Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 31, 2015 | Nov. 30, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | Titan Machinery Inc. | |
Entity Central Index Key | 1,409,171 | |
Document Type | 10-Q | |
Document Period End Date | Oct. 31, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --01-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 21,574,233 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
Current Assets | ||
Cash | $ 78,409 | $ 127,528 |
Receivables (net of allowance of $4,101 and $4,218 as of October 31, 2015 and January 31, 2015, respectively) | 69,390 | 76,382 |
Inventories | 813,840 | 879,440 |
Prepaid expenses and other | 7,300 | 10,634 |
Income taxes receivable | 2,888 | 166 |
Deferred income taxes | 18,487 | 19,025 |
Assets held for sale | 11,776 | 15,312 |
Total current assets | 1,002,090 | 1,128,487 |
Intangibles and Other Assets | ||
Intangible assets, net of accumulated amortization | 5,189 | 5,458 |
Other | 7,610 | 7,122 |
Total intangibles and other assets | 12,799 | 12,580 |
Property and Equipment, net of accumulated depreciation | 178,781 | 208,680 |
Total Assets | 1,193,670 | 1,349,747 |
Current Liabilities | ||
Accounts payable | 23,185 | 17,659 |
Floorplan payable | 546,586 | 627,249 |
Current maturities of long-term debt | 1,419 | 7,749 |
Customer deposits | 11,650 | 35,090 |
Accrued expenses | 28,024 | 35,496 |
Income taxes payable | 0 | 3,529 |
Liabilities held for sale | 2,855 | 2,835 |
Total current liabilities | 613,719 | 729,607 |
Long-Term Liabilities | ||
Senior convertible notes | 135,096 | 132,350 |
Long-term debt, less current maturities | 28,625 | 67,123 |
Deferred income taxes | 39,313 | 38,996 |
Other long-term liabilities | 3,083 | 3,312 |
Total long-term liabilities | $ 206,117 | $ 241,781 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Common stock, par value $.00001 per share, 45,000 shares authorized; 21,576 shares issued and outstanding at October 31, 2015; 21,406 shares issued and outstanding at January 31, 2015 | $ 0 | $ 0 |
Additional paid-in-capital | 242,149 | 240,180 |
Retained earnings | 134,576 | 137,418 |
Accumulated other comprehensive loss | (3,705) | (1,099) |
Total Titan Machinery Inc. stockholders' equity | 373,020 | 376,499 |
Noncontrolling interest | 814 | 1,860 |
Total stockholders' equity | 373,834 | 378,359 |
Total Liabilities and Stockholders' Equity | $ 1,193,670 | $ 1,349,747 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ (4,101) | $ (4,218) |
Common stock, par value, in dollars per share | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 45,000,000 | 45,000,000 |
Common stock, shares issued | 21,576,000 | 21,406,000 |
Common stock, shares outstanding | 21,576,000 | 21,406,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Revenue | ||||
Equipment | $ 215,692 | $ 343,482 | $ 681,691 | $ 1,008,614 |
Parts | 73,838 | 80,692 | 197,439 | 219,597 |
Service | 34,116 | 42,410 | 99,860 | 117,941 |
Rental and other | 21,329 | 26,557 | 53,371 | 63,442 |
Total Revenue | 344,975 | 493,141 | 1,032,361 | 1,409,594 |
Cost of Revenue | ||||
Equipment | 198,095 | 317,702 | 628,280 | 926,863 |
Parts | 51,673 | 56,402 | 138,626 | 154,146 |
Service | 12,449 | 15,037 | 36,136 | 42,969 |
Rental and other | 15,617 | 19,309 | 39,674 | 45,333 |
Total Cost of Revenue | 277,834 | 408,450 | 842,716 | 1,169,311 |
Gross Profit | 67,141 | 84,691 | 189,645 | 240,283 |
Operating Expenses | 53,484 | 69,459 | 165,979 | 208,406 |
Impairment and Realignment Costs | 22 | 0 | 1,519 | 2,952 |
Income from Operations | 13,635 | 15,232 | 22,147 | 28,925 |
Other Income (Expense) | ||||
Interest income and other income (expense) | 722 | (489) | (565) | (4,095) |
Floorplan interest expense | (4,602) | (5,444) | (13,945) | (15,345) |
Other interest expense | (4,041) | (3,586) | (11,228) | (10,586) |
Income (Loss) Before Income Taxes | 5,714 | 5,713 | (3,591) | (1,101) |
Provision for (Benefit from) Income Taxes | 2,231 | 3,400 | (354) | 4,254 |
Net Income (Loss) Including Noncontrolling Interest | 3,483 | 2,313 | (3,237) | (5,355) |
Less: Net Income (Loss) Attributable to Noncontrolling Interest | 27 | (157) | (395) | (662) |
Net Income (Loss) Attributable to Titan Machinery Inc. | 3,456 | 2,470 | (2,842) | (4,693) |
Net (Income) Loss Allocated to Participating Securities - Note 1 | (72) | (49) | 53 | 80 |
Net Income (Loss) Attributable to Titan Machinery Inc. Common Stockholders | $ 3,384 | $ 2,421 | $ (2,789) | $ (4,613) |
Earnings (Loss) per Share - Note 1 | ||||
Earnings (Loss) per Share - Basic, in dollars per share | $ 0.16 | $ 0.12 | $ (0.13) | $ (0.22) |
Earnings (Loss) per Share - Diluted, in dollars per share | $ 0.16 | $ 0.11 | $ (0.13) | $ (0.22) |
Weighted Average Common Shares - Basic | 21,129 | 20,994 | 21,093 | 20,977 |
Weighted Average Common Shares - Diluted | 21,218 | 21,102 | 21,093 | 20,977 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Net Income (Loss) Including Noncontrolling Interest | $ 3,483 | $ 2,313 | $ (3,237) | $ (5,355) |
Other Comprehensive Income (Loss) | ||||
Foreign currency translation adjustments | (100) | (3,351) | (3,829) | (3,505) |
Unrealized gain on net investment hedge derivative instruments, net of tax expense of $5 and $945 for the three months ended October 31, 2015 and 2014, respectively, and $133 and $975 for the nine months ended October 31, 2015 and 2014, respectively | 7 | 1,418 | 200 | 1,464 |
Unrealized loss on interest rate swap cash flow hedge derivative instrument, net of tax benefit of $321 and $442 for the three months ended October 31, 2015 and 2014, respectively, and $290 and $474 for the nine months ended October 31, 2015 and 2014, respectively | (482) | (664) | (436) | (710) |
Unrealized gain on foreign currency contract cash flow hedge derivative instruments, net of tax expense of $29 for the nine months ended October 31, 2014 | 0 | 0 | 0 | 44 |
Other comprehensive income (loss) | (253) | (2,484) | (3,257) | (2,574) |
Comprehensive Income (Loss) | 3,230 | (171) | (6,494) | (7,929) |
Comprehensive Income (Loss) Attributable to Noncontrolling Interest | (13) | (484) | (1,046) | (1,002) |
Comprehensive Income (Loss) Attributable To Titan Machinery Inc. | 3,243 | 313 | (5,448) | (6,927) |
Interest Rate Swap | ||||
Other Comprehensive Income (Loss) | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 320 | 90 | 798 | 90 |
Foreign Exchange Contract | ||||
Other Comprehensive Income (Loss) | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | $ 2 | $ 23 | $ 10 | $ 43 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Tax expense (benefit) on unrealized gain (loss) on net investment hedge derivative instruments | $ 5 | $ 945 | $ 133 | $ 975 |
Interest Rate Swap | ||||
Tax expense (benefit) on reclassification of gain (loss) on foreign currency contract cash flow hedge derivative instruments | (213) | (60) | (532) | (60) |
Foreign Exchange Contract | ||||
Tax expense (benefit) on reclassification of gain (loss) on foreign currency contract cash flow hedge derivative instruments | (2) | (15) | (7) | (29) |
Designated as Hedging Instrument | Interest Rate Contract | ||||
Tax expense (benefit) on unrealized gain (loss) on cash flow hedge derivative instruments | (321) | (442) | (290) | (474) |
Designated as Hedging Instrument | Cash Flow Hedges | ||||
Tax expense (benefit) on unrealized gain (loss) on cash flow hedge derivative instruments | $ 0 | $ 0 | $ 0 | $ 29 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Foreign Currency Translation Adjustments | Unrealized Gains (Losses) on Net Investment Hedges | Unrealized Gains (Losses) on Interest Rate Swap Cash Flow Hedges | Unrealized Gains (Losses) on Foreign Currency Contract Cash Flow Hedges | Accumulated Other Comprehensive Income (Loss) | Total Titan Machinery Inc. Stockholders' Equity | Noncontrolling Interest |
Balance at Jan. 31, 2014 | $ 411,342 | $ 238,857 | $ 169,575 | $ 1,541 | $ (339) | $ (737) | $ (126) | $ 339 | $ 408,771 | $ 2,571 | |
Balance (in shares) at Jan. 31, 2014 | 21,261 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Common stock issued on grant of restricted stock (net of forfeitures), exercise of stock options, and tax benefits of equity awards | (50) | (50) | (50) | ||||||||
Common stock issued on grant of restricted stock, exercise of stock options, and tax benefits of equity awards (in shares) | 150 | ||||||||||
Other | (82) | (502) | (502) | 420 | |||||||
Other (in shares) | 0 | ||||||||||
Stock-based compensation expense | 1,752 | 1,752 | 1,752 | 0 | |||||||
Comprehensive income (loss): | |||||||||||
Net loss | (5,355) | (4,693) | (4,693) | (662) | |||||||
Other comprehensive income (loss) | (2,574) | (3,165) | 1,464 | (620) | 87 | (2,234) | (2,234) | (340) | |||
Comprehensive Income (Loss) | (7,929) | (6,927) | (1,002) | ||||||||
Balance at Oct. 31, 2014 | 405,033 | 240,057 | 164,882 | (1,624) | 1,125 | (1,357) | (39) | (1,895) | 403,044 | 1,989 | |
Balance (in shares) at Oct. 31, 2014 | 21,411 | ||||||||||
Balance at Jan. 31, 2015 | 378,359 | 240,180 | 137,418 | (1,632) | 2,510 | (1,940) | (37) | (1,099) | 376,499 | 1,860 | |
Balance (in shares) at Jan. 31, 2015 | 21,406 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Common stock issued on grant of restricted stock (net of forfeitures), exercise of stock options, and tax benefits of equity awards | 170 | 170 | 170 | ||||||||
Common stock issued on grant of restricted stock, exercise of stock options, and tax benefits of equity awards (in shares) | 170 | ||||||||||
Stock-based compensation expense | 1,799 | 1,799 | 1,799 | ||||||||
Comprehensive income (loss): | |||||||||||
Net loss | (3,237) | (2,842) | (2,842) | (395) | |||||||
Other comprehensive income (loss) | (3,257) | (3,178) | 200 | 362 | 10 | (2,606) | (2,606) | (651) | |||
Comprehensive Income (Loss) | (6,494) | (5,448) | (1,046) | ||||||||
Balance at Oct. 31, 2015 | $ 373,834 | $ 242,149 | $ 134,576 | $ (4,810) | $ 2,710 | $ (1,578) | $ (27) | $ (3,705) | $ 373,020 | $ 814 | |
Balance (in shares) at Oct. 31, 2015 | 21,576 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Operating Activities | ||
Net loss including noncontrolling interest | $ (3,237) | $ (5,355) |
Adjustments to reconcile net loss including noncontrolling interest to net cash provided by (used for) operating activities | ||
Depreciation and amortization | 21,588 | 23,915 |
Impairment | 193 | 268 |
Deferred income taxes | 474 | 241 |
Stock-based compensation expense | 1,799 | 1,752 |
Noncash interest expense | 5,286 | 3,501 |
Unrealized foreign currency loss on loans to international subsidiaries | 778 | 2,676 |
Other, net | (649) | (109) |
Changes in assets and liabilities | ||
Increase (Decrease) in Other Current Assets | (9,828) | 4,981 |
Inventories | 72,437 | (2,448) |
Manufacturer floorplan payable | 124,305 | (68,489) |
Accounts payable, customer deposits, accrued expenses and other long-term liabilities | (27,845) | (31,734) |
Income taxes | (6,196) | (1,792) |
Net Cash Provided by (Used for) Operating Activities | 198,761 | (82,555) |
Investing Activities | ||
Rental fleet purchases | (292) | (502) |
