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Table of Contents
FieldTurf_USA_Inc_-_Table_of_Contents 1FieldTurf_USA_Inc_-_Form_A 2FieldTurf_USA_Inc_-_Form_B 3FieldTurf_USA_Inc_-_Form_C 4FieldTurf_USA_Inc_-_Form_D 8
Form d track 8FieldTurf USA Inc Exhibit 8_ CFO Letter - FTUSA 24FieldTurf USA Inc Exhibit 9_KPMG Audit and Auditors report.pdf 25
Exhibit 7_KPMG Audit.pdf 251 Opinion on the consolidated financial statements 262 Justification of our assessments 273 Specific verification 27
Exhibit 9_ Tarkett_2014 Auditors report 77FieldTurf_USA_Inc_-_Form_E 127FieldTurf_USA_Inc_-_Form_F.1 128FieldTurf_USA_Inc_-_Form_F.2 169FieldTurf_USA_Inc_-_Part_B 170FieldTurf_USA_Inc_-_Part_C 211FieldTurf_USA_Inc_Bid_Bond_WA 279Michigan_State_Specific 283N.J._Business_Registration_Certpdf 284New_Jersey_State_Specific 285
503-692-4869
FieldTurf USA Inc Table of Contents
FieldTurf USA Inc Form A
FieldTurf USA Inc Form B
FieldTurf USA Inc Form C
FieldTurf USA Inc Form D
FieldTurf USA Inc Exhibits 12 & 13.Also included in FieldTurf USA Inc
Form D
FieldTurf USA Inc Form E
FieldTurf USA Inc Form F.1
FieldTurf USA Inc Form F.2
FieldTurf USA Inc Part B
FieldTurf USA Inc MI State SpecificFieldTurf USA Inc NJ State SpecificFieldTurf USA Inc WA State Specific
FieldTurf USA Inc Form G
FieldTurf USA Inc Form G PricingAEPA IFB H Athletic Surfaces Tracks
and Courts
FieldTurf USA Inc Form G.5
N/A
FieldTurf USA Inc Commercial List Price
Folder C Exhibits C FieldTurf USA Inc Exhibits PDF
AEPA IFB #016-H Tracks & Courts Page5of68DueDate:OCTOBER7,2015,1:30pmEDT Part C: Bid Forms
AEPA FORM C: SERVICE QUESTIONNAIRE FOR BIDDER
AEPA IFB #016
Athletic Surfaces – Tracks and Courts NAME OF BIDDER: FieldTurf USA, Inc. (Beynon Sports Products & Services)
Instructions: Please respond to Yes/No and choice questions by using an (X). If a text reply is required, respond in the space below. Scan this form and any attachment pages into a single document and convert to a PDF file. Follow the instructions for titling the file and file organization under Part A, Section II Bid Procedures, F. Bid Submission, 2. Format of Bid Submittal.
Note: As part of evaluating the Bidder’s qualifications, the following is being requested and the Bidder is forewarned failure to respond and/or meet the minimum specifications in these areas, may deem their response as non-responsive.
1. The following chart indicates which AEPA Member States intend to participate in this bid category. Please place an “X” in response to questions in the last three (3) columns. Note: A Bidder must be willing and able to deliver the proposed products and/or services to ninety (90%) of the participating AEPA Member States.
AEPAMemberStates
Participateinthisbidcategory?
Hasyourcomp‐anysoldthese
products/servicesinthesestatesforthePASTTHREE
YEARS?
Ifawardedacontract,whichstatesdoes
yourcompanyPROPOSETOSELLIN?
Indicatewhichstatesyourcompanyhassalesreps,
distributorsordealersin.
California Yes YesAllAllowed–somestatesrestrictusage
Yes
Colorado Yes Yes Yes
Connecticut Yes Yes Yes
Florida Yes Yes Yes
Indiana Yes Yes Yes
Iowa Yes Yes Yes
Kansas Yes Yes Yes
Kentucky Yes Yes Yes
Massachusetts Yes Yes Yes
Michigan Yes Yes Yes
Minnesota Yes Yes Yes
Missouri Yes Yes Yes
Montana Yes Yes Yes
Nebraska Yes Yes Yes
NewJersey Yes Yes Yes
NewMexico Yes Yes Yes
NorthDakota Yes Yes Yes
Ohio Yes Yes Yes
Oregon Yes Yes Yes
Pennsylvania Yes Yes Yes
Texas Yes Yes Yes
Virginia Yes Yes Yes
Washington No Yes Yes
WestVirginia Yes Yes Yes
Wisconsin Yes Yes Yes
Wyoming Yes Yes Yes
AEPA IFB #016-H Tracks & Courts Page6of68DueDate:OCTOBER7,2015,1:30pmEDT Part C: Bid Forms
2. e-commerce: Does this company have an e-commerce website? _______ YES X NO
If YES, what is the website? ________________________________________________________
3. Customer and Support Service: It is understood depending on the type, kind and level of products and/or services being proposed in response to this bid will impact and determine the type and level of services required and these are identified in Part B Bid Specifications of this IFB.
a. Does this company have online customer support option? X YES _______ NO
b. Does this company have a toll-free customer support phone option? X YES _______ NO
c. Does this company offer local customer and support service options? X YES _______ NO
d. Describe the type, level, available and location(s) of your customer and support service options, including number of dedicated customer/support staff and hours of operation.
Beynon Sports is dedicated to all of our customers. We have a robust portfolio of indoor/ outdoor elementary schools, middle schools, high schools, colleges, universities, parks departments, private homes and various other institutions. We guarantee our workmanship and materials throughout the life of our industry leading warranty. We also have “after sale” several programs available including the “Fast Track Maintenance Program”. We facilitate various services at all of Beynon’s six various locations.
http://www.beynonsports.com/en/service/customer-commitment
4. Training: If applicable, does this company offer customer training for the products and services sold?
X YES _______ NO
If YES, describe what types/kinds of training you offer, the venues where training occurs and the location(s) of your trainers, include number of staff dedicated to training and their qualifications and hours of operation.
Please see Exhibit A
5. Pricing:
a. Is your pricing methodology guaranteed for the term of the contract? X YES _______ NO
b. Will you offer customized price lists to Participating Entities as required per the Pricing terms of Part A? X YES _____ NO
c. Will you offer hot list pricing (optional) as described in the Pricing terms of Part A? X YES _____ NO
d. Will you offer Volume Price Discounts as described in the Pricing terms of Part A? X YES _____ NO
6. Competitiveness: In order for your bid to be considered, your company must offer AEPA prices that are equal to or lower than what your company offers to individual customers and/or cooperatives with equal to or lower volume. Is the pricing that is proposed to AEPA equal to or lower than pricing offered to individual customers and/or cooperatives with equal to or lower volume? X YES _______ NO
Indicate which of the following apply and the level of competitive range you are offering in response to this IFB.
X Pricing offered to AEPA is EQUAL TO pricing offered to individual customer and/or cooperatives.
Lower by approximately 9 % off general public bid.
_____Pricing is LESS THAN individual customer and/or cooperatives. Lower by _____ %
AEPA IFB #016-H Tracks & Courts Page7of68DueDate:OCTOBER7,2015,1:30pmEDT Part C: Bid Forms
7. Cooperative Contracts: Does your company currently have contracts with other cooperatives (local, regional, state, national)? X YES _______ NO
If YES, identify which cooperatives and the respective expiration date(s).
AEPA: 2/28/2016 NJPA: 2/28/2018 TCPN: 2/28/2017 KPN: 2/28/2019 GSA: 8/6/2016 Buy Board: 3/31/2018 CMAS: 11/30/2016
If YES and your company is awarded an AEPA Contract, which contract will you lead with in marketing and sales representative presentations (sales calls)?
We will lead with AEPA. It remains our best and most versatile contract with approx. $ 30 MM in annual volume and three successful awards (006, 008 & 012). Total volume (for turf, track and tennis contracts combined) exceeds $ 330 MM over the life of these contracts resulting in approximately $ 6 MM in total administrative fee revenue for the AEPA.
8. Administrative Fee: Which of the following best reflects how your pricing includes the individual AEPA Members’ administrative fee.
a. X The pricing for the products and/or services are the same for each AEPA Member Agency, shipping, handling administrative fee and other specific state costs are added to arrive at total price offered to the Individual AEPA Member Agency.
b. _____ The pricing for the products and/or services is inclusive of the administrative fee and therefore the pricing is the same for all AEPA Member Agencies. Shipping, handling and other state specific costs are added to adjusted the AEPA Member Agency’s price.
c. _____ The pricing for the products and/or services includes all (shipping, handling, administrative fee, other) costs to arrive at a single price for all AEPA Member Agencies.
9. Shipping & Handling:
Orders that are $50.00 or more shall include free shipping and handling. What is the flat rate your company will charge, regardless of where shipped in the continental United States, for orders less than $50.00?
N/A. No Orders less than $50.00.
10. Product Returns: Does your company have a return policy? _______ YES X NO
If YES, describe your return policy and if you charge a restocking fee, what is it? (AEPA allows up to 15% for supplies and up to 25% for equipment).
11. Payment Terms: Will you offer AEPA Buyer’s a quick pay discount? _______ YES X NO
If YES, what is the discount? ______% Net _______
12. Leasing: Do you offer leasing arrangements under this bid? _______ YES X NO
If YES, remember to indicate the rate factor and other cost factors on the Pricing spreadsheet(s).
13. If an AEPA contract is approved and awarded by the Member Agencies, as a Vendor Partner, I agree to:
AEPA IFB #016-H Tracks & Courts Page9of68DueDate:OCTOBER7,2015,1:30pmEDT Part C: Bid Forms
AEPA FORM D: COMPANY INFORMATION
AEPA IFB #016-H
Athletic Surfaces – Tracks and Courts
NAME OF BIDDER: FieldTurf USA, Inc. (Beynon Sports Surfacing Products & Services)
COMPANY CONTACT INFORMATION (for Beynon Sports Surfaces)
Company Name: Beynon Sports Surfaces Website: www.beynonsports.com
Company Address: 16 Alt Rd.
City: Hunt Valley State: MD Zip: 21030
Contact Person: Eric Fisher Title: Director of Sales – SmartBuy OR Sarah Morehead Director of Operations – SmartBuy
Contact Phone: 888-209-0065 ext. 246 Contact Email: [email protected]
Contact Phone: 888-209-0065 ext. 230 Contact Email: [email protected]
COMPANY CONTACT INFORMATION (for bidder FieldTurf USA, Inc.)
Company Name: FieldTurf USA, Inc. Website: www.fieldturf.com
Company Address: 19600 SW 129th Ave
City: Tualatin State: OR Zip: 97062
Contact Person: Eric Fisher Title: Director of Sales – SmartBuy OR Sarah Morehead Title: Director of Operations - SmartBuy
Contact Phone: 888-209-0065 ext. 246 Contact Email: [email protected]
Contact Phone: 888-209-0065 ext. 230 Contact Email: [email protected]
BACKGROUND
Note: Generally, AEPA will not accept an offer from a business that is less than five (5) years old or which fails to demonstrate and/or establish a proven record of business. If the bidder has recently purchased an established business or has proof of prior success in either this business or a closely related business, provide written documentation and verification in response to the questions below. AEPA reserves the right to accept or reject newly formed companies based on information provided in this response and from its own investigation of the company.
This business is a public company X privately owned company.
In what year was this business started under its present name? October 1, 2004
Under what other or former name(s) has your business operated? N/A.
Is this business a corporation? No X Yes. If yes, please complete the following:
Date of incorporation: 1996 State of incorporation: Florida
Name of President: Eric Daliere
Name(s) of Vice President(s): N/A
Name of Secretary: Souha Azar
Name of Treasurer: Pedro Azevedo
AEPA IFB #016-H Tracks & Courts Page10of68DueDate:OCTOBER7,2015,1:30pmEDT Part C: Bid Forms
Is this business a partnership? X No Yes. If yes, please complete the following:
Date of organization:_______________ State founded: _______________________________
Type of partnership, if applicable: ________________________________________________
Name(s) of general partner(s): ___________________________________________________
Is this organization individually owned? X No Yes. If yes, please complete the following:
Date of organization:__________________ State founded: ____________________________
Name of owner: ______________________________________________________________
This organization is a form other than those identified above. No Yes.
IF THE ANSWER IS YES, describe the company’s format, year and state of origin, and names and titles of the principals.
COMPANY HEADQUARTER LOCATION (for Beynon Sports Surfaces)
Company Address: 16 Alt Rd.
City: Hunt Valley State: MD Zip: 21030
Main Phone Number: 410-771-9473 How long at this address? 2003
COMPANY BRANCH LOCATIONS (for Beynon Sports Surfaces & Dealers)
Beynon Sports Surfaces:
Beynon Sports South
Branch Address: 350 CR 255
City: Georgetown State: TX Zip: 78633
Beynon Sports West (1)
Branch Address: 19600 SW 129th Ave.
City: Tualatin State: OR Zip: 97062
Beynon Sports West (2)
Branch Address: 4263 N Selland Ave.
City: Fresno State: CA Zip: 93722
Beynon Sports Central
Branch Address: 775 Canosa Ct.
City: Denver State: CO Zip: 80204
Beynon Sports Surfaces Dealers
Nagle Athletics
6597 Joy Rd.
Syracuse, NY 13057
Cape & Island Track and Tennis
28 Commerce Park Rd
AEPA IFB #016-H Tracks & Courts Page11of68DueDate:OCTOBER7,2015,1:30pmEDT Part C: Bid Forms
Pocasset, MA 02559
Copeland Coatings
3600 US-20
Nassau, NY 12123
American Athletic (AACI)
2050 US-26
Southampton Township, NJ 08088
SALES HISTORY
Provide your company’s annual sales for 2012, 2013 and 2014 YTD in the United States by the various public segments:
2012 2013 2014 2015 YTD K-12 (public & private), Educational Service Agencies $32,179,773 $35,721,687 $27,441,401 $12,296,492
Higher Education Institutions $21,763,162 $14,403,447 $20,280,116 $3,044,347
Counties, Cities, Townships, Villages $788,417 $436,675 $621,530 $43,966
States
Other Public Sector & Non-profits $3,449,758 $691,829 $1,954,719 $18,750
Private Sector $904,781 $1,019,392 $624,174 $435,880
TOTAL $59,085,892 $52,273,030 $50,921,941 $15,839,435
WORK FORCE
1. Key Contacts and Providers: Provide a list of the individuals, titles, and contact information for the individuals who will provide the following services on a national and/or local basis:
Function Name Title Phone Email Contract Manager Eric Fisher Director of Sales-
SmartBuy 888-209-0065 [email protected]
Contract Manager Sarah Morehead Director of Sales- SmartBuy
888-209-0065 [email protected]
Contract Manager Terry Caruccio Director of Contract Administration
410-771-9473 [email protected]
Sales Manager John Beynon President 410-7710-9473 [email protected]
Customer & Support Manager
Ray Boatwright Operations Manager 512-778-6170 [email protected]
Function Name Title Phone Email Distributors, Dealers, Installers, Sales Reps
Rick Ediger Vice-President of Operations
512-778-6170 [email protected]
Consultants & Trainers Geoff Daley Chief Estimator and Director of Quality Assurance
410-771-9473 [email protected]
Technical, Maintenance & Support Services
Mike Gasparovic Vice-President of R&D
410-771-9473 [email protected]
Quotes, Invoicing & Payments
Mark Scrivano Director of Project Management
410-771-9473 [email protected]
Warranty & After the Sale
Lauren Sadowyj Contracts Administrative
410-771-9473 [email protected]
AEPA IFB #016-H Tracks & Courts Page12of68DueDate:OCTOBER7,2015,1:30pmEDT Part C: Bid Forms
Assistant
Financial Manager Stephen D Fisher Controller 410-771-9473 [email protected]
2. Sales Force: Provide total number and location of salespersons employed by your company in the United States by completing the following: (To insert more rows, hit the tab key from the last field in the State column.)
Number of Sales Reps
City State
2 Hunt Valley MD 1 Lexington VA 1 Kennesaw GA 1 Franklin TN 1 Glencoe MN 1 Wichita KS 1 Denver CO 1 Baytown TX 1 Austin TX 1 Phoenix AZ 2 Fresno CA 2 Tualatin OR
3. Service/Support and Distribution Centers: Provide the type (service/support or distribution) and location of centers that support the United States by completing the following: (To insert more rows, hit the tab key from the last field in the State column.)
Center Type City State Distribution Hunt Valley MD
Service/Support Georgetown TX Service/Support Fresno CA Service/Support Tualatin OR Service/Support Denver CO
4. In-house Resources: Describe the business’s current in-house workforce, equipment and facilities available
to perform under this solicitation.
Beynon Sports has a large workforce of 20 installation crews that are all specially trained by our manufacturing department to install our surfaces. Each Crew is equipped with all the tools needed to travel from site to site completing each project.
http://www.beynonsports.com/en/about-beynon/the-company
http://www.beynonsports.com/en/about-beynon/industry-leader
http://www.beynonsports.com/en/about-beynon/manufacturing
Please see Exhibits B & C
MARKETING
1. Key Marketing Contact(s): List the name(s), title(s) and contact information of the business’s key national and regional marketing office(s). (To insert more rows, hit the tab key from the last field in the State column.)
AEPA IFB #016-H Tracks & Courts Page13of68DueDate:OCTOBER7,2015,1:30pmEDT Part C: Bid Forms
Name Title Phone Email Darren Gill VP of Marketing, Innovation
& Customer Service 1-514-375-2584 [email protected]
Jason Smollett Director of Product Management
1-514-375-2614 [email protected]
Iannick Di Sanza Marketing Coordinator 1-514- 375-2646 [email protected]
Terrance Dobson Marketing Assistant 1-514-375-2613 [email protected]
Simon Lafontaine Marketing Specialist 1-514-375-2564 [email protected]
2. Marketing Activities: Describe how this company marketed its products and services to schools and other public sector audiences in Fiscal Year 2012 – 2013 (July 1 – June 30). List all conventions, conferences and other events at which this company exhibited.
FieldTurf & Beynon’s marketing activities can be broken up in the following categories:
Print Advertising
FieldTurf/ Beynon advertises in all major industry publications including:
American Football Monthly
Athletics Administration
Athletic Business
Athletic Management
Coach & Athletic Director
Coaching Management
Collegiate Directories
Government Recreation & Fitness
Park & Recreation Business
Recreation Management
Sportsfield Management
In addition to these nationwide publications, FieldTurf/ Beynon advertises in over 30 state/regional publications. Our typical advertising budget exceeds $120,000 annually.
E-Marketing
FieldTurf & Beynon’s E-Marketing efforts are broken up into two categories:
Website
The FieldTurf family of websites is made up of the following:
www.fieldturf.com
AEPA IFB #016-H Tracks & Courts Page14of68DueDate:OCTOBER7,2015,1:30pmEDT Part C: Bid Forms
www.beynonsports.com
www.tarkett.com
www.rennersports.com
Potential customers are directed to specific pages like:
http://www.beynonsports.com/en/about-beynon/smartbuy
FieldTurf’s websites average over 35,000 unique visitors per month.
Direct Mailing:
FieldTurf has a lead database with over 20,000 potential customers. Frequent messages are sent to various customer groups – most of which contain messaging pertaining to the AEPA/SmartBuy program.
Trade Shows
FieldTurf attends well over 200 trade shows per year nationwide. At each of these shows FieldTurf makes our best efforts to educate potential clients about the benefits of using AEPA. Our APEA program managers personally attend a large number of the shows as well. Here are the shows that FieldTurf has attended/scheduled for the Fiscal Year 2010 – 2011 (July 1 – June 30):
Alabama Athletics Directors (AHSAA)
Mississippi Coaches Ass. (MACA)
Florida Educational Facility Planners Ass. (FEFPA)
Arizona Park and Rec (AZPRA)
Florida Recs and Park Ass. (FRPA)
Texas Ass of School Administrators & Boards
American School Business Officials (ASBO)
NFHS - National HS ADs
NSBA - National School Boards Show
NABC - Basketball Coaches
NIRSA - Intramural & Recreation
NACDA - National AD Show
NACO - National Association of Counties
NIGP - National Govt Purchasing
ICMA - International County Mgmt
ASLA - American Society of Landscape Architects
NRPA - National Park & Rec
ABKA - Pet Care Services
ASBO - American School Business Officials
NLC - National League of Cities
TES - Education Show
Greenbuild
Athletic Business
AEPA IFB #016-H Tracks & Courts Page15of68DueDate:OCTOBER7,2015,1:30pmEDT Part C: Bid Forms
Home Builders Show
Golf Industry Show
AASA - American School Administrators
VASBO - Virginia School Business Officials
ECAC - Eastern Collegiate Athletic Conference
WADA - Wisconsin AD Show
National Soccer Coaches Association of America
Home Builders Show
NATIONAL INTRAMURAL-RECREATIONAL
SPORTS ASSOCIATION
Stadia Expo
NJCM - New Jersey Conference of Mayors
CADA - Colorado Athletic Directors Association
IADA - Illinois Athletic Director's Association
Boys & Girls Club
Virginia Association of School Business Officials
National High School Athletic Coaches Association
San Angelo Football Clinic
Facilities Operators Conference
MD/DC ASBO
Council of Educational Facility Planners Intl.
NJSLM - NJ State League of Municipalities
TPSCA - Texas Private School Coaches Association
FAC - FLORIDA ASSOCIATION OF COUNTIES
OSBA - OHIO SCHOOL BOARD ASSOCIATION
CCM - CONNECTICUT CONFERENCE OF
MUNICIPALITIES
Texas High School Coaches Association
Arkansas High School Coaches Association
KANSAS ASSOCIATION OF SCHOOL BOARDS
All-Star Sports Week
GRPA - Georgia Recreation & Park Association
OCA - Oklahoma Coaches Association
PSBA - Pennsylvania School Boards Association
CRPA - Connecticut Recreation & Parks Association
SBE - School Building Expo
PRPS - Pennsylvania Recreation & Park Society
NACO - National Association of Counties
AEPA IFB #016-H Tracks & Courts Page16of68DueDate:OCTOBER7,2015,1:30pmEDT Part C: Bid Forms
WASB - Wisconsin State Education Convention
IASB - Illinois Association of School Boards
PRPS - Pennsylvania Recreation & Park Society
National Institute of Governmental Purchasing
Home Builder's Show
Pet Care Services Association Convention & Expo
Greenbuilders 2010
ASLA - American Society of Landscape Architects
Directors of Athletic Directors of New Jersey
NJRPA - New Jersey Park and Rec
NJASLA - NJ Landscape Architects
IIAAA - Indiana ADs
MIAAA - Missouri Athletic Directors
NMAA - New Mexico Activities Association
ASBO MD/DC Maryland
Eastern Collegiate Athletic Conference (ECAC)
International County Management (ICM)
National Parks & Rec (NRPA)
Florida Ass. of School Business Officials (FASBO)
Alberta Recreation and Park Association
Louisianna AD (LHSAA)
Wisconsin State Education Convention
National HS AD Show (NFHS/NIAAA0
Colorado Assocaition of School Boards (CASB)
United States Speciality Sports Association (USSSA)
International Homebuilders Show (NAHB)
National Soccer Coaches Convention (NSCAA)
NJ Landscape Architects (NJASLA)
Golden Triangle Coaches Clinic
Kansas Parl and Rec (KRPA)
Minnesota AD (MIAAA)
Kansas Athletic Administrators (KIAAA)
Texas HS AD (THSADA)
Texas Ass of School Bus Off (TASBO)
Pennsylvania School Bus Off (PASBO)
Virginia AD
Indiana AD
Michigan AD (MIAAA)
AEPA IFB #016-H Tracks & Courts Page17of68DueDate:OCTOBER7,2015,1:30pmEDT Part C: Bid Forms
South Dakota AD (SDIAAA)
Iowa HS AD (IHSAA)
Georgia Athletic Directors Ass (GADA)
New Jersey AD (DAANJ)
New Jersey Park and Rec (NJRPA)
California Park and Rec (CRPS)
New York State ADA (NYSAAA)
Minnesota Football Coaches Clinic (MNFCC)
California Foundation of Community Colleges
NJ School Building & Grounds Ass. (NJSBGA)
Utah Interscholastic AD Ass (UIAAA)
Maryland Park and Rec (MRPA)
Missouri AD (MIAAA)
National Intramural Rec Show (NIRSA)
Tennessee Atheltic Directors Conference (TIAAA)
California Ass. of School Business Officials
California Parks and Recreation (CARPD)
New Jersey Conference of Mayors (NJCM)
Michigan School Business Officials (MSBO)
Colorado Athletic Director (CADA)
Maryland School Business Officials (MASBO)
Illinois Athletic Directors (IADA)
Florida Athletic Directors (FIAAA)
Alberta School Business Officials (ASBOA)
Virginia Ass. of School Business officials (VASBO)
Federation of Canadian Municipalities (FCM)
National AD Show (NACDA)
Georgia Athletic Coaches Ass. (GACA)
Florida Association of Counties (FAC)
Idaho Ass. of School Adm (ISSA)
Idaho Ass. of School Principals (IASSP)
Idaho AD Ass (IDAAA)
Washington Secondary School AD Ass (WSSAAA)
Oregon Athletic Directors Ass (OADA)
Washington Ass of School Bus Officials (WASBO)
Oregon Ass of School Bus Off (OASBO)
Montana Coaches Ass. (MCA)
Oregon Schools Facilities Management (OSFMA)
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NW All Sports Clinic (NWASC)
Oklahoma Coaches Association (OCA)
NAtional Ass. of Counties (NACO)
Wyoming Coaches Association (WCA)
CAAD - Connecticut Athletic Directors
SDIAAA - South Dakota Athletic Directors
VIAAA - Virginia Athletic Directors
KIAAA - Kansas Athletic Directors
PRO - Ontario Park & Rec
National School Plant Managers Association
OASBO - Ontario School Business Officials
CAIS - Connecticut Independent Schools
WFX - Worship Facilities Expo
OCAA - Ontario Colleges Athletic Association
MASBO - Missouri School Business Officials
AEMA - Athletic Equipment Managers
GACA - Georgia Athletic Coaches Association
ASBA - Arkansas School Boards
AHSADCA - Alabama HS Athletic Directors
NACBA - National Church Business
OCA - Oklahoma Coaches Association
STA - Sports Turf Association
AQLM - Quebec Municipalities
PASBO - Pennsylvania School Business Officials
CCM - Connecticut Municipalities
NJSBA
GRPA - Georgia Recreation & Parks
NLC - National League of Cities
NJSLM - New Jersey Municipalities
CASB - Colorado School Boards
KASB - Kansas School Boards
ABCA - American Baseball Coaches Association
Training Show
MSBO - Michigan School Business Officials
Ontario Association of School Business Officials
MSBA - Missouri School Boards' Association
Ohio Interscholastic Athletic Administrators
Arizona Interscholastic Athletics Administrator's
AEPA IFB #016-H Tracks & Courts Page19of68DueDate:OCTOBER7,2015,1:30pmEDT Part C: Bid Forms
Association
INDIANA SCHOOL BOARDS ASSOCIATION
WADA - Wisconsin Athletic Directors Association
APRA - Arizona Parks and Recreation Association
WFCA-Wisconsin Football Coaches Association
OSSBA - Oklahoma State School Boards Association
Kentucky High School Athletic Association
NJSBA - New Jersey School Board Association
IAPD - Illinois Association of Park Districts
TASA - Texas Association of School Administrators
VRPS - Virginia Recreation & Park Society
Georgia Association of School Facility
Administrators
Association of School Business Officials Intl.
Illinois Parks and Rec (IPRA/IAPD)
American Baseball Coaches Ass. (ABCA)
Sports Turfs Managers Ass. (STMA)
US Youth Soccer Workshop (USYSA)
Park and Rec Ontario (PRO)
Soccer Champions Coaches Clinic
New England Football Coaches Clinic (NEFCC)
Coalition for adequate School Housing (CASH)
Pennsylvania State AD (PSADA)
Connecticut Athletic Directors (CAAD)
National High School Athletic Coaches Ass.
IIAAA - Indiana Athletic Directors
Missouri Association of School Administrators
National Gov't Purchasing (NIGP)
MIAAA - Minnesota Athletic Directors
NABC - National Association of Basketball Coaches
MIAAA - Missouri Athletic Directors
Ohio Association of School Business Officials
FIAAA - Florida Athletic Directors
BGCA - Boys & Girls Club
NATA - National Athletic Trainers Association
NHSACA - National HS Athletic Coaches
TPSCA - Texas Private School Coaches
ASLA - American Landscape Architects
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San Angelo Football Clinic
WFX Fall - Worship Facilities Expo
OSBA - Ohio School Boards
Greenbuild
CPRA - Connecticut Parks & Recreation
IHRSA
AUSA - Association of U.S. Army Exposition
NABC- Indianapolis
Florida Interscholastic Athletic Administrators
SBE - School Building Expo
Stadium Managers Association
MIAAA - Michigan Athletic Directors
MRPA - Maryland Park & Rec
CADA - Colorado Athletic Directors
Council of Educational Facility Planners Intl.
MSBO - Michigan School Business Officials
AIA - American Institute of Architects
IADA - Illinois Athletic Directors
BCPRA - BC Parks & Recreation
SBE - School Building Expo
NACO - National Association of Counties
NIGP - National Government Purchasing
Athletic Business
K-12 Summit
MSBA - Missouri School Boards
IASB - Illinois School Boards
IPRA - Illinois Park & Rec
FCM - Federation of Canadian Municipalities
BC Park and Rec (BCPRA)
California AD show (CSADA)
Texas High School Coaches Ass. (THSCA)
PSADA - Pennsylvania State Athletic Directors
ICMA - Intl County Management
National School Board Ass (NSBA)
National Intramural Recreation & Sports Association
PGA Merchandise Show
TASA - Texas Superintendents
NSBA - National School Boards
AEPA IFB #016-H Tracks & Courts Page21of68DueDate:OCTOBER7,2015,1:30pmEDT Part C: Bid Forms
AIA - American Institute of Architects
NRPA - National Recreation & Park
NACDA - National AD Show
Home Builders Show
NACDA - National Athletic Directors Association
ASBO - American School Business Officials
AFCA - American Football Coaches
THSCA - Texas HS Coaches Association
NFHS - National High School Athletic Directors
American Football Coaches Association
NSBA - National School Boards Association
Social Media:
Twitter: www.twitter.com/beynonsports
Facebook: www.facebook.com/beynonsports
You Tube: www.youtube.com/channel/UC6Z95OiSW0MSscpNXYlqnOQ/feed
Linked-In: www.linkedin.com/company/beynon-sports
Please see Exhibit D – Exhibit L
3. Cooperative Marketing: Describe ways in which this business can collaborate with Member Agencies in
marketing the bid.
Help FieldTurf/ Beynon’s SmartBuy division explain to current and future AEPA members the value and benefits on Contract Selling. Attend requested board meetings, council meetings, etc. as part of our team to provide owners complete procurement information and opportunities for their sports surfaces project.
Provide familiarity/knowledge of member state’s cooperative procurement options. Include links for FieldTurf/ Beynon on the individual AEPA state’s cooperative website. Include FieldTurf/ Beynon logo, product information, and when applicable, project. Testimonials
and articles in the individual AEPA states cooperative marketing literature and brochures and websites.
Attendance of national and local conferences promoting partnership. A true partnership wins projects. The more we work together, the better off we are.
Webinars. Conference Calls. Lunch & Learns. Specifically designed fliers, hand-outs.
Please see Exhibit 1 – Exhibit 5
4. Sales Training: Explain how your company will education your sales staff on the AEPA contract including
timing, methods, etc.
The sole purpose of “SmartBuy” (FieldTurf’s Cooperative Purchasing division made up of Eric Fisher & Sarah Morehead) is to promote cooperative purchasing and the AEPA contract. Sales training includes:
AEPA IFB #016-H Tracks & Courts Page22of68DueDate:OCTOBER7,2015,1:30pmEDT Part C: Bid Forms
REQUIRED participation by FieldTurf and Beynon sales staffs. Top-Down backing from senior leadership.
Sharing of references and best practices. Conference calls. Lunch and learns. Several fliers that promote both the AEPA and regional participation (KCDA, CES, CREC, Greenbush
etc.) Salesforce learning modules. Marketplace updates, tips and tricks.
Please see Exhibit 6
ENVIRONMENTAL INITIATIVES
1. Describe how your products and/or services support environmental goals. Beynon Sports has been a pioneer in the development of environmentally sustainable athletic surfaces since our inception. Our state-of-the-art athletic surfaces provide a high performance medium for exercise and healthy living. Beynon Sports systems are designed to meet the stringent criteria required to earn points under numerous categories of LEED 2009 and USGBC.
2. Describe the company’s “green” objectives (i.e. LEED, reducing footprint, etc.). We have created many sustainable environmentally-friendly components to be used in our track surfaces. Each product that is designed and manufactured, and every athletic surfacing system installed by Beynon Sports contains no heavy metals, by design. This means that every product formulated by Beynon Sports is zero-mercury or mercury-free. All of our indoor products have also been GREENGUARD GOLD certified for compliance with the strict VOC emissions content. http://www.beynonsports.com/en/about-beynon/environmental-leadership
INDEPENDENT SUBCONTRACTORS, DISTRIBUTORS, INSTALLERS, ETC.
If the Bidder is not the sole provider of all goods and services provided under this contract, the following must be answered:
1. Selection Criteria for Independent Providers: Describe the criteria and process by which the business selects, certifies and approves subcontractors, distributors, installers and other independent services.
Beynon Sports Surfaces (BSS) self performs all track surfacing installation work. If our scope requires additional work outside our area of expertise we seek out the most qualified firms with impeccable reputations and the ability to stand behind their work well beyond when the warranty period expires. With over 2,000 track projects completed, BSS has developed an extensive network of reliable and professional subcontractors. Due to the critical achievement of planarity and composition tolerances that are involved in track and field construction, we prefer to work with experienced contractors that are familiar with NCAA running track construction. If this is not possible, we take a proactive approach to work on-site with the contractor to insure all NCAA and IAAF requirements are achieved and Beynon Sports Surfaces’ stringent quality thresholds are surpassed.
To become a BSS partner you must have:
Extensive experience in the design, construction and installer of running tracks and tennis courts.
At least 20 installations per year in a given market.
AEPA IFB #016-H Tracks & Courts Page23of68DueDate:OCTOBER7,2015,1:30pmEDT Part C: Bid Forms
Minimum annual purchase of polyurethane, aliphatic and various other products.
Emphasis on quality construction.
Lacks any judgements or warranty claims.
Holds proper licensing, certifications.
Please see Exhibit 7
2. Current Subcontractors, Distributors, Installers, Etc.: Provide a list of current subcontractors, distributors, installers and other independent service providers who are contracted to perform the type of work outlined in this bid in the member agency states (listed in Part A of this IFB). Include, if applicable, contractor license information and the state(s) wherein they are eligible to provide services on behalf of this business.
Beynon Sports Surfaces Dealers
Nagle Athletics
6597 Joy Rd.
Syracuse, NY 13057
www.nagleathletic.com
Cape & Island Track and Tennis
28 Commerce Park Rd
Pocasset, MA 02559
www.tennisandtrack.com
Copeland Coatings
3600 US-20
Nassau, NY 12123
www.copelandcoating.com
American Athletic (AACI)
2050 US-26
Southampton Township, NJ 08088
www.trackandturf.com
DISCLOSURES
1. Letter of Line of Credit or Annual Financial Report (REQUIRED): Attach a letter from the business’s chief financial institution indicating the current line of credit available in its name and evidence of financial stability for the past three calendar years (2010, 2011 and 2012). This letter should state the line of credit as a range (ie., “credit in the low six figures” or “a credit line exceeding five figures”). If company is a publicly traded company a complete Annual Financial Report is required in place of Line of Credit Letter.
Please see Exhibits 8 & 9
ABCD KPMG Audit 1, cours Valmy 92923 Paris La Défense Cedex France
Praxor Audit 23 rue Clapeyron 75008 Paris France
Tarkett S.A.
Statutory auditors’ report on the consolidated financial statements
Year ended 31 December 2012 Tarkett S.A.
2, rue de l’Egalité - 92748 Nanterre This report contains 52 pages
regappx 0
ABCD KPMG Audit 1, cours Valmy 92923 Paris La Défense Cedex France
Praxor Audit 23 rue Clapeyron 75008 Paris France
This is a free translation into English of the statutory auditors’ report on the consolidated financial statements issued in French and is provided solely for the convenience of English-speaking users. The statutory auditors' report includes information specifically required by French law in such reports, whether modified or not. This information is presented below the audit opinion on the consolidated financial statements and includes an explanatory paragraph discussing the auditors' assessments of certain significant accounting and auditing matters. These assessments were considered for the purpose of issuing an audit opinion on the consolidated financial statements taken as a whole and not to provide separate assurance on individual account balances, transactions, or disclosures. This report also includes information relating to the specific verification of information given in the Group's management report. This report should be read in conjunction with, and construed in accordance with, French law and professional auditing standards applicable in France. Tarkett S.A. Registered office: 2, rue de l’Egalité - 92748 Nanterre Share capital: €.316 108 260 Statutory auditors’ report on the consolidated financial statements
Year ended 31 December 2012
To the Shareholders,
In compliance with the assignment entrusted to us by your annual general meeting, we hereby report to you, for the year ended 31 December 2012, on:
• the audit of the accompanying consolidated financial statements of Tarkett S.A.;
• the justification of our assessments;
• the specific verification required by law.
These consolidated financial statements have been approved by the Management Board. Our role is to express an opinion on these consolidated financial statements based on our audit.
1 Opinion on the consolidated financial statements
We conducted our audit in accordance with professional standards applicable in France; those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit involves performing procedures, using sampling techniques or other methods of selection, to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made, as well as the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
ABCD
3
Tarkett S.A. Statutory auditors’ report on the
consolidated financial statements
In our opinion, the consolidated financial statements give a true and fair view of the assets and liabilities and of the financial position of the Group as at 31 December 2012 and of the results of its operations for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union.
2 Justification of our assessments In accordance with the requirements of article L.823-9 of the French Commercial Code (“Code de commerce”), we bring to your attention the following matters:
• Accounting estimates:
Notes 1.2.2 – “Use of estimates and judgments” and 26 – “Other contingencies” to the consolidated financial statements disclose the assessments and significant estimates made by Tarkett’s management.
In connection with our audit, we considered that those assessments and estimates related mainly to intangible and tangible assets (note 1.5.10, 1.5.15, 8 and 9), deferred tax assets (notes 1.5.22, 7 and 19), provisions (notes 1.5.20 and 20) and employee benefits (notes 1.5.18 and 21).
For these accounts, our work consisted in assessing the data and assumptions underlying the assessments and estimates, reviewing on a sample basis, the calculations performed by the Company, comparing prior years accounting estimates with the corresponding actual results, reviewing management’s approval procedures for such estimates and reviewing that the disclosures relating to these estimates in the notes to the financial statements are appropriate.
These assessments were made as part of our audit of the consolidated financial statements taken as a whole, and therefore contributed to the opinion we formed which is expressed in the first part of this report.
3 Specific verification
As required by law we have also verified, in accordance with professional standards applicable in France, the information relative to the Group, given in the parent company’s management report.
We have no matters to report as to its fair presentation and its consistency with the consolidated financial statements.
The statutory auditors,
Paris La Défense and Paris on the 20 March 2013
KPMG Audit Praxor Audit Department of KPMG S.A.
Philippe Grandclerc Florent Gesbert Partner Partner
Tarkett SA
___________________________
CONSOLIDATED FINANCIAL STATEMENTS
Year ended December 31, 2012
All figures are presented in million of Euros, except if mentioned otherwise.
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CONSOLIDATED FINANCIAL STATEMENTS CONTENT CONSOLIDATED INCOME STATEMENT ...................................................................................... 3 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ............................................... 4 CONSOLIDATED STATEMENT OF FINANCIAL POSITION ......................................................... 5 CONSOLIDATED STATEMENT OF CASH FLOWS ...................................................................... 6 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (including non controlling interests) . 7 GENERAL INFORMATION ............................................................................................................. 8 NOTE 1 – SIGNIFICANT ACCOUNTING PRINCIPLES ................................................................. 8 NOTE 2 – CONSOLIDATION SCOPE .......................................................................................... 21 NOTE 3 – EBITDA BEFORE UNUSUAL ITEMS (NON GAAP) .................................................... 22 NOTE 4 – SEGMENT INFORMATION ......................................................................................... 24 NOTE 5 – OTHER OPERATING INCOME – OTHER OPERATING EXPENSES ........................ 25 NOTE 6 – FINANCIAL RESULT ................................................................................................... 25 NOTE 7 – INCOME TAX ............................................................................................................... 26 NOTE 8 – GOODWILL .................................................................................................................. 26 NOTE 9 – TANGIBLE, INTANGIBLE AND FINANCIAL FIXED ASSETS ..................................... 27 NOTE 10 – INVENTORIES ........................................................................................................... 32 NOTE 11 – TRADE RECEIVABLES ............................................................................................. 32 NOTE 12 – OTHER RECEIVABLES ............................................................................................ 32 NOTE 13 – SHARE CAPITAL ....................................................................................................... 32 NOTE 14 – EARNINGS PER SHARE........................................................................................... 32 NOTE 15 – NET DEBT – INTEREST BEARING LOANS AND BORROWINGS ........................... 33 NOTE 16 – OTHER FINANCIAL LIABILITIES .............................................................................. 34 NOTE 17 – TRADE PAYABLES ................................................................................................... 35 NOTE 18 – OTHER LIABILITIES .................................................................................................. 35 NOTE 19 – DEFERRED TAX ....................................................................................................... 35 NOTE 20 – PROVISIONS ............................................................................................................. 36 NOTE 21 – EMPLOYEE BENEFITS ............................................................................................. 36 NOTE 22 – PERSONNEL COSTS AND DIRECTORS’ REMUNERATION .................................. 39 NOTE 23 – SHARE-BASED PAYMENT TRANSACTIONS .......................................................... 39 NOTE 24 – FINANCIAL RISKS AND FINANCIAL INSTRUMENTS ............................................. 40 NOTE 25 – LEASE COMMITMENTS ........................................................................................... 46 NOTE 26 – OTHER CONTINGENCIES ........................................................................................ 46 NOTE 27 – RELATED PARTIES .................................................................................................. 47 NOTE 28 – SUBSEQUENT EVENTS ........................................................................................... 47 NOTE 29 – MAIN CONSOLIDATED ENTITIES ............................................................................ 48
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CONSOLIDATED INCOME STATEMENT
Note 2012 2011
Continuing operations
Invoiced sales 2,429.2 2,183.0 Sales reductions (110.7) (94.6) Net revenue 2,318.5 2,088.3
Cost of sales (1,792.2) (1,657.5) Gross profit 526.2 430.8
Other operating income (5) 6.4 12.6 Selling and distribution expenses (214.3) (212.4) Research and development expenses (19.8) (18.1) General and administrative expenses (136.7) (114.0) Other expenses (5) (10.5) (7.6) Results from operating activities (3) 151.3 91.3
Financial income 2.2 1.8 Financial expenses (27.0) (23.1) Net finance costs (6) (24.7) (21.3)
Share of profit of equity accounted investees (net of income tax) - - Profit before income tax 126.6 70.0
Income tax expenses (7) (41.4) (44.8) Profit from continuing operations 85.2 25.2
Discontinued operations
Profit (loss) from discontinued operations (net of income tax) - - Profit for the period 85.2 25.2
Attributable to:Owners of the Company 83.6 27.1 Non-controlling interests (NCI) 1.6 (1.9)
Profit for the period 85.2 25.2
Earnings per shareBasic earnings per share (in EUR) (14) 5.3 1.7
Continuing operationsBasic earnings per share (in EUR) (14) 5.3 1.7
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2012 2011
Profit for the period 85.2 25.2
Other comprehensive income (OCI)Foreign currency translation differences for foreign operations (8.9) 1.1 Changes in fair value of cash flow hedges 0.2 0.5 Defined benefit plan actuarial gains and losses (28.9) (7.9) Tax on other comprehensive income 8.7 0.3
Other comprehensive income for the period, net of tax (28.9) (6.1)
Total comprehensive income for the period 56.3 19.1
Attributable to:Owners of the Company 54.9 20.8 Non-controlling interests 1.4 (1.7)
Total comprehensive income for the period 56.3 19.1
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Note Dec 31, 2012 Dec 31, 2011
ASSETSGoodwill (8) 449.1 276.8Intangible assets (9) 98.5 106.3Property, plant and equipment (9) 429.4 387.4Financial assets (9) 35.2 26.7Deferred tax assets (19) 96.7 81.6Other non-current assets (12) - - Non-current assets 1,108.8 878.7
Inventories (10) 339.1 284.3Trade receivables (11) 283.1 283.6Other receivables (12) 66.7 55.2Cash and cash equivalents (15) 81.4 53.9Current assets 770.4 676.9
TOTAL ASSETS 1,879.2 1,555.7
EQUITY AND LIABILITIESShare capital (13) 316.1 316.1Share premium and reserves 138.8 138.8Retained earnings 144.9 144.0Net profit for the period 83.7 27.1Equity attributable to equity holders of the parent 683.6 626.1Non-controlling interests 10.1 8.7Total Equity 693.7 634.8
Interest-bearing loans and borrowings (15) 342.8 270.4Other financial liabilities (16) 6.8 8.8Deferred tax liabilities (19) 5.4 5.4Employee benefits (21) 142.2 109.4Provisions and other non-current liabilities (20) 38.1 35.2Non-current liabilities 535.2 429.2
Trade payables (17) 221.7 189.3Other liabilities (18) 189.9 143.6Interest-bearing loans and borrowings (15) 190.8 115.7Other financial liabilities (16) 11.6 11.9Provisions and other current liabilities (20) 36.2 31.1Current liabilities 650.3 491.7
TOTAL EQUITY AND LIABILITIES 1,879.2 1,555.7
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CONSOLIDATED STATEMENT OF CASH FLOWS
2012 2011
Cash flows from operating activities
Net profit before tax 126.6 70.0 Adjustments for
Depreciation and amortization 88.8 98.3 (Gain) loss on sale of fixed assets - 0.2 Net finance costs 24.8 21.3 Change in provisions and other non-cash items 7.6 (8.4)
Operating profit before working capital changes 247.9 181.4
Increase (-) / Decrease (+) in trade receivables 38.1 (7.2) Increase (-) / Decrease (+) in other receivables (4.9) 2.1 Increase (-) / Decrease (+) in inventories (21.2) (16.9)
Increase (+) / Decrease (-) in trade payables 28.6 (13.1) Increase (+) / Decrease (-) in other payables 7.8 12.8
Effect of changes in assets and liabilities 48.4 (22.3)
Cash generated from operations 296.2 159.1
Net interest paid (22.6) (17.1) Net income taxes paid (45.3) (38.6) Other items 0.7 (0.5)
Other operating items (67.2) (56.2)
Net cash from operating activities 229.0 102.9
Cash flows from investing activities
Acquisition of subsidiaries net of cash acquired (259.2) (4.4) Acquisition of property, plant and equipment (9) (85.0) (91.8) Proceeds from sale of property, plant and equipment (9) 0.7 1.0 Dividends received - (0.1) Impact of scope changes - -
Net cash from investing activities (343.5) (95.2)
Cash flows from financing activities
Proceeds from the issue of share capital and the sale of own shares - -Proceeds from loans and borrowings 213.8 139.4 Repayment of loans and borrowings (70.3) (17.0) Payment of finance lease liabilities (0.8) (0.1) Dividends paid - (102.5)
Net cash from financing activities 142.7 19.8 Effect of exchange rate fluctuations on cash held (0.6) (1.7) Effect of changes in accounting - 0.2 Net increase (decrease) in cash and cash equivalents 27.5 26.0 Cash and cash equivalents, beginning of period 53.9 27.9 Cash and cash equivalents, end of period 81.4 53.9
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (including non-controlling interests)
Share capital
Share premium
Reserves Tarkett SA
Own shares reserve
Translation
reserve Fair value
reserve Retained earnings Total
Non-controlling interests
Total equity
Balance at January 1, 2011 316.1 107.2 31.7 (23.4) (63.9) (4.5) 337.0 700.2 7.8 708.0
Net profit for the period - - - - - - 27.1 27.1 (1.9) 25.2 Other comprehensive income - - - - 0.9 0.2 - 1.2 0.2 1.3 Actuarial gains & losses on pensions - - - - - - (7.5) (7.5) - (7.5) Total comprehensive income for the period - - - - 0.9 0.2 19.7 20.8 (1.7) 19.1
Issue of shares - - - - - - - - - - Dividends - - - - - - (102.5) (102.5) - (102.5) Own shares (acquired) / sold - - - (0.2) - - - (0.2) - (0.2) Share based payment transactions - - - - - - 0.6 0.6 - 0.6 Share options exercised - - - - - - - - - - Acquisition of NCI without a change in control - - - - - - 7.2 7.2 0.8 8.0
Acquisition of subsidiary with NCI - - - - - - - - 1.9 1.9 Other - - - - - - - - - - Total transactions with owners - - - (0.2) - - (94.7) (94.9) 2.7 (92.2)
Balance at Dec 31, 2011 316.1 107.2 31.7 (23.6) (63.0) (4.3) 261.9 626.1 8.7 634.8
Balance at January 1, 2012 316.1 107.2 31.7 (23.6) (63.0) (4.3) 261.9 626.1 8.7 634.8 Net profit for the period 83.6 83.6 1.6 85.2 Other comprehensive income (8.7) 0.2 (8.6) (0.1) (8.7) Actuarial gains & losses on pensions (20.2) (20.2) (20.2) Total comprehensive income for the period - - - - (8.7) 0.2 63.4 54.9 1.4 56.3
Issue of shares - - Dividends - - Own shares (acquired) / sold (0.9) (0.9) (0.9) Share based payment transactions 2.5 2.5 2.5 Share options exercised - - Acquisition of NCI without a change in control 1.2 1.2 1.2
Acquisition of subsidiary with NCI (0.2) (0.2) (0.2) Other - - Total transactions with owners - - - (0.9) - - 3.5 2.6 - 2.6
Balance at Dec 31, 2012 316.1 107.2 31.7 (24.5) (71.8) (4.1) 328.9 683.5 10.1 693.7
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GENERAL INFORMATION Tarkett SA’s consolidated financial statements at December 31, 2012 comprise the Company and its subsidiaries (hereafter the “Group”) as well as its interests in associates and joint ventures. On February 15, 2013, the Board of Directors established and authorized the publication of the Consolidated Financial Statements of the Group for the year ended December 31, 2012, which will be submitted for approval to the shareholders’ meeting to be held on May 23, 2013.
NOTE 1 – SIGNIFICANT ACCOUNTING PRINCIPLES 1.1 STATEMENT OF COMPLIANCE The Consolidated Financial Statements of the Group (including the notes thereto) have been prepared in accordance with the IFRS (International Financial Reporting Standards) as adopted by the European Union as of December 31, 2012. 1.2 BASIS OF PREPARATION
1.2.1 ACCOUNTING POLICIES The accounting policies applied by the Group in the Consolidated Financial Statements as of December 31, 2012, are the same as those used as of December 31, 2011 with the exception of the changes described below:
a Amendments or revisions to existing standards and interpretations applied during the period The Group has considered the following amendments or revisions to existing standards and interpretations in the preparation of its consolidated financial statements. Those amendments and interpretations were approved by the European Union and their application was mandatory: • IFRS 7 ‘’Financial instruments: Disclosures on derecognition’’: This amendment promotes transparency in the
reporting of transfer transactions of financial assets and improve users’ understanding of the risk exposures relating to transfers of these assets and the effect of those risks on an entity’s financial position, particularly those involving securitisation of financial assets. The adoption of these amendments is expected to have no effect on the Group's financial position and disclosures since the Group is not involved in any arrangement that transfers financial assets.
• Annual improvements: no significant impact on the consolidated financial statements. b Early adoption of standards or interpretations
No standards or interpretations have been early applied by the Group.
1.2.2 USE OF ESTIMATES AND JUDGEMENTS
The preparation of financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of preparation of the financial statements and reported income and expenses for the period. The management reviews these estimates and assumptions on an ongoing basis, by reference to past experience and various other factors considered as reasonable which form the basis for assessing the carrying amount of assets and liabilities. Actual results may differ significantly from these estimates, if different assumptions or circumstances apply. These judgments and estimates relate principally to:
- Allocation of the acquisition cost of business combinations. Such allocations may involve the use of assumptions in respect of future cash flows (note 2).
- Impairment testing of assets: Group management has undertaken those tests on the basis of its best estimates of the future activity of the relevant cash-generating units and of appropriate discount rates (note 8 and note 9).
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- Accounting treatment of financial instruments: the Group has performed the requisite valuation procedures and has tested the effectiveness of its hedging instruments (note 24).
- Provisions for employee benefits: provisions have been estimated with the assistance of an external actuary (note 21).
- The net tax position reflects the Group’s best estimate of the trend of its future results for tax purposes (note 19).
- All other provisions, such as warranties and litigations, have been booked upon management best estimate using when necessary statistical approaches (note 20).
In preparing these financial statements, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements as of and for the year ended December 31, 2011. Where the accounting treatment of a specific transaction is not addressed by any accounting standard or interpretation, the management applies its judgment to define and apply accounting policies that will lead to relevant and reliable information, so that the financial statements:
- provide a true and fair view of the Group’s financial position, financial performance and cash flows; - reflect the substance of transactions; - are prepared on a prudent basis; - and are complete in all material aspects.
The Group’s consolidated financial statements have been prepared on the historical cost basis with the exception of the following assets and liabilities which have been measured at fair value: derivatives, investments held for trading and available-for-sale financial assets, pension plan assets and other assets when required. The carrying amount of assets and liabilities subject to hedging has been adjusted in line with the changes in fair value attributable to the hedged risks. Non-current assets and groups of related assets and liabilities held for sale have been measured at the lower of their carrying amount and fair value less costs to sell. 1.3 BASIS OF PRESENTATION Income statement Expenses are classified in the income statement according to their function. Statement of financial position The balance sheet distinguishes current and non-current assets and current and non-current liabilities. Current assets comprise assets intended to be sold or consumed during the Group’s normal operating cycle and cash or cash equivalents. Other assets are classified as non-current assets. Current liabilities comprise liabilities with maturities during the Group’s normal operating cycle or within twelve months of the balance sheet date. Other liabilities are classified as non-current liabilities. Deferred tax assets and liabilities, as required by IAS 1 “Financial Statements Presentation”, are exclusively classified as non-current. Statement of cash flow The statement of cash flow is presented using the indirect method. Statement of Comprehensive Income Other income or expenses that are not recognized in profit and loss as authorized by the IFRS. 1.4 BASIS OF CONSOLIDATION Subsidiaries Subsidiaries are entities controlled by the Group. Control exists when the Group has the power, directly or indirectly, to govern the financial and operating policies of an entity. Control is generally presumed to exist if the Group holds more than half of the entity’s voting rights. In assessing control, potential voting rights that are presently exercisable or convertible are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.
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The accounting policies of subsidiaries have been changed when necessary to align them with the policies adopted by the Group. Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling interests, even if doing so causes the non-controlling interests to have a deficit balance. In case of a loss of control, the Group derecognises the assets and liabilities of the subsidiary, any non-controlling interest and the other components of equity related to the subsidiary. Any surplus on deficit arising from the loss of control is recognised in profit and loss. Associates Associates are those entities for which the Group has significant influence, but not control, over their financial and operating policies. Significant influence is generally presumed to exist if the Group holds at least 20% of the entity’s voting rights. Associates are accounted for in the consolidated financial statements using the equity method. Under this method, the investment in an associate is initially recognised at cost and the carrying amount of the investment is subsequently adjusted by the increase or decrease of the Group’s share in the associate’s net assets as well as by any impairment loss. The Group’s share of profit or loss of the associate is reported as a separate line item in the income statement from the date that significant influence commences until the date that significant influence ceases. Tarkett SA has no associates in 2012 as in 2011. Jointly controlled entities Jointly controlled entities are those entities over whose activities the Group has joint control, established by contractual agreement with one or more partners. Joint control implies that the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control. Jointly controlled entities are subject to proportionate consolidation in the consolidated financial statements. Under this method, the consolidated balance sheet includes the Group’s share of the assets it jointly controls, and liabilities for which it is jointly responsible. The financial statements of jointly controlled entities are reflected in the consolidated financial statements from the date that joint control commences until the date that joint control ceases. 1.5 ACCOUNTING POLICIES The accounting policies described hereafter have been applied to all the periods presented in the consolidated financial statements and have been uniformly applied by all Group entities.
1.5.1 BUSINESS COMBINATION Consideration Investments in subsidiaries are accounted for by applying the purchase method. The acquired entity’s identifiable assets, liabilities and contingent liabilities are recognised at their fair values at the acquisition date and any positive difference between the fair value of the consideration transferred, including the fair value of any previously held equity interest in the acquiree and the Group’s share in those identifiable assets, liabilities and contingent liabilities is recognised as goodwill in the assets of the balance sheet. Any negative difference is immediately recognised in profit or loss. The analysis of goodwill is finalised within twelve months of the acquisition date except if the Group receives the information it was seeking about facts and circumstances that existed as of the acquisition date or learns that more information is not obtainable.
Transaction costs, other than those associated with the issue of debt or equity securities, that the Group incurs in connection with a business combination are expensed as incurred. Non-controlling interests
The Group elects on a transaction-by-transaction basis whether to measure non-controlling interests at fair value, or at their proportionate share of the recognized amount of the identifiable net assets of the acquiree, at the acquisition date. Business combinations involving successive purchases When a business combination involves successive purchases, each significant transaction is independently analysed for the purposes of determining the fair values of the identifiable assets, liabilities and contingent liabilities acquired and the amount of goodwill arising.
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When an acquisition is achieved in stages (“step acquisition”), the identifiable assets and liabilities are recognized at full fair value when control is obtained, and a gain or loss is recognized in P&L for the difference between the fair value and the carrying amount of the previously held equity interest in the acquiree.
1.5.2 ACQUISITION OF NON-CONTROLLING INTERESTS The Group has accounted, for acquisitions of non-controlling interests in subsidiaries, so far as follows: the identifiable assets, liabilities and contingent liabilities attributable to non-controlling interests acquired subsequent to the Group’s obtaining control of an entity are not re-valued. Any difference between acquisition cost and the Group’s share of net assets attributable to the non-controlling interests is recognised as an adjustment to equity.
1.5.3 OPTIONS Share put options granted by the Group When the Group undertakes by agreement to purchase non-controlling interests, or provides non-controlling interests with the option of disposing of their shares to the Group at an agreed time and for a specified price (which may be payable in cash or by issue of shares), the Group consolidates the entity as though the non-controlling interests had already been acquired and recognises a liability for the present value of the price payable in the event that the non-controlling interests exercise their option. This liability is discounted over the option period. This liability is discounted over the option period and any change in its valuation is accounted for through equity. Share call options granted to the Group The consolidation method to apply on an entity in respect of which the Group has the option of purchasing additional shares is based on the percentage of interest expected to result from exercise of that option.
1.5.4 FOREIGN CURRENCY TRANSLATION The functional currency of Tarkett SA and its subsidiaries located in the Euro zone is Euro. Group entities operate on an autonomous basis and therefore the functional currency of entities operating outside the Euro zone is generally their local currency, with the exception of the entities located in Eastern Europe which use the Euro as their functional currency. IAS 21 “The Effects of Changes in Foreign Exchange Rates” defines the accounting for transactions and balances in foreign currencies. Foreign currency transactions Transactions in foreign currencies are translated at the foreign exchange rate as of the date of the transaction. Foreign exchange rate differences arising on these transactions are recognized either in the operating profit for business purposes, or in the financial result for financing transactions. Some items are covered by hedging transactions; the accounting treatment for those transactions is described in note 1.5.19. Financial statements in foreign currency On the balance sheet date, assets and liabilities are translated at the closing rate, and income and expenses are translated at the average exchange rate for the period. Foreign currency differences are recognised in other comprehensive income (OCI), and presented in the translation reserve in equity. When a foreign operation is disposed of, the cumulative amount in the translation reserve related to that foreign operation is reclassified to P&L as part of the gain/loss on disposal classified as financial expenses. When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-controlling interests. In the case of the subsidiaries outside the Euro zone whose functional currency is the Euro, non-monetary items are translated using the historical exchange rates whilst monetary items are translated using the foreign exchange rates ruling at the balance sheet date. Net investment in foreign operations When the settlement of a monetary item receivable or payable to a foreign operation is neither planned nor likely in the foreseeable future, foreign exchange gains and losses arising from such monetary item are considered to form
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part of a net investment in a foreign operation and are recognised in other comprehensive income (OCI) and presented in the translation reserve.
1.5.5 SEGMENT REPORTING IFRS 8 requires an entity to report financial and descriptive information about its reportable segments. Reportable segments are operating segments or an aggregation of operating segments that do not meet some quantitative thresholds. IFRS 8 defines an operating segment as follows. An operating segment is a component of an entity:
- that engages in business activities from which it may earn revenues and incur expenses, - whose operating results are reviewed regularly by the entity’s chief operating decision maker to make
decisions about resources to be allocated to the segment and assets, its performance, - for which discrete financial information is available.
The Group’s activities have been segmented based on its management structure or divisions and differences in products reflecting the Tarkett Group’s internal structure. The Group has identified two reportable segments:
- Flooring activities, - Sports activities.
For each reportable business segment, separate disclosure is provided of the related sales, main profit and loss items, profit or loss before tax, total assets and liabilities, total tangible and intangible assets, depreciation. In addition, IFRS 8 requires the entity to report selected information by geographical areas. The Group has identified four reportable areas:
- European Union, - North America, - Other OECD countries, - Emerging countries.
1.5.6 REVENUE RECOGNITION
Revenue from the sale of goods is recognised in profit or loss when the significant risks and rewards of ownership have been transferred to the buyer. Revenue from services rendered or from construction contracts is recognised in profit or loss in proportion to the stage of completion of the transaction at the balance sheet date. The stage of completion is assessed by reference to surveys of work performed. An expected loss on a contract is recognised immediately in profit or loss. Net sales comprise revenue from the sale of goods and services net of rebates, and after elimination of intragroup sales.
1.5.7 GRANTS Grants relating to assets are deducted at the carrying amount of the financed assets. The grants are thus recognised as income over the lives of the assets by way of a reduced depreciation charge. Other grants are recognised when there is reasonable assurance that the Group will comply with the conditions attaching to them and that the grants will be received. In this case, they are recognised as income on a systematic basis over the periods necessary to match them with the related costs which they are intended to compensate.
1.5.8 EXPENSES Cost of sales Cost of sales comprises the cost of manufactured products, the acquisition cost of purchased goods which have been sold, and the supply chain costs for logistic and freight. Selling and distribution expenses Selling and distribution expenses comprise the expenses of the marketing department and the sales force, as well as advertising expenses, distribution expenses, sales commissions and bad debts.
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Research and development costs Research and development costs are recognised as expenses when incurred, unless the criteria are met for them to be capitalised, as per note 1.5.10. General and administrative expenses General and administrative expenses comprise the remuneration and overhead expenses associated with management and administrative personnel with the exception of amounts charged to other cost centres. Net financial items Net financial items comprise interest payable on borrowings and receivable on investments, dividend income, foreign exchange gains and losses on financial assets and liabilities. Operating lease payments Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease. Capital lease payments Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability.
1.5.9 INCOME TAXES Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognized in the income statement except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the balance sheet date, and any adjustment to tax payable with respect to previous years. Income tax is calculated based on the rules applicable in each country where the Group operates. The “Cotisation sur la Valeur Ajoutée des Entreprises (C.V.A.E.)” tax contribution enacted in France on the basis of the value added of the statutory accounts corresponds for the Group to the definition of Income Tax, as stated by IAS 12.2. Similar treatment has been adopted for similar other tax contributions based on a net of products and costs amount even if this amount could be different from the accounting net income.
1.5.10 INTANGIBLE ASSETS Goodwill For the measurement of goodwill at initial recognition, Tarkett applies IFRS 3 Revised, see 1.5.1, except for acquisitions accounted for before December 31, 2009 for which IFRS 3 (2004) was applied. Negative goodwill (badwill) is recognised directly in profit or loss. Goodwill is allocated to cash-generating units and is not amortised, but instead is tested annually for impairment on the basis described in note 1.5.15. Subsequently, goodwill is measured at cost less accumulated impairment losses. In respect of equity accounted investees, the carrying amount of goodwill is included in the carrying amount of the investment and an impairment loss on such investment is not allocated to any asset, including goodwill that forms part of the carrying amount of the equity accounted investee. Research and development Expenditure on research and development are expensed as incurred (IAS 38.5 and IAS 38.11–38.23) except when the criteria for capitalisation of such expenditure are met. Patents Patents obtained by the Group are stated at cost less accumulated amortization and impairment losses. Capitalized costs for internally generated patents principally relate to the costs of legal counsel. Patents capitalized are amortized on a straight-line basis over the length of the patent. Amortization starts when the patent is issued.
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Softwares Softwares are stated at cost less accumulated amortization and impairment losses. Softwares are amortized from the date they are available for use on a straight line basis. Amortization Amortization is charged to profit and loss on a straight-line basis over the estimated useful lives of intangible assets unless such lives are indefinite. Goodwill and other intangible assets with an indefinite useful life are tested systematically for impairment at least once a year, as per described in note 1.5.15. Other intangible assets are amortized from the date that they are available for use. The estimated useful lives are as follows:
Patents and trademarks: Length of the patent Development costs: 3 to 62/3 years IT Softwares: 3 to 5 years
1.5.11 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Acquisition cost Acquisition cost includes purchase cost or production cost plus the other costs incurred for bringing the items to their operating location and condition. The cost of a self-constructed asset includes the costs of raw materials and direct labour, the initially estimated cost of any obligation for dismantling, removing and restoring the site on which the asset is located, and an appropriate allocation for directly attributable production overhead. Borrowing costs attributable to the acquisition of items of property, plant and equipment are capitalised should they be significant. When an asset is acquired in a foreign currency, any subsequent exchange difference does not affect the asset’s carrying amount. When an item of property, plant and equipment includes material components with different useful lives, each major component is accounted for separately. Subsequent costs Replacements and improvements are capitalized, while general repairs, day to day servicing and maintenance are charged to expenses as incurred. Depreciation Assets are depreciated and charged to profit or loss over their expected useful lives using the straight-line method. The estimated useful lives are as follows: Buildings: 20-30 years Industrial plant and equipment: 2-10 years Other equipment and supplies: 3-5 years Depreciation methods, useful lives and residual values are reviewed and adjusted if appropriate. Capital leases Leases in terms of which the Group assumes substantially all of the risks and rewards of ownership are classified as capital leases. Assets acquired under capital leases are recognised as items of property, plant and equipment at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease. Lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. The bases of depreciation and subsequent measurement of the related assets are similar to those applying to other tangible fixed assets except in the case where the lease period is shorter than the asset’s estimated useful life and it is not reasonably certain that transfer of title will take place at the end of the lease.
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Leases for which a significant portion of the risks and rewards incidental to ownership of the leased assets remains with the lessor are classified as operating leases, with lease payments recognised as an expense on a straight-line basis over the lease term.
1.5.12 NON-CURRENT ASSETS HELD FOR SALE Immediately before classification as held for sale, the carrying amounts of assets (and groups of related assets and liabilities) are revised in accordance with the applicable standards IFRS 5. Then, on initial classification as held for sale, non-current assets and disposal groups are recognised at the lower of their carrying amount and fair value less costs to sell. Impairment losses on initial classification as held for sale are included in profit or loss. A discontinued operation is a component of a Group’s business that represents a separate major line of business or geographical area of operations or is a subsidiary acquired exclusively with a view to resale. Classification as a discontinued operation occurs upon disposal or when the operation meets the criteria to be classified as held for sale, if earlier. Non-current assets are reclassified from held for sale to held for use if they no longer meet the criteria to be classified as held for sale. Upon reclassification as held for use, a non-current asset is re-measured at the lower of its recoverable amount and the carrying amount that would have been recognised had the asset never been classified as held for sale. The calculation of this carrying amount should include any depreciation that would have been recognised had the asset not been classified as held for sale. In addition, reclassification as held for use creates one of the rare circumstances when reversals of goodwill impairment are recognised. This may occur if the recoverable amount of goodwill exceeds its carrying amount as a result of impairment losses recognised in respect of the held for sale disposal Group that were allocated to goodwill. Any resulting adjustment is recognised in profit or loss. When an interest in an associate or a jointly controlled entity classified as held for sale is reclassified as held for use, the equity method or proportionate consolidation is applied retrospectively from the date of its reclassification as held for sale. Financial statements for earlier periods that classify the investment as held for sale are amended accordingly.
1.5.13 ACCOUNTS RECEIVABLE Accounts receivable are stated at their cost less any allowance for doubtful accounts. The allowance for doubtful accounts is based on the management’s assessment of the recoverability of specific customer accounts and the ageing of the accounts receivable. If there is deterioration in a major customer’s creditworthiness or if actual defaults are higher than the historical experience, the management’s estimates of the recoverability of amounts due to the Company could be adversely affected.
1.5.14 INVENTORIES Inventories are stated on a FIFO basis (first in, first out) at the lower of manufacturing/acquisition costs and net realizable value. Manufacturing costs of self-produced inventories comprise all costs which are directly attributable and a systematic allocation of production overhead and depreciation of production facilities based on normal operating capacity. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. Inventories can be classified into raw material, consumables, semi-finished goods & work in progress, and finished goods.
1.5.15 IMPAIRMENT
a) Non-financial assets Annual impairment testing Goodwill and other intangible assets with indefinite useful lives are systematically tested for impairment once a year.
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The carrying amounts of the Group’s assets, other than financial and deferred tax assets and liabilities, are reviewed to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. The recoverable amount of assets is the greater of their net selling price minus cost to sell and value in use. Value in use is calculated by discounting estimated future cash flows for each cash-generating unit with the exception of borrowing costs and income tax. For this purpose, use is made of 3-year plans (extrapolated by an additional year), as well as of a terminal value for each cash-generating unit. The main assumptions used are a pre-tax discount rate of 10.0% in 2012 kept identical to 2011. The growth rates on sales are between -2% (short term perspectives on the European Union markets) and +13% (emerging countries mainly) over a 4-year period (2013 to 2016), depending on the area and the year. After the 3-year period, a similar growth than between 2014 and 2015 has been assumed. The assessment of the terminal value uses the projection to infinity with a yearly growth rate of 3%, which considers that the Group operates on mature and growing business and markets. In assessing value in use, the estimated cash flows associated with cash-generating units recognised for operating purposes are discounted to their present value using a pre-tax weighted average cost of capital (WACC) discount rate that reflects current market assessments of the time value of money and the risks specific to each financing means. For this purpose, goodwill has been allocated over cash-generating units. On September 2012, 28th the Group acquired the Tandus Group in the United States of America in order to enlarge its development on the US flooring markets as Tandus is specialized in the production and the sale of carpet products, tiles and modular. This business meets the definition of a CGU, as the sale of carpet is an independent business which generates cash flows and is managed independently from other businesses. Therefore a new CGU has been created. From January 1st, 2012, the business Sport Indoor has been mainly incorporated into business Residential Heterogenous. Therefore the CGU03 Sport Indoor has been included into the CGU06 Resilient Heterogenous for Impairment testing purposes only for Western Europe. Impairment losses An impairment loss is recognised whenever the carrying amount of a cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating unit and then, to reduce the carrying amount of the other assets in the unit on a liquidity basis. An impairment loss in respect of goodwill is not reversed. In respect of other assets, an impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.
b) Non-derivative financial assets A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. For an investment in an equity security, a significant or prolonged decline on its fair value below its costs is indicative of impairment. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Impairment loss on available for sale financial assets is recognised by reclassifying the losses accumulated in the fair value reserve in equity to profit or loss.
1.5.16 SHARE CAPITAL Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share options are recognized as a deduction from equity, net of any tax effects. When share capital recognized as equity is repurchased, the amount of consideration paid, which includes directly attributable costs, is net of any tax effects, and is recognized as a deduction from equity classified as own shares. When own shares are sold or
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reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is transferred to/from retained earnings.
1.5.17 SHARE-BASED PAYMENT TRANSACTIONS
Share-based payment programs include both programs allowing Group employees to acquire shares of the Company under specific conditions and programs awarding free shares to Group employees. The current existing programs and their related accounting treatment are described in the note 23 of the Group financial statements.
1.5.18 EMPLOYEE BENEFITS Within the Tarkett Group, various systems for providing for retirement benefits depending on the legal, economic and tax environment of each country exist. In accordance with the laws and uses applied in each country, Tarkett SA participates in pension, welfare, health and retirement benefit plans whose benefits are dependent on various factors such as length of service, salary and the contributions paid to institutions. The Group’s obligation in respect of such arrangements is calculated by independent actuaries, according to IAS 19. Defined contribution plans Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into a separate entity (insurance company or pension fund) and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods. These contributions, based on services rendered by employees, are recognised as an expense in profit or loss as incurred. Defined benefit plans Defined benefit plans are post-employment benefit plans under which the Group assumes the obligation of providing employees with future benefits and thus also assumes the related actuarial and investment risks. The defined benefit liability is calculated using the projected unit credit method and is discounted to its present value from which the amount of past service cost for the period may also be deduced. The detailed actuarial calculation requires the use of actuarial hypotheses for demographic variables (mortality, employee turnover) and economic variables (future increases in salaries and medical costs, discount rate). When defined benefit plans are totally or partially funded by contributions paid to a separate fund or insurance company, those entities’ assets are measured at their fair value and their amount is deducted from the obligation to define net liability disclosed in the Group’s balance sheet. Actuarial gains and losses Actuarial gains and losses comprise both the effects of changes in actuarial assumptions and the effects of differences between the previous actuarial assumptions and what has actually occurred. Actuarial gains and losses for retirement benefit plans are immediately recognised in other comprehensive income, as per the SoRIE method. Past service cost When changes occur to a defined benefit plan, past service cost for the changed benefit liability is recognised as an expense immediately in profit and loss to the extent that the benefits are already vested or otherwise, is recognised over the average period until the benefits become vested. Curtailment The effects of any liquidation of plans or reduction of benefits are recognised in profit or loss at the date of liquidation or reduction; the gains or losses recognised reflect both changes in the present value of obligations or in the fair value of plan assets (in turn reflecting, in both cases, reassessment of the applicable actuarial hypotheses), as well as immediate recognition of past service cost.
