Black & Decker CYCLONE BLC12600BUC Manuel d'utilisateur télécharger pdf (Page 41)

Principal Payments and Interest Rate Detail by Contractual Maturity Dates

(U.S. DOLLARS IN

MILLIONS) 2010 2011 2012 2013 2014 THEREAFTER TOTAL

FAIR VALUE

(ASSETS)/

LIABILITIES

Short-term borrowings

Variable rate (U.S. dollars

and

other currencies) $ — $ — $ — $ — $ — $ — $ — $ —

Average interest rate

Long-term debt

Variable rate (U.S.

dollars) $ — $ 75.0 $ 100.0 $ — $ — $ — $ 175.0 $ 175.0

Average interest rate 1.37% 1.44% 1.41%

Fixed rate (U.S. dollars) $ — $ 400.0 $ — $ — $ 650.0 $ 450.0 $ 1,500.0 $ 1,611.7

Average interest rate 7.13% 7.01% 6.18% 6.79%

INTEREST RATE DERIVATIVES

Fixed to Variable Rate

Interest

Rate Swaps (U.S.

dollars) $ — $ 100.0 $ — $ — $ 200.0 $ 25.0 $ 325.0 $ (26.6)

Average pay rate (a)

Average receive rate 4.87% 4.64% 5.97% 4.81%

(a) The average pay rate for swaps in the notional principal amount of $125.0 million is based upon 3-month forward LIBOR (with

swaps in the notional principal amounts of $100.0 million maturing in 2011 and $25.0 million maturing thereafter). The average

pay rate for the remaining swap is based upon 6-month forward LIBOR.

FOREIGN CURRENCY EXCHANGE RATE SENSITIVITY

As discussed previously, the Corporation is exposed to market risks arising from changes in foreign exchange rates. As of December

31, 2009, the Corporation has hedged a portion of its 2010 estimated foreign currency transactions using forward exchange contracts.

The Corporation estimated the effect on 2010 gross profits, based upon a recent estimate of foreign exchange exposures, of a uniform

15% strengthening in the value of the United States dollar. The Corporation estimated that this would have the effects of reducing

gross profits for 2010 by approximately $42 million. The Corporation also estimated the effects on 2010 gross profits, based upon a

recent estimate of foreign exchange exposures, of a uniform 15% weakening in the value of the United States dollar. A uniform 15%

weakening in the value of the United States dollar would have the effect of increasing gross profits.

In addition to their direct effects, changes in exchange rates also affect sales volumes and foreign currency sales prices as competitors’

products become more or less attractive. The sensitivity analysis of the effects of changes in foreign currency exchange rates

previously described does not reflect a potential change in sales levels or local currency prices nor does it reflect higher exchange

rates, as compared to those experienced during 2009, inherent in the foreign exchange hedging portfolio at December 31, 2009.

Critical Accounting Policies

The Corporation’s accounting policies are more fully described in Note 1 of Notes to Consolidated Financial Statements. As disclosed

in Note 1 of Notes to Consolidated Financial Statements, the preparation of financial statements in conformity with accounting

principles generally accepted in the United States requires management to make estimates and assumptions about future events that

affect the amounts reported in the financial statements and accompanying notes. Future events and their effects cannot be determined

with absolute certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results inevitably will

differ from those estimates, and such differences may be material to the financial statements.

The Corporation believes that, of its significant accounting policies, the following may involve a higher degree of judgment,

estimation, or complexity than other accounting policies. The discussions of the Corporation’s critical accounting policies that follow

relate to the Corporation on a stand-alone basis and are not reflective of the impact of the proposed merger with The Stanley Works.

As more fully described in Note 1 of Notes to Consolidated Financial Statements, the Corporation performs goodwill impairment tests

on at least an annual basis and more frequently in certain circumstances. The Corporation cannot predict the occurrence of certain

events that might adversely affect the reported value of goodwill that totaled $1,230.0 million at December 31, 2009. Such events may

include, but are not limited to, strategic decisions made in response to economic and competitive conditions, the impact of the

economic environment on the Corporation’s customer base, or a material negative change in its relationships with significant

customers.

The Corporation assesses the fair value of its reporting units for its goodwill impairment tests based upon a discounted cash flow

methodology. The identification of reporting units begins at the operating segment level – in the Corporation’s case, the Power Tools

Source: BLACK & DECKER CORP, 10-K, February 19, 2010 Powered by Morningstar

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