Property and equipment purchases (excluding rental fleet) | (5,713) | (12,139) |
Proceeds from sale of property and equipment | 5,135 | 13,133 |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | (584) |
Proceeds upon settlement of net investment hedge derivative instruments | 337 | 3,359 |
Payments upon settlement of net investment hedge derivative instruments | (23) | (915) |
Other, net | 196 | 104 |
Net Cash Provided by (Used for) Investing Activities | (360) | 2,456 |
Financing Activities | ||
Net change in non-manufacturer floorplan payable | (201,320) | 83,232 |
Proceeds from long-term debt borrowings | 59,088 | 49,874 |
Principal payments on long-term debt | (101,465) | (16,153) |
Payments of Debt Issuance Costs | (3,381) | (251) |
Other, net | 143 | (132) |
Net Cash Provided by (Used for) Financing Activities | (246,935) | 116,570 |
Effect of Exchange Rate Changes on Cash | (585) | (491) |
Net Change in Cash | (49,119) | 35,980 |
Cash at Beginning of Period | 127,528 | 74,242 |
Cash at End of Period | 78,409 | 110,222 |
Cash paid during the period | ||
Income taxes, net of refunds | 5,283 | 5,799 |
Interest | 18,492 | 20,998 |
Supplemental Disclosures of Noncash Investing and Financing Activities | ||
Net property and equipment financed with long-term debt, accounts payable and accrued liabilities | 747 | 4,462 |
Long-term debt extinguished upon sale of property and equipment | 3,315 | 0 |
Net transfer of assets to (from) property and equipment from (to) inventories | $ (5,743) | $ 9,815 |
BUSINESS ACTIVITY AND SIGNIFICA
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Oct. 31, 2015 | |
Accounting Policies [Abstract] | |
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES | BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The unaudited consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The quarterly operating results for Titan Machinery Inc. (the “Company”) are subject to fluctuation due to varying weather patterns, which may impact the timing and amount of equipment purchases, rentals, and after-sales parts and service purchases by the Company’s Agriculture, Construction and International customers. Therefore, operating results for the nine -month period ended October 31, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending January 31, 2016 . The information contained in the balance sheet as of January 31, 2015 was derived from the audited financial statements for the Company for the year then ended. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Form 10-K for the fiscal year ended January 31, 2015 as filed with the SEC. Nature of Business The Company is engaged in the retail sale, service and rental of agricultural and construction machinery through its stores in the United States and Europe. The Company’s North American stores are located in Arizona, Colorado, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, South Dakota, Wisconsin and Wyoming, and its European stores are located in Bulgaria, Romania, Serbia and Ukraine. Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates, particularly related to realization of inventory, initial valuation and impairment of intangible assets, collectability of receivables, and income taxes. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All material accounts, transactions and profits between the consolidated companies have been eliminated in consolidation. Earnings (Loss) Per Share (“EPS”) The Company uses the two-class method to calculate basic and diluted EPS. Unvested restricted stock awards are considered participating securities because they entitle holders to non-forfeitable rights to dividends during the vesting term. Under the two-class method, basic EPS were computed by dividing net income (loss) attributable to Titan Machinery Inc. after allocation of income (loss) to participating securities by the weighted-average number of shares of common stock outstanding during the year. Diluted EPS were computed by dividing net income (loss) attributable to Titan Machinery Inc. after allocation of income (loss) to participating securities by the weighted-average shares of common stock outstanding after adjusting for potential dilution related to the conversion of all dilutive securities into common stock. All potentially dilutive securities were included in the computation of diluted EPS. There were approximately 89,000 and 104,000 stock options outstanding that were excluded from the computation of diluted EPS for the three months ended October 31, 2015 and 2014 , respectively, because they were anti-dilutive. There were approximately 191,000 and 219,000 stock options outstanding that were excluded from the computation of diluted EPS for the nine months ended October 31, 2015 and 2014 , respectively, because they were anti-dilutive. None of the approximately 3,474,000 shares underlying the Company’s senior convertible notes were included in the computation of diluted EPS because the Company’s average stock price was less than the conversion price of $43.17 . The following table sets forth the calculation of the denominator for basic and diluted EPS: Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 (in thousands, except per share data) (in thousands, except per share data) Basic Weighted-Average Common Shares Outstanding 21,129 20,994 21,093 20,977 Plus: Incremental Shares From Assumed Exercise of Stock Options 89 108 — — Diluted Weighted-Average Common Shares Outstanding 21,218 21,102 21,093 20,977 Earnings (Loss) per Share - Basic $ 0.16 $ 0.12 $ (0.13 ) $ (0.22 ) Earnings (Loss) per Share - Diluted $ 0.16 $ 0.11 $ (0.13 ) $ (0.22 ) Recent Accounting Guidance In May 2014 and August 2015, the FASB issued authoritative guidance on accounting for revenue recognition, codified in ASC 606, Revenue from Contracts with Customers . This guidance supersedes the revenue recognition requirements in ASC 605, Revenue Recognition . This guidance is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The Company will adopt this guidance on February 1, 2018, and will employ one of the two retrospective application methods. The Company has not determined the potential effects adoption of this standard will have on the consolidated financial statements. In August 2014, the FASB issued authoritative guidance on management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and provide related footnote disclosures, codified in ASC 205-40, Going Concern . The guidance provides a definition of the term substantial doubt, requires an evaluation every reporting period including interim periods, provides principles for considering the mitigating effect of management’s plans, requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, requires an express statement and other disclosures when substantial doubt is not alleviated, and requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The Company will adopt this guidance for the year-ended January 31, 2017, and it will apply to each interim and annual period thereafter. Its adoption is not expected to have a material effect on the Company's consolidated financial statements. In April 2015, the FASB amended authoritative guidance on debt issuance costs, codified in ASC 835-30, Imputation of Interest. The amended guidance changes the balance sheet presentation of debt issuance costs to be a direct deduction from the related debt liability rather than an asset. This guidance is effective for the Company on February 1, 2016, with early adoption permitted. As of October 31, 2015, the Company had debt issuance costs associated with its senior convertible notes and lines of credit that are classified as noncurrent other assets, which upon adoption will be classified as a reduction from the respective liability balances. Its adoption will not have any impact on the Company's consolidated statements of operations. In July 2015, the FASB amended authoritative guidance on accounting for measurement of inventory, codified in ASC 330, Inventory. The amended guidance requires inventory to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance is effective for the Company on February 1, 2017, with early adoption permitted. The Company has not determined the potential effects adoption of this standard will have on the consolidated financial statements. In September 2015, the FASB amended authoritative guidance on adjustments to provisional estimates used in accounting for business combinations, codified in ASC 805, Business Combinations. The amended guidance requires an acquirer to recognize, in the reporting period in which the adjustment amounts are determined, adjustments to provisional amounts and the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amended guidance also requires presentation of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date, either separately on the face of the income statement or disclosed in the notes. This guidance is effective for the Company on February 1, 2016, with early adoption permitted. Its adoption will not have any impact on the Company's consolidated statements of operations. In November 2015, the FASB amended authoritative guidance on the balance sheet classification of deferred taxes, codified in ASC 740, Income Taxes . The amended guidance requires that all deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet. This guidance is effective for the Company on February 1, 2017, with early adoption permitted. As of October 31, 2015, the Company had deferred taxes that are classified as current assets and noncurrent liabilities, which upon adoption will be presented as a net amount and classified as noncurrent in its consolidated balance sheets. Its adoption will not have any impact on the Company's consolidated statements of operations. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Oct. 31, 2015 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES October 31, 2015 January 31, 2015 (in thousands) New equipment $ 420,523 $ 442,984 Used equipment 289,336 318,308 Parts and attachments 90,861 107,893 Work in process 13,120 10,255 $ 813,840 $ 879,440 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Oct. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT October 31, 2015 January 31, 2015 (in thousands) Rental fleet equipment $ 137,749 $ 148,198 Machinery and equipment 23,899 24,071 Vehicles 36,927 43,435 Furniture and fixtures 38,766 39,421 Land, buildings, and leasehold improvements 55,745 57,630 293,086 312,755 Less accumulated depreciation (114,305 ) (104,075 ) $ 178,781 $ 208,680 |
LINES OF CREDIT _ FLOORPLAN PAY
LINES OF CREDIT / FLOORPLAN PAYABLE | 9 Months Ended |
Oct. 31, 2015 | |
Line of Credit Facility [Abstract] | |