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1.5.19 FINANCIAL INSTRUMENTS The Group has applied IFRS 7 which defines the disclosures to be made in respect of financial assets and liabilities. IAS 39 continues to define the bases of recognition and measurement applicable to financial assets and liabilities. Financial transactions are recorded based on the effective date of payment. Non-derivative financial assets Financial assets are initially recognised at their fair value plus any applicable transaction costs. At the date of acquisition the Group classifies its financial assets, depending on the purpose of their acquisition, in one of the four categories provided for by IAS 39. The classification determines the basis of measurement of each financial asset at the subsequent balance sheet dates, whether at amortised cost or at fair value. Held-to-maturity investments are exclusively securities with fixed or determinable payments (other than items defined as loans and receivables) acquired with the intention of holding them to maturity. They are accounted for at amortised cost using the effective interest method. The net income recognised in respect of such assets comprises the aggregate of interest receivable and any impairment losses. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Subsequent to initial recognition, they are accounted for at amortised cost, using the effective interest method, less any impairment losses reflecting the risk of non-recovery. The category includes trade and other loans and receivables. The net income recognised in respect of such assets comprises the aggregate of interest receivable and any impairment losses. Subsequent to initial recognition, available for sale financial assets are measured at fair value, and changes therein, other than impairment losses (see 1.5.15) recognised in other comprehensive income. The category mainly comprises non-consolidated long-term investments which are measured in the balance sheet at their acquisition cost assuming the absence of an active market for the securities held. The net income recognised in respect of such assets comprises the aggregate of dividends receivable, any impairment losses and the gains or losses arising on disposal. Financial assets and liabilities at fair value through profit or loss include both items held for trading, i.e. that the Group has from the outset the intention to sell in the near future (including derivatives not qualified as hedging instruments), and assets specifically designated as at fair value through profit or loss. These assets are adjusted to their fair value at each balance sheet date and the resulting gains and losses are recognised in profit or loss. This category notably includes cash and cash equivalents. The net income recognised in respect of such assets comprises the aggregate of interest receivable, changes in fair value and the gains or losses arising on disposal. Cash and cash equivalents comprise cash at bank and on hand, term deposits and other monetary investments with initial maturities not exceeding three months and subject to an insignificant risk of changes in value. For purposes of cash flows statement presentation, cash and cash equivalents are defined on the same basis as in the balance sheet.
Non-derivative financial liabilities
Financial liabilities comprise financial debt and trade and other operating payables. With the exception of items classified as financial liabilities at fair value through profit or loss, loans payable and other financial liabilities are initially recognised at their fair value less any applicable transaction costs. They are subsequently measured at amortised cost using the effective interest rate method. Given their short maturities, trade and other operating payables are measured at historical cost since use of the amortised cost basis would produce very similar results. Derivative instruments The Group uses derivative financial instruments to hedge its exposure to the foreign currency risk and interest rate risk associated with its purchases and sales denominated in foreign currencies and with its financing and investment transactions. The derivatives employed comprise in particular interest rate swaps and options, other forward contracts and foreign currency options. In accordance with its policy in respect of financial instruments, the Group neither uses nor issues derivative financial instruments for trading purposes, but derivatives which do not meet the criteria qualifying them for hedge accounting are nevertheless accounted for similarly to speculative instruments.
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Derivatives are recognised in the balance sheet at their fair value (whether positive or negative) with changes in fair value immediately recognised in profit or loss. Derivative instruments which qualify for hedge accounting and meet the applicable effectiveness tests are classified either as fair value hedges (when their purpose is to hedge an existing asset or liability’s exposure to the risk of changes in its fair value) or cash flow hedges (when their purpose is to hedge the exposure to changes in the cash flows associated with highly probable future transactions). Changes in the fair value of fair value hedges of exposure to foreign currency and interest rate risk are recognised as part of financial income or expense. The hedged assets and liabilities are also adjusted to their fair value and the changes in fair value attributable to the hedged risk(s) are equally recognised as part of financial income or expense. Changes in the fair value of cash flow hedges of exposure to foreign currency and interest rate risk are recognised within a specific equity reserve with the exception of the amount of such change attributable (in the case of options or forward currency contracts) to the instruments’ time value and premium/discount which are treated as part of financial income or expense. The amendment to IAS 39 that took effect from 1st January 2006 allows for a future and highly probable intragroup transaction to be hedged provided that the transaction is denominated in a currency other than the functional currency of the entity entering into the transaction and that the foreign currency risk will affect consolidated profit or loss. The gains and losses initially recognised directly in equity are transferred to profit or loss during the period in which the hedged future transaction itself produces an impact on profit or loss. If a derivative instrument ceases to meet the criteria for hedge accounting, the cumulative amount recognised in equity at that date remains in equity until the date of occurrence of the transaction initially hedged, but if the transaction is no longer expected to occur then the amount is immediately transferred in full to profit or loss. Derivative instruments which cease to meet the criteria for hedge accounting are reclassified as held for trading and changes in their fair value are recognised as part of financial income or expense. The net income recognised in respect of derivatives held for trading comprises the aggregate of cash flows exchanged and of changes in the fair value of each instrument. Finally, the effective portion of the foreign exchange gain or loss associated with hedges of net investments in foreign operations is recognised directly in equity; the ineffective portion is recognised immediately in profit or loss. Financial income and expense Financial expense includes bank fees and interest payable on borrowings accounted for at amortised cost using the effective interest method. Other financial income and expense include the income and expenses associated with loans and receivables accounted for at amortised cost, the gains recognised in respect of investment of cash and cash equivalents, impairment losses relating to financial assets, dividends. Foreign exchange gains and losses on financial items are presented net, considering that those gains and losses are neutralized by the related impacts of the FX hedging instruments or they are hedged or arise from non-significant individual transactions, and by interpretation of IAS 1.35. Fair value method For instruments quoted in an active market, the fair value corresponds to a market price (level 1). For instruments that are not quoted in an active market, the fair value is determined using valuation techniques including reference to recent arm’s length market transactions or transactions involving instruments which are substantially the same (level 2), or discounted cash flow analysis including, to a maximum extent, assumptions consistent with observable market data (level 3). However, if the fair value of an equity instrument cannot be reasonably estimated, it is measured at cost. The fair value of all the Group’s financial assets and liabilities is determined as at the balance sheet date either for inclusion in the balance sheet or for disclosure in the notes to the consolidated financial statements. The fair value of interest rate swaps and of interest rate and foreign currency options is the estimated amount that the Group would expect to receive or have to pay in order to cancel each derivative instrument at the balance sheet date, taking into account the current level of interest rates and the credit risk associated with the swaps’ counterparties. The fair value of forward exchange contracts is their market value at the balance sheet date, i.e. the present value of their quoted forward prices. The derivative financial instruments (swaps, caps, floors etc.) employed by Tarkett are entered into by private arrangement and are thus not subject to quoted prices. They are therefore measured using the valuation models commonly employed by operators in the market and in particular: - Interest rate swaps are measured on the basis of the present value of the contractual future cash flows;
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- Options are measured using Black and Scholes type valuation models based on published market quotations and/or on quotations provided by third party financial institutions;
- Other foreign currency and interest rate derivative instruments are measured on the basis of the present value of the associated interest rate differentials.
Derivative instruments are entered into exclusively with first class banks or other financial institutions, and with the sole purpose of providing security for the Group’s current operations and for the financing thereof. The fair value of non-quoted borrowings is calculated on the basis of the present value of the contractual cash flows discounted at the market rate of interest, including the applicable risk premium. In the case of receivables and payables with maturities of less than a year and certain floating rate receivables and payables, historical cost is considered as a reasonable approximation of their fair value given the limited credit periods granted and received within the Group.
1.5.20 PROVISIONS Provisions and non-current liabilities are comprised of liabilities for which the amount and the timing are uncertain. They arise from environmental risks, legal and tax risks, litigation and other risks. A provision is recognised when the Group has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows. The amount recognised as a provision is the best estimate of the expenditure required to settle the present obligation at the balance sheet date. Provisions are reversed when they are no longer required. A provision for warranties is recognised when the underlying products are sold. The provision is based on historical warranty data and a weighting of all possible outcomes against their associated probabilities. A provision for restructuring is recognised when the Group has approved a detailed and formal restructuring plan, and the restructuring either has commenced or has been announced publicly.
1.5.21 TRADE AND OTHER PAYABLES Trade and other payables are stated at their repayment amounts. Payables of uncertain timing or amount are shown as accrued charges.
1.5.22 DEFERRED TAXES Deferred tax is calculated using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantially enacted at the balance sheet date. The following temporary differences are not provided for: - Goodwill not deductible for tax purposes; - The initial recognition of assets or liabilities, other than in the context of transactions involving business
combinations, that affect neither accounting nor taxable profit; - Differences relating to investments in subsidiaries to the extent that they will probably not reverse in the
foreseeable future. A deferred income tax asset is recognized only to the extent that there will be future taxable profits over the next five years against which this asset can be utilized. Deferred income tax assets are reduced to the extent that it is no longer likely that a sufficient taxable benefit will support the asset recovery.
1.5.23 NET DEBT The Net debt is defined netting up the interest bearing loans, borrowings and bank overdraft, minus the cash and cash equivalents. Interest-bearing loans and borrowings refer to any obligation for the repayment of funds received or raised which are subject to repayment terms and interest charges. They also include liabilities on financial lease. Cash equivalent refers to monetary assets that are easily convertible into cash that carry an insignificant risk of change in value and for which maturity from inception falls within 3 months.
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NOTE 2 – CONSOLIDATION SCOPE The Tarkett SA Group’s consolidation scope is as follows. Note 29 provides a list of main consolidated entities.
Number of companies Dec 31, 2011 Acquisitions Mergers Liquidations Dec 31, 2012
Fully consolidated companies 67 10 (3) (2) 72Equity-accounted companies - -Jointly controlled companies subject to proportionate consolidation 2 - - (1) 1
TOTAL 69 10 (3) (3) 73 2.1 SCOPE VARIATION Acquisitions On September 2012, 28th, the Group acquired the Tandus Group in the United States of America in order to enlarge its development on the US flooring markets. Tandus is indeed specialized in the production and the sale of carpet products. Tandus Group is made of 10 legal entities, all held at 100% by the Group and all fully consolidated. The consideration paid for Tandus Group was $354.3 million and included the reimbursement of Tandus debt of $167.9 million. The goodwill calculated on Tandus companies amounts to $225.2 million.
Total consideration paid 354.3Debt reimbursment (167.9) Fair value of identifiable net assets 38.7Total goodwill recorded 225.1
Since its acquisition, Tandus has contributed to the Group performance for $86m of net sales and $14m of EBITDA before unusual items. Full-year contribution of the Tandus group to Tarkett consolidated accounts is estimated to $347m net sales and $60m EBITDA before unusuals.
Tandus GroupSeptember 28, 2012
Intangible assets 1.7Property, plant and equipment 58.9Financial assets 0.5Deferred tax assets 6.1Inventories 52.9Trade and other receivables 44.9Cash and Cash equivalents 27.1TOTAL ASSETS 192.0
Loans and Borrowings 167.9Deferred tax liabilities 10.9Other liabilities non current 11.3Trade and other payables 37.9Other liabilities current 2.8TOTAL LIABILITIES 230.8
TOTAL NET ASSETS ACQUIRED (38.7)
This acquisition was recorded in accordance with IFRS3-r.
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Several points remaining open for detailed analysis the purchase accounting of the Tandus companies is still provisional and will be revised within the limit of 12 months of the acquisition date. Mergers In March 2012, Atlas Tracks Inc. merged with and into Beynon Sport Surfaces Inc. In October 2012, Air Fieldturf Inc merged with and into Fieldturf Tarkett Holding Inc. In November 2012, Tarkett Wykladziny Spzoo merged with and into Tarkett Polska Spzoo. Liquidations In April 2012, Kraus Floor was liquidated. In May 2012, Tarkett Ltd. and Fieldturf IP were liquidated. 2.2 JOINTLY CONTROLLED ENTITIES In April 2012, Kraus Floor has been liquidated, the only remaining jointly controlled entity as of December 2012 is Laminate Park GmbH & Co KG jointly held with Sonae Group in Germany. The impact of the jointly controlled entities on Tarkett SA consolidated statements of financial position and income is the following:
Dec 31, 2012 Dec 31, 2011
Non-current assets 1.2 0.2 Current assets 9.5 9.1 Non-current liabilities (14.2) (13.0) Current liabilities (9.5) (12.4) Net liabilities (13.0) (16.1)
Dec 31, 2012 Dec 31, 2011
Net revenue 27.0 25.4 Net expenses (24.8) (26.5) Profit of the year before tax 2.2 (1.1)
NOTE 3 - EBITDA BEFORE UNUSUAL ITEMS (NON GAAP)
EBITDA before unusual items is a key indicator for the Tarkett Group to measure its operating and recurring performance. It is defined considering the operating income before depreciation and amortization and removing revenues and expenses that are considered as unusual items in nature, i.e.: - Restructuring costs to improve the future profitability of the Group, - Gains or losses on significant asset disposals, - Impairment and reversal of impairment based on Group impairment test only, - Business combination & legal restructuring related costs, including legal fees and transactions costs. - Consulting fees, other provisions and expenses related to share-based payments considered as unusual
items as non cash, - Effects of the measurement of assets classified as held for sale, not applicable on Group 2012 and 2011
consolidated financial statement (the effects of any impairment booked with respect to assets held for sale are also restated to determine a recurring depreciation expense).
The Group’s EBITDA before unusual items breaks down as follows:
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Invoiced sales 2,429.2 2,429.2 Sales reductions (110.7) (110.7) Net sales 2,318.5 - - - 2,318.5
Cost of sales (1,792.2) 5.0 0.0 3.8 - (1,783.5) Gross profit 526.2 5.0 0.0 3.8 - 535.0
Other operating income 6.4 0.5 (1.5) 5.4 Selling and distribution expenses (214.3) 0.8 (213.5) Research and development expenses (19.8) - (19.8) General and administrative expenses (136.7) 0.9 1.8 3.3 5.3 (125.4) Other operating expenses (10.5) 1.9 (8.6) Operating profit before financing costs 151.3 6.6 1.8 7.6 5.8 173.1
Depreciation and amortization 88.8 (1.8) 87.0 EBITDA 240.1 6.6 0.0 7.6 5.8 260.1
2012Unusual Items on business
combinationsRestructuring
2012 before unusual items
Consulting fees and other provisions
Gains & Losses on significant
disposals/Impairments
Of which unusual items disclosed as follows:
Invoiced sales 2,183.0 - - - - 2,183.0 Sales reductions (94.6) - - - - (94.6) Net sales 2,088.3 - - - - 2,088.3
Cost of sales (1,657.5) 1.4 8.3 - (0.2) (1,648.0) Gross profit 430.8 1.4 8.3 - (0.2) 440.3
Other operating income 12.6 - - (3.9) (0.9) 7.8 Selling and distribution expenses (212.4) 0.7 - - - (211.6) Research and development expenses (18.1) - - - - (18.0) General and administrative expenses (114.0) 2.4 - 1.0 1.1 (109.5) Other operating expenses (7.6) - - - - (7.6) Operating profit before financing costs 91.3 4.5 8.3 (2.9) - 101.3
Depreciation and amortization 98.3 - (8.3) - - 90.0 EBITDA 189.6 4.5 - (2.9) 0.0 191.3
Consulting fees and other provisions
2011 before unusual items
Of which unusual items disclosed as follows:
2011 Restructuring
Gains & Losses on significant
disposals/Impairments
Unusual Items on business
combinations
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NOTE 4 - SEGMENT INFORMATION By operational segment
2012 Flooring activities
Sports activities
Tarkett Group
Net revenue 2,057.5 260.9 2,318.5
Cost of sales (1,573.4) (218.9) (1,792.2) Selling and distribution expenses (187.7) (26.6) (214.3) Research and development expenses (18.5) (1.4) (19.8) General and administrative expenses (119.2) (17.5) (136.7) Other expenses (4.7) 0.6 (4.1)
Results from operating activities 154.2 (2.8) 151.3
Profit from continuing operations (after tax) 92.0 (6.8) 85.2
Tangible, intangible assets and goodwill 867.7 109.2 976.9
Total assets 1,664.0 215.2 1,879.2
Capital expenditure 80.8 4.2 85.0
Depreciation and amortization (76.8) (12.0) (88.8)
2011 Flooring activities
Sports activities
Tarkett Group
Net revenue 1,866.5 221.8 2,088.3
Cost of sales (1,452.7) (204.8) (1,657.5) Selling and distribution expenses (184.9) (27.5) (212.4) Research and development expenses (17.5) (0.6) (18.1) General and administrative expenses (97.2) (16.8) (114.0) Other expenses 5.7 (0.8) 5.0
Results from operating activities 119.9 (28.6) 91.3
Profit from continuing operations (after tax) 55.5 (30.3) 25.2
Tangible, intangible assets and goodwill 652.7 117.8 770.5
Total assets 1,319.3 236.3 1,555.6
Capital expenditure 75.5 16.3 91.8
Depreciation and amortization (82.1) (16.1) (98.3)
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Invoiced sales by geographical area
Dec 31, 2012 Dec 31, 2011
European Union 752.3 760.1 North America 691.8 547.0
Other OECD countries 56.1 49.6 Emerging countries 929.0 826.2
Tarkett Group 2,429.2 2,183.0
NOTE 5 – OTHER OPERATING INCOME – OTHER OPERATING EXPENSES
2012 2011
Other operating incomeGain on disposal of fixed assets - - Other operating income 6.4 12.6
6.4 12.6
Other operating expensesLoss on disposal of fixed assets - (0.1) Other operating expenses (10.5) (7.5)
(10.5) (7.6) This category includes all operating income and expenses that cannot be directly attributed to business functions.
NOTE 6 – FINANCIAL RESULT
2012 2011
FINANCIAL INCOMEInterest income on loans assets & cash equivalents 1.8 1.4
Other financial income 0.5 0.4 2.3 1.8
FINANCIAL EXPENSESInterest expenses on loans and overdrafts (13.3) (12.7)
Interest expenses on capital leases (0.2) (0.3)
Commissions expenses on financial liabilities (6.6) (2.8)
Interest on provisions for pensions (3.8) (3.5)
Foreign exchange rate losses (2.5) (2.1) Other net financial expenses (0.6) (1.2)
Purchase accounting - (0.2)
Impairment on financial assets (0.1) (0.1) Profit/Gain on disposal of shares (0.1) - Net loss on interest rate instruments 0.2 (0.3)
(27.0) (23.1)
Net finance costs (24.7) (21.3)
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NOTE 7 – INCOME TAX
2012 2011
Current tax (52.5) (34.4) Deferred tax 28.1 (10.5) Deferred tax - Valuation allowance (16.9) 0.0 Total Income tax (41.4) (44.8)
Income tax (current and deferred) is calculated by applying the last known estimated effective tax rate for the prevailing fiscal year for each entity or tax group to the consolidated companies pre-tax income. Theoretical income taxes determined using the French income tax rate of 34,43% for 2012 and 2011 can be reconciled as follows to the actual income tax charge:
2012 2011
Income tax at French income tax rate (43.6) (24.1) Effect of:
Recognition of deferred tax assets relating to previous years 17.7 2.0 Taxation of foreign companies at different rates * 25.0 17.6
Provision for valuation allowance (increase) (26.8) (30.8) Permanent differences-non deductible items (9.6) (6.5) Other items (4.1) (3.0) Income tax expenses (41.4) (44.8)
*The difference with the tax rate at 34,43% is presented here.
NOTE 8 – GOODWILL The evolution of Goodwill can be analysed as follows:
Dec 31, 2012 Dec 31, 2011
Opening carrying amount 276.7 281.5 New goodwill 174.1 1.0
Adjustment to initial purchase price allocation - (3.5) Effects of movements in exchange rates (5.5) 2.9 Impairment - (5.1)
Other 3.7 - Closing carrying amount 449.1 276.8
Impairment losses recognised during 2012 and 2011 can be broken down as follows:
Impairment on Goodwill2012 2011
Flooring activities - - Sports activities - (5.1) Total - (5.1)
An increase of 1% in pre-tax discount rate for all CGU would have generated an impairment expense of the Group intangible assets of (€15.4) million approximately. During the year 2012, goodwill increased by €172.3 million, mainly related to Tandus Group acquisition for €174.1 million.
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NOTE 9 –INTANGIBLE, TANGIBLE AND FINANCIAL FIXED ASSETS
Dec 31, 2012 Dec 31, 2011
Real property and rights equivalents to real property 211.0 205.7 Leased buildings 5.8 7.0 Technical equipment and machinery 183.5 162.0 Leased land and equipment 5.4 7.1 Advance payments and fixed assets in progress 23.6 5.6 Property, plant and equipment (*) 429.4 387.4
Research & development 4.2 3.6 Patents 52.9 64.8 Trademarks 7.8 9.6 Leasehold & similar rights - 0.2 Computer software 24.9 17.9 Other intangible assets 8.5 10.2 Intangible assets 98.5 106.3
Bonds, debenture loan & oth sec. Invest - Long-term 7.1 6.3 Financial investments and receivables - Long-term 23.9 17.0 Loan receivables - Long-term 0.5 0.1 Security deposit - Long-term 3.8 3.3 Other financial assets 35.2 26.7
(*) Equipment which is currently under construction has been allocated to individual items.
Carrying amounts
Impairment losses recognised during 2012 and 2011 can be broken down as follows:
2012 2011
Flooring activities - (13.7) Sports activities - - Total - (13.7)
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Gross Book Value
Balance at Dec 31, 2011
Additions DisposalsChange in
scopeTransfer
Foreign exchange
differences
Balance at Dec 31, 2012
Real property and rights equivalents to real property 381.2 2.4 (0.3) 24.2 7.1 (0.3) 414.4 Leased buildings 20.1 - - - - - 20.2 Technical equipment and machinery 976.6 22.1 (18.7) 106.4 19.4 2.8 1,108.7 Leased land and equipment 13.0 - - - 0.1 - 13.1 Advance payments and fixed assets in progress 5.6 42.5 (0.2) 1.3 (25.2) (0.3) 23.6 Total property, plant and equipment 1,396.5 67.0 (19.2) 131.9 1.5 2.2 1,580.0
Research & development 6.9 2.4 (1.4) - 0.2 0.1 8.2 Patents 124.3 0.1 - (1.8) 0.1 (2.2) 120.4 Trademarks 18.8 0.1 - (1.4) - (0.3) 17.2 Leasehold & similar rights 0.5 - - - (0.5) - - Computer software 31.8 14.9 (0.3) 7.6 (2.2) (0.4) 51.3 Other intangible assets 10.8 0.1 (2.6) - 0.3 (0.2) 8.4 Intangible assets in process - 0.4 - - (0.3) (0.0) 0.1 Total intangible assets 193.1 17.9 (4.3) 4.5 (2.5) (3.2) 205.6
Bonds, debenture loan & oth sec. Invest - Long-term 6.3 0.7 - - - (0.0) 7.1 Financial investments and receivables - Long-term 17.0 7.3 - - - (0.4) 23.9 Loan receivables - Long-term 0.1 - (0.1) - 0.5 - 0.5 Security deposit - Long-term 6.7 0.4 (0.1) 0.4 - (0.4) 7.0 Total other financial assets 30.1 8.5 (0.2) 0.4 0.5 (0.8) 38.4
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Accumulated depreciation and amortization
Balance at Dec 31, 2011
Depreciation Disposals Reversal ImpairmentChange in
scopeTransfer
Foreign exchange
differences
Balance at Dec 31, 2012
Real property and rights equivalents to real property (175.5) (16.3) 0.2 1.0 - (12.5) 0.2 (0.5) (203.4) Leased buildings (13.2) (1.2) - 0.2 - - - (0.2) (14.3) Technical equipment and machinery (814.6) (58.0) 18.5 5.6 - (73.9) 0.8 (3.6) (925.1) Leased land and equipment (5.8) (1.9) - - - - 0.0 - (7.7) Total property, plant and equipment depreciation (1,009.1) (77.4) 18.7 6.8 - (86.4) 1.1 (4.2) (1,150.6)
R&D (3.3) (0.5) - 0.1 - - (0.2) (0.1) (4.0) Patents (59.5) (9.2) - - - - - 1.2 (67.5) Trademarks (9.2) (0.6) - 0.4 - - - 0.1 (9.3) Leasehold & similar rights (0.3) - - - - - 0.3 - (0.0) Computer software (13.9) (6.7) 0.3 - - (6.3) (0.1) 0.2 (26.4) Other intangible assets (0.7) (1.7) 2.5 - - - (0.1) 0.1 0.1 Total intangible assets depreciation (86.8) (18.6) 2.8 0.4 - (6.3) (0.1) 1.5 (107.1)
Security deposit - Long-term (3.4) - - - (0.2) - - 0.4 (3.2) Total other financial assets (3.4) - - - (0.2) - - 0.4 (3.2)
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Gross Book Value
Balance at Dec 31, 2010
Additions DisposalsChange in
scopeTransfer
Foreign exchange
differences
Balance at Dec 31, 2011
Real property and rights equivalents to real property 355.8 14.5 (1.3) 1.8 10.8 (0.4) 381.2 Leased buildings 19.3 - - 0.4 - 0.5 20.1 Technical equipment and machinery 926.3 26.6 (8.7) 2.0 27.3 3.2 976.6 Leased land and equipment 7.6 5.2 - 0.3 - - 13.0 Advance payments and fixed assets in progress 18.4 28.9 - - (41.9) 0.2 5.6 Total property, plant and equipment 1,327.2 75.2 (10.0) 4.5 (3.9) 3.5 1,396.5
Research & development 4.3 2.3 - 0.1 - 0.1 6.9 Patents 120.5 0.2 - - (0.3) 3.9 124.3 Trademarks 16.0 - - 2.6 (0.1) 0.2 18.8 Leasehold & similar rights 0.5 - - - - - 0.5 Computer software 13.8 13.8 - - 3.8 0.4 31.8 Other intangible assets 2.1 5.3 (2.0) 4.6 - 0.8 10.8 Intangible assets in process - - - - - - - Total intangible assets 157.2 21.6 (2.0) 7.4 3.4 5.5 193.1
Bonds, debenture loan & oth sec. invest- Long-term 0.0 - (0.0) - 6.3 - 6.3 Financial investments and receivables - Long-term 19.7 (1.7) (0.1) - (1.4) 0.5 17.0 Loan receivables - Long-term 0.8 - (0.1) - (0.6) - 0.1 Security deposit - Long-term 7.5 0.2 (0.8) - - (0.2) 6.7 Total other financial assets 28.0 (1.5) (0.9) - 4.3 0.2 30.1
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Accumulated depreciation and amortization
Balance at Dec 31, 2010
Depreciation Disposals Reversal ImpairmentChange in
scopeTransfer
Foreign exchange
differences
Balance at Dec 31, 2011
Real property and rights equivalents to real property (157.5) (14.9) 0.3 1.0 (4.7) - - 0.3 (175.5) Leased buildings (11.6) (1.1) - 0.2 (0.4) - - (0.3) (13.2) Technical equipment and machinery (762.7) (55.5) 8.5 5.8 (8.4) - 0.1 (2.5) (814.6) Leased land and equipment (2.3) (2.0) - - (0.2) - (1.3) - (5.8) Total property, plant and equipment (934.2) (73.5) 8.8 7.1 (13.6) - (1.2) (2.5) (1,009.1)
R&D (2.6) (0.5) - - - (0.1) - (0.1) (3.3) Patents (49.0) (8.6) - - (0.1) - 0.3 (2.2) (59.5) Trademarks (7.4) (2.5) - 0.7 - - 0.2 (0.1) (9.2) Leasehold & similar rights (0.3) - - - - - - - (0.3) Computer software (12.1) (1.6) - - - - (0.1) - (13.9) Othert intangible assets (2.1) (0.5) 2.0 - - - - - (0.7) Total intangible assets depreciation (73.6) (13.7) 2.0 0.7 (0.1) (0.1) 0.4 (2.4) (86.9)
Security deposit - Long-term (3.6) (0.1) - - - - - 0.3 (3.4) Total other financial assets (3.6) (0.1) - - - - - 0.3 (3.4)
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NOTE 10 – INVENTORIES
Dec 31, 2012 Dec 31, 2011
Raw materials and supplies 125.7 101.3 Work in progress 41.5 38.6 Finished goods 212.1 179.1 Total Gross value 379.4 319.0 Provisions for inventory depreciation (40.3) (34.7) Total Inventories 339.1 284.3
Tandus impact amounts to €32.5m.
NOTE 11 – TRADE RECEIVABLES
Dec 31, 2012 Dec 31, 2011
Related party receivables 0.9 0.2 Third party receivables 302.4 302.3 Total Gross value 303.3 302.5 Provisions for doubtful receivables (20.2) (18.9) Total Trade receivables 283.1 283.6
Tandus impact amounts to €29.9m.
NOTE 12 – OTHER RECEIVABLES
Dec 31, 2012 Dec 31, 2011
Total Other receivables non current - - Prepaid expenses current 10.4 10.6 Income tax receivable current 9.3 8.6 VAT receivable current 20.6 16.5 Prepayment to suppliers current - 0.6 Other accounts receivables and other assets current 26.4 18.8 Total Other receivables current 66.7 55.2
NOTE 13 – SHARE CAPITAL Share capital At December 31, 2012 the Company’s share capital amounts to €316 108 260 similar as at December 31, 2011 and is divided into 15 805 413 shares of a nominal amount of €20 each similar as at December 31, 2011.
NOTE 14 – EARNINGS PER SHARE Basic earnings per share Basic earnings per share for the 2012 are calculated on the basis of the Group’s share of net profit and on the weighted average number of shares outstanding during the period (i.e. after deduction of the weighted average number of treasury shares).
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Weighted average number of shares outstanding In thousands of shares 2012 2011
Number of shares as at January 1st 15,805 15,805 Number of treasury shares held by Tarkett SA as at January 1st - - Number of shares at Dec 31, 2012 15,805 15,805
NOTE 15 – NET DEBT – INTEREST-BEARING LOANS AND BORROWINGS Net debt
Dec 31, 2012 Dec 31, 2011
Interest-bearing loans and borrowings - non current 342.8 270.4 Interest-bearing loans and borrowings - current 190.8 115.7 Cash and cash equivalents (81.4) (53.9) Total Net Debt 452.2 332.1
Interest bearing loans and borrowings
Non-current Current Non-current Current
Bank loans (secured) - 0.1 0.1 2.0 Bank loans (unsecured) 334.3 177.3 261.5 47.7 Bond issues (unsecured) - - Other loans (unsecured) 7.5 8.1 7.0 56.6 Bank overdrafts (unsecured) 4.3 - 7.6 Finance lease obligations 1.0 1.0 1.8 1.8 Total interest-bearing loans and borrowings 342.8 190.8 270.4 115.7
Dec 31, 2012 Dec 31, 2011
The unsecured bank loans include mainly: (i) A European private placement of €114.0 million maturing in May 2014,
(ii) €219.3 million drawn against a multicurrency and multi-borrower syndicated revolving facility executed by Tarkett SA on June 27, 2011 for up to €450.0 million and maturing in June 2016.
(iii) A term loan of €150.0 million maturing in August 2013. The other unsecured loans contain mainly €25.2 million drawn against a €55.0 million factoring facility. The facilities mentioned above contain covenants which are binding on the borrowing company. The Group complies with all covenants requirements as at December 31, 2012.
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Details of loans and borrowings
Dec 31, 2012
Currency Interest Rate Dec 31,
2012
12 months or less
until 12/31/13
2 years until
12/31/14
3 to 5 years until 12/31/17
More than 5 years
Unsecured loansCredit Facilities Europe EUR 1.4%-2.8% 264.0 150.0 114.0 Credit Facility Europe EUR 1.0% 120.0 120.0 Credit Facility Europe USD 1.1% 99.3 99.3 Other bank loans EUR 3.4%-5.1% 3.1 2.1 0.4 0.6 Secured loansBank loans North America USD 6.9% 0.1 0.1 Bank loans Eastern Europe UAH-RSDTotal Bank loans 486.5 152.2 114.4 219.9 - Asset backed facilities (1) EUR 0.6% 25.2 25.2 Other loans EUR 0.2%-2.6% 15.6 8.1 7.2 0.3 Bank overdrafts 4.3 4.3 Finance lease obligations 2.0 1.0 0.3 0.4 0.3 Total Interest-bearing loans and borrowings 533.6 190.8 121.9 220.6 0.3
(1) one-year renewable facility
Dec 31, 2011
Currency Interest Rate Dec 31,
2011
12 months or less until
12/31/12
2 years until
12/31/13
3 to 5 years until 12/31/16
More than 5 years
Unsecured loansCredit Facilities Europe EUR 1.5%-4.1% 144.0 30.0 - 114.0 - Credit Facility Europe EUR 2.0% 45.0 - - 45.0 - Credit Facility Europe USD 0.8%-1.2% 115.2 14.7 100.5 - Other bank loans EUR 2.5%-5.3% 5.0 3.0 1.3 0.7 - Secured loansBank loans North America USD 3.3% 0.2 0.1 0.1 - - Bank loans Eastern Europe UAH-RSD 11.3%-13% 1.9 1.9 - - - Total Bank loans 311.3 49.7 1.4 260.2 - Asset backed facilities (1) EUR 1.6% 30.7 30.7 - - - Other loans EUR 0.5%-3.8% 32.9 25.9 6.6 0.3 0.1 Bank overdrafts 7.6 7.6 - - - Finance lease obligations 3.6 1.8 1.0 0.7 0.1 Total Interest-bearing loans and borrowings 386.1 115.7 9.0 261.2 0.2
NOTE 16 – OTHER FINANCIAL LIABILITIES
Dec 31, 2012 Dec 31, 2011
Total Other financial liabilities non current 6.8 8.8 Accrued interest expenses current 0.8 1.4 Fair value of derivatives current 8.8 9.7 Other financial liabilities current 2.0 0.9 Total Other financial liabilities current 11.6 11.9
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NOTE 17 – TRADE PAYABLES
Dec 31, 2012 Dec 31, 2011
Trade payables 219.8 187.1 Trade notes payable - - Related party payables 1.9 2.2 Total Trade payables 221.7 189.3
NOTE 18 – OTHER LIABILITIES
Dec 31, 2012 Dec 31, 2011
Liabilities related to employees 79.1 64.7 Income tax 12.6 2.2 VAT and other taxes 11.0 12.3 Sales rebates 34.0 27.4 Accrued charges 26.7 20.6 Other liabilities 26.5 16.5 Total Other liabilities 189.9 143.6
NOTE 19 – DEFERRED TAX Deferred taxation is shown on the balance sheet separately from current tax assets and liabilities and categorized among non-current items.
Dec 31, 2012 Dec 31, 2011
Deferred tax assets Net operating losses and credits carried forward 179.7 167.8 Provision for valuation allowance on net operating losses and credits carried forward DTA for pensions and healthcare benefits 25.8 10.2
Other items temporarily non deductible 72.1 80.7 Provision for valuation allowance on other deferred tax assets Internal profit eliminations 4.6 4.6
Netted against deferred tax liabilities (51.0) (55.0) Total Deferred tax assets 96.7 81.6
Deferred tax liabilities Fixed assets revaluation 43.3 44.7 Other deferred tax liabilities 13.1 15.7
Netted against deferred tax assets (51.0) (55.0)Total Deferred tax liabilities 5.4 5.4
(111.7) (121.8)
(12.7) (15.0)
Deferred tax assets for tax losses and unused tax credits carried forward are recognized for a cumulated amount of €58 million of which €38.7 million relate to the affiliates within the US tax group and €4.4 million relate to the French tax Group, and €7.0 million relates to the affiliate in Canada.
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NOTE 20 – PROVISIONS
Balance at Dec 31, 2011
Allowance Decrease Tax allowance Change in
Scope Transfer
Foreign exchange gain
& loss
Balance at Dec 31, 2012
Product warranty provision - Long-term 1.7 0.1 (0.3) - 0.7 - - 2.2 Restructuring provisions - Long-term 0.0 - - - - - - 0.0 Claims & litigations provisions - Long-term 2.2 1.1 (0.9) - - - - 2.3 Other provisions - Long-term 4.5 0.1 (0.3) - - (0.8) - 3.6 Provision for additional tax assessments - Long-term 5.1 - (0.1) 0.3 - (4.4) 0.1 1.0 Financial provisions - Long-term 21.8 7.8 - - - - (0.6) 29.0 Total Provisions - Long-term 35.2 9.1 (1.6) 0.3 0.7 (5.1) (0.5) 38.1
Product warranty provisions - short-term 5.5 0.2 (0.8) - 2.1 3.4 - 10.6 Restructuring provisions - short-term 3.7 2.8 (2.5) - - (0.6) - 3.5 Claims & litigations provisions - short-term 21.7 7.5 (6.2) - - (1.0) (0.2) 21.7 Other oper. provisions - short-term 0.2 0.4 (0.2) - - - - 0.4 Provision for financial risks - - - - - - - - Total Provisions - Short-term 31.1 10.9 (9.6) - 2.1 1.8 (0.2) 36.2
Total Provision current & non-current 66.4 20.1 (11.2) 0.3 2.8 (3.4) (0.6) 74.3
Balance at Dec 31, 2010
Allowance Decrease Tax allowance Change in
Scope Transfer
Foreign exchange gain
& loss
Balance at Dec 31, 2011
Product warranty provision - Long-term 1.3 0.4 (0.3) - - 0.2 - 1.7 Restructuring provisions - Long-term - - - - - - - - Claims & litigations provisions - Long-term 1.8 0.4 (0.1) - - - - 2.2 Other provisions - Long-term 3.3 - (1.6) - 0.6 2.3 - 4.5 Provision for additional tax assessments - Long-term 4.7 - (0.2) 0.7 - (0.1) 0.1 5.1 Financial provisions - Long-term 21.0 0.1 - - - - 0.7 21.8 Total Provisions - Long-term 32.1 0.9 (2.1) 0.7 0.6 2.4 0.8 35.2
Product warranty provisions - Short-term 12.2 0.5 (4.2) - - (2.8) (0.2) 5.5 Restructuring provisions - Short-term 3.4 2.3 (2.0) - - - - 3.7 Claims & litigations provisions - Short-term 10.2 11.5 (4.5) - - 3.7 0.8 21.7 Other oper. provisions - Short-term 0.6 0.1 - - - (0.4) - 0.2 Total Provisions - Short-term 26.4 14.4 (10.7) - - 0.5 0.6 31.1
Total Provision current & non-current 58.5 15.3 (12.9) 0.7 0.6 2.9 1.4 66.4
NOTE 21 – EMPLOYEE BENEFITS
Provisions for pensions and post-employment healthcare benefits In accordance with laws and practices of each country in which it operates, Tarkett participates in, or maintains, employee benefit plans providing retirement pensions, post-retirement health care, other long-term benefits (jubilees) and post-employment benefits (retirement indemnities, pre-retirement) to eligible employees, former employees, retirees and their beneficiaries fulfilling the required conditions. Valuation of these obligations is carried out yearly at the balance sheet date by independent actuaries.
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Amounts recognized in the statement of financial position
Pensions
Post-employment healthcare
benefits
TOTAL Pensions
Post-employment healthcare
benefits
TOTAL
Present value of funded obligations 154.5 - 154.5 136.7 - 136.7 Fair value of plan assets 74.3 - 74.3 68.0 - 68.0 Deficit (surplus) for funded plans 80.2 - 80.2 68.7 - 68.7 Present value of unfunded obligations 51.2 1.8 53.0 37.8 1.7 39.4 Unrecognized net actuarial gain/(loss) - - - - - Unrecognized past service (cost) benefit 0.4 - 0.4 0.5 - 0.5 Effect of paragraph 58(b) limit (including IFRIC 14 requirements) - - - 0.8 - 0.8 Change in scope of consolidation 8.6 - 8.6 Net liability/asset 140.4 1.8 142.2 107.7 1.7 109.4
Amounts recognised in the income statement
Pensions
Post-employment healthcare
benefits
TOTAL Pensions
Post-employment healthcare
benefits
TOTAL
Current service cost 1.9 - 1.9 2.1 - 2.1 Interest cost 7.9 0.1 8.0 7.8 0.1 7.9 Expected return on plan assets (4.2) - (4.2) (4.4) - (4.4) Amortization of past service cost (0.1) - (0.1) (0.1) - (0.1) Amortization of net (gain) / loss - - - - - - Effect of paragraph 58(b) limit (including IFRIC 14 requirements) - - - - - - Curtailment (gain) / loss recognized - - - - - - Settlement (gain) / loss recognized - - - (0.5) - (0.5) Total expenses included in income statement 5.4 0.1 5.6 4.8 0.1 4.9
Amounts recognized in statement of comprehensive income (gross of tax)
Pensions
Post-employment healthcare
benefits
TOTAL Pensions
Post-employment healthcare
benefits
TOTAL
Actuarial (gains) / losses immediately recognized 29.6 0.2 29.8 8.2 0.0 8.3 Effect of paragraph 58(b) limit (including requirements for IFRIC 14) (0.8) - (0.8) (0.3) - (0.3) Total pension cost recognized in the OCI 28.7 0.2 28.9 7.9 0.0 7.9
Cumulative amount of actuarial gains and losses recognized in OCI 85.6 (1.9) 83.8 56.9 (2.1) 54.8
Dec 31, 2012 Dec 31, 2011
Dec 31, 2012 Dec 31, 2011
Dec 31, 2012 Dec 31, 2011
Change in net liabilities recognized in the balance sheet
Pensions
Post-employment healthcare
benefits
TOTAL Pensions
Post-employment healthcare
benefits
TOTAL
Balance sheet liability/asset at beginning of year 107.7 1.7 109.4 103.5 1.8 105.3 Total expenses recognized in income statement 5.4 0.1 5.5 4.8 0.1 4.9 Amounts recognised in OCI in the financial year 28.7 0.2 28.9 7.9 - 7.9 Employer contributions made in the financial year (5.1) (0.1) (5.2) (5.2) (0.3) (5.4) Benefits paid directly by company in the financial year (4.2) (4.2) (4.0) - (4.0) Business combinations / divestitures / transfers - - (0.6) - (0.6) Exchange rate adjustment - (gain)/loss 0.5 0.5 1.3 - 1.3 Change in scope of consolidation 7.4 7.4 Balance sheet liability/asset as at end of year 140.4 1.9 142.2 107.7 1.7 109.4
Change in benefit obligation
Pensions
Post-employment healthcare
benefits
TOTAL Pensions
Post-employment healthcare
benefits
TOTAL
Benefit obligation at beginning of year 174.5 1.7 176.1 164.2 1.8 166.0 Current service cost 1.9 - 1.9 2.1 - 2.1 Interest cost 7.9 0.1 8.0 7.8 0.1 7.9 Plan participants' contributions 0.1 - 0.1 0.1 0.1 0.1 Amendments - - - - - Actuarial (gain)/loss 31.9 0.2 32.1 8.3 0.0 8.4 Benefits paid from plan/company (10.2) (0.1) (10.3) (9.9) (0.3) (10.2) Expenses paid (0.1) - (0.1) (0.1) - (0.1) Business combinations / divestitures / transfers - - - 5.3 - 5.3 Plan curtailments - - - - - Plan settlement - - - (6.9) - (6.9) Exchange rate changes (0.2) - (0.2) 3.5 - 3.5 Change in scope of consolidation 8.7 8.7 Benefit obligation at end of year 214.5 1.9 216.3 174.4 1.7 176.1
Dec 31, 2012 Dec 31, 2011
Dec 31, 2012 Dec 31, 2011
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Change in plan assets
Pensions
Post-employment healthcare
benefits
TOTAL Pensions
Post-employment healthcare
benefits
TOTAL
Fair value of plan assets at beginning of year 68.0 - 68.0 62.4 - 62.4 Expected return on plan assets 4.2 - 4.2 4.4 - 4.4 Actuarial gain/(loss) on plan assets 3.7 - 3.7 0.1 - 0.1 Employer contributions (incl. employer direct benefit payments)
9.3 0.1 9.4 9.7 0.3 10.0
Plan participants' contributions 0.1 - 0.1 0.1 0.1 0.1 Benefits paid from plan/company (10.2) (0.1) (10.3) (9.5) (0.3) (9.8) Expenses paid (0.1) - (0.1) (0.1) - (0.1) Plan settlement - - - (2.7) - (2.7) Business combinations / divestitures / transfers - - - 5.9 - 5.9 Exchange rate changes (0.7) - (0.7) (2.4) - (2.4) Fair value of plan assets at end of year 74.3 0.0 74.3 68.0 0.0 68.0
Dec 31, 2012 Dec 31, 2011
Hypothesis The actuarial accounting valuations are based on assumed future increases in salaries and benefits as well as on a long-term interest rate. The main assumptions are in average as follows:
Pensions Post-employment healthcare benefits
Pensions Post-employment healthcare benefits
Discount rate 3.65% 4.64%Including: US 4.00% 4.00% 4.85% - 5.10% 5.10% Germany 2.80% 4.75% Sweden 3.50% 3.50% UK 3.90% 4.65%
Expected return on plan assets n/a n/a 6.37% n/aIncluding: US n/a 7.25% Germany n/a 4.50% Sweden n/a n/a UK n/a 5.16%
Salary increases 2.98% 2.65% n/aInflation 2.12% 2.20% n/aHealthcare cost increases n/a 8.00% - 5% (2019) n/a 8.50% - 5% (2019)
Dec 31, 2011Dec 31, 2012
Percentage of plan assets by asset allocation The funds are allocated to:
Dec 31, 2012 Dec 31, 2011- Equity 48.2% 47.7%- Bonds 28.2% 29.2%- Real Estate 2.7% 2.8%- Other 20.9% 20.4% The expected return on plan assets is determined for each plan according to the portfolio composition and the expected performance of each component. Actuarial gains (losses) due to experience adjustments amounted to €(0.4) million for the “defined benefit obligations” and to €3.7 million for the plan assets. Actual return on assets amounts to €7.9 million. Expected employer contributions for 2013 amount to €9.5m.
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Sensitivity to the medical cost trend rate
Dec 31, 2012 Dec 31, 2011Increase of one percentage pointDefined Benefit Obligation 13.8 13.0 Service and interest costs 0.6 0.6
Decrease of one percentage pointDefined Benefit Obligation (13.4) (12.4) Service and interest costs (0.6) (0.6)
NOTE 22 – PERSONNEL COSTS AND DIRECTORS’ REMUNERATION
Dec 31, 2012 Dec 31, 2011
Wages and salaries (452.0) (400.8) Pension costs (6.3) (4.9) Total Personnel costs (458.3) (405.7)
Number Employees (average number) 9,896.0 9,357.0 Directors remuneration
2012 2011
Remuneration of :- members of the Executive Management Commitee 5.0 3.9- members of the Supervisory Board - - Total 5.0 3.9
NOTE 23 – SHARE-BASED PAYMENT TRANSACTIONS
MANAGEMENT EQUITY PLAN Tarkett has implemented a management equity plan according to which certain managers have been entitled to purchase shares of Tarkett SA (Free shares plan) or Partholdi (a company held by S.I.F. SA, the holding company of Tarkett, that owns Tarkett SA’s shares) with effect on November 2007. Upon an exit event (IPO or private sale of Tarkett shares by S.I.F. SA), the managers shares will give rights to either free shares or will gain value through a dilution of S.I.F. SA within Partholdi. The free shares to be granted as well as the relution effect have been analyzed as being in the scope of IFRS 2 “Share-based payments”. A valuation of the fair value of the equity instruments granted has been achieved using a Montecarlo valuation for options features. The overall value of the free shares amounts to €6.8 million of which an amount of €0.5 million was expensed in 2012 (similar to last four years). LONG-TERM INCENTIVE From December 22, 2011 a long-term Incentive Plan has been implemented for selected key executives of the Group.
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The preference free shares shall be awarded to the beneficiaries at the end of a vesting period ending June 30st, 2014, provided that an economic performance condition is satisfied (based on Group 3 years plan) and the beneficiaries have been continuously employed until June 30st, 2014. This plan is to be placed under IFRS2 treatment “share-based payment” (equity settled plan). The final amount granted will be calculated mid-2014 and the granted shares can be sold after July 2016 (to be noted that the Group has not issued any definite commitment that the shares would be repurchased after 2016). The target amount of free shares to distribute is estimated at 52 900 as at December 31st, 2012 (63 000 as at December 31st, 2011). The fair market value at the time of the issuance of the plan is calculated as follows: 7xEBITDA* less Net debt. This has been estimated at €91 per share based on December 31st, 2012 figures (€60 per share on December 2011). The expense in 2012 amounts to €1.9m before tax (€41k in 2011), and it has been booked as administrative expense in the P&L with a counterpart in equity.
From December 17, 2012 a second long-term Incentive Plan has been implemented for selected key executives of
the Group. The preference free shares shall be awarded to the beneficiaries at the end of a vesting period of June 30st, 2015, provided that an economic performance condition is satisfied (based on the Group 3 years business plan) and the beneficiaries have been continuously employed until June 30st, 2015. This plan is to be placed under IFRS2 treatment “share-based payment” (equity settled plan). The final amount granted will be calculated mid 2015 and the granted shares can be sold immediately after being granted. The Group may decide in 2015 to grant, instead of shares, the equivalent value in cash, (calculated on the market price if the company is listed, or Fair Market Value if the company is not listed). The target amount of free shares to distribute is estimated at 68 900 as at December 31st, 2012. The fair market value at the time of the issuance of the plan is calculated as follows: 7xEBITDA* less Net debt. This has been estimated at €91 per share based on December 31st, 2012 figures.
The expense in 2012 amounts to €68k before tax, and it has been booked as administrative expense in the P&L with
a counterpart in equity.
NOTE 24 – FINANCIAL RISKS AND FINANCIAL INSTRUMENTS
Exposure to interest rate, currency, liquidity and credit risk arises in the normal course of Tarkett’s activities. Derivative financial instruments are used to reduce the exposure to fluctuations in both foreign exchange and interest rates. While transactions are subject to the risk of market changes, such changes are generally offset by opposite effects on the hedged items. Liquidity and credit risk are managed following risk management policies approved by the Group’s executive board. 1 - FINANCIAL MARKET RISKS Fair values of the financial instruments The fair values of the Group’s financial instruments are recorded into the balance sheet in “Other financial liabilities, current” for what concerns derivatives hedging future cash flows, and in the relevant accounts for what concerns derivatives hedging on recorded items. It amounts to the following figures:
Dec 31, 2012 Dec 31, 2011
Currency swaps (0.1) (0.6) Term forward contracts - - Options 0.5 (0.8) Total foreign currency derivatives 0.4 (1.4)
Fair value hedge swaps - - Cash flow hedge swaps (3.7) (3.6) Options cash flow hedge (5.3) (5.0) Total interest rate derivatives (9.1) (8.6)
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1.1 Interest rate risk The exposure to the interest rate risk is managed in a centralized manner by the Group. The general debt strategy defined by the Group consists of giving preference to variable interest rate debt over fixed interest rate debt, but also to protect a significant part of the debt over a period of three to five years against a rate increase which would result in an extensive damage. The hedging tools used are mainly cap or tunnel type derivatives. In certain circumstances, swaps have been entered into to fix rates. Following is the interest rate structure of the net debt. Net debt is defined as interest-bearing loans minus cash and cash equivalents. Before interest rate hedge:
Dec 31, 2012 Dec 31, 2011
Fix rate debt 3.0 5.0Floating rate debt 530.7 381.1Cash and cash equivalents (81.4) (53.9) Net debt 452.2 332.2 After interest rate hedge:
Dec 31, 2012 Dec 31, 2011
Fix rate debt 117.0 119.0Floating rate debt capped 102.7 103.2Floating rate debt 313.9 163.9Cash and cash equivalents (81.4) (53.9) Net debt 452.2 332.2 Interest rate derivatives The Group adopts a policy of ensuring that its exposure to change in interest rates on floating rate loans and deposits is reasonably protected against significant adverse changes over one to five years. The financial instruments hedging floating rate debt are classified as cash flow hedges and recognised at fair value. At the balance sheet date, they represented a total notional amount of €216.7 million maturing over the next five years, and consisting of caps or collars for €102.7 million and swaps for €114.0 million. Their fair value is calculated using the market rates prevailing at the balance sheet date as obtained from financial service companies. The fair value of the Group’s interest rate cash flow hedges at the balance sheet date amounted to a latent liability of € 9.0 million (2011: liability of €8.6 million). The net effect of their variations in the income statement of the year represents a gain of €0.2 million (2011: gain of €0.4 million). Sensitivity analysis The Group incurs a risk on its results with the fluctuation of interest rates on interest-bearing financial instruments indexed on floating rates. Further, the interest rate derivatives qualified as cash flow hedges have an impact on equity. The sensitivity to interest rates variation of the financial instruments is calculated on the basis of interest-bearing non-derivatives and derivative financial instruments. Non derivative financial instruments are the interest-bearing borrowings net of cash and cash equivalents, and net of interest bearing loans granted to third parties or joint-ventures. The analysis is based on the assumption of a constant debt nominal and debt management over 1 year from December 31, 2012. Based on this, due to the current level in interest rates and the rate fixing of the currently outstanding financial instruments, an instantaneous increase of all interest rates by 1% would result in an increase of €2.2 million before tax (2011: €0.8 million), and an instantaneous decrease of all interest rates by 1% or to 0% when applicable would result in a decrease of €0.2 million before tax (2011: €0.4 million).
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1.2 Exchange rate risk Transaction risk Exchange rate fluctuations have a direct impact on the Group’s consolidated financial statements, derived from transactions regarding the Group entities which incur revenues and expenses in currencies other than their functional currency. The Group has attempted to develop its production capacities in the same geographic and monetary areas where it distributes its products. Moreover, through the choice of the invoicing currency for certain intra-Group transactions, the Group aims to offset revenues with costs in the same currency. In certain unstable currency countries, the Group may also compensate the local currencies variations with price indexations. Therefore the remaining exposure on cross-border transactions is limited. The currencies to which the Group is most exposed are the US dollar, the British pound, the Australian dollar, the Norwegian crown, the Polish zloty, the Russian rubble and the euro as a foreign currency for the Swedish, Russian and Serbian subsidiaries. The Group has attempted to reduce the impact of short-term fluctuations of currencies on its revenue through a centralized management of exchange risks and the use of derivatives. Nevertheless, in the long-term, the significant and long lasting variations in exchange rates, in particular those of the US dollar and the Russian rubble, could affect the Group’s competitive position in the foreign markets and its results of operations. The Group hedges at least 75% of its remaining net estimated short term exposure. This exposure includes a recorded exposure, which is made of all recognized trade receivables, trade payable and borrowings denominated in a foreign currency, and an unrecorded exposure, which is the forecasted sales and purchases over a six-month period. Foreign exchange exposures and derivatives As at closing date, the recorded exposure over the main currencies, and the exchange rate derivatives hedging recorded exposures, are as follows:
Exposition currency USD GBP AUD EUR USD GBP AUD EURFinancial recorded exposure 55.6 (5.3) 2.4 0.2 4.9 7.1 1.6 (11.9) Operating recorded exposure -0.7 2.4 2.9 (4.6) 2.2 4.9 4.9 5.2 Hedging on recorded exposure (58.8) 0.7 (6.3) 0.7 (6.3) (11.8) (5.8) 11.9 Net recorded Group exposure on main currencies (3.9) (2.2) (1.0) (3.7) 0.8 0.2 0.7 5.2
Dec 31, 2012 Dec 31, 2011
Tarkett uses forward exchange contracts and options to hedge its exposure to foreign currency risk in respect of both recognised receivables and payables and forecasted transactions covering a forward six-month period. When necessary, forward exchange contracts are rolled over. Tarkett classifies the currency hedging contracts covering operating transactions as cash flow hedges and records them at fair value in the balance sheet. The fair value of these contracts at the balance sheet date amounted to a latent asset of €0.5 million (2011:liability of €0.8 million). Of this fair value, the amount reported directly in equity is an unrealised loss of €0.1 million (2011:unrealised loss of €0.8 million). The difference is recognised in the income statement and represents the change in the time value of currency options hedging forecasted transactions and in the fair value of forward contracts hedging recognised transactions. The net effect of fair value variations in the income statement of the year represents a revenue of €0.2 million (2011: charge of €0.2 million). All the potential gains and losses reported directly in equity are expected to enter into the determination of profit and loss of the coming 12 months. Monetary items denominated in foreign currencies When financing its foreign subsidiaries, the Group incurs exposure to foreign currency risk on intra-group loans and borrowings denominated in foreign currencies. The Group minimises this risk either (i) by borrowing in the same currency or (ii) by entering into currency swaps or forwards reflecting the maturity of the hedged item, with the aim that fluctuations in the swaps’ fair values will offset, in profit or loss, the foreign exchange gains and losses arising from conversion of the hedged monetary items.
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At December 31, 2012, the main financial exposures so covered are Euro against US dollar for €57.2 million, against British pound for €5.3 million and against Swedish crown for €2.9 million. The fair value of these contracts, at the balance sheet date amounted to a latent liability of €0.1 million. Sensitivity analysis As at December 31, 2012, a general and instantaneous increase or decrease by 10% of Euro against all currencies, when applied on the net recorded exposure after hedging and all other variables being equal, would have the following effect on the result before tax entity:
Currency of exposure USD GBP AUD EUR USD GBP AUD EURIncrease of € by 10% 0.3 0.2 0.1 0.3 (0.1) - (0.1) 0.5 Decrease of € by 10% (0.4) (0.2) (0.1) (0.4) 0.1 - 0.1 (0.5)
Dec 31, 2012 Dec 31, 2011
2 - LIQUIDITY RISKS 2.1 Future cash flows over financial instruments The following figures show the estimated future cash flows over the interest-bearing loans and borrowings. The amounts in currency are converted at closing rate. The estimate of the future cash flows on interests is based on the forecasted debt amortization, and the future floating rate interests are calculated on the assumption of a crystallisation of the interest rates outstanding as of the closing date, except if a better estimate is available. Financial liabilities 12 months or less 2 years 3 to 5 years More than 5 years
Carrying amount
Contractual cash flow
nominal interests nominal interests nominal interest nominal interest
Interest bearing loansBank Loans 486.5 500.1 152.2 6.1 114.4 4.0 219.9 3.5 - Asset backed facility 25.2 25.3 25.2 0.1 Other Loans 15.6 16.0 8.1 0.2 7.2 0.2 0.3 Bank overdrafts 4.3 4.3 4.3 Finance lease obligations 2.0 2.0 1.0 0.3 0.4 0.3 Total 533.6 547.7 190.8 6.4 121.9 4.2 220.6 3.5 0.3 -
Other Financial LiabilitiesTrade Payable 221.7 221.7 221.7 - - - - - - - Other Financial Liabilities non current 6.8 6.8 - - 4.5 - 2.3 - - - Other Financial Liabilities current 11.6 11.6 11.6 - - - - - - - Total 240.2 240.2 233.4 - 4.5 - 2.3 - - - TOTAL FINANCIAL LIABILITIES 773.8 787.9 424.2 6.4 126.4 4.2 222.9 3.5 0.3 -
Dec 31, 2012
Financial liabilities 12 months or less 2 years 3 to 5 years More than 5 years
Carrying amount
Contractual cash flow
nominal interests nominal interests nominal interests nominal interests
Interest bearing loansBank Loans 311.3 332.6 49.7 6.9 1.4 6.8 260.2 7.6 - - Asset backed facility 30.7 30.9 30.7 0.2 - - - - - - Other Loans 32.9 33.8 25.9 0.7 6.6 0.2 0.3 - 0.1 - Bank overdrafts 7.6 7.6 7.6 - - - - - - - Finance lease obligations 3.6 3.6 1.8 - 1.0 - 0.7 - 0.1 Total 386.1 408.5 115.7 7.8 9.0 7.0 261.2 7.6 0.2 -
Other Financial LiabilitiesTrade Payable 189.3 189.3 189.3 - - - - - - - Other Financial Liabilities non current 8.8 8.8 - - 5.3 - 3.5 - - - Other Financial Liabilities current 11.9 11.9 11.9 - - - - - - - Total 210.0 210.0 201.2 - 5.3 - 3.5 - - - TOTAL FINANCIAL LIABILITIES 596.1 618.5 316.9 7.8 14.3 7.0 264.7 7.6 0.2 -
Dec 31, 2011
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2.2 Liquidity position As of December 31, 2012 the consolidated net debt (current and non-current loans and financial interest-bearing debts minus cash and cash equivalents) of the Group is equal to €452.2 million over a total debt capacity of €874.9 million used in the amount of €533.6 million (see note 15). The liquidity position of the Group amounts to €421 million, and is enough to cover the financial obligations related to the financial debt in 2012.
Dec 31, 2012 Dec 31, 2011
Amount available on credit facilities 339.6 392.2Cash and cash equivalents 81.4 53.9
421.0 446.1 The €450.0 million syndicated facility, the €150 million and the €114.0 million term loans contain obligations which are all based on the main following covenants: - the ratio Net debt / EBITDA (as adjusted according to the definition of the credit agreements) must be lower
than 3.0 - the ratio EBITDA / Net interests expenses (as adjusted according to the definition of the credit agreements)
must be higher than 2.5 - cross-acceleration above certain materiality thresholds and material adverse change clauses.
As at December 31, 2012, the Group complies with these covenants. 3 - CREDIT RISK Credit risk represents the risk of financial loss for the Group in case counterparty to a financial instrument would default in paying its contractual obligations. The financial assets potentially bearing this risk are mainly:
- cash deposits and investments, - financial derivatives, - accounts receivables, - loans granted.
The maximum potential credit risk on the financial assets is equal to their net accounting value, diminished by the indemnification receivable from credit insurances. 3.1 Customer credit risk The Group considers that the exposure to counterparty risk in accounts receivables is limited, because of the great number of customers, its dispersion in many geographical areas, its follow-up policy and its world credit insurance scheme that has been expanded to a wider perimeter of subsidiaries during the year. The Group has established a credit policy which includes, among other, one credit limit for each customer, collections processes, and a computer-aided credit scoring and customer payment behaviour follow-up. Moreover, the Group credit insurance scheme not only provides a hedge of the maximum potential loss in certain countries or business zones but also assistance and coordination in case of negotiations with counterparties at risk. Therefore the maximum potential counterparty risk on the accounts receivables is equal to the net accounting value of these assets minus the maximum indemnification receivable under the insurance scheme. The total of receivables overdue over 90 days amounts to circa 8.6% of the total amount of accounts receivables at the December 31, 2012 (8.1% of the total amount of accounts receivables at December 31, 2011). The Group considers that there is no presumption of risks on outstanding receivables for less than 90 days. As for outstanding receivables for more than 90 days, the Group considers that risks are limited given existing procedures of customer risk management (as detailed above). 3.2 Credit risk management on equities and derivatives The counterparts of the Group’s financial derivatives are first rank banks or partly state-owned like in Russia, and all being in business relation with the Group for lending or for cash management. The policy of the Group with regard to investments and cash deposits is to only invest in liquid securities and only with the first rank credit institutions that exist in the country where the investment is done.
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The Group is not exposed to a material risk due to any significant concentration of the risk over a specified counterparty, and does not anticipate any counterparty default. 4 – FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
Dec 31, 2012
Hedging Derivatives
Cash and cash equivalents
Assets designated at fair
value through profit & loss
Held-to-maturity investments
Loans and receivables
Liabilities at amortized cost
Available for sale assets/liabilities
Carrying amount
Fair value
Non current financial assets valued at amortized value - - - - 13.1 - - 13.1 13.1 Non current financial assets valued at fair value - - 22.1 - - - - 22.1 22.1 Accounts receivables (0.1) - - - 283.2 - - 283.1 283.1 Cash and cash equivalents - 81.4 - - - - - 81.4 81.4 Assets classified as held for sale - - - - - - - - - Interest-bearing loans and borrowings - - - - - 533.6 - 533.6 533.6 Other financial liabilities, non current - - - - - 6.8 - 6.8 6.8 Other financial liabilities, current 8.8 - - - - 2.8 - 11.6 11.6 Accounts payables - - - - - 221.7 - 221.7 221.7 Liabilities classified as held for sale - - - - - - - - - The table below analyses financial instruments carried at fair value, by the levels in the fair value hierarchy. The different levels have been defined as follows.
- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. - Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). - Level 3: inputs for the asset or liability that are not based on observable market data (unobservable
inputs).
Dec 31, 2012 Level 1 Level 2 Level 3Assets recorded at fair valueAssets designated at fair value 22.1Cash and cash equivalents 81.4Liabilities recorded at fair valueHedging Derivatives (8.8)
Dec 31, 2011
Hedging Derivatives
Cash and cash equivalents
Assets designated at fair
value through profit & loss
Held-to-maturity investments
Loans and receivables
Liabilities at amortized cost
Available for sale assets/liabilities
Carrying amount
Fair value
Non current financial assets valued at amortized value - - - - 11.5 - - 11.5 11.5 Non current financial assets valued at fair value - - 15.3 - - - - 15.3 15.3 Accounts receivables 0.3 - - - 283.3 - - 283.6 283.6 Cash and cash equivalents - 53.9 - - - - - 53.9 53.9 Assets classified as held for sale - - - - - - - - - Interest-bearing loans and borrowings - - - - - 386.1 - 386.1 386.1 Other financial liabilities, non current - - - - - 8.8 - 8.8 8.8 Other financial liabilities, current 9.7 - - - - 2.2 - 11.9 11.9 Accounts payables - - - - - 189.3 - 189.3 189.3 Liabilities classified as held for sale - - - - - - - - -
Dec 31, 2011 Level 1 Level 2 Level 3Assets recorded at fair valueAssets designated at fair value 15.3Cash and cash equivalents 53.9Liabilities recorded at fair valueHedging Derivatives (10.0)
Tarkett SATarkett SATarkett SATarkett SA
19/02/2013 46/49
NOTE 25 – LEASE COMMITMENTS The Group’s operating lease commitments are mainly commitments for buildings, vehicles, computer hardwares and softwares, offices. Future minimum lease payments under financial leases, and future minimum rental commitments under operating leases with initial or remaining non-cancellable terms in excess of one year, are summarised below:
Dec 31, 2012 Dec 31, 2011Net carrying amountsLand leased 0.1 - Buiding leased 5.8 7.0 Machinery and equipment leased 5.2 7.1 Total net carrying amounts 11.1 14.1
Dec 31, 2012 Dec 31, 2011Present value of future lease paymentLess than 1 year 1.0 1.8 1 to 5 years 0.5 1.7 More than 5 years 0.5 0.2 Total present value of future lease payment 2.0 3.6
Financial leases
Dec 31, 2012 Dec 31, 2011Future minimum lease paymentsLess than 1 year 14.2 6.8 1 to 5 years 24.3 16.2 More than 5 years 3.1 2.9 Total future minimum lease payments 41.6 26.0
Operating leases
NOTE 26 – OTHER CONTINGENCIES
Asbestos One of the Group subsidiaries has been named co-defendant in asbestos related lawsuits involving personal injuries. Expected costs of the current or future cases are covered by Group’s insurances, sellers’ guarantee granted by third-parties and by provisions that management, based on the advice and information provided by its legal counsels, considers as sufficient. Guarantees Tarkett SA:
- has granted a General Indemnity Agreement of up to USD 75.0 million in favour of Federal Insurance Company in consideration of this company to execute security bonds in favour of Fieldturf Tarkett Inc,
- has given its guarantee on 50% of a credit facility of up to €10 million granted to its joint venture subsidiary Laminate Park, and
- has provided a guarantee to the pensions insurer Pri-Pensionsgaranti to secure the pensions commitments of Tarkett AB for an amount of SEK 149.9 million.
- has provided a guarantee to a raw material supplier of it subsidiary Morton Extrusion Technik to secure its payables up to €5 million.
- has given a mother company guarantee to the lending bank of the Syndicated Revolving Credit Facility signed on June 27, 2011 in order to allow Tarkett Finance Inc to become an additional borrower up to an amount of USD 100.0 million.
- has given a mother company guarantee to the lending banks of an asset backed facility of €55 million to the extent that this facility, aimed to finance the Group, was subscribed its subsidiary Tarkett France SAS for technical reasons. Tarkett SA has also given a mother company guarantee to the bank of Tarkett Limited (UK) and Poligras (Spain) to secure technical overdraft facilities in these companies, for a total amount of €3.5 million.
Tarkett SATarkett SATarkett SATarkett SA
19/02/2013 47/49
Other In March 2011, Fieldturf NA filed a complaint for compensatory damages against Tencate, one of its former supplier of fiber. The amount claimed by Fieldturf is for damages in excess of $30m. The litigation is currently on going. NOTE 27 – RELATED PARTIES In compliance with IAS 24, the Group has identified the following related parties:
- Subsidiaries, joint ventures and associates (see §1). - Members of the Executive Management Committee and of the Supervisory Board of Tarkett SA. - Société d’Investissement Familiale S.I.F. SA (see §2).
1 – Subsidiaries, joint ventures and associates All transactions between fully consolidated entities are eliminated in consolidation. Transactions with joint ventures are entered into on an arm’s length basis. Joint ventures The only entity with activity which remains jointly controlled is the entity jointly held with Sonae Group in Germany.
Associates Tarkett SA has no associates. The Group’s transactions with jointly controlled may be summarised as follows:
2012 2011
Joint venturesSale of goods to Tarkett 32.1 31.8 Purchase of goods from Tarkett - - Purchase of services from Tarkett (2.5) (2.5) Loans to Tarkett - 0.6 Loans from Tarkett 14.2 18.4
AssociatesPurchase of goods from Tarkett - - Loans from Tarkett - -
2 – Société d’Investissement Familial (S.I.F. SA) Société d’Investissement Familiale S.I.F. SA holds 99.28% of Tarkett SA’s share capital and as such, controls and coordinates the activities of the Tarkett Group. Tarkett SA is linked by contract to S.I.F. SA in respect of management services which are remunerated on the basis of the actual costs incurred by S.I.F. SA. For the year 2012, S.I.F. SA invoiced a total of €3.4 million with respect to management fees (for 2011: €2.3 million). At the end of 2012, S.I.F. SA has granted a loan to Tarkett SA for a total amount of €5.7 million.
NOTE 28 – SUBSEQUENT EVENTS There is no subsequent event to be disclosed.
Tarkett SATarkett SATarkett SATarkett SA
19/02/2013 48/49
NOTE 29 - MAIN CONSOLIDATED ENTITIES
CountryConsolidation
method
% Ownership at Dec 31,
2012
% Ownership at Dec 31,
2011G: Fully consolidated
E: Accounted for using the Equity Method
P: Subject to proportionate consolidation
C220 Tarkett SA France Parent Company 100% 100%
C656 Somalré Luxemburg G 100% 100%
C006 Tarkett Ltd. United Kingdom NC - 100%
C012 Tarkett Australia Pty. Ltd Australia G 100% 100%
C757 Galerija Podova - Sintelon Doo Bosnia G 100% 100%
C061 Fademac Brazil G 100% 100%
C441 Tarkett Inc. Canada G 100% 100%
C808 Tandus Flooring Canada, GP Canada G 100% -
C951 Johnsonite Canada Inc. Canada G 100% 100%
C429 Tarkett Floor covering (Shanghai) Co China G 70% 70%
C807 Tandus Flooring Suzhou China G 100% -
C018 Tarkett A/S Denmark G 100% 100%
C003 Tarkett Oy Finland G 100% 100%
C433 Tarkett France France G 100% 100%
C434 Tarkett Bois SAS France G 100% 100%
C081 Laminate Park Gmbh & Co KG Germany P 50% 50%
C214 Tarkett Holding GmbH Germany G 100% 100%
C419 Tarkett Monoprosopi Ltd. Greece G 100% 100%
C427 Tarkett Asia Pacific Ltd Hong Kong G 100% 100%
C428 Tarkett Hong Kong Ltd. Hong Kong G 70% 70%
C460 Tarkett Kft Hungary G 100% 100%
C809 Tandus Flooring India Private Limited India G 100% -
C417 Tarkett SpA Italy G 100% 100%
C459 Tarkett Kaz Kazakhstan G 100% 100%
C409 Tarkett GDL SA Luxemburg G 100% 100%
C411 Tarkett Capital SA Luxemburg G 100% 100%
C002 Tarkett AS Norway G 100% 100%
C037 Tarkett Polska Sp.Z.O.O. Poland G 100% 100%
C045 Tarkett Wykladziny Sp.Z.O.O. Poland NC -- 100%
C418 Tarkett Produtos Internacionais S.A. Portugal G 100% 100%
C461 Tarkett BEL Rep. of Belarus G 100% 100%
C452 ZAO Tarkett Russia G 100% 100%
C453 ZAO Tarkett Rus Russia G 100% 100%
C454 Tarkett Sommer OOO Russia G 100% 100%
C455 Tarkett d.o.o. Serbia G 100% 100%
C456 Tarkett SEE Serbia G 100% 100%
C754 Sintelon RS Serbia G 100% 100%
C755 Sintelon d.o.o. Serbia G 100% 100%
C756 Galerija Podova d.o.o. Serbia G 100% 100%
C803 Tandus Flooring Asia Pte Ltd Singapore G 100% -
C425 Tarkett Floors S.A. Spain G 100% 100%
C001 Tarkett AB Sweden G 100% 100%
C062 Tarkett Aspen Turkey G 70% 70%
C457 Tarkett UA Ukraine G 100% 100%
C758 Sintelon UA Ukraine G 100% 100%
C759 Vinisin Ooo Ukraine G 100% 100%
C606 Tarkett Ltd. United Kingdom G 100% 100%
C009 Tarkett Inc. Delaware United States G 100% 100%
C800 Tandus Group, Inc United States G 100% -
C801 Tandus Flooring, Inc United States G 100% -
C802 Nova Scotia Ltd United States G 100% -
C804 Tandus Flooring US, LLC United States G 100% -
C805 CAF Extrusion LLC United States G 100% -
C806 Tandus Flooring Limited United States G 100% -
C846 Tarkett Enterprises Inc. United States G 100% 100%
C847 Domco Products Texas LP United States G 100% 100%
C848 Tarkett Alabama Inc. United States G 100% 100%
C849 Tarkett Finance Inc United States G 100% 100%
C910 Kraus Floor LLC United States NC - 50%
Companies
Holdings
Flooring
Tarkett SATarkett SATarkett SATarkett SA
19/02/2013 49/49
CountryConsolidation
method
% Ownership at Dec 31,
2012
% Ownership at Dec 31,
2011
C872 Fieldturf Inc. Canada G 100% 100%
C878 Les Installations Sportives Defargo Inc. Canada G 100% 100%
C438 Fieldturf Tarkett SAS France G 100% 100%
C473 Morton ExtrusionsTechnik GmbH Germany G 100% 100%
C008 Tarkett Ireland Ireland NC -- 100%
C474 Aasportsystems B.V. Netherlands G 100% 100%
C471 Poligras Iberica SA Spain G 96% 96%
C850 Tarkett USA Inc. United States G 100% 100%
C854 Tarkett Texas Holding Inc. United States G 100% 100%
C862 Texas Tile Manufacturing LLC United States G 75% 75%
C863 Tarkett IFA Inc. United States G 100% 100%
C886 Easy Turf Inc. United States G 51% 51%
C887 Atlas Tracks Inc. United States NC -- 100%
C889 Beynon Sports Surfaces Inc. United States G 100% 100%
C890 Fieldturf Tarkett USA Holdings Inc. United States G 100% 100%
C893 Fieldturf USA, Inc. United States G 100% 100%
C896 Air Fieldturf Inc. United States NC -- 100%
C950 Johnsonite Inc. United States G 100% 100%
C960 Diamond W Supply Co. United States G 100% 100%
Sports
Companies
KPMG Audit Le Belvédère 1 Cours Valmy CS 50034 92923 Paris La Défense Cedex France
Mazars 61, rue Henri Regnault 92075 Paris La Défense France
Tarkett
Statutory auditors’ report on the consolidated financial statements
Year ended 31 December 2014 Tarkett
Tour Initiale – 1 Terrasse Bellini – 92919 Paris La Défense - France This report contains 23 pages
reg
KPMG Audit Le Belvédère 1 Cours Valmy CS 50034 92923 Paris La Défense Cedex France
Mazars 61, rue Henri Regnault 92075 Paris La Défense France
This is a free translation into English of the statutory auditors’ report on the consolidated financial statements issued in French and is provided solely for the convenience of English-speaking users. The statutory auditors' report includes information specifically required by French law in such reports, whether modified or not. This information is presented below the audit opinion on the consolidated financial statements and includes an explanatory paragraph discussing the auditors' assessments of certain significant accounting and auditing matters. These assessments were considered for the purpose of issuing an audit opinion on the consolidated financial statements taken as a whole and not to provide separate assurance on individual account balances, transactions, or disclosures. This report also includes information relating to the specific verification of information given in the Group's management report. This report should be read in conjunction with, and construed in accordance with, French law and professional auditing standards applicable in France.
