~~Our new Director of Taxation has begun re-evaluating our tax models and designing and implementing~~


◦	During the first quarter of fiscal 2018, management completed the following remediation efforts around the design deficiency:


▪	We have redesigned specific processes and controls to augment the review of significant or unusual transactions by finance leadership to ensure that the relevant tax accounting implications are identified and considered.


▪	Our Director of Taxation has re-evaluated and enhanced our tax models and implemented multiple reconciliations to ensure the Company’s tax provision is properly reconciled and rolled-forward.


▪	Internal Audit has completed a design walkthrough of redesigned controls.

Controls over the existence of inventories, specifically controls to monitor that inventory subject to the cycle count program was counted at the frequency levels and accuracy rates required under the Company’s policy, and the controls to verify existence of inventory held at third-party locations

We have begun redesigning and enhancing our cycle count procedure to monitor the completeness and accuracy of cycle count results and establish specific accountability for investigation and analysis of variances.

We have begun redesigning and enhancing controls, including those over the completeness and accuracy of underlying information, to monitor count dates for each item by location. This will be reviewed annually to ensure that each item was counted the appropriate number of times in accordance with the cycle count policy.

We are redesigning and implementing enhanced controls including those over the completeness and accuracy of underlying information to calculate and monitor the historical 12 month rolling accuracy of cycle counts.

We are going to complete a full physical inventory count annually for locations subject to the cycle count program until the completeness and accuracy of the cycle count program has been validated. Also inventory held at third-party locations will be subject to physical inventory counts each quarter until we have completed the transfer of the vast majority of inventory held at third-party locations to Company owned facilities.

~~Controls over the completeness and accuracy of spreadsheets and system-generated reports used in internal control over financial reporting~~

We have begun designing a new control or controls for the identification and assessment of the completeness and accuracy of information, including spreadsheets and system-generated reports, used within the Company’s internal controls over financial reporting.

We have begun adding or redesigning controls to require both an evaluation and evidence of that evaluation of the completeness and accuracy of all spreadsheets and system-generated reports used in internal controls over financial reporting and the preparation of the financial statements and related footnote disclosures.

We will maintain evidence of a baseline evaluation of completeness and accuracy for every system-generated financial report determined to be a key report for which it is possible to maintain a baseline test.

~~We will periodically re-baseline key reports whether they are changed or not in accordance with our redesigned procedures and controls over financial reporting.~~

We will establish a process for evaluating and documenting the completeness and accuracy of all other spreadsheets and system-generated reports that cannot be baselined, including spreadsheets prepared or reviewed by management.


◦	During the first quarter of fiscal 2018, we have completed the transfer of the vast majority of inventory held at third-party locations to Company-owned facilities.


◦	During the first quarter of fiscal 2018, we have redesigned and enhanced our controls over the completeness and accuracy of underlying information to monitor count dates for each item by location. This annual test was performed during the first quarter to ensure that each item was counted the appropriate number of times in accordance with the cycle count policy.

Although we have ~~begun implementing~~implemented several remediation actions, we ~~have not yet been able to complete~~are still in the process of implementing certain actions and validating the impact of such actions. These remediation ~~of these material weaknesses. These~~ actions are subject to ongoing review by management, as well as oversight by the Audit Committee of our Board of Directors. Although we plan to complete this remediation process as diligently as possible, we cannot, at this time, estimate when such remediation may occur, and our initiatives may not prove successful in remediating the material weaknesses. Management may ~~determine~~decide to enhance other existing controls and/or implement additional controls as the implementation progresses. It will take time to determine whether the additional controls we are implementing will be sufficient and functioning as designed to accomplish their intended purpose; accordingly, these material weaknesses may continue for a period of time. While the Audit Committee of our Board of Directors and ~~executive~~Executive management are closely monitoring this implementation, until the remediation efforts discussed herein, including any additional remediation efforts that management identifies as necessary, are complete, tested, and determined to be effective, we will not ~~be able to~~ conclude that the material weaknesses have been remediated. In addition, we may need to incur incremental costs associated with this remediation, primarily due to the engagement of external accounting and tax experts to validate and support remediation activities and the implementation and validation of improved accounting and financial reporting procedures.

