full article - Momentum Sport Fitness

2FWREHU
7+(
›˜œœ’ȱ˜ž›—Š•
© All rights reserved 2002
,17+,6,668(
PHVV \RX XS
)($785($57,&/(
›˜œœ’Ȃœȱ‘›ŽŽȱŠ—Š›œȱ˜ȱ’—Žœœ
’Œ”—ŽœœǰȱŽ••—ŽœœǰȱŠ—ȱ’—ŽœœȱŠœȱŽŠœž›Žœȱ˜ȱ
ŽŠ•‘
Ž›˜‹’ŒœȱŠ—ȱ—ŠŽ›˜‹’Œœ
¢–—Šœ’ŒœǰȱŽ’‘•’Ğ’—ǰȱŠ—ȱ™›’—’—
ȱȱǵ
:KDW,V)LWQHVVDQG:KR,V)LW"
2XWVLGH 0DJD]LQH FURZQHG WULDWKOHWH 0DUN $OOHQ ³WKH ¿WWHVW PDQ RQ HDUWK´ KWWSZHERXWVLGHPDJFRPPDJD]LQH
IH¿WKWPO/HW¶VMXVWDVVXPHIRUDPRPHQWWKDWWKLVIDPRXVVL[WLPHZLQQHURIWKH,URQ0DQ7ULDWKORQLVWKH¿WWHVWRIWKH¿W
WKHQZKDWWLWOHGRZHEHVWRZRQWKHGHFDWKOHWH6LPRQ3RHOPDQKWWSZZZGHFDWKORQHHHQJOLVKOHJHQGVSRHOPDQKWPZKR
DOVRSRVVHVVHVLQFUHGLEOHHQGXUDQFHDQGVWDPLQD\HWFUXVKHV0U$OOHQLQDQ\FRPSDULVRQWKDWLQFOXGHVVWUHQJWKSRZHUVSHHGDQG
FRRUGLQDWLRQ"
3HUKDSV WKH GH¿QLWLRQ RI ¿WQHVV GRHVQ¶W LQFOXGH VWUHQJWK VSHHG SRZHU DQG FRRUGLQDWLRQ WKRXJK WKDW VHHPV UDWKHU RGG 0HU
ULDP:HEVWHU¶V&ROOHJLDWH'LFWLRQDU\GH¿QHV³¿WQHVV´DQGEHLQJ³¿W´DVWKHDELOLW\WRWUDQVPLWJHQHVDQGEHLQJKHDOWK\1RKHOS
WKHUH6HDUFKLQJWKH,QWHUQHWIRUDZRUNDEOHUHDVRQDEOHGH¿QLWLRQRI¿WQHVV\LHOGVGLVDSSRLQWLQJO\OLWWOHKWWSZZZJRRJOHFRP
VHDUFK"KO HQLH 87)RH 87)T ¿WQHVVGH¿QLWLRQ:RUVH\HWWKH16&$WKHPRVWUHVSHFWHGSXEOLVKHULQH[HUFLVHSK\VL
RORJ\LQWKHLUKLJKO\DXWKRULWDWLYH(VVHQWLDOVRI6WUHQJWK7UDLQLQJDQG&RQGLWLRQLQJGRHVQ¶WHYHQDWWHPSWDGH¿QLWLRQ
&URVV¿W¶V)LWQHVV
)RU&URVV)LWWKHVSHFWHURIFKDPSLRQLQJD¿WQHVVSURJUDPZLWKRXWFOHDUO\GH¿QLQJZKDWLWLVWKDWWKHSURJUDPGHOLYHUVFRPELQHV
HOHPHQWVRIIUDXGDQGIDUFH7KHYDFXXPRIJXLGLQJDXWKRULW\KDVWKHUHIRUHQHFHVVLWDWHGWKDW&URVV)LW¶VGLUHFWRUVSURYLGHWKHLURZQ
GH¿QLWLRQRI¿WQHVV7KDW¶VZKDWWKLVLVVXHRI&URVV)LW-RXUQDOLVDERXWRXU³¿WQHVV´
2XUSRQGHULQJVWXG\LQJGHEDWLQJDERXWDQG¿QDOO\GH¿QLQJ¿WQHVVKDYHSOD\HGDIRUPDWLYHUROHLQ&URVV)LW¶VVXFFHVVHV7KHNH\VWR
XQGHUVWDQGLQJWKHPHWKRGVDQGDFKLHYHPHQWVRI&URVV)LWDUHSHUIHFWO\LPEHG
GHGLQRXUYLHZRI¿WQHVVDQGEDVLFH[HUFLVHVFLHQFH
:RUOG&ODVV)LWQHVVLQ:RUGV
,WZLOOFRPHDVQRVXUSULVHWRPRVWRI\RXWKDWRXUYLHZRI¿WQHVVLVDFRQWUDU
LDQYLHZ7KHJHQHUDOSXEOLFERWKLQRSLQLRQDQGLQPHGLDKROGVHQGXUDQFH
DWKOHWHVDVH[HPSODUVRI¿WQHVV:HGRQRW2XULQFUHGXOLW\RQOHDUQLQJRI
2XWVLGH¶VDZDUGLQJDWULDWKOHWHWLWOHRI³¿WWHVWPDQRQHDUWK´EHFRPHVDSSDUHQW
LQOLJKWRI&URVV)LW¶VVWDQGDUGVIRUDVVHVVLQJDQGGH¿QLQJ¿WQHVV
&URVV)LWPDNHVXVHRIWKUHHGLIIHUHQWVWDQGDUGVRUPRGHOVIRUHYDOXDWLQJDQG
JXLGLQJ¿WQHVV&ROOHFWLYHO\WKHVHWKUHHVWDQGDUGVGH¿QHWKH&URVV)LWYLHZRI
¿WQHVV7KH¿UVWLVEDVHGRQWKHWHQJHQHUDOSK\VLFDOVNLOOVZLGHO\UHFRJQL]HG
E\H[HUFLVHSK\VLRORJLVWV7KHVHFRQGVWDQGDUGRUPRGHOLVEDVHGRQWKHSHU
IRUPDQFHRIDWKOHWLFWDVNVZKLOHWKHWKLUGLVEDVHGRQWKHHQHUJ\V\VWHPVWKDW
GULYHDOOKXPDQDFWLRQ
(DFKPRGHOLVFULWLFDOWRWKH&URVV)LWFRQFHSWDQGHDFKKDVGLVWLQFWXWLOLW\LQ
HYDOXDWLQJDQDWKOHWH¶VRYHUDOO¿WQHVVRUDVWUHQJWKDQGFRQGLWLRQLQJUHJLPHQ¶V
HI¿FDF\ %HIRUH H[SODLQLQJ LQ GHWDLO KRZ HDFK RI WKHVH WKUHH SHUVSHFWLYHV
ZRUNV LW ZDUUDQWV PHQWLRQ WKDW ZH DUH QRW DWWHPSWLQJ WR GHPRQVWUDWH RXU
SURJUDP¶V OHJLWLPDF\ WKURXJK VFLHQWL¿F SULQFLSOHV :H DUH EXW VKDULQJ WKH
PHWKRGV RI D SURJUDP ZKRVH OHJLWLPDF\ KDV EHHQ HVWDEOLVKHG WKURXJK WKH
Ŷ(DWPHDWDQGYHJHWDEOHVQXWVDQGVHHGV
VRPHIUXLWOLWWOHVWDUFKDQGQRVXJDU.HHS
LQWDNHWROHYHOVWKDWZLOOVXSSRUWH[HUFLVHEXW
QRWERG\IDW
Ŷ3UDFWLFHDQGWUDLQPDMRUOLIWV'HDGOLIWFOHDQ
VTXDWSUHVVHV&-DQGVQDWFK6LPLODUO\
PDVWHUWKHEDVLFVRIJ\PQDVWLFVSXOOXSV
GLSVURSHFOLPESXVKXSVVLWXSVSUHVVHVWR
KDQGVWDQGSLURXHWWHVÀLSVVSOLWVDQGKROGV
%LNHUXQVZLPURZHWFKDUGDQGIDVW
Ŷ)LYHRUVL[GD\VSHUZHHNPL[WKHVHHOH
PHQWVLQDVPDQ\FRPELQDWLRQVDQGSDWWHUQV
DVFUHDWLYLW\ZLOODOORZ5RXWLQHLVWKHHQHP\
.HHSZRUNRXWVVKRUWDQGLQWHQVH
Ŷ5HJXODUO\OHDUQDQGSOD\QHZVSRUWV
2FWREHU
WHVWLPRQ\RIDWKOHWHVVROGLHUVFRSVDQGRWKHUVZKRVHOLYHVRUOLYHOLKRRGVGHSHQGRQ¿WQHVV
&URVV¿W¶V)LUVW)LWQHVV6WDQGDUG
7KHUHDUHWHQUHFRJQL]HGJHQHUDOSK\VLFDOVNLOOV7KH\DUHFDUGLRYDVFXODUUHVSLUDWRU\HQGXUDQFHVWDPLQDVWUHQJWKÀH[LELOLW\SRZHU
FRRUGLQDWLRQDJLOLW\EDODQFHDQGDFFXUDF\6HH³*HQHUDO3K\VLFDO6NLOOV´SJIRUGH¿QLWLRQV<RXDUHDV¿WDV\RXDUHFRPSHWHQW
LQHDFKRIWKHVHWHQVNLOOV$UHJLPHQGHYHORSV¿WQHVVWRWKHH[WHQWWKDWLWLPSURYHVHDFKRIWKHVHWHQVNLOOV
,PSRUWDQWO\LPSURYHPHQWVLQHQGXUDQFHVWDPLQDVWUHQJWKDQGÀH[LELOLW\FRPHDERXWWKURXJKWUDLQLQJ7UDLQLQJUHIHUVWRDFWLYLW\
