Cover
Cover - USD ($) | 12 Months Ended | ||
Jan. 31, 2021 | Mar. 22, 2021 | Jul. 31, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Entity Registrant Name | TITAN MACHINERY INC. | ||
Entity File Number | 001-33866 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 45-0357838 | ||
Entity Address, Address Line One | 644 East Beaton Drive | ||
Entity Address, City or Town | West Fargo | ||
Entity Address, State or Province | ND | ||
Entity Address, Postal Zip Code | 58078-2648 | ||
City Area Code | (701) | ||
Local Phone Number | 356-0130 | ||
Title of 12(b) Security | Common Stock, $0.00001 par value per share | ||
Trading Symbol | TITN | ||
Security Exchange Name | NASDAQ | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 203,600,000 | ||
Entity Common Stock, Shares Outstanding | 22,552,967 | ||
Document Period End Date | Jan. 31, 2021 | ||
ICFR Auditor Attestation Flag | true | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Filer Category | Accelerated Filer | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001409171 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
CURRENT ASSETS | ||
Cash | $ 78,990 | $ 43,721 |
Receivables, net of allowance for expected credit losses | 69,109 | 72,776 |
Inventories | 418,458 | 597,394 |
Prepaid expenses and other | 13,677 | 13,655 |
Total current assets | 580,234 | 727,546 |
INTANGIBLES AND OTHER ASSETS | ||
Intangible assets, net of accumulated amortization | 7,785 | 8,367 |
Property and Equipment, net of accumulated depreciation | 1,090 | 1,113 |
Assets, Noncurrent | 235,555 | 247,797 |
Property, Plant and Equipment, Net | 147,165 | 145,562 |
Operating Lease, Right-of-Use Asset | 74,445 | 88,281 |
Deferred Income Taxes and Other Assets, Noncurrent | 3,637 | 2,147 |
Goodwill | 1,433 | 2,327 |
Total Assets | 815,789 | 975,343 |
CURRENT LIABILITIES | ||
Accounts payable | 20,045 | 16,976 |
Floorplan payable | 161,835 | 371,772 |
Current maturities of long-term debt | 4,591 | 13,779 |
Operating Lease, Liability, Current | 11,772 | 12,259 |
Contract with Customer, Liability, Current | 59,418 | 40,968 |
Accrued expenses and other | 48,791 | 38,360 |
Accrued Liabilities and Other Liabilities | 38,360 | |
Taxes Payable, Current | 11,048 | 49 |
Total current liabilities | 317,500 | 494,163 |
LONG-TERM LIABILITIES | ||
Operating Lease, Liability, Noncurrent | 73,567 | 88,387 |
Deferred Income Taxes and Other Tax Liabilities, Noncurrent | 2,055 | |
Operating lease liabilities | 44,906 | 37,789 |
Other long-term liabilities | 8,535 | 7,845 |
Total long-term liabilities | 127,008 | 136,076 |
Commitments and Contingencies | ||
Common stock, issued shares | 22,552,967 | 22,335,377 |
Common stock, outstanding shares | 22,552,967 | 22,335,377 |
Common stock, authorized shares | 45,000,000 | 45,000,000 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
STOCKHOLDERS' EQUITY | ||
Common stock, par value $0.00001 per share, 45,000,000 shares authorized; 22,552,967 shares issued and outstanding at January 31, 2021; 22,335,377 shares issued and outstanding at January 31, 2020 | $ 0 | $ 0 |
Additional paid-in-capital | 252,913 | 250,607 |
Retained earnings | 116,869 | 97,717 |
Accumulated other comprehensive income (loss) | 1,499 | (3,220) |
Stockholders' Equity Attributable to Parent | 371,281 | 345,104 |
Total Liabilities and Stockholders' Equity | $ 815,789 | $ 975,343 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
REVENUE | |||
Equipment | $ 1,016,071 | $ 917,202 | $ 909,178 |
Parts | 244,676 | 234,217 | 210,796 |
Service | 107,229 | 99,165 | 86,840 |
Rental and Other | 43,246 | 54,587 | 54,691 |
Total Revenue | 1,411,222 | 1,305,171 | 1,261,505 |
COST OF REVENUE | |||
Equipment | 911,170 | 818,707 | 812,467 |
Parts | 171,873 | 165,190 | 149,615 |
Cost of Service | 36,692 | 33,446 | 29,036 |
Rental and other | 30,125 | 37,010 | 38,799 |
TOTAL COST OF REVENUE | 1,149,860 | 1,054,353 | 1,029,917 |
GROSS PROFIT | 261,362 | 250,818 | 231,588 |
OPERATING EXPENSES | 220,774 | 225,722 | 201,537 |
Goodwill, Impairment Loss | 1,453 | ||
Other Asset Impairment Charges | 1,727 | 3,764 | 2,156 |
Restructuring Costs | 414 | ||
Income from Operations | 37,408 | 21,332 | 27,481 |
OTHER INCOME (EXPENSE) | |||
Interest and other income (expense) | 527 | 3,126 | 2,547 |
Floorplan interest expense | (3,339) | (5,354) | (6,114) |
Interest Expense, Other | 3,843 | 4,452 | 7,760 |
Income (Loss) from Continuing Operations before Income Taxes, Total | 30,753 | 14,652 | 16,154 |
Income Tax Expense (Benefit) | 11,397 | 699 | 3,972 |
Net Income (Loss) Attributable to Titan Machinery Inc. | 19,356 | 13,953 | 12,182 |
Net Loss Allocated to Participating Securities - Note 1 | (325) | (221) | (202) |
Net Loss Attributable to Titan Machinery Inc. Common Stockholders | $ 19,031 | $ 13,732 | $ 11,980 |
EARNINGS PER SHARE-NOTE 1 | |||
Earnings Per Share, Basic | $ 0.86 | $ 0.63 | $ 0.55 |
Earnings (Loss) per share - diluted (in dollars per share) | $ 0.86 | $ 0.63 | $ 0.55 |
Weighted Average Number of Shares Outstanding, Basic | 22,100 | 21,946 | 21,809 |
WEIGHTED AVERAGE COMMON SHARES-DILUTED (in shares) | 22,104 | 21,953 | 21,816 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income (Loss) Attributable to Parent | $ 19,356 | $ 13,953 | $ 12,182 |
Other Comprehensive Income (Loss) | |||
Foreign currency translation adjustments | 4,719 | (880) | (640) |
Comprehensive Income (Loss) Attributable To Titan Machinery Inc. | $ 24,075 | $ 13,073 | $ 11,542 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | AOCI Attributable to Parent [Member] | Additional Paid-in Capital [Member] | Common Stock [Member] |
Comprehensive income (loss): | |||||||
Stockholders' Equity Attributable to Parent | $ 321,855 | $ 77,046 | $ (1,700) | $ 246,509 | |||
BALANCE (in shares) at Jan. 31, 2018 | 22,102 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Common stock issued on grant of restricted stock (net of forfeitures), exercise of stock options and warrants, and tax benefits of equity awards | (621) | (621) | |||||
Common stock issued on grant of restricted stock (net of forfeitures), exercise of stock options and warrants, and tax benefits of equity awards (in shares) | 116 | ||||||
Stock-based compensation expense | 2,535 | 2,535 | |||||
Net Income (Loss) Attributable to Parent | 12,182 | 12,182 | |||||
Comprehensive income (loss): | |||||||
Total Other Comprehensive Income (Loss) | (640) | (640) | |||||
BALANCE (in shares) at Jan. 31, 2019 | 22,218 | ||||||
Comprehensive income (loss): | |||||||
Stockholders' Equity Attributable to Parent | 335,311 | 89,228 | (2,340) | 248,423 | |||
Common stock issued on grant of restricted stock (net of forfeitures), exercise of stock options and warrants, and tax benefits of equity awards | (509) | (509) | |||||
Common stock issued on grant of restricted stock (net of forfeitures), exercise of stock options and warrants, and tax benefits of equity awards (in shares) | 117 | ||||||
Stock-based compensation expense | 2,693 | 2,693 | |||||
Net Income (Loss) Attributable to Parent | 13,953 | 13,953 | |||||
Total Other Comprehensive Income (Loss) | (880) | (880) | |||||
BALANCE (in shares) at Jan. 31, 2020 | 22,335 | ||||||
Comprehensive income (loss): | |||||||
Stockholders' Equity, Other | $ (5,464) | $ (5,464) | |||||
Stockholders' Equity Attributable to Parent | 345,104 | 97,717 | (3,220) | 250,607 | |||
Common stock issued on grant of restricted stock (net of forfeitures), exercise of stock options and warrants, and tax benefits of equity awards | (209) | (209) | |||||
Common stock issued on grant of restricted stock (net of forfeitures), exercise of stock options and warrants, and tax benefits of equity awards (in shares) | 218 | ||||||
Stock-based compensation expense | 2,515 | 2,515 | |||||
Net Income (Loss) Attributable to Parent | 19,356 | 19,356 | |||||
Total Other Comprehensive Income (Loss) | 4,719 | 4,719 | |||||
BALANCE (in shares) at Jan. 31, 2021 | 22,553 | ||||||
Comprehensive income (loss): | |||||||
Stockholders' Equity, Other | $ (204) | $ (204) | |||||
Stockholders' Equity Attributable to Parent | $ 371,281 | $ 116,869 | $ 1,499 | $ 252,913 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
OPERATING ACTIVITIES | |||
Net Income (Loss) Attributable to Parent | $ 19,356 | $ 13,953 | $ 12,182 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 23,701 | 28,067 | 23,605 |
Impairment of goodwill, intangible assets and long lived assets | 3,180 | 3,764 | 2,156 |
Deferred income taxes | (3,538) | (1,663) | 2,511 |
Stock-based compensation expense | 2,515 | 2,693 | 2,535 |
Noncash interest expense | 174 | 408 | 2,432 |
Operating Lease, Expense | 11,537 | 12,234 | |
Gain (Loss) on Repurchase of Debt Instrument | 615 | ||
Other, net | (1,375) | (388) | 995 |
Changes in assets and liabilities, net of purchase of equipment dealerships assets and assumption of liabilities | |||
Receivables, prepaid expenses and other assets | 4,469 | 6,217 | (13,475) |
Inventories | 199,245 | (99,469) | 4,996 |
Manufacturer floorplan payable | (110,084) | 49,601 | (2,635) |
Accounts payable, deferred revenue, accrued expenses and other and other long-term liabilities | 36,205 | (1,890) | 10,688 |
Operating Lease, Liability | (12,389) | (12,572) | |
Net Cash Provided by (Used in) Operating Activities, Total | 172,996 | 955 | 46,605 |
INVESTING ACTIVITIES | |||
Rental fleet purchases | (7,103) | (14,302) | (5,665) |
Payments To Acquire Property And Equipment (Excluding Rental Fleet) | 12,986 | 10,714 | 6,286 |
Proceeds from sale of property and equipment | 6,592 | 2,415 | 1,549 |
Acquisition consideration, net of cash acquired | (6,790) | (13,887) | (15,299) |
Other, net | (10) | 19 | (131) |
Net Cash Provided by (Used in) Investing Activities, Total | (20,297) | (36,469) | (25,832) |
FINANCING ACTIVITIES | |||
Net change in non-manufacturer floorplan payable | (106,414) | 50,158 | 16,818 |
Repayments of Convertible Debt | 0 | (45,644) | (20,025) |
Proceeds from long-term debt borrowings | 5,326 | 23,354 | 3,252 |
Repayment Of Long-term Debt And Finance Leases [Abstract] | 15,942 | 4,490 | 16,116 |
Other, net | (909) | (509) | (656) |
Net Cash Provided by (Used in) Financing Activities, Total | (117,939) | 22,869 | (16,727) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 509 | (379) | (697) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total | 35,269 | (13,024) | 3,349 |
Cash at Beginning of Period | 43,721 | 56,745 | 53,396 |
Cash at End of Period | 78,990 | 43,721 | 56,745 |
Cash paid during the period | |||
Income taxes, net of refunds | 2,786 | 3,656 | 3,681 |
Interest | 7,355 | 9,687 | 11,064 |
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||
Net property and equipment financed with long-term debt, capital leases, accounts payable and accrued liabilities | 19,537 | 11,039 | 5,230 |
Net transfer of assets from property and equipment to inventories | $ 6,702 | $ 2,544 | $ 5,263 |
BUSINESS ACTIVITY AND SIGNIFICA
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES | BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES Nature of Business Titan Machinery Inc. and its subsidiaries (collectively, the "Company") are 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 Colorado, Iowa, Minnesota, Montana, Nebraska, North Dakota, South Dakota, Wisconsin and Wyoming, and its European stores are located in Bulgaria, Germany, Romania, Serbia and Ukraine. Impact of the COVID-19 Pandemic In March 2020, the World Health Organization declared the outbreak of COVID-19 a pandemic, and the President of the United States declared the COVID-19 outbreak as a national emergency. The nature of COVID-19 led to worldwide shutdowns and halting of commercial and interpersonal activity as governments imposed regulations in efforts to control the spread of the pandemic, such as shelter-in-place orders and quarantines. The pandemic has been highly fluid and we cannot anticipate with any certainty the length, scope, or severity of such restrictions in each of the markets that we operate. Since the beginning of the COVID-19 pandemic, the safety of our employees and customers has been and continues to be our top concern. At the onset of the pandemic, we organized a COVID Task Force to implement safety protocols and to quickly respond to matters related to the pandemic at our locations. Even though we are considered an essential business, in response to the COVID-19 pandemic, the Company closed its U.S. stores to the public in March 2020 but continued operations through social distancing means in all areas: equipment, parts, service and rental. Beginning in May 2020, we began to fully reopen our stores to the public, following pandemic safety protocols, and, by June 2020, all of our locations were once again open to the public. Additionally, our International stores have also been following pandemic safety protocols set forth by each country and local government authority, which at times have included border shutdowns and curfew regulations. Seasonality The agricultural and construction equipment businesses are highly seasonal, which causes the Company's quarterly results and cash flows to fluctuate during the year. The Company's customers generally purchase and rent equipment in preparation for, or in conjunction with, their busy seasons, which for farmers are the spring planting and fall harvesting seasons, and for construction customers is dependent on weather seasons in their respective regions, which is typically the second and third quarters of the Company's fiscal year for much of its Construction footprint. The Company's parts and service revenues are also typically highest during its customers' busy seasons, due to the increased use of their equipment during this time, which generates the need for more parts and service work. However, weather conditions impact the timing of our customers' busy times, which may cause the Company's quarterly financial results to differ between fiscal years. In addition, the fourth quarter typically is a significant period for equipment sales in the United States because of our customers’ year-end tax planning considerations, the timing of dealer incentives and the increase in availability of funds from completed harvests and construction projects. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant accounts, transactions and profits between the consolidated companies have been eliminated in consolidation. The Company's foreign subsidiaries have fiscal years ending on December 31 of each year, consistent with statutory reporting requirements in each of the respective countries. The accounts of the Company's foreign subsidiaries are consolidated as of December 31 of each year. No events or transactions occurred related to these subsidiaries in January 2021 that would have materially affected the consolidated financial position, results of operations or cash flows. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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, impairment of long-lived assets, goodwill, indefinite-lived intangible assets, collectability of receivables, and income taxes. Concentrations of Credit Risk The Company's sales are to agricultural and construction equipment customers principally in the states in which it has stores as well as in the European countries in which its stores are located. The Company extends credit to its customers in the ordinary course of business and monitors its customers' financial condition to minimize its risks associated with trade receivables; however, the Company does not generally require collateral on trade receivables. The Company's cash balances are maintained in bank deposit accounts, which, generally, are in excess of federally insured limits. Concentrations in Operations The Company currently purchases new equipment, rental equipment and the related parts from a limited number of manufacturers. Although no change in suppliers is anticipated, the occurrence of such a change could cause a possible loss of sales and adversely affect operating results. The Company is the holder of authorized dealerships granted by CNH Industrial America, LLC and CNHI International SA (collectively referred to "CNH Industrial") whereby it has the right to act as an authorized dealer for the entity's equipment at specified locations. The dealership authorizations and floorplan payable facilities can be canceled by the respective entity if the Company does not observe certain established guidelines and covenants. In addition, the Company believes that the following factors related to concentrations in suppliers, and in particular CNH Industrial, have a significant impact on its operating results: • CNH Industrial's product offerings, reputation and market share • CNH Industrial's product prices and incentive and discount programs • Supply of inventory from CNH Industrial • CNH Industrial provides floorplan payable financing for the purchase of a substantial portion of the Company's inventory • CNH Industrial provides a significant percentage of the financing and lease financing used by the Company's customers to purchase CNH Industrial equipment from the Company Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to collect in exchange for those goods or services. Shipping and handling costs are recorded as cost of revenue. Sales, value added and other taxes collected from the Company's customers concurrent with the Company's revenue activities are excluded from revenue. Equipment Revenue. Equipment revenue transactions include the sale of new and used agricultural and construction equipment. The Company satisfies its performance obligations and recognizes revenue at a point in time, primarily upon the delivery of the product. Once a product is delivered, the customer has physical possession of the asset, can direct the use of the asset, and has the significant risks and rewards of ownership of the asset. Equipment transactions often include both cash and non-cash consideration. Cash consideration is paid directly by the Company's customers or by third-party financial institutions financing the Company's customer transactions. Non-cash consideration is in the form of trade-in equipment assets. The Company assigns a value to trade-in assets by estimating a future selling price, which the Company estimates based on relevant internal and third-party data, less a gross profit amount to be realized at the time the trade-in asset is sold and an estimate of any reconditioning work required to ready the asset for sale. Both cash and non-cash consideration may be received prior to or after the Company's performance obligation is satisfied. Any consideration received prior to the satisfaction of the Company's performance obligation is recognized as deferred revenue. Receivables recognized for amounts not paid