We are committed to improving our internal control over financial reporting and processes and intend to proactively review and improve our financial reporting controls and procedures incorporating best practices and leveraging external resources to facilitate periodic evaluations of our internal ~~controls~~control over financial reporting. As we continue to evaluate and work to improve our internal control over financial reporting, we may take additional measures to address control deficiencies or modify certain of the remediation ~~measures described above.~~

measures.

Changes in Internal Control over Financial Reporting

~~There~~As described above under "Management's Remediation Initiatives," there were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended April 30, ~~2016~~2017 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

RAVEN INDUSTRIES, INC.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings:

The Company is involved as a party in lawsuits, claims, regulatory inquiries, or disputes arising in the normal course of its ~~business. The~~business, the potential costs and liability of ~~such claims~~which cannot be determined at this time. ~~Management believes that any liability resulting from~~Among these matters is a patent infringement lawsuit in the early stages of litigation. In a lawsuit filed in federal district court in Kansas, Capstan Ag Systems, Inc. has made certain infringement claims ~~will be substantially mitigated by insurance coverage or would be immaterial. Accordingly, management~~against the Company and one of its customers, CNH Industrial America LLC, related to the Applied Technology Division’s Hawkeye^TM nozzle control system. Management does not believe the ultimate ~~outcome~~outcomes of ~~these matters will~~its legal proceedings are likely to be significant to its results of operations, financial position, or cash ~~flows.~~flows, except that, because of its preliminary stage, management cannot determine the potential impact, if any, of the patent infringement lawsuit described above.

The Company has insurance policies that provide coverage to various degrees for potential liabilities arising from legal proceedings.

Item 1A. Risk Factors:

The Company’s business is subject to a number of risks, including those identified in Item 1A “Risk Factors” of the Company’s Annual Report on Form ~~10-K/A~~10-K for the year ended January 31, ~~2016,~~2017, that could have a material effect on our business, results of operations, financial condition and/or liquidity and that could cause our operating results to vary significantly from fiscal period to fiscal period. The risks described in the Annual Report on Form ~~10-K/A~~10-K are not ~~the only~~exhaustive. Additional risks we ~~face. Additional risks and uncertainties not currently known to us, or that we~~ currently deem

to be immaterial or are unknown to us at this time also could ~~have a material~~materially effect on our business, results of operations, financial condition, and/or liquidity.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds:

On November 3, 2014 the Company's Board of Directors (Board) authorized a ~~$40,000~~$40,000,000 stock buyback program. Effective March 21, 2016 the Board authorized an extension and increase of this stock buyback program. An additional ~~$10,000~~$10,000,000 was authorized for share repurchases once the ~~$40,000~~$40,000,000 authorization limit is reached. This authorization remains in place until such time as the authorized spending limit is reached or is revoked by the Board.

The Company made no purchases (recorded on trade date basis) of its own equity securities during the first quarter of fiscal 2018. The remaining dollar value authorized for share repurchases at April 30, 2017 ~~(recorded on trade date basis) as follows:~~

Period Total number of shares purchased under the plan Weighted average price paid per share (or unit) Total amount purchased including commissions Dollar value of shares (or units) that may be purchased under the plan
February 1 to February 29, 2016 —
$ —
$ —

March 1 to March 31, 2016 245,770
14.63
3,596,413

April 1 to April 30, 2016 136,295
15.45
2,106,435

Total as of and for the fiscal quarter ended April 30, 2016 382,065
$ 14.93
$ 5,702,848
$ 14,959,331
is $12,959,341.

Item 3. Defaults Upon Senior Securities: None

Item 4. Mine Safety Disclosures: None

Item 5. Other Information: None

Item 6. Exhibits:



Exhibit Number			Description

31.1			Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2			Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1			Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2			Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS			XBRL Instance Document

101.SCH			XBRL Taxonomy Extension Schema

101.CAL			XBRL Taxonomy Extension Calculation Linkbase

101.DEF			XBRL Taxonomy Extension Definition Linkbase

101.LAB			XBRL Taxonomy Extension Label Linkbase

101.PRE			XBRL Taxonomy Extension Presentation Linkbase

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



	RAVEN INDUSTRIES, INC.