WKDWLPSURYHVSHUIRUPDQFHWKURXJKDPHDVXUDEOHRUJDQLFFKDQJHLQWKHERG\%\FRQWUDVWLPSURYHPHQWVLQFRRUGLQDWLRQDJLOLW\
EDODQFHDQGDFFXUDF\FRPHDERXWWKURXJKSUDFWLFH3UDFWLFHUHIHUVWRDFWLYLW\WKDWLPSURYHVSHUIRUPDQFHWKURXJKFKDQJHVLQWKH
QHUYRXVV\VWHP3RZHUDQGVSHHGDUHDGDSWDWLRQVRIERWKWUDLQLQJDQGSUDFWLFH
&URVV¿W¶V6HFRQG)LWQHVV6WDQGDUG
7KHHVVHQFHRIWKLVPRGHOLVWKHYLHZWKDW¿WQHVVLVDERXWSHUIRUPLQJZHOODWDQ\DQGHYHU\WDVNLPDJLQDEOH3LFWXUHDKRSSHUORDGHG
ZLWKDQLQ¿QLWHQXPEHURISK\VLFDOFKDOOHQJHVZKHUHQRVHOHFWLYHPHFKDQLVPLVRSHUDWLYHDQGEHLQJDVNHGWRSHUIRUPIHWHVUDQ
GRPO\GUDZQIURPWKHKRSSHU7KLVPRGHOVXJJHVWVWKDW\RXU¿WQHVVFDQEHPHDVXUHGE\\RXUFDSDFLW\WRSHUIRUPZHOODWWKHVHWDVNV
LQUHODWLRQWRRWKHULQGLYLGXDOV
7KHLPSOLFDWLRQKHUHLVWKDW¿WQHVVUHTXLUHVDQDELOLW\WRSHUIRUPZHOODWDOOWDVNVHYHQXQIDPLOLDUWDVNVWDVNVFRPELQHGLQLQ¿QLWHO\
YDU\LQJFRPELQDWLRQV,QSUDFWLFHWKLVHQFRXUDJHVWKHDWKOHWHWRGLVLQYHVWLQDQ\VHWQRWLRQVRIVHWVUHVWSHULRGVUHSVH[HUFLVHVRUGHU
RIH[HUFLVHVURXWLQHVSHULRGL]DWLRQHWF1DWXUHIUHTXHQWO\SURYLGHVODUJHO\XQIRUHVHHDEOHFKDOOHQJHVWUDLQIRUWKDWE\VWULYLQJWR
NHHSWKHWUDLQLQJVWLPXOXVEURDGDQGFRQVWDQWO\YDULHG
&URVV¿W¶V7KLUG)LWQHVV6WDQGDUG
7RWDO¿WQHVVWKH¿WQHVVWKDW&URVV)LWSURPRWHVDQGGHYHORSVUHTXLUHV
FRPSHWHQF\DQGWUDLQLQJLQHDFKRIWKHVHWKUHHSDWKZD\VRUHQJLQHV
%DODQFLQJWKHHIIHFWVRIWKHVHWKUHHSDWKZD\VODUJHO\GHWHUPLQHVWKH
KRZDQGZK\RIWKHPHWDEROLFFRQGLWLRQLQJRU³FDUGLR´WKDWZHGRDW
&URVV)LW
)DYRULQJRQHRUWZRWRWKHH[FOXVLRQRIWKHRWKHUVDQGQRWUHFRJQL]LQJ
WKHLPSDFWRIH[FHVVLYHWUDLQLQJLQWKHR[LGDWLYHSDWKZD\DUHDUJXDEO\
WKHWZRPRVWFRPPRQIDXOWVLQ¿WQHVVWUDLQLQJ0RUHRQWKDWODWHU
3HUFHQW RI WRWDO HQHUJ\
7KHUHDUHWKUHHPHWDEROLFSDWKZD\VWKDWSURYLGHWKHHQHUJ\IRUDOOKXPDQDFWLRQ7KHVH³PHWDEROLFHQJLQHV´DUHNQRZQDVWKHSKRV
SKDJHQSDWKZD\WKHJO\FRO\WLFSDWKZD\DQGWKHR[LGDWLYHSDWKZD\
7KH¿UVWWKHSKRVSKDJHQGRPLQDWHVWKHKLJKHVWSRZHUHGDFWLYLWLHV
WKRVHWKDWODVWOHVVWKDQDERXWWHQVHFRQGV7KHVHFRQGSDWKZD\WKH
JO\FRO\WLF GRPLQDWHV PRGHUDWHSRZHUHG DFWLYLWLHV WKRVH WKDW ODVW
XSWRVHYHUDOPLQXWHV7KHWKLUGSDWKZD\WKHR[LGDWLYHGRPLQDWHV
ORZSRZHUHG DFWLYLWLHV WKRVH WKDW ODVW LQ H[FHVV RI VHYHUDO PLQ
XWHV+HUH¶VDQH[FHOOHQWUHIHUHQFHIRUDGGLWLRQDOLQIRUPDWLRQKWWS
SUHGDWRUSQEXFRQQHGXEHWDYLUWXDOWHPSPXVFOHH[HUFLVHIROGHU
PXVFOHKWPO
7LPH VHFRQGV
3KRVSKDJHQ
*O\FRO\WLF
2[LGDWLYH
© All rights reserved 2002
&RPPRQ*URXQG
7KHPRWLYDWLRQIRUWKHWKUHHVWDQGDUGVLVVLPSO\WRHQVXUHWKHEURDGHVWDQGPRVWJHQHUDO¿WQHVVSRVVLEOH2XU¿UVWPRGHOHYDOXDWHV
RXUHIIRUWVDJDLQVWDIXOOUDQJHRIJHQHUDOSK\VLFDODGDSWDWLRQVLQWKHVHFRQGWKHIRFXVLVRQEUHDGWKDQGGHSWKRISHUIRUPDQFHZLWK
WKHWKLUGWKHPHDVXUHLVWLPHSRZHUDQGFRQVHTXHQWO\HQHUJ\V\VWHPV,WVKRXOGEHIDLUO\FOHDUWKDWWKH¿WQHVVWKDW&URVV)LWDGYRFDWHV
DQGGHYHORSVLVGHOLEHUDWHO\EURDGJHQHUDODQGLQFOXVLYH2XUVSHFLDOW\LVQRWVSHFLDOL]LQJ&RPEDWVXUYLYDOPDQ\VSRUWVDQGOLIH
UHZDUGWKLVNLQGRI¿WQHVVDQGRQDYHUDJHSXQLVKWKHVSHFLDOLVW
2FWREHU
##
##
"##%"
) $
#$)
")"#
#$"
($)
%# ##
$
$##
%" ##% $ # $$ &")$ ' #%" %$ $ ' " $ $#
$%% $ $ ## $$ ### '## $## " "$ #%"# # !%$) $
© All rights reserved 2002
6LFNQHVV:HOOQHVVDQG)LWQHVV
7KHUHLVDQRWKHUDVSHFWWRWKH&URVV)LWEUDQGRI¿WQHVVWKDWLVRIJUHDWLQWHUHVWDQGLPPHQVHYDOXHWRXV:HKDYHREVHUYHGWKDW
QHDUO\HYHU\PHDVXUDEOHYDOXHRIKHDOWKFDQEHSODFHGRQDFRQWLQXXPWKDWUDQJHVIURPVLFNQHVVWRZHOOQHVVWR¿WQHVV6HHWDEOH
DERYH7KRXJKWRXJKHUWRPHDVXUHZHZRXOGHYHQDGGPHQWDOKHDOWKWRWKLVREVHUYDWLRQ'HSUHVVLRQLVFOHDUO\PLWLJDWHGE\SURSHU
GLHWDQGH[HUFLVHLHJHQXLQH¿WQHVV
)RUH[DPSOHDEORRGSUHVVXUHRILVSDWKRORJLFDOLVQRUPDORUKHDOWK\DQGLVFRQVLVWHQWZLWKDQDWKOHWH¶VEORRG
SUHVVXUHDERG\IDWRILVSDWKRORJLFDOLVQRUPDORUKHDOWK\DQGLV¿W:HREVHUYHDVLPLODURUGHULQJIRUERQHGHQ
VLW\WULJO\FHULGHVPXVFOHPDVVÀH[LELOLW\+'/RU³JRRGFKROHVWHURO´UHVWLQJKHDUWUDWHDQGGR]HQVRIRWKHUFRPPRQPHDVXUHVRI
KHDOWK0DQ\DXWKRULWLHVHJ0HO6LIIWKH16&$PDNHDFOHDUGLVWLQFWLRQEHWZHHQKHDOWKDQG¿WQHVV)UHTXHQWO\WKH\FLWHVWXGLHV
WKDWVXJJHVWWKDWWKH¿WPD\QRWEHKHDOWKSURWHFWHG$FORVHORRNDWWKHVXSSRUWLQJHYLGHQFHLQYDULDEO\UHYHDOVWKHVWXGLHGJURXSLV
HQGXUDQFHDWKOHWHVDQGZHVXVSHFWHQGXUDQFHDWKOHWHVRQDGDQJHURXVIDGGLHWKLJKFDUEORZIDWORZSURWHLQ