LINES OF CREDIT / FLOORPLAN PAYABLE | LINES OF CREDIT / FLOORPLAN PAYABLE Floorplan Lines of Credit Floorplan payable balances reflect the amount owed for new equipment inventory purchased from a manufacturer and for used equipment inventory, which is primarily acquired through trade-in on equipment sales. Certain of the manufacturers from which the Company purchases new equipment inventory offer financing on these purchases, either offered directly from the manufacturer or through the manufacturers’ captive finance subsidiaries. CNH Industrial America LLC's captive finance subsidiary, CNH Industrial Capital America LLC ("CNH Industrial Capital"), also provides financing of used equipment inventory. The Company also has floorplan payable balances with non-manufacturer lenders for new and used equipment inventory. Cash flows associated with manufacturer floorplan payable are reported as operating cash flows while cash flows associated with in non-manufacturer floorplan payable are reported as financing cash flows in the Company's consolidated statements of cash flows. The Company has three significant floorplan lines of credit, credit facilities related to its foreign subsidiaries, and other floorplan payable balances with non-manufacturer lenders and manufacturers other than CNH Industrial. On October 28, 2015, the Company entered into a Second Amended and Restated Credit Agreement (the "Credit Facility") with a group of banks led by Wells Fargo Bank, National Association ("Wells Fargo"), that amended and restated the Company’s $362.5 million credit facility dated March 30, 2012. The Credit Facility provides for a secured credit facility in an amount up to $350.0 million , consisting of a $275.0 million floorplan facility (the “Floorplan Line”) and a $75.0 million revolving credit facility (the “Working Capital Revolver Line”), and changed the interest rates and financial covenants, amongst other things. The amounts available under the Credit Facility are subject to base calculations and reduced by outstanding standby letters of credit. The Credit Facility has a variable interest rate on outstanding balances, has a 0.25% to 0.375% non-usage fee on the average monthly unused amount (replacing the previous non-usage fee of 0.3% to 0.4% ), and requires monthly payments of accrued interest. The Company elects at the time of any advance to choose a Base Rate Loan or a LIBOR Rate Loan. The LIBOR Rate is for the duration of one month, two month, or three month LIBOR rate at the time of the loan, as chosen by the Company. The Base Rate is the greatest of (a) the Federal Funds Rate plus 0.5% , (b) the one month LIBOR Rate plus 1% , and (c) the prime rate of interest announced, from time to time, within Wells Fargo. The applicable margin rate is determined based on excess availability under the Credit Facility and ranges from 0.75% to 1.5% for Base Rate Loans and 1.75% to 2.50% for LIBOR Rate Loans, and replaces the previous interest rate of LIBOR plus an applicable margin of 1.5% to 3.125% . The Credit Facility is secured by all our assets and requires the Company to maintain a fixed charge coverage ratio (the "FCCR") of at least 1.1 if adjusted excess availability plus eligible cash collateral is less than 15% of the total amount of the credit facility. The Credit Agreement does not obligate the Company to maintain other financial covenants, removing the previous financial covenants related to minimum consolidated pre-tax income, minimum consolidated fixed charge coverage ratio, and a maximum consolidated net leverage ratio. The Credit Facility also includes various non-financial covenants, including, under certain conditions, restricting the Company’s ability to make certain cash payments, including for cash dividends and stock repurchases, restricting the Company’s ability to issue equity instruments, restricting the Company’s ability to complete acquisitions or divestitures, and limiting the Company's ability to incur new indebtedness. The Credit Facility matures on the earlier of October 28, 2020 or the date that is six months prior to maturity of the Company's existing senior convertible notes unless on such date certain financial covenant tests are met as described in the Credit Agreement. As a result of this amendment, the Company wrote-off $1.0 million of capitalized debt issuance costs in October 2015. The Floorplan Line under the Credit Facility is used to finance equipment inventory purchases. Amounts outstanding are recorded as floorplan payable, within current liabilities on the consolidated balance sheets, as the Company intends to repay amounts borrowed within one year. The Working Capital Revolver Line under the Credit Facility is used to finance rental fleet equipment and for general working capital requirements of the Company. Amounts outstanding are recorded as long-term debt, within long-term liabilities on the consolidated balance sheets, as the Company does not have the intention or obligation to repay amounts borrowed within one year. Effective September 1, 2015, the Company amended its credit facility with Agricredit Acceptance LLC. The amendment reduced the available lines of credit from $200.0 million to $172.0 million and changed the interest rate on outstanding balances from three-month LIBOR plus an applicable margin of 4.75% to 5.25% to one-month LIBOR plus an applicable margin of 4.86% to 5.36% , amongst other things. As of October 31, 2015 , the Company had discretionary floorplan lines of credit for equipment inventory purchases totaling approximately $1.0 billion , which includes the aforementioned $275.0 million Floorplan Line with Wells Fargo, a $450.0 million credit facility with CNH Industrial Capital, a $172.0 million credit facility with Agricredit Acceptance LLC and the U.S. dollar equivalent of $116.1 million in credit facilities related to our foreign subsidiaries. Floorplan payables relating to these credit facilities totaled approximately $531.3 million of the total floorplan payable balance of $546.6 million outstanding as of October 31, 2015 and $594.1 million of the total floorplan payable balance of $627.2 million outstanding as of January 31, 2015 ; the remaining outstanding balances relate to equipment inventory financing from manufacturers and non-manufacturer lenders other than the aforementioned lines of credit. As of October 31, 2015 , the interest-bearing U.S. floorplan payables carried various interest rates primarily ranging from 2.44% to 5.05% , and the foreign floorplan payables carried various interest rates primarily ranging from 1.87% to 12.00% . The Company was not subject to the FCCR covenant under the Wells Fargo Credit Facility as of October 31, 2015 . Working Capital Revolver Line As of October 31, 2015 , the Company had a $75 million Working Capital Revolver Line under the Credit Facility with Wells Fargo. The Company had $14.7 million and $18.7 million outstanding on this Working Capital Revolver Line as of October 31, 2015 and January 31, 2015 , respectively. |
SENIOR CONVERTIBLE NOTES
SENIOR CONVERTIBLE NOTES | 9 Months Ended |
Oct. 31, 2015 | |
Senior Convertible Notes | |
SENIOR CONVERTIBLE NOTES | |
SENIOR CONVERTIBLE NOTES | SENIOR CONVERTIBLE NOTES The Company’s 3.75% Senior Convertible Notes issued on April 24, 2012 (“Convertible Notes”) consisted of the following: October 31, 2015 January 31, 2015 (in thousands except conversion rate and conversion price) Principal value $ 150,000 $ 150,000 Unamortized debt discount (14,904 ) (17,650 ) Carrying value of senior convertible notes $ 135,096 $ 132,350 Carrying value of equity component, net of deferred taxes $ 15,546 $ 15,546 Conversion rate (shares of common stock per $1,000 principal amount of notes) 23.1626 Conversion price (per share of common stock) $ 43.17 The Company recognized interest expense associated with its Senior Convertible Notes as follows: Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 (in thousands) (in thousands) Cash Interest Expense Coupon interest expense $ 1,406 $ 1,406 $ 4,219 $ 4,219 Noncash Interest Expense Amortization of debt discount 925 864 2,745 2,563 Amortization of transaction costs 138 135 412 402 $ 2,469 $ 2,405 $ 7,376 $ 7,184 The Senior Convertible Notes mature on May 1, 2019, unless earlier purchased by the Company, redeemed or converted. As of October 31, 2015 , the unamortized debt discount will be amortized over a remaining period of approximately 3.5 years . As of October 31, 2015 and January 31, 2015 , the if-converted value of the Senior Convertible Notes did not exceed the principal balance. The effective interest rate of the liability component was equal to 7.0% for each of the statements of operations periods presented. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Oct. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS The Company holds derivative instruments for the purpose of minimizing exposure to fluctuations in foreign currency exchange rates to which the Company is exposed in the normal course of its operations. Net Investment Hedges To protect the value of the Company’s investments in its foreign operations against adverse changes in foreign currency exchange rates, the Company may, from time to time, hedge a portion of its net investment in one or more of its foreign subsidiaries. Gains and losses on derivative instruments that are designated and effective as a net investment hedge are included in other comprehensive income and only reclassified into earnings in the period during which the hedged net investment is sold or liquidated. Any hedge ineffectiveness is recognized in earnings immediately. Cash Flow Hedges On October 9, 2013, the Company entered into a forward-starting interest rate swap instrument which has a notional amount of $100.0 million , an effective date of September 30, 2014 and a maturity date of September 30, 2018. The objective of the instrument is to, beginning on September 30, 2014, protect the Company from changes in benchmark interest rates to which the Company is exposed through certain of its variable interest rate credit facilities. The instrument provides for a fixed interest rate of 1.901% up to the maturity date. The Company may, from time to time, hedge foreign currency exchange rate risk arising from inventory purchases denominated in Canadian dollars through the use of foreign currency forward contracts. The maximum length of time over which the Company hedges its exposure to the variability in future cash flows associated with the Canadian dollar purchasing is less than 12 months. The interest rate swap instrument and foreign currency contracts have been designated as cash flow hedging instruments and accordingly changes in the effective portion of the fair value of the instruments are recorded in other comprehensive income and only reclassified into earnings in the period(s) in which the related hedged item affects earnings or the anticipated underlying hedged transactions are no longer probable of occurring. Any hedge ineffectiveness is recognized in earnings immediately. Derivative Instruments Not Designated as Hedging Instruments The Company uses foreign currency forward contracts to hedge the effects of fluctuations in exchange rates on outstanding intercompany loans. The Company does not formally designate and document such derivative instruments as hedging instruments; however, the instruments are an effective economic hedge of the underlying foreign currency exposure. Both the gain or loss on the derivative instrument and the offsetting gain or loss on the underlying intercompany loan are recognized in earnings immediately, thereby eliminating or reducing the impact of foreign currency exchange rate fluctuations on net income. The following table sets forth the notional value of the Company's outstanding derivative instruments. Notional Amount as of: October 31, 2015 January 31, 2015 (in thousands) Net investment hedge: Foreign currency contracts $ — $ 14,223 Cash flow hedges: Interest rate swap 100,000 100,000 Foreign currency contracts — — Derivatives not designated as hedging instruments: Foreign currency contracts 19,090 30,030 The following table sets forth the fair value of the Company’s outstanding derivative instruments. Fair Value as of: Balance Sheet Location October 31, 2015 January 31, 2015 (in thousands) Liability Derivatives: Derivatives designated as hedging instruments: Net investment hedges: Foreign currency contracts $ — $ 19 Accrued expenses Cash flow hedges: Interest rate swap 2,662 3,233 Accrued expenses Derivatives not designated as hedging instruments: Foreign currency contracts 76 17 Accrued expenses Total Liability Derivatives $ 2,738 $ 3,269 The following table sets forth the gains and losses (before the related income tax effects) recognized in other comprehensive income (loss) ("OCI") and income (loss) related to the Company’s derivative instruments for the three and nine months ended October 31, 2015 and 2014 , respectively. Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 OCI Income (Loss) OCI Income (Loss) OCI Income (Loss) OCI Income (Loss) Statements of Operations Classification (in thousands) (in thousands) Dervatives Designated as Hedging Instruments: Net investment hedges: Foreign currency contracts $ 12 $ — $ 2,363 $ — $ 333 $ — $ 2,439 $ — N/A Cash flow hedges: Interest rate swap (a) (803 ) (446 ) (1,106 ) (150 ) (727 ) (1,330 ) (1,184 ) (150 ) Floorplan interest expense / Interest income and other income (expense) Foreign currency contracts — (4 ) — (37 ) — (17 ) 73 (72 ) Cost of revenue - equipment Dervatives Not Designated as Hedging Instruments: Foreign currency contracts — (54 ) — 2,436 — 751 — 2,582 Interest income and other income (expense) Total Derivatives $ (791 ) $ (504 ) $ 1,257 $ 2,249 $ (394 ) $ (596 ) $ 1,328 $ 2,360 (a) Included in the Income (Loss) amounts under the Company's interest rate swap is hedge ineffectiveness gain of $0.1 million for the three months ended October 31, 2015 . There was no hedge ineffectiveness for the nine months ended October 31, 2015 or for the three and nine months ended October 31, 2014 . This amount was recorded in interest income and other income (expense) in the consolidated statements of operations. The remaining amounts for the three and nine months ended October 31, 2015 are reclassification amounts from accumulated other comprehensive income and are recorded in floorplan interest expense in the consolidated statements of operations. No components of the Company's net investment or cash flow hedging instruments were excluded from the assessment of hedge ineffectiveness. As of October 31, 2015 , the Company had $2.6 million in pre-tax net unrealized losses associated with its interest rate swap cash flow hedging instrument recorded in accumulated other comprehensive income. The Company expects that $0.7 million of pre-tax unrealized losses associated with its interest rate swap will be reclassified into income over the next 12 months. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Oct. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS The liabilities which are measured at fair value on a recurring basis as of October 31, 2015 and January 31, 2015 are as follows: October 31, 2015 January 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in thousands) (in thousands) Financial Liabilities Interest rate swap $ — $ 2,662 $ — $ 2,662 $ — $ 3,233 $ — $ 3,233 Foreign currency contracts — 76 — 76 — 36 — 36 Total Financial Liabilities $ — $ 2,738 $ — $ 2,738 $ — $ 3,269 $ — $ 3,269 The valuation for the Company's foreign currency contracts and interest rate swap derivative instruments were valued using discounted cash flow analyses, an income approach, utilizing readily observable market data as inputs. The Company also has financial instruments that are not recorded at fair value in its consolidated financial statements. The carrying amount of cash, receivables, payables, short-term debt and other current liabilities approximates fair value because of the short maturity and/or frequent repricing of those instruments, which are Level 2 fair value inputs. Based upon current borrowing rates with similar maturities, which are Level 2 fair value inputs, the carrying value of long-term debt approximates the fair value as of October 31, 2015 and January 31, 2015 , respectively. The following table provides details on the Senior Convertible Notes as of October 31, 2015 and January 31, 2015 . The difference between the face value and the carrying value of these notes is the result of the allocation between the debt and equity components. Fair value of the Senior Convertible Notes was estimated based on Level 2 fair value inputs. October 31, 2015 January 31, 2015 Estimated Fair Value Carrying Value Face Value Estimated Fair Value Carrying Value Face Value (in thousands) (in thousands) Senior convertible notes $ 115,772 $ 135,096 $ 150,000 $ 111,273 $ 132,350 $ 150,000 |
SEGMENT INFORMATION AND OPERATI
SEGMENT INFORMATION AND OPERATING RESULTS | 9 Months Ended |
Oct. 31, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION AND OPERATING RESULTS | SEGMENT INFORMATION AND OPERATING RESULTS The Company has three reportable segments: Agriculture, Construction and International. During the three months ended April 30, 2015, the Company made changes to its internal financial reporting, primarily related to the elimination of transactions within a segment. Previously, the segment results were reported at gross amounts with eliminations reported separately to reconcile to consolidated financial results. During the three months ended April 30, 2015, the Company began reporting these eliminations within the segments to which they relate. The financial information as of January 31, 2015 and for the three and nine months ended October 31, 2014 have been reclassified for comparability with the current year presentation. Revenue between segments is immaterial. The Company retains various unallocated income/(expense) items and assets at the general corporate level, which the Company refers to as “Shared Resources” in the table below. Shared Resources assets primarily consist of cash, deferred tax assets and property and equipment. Certain financial information for each of the Company’s business segments is set forth below. Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 (in thousands) (in thousands) Revenue Agriculture $ 211,302 $ 341,547 $ 660,606 $ 991,649 Construction 87,023 98,246 249,601 291,758 International 46,650 53,348 122,154 126,187 Total $ 344,975 $ 493,141 $ 1,032,361 $ 1,409,594 Income (Loss) Before Income Taxes Agriculture $ 4,219 $ 6,134 $ 693 $ 16,133 Construction 1,413 15 (3,089 ) (6,346 ) International 351 (1,407 ) (3,074 ) (11,688 ) Segment income (loss) before income taxes 5,983 4,742 (5,470 ) (1,901 ) Shared Resources (269 ) 971 1,879 800 Income (Loss) Before Income Taxes $ 5,714 $ 5,713 $ (3,591 ) $ (1,101 ) October 31, 2015 January 31, 2015 (in thousands) Total Assets Agriculture $ 607,823 $ 734,894 Construction 327,466 393,573 International 128,244 152,587 Segment assets 1,063,533 1,281,054 Shared Resources 130,137 68,693 Total $ 1,193,670 $ 1,349,747 |
STORE CLOSINGS AND REALIGNMENT
STORE CLOSINGS AND REALIGNMENT COST | 9 Months Ended |
Oct. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
STORE CLOSINGS AND REALIGNMENT COSTS | STORE CLOSINGS AND REALIGNMENT COSTS To better align the Company's cost structure and re-balance staffing levels with the evolving needs of the business, in March 2015, the Company approved a realignment plan that reduced its headcount by approximately 14% , which included headcount reductions at stores in each of its operating segments and its Shared Resource Center, as well as from the closing of three Agriculture stores and one Construction store. The Company's remaining stores in each of the respective areas assumed the distribution rights for the CNH Industrial brand previously held by the closed stores. The Company estimates the total cost of these activities to be approximately $2.0 million , comprised of an accrual for the net present value of remaining lease obligations, employee severance costs, impairment of certain fixed assets and costs associated with relocation of assets from the closed stores. The Company recognized approximately $0.1 million in realignment costs primarily in its International segment in its fourth quarter ended January 31, 2015, and recognized $1.5 million in the nine months ended October 31, 2015 . To better align its Construction business in certain markets, in April 2014, the Company reduced its Construction-related headcount by approximately 12% primarily through the closing of seven underperforming Construction stores, staff reductions at other dealerships and reductions in support staff at its Shared Resource Center. The Company also closed one Agriculture store. The Company's remaining stores in each of the respective areas assumed the majority of the distribution rights for the CNH Industrial brand previously held by the closed stores. The majority of the assets of the closed stores were redeployed to other store locations. Certain inventory items which are not sold by any of our remaining stores were sold at auction. The inventory markdown attributable to such items are included in the exit cost summary below. The Company incurred $3.4 million in exit costs in the nine months ended October 31, 2014 . No additional amounts are expected to be incurred related to the closing of these stores, exclusive of any changes in lease termination accrual assumptions. The following summarizes the exit costs associated with the aforementioned store closings and realignment activities: Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 Income Statement Classification (in thousands) (in thousands) Construction Segment Lease termination costs $ (38 ) $ — $ 223 $ 1,511 Impairment and Realignment Costs Employee severance costs (15 ) — 225 451 Impairment and Realignment Costs Impairment of fixed assets, net of gains on asset disposition — — 10 (60 ) Impairment and Realignment Costs Asset relocation and other closing costs (34 ) — 34 362 Impairment and Realignment Costs $ (87 ) $ — $ 492 $ 2,264 Agriculture Segment Lease termination costs $ 46 $ — $ 137 $ 148 Impairment and Realignment Costs Employee severance costs 29 — 362 71 Impairment and Realignment Costs Impairment of fixed assets, net of gains on asset disposition 10 — 106 85 Impairment and Realignment Costs Asset relocation and other closing costs (5 ) — 88 84 Impairment and Realignment Costs Inventory cost adjustments — — — 471 Equipment Cost of Sales $ 80 $ — $ 693 $ 859 Shared Resource Center Lease termination costs $ (12 ) $ — $ 37 $ — Impairment and Realignment Costs Employee severance costs — — 187 300 Impairment and Realignment Costs Impairment of fixed assets, net of gains on asset disposition 41 — 110 — Impairment and Realignment Costs $ 29 $ — $ 334 $ 300 Total Lease termination costs $ (4 ) $ — $ 397 $ 1,659 Impairment and Realignment Costs Employee severance costs 14 — 774 822 Impairment and Realignment Costs Impairment of fixed assets, net of gains on asset disposition 51 — 226 25 Impairment and Realignment Costs Asset relocation and other closing costs (39 ) — 122 446 Impairment and Realignment Costs Inventory cost adjustments — — — 471 Equipment Cost of Sales $ 22 $ — $ 1,519 $ 3,423 — A reconciliation of the beginning and ending exit cost liability balance, which is included in accrued expenses in the consolidated balance sheets, follows: Amount (in thousands) Balance, January 31, 2015 $ 1,706 Exit costs incurred and charged to expense Lease termination costs 397 Employee severance costs 774 Exit costs paid Lease termination costs (555 ) Employee severance costs (774 ) Balance, October 31, 2015 $ 1,548 |