	/s/ Steven E. Brazones
	Steven E. Brazones
	Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

Date: ~~February 6,~~May 23, 2017

~~#38~~#29



Large accelerated filer þ		Accelerated filer o
Non-accelerated filer o (Do not check if a smaller reporting company)		Smaller reporting company o
Emerging growth company o



	PAGE

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements:
Consolidated Balance Sheets (unaudited)	53
Consolidated Statements of Income and Comprehensive Income (unaudited)	64
Consolidated Statements of Shareholders' Equity (unaudited)	75
Consolidated Statements of Cash Flows (unaudited)	86
Notes to Consolidated Financial Statements (unaudited)	97
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	2216
Item 3. Quantitative and Qualitative Disclosures about Market Risks	3225
Item 4. Controls and Procedures	3225

PART II - OTHER INFORMATION

Item 1. Legal Proceedings	3627
Item 1A. Risk Factors	3627
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	3628
Item 3. Defaults Upon Senior Securities	3628
Item 4. Mine Safety Disclosures	3628
Item 5. Other Information	3628
Item 6. Exhibits	3728
Signatures	3829


(Dollars and shares in thousands, except per-share data)	April 30, 2016 (As Restated)			January 31, 2016			April 30, 2015			April 30, 2017			January 31, 2017			April 30, 2016
ASSETS
Current assets
Cash and cash equivalents	$	32,790		$	33,782		$	47,452		$	50,477		$	50,648		$	32,790
Short-term investments	—			—			250
Accounts receivable, net	41,013			38,069			45,233			51,617			43,143			41,013
Inventories	46,901			45,839			58,981			49,867			42,336			46,901
Deferred income taxes	—			3,110			3,581
Other current assets	4,889			4,429			6,361			3,256			2,689			4,889
Total current assets	125,593			125,229			161,858			155,217			138,816			125,593

Property, plant and equipment, net	113,374			115,704			118,429			106,194			106,324			113,374
Goodwill	40,816			40,672			52,216			40,686			40,649			40,816
Amortizable intangible assets, net	13,142			12,956			17,735			11,455			12,048			13,142
Other assets	4,245			4,127			4,359			3,442			3,672			4,245
TOTAL ASSETS	$	297,170		$	298,688		$	354,597		$	316,994		$	301,509		$	297,170

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	9,356		$	6,038		$	9,123		$	13,909		$	8,467		$	9,356
Accrued liabilities	12,703			12,042			16,735			21,864			18,055			12,703
Customer advances	809			739			1,008			751			1,860			809
Total current liabilities	22,868			18,819			26,866			36,524			28,382			22,868

Other liabilities	14,439			15,640			25,581			12,726			13,696			14,439

Commitments and contingencies

Shareholders' equity
Common stock, $1 par value, authorized shares 100,000; issued 67,041; 67,006; and 66,999, respectively	67,041			67,006			66,999
Common stock, $1 par value, authorized shares 100,000; issued 67,072; 67,060; and 67,041, respectively										67,072			67,060			67,041
Paid-in capital	53,832			53,907			53,275			56,489			55,795			53,832
Retained earnings	230,207			229,443			244,055			238,250			230,649			230,207
Accumulated other comprehensive loss	(2,891		)	(3,501		)	(5,863		)	(3,670		)	(3,676		)	(2,891		)
Treasury stock at cost, 30,882; 30,500; and 29,047 shares, respectively	(88,402		)	(82,700		)	(56,406		)
Treasury stock at cost, 30,984; 30,984; and 30,882 shares, respectively										(90,402		)	(90,402		)	(88,402		)
Total Raven Industries, Inc. shareholders' equity	259,787			264,155			302,060			267,739			259,426			259,787
Noncontrolling interest	76			74			90			5			5			76
Total shareholders' equity	259,863			264,229			302,150
Total equity										267,744			259,431			259,863
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	297,170		$	298,688		$	354,597		$	316,994		$	301,509		$	297,170