at the time our performance obligation is satisfied, including amounts due from third-party financial institutions, generally do not have established payment terms but are collected in relatively short time periods. Parts Revenue. We sell a broad range of maintenance and replacement parts for both equipment that we sell and other types of equipment. The Company satisfies its performance obligation and recognizes revenue at a point in time, upon delivery of the product to the customer. Once a product is delivered, the Company has a present right to payment, the customer has physical possession of the asset, can direct the use of the asset, and has the significant risks and rewards of ownership of the asset. In many cases, customers tender payment at the time of delivery. Balances not paid at the time of delivery are typically due in full within 30 days. Most parts are sold with a thirty-day right of return or exchange. Historically, parts returns have not been material. Parts revenue also includes the retail value of parts inventories consumed during the course of customer repair and maintenance services and services provided under manufacturer warranties. As further described below, we recognize revenue from these activities over time. Service Revenue. We provide repair and maintenance services, including repairs performed under manufacturer warranties, for our customer’s equipment. We recognize service and associated parts revenue of our repair and maintenance services over time as we transfer control of these goods and services over time. The Company recognizes revenue over time in the amount to which we have the right to invoice the customer, as such an amount corresponds to the value of our performance completed to date. Generally, the Company has the right to invoice the customer for labor hours incurred and parts inventories consumed during the performance of the service arrangement. Customer invoicing most often occurs at the conclusion of our repair and maintenance services. Accordingly, we recognize unbilled receivables for the amount of unbilled labor hours incurred and parts inventories consumed under our repair and maintenance arrangements. Upon customer invoicing, unbilled receivables are reclassified to receivables. In many cases, customers tender payment at the completion of our work and the creation of the invoice. Balances not paid at the time of invoicing are typically due in full within 30 days. Rental and Other Revenue. We rent equipment to our customers on a short-term basis for periods ranging from a few days to a few months. Rental revenue is recognized on a straight-line basis over the period of the related rental agreement. Revenue from rental equipment delivery and pick-up services is recognized when the service is performed. Other revenues primarily consist of fees charged in connection with short-haul equipment delivery and pick-up services, in which revenue is recognized at a point in time when the service is completed, and Global Positioning System ("GPS") signal subscriptions, in which revenue is recognized on a straight-line basis over the subscription period. Manufacturer Incentives and Discounts The Company receives various manufacturer incentives and discounts, which are based on a variety of factors. Discounts and incentives related to the purchase of inventory are recognized as a reduction of inventory prices and recognized as a reduction of cost of revenue when the related inventory is sold. Other incentives, reflecting reimbursement of qualifying expenses, are recognized as a reduction of the related expense when earned. Receivables and Credit Policy Trade accounts receivable due from customers are uncollateralized customer obligations due under normal trade terms requiring payment within 30 to 90 days from the invoice date. Balances unpaid after the due date based on trade terms are considered past due and begin to accrue interest. Payments of trade receivables are allocated to the specific invoices identified on the customer's remittance advice or, if unspecified, are applied to the earliest unpaid invoices. Trade accounts receivable due from manufacturers relate to discount programs and incentive programs. Trade accounts receivable due from finance companies primarily consist of contracts in transit with finance companies and balances due from credit card companies. These receivables do not generally have established payment terms but are collected in relatively short time periods. Unbilled receivables primarily represent unbilled labor hours incurred and parts inventories consumed during the performance of service arrangements for our customers at their retail rates. The carrying amount of trade receivables is reduced by a valuation allowance that reflects management's best estimate of the amounts that will not be collected. Management reviews aged receivable balances and estimates the portion, if any, of the balance that will not be collected. Account balances are charged off after all appropriate means of collection have been exhausted and the potential for recovery is considered remote. Inventories New and used equipment are stated at the lower of cost (specific identification) or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. All new and used equipment inventories, including that which has been rented, are subject to periodic lower of cost or net realizable value evaluations that consider various factors including aging and condition of the equipment and market conditions. Equipment inventory values are adjusted whenever the carrying amount exceeds the net realizable value. Parts inventories are valued at the lower of average cost or net realizable value. The Company estimates its lower of cost or net realizable value adjustments on its parts inventories based on various factors including aging and sales of each type of parts inventory. Work in process represents costs incurred in the reconditioning and preparation for sale of our equipment inventories. Property and Equipment Property and equipment is carried at cost less accumulated depreciation and amortization. Depreciation and amortization are computed on a straight-line basis over the estimated useful life of each asset, as summarized below: Buildings and leasehold improvements Lesser of 10 - 40 years or lease term Machinery and equipment 3 - 10 years Furniture and fixtures 3 - 10 years Vehicles 5 - 10 years Rental fleet 3 - 10 years Depreciation for income tax reporting purposes is computed using accelerated methods. Goodwill Goodwill is recognized and initially measured as any excess of the acquisition-date consideration transferred in a business combination over the acquisition-date amounts recognized for the net identifiable assets acquired. Goodwill is not amortized but is tested for impairment annually, or more frequently if an event occurs or circumstances change that would more likely than not result in an impairment of goodwill. Impairment testing is performed at the reporting unit level. A reporting unit is defined as an operating segment or one level below an operating segment, referred to as a component. A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. The goodwill impairment analysis is a single-step quantitative assessment that identifies both the existence of impairment and the amount of impairment loss by comparing the estimated fair value of a reporting unit to its carrying value, with any excess carrying value over the fair value being recognized as an impairment loss, limited to the total amount of goodwill allocated to that reporting unit. The Company performs its annual goodwill impairment test as of December 31st of each year and has identified one reporting unit that carries a goodwill balance. Intangible Assets Intangible assets with a finite life consist of customer relationships and covenants not to compete, and are carried at cost less accumulated amortization. The Company amortizes the cost of identified intangible assets on a straight-line basis over the expected period of benefit, which is generally five years for customer relationships and the contractual term for covenants not to compete, which range from 3 to 5 years. Intangible assets with an indefinite life consist of distribution rights with manufacturers. Distribution rights are classified as an indefinite-lived intangible asset because the Company's distribution agreements continue indefinitely by their terms, or are routinely awarded or renewed without substantial cost or material modifications to the underlying agreements. Accordingly, the Company believes that its distribution rights intangible assets will contribute to its cash flows for an indefinite period, therefore the carrying amount of distribution rights is not amortized, but is tested for impairment annually, or more frequently upon the occurrence of certain events or when circumstances indicate that impairment may be present. The impairment test is a single-step assessment that identifies both the existence of impairment and the amount of impairment loss by comparing the estimated fair value of the asset to its carrying value, with any excess carrying value over the fair value being recognized as an impairment loss. The Company performs its annual impairment test as of December 31st of each year. See Note 7 for details and results of the Company's impairment testing. Impairment of Long-Lived Assets The Company's long-lived assets consist of its property and equipment. These assets are reviewed for potential impairment when events or circumstances indicate that the carrying value may not be recoverable. Recoverability is measured by comparing the estimated future undiscounted cash flows of such assets to their carrying values. If the estimated undiscounted cash flows exceed the carrying value, the carrying value is considered recoverable and no impairment recognition is required. However, if the sum of the undiscounted cash flows is less than the carrying value of the asset, the estimated fair value of the long-lived asset is compared to its carrying value and any amount by which the carrying value exceeds the fair value is recognized as an impairment charge. When reviewing long-lived assets for impairment, we group long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Long-lived assets deployed and used by individual store locations are reviewed for impairment at the individual store level. Other long-lived assets shared across stores within a segment or shared across segments are reviewed for impairment on a segment or consolidated level as appropriate. During the year ended January 31, 2021, the Company determined that certain events or circumstances, including a current period operating loss combined with historical losses and anticipated future operating losses, within certain of its stores was an indication that the long-lived assets of these stores may not be recoverable. The aggregate carrying value of such assets totaled $6.4 million. In light of these circumstances, the Company performed a long-lived asset impairment analysis for these assets and concluded that the carrying value was not recoverable. Accordingly, the Company estimated the fair value of the assets using an income approach. The Company recognized total impairment charges of $0.9 million, of which $0.3 million related to the Agriculture segment and $0.6 million related to the Construction segment. All impairment charges recognized are included in the Impairment of Intangible and Long-Lived Assets line item in the consolidated statements of operations. We performed similar impairment analyses at the end of fiscal 2020 and 2019. The Company recognized impairment charges totaling $3.1 million on long-lived assets during the year ended January 31, 2020, of which $2.3 million related to the Agriculture segment and $0.8 million related to the Construction segment. The Company recognized impairment charges totaling $2.2 million on long-lived assets during the year ended January 31, 2019, of which $0.9 million related to the Agriculture segment, $1.1 million related to the Construction segment, and $0.2 million related to the International segment. Construction of Leased Assets and Sale-Leaseback Accounting The Company, from time to time, performs construction projects on its store locations, which are recorded as property and equipment in the consolidated balance sheet during the construction period. Upon completion, these assets are either placed in service, at which point the depreciation of the asset commences, or are part of a sale-leaseback transaction with a third-party buyer/lessor. In certain other situations, the Company enters into build-to-suit construction projects with third-party lessors. Under the applicable lease accounting rules, certain forms of lessee involvement in the construction of the leased asset deem the Company to be the owner of the leased asset during the construction period and requires capitalization of the lessor's total project costs on the consolidated balance sheet with the recognition of a corresponding financing obligation. Upon completion of a project for which the constructed assets are sold to a buyer/lessor or the completion of a capitalized build-to suit construction project, the Company performs a sale-leaseback analysis to determine if the asset and related financing obligation can be derecognized from the consolidated balance sheet. Certain provisions in a number of our lease agreements, primarily provisions regarding repurchase options, are deemed to be continuing involvement in the sold asset which precludes sale recognition. In such cases, the asset remains on the consolidated balance sheet under property and equipment and the proceeds received in the sale-leaseback transaction are recognized as a financing obligation within long-term debt in the consolidated balance sheet. Both the asset and the financing obligation are amortized over the lease term. In instances in which the Company has no continuing involvement in the sold asset, the criteria for sale recognition are met and the asset and any related financing obligation are derecognized from the consolidated balance sheet, and the lease is analyzed for proper accounting treatment as either an operating or finance lease. Derivative Instruments In the normal course of business, the Company is subject to risk from adverse fluctuations in foreign currency exchange rates. The Company may manage its market risk exposures through a program that includes the use of derivative instruments, primarily foreign exchange forward contracts. The Company's objective in managing its exposure to market risk is to minimize the impact on earnings, cash flows and the consolidated balance sheet. The Company does not use derivative instruments for trading or speculative purposes. All outstanding derivative instruments are recognized in the consolidated balance sheet at fair value. The effect on earnings from recognizing the fair value of the derivative instrument depends on its intended use, the hedge designation, and the effectiveness in offsetting the exposure of the underlying hedged item. Changes in fair values of instruments designated to reduce or eliminate fluctuations in the fair values of recognized assets and liabilities and unrecognized firm commitments are reported currently in earnings along with the change in the fair value of the hedged items. Changes in the fair value of derivative instruments that are not designated as hedging instruments or do not qualify for hedge accounting treatment are reported currently in earnings. Income Taxes The Company uses the asset and liability method to account for income taxes. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that a portion or all of the deferred tax assets will not be realized. Changes in valuation allowances are included in its provision for income taxes in the period of the change. Deferred tax assets and liabilities are netted by taxing jurisdiction and presented as either a net asset or liability position, as applicable, on the consolidated balance sheets. The Company recognizes the financial statement benefit of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured as the largest amount that has a greater than 50% likelihood of being realized. Changes in the recognition or measurement of such positions are reflected in its provision for income taxes in the period of the change. The Company's policy is to recognize interest and penalties related to income tax matters within its provision for income taxes. Advertising Costs Costs incurred for producing and distributing advertising are expensed as incurred. Advertising expense amounted to $2.2 million, $2.2 million and $2.1 million for the years ended January 31, 2021, 2020 and 2019, respectively. Stock-Based Compensation The Company accounts for stock-based compensation at the fair value of the related equity instrument over the applicable service or performance period. Comprehensive Income and Foreign Currency Matters For the Company, comprehensive income (loss) represents net income adjusted for foreign currency translation adjustments. For its foreign subsidiaries in which their local currency is their functional currency, assets and liabilities are translated into U.S. dollars at the balance sheet date exchange rate. Income and expenses are translated at average exchange rates for the year. Foreign currency translation adjustments are recorded directly as other comprehensive income (loss), a component of stockholders' equity. For its foreign subsidiaries in which the local currency is not the functional currency, prior to translation into U.S. dollars, amounts must first be remeasured from the local currency into the functional currency. Nonmonetary assets and liabilities are remeasured at historical exchange rates and monetary assets and liabilities are remeasured at the balance sheet date exchange rate. Income and expenses are remeasured at average exchange rates for the year. Foreign currency remeasurement adjustments are included in the statement of operations. The Company recognized, in interest and other income (expense) in its consolidated statements of operations, a net foreign currency transaction loss of $2.8 million and $0.9 million for the years ended January 31, 2021 and 2019, respectively, and a net foreign currency transaction gain of $0.4 million for the year ended January 31, 2020. Business Combinations The Company accounts for business combinations by allocating the purchase price amongst the assets acquired, including identifiable intangible assets, and liabilities assumed based on the fair values of the acquired assets and assumed liabilities. The acquisition accounting is finalized during the measurement period, which may not exceed one year from the date of acquisition. During the measurement period the Company's accounting for the business combination transaction may be based on estimates due to various unknown factors present at the date of acquisition. Fair Value Measurements Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Three levels of inputs may be used to measure fair value: Level 1—Values derived from unadjusted quoted prices in active markets for identical assets and liabilities. Level 2—Values derived from observable inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets in markets that are not active. Level 3—Values derived from unobservable inputs for which there is little or no market data available, thereby requiring the reporting entity to develop its own assumptions. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Segment Reporting The Company operates its business in three reportable segments, the Agriculture, Construction and International segments. Recent Accounting Guidance Accounting guidance adopted In June 2016, the Financial Accounting Standards Board ("FASB") issued a new standard, codified in Accounting Standard Codification ("ASC") 326, Financial Instruments - Credit Losses , that modifies how entities measure credit losses on most financial instruments. The new standard replaced the "incurred loss" model with an "expected credit loss" model that requires consideration of a broader range of information to estimate expected credit losses over the lifetime of the asset. The guidance impacts the Company on its accounts receivable portfolio but specifically excluded receivables from operating lease arrangements and, therefore, the Company’s receivables from rental contracts were not impacted. The guidance also requires new disclosures to allow the users of the financial statements to understand the credit risk inherent in a portfolio and how management monitors the credit quality of the portfolio, management’s estimate of expected credit losses, and changes in the estimate of expected credit losses that have taken place during the reporting period. The Company adopted the new guidance on February 1, 2020 using a modified retrospective approach and recognized an immaterial cumulative-effect adjustment to retained earnings as of the effective date. The Company identified and updated existing internal controls and procedures to ensure compliance with the new guidance, but such modifications were not deemed to be material to the Company's overall system of internal control. While the adoption of this standard did not have a material impact on the Company's consolidated financial statements, it required changes to the Company's process of estimating expected credit losses on trade receivables. See Note 4 for further discussion of our accounts receivables. In February 2018, the FASB issued guidance on the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract, codified in ASC 350-40, Internal Use Software . This guidance aligns the accounting for costs incurred to implement a cloud computing arrangement that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The Company adopted this standard on February 1, 2020, using the prospective transition approach. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. Accounting guidance not yet adopted In March 2020, the FASB issued Accounting Standard Update ("ASU") No. 2020-04 , Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Jan. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Earnings Per Share [Text Block] | EARNINGS PER SHARE Earnings 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, earnings of the Company are allocated between common stockholders and these participating securities based on the weighted-average number of shares of common stock and participating securities outstanding during the relevant period. Basic EPS is computed by dividing net income attributable to Titan Machinery Inc. common stockholders by the weighted-average number of shares of common stock outstanding during the relevant period. Diluted EPS is computed by dividing net income attributable to Titan Machinery Inc. common stockholders by the weighted-average number of 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 for years with net income. All anti-dilutive securities were excluded from the computation of diluted EPS. The following table sets forth the calculation of basic and diluted EPS: Year Ended January 31, 2021 2020 2019 (in thousands, except per share data) Numerator Net income $ 19,356 $ 13,953 $ 12,182 Allocation to participating securities (325) (221) (202) Net income attributable to Titan Machinery Inc. common stockholders $ 19,031 $ 13,732 $ 11,980 Denominator Basic weighted-average common shares outstanding 22,100 21,946 21,809 Plus: incremental shares from assumed vesting of restricted stock units 4 7 7 Diluted weighted-average common shares outstanding 22,104 21,953 21,816 Earnings per Share: Basic $ 0.86 $ 0.63 $ 0.55 Diluted $ 0.86 $ 0.63 $ 0.55 Anti-dilutive shares excluded from diluted weighted-average common shares outstanding: Shares underlying senior convertible notes (conversion price of $43.17) — — 1,057 |
REVENUE
REVENUE | 12 Months Ended |
Jan. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE The following tables present our revenue disaggregated by revenue source and segment for the years ended January 31, 2021, 2020 and 2019: Year Ended January 31, 2021 Agriculture Construction International Total (in thousands) Equipment $ 654,244 $ 193,495 $ 168,332 $ 1,016,071 Parts 151,278 51,186 42,212 244,676 Service 74,963 25,224 7,042 107,229 Other 3,122 2,295 400 5,817 Revenue from contracts with customers 883,607 272,200 217,986 1,373,793 Rental 2,878 33,545 1,006 37,429 Total revenues $ 886,485 $ 305,745 $ 218,992 $ 1,411,222 Year Ended January 31, 2020 Agriculture Construction International Total (in thousands) Equipment $ 535,792 $ 194,675 $ 186,735 $ 917,202 Parts 141,093 52,160 40,964 234,217 Service 66,158 26,189 6,818 99,165 Other 2,989 2,895 264 6,148 Revenue from contracts with customers 746,032 275,919 234,781 1,256,732 Rental 3,010 44,115 1,314 48,439 Total revenues $ 749,042 $ 320,034 $ 236,095 $ 1,305,171 Year Ended January 31, 2019 Agriculture Construction International Total (in thousands) Equipment $ 535,034 $ 185,163 $ 188,981 $ 909,178 Parts 127,741 47,404 35,651 210,796 Service 58,823 23,267 4,750 86,840 Other 2,690 3,896 179 6,765 Revenue from contracts with customers 724,288 259,730 229,561 1,213,579 Rental 2,505 42,259 3,162 47,926 Total revenues $ 726,793 $ 301,989 $ 232,723 $ 1,261,505 Deferred revenue from contracts with customers totaled $57.7 million and $39.5 million as of January 31, 2021 and January 31, 2020. Our deferred revenue most often increases in the fourth quarter of each fiscal year, due to a higher level of customer down payments or prepayments. In the fourth quarter of the fiscal year, longer time periods between customer payments and delivery of the equipment occur. The increase in deferred revenue from January 31, 2020 to January 31, 2021 was primarily due to increased equipment sales activity, including prepayments and trade-in activity on pending equipment sale transactions in the fourth quarter of fiscal 2021. During the year ended January 31, 2021, the Company recognized substantially all of the revenue that was included in the deferred revenue balance as of January 31, 2020. The following is a summary of deferred revenue as of January 31, 2021 and January 31, 2020: January 31, 2021 January 31, 2020 (in thousands) Deferred revenue from contracts with customers $ 57,731 $ 39,512 Deferred revenue from rental and other contracts 1,687 1,456 $ 59,418 $ 40,968 No material amount of revenue was recognized during the year ended January 31, 2021 from performance obligations satisfied in previous periods. The Company has elected as a practical expedient to not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of service of one year or less, and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. The contracts for which the practical expedient has been applied include (i) equipment revenue transactions, which do not have a stated contractual term, but are short-term in nature, and (ii) service revenue transactions, which also do not have a stated contractual term but are generally completed within 30 days and for such contracts we recognize revenue over time at the amount to which we have the right to invoice for services completed to date. |
RECEIVABLES
RECEIVABLES | 12 Months Ended |
Jan. 31, 2021 | |
Receivables [Abstract] | |
RECEIVABLES | RECEIVABLES The Company provides an allowance for expected credit losses on its nonrental receivables. To measure the expected credit losses, receivables have been grouped based on shared credit risk characteristics as shown in the table below. Trade and unbilled receivables from contracts with customers have credit risk and the allowance is determined by applying expected credit loss percentages to aging categories based on historical experience that are updated at least annually. The rates may also be adjusted to the extent future events are expected to differ from historical results. Given that the credit terms for these receivables are short-term, changes in credit loss percentages due to future events may not occur on a frequent basis. In addition, the allowance is adjusted based on information obtained by continued monitoring of individual customer credit. Trade receivables from finance companies, other receivables due from manufacturers, and other receivables have not historically resulted in any credit losses to the Company. These receivables are short-term in nature and deemed to be of good credit quality and have no need for any allowance for expected credit losses. Management continually monitors these receivables and should information be obtained that identifies potential credit risk, an adjustment to the allowance would be made if deemed appropriate. Trade and unbilled receivables from rental contracts are primarily in the United States and are specifically excluded from the accounting guidance in determining an allowance for expected losses. The Company provides an allowance for these receivables based on historical experience and using credit information obtained from continued monitoring of customer accounts. January 31, 2021 January 31, 2020 (in thousands) Trade and unbilled receivables from contracts with customers Trade receivables due from customers $ 31,664 $ 36,400 Unbilled receivables 12,909 13,944 Less allowance for expected credit losses 2,994 2,943 41,579 47,401 Trade receivables due from finance companies 14,133 12,352 Trade and unbilled receivables from rental contracts Trade receivables 4,329 7,381 Unbilled receivables 520 861 Less allowance for expected credit losses 1,939 2,180 2,910 6,062 Other receivables Due from manufacturers 8,720 5,763 Other 1,767 1,198 10,487 6,961 Receivables, net of allowance for expected credit losses $ 69,109 $ 72,776 Following is a summary of allowance for credit losses on trade and unbilled accounts receivable by segment: Agriculture Construction International Total (in thousands) Balance at February 1, 2020 $ 181 $ 1,016 $ 1,746 $ 2,943 Current expected credit loss provision 115 282 167 564 Write-offs charged against allowance (125) (247) (344) (716) Credit loss recoveries collected 58 23 6 87 Foreign exchange impact — — 116 116 Balance at January 31, 2021 $ 229 $ 1,074 $ 1,691 $ 2,994 The following table presents impairment losses on receivables arising from sales contracts with customers and receivables arising from rental contracts: Year Ended January 31, 2021 2020 (in thousands) Impairment losses on: Receivables from sales contracts $ 356 $ 1,373 Receivables from rental contracts 142 1,124 $ 498 $ 2,497 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jan. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES January 31, 2021 January 31, 2020 (in thousands) New equipment $ 206,683 $ 358,339 Used equipment 131,369 157,535 Parts and attachments 78,982 79,813 Work in process 1,424 1,707 $ 418,458 $ 597,394 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Jan. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT January 31, 2021 January 31, 2020 (in thousands) Rental fleet equipment $ 77,530 $ 104,133 Machinery and equipment 23,354 22,682 Vehicles 55,884 51,850 Furniture and fixtures 43,678 41,720 Land, buildings, and leasehold improvements 90,730 70,408 291,176 290,793 Less accumulated depreciation 144,011 145,231 $ 147,165 $ 145,562 Depreciation expense totaled $21.9 million, $26.5 million and $23.6 million for the years ended January 31, 2021, 2020 and 2019, respectively. The Company had assets related to sale-leaseback financing obligations and finance leases associated with real estate of store locations, which are included in the land, buildings and leasehold improvements balance |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended |
Jan. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL Definite-Lived Intangible Assets The following is a summary of definite-lived intangible assets as of January 31, 2021 and 2020: January 31, 2021 January 31, 2020 Cost Accumulated Net Cost Accumulated Net (in thousands) (in thousands) Covenants not to compete $ 150 $ (38) $ 112 $ 100 $ (7) $ 93 Customer relationships 360 (185) 175 345 (83) 262 $ 510 $ (223) $ 287 $ 445 $ (90) $ 355 Intangible asset amortization expense was $0.1 million for each of the three years ended January 31, 2021, 2020 and 2019. The covenants not to compete and customer relationships assets for the year ended January 31, 2021 have a weighted-average amortization period of 3.2 years and 3.0 years, respectively. As of January 31, 2021, future amortization expense is expected to be as follows: Fiscal years ending January 31, Amount (in thousands) 2022 $ 112 2023 74 2024 63 2025 38 2026 — Thereafter — $ 287 Indefinite-Lived Intangible Assets The Company's indefinite-lived intangible assets consist of distribution rights assets. Changes in the carrying amount of distribution rights during the years ended January 31, 2021 and 2020 are as follows: Agriculture Construction International Total (in thousands) Balance, January 31, 2019 $ 5,050 $ 237 $ 1,805 $ 7,092 Arising from business combinations 1,527 — 96 1,623 Foreign currency translation — — (31) (31) Impairment 507 165 — 672 Balance, January 31, 2020 6,070 72 1,870 8,012 Arising from business combinations 195 — — 195 Foreign currency translation — — 149 149 Impairment — — 858 858 Balance, January 31, 2021 $ 6,265 $ 72 $ 1,161 $ 7,498 The Company performs at least an annual impairment testing of its indefinite-lived distribution rights intangible assets and, due to ongoing losses and the impact of COVID-19, an interim test was completed in the third quarter of fiscal 2021 for our Germany assets. Under the impairment test, the fair value of distribution rights intangible assets is estimated based on a multi-period excess earnings model, an income approach. This model allocates future estimated earnings of the store/complex amongst working capital, fixed assets and other intangible assets of the store/complex and any remaining earnings (the "excess earnings") are allocated to the distribution rights intangible assets. The earnings allocated to the distribution rights are then discounted to arrive at the present value of the future estimated excess earnings, which represents the estimated fair value of the distribution rights intangible asset. The discount rate applied reflects the Company's estimate of the weighted-average cost of capital of comparable companies plus an additional risk premium to reflect the additional risk inherent in the distribution right asset. The results of the Company's impairment testing for the Germany distribution rights intangible assets for the quarter ended October 31, 2020, indicated that the estimated fair value of the tested distribution rights was below the carrying value of such assets, thus requiring an impairment to be recognized. Impairment charges of $0.9 million were recognized and are included in the Impairment of Intangibles and Long-lived Assets amount in the consolidated statements of operations. The impairment charges arose as the result of lowered expectations of the future financial performance of this reporting unit. The Company's assumptions about future financial performance were impacted by the current year operating performance of this reporting unit and by the anticipated impact that challenging industry conditions, including COVID-19, may have on the future financial performance of this reporting unit. The results of the Company's distribution rights impairment tests for the year ended January 31, 2021 indicated no additional impairment. The results from the impairment test for the prior fiscal year ended January 31, 2020 indicated impairment of $0.7 million and no impairment was indicated for the fiscal year ended January 31, 2019. Goodwill Changes in the carrying amount of goodwill during the years ended January 31, 2021 and 2020 are as follows: Agriculture International Total (in thousands) Balance, January 31, 2019 $ 250 $ 911 $ 1,161 Arising from business combinations 699 499 1,198 Foreign currency translation — (32) (33) Balance, January 31, 2020 949 1,378 2,327 Arising from business combinations 484 — 484 Foreign currency translation — 75 75 Impairment — 1,453 1,453 Balance, January 31, 2021 $ 1,433 $ — $ 1,433 The Company performs at least an annual impairment testing of goodwill and, due to ongoing losses and the impact of COVID-19, an interim impairment test was performed in the third quarter of fiscal 2021 for our Germany reporting unit. Under the impairment test, the fair value of the reporting unit is estimated using an income approach in which a discounted cash flow analysis is utilized, which includes a five-year forecast of future operating performance for the reporting unit and a terminal value that estimates sustained long-term growth. The discount rate applied to the estimated future cash flows reflects an estimate of the weighted-average cost of capital of comparable companies. The quantitative goodwill impairment analysis for the Germany reporting unit indicated that the estimated fair value of the reporting unit was less than the carrying value. T he implied fair value of the goodwill associated with the reporting unit approximated zero, thus requiring a full impairment charge of the goodwill carrying value of the reporting unit. A s such, a goodwill impairment charge of $1.5 million was recognized, which is included in Impairment of Goodwill in the consolidated statements of operations. The impairment charge arose as the result of lowered expectations of the future financial performance of this reporting unit. The Company's assumptions about future financial performance were impacted by the current year operating performance of this reporting unit and by the anticipated impact that challenging industry conditions, including COVID-19, may have on the future financial performance of this reporting unit. The results of the Company's annual goodwill impairment tests for the fiscal years ended January 31, 2021, 2020 and 2019 indicated that no goodwill impairment existed as of the test date. |