Tarkett Registered office: Tour Initiale – 1 Terrasse Bellini – 92919 Paris La Défense - France Share capital: €.318 613 480 Statutory auditors’ report on the consolidated financial statements
Year ended 31 December 2014
To the Shareholders,
In compliance with the assignment entrusted to us by your annual general meeting, we hereby report to you, for the year ended 31 December 2014, on:
the audit of the accompanying consolidated financial statements of Tarkett;
the justification of our assessments;
the specific verification required by law.
These consolidated financial statements have been approved by the Management Board (“Directoire”). Our role is to express an opinion on these consolidated financial statements based on our audit.
1 Opinion on the consolidated financial statements
We conducted our audit in accordance with professional standards applicable in France; those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit involves performing procedures, using sampling techniques or other methods of selection, to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made, as well as the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
xxx-xxx - Year ended 31 December 2014 3
Tarkett
Statutory auditors’ report on the consolidated financial statements
In our opinion, the consolidated financial statements give a true and fair view of the assets and liabilities and of the financial position of the Group as at 31 December 2014 and of the results of its operations for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union.
Without qualifying our opinion, we draw attention to the notes “2.2.1 Standards, amendments and interpretations”, “8. Income tax” and “20. Deferred tax” to the consolidated financial statements, describing the implementation as at 1st January 2014 of paragraph 41 of IAS 12, previously not applied by Tarkett, and its impact on both the consolidated financial statements and the comparative financial information.
2 Justification of our assessments
In accordance with the requirements of article L.823-9 of the French Commercial Code (“Code de commerce”), we bring to your attention the following matters:
Accounting estimates:
Notes “2.2.2 Use of estimates and judgments” and “27 Other contingencies” to the consolidated financial statements disclose the assessments and significant estimates made by Tarkett’s management.
In connection with our audit, we considered that those assessments and estimates related mainly to intangible and tangible assets (note 2.5.10, 2.5.11, 2.5.15, 9 and 10), deferred tax assets (notes 2.5.22, 8 and 20), provisions (notes 2.5.20 and 21) and employee post-retirement benefits (notes 2.5.18 and 22).
For these accounts, our work consisted in assessing the data and assumptions underlying the assessments and estimates, reviewing on a sample basis, the calculations performed by the Company, comparing prior years accounting estimates with the corresponding actual results, reviewing management’s approval procedures for such estimates and reviewing that the disclosures relating to these estimates in the notes to the financial statements are appropriate.
These assessments were made as part of our audit of the consolidated financial statements taken as a whole, and therefore contributed to the opinion we formed which is expressed in the first part of this report.
xxx-xxx - Year ended 31 December 2014 4
Tarkett
Statutory auditors’ report on the consolidated financial statements
3 Specific verification
As required by law we have also verified, in accordance with professional standards applicable in France, the information relative to the Group, given in the parent company’s management report.
We have no matters to report as to its fair presentation and its consistency with the consolidated financial statements.
Paris La Défense, 18 February 2015
The statutory auditors,
KPMG Audit Mazars Department of KPMG S.A.
Philippe Grandclerc Juliette Decoux Eric Schwaller Partner Partner Partner
Tarkett
___________________________
Consolidated financial statements Year ended December 31, 2014
All figures are presented in million of euros unless stated otherwise.
2 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
TABLE OF CONTENTS
TABLE OF CONTENTS ....................................................................................................................................................................... 2
CONSOLIDATED INCOME STATEMENT ............................................................................................................................................. 3
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME .......................................................................................................... 4
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ................................................................................................................... 5
CONSOLIDATED STATEMENT OF CASH FLOWS ................................................................................................................................ 6
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY .................................................................................................................... 7
NOTE 1 - GENERAL INFORMATION .................................................................................................................................................. 8
NOTE 2 - SIGNIFICANT ACCOUNTING PRINCIPLES ........................................................................................................................... 8
NOTE 3 - SCOPE OF CONSOLIDATION ............................................................................................................................................ 19
NOTE 4 - ADJUSTED EBITDA ........................................................................................................................................................... 23
NOTE 5 - SEGMENT INFORMATION ............................................................................................................................................... 24
NOTE 6 - OTHER OPERATING INCOME - OTHER OPERATING EXPENSES ........................................................................................ 25
NOTE 7 - FINANCIAL RESULT .......................................................................................................................................................... 25
NOTE 8 - INCOME TAX ................................................................................................................................................................... 26
NOTE 9 - GOODWILL ...................................................................................................................................................................... 26
NOTE 10 - INTANGIBLE, TANGIBLE AND FINANCIAL ASSETS .......................................................................................................... 27
NOTE 11 - INVENTORIES ................................................................................................................................................................ 29
NOTE 12 - TRADE RECEIVABLE ....................................................................................................................................................... 29
NOTE 13 - OTHER RECEIVABLES ..................................................................................................................................................... 30
NOTE 14 - SHARE CAPITAL ............................................................................................................................................................. 30
NOTE 15 - EARNINGS PER SHARE & DIVIDENDS............................................................................................................................. 30
NOTE 16 - NET DEBT – INTEREST-BEARING LOANS AND BORROWINGS ........................................................................................ 31
NOTE 17 - OTHER FINANCIAL LIABILITIES....................................................................................................................................... 32
NOTE 18 - TRADE PAYABLES .......................................................................................................................................................... 33
NOTE 19 - OTHER LIABILITIES ......................................................................................................................................................... 33
NOTE 20 - DEFERRED TAX .............................................................................................................................................................. 33
NOTE 21 - PROVISIONS .................................................................................................................................................................. 34
NOTE 22 - EMPLOYEE BENEFITS ..................................................................................................................................................... 35
NOTE 23 - PERSONNEL COSTS AND COMPENSATION OF SENIOR MANAGEMENT ........................................................................ 38
NOTE 24 - SHARE-BASED PAYMENT TRANSACTIONS ..................................................................................................................... 38
NOTE 25 - FINANCIAL RISKS AND FINANCIAL INSTRUMENTS ........................................................................................................ 39
NOTE 26 - LEASE COMMITMENTS .................................................................................................................................................. 43
NOTE 27 - OTHER CONTINGENCIES ................................................................................................................................................ 43
NOTE 28 - RELATED PARTIES .......................................................................................................................................................... 44
NOTE 29 - SUBSEQUENT EVENTS ................................................................................................................................................... 44
NOTE 30 - PRINCIPAL CONSOLIDATED ENTITIES ............................................................................................................................ 45
CONSOLIDATED INCOME STATEMENT
Tarkett - Annexes to the Consolidated Financial Statements, December 2014 3
CONSOLIDATED INCOME STATEMENT
Note Dec. 31, 2014
Dec. 31, 2013
restated *
Net revenue 2,414.4 2,516.4
Cost of sales (1,842.8) (1,892.8)
Gross profit 571.6 623.7
Other operating income (6) 7.2 8.9
Selling and distribution expenses (249.4) (248.8)
Research and development expenses (26.0) (25.8)
General and administrative expenses (151.9) (162.3)
Other expenses (6) (14.9) (14.8)
Result from operating activities (4) 136.6 180.9
Financial income 1.8 1.6
Financial expenses (32.8) (33.0)
Financial income and expense (7) (31.0) (31.4)
Share of profit of equity accounted investees (net of income tax) (1.7) (1.4)
Profit before income tax 103.9 148.2
Income tax expense (8) (40.7) (49.3)
Profit from continuing operations 63.2 98.8
Profit (loss) from discontinued operations (net of income tax) - -
Net profit for the period 63.2 98.8
Attributable to:
Owners of Tarkett 61.2 97.6
Non-controlling interests 2.0 1.2
NET PROFIT FOR THE PERIOD 63.2 98.8
Earnings per share:
Basic earnings per share (in EUR) (15) 0.96 1.58
Diluted earnings per share (in EUR) (15) 0.96 1.56
* The comparative periods have been retroactively restated following application of IAS 12.41 (see Note 2.5.22)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
4 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Dec. 31, 2014
Dec. 31, 2013
restated *
Net profit for the period 63.2 98.8
Other comprehensive income (OCI)
Foreign currency translation differences for foreign operations 55.7 (31.0)
Changes in fair value of cash flow hedges (0.5) 6.4
Income tax on other comprehensive income 0.2 (2.2)
OCI to be reclassified to profit and loss in subsequent periods 55.4 (26.8)
Defined benefit plan actuarial gains (losses) (29.7) 17.1
Income tax on other comprehensive income 4.8 (5.0)
OCI not to be reclassified to profit and loss in subsequent periods (24.9) 12.1
Other comprehensive income for the period, net of income tax 30.5 (14.7)
Total comprehensive income for the period 93.7 84.2
Attributable to:
Owners of Tarkett 91.2 83.5
Non-controlling interests 2.5 0.7
Total comprehensive income for the period 93.7 84.2
* The comparative periods have been retroactively restated following application of IAS 12.41 (see Note 2.5.22)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Tarkett - Annexes to the Consolidated Financial Statements, December 2014 5
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Note Dec. 31, 2014
Dec. 31, 2013
restated *
ASSETS
Goodwill (9) 532.6 425.6
Intangible assets (10) 115.8 110.9
Property, plant and equipment (10) 502.1 415.4
Financial assets (10) 28.8 27.5
Deferred tax assets (20) 109.3 82.6
Other non-current assets (13) 0.5 0.2
Non-current assets 1,289.1 1,062.2
Inventories (11) 348.2 318.6
Trade receivables (12) 312.0 279.7
Other receivables (13) 72.9 59.2
Cash and cash equivalents (16) 135.1 96.7
Current assets 868.2 754.2
TOTAL ASSETS 2,157.3 1,816.4
EQUITY AND LIABILITIES
Share capital (14) 318.6 318.6
Share premium and reserves 145.8 145.6
Retained earnings 194.9 118.2
Net result for the period 61.3 97.6
Equity attributable to equity holders of the parent 720.6 680.1
Non-controlling interests 5.2 6.1
Total equity 725.8 686.2
Interest-bearing loans and borrowings (16) 690.4 501.3
Other financial liabilities (17) 3.8 4.7
Deferred tax liabilities (20) 36.5 10.8
Employee benefits (22) 155.4 122.3
Provisions and other non-current liabilities (21) 44.6 41.2
Non-current liabilities 930.7 680.2
Trade payables (18) 224.4 219.8
Other liabilities (19) 180.4 167.0
Interest-bearing loans and borrowings (16) 40.2 24.4
Other financial liabilities (17) 5.3 5.0
Provisions and other current liabilities (21) 50.5 33.7
Current liabilities 500.8 450.0
TOTAL EQUITY AND LIABILITIES 2,157.3 1,816.4
* The comparative periods have been retroactively restated following application of IAS 12.41 (see Note 2.5.22)
CONSOLIDATED STATEMENT OF CASH FLOWS
6 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
CONSOLIDATED STATEMENT OF CASH FLOWS
Note Dec. 31, 2014
Dec. 31, 2013
restated *
Cash flows from operating activities
Net profit before tax 103.9 148.2
Adjustments for:
Depreciation and amortization 100.8 105.5
(Gain) loss on sale of fixed assets (0.8) (0.3)
Net finance costs 31.0 31.4
Change in provisions and other non-cash items 3.1 10.4
Share of profit of equity accounted investees (net of tax) 1.7 1.4
Operating cash flow before working capital changes 239.7 296.4
Increase (-) / Decrease (+) in trade receivables 10.9 -
Increase (-) / Decrease (+) in other receivables (4.3) 2.4
Increase (-) / Decrease (+) in inventories 19.5 2.0
Increase (+) / Decrease (-) in trade payables (19.7) (21.4)
Increase (+) / Decrease (-) in other payables 3.9 0.7
Effect of changes in working capital 10.3 (16.3)
Cash generated from operations 250.0 280.2
Net interest paid (23.2) (25.6)
Net income taxes paid (48.4) (47.8)
Other 0.2 (1.2)
Other operating items (71.4) (74.5)
NET CASH (USED IN) / FROM OPERATING ACTIVITIES 178.6 205.6
Cash flows from investing activities
Acquisitions of subsidiaries net of cash acquired (3) (176.7) (3.5)
Acquisitions of property, plant and equipment (10) (87.7) (100.5)
Proceeds from sale of property, plant and equipment (10) 1.5 0.9
NET CASH FROM / (USED IN) INVESTMENT ACTIVITIES (262.9) (103.1)
Net cash from / (used in) financing activities
Acquisition of NCI without a change in control (15.9) (4.4)
Proceeds from loans and borrowings 278.0 504.0
Repayment of loans and borrowings (103.6) (496.3)
Payment of finance lease liabilities 0.1 (0.4)
Sale of treasury shares - 38.1
Dividends (39.4) (124.8)
NET CASH FROM / (USED IN) FINANCING ACTIVITIES 119.2 (83.8)
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 34.9 18.5
Cash and cash equivalents, beginning of period 96.7 81.4
Effect of exchange rate fluctuations on cash held 3.5 (3.2)
CASH AND CASH EQUIVALENTS, END OF PERIOD 135.1 96.7
* The comparative periods have been retroactively restated following application of IAS 12.41 (see Note 2.5.22)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Tarkett - Annexes to the Consolidated Financial Statements, December 2014 7
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share
capital
Share
premium
and
reserves
Translation
reserves
Retained
earnings
Total
Non-
controlling
interests
Total
equity
Balance at January 1, 2013 - restated * 316.1 138.8 (71.8) 300.3 683.4 10.1 693.7
Net profit for the period - - - 97.6 97.6 1.2 98.8
Other comprehensive income - - (30.5) 16.4 (14.2) (0.5) (14.7)
Total comprehensive income for the period - - (30.5) 114.0 83.5 0.7 84.2
Dividends - - - (124.8) (124.8) - (124.8)
Own shares (acquired) / sold - - - 38.1 38.1 - 38.1
Share based payment - - - 6.2 6.2 - 6.2
Acquisition of NCI without a change in control - - - (0.5) (0.5) (4.8) (5.3)
Issue of shares 2.5 6.8 - (5.6) 3.6 - 3.6
Other - - - (9.5) (9.5) - (9.5)
Total transactions with shareholders 2.5 6.8 - (96.1) (86.8) (4.8) (91.6)
Balance at December 31, 2013 - restated * 318.6 145.6 (102.3) 318.2 680.1 6.1 686.2
Balance at January 1, 2014 318.6 145.6 (102.3) 318.2 680.1 6.1 686.2
Net profit for the period - - - 61.2 61.2 2.0 63.2
Other comprehensive income - - 55.2 (25.2) 30.0 0.5 30.5
Total comprehensive income for the period - - 55.2 36.0 91.2 2.5 93.7
Dividends - - - (39.4) (39.4) - (39.4)
Own shares (acquired) / sold - - - (1.4) (1.4) - (1.4)
Share based payment - - - 2.8 2.8 - 2.8
Acquisition of NCI without a change in control - - - (11.2) (11.2) (3.4) (14.6)
Other - 0.2 - (1.7) (1.5) - (1.5)
Total transactions with shareholders - 0.2 - (50.9) (50.7) (3.4) (54.1)
Balance at December 31, 2014 318.6 145.8 (47.1) 303.3 720.6 5.2 725.8
* The comparative periods have been retroactively restated following application of IAS 12.41 (see Note 2.5.22)
NOTE 1 - GENERAL INFORMATION
8 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
NOTE 1 - GENERAL INFORMATION
Tarkett’s consolidated financial statements as of and for
the year ended December 31, 2014 comprise the Company
and its subsidiaries (hereafter the “Group”) as well as its
interests in associates and joint ventures.
The Group is a leading global flooring company, providing
integrated flooring and sports surface solutions to business
and residential end-users.
The Group completed its initial public offering on
November 21, 2013.
The Group's registered office is located at 1 Terrasse Bellini
- Tour Initiale - 92919 Paris La Défense, France.
The Group's consolidated financial statements as of and for
the year ended December 31, 2014 were finalized by the
Management Board on February 16, 2015 and reviewed by
the Supervisory Board on February 18, 2015. They will be
submitted for shareholder approval on April 24, 2015.
NOTE 2 - SIGNIFICANT ACCOUNTING PRINCIPLES
2.1 GENERAL FRAMEWORK
The Group's consolidated financial statements as of and for
the year ended December 31, 2014 have been prepared in
accordance with IFRS (International Financial Reporting
Standards) as adopted by the European Union as of such
date, which are available at http://ec.europa.eu/inter
nal_market/accounting/ias/index_fr.htm. These standards
have been applied consistently for the fiscal years
presented.
2.2 BASIS OF PREPARATION OF CONSOLIDATED
FINANCIAL STATEMENTS
2.2.1 STANDARDS, AMENDMENTS AND INTERPRETATIONS
a) Amendments or revisions to existing
standards and interpretations applied during
the period
In preparing its consolidated financial statements, the
Group has taken into account the following amendments
and revisions to existing standards and interpretations.
These amendments and interpretations have been
approved by the European Union and their application is
mandatory:
� Amendment to IAS 32, "Offsetting Financial Assets and
Financial Liabilities": this amendment clarifies the
rules for offsetting financial assets and financial
liabilities and, more specifically, creates a legally
enforceable right to offset the amounts reported.
� Amendment to IFRS 10, IFRS 12 and IAS 27,
"Investment Entities": the purpose of these
amendments is to improve disclosure for investors in
investment entities.
� Amendment to IAS 36, "Recoverable Amount
Disclosures for Non-Financial Assets": this amendment
clarifies the disclosure required with respect to
estimating the amount recoverable for non-financial
assets.
� Amendment to IAS 39 and IFRS 9, "Novation of OTC
Derivatives and Continuing Designation for Hedge
Accounting": these amendments allow novation of an
over-the-counter (OTC) derivative that is designated
as a hedging instrument, where that novation is
required by legislation/regulation of an otherwise
unchanged hedging instrument, to be deemed to be a
continuation of the existing hedging relationship.
The adoption of these amendments had no effect on the
Group's consolidated financial statements.
The Group had early adopted, as of January 1, 2013, IFRS
10, "Consolidated Financial Statements", IFRS 11, "Joint
Arrangements" and IFRS 12, "Disclosure of Interests in
Other Entities", and the above amendments had no effect
on the information previously presented in the interim
consolidated financial statements.
b) Early adoption of new standards or
interpretations during the period
The Group did not implement early application of any new
standards or interpretations during the period.
c) New standards and interpretations not yet
adopted
IFRIC 21, "Levies", is the only recent change to IFRS
standards that may be adopted early but has not yet been
implemented by the Group.
d) Application of standards during the period
Before December 31, 2014, the Group had not applied IAS
12.41, on the effect of changes in the exchange rate on
non-monetary assets and liabilities of entities whose
functional currency is different from the local currency.
However, due to the devaluation of the Russian and
Ukrainian currencies during the fiscal year, the impacts for
the year on the income statement and the cumulative
impact on the balance sheet became material, and the
Group recorded deferred taxes in accordance with IAS
12.41 (see Note 2.5.22).
2.2.2 USE OF ESTIMATES AND JUDGMENTS
The preparation of financial statements in accordance with
IFRS requires management to make certain estimates and
assumptions that affect the reported amounts of assets
and liabilities on the Group's balance sheet and reported
income and expenses on its income statement.
Management reviews these estimates and assumptions on
an ongoing basis, by reference to past experience and
various other factors considered to be reasonable, which
form the basis for assessing the carrying amount of assets
and liabilities. Actual results may differ significantly from
these estimates.
These judgments and estimates relate principally to:
� Measurement of the fair value of the consideration
transferred, NCI and assets acquired and liabilities
NOTE 2 - SIGNIFICANT ACCOUNTING PRINCIPLES
Tarkett - Annexes to the Consolidated Financial Statements, December 2014 9
assumed. Such allocations may involve the use of
assumptions in respect of future cash flows (Note 3);
� Impairment testing of assets: Group management
carries out these tests on the basis of its best
estimates of the future activity of the relevant cash-
generating units and of appropriate discount rates
(Note 9 and Note 10);
� Accounting treatment of financial instruments: the
Group has performed the requisite valuation
procedures and has tested the effectiveness of its
hedging instruments (Note 25);
� Provisions for employee benefits: provisions have
been estimated with the assistance of an external
actuarial firm (Note 22);
� The net tax position reflects the Group’s best estimate
of the trend of its future results for tax purposes (Note
20);
� All other provisions, such as for guarantees and
litigation, have been booked on the basis of
management's best estimates, when necessary using
statistical approaches (Note 21).
In preparing these financial statements, the significant
judgments made by management in applying the Group’s
accounting policies and the key sources of estimation
uncertainty were the same as those used in preparing the
consolidated financial statements as of and for the year
ended December 31, 2013.
Where the accounting treatment of a specific transaction is
not addressed by any accounting standard or
interpretation, management applies its judgment to define
and apply accounting policies that will lead to relevant and
reliable information, so that the financial statements:
� provide a true and fair view of the Group’s financial
position, financial performance and cash flows;
� reflect the substance of transactions;
� are prepared on a prudent basis; and
� are complete in all material respects.
The Group’s consolidated financial statements have been
prepared on a historical cost basis with the exception of
the following assets and liabilities, which have been
measured at fair value: derivatives, investments held for
trading and available-for-sale financial assets, pension plan
assets and other assets when required. The carrying
amount of assets and liabilities that are the subject of fair
value hedges has been adjusted in line with the changes in
fair value attributable to the hedged risks.
2.3 BASIS OF PRESENTATION
Consolidated income statement
Expenses are classified in the consolidated income
statement according to their function.
Consolidated statement of financial position
The balance sheet distinguishes between current and non-
current assets and between current and non-current
liabilities. Current assets comprise assets intended to be
sold or consumed during the Group’s normal operating
cycle and cash or cash equivalents. Other assets are
classified as non-current assets. Current liabilities comprise
liabilities with maturities during the Group’s normal
operating cycle or within twelve months of the balance
sheet date. Deferred tax assets and liabilities are
exclusively classified as non-current, as required by IAS 1
“Presentation of Financial Statements”.
Consolidated statement of cash flow
The consolidated statement of cash flow is presented using
the indirect method.
Consolidated statement of comprehensive income
The consolidated statement of comprehensive income
includes other income or expenses that are not recognized
in profit and loss, as authorized by IFRS.
2.4 BASIS OF CONSOLIDATION
Subsidiaries
Subsidiaries are entities controlled by the Group. The
Group controls an entity when it is exposed to, or has the
right to, variable returns from its involvement with the
entity and has the ability to affect those returns through its
power over the entity. The financial statements of
subsidiaries are included in the consolidated financial
statements from the date that control commences until the
date that control ceases.
The accounting policies of subsidiaries have been changed
when necessary to align them with the policies adopted by
the Group.
Losses applicable to non-controlling interests in a
subsidiary are allocated to the non-controlling interests,
even if doing so causes the non-controlling interests to
have a deficit balance.
In the event of a loss of control, the Group derecognizes
the assets and liabilities of the subsidiary, any non-
controlling interest and the other components of equity
related to the subsidiary.
Any surplus or deficit arising from the loss of control is
recognized in profit and loss. Any interest retained in the
former subsidiary is measured at fair value when control is
lost.
Joint ventures
The Group’s interests in equity-accounted investees
comprise only its interest in the joint venture Laminate
Park GmbH & Co.
A joint venture is an arrangement in which the Group has
joint control, whereby the Group has right to the net assets
of the arrangement, rather than rights to its assets and
obligations for its liabilities. Interests in associates and joint
ventures are accounted for using the equity method. They
are recognized initially at cost, which includes transaction
costs. Subsequent to initial recognition, the consolidated
financial statements include the Group’s share of the profit
or loss and OCI of equity accounted investees, until the
date on which significant influence or joint control ceases.
Transactions eliminated on consolidation
Intra-group balances and transactions, as well as any
unrealized income and expenses arising from intra-group
transactions, are eliminated. Unrealized gains arising from
transactions with equity accounted investees are
eliminated against the investment to the extent of the
Group’s interest in the investee. Unrealized losses are
eliminated in the same way as unrealized gains, but only to
the extent that there is no evidence of impairment.
NOTE 2 - SIGNIFICANT ACCOUNTING PRINCIPLES
10 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
2.5 ACCOUNTING POLICIES
The accounting policies described hereafter have been
applied to all the periods presented in the consolidated
financial statements and have been uniformly applied by all
Group entities acquired prior to December 31, 2014 (see
Note 3.1, Changes in the Scope of Consolidation).
2.5.1 BUSINESS COMBINATIONS
Consideration
Business combinations are accounted for using the
acquisition method on the acquisition date – i.e. when
control is transferred to the Group.
The Group measures goodwill at the acquisition date as:
� the fair value of the consideration transferred; plus
� the recognized amount of any non-controlling
interests in the acquiree; plus
� if the business combination is achieved in stages, the
fair value of the pre-existing equity interest in the
acquiree; less
� the net recognized amount (generally fair value) of the
identifiable assets acquired and liabilities assumed.
When the excess is negative, a bargain purchase gain is
recognized immediately in profit or loss.
The consideration transferred does not include amounts
related to the settlement of pre-existing relationships. Such
amounts are generally recognized in profit or loss.
Transactions costs, other than those associated with the
issuance of debt or equity securities, that the Group incurs
in connection with a business combination are expensed as
incurred.
Any contingent consideration payable is measured at fair
value on the acquisition date. If the contingent
consideration is classified as equity, then it is not re-
measured and settlement is accounted for in equity.
Otherwise, subsequent changes in the fair value of the
contingent consideration are recognized in profit or loss.
If share-based payment awards (replacement awards) are
required to be exchanged for awards held by the acquiree’s
employees (acquiree’s awards) and relate to past services,
then all or a portion of the amount of the acquirer’s
replacement awards is included in measuring the
consideration transferred in the business combination. This
determination is based on the market-based value of the
replacement awards compared with the market-based
value of the acquiree’s awards and the extent to which the
replacement awards relate to past and/or future service.
2.5.2 ACQUISITION OF NCI WITHOUT A CHANGE IN
CONTROL
For each business combination, the Group elects to
measure any non-controlling interests in the acquiree
either:
� at fair value; or
� at their proportionate share of the acquiree’s
identifiable net assets, which are generally at fair
value.
Changes in the Group’s interest in a subsidiary that do not
result in a loss of control are accounted for as transactions
with owners in their capacity as owners. Adjustments to
non-controlling interests are based on a proportionate
amount of the net assets of the subsidiary. No adjustments
are made to goodwill and no gain or loss is recognized in
profit or loss.
2.5.3 PUT OPTIONS
Share put options granted by the Group
The Group may write a put option or enter into a forward
purchase agreement with the non-controlling shareholders
in an existing subsidiary on their equity interests in that
subsidiary. The Group consolidates the entity as though the
non-controlling interests had already been acquired. This
position leads to recognizing a liability for the present value
of the price payable in the event that the non-controlling
interests exercise their option. This liability is discounted
over the option or forward period and any change in its
valuation is accounted for through equity.
2.5.4 FOREIGN CURRENCY TRANSLATION
These financial statements are presented in euros and the
functional currency of Tarkett SA and its subsidiaries
located in the Euro zone is the euro. Group entities operate
on an autonomous basis; therefore, the functional currency
of entities operating outside the euro zone is generally
their local currency, with the exception of the entities
located in the CIS (“Commonwealth of Independent
States”), which use the euro as their functional currency.
Foreign currency transactions
Transactions in foreign currencies are translated into the
respective functional currencies of the Group entities at
the foreign exchange rate as of the date of the transaction.
Foreign exchange rate differences arising on these
transactions are recognized either in operating profit for
operational transactions or in financial result for financing
transactions.
Some items are covered by hedging transactions; the
accounting treatment for those transactions is described in
Note 2.5.19.
Non-monetary items are not revalued as of the closing date
and remain translated using historical exchange rates,
while monetary items are translated using the foreign
exchange rates in effect at the balance sheet date.
Financial statements of foreign operations
On the balance sheet date, assets and liabilities of foreign
operations are translated at the closing rate, and income
and expenses are translated at the average exchange rate
for the period.
Foreign currency differences are recognized in other
comprehensive income (OCI) and presented in the
translation reserve in equity.
When a foreign operation is disposed of, the cumulative
amount in the translation reserve related to that foreign
operation is reclassified to P&L as part of the gain/loss on
disposal classified as financial expenses. When the Group
disposes of only part of its interest in a subsidiary that
includes a foreign operation while retaining control, the
relevant proportion of the cumulative amount is
reattributed to non-controlling interests.
Net investment in foreign operations
When the settlement of a monetary item receivable or
payable to a foreign operation is neither planned nor likely
NOTE 2 - SIGNIFICANT ACCOUNTING PRINCIPLES
Tarkett - Annexes to the Consolidated Financial Statements, December 2014 11
in the foreseeable future, foreign exchange gains and
losses arising from such monetary item are considered to
form part of a net investment in a foreign operation and
are recognized in other comprehensive income (OCI) and
recorded in the translation reserve.
2.5.5 SEGMENT INFORMATION
IFRS 8, "Operating Segments", requires an entity to report
financial and descriptive information about its reportable
segments. Reportable segments are operating segments or
an aggregation of operating segments that do not meet
certain quantitative thresholds.
The chief operating decision maker of the Group within the
meaning of IFRS 8 is the CEO, Michel Giannuzzi.
IFRS 8 defines an operating segment as follows. An
operating segment is a component of an entity:
� that engages in business activities from which it may
earn revenues and incur expenses;
� whose operating results are reviewed regularly by the
entity’s chief operating decision maker to make
decisions about resources to be allocated to the
various segments, as well as to assess its performance;
and
� for which discrete financial information is available.
In addition, IFRS 8 requires the entity to report selected
information by geographical area.
The Group’s activities have been segmented based on its
management structure or divisions and differences in
products reflecting the Tarkett Group’s internal structure.
The Group is organized around four segments:
� Europe, Middle East and Africa (EMEA);
� North America;
� CIS, APAC & LATAM; and
� Sport Surfaces.
For each reportable business segment, separate disclosure
is provided of the related net revenue, gross profit,
adjusted EBITDA, EBITDA, EBIT and capital expenditures.
Grouping of the CIS, APAC & LATAM divisions
The reporting reviewed by the CFO is organized by Division,
of which there are currently five: EMEA, North America,
CIS, Asia Pacific/Latin America (“APAC & LATAM”) and
Sport Surfaces.
The CIS and APAC/LATAM divisions were regrouped in 2013
to form the “CIS, APAC & LATAM” segment for the
following reasons:
� The corresponding markets of these two divisions
have similar economic characteristics (the growth
trends on the concerned markets are similar); and
� The products sold, the production processes, the
typology of the customers and the distribution modes
used in the two zones are similar.
The relatively low weight of the sales and operating profits
of the Asia Pacific/Latin America division (less than 10% of
the net sales and of the adjusted EBITDA reported by the
Group) support the decision that it was unnecessary to
present this division in a separate segment.
2.5.6 REVENUE RECOGNITION
Revenue from the sale of goods is recognized in profit or
loss when the significant risks and rewards of ownership
have been transferred to the buyer.
Revenue from services rendered or from construction
contracts is recognized in profit or loss in proportion to the
stage of completion of the transaction at the balance sheet
date. The stage of completion is assessed by reference to
surveys of work performed. An expected loss on a contract
is recognized immediately in profit or loss.
Net sales comprise revenue from the sale of goods and
services net of rebates, and after elimination of intragroup
sales.
2.5.7 GRANTS
Grants are recognized when there is reasonable assurance
that the Group will comply with the conditions attaching to
them and that the grants will be received. Grants relating
to assets are deducted from the carrying amount of the
property, plant and equipment. The grants are thus
recognized as income over the lives of the assets by way of
a reduced depreciation charge.
Other grants are recognized as income on a systematic
basis over the periods necessary to match them with the
related costs that they are intended to offset.
2.5.8 EXPENSES
Cost of sales
Cost of sales comprises the cost of manufactured products,
the acquisition cost of purchased goods which have been
sold, and the supply chain costs for logistic and freight.
Selling and distribution expenses
Selling and distribution expenses comprise the expenses of
the marketing department and the sales force, as well as
advertising expenses, distribution expenses, sales
commissions and bad debts.
Research and development
Research and development costs are recognized as
expenses when incurred, unless the criteria are met for
them to be capitalized, as per Note 2.5.10.
General and administrative expenses
General and administrative expenses comprise the
remuneration and overhead expenses associated with
management and administrative personnel with the
exception of amounts charged to other cost centers.
Financial income and expense
Financial expense includes bank fees and interest payable
on borrowings accounted for at amortized cost using the
effective interest method.
Other financial income and expense includes the income
and expenses associated with loans and receivables
accounted for at amortized cost, the gains recognized in
respect of investment of cash and cash equivalents,
impairment losses relating to financial assets, and
dividends, which are recorded in net income when the
right to payment vests.
Foreign exchange gains and losses on financial items are
presented net, since those gains and losses are neutralized
by the related impacts of the FX hedging instruments or
NOTE 2 - SIGNIFICANT ACCOUNTING PRINCIPLES
12 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
they are hedged or arise from non-significant individual
transactions, by interpretation of IAS 1, "Presentation of
Financial Statements".
Operating lease payments
Payments made under operating leases are recognized in
profit or loss on a straight-line basis over the term of the
lease. Please refer to Note 2.5.11, Property, plant and
equipment, for more details on lease contract
classification.
Capital lease payments
Minimum lease payments are apportioned between the
finance charge and the reduction of the outstanding
liability. Please refer to Note 2.5.11, Property, plant and
equipment, for more details on lease contract
classification.
2.5.9 INCOME TAXES
Income tax on the profit or loss for the year comprises
current and deferred tax. Income tax is recognized in the
income statement except to the extent that it relates to
items in equity or in other comprehensive income, in which
case it is recognized in those items.
Current tax is the expected tax payable on the taxable
income for the year, using tax rates enacted or
substantially enacted at the balance sheet date, and any
adjustment to tax payable with respect to previous years.
Income tax expense /income are defined in Note 2.5.22,
Deferred taxes.
Income tax is calculated based on the rules applicable in
each country where the Group operates.
The “Cotisation sur la Valeur Ajoutée des Entreprises
(C.V.A.E.)” tax contribution due in France on the basis of
value added as determined based on the statutory
accounts of French entities meets the definition of income
tax under IAS 12, "Income Taxes," and is classified on the
current income tax line. Similar treatment has been
adopted for similar other tax contributions based on a net
of products and costs, even though that amount may differ
from accounting net income.
2.5.10 INTANGIBLE ASSETS
Goodwill
For the measurement of goodwill at initial recognition,
Tarkett applies IFRS 3 Revised (see Note 2.5.1), except for
acquisitions accounted for before December 31, 2009, for
which IFRS 3 (2004) was applied.
Negative goodwill (badwill) is recognized directly in profit
or loss.
Goodwill is allocated to cash-generating units and is not
amortized, but instead is tested at least annually for
impairment on the basis described in Note 2.5.15, or
following any event that could lead to a loss of value.
Subsequently, goodwill is measured at cost less
accumulated impairment losses.
In respect of equity accounted investees, the carrying
amount of goodwill is included in the carrying amount of
the investment and an impairment loss on such investment
is not allocated to any asset, including goodwill that forms
part of the carrying amount of the equity accounted
investee.
Research and development
Expenditure on research and development are expensed as
incurred (IAS 38.5 and IAS 38.11–38.23) except when the
criteria for capitalization of such expenditure are met.
Development expenditure is capitalized if and only if the
expenditure can be measured reliably and if and only if the
Group is able to demonstrate the technical and commercial
feasibility of the product or process, the existence of
probable future economic benefits, and its intention and
the availability of sufficient resources to complete
development and to use or sell the assets. Otherwise, it is
recognized in profit and loss as incurred. Subsequent to
initial recognition, development expenditure is measured
at cost less accumulated amortization and any
accumulated impairment losses.
Patents
Patents obtained by the Group are stated at cost less
accumulated amortization and impairment losses.
Capitalized costs for internally generated patents
principally relate to the costs of legal counsel. Patents
capitalized are amortized on a straight-line basis over the
shorter of the length of the patent or estimated length of
use.
Software
Software is stated at cost less accumulated amortization
and impairment losses. Software is amortized on a straight-
line basis from the date it is available for use.
Depreciation
Other intangible assets are amortized from the date that
they are available for use. The estimated useful lives are as
follows:
� Patents and trademarks: the shorter of the
length of the patent or its length of use
� Development costs: 3 - 62/3
years
� IT Software: 3 to 5 years
2.5.11 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at cost less
accumulated depreciation and impairment losses.
Acquisition cost
Acquisition cost includes purchase cost or production cost
plus the other costs incurred for bringing the items to their
operating location and condition. The cost of a self-
constructed asset includes the costs of raw materials and
direct labor, the initially estimated cost of any obligation
for dismantling, removing and restoring the site on which
the asset is located, and an appropriate allocation for
directly attributable production overhead.
Borrowing costs attributable to the acquisition of items of
property, plant and equipment that meet the definition of
qualifying asset under IAS 23 are capitalized.
If the acquisition is made in foreign currency, the exchange
rate difference that may later appear has no effect on the
initial capitalization estimate.
When an item of property, plant and equipment includes
material components with different useful lives, each
major component is accounted for separately.
NOTE 2 - SIGNIFICANT ACCOUNTING PRINCIPLES
Tarkett - Annexes to the Consolidated Financial Statements, December 2014 13
Subsequent costs
Replacements and improvements are capitalized, while
general repairs, day to day servicing and maintenance are
charged to expenses as incurred.
Depreciation
Assets are depreciated and charged to profit or loss over
their expected useful lives using the straight-line method.
The estimated useful lives are as follows:
� Buildings: 20 - 30 years
� Industrial plant and equipment: 62/3
- 10 years
� Printing cylinders: 2 years
� Other equipment and supplies: 3 - 5 years
Depreciation methods, useful lives and residual values are
reviewed and adjusted if appropriate.
Finance and operating leases
At inception of an arrangement, the Group determines
whether the arrangement is or contains a lease.
At inception or on reassessment of an arrangement that
contains a lease, the Group separates payments and other
consideration required by the arrangement into those for
the lease and those for other elements on the basis of their
relative fair values.
Leases in terms of which the Group assumes substantially
all of the risks and rewards of ownership are classified as
finance leases.
Assets acquired under finance leases are recognized as
items of property, plant and equipment at an amount
equal to the lower of their fair value and the present value
of the minimum lease payments at inception of the lease.
Lease payments are apportioned between the finance
charge and the reduction of the outstanding liability. The
finance charge is allocated to each period during the lease
term so as to produce a constant periodic rate of interest
on the remaining balance of the liability.
The bases of depreciation and subsequent measurement of
the related assets are similar to those applying to other
tangible fixed assets, except in the case where the lease
period is shorter than the asset’s estimated useful life and
it is not reasonably certain that transfer of title will take
place at the end of the lease.
Leases for which a significant portion of the risks and
rewards incidental to ownership of the leased assets
remains with the lessor are classified as operating leases,
with lease payments recognized as an expense on a
straight-line basis over the lease term.
2.5.12 NON-CURRENT ASSETS HELD FOR SALE
Non-current assets, or disposal groups comprising assets
and liabilities, are classified as held for sale if it is highly
probable that they will be recovered primarily through sale
rather than through continuing use.
Immediately before classification as held for sale, the
carrying amounts of assets (and groups of related assets
and liabilities) are revised in accordance with the applicable
standards. Then, on initial classification as held for sale,
non-current assets and disposal groups are recognized at
the lower of their carrying amount and fair value less costs
to sell.
Impairment losses on initial classification as held for sale
are included in profit or loss.
Following classification as held for sale, tangible and
intangible assets cease to be depreciated or amortized, and
equity investments cease to be accounted for by the equity
method.
A discontinued operation is a component of a Group’s
business that represents a separate major business line or
geographical area of operations or is a subsidiary acquired
exclusively with a view to resale. Classification as a
discontinued operation occurs upon disposal or when the
operation meets the criteria to be classified as held for
sale, if earlier.
2.5.13 ACCOUNTS RECEIVABLE
Accounts receivable are stated at their invoiced value
converted at the closing rate, less any allowance for
doubtful accounts.
The allowance for doubtful accounts is based on
management’s assessment of the recoverability of specific
customer accounts and the aging of the accounts
receivable.
Provision for doubtful receivables
Provisions for doubtful receivables are constituted as
follows:
� Bad debts identified and provisioned at 100%;
� A statistical provision, based on the age of the
outstanding receivables, defined as follows:
Overdue receivables Impairment (as a percentage
of the gross amount)
From 61 to 180 days 25%
From 181 to 270 days 50%
From 271 to 360 days 75%
More than 360 days 100%
� An additional provision on a case-by-case basis based
on an application of professional judgment.
2.5.14 INVENTORIES
Inventories are stated on a FIFO (first in, first out) basis, at
the lower of manufacturing/acquisition cost and net
realizable value. Manufacturing costs of self-produced
inventories comprise all direct costs and a proportionate
share of production overhead and depreciation of
production facilities based on normal operating capacity.
Net realizable value is the estimated selling price in the
ordinary course of business, less estimated costs of
completion and selling expenses.
Inventories can be categorized as raw materials,
consumables, semi-finished goods and work in progress,
and finished goods.
2.5.15 IMPAIRMENT
a) Non-financial assets
Annual impairment testing
Goodwill and other intangible assets with indefinite useful
lives are systematically tested for impairment once a year.
NOTE 2 - SIGNIFICANT ACCOUNTING PRINCIPLES
14 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
The carrying amounts of the Group’s assets, other than
financial and deferred tax assets and liabilities, are
reviewed to determine whether there is any indication of
impairment. If any such indication exists, the asset’s
recoverable amount is estimated.
The recoverable amount of assets is the greater of their fair
value less costs of disposal and value in use.
Value in use is calculated by discounting estimated future
cash flows for each cash-generating unit, excluding
borrowing costs and tax.
Cash-generating units
In carrying out impairment testing, assets are tested at the
level of cash-generating units ("CGU") that reflect the
segment organization of the Group and its products
offerings. Goodwill has been allocated to the CGUs.
Due to recent acquisitions that have affected the allocation
of the Group’s activities as well as changes in the
organization of its divisions, the Group reviewed its CGUs in
2014 and decreased their number from 15 in 2013 to 12 in
2014.
The main changes are the following:
� Creation of the APAC and LATAM CGUs after their
sales organizations were made autonomous and after
production was localized in China and Brazil;
� Creation of the EMEA – Carpet CGU following
acquisition of the Desso Group as of December 31,
2014;
� Merger of the EMEA – Homogeneous
/Linoleum/Resilient and Other CGUs into an EMEA –
Resilient and Other CGU because they generate
interdependent cash inflows;
� Merger of the CIS – Wood/Resilient and Laminate
CGUs into one CIS CGU because they generate
interdependent cash inflows;
� Merger of the Centiva and Tandus CGUs into a single
North America – Tandus and Centiva CGU because
they generate interdependent cash inflows.
Impairment testing would have given the same results for
the 2013 CGUs, namely no loss in value to record in 2014
(see Note 10).
Impairment process
The Group analyzes future cash flows over a period of
three years based on the most recent forecasts,
corresponding to the best estimate of a full business cycle.
The forecasts are established taking into account cyclical
variations affecting selling prices, volumes and raw
material costs. Beyond three years, the Group determines
a standard year calculated by extending the third year on
the assumption of a stable revenue and margin, a need for
working capital and investments determined on normative
renewal based on historical observations. This standard
year is then projected to infinity according to the Gordon-
Shapiro method.
Future cash flows are discounted to present value at a
weighted average cost of capital (WACC) discount rate that
reflects current market assessments of the time value of
money and the risks specific to each financing means. In
2014 this rate was adjusted, where necessary, to reflect
country risk varying by geographic area.
In 2014, the discount rate is an after-tax rate applied to
after-tax cash flows. The use of this rate gives recoverable
values that are identical to those that would be obtained
using a pre-tax rate applied to pre-tax cash flows.
The assumptions used for 2014 are as follows:
After-tax
discount rate
Perpetual
growth rate
EMEA 9.0% 2%
North America 9.0% 3%
CIS 11.6% 4%
APAC 10.0% 4%
LATAM 11.2% 4%
Sports 9.0% 3%
Tarkett takes into account the risks and performance
specific to each activity through the following:
� Changes in revenue and operating profit (EBITDA)
considered for the next 3 years, by specific
segment/product, testing for impairment by CGU, and
defined by the Group as part of its strategic plan;
� Working capital needs (including inventory) defined
based on known history of the different segments and
assumptions of change in revenue by CGU;
� Renewal investments, in line with recent historical
investments by CGU and taking into consideration
specific projects requiring more significant investment
in the coming years or, conversely, a potential
slowdown in investment in certain CGUs, especially as
in certain CGUs existing investments are approaching
maturity.
Operating assumptions
For each CGU (or group of CGUs) operational assumptions
that were considered key by the Group are as follows:
� Evolution of the markets in which these CGUs are
present on the basis of internal estimates, supported
where possible by external forecasts on the concerned
segments or products;
� Evolution of the Group in its various markets;
� General hypothesis of stability of inflation balance
(purchase prices stable, or if changes are considered,
full offset by changes in selling prices to balance the
impact on value);
� Continual implementation of productivity plans for
factories working on these CGUs to improve
profitability; and
� EBITDA margin, resulting from the combination of the
factors discussed above.
Change in the discount rate and growth rate
Sensitivity analysis with variations in key assumptions was
performed based on three assumptions:
� The discount rate (WACC);
� The perpetual growth rate; and
� The EBITDA margin.
Changes of 50 basis points in the discount rate and growth
rate are reasonably possible variations for the Group (see
Note 10). Tarkett operates in a large number of countries,
NOTE 2 - SIGNIFICANT ACCOUNTING PRINCIPLES
Tarkett - Annexes to the Consolidated Financial Statements, December 2014 15
with a balance between three main areas (EMEA, North
America and CIS, APAC & LATAM). The Group believes that
economic developments in these geographic areas can
offset each other, as has been demonstrated in the past.
In 2014, the combination of a 50 point increase in the
discount rate and a 50 point decrease in the perpetual
growth rate would not lead to recording any impairment
losses.
In addition, a decrease of 100 points in the EBITDA margin,
a key assumption for the Group, would lead to recording
losses in the amount of €(4.9) million for the EMEA – Wood
CGU and of €(6.9) million for the North America –
Residential CGU.
Impairment losses
An impairment loss is recognized whenever the carrying
amount of a cash-generating unit exceeds its recoverable
amount. Impairment losses are recognized in profit or loss.
Impairment losses recognized in respect of cash-generating
units are allocated first to reduce the carrying amount of
any goodwill allocated to the cash-generating unit and then
to reduce the carrying amount of the other assets in the
unit on a pro rata basis.
An impairment loss in respect of goodwill cannot be
reversed. In respect of other assets, an impairment loss is
reversed if there has been a change in the estimates used
to determine the recoverable amount.
b) Non-derivative financial assets
A financial asset not carried at fair value through profit or
loss is assessed at each reporting date to determine
whether there is objective evidence that it is impaired.
For financial assets available for sale, a significant or
prolonged decline in its fair value below its costs leads to
an impairment loss on the income statement. Impairment
loss on an available-for-sale financial asset is measured as
the difference between its carrying amount and its fair
value, less any impairment loss previously recognized and
recorded in profit or loss.
An impairment loss in respect of a financial asset
measured at amortized cost is calculated as the difference
between its carrying amount and the present value of the
estimated future cash flows discounted at the asset’s
original effective interest rate.
2.5.16 SHARE CAPITAL
Ordinary shares are classified as equity. Incremental costs
directly attributable to the issue of ordinary shares and
share options are recognized as a deduction from equity,
net of any tax effects. When share capital recognized as
equity is repurchased, the amount of consideration paid,
which includes directly attributable costs, is net of any tax
effects, and is recognized as a deduction from equity
classified as own shares. When own shares are sold or
reissued subsequently, the amount received is recognized
as an increase in equity, and the resulting surplus or deficit
on the transaction is transferred to/from retained earnings.
2.5.17 SHARE-BASED PAYMENT TRANSACTIONS
The Group regularly implements share grant plans. The
grant-date fair value of equity-settled share-based
payment awards granted to employees is generally
recognized as an expense, with a corresponding increase in
equity, over the vesting period of the shares awarded. At
the end of each fiscal year, the amount recognized as an
expense is adjusted to reflect the number of shares
awarded for which the related service and non-market
performance conditions are expected to be met, such that
the amount ultimately recognized is based on the number
of shares awarded that meet the related service and non-
market performance conditions at the vesting date. For
share-based payment awards with non-vesting conditions,
the grant-date fair value of the share-based payment
would be measured to reflect such conditions, and there is
no true-up for differences between expected and actual
outcomes.
Share-based payment programs include both programs
allowing Group employees to acquire shares of the
Company under specific conditions and programs awarding
free shares to Group employees. The current existing
programs are described in Note 24.
2.5.18 EMPLOYEE BENEFITS
Within the Tarkett Group, there are various systems for
providing for retirement benefits depending on the legal,
economic and tax environment of each country. In
accordance with the laws and practices of each country,
the Group participates in pension, welfare, health and
retirement benefit plans whose benefits are dependent on
various factors such as length of service, salary and the
contributions paid to institutions.
Defined contribution plans
Defined contribution plans are post-employment benefit
plans under which the Group pays fixed contributions and
will have no legal or constructive obligation to pay further
contributions if the fund does not hold sufficient assets to
pay all employee benefits relating to employee service in
the current and prior periods.
These contributions, based on services rendered by
employees, are recognized as an expense in profit or loss as
incurred.
Defined benefit plans
Defined benefit plans are post-employment benefit plans
under which the Group assumes the obligation of providing
employees with future benefits and thus also assumes the
related actuarial and investment risks. The defined benefit
liability is calculated using the projected unit credit method
and is discounted to its present value from which the
amount of past service cost for the period may also be
deduced.
The detailed actuarial calculation requires the use of
actuarial hypotheses for demographic variables (such as
mortality and employee turnover) and economic variables
(such as future increases in salaries and medical costs, as
well as the discount rate).
When defined benefit plans are totally or partially funded
by contributions paid to a separate fund or insurance
company, those entities’ assets are measured at their fair
value and their amount is deducted from the obligation to
define net liability disclosed in the Group’s balance sheet.
The Group’s obligation in respect of such arrangements is
calculated by independent actuaries, in accordance with
IAS 19, "Employee Benefits".
NOTE 2 - SIGNIFICANT ACCOUNTING PRINCIPLES
16 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
Following adoption of the revised IAS 19, the Group
changed its accounting methods with respect to the bases
used to calculate the income or expense relating to post-
employment defined benefit plans.
Under IAS 19R, the Group now determines the net interest
expense (income) on the net defined benefit liability (asset)
for the period by applying the discount rate used to
measure the defined benefit obligation at the beginning of
the annual period to the net defined benefit liability (asset)
at the beginning of the annual period. It takes into account
any changes in the net defined benefit liability (asset)
during the period as a result of contributions and benefit
payments. As a result, the net interest on the net defined
benefit liability (asset) comprises: interest cost on the
defined benefit obligation, interest income on plan assets,
and interest on the effect of asset ceiling.
Actuarial gains and losses
Actuarial gains and losses on defined benefit liabilities and
plan assets comprise both the effects of changes in
actuarial assumptions and the effects of differences
between the previous actuarial assumptions and what has
actually occurred.
Actuarial gains and losses for retirement benefit plans are
immediately recognized in other comprehensive income
(and are never recycled in profit and loss).
Past service cost
When changes occur to a defined benefit plan, past service
cost for the changed benefit liability is recognized as an
expense immediately in profit and loss.
Curtailment and liquidation
The effects of any liquidation of plans or reduction of
benefits are recognized in profit or loss at the date of
liquidation or reduction.
2.5.19 FINANCIAL INSTRUMENTS
The Group has applied IFRS 7, "Financial Instruments:
Disclosures" and IFRS 13, "Fair Value Measurement", which
define the disclosure to be made in respect of financial
assets and liabilities.
Financial transactions are recorded based on the effective
date of payment.
Non-derivative financial assets
Financial assets are initially recognized at their fair value
plus any applicable transaction costs, except for financial
assets at fair value through profit or loss, for which
transactions costs are recognized in profit or loss as
incurred.
At the date of acquisition the Group classifies its financial
assets in one of the four categories provided for by IAS 39,
"Financial Instruments: Recognition and Measurement".
The classification determines the basis of measurement of
each financial asset at the subsequent balance sheet dates,
whether at amortized cost or at fair value.
Held-to-maturity investments are exclusively securities
with fixed or determinable payments (other than items
defined as loans and receivables) acquired with the
intention of holding them to maturity. They are accounted
for at amortized cost using the effective interest method.
The net income recognized in respect of such assets
comprises the aggregate of interest receivable and any
impairment losses.
Loans and receivables are non-derivative financial assets
with fixed or determinable payments that are not quoted
in an active market. Subsequent to initial recognition, they
are accounted for at amortized cost, using the effective
interest method, less any impairment losses reflecting the
risk of non-recovery. The category includes trade and other
loans and receivables. The net income recognized in
respect of such assets comprises the aggregate of interest
receivable and any impairment losses.
Available for sale financial assets are measured at fair
value, and the gains or losses resulting from that valuation
are recognized in reserves in equity until sale. In the event
of a significant or lasting decrease in value, the
accumulated loss is recorded in the Group’s results (see
Note 2.5.15).
The category mainly comprises non-consolidated long-term
investments, which are measured in the balance sheet at
their acquisition cost assuming the absence of an active
market for the securities held. The net income recognized
in respect of such assets comprises the aggregate of
dividends receivable, any impairment losses and the gains
or losses arising on disposal.
Financial assets and liabilities at fair value through profit or
loss include both items held for trading, i.e. that the Group
has from the outset the intention to sell in the near future
(including derivatives not qualified as hedging
instruments), and assets specifically designated as at fair
value through profit or loss. These assets are adjusted to
their fair value at each balance sheet date and the resulting
gains and losses are recognized in profit or loss.
This category includes cash and cash equivalents. The net
income recognized in respect of such assets comprises the
aggregate of interest receivable, changes in fair value and
the gains or losses arising on disposal.
Cash and cash equivalents comprise cash at bank and on
hand, term deposits and other monetary investments with
initial maturities not exceeding three months and subject
to an insignificant risk of changes in value. The Group has
opted to classify cash equivalents as assets measured at
fair value through profit or loss.
For purposes of cash flows statement presentation, cash
and cash equivalents are defined on the same basis as in
the balance sheet.
Non-derivative financial liabilities
Financial liabilities comprise financial debt and trade and
other operating payables.
With the exception of items classified as financial liabilities
at fair value through profit or loss, loans payable and other
financial liabilities are initially recognized at their fair value
less any applicable transaction costs. They are
subsequently measured at amortized cost using the
effective interest rate method.
Given their short maturities, trade and other operating
payables are measured at historical cost since use of the
amortized cost basis would produce very similar results.
NOTE 2 - SIGNIFICANT ACCOUNTING PRINCIPLES
Tarkett - Annexes to the Consolidated Financial Statements, December 2014 17
Derivative instruments
The Group uses derivative financial instruments to hedge
its exposure to the foreign currency risk and interest rate
risk associated with its purchases and sales denominated in
foreign currencies and with its financing and investment
transactions.
The derivatives employed comprise in particular interest
rate swaps and options, other forward contracts and
foreign currency options.
In accordance with its policy in respect of financial
instruments, the Group neither uses nor issues derivative
financial instruments for trading purposes, but derivatives
that do not meet the criteria qualifying them for hedge
accounting are nevertheless accounted for similarly to
speculative instruments.
Derivatives are recognized in the balance sheet at their fair
value (whether positive or negative), with changes in fair
value immediately recognized in profit or loss.
Derivative instruments that qualify for hedge accounting
and meet the applicable effectiveness tests are classified
either as fair value hedges (when their purpose is to hedge
an existing asset or liability’s exposure to the risk of
changes in its fair value) or cash flow hedges (when their
purpose is to hedge the exposure to changes in the cash
flows associated with highly probable future transactions).
Changes in the fair value of fair value hedges of exposure
to foreign currency and interest rate risk are recognized as
part of financial income or expense. The hedged assets and
liabilities are also adjusted to their fair value and the
changes in fair value attributable to the hedged risk(s) are
equally recognized as part of financial income or expense.
Changes in the fair value of cash flow hedges of exposure
to foreign currency and interest rate risk are recognized
within other comprehensive income with the exception of
any ineffective portion of changes in fair value which is
recognized in financial income or expense.
If a derivative instrument ceases to meet the criteria for
hedge accounting, the cumulative amount recognized in
other comprehensive income at that date remains in other
comprehensive income until the date of occurrence of the
transaction initially hedged, but if the transaction is no
longer expected to occur then the amount is immediately
transferred in full to profit or loss.
Derivative instruments that cease to meet the criteria for
hedge accounting are reclassified as held for trading and
changes in their fair value are recognized as part of
financial income or expense.
Finally, the effective portion of the foreign exchange gain
or loss associated with hedges of net investments in
foreign operations is recognized directly in other
comprehensive income; the ineffective portion is
recognized immediately in profit or loss.
Fair value method
When measuring the fair value of an asset or a liability, the
Group uses market observable data to the extent possible.
Fair values are categorized into different levels in a fair
value hierarchy based on the inputs used in the valuation
techniques as follows:
� Level 1: quoted prices (unadjusted) on active markets
for identical assets or liabilities.
� Level 2: inputs other than quoted prices included in
Level 1 that are observable for the asset or the
liability, either directly (i.e., prices) or indirectly (i.e.,
derived from prices).
� Level 3: inputs relating to the asset or liability that are
not based on observable market data (unobservable
inputs).
However, if the fair value of an equity instrument cannot
be reasonably estimated, it is measured at cost.
The fair value of all the Group’s financial assets and
liabilities is determined as at the balance sheet date either
for inclusion in the balance sheet or for disclosure in the
notes to the consolidated financial statements.
The fair value of interest rate swaps and of interest rate
and foreign currency options is the estimated amount that
the Group would expect to receive or have to pay in order
to cancel each derivative instrument at the balance sheet
date, taking into account the current level of interest rates
and the credit risk associated with the counterparties to
these instruments. The fair value of forward exchange
contracts is determined based on their market value at the
balance sheet date, i.e. the present value of their quoted
forward prices.
The derivative financial instruments (swaps, caps, floors
etc.) entered into by the Group are entered into by private
arrangement and are thus not subject to quoted prices.
They are therefore measured using the valuation models
commonly employed by operators in the market and in
particular:
� Interest rate swaps are measured on the basis of the
present value of the contractual future cash flows;
� Options are measured using Black and Scholes type
valuation models based on published market
quotations and/or on quotations provided by third
party financial institutions;
� Other foreign currency and interest rate derivative
instruments are measured on the basis of the present
value of the associated interest rate differentials.
Derivative instruments are entered into exclusively with
leading banks or other financial institutions, and with the
sole purpose of providing security for the Company’s
current operations and for the financing thereof.
The fair value of non-quoted borrowings is calculated on
the basis of the present value of the contractual cash flows
discounted at the market rate of interest, including the
applicable risk premium.
In the case of receivables and payables with maturities of
less than a year and certain floating rate receivables and
payables, historical cost is considered a reasonable
approximation of their fair value given the limited credit
periods granted and received within the Group.
2.5.20 PROVISIONS
Provisions and non-current liabilities comprise liabilities for
which the amount or the timing is uncertain. They arise
from environmental risks, legal and tax risks, litigation and
other risks.
NOTE 2 - SIGNIFICANT ACCOUNTING PRINCIPLES
18 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
A provision is recognized when the Group has a present
legal or constructive obligation as a result of a past event,
and it is probable that an outflow of economic benefits will
be required to settle the obligation. If the effect is material,
provisions are determined by discounting the expected
future cash flows.
The amount recognized as a provision is the best estimate
of the expenditure required to settle the present obligation
at the balance sheet date. Provisions are reversed when
they are no longer required.
A provision for warranties is recognized when the
underlying products are sold. The provision is based on
historical warranty data and a weighting of all possible
outcomes against their associated probabilities.
A provision for restructuring is recognized when the Group
has approved a detailed and formal restructuring plan, and
the restructuring either has commenced or has been
announced. Future operating losses are not provisioned.
2.5.21 TRADE PAYABLES
Trade payables are stated at their repayment amounts.
Payables due more than a year in the future are discounted
to net present value.
Payables of uncertain timing or amount are shown as
accrued charges.
2.5.22 DEFERRED TAXES
Deferred tax is calculated using the balance sheet liability
method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation
purposes. The amount of deferred tax provided is based on
the expected manner of realization or settlement of the
carrying amount of assets and liabilities, using tax rates
enacted or substantially enacted at the balance sheet date.
The following temporary differences are not provided for:
� Goodwill not deducted for tax purposes;
� The initial recognition of assets or liabilities, other
than in the context of transactions involving business
combinations that affect neither accounting nor
taxable profit;
� Differences relating to investments in subsidiaries to
the extent that they will probably not reverse in the
foreseeable future.
A deferred income tax asset is recognized only to the
extent that it is probable that there will be future taxable
profits over the next five years against which this asset can
be utilized. Deferred income tax assets are reduced to the
extent that it is no longer likely that a sufficient taxable
benefit will support the asset recovery.
In accordance with IAS 12, where an entity's tax return is
prepared in a currency other than its functional currency,
changes in the exchange rate between the two currencies
generate temporary differences with respect to the
valuation of non-monetary assets and liabilities. As a result,
deferred tax is recognized in profit or loss.
In 2014, due to the devaluation of the Russian ruble and
the Ukranian hryvnia, the Group began applying IAS 12.41.
The effect of this application in 2014 on the financial
statements is a deferred tax liability of €21.7 million (€10.1
million as of December 31, 2013), of which €(11.6) million
is applied against 2014 profit or loss, €(1.4) million is
applied against 2013 profit or loss (see Note 8, “Income Tax
Expense”) and €(8.7) million against 2013 retained
earnings. The comparative periods have been retroactively
restated in accordance with IAS 8, “Accounting Policies,
Changes in Accounting Estimates and Errors”.
2.5.23 NET DEBT
Net debt is defined as the sum of interest bearing loans,
borrowings and bank overdrafts, minus cash and cash
equivalents.
Interest-bearing loans and borrowings refer to any
obligation for the repayment of funds received or raised
that are subject to repayment terms and interest charges.
They also include liabilities on finance lease.
NOTE 3 - SCOPE OF CONSOLIDATION
Tarkett - Annexes to the Consolidated Financial Statements, December 2014 19
NOTE 3 - SCOPE OF CONSOLIDATION
The Tarkett Group’s scope of consolidation is as follows (see Note 30 for a list of principal consolidated entities).
Number of companies Dec. 31,
2013 Acquisition Creation Merger
Dec. 31,
2014
Fully consolidated companies 70 26 3 (4) 95
Equity-accounted companies 1 - - - 1
TOTAL 71 26 3 (4) 96
3.1 CHANGES IN THE SCOPE OF CONSOLIDATION
Acquisitions
On April 30, 2014, the Group acquired the Polish company
Gamrat Flooring in order to reinforce its business on the
vinyl flooring market in Central Europe in growing, high
value-added market segments such as health and
education. Gamrat Flooring entered the Group as a new
legal entity, Tarkett Jaslo Sp.z.o.o, and has been fully
consolidated and 100% owned since its acquisition by
Tarkett.
On October 24, 2014, the Group acquired the Renner
company, a leading manufacturer of athletic tracks and
tennis courts located in the Rocky Mountain region of the
United States. This acquisition enables the group to enrich
its product offerings in the Sport Surfaces segment and to
expand its geographical footprint, thus reinforcing its
leadership position in North America.
On December 31, 2014, the Group acquired the Desso
group, a leader in commercial carpeting and athletic fields
in Europe, in order to reinforce its presence in the EMEA
zone. This acquisition, along with the Group's acquisition of
the Tandus group in North America in 2012, enables the
Group to offer commercial carpeting solutions throughout
the world. This group comprises 24 companies.
These three acquisitions have been fully consolidated since
the date on which Tarkett acquired control.
Creations
Tarkett Belux was formed in January 2014.
In April 2014, the Group created Tarkett Industrial (Beijing)
Co, Ltd., and through that company acquired a vinyl
flooring production plant located near Beijing.
Tarkett Flooring Mexico S. de R.L. de C.V. was created in
September 2014.
Mergers
In February 2014, Caf Extrusion Llc was merged into Tandus
Centiva Inc.
In February 2014, Johnsonite Inc. was merged into Tarkett
USA Inc.
In March 2014, Tarkett IFA Inc. was merged into Tarkett
Enterprises Inc.
In September 2014, Tarkett Asia Pacific Ltd. was merged
into Tarkett Floor Covering Co. Ltd.
3.2 PURCHASE ACCOUNTING
3.2.1 PURCHASE ACCOUNTING OF THE GAMRAT FLOORING
ACQUISITION
On April 30, 2014, Tarkett acquired Gamrat Flooring, which
was then renamed Tarkett Jaslo Sp.z.o.o.
Payment for the acquisition of Gamrat Flooring totaled
€22.1 million (PLN 92.4 million).
Acquisition costs, reported in general and administrative
expenses, amounted to €0.1 million.
The acquisition impact on the consolidated cash flow
statement is presented in the line item "Acquisitions of
subsidiaries net of cash acquired" for an amount of €(20.7)
million.
Consideration paid (22.1)
Cash and cash equivalents acquired 1.4
Acquisition of subsidiaries net of cash acquired (20.7)
This combination was accounted for on a provisional basis
in accordance with the revised IFRS 3, and may be revised
within the 12-months limit provided for by IFRS 3 (revised).
In 2014, Tarkett identified and valued the tangible fixed
assets acquired, such as machines and equipment.
As of December 31, 2014, goodwill from the Gamrat
company was calculated at €(9.2) million.
Consideration paid (22.1)
Net assets acquired 13.0
Fair value for net assets identified (0.1)
Total goodwill recognized (9.2)
This goodwill is explained primarily by the following:
� Gamrat's industrial presence and expertise in Poland;
� Gamrat Flooring's excellent service and recognized
offerings on its markets;
� The reinforcement of Tarkett's leadership in the
production and marketing of high-performance vinyl
floor coverings in Central Europe; and
� Gamrat Flooring's current market share.
The main fair value adjustments relate to the following:
� Employee-related expenses;
� Calculation of depreciation on finished products and
customer receivables in accordance with Tarkett's
internal rules; and
NOTE 3 - SCOPE OF CONSOLIDATION
20 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
� The deferred tax assets and liabilities resulting from
these adjustments.
3.2.2 PURCHASE ACCOUNTING OF RENNER ACQUISITION
On November 1, 2014, Tarkett acquired Renner Sport
Surfaces. Based in the United States, Renner specializes in
athletic tracks and tennis courts. This acquisition enables
the group to enrich its product offerings and to expand its
geographical footprint, thus reinforcing its leadership
position in North America.
Payment for the acquisition of Renner Sport Surfaces
totaled €4.7 million (USD 5.9 million).
The acquisition impact on the consolidated cash flow
statement is presented in the line item "Acquisitions of
subsidiaries net of cash acquired" for an amount of €(4.6)
million.
Consideration paid (4.7)
Cash and cash equivalents acquired 0.1
Acquisition of subsidiaries net of cash acquired (4.6)
This combination was accounted for on a provisional basis
in accordance with the revised IFRS 3, and may be revised
within the 12-months limit provided for by IFRS3 (revised).
In particular, in 2015 Tarkett must identify and value the
assets acquired and liabilities assumed or incurred.
As of December 31, 2014, goodwill from the Renner Sport
Surfaces entity was calculated at €(3.5) million.
Consideration paid (4.7)
Net assets acquired 1.5
Price adjustment (0.3)
Total goodwill recognized (3.5)
This goodwill is explained primarily by the following:
� Renner Sport Surfaces' expertise in tennis courts and
PTC technology;
� Renner Sport Surfaces' excellent service and
recognized offerings;
� The reinforcement of Tarkett's competitive advantage
through its ability to offer complete sports facility
solutions;
� Renner Sport Surfaces' current market share.
3.2.3 PURCHASE ACCOUNTING OF DESSO ACQUISITION
On December 31, 2014, Tarkett acquired the Desso group,
a leader in the commercial carpeting and athletic field
market in Europe, in order to enlarge its product portfolio
by adding the high value-added carpet category for its
European customers. This transaction enables the Tarkett
Group to reinforce its presence in the EMEA zone as well as
to offer commercial carpeting solutions to all of its clients
throughout the world.
Through its high-quality carpeting solutions and its
innovative capacity, the Desso group primarily serves the
commercial market (offices, education, hospitality, sea and
air transport) and is also present on the residential market
in Europe. On the Sport Surfaces market, the group also
sells artificial turf as well as a unique semi-natural
reinforced lawn system, GrassMaster®.
Based in the Netherlands, the Desso group had revenue of
€208 million in 2014, has approximately 820 employees
and has three production plants in Europe.
The Desso group comprises 24 legal entities, including two
production entities located in Belgium and the Netherlands
and distribution entities located primarily in Europe.
Consideration paid totaled €154.3 million and includes
repayment of the Desso group's debt in the amount of
€52.4 million.
Acquisition costs, reported in "General and administrative
expenses," amounted to €0.5 million.
The acquisition impact on the consolidated cash flow
statement is presented in the line item "Acquisitions of
subsidiaries net of cash acquired", broken down as follows:
Consideration paid (154.3)
Cash and cash equivalents acquired 4.1
Acquisition of subsidiaries net of cash acquired (150.2)
This combination was accounted for on a provisional basis
in accordance with the revised IFRS 3, and may be revised
within the 12-months limit provided for by IFRS 3 (revised).
In particular, in 2015 Tarkett must identify and value the
assets acquired and liabilities assumed or incurred.
As of December 31, 2014, goodwill from the Desso group
was calculated at €(60.0) million.
Consideration paid (154.3)
Repayment of Desso debt 52.4
Purchase and sale of assets 10.8
Net assets acquired 31.0
Total goodwill recognized (60.0)
This goodwill is explained primarily by the following:
� Specific technology and know-how;
� Expected commercial synergies from the cross-
marketing of Desso and Tarkett products;
� Market share already acquired by the Desso group.
NOTE 3 - SCOPE OF CONSOLIDATION
Tarkett - Annexes to the Consolidated Financial Statements, December 2014 21
3.3 JOINTLY CONTROLLED ENTITIES
Laminate Park GmbH & Co KG, a company jointly held with the Sonae Group in Germany, is the Group's only remaining jointly
controlled entity.
Laminate Park GmbH & Co KG is a company that produces laminate and board for the EMEA market.
The following tables summarize the information relating to this joint venture (figures are presented at 50%):
Statement of financial condition
Dec. 31, 2014 Dec. 31, 2013
% of equity held 50% 50%
ASSETS
Intangible assets 0.2 0.1
Property, plant and equipment 0.5 0.7
Deferred tax assets 0.3 0.3
Non-current assets 1.0 1.2
Inventories 4.1 5.5
Trade receivables 1.7 2.2
Other receivables 0.4 0.2
Cash and cash equivalents 0.3 0.2
Current assets 6.6 8.0
TOTAL ASSETS 7.6 9.2
EQUITY AND LIABILITIES
Share capital - -
Share premium and reserves - -
Retained earnings (11.3) (13.0)
Net result for the period (1.6) 1.6
Equity attributable to equity holders of the parent (13.0) (11.3)
Non-controlling interests - -
Total equity (13.0) (11.3)
Interest-bearing loans and borrowings 14.2 14.2
Non-current liabilities 14.2 14.2
Trade payables 2.2 2.6
Other liabilities 0.6 0.5
Interest-bearing loans and borrowings 3.5 3.1
Other financial liabilities 0.1 0.1
Current liabilities 6.3 6.3
TOTAL LIABILITIES 7.6 9.2
NOTE 3 - SCOPE OF CONSOLIDATION
22 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
Income statement
Dec. 31, 2014 Dec. 31, 2013
% of equity held 50% 50%
Net revenue 22.7 22.7
Cost of sales (22.0) (21.4)
Gross profit 0.8 1.4
Other operating income 0.2 1.1
Selling and distribution expenses (0.5) (0.2)
Research and development - -
General and administrative expenses (0.5) (0.5)
Other operating expenses (0.9) (2.2)
Result from operating activities (1.0) (0.4)
Financial income - 3.7
Financial expenses (0.7) (1.4)
Financial income and expense (0.7) 2.3
Share of profit of equity accounted investees (net of income tax) - -
Profit before income tax (1.6) 1.9
Income tax expense - (0.3)
Profit (1.6) 1.6
NOTE 4 - ADJUSTED EBITDA
Tarkett - Annexes to the Consolidated Financial Statements, December 2014 23
NOTE 4 - ADJUSTED EBITDA
Adjusted EBITDA is a key indicator permitting the Group
to measure its operating and recurring performance.
It is calculated by taking operating income before
depreciation and amortization and removing the following
revenues and expenses:
� restructuring costs to improve the future profitability
of the Group;
� gains or losses on disposals of significant assets;
� impairment and reversal of impairment based on
Group impairment testing only;
� costs related to business combinations and legal
reorganizations, including legal fees, transactions
costs and consulting fees;
� expenses related to share-based payments due to
their non-cash nature.