'RQHULJKW¿WQHVVSURYLGHVDJUHDWPDUJLQRISURWHFWLRQDJDLQVWWKHUDYDJHVRIWLPHDQGGLVHDVH:KHUH\RX¿QGRWKHUZLVHH[DPLQH
WKH¿WQHVVSURWRFROHVSHFLDOO\GLHW)LWQHVVLVDQGVKRXOGEH³VXSHUZHOOQHVV´6LFNQHVVZHOOQHVVDQG¿WQHVVDUHPHDVXUHVRIWKH
VDPHHQWLW\$¿WQHVVUHJLPHQWKDWGRHVQ¶WVXSSRUWKHDOWKLVQRW&URVV)LW
$VDQRWHRILQWHUHVW0HO6LII3K'ZKRPZHRIWHQUHVSHFWDQGDGPLUHKROGVKLVDWKHURVFOHURWLFGLVHDVHDQGVXEVHTXHQWKHDUW
DWWDFNDVDQHFGRWDOHYLGHQFHRIWKHFRQWHQWLRQWKDW¿WQHVVDQGKHDOWKDUHQRWQHFHVVDULO\OLQNHGEHFDXVHRIKLVUHJXODUWUDLQLQJDQG
³JRRGGLHW´:KHQZHUHVHDUFKHGKLVGLHWDU\UHFRPPHQGDWLRQVZHGLVFRYHUHGWKDWKHDGYRFDWHVDGLHWLGHDOO\VWUXFWXUHGIRUFDXVLQJ
KHDUWGLVHDVH±ORZIDWKLJKFDUE6LIIKDVIDOOHQYLFWLPWRMXQNVFLHQFH
,PSOHPHQWDWLRQ
2XU¿WQHVVEHLQJ³&URVV)LW´FRPHVWKURXJKPROGLQJPHQDQGZRPHQWKDWDUHHTXDOSDUWVJ\PQDVW2O\PSLFZHLJKWOLIWHUDQG
PXOWLPRGDOVSULQWHURU³VSULQWDWKOHWH´'HYHORSWKHFDSDFLW\RIDQRYLFHPHWHUWUDFNDWKOHWHJ\PQDVWDQGZHLJKWOLIWHUDQG
\RX¶OOEH¿WWHUWKDQDQ\ZRUOGFODVVUXQQHUJ\PQDVWRUZHLJKWOLIWHU/HW¶VORRNDWKRZ&URVV)LWLQFRUSRUDWHVPHWDEROLFFRQGLWLRQLQJ
³FDUGLR´J\PQDVWLFVDQGZHLJKWOLIWLQJWRIRUJHWKHZRUOG¶V¿WWHVWPHQDQGZRPHQ
0HWDEROLF&RQGLWLRQLQJRU³&DUGLR´
%LNLQJUXQQLQJVZLPPLQJURZLQJVSHHGVNDWLQJDQGFURVVFRXQWU\VNLLQJDUHFROOHFWLYHO\NQRZQDV³PHWDEROLFFRQGLWLRQLQJ´,Q
WKHFRPPRQYHUQDFXODUWKH\DUHUHIHUUHGWRDV³FDUGLR´&URVV)LW¶VWKLUG¿WQHVVVWDQGDUGWKHRQHWKDWGHDOVZLWKPHWDEROLFSDWKZD\V
2FWREHU
*(1(5$/3+<6,&$/6.,//6
,I\RXUJRDOLVRSWLPXPSK\VLFDOFRP
SHWHQFHWKHQDOOWKHJHQHUDOSK\VLFDO
VNLOOVPXVWEHFRQVLGHUHG
&DUGLRYDVFXODUUHVSLUDWRU\HQGXU
DQFH7KHDELOLW\RIERG\V\VWHPVWR
JDWKHUSURFHVVDQGGHOLYHUR[\JHQ
6WDPLQD7KHDELOLW\RIERG\V\V
WHPVWRSURFHVVGHOLYHUVWRUHDQG
XWLOL]HHQHUJ\
6WUHQJWK7KHDELOLW\RIDPXVFXODU
XQLWRUFRPELQDWLRQRIPXVFXODUXQLWV
WRDSSO\IRUFH
)OH[LELOLW\WKHDELOLW\WRPD[LPL]H
WKHUDQJHRIPRWLRQDWDJLYHQMRLQW
3RZHU7KHDELOLW\RIDPXVFXODU
XQLWRUFRPELQDWLRQRIPXVFXODUXQLWV
WRDSSO\PD[LPXPIRUFHLQPLQLPXP
WLPH
6SHHG7KHDELOLW\WRPLQLPL]HWKH
WLPHF\FOHRIDUHSHDWHGPRYHPHQW
&RRUGLQDWLRQ7KHDELOLW\WRFRP
ELQHVHYHUDOGLVWLQFWPRYHPHQWSDW
WHUQVLQWRDVLQJXODUGLVWLQFWPRYH
PHQW
$JLOLW\7KHDELOLW\WRPLQLPL]H
WUDQVLWLRQWLPHIURPRQHPRYHPHQW
SDWWHUQWRDQRWKHU
%DODQFH7KHDELOLW\WRFRQWUROWKH
SODFHPHQWRIWKHERGLHVFHQWHURI
JUDYLW\LQUHODWLRQWRLWVVXSSRUWEDVH
$FFXUDF\7KHDELOLW\WRFRQWURO
PRYHPHQWLQDJLYHQGLUHFWLRQRUDWD
JLYHQLQWHQVLW\
(G7KDQNVWR-LP&UDZOH\
DQG%UXFH(YDQVRI'\QDPD[
ZZZPHGLFLQHEDOOVFRP?
FRQWDLQVWKHVHHGVRIWKH&URVV)LW³FDUGLR´SUHVFULSWLRQ7RXQGHUVWDQGWKH&URVV)LW
DSSURDFKWR³FDUGLR´ZHQHHG¿UVWWREULHÀ\FRYHUWKHQDWXUHDQGLQWHUDFWLRQRIWKH
WKUHHPDMRUSDWKZD\V
2I WKH WKUHH PHWDEROLF SDWKZD\V WKH ¿UVW WZR WKH SKRVSKDJHQ DQG WKH JO\FRO\WLF
DUH ³DQDHURELF´ DQG WKH WKLUG WKH R[LGDWLYH LV ³DHURELF´ :H QHHGQ¶W EHODERU WKH
ELRFKHPLFDOVLJQL¿FDQFHRIDHURELFDQGDQDHURELFV\VWHPVVXI¿FHLWWRVD\WKDWWKH
QDWXUHDQGLQWHUDFWLRQRIDQDHURELFH[HUFLVHDQGDHURELFH[HUFLVHLVYLWDOWRXQGHU
VWDQGLQJ FRQGLWLRQLQJ -XVW UHPHPEHU WKDW HIIRUWV DW PRGHUDWH WR KLJK SRZHU DQG
ODVWLQJOHVVWKDQVHYHUDOPLQXWHVDUHDQDHURELFDQGHIIRUWVDWORZSRZHUDQGODVWLQJLQ
H[FHVVRIVHYHUDOPLQXWHVDUHDHURELF$VDQH[DPSOHWKHVSULQWVDWDQG
PHWHUVDUHODUJHO\DQDHURELFDQGHYHQWVOLNHPHWHUVWKHPLOHPHWHUV
DQGPHWHUVDUHODUJHO\DHURELF
$HURELFWUDLQLQJEHQH¿WVFDUGLRYDVFXODUIXQFWLRQDQGGHFUHDVHVERG\IDW±DOOJRRG
$HURELFFRQGLWLRQLQJDOORZVXVWRHQJDJHLQORZSRZHUH[WHQGHGHIIRUWVHI¿FLHQWO\
FDUGLRUHVSLUDWRU\HQGXUDQFHDQGVWDPLQD7KLVLVFULWLFDOWRPDQ\VSRUWV$WKOHWHV
HQJDJHGLQVSRUWVRUWUDLQLQJZKHUHDSUHSRQGHUDQFHRIWKHWUDLQLQJORDGLVVSHQWLQ
DHURELFHIIRUWVZLWQHVVGHFUHDVHVLQPXVFOHPDVVVWUHQJWKVSHHGDQGSRZHU,WLV
QRWXQFRPPRQWR¿QGPDUDWKRQHUVZLWKDYHUWLFDOOHDSRIRQO\VHYHUDOLQFKHV)XU
WKHUPRUHDHURELFDFWLYLW\KDVDSURQRXQFHGWHQGHQF\WRGHFUHDVHDQDHURELFFDSDFLW\
7KLVGRHVQRWERGHZHOOIRUPRVWDWKOHWHVRUWKRVHLQWHUHVWHGLQHOLWH¿WQHVV
$QDHURELF DFWLYLW\ DOVR EHQH¿WV FDUGLRYDVFXODU IXQFWLRQ DQG GHFUHDVHV ERG\
IDW ,Q IDFW DQDHURELF H[HUFLVH LV VXSHULRU WR DHURELF H[HUFLVH IRU IDW ORVV KWWS
ZZZFEDVVFRP)$7%851+70 $QDHURELF DFWLYLW\ LV KRZHYHU XQLTXH LQ LWV
FDSDFLW\WRGUDPDWLFDOO\LPSURYHSRZHUVSHHGVWUHQJWKDQGPXVFOHPDVV$QDHUR