FLOORPLAN PAYABLE_LINES OF CRED
FLOORPLAN PAYABLE/LINES OF CREDIT | 12 Months Ended |
Jan. 31, 2021 | |
Line of Credit Facility [Abstract] | |
FLOORPLAN PAYABLE/LINES OF CREDIT | FLOORPLAN PAYABLE/LINES OF CREDIT Floorplan payable balances reflect amounts owed to manufacturers for equipment inventory purchases and amounts outstanding under our various floorplan line of credit facilities. In the consolidated statements of cash flows, the Company reports cash flows associated with manufacturer floorplan financing as operating cash flows and cash flows associated with non-manufacturer floorplan financing as financing cash flows. As of January 31, 2021, the Company had floorplan lines of credit totaling $773.0 million, which is primarily comprised of three significant floorplan lines of credit: (i) a $450.0 million credit facility with CNH Industrial, (ii) a $185.0 million line of credit with a group of banks (the "Bank Syndicate"), and (iii) a $60.0 million credit facility with DLL Finance LLC (“DLL Finance”). CNH Industrial Floorplan Payable Line of Credit As of January 31, 2021, the Company had a $450.0 million credit facility with CNH Industrial, of which $360.0 million is available for domestic financing and $90.0 million is available for European financing. The domestic financing facility offers financing for new and used equipment inventories. Available borrowings under the credit facility are reduced by outstanding floorplan payable balances and other acquisition-related financing arrangements with CNH Industrial. The credit facility charges interest at a rate equal to the prime rate plus 3.25% for the financing of new and used equipment inventories and rental fleet assets. CNH Industrial offers periods of reduced interest rates and interest-free periods. Repayment terms vary, but generally payments are made from sales proceeds or rental revenue generated from the related inventories or rental fleet assets. Balances under the outstanding CNH Industrial credit facility are secured by the inventory or rental fleet purchased with the floorplan proceeds. The European financing facility offers financing for new equipment inventories. Available borrowings under the credit facility are reduced by outstanding floorplan payable balances. Amounts outstanding are generally due approximately 75 days after the date of invoice by CNH Industrial. Generally, no interest is charged on outstanding balances. However, in certain international markets the Company receives extended terms from CNH Industrial similar to what we receive domestically with reduced interest and interest free periods. Amounts outstanding are secured by the inventory purchased with the floorplan proceeds. The CNH Industrial credit facility contains financial covenants that impose a maximum level of adjusted debt to tangible net worth of 3.50:1.00 and minimum fixed charge coverage ratio of 1.10:1.00. It also contains various restrictive covenants that require prior consent of CNH Industrial if the Company desires to engage in any acquisition of, consolidation or merger with, any other business entity in which the Company is not the surviving company; create subsidiaries; move any collateral outside of the U.S.; or sell, rent, lease or otherwise dispose or transfer any of the collateral, other than in the ordinary course of business. CNH Industrial’s consent is also required for the acquisition of any CNH Industrial dealership. In addition, the CNH Industrial credit facility restricts the Company's ability to incur any liens upon any substantial part of the assets. The credit facility automatically renews on August 31st of each year unless earlier terminated by either party. As of January 31, 2021, the Company was in compliance with the adjusted debt to tangible net worth and fixed charge coverage ratio financial covenants under this credit facility. Bank Syndicate Credit Agreement - Floorplan Payable and Working Capital Lines of Credit On April 3, 2020, the Company entered into a Third Amended and Restated Credit Agreement (the "Bank Syndicate Agreement") with a group of banks, that amended and restated the Company's prior $200 million Wells Fargo Credit Agreement, dated October 28, 2015. The Bank Syndicate Agreement provides for a secured credit facility in an amount up to $250.0 million, consisting of a $185.0 million floorplan facility (the "Floorplan Loan") and a $65.0 million operating line (the "Revolver Loan"). The amounts available under the Bank Syndicate Agreement are subject to base calculations and reduced by outstanding standby letters of credit and certain reserves. The Bank Syndicate Agreement includes a variable interest rate on outstanding balances, charges a 0.25% non-usage fee on the average monthly unused amount, 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 based upon one-month, two-month, or three-month LIBOR, as chosen by the Company, but in no event shall the LIBOR Rate be less than 0.50%. The Base Rate is the greater of (a) the prime rate of interest announced, from time to time, by Bank of America; (b) the Federal Funds Rate plus 0.5%, or (c) the one-month LIBOR Rate plus 1%, but in no event shall the Base Rate be less than zero. The applicable margin rate is determined based on excess availability under the Bank Syndicate Agreement and ranges from 0.5% to 1.0% for Base Rate Loans and 1.50% to 2.00% for LIBOR Rate Loans. The Bank Syndicate Agreement does not obligate the Company to maintain financial covenants, except in the event that excess availability (each as defined in the Bank Syndicate Agreement) is less than 15% of the lower of the borrowing base or the size of the maximum credit line, at which point the Company is required to maintain a fixed charge coverage ratio of at least 1.10:1.00. Based on our excess availability and cash collateral, we were not subject to the fixed charge coverage ratio as of January 31, 2021. The Bank Syndicate Credit Agreement includes various restrictions on the Company and its subsidiaries' activities, including, under certain conditions, limitations on the Company’s ability to make certain cash payments including for cash dividends and stock repurchases, issuance of equity instruments, acquisitions and divestitures, and entering into new indebtedness transactions. As of January 31, 2021, under these provisions of the Bank Syndicate Agreement, the Company had an unrestricted dividend availability of approximately $47.4 million. The Bank Syndicate Agreement matures on April 3, 2025. The Floorplan Loan is used to finance equipment inventory purchases. Amounts outstanding are recorded as floorplan payables, within current liabilities on the consolidated balance sheets, as the Company intends to repay amounts borrowed within one year. The Revolver Loan is used to finance rental fleet equipment and for general working capital requirements of the Company. Amounts outstanding are typically 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. Due to cash generation throughout fiscal 2021, the Company was able to repay the amount borrowed in fiscal 2021. This balance can be drawn on in the future when the need arises. The balances outstanding on the Revolver Loan as of January 31, 2021 and 2020 are disclosed in Note 11. DLL Finance Floorplan Payable Line of Credit As of January 31, 2021, the Company had a $60.0 million credit facility with DLL Finance, of which $46.5 million is available for domestic financing and $13.5 million is available for financing in certain of our European markets. The DLL Finance credit facility may be used to purchase or refinance new and used equipment inventory. Amounts outstanding for domestic financing bear interest on outstanding balances of three-month LIBOR plus an applicable margin of 2.85%. Amounts outstanding for European financing bear interest on outstanding balances of three-month EURIBOR plus an applicable margin of 2.10% to 2.50%. The credit facility allows for increase, decrease or termination of the facility by DLL Finance upon 90 days notice. The credit facility contains financial covenants that impose a maximum net leverage ratio of 3.50:1.00 and a minimum fixed charge coverage ratio of 1.10:1.00. The credit facility also requires the Company to obtain prior consent from DLL Finance if the Company desired to engage in any acquisition meeting certain financial thresholds. The balances outstanding with DLL Finance are secured by the inventory or rental fleet purchased with the floorplan proceeds. Repayment terms vary by individual notes, but generally payments are made from sales proceeds or rental revenue from the related inventories or rental fleet assets. As of January 31, 2021, the Company was in compliance with the net leverage ratio and fixed charge coverage ratio financial covenants under this credit facility. Other Lines of Credit The Company’s other lines of credit include various floorplan and working capital lines of credit primarily offered by non-manufacturer financing entities. Interest charged on outstanding borrowings are generally variable rates of interest most often based on LIBOR or EURIBOR and include interest margins primarily ranging from 1.50% to 6.00%. Outstanding balances are generally secured by inventory and other current assets. In most cases these lines of credit have a one-year maturity, with an annual review process to extend the maturity date for an additional one-year period. As of January 31, 2021, the Company had a compensating balance arrangement under one of its European floorplan credit facilities which requires a minimum cash deposit to be maintained with the lender in the amount of $5.0 million for the term of the credit facility. Summary of Outstanding Amounts As of January 31, 2021 and 2020, the Company’s outstanding balance of floorplan payables and lines of credit consisted of the following: January 31, 2021 January 31, 2020 (in thousands) CNH Industrial $ 86,792 $ 187,690 Bank Syndicate Agreement Floorplan Loan — 82,700 DLL Finance 10,667 30,657 Other outstanding balances with manufacturers and non-manufacturers 64,376 70,725 $ 161,835 $ 371,772 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Jan. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES & OTHER January 31, 2021 January 31, 2020 (in thousands) Compensation $ 21,635 $ 19,732 Sales, payroll, real estate and value added taxes 8,287 5,947 Insurance 2,839 3,336 Lease residual value guarantees 868 2,054 Finance lease liabilities 9,823 1,708 Interest 257 608 Other 5,082 4,975 $ 48,791 $ 38,360 |
SENIOR CONVERTIBLE NOTES
SENIOR CONVERTIBLE NOTES | 12 Months Ended |
Jan. 31, 2021 | |
Senior Convertible Notes | |
SENIOR CONVERTIBLE NOTES | |
SENIOR CONVERTIBLE NOTES | SENIOR CONVERTIBLE NOTES On April 24, 2012, the Company issued through a private offering $150 million of 3.75% Senior Convertible Notes (the "Senior Convertible Notes"). The Senior Convertible Notes bore interest at a rate of 3.75% per year, payable semi-annually in arrears on May 1 and November 1 of each year. The Senior Convertible Notes matured on May 1, 2019, and the Company repaid the outstanding principal balance of $45.6 million on the maturity date, and as such there was no interest expense for the fiscal year ended January 31, 2021. The Company recognized interest expense associated with its Senior Convertible Notes as follows: Year Ended January 31, 2020 2019 (in thousands) Cash Interest Expense Coupon interest expense $ 421 $ 2,014 Noncash Interest Expense Amortization of debt discount 350 1,626 Amortization of transaction costs 45 216 $ 816 $ 3,856 The effective interest rate of the liability component was equal to 7.3% for each of the periods presented. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Jan. 31, 2021 | |
Long-Term Debt (excluding senior convertible notes) | |
LONG-TERM DEBT | |
LONG-TERM DEBT | LONG-TERM DEBT The following is a summary of long-term debt: Year Ended January 31, Description Maturity Dates Interest Rates 2021 2020 (in thousands) Mortgage loans, secured Various through May 2039 2.1% to 5.1% $ 22,916 $ 15,252 Sale-leaseback financing obligations Various through December 2030 3.4% to 10.3% 16,505 17,781 Bank Syndicate Agreement - Revolver Loan April 2025 2.3% — 10,000 Vehicle loans, secured Various through December 2026 1.7% to 3.9% 9,999 7,468 Other January 2021 2.6% 77 1,067 Total debt 49,497 51,568 Less: current maturities 4,591 13,779 Long-term debt, net $ 44,906 $ 37,789 Long-term debt maturities are as follows: Years Ending January 31, Amounts (in thousands) 2022 $ 4,591 2023 4,729 2024 4,885 2025 8,345 2026 4,225 Thereafter 22,722 $ 49,497 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Jan. 31, 2021 | |
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. Derivative Instruments Not Designated as Hedging Instruments The Company periodically 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 Company's foreign currency forward contracts generally have three-month maturities, maturing on the last day of each fiscal quarter. There were no outstanding foreign currency contracts as of January 31, 2020. The notional value of outstanding foreign currency contracts as of January 31, 2021 was $8.0 million. As of January 31, 2021, the fair value of the Company's outstanding derivative instruments was not material and as of January 31, 2020 the Company had no derivative instruments. Derivative instruments recognized as assets are recorded in Prepaid expenses and other in the consolidated balance sheets, and derivative instruments recognized as liabilities are recorded in Accrued expenses and other in the consolidated balance sheets. The following table sets forth the gains recognized in income related to the Company’s derivative instruments for the years ended January 31, 2021, 2020 and 2019. Year Ended January 31, 2021 2020 2019 (in thousands) Derivatives Not Designated as Hedging Instruments: Foreign currency contracts (a) $ 934 $ 365 $ 1,696 Total Derivatives $ 934 $ 365 $ 1,696 (a) Amounts are included in Interest and other income (expense) in the consolidated statements of operations |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jan. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | CONTINGENCIES AND GUARANTEES Guarantees The Company has provided residual value guarantees to CNH Industrial Capital in connection with certain customer leasing arrangements with CNH Industrial Capital. The Company, as guarantor, may be required to provide payment to CNH Industrial Capital at the termination of the lease agreement if the customer fails to exercise the purchase option under the leasing agreement and the proceeds CNH Industrial Capital receives upon disposition of the leased asset are less than the purchase option price as stipulated in the lease agreement. As of January 31, 2021, the maximum amount of residual value guarantees was approximately $2.0 million and the lease agreements have termination dates ranging from 2021 to 2025. As of January 31, 2021, the Company has recognized a liability of approximately $1.7 million based on its estimates of the likelihood and amount of residual value guarantees that will become payable at the termination dates of the underlying leasing agreements discounted at a rate of interest to reflect the risk inherent in the liability. As of January 31, 2021, the Company has recorded a current liability, recognized in Accrued expenses and other in the consolidated balance sheets, of $0.9 million, and a long-term liability, recognized in other Long-term liabilities in the consolidated balance sheets, of $0.8 million. As of January 31, 2021, the Company had $1.2 million of guarantees on customer financing with CNH Industrial Capital. In the event that the customer defaulted on the payments owed to CNH Industrial Capital, the Company as the guarantor would be required to make those payments and any accelerated indebtedness to CNH Industrial Capital. Upon such payment, the Company would be entitled to enforce normal creditor rights against the customer including collection action for monetary damages or re-possession of the collateral if CNH Industrial Capital has a perfected security interest. No liabilities associated with these guarantees are included in the consolidated balance sheets as of January 31, 2021 as the Company deems the probability of being required to make such payments to be remote. Litigation The Company is engaged in proceedings incidental to the normal course of business. Due to their nature, such legal proceedings involve inherent uncertainties, including but not limited to, court rulings, negotiations between affected parties and governmental intervention. Based upon the information available to the Company and discussions with legal counsel, it is the Company's opinion that the outcome of the various legal actions and claims that are incidental to its business will not have a material impact on the financial position, results of operations or cash flows. Such matters, however, are subject to many uncertainties, and the outcome of any matter is not predictable with assurance. Insurance The Company has insurance policies with varying deductibility levels for property and casualty losses and is insured for losses in excess of these deductibles on a per claim and aggregate basis. The Company is primarily self-insured for health care claims for eligible participating employees. The Company has stop-loss coverage to limit its exposure to significant claims on a per claim and annual aggregate basis. The Company determines its liabilities for claims, including incurred but not reported losses, based on all relevant information, including actuarial estimates of claim liabilities. Other Matters The Company is the lessee under many real estate leases, in which it agrees to indemnify the lessor from certain liabilities arising as a result of the use of the leased premises, including environmental liabilities. Additionally, from time to time, the Company enters into agreements with third parties in connection with the sale of assets in which it agrees to indemnify the purchaser from certain liabilities or costs arising in connection with the assets. Also, in the ordinary course of business in connection with purchases or sales of goods and services, the Company enters into agreements that may contain indemnification provisions. In the event that an indemnification claim is asserted, the Company's liability would be limited by the terms of the applicable agreement. See additional information on operating lease commitments in Note 14. |