HELD FOR SALE
HELD FOR SALE | 9 Months Ended |
Oct. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
HELD FOR SALE | HELD FOR SALE The assets and liabilities which are held for sale are presented in the following table: October 31, 2015 January 31, 2015 (in thousands) Assets Held for Sale Receivables $ 54 $ 147 Inventories New equipment 3,523 6,269 Used equipment 2,541 3,973 Parts and attachments 450 920 Work in process 37 65 Total inventories 6,551 11,227 Property and equipment Machinery and equipment 39 114 Vehicles 75 155 Furniture and fixtures 21 57 Land, buildings, and leasehold improvements 5,036 3,612 Total property and equipment 5,171 3,938 $ 11,776 $ 15,312 Liabilities Held for Sale Accounts payable $ 58 $ 151 Floorplan payable 2,796 1,771 Customer deposits 1 913 $ 2,855 $ 2,835 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company incurs a provision for income taxes in jurisdictions in which it has taxable income. Generally the Company receives a benefit for income taxes in jurisdictions in which it has taxable losses unless it has recorded a valuation allowance for that jurisdiction. These losses are available to reduce future taxable income in these jurisdictions if earned within the allowable net operating loss carryforward period. The foreign jurisdictions in which the Company operates have net operating loss carryforward periods ranging from five to seven years, with certain jurisdictions having indefinite carryforward periods. The components of income (loss) before income taxes are as follows: Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 (in thousands) (in thousands) U.S. $ 5,363 $ 7,097 $ (521 ) $ 10,696 Foreign 351 (1,384 ) (3,070 ) (11,797 ) Total $ 5,714 $ 5,713 $ (3,591 ) $ (1,101 ) A reconciliation of the statutory federal income tax rate to the Company's effective income tax rate is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 U.S. statutory rate 35.0 % 35.0 % (35.0 )% (35.0 )% Foreign statutory rates (0.2 )% 9.9 % 22.4 % 233.5 % State taxes on income net of federal tax benefit 4.2 % 4.9 % (4.2 )% (4.9 )% Change in valuation allowance (11.1 )% 8.5 % 27.8 % 458.5 % Tax effect of Ukrainian hryvnia devaluation (a) 6.4 % (6.5 )% (13.3 )% (296.4 )% All other, net 4.7 % 7.7 % (7.6 )% 30.7 % 39.0 % 59.5 % (9.9 )% 386.4 % (a) Represents the tax impact of differences in foreign currency losses recognized as the result of Ukrianian hryvnia devaluation between Ukrainian taxable income (loss) and financial reporting income (loss). |
BUSINESS ACTIVITY AND SIGNIFI20
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Oct. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The quarterly operating results for Titan Machinery Inc. (the “Company”) are subject to fluctuation due to varying weather patterns, which may impact the timing and amount of equipment purchases, rentals, and after-sales parts and service purchases by the Company’s Agriculture, Construction and International customers. Therefore, operating results for the nine -month period ended October 31, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending January 31, 2016 . The information contained in the balance sheet as of January 31, 2015 was derived from the audited financial statements for the Company for the year then ended. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Form 10-K for the fiscal year ended January 31, 2015 as filed with the SEC. |
Estimates | Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates, particularly related to realization of inventory, initial valuation and impairment of intangible assets, collectability of receivables, and income taxes. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All material accounts, transactions and profits between the consolidated companies have been eliminated in consolidation. |
Earnings (Loss) Per Share (EPS) | Earnings (Loss) Per Share (“EPS”) The Company uses the two-class method to calculate basic and diluted EPS. Unvested restricted stock awards are considered participating securities because they entitle holders to non-forfeitable rights to dividends during the vesting term. Under the two-class method, basic EPS were computed by dividing net income (loss) attributable to Titan Machinery Inc. after allocation of income (loss) to participating securities by the weighted-average number of shares of common stock outstanding during the year. Diluted EPS were computed by dividing net income (loss) attributable to Titan Machinery Inc. after allocation of income (loss) to participating securities by the weighted-average shares of common stock outstanding after adjusting for potential dilution related to the conversion of all dilutive securities into common stock. All potentially dilutive securities were included in the computation of diluted EPS. |
New Accounting Pronouncements | Recent Accounting Guidance In May 2014 and August 2015, the FASB issued authoritative guidance on accounting for revenue recognition, codified in ASC 606, Revenue from Contracts with Customers . This guidance supersedes the revenue recognition requirements in ASC 605, Revenue Recognition . This guidance is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The Company will adopt this guidance on February 1, 2018, and will employ one of the two retrospective application methods. The Company has not determined the potential effects adoption of this standard will have on the consolidated financial statements. In August 2014, the FASB issued authoritative guidance on management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and provide related footnote disclosures, codified in ASC 205-40, Going Concern . The guidance provides a definition of the term substantial doubt, requires an evaluation every reporting period including interim periods, provides principles for considering the mitigating effect of management’s plans, requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, requires an express statement and other disclosures when substantial doubt is not alleviated, and requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The Company will adopt this guidance for the year-ended January 31, 2017, and it will apply to each interim and annual period thereafter. Its adoption is not expected to have a material effect on the Company's consolidated financial statements. In April 2015, the FASB amended authoritative guidance on debt issuance costs, codified in ASC 835-30, Imputation of Interest. The amended guidance changes the balance sheet presentation of debt issuance costs to be a direct deduction from the related debt liability rather than an asset. This guidance is effective for the Company on February 1, 2016, with early adoption permitted. As of October 31, 2015, the Company had debt issuance costs associated with its senior convertible notes and lines of credit that are classified as noncurrent other assets, which upon adoption will be classified as a reduction from the respective liability balances. Its adoption will not have any impact on the Company's consolidated statements of operations. In July 2015, the FASB amended authoritative guidance on accounting for measurement of inventory, codified in ASC 330, Inventory. The amended guidance requires inventory to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance is effective for the Company on February 1, 2017, with early adoption permitted. The Company has not determined the potential effects adoption of this standard will have on the consolidated financial statements. In September 2015, the FASB amended authoritative guidance on adjustments to provisional estimates used in accounting for business combinations, codified in ASC 805, Business Combinations. The amended guidance requires an acquirer to recognize, in the reporting period in which the adjustment amounts are determined, adjustments to provisional amounts and the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amended guidance also requires presentation of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date, either separately on the face of the income statement or disclosed in the notes. This guidance is effective for the Company on February 1, 2016, with early adoption permitted. Its adoption will not have any impact on the Company's consolidated statements of operations. In November 2015, the FASB amended authoritative guidance on the balance sheet classification of deferred taxes, codified in ASC 740, Income Taxes . The amended guidance requires that all deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet. This guidance is effective for the Company on February 1, 2017, with early adoption permitted. As of October 31, 2015, the Company had deferred taxes that are classified as current assets and noncurrent liabilities, which upon adoption will be presented as a net amount and classified as noncurrent in its consolidated balance sheets. Its adoption will not have any impact on the Company's consolidated statements of operations. |
BUSINESS ACTIVITY AND SIGNIFI21
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of calculation of basic and diluted EPS | The following table sets forth the calculation of the denominator for basic and diluted EPS: Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 (in thousands, except per share data) (in thousands, except per share data) Basic Weighted-Average Common Shares Outstanding 21,129 20,994 21,093 20,977 Plus: Incremental Shares From Assumed Exercise of Stock Options 89 108 — — Diluted Weighted-Average Common Shares Outstanding 21,218 21,102 21,093 20,977 Earnings (Loss) per Share - Basic $ 0.16 $ 0.12 $ (0.13 ) $ (0.22 ) Earnings (Loss) per Share - Diluted $ 0.16 $ 0.11 $ (0.13 ) $ (0.22 ) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | October 31, 2015 January 31, 2015 (in thousands) New equipment $ 420,523 $ 442,984 Used equipment 289,336 318,308 Parts and attachments 90,861 107,893 Work in process 13,120 10,255 $ 813,840 $ 879,440 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | October 31, 2015 January 31, 2015 (in thousands) Rental fleet equipment $ 137,749 $ 148,198 Machinery and equipment 23,899 24,071 Vehicles 36,927 43,435 Furniture and fixtures 38,766 39,421 Land, buildings, and leasehold improvements 55,745 57,630 293,086 312,755 Less accumulated depreciation (114,305 ) (104,075 ) $ 178,781 $ 208,680 |