ELFFRQGLWLRQLQJDOORZVXVWRH[HUWWUHPHQGRXVIRUFHVRYHUEULHIWLPHLQWHUYDOV2QH
DVSHFW RI DQDHURELF FRQGLWLRQLQJ WKDW EHDUV JUHDW FRQVLGHUDWLRQ LV WKDW DQDHURELF
FRQGLWLRQLQJZLOOQRWDGYHUVHO\DIIHFWDHURELFFDSDFLW\,QIDFWSURSHUO\VWUXFWXUHG
DQDHURELFDFWLYLW\FDQEHXVHGWRGHYHORSDYHU\KLJKOHYHORIDHURELF¿WQHVVZLWKRXW
WKHPXVFOHZDVWLQJFRQVLVWHQWZLWKKLJKYROXPHVRIDHURELFH[HUFLVH7KHPHWKRG
E\ZKLFKZHXVHDQDHURELFHIIRUWVWRGHYHORSDHURELFFRQGLWLRQLQJLV³LQWHUYDOWUDLQ
LQJ´
%DVNHWEDOOIRRWEDOOJ\PQDVWLFVER[LQJWUDFNHYHQWVXQGHURQHPLOHVRFFHUVZLP
PLQJHYHQWVXQGHUPHWHUVYROOH\EDOOZUHVWOLQJDQGZHLJKWOLIWLQJDUHDOOVSRUWV
WKDWUHTXLUHWKHYDVWPDMRULW\RIWUDLQLQJWLPHVSHQWLQDQDHURELFDFWLYLW\/RQJGLV
WDQFHDQGXOWUDHQGXUDQFHUXQQLQJFURVVFRXQWU\VNLLQJDQGPHWHUVZLPPLQJ
DUHDOOVSRUWVWKDWUHTXLUHDHURELFWUDLQLQJDWOHYHOVWKDWSURGXFHUHVXOWVXQDFFHSWDEOH
WR RWKHU DWKOHWHV RU WKH LQGLYLGXDO FRQFHUQHG ZLWK WRWDO FRQGLWLRQLQJ DQG RSWLPDO
KHDOWK
:HVWURQJO\UHFRPPHQGWKDW\RXDWWHQGDWUDFNPHHWRIQDWLRQDOO\RULQWHUQDWLRQDOO\
FRPSHWLWLYHDWKOHWHV3D\FORVHDWWHQWLRQWRWKHSK\VLTXHVRIWKHDWKOHWHVFRPSHWLQJ
DWPHWHUVDQGWKHPLOHUV7KHGLIIHUHQFH\RX¶UHVXUHWRQRWLFHLVD
GLUHFWUHVXOWRIWUDLQLQJDWWKRVHGLVWDQFHV
,QWHUYDO7UDLQLQJ
7KH NH\ WR GHYHORSLQJ WKH FDUGLRYDVFXODU V\VWHP ZLWKRXW DQ XQDFFHSWDEOH ORVV RI
VWUHQJWKVSHHGDQGSRZHULVLQWHUYDOWUDLQLQJ,QWHUYDOWUDLQLQJPL[HVERXWVRIZRUN
DQGUHVWLQWLPHGLQWHUYDOV)LJXUHSJJLYHVJXLGHOLQHVIRULQWHUYDOWUDLQLQJ:H
FDQ FRQWURO WKH GRPLQDQW PHWDEROLF SDWKZD\ FRQGLWLRQHG E\ YDU\LQJ WKH GXUDWLRQ
RIWKHZRUNDQGUHVWLQWHUYDODQGQXPEHURIUHSHWLWLRQV1RWHWKDWWKHSKRVSKDJHQ
SDWKZD\ LV WKH GRPLQDQW SDWKZD\ LQ LQWHUYDOV RI VHFRQGV RI ZRUN IROORZHG
2FWREHU
E\UHVWRIVHFRQGVORDGUHFRYHU\UH
SHDWHGWLPHV7KHJO\FRO\WLFSDWKZD\LVWKH
GRPLQDQWSDWKZD\LQLQWHUYDOVRIVHFRQGV
ZRUN IROORZHGE\UHVWRIVHFRQGVORDG
UHFRYHU\UHSHDWHGWLPHV$QG¿QDOO\
WKH R[LGDWLYH SDWKZD\ LV WKH GRPLQDQW SDWKZD\
LQ LQWHUYDOV RI VHFRQGV ZRUN IROORZHG
E\ UHVW RI VHFRQGV ORDGUHFRYHU\ 7KHEXONRIPHWDEROLFWUDLQLQJVKRXOGEHLQWHUYDO
WUDLQLQJ
,QWHUYDO WUDLQLQJ QHHG QRW EH VR VWUXFWXUHG RU
IRUPDO2QHH[DPSOHZRXOGEHWRVSULQWEHWZHHQ
RQH VHW RI WHOHSKRQH SROHV DQG MRJ EHWZHHQ WKH
QH[WVHWDOWHUQDWLQJLQWKLVPDQQHUIRUWKHGXUDWLRQ
RIDUXQ
)LJXUH
© All rights reserved 2002
2QHH[DPSOHRIDQLQWHUYDOWKDW&URVV)LWPDNHVUHJXODUXVHRILVWKH7DEDWD,QWHUYDOZKLFKLVVHFRQGVRIZRUNIROORZHGE\
VHFRQGV RI UHVW UHSHDWHG VL[ WR HLJKW WLPHV KWWSZZZFEDVVFRP,17(59$/+70 'U ,]XPL7DEDWD SXEOLVKHG UHVHDUFK WKDW
GHPRQVWUDWHGWKDWWKLVLQWHUYDOSURWRFROSURGXFHGUHPDUNDEOHLQFUHDVHVLQERWKDQDHURELFDQGDHURELFFDSDFLW\
,WLVKLJKO\GHVLUDEOHWRUHJXODUO\H[SHULPHQWZLWKLQWHUYDOSDWWHUQVRIYDU\LQJFRPELQDWLRQVRIUHVWZRUNDQGUHSHWLWLRQV
2QHRIWKHEHVW,QWHUQHWUHVRXUFHVRQLQWHUYDOWUDLQLQJFRPHVIURP'U6WHSKHQ6HLOHUKWWSKRPHKLDQRaVWHSKHQVLQWHUYDOKWP
7KLVDUWLFOHRQLQWHUYDOWUDLQLQJDQGDQRWKHURQWKHWLPHFRXUVHRIWUDLQLQJDGDSWDWLRQVKWWSKRPHKLDQRaVWHSKHQVWLPHFRUVKWP
FRQWDLQWKHVHHGVRI&URVV)LW¶VKHDY\UHOLDQFHRQLQWHUYDOWUDLQLQJ7KHDUWLFOHRQWKHWLPHFRXUVHRIWUDLQLQJDGDSWDWLRQVH[SODLQV
WKDWWKHUHDUHWKUHHZDYHVRIDGDSWDWLRQWRHQGXUDQFHWUDLQLQJ7KH¿UVWZDYHLVLQFUHDVHGPD[LPDOR[\JHQFRQVXPSWLRQ7KHVHFRQG
LVLQFUHDVHGODFWDWHWKUHVKROG7KHWKLUGLVLQFUHDVHGHI¿FLHQF\,QWKH&URVV)LWFRQFHSWZHDUHLQWHUHVWHGLQPD[LPL]LQJ¿UVWZDYH
DGDSWDWLRQVDQGSURFXULQJWKHVHFRQGV\VWHPLFDOO\WKURXJKPXOWLSOHPRGDOLWLHVLQFOXGLQJZHLJKWWUDLQLQJDQGDYRLGLQJFRPSOHWHO\
WKLUGZDYHDGDSWDWLRQV6HFRQGDQGWKLUGZDYHDGDSWDWLRQVDUHKLJKO\VSHFL¿FWRWKHDFWLYLW\LQZKLFKWKH\DUHGHYHORSHGDQGDUH
GHWULPHQWDOWRWKHEURDG¿WQHVVWKDWZHDGYRFDWHDQGGHYHORS$FOHDUXQGHUVWDQGLQJRIWKLVPDWHULDOKDVSURPSWHGXVWRDGYRFDWH
UHJXODUKLJKLQWHQVLW\WUDLQLQJLQDVPDQ\WUDLQLQJPRGDOLWLHVDVSRVVLEOHWKURXJKODUJHO\DQDHURELFHIIRUWVDQGLQWHUYDOVZKLOHGH
OLEHUDWHO\DQGVSHFL¿FDOO\DYRLGLQJWKHHI¿FLHQF\WKDWDFFRPSDQLHVPDVWHU\RIDVLQJOHPRGDOLW\,WLVDW¿UVWLURQLFWKDWWKLVLVRXU
LQWHUSUHWDWLRQRI'U6HLOHU¶VZRUNIRULWZDVQRWKLVLQWHQWLRQEXWZKHQRXUTXHVWRIRSWLPDOSK\VLFDOFRPSHWHQFHLVYLHZHGLQOLJKW
RI'U6HLOHU¶VPRUHVSHFL¿FDLPRIPD[LPL]LQJHQGXUDQFHSHUIRUPDQFHRXULQWHUSUHWDWLRQLVSRZHUIXO