LEASES
LEASES | 12 Months Ended |
Jan. 31, 2021 | |
Leases [Abstract] | |
OPERATING LEASE COMMITMENTS | LEASES As Lessee The Company, as lessee, leases certain of its dealership locations, office space, equipment and vehicles under operating and financing classified leasing arrangements. The Company has elected to not record leases with a lease term at commencement of 12 months or less on the consolidated balance sheet; such leases are expensed on a straight-line basis over the lease term. Many real estate lease agreements require the Company to pay the real estate taxes on the properties during the lease term and require that the Company maintains property insurance on each of the leased premises. Such payments are deemed to be variable lease payments, as the amounts may change during the term of the lease. Certain leases include renewal options that can extend the lease term for periods of one to ten years. Most real estate leases grant the Company a right of first refusal or other options to purchase the real estate, generally at fair market value, either during the lease term or at its conclusion. In most cases, the Company has not included these renewal and purchase options within the measurement of the right-of-use lease asset and lease liability. Most often the Company cannot readily determine the interest rate implicit in the lease and thus applies its incremental borrowing rate to capitalize the right-of-use asset and lease liability. We estimate our incremental borrowing rate by incorporating considerations of lease term, asset class and lease currency and geographical market. Our lease agreements do not contain any material non-lease components, residual value guarantees or material restrictive covenants. The Company subleases a small number of real estate assets to third-parties, primarily dealership locations for which we have ceased operations. All sublease arrangements are classified as operating leases. The components of lease expense were as follows: Year Ended January 31, Classification 2021 2020 (in thousands) Finance lease cost: Amortization of leased assets Operating expenses $ 1,585 $ 1,457 Interest on lease liabilities Other interest expense 451 554 Operating lease cost Operating expenses and rental and other cost of revenue 18,025 21,225 Short-term lease cost Operating expenses 340 242 Variable lease cost Operating expenses 2,798 2,665 Sublease income Interest income and other income (expense) (547) (620) $ 22,652 $ 25,523 Right-of-use lease assets and lease liabilities consist of the following: Classification January 31, 2021 January 31, 2020 (in thousands) Assets Operating lease assets Operating lease assets $ 74,445 $ 88,281 Financing lease assets (a) Property and equipment, net of accumulated depreciation 12,426 6,297 Total leases assets $ 86,871 $ 94,578 Liabilities Current Operating Current operating lease liabilities $ 11,772 $ 12,259 Financing Accrued expenses and other 9,823 1,708 Noncurrent Operating Operating lease liabilities 73,567 88,387 Financing Other long-term liabilities 2,911 4,103 Total lease liabilities $ 98,073 $ 106,457 (a) Finance lease assets are recorded net of accumulated amortization of $3.0 million and $1.5 million as of January 31, 2021 and 2020, respectively. Maturities of lease liabilities as of January 31, 2021 are as follows: Operating Finance Leases Leases Total Fiscal Year Ending January 31, (in thousands) 2022 $ 16,521 $ 10,131 $ 26,652 2023 15,433 1,328 16,761 2024 14,324 582 14,906 2025 13,077 463 13,540 2026 12,910 312 13,222 Thereafter 33,252 1,084 34,336 Total lease payments 105,517 13,900 119,417 Less: Interest 20,178 1,166 21,344 Present value of lease liabilities $ 85,339 $ 12,734 $ 98,073 The weighted-average lease term and discount rate as of January 31, 2021 and 2020 are as follows: January 31, 2021 January 31, 2020 Weighted-average remaining lease term (years): Operating leases 7.2 7.9 Financing leases 1.8 5.4 Weighted-average discount rate: Operating leases 6.1% 6.1% Financing leases 5.3% 8.5% Other lease information is as follows: Year Ended January 31, 2021 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 18,267 $ 18,176 Operating cash flow from finance leases 451 553 Financing cash flows from finance leases 1,816 1,812 Operating lease assets obtained in exchange for new operating lease liabilities 3,066 1,316 Finance lease assets obtained in exchange for new finance lease liabilities 512 1,333 As Lessor The Company rents equipment to customers, primarily in the Construction segment, on a short-term basis. Our rental arrangements generally do not include minimum, noncancellable periods as the lessee is entitled to cancel the arrangement at any time. Most often, our rental arrangements extend for periods ranging from a few days to a few months. We maintain a fleet of dedicated rental assets within our Construction segment and, within all segments, may also provide short-term rentals of certain equipment inventory assets. Certain rental arrangements may include rent-to-purchase options whereby customers are given a period of time to exercise an option to purchase the related equipment at an established price with any rental payments paid applied to reduce the purchase price. All of the Company's leasing arrangements as lessor are classified as operating leases. Rental revenue is recognized on a straight-line basis over the rental period. Rental revenue includes amounts charged for loss and damage insurance on rented equipment. In most cases, our rental arrangements include non-lease components, including delivery and pick-up services. The Company accounts for these non-lease components separate from the rental arrangement and recognizes the revenue associated with these components when the service is performed. The Company has elected to exclude from rental revenue all sales, value added and other taxes collected from our customers concurrent with our rental activities. Rental billings most often occur on a monthly basis and may be billed in advance or in arrears, thus creating unbilled rental receivables or deferred rental revenue amounts. The Company manages the residual value risk of its rented assets by (i) monitoring the quality, aging and anticipated retail market value of our rental fleet assets to determine the optimal period to remove an asset from the rental fleet, (ii) maintaining the quality of our assets through on-site parts and service support and (iii) requiring physical damage insurance of our lessee customers. We primarily dispose of our rental assets through the sale of the asset by our retail sales force. Revenue generated from leasing activities is disclosed, by segment, in Note 3. The following is the balance of our dedicated rental fleet assets of our Construction segment as of January 31, 2021 and 2020, respectively: January 31, 2021 January 31, 2020 (in thousands) Rental fleet equipment $ 77,530 $ 104,133 Less accumulated depreciation 28,916 42,076 $ 48,614 $ 62,057 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income (loss) before income taxes for the years ended January 31, 2021, 2020 and 2019 consist of the following: 2021 2020 2019 (in thousands) U.S. $ 36,778 $ 14,148 $ 10,994 Foreign (6,025) 504 5,160 Total $ 30,753 $ 14,652 $ 16,154 The provision for (benefit from) income taxes charged to income for the years ended January 31, 2021, 2020 and 2019 consists of the following: 2021 2020 2019 (in thousands) Current Federal $ 12,825 $ 897 $ (110) State 1,442 116 (189) Foreign 668 1,349 1,760 Total current taxes 14,935 2,362 1,461 Deferred Federal (5,128) (375) 2,071 State 553 (1,929) (45) Foreign 1,037 641 485 Total deferred taxes (3,538) (1,663) 2,511 $ 11,397 $ 699 $ 3,972 The reconciliation of the statutory federal income tax rate to the Company's effective rate is as follows: 2021 2020 2019 U.S. statutory rate 21.0 % 21.0 % 21.0 % Foreign statutory rates (0.2) % 1.0 % 0.6 % State taxes on income net of federal tax benefit 4.8 % 5.8 % 5.6 % Valuation allowances 12.2 % (36.6) % (5.2) % Impact of Ukraine currency gains or losses (4.0) % 10.5 % 2.0 % All other, net 3.3 % 3.1 % 0.6 % 37.1 % 4.8 % 24.6 % Deferred tax assets and liabilities consist of the following as of January 31, 2021 and 2020: 2021 2020 (in thousands) Deferred tax assets: Inventory allowances $ 2,616 $ 3,037 Intangible assets 1,874 2,192 Net operating losses 5,242 4,291 Accrued liabilities and other 4,831 3,533 Receivables 1,153 1,137 Stock-based compensation 1,009 1,095 Right of use lease liability 20,874 25,325 Other 597 452 Total deferred tax assets 38,196 41,062 Valuation allowances (6,134) (2,180) Deferred tax assets, net of valuation allowances $ 32,062 $ 38,882 Deferred tax liabilities: Property and equipment $ (10,359) $ (16,752) Right of use lease asset (18,066) (22,038) Total deferred tax liabilities $ (28,425) $ (38,790) Net deferred tax asset $ 3,637 $ 92 As of January 31, 2021, the Company has recorded $36.7 million of net operating loss carryforwards within certain of its U.S. state and foreign jurisdictions; $22.9 million of net operating loss carryforwards are within foreign jurisdictions with unlimited carryforward periods, $9.2 million are within foreign jurisdictions that expire at various dates between the Company's fiscal years 2021 and 2025, and $4.6 million are within U.S. states that expire at various dates between the Company's fiscal years 2032 and 2038. In reviewing our foreign deferred tax assets as of January 31, 2021, we concluded that a full valuation allowance continued to be warranted in certain jurisdictions. It was also concluded that a full valuation allowance for the Company’s Ukraine business was warranted and a partial valuation allowance for the Company’s Germany business was warranted, based on the presence of historical losses and our expected future sources of taxable income, including the anticipated future reversal of our existing deferred tax assets and liabilities. The Company recorded an additional $3.8 million valuation allowance related to the Ukraine and Germany businesses. In total, valuation allowances of $6.1 million exist for our international entities as of January 31, 2021. At the end of fiscal year ended January 31, 2020, the Company concluded, based upon all available evidence, it was more likely than not that it would have sufficient future taxable income to realize the Company’s U.S. federal and state deferred tax assets. As a result, the Company released the $4.6 million valuation allowance associated with these deferred tax assets and recognized a corresponding benefit from income taxes in the consolidated statement of operations for the year ended January 31, 2020. The Company's conclusion regarding the realizability of such deferred tax assets was based on recent profitable domestic operations resulting in a cumulative profit over the three-year period ended January 31, 2020 and our projections of future profitability in the U.S. In reviewing our foreign deferred tax assets as of January 31, 2020, we concluded that a full valuation allowance was warranted in certain jurisdictions. In total, valuation allowances of $2.2 million existed for our international entities as of January 31, 2020. At the end of fiscal year 2019, we concluded that a partial valuation allowance was warranted for U.S. federal and state deferred tax assets, including state net operating losses, and a full valuation allowance for certain of our foreign deferred tax assets, including net operating losses. In total, valuation allowances of $6.7 million existed as of January 31, 2019. The recognition of the valuation allowances for our U.S. and foreign deferred tax assets was based on the presence of historical losses and our expected future sources of taxable income, including the anticipated future reversal of our existing deferred tax assets and liabilities. The Company files income tax returns in the U.S. federal jurisdiction and various states and foreign countries. It is no longer subject to income tax examinations by U.S. federal tax authorities for fiscal years ended prior to January 31, 2018 and state tax authorities for fiscal years ended prior to January 31, 2017. Certain foreign jurisdictions are no longer subject to income tax examinations for the calendar year periods ranging between 2012 and 2016, depending on the jurisdiction of the entity. |
CAPITAL STRUCTURE
CAPITAL STRUCTURE | 12 Months Ended |
Jan. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
CAPITAL STRUCTURE | CAPITAL STRUCTURE The Company's certificate of incorporation provides it with the authority to issue 50,000,000 shares of $0.00001 par value stock, consisting of 45,000,000 shares of common stock and 5,000,000 shares classified as undesignated. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Jan. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock-Based Compensation Plans The Company has one stock-based compensation plan, the Amended and Restated Titan Machinery Inc. 2014 Equity Incentive Plan (the"2014 Equity Incentive Plan") (the "Plan"), to provide incentive compensation to participants for services that have been or will be performed for continuing as employees or members of the Board of Directors of the Company. Under the plan, which has been approved by the stockholders of the Company, the Company may grant incentive stock options, non-qualified stock options and restricted stock for up to a maximum number of shares of common stock set forth in the Plan under all forms of awards. Shares issued for stock-based awards consist of authorized but unissued shares. The 2014 Equity Incentive Plan authorizes and makes available 2,200,000 shares for equity awards. As of January 31, 2021, the Company has 791,959 shares authorized and available for future equity awards under the 2014 Equity Incentive Plan. During the year ended January 31, 2021, the 2014 Equity Incentive Plan was amended to increase the shares available for equity awards from 1,650,000 shares to 2,200,000 shares. Compensation cost arising from stock-based compensation and charged to operations was $2.7 million for each of the years ended January 31, 2021, 2020 and 2019. The related income tax benefit (net) was $0.4 million, $0.6 million and $0.8 million for the years ended January 31, 2021, 2020 and 2019, respectively. Restricted Stock Awards ("RSAs") The Company grants RSAs as part of its long-term incentive compensation to employees and members of the Board of Directors of the Company. The fair value of these awards is determined based on the closing market price of the Company's stock on the date of grant. The RSAs primarily vest over a period of four six one The following table summarizes RSA activity for the year ended January 31, 2021: Shares Weighted Average Grant Date Fair Value (in thousands) Nonvested at January 31, 2020 361 $ 16.14 Granted 258 10.54 Forfeited (20) 15.23 Vested (179) 15.42 Nonvested at January 31, 2021 420 $ 13.06 The weighted-average grant date fair value of RSAs granted was $10.54, $16.48 and $17.22 during the years ended January 31, 2021, 2020 and 2019. The total fair value of RSAs vested was $1.6 million, $3.8 million and $3.6 million during the years ended January 31, 2021, 2020 and 2019. As of January 31, 2021, there was $3.8 million of unrecognized compensation cost related to nonvested RSAs that is expected to be recognized over a weighted-average period of 2.3 years. Restricted Stock Units ("RSUs") The Company grants RSUs as part of its long-term incentive compensation to certain employees of the Company in our European operations. The fair value of these awards is determined based on the closing market price of the Company's stock on the date of grant. The RSUs primarily vest over a period of three six The following table summarizes RSU activity for the year ended January 31, 2021: Shares Weighted Average Grant Date Fair Value (in thousands) Nonvested at January 31, 2020 14 $ 17.06 Granted 9 10.33 Vested (5) 16.48 Nonvested at January 31, 2021 18 $ 13.91 The weighted-average grant date fair value of RSUs granted was $10.33 and $17.79 for the fiscal years ended January 31, 2021 and 2020. There were no RSUs granted during fiscal 2019. As of January 31, 2021, there was $0.2 million of unrecognized compensation cost related to nonvested RSUs that is expected to be recognized over a weighted-average period of 2.4 years. During the year ended January 31, 2019, the Company modified certain of its RSU agreements to require the settlement of all future vested awards to be paid in cash in an amount equal to the number of vested awards multiplied by the stock price of the Company on the date of vesting. Due to the cash settlement provision, these awards became liability-classified share-based payments on the modification date. The accounting for this modification did not have a material impact on the Company's consolidated statement of operations or financial position. Long-Term Cash Incentive Awards The Company grants long-term cash incentive awards as part of its long-term incentive compensation to certain international employees of the Company. The awards vest over a period of approximately four years and entitle the award recipient to a cash payment on the vesting date equal to the number of vested shares multiplied by the stock price of the Company on the date of vesting. These awards are liability-classified share-based payment awards in which fair value of the award is remeasured at each period until the liability is settled. Fair value of these awards is determined based on the closing price of the Company's stock as of the end of each reporting period. Changes in the fair value of the liability are recognized as compensation cost over the requisite service period. The percentage of the fair value that is accrued as compensation cost at the end of each period is equal to the percentage of the requisite service that has been rendered at that date. The following table summarizes activity for long-term cash incentive awards for the year ended January 31, 2021: Shares Weighted Average Grant Date Fair Value (in thousands) Nonvested at January 31, 2020 27 $ 16.48 Granted 27 10.33 Vested (10) 15.98 Nonvested at January 31, 2021 44 $ 12.84 The weighted-average grant date fair value of long-term cash incentive awards granted was $10.33 during the year ended January 31, 2021. As of January 31, 2021, based on the Company's stock price on that day, there was $0.4 million of unrecognized compensation cost related to nonvested awards that is expected to be recognized over a weighted-average period of 1.4 years. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Jan. 31, 2021 | |