SENIOR CONVERTIBLE NOTES (Table
SENIOR CONVERTIBLE NOTES (Tables) - Senior Convertible Notes | 9 Months Ended |
Oct. 31, 2015 | |
SENIOR CONVERTIBLE NOTES | |
Schedule of 3.75% Senior Convertible Notes | The Company’s 3.75% Senior Convertible Notes issued on April 24, 2012 (“Convertible Notes”) consisted of the following: October 31, 2015 January 31, 2015 (in thousands except conversion rate and conversion price) Principal value $ 150,000 $ 150,000 Unamortized debt discount (14,904 ) (17,650 ) Carrying value of senior convertible notes $ 135,096 $ 132,350 Carrying value of equity component, net of deferred taxes $ 15,546 $ 15,546 Conversion rate (shares of common stock per $1,000 principal amount of notes) 23.1626 Conversion price (per share of common stock) $ 43.17 |
Senior Convertible Notes Interest Expense | The Company recognized interest expense associated with its Senior Convertible Notes as follows: Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 (in thousands) (in thousands) Cash Interest Expense Coupon interest expense $ 1,406 $ 1,406 $ 4,219 $ 4,219 Noncash Interest Expense Amortization of debt discount 925 864 2,745 2,563 Amortization of transaction costs 138 135 412 402 $ 2,469 $ 2,405 $ 7,376 $ 7,184 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional amounts of outstanding derivative positions | The following table sets forth the notional value of the Company's outstanding derivative instruments. Notional Amount as of: October 31, 2015 January 31, 2015 (in thousands) Net investment hedge: Foreign currency contracts $ — $ 14,223 Cash flow hedges: Interest rate swap 100,000 100,000 Foreign currency contracts — — Derivatives not designated as hedging instruments: Foreign currency contracts 19,090 30,030 |
Schedule of fair value of outstanding derivative instruments | The following table sets forth the fair value of the Company’s outstanding derivative instruments. Fair Value as of: Balance Sheet Location October 31, 2015 January 31, 2015 (in thousands) Liability Derivatives: Derivatives designated as hedging instruments: Net investment hedges: Foreign currency contracts $ — $ 19 Accrued expenses Cash flow hedges: Interest rate swap 2,662 3,233 Accrued expenses Derivatives not designated as hedging instruments: Foreign currency contracts 76 17 Accrued expenses Total Liability Derivatives $ 2,738 $ 3,269 |
Schedule of gains and losses recognized on derivative instruments | The following table sets forth the gains and losses (before the related income tax effects) recognized in other comprehensive income (loss) ("OCI") and income (loss) related to the Company’s derivative instruments for the three and nine months ended October 31, 2015 and 2014 , respectively. Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 OCI Income (Loss) OCI Income (Loss) OCI Income (Loss) OCI Income (Loss) Statements of Operations Classification (in thousands) (in thousands) Dervatives Designated as Hedging Instruments: Net investment hedges: Foreign currency contracts $ 12 $ — $ 2,363 $ — $ 333 $ — $ 2,439 $ — N/A Cash flow hedges: Interest rate swap (a) (803 ) (446 ) (1,106 ) (150 ) (727 ) (1,330 ) (1,184 ) (150 ) Floorplan interest expense / Interest income and other income (expense) Foreign currency contracts — (4 ) — (37 ) — (17 ) 73 (72 ) Cost of revenue - equipment Dervatives Not Designated as Hedging Instruments: Foreign currency contracts — (54 ) — 2,436 — 751 — 2,582 Interest income and other income (expense) Total Derivatives $ (791 ) $ (504 ) $ 1,257 $ 2,249 $ (394 ) $ (596 ) $ 1,328 $ 2,360 (a) Included in the Income (Loss) amounts under the Company's interest rate swap is hedge ineffectiveness gain of $0.1 million for the three months ended October 31, 2015 . There was no hedge ineffectiveness for the nine months ended October 31, 2015 or for the three and nine months ended October 31, 2014 . This amount was recorded in interest income and other income (expense) in the consolidated statements of operations. The remaining amounts for the three and nine months ended October 31, 2015 are reclassification amounts from accumulated other comprehensive income and are recorded in floorplan interest expense in the consolidated statements of operations. |
FAIR VALUE OF FINANCIAL INSTR26
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | The liabilities which are measured at fair value on a recurring basis as of October 31, 2015 and January 31, 2015 are as follows: October 31, 2015 January 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total (in thousands) (in thousands) Financial Liabilities Interest rate swap $ — $ 2,662 $ — $ 2,662 $ — $ 3,233 $ — $ 3,233 Foreign currency contracts — 76 — 76 — 36 — 36 Total Financial Liabilities $ — $ 2,738 $ — $ 2,738 $ — $ 3,269 $ — $ 3,269 |
Fair Value of Senior Convertible Notes | The following table provides details on the Senior Convertible Notes as of October 31, 2015 and January 31, 2015 . The difference between the face value and the carrying value of these notes is the result of the allocation between the debt and equity components. Fair value of the Senior Convertible Notes was estimated based on Level 2 fair value inputs. October 31, 2015 January 31, 2015 Estimated Fair Value Carrying Value Face Value Estimated Fair Value Carrying Value Face Value (in thousands) (in thousands) Senior convertible notes $ 115,772 $ 135,096 $ 150,000 $ 111,273 $ 132,350 $ 150,000 |
SEGMENT INFORMATION AND OPERA27
SEGMENT INFORMATION AND OPERATING RESULTS (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of financial information of business segments | Certain financial information for each of the Company’s business segments is set forth below. Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 (in thousands) (in thousands) Revenue Agriculture $ 211,302 $ 341,547 $ 660,606 $ 991,649 Construction 87,023 98,246 249,601 291,758 International 46,650 53,348 122,154 126,187 Total $ 344,975 $ 493,141 $ 1,032,361 $ 1,409,594 Income (Loss) Before Income Taxes Agriculture $ 4,219 $ 6,134 $ 693 $ 16,133 Construction 1,413 15 (3,089 ) (6,346 ) International 351 (1,407 ) (3,074 ) (11,688 ) Segment income (loss) before income taxes 5,983 4,742 (5,470 ) (1,901 ) Shared Resources (269 ) 971 1,879 800 Income (Loss) Before Income Taxes $ 5,714 $ 5,713 $ (3,591 ) $ (1,101 ) October 31, 2015 January 31, 2015 (in thousands) Total Assets Agriculture $ 607,823 $ 734,894 Construction 327,466 393,573 International 128,244 152,587 Segment assets 1,063,533 1,281,054 Shared Resources 130,137 68,693 Total $ 1,193,670 $ 1,349,747 |
STORE CLOSINGS AND REALIGNMEN28
STORE CLOSINGS AND REALIGNMENT COST (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Costs by Type of Cost | The following summarizes the exit costs associated with the aforementioned store closings and realignment activities: Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 Income Statement Classification (in thousands) (in thousands) Construction Segment Lease termination costs $ (38 ) $ — $ 223 $ 1,511 Impairment and Realignment Costs Employee severance costs (15 ) — 225 451 Impairment and Realignment Costs Impairment of fixed assets, net of gains on asset disposition — — 10 (60 ) Impairment and Realignment Costs Asset relocation and other closing costs (34 ) — 34 362 Impairment and Realignment Costs $ (87 ) $ — $ 492 $ 2,264 Agriculture Segment Lease termination costs $ 46 $ — $ 137 $ 148 Impairment and Realignment Costs Employee severance costs 29 — 362 71 Impairment and Realignment Costs Impairment of fixed assets, net of gains on asset disposition 10 — 106 85 Impairment and Realignment Costs Asset relocation and other closing costs (5 ) — 88 84 Impairment and Realignment Costs Inventory cost adjustments — — — 471 Equipment Cost of Sales $ 80 $ — $ 693 $ 859 Shared Resource Center Lease termination costs $ (12 ) $ — $ 37 $ — Impairment and Realignment Costs Employee severance costs — — 187 300 Impairment and Realignment Costs Impairment of fixed assets, net of gains on asset disposition 41 — 110 — Impairment and Realignment Costs $ 29 $ — $ 334 $ 300 Total Lease termination costs $ (4 ) $ — $ 397 $ 1,659 Impairment and Realignment Costs Employee severance costs 14 — 774 822 Impairment and Realignment Costs Impairment of fixed assets, net of gains on asset disposition 51 — 226 25 Impairment and Realignment Costs Asset relocation and other closing costs (39 ) — 122 446 Impairment and Realignment Costs Inventory cost adjustments — — — 471 Equipment Cost of Sales $ 22 $ — $ 1,519 $ 3,423 — |
Restructuring Reserve Rollforward | A reconciliation of the beginning and ending exit cost liability balance, which is included in accrued expenses in the consolidated balance sheets, follows: Amount (in thousands) Balance, January 31, 2015 $ 1,706 Exit costs incurred and charged to expense Lease termination costs 397 Employee severance costs 774 Exit costs paid Lease termination costs (555 ) Employee severance costs (774 ) Balance, October 31, 2015 $ 1,548 |
HELD FOR SALE (Tables)
HELD FOR SALE (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups | The assets and liabilities which are held for sale are presented in the following table: October 31, 2015 January 31, 2015 (in thousands) Assets Held for Sale Receivables $ 54 $ 147 Inventories New equipment 3,523 6,269 Used equipment 2,541 3,973 Parts and attachments 450 920 Work in process 37 65 Total inventories 6,551 11,227 Property and equipment Machinery and equipment 39 114 Vehicles 75 155 Furniture and fixtures 21 57 Land, buildings, and leasehold improvements 5,036 3,612 Total property and equipment 5,171 3,938 $ 11,776 $ 15,312 Liabilities Held for Sale Accounts payable $ 58 $ 151 Floorplan payable 2,796 1,771 Customer deposits 1 913 $ 2,855 $ 2,835 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Tax | The components of income (loss) before income taxes are as follows: Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 (in thousands) (in thousands) U.S. $ 5,363 $ 7,097 $ (521 ) $ 10,696 Foreign 351 (1,384 ) (3,070 ) (11,797 ) Total $ 5,714 $ 5,713 $ (3,591 ) $ (1,101 ) |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory federal income tax rate to the Company's effective income tax rate is as follows: Three Months Ended October 31, Nine Months Ended October 31, 2015 2014 2015 2014 U.S. statutory rate 35.0 % 35.0 % (35.0 )% (35.0 )% Foreign statutory rates (0.2 )% 9.9 % 22.4 % 233.5 % State taxes on income net of federal tax benefit 4.2 % 4.9 % (4.2 )% (4.9 )% Change in valuation allowance (11.1 )% 8.5 % 27.8 % 458.5 % Tax effect of Ukrainian hryvnia devaluation (a) 6.4 % (6.5 )% (13.3 )% (296.4 )% All other, net 4.7 % 7.7 % (7.6 )% 30.7 % 39.0 % 59.5 % (9.9 )% 386.4 % (a) Represents the tax impact of differences in foreign currency losses recognized as the result of Ukrianian hryvnia devaluation between Ukrainian taxable income (loss) and financial reporting income (loss). |