'U6HLOHU¶VZRUNLQFLGHQWDOO\PDNHVFOHDUWKHIDOODF\RIDVVXPLQJWKDWHQGXUDQFHZRUNLVRIJUHDWHUEHQH¿WWRWKHFDUGLRYDVFXODU
V\VWHPWKDQKLJKHULQWHQVLW\LQWHUYDOZRUN7KLVLVYHU\LPSRUWDQWZLWKLQWHUYDOWUDLQLQJZHJHWDOORIWKHFDUGLRYDVFXODUEHQH¿WRI
HQGXUDQFHZRUNZLWKRXWWKHDWWHQGDQWORVVRIVWUHQJWKVSHHGDQGSRZHU
*\PQDVWLFV
2XUXVHRIWKHWHUP³J\PQDVWLFV´QRWRQO\LQFOXGHVWKHWUDGLWLRQDOFRPSHWLWLYHVSRUWWKDWZH¶YHVHHQRQ79EXWDOODFWLYLWLHVOLNH
FOLPELQJ\RJDFDOLVWKHQLFVDQGGDQFHZKHUHWKHDLPLVERG\FRQWURO,WLVZLWKLQWKLVUHDOPRIDFWLYLWLHVWKDWZHFDQGHYHORSH[
WUDRUGLQDU\VWUHQJWKHVSHFLDOO\XSSHUERG\DQGWUXQNÀH[LELOLW\FRRUGLQDWLRQEDODQFHDJLOLW\DQGDFFXUDF\,QIDFWWKHWUDGLWLRQDO
J\PQDVWKDVQRSHHULQWHUPVRIGHYHORSPHQWRIWKHVHVNLOOV
&URVV)LWXVHVVKRUWSDUDOOHOEDUVPDWVVWLOOULQJVSXOOXSDQGGLSEDUVDQGDFOLPELQJURSHWRLPSOHPHQWRXUJ\PQDVWLFVWUDLQLQJ
6HH&URVV)LW-RXUQDO6HSWHPEHU³7KH*DUDJH*\P´IRUUHFRPPHQGHGHTXLSPHQWDQGYHQGRUV
7KHVWDUWLQJSODFHIRUJ\PQDVWLFFRPSHWHQF\OLHVZLWKWKHZHOONQRZQFDOLVWKHQLFPRYHPHQWVSXOOXSVSXVKXSVGLSVDQGURSH
FOLPE7KHVHPRYHPHQWVQHHGWRIRUPWKHFRUHRI\RXUXSSHUERG\VWUHQJWKZRUN6HWJRDOVIRUDFKLHYLQJEHQFKPDUNVOLNH
DQGSXOOXSVDQGSXVKXSVDQGGLSVDQGFRQVHFXWLYHWULSVXSWKHURSHZLWKRXWDQ\XVHRI
2FWREHU
WKHIHHWRUOHJV
$W¿IWHHQSXOOXSVDQGGLSVHDFKLWLVWLPHWRVWDUWZRUNLQJUHJXODUO\RQD³PXVFOHXS´7KHPXVFOHXSLVPRYLQJIURPDKDQJLQJ
SRVLWLRQEHORZWKHULQJVWRDVXSSRUWHGSRVLWLRQDUPVH[WHQGHGDERYHWKHULQJV,WLVDFRPELQDWLRQPRYHPHQWFRQWDLQLQJERWKD
SXOOXSDQGDGLS)DUIURPDFRQWULYDQFHWKHPXVFOHXSLVKXJHO\IXQFWLRQDO:LWKDPXVFOHXS\RX¶OOEHDEOHWRVXUPRXQWDQ\REMHFW
RQZKLFK\RXFDQJHWD¿QJHUKROG±LI\RXFDQWRXFKLW\RXFDQJHWXSRQLW7KHYDOXHKHUHIRUVXUYLYDOSROLFH¿UH¿JKWHUDQG
PLOLWDU\XVHLVLPSRVVLEOHWRRYHUVWDWH:HZLOOLQIXWXUHLVVXHVEHFRYHULQJWKHGHWDLOVRIWKLVJUHDWPRYHPHQW7KHNH\WRGHYHORS
LQJWKHPXVFOHXSLVSXOOXSVDQGGLSV
:KLOH GHYHORSLQJ \RXU XSSHU ERG\ VWUHQJWK ZLWK WKH SXOOXSV
SXVKXSV GLSV DQG URSH FOLPE D ODUJH PHDVXUH RI EDODQFH DQG
DFFXUDF\FDQEHGHYHORSHGWKURXJKPDVWHULQJWKHKDQGVWDQG6WDUW
ZLWKDKHDGVWDQGDJDLQVWWKHZDOOLI\RXQHHGWR2QFHUHDVRQDEO\
FRPIRUWDEOH ZLWK WKH LQYHUWHG SRVLWLRQ RI WKH KHDGVWDQG \RX FDQ
SUDFWLFH NLFNLQJ XS WR WKH KDQGVWDQG DJDLQ DJDLQVW D ZDOO /DWHU
WDNH WKH KDQGVWDQG WR WKH VKRUW SDUDOOHO EDUV RU SDUDOOHWWHV KWWS
ZZZDPHULFDQJ\PQDVWFRPWHFKQLFDOO\BFRUUHFWSDUDOOHWWHJXLGH
WLWOHSDJHKWPOZLWKRXWWKHEHQH¿WRIWKHZDOO$IWHU\RXFDQKROGD
KDQGVWDQGIRUVHYHUDOPLQXWHVZLWKRXWEHQH¿WRIWKHZDOORUDVSRW
WHULWLVWLPHWRGHYHORSDSLURXHWWH$SLURXHWWHLVOLIWLQJRQHDUP
DQGWXUQLQJRQWKHVXSSRUWLQJDUPGHJUHHVWRUHJDLQWKHKDQG
VWDQG WKHQ UHSHDWLQJ WKLV ZLWK DOWHUQDWH DUPV XQWLO \RX¶YH WXUQHG
GHJUHHV7KLVVNLOOQHHGVWREHSUDFWLFHGXQWLOLWFDQEHGRQH
ZLWKOLWWOHFKDQFHRIIDOOLQJIURPWKHKDQGVWDQG:RUNLQLQWHUYDOVRI
GHJUHHVDVEHQFKPDUNVRI\RXUJURZWK±
DQG¿QDOO\GHJUHHV
2XUXVHRIWKHWHUP³J\PQDVWLFV´LQFOXGHVDOO
DFWLYLWLHVZKHUHWKHDLPLVERG\FRQWURO
:DONLQJRQWKHKDQGVLVDQRWKHUIDQWDVWLFWRROIRUGHYHORSLQJERWKWKHKDQGVWDQGDQGEDODQFHDQGDFFXUDF\$IRRWEDOO¿HOGRUVLGH
ZDONLVDQH[FHOOHQWSODFHWRSUDFWLFHDQGPHDVXUH\RXUSURJUHVV<RXZDQWWREHDEOHWRZDON\DUGVLQWKHKDQGVWDQGZLWKRXW
IDOOLQJ
&RPSHWHQF\LQWKHKDQGVWDQGUHDGLHVWKHDWKOHWHIRUKDQGVWDQGSUHVVHV7KHUHLVDIDPLO\RISUHVVHVWKDWUDQJHIURPUHODWLYHO\HDV\
RQHVWKDWDQ\EHJLQQLQJJ\PQDVWFDQSHUIRUPWRRQHVVRGLI¿FXOWWKDWRQO\WKHEHVWJ\PQDVWVFRPSHWLQJDWQDWLRQDOOHYHOVFDQ
SHUIRUP7KHLUKLHUDUFK\RIGLI¿FXOW\LVEHQWDUPEHQWERG\KLSEHQWOHJVWUDLJKWDUPEHQWERG\EHQWOHJVWUDLJKWDUPEHQWERG\
VWUDLJKWOHJEHQWDUPVWUDLJKWERG\VWUDLJKWOHJDQG¿QDOO\WKHPRQVWHUVWUDLJKWDUPVWUDLJKWERG\VWUDLJKWOHJ,WLVQRWXQXVXDOWR
WDNHWHQ\HDUVWRJHWWKHVH¿YHSUHVVHV
7KHWUXQNÀH[LRQZRUNLQJ\PQDVWLFVLVEH\RQGDQ\WKLQJ\RX¶OOVHHDQ\ZKHUHHOVH(YHQWKHEHJLQQLQJJ\PQDVWLFWUXQNPRYHPHQWV
FULSSOHERG\EXLOGHUVZHLJKWOLIWHUVDQGPDUWLDODUWLVWV,QDIXWXUHLVVXHRI&)-&URVV)LW-RXUQDOZH¶OOFRYHULQJUHDWGHWDLOPDQ\RI
WKHEHWWHUWUXQNDEH[HUFLVHVEXWXQWLOWKHQWKHEDVLFVLWXSDQG³/´KROGDUHWKHVWDSOHV7KH³/´KROGLVQRWKLQJPRUHWKDQKROGLQJ
\RXUWUXQNVWUDLJKWVXSSRUWHGE\ORFNHGDUPVKDQGVRQEHQFKÀRRURUSDUDOOHOEDUVDQGKLSVDWGHJUHHVZLWKOHJVVWUDLJKWKHOG
RXWLQIURQWRI\RX<RXZDQWWRZRUNWRZDUGVDWKUHHPLQXWHKROGLQEHQFKPDUNLQFUHPHQWVRIVHFRQGV±