Accumulated Other Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) Note | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following is a summary of the changes in accumulated other comprehensive income (loss), by component, for the fiscal years ended January 31, 2021, 2020 and 2019: Foreign Currency Translation Adjustment Net Investment Hedging Instruments, Unrealized Gain Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, January 31, 2018 $ (4,411) $ 2,711 $ (1,700) Total other comprehensive loss (640) — (640) Balance, January 31, 2019 (5,051) 2,711 (2,340) Total other comprehensive loss (880) — (880) Balance, January 31, 2020 (5,931) 2,711 (3,220) Total other comprehensive loss 4,719 — 4,719 Balance, January 31, 2021 $ (1,212) $ 2,711 $ 1,499 Income taxes are not provided for foreign currency translation adjustments arising from permanent investments in international subsidiaries. Reclassifications are made to avoid double counting in comprehensive income items that are also recorded as part of net income (loss). |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Jan. 31, 2021 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS The Company has a 401(k) profit-sharing plan ("401(k) Plan") for full-time employees at least 19 years of age. The Company matches 50% of the first 6% of participating employees' contributions. In addition, the Company may make a discretionary contribution to the 401(k) Plan as determined by the Board of Directors, with a maximum amount equal to the amount allowed under the IRS regulations. The Company recognized expense for contributions made to the 401(k) Plan totaling $3.1 million, $3.0 million and $2.7 million for the years ended January 31, 2021, 2020 and 2019. All amounts contributed during these years reflected matching contributions, as no discretionary contributions were made by the Company to the 401(k) Plan. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Jan. 31, 2021 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | NOTE 20 - BUSINESS COMBINATIONS Fiscal 2021 On May 4, 2020, the Company acquired certain assets of HorizonWest Inc. This acquired CaseIH agriculture dealership complex consisted of three agriculture equipment stores in Scottsbluff and Sidney, Nebraska and Torrington, Wyoming, which expanded the Company's agriculture presence in Nebraska and into Wyoming. This acquisition occurred within the Company's Agriculture segment. The total consideration transferred for the acquired business was $6.8 million paid in cash. In connection with the acquisition, the Company acquired from CNH Industrial and certain other manufacturers equipment and parts inventory previously owned by HorizonWest Inc. Upon acquiring such inventories, the Company was offered floorplan financing by the respective manufacturers. In total, the Company acquired inventory and recognized a corresponding financing liability of $2.7 million. The recognition of these inventories and the associated financing liabilities are not included as part of the accounting for the business combination. Fiscal 2020 On January 1, 2019, the Company, through its German subsidiary, acquired certain assets of ESB Agrartechnik GmbH ("ESB"). ESB is a full-service agriculture equipment dealership in Eastern Germany. The Company's acquisition of ESB further expands its presence in the German market. The total consideration transferred for the acquired business was $3.0 million paid in cash. This acquisition was recognized in the fiscal year ended January 31, 2020 as the acquisition occurred within the Company's International segment in which all entities maintain a calendar year reporting period. On October 1, 2019, the Company acquired certain assets of Uglem-Ness Co. The acquired business consists of one Case IH agriculture equipment store in Northwood, North Dakota. This acquisition occurred with the Company's Agriculture segment. The service area is contiguous to the Company's existing locations in Grand Forks and Casselton, North Dakota and Ada, Minnesota. The total consideration transferred for the acquired business was $10.9 million paid in cash, including the acquired real estate, which was finalized in January 2020 for $2.1 million. In connection with the acquisition, the Company acquired from CNH Industrial and certain other manufacturers equipment and parts inventory previously owned by Uglem-Ness Co. Upon acquiring such inventories, the Company was offered floorplan financing by the respective manufacturers. In total, the Company acquired inventory and recognized a corresponding financing liability of $7.4 million. The recognition of these inventories and the associated financing liabilities are not included as part of the accounting for the business combination. Fiscal 2019 On July 2, 2018, the Company acquired all interests of two commonly-controlled companies, AGRAM Landtechnikvertrieb GmbH and AGRAM Landtechnik Rollwitz GmbH (collectively "AGRAM"), for $19.2 million in cash consideration. Founded in 1990, AGRAM is a CaseIH and Steyr dealership complex consisting of four agriculture dealership locations in the following cities of Germany: Altranft, Burkau, Gutzkow, and Rollwitz. This acquisition occurred within the Company's International segment. Our acquisition of these entities provided the Company the opportunity to expand its international presence into the large, well-established German market. Purchase Price Allocation Each of the above acquisitions has been accounted for under the acquisition method of accounting, which requires the Company to estimate the acquisition date fair value of the assets acquired and liabilities assumed. The accounting for all business combinations is complete as of January 31, 2021. The following table presents the aggregate purchase price allocations for all acquisitions completed during the fiscal years ended January 31, 2021, 2020, and 2019: Year Ended January 31, 2021 2020 2019 (in thousands) Assets acquired: Cash $ 1 $ — $ 3,857 Receivables — 440 5,340 Inventories 4,260 6,466 21,725 Prepaid expenses and other 48 — 887 Property and equipment 1,752 3,810 3,512 Operating lease assets 2,006 — — Intangible assets 245 1,973 1,944 Goodwill 484 1,198 924 Other — — 61 8,796 13,887 38,250 Liabilities Assumed: Accounts payable — — 1,553 Floorplan payable — — 13,820 Current operating lease liabilities 159 — — Deferred revenue — — 85 Accrued expenses and other — — 1,279 Long-term debt — — 1,725 Operating lease liabilities 1,847 — — Deferred income taxes — — 632 2,006 — 19,094 Net assets acquired $ 6,790 $ 13,887 $ 19,156 Goodwill recognized by segment: Agriculture $ 484 $ 699 $ — Construction — — — International — 499 924 Goodwill expected to be deductible for tax purposes 484 1,198 — The recognition of goodwill in the above business combinations arose from the acquisition of an assembled workforce and anticipated synergies expected to be realized. The Company recognized, in the aggregate, a customer relationship intangible asset of $0.2 million and $0.1 million for business combinations occurring during the years ended January 31, 2020 and 2019, respectively. The company recognized, in the aggregate, a non-competition intangible asset of $0.1 million each year for business combinations occurring during the years ended January 31, 2021 and 2020. The company recognized, in the aggregate, a distribution rights intangible asset of $0.2 million, $1.6 million and $1.8 million for business combinations occurring during the years ended January 31, 2021, 2020 and 2019, respectively. The acquired non-competition and customer relationship intangible assets are being amortized over periods ranging from three to five years. The distribution rights assets are indefinite-lived intangible assets not subject to amortization, but are tested for impairment annually, or more frequently upon the occurrence of certain events or when circumstances indicate that impairment may be present. The Company estimated the fair value of these intangible assets using a multi-period excess earnings model, an income approach. Acquisition related costs were |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Jan. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS As of January 31, 2021 and 2020, the fair value of the Company's foreign currency contracts, which are either assets or liabilities measured at fair value on a recurring basis, was not material. These foreign currency contracts were valued using a discounted cash flow analysis, an income approach, utilizing readily observable market data as inputs, which is classified as a Level 2 fair value measurement. The Company also valued certain long-lived assets at fair value on a non-recurring basis as of January 31, 2021, October 31, 2020, April 30, 2020, and January 31, 2020 as part of its long-lived asset impairment testing. The estimated fair value of such assets were $0.8 million, $0.5 million, $0.4 million, and $2.8 million, respectively. Fair value was determined by utilizing an income approach incorporating both observable and unobservable inputs, and are deemed to be Level 3 fair value inputs. The most significant unobservable inputs include forecasted net cash generated from the use of the assets and the discount rate applied to such cash flows to arrive at a fair value estimate. In addition, in certain instances, the Company estimated the fair value of long-lived assets to be approximately zero, as no future cash flows were assumed to be generated from the use of such assets and the expected sales values were deemed to be nominal. All such fair value measurements were based on unobservable inputs and thus are Level 3 fair value inputs. |
SEGMENT INFORMATION AND OPERATI
SEGMENT INFORMATION AND OPERATING RESULTS | 12 Months Ended |
Jan. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION AND OPERATING RESULTS | SEGMENT INFORMATION AND OPERATING RESULTS The Company has three reportable segments: Agriculture, Construction and International. The Company's segments are determined based on management structure, which is organized based on types of products sold and geographic areas, as described in the following paragraphs. The operating results for each segment are reported separately to the Company's Chief Executive Officer to make decisions regarding the allocation of resources, to assess the Company's operating performance and to make strategic decisions. The Company's Agriculture segment sells, services, and rents machinery, and related parts and attachments, for uses ranging from large-scale farming to home and garden use in North America. This segment also includes ancillary sales and services related to agricultural activities and products such as equipment transportation, Global Positioning System ("GPS") signal subscriptions and finance and insurance products. The Company's Construction segment sells, services, and rents machinery, and related parts and attachments, for uses ranging from heavy construction to light industrial machinery use to customers in North America. This segment also includes ancillary sales and services related to construction activities such as equipment transportation, GPS signal subscriptions and finance and insurance products. The Company’s International segment sells, services, and rents machinery, and related parts and attachments, for uses ranging from large-scale farming and construction to home and garden use to customers in Eastern Europe. Revenue generated from sales to customers outside of the United States was $219.0 million, $236.1 million and $232.7 million for the years ended January 31, 2021, 2020 and 2019. As of January 31, 2021 and 2020, $18.0 million and $18.0 million of the Company's long-lived assets were held in its European subsidiaries and the remaining were held in the United States. 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 Resource assets primarily consist of cash and property and equipment. Revenue between segments is immaterial. Certain financial information for each of the Company's business segments is set forth below. Year Ended January 31, 2021 2020 2019 (in thousands) Revenue Agriculture $ 886,485 $ 749,042 $ 726,793 Construction 305,745 320,034 301,989 International 218,992 236,095 232,723 Total $ 1,411,222 $ 1,305,171 $ 1,261,505 Income (Loss) Before Income Taxes Agriculture $ 34,422 $ 18,036 $ 16,799 Construction 186 (2,290) (4,400) International (6,025) 504 5,160 Segment income before income taxes 28,583 16,250 17,559 Shared Resources 2,170 (1,598) (1,405) Total $ 30,753 $ 14,652 $ 16,154 Total Impairment Agriculture $ 272 $ 2,807 $ 886 Construction 597 957 1,114 International 2,311 — 156 Total $ 3,180 $ 3,764 $ 2,156 Interest Income Agriculture $ 72 $ 54 $ 84 Construction 135 217 234 International 46 44 81 Segment interest income 253 315 399 Shared Resources 16 16 (73) Total $ 269 $ 331 $ 326 Interest Expense Agriculture $ 4,884 $ 5,142 $ 4,272 Construction 5,552 7,221 6,308 International 2,796 3,504 3,313 Segment interest expense 13,232 15,867 13,893 Shared Resources (6,050) (6,061) (19) Total $ 7,182 $ 9,806 $ 13,874 Depreciation and Amortization Agriculture $ 5,337 $ 5,095 $ 4,997 Construction 12,197 12,537 13,652 International 2,645 2,402 1,804 Segment depreciation and amortization 20,179 20,034 20,453 Shared Resources 3,522 8,033 3,152 Total $ 23,701 $ 28,067 $ 23,605 Year Ended January 31, 2021 2020 2019 (in thousands) Capital Expenditures Agriculture $ 5,355 $ 4,699 $ 2,473 Construction 8,202 15,713 7,012 International 2,124 1,768 1,944 Segment capital expenditures 15,681 22,180 11,429 Shared Resources 4,408 2,836 522 Total $ 20,089 $ 25,016 $ 11,951 January 31, 2021 January 31, 2020 Total Assets (in thousands) Agriculture $ 349,697 $ 444,942 Construction 185,534 275,645 International 177,213 191,513 Segment assets 712,444 912,100 Shared Resources 103,345 63,243 Total $ 815,789 $ 975,343 |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Jan. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts and Reserves | Schedule II—Valuation and Qualifying Accounts and Reserves Titan Machinery Inc. Classification Beginning Balance Additions Charged to Expenses Additions from CECL Adoption Additions from Business Combinations Deductions for Write-offs, Net of Recoveries Foreign Currency Translation Adjustments Ending Balance (in thousands) Valuation reserve deduction from receivables: Year Ended January 31, 2021 $ 5,123 $ 498 $ 210 $ — $ (1,013) $ 115 $ 4,933 Year Ended January 31, 2020 3,528 2,497 — — (872) (30) 5,123 Year Ended January 31, 2019 2,951 835 — 958 (1,173) (43) 3,528 |
BUSINESS ACTIVITY AND SIGNIFI_2
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business Titan Machinery Inc. and its subsidiaries (collectively, the "Company") are 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 Colorado, Iowa, Minnesota, Montana, Nebraska, North Dakota, South Dakota, Wisconsin and Wyoming, and its European stores are located in Bulgaria, Germany, Romania, Serbia and Ukraine. |
Seasonality | Seasonality The agricultural and construction equipment businesses are highly seasonal, which causes the Company's quarterly results and cash flows to fluctuate during the year. The Company's customers generally purchase and rent equipment in preparation for, or in conjunction with, their busy seasons, which for farmers are the spring planting and fall harvesting seasons, and for construction customers is dependent on weather seasons in their respective regions, which is typically the second and third quarters of the Company's fiscal year for much of its Construction footprint. The Company's parts and service revenues are also typically highest during its customers' busy seasons, due to the increased use of their equipment during this time, which generates the need for more parts and service work. However, weather conditions impact the timing of our customers' busy times, which may cause the Company's quarterly financial results to differ between fiscal years. In addition, the fourth quarter typically is a significant period for equipment sales in the United States because of our customers’ year-end tax planning considerations, the timing of dealer incentives and the increase in availability of funds from completed harvests and construction projects. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant accounts, transactions and profits between the consolidated companies have been eliminated in consolidation. The Company's foreign subsidiaries have fiscal years ending on December 31 of each year, consistent with statutory reporting requirements in each of the respective countries. The accounts of the Company's foreign subsidiaries are consolidated as of December 31 of each year. No events or transactions occurred related to these subsidiaries in January 2021 that would have materially affected the consolidated financial position, results of operations or cash flows. |
Estimates | Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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, impairment of long-lived assets, goodwill, indefinite-lived intangible assets, collectability of receivables, and income taxes. |
Concentrations of Credit Risk | Concentrations of Credit Risk The Company's sales are to agricultural and construction equipment customers principally in the states in which it has stores as well as in the European countries in which its stores are located. The Company extends credit to its customers in the ordinary course of business and monitors its customers' financial condition to minimize its risks associated with trade receivables; however, the Company does not generally require collateral on trade receivables. The Company's cash balances are maintained in bank deposit accounts, which, generally, are in excess of federally insured limits. |
Concentrations in Operations | Concentrations in Operations The Company currently purchases new equipment, rental equipment and the related parts from a limited number of manufacturers. Although no change in suppliers is anticipated, the occurrence of such a change could cause a possible loss of sales and adversely affect operating results. The Company is the holder of authorized dealerships granted by CNH Industrial America, LLC and CNHI International SA (collectively referred to "CNH Industrial") whereby it has the right to act as an authorized dealer for the entity's equipment at specified locations. The dealership authorizations and floorplan payable facilities can be canceled by the respective entity if the Company does not observe certain established guidelines and covenants. In addition, the Company believes that the following factors related to concentrations in suppliers, and in particular CNH Industrial, have a significant impact on its operating results: • CNH Industrial's product offerings, reputation and market share • CNH Industrial's product prices and incentive and discount programs • Supply of inventory from CNH Industrial • CNH Industrial provides floorplan payable financing for the purchase of a substantial portion of the Company's inventory • CNH Industrial provides a significant percentage of the financing and lease financing used by the Company's customers to purchase CNH Industrial equipment from the Company |