	Three Months Ended						Three Months Ended
(Dollars in thousands, except per-share data)	April 30, 2016 (As Restated)			April 30, 2015			April 30, 2017			April 30, 2016
Net sales	$	68,360		$	70,273		$	93,535		$	68,360
Cost of sales	48,243			49,914			61,579			48,243
Gross profit	20,117			20,359			31,956			20,117

Research and development expenses	4,409			3,536			3,980			4,409
Selling, general, and administrative expenses	7,658			9,609			9,498			7,658
Long-lived asset impairment loss							259			—
Operating income	8,050			7,214			18,219			8,050

Other (expense), net	(97		)	(44		)	(230		)	(97		)
Income before income taxes	7,953			7,170			17,989			7,953

Income taxes	2,434			2,309
Income tax expense							5,641			2,434
Net income	5,519			4,861			12,348			5,519

Net income attributable to the noncontrolling interest	2			6			—			2

Net income attributable to Raven Industries, Inc.	$	5,517		$	4,855		$	12,348		$	5,517

Net income per common share:
─ Basic	$	0.15		$	0.13		$	0.34		$	0.15
─ Diluted	$	0.15		$	0.13		$	0.34		$	0.15

Cash dividends paid per common share	$	0.13		$	0.13		$	0.13		$	0.13

Comprehensive income:
Net income	$	5,519		$	4,861		$	12,348		$	5,519

Other comprehensive income, net of tax:
Other comprehensive income (loss):
Foreign currency translation	612			(69		)	12			612
Postretirement benefits, net of income tax (expense) benefit of $(1) and $29, respectively	(2		)	55
Postretirement benefits, net of income tax benefit (expense) of $4 and ($1), respectively							(6		)	(2		)
Other comprehensive income, net of tax	610			(14		)	6			610

Comprehensive income	6,129			4,847			12,354			6,129

Comprehensive income attributable to noncontrolling interest	2			6			—			2

Comprehensive income attributable to Raven Industries, Inc.	$	6,127		$	4,841		$	12,354		$	6,127



	td Par Common Stock		Paid-in Capital			Treasury Stock				Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Raven Industries, Inc. Equity			Non- controlling Interest		Total Equity			td Par Common Stock		Paid-in Capital			Treasury Stock				Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Raven Industries, Inc. Equity			Non- controlling Interest		Total Equity
(Dollars in thousands, except per-share amounts)						Shares	Cost																						Shares	Cost
Balance January 31, 2015	$	66,947	$	53,237		28,897	$	(53,362	)	$	244,180		$	(5,849	)	$	305,153		$	84	$	305,237
Net income	—		—			—	—			4,855			—			4,855			6		4,861
Other comprehensive income (loss):
Cumulative foreign currency translation adjustment	—		—			—	—			—			(69		)	(69		)	—		(69		)
Postretirement benefits reclassified from accumulated other comprehensive income (loss) after tax benefit of $29	—		—			—	—			—			55			55			—		55
Cash dividends ($0.13 per share)	—		40			—	—			(4,980		)	—			(4,940		)	—		(4,940		)
Share issuance costs related to fiscal 2015 business combination	—		(15		)	—	—			—			—			(15		)	—		(15		)
Shares issued on vesting of stock units, net of shares withheld for employee taxes	52		(510		)	—	—			—			—			(458		)	—		(458		)
Shares repurchased	—		—			150	(3,044		)	—			—			(3,044		)	—		(3,044		)
Share-based compensation	—		752			—	—			—			—			752			—		752
Income tax impact related to share-based compensation	—		(229		)	—	—			—			—			(229		)	—		(229		)
Balance April 30, 2015	$	66,999	$	53,275		29,047	$	(56,406	)	$	244,055		$	(5,863	)	$	302,060		$	90	$	302,150