DQGVHFRQGV:KHQ\RXFDQKROGDQ³/´IRUWKUHHPLQXWHVDOO\RXUROGDEZRUNZLOOEHVLOO\HDV\
:HUHFRPPHQG%RE$QGHUVRQ¶V6WUHWFKLQJ7KLVLVDVLPSOHQRQRQVHQVHDSSURDFKWRÀH[LELOLW\7KHVFLHQFHRIVWUHWFKLQJLVZHDNO\
GHYHORSHGDQGPDQ\DWKOHWHVOLNHJ\PQDVWVZKRGHPRQVWUDWHJUHDWÀH[LELOLW\UHFHLYHQRIRUPDOLQVWUXFWLRQ-XVWGRLW*HQHUDOO\
\RXZDQWWRVWUHWFKLQDZDUPXSWRHVWDEOLVKVDIHHIIHFWLYHUDQJHRIPRWLRQIRUWKHHQVXLQJDFWLYLW\DQGVWUHWFKGXULQJFRROGRZQ
WRLPSURYHÀH[LELOLW\
7KHUH¶VDORWRIPDWHULDOWRZRUNZLWKKHUH:HKLJKO\UHFRPPHQGDQDGXOWJ\PQDVWLFVSURJUDPLIWKHUHLVRQHLQ\RXUDUHD2XU
IULHQGVDWZZZGULOOVDQGVNLOOVFRPKDYHDJ\PQDVWLFVFRQGLWLRQLQJSDJHZLWKHQRXJKPDWHULDOWRNHHS\RXEXV\IRU\HDUVKWWS
ZZZGULOOVDQGVNLOOVFRPVNLOOVFRQG7KLVLVDPRQJRXUIDYRULWH¿WQHVVVLWHV
2FWREHU
(YHU\ZRUNRXWVKRXOGFRQWDLQUHJXODUJ\PQDVWLFFDOLVWKHQLFPRYHPHQWVWKDW\RX¶YHPDVWHUHGDQGRWKHUHOHPHQWVXQGHUGHYHORS
PHQW0XFKRIWKHUXGLPHQWVRIJ\PQDVWLFVFRPHRQO\ZLWKJUHDWHIIRUWDQGIUXVWUDWLRQ±WKDW¶V2.7KHUHWXUQLVXQSUHFHGHQWHGDQG
WKHPRVWIUXVWUDWLQJHOHPHQWVDUHPRVWEHQH¿FLDOORQJEHIRUH\RX¶YHGHYHORSHGHYHQDPRGLFXPRIFRPSHWHQF\
:HLJKWOLIWLQJ
³:HLJKWOLIWLQJ´DVRSSRVHGWR³ZHLJKWOLIWLQJ´WZRZRUGVDQG³ZHLJKWWUDLQLQJ´UHIHUVWRWKH2O\PSLFVSRUWZKLFKLQFOXGHVWKH
³FOHDQDQGMHUN´DQGWKH³VQDWFK´2O\PSLFZHLJKWOLIWLQJDVLWLVRIWHQUHIHUUHGWRGHYHORSVVWUHQJWKHVSHFLDOO\LQWKHKLSVVSHHG
DQGSRZHUOLNHQRRWKHUWUDLQLQJPRGDOLW\,WLVOLWWOHNQRZQWKDWVXFFHVVIXOZHLJKWOLIWLQJUHTXLUHVVXEVWDQWLDOÀH[LELOLW\2O\PSLF
ZHLJKWOLIWHUVDUHDVÀH[LEOHDVDQ\DWKOHWHV
7KHEHQH¿WVRI2O\PSLFZHLJKWOLIWLQJGRQ¶WHQGZLWKVWUHQJWKVSHHGSRZHUDQGÀH[LELOLW\7KHFOHDQDQGMHUNDQGWKHVQDWFKERWK
GHYHORSFRRUGLQDWLRQDJLOLW\DFFXUDF\DQGEDODQFHDQGWRQRVPDOOGHJUHH%RWKRIWKHVHOLIWVDUHDVQXDQFHGDQGFKDOOHQJLQJDVDQ\
PRYHPHQWLQDOORIVSRUW0RGHUDWHFRPSHWHQF\LQWKH2O\PSLFOLIWVFRQIHUVDGGHGSURZHVVWRDQ\VSRUW
7KH2O\PSLFOLIWVDUHEDVHGRQWKHGHDGOLIWFOHDQVTXDWDQGMHUN7KHVHPRYHPHQWVDUH
WKHVWDUWLQJSRLQWIRUDQ\VHULRXVZHLJKWWUDLQLQJSURJUDP,QIDFWWKH\VKRXOGVHUYHDVWKH
FRUHRI\RXUUHVLVWDQFHWUDLQLQJWKURXJKRXW\RXUOLIH
:K\ WKH GHDGOLIW FOHDQ VTXDW DQG MHUN" %HFDXVH WKHVH PRYHPHQWV HOLFLW D SURIRXQG
QHXURGHQGRFULQH UHVSRQVH7KDW LV WKH\ DOWHU \RX KRUPRQDOO\ DQG QHXURORJLFDOO\7KH
FKDQJHVWKDWRFFXUWKURXJKWKHVHPRYHPHQWVDUHHVVHQWLDOWRDWKOHWLFGHYHORSPHQW0RVW
RIWKHGHYHORSPHQWWKDWRFFXUVDVDUHVXOWRIH[HUFLVHLVV\VWHPLFDQGDGLUHFWUHVXOWRI
KRUPRQDODQGQHXURORJLFDOFKDQJHV
&XUOVODWHUDOUDLVHVOHJH[WHQVLRQVOHJFXUOVÀ\HVDQGRWKHUERG\EXLOGLQJPRYHPHQWV
KDYHQRSODFHLQDVHULRXVVWUHQJWKDQGFRQGLWLRQLQJSURJUDPSULPDULO\EHFDXVHWKH\KDYH
D EOXQWHG QHXURHQGRFULQH UHVSRQVH$ GLVWLQFWLYH IHDWXUH RI WKHVH UHODWLYHO\ ZRUWKOHVV
PRYHPHQWVLVWKDWWKH\KDYHQRIXQFWLRQDODQDORJLQHYHU\GD\OLIHDQGWKH\ZRUNRQO\
RQHMRLQWDWDWLPH&RPSDUHWKLVWRWKHGHDGOLIWFOHDQVTXDWDQGMHUNZKLFKDUHIXQF
WLRQDODQGPXOWLMRLQWPRYHPHQWV
6WDUW\RXUZHLJKWOLIWLQJFDUHHUZLWKWKHGHDGOLIWFOHDQVTXDWDQGMHUNWKHQLQWURGXFHWKH
³FOHDQDQGMHUN´DQGVQDWFK7KHUHDUHPDQ\H[FHOOHQWVRXUFHVIRUOHDUQLQJWKHGHDGOLIW
)LWRU*URWHVTXH"
FOHDQVTXDWDQGMHUNEXWIRUWKHFOHDQDQGMHUNDQGWKHVQDWFKZHNQRZRIRQO\RQHRXW
VWDQGLQJVRXUFHDQGWKDWLVDFRXSOHRIYLGHRWDSHVSURGXFHGE\:RUOG&ODVV&RDFKLQJ
//&KWWSZZZZRUOGFODVVFRDFKLQJOOFFRP7KHVHWDSHVDUHQRWRQO\WKHEHVWLQVWUXFWLRQDYDLODEOHDQ\ZKHUHWKH\DUHDVJRRGDV
DQ\LQVWUXFWLRQDOWDSHZH¶YHVHHQRQDQ\VXEMHFW0XFKRIWKHPDWHULDORQWKHWDSHVERWKLQWHUPVRISHGDJRJ\DQGWHFKQLFDOXQGHU
VWDQGLQJLVXQLTXHWRWKHSURGXFHUV<RXQHHGERWKWDSHV³7KH6QDWFK´DQG³7KH&OHDQDQG-HUN´
0XFKRIWKHEHVWZHLJKWWUDLQLQJPDWHULDORQWKH,QWHUQHW
LVIRXQGRQ³SRZHUOLIWLQJ´VLWHV3RZHUOLIWLQJLVWKHVSRUW
RIWKUHHOLIWVWKHEHQFKSUHVVVTXDWDQGGHDGOLIW3RZHU
OLIWLQJLVDVXSHUEVWDUWWRDOLIWLQJSURJUDPIROORZHGODWHU
E\WKHPRUHG\QDPLFFOHDQDQGWKHMHUNDQG¿QDOO\WKH
³FOHDQMHUN´DQGWKH³VQDWFK´
7KH&URVV)LW-RXUQDOLVDQHOHFWURQLFDOO\GLVWULEXWHGPDJD]LQH
HPDLOHGH]LQHSXEOLVKHGPRQWKO\E\ZZZFURVV¿WFRP
FKURQLFOLQJDSURYHQPHWKRGRIDFKLHYLQJHOLWH¿WQHVV
)RUVXEVFULSWLRQLQIRUPDWLRQJRWRKWWSZZZFURVV¿WFRP
VKRSHQWHUKWPORU
6HQGFKHFNRUPRQH\RUGHULQWKHDPRXQWRIWR
7KH PRYHPHQWV WKDW ZH DUH UHFRPPHQGLQJ DUH YHU\
GHPDQGLQJ DQG YHU\ DWKOHWLF$V D UHVXOW WKH\¶YH NHSW
DWKOHWHV LQWHUHVWHG DQG LQWULJXHG ZKHUH WKH W\SLFDO IDUH