BUSINESS ACTIVITY AND SIGNIFI31
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Details) - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Denominator | ||||
Basic Weighted-Average Common Shares Outstanding | 21,129 | 20,994 | 21,093 | 20,977 |
Plus: Incremental Shares From Assumed Exercise of Stock Options | 89 | 108 | 0 | 0 |
Diluted Weighted-Average Common Shares Outstanding | 21,218 | 21,102 | 21,093 | 20,977 |
Earnings (Loss) per Share - Basic, in dollars per share | $ 0.16 | $ 0.12 | $ (0.13) | $ (0.22) |
Earnings (Loss) per Share - Diluted, in dollars per share | $ 0.16 | $ 0.11 | $ (0.13) | $ (0.22) |
Employee Stock Option | ||||
Anti-dilutive securities | ||||
Anti-dilutive securities excluded from the calculation of diluted EPS (in shares) | 89 | 104 | 191 | 219 |
Convertible Notes | ||||
Anti-dilutive securities | ||||
Anti-dilutive securities excluded from the calculation of diluted EPS (in shares) | 3,474 | |||
Conversion price of shares underlying convertible notes (in dollars per share) | $ 43.17 | $ 43.17 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
Inventory Disclosure [Abstract] | ||
New equipment | $ 420,523 | $ 442,984 |
Used equipment | 289,336 | 318,308 |
Parts and attachments | 90,861 | 107,893 |
Work in process | 13,120 | 10,255 |
Inventories | $ 813,840 | $ 879,440 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | $ 293,086 | $ 312,755 |
Less accumulated depreciation | (114,305) | (104,075) |
Property and equipment, net | 178,781 | 208,680 |
Rental fleet equipment | ||
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | 137,749 | 148,198 |
Machinery and equipment | ||
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | 23,899 | 24,071 |
Vehicles | ||
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | 36,927 | 43,435 |
Furniture and fixtures | ||
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | 38,766 | 39,421 |
Land, buildings, and leasehold improvements | ||
PROPERTY AND EQUIPMENT | ||
Property and equipment, gross | $ 55,745 | $ 57,630 |
LINES OF CREDIT _ FLOORPLAN P34
LINES OF CREDIT / FLOORPLAN PAYABLE (Details) | Oct. 28, 2015USD ($) | Mar. 30, 2012USD ($) | Oct. 31, 2015USD ($) | Oct. 31, 2015USD ($) | Aug. 31, 2015USD ($) | Oct. 31, 2015USD ($)floorplan_line_of_credit | Sep. 01, 2015USD ($) | Jan. 31, 2015USD ($) |
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||||||
Number of significant floorplan lines of credit | floorplan_line_of_credit | 3 | |||||||
Floorplan payable | $ 546,586,000 | $ 546,586,000 | $ 546,586,000 | $ 627,249,000 | ||||
Floorplan Line of Credit | ||||||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||||||
Maximum borrowing capacity | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||||
Floorplan payable | 531,300,000 | 531,300,000 | $ 531,300,000 | 594,100,000 | ||||
Floorplan Line of Credit | U.S. | ||||||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||||||
Interest rate, minimum (as a percent) | 2.44% | |||||||
Interest rate, maximum (as a percent) | 5.05% | |||||||
Floorplan Line of Credit | Foreign | ||||||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||||||
Maximum borrowing capacity | 116,100,000 | 116,100,000 | $ 116,100,000 | |||||
Interest rate, minimum (as a percent) | 1.87% | |||||||
Interest rate, maximum (as a percent) | 12.00% | |||||||
Wells Fargo Credit Facility | ||||||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||||||
Maximum borrowing capacity | $ 350,000,000 | $ 362,500,000 | ||||||
Minimum Fixed Charge Coverage Ratio Covenant | 1.1 | |||||||
Threshold (less than) for Minimum Fixed Charge Coverage Ratio Covenant (as a percent) | 15.00% | |||||||
Write off of capitalized debt issuance costs | 1,000,000 | |||||||
Wells Fargo Credit Facility | Minimum | ||||||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||||||
Credit facility non-usage fee (as a percent) | 0.25% | 0.30% | ||||||
Wells Fargo Credit Facility | Maximum | ||||||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||||||
Credit facility non-usage fee (as a percent) | 0.375% | 0.40% | ||||||
Wells Fargo Credit Facility | Federal Funds Rate | ||||||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||||||
Basis spread on variable rate | 0.50% | |||||||
Wells Fargo Credit Facility | One Month LIBOR | ||||||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||||||
Basis spread on variable rate | 1.00% | |||||||
Wells Fargo Credit Facility | Base Rate | Minimum | ||||||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||||||
Basis spread on variable rate | 0.75% | |||||||
Wells Fargo Credit Facility | Base Rate | Maximum | ||||||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||||||
Basis spread on variable rate | 1.50% | |||||||
Wells Fargo Credit Facility | LIBOR | Minimum | ||||||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||||||
Basis spread on variable rate | 1.75% | 1.50% | ||||||
Wells Fargo Credit Facility | LIBOR | Maximum | ||||||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||||||
Basis spread on variable rate | 2.50% | 3.125% | ||||||
Wells Fargo Credit Facility | Floorplan Line of Credit | ||||||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||||||
Maximum borrowing capacity | $ 275,000,000 | 275,000,000 | 275,000,000 | $ 275,000,000 | ||||
Agricredit Acceptance Credit Facility | Floorplan Line of Credit | ||||||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||||||
Maximum borrowing capacity | 172,000,000 | $ 172,000,000 | $ 200,000,000 | 172,000,000 | $ 172,000,000 | |||
Agricredit Acceptance Credit Facility | Floorplan Line of Credit | One Month LIBOR | Minimum | ||||||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||||||
Basis spread on variable rate | 4.86% | |||||||
Agricredit Acceptance Credit Facility | Floorplan Line of Credit | One Month LIBOR | Maximum | ||||||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||||||
Basis spread on variable rate | 5.36% | |||||||
Agricredit Acceptance Credit Facility | Floorplan Line of Credit | Three Month LIBOR | Minimum | ||||||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||||||
Basis spread on variable rate | 4.75% | |||||||
Agricredit Acceptance Credit Facility | Floorplan Line of Credit | Three Month LIBOR | Maximum | ||||||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||||||
Basis spread on variable rate | 5.25% | |||||||
CNH Industrial Capital Credit Facility | Floorplan Line of Credit | ||||||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||||||
Maximum borrowing capacity | 450,000,000 | $ 450,000,000 | 450,000,000 | |||||
Credit Facility | Wells Fargo Credit Facility | Working Capital Revolver Line | ||||||||
LINES OF CREDIT / FLOORPLAN NOTES PAYABLE | ||||||||
Maximum borrowing capacity | $ 75,000,000 | 75,000,000 | 75,000,000 | 75,000,000 | ||||
Amount outstanding | $ 14,700,000 | $ 14,700,000 | $ 14,700,000 | $ 18,700,000 |
SENIOR CONVERTIBLE NOTES (Detai
SENIOR CONVERTIBLE NOTES (Details) | Oct. 31, 2015 |
Convertible Notes | |
SENIOR CONVERTIBLE NOTES | |
Interest rate (as a percent) | 3.75% |
SENIOR CONVERTIBLE NOTES (Det36
SENIOR CONVERTIBLE NOTES (Details 2) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2015USD ($)$ / shares | Oct. 31, 2014USD ($) | Oct. 31, 2015USD ($)$ / shares | Oct. 31, 2014USD ($) | Jan. 31, 2015USD ($) | |
Convertible notes | |||||
Principal value | $ 150,000 | $ 150,000 | $ 150,000 | ||
Coupon interest expense | 4,041 | $ 3,586 | 11,228 | $ 10,586 | |
Convertible Notes | |||||
Convertible notes | |||||
Principal value | 150,000 | 150,000 | 150,000 | ||
Unamortized debt discount | (14,904) | (14,904) | (17,650) | ||
Carrying value of senior convertible notes | 135,096 | 135,096 | 132,350 | ||
Carrying value of equity component, net of deferred taxes | $ 15,546 | $ 15,546 | $ 15,546 | ||
Conversion rate | 0.0231626 | ||||
Conversion price (per share of common stock) | $ / shares | $ 43.17 | $ 43.17 | |||
Coupon interest expense | $ 1,406 | 1,406 | $ 4,219 | 4,219 | |
Amortization of debt discount | 925 | 864 | 2,745 | 2,563 | |
Amortization of transaction costs | 138 | 135 | 412 | 402 | |
Interest Expense | $ 2,469 | $ 2,405 | $ 7,376 | $ 7,184 | |
Remaining period over which unamortized debt discount will be amortized | 3 years 6 months | ||||
Effective interest rate (as a percent) | 7.00% | 7.00% | 7.00% | 7.00% |
DERIVATIVE INSTRUMENTS (Details
DERIVATIVE INSTRUMENTS (Details 1) - Forward-starting contract - USD ($) | Oct. 31, 2015 | Jan. 31, 2015 | Oct. 09, 2013 |
Interest Rate Swap | Cash Flow Hedges | |||
DERIVATIVE INSTRUMENTS | |||
Fixed interest rate (as a percent) | 1.901% | ||
Notional amount outstanding | $ 100,000,000 | ||
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedges | |||
DERIVATIVE INSTRUMENTS | |||
Notional amount outstanding | $ 100,000,000 | $ 100,000,000 | |
Foreign currency contracts | Designated as Hedging Instrument | Net Investment Hedges | |||
DERIVATIVE INSTRUMENTS | |||
Notional amount outstanding | 0 | 14,223,000 | |
Foreign currency contracts | Designated as Hedging Instrument | Cash Flow Hedges | |||
DERIVATIVE INSTRUMENTS | |||
Notional amount outstanding | 0 | 0 | |
Foreign currency contracts | Not designated as hedging instruments | |||
DERIVATIVE INSTRUMENTS | |||
Notional amount outstanding | $ 19,090,000 | $ 30,030,000 |
DERIVATIVE INSTRUMENTS DERIVATI
DERIVATIVE INSTRUMENTS DERIVATIVES INSTRUMENTS (Details 2) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
DERIVATIVE INSTRUMENTS | ||
Fair Value of Derivative Liability | $ 2,738 | $ 3,269 |
Foreign currency contracts | Not designated as hedging instruments | ||
DERIVATIVE INSTRUMENTS | ||
Fair Value of Derivative Liability | 76 | 17 |
Net Investment Hedges | Foreign currency contracts | Designated as Hedging Instrument | ||
DERIVATIVE INSTRUMENTS | ||
Fair Value of Derivative Liability | 0 | 19 |
Cash Flow Hedges | Interest Rate Swap | Designated as Hedging Instrument | ||
DERIVATIVE INSTRUMENTS | ||
Fair Value of Derivative Liability | $ 2,662 | $ 3,233 |
DERIVATIVE INSTRUMENTS DERIVATE
DERIVATIVE INSTRUMENTS DERIVATE INSTRUMENTS (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Foreign currency contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | $ (791) | $ 1,257 | $ (394) | $ 1,328 |
Amount of Gain (Loss) Recognized in Income | (504) | 2,249 | (596) | 2,360 |
Foreign currency contracts | Designated as Hedging Instrument | Net Investment Hedges | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | 12 | 2,363 | 333 | 2,439 |
Amount of Gain (Loss) Recognized in Income | 0 | 0 | 0 | 0 |
Foreign currency contracts | Designated as Hedging Instrument | Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | 0 | 0 | 0 | 73 |