The Group’s adjusted EBITDA breaks down as follows:
Of which adjustments:
Dec. 31,
2014 Restructuring
Impairment and
Customer's list
amortization
Business
combinations
Share-based
payments Other
Dec. 31,
2014
adjusted
Net revenue 2,414.4 - - - - - 2,414.4
Cost of sales (1,842.8) (26.1) - - - - (1,816.7)
Gross profit 571.6 (26.1) - - - - 597.7
Other operating income 7.2 1.1 - - - - 6.1
Selling and distribution expenses (249.4) (0.6) - - - (0.3) (248.5)
Research and development expenses (26.0) - - - - - (26.0)
General and administrative expenses (151.9) (0.5) (1.3) (0.9) (2.7) (3.7) (142.8)
Other operating expenses (14.9) (0.3) - (3.0) - (0.6) (11.0)
Result from operating activities 136.6 (26.4) (1.3) (3.9) (2.7) (4.6) 175.5
Depreciation and amortization 100.8 - 1.3 - - - 99.5
EBITDA 237.4 (26.4) - (3.9) (2.7) (4.6) 275.0
Of which adjustments:
Dec. 31,
2013 Restructuring
Impairment and
Customer's list
amortization
Business
combinations
Share-based
payments Other
Dec. 31,
2013
adjusted
Net revenue 2,516.4 - - - - - 2,516.4
Cost of sales (1,892.8) (1.8) (4.8) - - (0.6) (1,885.5)
Gross profit 623.7 (1.8) (4.8) - - (0.6) 631.0
Other operating income 8.9 - - - - 0.1 8.8
Selling and distribution expenses (248.8) (2.3) - - - (0.8) (245.8)
Research and development expenses (25.8) - - - - - (25.8)
General and administrative expenses (162.3) (1.1) (1.3) (0.5) (6.1) (8.8) (144.5)
Other operating expenses (14.8) - - - - (1.9) (12.9)
Result from operating activities 180.9 (5.3) (6.1) (0.5) (6.1) (11.9) 210.9
Depreciation and amortization 105.5 - 6.4 - - - 99.1
EBITDA 286.4 (5.3) 0.2 (0.5) (6.1) (11.9) 310.0
NOTE 5 - SEGMENT INFORMATION
24 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
NOTE 5 - SEGMENT INFORMATION
By operating segment
Dec. 31, 2014
Flooring Sport
Surfaces
EMEA North
America
CIS, APAC
and LATAM Central Group
Net revenue 681.3 658.0 771.1 304.0 - 2,414.4
Activity (*) 757.4 660.9 787.0 306.4 - -
Gross profit 172.3 168.7 172.7 58.7 (0.8) 571.6
% of net sales 25.3% 25.6% 22.4% 19.3% 23.7%
Adjusted EBITDA 77.0 63.8 146.0 26.7 (38.5) 275.0
% of net sales 11.3% 9.7% 18.9% 8.8% 11.4%
Adjustments for: (20.9) (7.5) (1.6) (1.0) (6.7) (37.7)
EBITDA 56.1 56.2 144.6 25.7 (45.2) 237.4
% of net sales 8.2% 8.5% 18.8% 8.5% 9.8%
EBIT 29.9 22.8 97.5 11.8 (25.4) 136.6
% of net sales 4.4% 3.5% 12.6% 3.9% 5.7%
Capital expenditures 19.3 27.5 20.6 4.6 5.6 77.6
(*) including inter-segment revenue
Dec. 31, 2013
Flooring Sport
Surfaces
EMEA North
America
CIS, APAC
and LATAM Central Group
Net revenue 669.6 673.6 887.5 285.8 - 2,516.4
Activity (*) 746.5 674.0 900.7 288.1 - -
Gross profit 181.7 180.7 215.6 45.7 - 623.7
% of net sales 27.1% 26.8% 24.3% 16.0% 24.8%
Adjusted EBITDA 71.3 74.0 190.1 15.0 (40.3) 310.0
% of net sales 10.6% 11.0% 21.4% 5.2% 12.3%
Adjustments for: (1.9) (5.3) (1.2) (0.4) (14.8) (23.6)
EBITDA 69.4 68.6 188.9 14.6 (55.1) 286.4
% of net sales 10.4% 10.2% 21.3% 5.1% 11.4%
EBIT 34.6 38.9 143.2 (1.2) (34.7) 180.9
% of net sales 5.2% 5.8% 16.1% (0.4)% 7.2%
Capital expenditures 19.2 20.9 37.3 4.4 5.9 87.8
(*) including inter-segment revenue
NOTE 6 - OTHER OPERATING INCOME - OTHER OPERATING EXPENSES
Tarkett - Annexes to the Consolidated Financial Statements, December 2014 25
Information on activity in France and in other significant
countries
The Group's activity in France represented less than 10% of
revenue in 2014 and in 2013.
Non-current assets in France, excluding the non-affected
goodwill arising out of the merger between Tarkett and
Sommer in the early 2000’s, also represent less than 10%
of the Group's total non-current assets in 2014 and in 2013.
Tarkett considers the threshold for significance to be 25%
of revenue. Only the United States meets this criterion,
representing 32.6% of the Group’s revenue in 2014 and
30.8% of the Group’s revenue in 2013.
The United States represents 40.5% of the Group's total
non-current assets as of December 31, 2014 and 42.2% on
December 31, 2013.
None of Tarkett’s customers represents more than 10% of
its sales. The largest customer in 2014 and 2013
represented approximately 5% of the sales, in line with
previous years.
NOTE 6 - OTHER OPERATING INCOME - OTHER OPERATING EXPENSES
Dec. 31, 2014 Dec. 31, 2013
Gain on disposal of fixed assets 1.1 0.3
Other operating income 6.1 8.6
Other operating income 7.2 8.9
Gain on disposal of fixed assets (0.3) -
Other operating expenses (14.6) (14.8)
Other operating expenses (14.9) (14.8)
Total other operating income and expenses (7.7) (5.9)
This category includes all operating income and expenses that cannot be directly attributed to business functions, including
operating expense related to retirement commitments and costs with respect to certain disputes.
NOTE 7 - FINANCIAL RESULT
Dec. 31, 2014 Dec. 31, 2013
Interest income on loan assets & cash equivalents 1.5 1.3
Other financial income 0.3 0.3
Total financial income 1.8 1.6
Interest expenses on loans and overdrafts (14.0) (16.2)
Leasehold & similar rights (0.1) (0.2)
Commissions expense on financial liabilities (5.6) (5.0)
Interest on provisions for pensions (5.4) (6.4)
Foreign exchange losses (7.5) (4.1)
Impairment on financial assets (0.1) (0.1)
Changes in value of rate derivatives used to hedge debt 1.2 (0.8)
Other financial liabilities (1.3) (0.3)
Total financial expenses (32.8) (33.0)
FINANCIAL RESULT (31.0) (31.4)
NOTE 8 - INCOME TAX
26 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
NOTE 8 - INCOME TAX
Income tax (current and deferred) is detailed as follows:
Dec. 31, 2014 Dec. 31, 2013
restated *
Current tax (38.9) (51.9)
Deferred tax (1.8) 2.6
Total income tax (40.7) (49.3)
*The comparative periods have been retroactively restated following application of IAS 12.41 (see Note 2.5.22).
Theoretical income taxes determined using the French corporate income tax rate of 34.43% for 2014 and 2013 can be
reconciled as follows to the actual income tax charge:
Dec. 31, 2014 Dec. 31, 2013
restated *
Income tax at French income tax rate (35.8) (51.0)
Effect of:
Taxation of foreign companies at different rates * 18.7 31.3
Exchange rate effects on tax bases ** (11.6) (1.4)
Recognition of deferred tax assets relating to previous years 22.4 19.6
Changes in unrecognized deferred tax assets (14.0) (21.5)
Permanent differences - non-deductible items (7.1) (4.6)
Tax costs related to dividends (WHT, French 3% surtax) (14.4) (17.8)
Other items 1.1 (3.9)
Income tax expenses (40.7) (49.3)
Effective rate 39.2% 33.3%
*The comparative periods have been retroactively restated following application of IAS 12.41 (see Note 2.5.22).
(**) In 2014, the Group applied IAS 12.41 on the recognition of deferred tax assets for temporary differences between the
assets' tax basis (calculated at the rate on the balance sheet date) and their book value in the financial statements (calculated
at the historical rate). As a result, in 2014 the Group recognized deferred income tax expense of €(11.6) million due to the
effect of changes in the exchange rate on non-monetary assets and liabilities of entities whose functional currency is different
from the local currency. Recognition of this expense is required by IFRS, even if the revalued tax basis does not generate any
tax obligation in the future.
NOTE 9 - GOODWILL
The evolution of goodwill can be analyzed as follows:
Dec. 31, 2014 Dec. 31, 2013
Opening carrying amount 425.6 449.1
New goodwill 72.5 -
Adjustment to initial purchase price allocation of Gamrat Flooring 0.1 -
Adjustment to initial purchase price allocation of Tandus - (12.5)
Effect of movements in exchange rates 34.4 (10.9)
Impairment losses - -
Other - -
Closing carrying amount 532.6 425.6
The main variation is explained by the allocation of goodwill following purchase price allocation of the Desso group and results
in an increase of €60.0 million in goodwill. See Note 3.2, Purchase Accounting, for more detail.
An impairment test has been performed according to the methodology explained in note 2.5.15. On this basis, no impairment
loss was recognized in 2014 (neither in 2013).
NOTE 10 - INTANGIBLE, TANGIBLE AND FINANCIAL ASSETS
Tarkett - Annexes to the Consolidated Financial Statements, December 2014 27
The allocation of goodwill among the various CGUs is as follows:
Dec. 31, 2014 Dec. 31, 2013
Gross value Net value Gross value Net value
Resilient & Other 71.2 70.7 62.5 61.9
Carpet 60.0 60.0 - -
Wood - - - -
Laminate - - - -
EMEA 131.2 130.7 62.5 61.9
Commercial 69.9 52.9 64.0 46.8
Tandus & Centiva 173.5 173.5 152.2 152.2
Residential - - - -
North America 243.4 226.4 216.2 199.1
CIS 96.5 95.5 96.5 95.5
APAC - - - -
LATAM 0.2 0.2 - -
CIS, APAC & LATAM 96.7 95.7 96.5 95.5
Athletic tracks 35.2 29.4 28.4 23.0
Synthetic grass & other 50.6 50.3 46.4 46.1
Sport Surfaces 85.8 79.8 74.8 69.1
TOTAL GOODWILL 557.1 532.6 449.9 425.6
NOTE 10 - INTANGIBLE, TANGIBLE AND FINANCIAL ASSETS
Dec. 31, 2014 Dec. 31, 2013
Research and development 4.8 4.3
Patents 39.7 44.0
Trademarks 18.5 17.8
Software 30.6 31.0
Other intangible assets 5.9 6.6
Advance payments and fixed assets in progress 16.3 7.1
Intangible assets 115.8 110.9
- - Real property and rights equivalent to real property 234.9 181.0
Leased buildings - 4.8
Technical equipment and machinery 233.8 191.6
Leased equipment 2.0 4.9
Advance payments and fixed assets in progress 31.4 33.1
Property, plant and equipment (*) 502.1 415.4
Bonds, debenture loan & other sec. Invest - Long-term 1.1 2.7
Financial investments and receivables - Long-term (**) 23.7 22.1
Loan receivables - Long-term 0.3 0.3
Security deposit - Long-term 3.7 2.4
Other financial assets 28.8 27.5
(*) Equipment that is currently under construction has been allocated to individual items.
(**) Financial investments and receivables – long term include shares of companies accounted for by the equity method.
At December 31, 2014, intangible assets with an indefinite life totaled €7.4 million gross and net (€7.4 million at December 31,
2013).
Impairment testing
Impairment losses recognized during 2014 and 2013 can be broken down as follows:
Dec. 31, 2014 Dec. 31, 2013
EMEA – Wood CGU - (5.1)
Total - (5.1)
NOTE 10 - INTANGIBLE, TANGIBLE AND FINANCIAL ASSETS
28 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
The variations in gross value, depreciation and amortization break down as follow:
Acquisition cost At Dec.
31, 2013 Acquisition Disposal
Change in
scope Transfer
Change in
accounting
policies*
Foreign
exchange
differences
At Dec.
31, 2014
Research and development 9.3 1.5 (0.2) - 0.1 - 0.4 11.1
Patents 117.8 0.1 (0.1) - - - 15.3 133.1
Trademarks 28.7 - - - - - 3.1 31.8
Leasehold & similar rights - - - - - - - -
Software 66.8 5.9 (0.4) 10.7 5.3 - 4.2 92.5
Other intangible assets 6.9 - (0.5) - - - 1.2 7.5
Advance payments and fixed assets in progress 7.1 12.8 - - (4.5) - 0.8 16.3
Intangible assets 236.6 20.4 (1.2) 10.7 0.9 - 25.1 292.3
Real property and rights equivalent to real
property 389.2 16.6 (4.5) 68.7 25.9 0.3 7.6 503.7
Leased buildings 19.5 - (4.6) - (12.2) - 0.2 2.8
Technical equipment and machinery 1,080.8 16.9 (37.7) 108.2 56.7 0.3 22.6 1,247.8
Leased equipment 15.0 - - 0.3 (12.6) 0.2 (0.1) 2.7
Advance payments and fixed assets in progress 33.1 49.7 (0.1) 3.3 (56.5) - 1.9 31.4
Property, plant and equipment 1,537.5 83.2 (47.0) 180.3 1.4 0.7 32.2 1,788.4
Bonds, debenture loan & other sec. Invest -
Long-term 2.7 (1.6) - 0.1 - - - 1.1
Financial investments and receivables - Long-
term 22.1 (1.1) (0.1) - - - 2.8 23.6
Loan receivables - Long-term 0.3 - - - - - - 0.3
Security deposit - Long-term 5.1 1.3 - - - - 0.1 6.5
Other financial assets 30.2 (1.4) (0.1) 0.1 - - 2.9 31.6
*Impact related to adjustments in fair value following the acquisition of Tarkett Jaslo
Accumulated
depreciation and
amortization
At Dec.
31, 2013 Addition Disposal Decrease
Impairment
losses
Change in
scope Transfer
Change in
accounting
policies*
Foreign
exchange
differences
At Dec.
31, 2014
Research and
development (5.0) (1.2) 0.2 - - - - - (0.4) (6.4)
Patents (73.8) (9.3) 0.1 - - - - - (10.3) (93.3)
Trademarks (10.9) (1.6) - - - - - - (0.8) (13.3)
Leasehold & similar rights - - - - - - - - - -
Software (35.8) (13.6) 0.4 - - (10.4) (0.6) - (1.9) (61.9)
Other intangible assets (0.3) (1.5) 0.5 - - - 0.1 - (0.5) (1.7)
Intangible assets (125.7) (27.2) 1.2 - - (10.4) (0.5) - (13.9) (176.5)
Real property and rights
equivalent to real
property (208.2) (16.7) 2.2 0.1 - (34.0) (8.3) - (3.9) (268.8)
Leased buildings (14.7) 0.3 4.2 (0.6) - - 8.0 - - (2.8)
Technical equipment and
machinery (889.2) (58.4) 37.2 1.9 - (80.0) (10.3) (0.2) (15.0) (1,014.0)
Leased equipment (10.0) (0.2) - - - - 9.5 - - (0.7)
Property, plant and
equipment (1,122.1) (75.1) 43.6 1.4 - (114.0) (1.1) (0.2) (18.9) (1,286.4)
Security deposit - Long-
term (2.7) - - - (0.1) - - - - (2.8)
Other financial assets (2.7) - - - (0.1) - - - - (2.8)
*Impact related to adjustments in fair value following the acquisition of Tarkett Jaslo
NOTE 11 - INVENTORIES
Tarkett - Annexes to the Consolidated Financial Statements, December 2014 29
NOTE 11 - INVENTORIES
Dec. 31, 2014 Dec. 31, 2013
Raw materials and supplies 107.6 88.3
Work in progress 60.0 48.7
Finished goods 212.0 201.5
Samples 3.2 6.1
Consumables and spare parts 22.0 21.4
Total Gross Value 404.8 366.0
Provision for inventory impairment (56.6) (47.5)
Total Net Inventory 348.2 318.6
Detail of the provision for inventory impairment
Dec. 31, 2013 Allowance Reversals Scope
Foreign
exchange
gain & loss
Dec. 31, 2014
Raw materials and supplies (7.9) (2.7) 1.7 (1.2) (0.6) (10.7)
Work in progress (6.5) (6.0) 2.8 (0.5) (0.5) (10.7)
Finished goods (25.3) (10.8) 10.9 (2.3) (1.4) (28.9)
Samples (1.9) 1.0 - - (0.1) (1.0)
Consumables and spare parts (5.8) 0.3 0.2 - - (5.3)
Total Provision for Inventory Impairment (47.5) (18.2) 15.6 (4.0) (2.6) (56.6)
The rate of inventory provisions is applied in a similar way for the different periods.
Cost of sales in 2014 amounted to €1,105.9 million (as compared with €1,162.1 million in 2013).
NOTE 12 - TRADE RECEIVABLES
Dec. 31, 2014 Dec. 31, 2013
Related party receivables 7.8 7.6
Third party receivables 328.6 294.0
Total Gross Value 336.4 301.6
Provisions for doubtful receivables (24.5) (21.9)
Total Trade Receivables 312.0 279.7
The variation of the provision for doubtful receivables totals €2.6 million and is mainly explained as follows:
� €(2.9) million of allowance,
� €5.8 million of reversal,
� €(0.2) million of foreign exchange impact.
Details of unimpaired overdue receivables
Dec. 31, 2014 Dec. 31, 2013
Receivables, trade 0-180 days overdue 34.0 24.3
Receivables, trade 181-270 days overdue 0.3 -
Receivables, trade 271-360 days overdue 0.2 0.1
Receivables, trade >360 days overdue 1.7 (3.2)
Receivables, bankruptcy procedure / legal cases 1.4 3.8
Unimpaired Overdue Receivables 37.6 25.0
NOTE 13 - OTHER RECEIVABLES
30 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
NOTE 13 - OTHER RECEIVABLES
Dec. 31, 2014 Dec. 31, 2013
Total other receivables non-current 0.5 0.2
Prepaid expenses current 19.6 18.1
Income tax receivable current 19.4 13.4
VAT and other taxes 17.3 17.4
Other accounts receivable and other assets current 16.5 10.3
Total other receivables current 72.9 59.2
NOTE 14 - SHARE CAPITAL
As of December 31, 2014 the Company’s share capital totaled €318,613,480, identical to December 31, 2013, and was divided
into 63,722,696 shares of par value €5 each, identical to December 31, 2013.
NOTE 15 - EARNINGS PER SHARE & DIVIDENDS
Weighted average number of shares outstanding (basic)
In thousands of shares Dec. 31, 2014 Dec. 31, 2013
Weighted average number of shares during the period 63,723 63,276
Weighted average number of treasury shares held by Tarkett (216) (1,335)
Weighted average number of shares outstanding (basic) 63,506 61,941
Basic earnings per share
Basic earnings per share as of December 31, 2014 are calculated on the basis of the Group’s share of net profit and on the
weighted average number of shares outstanding during the period (and after deduction of the weighted average number of
treasury shares).
Dec. 31, 2014
Dec. 31, 2013
restated *
Profit for the period attributable to Tarkett shareholders (in millions of €) 61.2 97.6
Weighted average number of shares outstanding 63,506 61,941
Basic earnings per share (in euros) 0.96 1.58
*The comparative periods have been retroactively restated following application of IAS 12.41 (see note 2.5.22).
Weighted average number of shares outstanding (diluted earnings)
In thousands of shares Dec. 31, 2014 Dec. 31, 2013
Weighted average number of shares during the period 63,723 63,276
Weighted average number of treasury shares held by Tarkett (216) (1,335)
Impact of share-based payment plans 518** 624
Weighted average number of shares outstanding (diluted) 64,025 62,565
** the Group's share-based payment plans were amended as of the Group's initial public offering at the end of 2013, and now
provide solely for the grant of existing shares, without issuance of new shares.
Diluted earnings per share
Diluted earnings per share as of December 31, 2014 are calculated on the basis of the Group’s share of net profit and on the
weighted average number of shares outstanding during the period and the weighted average number of potential shares
outstanding (and after deduction of the weighted average number of treasury shares).
Dec. 31, 2014
Dec. 31, 2013
restated *
Profit for the period attributable to Tarkett shareholders (in millions of €) 61.2 97.6
Weighted average number of shares outstanding (diluted) 64,025 62,565
Diluted earnings per share (in euros) 0.96 1.56
*The comparative periods have been retroactively restated following application of IAS 12.41 (see note 2.5.22).
NOTE 16 - NET DEBT – INTEREST-BEARING LOANS AND BORROWINGS
Tarkett - Annexes to the Consolidated Financial Statements, December 2014 31
Dividends
Tarkett paid dividends in the amount of €0.62 per share to its shareholders on July 7, 2014, in accordance with the decision of
the General Shareholders' meeting of May 13, 2014.
NOTE 16 - NET DEBT – INTEREST-BEARING LOANS AND BORROWINGS
16.1 Net Debt
Dec. 31, 2014 Dec. 31, 2013
Interest-bearing loans and borrowings - non-current 690.4 501.3
Interest-bearing loans and borrowings – current 40.2 24.4
Cash and cash equivalents (135.1) (96.7)
Net Debt 595.4 429.0
16.2 Interest bearing loans and borrowings
Dec. 31, 2014 Dec. 31, 2013
Long-term Short-term Long-term Short-term
Bank loans (unsecured) 689.0 36.9 498.7 22.8
Other loans (unsecured) 0.1 0.2 0.6 -
Bank overdrafts (unsecured) - 2.8 - 1.1
Finance lease obligations 1.3 0.3 2.0 0.6
Interest bearing loans and borrowings 690.4 40.2 501.3 24.4
Unsecured bank loans include mainly:
� A €450.0 million syndicated term facility drawn down
in two tranches in October 2013 and January 2014,
and maturing in full in October 2018.
� €55.0 million drawn against a multicurrency
syndicated revolving facility executed by Tarkett in
June of 2011 for up to €450.0 million and maturing in
June 2016.
� An installment loan composed of one tranche of
€85.0 million and one tranche of $34.0 million,
maturing in May 2016 after installment payments in
May 2015 for €25.0 million and $10.0 million. The loan
will be accelerated in the event that Tarkett issues a
capital increase or bonds in the capital debt market.
16.3 Details of loans and borrowings
Dec. 31, 2014 Currency Interest
rate Total
12 months or
less until
12/31/2015
2 years until
12/31/2016
3 to 5 years
until
12/31/2019
More
than 5
years
Unsecured loans
Term Facilities Europe EUR 0.6%-2.0% 538.8 26.3 61.2 451.3 -
Term Facilities Europe USD 2.6% 28.0 8.2 19.8 - -
Revolving Facilities Europe EUR 0.9% 55.0 - 55.0 - -
Revolving Facilities Europe USD 0.9% 101.3 - 101.3 - -
Other bank loans 3.6%-18% 2.8 2.4 0.2 0.2 -
Total bank loans 725.9 36.9 237.5 451.5 -
Other loans EUR 0.5% 0.3 0.2 0.1 - -
Bank overdrafts 0.6%-5.3% 2.8 2.8 - - -
Finance lease obligations 1.6 0.3 0.3 0.9 0.1
Total interest-bearing loans 730.6 40.2 237.9 452.4 0.1
NOTE 17 - OTHER FINANCIAL LIABILITIES
32 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
Dec. 31, 2013 Currency Interest
rate Total
12 months or
less until
12/31/2014
2 years until
12/31/2015
3 to 5 years
until
12/31/2018
More
than 5
years
Unsecured loans
Term Facilities Europe EUR 0.7%-2.1% 465.0 16.3 26.2 422.5 -
Term Facilities Europe USD 2.6% 29.0 4.4 7.3 17.3 -
Revolving Facilities Europe EUR 1.1% 25.0 - - 25.0 -
Other bank loans 3.7%-5.3% 2.6 2.0 0.3 0.3 -
Total bank loans 521.6 22.7 33.8 465.1 -
Other loans EUR 0.7%-4.5% 0.4 0.1 0.1 0.2 -
Bank overdrafts 1.1 1.1 - - -
Finance lease obligations 2.6 0.6 0.6 1.2 0.2
Total interest-bearing loans and
borrowings
525.7 24.5 34.5 466.5 0.2
The facilities mentioned above contain covenants binding
on the borrower, including financial ratio covenants: the
ratio of net debt to adjusted EBITDA may not exceed 3.0,
and the ratio of EBIT to net interest may not be lower than
2.5.
The Group is in compliance with all of its banking
commitments as of December 31, 2014, as well as with the
financial ratio covenants, as detailed below:
16.4 Covenants
Net Debt / Adjusted EBITDA Dec. 31, 2014 Dec. 31, 2013
Net Debt 595.4 429.0
Adjusted EBITDA 275.0 310.0
Ratio (1) 2.2 1.4
(1) must be below 3.0
Net debt includes debt related to the acquisition of the Desso Group for €154 million whereas Desso’s adjusted EBITDA is not
reported in the adjusted EBITDA of the Group (acquired on December 31, 2014).
EBIT / Net interest Dec. 31, 2014 Dec. 31, 2013
EBIT 175.5 210.9
Net interest 12.6 15.0
Ratio (2) 13.9 14.1
(2) Must be above 2.5
16.5 Cash and cash equivalent by nature
Dec. 31, 2014 Dec. 31, 2013
Current cash 28.4 35.6
Remunerated cash balances 69.0 35.5
Short term treasury notes and Money Market funds 37.8 25.5
Cash and cash equivalents 135.1 96.7
NOTE 17 - OTHER FINANCIAL LIABILITIES
Dec. 31, 2014 Dec. 31, 2013
Fair value of derivatives non current (0.3) 2.0
Other financial liabilities non current 3.8 4.7
Other financial liabilities non current 3.5 6.7
Accrued interest expenses current 2.7 1.6
Fair value of derivatives current 1.4 0.3
Other financial liabilities current 1.5 1.1
Other financial liabilities current 5.6 3.0
NOTE 18 - TRADE PAYABLES
Tarkett - Annexes to the Consolidated Financial Statements, December 2014 33
NOTE 18 - TRADE PAYABLES
Dec. 31, 2014 Dec. 31, 2013
Trade payables 221.3 216.3
Trade notes payable 3.1 3.5
Trade payables 224.4 219.8
NOTE 19 - OTHER LIABILITIES
Dec. 31, 2014 Dec. 31, 2013
Liabilities related to employees 83.0 80.1
Current tax 15.9 18.6
VAT and other taxes 16.4 13.8
Sales rebates 39.8 27.9
Other liabilities 25.4 26.6
Total other liabilities 180.5 167.0
Written put options or forward contracts granted to non-
controlling shareholders
Share put options on non-controlling interests
As of December 31, 2013 and December 31, 2014, the
amount of debt booked in the Group's consolidated
financial statements relative to share put options on non-
controlling shareholders was €2.1 million and €3.1 million,
respectively.
As of December 31, 2014, this debt is composed of two
options, granted to non-controlling shareholders of:
� Morton Extrusionstechnik (MET) for €3.1 million,
corresponding to 49% of residual shares held by non-
controlling interests;
� Fieldturf Benelux BV for €0.04 million, corresponding
to 49% of residual shares held by non-controlling
interests.
NOTE 20 - DEFERRED TAX
Deferred taxation is shown on the balance sheet separately from current tax assets and liabilities and is categorized in non-
current items.
Dec. 31, 2014 Dec. 31, 2013
restated *
Net operating losses and credits carried forward 219.6 184.9
Provision for valuation allowance on NOLCF (148.6) (130.4)
DTA for pensions and healthcare benefits 44.8 32.6
Other items temporarily non deductible 60.1 54.6
Change in unrecognized deferred tax assets (15.6) (18.1)
Internal profit eliminations 4.4 3.1
Netted against deferred tax assets (55.3) (44.1)
Deferred tax assets 109.3 82.6
Deferred tax liabilities
Fixed assets revaluation 57.3 39.8
Other deferred tax liabilities 34.5 15.1
Netted against deferred tax assets (55.3) (44.1)
Deferred tax liabilities 36.5 10.8
* The comparative periods have been retroactively restated following application of IAS 12.41 (see note 2.5.22).
Net deferred tax assets for tax losses and unused tax
credits carried forward are recognized for a total amount of
€71.0 million, of which €44.7 million related to the affiliates
within the US tax Group, €2.0 million related to the French
tax group, and €5.2 million related to the Canadian
subsidiary.
The €71.0 million is split between €61.2 million of net
deferred tax assets for tax losses, and €9.8 million of net
unused tax credits.
Other deferred tax liabilities include the effect of the
application of IAS 12.41, for €21.7 million in 2014 and €10.1
million in 2013, relating to the effect of changes in the
exchange rate on non-monetary assets and liabilities of
entities whose functional currency is different from the
local currency (see Note 2.5.22). The booking of this
liability is required by the IFRS, even if the revaluated fiscal
basis will not generate any fiscal obligation in the future.
NOTE 21 - PROVISIONS
34 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
NOTE 21 - PROVISIONS
At Dec.
31,
2013
Allowance Decrease Change in
scope Transfer
Foreign
exchange
gain &
loss
At Dec.
31,
2014
Product warranty provision 2.8 0.1 (0.3) 0.1 - - 2.7
Restructuring provisions 0.6 - - - (0.6) - -
Claims & litigations provisions 2.1 0.8 (1.8) - - - 1.1
Other provisions 3.6 0.8 (0.1) - - - 4.3
Provision for additional tax assessments 2.4 0.6 (0.8) - - - 2.1
Financial liabilities 29.7 0.6 - - - 4.1 34.3
Total Provisions - Long-term 41.2 2.9 (3.1) 0.1 (0.6) 4.1 44.5
Product warranty provision 9.4 11.0 (7.6) 1.6 11.3 2.1 27.9
Restructuring provisions 3.2 13.1 (2.6) - 0.6 - 14.3
Claims & litigation provisions 20.9 3.1 (5.6) - (10.9) 0.6 8.2
Other provisions 0.1 0.3 (0.3) - (0.1) - -
Total Provisions - Short-term 33.7 27.5 (16.0) 1.6 0.9 2.8 50.5
Total Provisions 74.8 30.4 (19.2) 1.7 0.2 6.9 95.0
The decrease of €(5.6) million in claims and litigations provisions includes €(2.7) million in unused decreases.
At Dec.
31,
2012
Allowance Decrease Change in
scope Transfer
Foreign
exchange
gain &
loss
At Dec.
31,
2013
Product warranty provision 2.2 0.8 - (0.3) 0.1 (0.1) 2.8
Restructuring provisions - 0.6 - - - - 0.6
Claims & litigation provisions 2.3 0.3 (0.4) - - (0.1) 2.1
Other provisions 3.6 0.3 (0.2) 0.7 (0.7) - 3.6
Provision for additional tax assessments 1.0 1.4 (0.3) - 0.4 - 2.4
Financial liabilities 29.0 2.0 - - - (1.3) 29.7
Total Provisions - Long-term 38.1 5.3 (0.9) 0.4 (0.3) (1.5) 41.2
Product warranty provision 10.6 1.7 (3.2) - 0.7 (0.4) 9.4
Restructuring provisions 3.5 2.2 (2.4) - - (0.1) 3.2
Claims & litigation provisions 21.7 9.0 (8.7) - (0.5) (0.6) 20.9
Other provisions 0.4 0.2 (0.1) - (0.3) - 0.1
Total Provisions - Short-term 36.2 13.2 (14.5) - - (1.1) 33.7
Total Provisions 74.3 18.5 (15.4) 0.4 (0.3) (2.6) 74.8
As of December 31, 2014, the variations in provisions for financial liabilities relate to the provision for asbestos litigation
recorded by Tarkett Domco Products Texas Inc. (See Note 27 - Other Contingencies)
NOTE 22 - EMPLOYEE BENEFITS
Tarkett - Annexes to the Consolidated Financial Statements, December 2014 35
NOTE 22 - EMPLOYEE BENEFITS
Provisions for pensions, retirement and similar
obligations
In accordance with the laws and practices of each country
in which it operates, Tarkett participates in, or maintains,
employee benefit plans providing retirement pensions,
post-retirement health care, other long term benefits
(jubilees) and post-employment benefits (retirement
indemnities, pre-retirement) to eligible employees, former
employees, retirees and their beneficiaries fulfilling the
required conditions.
These employee benefit plans expose Tarkett to actuarial
risks, such as interest rate risk.
Valuation of these obligations is carried out yearly at the
balance sheet date by independent actuaries.
Amounts recognized in the statement of
financial position
Dec. 31, 2014 Dec. 31, 2013
Pensions
Post-
employment
healthcare
benefits
TOTAL Pensions
Post-
employment
healthcare
benefits
TOTAL
Defined benefit obligations 247.9 6.3 254.2 201.9 3.3 205.2
Fair value of plan assets (98.8) - (98.8) (83.0) - (83.0)
Net liability booked in the statement of
financial position 149.1 6.3 155.4 118.9 3.3 122.2
Amounts recognized in the income statement
Dec. 31, 2014 Dec. 31, 2013
Pensions
Post-
employment
healthcare
benefits
TOTAL Pensions
Post-
employment
healthcare
benefits
TOTAL
Current service cost 3.2 2.9 6.1 3.4 0.1 3.5
Past service cost - - - (0.4) - (0.4)
Interest expense 4.7 0.1 4.8 4.8 0.1 4.9
Re-measurements of other long-term benefits (0.1) - (0.1) 0.7 - 0.7
Administrative expenses and taxes 0.7 - 0.7 0.8 - 0.8
Total expenses included in income statement 8.4 3.0 11.4 9.3 0.2 9.5
Amounts recognized in statement of
comprehensive income (gross of tax)
Dec. 31, 2014 Dec. 31, 2013
Pensions
Post-
employment
healthcare
benefits
TOTAL Pensions
Post-
employment
healthcare
benefits
TOTAL
Effect of changes in demographic assumptions 4.6 0.2 4.8 1.5 - 1.5
Effect of changes in financial assumptions 29.7 (0.1) 29.6 (15.2) (0.2) (15.3)
Effect of experience adjustments 0.6 (0.2) 0.4 1.0 (0.3) 0.8
(Return) on plan assets (excluding interest
income) (4.9) - (4.9) (4.4) - (4.4)
Total pension cost recognized in the OCI 30.0 (0.1) 29.9 (17.0) (0.4) (17.5)
NOTE 22 - EMPLOYEE BENEFITS
36 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
Change in net liabilities recognized in the
balance sheet
Dec. 31, 2014 Dec. 31, 2013
Pensions
Post-
employment
healthcare
benefits
TOTAL Pensions
Post-
employment
healthcare
benefits
TOTAL
Balance sheet liability/asset at beginning of
year 118.9 3.3 122.2 138.4 3.8 142.2
Total expenses recognized in income statement 8.4 3.0 11.4 9.3 0.2 9.5
Amounts recognized in OCI in the financial year 30.0 (0.1) 29.9 (17.0) (0.4) (17.5)
Business combinations / divestitures / transfers (0.1) - (0.1) 0.2 - 0.2
Employer contributions made in the financial
year (5.6) - (5.6) (5.0) (0.2) (5.2)
Benefit payments from employer (4.8) (0.3) (5.1) (4.6) - (4.6)
Exchange rate adjustment (gain) / loss 2.3 0.4 2.7 (2.3) (0.2) (2.4)
Balance sheet liability/asset at end of year 149.1 6.3 155.4 118.9 3.3 122.2
Changes in benefit obligation
Dec. 31, 2014 Dec. 31, 2013
Pensions
Post-
employment
healthcare
benefits
TOTAL Pensions
Post-
employment
healthcare
benefits
TOTAL
Benefit obligation at beginning of year 201.9 3.3 205.2 224.7 3.8 228.5
Current service cost 3.2 2.9 6.1 3.4 0.1 3.5
Past service cost - - - (0.4) - (0.4)
Interest expense 8.6 0.1 8.7 8.0 0.1 8.1
Benefit payments from plan (7.3) - (7.3) (6.4) (0.2) (6.5)
Benefit payments from employer (4.8) (0.3) (5.1) (4.6) - (4.6)
Plan settlement - - - (5.9) - (5.9)
Plan participants' contributions 0.1 - 0.1 0.2 - 0.2
Expenses paid (0.3) - (0.3) (0.2) - (0.2)
Business combinations / divestitures / transfers (0.1) - (0.1) 0.2 - 0.2
Effect of changes in demographic assumptions 4.6 0.2 4.8 1.5 - 1.5
Effect of changes in financial assumptions 29.8 (0.1) 29.7 (15.2) (0.2) (15.3)
Effect of experience adjustments 0.5 (0.2) 0.2 2.1 (0.3) 1.9
Exchange rate adjustment (gain) / loss 11.7 0.4 12.1 (5.5) (0.2) (5.6)
Benefit obligation at end of year 247.9 6.3 254.2 201.9 3.3 205.2
Change in plan assets
Dec. 31, 2014 Dec. 31, 2013
Pensions
Post-
employment
healthcare
benefits
TOTAL Pensions
Post-
employment
healthcare
benefits
TOTAL
Fair value of plan assets as of January 1 83.0 - 83.0 86.7 - 86.7
Interest expense 4.0 - 4.0 3.2 - 3.2
Employer contributions 5.6 - 5.6 5.0 0.2 5.2
Employer direct benefit payments 4.8 0.3 5.1 4.6 - 4.6
Plan participants' contributions 0.1 - 0.1 0.2 - 0.2
Benefit payments from plan (7.3) - (7.3) (6.4) (0.2) (6.5)
Benefit payments from employer (4.8) (0.3) (5.1) (4.6) - (4.6)
Plan settlement - - - (5.9) - (5.9)
Expenses paid (1.0) - (1.0) (1.1) - (1.1)
Business combinations / divestitures / transfers - - - - - -
(Return) on plan assets (excluding interest
income) 4.9 - 4.9 4.4 - 4.4
Exchange rate adjustment (gain) / loss 9.4 - 9.4 (3.2) - (3.2)
Fair value of plan assets as of December 31 98.8 - 98.8 83.0 - 83.0
NOTE 22 - EMPLOYEE BENEFITS
Tarkett - Annexes to the Consolidated Financial Statements, December 2014 37
Assumptions:
Accounting for actuarial values is based on long-term interest rates, predicted future increases in salaries and rates of inflation.
The main assumptions are presented below:
Dec. 31, 2014 Dec. 31, 2013
Pensions
Post-employment
healthcare
benefits
Pensions
Post-employment
healthcare
benefits
Discount rate 3.30% 4.30%
Including:
US 4.25% 4.50% 5.00% 5.00%
Germany 1.50% 3.10%
Sweden 2.75% 4.00%
UK 3.50% 4.40%
Salary increases 2.55% 3.03%
Inflation 2.02% 2.21%
Discount rates are determined by reference to rates of return for high-quality bonds. They are calculated on the basis of
external indices commonly used as references:
� United States: iBoxx $ 15+ year AA
� Euro zone: iBoxx € Corporate AA 10+
� Sweden: bonds of Swedish companies
� United Kingdom: iBoxx £ 15+ year AA
Allocation of plan assets by type of investment:
Dec. 31, 2014 Dec. 31, 2013
Equity 49.6% 48.5%
Bonds 29.5% 28.4%
Real Estate 3.3% 3.2%
Other 17.6% 19.8%
All shares are listed on active markets. Assets in the “Other” category consist primarily of insurance contracts in Germany, for
8.9%. The remainder corresponds to cash and cash equivalent linked to pensions plans in the United States and Canada.
Expected employer contributions for 2015 amount to €10.1 million.
Sensitivity to discount rate assumptions
Dec. 31, 2014 Dec. 31, 2013
Increase of 50 basis points
Increase/(Decrease) in Defined Benefit Obligation (16.9) (12.5)
Decrease of 50 basis points
Increase/(Decrease) in Defined Benefit Obligation 18.0 14.2
NOTE 23 - PERSONNEL COSTS AND COMPENSATION OF SENIOR MANAGEMENT
38 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
NOTE 23 - PERSONNEL COSTS AND COMPENSATION OF SENIOR MANAGEMENT
Dec. 31, 2014 Dec. 31, 2013
Wages and salaries (510.0) (507.5)
Pension costs (11.7) (9.5)
Total Personnel costs (521.7) (517.0)
Employees (average number) 11,660 11,134
Key management personnel compensation
The key management personnel includes the members of the Executive Management Committee and the members of the
Supervisory Board.
Key management personnel received the following compensation:
Dec. 31, 2014 Dec. 31, 2013
Short-term employee benefits 7.2 7.1
Post-employment benefits
Other long-term benefits
Employment agreement termination benefits
Share-based payments 1.5 2.3
Total 8.7 9.4
Compensation of the Group’s key management personnel includes salaries and non-cash benefits.
NOTE 24 - SHARE-BASED PAYMENT TRANSACTIONS
LONG-TERM INCENTIVE PLANS
On December 22, 2011 a Long-Term Incentive Plan called
"LTIP 2011" was created for selected key executives of the
Group.
Ordinary shares were granted to the beneficiaries at the
end of a two-year vesting period ending June 30, 2014. The
grant was subject to satisfying an economic performance
condition (based on the Group's 3-year plan) and the
beneficiaries' continuous employment through June 30,
2014. This plan has been placed under IFRS2 treatment
“share-based payment” (equity settled plan).
The fair market value of the shares granted on the first day
of the plan was calculated as follows: 7 times adjusted
EBITDA less net debt. On the basis of the Group's results of
operations as of year-end 2011, this was estimated at €15
per share.
Income of €0.5 million was recorded in personnel costs in
2014 with respect to this plan (expense of €1.9 million as of
December 31, 2013), with a counterpart in equity.
In July 2014, the final number of shares granted was
158,302. These shares are also subject to a two-year
holding period. The granted shares can be freely sold by
the recipients after July 2016 (note that the Group has not
undertaken to repurchase these shares after 2016).
On December 17, 2012 a second Long-Term Incentive Plan,
called “LTIP 2012” was implemented for selected key
executives of the Group.
Ordinary shares will be granted to the beneficiaries at the
end of a two-year vesting period ending June 30, 2015. The
grant is subject to satisfying an economic performance
condition (based on the Group's 3-year plan) and the
beneficiaries' continuous employment through June 30,
2015. This plan was classified in accordance with IFRS 2,
“Share-Based Payment” (equity settled plan). The final
amount to be granted will be determined in mid-2015 and
the granted shares will not be subject to a holding period
and may be freely sold immediately after being granted.
In 2015, the Group may decide instead to grant the cash
equivalent of the shares, calculated at market value, since
the Group is now listed.
The total number of shares to be granted is estimated at
185,790 as of December 31, 2014 (374,532 as of December
31, 2013). The fair market value at the time of the issuance
of the plan is calculated as follows: 7 times EBITDA less net
debt. This has been accordingly estimated at €23.5 per
share based on December 31, 2012 figures.
Income of €0.1 million before tax was recognized in
administrative expense in the P&L in 2014 relating to this
plan (as compared with an expense of €3.5 million as of
December 31, 2013), with a counterpart in equity.
On October 9, 2013, a new share-grant plan, the “LTIP
2013”, was implemented for certain key executives of the
Group.
The plan is generally subject to the same terms as the LTIP
2012.
Ordinary shares will be granted to the beneficiaries at the
end of a two-year vesting period ending June 30, 2016. The
grant will be subject to satisfying an economic performance
condition (based on the Group's 3-year plan) and the
beneficiaries' continuous employment through June 30,
2016. This plan will be classified in accordance with IFRS2,
“share-based payment” (equity settled plan). The final
amount granted will be determined in mid 2016 and the
granted shares will not be subject to a holding period and
may be sold immediately after being granted.
The Group may decide in 2016 to grant, instead of shares,
the equivalent value in cash calculated at the market price.
NOTE 25 - FINANCIAL RISKS AND FINANCIAL INSTRUMENTS
Tarkett - Annexes to the Consolidated Financial Statements, December 2014 39
The total number of shares to be granted is estimated at
254,670 as of December 31, 2014 (406,112 as of December
31, 2013). The market value at the time of the issuance of
the plan has been defined at the price of the Company's
initial public offering on the Paris stock exchange on
November 22, 2013, which was €29.00 per share.
The expense in 2014 amounts to €2.4 million before tax
(€1.0 million in 2013), and has been booked as
administrative expense in the P&L with a counterpart in
equity.
NOTE 25 - FINANCIAL RISKS AND FINANCIAL INSTRUMENTS
Exposure to interest rate, currency, liquidity and credit risk
arises in the normal course of Tarkett’s activities.
Derivative financial instruments are used to reduce certain
exposures to fluctuations in both foreign exchange and
interest rates. Liquidity and credit risk are managed
following risk management policies approved by the
Group’s executive board.
25.1 FINANCIAL MARKET RISKS
Fair value of derivative financial instruments
The Group uses derivative financial instruments for risk
hedging purposes only, and accounts for them in
accordance with hedge accounting rules. The fair values of
the Group’s derivative financial instruments are recorded
on the balance sheet in “Other financial liabilities, current”
for derivatives hedging future cash flows, and in the
relevant accounts for derivatives hedging recorded items.
The totals are as follows:
Dec. 31,
2014
Dec.
31,
2013
Currency swaps 0.2 (0.2)
Forward exchange contracts (0.5) -
Options 0.1 (0.1)
Total currency derivatives (0.2) (0.3)
Cash flow hedges (0.9) (2.0)
Total interest rate derivatives (0.9) (2.0)
25.1.1 INTEREST RATE RISK
The Group manages its exposure to interest rate risk
centrally. The Group's general debt strategy is to give
preference to variable interest rate debt over fixed interest
rate debt, but also to protect a part of the debt over a
period of three to five years against a rate increase that
could result in extensive damage. The hedging tools used
are mainly cap or tunnel type derivatives. In certain
circumstances, swaps have been entered into to fix rates.
The interest rate derivatives outstanding at closing are all
purposed for cash flow hedging and none is purposed for
fair value hedging.
Following is the interest rate structure of the Group's net
debt before and after application of interest rate hedges.
Net debt is defined as interest-bearing loans minus cash
and cash equivalents.
Before interest rate hedge:
Dec.
31,
2014
Dec.
31,
2013
Fixed rate debt 1.5 2.0
Floating rate debt 729.0 523.7
Cash and cash equivalents (135.1) (96.7)
Net Debt 595.4 429.0
After interest rate hedge:
Dec.
31,
2014
Dec.
31,
2013
Fixed rate debt 1.5 2.0
Capped floating rate debt 178.8 167.0
Floating rate debt 550.2 356.7
Cash and cash equivalents (135.1) (96.7)
Net Debt 595.4 429.0
Interest rate derivatives
The financial instruments hedging floating rate debt are
classified as cash flow hedges and recognized at fair value.
At the balance sheet date, they represented a total
notional amount of €178.8 million, maturing over the next
four years. Their fair value is calculated using the market
rates prevailing at the balance sheet date as obtained from
financial service companies. The fair value of the Group’s
interest rate cash flow hedges at the balance sheet date
amounted to a latent liability of €1.0 million (as compared
with a liability of €2.0 million in 2013). The net effect of
their variations on the period's income statement
represents a gain of €1.0 million (as compared with a
charge of €0.4 million in 2013).
Sensitivity analysis
The Group's income statement is exposed to risk from the
fluctuation of interest rates on its interest-bearing financial
instruments. Further, the interest rate derivatives qualified
as cash flow hedges have an impact on equity.
Sensitivity to interest-rate fluctuations is calculated on the
basis of interest-bearing non-derivatives and derivative
financial instruments. Non-derivative financial instruments
are the interest-bearing borrowings net of cash and cash
equivalents, and net of interest-bearing loans granted to
third parties or joint ventures. The analysis is based on the
assumptions of constant debt and constant debt
management policy over one year, using indebtedness and
market rates as of December 31, 2014.
On those bases, a simultaneous 1% increase in all interest
rates would lead to an increase of €5.2 million in financial
NOTE 25 - FINANCIAL RISKS AND FINANCIAL INSTRUMENTS
40 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
expenses before tax (as compared with a charge of €3.5
million in 2013), and a decrease of 1% or to 0%, where
applicable, would lead to a decrease of €0.8 million in
financial expenses before taxes (as compared with a charge
of €0.7 million in 2013).
25.1.2 EXCHANGE RATE RISK
Transaction risk
Exchange rate fluctuations have a direct impact on the
Group’s consolidated financial statements, derived from
transactions regarding Group entities that incur revenues
and expenses in currencies other than their functional
currency.
The Group has attempted to develop its production
capacities in the same geographic and monetary areas
where it distributes its products. Moreover, through the
choice of the invoicing currency for certain intra-Group
transactions, the Group aims to offset revenues with costs
in the same currency. In certain unstable currency
countries, the Group may also offset the local currencies
fluctuations with price indexations. Therefore the
remaining exposure on cross-border transactions is
moderate. The currencies to which the Group is most
exposed are the US dollar, the British pound, the Australian
dollar, the Norwegian crown, the Polish zloty, the Russian
ruble and the euro as a foreign currency for certain
subsidiaries, in particular Swedish, Russian, and Serbian
subsidiaries.
The Group has attempted to reduce the impact of short-
term fluctuations of currencies on its revenue through
centralized management of exchange risks and the use of
derivatives. Nevertheless, in the long-term, significant and
long lasting variations in exchange rates could affect the
Group’s competitive position in foreign markets, as well as
its results of operations.
The Group's policy is to hedge approximately 75% of its
remaining net estimated exposure. This exposure includes
exposure recorded on the balance sheet, namely all
recognized trade receivables, trade payables and
borrowings denominated in a foreign currency, and
unrecorded exposure, which consists of forecast sales and
purchases over a six-month period.
Foreign exchange exposures and derivatives
As of the balance sheet date, the exposure recorded in the
balance sheet in the main currencies hedged with
derivatives, and the nominal amount of the derivatives
hedging such recorded exposures, are as follows:
Currency of Exposure Dec. 31, 2014 Dec. 31, 2013
USD GBP AUD EUR USD GBP AUD EUR
Financial receivables and liabilities 66.3 (5.3) 1.0 (9.6) 134.4 (3.9) - 13.0
Trade receivables and payables 0.2 1.2 2.6 3.7 3.5 2.4 2.1 3.4
Nominal amount of derivatives (64.7) 4.5 (3.0) 9.6 (133.3) 1.4 (2.3) (13.4)
Net recorded exposure to main currencies 1.9 0.4 0.6 3.8 4.6 (0.1) (0.2) 3.0
Tarkett uses forward exchange contracts and options when
hedging with derivatives its exposure to foreign currency
risk in respect of both recognized receivables and payables
and forecast transactions that may cover a forward six-
month period. When necessary, forward exchange
contracts are rolled over.
The Tarkett Group classifies the currency hedging contracts
covering operating transactions as cash flow hedges and
records them at fair value in the balance sheet. The fair
value of these contracts at the balance sheet date
amounted to an unrealized liability of €0.5 million (as
compared with an unrealized asset of €0.05 million in
2013). Of this fair value, the amount reported directly in
equity is an unrealized liability of €0.6 million (as compared
with an unrealized liability of €0.1 million in 2013). The
difference is recognized in the income statement and
represents the change in the time value of currency
options hedging forecast transactions and in the fair value
of forward contracts or options hedging recognized
transactions.
The effect on the income statement of the change in value
of these contracts is income of €0.2 million (as compared
with income of €0.5 million in 2013), and all the potential
gains and losses reported directly in equity are expected to
enter into the determination of profit and loss of the
coming 12 months.
Monetary items denominated in foreign currencies
When financing its foreign subsidiaries, the Group incurs
exposure to foreign currency risk on intra-group loans and
borrowings denominated in foreign currencies. The Group
minimizes this risk either (i) by borrowing in the same
currency or (ii) by entering into currency swaps or forwards
reflecting the maturity of the hedged item, with the aim
that fluctuations in the swaps’ fair values will offset, in
profit or loss, the foreign exchange gains and losses arising
from conversion of the hedged monetary items. At
December 31, 2014, the main financial exposures so
covered are the euro against the US dollar for €66.3
million, against the Polish zloty for €21.4 million, against
the British pound for €5.3 million and against the Swedish
crown for €13.1 million. The fair value of these contracts at
the balance sheet date amounted to a latent gain of €0.2
million.
25.2 LIQUIDITY RISKS
25.2.1 FUTURE CASH FLOWS ON FINANCIAL INSTRUMENTS
The following table shows the estimated future cash flows
on interest-bearing loans and borrowings recorded as
liabilities on the balance sheet.
The estimate of the future cash flows on interests is based
on the forecast debt amortization, and the future floating
rate interests are calculated on the assumption of a
crystallization of the interest rates outstanding as of the
closing date, except if a better estimate is available.
NOTE 25 - FINANCIAL RISKS AND FINANCIAL INSTRUMENTS
Tarkett - Annexes to the Consolidated Financial Statements, December 2014 41
Interest-bearing loans
Dec. 31, 2014 Less than 12 months 2 years 3 to 5 years More than 5 years
Carrying
amount
Total
future
cash
flows
Carrying
amount Interest
Carrying
amount Interest
Carrying
amount Interest
Carrying
amount Interest
Total interest-bearing loans
Bank loans 725.8 762.6 36.9 12.0 237.5 9.8 451.4 15.0 - -
Bonds - - - - - - - - - -
Other loans 0.3 0.3 0.2 - 0.1 - - - - -
Bank overdrafts 2.8 2.8 2.8 - - - - - - -
Finance leases 1.6 1.6 0.3 - 0.3 - 0.9 - 0.1 -
Total 730.5 767.3 40.2 12.0 237.9 9.8 452.3 15.0 0.1 -
Other financial liabilities
Trade payables 224.4 224.4 224.4 - - - - - - -
Other financial liabilities non-
current 3.8 3.8 - - 0.5 - 3.2 - 0.1 -
Other financial liabilities current 5.3 5.3 5.3 - - - - - - -
Total 233.5 233.5 229.7 - 0.5 - 3.2 - 0.1 -
TOTAL FINANCIAL LIABILITIES 964.0 1,000.8 269.9 12.0 238.4 9.8 455.5 15.0 0.2 -
Interest-bearing loans
Dec. 31, 2013 Less than 12 months 2 years 3 to 5 years More than 5 years
Carrying
amount
Total
future
cash
flows
Carrying
amount Interest
Carrying
amount Interest
Carrying
amount Interest
Carrying
amount Interest
Total interest-bearing loans
Bank loans 521.6 562.0 22.7 10.2 33.8 9.4 465.1 20.8 - -
Bonds - - - - - - - - - -
Other loans 0.4 0.4 0.1 - 0.1 - 0.2 - - -
Bank overdrafts 1.1 1.1 1.1 - - - - - - -
Finance leases 2.6 2.6 0.6 - 0.6 - 1.2 - 0.2 -
Total 525.7 566.1 24.5 10.2 34.5 9.4 466.5 20.8 0.2 -
Other financial liabilities
Trade payables 219.8 219.8 219.8 - - - - - - -
Other financial liabilities non-
current 4.7 4.7 - - 0.6 - 3.7 - 0.4 -
Other financial liabilities current 5.0 5.0 5.0 - - - - - - -
Total 229.6 229.6 224.9 - 0.6 - 3.7 - 0.4 -
TOTAL FINANCIAL LIABILITIES 755.3 795.7 249.4 10.2 35.1 9.4 470.2 20.8 0.6 -
25.2.2 LIQUIDITY POSITION
As of the balance sheet date, consolidated net debt is
€595.4 million. The Group's debt capacity is €1,150.8
million, used in the amount of €730.6 million (see Note 16).
Including cash and cash equivalents, the Group’s liquidity
position amounts to €555.4 million, and is enough to cover
the financial obligations related to the current net debt.
Dec.
31,
2014
Dec.
31,
2013
Amount available on credit facilities 420.3 642.3
Cash and cash equivalents 135.1 96.7
Total 555.4 739.0
The €450.0 million syndicated facility and the €100.0
million and US$40.0 million term loans contain obligations
which are all based on the main following covenants:
� the ratio to Net debt to EBITDA (as defined in the
credit agreements) must be lower than 3.0;
� the ratio of EBITDA to net interest expense (as defined
in the credit agreements) must be higher than 2.5;
� cross-acceleration above certain materiality
thresholds and material adverse change clauses.
As of December 31, 2014, the Group is in compliance with
these covenants (see Note 16.4).
NOTE 25 - FINANCIAL RISKS AND FINANCIAL INSTRUMENTS
42 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
25.3 CREDIT RISK
Credit risk represents the risk of financial loss for the Group
in the event that a counterparty to a financial instrument
defaults in paying its contractual obligations.
The financial assets potentially bearing this risk are mainly:
� cash deposits;
� financial derivatives;
� accounts receivable;
� loans granted.
The maximum potential credit risk on the financial assets is
equal to their net accounting value less the indemnification
receivable from credit insurance.
25.3.1 CUSTOMER CREDIT RISK
The Group believes that its exposure to counterparty risk is
limited, because of its large number of customers, its
dispersion in many geographical areas, and its follow-up
policy. The Group has established a credit policy that
includes, among other things, a credit limit for each
customer, collections processes, and a computer-aided
credit scoring and customer payment behavior follow-up.
The total of receivables overdue over 60 days amounts to
9.3% of the total amount of accounts receivables as of
December 31, 2014 (8.3% of the total amount of accounts
receivables as of December 31, 2013).
The Group believes that there is no need to assume that
there is risk on outstanding receivables less than 60 days
overdue.
With respect to outstanding receivables that are more than
60 days overdue, the Group believes that risks are limited
given existing procedures for customer risk management
(as detailed above).
25.3.2 CREDIT RISK MANAGEMENT ON EQUITIES AND
DERIVATIVES
The counterparties to the Group’s financial derivatives are
leading banks or state-owned banks, all of which have
business relationships with the Group for debt or cash
management. The Group's policy with regard to
investments and cash deposits is to only invest in liquid
securities and only with the leading credit institutions in
the countries where the investments are made.
The Group is not exposed to a material risk due to any
significant concentration, and does not anticipate any
counterparty default.
The effect of Credit and Debit Valuation Adjustments
(CVA/DVA) on the measurement of the fair value of the
derivative financial instruments was not material as at the
closing date and was therefore not booked.
Dec. 31, 2014
Gross amounts as
presented in the
balance sheet
Impact of offsetting
rules Net amount
Fair value of derivative assets 1.1 (1.1) -
Fair value of derivative liabilities (2.3) 1.1 (1.2)
Total (1.2) - (1.2)
Dec. 31, 2013
Gross amounts as
presented in the
balance sheet
Impact of offsetting
rules Net amount
Fair value of derivative assets 0.6 (0.6) -
Fair value of derivative liabilities (2.9) 0.6 (2.3)
Total (2.3) - (2.3)
25.4 FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
Dec. 31, 2014 Fair Value
Category
Hedging
Derivatives
Assets
designatived at
fair value
through profit
and loss
Loans and
receivable
s
Liabilities
at
amortized
cost
Carrying
amount Fair value
Non current financial assets valued at amortized value Level 2 - - 17.9 - 17.9 17.9
Non current financial assets valued at fair value Level 2 1.1 9.8 - - 10.9 10.9
Accounts receivable - - 312.0 - 312.0 -
Cash and cash equivalents Level 2 - 135.1 - - 135.1 135.1
Interest-bearing loans and borrowings Level 2 - - - 730.5 730.5 730.5
Other financial liabilities, non-current Level 2 - - - 3.8 3.8 4.3
Other financial liabilities, current Level 2 2.3 - - 3.0 5.3 5.3
Accounts payable - - - 224.4 224.4 -
Assets held for sale - - - - - -
NOTE 26 - LEASE COMMITMENTS
Tarkett - Annexes to the Consolidated Financial Statements, December 2014 43
Dec. 31, 2013 Fair Value
Category
Hedging
Derivatives
Assets
designatived at
fair value
through profit
and loss
Loans and
receivable
s
Liabilities
at
amortized
cost
Carrying
amount Fair value
Non current financial assets valued at amortized value Level 2 - - 7.6 - 7.6 7.6
Non current financial assets valued at fair value Level 2 0.7 19.2 - - 19.9 19.9
Accounts receivable - - 279.7 - 279.7 -
Cash and cash equivalents Level 2 - 96.7 - - 96.7 96.7
Interest-bearing loans and borrowings Level 2 - - - 525.7 525.7 525.7
Other financial liabilities, non-current Level 2 - - - 4.7 4.7 4.7
Other financial liabilities, current Level 2 3.1 - - 1.9 5.0 5.0
Accounts payable - - - 219.8 219.8 -
NOTE 26 - LEASE COMMITMENTS
The Group’s operating lease commitments are mainly commitments for buildings, vehicles, computer hardware and software,
and offices.
Future minimum rental commitments under operating leases with initial or remaining non-cancellable terms in excess of one
year, are summarized below:
Operating leases Dec. 31, 2014 Dec. 31, 2013
Less than 1 year 20.9 13.6
1 to 5 years 32.2 21.9
More than 5 years 3.5 3.4
Total future minimum lease payments 56.5 38.9
NOTE 27 - OTHER CONTINGENCIES
Asbestos
In the United States, the Group has been a defendant in
lawsuits by third parties relating to personal injury from
asbestos. Expected costs of the current or future cases are
covered by Group’s insurances, sellers’ guarantees granted
by third-parties and by provisions that management, based
on the advice and information provided by its legal
counsel, considers to be sufficient.
Guarantees
Tarkett:
� has granted a General Indemnity Agreement of a
maximum amount up to $75.0 million in favor of
Federal Insurance Company in consideration of an
agreement to execute security bonds in favor of
Fieldturf Tarkett Inc. As of the closing date,
outstanding security bonds, either active or in the
process of restitution, total $75.6 million;
� has provided its guarantee on 50% of a credit facility
of up to €10.0 million granted to its joint venture
subsidiary Laminate Park GmbH & Co KG;
� has provided its guarantee to Swedish pension insurer
Pri-Pensionsgaranti to secure the pensions
commitments of Tarkett AB for an amount of SEK
173.1 million;
� has provided its guarantee to a raw materials supplier
of its subsidiary Morton Extrusion Technik to secure
its payables up to €5.0 million;
� has provided its guarantee to Tarkett Finance Inc. in
order to permit it to become an additional lender on
the Syndicated Revolving Credit Facility signed on June
27, 2011 up to a maximum amount of $100.0 million;
� has provided its guarantee as parent company to the
lending bank of an asset backed facility of €55.0
million to the extent that this facility, aimed to finance
the Group, was subscribed by its subsidiary Tarkett
France SAS for technical reasons. Tarkett has also
provided its guarantee as parent company to the
banks of Tarkett Limited (UK) and Poligras (Spain) to
secure technical overdraft facilities for these
companies, for a total amount of €3.9 million.
� Furthermore, in the ordinary course of business,
Tarkett and several of the Group's subsidiaries have
given payment guarantees to various suppliers,
customers, government offices, lessors, and cash
pooling or trade finance operators. These guarantees
are not material either individually or in the
aggregate.
Other
In late March 2013, the “Autorité de la concurrence”
(French Competition Authority) began an investigation
against several flooring manufacturers, including Tarkett, in
relation to possible anti-competitive practices in the French
market for vinyl flooring.
The investigations remain ongoing. The timing of their
finalization is currently not known and it is not yet possible
to evaluate their potential outcome.
NOTE 28 - RELATED PARTIES
44 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
NOTE 28 - RELATED PARTIES
In compliance with IAS 24, the Group has identified the
following related parties:
1. Joint ventures;
2. The Group's principal shareholders, the Société
d'Investissement Deconinck (“SID”) SA and KKR
International Flooring 2 SARL;
3. The members of Tarkett's Management Board and
Supervisory Board.
Transactions entered into during the first half of the year
with the Group's joint ventures and principal shareholders
are detailed below.
28.1 Joint ventures
All transactions between fully consolidated entities are
eliminated in consolidation.
Transactions with related entities and jointly held entities
are entered into on arm's length terms.
Joint ventures
The Group has only one joint venture, Laminate Park GmbH
& Co KG in Germany, which is held jointly with Sonae
Industria.
The Group’s transactions with its joint venture may be
summarized as follows:
Dec.
31,
2014
Dec.
31,
2013
Joint ventures
Sale of goods to Tarkett 29.7 32.9
Purchase of services from Tarkett (1.7) (2.1)
Loans from Tarkett 9.2 14.2
28.2 Principal shareholders
Société Investissement Deconinck holds 50.2% of Tarkett’s
share capital and as such, controls and coordinates the
Group's activities. Tarkett is party to a management
services agreement with SID, with the services
remunerated on the basis of the actual costs incurred by
SID.
As of December 31, 2014, SID had invoiced a total of €0.5
million in fees under the assistance agreement (as
compared with €0.6 million as of December 31, 2013).
As of December 31, 2014, Tarkett had invoiced a total of
€0.1 million to SID in services (as compared with no
amounts invoiced by Tarkett to SID in 2013).
KKR International Flooring 2 SARL (KKR) holds 21.5% of
Tarkett’s share capital and as such, has significant
influence. SID and KKR are contractually bound by a
shareholders' agreement.
In 2013, KKR International Flooring 2 SARL invoiced a total
of €0.6 million in fees under the assistance agreement. This
agreement was terminated in 2013.
NOTE 29 - SUBSEQUENT EVENTS
As of the date hereof, there are no material subsequent events to be disclosed.
NOTE 30 - PRINCIPAL CONSOLIDATED ENTITIES
Tarkett - Annexes to the Consolidated Financial Statements, December 2014 45
NOTE 30 - PRINCIPAL CONSOLIDATED ENTITIES
Companies Country Consolidation
method
% ownership as
of Dec. 31, 2014
% ownership as of
Dec. 31, 2013
G: Fully consolidated
E: Accounted for using the equity
method
NC: Not consolidated
Tarkett AB Sweden G 100% 100%
Tarkett AS Norway G 100% 100%
Tarkett OY Finland G 100% 100%
Tarkett Belux Belgium G 100% 0%
Tarkett INC. (Delaware) (TKT) US G 100% 100%
Tarkett Australia Pty. Ltd. Australia G 100% 100%
Tarkett A/S Denmark G 100% 100%
Tarkett Polska Sp.z.o.o. Poland G 100% 100%
Tarkett Jaslo Poland G 100% 0%
Fademac Brazil G 100% 100%
Tarkett Aspen Zemin AS Turkey G 70% 70%
Tarkett Flooring Mexico Mexico G 100% 0%
Laminate Park GmbH & Co KG Germany E 50% 50%
Tarkett Holding GmbH Germany G 100% 100%
Tarkett France Parent company 100% 100%
Tarkett Services France G 100% 100%
Tarkett GDL SA Luxembourg G 100% 100%
Tarkett Capital SA Luxembourg G 100% 100%
Tarkett SpA Italy G 100% 100%
Tarkett - Produtos Internacion Portugal G 100% 100%
Tarkett Monoprosopi Ltd. Greece G 100% 100%
Tarkett Floors S.A. Spain Spain G 100% 100%
Tarkett Asia Pacific Ltd. Hong Kong NC 0% 100%
Tarkett Hong Kong Ltd. Hong Kong G 100% 70%
Tarkett Floor Covering Co, Ltd China G 100% 70%
Tarkett Industrial Co, Ltd China G 100% 0%
Tarkett France France G 100% 100%
Tarkett Bois SAS France G 100% 100%
Fieldturf Tarkett SAS France G 100% 0%
Tarkett Inc. Canada G 100% 100%
ZAO Tarkett Russia G 100% 100%
ZAO Tarkett Rus Russia G 100% 100%
Tarkett Sommer OOO Russia G 100% 100%
Tarkett d.o.o. Serbia G 100% 100%
Tarkett SEE Serbia G 100% 100%
Tarkett UA Ukraine G 100% 100%
Tarkett Kazakhstan Kazakhstan G 100% 100%
Tarkett Kft Hungary G 100% 100%
Tarkett Bel Belarus G 100% 100%
Fieldturf Poligras SA Spain G 100% 100%
M.E.T. GmbH Germany G 100% 100%
Fieldturf Benelux BV Netherlands G 100% 0%
Desso BV Netherlands G 100% 0%
Desso Holding BV Netherlands G 100% 0%
Desso BV Belgium G 100% 0%
Tarkett Ltd. Great Britain G 100% 100%
Somalré Luxembourg G 100% 100%
Sintelon RS Serbia G 100% 100%
Sintelon doo Serbia G 100% 100%
NOTE 30 - PRINCIPAL CONSOLIDATED ENTITIES
46 Tarkett - Annexes to the Consolidated Financial Statements, December 2014
Companies Country Consolidation
method
% ownership as
of Dec. 31, 2014
% ownership as of
Dec. 31, 2013
Galerija Podova Serbia G 100% 100%
Galerija Podova - Sintelon Bosnia G 100% 100%
Sintelon UA Ukraine G 100% 100%
Vinisin Ukraine G 100% 100%
Tandus Centiva Inc US G 100% 100%
Nova Scotia Ltd Canada G 100% 100%
Tarkett Flooring Singapore Singapore G 100% 100%
Tandus Centiva US LLC US G 100% 100%
CAF Extrusion LLC US NC 0% 100%
Tandus Centiva Limited Canada G 100% 100%
Tandus Flooring Suzhou Co. Ltd. China G 100% 100%
Tandus Centiva GP Canada G 100% 100%
Tandus Flooring India India G 100% 100%
Tarkett Enterprises Inc. US G 100% 100%
Domco Products Texas Inc. (AZR) US G 100% 100%
Tarkett Alabama Inc. (NAF) US G 100% 100%
Tarkett Finance Inc. US G 100% 100%
Tarkett USA Inc. (DUS) US G 100% 100%
Texas Tile Manufacturing LLC US G 100% 100%
Tarkett IFA Inc. US NC 0% 100%
Fieldturf Inc. Canada G 100% 100%
L.E.R. Inc. US G 100% 0%
Easy Turf US G 51% 51%
Beynon Sport Surfaces Inc. US G 100% 100%
Fieldturf Tarkett USA Holding US G 100% 100%
Fieldturf USA Inc. US G 100% 100%
Johnsonite Inc. US NC 0% 100%
Johnsonite Canada Inc. Canada G 100% 100%
Diamond W US G 100% 100%
The percentages of equity and voting rights held for each entity of the Group are identical. They include put options, where
applicable.
AEPA IFB #016-H Tracks & Courts Page26of68DueDate:OCTOBER7,2015,1:30pmEDT Part C: Bid Forms
AEPAFORMF.1:COMPLIANCE
AEPAIFB#016‐HAthleticSurfaces–TracksandCourts
NAMEOFBIDDER:FieldTurfUSA,Inc.(BeynonSportsProducts&Services)
INSTRUCTIONS:
1. Thisformisthree(3)pageslong.Thebidder’sauthorizedrepresentativemustsigntheformattheend.2. The criteria listed below are derived from the Part B: Bid Specifications this IFB. Other than industry
requirements established in federal, state or local statutes, exceptions/deviationsmay be proposed aslongastheyareexpresslynotedbelowandclarifiedonFormF.2.,whichfollows.Pleaseunderstandthatthestatedspecificationsrepresent themostdesirableattributesof theproductsandservicessoughtbyAEPAanditsAEPAMemberAgencies.
3. AEPAunderstands thatnotallbiddersprovideall commodities indicated in thespecifications. Biddersmay propose specific, similar and/or alternativemanufacturer’s product lines and/or serviceswithoutprejudiceaslongastheproposedproductsandservicesmeetorexceedthespecificationsinPartB:BidSpecificationsofthisIFB.
4. Foreachcriterionbelow,checkeither“Comply”ifitalignswiththecompany’sabilitytoprovideproductsandservicesor“Deviate”ifitdoesnot.
5. Iftherearenodeviationstothespecifications,indicatethatbycheckingtheappropriateboxonFormF.2andsignit.
6. ScanthecompletedformtoaPDFfileandtitleasinstructedinPartC(thissection),page2,#5.
Item Description Comply Deviate
6.1 The Vendor Partner will have access to a full inventory of the awarded product line.
X
6.2 The Vendor Partner shall maintain a minimum monthly overall average fill rate of 95% or above. Line items that are reordered, backordered, or partially filled are not considered filled line items when calculating this service level.
X
6.3 Orders must be shipped within 48 hours after receipt of an order 90% of the time. The Vendor Partner will notify the Buyer if product ordered cannot be shipped within this time period to provide the opportunity to secure product elsewhere.
X
6.4 Vendor Partners must be a manufacturer’s authorized sales and service dealer for all proposed equipment/software. An authorized sales and service dealer is defined in this solicitation as one purchasing their products for resell directly from the manufacturer(s) or the manufacturer’s approved channels. Products that result from new authorized sales and service dealer arrangements between the Vendor Partner and the manufacturer during the term of this contract may be added and offered through the AEPA contract.
X
6.5 All charges and components necessary for performance of the contract shall be clearly identified even if such are not specifically addressed in any paragraph or sub-paragraph or form that is a part of this request.
X
6.6 If the Vendor Partner intends to utilize independent agents/distributors, subcontractors and/or third-party agents to perform and/or provide any part of the products and services offered herein, the Vendor Partner must identify all providers and any and all associated costs with these providers.
X
6.7 Optional services must be identified separately, and must include clear descriptions of proposed services.
X
6.8 Vendor Partners must provide a product or mix of products in a manner that will allow Buyers to migrate to emerging technologies/services and between legacy technologies with no penalty charge associated with maintaining the most appropriate selections of goods and services throughout the life of the contract.
X
AEPA IFB #016-H Tracks & Courts Page27of68DueDate:OCTOBER7,2015,1:30pmEDT Part C: Bid Forms
Item Description Comply Deviate 6.9 Vendor Partners must be able to supply paper catalogs where requested.
The catalog shall have a cover label indicating that the catalog’s contents are available through the participating Member Agency and the AEPA contract. The label shall identify the agency’s contract number, discount level(s) and any special ordering instructions.
X
6.10 Packing slips shall accompany all deliveries and shall contain Buyer’s purchase order number, vendor name and name of article. Cartons shall be identified by purchase order number and vendor name.
X
6.11 Orders not filled and partials shall be indicated on the packing list. Vendor Partner shall inform member of anticipated availability date for unfilled and partial orders.
X
6.12 All products sold by the Vendor Partner must be new. Only the newest versions of software and equipment will be bid. Older versions will only be sold, if specifically requested. Vendor Partner may offer reconditioned products as a Voluntary Alternate; such items shall be marketed and labeled as being reconditioned.
X
6.13 Products that have a 30/60/90 day money back guarantee will be clearly identified in the catalog and on the web site (if applicable).
X
6.14 Vendor Partner has the option to offer private label products. Vendor Partner shall maintain the same manufacturer specifications for private label products throughout the term of contract. Any change of manufacturers for a private label shall result in offerings equal to or superior to the originally approved manufacturer at a price equal to or lower than the original offering.
X
6.15 Vendor Partner must maintain a toll free technical support line open 8 a.m. Eastern Time zone until 5 p.m., Pacific Time zone, Monday through Friday. Calls must be answered by a live US technician.
X
6.16 Vendor Partner must have a 24-hour toll-free order fax line. X
6.17 If the Vendor Partner makes an error in pricing (typographical or photographic error, for example), the Buyer reserves the right to return the product. The Vendor Partner agrees to pay for cost of any returned product due to a pricing error.
X
6.18 Vendor Partner shall provide a Safety Data Sheet (SDS) for all items sold, if required. A separate sheet shall be provided for each individual item when purchase is made.
X
6.19 Orders that are $50.00 or more shall include free shipping. Vendor Partner shall bid a flat rate for all orders that are less than $50.00 regardless of where to be shipped in the continental United States.
X
Category Specifications
Item Description Comply Deviate
7.1 The standards and specifications provided below are intended to establish minimum requirements and provide a general overview of the quality and type of products and services being requested.
X
7.1.1 Any products and services offered are to meet or exceed all local and state building codes.
X
7.1.2 All surface offered are to meet the requirements of ASTM F 2157-09 Standard Specification for Synthetic Surfaced Running Tracks - This specification establishes the minimum performance requirements and classification when tested in accordance with the procedures outlined within this specification.