RIIHUHG LQ PRVW J\PV ERG\EXLOGLQJ PRYHPHQWV W\SL
FDOO\ERUHVDWKOHWHVWRGLVWUDFWLRQ:HLJKWOLIWLQJLVVSRUW
ZHLJKWWUDLQLQJLVQRW
&URVV)LW
32%R[
$SWRV&$
2FWREHU
7KURZLQJ
2XUZHLJKWWUDLQLQJSURJUDPLQFOXGHVQRWRQO\ZHLJKWOLIWLQJDQGSRZHUOLIWLQJEXWDOVRWKURZLQJZRUNZLWKPHGLFLQHEDOOV7KH
PHGLFLQHEDOOZRUNZHIDYRUSURYLGHVERWKSK\VLFDOWUDLQLQJDQGJHQHUDOPRYHPHQWSUDFWLFH:HDUHKXJHIDQVRIWKH'\QDPD[
PHGLFLQHEDOOZZZPHGLFLQHEDOOVFRPDQGWKHWKURZLQJH[HUFLVHVHODERUDWHGLQWKH'\QDPD[WUDLQLQJPDQXDOWKDWFRPHVZLWK
WKHLUEDOOV7KHPHGLFLQHEDOOGULOOVDGGDQRWKHUSRWHQWVWLPXOXVIRUVWUHQJWKSRZHUVSHHGFRRUGLQDWLRQDJLOLW\EDODQFHDQGDF
FXUDF\
7KHUHLVDPHGLFLQHEDOOJDPHNQRZQDV+RRYHU%DOO,WLVSOD\HGZLWKDQHLJKWIRRWYROOH\EDOOQHWDQGVFRUHGOLNHWHQQLV7KLVJDPH
EXUQVWKUHHWLPHVPRUHFDORULHVWKDQWHQQLVDQGLVJUHDWIXQ7KHKLVWRU\DQGUXOHVRI+RRYHU%DOODUHDYDLODEOHIURPWKH,QWHUQHW
KWWSZZZKRRYHUDVVRFRUJKRRYHUEDOOUXOHVKWP
1XWULWLRQ
1XWULWLRQSOD\VDFULWLFDOUROHLQ\RXU¿WQHVV3URSHUQXWULWLRQFDQDPSOLI\RUGLPLQLVKWKHHIIHFWRI\RXUWUDLQLQJHIIRUWV(IIHFWLYH
QXWULWLRQLVPRGHUDWHLQSURWHLQFDUERK\GUDWHDQGIDW)RUJHWDERXWWKHIDGKLJKFDUERK\GUDWHORZIDWDQGORZSURWHLQGLHW
FDUERK\GUDWHSURWHLQDQGIDWPD\ZRUNIRU\RXUUDEELWEXWLWZRQ¶WGRDQ\WKLQJIRU\RXH[FHSWLQFUHDVH\RXUULVNRI
FDQFHUGLDEHWHVDQGKHDUWGLVHDVHRUOHDYH\RXZHDNDQGVLFNO\%DODQFHGPDFURQXWULHQWDQGKHDOWK\QXWULWLRQORRNVPRUHOLNH
FDUERK\GUDWHSURWHLQDQGIDW'U%DUU\6HDUV¶=RQH'LHWKWWSZZZGUVHDUVFRPVWLOORIIHUVWKHJUHDWHVWSUHFLVLRQ
HI¿FDF\DQGKHDOWKEHQH¿WRIDQ\FOHDUO\GH¿QHGSURWRFRO7KH=RQHGLHWGRHVDQDGHTXDWHMRERIMRLQWO\PDQDJLQJLVVXHVRIEORRG
JOXFRVHFRQWUROSURSHUPDFURQXWULHQWSURSRUWLRQDQGFDORULFUHVWULFWLRQWKHWKUHHSLOODUVRIVRXQGQXWULWLRQZKHWKHU\RXUFRQFHUQ
LVDWKOHWLFSHUIRUPDQFHGLVHDVHSUHYHQWLRQDQGORQJHYLW\RUERG\FRPSRVLWLRQ:HUHFRPPHQGWKDWHYHU\RQHUHDG'U6HDUVERRN
(QWHUWKH=RQH:HZLOOFRYHUQXWULWLRQLQJUHDWGHWDLOLQDQXSFRPLQJLVVXHRIWKH&)-
6SRUW
6SRUWSOD\VDZRQGHUIXOUROHLQ¿WQHVV6SRUWLVWKHDSSOLFDWLRQRI¿WQHVVLQDIDQWDVWLFDWPRVSKHUHRIFRPSHWLWLRQDQGPDVWHU\
7UDLQLQJ HIIRUWV W\SLFDOO\ LQFOXGH UHODWLYHO\ SUHGLFWDEOH UHSHWLWLYH PRYHPHQWV DQG SURYLGH OLPLWHG RSSRUWXQLW\ IRU WKH HVVHQWLDO
FRPELQDWLRQRIRXUWHQJHQHUDOSK\VLFDOVNLOOV,WLVDIWHUDOOWKHFRPELQHGH[SUHVVLRQRUDSSOLFDWLRQRIWKHWHQJHQHUDOVNLOOVWKDW
LVRXUPRWLYDWLRQIRUWKHLUGHYHORSPHQWLQWKH¿UVWSODFH6SRUWVDQGJDPHVOLNHVRFFHUPDUWLDODUWVEDVHEDOODQGEDVNHWEDOOLQ
FRQWUDVWWRRXUWUDLQLQJZRUNRXWVKDYHPRUHYDULHGDQGOHVVSUHGLFWDEOHPRYHPHQWV%XWZKHUHVSRUWVGHYHORSDQGUHTXLUHDOOWHQ
JHQHUDOVNLOOVVLPXOWDQHRXVO\WKH\GRVRVORZO\FRPSDUHGWRRXUVWUHQJWKDQGFRQGLWLRQLQJUHJLPHQ6SRUWLVEHWWHULQRXUYLHZDW
H[SUHVVLRQDQGWHVWLQJRIVNLOOVWKDQLWLVDWGHYHORSLQJWKHVHVDPH
VNLOOV%RWKH[SUHVVLRQDQGGHYHORSPHQWDUHFUXFLDOWRRXU¿WQHVV
6SRUWLQPDQ\UHVSHFWVPRUHFORVHO\PLPLFVWKHGHPDQGVRIQDWXUH
WKDQ GRHV RXU WUDLQLQJ:H HQFRXUDJH DQG H[SHFW RXU DWKOHWHV WR
HQJDJHLQUHJXODUVSRUWVHIIRUWVLQDGGLWLRQWRDOORIWKHLUVWUHQJWK
DQGFRQGLWLRQLQJZRUN
$7KHRUHWLFDO+HLUDUFK\RI'HYHORSPHQW
$WKHRUHWLFDOKLHUDUFK\H[LVWVIRUWKHGHYHORSPHQWRIDQDWKOHWH,W
VWDUWVZLWKQXWULWLRQDQGPRYHVWRPHWDEROLFFRQGLWLRQLQJJ\PQDV
WLFVZHLJKWOLIWLQJDQG¿QDOO\VSRUW7KLVKLHUDUFK\ODUJHO\UHÀHFWV
IRXQGDWLRQDOGHSHQGHQFHVNLOODQGWRVRPHGHJUHHWLPHRUGHULQJ
RIGHYHORSPHQW7KHORJLFDOÀRZLVIURPPROHFXODUIRXQGDWLRQV
FDUGLRYDVFXODU VXI¿FLHQF\ ERG\ FRQWURO H[WHUQDO REMHFW FRQWURO
DQG XOWLPDWHO\ PDVWHU\ DQG DSSOLFDWLRQ 7KLV PRGHO KDV JUHDWHVW
XWLOLW\LQDQDO\]LQJDWKOHWHV¶VKRUWFRPLQJVRUGLI¿FXOWLHV
:H GRQ¶W GHOLEHUDWHO\ RUGHU WKHVH FRPSRQHQWV EXW QDWXUH ZLOO ,I
\RX KDYH D GH¿FLHQF\ DW DQ\ OHYHO RI ³WKH S\UDPLG´ WKH FRPSR
QHQWVDERYHZLOOVXIIHU
,QWHJUDWLRQ
© All rights reserved 2002
2FWREHU
³VWULYHWREOXUGLVWLQFWLRQVEHWZHHQ³FDUGLR´DQGVWUHQJWKWUDLQLQJ
1DWXUHKDVQRUHJDUGIRUWKLVGLVWLQFWLRQ´
(YHU\UHJLPHQHYHU\URXWLQHFRQWDLQVZLWKLQLWVVWUXFWXUHDEOXHSULQWIRULWVGH¿FLHQF\,I\RXRQO\ZRUN\RXUZHLJKWWUDLQLQJDW
ORZUHSV\RXZRQ¶WGHYHORSWKHORFDOL]HGPXVFXODUHQGXUDQFHWKDW\RXPLJKWKDYHRWKHUZLVH,I\RXZRUNKLJKUHSVH[FOXVLYHO\
\RXZRQ¶WEXLOGWKHVDPHVWUHQJWKRUSRZHUWKDW\RXZRXOGKDYHDWORZUHS7KHUHDUHDGYDQWDJHVDQGGLVDGYDQWDJHVWRZRUNLQJRXW