Balance January 31, 2016	$	67,006	$	53,907		30,500	$	(82,700	)	$	229,443		$	(3,501	)	$	264,155		$	74	$	264,229		$	67,006	$	53,907		30,500	$	(82,700	)	$	229,443		$	(3,501	)	$	264,155		$	74	$	264,229
Net income	—		—			—	—			5,517			—			5,517			2		5,519			—		—			—	—			5,517			—			5,517			2		5,519
Other comprehensive income (loss):
Cumulative foreign currency translation adjustment	—		—			—	—			—			612			612			—		612			—		—			—	—			—			612			612			—		612
Postretirement benefits reclassified from accumulated other comprehensive income (loss) after tax (expense) of ($1)	—		—			—	—			—			(2		)	(2		)	—		(2		)	—		—			—	—			—			(2		)	(2		)	—		(2		)
Cash dividends ($0.13 per share)	—		52			—	—			(4,753		)	—			(4,701		)	—		(4,701		)	—		52			—	—			(4,753		)	—			(4,701		)	—		(4,701		)
Shares issued on vesting of stock units, net of shares withheld for employee taxes	35		(291		)	—	—			—			—			(256		)	—		(256		)	35		(291		)	—	—			—			—			(256		)	—		(256		)
Shares repurchased	—		—			382	(5,702		)	—			—			(5,702		)	—		(5,702		)	—		—			382	(5,702		)	—			—			(5,702		)	—		(5,702		)
Share-based compensation	—		456			—	—			—			—			456			—		456			—		456			—	—			—			—			456			—		456
Income tax impact related to share-based compensation	—		(292		)	—	—			—			—			(292		)	—		(292		)	—		(292		)	—	—			—			—			(292		)	—		(292		)
Balance April 30, 2016 (As Restated)	$	67,041	$	53,832		30,882	$	(88,402	)	$	230,207		$	(2,891	)	$	259,787		$	76	$	259,863
Balance April 30, 2016																								$	67,041	$	53,832		30,882	$	(88,402	)	$	230,207		$	(2,891	)	$	259,787		$	76	$	259,863


Balance January 31, 2017																								$	67,060	$	55,795		30,984	$	(90,402	)	$	230,649		$	(3,676	)	$	259,426		$	5	$	259,431
Net income																								—		—			—	—			12,348			—			12,348			—		12,348
Other comprehensive income (loss):
Cumulative foreign currency translation adjustment																								—		—			—	—			—			12			12			—		12
Postretirement benefits reclassified from accumulated other comprehensive income (loss) after tax benefit of $4																								—		—			—	—			—			(6		)	(6		)	—		(6		)
Cash dividends ($0.13 per share)																								—		56			—	—			(4,747		)	—			(4,691		)	—		(4,691		)
Shares issued on stock options exercised, net of shares withheld for employee taxes																								1		10			—	—			—			—			11			—		11
Shares issued on vesting of stock units, net of shares withheld for employee taxes																								11		(163		)	—	—			—			—			(152		)	—		(152		)
Share-based compensation																								—		791			—	—			—			—			791			—		791
Balance April 30, 2017																								$	67,072	$	56,489		30,984	$	(90,402	)	$	238,250		$	(3,670	)	$	267,739		$	5	$	267,744



þ		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 30, ~~2016~~2017



o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to



South Dakota (State or other jurisdiction of incorporation or organization)		46-0246171 (~~IRS~~I.R.S. Employer Identification No.)



Ÿ		~~Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations~~


	Three Months Ended						Three Months Ended
(Dollars in thousands)	April 30, 2016 (As Restated)			April 30, 2015			April 30, 2017			April 30, 2016
OPERATING ACTIVITIES:
Net income	$	5,519		$	4,861		$	12,348		$	5,519
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,762			4,363			3,614			3,762
Change in fair value of acquisition-related contingent consideration	63			212			91			63
Loss (gain) from equity investment	3			(2		)
Long-lived asset impairment loss							259			—
Loss from equity investment							110			3
Deferred income taxes	1,651			110			(783		)	1,651
Share-based compensation expense	456			752			791			456
Other operating activities, net							174			(78		)
Change in operating assets and liabilities:
Accounts receivable	(2,648		)	10,756			(8,623		)	(2,648		)
Inventories	(980		)	(4,496		)	(7,519		)	(980		)
Other assets	(1,071		)	(3,218		)	(1,041		)	(1,071		)
Operating liabilities	4,427			(4,105		)	8,281			4,427
Other operating activities, net	(78		)	(210		)
Net cash provided by operating activities	11,104			9,023			7,702			11,104