X
7.1.3 The products and services may include, but are not limited to, the following.
X
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7.1.3.1 Provide technical and consulting services relating to running track or athletic court surface design, characteristics, construction, and integration into the development of a new athletic or recreational facility.
X
7.1.3.2 Provide existing site inspection and investigation to identify soil conditions existing at the site in order to take into account the conditions found in the designing of athletic and recreational fields. The investigation shall include, but not be limited to:
X
7.1.3.3 Stripping, placement of backfill and base construction in order to ensure the minimization of the risk of problems due to subsoil and subgrade conditions.
X
7.1.3.4 Soil inspection for the existence of peat or other organic soils at the site.
X
7.1.3.5 Inspection for uncontrolled fill materials or waste materials at the site.
X
7.1.3.6 Inspection for expansive soils at the site. X
7.1.3.7 High ground water conditions or surface water retention areas (low area flooding).
X
7.1.3.8 Provide all labor, materials, equipment and drawings required to provide design services for a project cost proposal with a complete scope of work, including all products, services and running track or athletic court specifications with their associated costs. A preliminary construction time schedule shall be a part of the project proposal.
X
7.1.3.9 Provide all labor, materials, equipment, project drawings and construction documents necessary to establish, construct, install lines and markings required to complete the running track or athletic court as identified and specified within the project documents for the individual Member's project scope of work and documents.
X
7.1.3.10 Provide all labor, materials and equipment required to assess and evaluate existing facilities, and develop and establish a plan of action for maintenance, repair and/or renovation of the existing athletic or recreational surface to condition as required by the Member.
X
7.1.3.11 Provide ongoing technical support and training services for AEPA Member's staff relating to the maintenance and operation of these types of surfaces to ensure their good operational condition.
X
7.1.3.12 The running track or athletic court should provide the performance characteristics, components, and construction that meet the needs of the declared use and/or functions.
X
7.1.3.13 The running track or athletic court and all of its components should be resistant to moisture, rot, mildew, bacteria, fungus growth, ultraviolet ray degradation, non-toxic, not cause commonly known allergic reactions at all field locations, and meet AEPA Member local state and environmental requirements.
X
7.1.3.14 Each running track or athletic court should be constructed to resist damage from wear and tear during athletic and recreational usage.
X
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7.1.4 Any Project to Include: X
7.1.4.1 Assess and determine existing site conditions and Member's expectations for the project.
X
7.1.4.2 Develop a proposed solution to conform to and meet the Member's expectations while considering and ensuring the following:
X
7.1.4.3 The solution proposed is adequate and functional within the existing site conditions and will comply with all building codes.
X
7.1.4.4 Provide labor, materials, equipment and supervision necessary to complete installation of running track or athletic court, including the following:
X
7.1.4.4.1 Site inspection and investigation. X
7.1.4.4.2 Site preparation and sub-base. X
7.1.4.4.3 Inspection and approval of sub-base. X
7.1.4.4.4 Installation of proposed running track and athletic court system with accessories, striping and equipment.
X
7.1.4.4.5 Provide cost estimates and information relating to after-the-sale ongoing inspection and maintenance services to ensure proper operation and upkeep of the running track and athletic court.
X
7.1.4.4.6 Construction and installation services to prepare and install proposed running track or athletic court on the designated site in accordance with the shop drawings, striping plan and manufacturer's instructions and specifications.
X
7.1.5 Guarantee the usability and playability of the synthetic turf system for its intended uses for an five (5) year period commencing with the date of substantial completion and acceptance by the Member for surface and ten (10) years for the base. The warranty coverage shall not be limited to the amount of usage.
X
7.1.6 Prior to order of materials, the contractor shall submit the following:
X
7.1.6.1 Sample warranty. X
7.1.6.2 Seam layout of the field and striping plans. X
7.1.6.3 Details on construction, especially any details that may deviate from plans and specifications.
X
7.1.6.4 Prior to the beginning of installation, the manufacturer/installer of the synthetic turf shall inspect the sub-base and supply a Certificate of Sub-Base Acceptance for the purpose of obtaining manufacturer's warranty for the finished synthetic playing surface.
X
7.2 Track Surface- Latex X
7.2.1 Latex surfaces are generally defined as rubber particles of a specified size, shape and composition, bound together by a water-based resin binder. They are resilient, all weather surfaces. Most are permeable.
X
7.2.2 Materials X
7.2.2.1 Water- Water used in dilution must be fresh and potable. X
7.2.2.2 Primer X
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7.2.2.2.1 Most latex systems require a primer application to promote adhesion between the resilient surface and the asphalt or concrete base.
X
7.2.2.2.2 Depending on the proprietary system, the binder may be latex or an asphalt emulsion.
X
7.2.2.3 Asphalt Emulsion - Asphalt emulsion is an asphaltic cement suspended in a water vehicle.
X
7.2.2.4 SBR Latex Binder X
7.2.2.4.1 SBR latex is water-based resin used to bind rubber particles. X
7.2.2.4.2 It is comprised of varying proportions of styrene and butadiene monomer in a water vehicle.
X
7.2.2.4.3 Other types of latex binders used as track binders include vinyl, acrylics and a variety of combinations.
X
7.2.2.5 SBR Rubber Particles X
7.2.2.5.1 SBR rubber particles are generally post-industrial by-products that have been shredded or chopped to a specific size, shape and gradation.
X
7.2.2.5.2 The characteristics of the rubber particles selected to be defined in the specification.
X
7.2.2.6 EPDM Rubber X
7.2.2.6.1 EPDM rubber highly pigmented rubber compound chopped to a specific size for use as a wearing surface.
X
7.2.2.6.2 Available in a wide range of colors and sizes. X
7.2.2.6.3 The compatibility of the EPDM granules and the latex binder be determined prior to installation.
X
7.2.2.7 Surface Coating X
7.2.2.7.1 Surface coating is the final wearing finish applied to the resilient surface.
X
7.2.2.7.2 It is used to provide protection from ultraviolet light degradation and to provide additional wear resistance and color uniformity.
X
7.2.2.7.3 The coating may be formulated with a variety of binder types, including SBR, acrylic latex or polyurethane. The system installer should insure compatibility.
X
7.2.3 Systems X
7.2.3.1 The materials listed above may be used in a wide variety of combinations to meet the requirements of AEPA Member. In no case should the recommended thickness of the system selected be less than 1/2" (12.5mm) when measured in accordance with USTC & TBA standards. The four general typed of latex track surfaces are as follows:
X
7.2.3.1.1 Black Mat - A black mat system is composed of black SBR rubber or black EPDM rubber particles bound by SBR latex or an approved alternate water-based resin. The surface coating is a highly pigmented black SBR or acrylic latex.
X
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7.2.3.1.2 Colored Binder - This system consists of black EPDM or black SBR rubber particles bound by a pigmented latex binder or an approved alternate water-based resin. The surface coating should be a highly pigmented UV stable coating of adequate thickness and durability to resist wear patterns with normal use.
X
7.2.3.1.3 Color Sandwich - This system of black EPDM or black SBR rubber particles bound by latex has a wearing course of at least 1/8" (3mm) of pigmented (other than black) EPDM granules bound by pigmented SBR latex binder or an approved alternative water-based binder. The surface coating should be a highly pigmented, UV stable coating to provide uniform color to the system.
X
7.2.3.1.4 Full Depth Color - This system consists of colored EPDM granules (not black) bound by pigmented SBR latex binder or an approved alternative water-based binder. The surface coating should be a highly pigmented, UV stable coating to provide strength and color uniformity. This system is used in high traffic areas in conjunction with either the Color Sandwich or the Colored Binder System.
X
7.2.4 Thickness and Specific Gravity X
7.2.4.1 Each surface system should be at least 1/2" (12.5mm) in total thickness to allow for variation in the underlayment and to prevent spiked shoes from penetrating to the base layer, potentially disrupting the bond. Both SBR and EPDM rubber particles will vary in specific gravity and bulk density value of rubber. This coupled with the application methods, shape and size will affect the rubber required to achieve 1/2" thickness. The chart below is intended for guidance for 1/2":
X
Color/Type Size/Shape Specific Gravity
Lbs./Sq. Yd. X
Black SBR Granules 1.15 - 1.40 10.0 - 12.0 X
Black SBR Medium Strands
1.15 - 1.25 8.5 - 10.0 X
Black EPDM
Granules 1.30 - 1.50 10.5 - 12.0 X
Colored EPDM
Granules 1.40 - 1.60 13.0 - 15.0 X
7.2.5 Variety of Shape, Size & Composition X
7.2.5.1 Each system manufacturer makes specific recommendations on the ratio of binder to rubber particles The variety of particles, their shape, size and composition will cause the volume of binder to vary. Each system should specify the ratios required in the following format:
X
7.2.5.1.1 Total dry pounds of latex undiluted binder. X
7.2.5.1.2 Total pounds of the specified rubber particle. X
7.2.5.1.3 For colored binder and color sandwich systems, the quantity of pigment per 55 gallons of latex binder.
X
7.2.6 Material Delivery X
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7.2.6.1 All material must be delivered to the job site in labeled and marked containers.
X
7.2.6.2 All packaging and excess materials must be disposed of in accordance with state, local and federal standards and regulations.
X
7.2.6.3 Do not allow liquid binders to freeze. X
7.2.6.4 Quantities needed to complete the project in accordance with the manufacturer's specifications should be verified.
X
7.2.7 Installation Equipment X
7.2.7.1 All installation equipment including mixers, pavers, sprayers and hand tools should be kept free of moisture while in use.
X
7.2.7.2 Tools to be cleaned daily. X
7.2.7.3 No equipment or vehicles used in the installation process should leak any gas, petroleum products, solvents, etc.
X
7.2.8 Surface Preparation X
7.2.8.1 The asphalt or concrete base should be sufficiently cured and cleaned in order for work to progress.
X
7.2.8.2 Recommended cure times - 14 days for asphalt, 28 days for concrete.
X
7.2.8.3 Prior to installation of the latex track system, the entire base should be checked for planarity and surface tolerance.
X
7.2.8.4 Any areas that vary +/- 1/4" measured with a 10' straightedge in any direction should be patched with a compound compatible with the asphalt or concrete base and approved by the latex track manufacturer.
X
7.2.8.5 After patching, the surface should not allow water to stand greater than 1/16" deep one hour after rain has ended.
X
7.2.9 Installation X
7.2.9.1 Latex track surfacing may be applied successfully by a variety of application methods.
X
7.2.9.1.1 Layered Installations will specify the volume/lbs. of surfacing to be placed in each layer.
X
7.2.9.1.2 Temperature & Humidity X
7.2.9.1.2.1 Latex track surfacing is dependent on evaporation for drying and curing.
X
7.2.9.1.2.2 No material may be placed if ambient temperature is not at least 50 degrees F and rising.
X
7.2.9.1.2.3 Relative humidity above 50% will increase the drying time. X
7.2.9.1.2.4 Low temperature and high humidity may lead to incomplete curing.
X
7.2.9.1.3 Surface Thickness - Before the final surface coating is applied, the owner and the contractor will determine that the desired surface thickness has been achieved by checking the surface in accordance with USTC & TBA test methods.
X
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7.2.10 Line Markings X
7.2.10.1 The surface system manufacturer must approve the type and brand of marking paint used.
X
7.2.10.2 All lane an event markings should be in accordance with the applicable governing body.
X
7.3 Track Surface- Polyurethane Tracks Base Mat X
7.3.1 A polyurethane base mat system is a homogenous blend of EPDM or SBR rubber granules and polyurethane binders that are evenly spread in a monolithic application over an asphaltic or concrete base. The system is a resilient all weather surface designed to allow moisture to pass through the surface. The system has a smooth finish and may be applied for both indoor and outdoor use.
X
7.3.2 Materials - A variety of products may be used in the construction of the track surface.
X
7.3.2.1 Primer X
7.3.2.1.1 The primer is a mixture of polyurethane binder and a viscosity reduction vehicle that allows for a light film application.
X
7.3.2.2 Polyurethane X
7.3.2.2.1 The polyurethane binder is a single component, 100% solids, moisture cure, elastic pre- polymer, designed to bind rubber granules together.
X
7.3.2.3 SBR/EPDM Black Rubber X
7.3.2.3.1 Fully cured rubber granules that may either be ambient or cryogenically ground from post- industrial by-products to a size of not less than 1 nor more than 4mm.
X
7.3.2.3.2 The general cut of the granules should be cubicle, should contain less than 4% dust and be free of foreign debris and should not contain any other color within the granule.
X
7.3.2.4 Colored EPDM Rubber X
7.3.2.4.1 Colored EPDM granules should be ground from fully cured virgin slabs of peroxide- or sulfur- cured rubber (the curing process must be compatible with the polyurethane chemicals being used).
X
7.3.2.4.2 The EPDM content should be not less than 20%. The general cut of the granules should be cubicle and they should contain less than 4% dust.
X
7.3.3 Thickness, Weight and Specific Gravity X
7.3.3.1 Each surface system should be at least 1/2" (12.5mm) in total thickness to allow for variation in the underlayment and to prevent spiked shoes from penetrating to the base layer, potentially disrupting the bond.
X
7.3.3.2 The total weight of the system is contingent upon the depth of the surface and the specific gravity of the materials.
X
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7.3.3.3 Both SBR and EPDM rubber particles will vary in specific gravity and bulk density value of rubber. This coupled with the application methods, shape and size will affect the rubber required to achieve 1/2" thickness. The chart below is intended for guidance. Color/Type per 1/8":
X
Color/Type Size/Shape Specific Gravity
Shore A Harness
X
Black SBR 1-4 mm Granules
1.15 - 1.40 55-70 X
Black SBR 1-4 mm Granules
1.20 - 1.50 55-70 X
Black EPDM 1-4 mm Granules
1.40 - 1.60 55-70 X
7.3.4 Material Delivery X
7.3.4.1 All materials should be delivered to the job site in labeled and marked containers.
X
7.3.4.2 Quantities needed to complete the project in accordance with the manufacturer's specifications should be verified.
X
7.3.4.3 All materials should be located to allow for work to proceed without interruption.
X
7.3.4.4 Do not allow liquid binders to freeze. X
7.3.4.5 All packaging and excess materials must be disposed of in accordance with state, local and federal standards and regulations.
X
7.3.5 Installation Equipment X
7.3.5.1 All installation equipment including mixers, pavers, sprayers and hand tools should be kept free of moisture while in use.
X
7.3.5.2 Tools to be cleaned daily. X
7.3.5.3 No equipment or vehicles used in the installation process should leak any gas, petroleum products, solvents, etc.
X
7.3.6 Surface Preparation X
7.3.6.1 The asphalt or concrete base should be sufficiently cured and cleaned in order for work to progress. Recommended cure times - 14 days for asphalt, 28 days for concrete.
X
7.3.6.2 Prior to installation of the track surface system, the entire base should be checked for planarity and surface tolerance.
X
7.3.6.3 Any areas that vary +/- 1/4" when measured with a 10' straightedge in any direction should be patched with a compound compatible with the base material and approved by the manufacturer of the track surfacing system.
X
7.3.6.4 After patching, the surface should not allow water to stand greater than 1/16" deep one hour after rain has ended.
X
7.3.7 Installation X
7.3.7.1 Primer X
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7.3.7.1.1 The surface should be primed with the appropriate polyurethane primer using spray equipment or rollers.
X
7.3.7.1.2 Application rates range between 0.18 - 0.27 lbs. per square yard. X
7.3.7.1.3 For an asphalt base, primer application may be reduced by the contractor when extreme heat conditions soften the asphalt.
X
7.3.7.1.4 Some manufacturers' systems will not require a primer. X
7.3.7.2 Mixing X
7.3.7.2.1 The rubber granules and polyurethane binder should be accurately measured and placed in a clean dry mixer and mixed until all granules are thoroughly coated with the polyurethane binder.
X
7.3.7.2.2 No evidence of water may exist during the mixing process. X
7.3.7.2.3 The mixing ratio of rubber to binder should not be less than 5 parts rubber to 1 part binder as determined by the weight of the products.
X
7.3.7.2.4 The pot life of the mix should not be less than 45 minutes. X
7.3.7.2.5 No agents are to be added to extend pot life. X
7.3.7.3 Placement of Base Mat X
7.3.7.3.1 The prepared material is placed evenly in front of the paving machine.
X
7.3.7.3.2 The machine should be operated at a speed and with the screed bar at an angle to provide a tight and smooth surface, free of chatter marks and voids.
X
7.3.7.3.3 The screed bars are to be constantly heated and should oscillate. X
7.3.7.3.4 Material should be placed at the specified depth in a single application and allowed to cure.
X
7.3.7.4 Trowel Work X
7.3.7.4.1 All seams are to be troweled smooth within the pot life of the material. All edges should be straight and rounded by turning the trowel. All cold dry seams should be cut straight at an inward angle and primed prior to commencing with subsequent work.
X
7.3.7.5 Arid Climates X
7.3.7.5.1 To aid in the curing process in arid climates, it may be necessary to mist the surface with water upon completion of the day's work.
X
7.3.7.6 Line Markings X
7.3.7.6.1 The surface system manufacturer must approve the type and brand of marking paint used. All lane and event markings should be in accordance with the applicable governing body.
X
7.4 Track Surface - Polyurethane Tracks Base Mat Structural X
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7.4.1 The polyurethane base mat structural spray system is a homogenous blend of EPDM or SBR rubber granules and polyurethane binders. The base layer is spread evenly in a monolithic application over an asphaltic or concrete base and followed with a structural spray-applied polyurethane and rubber blended coating. The system is a resilient all weather surface designed to allow moisture to pass through the surface. It has a textured finish and is used primarily in outdoor applications.
X
7.4.2 Materials X
7.4.2.1 Primer X
7.4.2.1.1 The primer is a mixture of polyurethane binder and a viscosity reduction vehicle that allows for a light film application.
X
7.4.2.2 Polyurethane X
7.4.2.2.1 The polyurethane binder is a single component, 100% solids, moisture cure, elastic pre- polymer, designed to bind rubber granules together.
X
7.4.2.3 SBR/EPDM Black Rubber X
7.4.2.3.1 Fully cured rubber granules that may either be ambient or cryogenically ground from post- industrial by-products to a size of not less than 1 nor more than 4mm.
X
7.4.2.3.2 The general cut of the granules should be cubicle. They should contain less than 4% dust and be free of foreign debris.
X
7.4.2.3.3 They should not contain any other color within the granule. X
7.4.2.4 Colored EPDM Rubber X
7.4.2.4.1 Colored EPDM granules should be ground from fully cured virgin slabs of peroxide- or sulfur- cured rubber (the curing process must be compatible with the polyurethane chemicals being used).
X
7.4.2.4.2 The EPDM content should be not less than 20%. The general cut of the granules should be cubicle and they should contain less than 4% dust.
X
7.4.2.5 Colored EPDM Rubber X
7.4.2.5.1 Colored EPDM Rubber (Structural Spray) Same as Colored EPDM Rubber, above, but the gradation of the granules should range from 0.5mm to a maximum of 3mm.
X
7.4.3 Thickness, Weight and Specific Gravity X
7.4.3.1 Each surface system should be at least 1/2" (12.5mm) in total thickness to allow for variation in the underlayment and to prevent spiked shoes from penetrating to the base layer, potentially disrupting the bond.
X
7.4.3.2 The total weight of the system is contingent upon the depth of the surface and the specific gravity of the materials.
X
7.4.3.3 Both SBR and EPDM rubber particles will vary in specific gravity and bulk density value of rubber. This coupled with the application methods, shape and size will affect the rubber required to achieve 1/2" thickness.
X
7.4.4 Material Delivery X
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7.4.4.1 All materials should be delivered to the job site in labeled and marked containers.
X
7.4.4.2 Quantities needed to complete the project in accordance with the manufacturer's specifications should be verified.
X
7.4.4.3 All materials should be located to allow for work to proceed without interruption.
X
7.4.4.4 Do not allow liquid binders to freeze. X
7.4.4.5 All packaging and excess materials must be disposed of in accordance with state, local and federal standards and regulations.
X
7.4.5 Installation Equipment X
7.4.5.1 All installation equipment including mixers, pavers, sprayers and hand tools should be kept free of moisture while in use.
X
7.4.5.2 Tools to be cleaned daily. X
7.4.5.3 No equipment or vehicles used in the installation process should leak any gas, petroleum products, solvents, etc.
X
7.4.6 Surface Preparation X
7.4.6.1 The asphalt or concrete base should be sufficiently cured and cleaned in order for work to progress. Recommended cure times - 14 days for asphalt, 28 days for concrete.
X
7.4.6.2 Prior to installation of the track surface system, the entire base should be checked for planarity and surface tolerance.
X
7.4.6.3 Any areas that vary +/- 1/4" when measured with a 10' straightedge in any direction should be patched with a compound compatible with the base material and approved by the manufacturer of the track surfacing system.
X
7.4.6.4 After patching, the surface should not allow water to stand greater than 1/16" deep one hour after rain has ended.
X
7.4.7 Installation X
7.4.7.1 Primer X
7.4.7.1.1 The surface should be primed with the appropriate polyurethane primer using spray equipment or rollers.
X
7.4.7.1.2 Application rates range between 0.18 - 0.27 lbs. per square yard. X
7.4.7.1.3 For an asphalt base, primer application may be reduced by the contractor when extreme heat conditions soften the asphalt.
X
7.4.7.1.4 Some manufacturers' systems will not require a primer. X
7.4.7.2 Mixing X
7.4.7.2.1 The rubber granules and polyurethane binder should be accurately measured and placed in a clean dry mixer and mixed until all granules are thoroughly coated with the polyurethane binder.
X
7.4.7.2.2 No evidence of water may exist during the mixing process. X
7.4.7.2.3 The mixing ratio of rubber to binder should not be less than 5 parts rubber to 1 part binder as determined by the weight of the products.
X
7.4.7.2.4 The pot life of the mix should not be less than 45 minutes. X
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7.4.7.2.5 No agents are to be added to extend pot life. X
7.4.7.3 Placement of Base Mat X
7.4.7.3.1 The prepared material is placed evenly in front of the paving machine.
X
7.4.7.3.2 The machine should be operated at a speed and with the screed bar at an angle to provide a tight and smooth surface, free of chatter marks and voids.
X
7.4.7.3.3 The screed bars are to be constantly heated and should oscillate. X
7.4.7.3.4 Material should be placed at the specified depth in a single application and allowed to cure.
X
7.4.7.4 Trowel Work X
7.4.7.4.1 All seams are to be troweled smooth within the pot life of the material.
X
7.4.7.4.2 All edges should be straight and rounded by turning the trowel. X
7.4.7.4.3 All cold dry seams should be cut straight at an inward angle and primed prior to commencing with subsequent work.
X
7.4.7.5 Arid Climates X
7.4.7.5.1 To aid in the curing process in arid climates, it may be necessary to mist the surface with water upon completion of the day's work.
X
7.4.7.6 Line Markings X
7.4.7.6.1 The surface system manufacturer must approve the type and brand of marking paint used.
X
7.4.7.6.2 All lane and event markings should be in accordance with the applicable governing body.
X
7.5 Track Surface - Polyurethane Tracks Base Mat Sandwich X
7.5.1 The polyurethane base mat sandwich system is a homogenous blend of SBR rubber granules and polyurethane binder base layer spread evenly in a monolithic application follow by sealing. The sealant layer is a massive application of polyurethane coating with colored EPDM granules broadcast or encapsulated into the coating. This sealant layer makes the system impermeable. The system is a resilient all weather surface. It is textured and is used in both indoor outdoor applications.
X
7.5.2 Materials X
7.5.2.1 Primer X
7.5.2.1.1 The primer is a mixture of polyurethane binder and a viscosity reduction vehicle that allows for a light film application.
X
7.5.2.2 Polyurethane X
7.5.2.2.1 The polyurethane binder is a single component, 100% solids, moisture cure, elastic pre- polymer, designed to bind rubber granules together.
X
7.5.2.3 Polyurethane Coating and Sealers X
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7.5.2.3.1 Two component 100% solids polyurethane coating consisting of a Part A colored polyol and Part B isocyanate activator.
X
7.5.2.3.2 Specific gravity of 1.15 to 1.30. The coating may be used for the top layer as well as the sealant layer.
X
7.5.2.4 Polyurethane Sealer X
7.5.2.4.1 Two component 100% solids thioxtropic polyurethane coating consisting of a Part A colored polyol and Part B isocyanate activator. Specific gravity of 1.45 -1.60.
X
7.5.2.4.2 The coating is applied without the adding of rubber dust and is used only as a sealer.
X
7.5.2.5 Polyurethane Aliphatic Top Coating X
7.5.2.5.1 A single or two component aliphatic top coating applied to structural surfaces that need to be protected from UV degradation.
X
7.5.2.6 SBR/EPDM Black Rubber X
7.5.2.6.1 Fully cured rubber granules that may either be ambient or cryogenically ground from post- industrial by-products to a size of not less than 1 nor more than 4mm.
X
7.5.2.6.2 The general cut of the granules should be cubicle, contain less than 4% dust, and be free of foreign debris, and not contain any other color within the granule.
X
7.5.2.7 Colored EPDM Rubber X
7.5.2.7.1 Colored EPDM granules should be ground from fully cured virgin slabs of peroxide- or sulfur cured rubber (the curing process must be compatible with the polyurethane chemicals being used).
X
7.5.2.7.2 The EPDM content should be not less than 20%. X
7.5.2.7.3 The general cut of the granules should be cubicle and they should contain less than 4% dust.
X
7.5.2.7.4 Colored EPDM rubber dust graded to -0.5 may be used as a thickener for the polyurethane coating in the sealing process.
X
7.5.3 Thickness, Weight and Specific Gravity X
7.5.3.1 Each surface system should be at least 1/2" (12.5mm) in total thickness to allow for variation in the underlayment and to prevent spiked shoes from penetrating to the base layer, potentially disrupting the bond.
X
7.5.3.2 The total weight of the system is contingent upon the depth of the surface and the specific gravity of the materials.
X
7.5.3.3 Both SBR and EPDM rubber particles will vary in specific gravity and bulk density value of rubber. This coupled with the application methods, shape and size will affect the rubber required to achieve 1/2" thickness. The chart below is intended for guidance per 1/8":
X
Size/Shape Specific Gravity Shore A Harness
X
1-4 mm Granules 1.15 - 1.40 55-70 X
1-4 mm Granules 1.20 - 1.50 55-70 X
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1-4 mm Granules 1.40 - 1.60 55-70 X
7.5.4 Material Delivery X
7.5.4.1 All materials should be delivered to the job site in labeled and marked containers.
X
7.5.4.2 Quantities needed to complete the project in accordance with the manufacturer's specifications should be verified.
X
7.5.4.3 All materials should be located to allow for work to proceed without interruption.
X
7.5.4.4 Do not allow liquid binders to freeze. X
7.5.4.5 All packaging and excess materials must be disposed of in accordance with state, local and federal standards and regulations.
X
7.5.5 Installation Equipment X
7.5.5.1 All installation equipment including mixers, pavers, sprayers and hand tools should be kept free of moisture while in use.
X
7.5.5.2 Tools to be cleaned daily. X
7.5.5.3 No equipment or vehicles used in the installation process should leak any gas, petroleum products, solvents, etc.
X
7.5.6 Surface Preparation X
7.5.6.1 The asphalt or concrete base should be sufficiently cured and cleaned in order for work to progress. Recommended cure times - 14 days for asphalt, 28 days for concrete.
X
7.5.6.2 Prior to installation of the track surface system, the entire base should be checked for planarity and surface tolerance.
X
7.5.6.3 Any areas that vary +/- 1/4" when measured with a 10' straightedge in any direction should be patched with a compound compatible with the base material and approved by the manufacturer of the track surfacing system.
X
7.5.6.4 After patching, the surface should not allow water to stand greater than 1/16" deep one hour after rain has ended.
X
7.5.7 Installation X
7.5.7.1 Primer X
7.5.7.1.1 The surface should be primed with the appropriate polyurethane primer using spray equipment or rollers.
X
7.5.7.1.2 Application rates range between 0.18 - 0.27 lbs. per square yard. X
7.5.7.1.3 For an asphalt base, primer application may be reduced by the contractor when extreme heat conditions soften the asphalt.
X
7.5.7.1.4 Some manufacturers' systems will not require a primer. X
7.5.7.2 Mixing X
7.5.7.2.1 The rubber granules and polyurethane binder should be accurately measured and placed in a clean dry mixer and mixed until all granules are thoroughly coated with the polyurethane binder.
X
7.5.7.2.2 No evidence of water may exist during the mixing process. X
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7.5.7.2.3 The mixing ratio of rubber to binder should not be less than 5 parts rubber to 1 part binder as determined by the weight of the products.
X
7.5.7.2.4 The pot life of the mix should not be less than 45 minutes. X
7.5.7.2.5 No agents are to be added to extend pot life. X
7.5.7.3 Placement of Base Mat X
7.5.7.3.1 The prepared material is placed evenly in front of the paving machine.
X
7.5.7.3.2 The machine should be operated at a speed and with the screed bar at an angle to provide a tight and smooth surface, free of chatter marks and voids.
X
7.5.7.3.3 The screed bars are to be constantly heated and should oscillate. X
7.5.7.3.4 Material should be placed at the specified depth in a single application and allowed to cure.
X
7.5.7.4 Trowel Work X
7.5.7.4.1 All seams are to be troweled smooth within the pot life of the material.
X
7.5.7.4.2 All edges should be straight and rounded by turning the trowel. X
7.5.7.4.3 All cold dry seams should be cut straight at an inward angle and primed prior to commencing with subsequent work.
X
7.5.7.5 Arid Climates X
7.5.7.5.1 To aid in the curing process in arid climates, it may be necessary to mist the surface with water upon completion of the day's work.
X
7.5.7.6 Seal Coat X
7.5.7.6.1 The seal coat is a mixture of the two component coating and EPDM rubber dust that is mixed and squeegee-applied to the base mat.
X
7.5.7.6.2 Alternatives are to squeegee-apply two component thixotropic polyurethane coating without rubber dust or spray binder and brush EPDM rubber dust into the base mat.
X
7.5.7.6.3 In all cases, sufficient material is to be applied to render the surface impermeable.
X
7.5.7.6.4 It is extremely important that the base mat and base are completely void of moisture before commencing with application of the seal coat.
X
7.5.7.7 Top Coat X
7.5.7.7.1 The top coat is a massive flow application of the two component coating that is mixed according to the ratios of part A and B listed by the manufacturer.
X
7.5.7.7.2 The material is to be self-leveling and should be free of ridges. X
7.5.7.7.3 Prior to initial set, colored EPDM rubber granules are broadcast with sufficient excess granules being applied to assist in the embedding process.
X
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7.5.7.7.4 Normally 5 to 5.5 lbs. of granules per square yard will be embedded.
X
7.5.7.7.5 All loose excess granules are removed after initial cure. X
7.5.7.7.6 The alternative top coating is a spray application of a two component coating and encapsulated EPDM rubber granules applied at an approximate ratio of 60% coating to 40% rubber to sufficiently protect the base.
X
7.5.7.8 Aliphatic Top Coating X
7.5.7.8.1 If the encapsulated top coating is unprotected for UV resistance, then a thin mil layer of one or two component aliphatic top coating should be spray-applied, normally in two applications, over the surface in accordance to the manufacturer's recommendation.
X
7.5.7.9 Line Markings X
7.5.7.9.1 The surface system manufacturer must approve the type and brand of marking paint used.
X
7.5.7.9.2 All lane and event markings should be in accordance with the applicable governing body.
X
7.6 Track Surfacing - Polyurethane Tracks Full Pour (Impermeable) X
7.6.1 A full pour polyurethane system is the application of multiple layers of polyurethane coating and rubber, which may either be black SBR or colored EPDM. The top layer is a massive application of polyurethane coating with colored EPDM granules broadcast or encapsulated into the coating. The system is a resilient all weather surface. It is textured and impermeable and is used in both indoor and outdoor applications.
X
7.6.2 Materials X
7.6.2.1 Primer X
7.6.2.1.1 The primer is a mixture of polyurethane binder and a viscosity reduction vehicle that allows for a light film application.
X
7.6.2.2 Polyurethane Coating and Sealers X
7.6.2.2.1 Two component 100% solids polyurethane coating consisting of a Part A colored polyol and Part B isocyanate activator.
X
7.6.2.2.2 Specific gravity of 1.15 to 1.30. X
7.6.2.3 Polyurethane Aliphatic Top Coating X
7.6.2.3.1 A single or two component aliphatic top coating applied to structural surfaces that need to be protected from UV degradation.
X
7.6.2.4 SBR/EPDM Black Rubber X
7.6.2.4.1 Fully cured rubber granules that may either be ambient or cryogenically ground from post- industrial by-products to a size of not less than 1 nor more than 4mm.
X
7.6.2.4.2 The general cut of the granules should be cubicle, contain less than 4% dust, and be free of foreign debris, and not contain any other color within the granule.
X
7.6.2.5 Colored EPDM Rubber X
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7.6.2.5.1 Colored EPDM granules should be ground from fully cured virgin slabs of peroxide or sulfur cured rubber (the curing process must be compatible with the polyurethane chemicals being used).
X
7.6.2.5.2 The EPDM content should be not less than 20%. X
7.6.2.5.3 The general cut of the granules should be cubicle and they should contain less than 4% dust.
X
7.6.3 Thickness, Weight and Specific Gravity X
7.6.3.1 Each surface system should be at least 1/2" (12.5mm) in total thickness to allow for variation in the underlayment and to prevent spiked shoes from penetrating to the base layer, potentially disrupting the bond.
X
7.6.3.2 The total weight of the system is contingent upon the depth of the surface and the specific gravity of the materials.
X
7.6.3.3 Both SBR and EPDM rubber particles will vary in specific gravity and bulk density value of rubber. This coupled with the application methods, shape and size will affect the rubber required to achieve 1/2" thickness. The chart below is intended for guidance per 1/8":
X
Size/Shape Specific Gravity Shore A Harness
X
1-4 mm Granules 1.15 - 1.40 55-70 X
1-4 mm Granules 1.20 - 1.50 55-70 X
1-4 mm Granules 1.40 - 1.60 55-70 X
7.6.4 Material Delivery X
7.6.4.1 All materials should be delivered to the job site in labeled and marked containers.
X
7.6.4.2 Quantities needed to complete the project in accordance with the manufacturer's specifications should be verified.
X
7.6.4.3 All materials should be located to allow for work to proceed without interruption.
X
7.6.4.4 Do not allow liquid binders to freeze. X
7.6.4.5 All packaging and excess materials must be disposed of in accordance with state, local and federal standards and regulations.
X
7.6.5 Installation Equipment X
7.6.5.1 All installation equipment including mixers, pavers, sprayers and hand tools should be kept free of moisture while in use.
X
7.6.5.2 Tools to be cleaned daily. X
7.6.5.3 No equipment or vehicles used in the installation process should leak any gas, petroleum products, solvents, etc.
X
7.6.6 Surface Preparation X
7.6.6.1 The asphalt or concrete base should be sufficiently cured and cleaned in order for work to progress. Recommended cure times - 14 days for asphalt, 28 days for concrete.
X
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7.6.6.2 Prior to installation of the track surface system, the entire base should be checked for planarity and surface tolerance.
X
7.6.6.3 Any areas that vary +/- 1/4" when measured with a 10' straightedge in any direction should be patched with a compound compatible with the base material and approved by the manufacturer of the track surfacing system.
X
7.6.6.4 After patching, the surface should not allow water to stand greater than 1/16" deep one hour after rain has ended.
X
7.6.7 Installation X
7.6.7.1 Primer X
7.6.7.1.1 The surface should be primed with the appropriate polyurethane primer using spray equipment or rollers.
X
7.6.7.1.2 Application rates range between 0.18 - 0.27 lbs. per square yard. X
7.6.7.1.3 For an asphalt base, primer application may be reduced by the contractor when extreme heat conditions soften the asphalt.
X
7.6.7.1.4 Some manufacturers' systems will not require a primer. X
7.6.7.2 Mixing X
7.6.7.2.1 All two component polyurethane coatings are to be mixed in a manner to accurately measure and thoroughly mix all materials to the ratios specified by the manufacturer.
X
7.6.7.3 Applying Base Materials X
7.6.7.3.1 The two component self-leveling polyurethane coating is flow applied to the base in multiple layers with either black SBR or colored EPDM granules being applied into the coating to attain the specified base depth.
X
7.6.7.3.2 The ratio of base rubber will be between 15% and 35% of the total weight of the finished surface.
X
7.6.7.4 Top Coat X
7.6.7.4.1 The top coat is a massive flow application of the two component coating that is mixed according to the ratios of part A and B listed by the manufacturer.
X
7.6.7.4.2 The material is to be self-leveling and should be free of ridges. X
7.6.7.4.3 Prior to initial set, colored EPDM rubber granules are broadcast into the coating with sufficient excess granules being applied to assist in the embedding process.
X
7.6.7.4.4 Normally 5 to 5.5 lbs. of granules per square yard will be embedded.
X
7.6.7.4.5 All loose excess granules are removed after initial cure. X
7.6.7.4.6 The alternative top coating is a spray application of two component coating and encapsulated EPDM rubber granules applied at an approximate ratio of 60% coating to 40% rubber to sufficiently protect the base.
X
7.6.7.5 Aliphatic Top Coating X
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7.6.7.5.1 If the encapsulated top coating is unprotected for UV resistance, then a thin mil layer of the one or two component aliphatic top coating should be spray applied, normally in two applications, over the surface in accordance to the manufacturer's recommendation.
X
7.6.7.6 Line Markings X
7.6.7.6.1 The surface system manufacturer must approve the type and brand of marking paint used.
X
7.6.7.6.2 All lane and event markings should be in accordance with the applicable governing body.
X
7.7 Track Surfacing - Pre-manufactured Rubber Tracks X
7.7.1 Pre-manufactured rubber track surfaces can be classified into three distinct systems: a prefabricated rubber base layer with a structural spray top coating (permeable structure); a prefabricated rubber base layer with massive pour of polyurethane coating with embedded colored EPDM rubber granules (impermeable structure), and a prefabricated, vulcanized rubber product that is installed in a single layer (impermeable structure).
X
7.7.2 Materials X
7.7.2.1 Primer X
7.7.2.1.1 The primer is a mixture of polyurethane binder and a viscosity reduction vehicle that allows for a light film application. Primer may vary with the specifications provided by the manufacturer of the surface.
X
7.7.2.2 Adhesive X
7.7.2.2.1 The adhesive is a single or two component polyurethane or other material specified by the manufacturer that is used to bond the prefabricated materials to the prepared base.
X
7.7.2.3 Prefabricated Rubber Mat X
7.7.2.3.1 The prefabricated rubber mat is a rolled sheet good product that is comprised of rubber particles and a polyurethane binder.
X
7.7.2.4 Prefabricated Vulcanized Rubber Mat X
7.7.2.4.1 The prefabricated mat is calendered and vulcanized with a base of natural and synthetic rubber, stabilizing agents and pigments at a prescribed thickness and finish texture.
X
7.7.3 System Thickness, Weight and Specific Gravity X
7.7.3.1 Each surface system should be at least 1/2" (12.5mm) in total thickness to allow for variation in the underlayment and to prevent spiked shoes from penetrating to the base layer, potentially disrupting the bond.
X
7.7.3.2 The total weight of the system is contingent upon the depth of the surface and the specific gravity of the materials, as well as the weight of the colored EPDM granules embedded in the top coating.
X
7.7.4 Material Delivery X
7.7.4.1 All materials should be delivered to the job site in labeled and marked containers.
X
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7.7.4.2 Quantities needed to complete the project in accordance with the manufacturer's specifications should be verified.
X
7.7.4.3 All materials should be located to allow for work to proceed without interruption.
X
7.7.4.4 Do not allow liquid binders to freeze. X
7.7.4.5 All packaging and excess materials must be disposed of in accordance with state, local and federal standards and regulations.
X
7.7.5 Installation Equipment X
7.7.5.1 All installation equipment including mixers, pavers, sprayers and hand tools should be kept free of moisture while in use.
X
7.7.5.2 Tools to be cleaned daily. X
7.7.5.3 No equipment or vehicles used in the installation process should leak any gas, petroleum products, solvents, etc.
X
7.7.6 Surface Preparation X
7.7.6.1 The asphalt or concrete base should be sufficiently cured and cleaned in order for work to progress. Recommended cure times - 14 days for asphalt, 28 days for concrete.
X
7.7.6.2 Prior to installation of the track surface system, the entire base should be checked for planarity and surface tolerance.
X
7.7.6.3 Any areas that vary +/- 1/4" when measured with a 10' straightedge in any direction should be patched with a compound compatible with the base material and approved by the manufacturer of the track surfacing system.
X
7.7.6.4 After patching, the surface should not allow water to stand greater than 1/16" deep one hour after rain has ended.
X
7.7.7 Installation X
7.7.7.1 Primer X
7.7.7.1.1 The day's work should be primed, if required, in accordance with the manufacturer's specifications.
X
7.7.7.1.2 Normal application procedures call for the primer to be either spray or roller applied.
X
7.7.7.2 Placement of the Mat X
7.7.7.2.1 Materials to be laid out and relaxed prior to installation. X
7.7.7.2.2 Adhesive is then mixed and troweled in place using a notched trowel.
X
7.7.7.2.3 Apply rates should be in accordance with the manufacturer's specifications.
X
7.7.7.2.4 Adhesive should be applied only to the area to be covered by one roll at a time.
X
7.7.7.2.5 When the adhesive is tacky, the mat is then placed onto the surface making sure that each sheet is placed in a straight line or around a curve at a constant radius.
X
7.7.7.2.6 All butt joints are to be staggered. X
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7.7.7.2.7 The mat should be rolled out so that all entrapped air is removed. X
7.7.7.2.8 Seams and butt joints are to be level and not pinched. X
7.7.7.2.9 Place weights as necessary to hold the mat in place. X
7.7.7.2.10 Remove any excess adhesive that protrudes above the seams and joints.
X
7.7.7.3 Structural Top Coating X
7.7.7.3.1 Mixing X
7.7.7.3.1.1 Using dry containers, weigh out in accordance to the manufacturer's specification a quantity of the two component parts (A and B) of the structural spray and mix them thoroughly.
X
7.7.7.3.1.2 Add the specified quantity of colored EPDM rubber granules to the mixed material, or in the case of a single component structural spray, to the weighed out portion of that single component material. Mix thoroughly.
X
7.7.7.3.2 Application X
7.7.7.3.2.1 Place the mixed material into a spray machine and spray apply the material to the base mat.
X
7.7.7.3.2.2 Apply a second coat of material over the first by spraying in the opposite direction. The total rate of application of two coats of spray will range from 3.4 to 4.4 lbs. per square yard.
X
7.7.7.3.3 Should the surface require a structural spray coating, see " Track Surfacing - Polyurethane Tracks - Base Mat Structural Spray".
X
7.7.7.4 Flood Coat and Embedded Rubber Top Coating X
7.7.7.4.1 The top coat is a massive flow application of the two component coating that is mixed according to the ratios of part A and B listed by the manufacturer.
X
7.7.7.4.2 The material is to be self-leveling and should be free of ridges. X
7.7.7.4.3 Prior to initial set colored EPDM rubber granules are broadcast with sufficient excess granules being applied to assist in the embedding process. Normally 5 to 5.5 lbs. of granules per square yard will be embedded. All loose excess granules are removed after initial cure.
X
7.7.7.4.4 The alternative top coating is a spray application of two component coating and encapsulated EPDM rubber granules applied at an approximate ratio of 60% coating to 40% rubber to sufficiently protect the base.
X
7.7.7.4.5 Should the surface require a flood coat and EPDM rubber top coating, see "Track Surfacing - Polyurethane Tracks -Base Mat/Sandwich."
X
7.7.7.5 Single Sheet Good Installation X
7.7.7.5.1 Should the specification call for the product to be vulcanized and calendered with a textured finish, proceed to line marking.
X
7.7.7.6 Line Markings X
7.7.7.6.1 The surface system manufacturer must approve the type and brand of marking paint used.
X
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7.7.7.6.2 All lane and event markings should be in accordance with the applicable governing body.
X
7.8 Layout & Striping of Running Tracks X
7.8.1 Paint - Various types of running surfaces have different characteristics. These may require different types of paint such as latex, urethane or enamels. Use paint per track surfacing manufacturer's recommendations.
X
7.8.2 Layout X
7.8.2.1 General Method X
7.8.2.1.1 At minimum layout should be accomplished using an transit, theodolite or total station that will read directly to at least 20 seconds and steel engineer's tape that will read directly to 0.001m or 0.01" or EDM device. Temperature correction should be applied as it will affect the level of precision.
X
7.8.2.1.2 Cloth tapes, fiberglass tapes and measuring wheels should not be used,
X
7.8.2.1.3 Other methods, providing the same or greater accuracy, may be used if prior approval is obtained.
X
7.8.2.2 Tolerances X
7.8.2.2.1 Track Governing Bodies do not allow a minus tolerance of any kind in a track.
X
7.8.3 Painting X
7.8.3.1 Placement X
7.8.3.1.1 The location of the finish line determines the location of all other markings such as starts, hurdles and exchange zones.
X
7.8.3.1.2 Consult the governing body requirements and recommendations for finish line placement.
X
7.8.4 Markings X
7.8.4.1 Lane Lines, Start and Finish Lines X
7.8.4.2 Lane line markings should be 2" (5 cm) wide depending on the rules of the governing body. In areas where chute and curve lines intersect, chute lines should be dashed or broken with some other means to indicate the curved lines have priority. Start and finish lines should also be 2"(5 cm) in width. The NCAA and IAAF require finish line blackouts.
X
7.8.5 Exchange Zones X
7.8.5.1 Exchange zones are typically marked using triangles or rectangles, squares or triangles, painted on both sides of each lane.
X
7.8.6 Hurdle Placements X
7.8.6.1 Hurdle placements can be identified by use of small rectangles, squares or triangles, painted on both sides of each lane.
X
7.8.7 Other Markings X
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7.8.7.1 Other markings such as event identification, shadowed lane numbers, school logos or sprint race markings for running in back straight or reverse direction may be added to enhance the usability and appearance of the track.
X
7.8.8 Colors X
7.8.8.1 Individual governing bodies have recommended or required colors for each event. School colors may be incorporated into the track for lane numbers or lines where governing bodies allow.
X
7.8.9 Paint Application X
7.8.9.1 Paint may be rolled, brushed or sprayed with either conventional or airless stripping machine.
X
7.8.10 Paint Coats - The manufacturer's recommendations for paint and coverage should be followed. An excessive thickness of paint may cause cracking and curling.
X
7.8.11 Certification X
7.8.11.1 Depending on the governing body and the intended use of a particular facility, a certification of accuracy of calculations or markings by the track striper, a Certified Track Builder, a Professional Engineer or Registered Land Surveyor may be required.
X
7.8.12 Governing Bodies - AEPA Member determine the primary and potential uses of the facility. A current track and field rules book for the highest intended level of competition, should be used as rules, requirements and recommendations change from year to year.
X
7.9 Site Inspection and Investigation X
7.9.1 The ultimate performance and lifecycle of any running/jogging track depends on a significant degree on the subsoil and drainage conditions of the site. The stability of the subsoil also has a direct influence on the ability to properly prepare the site, construct the track and to maintain design grades under the deformations generated by the construction equipment itself. Such site condition as: expansive soils or plastic soils and use of base course materials consisting of these types of soils can create problems and frost action is exaggerated where frost susceptible materials exist with moisture available to generate frost heave. It is, therefore, necessary for Offeror in cooperation with the Member in ensure that a complete and accurate site inspection/investigation has been performed to identify soil conditions existing at the site and to take these conditions into account in designing the project. Site preparation, including stripping, placement of backfill and base construction must be properly performed to minimize the risk of problems due to subsoil and subgrade conditions.
X
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7.9.2 The scope of and level of any site inspection/investigation must be flexible and dependent on the nature of the conditions that exist at a particular site, and the degree of risk that the Member is willing to acknowledge, accept and take regarding adverse effects of subsoil conditions. During the design and development of the project, the Offeror will advise and consult with the Member to determine the scope and level of site inspection required. Obviously, the more serious site conditions that require an adequate study includes, but is not limited to:
X
7.9.2.1 The existence of peat or other organic soils at the site; X
7.9.2.1.1 Uncontrolled fill materials or waste materials at the site; X
7.9.2.1.2 Expansive soils at the site; X
7.9.2.1.3 High ground water conditions or surface water retention areas (low area flooding); or
X
7.9.2.1.4 Special usage of the facility for a variety of activities. X
7.9.3 Soils should be classified, in general, in accordance with the visual manual method of identification of soils, utilizing the Unified Soil Classification System (ASTM Methods D 2488 "Description of Soil Visual Manual Procedure", and D 2487 "Classification of Soils for Engineering Purposes"). It is not intended, however, that a rigorous use of these methods be required, but only use of terminology that will describe the soil conditions in terms of soil types using the Unified Soil Classification symbols, such as CL, CH, etc.
X
7.9.4 Data obtained from this investigation should be prepared and submitted as part of the project record documents for later reference, if necessary, or for review by a qualified engineer if an evaluation is decided upon by the Member and/or the Contractor.
X
7.9.5 Once a site study has been completed, identified risks require the Member and the Offeror to make a joint decision as to the level site preparation is required before the project is started. This is done so that an adequate site can be available for the tract construction, and in the event of any problems developing because of subgrade conditions, the responsibility can be clearly allocated between the AEPA Member and the Contractor.
X
7.9.6 Where any site and/or soil conditions are suspect for problems, such as existence of fill material, organic material or expansive soils are known or believed to exist at a site, then it is required that the Member and Contractor shall review, assess and discuss the pros and cons of the condition and the Member may choose to retain a geotechnical consultant to obtain samples in accordance with ASTM Method D 1587 in cohesive soils, and D 1586 in granular soils, with borings to a depth of at least 10 ft. or into firm materials. This should be followed by appropriate unconfined compressions tests, water content and density determinations on cohesive soils, and penetration resistances and blows per foot for granular soils, plus water level determinations, again with borings at each corner of the tennis court or at each quadrant of the track and intermediate borings not greater than 200 ft. apart outside the pavement area.
X
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7.9.7 All information and communications relating to the site inspection and investigation shall become part of the projects documentation.
X
7.1 Site Preparation, Earthwork, Drainage and Sub-base Construction X
7.10.1 For new track construction, the site must be properly prepared in accordance with project design documents that were prepared based on the site inspection and investigation which addressed:
X
7.10.1.1 Site grade and elevations; X
7.10.1.2 The sub soil, topsoil and drainage conditions; X
7.10.1.3 The existence of peat or other organic soils at the site; X
7.10.1.4 Uncontrolled fill materials or waste materials at the site; X
7.10.1.5 Expansive soils at the site; X
7.10.1.6 High ground water conditions or surface water retention areas (low area flooding).
X
7.10.2 If an existing athletic facility, type of facility, how is it being utilized and by whom.
X
7.11 Stripping and excavation - Unless otherwise specified, topsoil and other unsuitable materials at the site, and to a minimum distance of 5' beyond the surfaced area, should be removed in such a manner as to minimize disturbance of the remaining subgrade soils, and to facilitate placement of embankment materials and/or base course materials. Topsoil should be stored at the site and reused for landscaping at the completion of construction.
X
7.12 Subsurface Drainage X
7.12.1 Where surface inlets are provided on or near the courts or track, drain lines to carry the water to appropriate discharge channels should be in accordance with local building codes and regulations.
X
7.12.2 Where it is necessary or otherwise decided to lower the water table at the site, French drains (permeable, properly graded, gravel-filled trenches), geocomposites or perforated drain lines surrounded with a stone material, should be utilized, discharging to appropriate channels. Non-woven geotextile fabric may be used, depending on the stone materials available.
X
7.12.3 Backfill of all trenches should be granular material, placed in layers not to exceed 6" in thickness, compacted with appropriate compaction equipment to 95% of the maximum density determined by ASTM Method D 698 (Modified Proctor). This compaction is necessary to minimize the risk of subsequent settlement of the surface over the trench.
X
7.12.4 When trenching or drain tile is used under existing permanent pavement, it is recommended that this area be compacted to 100% of the maximum density determined by ASTM Method D 698 (Modified Proctor). This method will reduce the amount of settlement that may occur in these trenches, which will reflect on the final surface.
X
7.13 Sub-base Embankment X
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7.13.1 Embankment is fill material necessary to raise the grade at the site, after removal of unsuitable materials identified during the site investigation, to provide the surface on which to place the base course for the running track.
X
7.13.2 While well-graded granular soil is preferred for embankment fill, normally locally available soil is used for economic reasons. The material should be free of organic or expansive material, and of particles greater than 1 1/2" in dimension. It should be placed in lifts not to exceed 6" in thickness and compacted to 95% of the maximum density determined by ASTM Method D 698 (Modified Proctor). The water content of the fill should be reduced by aeration or increased by adding water, as necessary to achieve the required compaction.
X
7.13.3 Where the natural soil at the bottom of the sub-base course is stable, as evidenced by stability under construction equipment, hand auger or other exploration, base course materials can be placed on this soil. Soft clay and plastic soils should be appropriately stabilized.
X
7.14 Vegetation control or vegetation regrowth prevention - Soil conditions vary from area to area. Where problems exist, it may be necessary to sterilize the soil. The Offeror should during project development or construction recognize and determine when soil sterilization is necessary and offer methods and options to the Member for rectifying problems caused by vegetation.
X
7.15 Concrete Curbs and Drains X
7.15.1 Furnish all required labor, materials, equipment implements, parts and supplies necessary to prepare the site and install curbs and drainage systems.
X
7.15.2 Cement shall conform to one of the standard specifications for Portland Cements, ASTM C-150, pr specification for blending hydraulic cements, ASTM C-595, excluding slag cements types S and SA.
X
7.15.3 Air entrainment by total volume of concrete shall be: 4 - 6% for 1 1/2" maximum size coarse aggregate; 5 - 7% for 3/4" or 1" maximum size coarse aggregate; 6 1/2" - 8 1/2" for 3/8" or 1/2" maximum size coarse; 1/2 - 8 1/2% for 3/8" or 1/2" maximum size coarse aggregate.
X
7.15.4 Aggregate shall conform to standard specifications for concrete aggregates ASTM C-33. For concrete work that is 5" thick, the normal size of the coarse aggregate shall not exceed 1 ½". For concrete work that is 4" thick, the normal size of the coarse aggregate shall not be greater than 1".
X
7.15.5 Concrete work shall be 5" thick if the location of the structure is such that it will be subject to more than three freeze-thaw cycles annually. If the location is such that not more than three freeze-thaw cycles occur annually, concrete work may be 4" thick.
X
7.15.6 Steel reinforcement bars shall conform to standard specifications for deformed and plain billet-steel bard for concrete reinforcement ASTM A-615, grade 60 or 40.
X
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7.15.7 For concrete work that is 5" thick, the recommended bars shall be No. 5 size in both directions at 12" on center. For concrete work that is 4" thick, the recommended bars shall be No. 5 size in both directions at 15" on center. Bars shall be accurately positioned at mid-depth, terminating 2" away from edges and joints, and shall be adequately supported by chairs with sand plates provided to prevent bar supports from sinking into the sub-base.
X
7.15.8 Bars shall be lapped 18" and also be securely tied or otherwise secured so that there is no possibility of displacement when concrete is placed. Reinforcement at time of concrete placement shall be free of loose, flaky rust and other coatings or films that could interfere with bonding to the concrete.
X
7.15.9 The concrete shall have a compressive strength of not less than 3,000 psi at the 29th day after casting. The minimum cement content for finish ability shall not be less than 470 lb. per cubic yard for 1 1/2" maximum size coarse aggregate or 520 lb. for 1". In freeze-thaw environments, the minimum cement content shall not be less than 560 lb. per cubic yard. The slump shall not be more than 4". Ready-mixed concrete shall be mixed and delivered in accordance with ASTM C-94, specification for ready-mixed concrete.
X
7.15.10 Concrete shall be spread, consolidated, screened, bull-floated and finished in accordance with Section 7.2 of ACT Standard 302, recommended practice for concrete floor and slab construction.
X
7.15.11 When concrete is sufficiently set to withstand foot pressure with only about 1/4" indentation and the water sheen has left the surface, the slab shall be uniformly finished by power floating and trawling. The final finish texture shall have at least a medium broom finish to improve the mechanical bond to the surface.
X
7.15.12 Immediately after brooming, the concrete shall be kept continuously moist for seven (7) days by covering with polyethylene film or waterproof curing paper. Curing compounds will not be used. Curing time shall be in accordance with surfacing systems manufacturer's recommendations, but in not less than 28 days.
X
7.15.13 The concrete surface shall be finished so that the tolerance shall not vary more than 1/4" in 10' when measured with a 10' straightedge in all directions.
X
7.15.14 Perimeter edging shall be constructed using one of the following methods: pavement extension, flush curb, permanent raised curb or removable raised curb.
X
7.15.15 A pavement extension shall have an aggregate base course constructed so that the inside perimeter is parallel to and 28" inside of the track measure line, and 16" from the outer side of the outside lane line.
X
7.15.16 A pavement extension shall have an asphaltic concrete course(s) constructed so that the inside perimeter is parallel to and 22" inside of the track measure line, and it's outside perimeter parallel to and 10" from the outer side of the outside lane line.
X
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7.15.17 A pavement extension shall have a synthetic surfacing course constructed so that the inside perimeter is parallel to and 16" inside of the track measure line, and it's outside perimeter parallel to and 4" from the outer side of the outside lane line.
X
7.15.18 A flush curb shall be solid, installed for both the inside and outside (or inside only) perimeter of the trade. The curb shall be flush with either the asphalt or the top elevation of the synthetic surface for an impermeable installation. For a permeable installation, the curb is to be flush with the final elevation of the asphalt. The distance between the track side of the inside curb and the measure line shall be less than the distance between the track side of the outside curb and the line shall not be less than 4".
X
7.15.19 A permanent raised curb shall be solid and be installed to provide a curb for both the outside and inside perimeter of the track. The distance between the trackside of the curb and the track measure line shall be 30 cm. The distance between the trackside of the outside curb and the lane line shall not be less than 4".
X
7.15.20 Removable raised curbs shall be available in various materials, including, but not limited to: aluminum, polyurethane or aluminum with a firm rubber top. These removable curbs shall sit on pads that allow movement of water from the track surface to the drain channel or infield.
X
7.15.21 Drainage systems shall utilize a perimeter drain tile system, catch basin, curb and gutter drainage system, permeable system or continuous trench drains.
X
7.16 Hot mix asphaltic concrete base course and leveling course for running tracks, athletic court, or field events areas.
X
7.16.1 The components and methods utilized to install and complete the base and leveling course must be in accordance with the individual project's design documents. The success of any installation of base or leveling course is dependent upon a properly constructed sub-base and a good drainage system.
X
7.16.2 Minimum recommended base course thickness shall be based on the specifications established by the geotechnical engineer.
X
7.16.3 Minimum recommended leveling course thickness shall be based on the specifications established by the geotechnical engineer
X
7.16.4 Quality Assurance - For installation of running track and field event hot mix asphalt, utilize only thorough, highly-trained personnel experienced and familiar with running track and field event paving and with the tolerances required by the appropriate federal, state and local governing bodies.
X
7.16.5 Asphalt - The proper type of asphalt used will vary from state to state if using the standard norm of the Department of Transportation (DOT) or State Highway Department standards. The following is a typical mix design for example only:
X
7.16.6 Thickness: No less than 1". X
7.16.7 Liquid Asphalt or Bitumen: 5.5% by weight (+/- 0.5%). X
7.16.8 Asphalt Penetration or Type: 85 - 100 penetration. X
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7.16.9 Cure Time: Follow coating manufacturer's recommendations (typically 14 to 30 days), depending on the time of year and rainfall. Asphalt will cure more slowly in cooler temperatures, i.e. the Spring and Fall.
X
7.16.10 Aggregate Type: Crushed stone, gravel, shale, limestone, etc. Foreign materials, i.e., pyrite, clay, ferrous compounds, dirt and organic material are not acceptable.
X
Aggregate Sieve Analysis % Passing X
1/2" 100% X
3/8" 70 - 80% X
1/4" 60 - 80% X
No. 4 60 - 70% X
No. 8 40 - 60% X
No. 12 30 - 50% X
No. 16 20 - 40% X
No. 30 20 - 30% X
No. 50 10 - 20% X
No. 100 2 - 6% X
No. 200 60 - 70% X
Washed 0 - 2% X
7.16.11 Plant, equipment, machines, and tools - The bituminous plant should be capable of producing the quantities of bituminous mixtures required. Hauling, placing and compaction equipment should be provided in sufficient numbers that the placement capacity at the site is equal to, or greater than, the planned plant output to the site.
X
7.16.12 Paver - All pavements, where applicable, should be placed with a self-propelled asphalt paver. The screed width should be adjustable to no less than eight feet (8'). Only hydraulic screed and auger extensions to achieve widths greater than that of the main screed are acceptable.
X
7.16.13 Compaction Equipment - Compaction equipment should consist of steel drum asphalt rollers of sufficient size and width to properly compact the hot mix asphalt to the required compaction, while providing a smooth surface free from bumps, marks and creases.
X
7.16.14 Transportation Equipment - Transportation of the hot mix asphalt to the site from the asphalt plant should be in trucks having tight, clean, smooth beds lightly coated with an approved releasing agent. Each load should be covered with a canvas or other approved material of ample size to protect the mixture from cooling.
X
7.16.15 Straightedge - The contractor should furnish and maintain at the site, in good working condition, one 10' straightedge for each paver.
X
7.17 Placement and Compaction X
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7.17.1 Hot mix asphalt courses should only be placed on the specified base, free from contamination and with no free water on the surface.
X
7.17.2 Paving operations should not be scheduled unless there is ample time to place, compact and finish roll the hot mix asphalt.
X
7.17.3 The range of temperatures for mixtures to be dumped into the paver should be determined by State Department of Transportation guidelines, and in no case should they be cooler than 225 degrees F.
X
7.17.4 Paving operations should provide a mat that is smooth, dense and of the proper thickness, slope and plane.
X
7.17.5 The leveling course should be placed such that the longitudinal joints of the leveling course are offset from that of the base course. Transverse joints should be offset a minimum of 24".
X
7.17.6 In placing each succeeding pass after the initial one, the screed of the paver should be set so that it overlaps the preceding pass by 2" and be sufficiently high so that when compacted, a smooth joint is produced. Prior to pinching the joint, the excess material should be pushed onto the edge of the new pass with a lute. Excess material should be removed and wasted.
X
7.17.7 Breakdown rolling should begin as soon after the placement as the mixture will allow without undue displacement. No delays in rolling should be permitted. After breakdown rolling has been completed, preliminary testing of grade, slope and planarity should be done. Any deficiencies should be immediately corrected in accordance with "Acceptability of Work." When the paving contractor is assured that all tolerances are being met, finish rolling should begin.
X
7.17.8 Deficient areas within the base course should be corrected by saw cutting or milling high spots and/or by truing and leveling low spots.
X
7.17.9 Deficient areas in the leveling course should be corrected by saw cutting or milling to a depth equal to the thickness of the mat. Tack coat should be applied to all edges and the pavement should be replaced. Skin patching of the leveling course should only be done with materials acceptable to the track surfacing contractor.
X
7.18 Acceptance of work - Upon completion of the work and/or prior to installing the track surface system, the base and leveling course should be inspected for:
X
7.18.1 Grade conformance tests should be conducted on both the base course and the leveling course. The entire surface should have positive drainage.
X
7.18.2 Planarity - After completion of the finish rolling operations on each course, the compacted surface should be tested with a 10' straightedge. Measurements should be made perpendicular to and across all mats at a distance not to exceed 25'. The track surfacing contractor and/or Member's representative should be present when these measurements are made. The maximum allowable planarity deviation within a pass should be 1/8" in 10' when measured in any direction.
X
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7.19 Quality Assurance X
7.19.1 The work shall conform to the USTC & ASBA's standards for track construction. The track surface will be applied by a licensed firm, which has been installing the material for the past five (5) years.
X
7.19.2 Installing foreman must have at least five (5) years experience installing this type of system.
X
7.19.3 Guarantee - The Contractor is to provide a written guarantee against defective materials or faulty workmanship, excessive color change, excessive wear, and any other feature which is not deemed ordinary wear on running tracks and court surfaces for a period of not less than five (5) years after acceptance by AEPA Member.
X
7.2 Job Conditions - Surfacing shall not be done within 24 hours of freezing, rain or gusting winds are forecasted. While surfacing and striping are being done, sprinkler systems must be shut off or controlled so that no water falls on the track or event area surfaces. Other tradesmen, school district personnel and students must stay off the wet or curing surfaces.
X
7.21 Delaminating Surfaces - Any surfaces not adhered to the concrete or asphalt substrate need to be removed. If only a few small areas are involved, they can be patched with an appropriate compatible material. If large sections are loose and adjacent areas can be easily pulled loose, the entire surface should be removed.
X
7.22 Striping - AEPA Member personnel will be consulted to determine the levels of competition and the governing organization's (NMAA/NCAA) standards must be utilized for the placement of the finish line(s), events to be run, location of lane numbers and any other painted markings. Markings shall conform to NFSHSA, NCAA or AAU regulations. The paint shall be per surface manufacturer recommendations.. The Offeror will supply a scaled drawing of all markings. All calculations, measurements and markings will be done by qualified and experienced specialists with a minimum of three (3) years of experience in this field.
X
7.23 Post-Tension Concrete Tennis or Basketball Courts X
7.23.1 Furnish all required labor, materials, equipment, implements, parts and supplies necessary for, or appurtenant to, the site preparation, grading and installation for tennis or basketball courts.
X
7.23.2 Guarantee - The installation contractor shall guarantee the work against defective material or faulty workmanship for a period of one (1) year from the date of completion.
X
7.23.3 Quality Assurance - The work shall conform to the USTC and TBA's standards for tennis and/or basketball court construction. The court will be applied by a licensed firm, which has been installing the material for the past five (5) years.
X
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7.23.4 Site preparation may include removing trees, bushes and a minimum of 4" of topsoil if existing conditions require such action. The area will be graded to the required depth to accommodate the base and concrete thickness and provide a uniform 1% slope at ±.1' in one plane. All fills will be placed in 6" layers and will be compacted to 90% standard density at optimum moisture. The contractor will alert the Member of any "soft spots" or structures that could affect the stability of the slab. The site preparation will be done so as to provide positive drainage away from the play courts and, if needed, to provide intercepting swales to prevent drainage on to the court. The final grade base material shall be placed with automatic laser-regulated equipment capable of providing a true accurate plane to a 1/4". The depth of the fine grade base material shall be sufficient to develop 1/4" accuracy.
X
7.23.5 Site preparation materials may consist of the existing sub-grade material unless a soil engineer specifies import fill. The fine grade base materials shall be an approved compactable, free-draining base material (sand, fine gravel, etc.).
X
7.23.6 Vegetation control or vegetation regrowth prevention - Soil conditions vary from area to area. Where problems exist, it may be necessary to sterilize the soil. The Offeror should, during project development or construction, recognize and determine when soil sterilization is necessary and offer methods and options to the Member for rectifying problems caused by vegetation.
X
7.23.7 Court paving materials specifications may include: X
7.23.7.1 Post-tensioning and anchorages will conform to the "PTI Guide Specifications for Post-Tensioning Materials". The tensioning strands shall consist of 1/2" diameter, 7-wire, stress-relieved strands, having a guaranteed ultimate tensile strength of 270,000 psi. Strands shall conform to ASTM-416. Cables shall be fabricated to proper length for each slab, coated with a permanent rust preventative lubricant and encased in slippage sheathing. All breaks in the sheathing shall be repaired with tape prior to concrete placement. A maximum of 6" exposed strands is permitted at the dead-end anchor.
X
7.23.7.2 The concrete shall have a compressive strength of not less than 3,500 psi after 28 days. Ready-mixed concrete shall be mixed and delivered according to ASTM C-94 specifications for ready-mixed concrete.
X
7.23.7.3 Forms shall be accurately set to the lines and to +/- 1/4" of finish grade indicated on drawings and be securely staked to prevent settlement or movement during placement of concrete. Forms shall remain until concrete has taken final set.
X
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7.23.7.4 Tensioning cables and anchors shall be supported on chains and loosely tied 2" high at all intersections to prevent vertical and horizontal movement during concrete placement. Strands shall be placed with no greater spacing than 2'6" wide on lengths over 100' and 3'4 "on lengths under 100'. After forms are removed and the concrete has set to a minimum of 2,000 psi, the tensioning procedure may be applied approximately one week later. Each tendon may initially be tensioned to a maximum of 80% ultimate breaking strength and anchored at a minimum of 70% ultimate breaking strength.
X
Ultimate Breaking Strength
80% 70% X
41,300 33,000 28,900 X
7.23.7.5 The cable ends shall be cut off and cone holes grouted flush with edge of slab. Grout shall be non-shrink grout.
X
7.23.7.6 Joints - Between each court or at net line ±1', there shall be a keyed construction joint.
X
7.23.7.7 Placing - A full court shall be placed in one continuous operation without intervening joints of any kind. The 4" thick slab will be placed with a 60' mechanical screed capable of providing a surface true to 3/8" at a 1% slope. Note: Finish surface shall not have a water-holding area greater than 1/8" deep. This is to be determined by flooding the court with water, allowing it to drain for one hour on a 70° or warmer day.
X
7.23.7.8 Curing - Immediately after finishing, the concrete shall be kept moist by covering with polyethylene, by sprinkling, by pounding or by curing compound (must be compatible with acrylic tennis surfacing material).
X
7.23.8 Court Surfacing Materials X
7.23.8.1 Playing Lines - Playing lines shall be painted per manufacturer specifications.
X
7.23.8.2 Surface will be installed per surface manufacturer specifications. X
7.23.9 Court Surfacing Surface Preparation - Prior to the surfacing application, the concrete will be thoroughly cleaned by using a power broom or power washer. Subsequent to the cleaning of the court surface, a prime coat will be broom applied. Pools of the prime coat will be swept out to eliminate black "fatty" spots.
X
7.23.9.1 1/2" Emulsion Lift - The mixture will be agitated in a mixer capable of providing a consistent and homogeneous solution of the binder and aggregates. The mixture will be screed over the entire surface using 1/2" rods; other methods of placing will not be allowed. After the lift has cured (approximately one week), it will be compacted by a vibratory roller or with a static roller weighing 3,000 lbs. The resulting surface shall be free of depressions more than 1/8" deep. Any areas holding more water than 1/8" in depth will be filled with the leveling course.
X
7.23.9.2 Leveling Course(s) - Once the 1/2" lift has been rolled, the contractor shall flood courts, mark and fill all water-holding depressions with the leveling course mixture.
X
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7.23.9.2.1 Any remaining water-holding depressions greater than 1/8" deep will be marked and filled with the leveling mix, again using a 14' straightedge squeegee. Water holding areas will be determined by flooding the court with water and allowing it to drain for one hour on a 70° or warmer day. The court will be reflooded and refilled as necessary. Note: Water holding areas can only be removed where positive and adequate slope exists.
X
7.23.9.3 Finishing Courses - Contractor shall blend in water-holding patches and surface defects and provide for a wearing base with the finishing courses.
X
7.23.9.4 After each finishing application has been cured, any ridges will be removed with scrapers, and the application will be compacted with a minimum 3,000 lb. static roller. One finishing course will be applied and additional application will be made as necessary to provide a uniform, ridge-free surface.
X
7.24 Hot Mix Asphalt Tennis and/or Basketball Courts X
7.24.1 Guarantee - The contractor shall guarantee the work against defective material or faulty workmanship for a period of one (1) year from the date of completion.
X
7.24.2 Quality Assurance - The work shall conform to the USTC and TBA's standards for tennis and/or basketball court construction. The court will be applied by a licensed firm, which has been installing the material for the past five (5) years.
X
7.24.3 The following descriptions are given as a general guide and standard of the surfaces being requested. The Offeror is encouraged to propose a complete line of tennis/basketball court surfaces that meet or exceed the listed surfaces, the standards and specifications established by the National Federation of State High School Association, American Sports Builders Association, state and local Uniform Building Codes.
X
7.24.4 Submittals X
7.24.4.1 The Offeror must provide written documentation for: X
7.24.4.2 Each type of tennis or basketball surface offered. X
7.24.4.3 The installers certification by the surface manufacturer to install, maintain and/or repair the proposed court system.
X
7.24.4.4 For the court surfaces offered, provide written documentation of its proven record for performance and durability by listing 5 installations that are a minimum of five (5) years old that contain the same court surface materials and use the same method of installation showing locations, installation dates and owner representatives contact information. Courts listed are to have been provided by the Offeror making a response to this solicitation.
X
7.25 Hot mix asphaltic base course and leveling course for basketball and tennis courts.
X
7.25.1 The components and methods utilized to install and complete the base and leveling course must be in accordance with the individual project's design documents. The success of any installation of base or leveling course is dependent upon a properly constructed sub-base and a good drainage system.
X
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7.25.1.1 Minimum recommended base course thickness shall be based on the specifications established by the geotechnical engineer.
X
7.25.1.2 Minimum recommended leveling course thickness shall be based on the specifications established by the geotechnical engineer.
X
7.25.2 Site preparation may include removing trees, bushes and a minimum of 4" of topsoil if existing conditions require such action. The area will be graded to the required depth to accommodate the base thickness and provide a uniform 1% slope at ±.1' in one plane. The site preparation will be done so as to provide positive drainage away from the play courts and, if needed, to provide intercepting swales to prevent drainage on to the court. The final grade base material shall be placed with automatic laser-regulated equipment capable of providing a true accurate plane to a 1/4". The depth of the fine grade base material shall be sufficient to develop a 1/4" accuracy.
X
7.25.3 Site preparation materials may consist of the existing sub-grade material unless a soil engineer specifies import fill. The fine grade base materials shall be an approved compactable, free-draining base material (sand, fine gravel, etc.).
X
7.25.4 Asphalt - The proper type of asphalt used will vary from state to state if using the standard norm of the Department of Transportation (DOT) or State Highway Department standards. The following is a typical mix design for example only:
X
7.25.4.1 Thickness: No less than 1". X
7.25.4.2 Liquid Asphalt or Bitumen: 5.5% by weight (+/- 0.5%). X
7.25.4.3 Asphalt Penetration or Type: 85 - 100 penetration. X
7.25.4.4 Cure Time: Follow coating manufacturer's recommendations (typically 14 to 30 days), depending on the time of year and rainfall. Asphalt will cure more slowly in cooler temperatures, i.e. the Spring and Fall.
X
7.25.4.5 Aggregate Type: Crushed stone, gravel, shale, limestone, etc. Foreign materials, i.e., pyrite, clay, ferrous compounds, dirt and organic material are not acceptable.
X
Aggregate Sieve Analysis % Passing X
1/2" 100% X
3/8" 70 - 80% X
1/4" 60 - 80% X
No. 4 60 - 70% X
No. 8 40 - 60% X
No. 12 30 - 50% X
No. 16 20 - 40% X
No. 30 20 - 30% X
No. 50 10 - 20% X
No. 100 2 - 6% X
No. 200 60 - 70% X
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Washed 0 - 2% X
7.25.4.6 Plant, equipment, machines, and tools - The bituminous plant should be capable of producing the quantities of bituminous mixtures required. Hauling, placing and compaction equipment should be provided in sufficient numbers that the placement capacity at the site is equal to, or greater than, the planned plant output to the site.
