010
Net sales	$	1,085,457	$	589,677	$	15,244		$	1,690,378
Intersegment gross sales		17,271		487		(17,758	)		–
Earnings (loss) before income taxes		173,752		57,956		(90,440	)		141,268
Total assets		437,987		173,919		273,716			885,622
Capital expenditures		34,017		8,599		6,083			48,699
Depreciation and amortization		27,261		10,259		7,491			45,011
2009
Net sales	$	965,935	$	532,707	$	24,805		$	1,523,447
Intersegment gross sales		20,208		1,079		(21,287	)		–
Earnings (loss) before income taxes		127,609		46,351		(78,172	)		95,788
Total assets		418,806		171,892		281,984			872,682
Capital expenditures		25,871		7,531		4,537			37,939
Depreciation and amortization		25,197		11,040		8,298			44,535

   The following table presents the details of the other segment operating loss before income taxes:

Fiscal years ended October 31		2011			2010			2009
Corporate expenses	$	(72,726	)	$	(74,758	)	$	(70,802	)
Interest expense		(16,970	)		(17,113	)		(17,578	)
Finance charge revenue		–			–			543
Elimination of corporate financing expense		–			–			7,052
Other income		5,103			1,431			2,613
Total	$	(84,593	)	$	(90,440	)	$	(78,172	)

   The following table presents net sales for groups of similar products and services:

Fiscal years ended October 31		2011		2010		2009
Equipment	$	1,529,470	$	1,371,615	$	1,227,023
Irrigation and lighting		354,483		318,763		296,424
Total	$	1,883,953	$	1,690,378	$	1,523,447

   Sales to one customer accounted for 11 percent of consolidated net sales in fiscal 2011, 13 percent in fiscal 2010, and 14 percent in fiscal 2009.

Geographic Data

   The following geographic area data includes net sales based on product shipment destination. Long-lived assets consist of net property, plant, and equipment, which is determined based on physical location in addition to allocated capital tooling from U.S. plant facilities.

Fiscal years ended October 31		United States		Foreign Countries		Total
2011
Net sales	$	1,276,038	$	607,915	$	1,883,953
Long-lived assets		145,169		45,971		191,140
2010
Net sales	$	1,152,790	$	537,588	$	1,690,378
Long-lived assets		145,409		27,998		173,407
2009
Net sales	$	1,036,253	$	487,194	$	1,523,447
Long-lived assets		142,045		24,671		166,716