INVESTING ACTIVITIES:
Capital expenditures	(791		)	(5,000		)	(2,790		)	(791		)
Proceeds related to business acquisitions	—			351
Purchases of investments	(500		)	—			—			(500		)
Proceeds from sale of assets	50			380			14			50
Other investing activities	(194		)	(164		)	(60		)	(194		)
Net cash used in investing activities	(1,435		)	(4,433		)	(2,836		)	(1,435		)

FINANCING ACTIVITIES:
Dividends paid	(4,701		)	(4,940		)	(4,691		)	(4,701		)
Payments for common shares repurchased	(5,702		)	(2,563		)	—			(5,702		)
Payments of acquisition-related contingent liability	(138		)	(614		)	(161		)	(138		)
Debt issuance costs paid	—			(454		)
Restricted stock units vested and issued	(256		)	(458		)	(152		)	(256		)
Other financing activities, net	—			(15		)
Employee stock option exercises							11			—
Net cash used in financing activities	(10,797		)	(9,044		)	(4,993		)	(10,797		)

Effect of exchange rate changes on cash	136			(43		)	(44		)	136

Net (decrease) increase in cash and cash equivalents	(992		)	(4,497		)
Net (decrease) in cash and cash equivalents							(171		)	(992		)
Cash and cash equivalents at beginning of year	33,782			51,949			50,648			33,782
Cash and cash equivalents at end of period	$	32,790		$	47,452		$	50,477		$	32,790



	April 30, 2016
	As Previously Reported		Restatement Adjustments			As Restated
Consolidated Balance Sheets (unaudited):
Inventories	$	46,950	$	(49	)	$	46,901
Other current assets	5,343		(454		)	4,889
Total current assets	126,096		(503		)	125,593
Property, plant and equipment, net	113,767		(393		)	113,374
Goodwill	44,900		(4,084		)	40,816
Amortizable intangible assets, net	15,660		(2,518		)	13,142
Total assets	304,668		(7,498		)	297,170
Accrued liabilities	12,739		(36		)	12,703
Total current liabilities	22,904		(36		)	22,868
Other liabilities	17,259		(2,820		)	14,439
Paid-in capital	54,755		(923		)	53,832
Retained earnings	233,926		(3,719		)	230,207
Total Raven Industries, Inc. shareholders' equity	264,429		(4,642		)	259,787
Total shareholders' equity	264,505		(4,642		)	259,863
Total liabilities and shareholders' equity	304,668		(7,498		)	297,170



	Three Months Ended April 30, 2016
	As Previously Reported		Restatement Adjustments			As Restated
Consolidated Statements of Income and Comprehensive Income (unaudited):
Cost of sales	$	48,684	$	(441	)	$	48,243
Gross profit	19,676		441			20,117
Selling, general and administrative expenses	7,660		(2		)	7,658
Operating income	7,607		443			8,050
Income before income taxes	7,510		443			7,953
Income taxes	1,985		449			2,434
Net income	5,525		(6		)	5,519
Net income attributable to Raven Industries, Inc.	5,523		(6		)	5,517
Comprehensive income	6,135		(6		)	6,129
Comprehensive income attributable to Raven Industries, Inc.	6,133		(6		)	6,127



	April 30, 2016 (As Restated)			January 31, 2016			April 30, 2015
Accounts receivable, net:
Trade accounts	$	42,041		$	39,103		$	45,686
Allowance for doubtful accounts	(1,028		)	(1,034		)	(453		)
	$	41,013		$	38,069		$	45,233