X
7.25.4.7 Paver - All pavements, where applicable, should be placed with a self-propelled asphalt paver. The screed width should be adjustable to no less than eight feet (8'). Only hydraulic screed and auger extensions to achieve widths greater than that of the main screed are acceptable.
X
7.25.4.8 Compaction Equipment - Compaction equipment should consist of steel drum asphalt rollers of sufficient size and width to properly compact the hot mix asphalt to the required compaction, while providing a smooth surface free from bumps, marks and creases.
X
7.25.4.9 Transportation Equipment - Transportation of the hot mix asphalt to the site from the asphalt plant should be in trucks having tight, clean, smooth beds lightly coated with an approved releasing agent. Each load should be covered with a canvas or other approved material of ample size to protect the mixture from cooling.
X
7.25.4.10 Straightedge - The contractor should furnish and maintain at the site, in good working condition, one 10' straightedge for each paver.
X
7.25.5 Placement and Compaction X
7.25.5.1 Hot mix asphalt courses should only be placed on the specified base, free from contamination and with no free water on the surface.
X
7.25.5.2 Paving operations should not be scheduled unless there is ample time to place, compact and finish roll the hot mix asphalt.
X
7.25.5.3 The range of temperatures for mixtures to be dumped into the paver should be determined by State Department of Transportation guidelines, and in no case should they be cooler than 225 degrees F.
X
7.25.5.4 Paving operations should provide a mat that is smooth, dense and of the proper thickness, slope and plane.
X
7.25.5.5 The leveling course should be placed such that the longitudinal joints of the leveling course are offset from that of the base course. Transverse joints should be offset a minimum of 24".
X
7.25.5.6 In placing each succeeding pass after the initial one, the screed of the paver should be set so that it overlaps the preceding pass by 2" and be sufficiently high so that when compacted, a smooth joint is produced. Prior to pinching the joint, the excess material should be pushed onto the edge of the new pass with a lute. Excess material should be removed and wasted.
X
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7.25.5.7 Breakdown rolling should begin as soon after the placement as the mixture will allow without undue displacement. No delays in rolling should be permitted. After breakdown rolling has been completed, preliminary testing of grade, slope and planarity should be done. Any deficiencies should be immediately corrected in accordance with "Acceptability of Work." When the paving Contractor is assured that all tolerances are being met, finish rolling should begin.
X
7.25.5.8 Deficient areas within the base course should be corrected by saw cutting or milling high spots and/or by truing and leveling low spots.
X
7.25.5.9 Deficient areas in the leveling course should be corrected by saw cutting or milling to a depth equal to the thickness of the mat. Tack coat should be applied to all edges and the pavement should be replaced. Skin patching of the leveling course should only be done with materials acceptable to the track surfacing contractor.
X
7.25.5.10 Leveling of the asphalt before installing the final surface is the same as for post tension concrete surfaces or per the surface manufacturer requirements..
X
7.25.6 Acceptance of work - Upon completion of the work and/or prior to installing the surface system, the base and leveling course should be inspected for:
X
7.25.6.1 Grade conformance tests should be conducted on both the base course and the leveling course. The entire surface should have positive drainage.
X
7.25.6.2 Planarity - After completion of the finish rolling operations on each course, the compacted surface should be tested with a 10' straightedge. Measurements should be made perpendicular to and across all mats at a distance not to exceed 25'. The track surfacing contractor and/or Member's representative should be present when these measurements are made. The maximum allowable planarity deviation within a pass should be 1/8" in 10' when measured in any direction.
X
7.26 Quality Assurance X
7.26.1 The work shall conform to the USTC & ASBA's standards for court construction. The court surface will be applied by a licensed firm, which has been installing the material for the past five (5) years.
X
7.26.2 Installing foreman must have at least five (5) years’ experience installing this type of system.
X
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7.26.3 Site preparation may include removing trees, bushes and a minimum of 4" of topsoil if existing conditions require such action. The area will be graded to the required depth to accommodate the base and concrete thickness and provide a uniform 1% slope at ±.1' in one plane. All fills will be placed in 6" layers and will be compacted to 90% standard density at optimum moisture. The contractor will alert the Member of any "soft spots" or structures that could affect the stability of the slab. The site preparation will be done so as to provide positive drainage away from the play courts and, if needed, to provide intercepting swales to prevent drainage on to the court. The final grade base material shall be placed with automatic laser-regulated equipment capable of providing a true accurate plane to a 1/4". The depth of the fine grade base material shall be sufficient to develop a 1/4" accuracy.
X
7.26.4 Site preparation materials may consist of the existing sub-grade material unless a soil engineer specifies import fill. The fine grade base materials shall be an approved compactable, free-draining base material (sand, fine gravel, etc.).
X
7.27 Guarantee - The Contractor is to provide a written guarantee against defective materials or faulty workmanship, excessive color change, excessive wear, and any other feature which is not deemed ordinary wear of an all-weather tennis/basketball court for a period of not less than five (5) years.
X
7.28 Tennis Court Accessory Materials to include but not limited to: X
7.28.1 Net Posts and Sleeves Equipment X
7.28.2 Center Strap Anchor X
7.28.3 Tennis Nets X
7.28.4 Wind Screens X
7.28.5 Backdrop Curtains X
7.28.6 Court Dividers X
7.28.7 Crack repair X
7.29 Basketball Court Accessory Materials to include but not limited to: X
7.29.1 Goal Post X
7.29.2 Backboards X
7.29.3 Mesh nets X
7.29.4 Hoop rings 18" X
7.29.5 Crack repair X
7.3 Tracks Accessory Materials to include but not limited to: X
7.30.1 Cages for Discus, Hammer, and Shot Put X
7.30.2 Hammer and Discus Conversion X
7.30.3 Discus Rings X
7.30.4 Long and Triple Jump Take-off Systems X
7.30.5 Pole Vault Boxes and Pits X
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7.30.6 Long Jump Sandpits and Traps X
7.30.7 Shot Put Toe Boards X
7.30.8 Shot Put Rings X
7.30.9 Throws Circles X
7.30.10 Running Track Covers X
7.30.11 Re-Striping Existing Running Tracks X
7.30.12 Take-Off Boards X
7.30.13 Water Jump Hurdle With Sleeves X
7.30.14 Water Jump Cover X
7.30.15 Removable Track Curbing X
7.30.16 Sand - All sand for the long/triple jump sand pits shall be clean, washed, white sand, containing not more than five percent (5%) clay and shall be free of trash, organic matter, and rock. Installed sand shall meet all specifications of the IAAF - washed river sand, 0 to 2mm graining, no organic components, max 5% of weight up to 0.2mm. Prior to installation, the Offeror shall provide the Member with a one (1) gallon sample for approval.
X
7.31 Replacement of grass or re-seeding of natural grass as part of the track or court project.
X
7.32 Warranty X
7.32.1 All warranties will begin on the date of final acceptance by the Member. The minimum warranty for systems offered is five (5) years non-prorated warranty.
X
7.32.2 All products and services offered must be guaranteed free from defects and faulty workmanship for a minimum period of One (1) year after final acceptance by the Member. The Offeror agrees to fix, resolve, and make right any claims at no additional cost to AEPA Member during this period.
X
7.32.3 Contractor will pay for any failure to conform or for any defect. In addition, Contractor will fix any damage to Member/Participating Entity-controlled, real or personal property when that damage is the result of Contractor's failure to conform to contract requirements or any defect in equipment, material, workmanship, or design furnished or in compliance with federal, state and local laws, codes, regulations and standards. Contractor's warranty with respect to work done, repaired or replaced under these conditions will run for One (1) year from the date of repair or replacement or completion.
X
7.32.4 If Contractor fails to remedy any failure, defect or damage within a reasonable time after receipt of notice, the Member/Participating Entity will have the right to replace, repair or otherwise remedy the failure, defect or damage at the Contractor's expense in accordance with laws of the AEPA Member State.
X
AEPA IFB #016 - H Track & Courts Page 1 of 41 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part B: Specifications Part B: Specifications
INVITATION FOR BID
AEPA IFB #016-H
ATHLETIC SURFACES – TRACKS AND COURTS
PART B – SPECIFICATIONS
TABLE OF CONTENTS
1. Scope of Bid ......................................................................................................................................... 1 2. Type of Bid ........................................................................................................................................... 2 3. Anticipated AEPA Member Agency Participation .......................................................................... 2 4. Glossary of Terms and Abbreviations .............................................................................................. 3 5. Special Terms and Conditions ........................................................................................................... 3 6. Standard Specifications [Fixed Specifications] ................................................................................ 4 7. Product | Category Specific Specifications ....................................................................................... 6 8. Pricing – See Pricing section in Part A – General Terms & Conditions for details .................... 41
**********************************************************************************************
1. Scope of Bid
AEPA is seeking qualified, experienced contractor(s) who possess the necessary resources and capabilities to acquire, deliver and perform the required supplies, materials equipment and labor to all participating member states (up to 26) necessary to:
Respond to request from AEPA member organizations which represent a number of different types of educational, governmental and public institutions seeking equipment, materials, and supplies, necessary to design, install, site preparation, materials testing, maintenance, renovation, and repair of running tracks and athletic courts of all sizes and shapes. Also to provide as an options, equipment and installation services for in-ground equipment and accessories; maintenance equipment and supplies; and service for replacement or re-seeding of natural grass.
These parts and supplies will include but are not limited to: different types of surfaces for running tracks and athletic courts, in-ground equipment and accessories; irrigation and drainage systems;
Types of services may include, but are not limited to: construction, design and engineering services; installation and site preparation services; soil and materials testing, surface testing; warranty; maintenance; etc.
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2. Type of Bid
This bid is considered a:
YES NO TYPE OF BID
√
CATALOG: A catalog bid is utilized when the products and/or services solicited are clearly identified with set and specific characteristics, attributes and configurations that are identifiable as a stand-alone single unit and can be listed and priced as a single unit with options that can be added to enhance and/or improve its operation and functionality. The Bidder offers a fixed discount(s) off retail price or prices in a Commercially Available Catalog. The discounts may be for the entire Commercially Available Catalog, for specific products, product lines, manufacturers or category of products as determined by the Bidder. See Pricing section for detailed information on Catalog Pricing.
√
LINE- ITEM: A line-item bid is utilized when the products and services solicited cannot be identified or listed as a single unit; consists of a number of different variables and configurations, it is necessary to identify the specific project or application; the end product or solution is made of individually priced elements or components and the end product’s or solution’s cost is derived by the Vendor Partner specially prepared and providing a quote based on the project’s terms, conditions and requirements. See Pricing section for detailed information on Line-Item Pricing.
3. Anticipated AEPA Member Agency Participation
State
Parti-cipate?
Yes/No/
Undecided
Other States
Member Sells In
Est. 1st Year
Purchase Volume
% Growth
for Year 2-4 State
Parti-cipate?
Yes/No/
Undecided
Other States
Member Sells In
Est. 1st Year Purchase Volume
% Growth
for Years
2-4 California Yes AZ,NV 0 Nebraska Yes 100,000 10% Colorado Yes 200,000 10% New Jersey Yes 1,000,000 10%
Connecticut Yes MA,ME,NH, NY, RI,VT 500,000 10% New Mexico Yes 0
Florida Yes AL,GA North Dakota Yes 500,000 2% Indiana Yes 100,000 1% Ohio Yes 2,000,000 5% Iowa Yes IL,SD Oregon Yes 660,000 100%
Kansas Yes OK 1,000,000 2% Pennsylvania No DE,HI, MD,NY, 0
Kentucky Yes AL,GA,LA,MS, NC,SC,TN,WV 100,000 2% Texas Yes 200,000 20%
Massachusetts Yes 0 Virginia Yes 500,000 2-5% Michigan Yes 0 Washington No AK,ID 3,000,000 5% Minnesota Yes SD 1,000,000 2% West Virginia Yes 5,000 50% Missouri Yes AR,IL,LA,SD 0 Wisconsin Yes 0 Montana Yes ID 75,000 10% Wyoming Yes SD,UT 0
Total 25 $10,490.000
Please note that individual AEPA Member Agencies that have indicated that they intend to participate in any contract approved under this solicitation, does not guarantee or mean that the individual AEPA Member Agency will enter into a contract with any AEPA approved Vendor Partner. Each AEPA Member Agency will make that determination after reviewing Vendor Partner responses and AEPA’s recommendation for acceptance and bid award. The AEPA Member Agency’s contracting decision shall be final. The above information relating to the estimated/projected volume for the first year for this solicitation is provided based on submittals from its members. AEPA Member Agencies anticipate that purchase volumes
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will increase in contract years two (2) through four (4). This information is provided as an aid to Bidders in preparing responses only. It is not to be considered a guarantee of volume under this IFB. The successful Vendor Partner’s discount and pricing schedule shall apply regardless of the volume of business under the contract.
4. Glossary of Terms and Abbreviations
Abbreviations and Acronyms for Standards and Regulations: Where abbreviations and acronyms are used in specifications or other contract documents, they shall mean the recognized name of the organizations responsible for the standards and regulations in the following list. Names, telephone numbers, and websites are subject to change and are believed to be accurate and up-to-date as of the date of the contract documents.
4.1 Base Materials: Materials that provide porosity and stability such as crushed aggregate or porous pavement.
4.2 Drainage System: A method of removing surface and subsurface moisture/water.
4.3 Water Permeability: The rate at which water flows through a surface or system cross-section or components of the cross-section.
4.4 Planarity: Uniformity of the surface as compared to certain fixed predetermined points or prescribed slopes.
4.5 Sub-grade: A stabilized foundation onto which the base materials and field systems are installed.
4.6 Abbreviations that may be referenced in the specifications.
4.7 Amateur Athletic Union (AAU)
4.8 American Society for Testing and Materials (ASTM)
4.9 Federation of International Football Association (FIFA)
4.10 International Amateur Athletic Federation (IAAF)
4.11 National Collegiate Athletic Association (NCAA)
4.12 American Sport Builder Association
4.13 National Federation of State High School Associations (NFHS).
4.14 ASTM F 2157-09 Standard Specification for Synthetic Surfaced Running Tracks - This specification establishes the minimum performance requirements and classification when tested in accordance with the procedures outlined within this specification.
5 . Special Terms and Conditions
5.1. Acceptable bid security will be in an amount of $25,000 with the principal being the Bidder and the Association of Educational Purchasing Agencies being the Agency of Record. Bid Security may be a one-time bid bond underwritten by a surety company licensed to issue bid bonds in the state of Nevada and said surety to be approved in federal circular 570 as published by the United States treasury department or the equivalent in cash or an irrevocable letter of credit from a FDIC financial institution. The bid security shall remain in force for one hundred twenty (120) days of bid opening.
5.2. The Vendor Partner will warranty all parts and materials for at least 90 days from date of purchase or manufactures’ warranty, whichever is longer.
5.3. Vendor Partner will endeavor to supply products that are made in the United States of America.
5.4. Contractor's License: Each of the 26 states covered by this solicitation has its own state licensing qualifications, requirements and processes. The offeror is responsible for knowing
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each state’s requirements and codes. At the time of the response, offeror must be able to comply with all licensing requirements. For those states where licenses are required, a copy of the appropriate licenses authorizing the offeror to undertake or purports to undertake, supervise, subcontract others, to construct or to provide services and materials described herein, shall be provided within 5 business days of request, and must have been in effect as of the date this bid was issued. If the offeror intends to subcontract with other qualified distributors, dealers or firms, the subcontractors must be listed and copies of their licenses shall be submitted by the offeror within 10 business days following request. All required licenses will be kept current and in compliance with the rules and regulations of each state’s regulatory agency.
5.5. Any contract awarded under this Category is an indefinite-quantity contract for synthetic turf with or without installation. All costs associated with preparing quotes/job orders/cost proposals shall be the responsibility of the contractor and must be based on a detailed scope of work and in compliance with one of the approved pricing methodologies.
5.6. The Offeror must be willing and able to demonstrate its past experience on at least five (5) acceptable athletic running tracks or court in the United States within the past three (3) years.
5.7. The Offeror must have the capacity to provide design, site inspection, site preparation and construction services for athletic running tracks and courts. These services may be provided by the Offeror’s own staff or by subcontractors contracted and supervised by the Offeror.
5.8. The Offeror is responsible for ensuring that the design and construction drawings and manual clearly indicate, identify and communicate the products, services and testing that must be provided to deal with site preparation and public utilities; sub-base-works, drainage systems; and athletic running tracks or court that comply with AAU, NCAA, FIFA, and state requirements.
5.9. For any project the proposer must comply with the Americans with Disabilities Act (ADA) (42 USC Section 12101 et seq.) and the Americans with Disabilities Act Architectural Guidelines (ADAAG), as well as the implementing requirements, 28 CFR Part 36, Federal Register, Vol. 56, No. 144, July 26, 1991, as amended.
5.10. The Offeror must possess a knowledge and understanding of all federal, state, and local government codes, regulations and building codes dealing with the construction and installation of athletic running tracks or court surfaces.
5.11. If any specification is in conflict with the surface manufacturer specifications, surface manufacturer specifications will prevail.
5.12. The Contractor will provide at a minimum a written maintenance manual to the AEPA Member on completion of the project that includes day-to-day operating instructions, maintenance and repair methods and availability of repair materials, including cost.
5.13. Provide required manufacturer’s Product Data and Material Safety Data Sheets for products provided.
5.14. The must provide written specifications for each type of surface that it is offering for running tracks, tennis, or basketball courts that will be offered.
6 . Standard Specifications [Fixed Specifications]
Item Description 6.1 The Vendor Partner will have access to a full inventory of the awarded product
line. 6.2 The Vendor Partner shall maintain a minimum monthly overall average fill rate
of 95% or above. Line items that are reordered, backordered, or partially filled are not considered filled line items when calculating this service level.
6.3 Orders must be shipped within 48 hours after receipt of an order 90% of the time. The Vendor Partner will notify the Buyer if product ordered cannot be shipped within this time period to provide the opportunity to secure product elsewhere.
6.4 Vendor Partners must be a manufacturer’s authorized sales and service dealer for all proposed equipment/software. An authorized sales and service dealer is defined in this solicitation as one purchasing their products for resell directly
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Item Description from the manufacturer(s) or the manufacturer’s approved channels. Products that result from new authorized sales and service dealer arrangements between the Vendor Partner and the manufacturer during the term of this contract may be added and offered through the AEPA contract.
6.5 All charges and components necessary for performance of the contract shall be clearly identified even if such are not specifically addressed in any paragraph or sub-paragraph or form that is a part of this request.
6.6 If the Vendor Partner intends to utilize independent agents/distributors, subcontractors and/or third-party agents to perform and/or provide any part of the products and services offered herein, the Vendor Partner must identify all providers and any and all associated costs with these providers.
6.7 Optional services must be identified separately, and must include clear descriptions of proposed services.
6.8 Vendor Partners must provide a product or mix of products in a manner that will allow Buyers to migrate to emerging technologies/services and between legacy technologies with no penalty charge associated with maintaining the most appropriate selections of goods and services throughout the life of the contract.
6.9 Vendor Partners must be able to supply paper catalogs where requested. The catalog shall have a cover label indicating that the catalog’s contents are available through the participating Member Agency and the AEPA contract. The label shall identify the agency’s contract number, discount level(s) and any special ordering instructions.
6.10 Packing slips shall accompany all deliveries and shall contain Buyer’s purchase order number, vendor name and name of article. Cartons shall be identified by purchase order number and vendor name.
6.11 Orders not filled and partials shall be indicated on the packing list. Vendor Partner shall inform member of anticipated availability date for unfilled and partial orders.
6.12
All products sold by the Vendor Partner must be new. Only the newest versions of software and equipment will be bid. Older versions will only be sold, if specifically requested. Vendor Partner may offer reconditioned products as a Voluntary Alternate; such items shall be marketed and labeled as being reconditioned.
6.13 Products that have a 30/60/90 day money back guarantee will be clearly identified in the catalog and on the web site (if applicable).
6.14 Vendor Partner has the option to offer private label products. Vendor Partner shall maintain the same manufacturer specifications for private label products throughout the term of contract. Any change of manufacturers for a private label shall result in offerings equal to or superior to the originally approved manufacturer at a price equal to or lower than the original offering.
6.15 Vendor Partner must maintain a toll free technical support line open 8 a.m. Eastern Time zone until 5 p.m., Pacific Time zone, Monday through Friday. Calls must be answered by a live US technician.
6.16 Vendor Partner must have a 24-hour toll-free order fax line. 6.17 If the Vendor Partner makes an error in pricing (typographical or photographic
error, for example), the Buyer reserves the right to return the product. The Vendor Partner agrees to pay for cost of any returned product due to a pricing error.
6.18 Vendor Partner shall provide a Safety Data Sheet (SDS) for all items sold, if required. A separate sheet shall be provided for each individual item when purchase is made.
6.19 Orders that are $50.00 or more shall include free shipping. Vendor Partner shall bid a flat rate for all orders that are less than $50.00 regardless of where to be shipped in the continental United States.
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7. Product | Category Specific Specifications
Item Description
7.1 The standards and specifications provided below are intended to establish minimum requirements and provide a general overview of the quality and type of products and services being requested.
7.1.1 Any products and services offered are to meet or exceed all local and state building codes.
7.1.2 All surface offered are to meet the requirements of ASTM F 2157-09 Standard Specification for Synthetic Surfaced Running Tracks - This specification establishes the minimum performance requirements and classification when tested in accordance with the procedures outlined within this specification.
7.1.3 The products and services may include, but are not limited to, the following.
7.1.3.1 Provide technical and consulting services relating to running track or athletic court surface design, characteristics, construction, and integration into the development of a new athletic or recreational facility.
7.1.3.2 Provide existing site inspection and investigation to identify soil conditions existing at the site in order to take into account the conditions found in the designing of athletic and recreational fields. The investigation shall include, but not be limited to:
7.1.3.3 Stripping, placement of backfill and base construction in order to ensure the minimization of the risk of problems due to subsoil and subgrade conditions.
7.1.3.4 Soil inspection for the existence of peat or other organic soils at the site.
7.1.3.5 Inspection for uncontrolled fill materials or waste materials at the site.
7.1.3.6 Inspection for expansive soils at the site.
7.1.3.7 High ground water conditions or surface water retention areas (low area flooding).
7.1.3.8 Provide all labor, materials, equipment and drawings required to provide design services for a project cost proposal with a complete scope of work, including all products, services and running track or athletic court specifications with their associated costs. A preliminary construction time schedule shall be a part of the project proposal.
7.1.3.9 Provide all labor, materials, equipment, project drawings and construction documents necessary to establish, construct, install lines and markings required to complete the running track or athletic court as identified and specified within the project documents for the individual Member's project scope of work and documents.
7.1.3.10 Provide all labor, materials and equipment required to assess and evaluate existing facilities, and develop and establish a plan of action for maintenance, repair and/or renovation of the existing athletic or recreational surface to condition as required by the Member.
7.1.3.11 Provide ongoing technical support and training services for AEPA Member's staff relating to the maintenance and operation of these types of surfaces to ensure their good operational condition.
7.1.3.12 The running track or athletic court should provide the performance characteristics, components, and construction that meet the needs of the
AEPA IFB #016 - H Track & Courts Page 7 of 41 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part B: Specifications Part B: Specifications
Item Description
declared use and/or functions.
7.1.3.13 The running track or athletic court and all of its components should be resistant to moisture, rot, mildew, bacteria, fungus growth, ultraviolet ray degradation, non-toxic, not cause commonly known allergic reactions at all field locations, and meet AEPA Member local state and environmental requirements.
7.1.3.14 Each running track or athletic court should be constructed to resist damage from wear and tear during athletic and recreational usage.
7.1.4 Any Project to Include:
7.1.4.1 Assess and determine existing site conditions and Member's expectations for the project.
7.1.4.2 Develop a proposed solution to conform to and meet the Member's expectations while considering and ensuring the following:
7.1.4.3 The solution proposed is adequate and functional within the existing site conditions and will comply with all building codes.
7.1.4.4 Provide labor, materials, equipment and supervision necessary to complete installation of running track or athletic court, including the following:
7.1.4.4.1 Site inspection and investigation.
7.1.4.4.2 Site preparation and sub-base.
7.1.4.4.3 Inspection and approval of sub-base.
7.1.4.4.4 Installation of proposed running track and athletic court system with accessories, striping and equipment.
7.1.4.4.5 Provide cost estimates and information relating to after-the-sale ongoing inspection and maintenance services to ensure proper operation and upkeep of the running track and athletic court.
7.1.4.4.6 Construction and installation services to prepare and install proposed running track or athletic court on the designated site in accordance with the shop drawings, striping plan and manufacturer's instructions and specifications.
7.1.5 Guarantee the usability and playability of the synthetic turf system for its intended uses for a five (5) year period commencing with the date of substantial completion and acceptance by the Member for surface and ten (10) years for the base. The warranty coverage shall not be limited to the amount of usage.
7.1.6 Prior to order of materials, the contractor shall submit the following:
7.1.6.1 Sample warranty.
7.1.6.2 Seam layout of the field and striping plans.
7.1.6.3 Details on construction, especially any details that may deviate from plans and specifications.
7.1.6.4 Prior to the beginning of installation, the manufacturer/installer of the synthetic turf shall inspect the sub-base and supply a Certificate of Sub-Base Acceptance for the purpose of obtaining manufacturer's warranty for the finished synthetic playing surface.
7.2 Track Surface- Latex
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Item Description
7.2.1 Latex surfaces are generally defined as rubber particles of a specified size, shape and composition, bound together by a water-based resin binder. They are resilient, all weather surfaces. Most are permeable.
7.2.2 Materials
7.2.2.1 Water- Water used in dilution must be fresh and potable.
7.2.2.2 Primer
7.2.2.2.1 Most latex systems require a primer application to promote adhesion between the resilient surface and the asphalt or concrete base.
7.2.2.2.2 Depending on the proprietary system, the binder may be latex or an asphalt emulsion.
7.2.2.3 Asphalt Emulsion - Asphalt emulsion is an asphaltic cement suspended in a water vehicle.
7.2.2.4 SBR Latex Binder
7.2.2.4.1 SBR latex is water-based resin used to bind rubber particles.
7.2.2.4.2 It is comprised of varying proportions of styrene and butadiene monomer in a water vehicle.
7.2.2.4.3 Other types of latex binders used as track binders include vinyl, acrylics and a variety of combinations.
7.2.2.5 SBR Rubber Particles
7.2.2.5.1 SBR rubber particles are generally post-industrial by-products that have been shredded or chopped to a specific size, shape and gradation.
7.2.2.5.2 The characteristics of the rubber particles selected to be defined in the specification.
7.2.2.6 EPDM Rubber
7.2.2.6.1 EPDM rubber highly pigmented rubber compound chopped to a specific size for use as a wearing surface.
7.2.2.6.2 Available in a wide range of colors and sizes.
7.2.2.6.3 The compatibility of the EPDM granules and the latex binder be determined prior to installation.
7.2.2.7 Surface Coating
7.2.2.7.1 Surface coating is the final wearing finish applied to the resilient surface.
7.2.2.7.2 It is used to provide protection from ultraviolet light degradation and to provide additional wear resistance and color uniformity.
7.2.2.7.3 The coating may be formulated with a variety of binder types, including SBR, acrylic latex or polyurethane. The system installer should insure compatibility.
7.2.3 Systems
7.2.3.1 The materials listed above may be used in a wide variety of combinations to meet the requirements of AEPA Member. In no case should the recommended thickness of the system selected be less than 1/2" (12.5mm) when measured in accordance with USTC & TBA standards. The four
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general typed of latex track surfaces are as follows:
7.2.3.1.1 Black Mat - A black mat system is composed of black SBR rubber or black EPDM rubber particles bound by SBR latex or an approved alternate water-based resin. The surface coating is highly pigmented black SBR or acrylic latex.
7.2.3.1.2 Colored Binder - This system consists of black EPDM or black SBR rubber particles bound by a pigmented latex binder or an approved alternate water-based resin. The surface coating should be a highly pigmented UV stable coating of adequate thickness and durability to resist wear patterns with normal use.
7.2.3.1.3 Color Sandwich - This system of black EPDM or black SBR rubber particles bound by latex has a wearing course of at least 1/8" (3mm) of pigmented (other than black) EPDM granules bound by pigmented SBR latex binder or an approved alternative water-based binder. The surface coating should be a highly pigmented, UV stable coating to provide uniform color to the system.
7.2.3.1.4 Full Depth Color - This system consists of colored EPDM granules (not black) bound by pigmented SBR latex binder or an approved alternative water-based binder. The surface coating should be a highly pigmented, UV stable coating to provide strength and color uniformity. This system is used in high traffic areas in conjunction with either the Color Sandwich or the Colored Binder System.
7.2.4 Thickness and Specific Gravity
7.2.4.1 Each surface system should be at least 1/2" (12.5mm) in total thickness to allow for variation in the underlayment and to prevent spiked shoes from penetrating to the base layer, potentially disrupting the bond. Both SBR and EPDM rubber particles will vary in specific gravity and bulk density value of rubber. This coupled with the application methods, shape and size will affect the rubber required to achieve 1/2" thickness. The chart below is intended for guidance for 1/2":
Color/Type Size/Shape Specific Gravity Lbs./Sq. Yd.
Black SBR Granules 1.15 - 1.40 10.0 - 12.0
Black SBR Medium Strands 1.15 - 1.25 8.5 - 10.0
Black EPDM Granules 1.30 - 1.50 10.5 - 12.0
Colored EPDM Granules 1.40 - 1.60 13.0 - 15.0
7.2.5 Variety of Shape, Size & Composition
7.2.5.1 Each system manufacturer makes specific recommendations on the ratio of binder to rubber particles The variety of particles, their shape, size and composition will cause the volume of binder to vary. Each system should specify the ratios required in the following format:
7.2.5.1.1 Total dry pounds of latex undiluted binder.
7.2.5.1.2 Total pounds of the specified rubber particle.
7.2.5.1.3 For colored binder and color sandwich systems, the quantity of pigment per 55 gallons of latex binder.
7.2.6 Material Delivery
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7.2.6.1 All material must be delivered to the job site in labeled and marked containers.
7.2.6.2 All packaging and excess materials must be disposed of in accordance with state, local and federal standards and regulations.
7.2.6.3 Do not allow liquid binders to freeze.
7.2.6.4 Quantities needed to complete the project in accordance with the manufacturer's specifications should be verified.
7.2.7 Installation Equipment
7.2.7.1 All installation equipment including mixers, pavers, sprayers and hand tools should be kept free of moisture while in use.
7.2.7.2 Tools to be cleaned daily.
7.2.7.3 No equipment or vehicles used in the installation process should leak any gas, petroleum products, solvents, etc.
7.2.8 Surface Preparation
7.2.8.1 The asphalt or concrete base should be sufficiently cured and cleaned in order for work to progress.
7.2.8.2 Recommended cure times - 14 days for asphalt, 28 days for concrete.
7.2.8.3 Prior to installation of the latex track system, the entire base should be checked for planarity and surface tolerance.
7.2.8.4 Any areas that vary +/- 1/4" measured with a 10' straightedge in any direction should be patched with a compound compatible with the asphalt or concrete base and approved by the latex track manufacturer.
7.2.8.5 After patching, the surface should not allow water to stand greater than 1/16" deep one hour after rain has ended.
7.2.9 Installation
7.2.9.1 Latex track surfacing may be applied successfully by a variety of application methods.
7.2.9.1.1 Layered Installations will specify the volume/lbs. of surfacing to be placed in each layer.
7.2.9.1.2 Temperature & Humidity
7.2.9.1.2.1 Latex track surfacing is dependent on evaporation for drying and curing.
7.2.9.1.2.2 No material may be placed if ambient temperature is not at least 50 degrees F and rising.
7.2.9.1.2.3 Relative humidity above 50% will increase the drying time.
7.2.9.1.2.4 Low temperature and high humidity may lead to incomplete curing.
7.2.9.1.3 Surface Thickness - Before the final surface coating is applied, the owner and the contractor will determine that the desired surface thickness has been achieved by checking the surface in accordance with USTC & TBA test methods.
7.2.10 Line Markings
7.2.10.1 The surface system manufacturer must approve the type and brand of
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marking paint used.
7.2.10.2 All lane and event markings should be in accordance with the applicable governing body.
7.3 Track Surface- Polyurethane Tracks Base Mat
7.3.1 A polyurethane base mat system is a homogenous blend of EPDM or SBR rubber granules and polyurethane binders that are evenly spread in a monolithic application over an asphaltic or concrete base. The system is a resilient all weather surface designed to allow moisture to pass through the surface. The system has a smooth finish and may be applied for both indoor and outdoor use.
7.3.2 Materials - A variety of products may be used in the construction of the track surface.
7.3.2.1 Primer
7.3.2.1.1 The primer is a mixture of polyurethane binder and a viscosity reduction vehicle that allows for a light film application.
7.3.2.2 Polyurethane
7.3.2.2.1 The polyurethane binder is a single component, 100% solids, moisture cure, elastic pre- polymer, designed to bind rubber granules together.
7.3.2.3 SBR/EPDM Black Rubber
7.3.2.3.1 Fully cured rubber granules that may either be ambient or cryogenically ground from post- industrial by-products to a size of not less than 1 nor more than 4mm.
7.3.2.3.2 The general cut of the granules should be cubicle, should contain less than 4% dust and be free of foreign debris and should not contain any other color within the granule.
7.3.2.4 Colored EPDM Rubber
7.3.2.4.1 Colored EPDM granules should be ground from fully cured virgin slabs of peroxide- or sulfur- cured rubber (the curing process must be compatible with the polyurethane chemicals being used).
7.3.2.4.2 The EPDM content should be not less than 20%. The general cut of the granules should be cubicle and they should contain less than 4% dust.
7.3.3 Thickness, Weight and Specific Gravity
7.3.3.1 Each surface system should be at least 1/2" (12.5mm) in total thickness to allow for variation in the underlayment and to prevent spiked shoes from penetrating to the base layer, potentially disrupting the bond.
7.3.3.2 The total weight of the system is contingent upon the depth of the surface and the specific gravity of the materials.
7.3.3.3 Both SBR and EPDM rubber particles will vary in specific gravity and bulk density value of rubber. This coupled with the application methods, shape and size will affect the rubber required to achieve 1/2" thickness. The chart below is intended for guidance. Color/Type per 1/8":
Color/Type Size/Shape Specific Gravity Shore A Harness
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Black SBR 1-4 mm Granules 1.15 - 1.40 55-70
Black SBR 1-4 mm Granules 1.20 - 1.50 55-70
Black EPDM 1-4 mm Granules 1.40 - 1.60 55-70
7.3.4 Material Delivery
7.3.4.1 All materials should be delivered to the job site in labeled and marked containers.
7.3.4.2 Quantities needed to complete the project in accordance with the manufacturer's specifications should be verified.
7.3.4.3 All materials should be located to allow for work to proceed without interruption.
7.3.4.4 Do not allow liquid binders to freeze.
7.3.4.5 All packaging and excess materials must be disposed of in accordance with state, local and federal standards and regulations.
7.3.5 Installation Equipment
7.3.5.1 All installation equipment including mixers, pavers, sprayers and hand tools should be kept free of moisture while in use.
7.3.5.2 Tools to be cleaned daily.
7.3.5.3 No equipment or vehicles used in the installation process should leak any gas, petroleum products, solvents, etc.
7.3.6 Surface Preparation
7.3.6.1 The asphalt or concrete base should be sufficiently cured and cleaned in order for work to progress. Recommended cure times - 14 days for asphalt, 28 days for concrete.
7.3.6.2 Prior to installation of the track surface system, the entire base should be checked for planarity and surface tolerance.
7.3.6.3 Any areas that vary +/- 1/4" when measured with a 10' straightedge in any direction should be patched with a compound compatible with the base material and approved by the manufacturer of the track surfacing system.
7.3.6.4 After patching, the surface should not allow water to stand greater than 1/16" deep one hour after rain has ended.
7.3.7 Installation
7.3.7.1 Primer
7.3.7.1.1 The surface should be primed with the appropriate polyurethane primer using spray equipment or rollers.
7.3.7.1.2 Application rates range between 0.18 - 0.27 lbs. per square yard.
7.3.7.1.3 For an asphalt base, primer application may be reduced by the contractor when extreme heat conditions soften the asphalt.
7.3.7.1.4 Some manufacturers' systems will not require a primer.
7.3.7.2 Mixing
7.3.7.2.1 The rubber granules and polyurethane binder should be accurately measured and placed in a clean dry mixer and mixed until all granules are thoroughly
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coated with the polyurethane binder.
7.3.7.2.2 No evidence of water may exist during the mixing process.
7.3.7.2.3 The mixing ratio of rubber to binder should not be less than 5 parts rubber to 1 part binder as determined by the weight of the products.
7.3.7.2.4 The pot life of the mix should not be less than 45 minutes.
7.3.7.2.5 No agents are to be added to extend pot life.
7.3.7.3 Placement of Base Mat
7.3.7.3.1 The prepared material is placed evenly in front of the paving machine.
7.3.7.3.2 The machine should be operated at a speed and with the screed bar at an angle to provide a tight and smooth surface, free of chatter marks and voids.
7.3.7.3.3 The screed bars are to be constantly heated and should oscillate.
7.3.7.3.4 Material should be placed at the specified depth in a single application and allowed to cure.
7.3.7.4 Trowel Work
7.3.7.4.1 All seams are to be troweled smooth within the pot life of the material. All edges should be straight and rounded by turning the trowel. All cold dry seams should be cut straight at an inward angle and primed prior to commencing with subsequent work.
7.3.7.5 Arid Climates
7.3.7.5.1 To aid in the curing process in arid climates, it may be necessary to mist the surface with water upon completion of the day's work.
7.3.7.6 Line Markings
7.3.7.6.1 The surface system manufacturer must approve the type and brand of marking paint used. All lane and event markings should be in accordance with the applicable governing body.
7.4 Track Surface - Polyurethane Tracks Base Mat Structural
7.4.1 The polyurethane base mat structural spray system is a homogenous blend of EPDM or SBR rubber granules and polyurethane binders. The base layer is spread evenly in a monolithic application over an asphaltic or concrete base and followed with a structural spray-applied polyurethane and rubber blended coating. The system is a resilient all weather surface designed to allow moisture to pass through the surface. It has a textured finish and is used primarily in outdoor applications.
7.4.2 Materials
7.4.2.1 Primer
7.4.2.1.1 The primer is a mixture of polyurethane binder and a viscosity reduction vehicle that allows for a light film application.
7.4.2.2 Polyurethane
7.4.2.2.1 The polyurethane binder is a single component, 100% solids, moisture cure, elastic pre- polymer, designed to bind rubber granules together.
7.4.2.3 SBR/EPDM Black Rubber
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7.4.2.3.1 Fully cured rubber granules that may either be ambient or cryogenically ground from post- industrial by-products to a size of not less than 1 nor more than 4mm.
7.4.2.3.2 The general cut of the granules should be cubicle. They should contain less than 4% dust and be free of foreign debris.
7.4.2.3.3 They should not contain any other color within the granule.
7.4.2.4 Colored EPDM Rubber
7.4.2.4.1 Colored EPDM granules should be ground from fully cured virgin slabs of peroxide- or sulfur- cured rubber (the curing process must be compatible with the polyurethane chemicals being used).
7.4.2.4.2 The EPDM content should be not less than 20%. The general cut of the granules should be cubicle and they should contain less than 4% dust.
7.4.2.5 Colored EPDM Rubber
7.4.2.5.1 Colored EPDM Rubber (Structural Spray) Same as Colored EPDM Rubber, above, but the gradation of the granules should range from 0.5mm to a maximum of 3mm.
7.4.3 Thickness, Weight and Specific Gravity
7.4.3.1 Each surface system should be at least 1/2" (12.5mm) in total thickness to allow for variation in the underlayment and to prevent spiked shoes from penetrating to the base layer, potentially disrupting the bond.
7.4.3.2 The total weight of the system is contingent upon the depth of the surface and the specific gravity of the materials.
7.4.3.3 Both SBR and EPDM rubber particles will vary in specific gravity and bulk density value of rubber. This coupled with the application methods, shape and size will affect the rubber required to achieve 1/2" thickness.
7.4.4 Material Delivery
7.4.4.1 All materials should be delivered to the job site in labeled and marked containers.
7.4.4.2 Quantities needed to complete the project in accordance with the manufacturer's specifications should be verified.
7.4.4.3 All materials should be located to allow for work to proceed without interruption.
7.4.4.4 Do not allow liquid binders to freeze.
7.4.4.5 All packaging and excess materials must be disposed of in accordance with state, local and federal standards and regulations.
7.4.5 Installation Equipment
7.4.5.1 All installation equipment including mixers, pavers, sprayers and hand tools should be kept free of moisture while in use.
7.4.5.2 Tools to be cleaned daily.
7.4.5.3 No equipment or vehicles used in the installation process should leak any gas, petroleum products, solvents, etc.
7.4.6 Surface Preparation
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7.4.6.1 The asphalt or concrete base should be sufficiently cured and cleaned in order for work to progress. Recommended cure times - 14 days for asphalt, 28 days for concrete.
7.4.6.2 Prior to installation of the track surface system, the entire base should be checked for planarity and surface tolerance.
7.4.6.3 Any areas that vary +/- 1/4" when measured with a 10' straightedge in any direction should be patched with a compound compatible with the base material and approved by the manufacturer of the track surfacing system.
7.4.6.4 After patching, the surface should not allow water to stand greater than 1/16" deep one hour after rain has ended.
7.4.7 Installation
7.4.7.1 Primer
7.4.7.1.1 The surface should be primed with the appropriate polyurethane primer using spray equipment or rollers.
7.4.7.1.2 Application rates range between 0.18 - 0.27 lbs. per square yard.
7.4.7.1.3 For an asphalt base, primer application may be reduced by the contractor when extreme heat conditions soften the asphalt.
7.4.7.1.4 Some manufacturers' systems will not require a primer.
7.4.7.2 Mixing
7.4.7.2.1 The rubber granules and polyurethane binder should be accurately measured and placed in a clean dry mixer and mixed until all granules are thoroughly coated with the polyurethane binder.
7.4.7.2.2 No evidence of water may exist during the mixing process.
7.4.7.2.3 The mixing ratio of rubber to binder should not be less than 5 parts rubber to 1 part binder as determined by the weight of the products.
7.4.7.2.4 The pot life of the mix should not be less than 45 minutes.
7.4.7.2.5 No agents are to be added to extend pot life.
7.4.7.3 Placement of Base Mat
7.4.7.3.1 The prepared material is placed evenly in front of the paving machine.
7.4.7.3.2 The machine should be operated at a speed and with the screed bar at an angle to provide a tight and smooth surface, free of chatter marks and voids.
7.4.7.3.3 The screed bars are to be constantly heated and should oscillate.
7.4.7.3.4 Material should be placed at the specified depth in a single application and allowed to cure.
7.4.7.4 Trowel Work
7.4.7.4.1 All seams are to be troweled smooth within the pot life of the material.
7.4.7.4.2 All edges should be straight and rounded by turning the trowel.
7.4.7.4.3 All cold dry seams should be cut straight at an inward angle and primed prior to commencing with subsequent work.
7.4.7.5 Arid Climates
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7.4.7.5.1 To aid in the curing process in arid climates, it may be necessary to mist the surface with water upon completion of the day's work.
7.4.7.6 Line Markings
7.4.7.6.1 The surface system manufacturer must approve the type and brand of marking paint used.
7.4.7.6.2 All lane and event markings should be in accordance with the applicable governing body.
7.5 Track Surface - Polyurethane Tracks Base Mat Sandwich
7.5.1 The polyurethane base mat sandwich system is a homogenous blend of SBR rubber granules and polyurethane binder base layer spread evenly in a monolithic application follow by sealing. The sealant layer is a massive application of polyurethane coating with colored EPDM granules broadcast or encapsulated into the coating. This sealant layer makes the system impermeable. The system is a resilient all weather surface. It is textured and is used in both indoor outdoor applications.
7.5.2 Materials
7.5.2.1 Primer
7.5.2.1.1 The primer is a mixture of polyurethane binder and a viscosity reduction vehicle that allows for a light film application.
7.5.2.2 Polyurethane
7.5.2.2.1 The polyurethane binder is a single component, 100% solids, moisture cure, elastic pre- polymer, designed to bind rubber granules together.
7.5.2.3 Polyurethane Coating and Sealers
7.5.2.3.1 Two component 100% solids polyurethane coating consisting of a Part A colored polyol and Part B isocyanate activator.
7.5.2.3.2 Specific gravity of 1.15 to 1.30. The coating may be used for the top layer as well as the sealant layer.
7.5.2.4 Polyurethane Sealer
7.5.2.4.1 Two component 100% solids thixotropic polyurethane coating consisting of a Part A colored polyol and Part B isocyanate activator. Specific gravity of 1.45 -1.60.
7.5.2.4.2 The coating is applied without the adding of rubber dust and is used only as a sealer.
7.5.2.5 Polyurethane Aliphatic Top Coating
7.5.2.5.1 A single or two component aliphatic top coating applied to structural surfaces that need to be protected from UV degradation.
7.5.2.6 SBR/EPDM Black Rubber
7.5.2.6.1 Fully cured rubber granules that may either be ambient or cryogenically ground from post- industrial by-products to a size of not less than 1 nor more than 4mm.
7.5.2.6.2 The general cut of the granules should be cubicle, contain less than 4% dust, and be free of foreign debris, and not contain any other color within the
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granule.
7.5.2.7 Colored EPDM Rubber
7.5.2.7.1 Colored EPDM granules should be ground from fully cured virgin slabs of peroxide- or sulfur cured rubber (the curing process must be compatible with the polyurethane chemicals being used).
7.5.2.7.2 The EPDM content should be not less than 20%.
7.5.2.7.3 The general cut of the granules should be cubicle and they should contain less than 4% dust.
7.5.2.7.4 Colored EPDM rubber dust graded to -0.5 may be used as a thickener for the polyurethane coating in the sealing process.
7.5.3 Thickness, Weight and Specific Gravity
7.5.3.1 Each surface system should be at least 1/2" (12.5mm) in total thickness to allow for variation in the underlayment and to prevent spiked shoes from penetrating to the base layer, potentially disrupting the bond.
7.5.3.2 The total weight of the system is contingent upon the depth of the surface and the specific gravity of the materials.
7.5.3.3 Both SBR and EPDM rubber particles will vary in specific gravity and bulk density value of rubber. This coupled with the application methods, shape and size will affect the rubber required to achieve 1/2" thickness. The chart below is intended for guidance per 1/8":
Size/Shape Specific Gravity Shore A Harness
1-4 mm Granules 1.15 - 1.40 55-70
1-4 mm Granules 1.20 - 1.50 55-70
1-4 mm Granules 1.40 - 1.60 55-70
7.5.4 Material Delivery
7.5.4.1 All materials should be delivered to the job site in labeled and marked containers.
7.5.4.2 Quantities needed to complete the project in accordance with the manufacturer's specifications should be verified.
7.5.4.3 All materials should be located to allow for work to proceed without interruption.
7.5.4.4 Do not allow liquid binders to freeze.
7.5.4.5 All packaging and excess materials must be disposed of in accordance with state, local and federal standards and regulations.
7.5.5 Installation Equipment
7.5.5.1 All installation equipment including mixers, pavers, sprayers and hand tools should be kept free of moisture while in use.
7.5.5.2 Tools to be cleaned daily.
7.5.5.3 No equipment or vehicles used in the installation process should leak any gas, petroleum products, solvents, etc.
7.5.6 Surface Preparation
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7.5.6.1 The asphalt or concrete base should be sufficiently cured and cleaned in order for work to progress. Recommended cure times - 14 days for asphalt, 28 days for concrete.
7.5.6.2 Prior to installation of the track surface system, the entire base should be checked for planarity and surface tolerance.
7.5.6.3 Any areas that vary +/- 1/4" when measured with a 10' straightedge in any direction should be patched with a compound compatible with the base material and approved by the manufacturer of the track surfacing system.
7.5.6.4 After patching, the surface should not allow water to stand greater than 1/16" deep one hour after rain has ended.
7.5.7 Installation
7.5.7.1 Primer
7.5.7.1.1 The surface should be primed with the appropriate polyurethane primer using spray equipment or rollers.
7.5.7.1.2 Application rates range between 0.18 - 0.27 lbs. per square yard.
7.5.7.1.3 For an asphalt base, primer application may be reduced by the contractor when extreme heat conditions soften the asphalt.
7.5.7.1.4 Some manufacturers' systems will not require a primer.
7.5.7.2 Mixing
7.5.7.2.1 The rubber granules and polyurethane binder should be accurately measured and placed in a clean dry mixer and mixed until all granules are thoroughly coated with the polyurethane binder.
7.5.7.2.2 No evidence of water may exist during the mixing process.
7.5.7.2.3 The mixing ratio of rubber to binder should not be less than 5 parts rubber to 1 part binder as determined by the weight of the products.
7.5.7.2.4 The pot life of the mix should not be less than 45 minutes.
7.5.7.2.5 No agents are to be added to extend pot life.
7.5.7.3 Placement of Base Mat
7.5.7.3.1 The prepared material is placed evenly in front of the paving machine.
7.5.7.3.2 The machine should be operated at a speed and with the screed bar at an angle to provide a tight and smooth surface, free of chatter marks and voids.
7.5.7.3.3 The screed bars are to be constantly heated and should oscillate.
7.5.7.3.4 Material should be placed at the specified depth in a single application and allowed to cure.
7.5.7.4 Trowel Work
7.5.7.4.1 All seams are to be troweled smooth within the pot life of the material.
7.5.7.4.2 All edges should be straight and rounded by turning the trowel.
7.5.7.4.3 All cold dry seams should be cut straight at an inward angle and primed prior to commencing with subsequent work.
7.5.7.5 Arid Climates
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7.5.7.5.1 To aid in the curing process in arid climates, it may be necessary to mist the surface with water upon completion of the day's work.
7.5.7.6 Seal Coat
7.5.7.6.1 The seal coat is a mixture of the two component coating and EPDM rubber dust that is mixed and squeegee-applied to the base mat.
7.5.7.6.2 Alternatives are to squeegee-apply two component thixotropic polyurethane coating without rubber dust or spray binder and brush EPDM rubber dust into the base mat.
7.5.7.6.3 In all cases, sufficient material is to be applied to render the surface impermeable.
7.5.7.6.4 It is extremely important that the base mat and base are completely void of moisture before commencing with application of the seal coat.
7.5.7.7 Top Coat
7.5.7.7.1 The top coat is a massive flow application of the two component coating that is mixed according to the ratios of part A and B listed by the manufacturer.
7.5.7.7.2 The material is to be self-leveling and should be free of ridges.
7.5.7.7.3 Prior to initial set, colored EPDM rubber granules are broadcast with sufficient excess granules being applied to assist in the embedding process.
7.5.7.7.4 Normally 5 to 5.5 lbs. of granules per square yard will be embedded.
7.5.7.7.5 All loose excess granules are removed after initial cure.
7.5.7.7.6 The alternative top coating is a spray application of a two component coating and encapsulated EPDM rubber granules applied at an approximate ratio of 60% coating to 40% rubber to sufficiently protect the base.
7.5.7.8 Aliphatic Top Coating
7.5.7.8.1 If the encapsulated top coating is unprotected for UV resistance, then a thin mil layer of one or two component aliphatic top coating should be spray-applied, normally in two applications, over the surface in accordance to the manufacturer's recommendation.
7.5.7.9 Line Markings
7.5.7.9.1 The surface system manufacturer must approve the type and brand of marking paint used.
7.5.7.9.2 All lane and event markings should be in accordance with the applicable governing body.
7.6 Track Surfacing - Polyurethane Tracks Full Pour (Impermeable)
7.6.1 A full pour polyurethane system is the application of multiple layers of polyurethane coating and rubber, which may either, be black SBR or colored EPDM. The top layer is a massive application of polyurethane coating with colored EPDM granules broadcast or encapsulated into the coating. The system is a resilient all weather surface. It is textured and impermeable and is used in both indoor and outdoor applications.
7.6.2 Materials
7.6.2.1 Primer
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7.6.2.1.1 The primer is a mixture of polyurethane binder and a viscosity reduction vehicle that allows for a light film application.
7.6.2.2 Polyurethane Coating and Sealers
7.6.2.2.1 Two component 100% solids polyurethane coating consisting of a Part A colored polyol and Part B isocyanate activator.
7.6.2.2.2 Specific gravity of 1.15 to 1.30.
7.6.2.3 Polyurethane Aliphatic Top Coating
7.6.2.3.1 A single or two component aliphatic top coating applied to structural surfaces that need to be protected from UV degradation.
7.6.2.4 SBR/EPDM Black Rubber
7.6.2.4.1 Fully cured rubber granules that may either be ambient or cryogenically ground from post- industrial by-products to a size of not less than 1 nor more than 4mm.
7.6.2.4.2 The general cut of the granules should be cubicle, contain less than 4% dust, and be free of foreign debris, and not contain any other color within the granule.
7.6.2.5 Colored EPDM Rubber
7.6.2.5.1 Colored EPDM granules should be ground from fully cured virgin slabs of peroxide or sulfur cured rubber (the curing process must be compatible with the polyurethane chemicals being used).
7.6.2.5.2 The EPDM content should be not less than 20%.
7.6.2.5.3 The general cut of the granules should be cubicle and they should contain less than 4% dust.
7.6.3 Thickness, Weight and Specific Gravity
7.6.3.1 Each surface system should be at least 1/2" (12.5mm) in total thickness to allow for variation in the underlayment and to prevent spiked shoes from penetrating to the base layer, potentially disrupting the bond.
7.6.3.2 The total weight of the system is contingent upon the depth of the surface and the specific gravity of the materials.
7.6.3.3 Both SBR and EPDM rubber particles will vary in specific gravity and bulk density value of rubber. This coupled with the application methods, shape and size will affect the rubber required to achieve 1/2" thickness. The chart below is intended for guidance per 1/8":
Size/Shape Specific Gravity Shore A Harness
1-4 mm Granules 1.15 - 1.40 55-70
1-4 mm Granules 1.20 - 1.50 55-70
1-4 mm Granules 1.40 - 1.60 55-70
7.6.4 Material Delivery
7.6.4.1 All materials should be delivered to the job site in labeled and marked containers.
7.6.4.2 Quantities needed to complete the project in accordance with the
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manufacturer's specifications should be verified.
7.6.4.3 All materials should be located to allow for work to proceed without interruption.
7.6.4.4 Do not allow liquid binders to freeze.
7.6.4.5 All packaging and excess materials must be disposed of in accordance with state, local and federal standards and regulations.
7.6.5 Installation Equipment
7.6.5.1 All installation equipment including mixers, pavers, sprayers and hand tools should be kept free of moisture while in use.
7.6.5.2 Tools to be cleaned daily.
7.6.5.3 No equipment or vehicles used in the installation process should leak any gas, petroleum products, solvents, etc.
7.6.6 Surface Preparation
7.6.6.1 The asphalt or concrete base should be sufficiently cured and cleaned in order for work to progress. Recommended cure times - 14 days for asphalt, 28 days for concrete.
7.6.6.2 Prior to installation of the track surface system, the entire base should be checked for planarity and surface tolerance.
7.6.6.3 Any areas that vary +/- 1/4" when measured with a 10' straightedge in any direction should be patched with a compound compatible with the base material and approved by the manufacturer of the track surfacing system.
7.6.6.4 After patching, the surface should not allow water to stand greater than 1/16" deep one hour after rain has ended.
7.6.7 Installation
7.6.7.1 Primer
7.6.7.1.1 The surface should be primed with the appropriate polyurethane primer using spray equipment or rollers.
7.6.7.1.2 Application rates range between 0.18 - 0.27 lbs. per square yard.
7.6.7.1.3 For an asphalt base, primer application may be reduced by the contractor when extreme heat conditions soften the asphalt.
7.6.7.1.4 Some manufacturers' systems will not require a primer.
7.6.7.2 Mixing
7.6.7.2.1 All two component polyurethane coatings are to be mixed in a manner to accurately measure and thoroughly mix all materials to the ratios specified by the manufacturer.
7.6.7.3 Applying Base Materials
7.6.7.3.1 The two component self-leveling polyurethane coating is flow applied to the base in multiple layers with either black SBR or colored EPDM granules being applied into the coating to attain the specified base depth.
7.6.7.3.2 The ratio of base rubber will be between 15% and 35% of the total weight of the finished surface.
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7.6.7.4 Top Coat
7.6.7.4.1 The top coat is a massive flow application of the two component coating that is mixed according to the ratios of part A and B listed by the manufacturer.
7.6.7.4.2 The material is to be self-leveling and should be free of ridges.
7.6.7.4.3 Prior to initial set, colored EPDM rubber granules are broadcast into the coating with sufficient excess granules being applied to assist in the embedding process.
7.6.7.4.4 Normally 5 to 5.5 lbs. of granules per square yard will be embedded.
7.6.7.4.5 All loose excess granules are removed after initial cure.
7.6.7.4.6 The alternative top coating is a spray application of two component coating and encapsulated EPDM rubber granules applied at an approximate ratio of 60% coating to 40% rubber to sufficiently protect the base.
7.6.7.5 Aliphatic Top Coating
7.6.7.5.1 If the encapsulated top coating is unprotected for UV resistance, then a thin mil layer of the one or two component aliphatic top coating should be spray applied, normally in two applications, over the surface in accordance to the manufacturer's recommendation.
7.6.7.6 Line Markings
7.6.7.6.1 The surface system manufacturer must approve the type and brand of marking paint used.
7.6.7.6.2 All lane and event markings should be in accordance with the applicable governing body.
7.7 Track Surfacing - Pre-manufactured Rubber Tracks
7.7.1 Pre-manufactured rubber track surfaces can be classified into three distinct systems: a prefabricated rubber base layer with a structural spray top coating (permeable structure); a prefabricated rubber base layer with massive pour of polyurethane coating with embedded colored EPDM rubber granules (impermeable structure), and a prefabricated, vulcanized rubber product that is installed in a single layer (impermeable structure).
7.7.2 Materials
7.7.2.1 Primer
7.7.2.1.1 The primer is a mixture of polyurethane binder and a viscosity reduction vehicle that allows for a light film application. Primer may vary with the specifications provided by the manufacturer of the surface.
7.7.2.2 Adhesive
7.7.2.2.1 The adhesive is a single or two component polyurethane or other material specified by the manufacturer that is used to bond the prefabricated materials to the prepared base.
7.7.2.3 Prefabricated Rubber Mat
7.7.2.3.1 The prefabricated rubber mat is a rolled sheet good product that is comprised of rubber particles and a polyurethane binder.
7.7.2.4 Prefabricated Vulcanized Rubber Mat
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7.7.2.4.1 The prefabricated mat is calendered and vulcanized with a base of natural and synthetic rubber, stabilizing agents and pigments at a prescribed thickness and finish texture.
7.7.3 System Thickness, Weight and Specific Gravity
7.7.3.1 Each surface system should be at least 1/2" (12.5mm) in total thickness to allow for variation in the underlayment and to prevent spiked shoes from penetrating to the base layer, potentially disrupting the bond.
7.7.3.2 The total weight of the system is contingent upon the depth of the surface and the specific gravity of the materials, as well as the weight of the colored EPDM granules embedded in the top coating.
7.7.4 Material Delivery
7.7.4.1 All materials should be delivered to the job site in labeled and marked containers.
7.7.4.2 Quantities needed to complete the project in accordance with the manufacturer's specifications should be verified.
7.7.4.3 All materials should be located to allow for work to proceed without interruption.
7.7.4.4 Do not allow liquid binders to freeze.
7.7.4.5 All packaging and excess materials must be disposed of in accordance with state, local and federal standards and regulations.
7.7.5 Installation Equipment
7.7.5.1 All installation equipment including mixers, pavers, sprayers and hand tools should be kept free of moisture while in use.
7.7.5.2 Tools to be cleaned daily.
7.7.5.3 No equipment or vehicles used in the installation process should leak any gas, petroleum products, solvents, etc.
7.7.6 Surface Preparation
7.7.6.1 The asphalt or concrete base should be sufficiently cured and cleaned in order for work to progress. Recommended cure times - 14 days for asphalt, 28 days for concrete.
7.7.6.2 Prior to installation of the track surface system, the entire base should be checked for planarity and surface tolerance.
7.7.6.3 Any areas that vary +/- 1/4" when measured with a 10' straightedge in any direction should be patched with a compound compatible with the base material and approved by the manufacturer of the track surfacing system.
7.7.6.4 After patching, the surface should not allow water to stand greater than 1/16" deep one hour after rain has ended.
7.7.7 Installation
7.7.7.1 Primer
7.7.7.1.1 The day's work should be primed, if required, in accordance with the manufacturer's specifications.
7.7.7.1.2 Normal application procedures call for the primer to be either spray or roller
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applied.
7.7.7.2 Placement of the Mat
7.7.7.2.1 Materials to be laid out and relaxed prior to installation.
7.7.7.2.2 Adhesive is then mixed and troweled in place using a notched trowel.
7.7.7.2.3 Apply rates should be in accordance with the manufacturer's specifications.
7.7.7.2.4 Adhesive should be applied only to the area to be covered by one roll at a time.
7.7.7.2.5 When the adhesive is tacky, the mat is then placed onto the surface making sure that each sheet is placed in a straight line or around a curve at a constant radius.
7.7.7.2.6 All butt joints are to be staggered.
7.7.7.2.7 The mat should be rolled out so that all entrapped air is removed.
7.7.7.2.8 Seams and butt joints are to be level and not pinched.
7.7.7.2.9 Place weights as necessary to hold the mat in place.
7.7.7.2.10 Remove any excess adhesive that protrudes above the seams and joints.
7.7.7.3 Structural Top Coating
7.7.7.3.1 Mixing
7.7.7.3.1.1 Using dry containers, weigh out in accordance to the manufacturer's specification a quantity of the two component parts (A and B) of the structural spray and mix them thoroughly.
7.7.7.3.1.2 Add the specified quantity of colored EPDM rubber granules to the mixed material, or in the case of a single component structural spray, to the weighed out portion of that single component material. Mix thoroughly.
7.7.7.3.2 Application
7.7.7.3.2.1 Place the mixed material into a spray machine and spray apply the material to the base mat.
7.7.7.3.2.2 Apply a second coat of material over the first by spraying in the opposite direction. The total rate of application of two coats of spray will range from 3.4 to 4.4 lbs. per square yard.
7.7.7.3.3 Should the surface require a structural spray coating, see “Track Surfacing - Polyurethane Tracks - Base Mat Structural Spray".
7.7.7.4 Flood Coat and Embedded Rubber Top Coating
7.7.7.4.1 The top coat is a massive flow application of the two component coating that is mixed according to the ratios of part A and B listed by the manufacturer.
7.7.7.4.2 The material is to be self-leveling and should be free of ridges.
7.7.7.4.3 Prior to initial set colored EPDM rubber granules are broadcast with sufficient excess granules being applied to assist in the embedding process. Normally 5 to 5.5 lbs. of granules per square yard will be embedded. All loose excess granules are removed after initial cure.
7.7.7.4.4 The alternative top coating is a spray application of two component coating and encapsulated EPDM rubber granules applied at an approximate ratio of
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60% coating to 40% rubber to sufficiently protect the base.
7.7.7.4.5 Should the surface require a flood coat and EPDM rubber top coating, see "Track Surfacing - Polyurethane Tracks -Base Mat/Sandwich."
7.7.7.5 Single Sheet Good Installation
7.7.7.5.1 Should the specification call for the product to be vulcanized and calendered with a textured finish, proceed to line marking.
7.7.7.6 Line Markings
7.7.7.6.1 The surface system manufacturer must approve the type and brand of marking paint used.
7.7.7.6.2 All lane and event markings should be in accordance with the applicable governing body.
7.8 Layout & Striping of Running Tracks
7.8.1 Paint - Various types of running surfaces have different characteristics. These may require different types of paint such as latex, urethane or enamels. Use paint per track surfacing manufacturer's recommendations.
7.8.2 Layout
7.8.2.1 General Method
7.8.2.1.1 At minimum layout should be accomplished using an transit, theodolite or total station that will read directly to at least 20 seconds and steel engineer's tape that will read directly to 0.001m or 0.01" or EDM device. Temperature correction should be applied as it will affect the level of precision.
7.8.2.1.2 Cloth tapes, fiberglass tapes and measuring wheels should not be used,
7.8.2.1.3 Other methods, providing the same or greater accuracy, may be used if prior approval is obtained.
7.8.2.2 Tolerances
7.8.2.2.1 Track Governing Bodies do not allow a minus tolerance of any kind in a track.
7.8.3 Painting
7.8.3.1 Placement
7.8.3.1.1 The location of the finish line determines the location of all other markings such as starts, hurdles and exchange zones.
7.8.3.1.2 Consult the governing body requirements and recommendations for finish line placement.
7.8.4 Markings
7.8.4.1 Lane Lines, Start and Finish Lines
7.8.4.2 Lane line markings should be 2" (5 cm) wide depending on the rules of the governing body. In areas where chute and curve lines intersect, chute lines should be dashed or broken with some other means to indicate the curved lines have priority. Start and finish lines should also be 2"(5 cm) in width. The NCAA and IAAF require finish line blackouts.
7.8.5 Exchange Zones
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7.8.5.1 Exchange zones are typically marked using triangles or rectangles, squares or triangles, painted on both sides of each lane.
7.8.6 Hurdle Placements
7.8.6.1 Hurdle placements can be identified by use of small rectangles, squares or triangles, painted on both sides of each lane.
7.8.7 Other Markings
7.8.7.1 Other markings such as event identification, shadowed lane numbers, school logos or sprint race markings for running in back straight or reverse direction may be added to enhance the usability and appearance of the track.
7.8.8 Colors
7.8.8.1 Individual governing bodies have recommended or required colors for each event. School colors may be incorporated into the track for lane numbers or lines where governing bodies allow.
7.8.9 Paint Application
7.8.9.1 Paint may be rolled, brushed or sprayed with either conventional or airless stripping machine.
7.8.10 Paint Coats - The manufacturer's recommendations for paint and coverage should be followed. An excessive thickness of paint may cause cracking and curling.
7.8.11 Certification
7.8.11.1 Depending on the governing body and the intended use of a particular facility, a certification of accuracy of calculations or markings by the track striper, a Certified Track Builder, a Professional Engineer or Registered Land Surveyor may be required.
7.8.12 Governing Bodies - AEPA Member determine the primary and potential uses of the facility. A current track and field rules book for the highest intended level of competition, should be used as rules, requirements and recommendations change from year to year.
7.9 Site Inspection and Investigation
7.9.1 The ultimate performance and lifecycle of any running/jogging track depends on a significant degree on the subsoil and drainage conditions of the site. The stability of the subsoil also has a direct influence on the ability to properly prepare the site, construct the track and to maintain design grades under the deformations generated by the construction equipment itself. Such site condition as: expansive soils or plastic soils and use of base course materials consisting of these types of soils can create problems and frost action is exaggerated where frost susceptible materials exist with moisture available to generate frost heave. It is, therefore, necessary for Offeror in cooperation with the Member in ensure that a complete and accurate site inspection/investigation has been performed to identify soil conditions existing at the site and to take these conditions into account in designing the project. Site preparation, including stripping, placement of backfill and base construction must be properly performed to minimize the risk of problems due to subsoil and subgrade conditions.
7.9.2 The scope of and level of any site inspection/investigation must be flexible and dependent on the nature of the conditions that exist at a particular site,
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and the degree of risk that the Member is willing to acknowledge, accept and take regarding adverse effects of subsoil conditions. During the design and development of the project, the Offeror will advise and consult with the Member to determine the scope and level of site inspection required. Obviously, the more serious site conditions that require an adequate study includes, but is not limited to:
7.9.2.1 The existence of peat or other organic soils at the site;
7.9.2.1.1 Uncontrolled fill materials or waste materials at the site;
7.9.2.1.2 Expansive soils at the site;
7.9.2.1.3 High ground water conditions or surface water retention areas (low area flooding); or
7.9.2.1.4 Special usage of the facility for a variety of activities.
7.9.3 Soils should be classified, in general, in accordance with the visual manual method of identification of soils, utilizing the Unified Soil Classification System (ASTM Methods D 2488 "Description of Soil Visual Manual Procedure", and D 2487 "Classification of Soils for Engineering Purposes"). It is not intended, however, that a rigorous use of these methods be required, but only use of terminology that will describe the soil conditions in terms of soil types using the Unified Soil Classification symbols, such as CL, CH, etc.
7.9.4 Data obtained from this investigation should be prepared and submitted as part of the project record documents for later reference, if necessary, or for review by a qualified engineer if an evaluation is decided upon by the Member and/or the Contractor.
7.9.5 Once a site study has been completed, identified risks require the Member and the Offeror to make a joint decision as to the level site preparation is required before the project is started. This is done so that an adequate site can be available for the tract construction, and in the event of any problems developing because of subgrade conditions, the responsibility can be clearly allocated between the AEPA Member and the Contractor.
7.9.6 Where any site and/or soil conditions are suspect for problems, such as existence of fill material, organic material or expansive soils are known or believed to exist at a site, then it is required that the Member and Contractor shall review, assess and discuss the pros and cons of the condition and the Member may choose to retain a geotechnical consultant to obtain samples in accordance with ASTM Method D 1587 in cohesive soils, and D 1586 in granular soils, with borings to a depth of at least 10 ft. or into firm materials. This should be followed by appropriate unconfined compressions tests, water content and density determinations on cohesive soils, and penetration resistances and blows per foot for granular soils, plus water level determinations, again with borings at each corner of the tennis court or at each quadrant of the track and intermediate borings not greater than 200 ft. apart outside the pavement area.
7.9.7 All information and communications relating to the site inspection and investigation shall become part of the projects documentation.
7.1 Site Preparation, Earthwork, Drainage and Sub-base Construction
7.10.1 For new track construction, the site must be properly prepared in accordance with project design documents that were prepared based on the site inspection
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and investigation which addressed:
7.10.1.1 Site grade and elevations;
7.10.1.2 The sub soil, topsoil and drainage conditions;
7.10.1.3 The existence of peat or other organic soils at the site;
7.10.1.4 Uncontrolled fill materials or waste materials at the site;
7.10.1.5 Expansive soils at the site;
7.10.1.6 High ground water conditions or surface water retention areas (low area flooding).
7.10.2 If an existing athletic facility, type of facility, how is it being utilized and by whom.
7.11 Stripping and excavation - Unless otherwise specified, topsoil and other unsuitable materials at the site, and to a minimum distance of 5' beyond the surfaced area, should be removed in such a manner as to minimize disturbance of the remaining subgrade soils, and to facilitate placement of embankment materials and/or base course materials. Topsoil should be stored at the site and reused for landscaping at the completion of construction.
7.12 Subsurface Drainage
7.12.1 Where surface inlets are provided on or near the courts or track, drain lines to carry the water to appropriate discharge channels should be in accordance with local building codes and regulations.
7.12.2 Where it is necessary or otherwise decided to lower the water table at the site, French drains (permeable, properly graded, gravel-filled trenches), geocomposites or perforated drain lines surrounded with a stone material, should be utilized, discharging to appropriate channels. Non-woven geotextile fabric may be used, depending on the stone materials available.
7.12.3 Backfill of all trenches should be granular material, placed in layers not to exceed 6" in thickness, compacted with appropriate compaction equipment to 95% of the maximum density determined by ASTM Method D 698 (Modified Proctor). This compaction is necessary to minimize the risk of subsequent settlement of the surface over the trench.
7.12.4 When trenching or drain tile is used under existing permanent pavement, it is recommended that this area be compacted to 100% of the maximum density determined by ASTM Method D 698 (Modified Proctor). This method will reduce the amount of settlement that may occur in these trenches, which will reflect on the final surface.
7.13 Sub-base Embankment
7.13.1 Embankment is fill material necessary to raise the grade at the site, after removal of unsuitable materials identified during the site investigation, to provide the surface on which to place the base course for the running track.
7.13.2 While well-graded granular soil is preferred for embankment fill, normally locally available soil is used for economic reasons. The material should be free of organic or expansive material, and of particles greater than 1 1/2" in dimension. It should be placed in lifts not to exceed 6" in thickness and compacted to 95% of the maximum density determined by ASTM Method D 698 (Modified Proctor). The water content of the fill should be reduced by
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aeration or increased by adding water, as necessary to achieve the required compaction.
7.13.3 Where the natural soil at the bottom of the sub-base course is stable, as evidenced by stability under construction equipment, hand auger or other exploration, base course materials can be placed on this soil. Soft clay and plastic soils should be appropriately stabilized.
7.14 Vegetation control or vegetation regrowth prevention - Soil conditions vary from area to area. Where problems exist, it may be necessary to sterilize the soil. The Offeror should during project development or construction recognize and determine when soil sterilization is necessary and offer methods and options to the Member for rectifying problems caused by vegetation.
7.15 Concrete Curbs and Drains
7.15.1 Furnish all required labor, materials, equipment implements, parts and supplies necessary to prepare the site and install curbs and drainage systems.
7.15.2 Cement shall conform to one of the standard specifications for Portland Cements, ASTM C-150, per specification for blending hydraulic cements, ASTM C-595, excluding slag cements types S and SA.
7.15.3 Air entrainment by total volume of concrete shall be: 4 - 6% for 1 1/2" maximum size coarse aggregate; 5 - 7% for 3/4" or 1" maximum size coarse aggregate; 6 1/2" - 8 1/2" for 3/8" or 1/2" maximum size coarse; 1/2 - 8 1/2% for 3/8" or 1/2" maximum size coarse aggregate.
7.15.4 Aggregate shall conform to standard specifications for concrete aggregates ASTM C-33. For concrete work that is 5" thick, the normal size of the coarse aggregate shall not exceed 1 ½". For concrete work that is 4" thick, the normal size of the coarse aggregate shall not be greater than 1".
7.15.5 Concrete work shall be 5" thick if the location of the structure is such that it will be subject to more than three freeze-thaw cycles annually. If the location is such that not more than three freeze-thaw cycles occur annually, concrete work may be 4" thick.
7.15.6 Steel reinforcement bars shall conform to standard specifications for deformed and plain billet-steel bard for concrete reinforcement ASTM A-615, grade 60 or 40.
7.15.7 For concrete work that is 5" thick, the recommended bars shall be No. 5 size in both directions at 12" on center. For concrete work that is 4" thick, the recommended bars shall be No. 5 size in both directions at 15" on center. Bars shall be accurately positioned at mid-depth, terminating 2" away from edges and joints, and shall be adequately supported by chairs with sand plates provided to prevent bar supports from sinking into the sub-base.
7.15.8 Bars shall be lapped 18" and also be securely tied or otherwise secured so that there is no possibility of displacement when concrete is placed. Reinforcement at time of concrete placement shall be free of loose, flaky rust and other coatings or films that could interfere with bonding to the concrete.