VORZO\TXLFNO\KLJKZHLJKWORZZHLJKW³FDUGLR´EHIRUHFDUGLRDIWHUHWF
)RUWKH¿WQHVVWKDWZHDUHSXUVXLQJHYHU\SDUDPHWHUZLWKLQ\RXUFRQWUROQHHGVWREHPRGXODWHGWREURDGHQWKHVWLPXOXVDVPXFKDV
SRVVLEOH<RXUERG\ZLOORQO\UHVSRQGWRDQXQDFFXVWRPHGVWUHVVRUURXWLQHLVWKHHQHP\RISURJUHVVDQGEURDGDGDSWDWLRQ'RQ¶W
VXEVFULEHWRKLJKUHSVRUORZUHSVRUORQJUHVWVRUVKRUWUHVWVEXWVWULYHIRUYDULDQFHKWWSZZZFEDVVFRP(YROXWLRQDU\)LWQHVV
KWP
6RWKHQZKDWDUHZHWRGR":RUNRQEHFRPLQJDEHWWHUZHLJKW
OLIWHUVWURQJHUEHWWHUJ\PQDVWDQGIDVWHUURZHUUXQQHUVZLPPHU
F\FOLVWLVWKHDQVZHU7KHUHDUHDQLQ¿QLWHQXPEHURIUHJLPHQVWKDW
ZLOOGHOLYHUWKHJRRGV
*HQHUDOO\ZHKDYHIRXQGWKDWWKUHHGD\VRQDQGRQHGD\RIIDOORZV
IRUDPD[LPXPVXVWDLQDELOLW\DWPD[LPXPLQWHQVLWLHV2QHRIRXU
IDYRULWHZRUNRXWSDWWHUQVLVWRZDUPXSDQGWKHQSHUIRUPWKUHHWR
¿YHVHWVRIWKUHHWR¿YHUHSVRIDIXQGDPHQWDOOLIWDWDPRGHUDWHO\
FRPIRUWDEOHSDFHIROORZHGE\DWHQPLQXWHFLUFXLWRIJ\PQDVWLFV
HOHPHQWV DW D EOLVWHULQJ SDFH DQG ¿QDOO\ ¿QLVK ZLWK WZR WR WHQ
PLQXWHV RI KLJK LQWHQVLW\ PHWDEROLF FRQGLWLRQLQJ7KHUH LV QRWK
LQJVDFUHGLQWKLVSDWWHUQ7KHPDJLFLVLQWKHPRYHPHQWVQRWWKH
URXWLQH%HFUHDWLYH
$QRWKHUIDYRULWHLVWREOHQGHOHPHQWVRIJ\PQDVWLFVDQGZHLJKWOLIW
LQJLQFRXSOHWVWKDWFRPELQHWRDGUDPDWLFPHWDEROLFFKDOOHQJH$Q
H[DPSOHZRXOGEHWRSHUIRUP¿YHUHSVRIDPRGHUDWHO\KHDY\EDFN
VTXDWIROORZHGLPPHGLDWHO\E\DVHWRIPD[UHSVSXOOXSVUHSHDWHG
WKUHHWR¿YHWLPHV
2Q RWKHU RFFDVLRQV ZH¶OO WDNH ¿YH RU VL[ HOHPHQWV EDODQFHG EH
WZHHQZHLJKWOLIWLQJPHWDEROLFFRQGLWLRQLQJDQGJ\PQDVWLFVDQG
FRPELQHWKHPLQDVLQJOHFLUFXLWWKDWZHEORZWKURXJKWKUHHWLPHV
ZLWKRXWDEUHDN
6WURQJOHDQFDSDEOHDFURVVDEURDGUDQJHRIDWKOHWLF
DFWLYLWLHV(YD7ZDUGRNHQV862O\PSLF6NL&KDPSLRQ
:HFDQFUHDWHURXWLQHVOLNHWKLVIRUHYHU,QIDFWRXUDUFKLYHVKWWS
ZZZFURVV¿WFRPPLVFDUFKWPO FRQWDLQ IRXU RU ¿YH KXQGUHG
GDLO\ZRUNRXWVFRQVFLRXVO\PL[HGDQGYDULHGLQWKLVPDQQHU3HUXVLQJWKHPZLOOJLYH\RXDQLGHDRIKRZZHPL[DQGPRGXODWHRXU
NH\HOHPHQWV
:H¶YHQRWPHQWLRQHGKHUHRXUSHQFKDQWIRUMXPSLQJNHWWOHEHOOVRGGREMHFWOLIWLQJDQGREVWDFOHFRXUVHZRUN7KHUHFXUULQJWKHPH
RIIXQFWLRQDOLW\DQGYDULHW\FOHDUO\VXJJHVWWKHQHHGDQGYDOLGLW\IRUWKHLULQFOXVLRQWKRXJK
)LQDOO\VWULYHWREOXUGLVWLQFWLRQVEHWZHHQ³FDUGLR´DQGVWUHQJWKWUDLQLQJ1DWXUHKDVQRUHJDUGIRUWKLVGLVWLQFWLRQRUDQ\RWKHU
LQFOXGLQJRXUWHQSK\VLFDODGDSWDWLRQV:H¶OOXVHZHLJKWVDQGSO\RPHWULFVWUDLQLQJWRHOLFLWDPHWDEROLFUHVSRQVHDQGVSULQWLQJWR
LPSURYHVWUHQJWK
2FWREHU
6FDODELOLW\DQG$SSOLFDELOLW\
7KHTXHVWLRQUHJXODUO\DULVHVDVWRWKHDSSOLFDELOLW\RIDUHJLPHQOLNH&URVV)LW¶VWRROGHUDQGGHFRQGLWLRQHGRUGHWUDLQHGSRSXODWLRQV
7KHQHHGVRIDQ2O\PSLFDWKOHWHDQGRXUJUDQGSDUHQWVGLIIHUE\GHJUHHQRWNLQG2QHLVORRNLQJIRUIXQFWLRQDOGRPLQDQFHWKHRWKHU
IRUIXQFWLRQDOFRPSHWHQFH&RPSHWHQFHDQGGRPLQDQFHPDQLIHVWWKURXJKLGHQWLFDOSK\VLRORJLFDOPHFKDQLVPV
:H¶YHXVHGRXUVDPHURXWLQHVIRUHOGHUO\LQGLYLGXDOVZLWKKHDUWGLVHDVHDQGFDJH¿JKWHUVRQHPRQWKRXWIURPWHOHYLVHGERXWV:H
VFDOHORDGDQGLQWHQVLW\ZHGRQ¶WFKDQJHSURJUDPV
:HJHWUHTXHVWVIURPDWKOHWHVIURPHYHU\VSRUWORRNLQJIRUDVWUHQJWKDQGFRQGLWLRQLQJSURJUDPIRUWKHLUVSRUW)LUHPHQVRFFHU
SOD\HUVWULDWKOHWHVER[HUVDQGVXUIHUVDOOZDQWSURJUDPVWKDWFRQIRUPWRWKHVSHFL¿FLW\RIWKHLUQHHGV:KLOHDGPLWWLQJWKDWWKHUH
DUHVXUHO\QHHGVVSHFL¿FWRDQ\VSRUWWKHEXONRIVSRUWVSHFL¿FWUDLQLQJKDVEHHQULGLFXORXVO\LQHIIHFWLYH7KHQHHGIRUVSHFL¿FLW\LV
QHDUO\FRPSOHWHO\PHWE\UHJXODUSUDFWLFHDQGWUDLQLQJZLWKLQWKHVSRUWQRWLQWKHVWUHQJWKDQGFRQGLWLRQLQJHQYLURQPHQW2XUWHUURU
LVWKXQWHUVVNLHUVPRXQWDLQELNHUVDQGKRXVHZLYHVKDYHIRXQGWKHLUEHVW¿WQHVVIURPWKHVDPHUHJLPHQ
2FWREHU
7/(" + $0"$-2 &$ .% 0 (-(-& (,$ /$-2 (- "' 2'5 7 %.0 0(.31 /.021
1$! ++
1*$2! ++
$-"(-&
($+# ."*$7
..2! ++
.+%
7,- 12("1
"$ ."*$7.05 0#1 #$%$-1$
"$ ."*$7. +($
"0.11$. +($ #$%$-1$ 22 "*
"0.11$(#%($+#$01 , -#.5.5(-&
*((-&+ +., )3,/(-& #.5-'(++
*((-&0.11".3-207
*((-&+$ 130$
.""$0. +($5(-&1 120(*$01
.""$0 +%! "*1 .0 +(-* ,$5(,,(-& 7# #(4(-&
(,,(-& 7#
5(,,(-& 7#
5(,,(-&
7#
5(,,(-& 7#
$--(1
0 "* ($+# 7#
0 "* ($+#($+# $4$-21
0 "* ($+#
7#
0 "* ($+# 7#
0 "* ($+# ,(
0 "* ($+# ,(
0 "* ($+# ,(
0 "* ($+#0.11".3-207
0 "* ($+# 0 2'..++$7! ++
0$12+(-&
'.1/' &$-
+7".+72("
6(# 2(4$
© All rights reserved 2002
®
CrossFit is a registered trademark of CrossFit Inc.