Inventories:
Finished goods	$	4,570		$	4,896		$	9,127
In process	1,751			1,845			2,533
Materials	40,580			39,098			47,321
	$	46,901		$	45,839		$	58,981

Other current assets:
Insurance policy benefit	$	742		$	716		$	683
Federal tax receivable	1,265			1,721			—
Receivable from sale of business	205			255			789
Prepaid expenses and other	2,677			1,737			4,889
	$	4,889		$	4,429		$	6,361

Property, plant and equipment, net:
Held for use:
Land	$	3,054		$	3,054		$	3,246
Buildings and improvements	77,901			77,827			78,661
Machinery and equipment	141,798			140,996			135,154
Accumulated depreciation	(109,625		)	(106,419		)	(99,538		)
Accumulated impairment losses	(554		)	(554		)	—
	$	112,574		$	114,904		$	117,523

Held for sale:
Land	$	244		$	244		$	11
Buildings and improvements	1,595			1,595			1,522
Machinery and equipment	329			329			—
Accumulated depreciation	(1,368		)	(1,368		)	(627		)
	800			800			906
	$	113,374		$	115,704		$	118,429

Other assets:
Equity investments	$	2,813		$	2,805		$	3,095
Deferred income taxes	25			—			—
Other	1,407			1,322			1,264
	$	4,245		$	4,127		$	4,359

Accrued liabilities:
Salaries and related	$	1,874		$	1,883		$	3,035
Benefits	3,945			3,864			4,655
Insurance obligations	1,893			1,730			1,629
Warranties	2,316			1,835			2,285
Income taxes	708			475			1,824
Other taxes	1,008			1,117			936
Acquisition-related contingent consideration	364			407			938
Other	595			731			1,433
	$	12,703		$	12,042		$	16,735

Other liabilities:
Postretirement benefits	$	7,678		$	7,662		$	11,976
Acquisition-related contingent consideration	1,642			1,732			3,046
Deferred income taxes	2,120			3,247			7,278
Uncertain tax positions	2,999			2,999			3,281
	$	14,439		$	15,640		$	25,581



	April 30, 2017			January 31, 2017			April 30, 2016
Accounts receivable, net:
Trade accounts	$	52,513		$	43,834		$	42,041
Allowance for doubtful accounts	(896		)	(691		)	(1,028		)
	$	51,617		$	43,143		$	41,013
Inventories:
Finished goods	$	5,385		$	5,438		$	4,570
In process	1,673			2,288			1,751
Materials	42,809			34,610			40,580
	$	49,867		$	42,336		$	46,901
Other current assets:
Insurance policy benefit	$	739		$	802		$	742
Federal tax receivable	206			604			1,265
Receivable from sale of business	14			28			205
Prepaid expenses and other	2,297			1,255			2,677
	$	3,256		$	2,689		$	4,889
Property, plant and equipment, net:
Held for use:
Land	$	3,054		$	3,054		$	3,054
Buildings and improvements	79,676			77,817			77,871
Machinery and equipment	143,405			142,471			141,274
Accumulated depreciation	(119,941		)	(117,018		)	(109,625		)
	$	106,194		$	106,324		$	112,574
Held for sale:
Land	$	—		$	—		$	244
Buildings and improvements	—			—			1,595
Machinery and equipment	—			—			329
Accumulated depreciation	—			—			(1,368		)
	—			—			800
	$	106,194		$	106,324		$	113,374
Other assets:
Equity investments	$	2,180		$	2,371		$	2,813
Deferred income taxes	17			18			25
Other	1,245			1,283			1,407
	$	3,442		$	3,672		$	4,245
Accrued liabilities:
Salaries and related	$	2,833		$	6,286		$	1,874
Benefits	4,090			3,960			3,945
Insurance obligations	2,532			2,400			1,893
Warranties	2,405			1,547			2,316
Income taxes	6,363			498			708
Other taxes	1,089			1,540			1,008
Acquisition-related contingent consideration	501			445			364
Other	2,051			1,379			595
	$	21,864		$	18,055		$	12,703
Other liabilities:
Postretirement benefits	$	8,076		$	8,054		$	7,678
Acquisition-related contingent consideration	1,238			1,397			1,642
Deferred income taxes	636			1,421			2,120
Uncertain tax positions	2,601			2,610			2,999
Other	175			214			—
	$	12,726		$	13,696		$	14,439



ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK



	Three Months Ended
	April 30, 2016			April 30, 2015
Service cost	$	20		$	108
Interest cost	83			105
Amortization of actuarial losses	37			84
Amortization of unrecognized prior service cost	(40		)	—
Net periodic benefit cost	$	100		$	297



	Three Months Ended
	April 30, 2016		April 30, 2015
Risk-free interest rate	1.05	%	1.34	%
Expected dividend yield	3.33	%	2.59	%
Expected volatility factor	32.61	%	36.81	%
Expected option term (in years)	4.00		3.75

Weighted average grant date fair value	$3.05		$4.78



	Three Months Ended
	April 30, 2017			April 30, 2016
Service cost	$	22		$	20
Interest cost	82			83
Amortization of actuarial losses	30			37
Amortization of unrecognized prior service cost (gains)	(40		)	(40		)
Net periodic benefit cost	$	94		$	100



	Three Months Ended
	April 30, 2017		April 30, 2016
Risk-free interest rate	1.68	%	1.05	%
Expected dividend yield	1.78	%	3.33	%
Expected volatility factor	33.87	%	32.61	%
Expected option term (in years)	4.25		4.00

Weighted average grant date fair value	$7.35		$3.05



●	The Company’s controls relating to the response to the risks of material misstatement were not effectively designed. This material weakness contributed to the following additional material weaknesses.
●	The Company’s controls over the accounting for goodwill and long-lived assets, including finite-lived intangible assets, were not effectively designed and maintained, specifically, the controls related to the identification of the proper unit of account as well as the development and review of assumptions used in interim and annual impairment tests. This control deficiency resulted in the restatement of the Company’s financial statements for the three- and nine-month periods ended October 31, 2015, the fiscal year ended January 31, 2016, and the three-month period ended April 30, 2016.
●	The Company’s controls related to the accounting for income taxes were not effectively designed and maintained, specifically the controls to assess that the income tax provision and related tax assets and liabilities are complete and accurate. This control deficiency resulted in adjustments to the income tax provision and related tax asset and liability accounts and related disclosures for the three- and nine-month periods ended October 31, 2015, the fiscal year ended January 31, 2016, and the three-month period ended April 30, 2016.
●	The Company’s controls over the existence of inventories were not effectively designed and maintained. Specifically, the controls to monitor that inventory subject to the cycle count program was counted at the frequency levels and accuracy rates required under the Company’s policy, and the controls to verify the existence of inventory held at third-party locations were not effectively designed and maintained. This control deficiency resulted in adjustments to the inventory and cost of sales accounts and disclosures for the three- and nine-month periods ended October 31, 2015 and the fiscal year ended January 31, 2016.
●	The Company’s controls over the completeness and accuracy of spreadsheets and system-generated reports used in internal control over financial reporting were not effectively designed and maintained.


▪	We have redesigned our specific procedures and controls associated with the identification of the proper unit of account.


▪	We have developed an enhanced risk assessment evaluation for the reporting unit for which a goodwill impairment analysis is being conducted.


▪	We have redesigned our controls associated with the development of a more precise revenue forecast for use in interim and annual impairment tests. For Aerostar, this specifically includes more precise contract-based revenue assumptions.



Period	Total number of shares purchased under the plan	Weighted average price paid per share (or unit)		Total amount purchased including commissions		Dollar value of shares (or units) that may be purchased under the plan
February 1 to February 29, 2016	—	$	—	$	—
March 1 to March 31, 2016	245,770	14.63		3,596,413
April 1 to April 30, 2016	136,295	15.45		2,106,435
Total as of and for the fiscal quarter ended April 30, 2016	382,065	$	14.93	$	5,702,848	$	14,959,331