Revenue from Contract with Customer | Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to collect in exchange for those goods or services. Shipping and handling costs are recorded as cost of revenue. Sales, value added and other taxes collected from the Company's customers concurrent with the Company's revenue activities are excluded from revenue. Equipment Revenue. Equipment revenue transactions include the sale of new and used agricultural and construction equipment. The Company satisfies its performance obligations and recognizes revenue at a point in time, primarily upon the delivery of the product. Once a product is delivered, the customer has physical possession of the asset, can direct the use of the asset, and has the significant risks and rewards of ownership of the asset. Equipment transactions often include both cash and non-cash consideration. Cash consideration is paid directly by the Company's customers or by third-party financial institutions financing the Company's customer transactions. Non-cash consideration is in the form of trade-in equipment assets. The Company assigns a value to trade-in assets by estimating a future selling price, which the Company estimates based on relevant internal and third-party data, less a gross profit amount to be realized at the time the trade-in asset is sold and an estimate of any reconditioning work required to ready the asset for sale. Both cash and non-cash consideration may be received prior to or after the Company's performance obligation is satisfied. Any consideration received prior to the satisfaction of the Company's performance obligation is recognized as deferred revenue. Receivables recognized for amounts not paid at the time our performance obligation is satisfied, including amounts due from third-party financial institutions, generally do not have established payment terms but are collected in relatively short time periods. Parts Revenue. We sell a broad range of maintenance and replacement parts for both equipment that we sell and other types of equipment. The Company satisfies its performance obligation and recognizes revenue at a point in time, upon delivery of the product to the customer. Once a product is delivered, the Company has a present right to payment, the customer has physical possession of the asset, can direct the use of the asset, and has the significant risks and rewards of ownership of the asset. In many cases, customers tender payment at the time of delivery. Balances not paid at the time of delivery are typically due in full within 30 days. Most parts are sold with a thirty-day right of return or exchange. Historically, parts returns have not been material. Parts revenue also includes the retail value of parts inventories consumed during the course of customer repair and maintenance services and services provided under manufacturer warranties. As further described below, we recognize revenue from these activities over time. Service Revenue. We provide repair and maintenance services, including repairs performed under manufacturer warranties, for our customer’s equipment. We recognize service and associated parts revenue of our repair and maintenance services over time as we transfer control of these goods and services over time. The Company recognizes revenue over time in the amount to which we have the right to invoice the customer, as such an amount corresponds to the value of our performance completed to date. Generally, the Company has the right to invoice the customer for labor hours incurred and parts inventories consumed during the performance of the service arrangement. Customer invoicing most often occurs at the conclusion of our repair and maintenance services. Accordingly, we recognize unbilled receivables for the amount of unbilled labor hours incurred and parts inventories consumed under our repair and maintenance arrangements. Upon customer invoicing, unbilled receivables are reclassified to receivables. In many cases, customers tender payment at the completion of our work and the creation of the invoice. Balances not paid at the time of invoicing are typically due in full within 30 days. Rental and Other Revenue. We rent equipment to our customers on a short-term basis for periods ranging from a few days to a few months. Rental revenue is recognized on a straight-line basis over the period of the related rental agreement. Revenue from rental equipment delivery and pick-up services is recognized when the service is performed. Other revenues primarily consist of fees charged in connection with short-haul equipment delivery and pick-up services, in which revenue is recognized at a point in time when the service is completed, and Global Positioning System ("GPS") signal subscriptions, in which revenue is recognized on a straight-line basis over the subscription period. Manufacturer Incentives and Discounts The Company receives various manufacturer incentives and discounts, which are based on a variety of factors. Discounts and incentives related to the purchase of inventory are recognized as a reduction of inventory prices and recognized as a reduction of cost of revenue when the related inventory is sold. Other incentives, reflecting reimbursement of qualifying expenses, are recognized as a reduction of the related expense when earned. |
Receivables and Credit Policy | Receivables and Credit Policy Trade accounts receivable due from customers are uncollateralized customer obligations due under normal trade terms requiring payment within 30 to 90 days from the invoice date. Balances unpaid after the due date based on trade terms are considered past due and begin to accrue interest. Payments of trade receivables are allocated to the specific invoices identified on the customer's remittance advice or, if unspecified, are applied to the earliest unpaid invoices. Trade accounts receivable due from manufacturers relate to discount programs and incentive programs. Trade accounts receivable due from finance companies primarily consist of contracts in transit with finance companies and balances due from credit card companies. These receivables do not generally have established payment terms but are collected in relatively short time periods. Unbilled receivables primarily represent unbilled labor hours incurred and parts inventories consumed during the performance of service arrangements for our customers at their retail rates. The carrying amount of trade receivables is reduced by a valuation allowance that reflects management's best estimate of the amounts that will not be collected. Management reviews aged receivable balances and estimates the portion, if any, of the balance that will not be collected. Account balances are charged off after all appropriate means of collection have been exhausted and the potential for recovery is considered remote. |
Inventories | Inventories New and used equipment are stated at the lower of cost (specific identification) or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. All new and used equipment inventories, including that which has been rented, are subject to periodic lower of cost or net realizable value evaluations that consider various factors including aging and condition of the equipment and market conditions. Equipment inventory values are adjusted whenever the carrying amount exceeds the net realizable value. Parts inventories are valued at the lower of average cost or net realizable value. The Company estimates its lower of cost or net realizable value adjustments on its parts inventories based on various factors including aging and sales of each type of parts inventory. Work in process represents costs incurred in the reconditioning and preparation for sale of our equipment inventories. |
Property and Equipment | Property and Equipment Property and equipment is carried at cost less accumulated depreciation and amortization. Depreciation and amortization are computed on a straight-line basis over the estimated useful life of each asset, as summarized below: Buildings and leasehold improvements Lesser of 10 - 40 years or lease term Machinery and equipment 3 - 10 years Furniture and fixtures 3 - 10 years Vehicles 5 - 10 years Rental fleet 3 - 10 years Depreciation for income tax reporting purposes is computed using accelerated methods. |
Goodwill | Goodwill Goodwill is recognized and initially measured as any excess of the acquisition-date consideration transferred in a business combination over the acquisition-date amounts recognized for the net identifiable assets acquired. Goodwill is not amortized but is tested for impairment annually, or more frequently if an event occurs or circumstances change that would more likely than not result in an impairment of goodwill. Impairment testing is performed at the reporting unit level. A reporting unit is defined as an operating segment or one level below an operating segment, referred to as a component. A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. The goodwill impairment analysis is a single-step quantitative assessment that identifies both the existence of impairment and the amount of impairment loss by comparing the estimated fair value of a reporting unit to its carrying value, with any excess carrying value over the fair value being recognized as an impairment loss, limited to the total amount of goodwill allocated to that reporting unit. The Company performs its annual goodwill impairment test as of December 31st of each year and has identified one reporting unit that carries a goodwill balance. |
Intangible Assets | Intangible Assets Intangible assets with a finite life consist of customer relationships and covenants not to compete, and are carried at cost less accumulated amortization. The Company amortizes the cost of identified intangible assets on a straight-line basis over the expected period of benefit, which is generally five years for customer relationships and the contractual term for covenants not to compete, which range from 3 to 5 years. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company's long-lived assets consist of its property and equipment. These assets are reviewed for potential impairment when events or circumstances indicate that the carrying value may not be recoverable. Recoverability is measured by comparing the estimated future undiscounted cash flows of such assets to their carrying values. If the estimated undiscounted cash flows exceed the carrying value, the carrying value is considered recoverable and no impairment recognition is required. However, if the sum of the undiscounted cash flows is less than the carrying value of the asset, the estimated fair value of the long-lived asset is compared to its carrying value and any amount by which the carrying value exceeds the fair value is recognized as an impairment charge. When reviewing long-lived assets for impairment, we group long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Long-lived assets deployed and used by individual store locations are reviewed for impairment at the individual store level. Other long-lived assets shared across stores within a segment or shared across segments are reviewed for impairment on a segment or consolidated level as appropriate. During the year ended January 31, 2021, the Company determined that certain events or circumstances, including a current period operating loss combined with historical losses and anticipated future operating losses, within certain of its stores was an indication that the long-lived assets of these stores may not be recoverable. The aggregate carrying value of such assets totaled $6.4 million. In light of these circumstances, the Company performed a long-lived asset impairment analysis for these assets and concluded that the carrying value was not recoverable. Accordingly, the Company estimated the fair value of the assets using an income approach. The Company recognized total impairment charges of $0.9 million, of which $0.3 million related to the Agriculture segment and $0.6 million related to the Construction segment. All impairment charges recognized are included in the Impairment of Intangible and Long-Lived Assets line item in the consolidated statements of operations. We performed similar impairment analyses at the end of fiscal 2020 and 2019. The Company recognized impairment charges totaling $3.1 million on long-lived assets during the year ended January 31, 2020, of which $2.3 million related to the Agriculture segment and $0.8 million related to the Construction segment. The Company recognized impairment charges totaling $2.2 million on long-lived assets during the year ended January 31, 2019, of which $0.9 million related to the Agriculture segment, $1.1 million related to the Construction segment, and $0.2 million related to the International segment. |
Sale Leaseback Transactions, Policy | Construction of Leased Assets and Sale-Leaseback Accounting The Company, from time to time, performs construction projects on its store locations, which are recorded as property and equipment in the consolidated balance sheet during the construction period. Upon completion, these assets are either placed in service, at which point the depreciation of the asset commences, or are part of a sale-leaseback transaction with a third-party buyer/lessor. In certain other situations, the Company enters into build-to-suit construction projects with third-party lessors. Under the applicable lease accounting rules, certain forms of lessee involvement in the construction of the leased asset deem the Company to be the owner of the leased asset during the construction period and requires capitalization of the lessor's total project costs on the consolidated balance sheet with the recognition of a corresponding financing obligation. Upon completion of a project for which the constructed assets are sold to a buyer/lessor or the completion of a capitalized build-to suit construction project, the Company performs a sale-leaseback analysis to determine if the asset and related financing obligation can be derecognized from the consolidated balance sheet. Certain provisions in a number of our lease agreements, primarily provisions regarding repurchase options, are deemed to be continuing involvement in the sold asset which precludes sale recognition. In such cases, the asset remains on the consolidated balance sheet under property and equipment and the proceeds received in the sale-leaseback transaction are recognized as a financing obligation within long-term debt in the consolidated balance sheet. Both the asset and the financing obligation are amortized over the lease term. In instances in which the Company has no continuing involvement in the sold asset, the criteria for sale recognition are met and the asset and any related financing obligation are derecognized from the consolidated balance sheet, and the lease is analyzed for proper accounting treatment as either an operating or finance lease. |
Derivative Instruments | Derivative Instruments In the normal course of business, the Company is subject to risk from adverse fluctuations in foreign currency exchange rates. The Company may manage its market risk exposures through a program that includes the use of derivative instruments, primarily foreign exchange forward contracts. The Company's objective in managing its exposure to market risk is to minimize the impact on earnings, cash flows and the consolidated balance sheet. The Company does not use derivative instruments for trading or speculative purposes. |
Income Taxes | Income Taxes The Company uses the asset and liability method to account for income taxes. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that a portion or all of the deferred tax assets will not be realized. Changes in valuation allowances are included in its provision for income taxes in the period of the change. Deferred tax assets and liabilities are netted by taxing jurisdiction and presented as either a net asset or liability position, as applicable, on the consolidated balance sheets. The Company recognizes the financial statement benefit of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured as the largest amount that has a greater than 50% likelihood of being realized. Changes in the recognition or measurement of such positions are reflected in its provision for income taxes in the period of the change. The Company's policy is to recognize interest and penalties related to income tax matters within its provision for income taxes. |
Advertising Costs | Advertising Costs Costs incurred for producing and distributing advertising are expensed as incurred. Advertising expense amounted to $2.2 million, $2.2 million and $2.1 million for the years ended January 31, 2021, 2020 and 2019, respectively. |
Compensation Related Costs, Policy | Stock-Based Compensation The Company accounts for stock-based compensation at the fair value of the related equity instrument over the applicable service or performance period |
Comprehensive Income and Foreign Currency Matters | Comprehensive Income and Foreign Currency Matters For the Company, comprehensive income (loss) represents net income adjusted for foreign currency translation adjustments. For its foreign subsidiaries in which their local currency is their functional currency, assets and liabilities are translated into U.S. dollars at the balance sheet date exchange rate. Income and expenses are translated at average exchange rates for the year. Foreign currency translation adjustments are recorded directly as other comprehensive income (loss), a component of stockholders' equity. For its foreign subsidiaries in which the local currency is not the functional currency, prior to translation into U.S. dollars, amounts must first be remeasured from the local currency into the functional currency. Nonmonetary assets and liabilities are remeasured at historical exchange rates and monetary assets and liabilities are remeasured at the balance sheet date exchange rate. Income and expenses are remeasured at average exchange rates for the year. Foreign currency remeasurement adjustments are included in the statement of operations. |