7.15.9 The concrete shall have a compressive strength of not less than 3,000 psi at the 29th day after casting. The minimum cement content for finish ability shall not be less than 470 lb. per cubic yard for 1 1/2" maximum size coarse aggregate or 520 lb. for 1". In freeze-thaw environments, the minimum cement content shall not be less than 560 lb. per cubic yard. The slump shall
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not be more than 4". Ready-mixed concrete shall be mixed and delivered in accordance with ASTM C-94, specification for ready-mixed concrete.
7.15.10 Concrete shall be spread, consolidated, screened, bull-floated and finished in accordance with Section 7.2 of ACT Standard 302, recommended practice for concrete floor and slab construction.
7.15.11 When concrete is sufficiently set to withstand foot pressure with only about 1/4" indentation and the water sheen has left the surface, the slab shall be uniformly finished by power floating and trawling. The final finish texture shall have at least a medium broom finish to improve the mechanical bond to the surface.
7.15.12 Immediately after brooming, the concrete shall be kept continuously moist for seven (7) days by covering with polyethylene film or waterproof curing paper. Curing compounds will not be used. Curing time shall be in accordance with surfacing systems manufacturer's recommendations, but in not less than 28 days.
7.15.13 The concrete surface shall be finished so that the tolerance shall not vary more than 1/4" in 10' when measured with a 10' straightedge in all directions.
7.15.14 Perimeter edging shall be constructed using one of the following methods: pavement extension, flush curb, permanent raised curb or removable raised curb.
7.15.15 A pavement extension shall have an aggregate base course constructed so that the inside perimeter is parallel to and 28" inside of the track measure line, and 16" from the outer side of the outside lane line.
7.15.16 A pavement extension shall have an asphaltic concrete course(s) constructed so that the inside perimeter is parallel to and 22" inside of the track measure line, and it's outside perimeter parallel to and 10" from the outer side of the outside lane line.
7.15.17 A pavement extension shall have a synthetic surfacing course constructed so that the inside perimeter is parallel to and 16" inside of the track measure line, and it's outside perimeter parallel to and 4" from the outer side of the outside lane line.
7.15.18 A flush curb shall be solid, installed for both the inside and outside (or inside only) perimeter of the trade. The curb shall be flush with either the asphalt or the top elevation of the synthetic surface for an impermeable installation. For a permeable installation, the curb is to be flush with the final elevation of the asphalt. The distance between the track side of the inside curb and the measure line shall be less than the distance between the track side of the outside curb and the line shall not be less than 4".
7.15.19 A permanent raised curb shall be solid and be installed to provide a curb for both the outside and inside perimeter of the track. The distance between the trackside of the curb and the track measure line shall be 30 cm. The distance between the trackside of the outside curb and the lane line shall not be less than 4".
7.15.20 Removable raised curbs shall be available in various materials, including, but not limited to: aluminum, polyurethane or aluminum with a firm rubber top. These removable curbs shall sit on pads that allow movement of water from the track surface to the drain channel or infield.
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7.15.21 Drainage systems shall utilize a perimeter drain tile system, catch basin, curb and gutter drainage system, permeable system or continuous trench drains.
7.16 Hot mix asphaltic concrete base course and leveling course for running tracks, athletic court, or field events areas.
7.16.1 The components and methods utilized to install and complete the base and leveling course must be in accordance with the individual project's design documents. The success of any installation of base or leveling course is dependent upon a properly constructed sub-base and a good drainage system.
7.16.2 Minimum recommended base course thickness shall be based on the specifications established by the geotechnical engineer.
7.16.3 Minimum recommended leveling course thickness shall be based on the specifications established by the geotechnical engineer
7.16.4 Quality Assurance - For installation of running track and field event hot mix asphalt, utilize only thorough, highly-trained personnel experienced and familiar with running track and field event paving and with the tolerances required by the appropriate federal, state and local governing bodies.
7.16.5 Asphalt - The proper type of asphalt used will vary from state to state if using the standard norm of the Department of Transportation (DOT) or State Highway Department standards. The following is a typical mix design for example only:
7.16.6 Thickness: No less than 1".
7.16.7 Liquid Asphalt or Bitumen: 5.5% by weight (+/- 0.5%).
7.16.8 Asphalt Penetration or Type: 85 - 100 penetration.
7.16.9 Cure Time: Follow coating manufacturer's recommendations (typically 14 to 30 days), depending on the time of year and rainfall. Asphalt will cure more slowly in cooler temperatures, i.e. the Spring and Fall.
7.16.10 Aggregate Type: Crushed stone, gravel, shale, limestone, etc. Foreign materials, i.e., pyrite, clay, ferrous compounds, dirt and organic material are not acceptable.
Aggregate Sieve Analysis % Passing
1/2" 100%
3/8" 70 - 80%
1/4" 60 - 80%
No. 4 60 - 70%
No. 8 40 - 60%
No. 12 30 - 50%
No. 16 20 - 40%
No. 30 20 - 30%
No. 50 10 - 20%
No. 100 2 - 6%
No. 200 60 - 70%
AEPA IFB #016 - H Track & Courts Page 32 of 41 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part B: Specifications
Item Description
Washed 0 - 2%
7.16.11 Plant, equipment, machines, and tools - The bituminous plant should be capable of producing the quantities of bituminous mixtures required. Hauling, placing and compaction equipment should be provided in sufficient numbers that the placement capacity at the site is equal to, or greater than, the planned plant output to the site.
7.16.12 Paver - All pavements, where applicable, should be placed with a self-propelled asphalt paver. The screed width should be adjustable to no less than eight feet (8'). Only hydraulic screed and auger extensions to achieve widths greater than that of the main screed are acceptable.
7.16.13 Compaction Equipment - Compaction equipment should consist of steel drum asphalt rollers of sufficient size and width to properly compact the hot mix asphalt to the required compaction, while providing a smooth surface free from bumps, marks and creases.
7.16.14 Transportation Equipment - Transportation of the hot mix asphalt to the site from the asphalt plant should be in trucks having tight, clean, smooth beds lightly coated with an approved releasing agent. Each load should be covered with a canvas or other approved material of ample size to protect the mixture from cooling.
7.16.15 Straightedge - The contractor should furnish and maintain at the site, in good working condition, one 10' straightedge for each paver.
7.17 Placement and Compaction
7.17.1 Hot mix asphalt courses should only be placed on the specified base, free from contamination and with no free water on the surface.
7.17.2 Paving operations should not be scheduled unless there is ample time to place, compact and finish roll the hot mix asphalt.
7.17.3 The range of temperatures for mixtures to be dumped into the paver should be determined by State Department of Transportation guidelines, and in no case should they be cooler than 225 degrees F.
7.17.4 Paving operations should provide a mat that is smooth, dense and of the proper thickness, slope and plane.
7.17.5 The leveling course should be placed such that the longitudinal joints of the leveling course are offset from that of the base course. Transverse joints should be offset a minimum of 24".
7.17.6 In placing each succeeding pass after the initial one, the screed of the paver should be set so that it overlaps the preceding pass by 2" and be sufficiently high so that when compacted, a smooth joint is produced. Prior to pinching the joint, the excess material should be pushed onto the edge of the new pass with a lute. Excess material should be removed and wasted.
7.17.7 Breakdown rolling should begin as soon after the placement as the mixture will allow without undue displacement. No delays in rolling should be permitted. After breakdown rolling has been completed, preliminary testing of grade, slope and planarity should be done. Any deficiencies should be immediately corrected in accordance with "Acceptability of Work." When the paving contractor is assured that all tolerances are being met, finish rolling should begin.
AEPA IFB #016 - H Track & Courts Page 33 of 41 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part B: Specifications
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7.17.8 Deficient areas within the base course should be corrected by saw cutting or milling high spots and/or by truing and leveling low spots.
7.17.9 Deficient areas in the leveling course should be corrected by saw cutting or milling to a depth equal to the thickness of the mat. Tack coat should be applied to all edges and the pavement should be replaced. Skin patching of the leveling course should only be done with materials acceptable to the track surfacing contractor.
7.18 Acceptance of work - Upon completion of the work and/or prior to installing the track surface system, the base and leveling course should be inspected for:
7.18.1 Grade conformance tests should be conducted on both the base course and the leveling course. The entire surface should have positive drainage.
7.18.2 Planarity - After completion of the finish rolling operations on each course, the compacted surface should be tested with a 10' straightedge. Measurements should be made perpendicular to and across all mats at a distance not to exceed 25'. The track surfacing contractor and/or Member's representative should be present when these measurements are made. The maximum allowable planarity deviation within a pass should be 1/8" in 10' when measured in any direction.
7.19 Quality Assurance
7.19.1 The work shall conform to the USTC & ASBA's standards for track construction. The track surface will be applied by a licensed firm, which has been installing the material for the past five (5) years.
7.19.2 Installing foreman must have at least five (5) years’ experience installing this type of system.
7.19.3 Guarantee - The Contractor is to provide a written guarantee against defective materials or faulty workmanship, excessive color change, excessive wear, and any other feature which is not deemed ordinary wear on running tracks and court surfaces for a period of not less than five (5) years after acceptance by AEPA Member.
7.2 Job Conditions - Surfacing shall not be done within 24 hours of freezing, rain or gusting winds are forecasted. While surfacing and striping are being done, sprinkler systems must be shut off or controlled so that no water falls on the track or event area surfaces. Other tradesmen, school district personnel and students must stay off the wet or curing surfaces.
7.21 Delaminating Surfaces - Any surfaces not adhered to the concrete or asphalt substrate need to be removed. If only a few small areas are involved, they can be patched with an appropriate compatible material. If large sections are loose and adjacent areas can be easily pulled loose, the entire surface should be removed.
7.22 Striping - AEPA Member personnel will be consulted to determine the levels of competition and the governing organization's (NMAA/NCAA) standards must be utilized for the placement of the finish line(s), events to be run, location of lane numbers and any other painted markings. Markings shall conform to NFSHSA, NCAA or AAU regulations. The paint shall be per surface manufacturer recommendations. The Offeror will supply a scaled drawing of all markings. All calculations, measurements and markings will be done by qualified and experienced specialists with a minimum of three (3) years of experience in this field.
AEPA IFB #016 - H Track & Courts Page 34 of 41 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part B: Specifications
Item Description
7.23 Post-Tension Concrete Tennis or Basketball Courts
7.23.1 Furnish all required labor, materials, equipment, implements, parts and supplies necessary for, or appurtenant to, the site preparation, grading and installation for tennis or basketball courts.
7.23.2 Guarantee - The installation contractor shall guarantee the work against defective material or faulty workmanship for a period of one (1) year from the date of completion.
7.23.3 Quality Assurance - The work shall conform to the USTC and TBA's standards for tennis and/or basketball court construction. The court will be applied by a licensed firm, which has been installing the material for the past five (5) years.
7.23.4 Site preparation may include removing trees, bushes and a minimum of 4" of topsoil if existing conditions require such action. The area will be graded to the required depth to accommodate the base and concrete thickness and provide a uniform 1% slope at ±.1' in one plane. All fills will be placed in 6" layers and will be compacted to 90% standard density at optimum moisture. The contractor will alert the Member of any "soft spots" or structures that could affect the stability of the slab. The site preparation will be done so as to provide positive drainage away from the play courts and, if needed, to provide intercepting swales to prevent drainage on to the court. The final grade base material shall be placed with automatic laser-regulated equipment capable of providing a true accurate plane to a 1/4". The depth of the fine grade base material shall be sufficient to develop 1/4" accuracy.
7.23.5 Site preparation materials may consist of the existing sub-grade material unless a soil engineer specifies import fill. The fine grade base materials shall be an approved compactable, free-draining base material (sand, fine gravel, etc.).
7.23.6 Vegetation control or vegetation regrowth prevention - Soil conditions vary from area to area. Where problems exist, it may be necessary to sterilize the soil. The Offeror should, during project development or construction, recognize and determine when soil sterilization is necessary and offer methods and options to the Member for rectifying problems caused by vegetation.
7.23.7 Court paving materials specifications may include:
7.23.7.1 Post-tensioning and anchorages will conform to the "PTI Guide Specifications for Post-Tensioning Materials". The tensioning strands shall consist of 1/2" diameter, 7-wire, stress-relieved strands, having a guaranteed ultimate tensile strength of 270,000 psi. Strands shall conform to ASTM-416. Cables shall be fabricated to proper length for each slab, coated with a permanent rust preventative lubricant and encased in slippage sheathing. All breaks in the sheathing shall be repaired with tape prior to concrete placement. A maximum of 6" exposed strands is permitted at the dead-end anchor.
7.23.7.2 The concrete shall have a compressive strength of not less than 3,500 psi after 28 days. Ready-mixed concrete shall be mixed and delivered according to ASTM C-94 specifications for ready-mixed concrete.
7.23.7.3 Forms shall be accurately set to the lines and to +/- 1/4" of finish grade indicated on drawings and be securely staked to prevent settlement or movement during placement of concrete. Forms shall remain until concrete
AEPA IFB #016 - H Track & Courts Page 35 of 41 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part B: Specifications
Item Description
has taken final set.
7.23.7.4 Tensioning cables and anchors shall be supported on chains and loosely tied 2" high at all intersections to prevent vertical and horizontal movement during concrete placement. Strands shall be placed with no greater spacing than 2'6" wide on lengths over 100' and 3'4 "on lengths under 100'. After forms are removed and the concrete has set to a minimum of 2,000 psi, the tensioning procedure may be applied approximately one week later. Each tendon may initially be tensioned to a maximum of 80% ultimate breaking strength and anchored at a minimum of 70% ultimate breaking strength.
Ultimate Breaking Strength
80% 70%
41,300 33,000 28,900
7.23.7.5 The cable ends shall be cut off and cone holes grouted flush with edge of slab. Grout shall be non-shrink grout.
7.23.7.6 Joints - Between each court or at net line ±1', there shall be a keyed construction joint.
7.23.7.7 Placing - A full court shall be placed in one continuous operation without intervening joints of any kind. The 4" thick slab will be placed with a 60' mechanical screed capable of providing a surface true to 3/8" at a 1% slope. Note: Finish surface shall not have a water-holding area greater than 1/8" deep. This is to be determined by flooding the court with water, allowing it to drain for one hour on a 70° or warmer day.
7.23.7.8 Curing - Immediately after finishing, the concrete shall be kept moist by covering with polyethylene, by sprinkling, by pounding or by curing compound (must be compatible with acrylic tennis surfacing material).
7.23.8 Court Surfacing Materials
7.23.8.1 Playing Lines - Playing lines shall be painted per manufacturer specifications.
7.23.8.2 Surface will be installed per surface manufacturer specifications.
7.23.9 Court Surfacing Surface Preparation - Prior to the surfacing application, the concrete will be thoroughly cleaned by using a power broom or power washer. Subsequent to the cleaning of the court surface, a prime coat will be broom applied. Pools of the prime coat will be swept out to eliminate black "fatty" spots.
7.23.9.1 1/2" Emulsion Lift - The mixture will be agitated in a mixer capable of providing a consistent and homogeneous solution of the binder and aggregates. The mixture will be screed over the entire surface using 1/2" rods; other methods of placing will not be allowed. After the lift has cured (approximately one week), it will be compacted by a vibratory roller or with a static roller weighing 3,000 lbs. The resulting surface shall be free of depressions more than 1/8" deep. Any areas holding more water than 1/8" in depth will be filled with the leveling course.
7.23.9.2 Leveling Course(s) - Once the 1/2" lift has been rolled, the contractor shall flood courts, mark and fill all water-holding depressions with the leveling course mixture.
7.23.9.2.1 Any remaining water-holding depressions greater than 1/8" deep will be marked and filled with the leveling mix, again using a 14' straightedge squeegee. Water holding areas will be determined by flooding the court with
AEPA IFB #016 - H Track & Courts Page 36 of 41 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part B: Specifications
Item Description
water and allowing it to drain for one hour on a 70° or warmer day. The court will be reflooded and refilled as necessary. Note: Water holding areas can only be removed where positive and adequate slope exists.
7.23.9.3 Finishing Courses - Contractor shall blend in water-holding patches and surface defects and provide for a wearing base with the finishing courses.
7.23.9.4 After each finishing application has been cured, any ridges will be removed with scrapers, and the application will be compacted with a minimum 3,000 lb. static roller. One finishing course will be applied and additional application will be made as necessary to provide a uniform, ridge-free surface.
7.24 Hot Mix Asphalt Tennis and/or Basketball Courts
7.24.1 Guarantee - The contractor shall guarantee the work against defective material or faulty workmanship for a period of one (1) year from the date of completion.
7.24.2 Quality Assurance - The work shall conform to the USTC and TBA's standards for tennis and/or basketball court construction. The court will be applied by a licensed firm, which has been installing the material for the past five (5) years.
7.24.3 The following descriptions are given as a general guide and standard of the surfaces being requested. The Offeror is encouraged to propose a complete line of tennis/basketball court surfaces that meet or exceed the listed surfaces, the standards and specifications established by the National Federation of State High School Association, American Sports Builders Association, state and local Uniform Building Codes.
7.24.4 Submittals
7.24.4.1 The Offeror must provide written documentation for:
7.24.4.2 Each type of tennis or basketball surface offered.
7.24.4.3 The installers certification by the surface manufacturer to install, maintain and/or repair the proposed court system.
7.24.4.4 For the court surfaces offered, provide written documentation of its proven record for performance and durability by listing 5 installations that are a minimum of five (5) years old that contain the same court surface materials and use the same method of installation showing locations, installation dates and owner representatives contact information. Courts listed are to have been provided by the Offeror making a response to this solicitation.
7.25 Hot mix asphaltic base course and leveling course for basketball and tennis courts.
7.25.1 The components and methods utilized to install and complete the base and leveling course must be in accordance with the individual project's design documents. The success of any installation of base or leveling course is dependent upon a properly constructed sub-base and a good drainage system.
7.25.1.1 Minimum recommended base course thickness shall be based on the specifications established by the geotechnical engineer.
7.25.1.2 Minimum recommended leveling course thickness shall be based on the specifications established by the geotechnical engineer.
AEPA IFB #016 - H Track & Courts Page 37 of 41 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part B: Specifications
Item Description
7.25.2 Site preparation may include removing trees, bushes and a minimum of 4" of topsoil if existing conditions require such action. The area will be graded to the required depth to accommodate the base thickness and provide a uniform 1% slope at ±.1' in one plane. The site preparation will be done so as to provide positive drainage away from the play courts and, if needed, to provide intercepting swales to prevent drainage on to the court. The final grade base material shall be placed with automatic laser-regulated equipment capable of providing a true accurate plane to a 1/4". The depth of the fine grade base material shall be sufficient to develop a 1/4" accuracy.
7.25.3 Site preparation materials may consist of the existing sub-grade material unless a soil engineer specifies import fill. The fine grade base materials shall be an approved compactable, free-draining base material (sand, fine gravel, etc.).
7.25.4 Asphalt - The proper type of asphalt used will vary from state to state if using the standard norm of the Department of Transportation (DOT) or State Highway Department standards. The following is a typical mix design for example only:
7.25.4.1 Thickness: No less than 1".
7.25.4.2 Liquid Asphalt or Bitumen: 5.5% by weight (+/- 0.5%).
7.25.4.3 Asphalt Penetration or Type: 85 - 100 penetration.
7.25.4.4 Cure Time: Follow coating manufacturer's recommendations (typically 14 to 30 days), depending on the time of year and rainfall. Asphalt will cure more slowly in cooler temperatures, i.e. the Spring and Fall.
7.25.4.5 Aggregate Type: Crushed stone, gravel, shale, limestone, etc. Foreign materials, i.e., pyrite, clay, ferrous compounds, dirt and organic material are not acceptable.
Aggregate Sieve Analysis % Passing
1/2" 100%
3/8" 70 - 80%
1/4" 60 - 80%
No. 4 60 - 70%
No. 8 40 - 60%
No. 12 30 - 50%
No. 16 20 - 40%
No. 30 20 - 30%
No. 50 10 - 20%
No. 100 2 - 6%
No. 200 60 - 70%
Washed 0 - 2%
7.25.4.6 Plant, equipment, machines, and tools - The bituminous plant should be capable of producing the quantities of bituminous mixtures required. Hauling, placing and compaction equipment should be provided in sufficient numbers that the placement capacity at the site is equal to, or greater than, the planned
AEPA IFB #016 - H Track & Courts Page 38 of 41 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part B: Specifications
Item Description
plant output to the site.
7.25.4.7 Paver - All pavements, where applicable, should be placed with a self-propelled asphalt paver. The screed width should be adjustable to no less than eight feet (8'). Only hydraulic screed and auger extensions to achieve widths greater than that of the main screed are acceptable.
7.25.4.8 Compaction Equipment - Compaction equipment should consist of steel drum asphalt rollers of sufficient size and width to properly compact the hot mix asphalt to the required compaction, while providing a smooth surface free from bumps, marks and creases.
7.25.4.9 Transportation Equipment - Transportation of the hot mix asphalt to the site from the asphalt plant should be in trucks having tight, clean, smooth beds lightly coated with an approved releasing agent. Each load should be covered with a canvas or other approved material of ample size to protect the mixture from cooling.
7.25.4.10 Straightedge - The contractor should furnish and maintain at the site, in good working condition, one 10' straightedge for each paver.
7.25.5 Placement and Compaction
7.25.5.1 Hot mix asphalt courses should only be placed on the specified base, free from contamination and with no free water on the surface.
7.25.5.2 Paving operations should not be scheduled unless there is ample time to place, compact and finish roll the hot mix asphalt.
7.25.5.3 The range of temperatures for mixtures to be dumped into the paver should be determined by State Department of Transportation guidelines, and in no case should they be cooler than 225 degrees F.
7.25.5.4 Paving operations should provide a mat that is smooth, dense and of the proper thickness, slope and plane.
7.25.5.5 The leveling course should be placed such that the longitudinal joints of the leveling course are offset from that of the base course. Transverse joints should be offset a minimum of 24".
7.25.5.6 In placing each succeeding pass after the initial one, the screed of the paver should be set so that it overlaps the preceding pass by 2" and be sufficiently high so that when compacted, a smooth joint is produced. Prior to pinching the joint, the excess material should be pushed onto the edge of the new pass with a lute. Excess material should be removed and wasted.
7.25.5.7 Breakdown rolling should begin as soon after the placement as the mixture will allow without undue displacement. No delays in rolling should be permitted. After breakdown rolling has been completed, preliminary testing of grade, slope and planarity should be done. Any deficiencies should be immediately corrected in accordance with "Acceptability of Work." When the paving Contractor is assured that all tolerances are being met, finish rolling should begin.
7.25.5.8 Deficient areas within the base course should be corrected by saw cutting or milling high spots and/or by truing and leveling low spots.
7.25.5.9 Deficient areas in the leveling course should be corrected by saw cutting or milling to a depth equal to the thickness of the mat. Tack coat should be applied to all edges and the pavement should be replaced. Skin patching of the leveling course should only be done with materials acceptable to the track
AEPA IFB #016 - H Track & Courts Page 39 of 41 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part B: Specifications
Item Description
surfacing contractor.
7.25.5.10 Leveling of the asphalt before installing the final surface is the same as for post tension concrete surfaces or per the surface manufacturer requirements.
7.25.6 Acceptance of work - Upon completion of the work and/or prior to installing the surface system, the base and leveling course should be inspected for:
7.25.6.1 Grade conformance tests should be conducted on both the base course and the leveling course. The entire surface should have positive drainage.
7.25.6.2 Planarity - After completion of the finish rolling operations on each course, the compacted surface should be tested with a 10' straightedge. Measurements should be made perpendicular to and across all mats at a distance not to exceed 25'. The track surfacing contractor and/or Member's representative should be present when these measurements are made. The maximum allowable planarity deviation within a pass should be 1/8" in 10' when measured in any direction.
7.26 Quality Assurance
7.26.1 The work shall conform to the USTC & ASBA's standards for court construction. The court surface will be applied by a licensed firm, which has been installing the material for the past five (5) years.
7.26.2 Installing foreman must have at least five (5) years’ experience installing this type of system.
7.26.3 Site preparation may include removing trees, bushes and a minimum of 4" of topsoil if existing conditions require such action. The area will be graded to the required depth to accommodate the base and concrete thickness and provide a uniform 1% slope at ±.1' in one plane. All fills will be placed in 6" layers and will be compacted to 90% standard density at optimum moisture. The contractor will alert the Member of any "soft spots" or structures that could affect the stability of the slab. The site preparation will be done so as to provide positive drainage away from the play courts and, if needed, to provide intercepting swales to prevent drainage on to the court. The final grade base material shall be placed with automatic laser-regulated equipment capable of providing a true accurate plane to a 1/4". The depth of the fine grade base material shall be sufficient to develop a 1/4" accuracy.
7.26.4 Site preparation materials may consist of the existing sub-grade material unless a soil engineer specifies import fill. The fine grade base materials shall be an approved compactable, free-draining base material (sand, fine gravel, etc.).
7.27 Guarantee - The Contractor is to provide a written guarantee against defective materials or faulty workmanship, excessive color change, excessive wear, and any other feature which is not deemed ordinary wear of an all-weather tennis/basketball court for a period of not less than five (5) years.
7.28 Tennis Court Accessory Materials to include but not limited to:
7.28.1 Net Posts and Sleeves Equipment
7.28.2 Center Strap Anchor
7.28.3 Tennis Nets
7.28.4 Wind Screens
AEPA IFB #016 - H Track & Courts Page 40 of 41 Due Date: OCTOBER 7, 2015, 1:30 pm EDT Part B: Specifications
Item Description
7.28.5 Backdrop Curtains
7.28.6 Court Dividers
7.28.7 Crack repair
7.29 Basketball Court Accessory Materials to include but not limited to:
7.29.1 Goal Post
7.29.2 Backboards
7.29.3 Mesh nets
7.29.4 Hoop rings 18"
7.29.5 Crack repair
7.3 Tracks Accessory Materials to include but not limited to:
7.30.1 Cages for Discus, Hammer, and Shot Put
7.30.2 Hammer and Discus Conversion
7.30.3 Discus Rings
7.30.4 Long and Triple Jump Take-off Systems
7.30.5 Pole Vault Boxes and Pits
7.30.6 Long Jump Sandpits and Traps
7.30.7 Shot Put Toe Boards
7.30.8 Shot Put Rings
7.30.9 Throws Circles
7.30.10 Running Track Covers
7.30.11 Re-Striping Existing Running Tracks
7.30.12 Take-Off Boards
7.30.13 Water Jump Hurdle With Sleeves
7.30.14 Water Jump Cover
7.30.15 Removable Track Curbing
7.30.16 Sand - All sand for the long/triple jump sand pits shall be clean, washed, white sand, containing not more than five percent (5%) clay and shall be free of trash, organic matter, and rock. Installed sand shall meet all specifications of the IAAF - washed river sand, 0 to 2mm graining, no organic components, max 5% of weight up to 0.2mm. Prior to installation, the Offeror shall provide the Member with a one (1) gallon sample for approval.
7.31 Replacement of grass or re-seeding of natural grass as part of the track or court project.
7.32 Warranty
7.32.1 All warranties will begin on the date of final acceptance by the Member. The minimum warranty for systems offered is five (5) years non-prorated warranty.
7.32.2 All products and services offered must be guaranteed free from defects and faulty workmanship for a minimum period of One (1) year after final
AEPA IFB #016-H Tracks & Courts Page1of68DueDate:OCTOBER7,2015,1:30pmEDT Part C: Bid Forms
INVITATION FOR BID
AEPA IFB #016-H Athletic Surfaces – Tracks and Courts
PART C – BID FORMS
TABLE OF CONTENTS
Bid Submittal Instructions ........................................................................................ 1 FORM: Bid Proposal Table of Contents .................................................................. 2 FORM A: Bid Affidavit ............................................................................................. 3 FORM B: Acceptance of Bid and Contract Award ................................................ 4 FORM C: Service Questionnaire for Bidder ........................................................... 5 FORM D: Company Information ............................................................................. 9 FORM E: Exceptions to Terms and Conditions .................................................. 14 FORM F.1: Compliance ......................................................................................... 15 FORM F.2: Deviations ............................................................................................. 56 FORM G: Pricing Schedule Submittal Instructions ............................................. 57
BID SUBMITTAL INSTRUCTIONS
1. Bid submission instructions can be found in Part A: Terms and Conditions, Section II, F: Bid
Submission of this solicitation. Bidders are reminded that failure to follow, comply with, and adhere to these instructions of this solicitation may result in their response being deemed non-responsive.
2. It is the bidder’s responsibility to ascertain that all documents submitted have been saved completely and appropriately to the CD or flash drive. Bidders should test both of the CDs or flash drives on computers independent from the system on which they were created to make sure the documents can be opened. Electronic media that cannot be opened by the bid committee may result in the rejection of the proposal.
3. AEPA, its member agencies, affiliate agencies and authorized representatives are not responsible for bid proposals that are incomplete, unreadable or received after the deadline.
503-692-4869
FieldTurf USA Inc Table of Contents
FieldTurf USA Inc Form A
FieldTurf USA Inc Form B
FieldTurf USA Inc Form C
FieldTurf USA Inc Form D
FieldTurf USA Inc Exhibits 12 & 13.Also included in FieldTurf USA Inc
Form D
FieldTurf USA Inc Form E
FieldTurf USA Inc Form F.1
FieldTurf USA Inc Form F.2
FieldTurf USA Inc Part B
FieldTurf USA Inc MI State SpecificFieldTurf USA Inc NJ State SpecificFieldTurf USA Inc WA State Specific
FieldTurf USA Inc Form G
FieldTurf USA Inc Form G PricingAEPA IFB H Athletic Surfaces Tracks
and Courts
FieldTurf USA Inc Form G.5
N/A
FieldTurf USA Inc Commercial List Price
Folder C Exhibits C FieldTurf USA Inc Exhibits PDF
AEPA IFB #016-H Tracks & Courts Page5of68DueDate:OCTOBER7,2015,1:30pmEDT Part C: Bid Forms
AEPA FORM C: SERVICE QUESTIONNAIRE FOR BIDDER
AEPA IFB #016
Athletic Surfaces – Tracks and Courts NAME OF BIDDER: FieldTurf USA, Inc. (Beynon Sports Products & Services)
Instructions: Please respond to Yes/No and choice questions by using an (X). If a text reply is required, respond in the space below. Scan this form and any attachment pages into a single document and convert to a PDF file. Follow the instructions for titling the file and file organization under Part A, Section II Bid Procedures, F. Bid Submission, 2. Format of Bid Submittal.
Note: As part of evaluating the Bidder’s qualifications, the following is being requested and the Bidder is forewarned failure to respond and/or meet the minimum specifications in these areas, may deem their response as non-responsive.
1. The following chart indicates which AEPA Member States intend to participate in this bid category. Please place an “X” in response to questions in the last three (3) columns. Note: A Bidder must be willing and able to deliver the proposed products and/or services to ninety (90%) of the participating AEPA Member States.
AEPAMemberStates
Participateinthisbidcategory?
Hasyourcomp‐anysoldthese
products/servicesinthesestatesforthePASTTHREE
YEARS?
Ifawardedacontract,whichstatesdoes
yourcompanyPROPOSETOSELLIN?
Indicatewhichstatesyourcompanyhassalesreps,
distributorsordealersin.
California Yes YesAllAllowed–somestatesrestrictusage
Yes
Colorado Yes Yes Yes
Connecticut Yes Yes Yes
Florida Yes Yes Yes
Indiana Yes Yes Yes
Iowa Yes Yes Yes
Kansas Yes Yes Yes
Kentucky Yes Yes Yes
Massachusetts Yes Yes Yes
Michigan Yes Yes Yes
Minnesota Yes Yes Yes
Missouri Yes Yes Yes
Montana Yes Yes Yes
Nebraska Yes Yes Yes
NewJersey Yes Yes Yes
NewMexico Yes Yes Yes
NorthDakota Yes Yes Yes
Ohio Yes Yes Yes
Oregon Yes Yes Yes
Pennsylvania Yes Yes Yes
Texas Yes Yes Yes
Virginia Yes Yes Yes
Washington No Yes Yes
WestVirginia Yes Yes Yes
Wisconsin Yes Yes Yes
Wyoming Yes Yes Yes
AEPA IFB #016-H Tracks & Courts Page6of68DueDate:OCTOBER7,2015,1:30pmEDT Part C: Bid Forms
2. e-commerce: Does this company have an e-commerce website? _______ YES X NO
If YES, what is the website? ________________________________________________________
3. Customer and Support Service: It is understood depending on the type, kind and level of products and/or services being proposed in response to this bid will impact and determine the type and level of services required and these are identified in Part B Bid Specifications of this IFB.
a. Does this company have online customer support option? X YES _______ NO
b. Does this company have a toll-free customer support phone option? X YES _______ NO
c. Does this company offer local customer and support service options? X YES _______ NO
d. Describe the type, level, available and location(s) of your customer and support service options, including number of dedicated customer/support staff and hours of operation.
Beynon Sports is dedicated to all of our customers. We have a robust portfolio of indoor/ outdoor elementary schools, middle schools, high schools, colleges, universities, parks departments, private homes and various other institutions. We guarantee our workmanship and materials throughout the life of our industry leading warranty. We also have “after sale” several programs available including the “Fast Track Maintenance Program”. We facilitate various services at all of Beynon’s six various locations.
http://www.beynonsports.com/en/service/customer-commitment
4. Training: If applicable, does this company offer customer training for the products and services sold?
X YES _______ NO
If YES, describe what types/kinds of training you offer, the venues where training occurs and the location(s) of your trainers, include number of staff dedicated to training and their qualifications and hours of operation.
Please see Exhibit A
5. Pricing:
a. Is your pricing methodology guaranteed for the term of the contract? X YES _______ NO
b. Will you offer customized price lists to Participating Entities as required per the Pricing terms of Part A? X YES _____ NO
c. Will you offer hot list pricing (optional) as described in the Pricing terms of Part A? X YES _____ NO
d. Will you offer Volume Price Discounts as described in the Pricing terms of Part A? X YES _____ NO
6. Competitiveness: In order for your bid to be considered, your company must offer AEPA prices that are equal to or lower than what your company offers to individual customers and/or cooperatives with equal to or lower volume. Is the pricing that is proposed to AEPA equal to or lower than pricing offered to individual customers and/or cooperatives with equal to or lower volume? X YES _______ NO
Indicate which of the following apply and the level of competitive range you are offering in response to this IFB.
X Pricing offered to AEPA is EQUAL TO pricing offered to individual customer and/or cooperatives.
Lower by approximately 9 % off general public bid.
_____Pricing is LESS THAN individual customer and/or cooperatives. Lower by _____ %
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7. Cooperative Contracts: Does your company currently have contracts with other cooperatives (local, regional, state, national)? X YES _______ NO
If YES, identify which cooperatives and the respective expiration date(s).
AEPA: 2/28/2016 NJPA: 2/28/2018 TCPN: 2/28/2017 KPN: 2/28/2019 GSA: 8/6/2016 Buy Board: 3/31/2018 CMAS: 11/30/2016
If YES and your company is awarded an AEPA Contract, which contract will you lead with in marketing and sales representative presentations (sales calls)?
We will lead with AEPA. It remains our best and most versatile contract with approx. $ 30 MM in annual volume and three successful awards (006, 008 & 012). Total volume (for turf, track and tennis contracts combined) exceeds $ 330 MM over the life of these contracts resulting in approximately $ 6 MM in total administrative fee revenue for the AEPA.
8. Administrative Fee: Which of the following best reflects how your pricing includes the individual AEPA Members’ administrative fee.
a. X The pricing for the products and/or services are the same for each AEPA Member Agency, shipping, handling administrative fee and other specific state costs are added to arrive at total price offered to the Individual AEPA Member Agency.
b. _____ The pricing for the products and/or services is inclusive of the administrative fee and therefore the pricing is the same for all AEPA Member Agencies. Shipping, handling and other state specific costs are added to adjusted the AEPA Member Agency’s price.
c. _____ The pricing for the products and/or services includes all (shipping, handling, administrative fee, other) costs to arrive at a single price for all AEPA Member Agencies.
9. Shipping & Handling:
Orders that are $50.00 or more shall include free shipping and handling. What is the flat rate your company will charge, regardless of where shipped in the continental United States, for orders less than $50.00?
N/A. No Orders less than $50.00.
10. Product Returns: Does your company have a return policy? _______ YES X NO
If YES, describe your return policy and if you charge a restocking fee, what is it? (AEPA allows up to 15% for supplies and up to 25% for equipment).
11. Payment Terms: Will you offer AEPA Buyer’s a quick pay discount? _______ YES X NO
If YES, what is the discount? ______% Net _______
12. Leasing: Do you offer leasing arrangements under this bid? _______ YES X NO
If YES, remember to indicate the rate factor and other cost factors on the Pricing spreadsheet(s).
13. If an AEPA contract is approved and awarded by the Member Agencies, as a Vendor Partner, I agree to:
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AEPA FORM D: COMPANY INFORMATION
AEPA IFB #016-H
Athletic Surfaces – Tracks and Courts
NAME OF BIDDER: FieldTurf USA, Inc. (Beynon Sports Surfacing Products & Services)
COMPANY CONTACT INFORMATION (for Beynon Sports Surfaces)
Company Name: Beynon Sports Surfaces Website: www.beynonsports.com
Company Address: 16 Alt Rd.
City: Hunt Valley State: MD Zip: 21030
Contact Person: Eric Fisher Title: Director of Sales – SmartBuy OR Sarah Morehead Director of Operations – SmartBuy
Contact Phone: 888-209-0065 ext. 246 Contact Email: [email protected]
Contact Phone: 888-209-0065 ext. 230 Contact Email: [email protected]
COMPANY CONTACT INFORMATION (for bidder FieldTurf USA, Inc.)
Company Name: FieldTurf USA, Inc. Website: www.fieldturf.com
Company Address: 19600 SW 129th Ave
City: Tualatin State: OR Zip: 97062
Contact Person: Eric Fisher Title: Director of Sales – SmartBuy OR Sarah Morehead Title: Director of Operations - SmartBuy
Contact Phone: 888-209-0065 ext. 246 Contact Email: [email protected]
Contact Phone: 888-209-0065 ext. 230 Contact Email: [email protected]
BACKGROUND
Note: Generally, AEPA will not accept an offer from a business that is less than five (5) years old or which fails to demonstrate and/or establish a proven record of business. If the bidder has recently purchased an established business or has proof of prior success in either this business or a closely related business, provide written documentation and verification in response to the questions below. AEPA reserves the right to accept or reject newly formed companies based on information provided in this response and from its own investigation of the company.
This business is a public company X privately owned company.
In what year was this business started under its present name? October 1, 2004
Under what other or former name(s) has your business operated? N/A.
Is this business a corporation? No X Yes. If yes, please complete the following:
Date of incorporation: 1996 State of incorporation: Florida
Name of President: Eric Daliere
Name(s) of Vice President(s): N/A
Name of Secretary: Souha Azar
Name of Treasurer: Pedro Azevedo
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Is this business a partnership? X No Yes. If yes, please complete the following:
Date of organization:_______________ State founded: _______________________________
Type of partnership, if applicable: ________________________________________________
Name(s) of general partner(s): ___________________________________________________
Is this organization individually owned? X No Yes. If yes, please complete the following:
Date of organization:__________________ State founded: ____________________________
Name of owner: ______________________________________________________________
This organization is a form other than those identified above. No Yes.
IF THE ANSWER IS YES, describe the company’s format, year and state of origin, and names and titles of the principals.
COMPANY HEADQUARTER LOCATION (for Beynon Sports Surfaces)
Company Address: 16 Alt Rd.
City: Hunt Valley State: MD Zip: 21030
Main Phone Number: 410-771-9473 How long at this address? 2003
COMPANY BRANCH LOCATIONS (for Beynon Sports Surfaces & Dealers)
Beynon Sports Surfaces:
Beynon Sports South
Branch Address: 350 CR 255
City: Georgetown State: TX Zip: 78633
Beynon Sports West (1)
Branch Address: 19600 SW 129th Ave.
City: Tualatin State: OR Zip: 97062
Beynon Sports West (2)
Branch Address: 4263 N Selland Ave.
City: Fresno State: CA Zip: 93722
Beynon Sports Central
Branch Address: 775 Canosa Ct.
City: Denver State: CO Zip: 80204
Beynon Sports Surfaces Dealers
Nagle Athletics
6597 Joy Rd.
Syracuse, NY 13057
Cape & Island Track and Tennis
28 Commerce Park Rd
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Pocasset, MA 02559
Copeland Coatings
3600 US-20
Nassau, NY 12123
American Athletic (AACI)
2050 US-26
Southampton Township, NJ 08088
SALES HISTORY
Provide your company’s annual sales for 2012, 2013 and 2014 YTD in the United States by the various public segments:
2012 2013 2014 2015 YTD K-12 (public & private), Educational Service Agencies $32,179,773 $35,721,687 $27,441,401 $12,296,492
Higher Education Institutions $21,763,162 $14,403,447 $20,280,116 $3,044,347
Counties, Cities, Townships, Villages $788,417 $436,675 $621,530 $43,966
States
Other Public Sector & Non-profits $3,449,758 $691,829 $1,954,719 $18,750
Private Sector $904,781 $1,019,392 $624,174 $435,880
TOTAL $59,085,892 $52,273,030 $50,921,941 $15,839,435
WORK FORCE
1. Key Contacts and Providers: Provide a list of the individuals, titles, and contact information for the individuals who will provide the following services on a national and/or local basis:
Function Name Title Phone Email Contract Manager Eric Fisher Director of Sales-
SmartBuy 888-209-0065 [email protected]
Contract Manager Sarah Morehead Director of Sales- SmartBuy
888-209-0065 [email protected]
Contract Manager Terry Caruccio Director of Contract Administration
410-771-9473 [email protected]
Sales Manager John Beynon President 410-7710-9473 [email protected]
Customer & Support Manager
Ray Boatwright Operations Manager 512-778-6170 [email protected]
Function Name Title Phone Email Distributors, Dealers, Installers, Sales Reps
Rick Ediger Vice-President of Operations
512-778-6170 [email protected]
Consultants & Trainers Geoff Daley Chief Estimator and Director of Quality Assurance
410-771-9473 [email protected]
Technical, Maintenance & Support Services
Mike Gasparovic Vice-President of R&D
410-771-9473 [email protected]
Quotes, Invoicing & Payments
Mark Scrivano Director of Project Management
410-771-9473 [email protected]
Warranty & After the Sale
Lauren Sadowyj Contracts Administrative
410-771-9473 [email protected]
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Assistant
Financial Manager Stephen D Fisher Controller 410-771-9473 [email protected]
2. Sales Force: Provide total number and location of salespersons employed by your company in the United States by completing the following: (To insert more rows, hit the tab key from the last field in the State column.)
Number of Sales Reps
City State
2 Hunt Valley MD 1 Lexington VA 1 Kennesaw GA 1 Franklin TN 1 Glencoe MN 1 Wichita KS 1 Denver CO 1 Baytown TX 1 Austin TX 1 Phoenix AZ 2 Fresno CA 2 Tualatin OR
3. Service/Support and Distribution Centers: Provide the type (service/support or distribution) and location of centers that support the United States by completing the following: (To insert more rows, hit the tab key from the last field in the State column.)
Center Type City State Distribution Hunt Valley MD
Service/Support Georgetown TX Service/Support Fresno CA Service/Support Tualatin OR Service/Support Denver CO
4. In-house Resources: Describe the business’s current in-house workforce, equipment and facilities available
to perform under this solicitation.
Beynon Sports has a large workforce of 20 installation crews that are all specially trained by our manufacturing department to install our surfaces. Each Crew is equipped with all the tools needed to travel from site to site completing each project.
http://www.beynonsports.com/en/about-beynon/the-company
http://www.beynonsports.com/en/about-beynon/industry-leader
http://www.beynonsports.com/en/about-beynon/manufacturing
Please see Exhibits B & C
MARKETING
1. Key Marketing Contact(s): List the name(s), title(s) and contact information of the business’s key national and regional marketing office(s). (To insert more rows, hit the tab key from the last field in the State column.)
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Name Title Phone Email Darren Gill VP of Marketing, Innovation
& Customer Service 1-514-375-2584 [email protected]
Jason Smollett Director of Product Management
1-514-375-2614 [email protected]
Iannick Di Sanza Marketing Coordinator 1-514- 375-2646 [email protected]
Terrance Dobson Marketing Assistant 1-514-375-2613 [email protected]
Simon Lafontaine Marketing Specialist 1-514-375-2564 [email protected]
2. Marketing Activities: Describe how this company marketed its products and services to schools and other public sector audiences in Fiscal Year 2012 – 2013 (July 1 – June 30). List all conventions, conferences and other events at which this company exhibited.
FieldTurf & Beynon’s marketing activities can be broken up in the following categories:
Print Advertising
FieldTurf/ Beynon advertises in all major industry publications including:
American Football Monthly
Athletics Administration
Athletic Business
Athletic Management
Coach & Athletic Director
Coaching Management
Collegiate Directories
Government Recreation & Fitness
Park & Recreation Business
Recreation Management
Sportsfield Management
In addition to these nationwide publications, FieldTurf/ Beynon advertises in over 30 state/regional publications. Our typical advertising budget exceeds $120,000 annually.
E-Marketing
FieldTurf & Beynon’s E-Marketing efforts are broken up into two categories:
Website
The FieldTurf family of websites is made up of the following:
www.fieldturf.com
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www.beynonsports.com
www.tarkett.com
www.rennersports.com
Potential customers are directed to specific pages like:
http://www.beynonsports.com/en/about-beynon/smartbuy
FieldTurf’s websites average over 35,000 unique visitors per month.
Direct Mailing:
FieldTurf has a lead database with over 20,000 potential customers. Frequent messages are sent to various customer groups – most of which contain messaging pertaining to the AEPA/SmartBuy program.
Trade Shows
FieldTurf attends well over 200 trade shows per year nationwide. At each of these shows FieldTurf makes our best efforts to educate potential clients about the benefits of using AEPA. Our APEA program managers personally attend a large number of the shows as well. Here are the shows that FieldTurf has attended/scheduled for the Fiscal Year 2010 – 2011 (July 1 – June 30):
Alabama Athletics Directors (AHSAA)
Mississippi Coaches Ass. (MACA)
Florida Educational Facility Planners Ass. (FEFPA)
Arizona Park and Rec (AZPRA)
Florida Recs and Park Ass. (FRPA)
Texas Ass of School Administrators & Boards
American School Business Officials (ASBO)
NFHS - National HS ADs
NSBA - National School Boards Show
NABC - Basketball Coaches
NIRSA - Intramural & Recreation
NACDA - National AD Show
NACO - National Association of Counties
NIGP - National Govt Purchasing
ICMA - International County Mgmt
ASLA - American Society of Landscape Architects
NRPA - National Park & Rec
ABKA - Pet Care Services
ASBO - American School Business Officials
NLC - National League of Cities
TES - Education Show
Greenbuild
Athletic Business
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Home Builders Show
Golf Industry Show
AASA - American School Administrators
VASBO - Virginia School Business Officials
ECAC - Eastern Collegiate Athletic Conference
WADA - Wisconsin AD Show
National Soccer Coaches Association of America
Home Builders Show
NATIONAL INTRAMURAL-RECREATIONAL
SPORTS ASSOCIATION
Stadia Expo
NJCM - New Jersey Conference of Mayors
CADA - Colorado Athletic Directors Association
IADA - Illinois Athletic Director's Association
Boys & Girls Club
Virginia Association of School Business Officials
National High School Athletic Coaches Association
San Angelo Football Clinic
Facilities Operators Conference
MD/DC ASBO
Council of Educational Facility Planners Intl.
NJSLM - NJ State League of Municipalities
TPSCA - Texas Private School Coaches Association
FAC - FLORIDA ASSOCIATION OF COUNTIES
OSBA - OHIO SCHOOL BOARD ASSOCIATION
CCM - CONNECTICUT CONFERENCE OF
MUNICIPALITIES
Texas High School Coaches Association
Arkansas High School Coaches Association
KANSAS ASSOCIATION OF SCHOOL BOARDS
All-Star Sports Week
GRPA - Georgia Recreation & Park Association
OCA - Oklahoma Coaches Association
PSBA - Pennsylvania School Boards Association
CRPA - Connecticut Recreation & Parks Association
SBE - School Building Expo
PRPS - Pennsylvania Recreation & Park Society
NACO - National Association of Counties
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WASB - Wisconsin State Education Convention
IASB - Illinois Association of School Boards
PRPS - Pennsylvania Recreation & Park Society
National Institute of Governmental Purchasing
Home Builder's Show
Pet Care Services Association Convention & Expo
Greenbuilders 2010
ASLA - American Society of Landscape Architects
Directors of Athletic Directors of New Jersey
NJRPA - New Jersey Park and Rec
NJASLA - NJ Landscape Architects
IIAAA - Indiana ADs
MIAAA - Missouri Athletic Directors
NMAA - New Mexico Activities Association
ASBO MD/DC Maryland
Eastern Collegiate Athletic Conference (ECAC)
International County Management (ICM)
National Parks & Rec (NRPA)
Florida Ass. of School Business Officials (FASBO)
Alberta Recreation and Park Association
Louisianna AD (LHSAA)
Wisconsin State Education Convention
National HS AD Show (NFHS/NIAAA0
Colorado Assocaition of School Boards (CASB)
United States Speciality Sports Association (USSSA)
International Homebuilders Show (NAHB)
National Soccer Coaches Convention (NSCAA)
NJ Landscape Architects (NJASLA)
Golden Triangle Coaches Clinic
Kansas Parl and Rec (KRPA)
Minnesota AD (MIAAA)
Kansas Athletic Administrators (KIAAA)
Texas HS AD (THSADA)
Texas Ass of School Bus Off (TASBO)
Pennsylvania School Bus Off (PASBO)
Virginia AD
Indiana AD
Michigan AD (MIAAA)
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South Dakota AD (SDIAAA)
Iowa HS AD (IHSAA)
Georgia Athletic Directors Ass (GADA)
New Jersey AD (DAANJ)
New Jersey Park and Rec (NJRPA)
California Park and Rec (CRPS)
New York State ADA (NYSAAA)
Minnesota Football Coaches Clinic (MNFCC)
California Foundation of Community Colleges
NJ School Building & Grounds Ass. (NJSBGA)
Utah Interscholastic AD Ass (UIAAA)
Maryland Park and Rec (MRPA)
Missouri AD (MIAAA)
National Intramural Rec Show (NIRSA)
Tennessee Atheltic Directors Conference (TIAAA)
California Ass. of School Business Officials
California Parks and Recreation (CARPD)
New Jersey Conference of Mayors (NJCM)
Michigan School Business Officials (MSBO)
Colorado Athletic Director (CADA)
Maryland School Business Officials (MASBO)
Illinois Athletic Directors (IADA)
Florida Athletic Directors (FIAAA)
Alberta School Business Officials (ASBOA)
Virginia Ass. of School Business officials (VASBO)
Federation of Canadian Municipalities (FCM)
National AD Show (NACDA)
Georgia Athletic Coaches Ass. (GACA)
Florida Association of Counties (FAC)
Idaho Ass. of School Adm (ISSA)
Idaho Ass. of School Principals (IASSP)
Idaho AD Ass (IDAAA)
Washington Secondary School AD Ass (WSSAAA)
Oregon Athletic Directors Ass (OADA)
Washington Ass of School Bus Officials (WASBO)
Oregon Ass of School Bus Off (OASBO)
Montana Coaches Ass. (MCA)
Oregon Schools Facilities Management (OSFMA)
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NW All Sports Clinic (NWASC)
Oklahoma Coaches Association (OCA)
NAtional Ass. of Counties (NACO)
Wyoming Coaches Association (WCA)
CAAD - Connecticut Athletic Directors
SDIAAA - South Dakota Athletic Directors
VIAAA - Virginia Athletic Directors
KIAAA - Kansas Athletic Directors
PRO - Ontario Park & Rec
National School Plant Managers Association
OASBO - Ontario School Business Officials
CAIS - Connecticut Independent Schools
WFX - Worship Facilities Expo
OCAA - Ontario Colleges Athletic Association
MASBO - Missouri School Business Officials
AEMA - Athletic Equipment Managers
GACA - Georgia Athletic Coaches Association
ASBA - Arkansas School Boards
AHSADCA - Alabama HS Athletic Directors
NACBA - National Church Business
OCA - Oklahoma Coaches Association
STA - Sports Turf Association
AQLM - Quebec Municipalities
PASBO - Pennsylvania School Business Officials
CCM - Connecticut Municipalities
NJSBA
GRPA - Georgia Recreation & Parks
NLC - National League of Cities
NJSLM - New Jersey Municipalities
CASB - Colorado School Boards
KASB - Kansas School Boards
ABCA - American Baseball Coaches Association
Training Show
MSBO - Michigan School Business Officials
Ontario Association of School Business Officials
MSBA - Missouri School Boards' Association
Ohio Interscholastic Athletic Administrators
Arizona Interscholastic Athletics Administrator's
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Association
INDIANA SCHOOL BOARDS ASSOCIATION
WADA - Wisconsin Athletic Directors Association
APRA - Arizona Parks and Recreation Association
WFCA-Wisconsin Football Coaches Association
OSSBA - Oklahoma State School Boards Association
Kentucky High School Athletic Association
NJSBA - New Jersey School Board Association
IAPD - Illinois Association of Park Districts
TASA - Texas Association of School Administrators
VRPS - Virginia Recreation & Park Society
Georgia Association of School Facility
Administrators
Association of School Business Officials Intl.
Illinois Parks and Rec (IPRA/IAPD)
American Baseball Coaches Ass. (ABCA)
Sports Turfs Managers Ass. (STMA)
US Youth Soccer Workshop (USYSA)
Park and Rec Ontario (PRO)
Soccer Champions Coaches Clinic
New England Football Coaches Clinic (NEFCC)
Coalition for adequate School Housing (CASH)
Pennsylvania State AD (PSADA)
Connecticut Athletic Directors (CAAD)
National High School Athletic Coaches Ass.
IIAAA - Indiana Athletic Directors
Missouri Association of School Administrators
National Gov't Purchasing (NIGP)
MIAAA - Minnesota Athletic Directors
NABC - National Association of Basketball Coaches
MIAAA - Missouri Athletic Directors
Ohio Association of School Business Officials
FIAAA - Florida Athletic Directors
BGCA - Boys & Girls Club
NATA - National Athletic Trainers Association
NHSACA - National HS Athletic Coaches
TPSCA - Texas Private School Coaches
ASLA - American Landscape Architects
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San Angelo Football Clinic
WFX Fall - Worship Facilities Expo
OSBA - Ohio School Boards
Greenbuild
CPRA - Connecticut Parks & Recreation
IHRSA
AUSA - Association of U.S. Army Exposition
NABC- Indianapolis
Florida Interscholastic Athletic Administrators
SBE - School Building Expo
Stadium Managers Association
MIAAA - Michigan Athletic Directors
MRPA - Maryland Park & Rec
CADA - Colorado Athletic Directors
Council of Educational Facility Planners Intl.
MSBO - Michigan School Business Officials
AIA - American Institute of Architects
IADA - Illinois Athletic Directors
BCPRA - BC Parks & Recreation
SBE - School Building Expo
NACO - National Association of Counties
NIGP - National Government Purchasing
Athletic Business
K-12 Summit
MSBA - Missouri School Boards
IASB - Illinois School Boards
IPRA - Illinois Park & Rec
FCM - Federation of Canadian Municipalities
BC Park and Rec (BCPRA)
California AD show (CSADA)
Texas High School Coaches Ass. (THSCA)
PSADA - Pennsylvania State Athletic Directors
ICMA - Intl County Management
National School Board Ass (NSBA)
National Intramural Recreation & Sports Association
PGA Merchandise Show
TASA - Texas Superintendents
NSBA - National School Boards
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AIA - American Institute of Architects
NRPA - National Recreation & Park
NACDA - National AD Show
Home Builders Show
NACDA - National Athletic Directors Association
ASBO - American School Business Officials
AFCA - American Football Coaches
THSCA - Texas HS Coaches Association
NFHS - National High School Athletic Directors
American Football Coaches Association
NSBA - National School Boards Association
Social Media:
Twitter: www.twitter.com/beynonsports
Facebook: www.facebook.com/beynonsports
You Tube: www.youtube.com/channel/UC6Z95OiSW0MSscpNXYlqnOQ/feed
Linked-In: www.linkedin.com/company/beynon-sports
Please see Exhibit D – Exhibit L
3. Cooperative Marketing: Describe ways in which this business can collaborate with Member Agencies in
marketing the bid.
Help FieldTurf/ Beynon’s SmartBuy division explain to current and future AEPA members the value and benefits on Contract Selling. Attend requested board meetings, council meetings, etc. as part of our team to provide owners complete procurement information and opportunities for their sports surfaces project.
Provide familiarity/knowledge of member state’s cooperative procurement options. Include links for FieldTurf/ Beynon on the individual AEPA state’s cooperative website. Include FieldTurf/ Beynon logo, product information, and when applicable, project. Testimonials
and articles in the individual AEPA states cooperative marketing literature and brochures and websites.
Attendance of national and local conferences promoting partnership. A true partnership wins projects. The more we work together, the better off we are.
Webinars. Conference Calls. Lunch & Learns. Specifically designed fliers, hand-outs.
Please see Exhibit 1 – Exhibit 5
4. Sales Training: Explain how your company will education your sales staff on the AEPA contract including
timing, methods, etc.
The sole purpose of “SmartBuy” (FieldTurf’s Cooperative Purchasing division made up of Eric Fisher & Sarah Morehead) is to promote cooperative purchasing and the AEPA contract. Sales training includes:
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REQUIRED participation by FieldTurf and Beynon sales staffs. Top-Down backing from senior leadership.
Sharing of references and best practices. Conference calls. Lunch and learns. Several fliers that promote both the AEPA and regional participation (KCDA, CES, CREC, Greenbush
etc.) Salesforce learning modules. Marketplace updates, tips and tricks.
Please see Exhibit 6
ENVIRONMENTAL INITIATIVES
1. Describe how your products and/or services support environmental goals. Beynon Sports has been a pioneer in the development of environmentally sustainable athletic surfaces since our inception. Our state-of-the-art athletic surfaces provide a high performance medium for exercise and healthy living. Beynon Sports systems are designed to meet the stringent criteria required to earn points under numerous categories of LEED 2009 and USGBC.
2. Describe the company’s “green” objectives (i.e. LEED, reducing footprint, etc.). We have created many sustainable environmentally-friendly components to be used in our track surfaces. Each product that is designed and manufactured, and every athletic surfacing system installed by Beynon Sports contains no heavy metals, by design. This means that every product formulated by Beynon Sports is zero-mercury or mercury-free. All of our indoor products have also been GREENGUARD GOLD certified for compliance with the strict VOC emissions content. http://www.beynonsports.com/en/about-beynon/environmental-leadership
INDEPENDENT SUBCONTRACTORS, DISTRIBUTORS, INSTALLERS, ETC.
If the Bidder is not the sole provider of all goods and services provided under this contract, the following must be answered:
1. Selection Criteria for Independent Providers: Describe the criteria and process by which the business selects, certifies and approves subcontractors, distributors, installers and other independent services.
Beynon Sports Surfaces (BSS) self performs all track surfacing installation work. If our scope requires additional work outside our area of expertise we seek out the most qualified firms with impeccable reputations and the ability to stand behind their work well beyond when the warranty period expires. With over 2,000 track projects completed, BSS has developed an extensive network of reliable and professional subcontractors. Due to the critical achievement of planarity and composition tolerances that are involved in track and field construction, we prefer to work with experienced contractors that are familiar with NCAA running track construction. If this is not possible, we take a proactive approach to work on-site with the contractor to insure all NCAA and IAAF requirements are achieved and Beynon Sports Surfaces’ stringent quality thresholds are surpassed.
To become a BSS partner you must have:
Extensive experience in the design, construction and installer of running tracks and tennis courts.
At least 20 installations per year in a given market.
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Minimum annual purchase of polyurethane, aliphatic and various other products.
Emphasis on quality construction.
Lacks any judgements or warranty claims.
Holds proper licensing, certifications.
Please see Exhibit 7
2. Current Subcontractors, Distributors, Installers, Etc.: Provide a list of current subcontractors, distributors, installers and other independent service providers who are contracted to perform the type of work outlined in this bid in the member agency states (listed in Part A of this IFB). Include, if applicable, contractor license information and the state(s) wherein they are eligible to provide services on behalf of this business.
Beynon Sports Surfaces Dealers
Nagle Athletics
6597 Joy Rd.
Syracuse, NY 13057
www.nagleathletic.com
Cape & Island Track and Tennis
28 Commerce Park Rd
Pocasset, MA 02559
www.tennisandtrack.com
Copeland Coatings
3600 US-20
Nassau, NY 12123
www.copelandcoating.com
American Athletic (AACI)
2050 US-26
Southampton Township, NJ 08088
www.trackandturf.com
DISCLOSURES
1. Letter of Line of Credit or Annual Financial Report (REQUIRED): Attach a letter from the business’s chief financial institution indicating the current line of credit available in its name and evidence of financial stability for the past three calendar years (2010, 2011 and 2012). This letter should state the line of credit as a range (ie., “credit in the low six figures” or “a credit line exceeding five figures”). If company is a publicly traded company a complete Annual Financial Report is required in place of Line of Credit Letter.
Please see Exhibits 8 & 9
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AEPAFORMF.1:COMPLIANCE
AEPAIFB#016‐HAthleticSurfaces–TracksandCourts
NAMEOFBIDDER:FieldTurfUSA,Inc.(BeynonSportsProducts&Services)
INSTRUCTIONS:
1. Thisformisthree(3)pageslong.Thebidder’sauthorizedrepresentativemustsigntheformattheend.2. The criteria listed below are derived from the Part B: Bid Specifications this IFB. Other than industry
requirements established in federal, state or local statutes, exceptions/deviationsmay be proposed aslongastheyareexpresslynotedbelowandclarifiedonFormF.2.,whichfollows.Pleaseunderstandthatthestatedspecificationsrepresent themostdesirableattributesof theproductsandservicessoughtbyAEPAanditsAEPAMemberAgencies.
3. AEPAunderstands thatnotallbiddersprovideall commodities indicated in thespecifications. Biddersmay propose specific, similar and/or alternativemanufacturer’s product lines and/or serviceswithoutprejudiceaslongastheproposedproductsandservicesmeetorexceedthespecificationsinPartB:BidSpecificationsofthisIFB.
4. Foreachcriterionbelow,checkeither“Comply”ifitalignswiththecompany’sabilitytoprovideproductsandservicesor“Deviate”ifitdoesnot.
5. Iftherearenodeviationstothespecifications,indicatethatbycheckingtheappropriateboxonFormF.2andsignit.
6. ScanthecompletedformtoaPDFfileandtitleasinstructedinPartC(thissection),page2,#5.
Item Description Comply Deviate
6.1 The Vendor Partner will have access to a full inventory of the awarded product line.
X
6.2 The Vendor Partner shall maintain a minimum monthly overall average fill rate of 95% or above. Line items that are reordered, backordered, or partially filled are not considered filled line items when calculating this service level.
X
6.3 Orders must be shipped within 48 hours after receipt of an order 90% of the time. The Vendor Partner will notify the Buyer if product ordered cannot be shipped within this time period to provide the opportunity to secure product elsewhere.
X
6.4 Vendor Partners must be a manufacturer’s authorized sales and service dealer for all proposed equipment/software. An authorized sales and service dealer is defined in this solicitation as one purchasing their products for resell directly from the manufacturer(s) or the manufacturer’s approved channels. Products that result from new authorized sales and service dealer arrangements between the Vendor Partner and the manufacturer during the term of this contract may be added and offered through the AEPA contract.
X
6.5 All charges and components necessary for performance of the contract shall be clearly identified even if such are not specifically addressed in any paragraph or sub-paragraph or form that is a part of this request.
X
6.6 If the Vendor Partner intends to utilize independent agents/distributors, subcontractors and/or third-party agents to perform and/or provide any part of the products and services offered herein, the Vendor Partner must identify all providers and any and all associated costs with these providers.
X
6.7 Optional services must be identified separately, and must include clear descriptions of proposed services.
X
6.8 Vendor Partners must provide a product or mix of products in a manner that will allow Buyers to migrate to emerging technologies/services and between legacy technologies with no penalty charge associated with maintaining the most appropriate selections of goods and services throughout the life of the contract.
X
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Item Description Comply Deviate 6.9 Vendor Partners must be able to supply paper catalogs where requested.
The catalog shall have a cover label indicating that the catalog’s contents are available through the participating Member Agency and the AEPA contract. The label shall identify the agency’s contract number, discount level(s) and any special ordering instructions.
X
6.10 Packing slips shall accompany all deliveries and shall contain Buyer’s purchase order number, vendor name and name of article. Cartons shall be identified by purchase order number and vendor name.
X
6.11 Orders not filled and partials shall be indicated on the packing list. Vendor Partner shall inform member of anticipated availability date for unfilled and partial orders.
X
6.12 All products sold by the Vendor Partner must be new. Only the newest versions of software and equipment will be bid. Older versions will only be sold, if specifically requested. Vendor Partner may offer reconditioned products as a Voluntary Alternate; such items shall be marketed and labeled as being reconditioned.
X
6.13 Products that have a 30/60/90 day money back guarantee will be clearly identified in the catalog and on the web site (if applicable).
X
6.14 Vendor Partner has the option to offer private label products. Vendor Partner shall maintain the same manufacturer specifications for private label products throughout the term of contract. Any change of manufacturers for a private label shall result in offerings equal to or superior to the originally approved manufacturer at a price equal to or lower than the original offering.
X
6.15 Vendor Partner must maintain a toll free technical support line open 8 a.m. Eastern Time zone until 5 p.m., Pacific Time zone, Monday through Friday. Calls must be answered by a live US technician.
X
6.16 Vendor Partner must have a 24-hour toll-free order fax line. X
6.17 If the Vendor Partner makes an error in pricing (typographical or photographic error, for example), the Buyer reserves the right to return the product. The Vendor Partner agrees to pay for cost of any returned product due to a pricing error.
X
6.18 Vendor Partner shall provide a Safety Data Sheet (SDS) for all items sold, if required. A separate sheet shall be provided for each individual item when purchase is made.
X
6.19 Orders that are $50.00 or more shall include free shipping. Vendor Partner shall bid a flat rate for all orders that are less than $50.00 regardless of where to be shipped in the continental United States.
X
Category Specifications
Item Description Comply Deviate
7.1 The standards and specifications provided below are intended to establish minimum requirements and provide a general overview of the quality and type of products and services being requested.
X
7.1.1 Any products and services offered are to meet or exceed all local and state building codes.
X
7.1.2 All surface offered are to meet the requirements of ASTM F 2157-09 Standard Specification for Synthetic Surfaced Running Tracks - This specification establishes the minimum performance requirements and classification when tested in accordance with the procedures outlined within this specification.
X
7.1.3 The products and services may include, but are not limited to, the following.
X
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7.1.3.1 Provide technical and consulting services relating to running track or athletic court surface design, characteristics, construction, and integration into the development of a new athletic or recreational facility.
X
7.1.3.2 Provide existing site inspection and investigation to identify soil conditions existing at the site in order to take into account the conditions found in the designing of athletic and recreational fields. The investigation shall include, but not be limited to:
X
7.1.3.3 Stripping, placement of backfill and base construction in order to ensure the minimization of the risk of problems due to subsoil and subgrade conditions.
X
7.1.3.4 Soil inspection for the existence of peat or other organic soils at the site.
X
7.1.3.5 Inspection for uncontrolled fill materials or waste materials at the site.
X
7.1.3.6 Inspection for expansive soils at the site. X
7.1.3.7 High ground water conditions or surface water retention areas (low area flooding).
X
7.1.3.8 Provide all labor, materials, equipment and drawings required to provide design services for a project cost proposal with a complete scope of work, including all products, services and running track or athletic court specifications with their associated costs. A preliminary construction time schedule shall be a part of the project proposal.
X
7.1.3.9 Provide all labor, materials, equipment, project drawings and construction documents necessary to establish, construct, install lines and markings required to complete the running track or athletic court as identified and specified within the project documents for the individual Member's project scope of work and documents.
X
7.1.3.10 Provide all labor, materials and equipment required to assess and evaluate existing facilities, and develop and establish a plan of action for maintenance, repair and/or renovation of the existing athletic or recreational surface to condition as required by the Member.
X
7.1.3.11 Provide ongoing technical support and training services for AEPA Member's staff relating to the maintenance and operation of these types of surfaces to ensure their good operational condition.
X
7.1.3.12 The running track or athletic court should provide the performance characteristics, components, and construction that meet the needs of the declared use and/or functions.
X
7.1.3.13 The running track or athletic court and all of its components should be resistant to moisture, rot, mildew, bacteria, fungus growth, ultraviolet ray degradation, non-toxic, not cause commonly known allergic reactions at all field locations, and meet AEPA Member local state and environmental requirements.
X
7.1.3.14 Each running track or athletic court should be constructed to resist damage from wear and tear during athletic and recreational usage.
X
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7.1.4 Any Project to Include: X
7.1.4.1 Assess and determine existing site conditions and Member's expectations for the project.
X
7.1.4.2 Develop a proposed solution to conform to and meet the Member's expectations while considering and ensuring the following:
X
7.1.4.3 The solution proposed is adequate and functional within the existing site conditions and will comply with all building codes.
X
7.1.4.4 Provide labor, materials, equipment and supervision necessary to complete installation of running track or athletic court, including the following:
X
7.1.4.4.1 Site inspection and investigation. X
7.1.4.4.2 Site preparation and sub-base. X
7.1.4.4.3 Inspection and approval of sub-base. X
7.1.4.4.4 Installation of proposed running track and athletic court system with accessories, striping and equipment.
X
7.1.4.4.5 Provide cost estimates and information relating to after-the-sale ongoing inspection and maintenance services to ensure proper operation and upkeep of the running track and athletic court.
X
7.1.4.4.6 Construction and installation services to prepare and install proposed running track or athletic court on the designated site in accordance with the shop drawings, striping plan and manufacturer's instructions and specifications.
X
7.1.5 Guarantee the usability and playability of the synthetic turf system for its intended uses for an five (5) year period commencing with the date of substantial completion and acceptance by the Member for surface and ten (10) years for the base. The warranty coverage shall not be limited to the amount of usage.
X
7.1.6 Prior to order of materials, the contractor shall submit the following:
X
7.1.6.1 Sample warranty. X
7.1.6.2 Seam layout of the field and striping plans. X
7.1.6.3 Details on construction, especially any details that may deviate from plans and specifications.
X
7.1.6.4 Prior to the beginning of installation, the manufacturer/installer of the synthetic turf shall inspect the sub-base and supply a Certificate of Sub-Base Acceptance for the purpose of obtaining manufacturer's warranty for the finished synthetic playing surface.
X
7.2 Track Surface- Latex X
7.2.1 Latex surfaces are generally defined as rubber particles of a specified size, shape and composition, bound together by a water-based resin binder. They are resilient, all weather surfaces. Most are permeable.
X
7.2.2 Materials X
7.2.2.1 Water- Water used in dilution must be fresh and potable. X
7.2.2.2 Primer X
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7.2.2.2.1 Most latex systems require a primer application to promote adhesion between the resilient surface and the asphalt or concrete base.
X
7.2.2.2.2 Depending on the proprietary system, the binder may be latex or an asphalt emulsion.
X
7.2.2.3 Asphalt Emulsion - Asphalt emulsion is an asphaltic cement suspended in a water vehicle.
X
7.2.2.4 SBR Latex Binder X
7.2.2.4.1 SBR latex is water-based resin used to bind rubber particles. X
7.2.2.4.2 It is comprised of varying proportions of styrene and butadiene monomer in a water vehicle.
X
7.2.2.4.3 Other types of latex binders used as track binders include vinyl, acrylics and a variety of combinations.
X
7.2.2.5 SBR Rubber Particles X
7.2.2.5.1 SBR rubber particles are generally post-industrial by-products that have been shredded or chopped to a specific size, shape and gradation.
X
7.2.2.5.2 The characteristics of the rubber particles selected to be defined in the specification.
X
7.2.2.6 EPDM Rubber X
7.2.2.6.1 EPDM rubber highly pigmented rubber compound chopped to a specific size for use as a wearing surface.
X
7.2.2.6.2 Available in a wide range of colors and sizes. X
7.2.2.6.3 The compatibility of the EPDM granules and the latex binder be determined prior to installation.
X
7.2.2.7 Surface Coating X
7.2.2.7.1 Surface coating is the final wearing finish applied to the resilient surface.
X
7.2.2.7.2 It is used to provide protection from ultraviolet light degradation and to provide additional wear resistance and color uniformity.
X
7.2.2.7.3 The coating may be formulated with a variety of binder types, including SBR, acrylic latex or polyurethane. The system installer should insure compatibility.
X
7.2.3 Systems X
7.2.3.1 The materials listed above may be used in a wide variety of combinations to meet the requirements of AEPA Member. In no case should the recommended thickness of the system selected be less than 1/2" (12.5mm) when measured in accordance with USTC & TBA standards. The four general typed of latex track surfaces are as follows:
X
7.2.3.1.1 Black Mat - A black mat system is composed of black SBR rubber or black EPDM rubber particles bound by SBR latex or an approved alternate water-based resin. The surface coating is a highly pigmented black SBR or acrylic latex.
X
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7.2.3.1.2 Colored Binder - This system consists of black EPDM or black SBR rubber particles bound by a pigmented latex binder or an approved alternate water-based resin. The surface coating should be a highly pigmented UV stable coating of adequate thickness and durability to resist wear patterns with normal use.
X
7.2.3.1.3 Color Sandwich - This system of black EPDM or black SBR rubber particles bound by latex has a wearing course of at least 1/8" (3mm) of pigmented (other than black) EPDM granules bound by pigmented SBR latex binder or an approved alternative water-based binder. The surface coating should be a highly pigmented, UV stable coating to provide uniform color to the system.
X
7.2.3.1.4 Full Depth Color - This system consists of colored EPDM granules (not black) bound by pigmented SBR latex binder or an approved alternative water-based binder. The surface coating should be a highly pigmented, UV stable coating to provide strength and color uniformity. This system is used in high traffic areas in conjunction with either the Color Sandwich or the Colored Binder System.
X
7.2.4 Thickness and Specific Gravity X
7.2.4.1 Each surface system should be at least 1/2" (12.5mm) in total thickness to allow for variation in the underlayment and to prevent spiked shoes from penetrating to the base layer, potentially disrupting the bond. Both SBR and EPDM rubber particles will vary in specific gravity and bulk density value of rubber. This coupled with the application methods, shape and size will affect the rubber required to achieve 1/2" thickness. The chart below is intended for guidance for 1/2":
X
Color/Type Size/Shape Specific Gravity
Lbs./Sq. Yd. X
Black SBR Granules 1.15 - 1.40 10.0 - 12.0 X
Black SBR Medium Strands
1.15 - 1.25 8.5 - 10.0 X
Black EPDM
Granules 1.30 - 1.50 10.5 - 12.0 X
Colored EPDM
Granules 1.40 - 1.60 13.0 - 15.0 X
7.2.5 Variety of Shape, Size & Composition X
7.2.5.1 Each system manufacturer makes specific recommendations on the ratio of binder to rubber particles The variety of particles, their shape, size and composition will cause the volume of binder to vary. Each system should specify the ratios required in the following format:
X
7.2.5.1.1 Total dry pounds of latex undiluted binder. X
7.2.5.1.2 Total pounds of the specified rubber particle. X
7.2.5.1.3 For colored binder and color sandwich systems, the quantity of pigment per 55 gallons of latex binder.
X
7.2.6 Material Delivery X
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7.2.6.1 All material must be delivered to the job site in labeled and marked containers.