Amount of Gain (Loss) Recognized in Income | (4) | (37) | (17) | (72) |
Foreign currency contracts | Not designated as hedging instruments | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | 0 | 0 | 0 | 0 |
Amount of Gain (Loss) Recognized in Income | (54) | 2,436 | 751 | 2,582 |
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | (803) | (1,106) | (727) | (1,184) |
Amount of Gain (Loss) Recognized in Income | (446) | (150) | (1,330) | (150) |
Amount of Hedge Ineffectiveness Gain (Loss) Recognized in Income | $ 100 | $ 0 | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS DERIVA40
DERIVATIVE INSTRUMENTS DERIVATIVE INSTRUMENTS NARRATIVE (Details) - Interest Rate Swap - Cash Flow Hedges $ in Millions | 9 Months Ended |
Oct. 31, 2015USD ($) | |
Derivative | |
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Before Tax | $ (2.6) |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ (0.7) |
FAIR VALUE OF FINANCIAL INSTR41
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | $ (2,738) | $ (3,269) |
Principal value | 150,000 | 150,000 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Senior Convertible Notes | 115,772 | 111,273 |
Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Senior Convertible Notes | 135,096 | 132,350 |
Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | (2,662) | (3,233) |
Foreign Exchange Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | (76) | (36) |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | 0 | 0 |
Fair Value, Inputs, Level 1 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | 0 | 0 |
Fair Value, Inputs, Level 1 | Foreign Exchange Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | (2,738) | (3,269) |
Fair Value, Inputs, Level 2 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | (2,662) | (3,233) |
Fair Value, Inputs, Level 2 | Foreign Exchange Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | (76) | (36) |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | 0 | 0 |
Fair Value, Inputs, Level 3 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | 0 | 0 |
Fair Value, Inputs, Level 3 | Foreign Exchange Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Financial Liability | $ 0 | $ 0 |
SEGMENT INFORMATION AND OPERA42
SEGMENT INFORMATION AND OPERATING RESULTS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2015USD ($) | Oct. 31, 2014USD ($) | Oct. 31, 2015USD ($)segment | Oct. 31, 2014USD ($) | Jan. 31, 2015USD ($) | |
Segment Reporting [Abstract] | |||||
Number of reportable segments | segment | 3 | ||||
SEGMENT INFORMATION AND OPERATING RESULTS | |||||
Revenue | $ 344,975 | $ 493,141 | $ 1,032,361 | $ 1,409,594 | |
Income (Loss) Before Income Taxes | 5,714 | 5,713 | (3,591) | (1,101) | |
Total Assets | 1,193,670 | 1,193,670 | $ 1,349,747 | ||
Shared Resources | |||||
SEGMENT INFORMATION AND OPERATING RESULTS | |||||
Income (Loss) Before Income Taxes | (269) | 971 | 1,879 | 800 | |
Total Assets | 130,137 | 130,137 | 68,693 | ||
Operating Segments | |||||
SEGMENT INFORMATION AND OPERATING RESULTS | |||||
Income (Loss) Before Income Taxes | 5,983 | 4,742 | (5,470) | (1,901) | |
Total Assets | 1,063,533 | 1,063,533 | 1,281,054 | ||
Operating Segments | Agriculture | |||||
SEGMENT INFORMATION AND OPERATING RESULTS | |||||
Revenue | 211,302 | 341,547 | 660,606 | 991,649 | |
Income (Loss) Before Income Taxes | 4,219 | 6,134 | 693 | 16,133 | |
Total Assets | 607,823 | 607,823 | 734,894 | ||
Operating Segments | Construction | |||||
SEGMENT INFORMATION AND OPERATING RESULTS | |||||
Revenue | 87,023 | 98,246 | 249,601 | 291,758 | |
Income (Loss) Before Income Taxes | 1,413 | 15 | (3,089) | (6,346) | |
Total Assets | 327,466 | 327,466 | 393,573 | ||
Operating Segments | International | |||||
SEGMENT INFORMATION AND OPERATING RESULTS | |||||
Revenue | 46,650 | 53,348 | 122,154 | 126,187 | |
Income (Loss) Before Income Taxes | 351 | $ (1,407) | (3,074) | $ (11,688) | |
Total Assets | $ 128,244 | $ 128,244 | $ 152,587 |
STORE CLOSINGS AND REALIGNMEN43
STORE CLOSINGS AND REALIGNMENT COST (Details) $ in Thousands | Mar. 05, 2015store | Apr. 30, 2014store | Oct. 31, 2015USD ($) | Oct. 31, 2014USD ($) | Oct. 31, 2015USD ($) | Oct. 31, 2014USD ($) | Jan. 31, 2015USD ($) |
Realignment Costs | |||||||
Amount of Realignment Cost Incurred | $ 22 | $ 0 | $ 1,519 | $ 3,423 | |||
Construction | |||||||
Realignment Costs | |||||||
Amount of Realignment Cost Incurred | (87) | 0 | 492 | 2,264 | |||
Agriculture | |||||||
Realignment Costs | |||||||
Amount of Realignment Cost Incurred | 80 | 0 | 693 | 859 | |||
Shared Resource Center | |||||||
Realignment Costs | |||||||
Amount of Realignment Cost Incurred | 29 | 0 | 334 | 300 | |||
Lease termination costs | Realignment Cost | |||||||
Realignment Costs | |||||||
Amount of Realignment Cost Incurred | (4) | 0 | 397 | 1,659 | |||
Lease termination costs | Realignment Cost | Construction | |||||||
Realignment Costs | |||||||
Amount of Realignment Cost Incurred | (38) | 0 | 223 | 1,511 | |||
Lease termination costs | Realignment Cost | Agriculture | |||||||
Realignment Costs | |||||||
Amount of Realignment Cost Incurred | 46 | 0 | 137 | 148 | |||
Lease termination costs | Realignment Cost | Shared Resource Center | |||||||
Realignment Costs | |||||||
Amount of Realignment Cost Incurred | (12) | 0 | 37 | 0 | |||
Employee severance costs | Realignment Cost | |||||||
Realignment Costs | |||||||
Amount of Realignment Cost Incurred | 14 | 0 | 774 | 822 | |||
Employee severance costs | Realignment Cost | Construction | |||||||
Realignment Costs | |||||||
Amount of Realignment Cost Incurred | (15) | 0 | 225 | 451 | |||
Employee severance costs | Realignment Cost | Agriculture | |||||||
Realignment Costs | |||||||
Amount of Realignment Cost Incurred | 29 | 0 | 362 | 71 | |||
Employee severance costs | Realignment Cost | Shared Resource Center | |||||||
Realignment Costs | |||||||
Amount of Realignment Cost Incurred | 0 | 0 | 187 | 300 | |||
Impairment of fixed assets, net of gains on asset disposition | Realignment Cost | |||||||
Realignment Costs | |||||||
Amount of Realignment Cost Incurred | 51 | 0 | 226 | 25 | |||
Impairment of fixed assets, net of gains on asset disposition | Realignment Cost | Construction | |||||||
Realignment Costs | |||||||
Amount of Realignment Cost Incurred | 0 | 0 | 10 | (60) | |||
Impairment of fixed assets, net of gains on asset disposition | Realignment Cost | Agriculture | |||||||
Realignment Costs | |||||||
Amount of Realignment Cost Incurred | 10 | 0 | 106 | 85 | |||
Impairment of fixed assets, net of gains on asset disposition | Realignment Cost | Shared Resource Center | |||||||
Realignment Costs | |||||||
Amount of Realignment Cost Incurred | 41 | 0 | 110 | 0 | |||
Asset relocation and other closing costs | Realignment Cost | |||||||
Realignment Costs | |||||||
Amount of Realignment Cost Incurred | (39) | 0 | 122 | 446 | |||
Asset relocation and other closing costs | Realignment Cost | Construction | |||||||
Realignment Costs | |||||||
Amount of Realignment Cost Incurred | (34) | 0 | 34 | 362 | |||
Asset relocation and other closing costs | Realignment Cost | Agriculture | |||||||
Realignment Costs | |||||||
Amount of Realignment Cost Incurred | (5) | 0 | 88 | 84 | |||
Inventory cost adjustments | Equipment Cost of Sales | |||||||
Realignment Costs | |||||||
Amount of Realignment Cost Incurred | 0 | 0 | 0 | 471 | |||
Inventory cost adjustments | Equipment Cost of Sales | Agriculture | |||||||
Realignment Costs | |||||||
Amount of Realignment Cost Incurred | 0 | $ 0 | 0 | 471 | |||
Realignment Announced March 2015 | |||||||
Realignment Costs | |||||||
Reduction of Construction-related headcount, percent | 14.00% | ||||||
Restructuring and Related Cost, Expected Cost | $ 2,000 | $ 2,000 | |||||
Amount of Realignment Cost Incurred | $ 100 | ||||||
Realignment Announced March 2015 | Construction | |||||||
Realignment Costs | |||||||
Number of stores closed (in ones) | store | 1 | ||||||
Realignment Announced March 2015 | Agriculture | |||||||
Realignment Costs | |||||||
Number of stores closed (in ones) | store | 3 | ||||||
Realignment Announced April 2104 | |||||||
Realignment Costs | |||||||
Reduction of Construction-related headcount, percent | 12.00% | ||||||
Amount of Realignment Cost Incurred | $ 3,400 | ||||||
Realignment Announced April 2104 | Construction | |||||||
Realignment Costs | |||||||
Number of stores closed (in ones) | store | 7 | ||||||
Realignment Announced April 2104 | Agriculture | |||||||
Realignment Costs | |||||||
Number of stores closed (in ones) | store | 1 |
STORE CLOSINGS AND REALIGNMEN44
STORE CLOSINGS AND REALIGNMENT COST (Details 2) $ in Thousands | 9 Months Ended |
Oct. 31, 2015USD ($) | |
Realignment Reserve [Roll Forward] | |
Balance, January 31, 2015 | $ 1,706 |
Balance, October 31, 2015 | 1,548 |
Lease termination costs | |
Realignment Reserve [Roll Forward] | |
Exit costs incurred and charged to expense | 397 |
Exit costs paid | (555) |
Employee severance costs | |
Realignment Reserve [Roll Forward] | |
Exit costs incurred and charged to expense | 774 |
Exit costs paid | $ (774) |
HELD FOR SALE (Details)
HELD FOR SALE (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 |
Property and equipment: | ||
Assets held for sale | $ 11,776 | $ 15,312 |
Liabilities Held for Sale [Abstract] | ||
Liabilities held for sale | 2,855 | 2,835 |
Held-for-sale | ||
Assets Held for Sale [Abstract] | ||
Receivables | 54 | 147 |
Inventories: | ||
New equipment | 3,523 | 6,269 |
Used equipment | 2,541 | 3,973 |
Parts and attachments | 450 | 920 |
Work in process | 37 | 65 |
Total inventories | 6,551 | 11,227 |
Property and equipment: | ||
Machinery and equipment | 39 | 114 |
Vehicles | 75 | 155 |
Furniture and fixtures | 21 | 57 |
Land, buildings, and leasehold improvements | 5,036 | 3,612 |
Total property and equipment | 5,171 | 3,938 |
Assets held for sale | 11,776 | 15,312 |
Liabilities Held for Sale [Abstract] | ||
Accounts payable | 58 | 151 |
Floorplan payable | 2,796 | 1,771 |
Customer deposits | 1 | 913 |
Liabilities held for sale | $ 2,855 | $ 2,835 |
INCOME TAXES INCOME TAXES (Deta
INCOME TAXES INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ||||
U.S. | $ 5,363 | $ 7,097 | $ (521) | $ 10,696 |
Foreign | 351 | (1,384) | (3,070) | (11,797) |
Income (Loss) Before Income Taxes | $ 5,714 | $ 5,713 | $ (3,591) | $ (1,101) |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
U.S. statutory rate (as a percent) | 35.00% | 35.00% | (35.00%) | (35.00%) |
Foreign statutory rates (as a percent) | (0.20%) | 9.90% | 22.40% | 233.50% |
States taxes on income net of federal tax benefit (as a percent) | 4.20% | 4.90% | (4.20%) | (4.90%) |
Change in valuation allowance (as a percent) | (11.10%) | 8.50% | 27.80% | 458.50% |
Tax effect of Ukrainian hryvnia devaluation (as a percent) | 6.40% | (6.50%) | (13.30%) | (296.40%) |
All other, net (as a percent) | 4.70% | 7.70% | (7.60%) | 30.70% |
Effective tax rate (as a percent) | 39.00% | 59.50% | (9.90%) | 386.40% |
Minimum | ||||
Operating Loss Carryforward Period | 5 years | |||
Maximum | ||||
Operating Loss Carryforward Period | 7 years |