X
7.2.6.2 All packaging and excess materials must be disposed of in accordance with state, local and federal standards and regulations.
X
7.2.6.3 Do not allow liquid binders to freeze. X
7.2.6.4 Quantities needed to complete the project in accordance with the manufacturer's specifications should be verified.
X
7.2.7 Installation Equipment X
7.2.7.1 All installation equipment including mixers, pavers, sprayers and hand tools should be kept free of moisture while in use.
X
7.2.7.2 Tools to be cleaned daily. X
7.2.7.3 No equipment or vehicles used in the installation process should leak any gas, petroleum products, solvents, etc.
X
7.2.8 Surface Preparation X
7.2.8.1 The asphalt or concrete base should be sufficiently cured and cleaned in order for work to progress.
X
7.2.8.2 Recommended cure times - 14 days for asphalt, 28 days for concrete.
X
7.2.8.3 Prior to installation of the latex track system, the entire base should be checked for planarity and surface tolerance.
X
7.2.8.4 Any areas that vary +/- 1/4" measured with a 10' straightedge in any direction should be patched with a compound compatible with the asphalt or concrete base and approved by the latex track manufacturer.
X
7.2.8.5 After patching, the surface should not allow water to stand greater than 1/16" deep one hour after rain has ended.
X
7.2.9 Installation X
7.2.9.1 Latex track surfacing may be applied successfully by a variety of application methods.
X
7.2.9.1.1 Layered Installations will specify the volume/lbs. of surfacing to be placed in each layer.
X
7.2.9.1.2 Temperature & Humidity X
7.2.9.1.2.1 Latex track surfacing is dependent on evaporation for drying and curing.
X
7.2.9.1.2.2 No material may be placed if ambient temperature is not at least 50 degrees F and rising.
X
7.2.9.1.2.3 Relative humidity above 50% will increase the drying time. X
7.2.9.1.2.4 Low temperature and high humidity may lead to incomplete curing.
X
7.2.9.1.3 Surface Thickness - Before the final surface coating is applied, the owner and the contractor will determine that the desired surface thickness has been achieved by checking the surface in accordance with USTC & TBA test methods.
X
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7.2.10 Line Markings X
7.2.10.1 The surface system manufacturer must approve the type and brand of marking paint used.
X
7.2.10.2 All lane an event markings should be in accordance with the applicable governing body.
X
7.3 Track Surface- Polyurethane Tracks Base Mat X
7.3.1 A polyurethane base mat system is a homogenous blend of EPDM or SBR rubber granules and polyurethane binders that are evenly spread in a monolithic application over an asphaltic or concrete base. The system is a resilient all weather surface designed to allow moisture to pass through the surface. The system has a smooth finish and may be applied for both indoor and outdoor use.
X
7.3.2 Materials - A variety of products may be used in the construction of the track surface.
X
7.3.2.1 Primer X
7.3.2.1.1 The primer is a mixture of polyurethane binder and a viscosity reduction vehicle that allows for a light film application.
X
7.3.2.2 Polyurethane X
7.3.2.2.1 The polyurethane binder is a single component, 100% solids, moisture cure, elastic pre- polymer, designed to bind rubber granules together.
X
7.3.2.3 SBR/EPDM Black Rubber X
7.3.2.3.1 Fully cured rubber granules that may either be ambient or cryogenically ground from post- industrial by-products to a size of not less than 1 nor more than 4mm.
X
7.3.2.3.2 The general cut of the granules should be cubicle, should contain less than 4% dust and be free of foreign debris and should not contain any other color within the granule.
X
7.3.2.4 Colored EPDM Rubber X
7.3.2.4.1 Colored EPDM granules should be ground from fully cured virgin slabs of peroxide- or sulfur- cured rubber (the curing process must be compatible with the polyurethane chemicals being used).
X
7.3.2.4.2 The EPDM content should be not less than 20%. The general cut of the granules should be cubicle and they should contain less than 4% dust.
X
7.3.3 Thickness, Weight and Specific Gravity X
7.3.3.1 Each surface system should be at least 1/2" (12.5mm) in total thickness to allow for variation in the underlayment and to prevent spiked shoes from penetrating to the base layer, potentially disrupting the bond.
X
7.3.3.2 The total weight of the system is contingent upon the depth of the surface and the specific gravity of the materials.
X
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7.3.3.3 Both SBR and EPDM rubber particles will vary in specific gravity and bulk density value of rubber. This coupled with the application methods, shape and size will affect the rubber required to achieve 1/2" thickness. The chart below is intended for guidance. Color/Type per 1/8":
X
Color/Type Size/Shape Specific Gravity
Shore A Harness
X
Black SBR 1-4 mm Granules
1.15 - 1.40 55-70 X
Black SBR 1-4 mm Granules
1.20 - 1.50 55-70 X
Black EPDM 1-4 mm Granules
1.40 - 1.60 55-70 X
7.3.4 Material Delivery X
7.3.4.1 All materials should be delivered to the job site in labeled and marked containers.
X
7.3.4.2 Quantities needed to complete the project in accordance with the manufacturer's specifications should be verified.
X
7.3.4.3 All materials should be located to allow for work to proceed without interruption.
X
7.3.4.4 Do not allow liquid binders to freeze. X
7.3.4.5 All packaging and excess materials must be disposed of in accordance with state, local and federal standards and regulations.
X
7.3.5 Installation Equipment X
7.3.5.1 All installation equipment including mixers, pavers, sprayers and hand tools should be kept free of moisture while in use.
X
7.3.5.2 Tools to be cleaned daily. X
7.3.5.3 No equipment or vehicles used in the installation process should leak any gas, petroleum products, solvents, etc.
X
7.3.6 Surface Preparation X
7.3.6.1 The asphalt or concrete base should be sufficiently cured and cleaned in order for work to progress. Recommended cure times - 14 days for asphalt, 28 days for concrete.
X
7.3.6.2 Prior to installation of the track surface system, the entire base should be checked for planarity and surface tolerance.
X
7.3.6.3 Any areas that vary +/- 1/4" when measured with a 10' straightedge in any direction should be patched with a compound compatible with the base material and approved by the manufacturer of the track surfacing system.
X
7.3.6.4 After patching, the surface should not allow water to stand greater than 1/16" deep one hour after rain has ended.
X
7.3.7 Installation X
7.3.7.1 Primer X
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7.3.7.1.1 The surface should be primed with the appropriate polyurethane primer using spray equipment or rollers.
X
7.3.7.1.2 Application rates range between 0.18 - 0.27 lbs. per square yard. X
7.3.7.1.3 For an asphalt base, primer application may be reduced by the contractor when extreme heat conditions soften the asphalt.
X
7.3.7.1.4 Some manufacturers' systems will not require a primer. X
7.3.7.2 Mixing X
7.3.7.2.1 The rubber granules and polyurethane binder should be accurately measured and placed in a clean dry mixer and mixed until all granules are thoroughly coated with the polyurethane binder.
X
7.3.7.2.2 No evidence of water may exist during the mixing process. X
7.3.7.2.3 The mixing ratio of rubber to binder should not be less than 5 parts rubber to 1 part binder as determined by the weight of the products.
X
7.3.7.2.4 The pot life of the mix should not be less than 45 minutes. X
7.3.7.2.5 No agents are to be added to extend pot life. X
7.3.7.3 Placement of Base Mat X
7.3.7.3.1 The prepared material is placed evenly in front of the paving machine.
X
7.3.7.3.2 The machine should be operated at a speed and with the screed bar at an angle to provide a tight and smooth surface, free of chatter marks and voids.
X
7.3.7.3.3 The screed bars are to be constantly heated and should oscillate. X
7.3.7.3.4 Material should be placed at the specified depth in a single application and allowed to cure.
X
7.3.7.4 Trowel Work X
7.3.7.4.1 All seams are to be troweled smooth within the pot life of the material. All edges should be straight and rounded by turning the trowel. All cold dry seams should be cut straight at an inward angle and primed prior to commencing with subsequent work.
X
7.3.7.5 Arid Climates X
7.3.7.5.1 To aid in the curing process in arid climates, it may be necessary to mist the surface with water upon completion of the day's work.
X
7.3.7.6 Line Markings X
7.3.7.6.1 The surface system manufacturer must approve the type and brand of marking paint used. All lane and event markings should be in accordance with the applicable governing body.
X
7.4 Track Surface - Polyurethane Tracks Base Mat Structural X
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7.4.1 The polyurethane base mat structural spray system is a homogenous blend of EPDM or SBR rubber granules and polyurethane binders. The base layer is spread evenly in a monolithic application over an asphaltic or concrete base and followed with a structural spray-applied polyurethane and rubber blended coating. The system is a resilient all weather surface designed to allow moisture to pass through the surface. It has a textured finish and is used primarily in outdoor applications.
X
7.4.2 Materials X
7.4.2.1 Primer X
7.4.2.1.1 The primer is a mixture of polyurethane binder and a viscosity reduction vehicle that allows for a light film application.
X
7.4.2.2 Polyurethane X
7.4.2.2.1 The polyurethane binder is a single component, 100% solids, moisture cure, elastic pre- polymer, designed to bind rubber granules together.
X
7.4.2.3 SBR/EPDM Black Rubber X
7.4.2.3.1 Fully cured rubber granules that may either be ambient or cryogenically ground from post- industrial by-products to a size of not less than 1 nor more than 4mm.
X
7.4.2.3.2 The general cut of the granules should be cubicle. They should contain less than 4% dust and be free of foreign debris.
X
7.4.2.3.3 They should not contain any other color within the granule. X
7.4.2.4 Colored EPDM Rubber X
7.4.2.4.1 Colored EPDM granules should be ground from fully cured virgin slabs of peroxide- or sulfur- cured rubber (the curing process must be compatible with the polyurethane chemicals being used).
X
7.4.2.4.2 The EPDM content should be not less than 20%. The general cut of the granules should be cubicle and they should contain less than 4% dust.
X
7.4.2.5 Colored EPDM Rubber X
7.4.2.5.1 Colored EPDM Rubber (Structural Spray) Same as Colored EPDM Rubber, above, but the gradation of the granules should range from 0.5mm to a maximum of 3mm.
X
7.4.3 Thickness, Weight and Specific Gravity X
7.4.3.1 Each surface system should be at least 1/2" (12.5mm) in total thickness to allow for variation in the underlayment and to prevent spiked shoes from penetrating to the base layer, potentially disrupting the bond.
X
7.4.3.2 The total weight of the system is contingent upon the depth of the surface and the specific gravity of the materials.
X
7.4.3.3 Both SBR and EPDM rubber particles will vary in specific gravity and bulk density value of rubber. This coupled with the application methods, shape and size will affect the rubber required to achieve 1/2" thickness.
X
7.4.4 Material Delivery X
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7.4.4.1 All materials should be delivered to the job site in labeled and marked containers.
X
7.4.4.2 Quantities needed to complete the project in accordance with the manufacturer's specifications should be verified.
X
7.4.4.3 All materials should be located to allow for work to proceed without interruption.
X
7.4.4.4 Do not allow liquid binders to freeze. X
7.4.4.5 All packaging and excess materials must be disposed of in accordance with state, local and federal standards and regulations.
X
7.4.5 Installation Equipment X
7.4.5.1 All installation equipment including mixers, pavers, sprayers and hand tools should be kept free of moisture while in use.
X
7.4.5.2 Tools to be cleaned daily. X
7.4.5.3 No equipment or vehicles used in the installation process should leak any gas, petroleum products, solvents, etc.
X
7.4.6 Surface Preparation X
7.4.6.1 The asphalt or concrete base should be sufficiently cured and cleaned in order for work to progress. Recommended cure times - 14 days for asphalt, 28 days for concrete.
X
7.4.6.2 Prior to installation of the track surface system, the entire base should be checked for planarity and surface tolerance.
X
7.4.6.3 Any areas that vary +/- 1/4" when measured with a 10' straightedge in any direction should be patched with a compound compatible with the base material and approved by the manufacturer of the track surfacing system.
X
7.4.6.4 After patching, the surface should not allow water to stand greater than 1/16" deep one hour after rain has ended.
X
7.4.7 Installation X
7.4.7.1 Primer X
7.4.7.1.1 The surface should be primed with the appropriate polyurethane primer using spray equipment or rollers.
X
7.4.7.1.2 Application rates range between 0.18 - 0.27 lbs. per square yard. X
7.4.7.1.3 For an asphalt base, primer application may be reduced by the contractor when extreme heat conditions soften the asphalt.
X
7.4.7.1.4 Some manufacturers' systems will not require a primer. X
7.4.7.2 Mixing X
7.4.7.2.1 The rubber granules and polyurethane binder should be accurately measured and placed in a clean dry mixer and mixed until all granules are thoroughly coated with the polyurethane binder.
X
7.4.7.2.2 No evidence of water may exist during the mixing process. X
7.4.7.2.3 The mixing ratio of rubber to binder should not be less than 5 parts rubber to 1 part binder as determined by the weight of the products.
X
7.4.7.2.4 The pot life of the mix should not be less than 45 minutes. X
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7.4.7.2.5 No agents are to be added to extend pot life. X
7.4.7.3 Placement of Base Mat X
7.4.7.3.1 The prepared material is placed evenly in front of the paving machine.
X
7.4.7.3.2 The machine should be operated at a speed and with the screed bar at an angle to provide a tight and smooth surface, free of chatter marks and voids.
X
7.4.7.3.3 The screed bars are to be constantly heated and should oscillate. X
7.4.7.3.4 Material should be placed at the specified depth in a single application and allowed to cure.
X
7.4.7.4 Trowel Work X
7.4.7.4.1 All seams are to be troweled smooth within the pot life of the material.
X
7.4.7.4.2 All edges should be straight and rounded by turning the trowel. X
7.4.7.4.3 All cold dry seams should be cut straight at an inward angle and primed prior to commencing with subsequent work.
X
7.4.7.5 Arid Climates X
7.4.7.5.1 To aid in the curing process in arid climates, it may be necessary to mist the surface with water upon completion of the day's work.
X
7.4.7.6 Line Markings X
7.4.7.6.1 The surface system manufacturer must approve the type and brand of marking paint used.
X
7.4.7.6.2 All lane and event markings should be in accordance with the applicable governing body.
X
7.5 Track Surface - Polyurethane Tracks Base Mat Sandwich X
7.5.1 The polyurethane base mat sandwich system is a homogenous blend of SBR rubber granules and polyurethane binder base layer spread evenly in a monolithic application follow by sealing. The sealant layer is a massive application of polyurethane coating with colored EPDM granules broadcast or encapsulated into the coating. This sealant layer makes the system impermeable. The system is a resilient all weather surface. It is textured and is used in both indoor outdoor applications.
X
7.5.2 Materials X
7.5.2.1 Primer X
7.5.2.1.1 The primer is a mixture of polyurethane binder and a viscosity reduction vehicle that allows for a light film application.
X
7.5.2.2 Polyurethane X
7.5.2.2.1 The polyurethane binder is a single component, 100% solids, moisture cure, elastic pre- polymer, designed to bind rubber granules together.
X
7.5.2.3 Polyurethane Coating and Sealers X
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7.5.2.3.1 Two component 100% solids polyurethane coating consisting of a Part A colored polyol and Part B isocyanate activator.
X
7.5.2.3.2 Specific gravity of 1.15 to 1.30. The coating may be used for the top layer as well as the sealant layer.
X
7.5.2.4 Polyurethane Sealer X
7.5.2.4.1 Two component 100% solids thioxtropic polyurethane coating consisting of a Part A colored polyol and Part B isocyanate activator. Specific gravity of 1.45 -1.60.
X
7.5.2.4.2 The coating is applied without the adding of rubber dust and is used only as a sealer.
X
7.5.2.5 Polyurethane Aliphatic Top Coating X
7.5.2.5.1 A single or two component aliphatic top coating applied to structural surfaces that need to be protected from UV degradation.
X
7.5.2.6 SBR/EPDM Black Rubber X
7.5.2.6.1 Fully cured rubber granules that may either be ambient or cryogenically ground from post- industrial by-products to a size of not less than 1 nor more than 4mm.
X
7.5.2.6.2 The general cut of the granules should be cubicle, contain less than 4% dust, and be free of foreign debris, and not contain any other color within the granule.
X
7.5.2.7 Colored EPDM Rubber X
7.5.2.7.1 Colored EPDM granules should be ground from fully cured virgin slabs of peroxide- or sulfur cured rubber (the curing process must be compatible with the polyurethane chemicals being used).
X
7.5.2.7.2 The EPDM content should be not less than 20%. X
7.5.2.7.3 The general cut of the granules should be cubicle and they should contain less than 4% dust.
X
7.5.2.7.4 Colored EPDM rubber dust graded to -0.5 may be used as a thickener for the polyurethane coating in the sealing process.
X
7.5.3 Thickness, Weight and Specific Gravity X
7.5.3.1 Each surface system should be at least 1/2" (12.5mm) in total thickness to allow for variation in the underlayment and to prevent spiked shoes from penetrating to the base layer, potentially disrupting the bond.
X
7.5.3.2 The total weight of the system is contingent upon the depth of the surface and the specific gravity of the materials.
X
7.5.3.3 Both SBR and EPDM rubber particles will vary in specific gravity and bulk density value of rubber. This coupled with the application methods, shape and size will affect the rubber required to achieve 1/2" thickness. The chart below is intended for guidance per 1/8":
X
Size/Shape Specific Gravity Shore A Harness
X
1-4 mm Granules 1.15 - 1.40 55-70 X
1-4 mm Granules 1.20 - 1.50 55-70 X
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1-4 mm Granules 1.40 - 1.60 55-70 X
7.5.4 Material Delivery X
7.5.4.1 All materials should be delivered to the job site in labeled and marked containers.
X
7.5.4.2 Quantities needed to complete the project in accordance with the manufacturer's specifications should be verified.
X
7.5.4.3 All materials should be located to allow for work to proceed without interruption.
X
7.5.4.4 Do not allow liquid binders to freeze. X
7.5.4.5 All packaging and excess materials must be disposed of in accordance with state, local and federal standards and regulations.
X
7.5.5 Installation Equipment X
7.5.5.1 All installation equipment including mixers, pavers, sprayers and hand tools should be kept free of moisture while in use.
X
7.5.5.2 Tools to be cleaned daily. X
7.5.5.3 No equipment or vehicles used in the installation process should leak any gas, petroleum products, solvents, etc.
X
7.5.6 Surface Preparation X
7.5.6.1 The asphalt or concrete base should be sufficiently cured and cleaned in order for work to progress. Recommended cure times - 14 days for asphalt, 28 days for concrete.
X
7.5.6.2 Prior to installation of the track surface system, the entire base should be checked for planarity and surface tolerance.
X
7.5.6.3 Any areas that vary +/- 1/4" when measured with a 10' straightedge in any direction should be patched with a compound compatible with the base material and approved by the manufacturer of the track surfacing system.
X
7.5.6.4 After patching, the surface should not allow water to stand greater than 1/16" deep one hour after rain has ended.
X
7.5.7 Installation X
7.5.7.1 Primer X
7.5.7.1.1 The surface should be primed with the appropriate polyurethane primer using spray equipment or rollers.
X
7.5.7.1.2 Application rates range between 0.18 - 0.27 lbs. per square yard. X
7.5.7.1.3 For an asphalt base, primer application may be reduced by the contractor when extreme heat conditions soften the asphalt.
X
7.5.7.1.4 Some manufacturers' systems will not require a primer. X
7.5.7.2 Mixing X
7.5.7.2.1 The rubber granules and polyurethane binder should be accurately measured and placed in a clean dry mixer and mixed until all granules are thoroughly coated with the polyurethane binder.
X
7.5.7.2.2 No evidence of water may exist during the mixing process. X
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7.5.7.2.3 The mixing ratio of rubber to binder should not be less than 5 parts rubber to 1 part binder as determined by the weight of the products.
X
7.5.7.2.4 The pot life of the mix should not be less than 45 minutes. X
7.5.7.2.5 No agents are to be added to extend pot life. X
7.5.7.3 Placement of Base Mat X
7.5.7.3.1 The prepared material is placed evenly in front of the paving machine.
X
7.5.7.3.2 The machine should be operated at a speed and with the screed bar at an angle to provide a tight and smooth surface, free of chatter marks and voids.
X
7.5.7.3.3 The screed bars are to be constantly heated and should oscillate. X
7.5.7.3.4 Material should be placed at the specified depth in a single application and allowed to cure.
X
7.5.7.4 Trowel Work X
7.5.7.4.1 All seams are to be troweled smooth within the pot life of the material.
X
7.5.7.4.2 All edges should be straight and rounded by turning the trowel. X
7.5.7.4.3 All cold dry seams should be cut straight at an inward angle and primed prior to commencing with subsequent work.
X
7.5.7.5 Arid Climates X
7.5.7.5.1 To aid in the curing process in arid climates, it may be necessary to mist the surface with water upon completion of the day's work.
X
7.5.7.6 Seal Coat X
7.5.7.6.1 The seal coat is a mixture of the two component coating and EPDM rubber dust that is mixed and squeegee-applied to the base mat.
X
7.5.7.6.2 Alternatives are to squeegee-apply two component thixotropic polyurethane coating without rubber dust or spray binder and brush EPDM rubber dust into the base mat.
X
7.5.7.6.3 In all cases, sufficient material is to be applied to render the surface impermeable.
X
7.5.7.6.4 It is extremely important that the base mat and base are completely void of moisture before commencing with application of the seal coat.
X
7.5.7.7 Top Coat X
7.5.7.7.1 The top coat is a massive flow application of the two component coating that is mixed according to the ratios of part A and B listed by the manufacturer.
X
7.5.7.7.2 The material is to be self-leveling and should be free of ridges. X
7.5.7.7.3 Prior to initial set, colored EPDM rubber granules are broadcast with sufficient excess granules being applied to assist in the embedding process.
X
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7.5.7.7.4 Normally 5 to 5.5 lbs. of granules per square yard will be embedded.
X
7.5.7.7.5 All loose excess granules are removed after initial cure. X
7.5.7.7.6 The alternative top coating is a spray application of a two component coating and encapsulated EPDM rubber granules applied at an approximate ratio of 60% coating to 40% rubber to sufficiently protect the base.
X
7.5.7.8 Aliphatic Top Coating X
7.5.7.8.1 If the encapsulated top coating is unprotected for UV resistance, then a thin mil layer of one or two component aliphatic top coating should be spray-applied, normally in two applications, over the surface in accordance to the manufacturer's recommendation.
X
7.5.7.9 Line Markings X
7.5.7.9.1 The surface system manufacturer must approve the type and brand of marking paint used.
X
7.5.7.9.2 All lane and event markings should be in accordance with the applicable governing body.
X
7.6 Track Surfacing - Polyurethane Tracks Full Pour (Impermeable) X
7.6.1 A full pour polyurethane system is the application of multiple layers of polyurethane coating and rubber, which may either be black SBR or colored EPDM. The top layer is a massive application of polyurethane coating with colored EPDM granules broadcast or encapsulated into the coating. The system is a resilient all weather surface. It is textured and impermeable and is used in both indoor and outdoor applications.
X
7.6.2 Materials X
7.6.2.1 Primer X
7.6.2.1.1 The primer is a mixture of polyurethane binder and a viscosity reduction vehicle that allows for a light film application.
X
7.6.2.2 Polyurethane Coating and Sealers X
7.6.2.2.1 Two component 100% solids polyurethane coating consisting of a Part A colored polyol and Part B isocyanate activator.
X
7.6.2.2.2 Specific gravity of 1.15 to 1.30. X
7.6.2.3 Polyurethane Aliphatic Top Coating X
7.6.2.3.1 A single or two component aliphatic top coating applied to structural surfaces that need to be protected from UV degradation.
X
7.6.2.4 SBR/EPDM Black Rubber X
7.6.2.4.1 Fully cured rubber granules that may either be ambient or cryogenically ground from post- industrial by-products to a size of not less than 1 nor more than 4mm.
X
7.6.2.4.2 The general cut of the granules should be cubicle, contain less than 4% dust, and be free of foreign debris, and not contain any other color within the granule.
X
7.6.2.5 Colored EPDM Rubber X
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7.6.2.5.1 Colored EPDM granules should be ground from fully cured virgin slabs of peroxide or sulfur cured rubber (the curing process must be compatible with the polyurethane chemicals being used).
X
7.6.2.5.2 The EPDM content should be not less than 20%. X
7.6.2.5.3 The general cut of the granules should be cubicle and they should contain less than 4% dust.
X
7.6.3 Thickness, Weight and Specific Gravity X
7.6.3.1 Each surface system should be at least 1/2" (12.5mm) in total thickness to allow for variation in the underlayment and to prevent spiked shoes from penetrating to the base layer, potentially disrupting the bond.
X
7.6.3.2 The total weight of the system is contingent upon the depth of the surface and the specific gravity of the materials.
X
7.6.3.3 Both SBR and EPDM rubber particles will vary in specific gravity and bulk density value of rubber. This coupled with the application methods, shape and size will affect the rubber required to achieve 1/2" thickness. The chart below is intended for guidance per 1/8":
X
Size/Shape Specific Gravity Shore A Harness
X
1-4 mm Granules 1.15 - 1.40 55-70 X
1-4 mm Granules 1.20 - 1.50 55-70 X
1-4 mm Granules 1.40 - 1.60 55-70 X
7.6.4 Material Delivery X
7.6.4.1 All materials should be delivered to the job site in labeled and marked containers.
X
7.6.4.2 Quantities needed to complete the project in accordance with the manufacturer's specifications should be verified.
X
7.6.4.3 All materials should be located to allow for work to proceed without interruption.
X
7.6.4.4 Do not allow liquid binders to freeze. X
7.6.4.5 All packaging and excess materials must be disposed of in accordance with state, local and federal standards and regulations.
X
7.6.5 Installation Equipment X
7.6.5.1 All installation equipment including mixers, pavers, sprayers and hand tools should be kept free of moisture while in use.
X
7.6.5.2 Tools to be cleaned daily. X
7.6.5.3 No equipment or vehicles used in the installation process should leak any gas, petroleum products, solvents, etc.
X
7.6.6 Surface Preparation X
7.6.6.1 The asphalt or concrete base should be sufficiently cured and cleaned in order for work to progress. Recommended cure times - 14 days for asphalt, 28 days for concrete.
X
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7.6.6.2 Prior to installation of the track surface system, the entire base should be checked for planarity and surface tolerance.
X
7.6.6.3 Any areas that vary +/- 1/4" when measured with a 10' straightedge in any direction should be patched with a compound compatible with the base material and approved by the manufacturer of the track surfacing system.
X
7.6.6.4 After patching, the surface should not allow water to stand greater than 1/16" deep one hour after rain has ended.
X
7.6.7 Installation X
7.6.7.1 Primer X
7.6.7.1.1 The surface should be primed with the appropriate polyurethane primer using spray equipment or rollers.
X
7.6.7.1.2 Application rates range between 0.18 - 0.27 lbs. per square yard. X
7.6.7.1.3 For an asphalt base, primer application may be reduced by the contractor when extreme heat conditions soften the asphalt.
X
7.6.7.1.4 Some manufacturers' systems will not require a primer. X
7.6.7.2 Mixing X
7.6.7.2.1 All two component polyurethane coatings are to be mixed in a manner to accurately measure and thoroughly mix all materials to the ratios specified by the manufacturer.
X
7.6.7.3 Applying Base Materials X
7.6.7.3.1 The two component self-leveling polyurethane coating is flow applied to the base in multiple layers with either black SBR or colored EPDM granules being applied into the coating to attain the specified base depth.
X
7.6.7.3.2 The ratio of base rubber will be between 15% and 35% of the total weight of the finished surface.
X
7.6.7.4 Top Coat X
7.6.7.4.1 The top coat is a massive flow application of the two component coating that is mixed according to the ratios of part A and B listed by the manufacturer.
X
7.6.7.4.2 The material is to be self-leveling and should be free of ridges. X
7.6.7.4.3 Prior to initial set, colored EPDM rubber granules are broadcast into the coating with sufficient excess granules being applied to assist in the embedding process.
X
7.6.7.4.4 Normally 5 to 5.5 lbs. of granules per square yard will be embedded.
X
7.6.7.4.5 All loose excess granules are removed after initial cure. X
7.6.7.4.6 The alternative top coating is a spray application of two component coating and encapsulated EPDM rubber granules applied at an approximate ratio of 60% coating to 40% rubber to sufficiently protect the base.
X
7.6.7.5 Aliphatic Top Coating X
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7.6.7.5.1 If the encapsulated top coating is unprotected for UV resistance, then a thin mil layer of the one or two component aliphatic top coating should be spray applied, normally in two applications, over the surface in accordance to the manufacturer's recommendation.
X
7.6.7.6 Line Markings X
7.6.7.6.1 The surface system manufacturer must approve the type and brand of marking paint used.
X
7.6.7.6.2 All lane and event markings should be in accordance with the applicable governing body.
X
7.7 Track Surfacing - Pre-manufactured Rubber Tracks X
7.7.1 Pre-manufactured rubber track surfaces can be classified into three distinct systems: a prefabricated rubber base layer with a structural spray top coating (permeable structure); a prefabricated rubber base layer with massive pour of polyurethane coating with embedded colored EPDM rubber granules (impermeable structure), and a prefabricated, vulcanized rubber product that is installed in a single layer (impermeable structure).
X
7.7.2 Materials X
7.7.2.1 Primer X
7.7.2.1.1 The primer is a mixture of polyurethane binder and a viscosity reduction vehicle that allows for a light film application. Primer may vary with the specifications provided by the manufacturer of the surface.
X
7.7.2.2 Adhesive X
7.7.2.2.1 The adhesive is a single or two component polyurethane or other material specified by the manufacturer that is used to bond the prefabricated materials to the prepared base.
X
7.7.2.3 Prefabricated Rubber Mat X
7.7.2.3.1 The prefabricated rubber mat is a rolled sheet good product that is comprised of rubber particles and a polyurethane binder.
X
7.7.2.4 Prefabricated Vulcanized Rubber Mat X
7.7.2.4.1 The prefabricated mat is calendered and vulcanized with a base of natural and synthetic rubber, stabilizing agents and pigments at a prescribed thickness and finish texture.
X
7.7.3 System Thickness, Weight and Specific Gravity X
7.7.3.1 Each surface system should be at least 1/2" (12.5mm) in total thickness to allow for variation in the underlayment and to prevent spiked shoes from penetrating to the base layer, potentially disrupting the bond.
X
7.7.3.2 The total weight of the system is contingent upon the depth of the surface and the specific gravity of the materials, as well as the weight of the colored EPDM granules embedded in the top coating.
X
7.7.4 Material Delivery X
7.7.4.1 All materials should be delivered to the job site in labeled and marked containers.
X
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7.7.4.2 Quantities needed to complete the project in accordance with the manufacturer's specifications should be verified.
X
7.7.4.3 All materials should be located to allow for work to proceed without interruption.
X
7.7.4.4 Do not allow liquid binders to freeze. X
7.7.4.5 All packaging and excess materials must be disposed of in accordance with state, local and federal standards and regulations.
X
7.7.5 Installation Equipment X
7.7.5.1 All installation equipment including mixers, pavers, sprayers and hand tools should be kept free of moisture while in use.
X
7.7.5.2 Tools to be cleaned daily. X
7.7.5.3 No equipment or vehicles used in the installation process should leak any gas, petroleum products, solvents, etc.
X
7.7.6 Surface Preparation X
7.7.6.1 The asphalt or concrete base should be sufficiently cured and cleaned in order for work to progress. Recommended cure times - 14 days for asphalt, 28 days for concrete.
X
7.7.6.2 Prior to installation of the track surface system, the entire base should be checked for planarity and surface tolerance.
X
7.7.6.3 Any areas that vary +/- 1/4" when measured with a 10' straightedge in any direction should be patched with a compound compatible with the base material and approved by the manufacturer of the track surfacing system.
X
7.7.6.4 After patching, the surface should not allow water to stand greater than 1/16" deep one hour after rain has ended.
X
7.7.7 Installation X
7.7.7.1 Primer X
7.7.7.1.1 The day's work should be primed, if required, in accordance with the manufacturer's specifications.
X
7.7.7.1.2 Normal application procedures call for the primer to be either spray or roller applied.
X
7.7.7.2 Placement of the Mat X
7.7.7.2.1 Materials to be laid out and relaxed prior to installation. X
7.7.7.2.2 Adhesive is then mixed and troweled in place using a notched trowel.
X
7.7.7.2.3 Apply rates should be in accordance with the manufacturer's specifications.
X
7.7.7.2.4 Adhesive should be applied only to the area to be covered by one roll at a time.
X
7.7.7.2.5 When the adhesive is tacky, the mat is then placed onto the surface making sure that each sheet is placed in a straight line or around a curve at a constant radius.
X
7.7.7.2.6 All butt joints are to be staggered. X
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7.7.7.2.7 The mat should be rolled out so that all entrapped air is removed. X
7.7.7.2.8 Seams and butt joints are to be level and not pinched. X
7.7.7.2.9 Place weights as necessary to hold the mat in place. X
7.7.7.2.10 Remove any excess adhesive that protrudes above the seams and joints.
X
7.7.7.3 Structural Top Coating X
7.7.7.3.1 Mixing X
7.7.7.3.1.1 Using dry containers, weigh out in accordance to the manufacturer's specification a quantity of the two component parts (A and B) of the structural spray and mix them thoroughly.
X
7.7.7.3.1.2 Add the specified quantity of colored EPDM rubber granules to the mixed material, or in the case of a single component structural spray, to the weighed out portion of that single component material. Mix thoroughly.
X
7.7.7.3.2 Application X
7.7.7.3.2.1 Place the mixed material into a spray machine and spray apply the material to the base mat.
X
7.7.7.3.2.2 Apply a second coat of material over the first by spraying in the opposite direction. The total rate of application of two coats of spray will range from 3.4 to 4.4 lbs. per square yard.
X
7.7.7.3.3 Should the surface require a structural spray coating, see " Track Surfacing - Polyurethane Tracks - Base Mat Structural Spray".
X
7.7.7.4 Flood Coat and Embedded Rubber Top Coating X
7.7.7.4.1 The top coat is a massive flow application of the two component coating that is mixed according to the ratios of part A and B listed by the manufacturer.
X
7.7.7.4.2 The material is to be self-leveling and should be free of ridges. X
7.7.7.4.3 Prior to initial set colored EPDM rubber granules are broadcast with sufficient excess granules being applied to assist in the embedding process. Normally 5 to 5.5 lbs. of granules per square yard will be embedded. All loose excess granules are removed after initial cure.
X
7.7.7.4.4 The alternative top coating is a spray application of two component coating and encapsulated EPDM rubber granules applied at an approximate ratio of 60% coating to 40% rubber to sufficiently protect the base.
X
7.7.7.4.5 Should the surface require a flood coat and EPDM rubber top coating, see "Track Surfacing - Polyurethane Tracks -Base Mat/Sandwich."
X
7.7.7.5 Single Sheet Good Installation X
7.7.7.5.1 Should the specification call for the product to be vulcanized and calendered with a textured finish, proceed to line marking.
X
7.7.7.6 Line Markings X
7.7.7.6.1 The surface system manufacturer must approve the type and brand of marking paint used.
X
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7.7.7.6.2 All lane and event markings should be in accordance with the applicable governing body.
X
7.8 Layout & Striping of Running Tracks X
7.8.1 Paint - Various types of running surfaces have different characteristics. These may require different types of paint such as latex, urethane or enamels. Use paint per track surfacing manufacturer's recommendations.
X
7.8.2 Layout X
7.8.2.1 General Method X
7.8.2.1.1 At minimum layout should be accomplished using an transit, theodolite or total station that will read directly to at least 20 seconds and steel engineer's tape that will read directly to 0.001m or 0.01" or EDM device. Temperature correction should be applied as it will affect the level of precision.
X
7.8.2.1.2 Cloth tapes, fiberglass tapes and measuring wheels should not be used,
X
7.8.2.1.3 Other methods, providing the same or greater accuracy, may be used if prior approval is obtained.
X
7.8.2.2 Tolerances X
7.8.2.2.1 Track Governing Bodies do not allow a minus tolerance of any kind in a track.
X
7.8.3 Painting X
7.8.3.1 Placement X
7.8.3.1.1 The location of the finish line determines the location of all other markings such as starts, hurdles and exchange zones.
X
7.8.3.1.2 Consult the governing body requirements and recommendations for finish line placement.
X
7.8.4 Markings X
7.8.4.1 Lane Lines, Start and Finish Lines X
7.8.4.2 Lane line markings should be 2" (5 cm) wide depending on the rules of the governing body. In areas where chute and curve lines intersect, chute lines should be dashed or broken with some other means to indicate the curved lines have priority. Start and finish lines should also be 2"(5 cm) in width. The NCAA and IAAF require finish line blackouts.
X
7.8.5 Exchange Zones X
7.8.5.1 Exchange zones are typically marked using triangles or rectangles, squares or triangles, painted on both sides of each lane.
X
7.8.6 Hurdle Placements X
7.8.6.1 Hurdle placements can be identified by use of small rectangles, squares or triangles, painted on both sides of each lane.
X
7.8.7 Other Markings X
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7.8.7.1 Other markings such as event identification, shadowed lane numbers, school logos or sprint race markings for running in back straight or reverse direction may be added to enhance the usability and appearance of the track.
X
7.8.8 Colors X
7.8.8.1 Individual governing bodies have recommended or required colors for each event. School colors may be incorporated into the track for lane numbers or lines where governing bodies allow.
X
7.8.9 Paint Application X
7.8.9.1 Paint may be rolled, brushed or sprayed with either conventional or airless stripping machine.
X
7.8.10 Paint Coats - The manufacturer's recommendations for paint and coverage should be followed. An excessive thickness of paint may cause cracking and curling.
X
7.8.11 Certification X
7.8.11.1 Depending on the governing body and the intended use of a particular facility, a certification of accuracy of calculations or markings by the track striper, a Certified Track Builder, a Professional Engineer or Registered Land Surveyor may be required.
X
7.8.12 Governing Bodies - AEPA Member determine the primary and potential uses of the facility. A current track and field rules book for the highest intended level of competition, should be used as rules, requirements and recommendations change from year to year.
X
7.9 Site Inspection and Investigation X
7.9.1 The ultimate performance and lifecycle of any running/jogging track depends on a significant degree on the subsoil and drainage conditions of the site. The stability of the subsoil also has a direct influence on the ability to properly prepare the site, construct the track and to maintain design grades under the deformations generated by the construction equipment itself. Such site condition as: expansive soils or plastic soils and use of base course materials consisting of these types of soils can create problems and frost action is exaggerated where frost susceptible materials exist with moisture available to generate frost heave. It is, therefore, necessary for Offeror in cooperation with the Member in ensure that a complete and accurate site inspection/investigation has been performed to identify soil conditions existing at the site and to take these conditions into account in designing the project. Site preparation, including stripping, placement of backfill and base construction must be properly performed to minimize the risk of problems due to subsoil and subgrade conditions.
X
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7.9.2 The scope of and level of any site inspection/investigation must be flexible and dependent on the nature of the conditions that exist at a particular site, and the degree of risk that the Member is willing to acknowledge, accept and take regarding adverse effects of subsoil conditions. During the design and development of the project, the Offeror will advise and consult with the Member to determine the scope and level of site inspection required. Obviously, the more serious site conditions that require an adequate study includes, but is not limited to:
X
7.9.2.1 The existence of peat or other organic soils at the site; X
7.9.2.1.1 Uncontrolled fill materials or waste materials at the site; X
7.9.2.1.2 Expansive soils at the site; X
7.9.2.1.3 High ground water conditions or surface water retention areas (low area flooding); or
X
7.9.2.1.4 Special usage of the facility for a variety of activities. X
7.9.3 Soils should be classified, in general, in accordance with the visual manual method of identification of soils, utilizing the Unified Soil Classification System (ASTM Methods D 2488 "Description of Soil Visual Manual Procedure", and D 2487 "Classification of Soils for Engineering Purposes"). It is not intended, however, that a rigorous use of these methods be required, but only use of terminology that will describe the soil conditions in terms of soil types using the Unified Soil Classification symbols, such as CL, CH, etc.
X
7.9.4 Data obtained from this investigation should be prepared and submitted as part of the project record documents for later reference, if necessary, or for review by a qualified engineer if an evaluation is decided upon by the Member and/or the Contractor.
X
7.9.5 Once a site study has been completed, identified risks require the Member and the Offeror to make a joint decision as to the level site preparation is required before the project is started. This is done so that an adequate site can be available for the tract construction, and in the event of any problems developing because of subgrade conditions, the responsibility can be clearly allocated between the AEPA Member and the Contractor.
X
7.9.6 Where any site and/or soil conditions are suspect for problems, such as existence of fill material, organic material or expansive soils are known or believed to exist at a site, then it is required that the Member and Contractor shall review, assess and discuss the pros and cons of the condition and the Member may choose to retain a geotechnical consultant to obtain samples in accordance with ASTM Method D 1587 in cohesive soils, and D 1586 in granular soils, with borings to a depth of at least 10 ft. or into firm materials. This should be followed by appropriate unconfined compressions tests, water content and density determinations on cohesive soils, and penetration resistances and blows per foot for granular soils, plus water level determinations, again with borings at each corner of the tennis court or at each quadrant of the track and intermediate borings not greater than 200 ft. apart outside the pavement area.
X
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7.9.7 All information and communications relating to the site inspection and investigation shall become part of the projects documentation.
X
7.1 Site Preparation, Earthwork, Drainage and Sub-base Construction X
7.10.1 For new track construction, the site must be properly prepared in accordance with project design documents that were prepared based on the site inspection and investigation which addressed:
X
7.10.1.1 Site grade and elevations; X
7.10.1.2 The sub soil, topsoil and drainage conditions; X
7.10.1.3 The existence of peat or other organic soils at the site; X
7.10.1.4 Uncontrolled fill materials or waste materials at the site; X
7.10.1.5 Expansive soils at the site; X
7.10.1.6 High ground water conditions or surface water retention areas (low area flooding).
X
7.10.2 If an existing athletic facility, type of facility, how is it being utilized and by whom.
X
7.11 Stripping and excavation - Unless otherwise specified, topsoil and other unsuitable materials at the site, and to a minimum distance of 5' beyond the surfaced area, should be removed in such a manner as to minimize disturbance of the remaining subgrade soils, and to facilitate placement of embankment materials and/or base course materials. Topsoil should be stored at the site and reused for landscaping at the completion of construction.
X
7.12 Subsurface Drainage X
7.12.1 Where surface inlets are provided on or near the courts or track, drain lines to carry the water to appropriate discharge channels should be in accordance with local building codes and regulations.
X
7.12.2 Where it is necessary or otherwise decided to lower the water table at the site, French drains (permeable, properly graded, gravel-filled trenches), geocomposites or perforated drain lines surrounded with a stone material, should be utilized, discharging to appropriate channels. Non-woven geotextile fabric may be used, depending on the stone materials available.
X
7.12.3 Backfill of all trenches should be granular material, placed in layers not to exceed 6" in thickness, compacted with appropriate compaction equipment to 95% of the maximum density determined by ASTM Method D 698 (Modified Proctor). This compaction is necessary to minimize the risk of subsequent settlement of the surface over the trench.
X
7.12.4 When trenching or drain tile is used under existing permanent pavement, it is recommended that this area be compacted to 100% of the maximum density determined by ASTM Method D 698 (Modified Proctor). This method will reduce the amount of settlement that may occur in these trenches, which will reflect on the final surface.
X
7.13 Sub-base Embankment X
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7.13.1 Embankment is fill material necessary to raise the grade at the site, after removal of unsuitable materials identified during the site investigation, to provide the surface on which to place the base course for the running track.
X
7.13.2 While well-graded granular soil is preferred for embankment fill, normally locally available soil is used for economic reasons. The material should be free of organic or expansive material, and of particles greater than 1 1/2" in dimension. It should be placed in lifts not to exceed 6" in thickness and compacted to 95% of the maximum density determined by ASTM Method D 698 (Modified Proctor). The water content of the fill should be reduced by aeration or increased by adding water, as necessary to achieve the required compaction.
X
7.13.3 Where the natural soil at the bottom of the sub-base course is stable, as evidenced by stability under construction equipment, hand auger or other exploration, base course materials can be placed on this soil. Soft clay and plastic soils should be appropriately stabilized.
X
7.14 Vegetation control or vegetation regrowth prevention - Soil conditions vary from area to area. Where problems exist, it may be necessary to sterilize the soil. The Offeror should during project development or construction recognize and determine when soil sterilization is necessary and offer methods and options to the Member for rectifying problems caused by vegetation.
X
7.15 Concrete Curbs and Drains X
7.15.1 Furnish all required labor, materials, equipment implements, parts and supplies necessary to prepare the site and install curbs and drainage systems.
X
7.15.2 Cement shall conform to one of the standard specifications for Portland Cements, ASTM C-150, pr specification for blending hydraulic cements, ASTM C-595, excluding slag cements types S and SA.
X
7.15.3 Air entrainment by total volume of concrete shall be: 4 - 6% for 1 1/2" maximum size coarse aggregate; 5 - 7% for 3/4" or 1" maximum size coarse aggregate; 6 1/2" - 8 1/2" for 3/8" or 1/2" maximum size coarse; 1/2 - 8 1/2% for 3/8" or 1/2" maximum size coarse aggregate.
X
7.15.4 Aggregate shall conform to standard specifications for concrete aggregates ASTM C-33. For concrete work that is 5" thick, the normal size of the coarse aggregate shall not exceed 1 ½". For concrete work that is 4" thick, the normal size of the coarse aggregate shall not be greater than 1".
X
7.15.5 Concrete work shall be 5" thick if the location of the structure is such that it will be subject to more than three freeze-thaw cycles annually. If the location is such that not more than three freeze-thaw cycles occur annually, concrete work may be 4" thick.
X
7.15.6 Steel reinforcement bars shall conform to standard specifications for deformed and plain billet-steel bard for concrete reinforcement ASTM A-615, grade 60 or 40.
X
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7.15.7 For concrete work that is 5" thick, the recommended bars shall be No. 5 size in both directions at 12" on center. For concrete work that is 4" thick, the recommended bars shall be No. 5 size in both directions at 15" on center. Bars shall be accurately positioned at mid-depth, terminating 2" away from edges and joints, and shall be adequately supported by chairs with sand plates provided to prevent bar supports from sinking into the sub-base.
X
7.15.8 Bars shall be lapped 18" and also be securely tied or otherwise secured so that there is no possibility of displacement when concrete is placed. Reinforcement at time of concrete placement shall be free of loose, flaky rust and other coatings or films that could interfere with bonding to the concrete.
X
7.15.9 The concrete shall have a compressive strength of not less than 3,000 psi at the 29th day after casting. The minimum cement content for finish ability shall not be less than 470 lb. per cubic yard for 1 1/2" maximum size coarse aggregate or 520 lb. for 1". In freeze-thaw environments, the minimum cement content shall not be less than 560 lb. per cubic yard. The slump shall not be more than 4". Ready-mixed concrete shall be mixed and delivered in accordance with ASTM C-94, specification for ready-mixed concrete.
X
7.15.10 Concrete shall be spread, consolidated, screened, bull-floated and finished in accordance with Section 7.2 of ACT Standard 302, recommended practice for concrete floor and slab construction.
X
7.15.11 When concrete is sufficiently set to withstand foot pressure with only about 1/4" indentation and the water sheen has left the surface, the slab shall be uniformly finished by power floating and trawling. The final finish texture shall have at least a medium broom finish to improve the mechanical bond to the surface.
X
7.15.12 Immediately after brooming, the concrete shall be kept continuously moist for seven (7) days by covering with polyethylene film or waterproof curing paper. Curing compounds will not be used. Curing time shall be in accordance with surfacing systems manufacturer's recommendations, but in not less than 28 days.
X
7.15.13 The concrete surface shall be finished so that the tolerance shall not vary more than 1/4" in 10' when measured with a 10' straightedge in all directions.
X
7.15.14 Perimeter edging shall be constructed using one of the following methods: pavement extension, flush curb, permanent raised curb or removable raised curb.
X
7.15.15 A pavement extension shall have an aggregate base course constructed so that the inside perimeter is parallel to and 28" inside of the track measure line, and 16" from the outer side of the outside lane line.
X
7.15.16 A pavement extension shall have an asphaltic concrete course(s) constructed so that the inside perimeter is parallel to and 22" inside of the track measure line, and it's outside perimeter parallel to and 10" from the outer side of the outside lane line.
X
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7.15.17 A pavement extension shall have a synthetic surfacing course constructed so that the inside perimeter is parallel to and 16" inside of the track measure line, and it's outside perimeter parallel to and 4" from the outer side of the outside lane line.
X
7.15.18 A flush curb shall be solid, installed for both the inside and outside (or inside only) perimeter of the trade. The curb shall be flush with either the asphalt or the top elevation of the synthetic surface for an impermeable installation. For a permeable installation, the curb is to be flush with the final elevation of the asphalt. The distance between the track side of the inside curb and the measure line shall be less than the distance between the track side of the outside curb and the line shall not be less than 4".
X
7.15.19 A permanent raised curb shall be solid and be installed to provide a curb for both the outside and inside perimeter of the track. The distance between the trackside of the curb and the track measure line shall be 30 cm. The distance between the trackside of the outside curb and the lane line shall not be less than 4".
X
7.15.20 Removable raised curbs shall be available in various materials, including, but not limited to: aluminum, polyurethane or aluminum with a firm rubber top. These removable curbs shall sit on pads that allow movement of water from the track surface to the drain channel or infield.
X
7.15.21 Drainage systems shall utilize a perimeter drain tile system, catch basin, curb and gutter drainage system, permeable system or continuous trench drains.
X
7.16 Hot mix asphaltic concrete base course and leveling course for running tracks, athletic court, or field events areas.
X
7.16.1 The components and methods utilized to install and complete the base and leveling course must be in accordance with the individual project's design documents. The success of any installation of base or leveling course is dependent upon a properly constructed sub-base and a good drainage system.
X
7.16.2 Minimum recommended base course thickness shall be based on the specifications established by the geotechnical engineer.
X
7.16.3 Minimum recommended leveling course thickness shall be based on the specifications established by the geotechnical engineer
X
7.16.4 Quality Assurance - For installation of running track and field event hot mix asphalt, utilize only thorough, highly-trained personnel experienced and familiar with running track and field event paving and with the tolerances required by the appropriate federal, state and local governing bodies.
X
7.16.5 Asphalt - The proper type of asphalt used will vary from state to state if using the standard norm of the Department of Transportation (DOT) or State Highway Department standards. The following is a typical mix design for example only:
X
7.16.6 Thickness: No less than 1". X
7.16.7 Liquid Asphalt or Bitumen: 5.5% by weight (+/- 0.5%). X
7.16.8 Asphalt Penetration or Type: 85 - 100 penetration. X
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7.16.9 Cure Time: Follow coating manufacturer's recommendations (typically 14 to 30 days), depending on the time of year and rainfall. Asphalt will cure more slowly in cooler temperatures, i.e. the Spring and Fall.
X
7.16.10 Aggregate Type: Crushed stone, gravel, shale, limestone, etc. Foreign materials, i.e., pyrite, clay, ferrous compounds, dirt and organic material are not acceptable.
X
Aggregate Sieve Analysis % Passing X
1/2" 100% X
3/8" 70 - 80% X
1/4" 60 - 80% X
No. 4 60 - 70% X
No. 8 40 - 60% X
No. 12 30 - 50% X
No. 16 20 - 40% X
No. 30 20 - 30% X
No. 50 10 - 20% X
No. 100 2 - 6% X
No. 200 60 - 70% X
Washed 0 - 2% X
7.16.11 Plant, equipment, machines, and tools - The bituminous plant should be capable of producing the quantities of bituminous mixtures required. Hauling, placing and compaction equipment should be provided in sufficient numbers that the placement capacity at the site is equal to, or greater than, the planned plant output to the site.
X
7.16.12 Paver - All pavements, where applicable, should be placed with a self-propelled asphalt paver. The screed width should be adjustable to no less than eight feet (8'). Only hydraulic screed and auger extensions to achieve widths greater than that of the main screed are acceptable.
X
7.16.13 Compaction Equipment - Compaction equipment should consist of steel drum asphalt rollers of sufficient size and width to properly compact the hot mix asphalt to the required compaction, while providing a smooth surface free from bumps, marks and creases.
X
7.16.14 Transportation Equipment - Transportation of the hot mix asphalt to the site from the asphalt plant should be in trucks having tight, clean, smooth beds lightly coated with an approved releasing agent. Each load should be covered with a canvas or other approved material of ample size to protect the mixture from cooling.
X
7.16.15 Straightedge - The contractor should furnish and maintain at the site, in good working condition, one 10' straightedge for each paver.
X
7.17 Placement and Compaction X
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7.17.1 Hot mix asphalt courses should only be placed on the specified base, free from contamination and with no free water on the surface.
X
7.17.2 Paving operations should not be scheduled unless there is ample time to place, compact and finish roll the hot mix asphalt.
X
7.17.3 The range of temperatures for mixtures to be dumped into the paver should be determined by State Department of Transportation guidelines, and in no case should they be cooler than 225 degrees F.
X
7.17.4 Paving operations should provide a mat that is smooth, dense and of the proper thickness, slope and plane.
X
7.17.5 The leveling course should be placed such that the longitudinal joints of the leveling course are offset from that of the base course. Transverse joints should be offset a minimum of 24".
X
7.17.6 In placing each succeeding pass after the initial one, the screed of the paver should be set so that it overlaps the preceding pass by 2" and be sufficiently high so that when compacted, a smooth joint is produced. Prior to pinching the joint, the excess material should be pushed onto the edge of the new pass with a lute. Excess material should be removed and wasted.
X
7.17.7 Breakdown rolling should begin as soon after the placement as the mixture will allow without undue displacement. No delays in rolling should be permitted. After breakdown rolling has been completed, preliminary testing of grade, slope and planarity should be done. Any deficiencies should be immediately corrected in accordance with "Acceptability of Work." When the paving contractor is assured that all tolerances are being met, finish rolling should begin.
X
7.17.8 Deficient areas within the base course should be corrected by saw cutting or milling high spots and/or by truing and leveling low spots.
X
7.17.9 Deficient areas in the leveling course should be corrected by saw cutting or milling to a depth equal to the thickness of the mat. Tack coat should be applied to all edges and the pavement should be replaced. Skin patching of the leveling course should only be done with materials acceptable to the track surfacing contractor.
X
7.18 Acceptance of work - Upon completion of the work and/or prior to installing the track surface system, the base and leveling course should be inspected for:
X
7.18.1 Grade conformance tests should be conducted on both the base course and the leveling course. The entire surface should have positive drainage.
X
7.18.2 Planarity - After completion of the finish rolling operations on each course, the compacted surface should be tested with a 10' straightedge. Measurements should be made perpendicular to and across all mats at a distance not to exceed 25'. The track surfacing contractor and/or Member's representative should be present when these measurements are made. The maximum allowable planarity deviation within a pass should be 1/8" in 10' when measured in any direction.
X
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7.19 Quality Assurance X
7.19.1 The work shall conform to the USTC & ASBA's standards for track construction. The track surface will be applied by a licensed firm, which has been installing the material for the past five (5) years.
X
7.19.2 Installing foreman must have at least five (5) years experience installing this type of system.
X
7.19.3 Guarantee - The Contractor is to provide a written guarantee against defective materials or faulty workmanship, excessive color change, excessive wear, and any other feature which is not deemed ordinary wear on running tracks and court surfaces for a period of not less than five (5) years after acceptance by AEPA Member.
X
7.2 Job Conditions - Surfacing shall not be done within 24 hours of freezing, rain or gusting winds are forecasted. While surfacing and striping are being done, sprinkler systems must be shut off or controlled so that no water falls on the track or event area surfaces. Other tradesmen, school district personnel and students must stay off the wet or curing surfaces.
X
7.21 Delaminating Surfaces - Any surfaces not adhered to the concrete or asphalt substrate need to be removed. If only a few small areas are involved, they can be patched with an appropriate compatible material. If large sections are loose and adjacent areas can be easily pulled loose, the entire surface should be removed.
X
7.22 Striping - AEPA Member personnel will be consulted to determine the levels of competition and the governing organization's (NMAA/NCAA) standards must be utilized for the placement of the finish line(s), events to be run, location of lane numbers and any other painted markings. Markings shall conform to NFSHSA, NCAA or AAU regulations. The paint shall be per surface manufacturer recommendations.. The Offeror will supply a scaled drawing of all markings. All calculations, measurements and markings will be done by qualified and experienced specialists with a minimum of three (3) years of experience in this field.
X
7.23 Post-Tension Concrete Tennis or Basketball Courts X
7.23.1 Furnish all required labor, materials, equipment, implements, parts and supplies necessary for, or appurtenant to, the site preparation, grading and installation for tennis or basketball courts.
X
7.23.2 Guarantee - The installation contractor shall guarantee the work against defective material or faulty workmanship for a period of one (1) year from the date of completion.
X
7.23.3 Quality Assurance - The work shall conform to the USTC and TBA's standards for tennis and/or basketball court construction. The court will be applied by a licensed firm, which has been installing the material for the past five (5) years.
X
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7.23.4 Site preparation may include removing trees, bushes and a minimum of 4" of topsoil if existing conditions require such action. The area will be graded to the required depth to accommodate the base and concrete thickness and provide a uniform 1% slope at ±.1' in one plane. All fills will be placed in 6" layers and will be compacted to 90% standard density at optimum moisture. The contractor will alert the Member of any "soft spots" or structures that could affect the stability of the slab. The site preparation will be done so as to provide positive drainage away from the play courts and, if needed, to provide intercepting swales to prevent drainage on to the court. The final grade base material shall be placed with automatic laser-regulated equipment capable of providing a true accurate plane to a 1/4". The depth of the fine grade base material shall be sufficient to develop 1/4" accuracy.
X
7.23.5 Site preparation materials may consist of the existing sub-grade material unless a soil engineer specifies import fill. The fine grade base materials shall be an approved compactable, free-draining base material (sand, fine gravel, etc.).
X
7.23.6 Vegetation control or vegetation regrowth prevention - Soil conditions vary from area to area. Where problems exist, it may be necessary to sterilize the soil. The Offeror should, during project development or construction, recognize and determine when soil sterilization is necessary and offer methods and options to the Member for rectifying problems caused by vegetation.
X
7.23.7 Court paving materials specifications may include: X
7.23.7.1 Post-tensioning and anchorages will conform to the "PTI Guide Specifications for Post-Tensioning Materials". The tensioning strands shall consist of 1/2" diameter, 7-wire, stress-relieved strands, having a guaranteed ultimate tensile strength of 270,000 psi. Strands shall conform to ASTM-416. Cables shall be fabricated to proper length for each slab, coated with a permanent rust preventative lubricant and encased in slippage sheathing. All breaks in the sheathing shall be repaired with tape prior to concrete placement. A maximum of 6" exposed strands is permitted at the dead-end anchor.
X
7.23.7.2 The concrete shall have a compressive strength of not less than 3,500 psi after 28 days. Ready-mixed concrete shall be mixed and delivered according to ASTM C-94 specifications for ready-mixed concrete.
X
7.23.7.3 Forms shall be accurately set to the lines and to +/- 1/4" of finish grade indicated on drawings and be securely staked to prevent settlement or movement during placement of concrete. Forms shall remain until concrete has taken final set.
X
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7.23.7.4 Tensioning cables and anchors shall be supported on chains and loosely tied 2" high at all intersections to prevent vertical and horizontal movement during concrete placement. Strands shall be placed with no greater spacing than 2'6" wide on lengths over 100' and 3'4 "on lengths under 100'. After forms are removed and the concrete has set to a minimum of 2,000 psi, the tensioning procedure may be applied approximately one week later. Each tendon may initially be tensioned to a maximum of 80% ultimate breaking strength and anchored at a minimum of 70% ultimate breaking strength.
X
Ultimate Breaking Strength
80% 70% X
41,300 33,000 28,900 X
7.23.7.5 The cable ends shall be cut off and cone holes grouted flush with edge of slab. Grout shall be non-shrink grout.
X
7.23.7.6 Joints - Between each court or at net line ±1', there shall be a keyed construction joint.
X
7.23.7.7 Placing - A full court shall be placed in one continuous operation without intervening joints of any kind. The 4" thick slab will be placed with a 60' mechanical screed capable of providing a surface true to 3/8" at a 1% slope. Note: Finish surface shall not have a water-holding area greater than 1/8" deep. This is to be determined by flooding the court with water, allowing it to drain for one hour on a 70° or warmer day.
X
7.23.7.8 Curing - Immediately after finishing, the concrete shall be kept moist by covering with polyethylene, by sprinkling, by pounding or by curing compound (must be compatible with acrylic tennis surfacing material).
X
7.23.8 Court Surfacing Materials X
7.23.8.1 Playing Lines - Playing lines shall be painted per manufacturer specifications.
X
7.23.8.2 Surface will be installed per surface manufacturer specifications. X
7.23.9 Court Surfacing Surface Preparation - Prior to the surfacing application, the concrete will be thoroughly cleaned by using a power broom or power washer. Subsequent to the cleaning of the court surface, a prime coat will be broom applied. Pools of the prime coat will be swept out to eliminate black "fatty" spots.
X
7.23.9.1 1/2" Emulsion Lift - The mixture will be agitated in a mixer capable of providing a consistent and homogeneous solution of the binder and aggregates. The mixture will be screed over the entire surface using 1/2" rods; other methods of placing will not be allowed. After the lift has cured (approximately one week), it will be compacted by a vibratory roller or with a static roller weighing 3,000 lbs. The resulting surface shall be free of depressions more than 1/8" deep. Any areas holding more water than 1/8" in depth will be filled with the leveling course.
X
7.23.9.2 Leveling Course(s) - Once the 1/2" lift has been rolled, the contractor shall flood courts, mark and fill all water-holding depressions with the leveling course mixture.
X
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7.23.9.2.1 Any remaining water-holding depressions greater than 1/8" deep will be marked and filled with the leveling mix, again using a 14' straightedge squeegee. Water holding areas will be determined by flooding the court with water and allowing it to drain for one hour on a 70° or warmer day. The court will be reflooded and refilled as necessary. Note: Water holding areas can only be removed where positive and adequate slope exists.
X
7.23.9.3 Finishing Courses - Contractor shall blend in water-holding patches and surface defects and provide for a wearing base with the finishing courses.
X
7.23.9.4 After each finishing application has been cured, any ridges will be removed with scrapers, and the application will be compacted with a minimum 3,000 lb. static roller. One finishing course will be applied and additional application will be made as necessary to provide a uniform, ridge-free surface.
X
7.24 Hot Mix Asphalt Tennis and/or Basketball Courts X
7.24.1 Guarantee - The contractor shall guarantee the work against defective material or faulty workmanship for a period of one (1) year from the date of completion.
X
7.24.2 Quality Assurance - The work shall conform to the USTC and TBA's standards for tennis and/or basketball court construction. The court will be applied by a licensed firm, which has been installing the material for the past five (5) years.
X
7.24.3 The following descriptions are given as a general guide and standard of the surfaces being requested. The Offeror is encouraged to propose a complete line of tennis/basketball court surfaces that meet or exceed the listed surfaces, the standards and specifications established by the National Federation of State High School Association, American Sports Builders Association, state and local Uniform Building Codes.
X
7.24.4 Submittals X
7.24.4.1 The Offeror must provide written documentation for: X
7.24.4.2 Each type of tennis or basketball surface offered. X
7.24.4.3 The installers certification by the surface manufacturer to install, maintain and/or repair the proposed court system.
X
7.24.4.4 For the court surfaces offered, provide written documentation of its proven record for performance and durability by listing 5 installations that are a minimum of five (5) years old that contain the same court surface materials and use the same method of installation showing locations, installation dates and owner representatives contact information. Courts listed are to have been provided by the Offeror making a response to this solicitation.
X
7.25 Hot mix asphaltic base course and leveling course for basketball and tennis courts.
X
7.25.1 The components and methods utilized to install and complete the base and leveling course must be in accordance with the individual project's design documents. The success of any installation of base or leveling course is dependent upon a properly constructed sub-base and a good drainage system.
X
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7.25.1.1 Minimum recommended base course thickness shall be based on the specifications established by the geotechnical engineer.
X
7.25.1.2 Minimum recommended leveling course thickness shall be based on the specifications established by the geotechnical engineer.
X
7.25.2 Site preparation may include removing trees, bushes and a minimum of 4" of topsoil if existing conditions require such action. The area will be graded to the required depth to accommodate the base thickness and provide a uniform 1% slope at ±.1' in one plane. The site preparation will be done so as to provide positive drainage away from the play courts and, if needed, to provide intercepting swales to prevent drainage on to the court. The final grade base material shall be placed with automatic laser-regulated equipment capable of providing a true accurate plane to a 1/4". The depth of the fine grade base material shall be sufficient to develop a 1/4" accuracy.
X
7.25.3 Site preparation materials may consist of the existing sub-grade material unless a soil engineer specifies import fill. The fine grade base materials shall be an approved compactable, free-draining base material (sand, fine gravel, etc.).
X
7.25.4 Asphalt - The proper type of asphalt used will vary from state to state if using the standard norm of the Department of Transportation (DOT) or State Highway Department standards. The following is a typical mix design for example only:
X
7.25.4.1 Thickness: No less than 1". X
7.25.4.2 Liquid Asphalt or Bitumen: 5.5% by weight (+/- 0.5%). X
7.25.4.3 Asphalt Penetration or Type: 85 - 100 penetration. X
7.25.4.4 Cure Time: Follow coating manufacturer's recommendations (typically 14 to 30 days), depending on the time of year and rainfall. Asphalt will cure more slowly in cooler temperatures, i.e. the Spring and Fall.
X
7.25.4.5 Aggregate Type: Crushed stone, gravel, shale, limestone, etc. Foreign materials, i.e., pyrite, clay, ferrous compounds, dirt and organic material are not acceptable.
X
Aggregate Sieve Analysis % Passing X
1/2" 100% X
3/8" 70 - 80% X
1/4" 60 - 80% X
No. 4 60 - 70% X
No. 8 40 - 60% X
No. 12 30 - 50% X
No. 16 20 - 40% X
No. 30 20 - 30% X
No. 50 10 - 20% X
No. 100 2 - 6% X
No. 200 60 - 70% X
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Washed 0 - 2% X
7.25.4.6 Plant, equipment, machines, and tools - The bituminous plant should be capable of producing the quantities of bituminous mixtures required. Hauling, placing and compaction equipment should be provided in sufficient numbers that the placement capacity at the site is equal to, or greater than, the planned plant output to the site.
X
7.25.4.7 Paver - All pavements, where applicable, should be placed with a self-propelled asphalt paver. The screed width should be adjustable to no less than eight feet (8'). Only hydraulic screed and auger extensions to achieve widths greater than that of the main screed are acceptable.
X
7.25.4.8 Compaction Equipment - Compaction equipment should consist of steel drum asphalt rollers of sufficient size and width to properly compact the hot mix asphalt to the required compaction, while providing a smooth surface free from bumps, marks and creases.
X
7.25.4.9 Transportation Equipment - Transportation of the hot mix asphalt to the site from the asphalt plant should be in trucks having tight, clean, smooth beds lightly coated with an approved releasing agent. Each load should be covered with a canvas or other approved material of ample size to protect the mixture from cooling.
X
7.25.4.10 Straightedge - The contractor should furnish and maintain at the site, in good working condition, one 10' straightedge for each paver.
X
7.25.5 Placement and Compaction X
7.25.5.1 Hot mix asphalt courses should only be placed on the specified base, free from contamination and with no free water on the surface.
X
7.25.5.2 Paving operations should not be scheduled unless there is ample time to place, compact and finish roll the hot mix asphalt.
X
7.25.5.3 The range of temperatures for mixtures to be dumped into the paver should be determined by State Department of Transportation guidelines, and in no case should they be cooler than 225 degrees F.
X
7.25.5.4 Paving operations should provide a mat that is smooth, dense and of the proper thickness, slope and plane.
X
7.25.5.5 The leveling course should be placed such that the longitudinal joints of the leveling course are offset from that of the base course. Transverse joints should be offset a minimum of 24".
X
7.25.5.6 In placing each succeeding pass after the initial one, the screed of the paver should be set so that it overlaps the preceding pass by 2" and be sufficiently high so that when compacted, a smooth joint is produced. Prior to pinching the joint, the excess material should be pushed onto the edge of the new pass with a lute. Excess material should be removed and wasted.
X
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7.25.5.7 Breakdown rolling should begin as soon after the placement as the mixture will allow without undue displacement. No delays in rolling should be permitted. After breakdown rolling has been completed, preliminary testing of grade, slope and planarity should be done. Any deficiencies should be immediately corrected in accordance with "Acceptability of Work." When the paving Contractor is assured that all tolerances are being met, finish rolling should begin.
X
7.25.5.8 Deficient areas within the base course should be corrected by saw cutting or milling high spots and/or by truing and leveling low spots.
X
7.25.5.9 Deficient areas in the leveling course should be corrected by saw cutting or milling to a depth equal to the thickness of the mat. Tack coat should be applied to all edges and the pavement should be replaced. Skin patching of the leveling course should only be done with materials acceptable to the track surfacing contractor.
X
7.25.5.10 Leveling of the asphalt before installing the final surface is the same as for post tension concrete surfaces or per the surface manufacturer requirements..
X
7.25.6 Acceptance of work - Upon completion of the work and/or prior to installing the surface system, the base and leveling course should be inspected for:
X
7.25.6.1 Grade conformance tests should be conducted on both the base course and the leveling course. The entire surface should have positive drainage.
X
7.25.6.2 Planarity - After completion of the finish rolling operations on each course, the compacted surface should be tested with a 10' straightedge. Measurements should be made perpendicular to and across all mats at a distance not to exceed 25'. The track surfacing contractor and/or Member's representative should be present when these measurements are made. The maximum allowable planarity deviation within a pass should be 1/8" in 10' when measured in any direction.
X
7.26 Quality Assurance X
7.26.1 The work shall conform to the USTC & ASBA's standards for court construction. The court surface will be applied by a licensed firm, which has been installing the material for the past five (5) years.
X
7.26.2 Installing foreman must have at least five (5) years’ experience installing this type of system.
X
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7.26.3 Site preparation may include removing trees, bushes and a minimum of 4" of topsoil if existing conditions require such action. The area will be graded to the required depth to accommodate the base and concrete thickness and provide a uniform 1% slope at ±.1' in one plane. All fills will be placed in 6" layers and will be compacted to 90% standard density at optimum moisture. The contractor will alert the Member of any "soft spots" or structures that could affect the stability of the slab. The site preparation will be done so as to provide positive drainage away from the play courts and, if needed, to provide intercepting swales to prevent drainage on to the court. The final grade base material shall be placed with automatic laser-regulated equipment capable of providing a true accurate plane to a 1/4". The depth of the fine grade base material shall be sufficient to develop a 1/4" accuracy.
X
7.26.4 Site preparation materials may consist of the existing sub-grade material unless a soil engineer specifies import fill. The fine grade base materials shall be an approved compactable, free-draining base material (sand, fine gravel, etc.).
X
7.27 Guarantee - The Contractor is to provide a written guarantee against defective materials or faulty workmanship, excessive color change, excessive wear, and any other feature which is not deemed ordinary wear of an all-weather tennis/basketball court for a period of not less than five (5) years.
X
7.28 Tennis Court Accessory Materials to include but not limited to: X
7.28.1 Net Posts and Sleeves Equipment X
7.28.2 Center Strap Anchor X
7.28.3 Tennis Nets X
7.28.4 Wind Screens X
7.28.5 Backdrop Curtains X
7.28.6 Court Dividers X
7.28.7 Crack repair X
7.29 Basketball Court Accessory Materials to include but not limited to: X
7.29.1 Goal Post X
7.29.2 Backboards X
7.29.3 Mesh nets X
7.29.4 Hoop rings 18" X
7.29.5 Crack repair X
7.3 Tracks Accessory Materials to include but not limited to: X
7.30.1 Cages for Discus, Hammer, and Shot Put X
7.30.2 Hammer and Discus Conversion X
7.30.3 Discus Rings X
7.30.4 Long and Triple Jump Take-off Systems X
7.30.5 Pole Vault Boxes and Pits X
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7.30.6 Long Jump Sandpits and Traps X
7.30.7 Shot Put Toe Boards X
7.30.8 Shot Put Rings X
7.30.9 Throws Circles X
7.30.10 Running Track Covers X
7.30.11 Re-Striping Existing Running Tracks X
7.30.12 Take-Off Boards X
7.30.13 Water Jump Hurdle With Sleeves X
7.30.14 Water Jump Cover X
7.30.15 Removable Track Curbing X
7.30.16 Sand - All sand for the long/triple jump sand pits shall be clean, washed, white sand, containing not more than five percent (5%) clay and shall be free of trash, organic matter, and rock. Installed sand shall meet all specifications of the IAAF - washed river sand, 0 to 2mm graining, no organic components, max 5% of weight up to 0.2mm. Prior to installation, the Offeror shall provide the Member with a one (1) gallon sample for approval.
X
7.31 Replacement of grass or re-seeding of natural grass as part of the track or court project.
X
7.32 Warranty X
7.32.1 All warranties will begin on the date of final acceptance by the Member. The minimum warranty for systems offered is five (5) years non-prorated warranty.
X
7.32.2 All products and services offered must be guaranteed free from defects and faulty workmanship for a minimum period of One (1) year after final acceptance by the Member. The Offeror agrees to fix, resolve, and make right any claims at no additional cost to AEPA Member during this period.
X
7.32.3 Contractor will pay for any failure to conform or for any defect. In addition, Contractor will fix any damage to Member/Participating Entity-controlled, real or personal property when that damage is the result of Contractor's failure to conform to contract requirements or any defect in equipment, material, workmanship, or design furnished or in compliance with federal, state and local laws, codes, regulations and standards. Contractor's warranty with respect to work done, repaired or replaced under these conditions will run for One (1) year from the date of repair or replacement or completion.
X
7.32.4 If Contractor fails to remedy any failure, defect or damage within a reasonable time after receipt of notice, the Member/Participating Entity will have the right to replace, repair or otherwise remedy the failure, defect or damage at the Contractor's expense in accordance with laws of the AEPA Member State.
X
Taxpayer Name: FIELDTURF USA INC.
Trade Name:
Address: 175 N. INDUSTRIAL BLVD
CALHOUN, GA 30701
Certificate Number: 0933885
Effective Date: September 06, 2002
Date of Issuance: July 23, 2015
For Office Use Only:
20150723114520778
N.J. Department of Treasury - Division of Revenue, On-Line Inquiry file:///O:/(04)CO~1/ACTIVE~1/AEPA01~3/AEPAIF~2/FIELDT~2/FIE...
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