Business Combinations | Business Combinations The Company accounts for business combinations by allocating the purchase price amongst the assets acquired, including identifiable intangible assets, and liabilities assumed based on the fair values of the acquired assets and assumed liabilities. The acquisition accounting is finalized during the measurement period, which may not exceed one year from the date of acquisition. During the measurement period the Company's accounting for the business combination transaction may be based on estimates due to various unknown factors present at the date of acquisition. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Three levels of inputs may be used to measure fair value: Level 1—Values derived from unadjusted quoted prices in active markets for identical assets and liabilities. Level 2—Values derived from observable inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets in markets that are not active. Level 3—Values derived from unobservable inputs for which there is little or no market data available, thereby requiring the reporting entity to develop its own assumptions. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. |
Segment Reporting | Segment Reporting The Company operates its business in three reportable segments, the Agriculture, Construction and International segments. |
Recent Accounting Guidance | Recent Accounting Guidance Accounting guidance adopted In June 2016, the Financial Accounting Standards Board ("FASB") issued a new standard, codified in Accounting Standard Codification ("ASC") 326, Financial Instruments - Credit Losses , that modifies how entities measure credit losses on most financial instruments. The new standard replaced the "incurred loss" model with an "expected credit loss" model that requires consideration of a broader range of information to estimate expected credit losses over the lifetime of the asset. The guidance impacts the Company on its accounts receivable portfolio but specifically excluded receivables from operating lease arrangements and, therefore, the Company’s receivables from rental contracts were not impacted. The guidance also requires new disclosures to allow the users of the financial statements to understand the credit risk inherent in a portfolio and how management monitors the credit quality of the portfolio, management’s estimate of expected credit losses, and changes in the estimate of expected credit losses that have taken place during the reporting period. The Company adopted the new guidance on February 1, 2020 using a modified retrospective approach and recognized an immaterial cumulative-effect adjustment to retained earnings as of the effective date. The Company identified and updated existing internal controls and procedures to ensure compliance with the new guidance, but such modifications were not deemed to be material to the Company's overall system of internal control. While the adoption of this standard did not have a material impact on the Company's consolidated financial statements, it required changes to the Company's process of estimating expected credit losses on trade receivables. See Note 4 for further discussion of our accounts receivables. In February 2018, the FASB issued guidance on the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract, codified in ASC 350-40, Internal Use Software . This guidance aligns the accounting for costs incurred to implement a cloud computing arrangement that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The Company adopted this standard on February 1, 2020, using the prospective transition approach. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. |
BUSINESS ACTIVITY AND SIGNIFI_3
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of property and equipment | Depreciation and amortization are computed on a straight-line basis over the estimated useful life of each asset, as summarized below: Buildings and leasehold improvements Lesser of 10 - 40 years or lease term Machinery and equipment 3 - 10 years Furniture and fixtures 3 - 10 years Vehicles 5 - 10 years Rental fleet 3 - 10 years January 31, 2021 January 31, 2020 (in thousands) Rental fleet equipment $ 77,530 $ 104,133 Machinery and equipment 23,354 22,682 Vehicles 55,884 51,850 Furniture and fixtures 43,678 41,720 Land, buildings, and leasehold improvements 90,730 70,408 291,176 290,793 Less accumulated depreciation 144,011 145,231 $ 147,165 $ 145,562 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the calculation of basic and diluted EPS: Year Ended January 31, 2021 2020 2019 (in thousands, except per share data) Numerator Net income $ 19,356 $ 13,953 $ 12,182 Allocation to participating securities (325) (221) (202) Net income attributable to Titan Machinery Inc. common stockholders $ 19,031 $ 13,732 $ 11,980 Denominator Basic weighted-average common shares outstanding 22,100 21,946 21,809 Plus: incremental shares from assumed vesting of restricted stock units 4 7 7 Diluted weighted-average common shares outstanding 22,104 21,953 21,816 Earnings per Share: Basic $ 0.86 $ 0.63 $ 0.55 Diluted $ 0.86 $ 0.63 $ 0.55 Anti-dilutive shares excluded from diluted weighted-average common shares outstanding: Shares underlying senior convertible notes (conversion price of $43.17) — — 1,057 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue [Table Text Block] | The following tables present our revenue disaggregated by revenue source and segment for the years ended January 31, 2021, 2020 and 2019: Year Ended January 31, 2021 Agriculture Construction International Total (in thousands) Equipment $ 654,244 $ 193,495 $ 168,332 $ 1,016,071 Parts 151,278 51,186 42,212 244,676 Service 74,963 25,224 7,042 107,229 Other 3,122 2,295 400 5,817 Revenue from contracts with customers 883,607 272,200 217,986 1,373,793 Rental 2,878 33,545 1,006 37,429 Total revenues $ 886,485 $ 305,745 $ 218,992 $ 1,411,222 Year Ended January 31, 2020 Agriculture Construction International Total (in thousands) Equipment $ 535,792 $ 194,675 $ 186,735 $ 917,202 Parts 141,093 52,160 40,964 234,217 Service 66,158 26,189 6,818 99,165 Other 2,989 2,895 264 6,148 Revenue from contracts with customers 746,032 275,919 234,781 1,256,732 Rental 3,010 44,115 1,314 48,439 Total revenues $ 749,042 $ 320,034 $ 236,095 $ 1,305,171 Year Ended January 31, 2019 Agriculture Construction International Total (in thousands) Equipment $ 535,034 $ 185,163 $ 188,981 $ 909,178 Parts 127,741 47,404 35,651 210,796 Service 58,823 23,267 4,750 86,840 Other 2,690 3,896 179 6,765 Revenue from contracts with customers 724,288 259,730 229,561 1,213,579 Rental 2,505 42,259 3,162 47,926 Total revenues $ 726,793 $ 301,989 $ 232,723 $ 1,261,505 |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Receivables [Abstract] | |
Schedule of receivables | January 31, 2021 January 31, 2020 (in thousands) Trade and unbilled receivables from contracts with customers Trade receivables due from customers $ 31,664 $ 36,400 Unbilled receivables 12,909 13,944 Less allowance for expected credit losses 2,994 2,943 41,579 47,401 Trade receivables due from finance companies 14,133 12,352 Trade and unbilled receivables from rental contracts Trade receivables 4,329 7,381 Unbilled receivables 520 861 Less allowance for expected credit losses 1,939 2,180 2,910 6,062 Other receivables Due from manufacturers 8,720 5,763 Other 1,767 1,198 10,487 6,961 Receivables, net of allowance for expected credit losses $ 69,109 $ 72,776 |
Impaired Financing Receivables [Table Text Block] | The following table presents impairment losses on receivables arising from sales contracts with customers and receivables arising from rental contracts: Year Ended January 31, 2021 2020 (in thousands) Impairment losses on: Receivables from sales contracts $ 356 $ 1,373 Receivables from rental contracts 142 1,124 $ 498 $ 2,497 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | January 31, 2021 January 31, 2020 (in thousands) New equipment $ 206,683 $ 358,339 Used equipment 131,369 157,535 Parts and attachments 78,982 79,813 Work in process 1,424 1,707 $ 418,458 $ 597,394 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Depreciation and amortization are computed on a straight-line basis over the estimated useful life of each asset, as summarized below: Buildings and leasehold improvements Lesser of 10 - 40 years or lease term Machinery and equipment 3 - 10 years Furniture and fixtures 3 - 10 years Vehicles 5 - 10 years Rental fleet 3 - 10 years January 31, 2021 January 31, 2020 (in thousands) Rental fleet equipment $ 77,530 $ 104,133 Machinery and equipment 23,354 22,682 Vehicles 55,884 51,850 Furniture and fixtures 43,678 41,720 Land, buildings, and leasehold improvements 90,730 70,408 291,176 290,793 Less accumulated depreciation 144,011 145,231 $ 147,165 $ 145,562 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Intangible Assets | |
Schedule of Goodwill [Table Text Block] | Changes in the carrying amount of goodwill during the years ended January 31, 2021 and 2020 are as follows: Agriculture International Total (in thousands) Balance, January 31, 2019 $ 250 $ 911 $ 1,161 Arising from business combinations 699 499 1,198 Foreign currency translation — (32) (33) Balance, January 31, 2020 949 1,378 2,327 Arising from business combinations 484 — 484 Foreign currency translation — 75 75 Impairment — 1,453 1,453 Balance, January 31, 2021 $ 1,433 $ — $ 1,433 |
Summary of intangible assets with finite lives | The following is a summary of definite-lived intangible assets as of January 31, 2021 and 2020: January 31, 2021 January 31, 2020 Cost Accumulated Net Cost Accumulated Net (in thousands) (in thousands) Covenants not to compete $ 150 $ (38) $ 112 $ 100 $ (7) $ 93 Customer relationships 360 (185) 175 345 (83) 262 $ 510 $ (223) $ 287 $ 445 $ (90) $ 355 |
Schedule of expected future amortization expense | As of January 31, 2021, future amortization expense is expected to be as follows: Fiscal years ending January 31, Amount (in thousands) 2022 $ 112 2023 74 2024 63 2025 38 2026 — Thereafter — $ 287 |
Schedule of Indefinite-Lived Intangible Assets | The Company's indefinite-lived intangible assets consist of distribution rights assets. Changes in the carrying amount of distribution rights during the years ended January 31, 2021 and 2020 are as follows: Agriculture Construction International Total (in thousands) Balance, January 31, 2019 $ 5,050 $ 237 $ 1,805 $ 7,092 Arising from business combinations 1,527 — 96 1,623 Foreign currency translation — — (31) (31) Impairment 507 165 — 672 Balance, January 31, 2020 6,070 72 1,870 8,012 Arising from business combinations 195 — — 195 Foreign currency translation — — 149 149 Impairment — — 858 858 Balance, January 31, 2021 $ 6,265 $ 72 $ 1,161 $ 7,498 |
FLOORPLAN PAYABLE_LINES OF CR_2
FLOORPLAN PAYABLE/LINES OF CREDIT (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Line of Credit Facility [Abstract] | |
Schedule of Line of Credit Facilities [Table Text Block] | As of January 31, 2021 and 2020, the Company’s outstanding balance of floorplan payables and lines of credit consisted of the following: January 31, 2021 January 31, 2020 (in thousands) CNH Industrial $ 86,792 $ 187,690 Bank Syndicate Agreement Floorplan Loan — 82,700 DLL Finance 10,667 30,657 Other outstanding balances with manufacturers and non-manufacturers 64,376 70,725 $ 161,835 $ 371,772 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses | January 31, 2021 January 31, 2020 (in thousands) Compensation $ 21,635 $ 19,732 Sales, payroll, real estate and value added taxes 8,287 5,947 Insurance 2,839 3,336 Lease residual value guarantees 868 2,054 Finance lease liabilities 9,823 1,708 Interest 257 608 Other 5,082 4,975 $ 48,791 $ 38,360 |
SENIOR CONVERTIBLE NOTES (Table
SENIOR CONVERTIBLE NOTES (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Senior Convertible Notes | |
SENIOR CONVERTIBLE NOTES | |
Senior Convertible Notes Interest Expense | The Company recognized interest expense associated with its Senior Convertible Notes as follows: Year Ended January 31, 2020 2019 (in thousands) Cash Interest Expense Coupon interest expense $ 421 $ 2,014 Noncash Interest Expense Amortization of debt discount 350 1,626 Amortization of transaction costs 45 216 $ 816 $ 3,856 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) - Long-Term Debt (excluding senior convertible notes) | 12 Months Ended |
Jan. 31, 2021 | |
LONG-TERM DEBT | |
Summary of long-term debt | The following is a summary of long-term debt: |
Schedule of long-term debt maturities | Long-term debt maturities are as follows: Years Ending January 31, Amounts (in thousands) 2022 $ 4,591 2023 4,729 2024 4,885 2025 8,345 2026 4,225 Thereafter 22,722 $ 49,497 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair value of derivative instruments outstanding | As of January 31, 2021, the fair value of the Company's outstanding derivative instruments was not material and as of January 31, 2020 the Company had no derivative instruments. Derivative instruments recognized as assets are recorded in Prepaid expenses and other in the consolidated balance sheets, and derivative instruments recognized as liabilities are recorded in Accrued expenses and other in the consolidated balance sheets. |
Schedule of gains and losses recognized on derivative instruments | The following table sets forth the gains recognized in income related to the Company’s derivative instruments for the years ended January 31, 2021, 2020 and 2019. Year Ended January 31, 2021 2020 2019 (in thousands) Derivatives Not Designated as Hedging Instruments: Foreign currency contracts (a) $ 934 $ 365 $ 1,696 Total Derivatives $ 934 $ 365 $ 1,696 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease expense were as follows: Year Ended January 31, Classification 2021 2020 (in thousands) Finance lease cost: Amortization of leased assets Operating expenses $ 1,585 $ 1,457 Interest on lease liabilities Other interest expense 451 554 Operating lease cost Operating expenses and rental and other cost of revenue 18,025 21,225 Short-term lease cost Operating expenses 340 242 Variable lease cost Operating expenses 2,798 2,665 Sublease income Interest income and other income (expense) (547) (620) $ 22,652 $ 25,523 |
Summary of Lease Assets and Liabilities [Table Text Block] | Right-of-use lease assets and lease liabilities consist of the following: Classification January 31, 2021 January 31, 2020 (in thousands) Assets Operating lease assets Operating lease assets $ 74,445 $ 88,281 Financing lease assets (a) Property and equipment, net of accumulated depreciation 12,426 6,297 Total leases assets $ 86,871 $ 94,578 Liabilities Current Operating Current operating lease liabilities $ 11,772 $ 12,259 Financing Accrued expenses and other 9,823 1,708 Noncurrent Operating Operating lease liabilities 73,567 88,387 Financing Other long-term liabilities 2,911 4,103 Total lease liabilities $ 98,073 $ 106,457 |
Summary of Lease Maturities [Table Text Block] | Maturities of lease liabilities as of January 31, 2021 are as follows: Operating Finance Leases Leases Total Fiscal Year Ending January 31, (in thousands) 2022 $ 16,521 $ 10,131 $ 26,652 2023 15,433 1,328 16,761 2024 14,324 582 14,906 2025 13,077 463 13,540 2026 12,910 312 13,222 Thereafter 33,252 1,084 34,336 Total lease payments 105,517 13,900 119,417 Less: Interest 20,178 1,166 21,344 Present value of lease liabilities $ 85,339 $ 12,734 $ 98,073 |
Weighted-Average Lease Term and Discount Rate [Table Text Block] | The weighted-average lease term and discount rate as of January 31, 2021 and 2020 are as follows: January 31, 2021 January 31, 2020 Weighted-average remaining lease term (years): Operating leases 7.2 7.9 Financing leases 1.8 5.4 Weighted-average discount rate: Operating leases 6.1% 6.1% Financing leases 5.3% 8.5% |
Rental Fleet Assets [Table Text Block] | Revenue generated from leasing activities is disclosed, by segment, in Note 3. The following is the balance of our dedicated rental fleet assets of our Construction segment as of January 31, 2021 and 2020, respectively: January 31, 2021 January 31, 2020 (in thousands) Rental fleet equipment $ 77,530 $ 104,133 Less accumulated depreciation 28,916 42,076 $ 48,614 $ 62,057 |
Cash Flow Related to Leases [Table Text Block] | Other lease information is as follows: Year Ended January 31, 2021 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 18,267 $ 18,176 Operating cash flow from finance leases 451 553 Financing cash flows from finance leases 1,816 1,812 Operating lease assets obtained in exchange for new operating lease liabilities 3,066 1,316 Finance lease assets obtained in exchange for new finance lease liabilities 512 1,333 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax | The components of income (loss) before income taxes for the years ended January 31, 2021, 2020 and 2019 consist of the following: 2021 2020 2019 (in thousands) U.S. $ 36,778 $ 14,148 $ 10,994 Foreign (6,025) 504 5,160 Total $ 30,753 $ 14,652 $ 16,154 |
Schedule of provision for income taxes charged to income | The provision for (benefit from) income taxes charged to income for the years ended January 31, 2021, 2020 and 2019 consists of the following: 2021 2020 2019 (in thousands) Current Federal $ 12,825 $ 897 $ (110) State 1,442 116 (189) Foreign 668 1,349 1,760 Total current taxes 14,935 2,362 1,461 Deferred Federal (5,128) (375) 2,071 State 553 (1,929) (45) Foreign 1,037 641 485 Total deferred taxes (3,538) (1,663) 2,511 $ 11,397 $ 699 $ 3,972 |
Schedule of reconciliation of statutory federal income tax rate to the Company's effective rate | The reconciliation of the statutory federal income tax rate to the Company's effective rate is as follows: 2021 2020 2019 U.S. statutory rate 21.0 % 21.0 % 21.0 % Foreign statutory rates (0.2) % 1.0 % 0.6 % State taxes on income net of federal tax benefit 4.8 % 5.8 % 5.6 % Valuation allowances 12.2 % (36.6) % (5.2) % Impact of Ukraine currency gains or losses (4.0) % 10.5 % 2.0 % All other, net 3.3 % 3.1 % 0.6 % 37.1 % 4.8 % 24.6 % |
Schedule of net deferred tax assets and liabilities | Deferred tax assets and liabilities consist of the following as of January 31, 2021 and 2020: 2021 2020 (in thousands) Deferred tax assets: Inventory allowances $ 2,616 $ 3,037 Intangible assets 1,874 2,192 Net operating losses 5,242 4,291 Accrued liabilities and other 4,831 3,533 Receivables 1,153 1,137 Stock-based compensation 1,009 1,095 Right of use lease liability 20,874 25,325 Other 597 452 Total deferred tax assets 38,196 41,062 Valuation allowances (6,134) (2,180) Deferred tax assets, net of valuation allowances $ 32,062 $ 38,882 Deferred tax liabilities: Property and equipment $ (10,359) $ (16,752) Right of use lease asset (18,066) (22,038) Total deferred tax liabilities $ (28,425) $ (38,790) Net deferred tax asset $ 3,637 $ 92 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | The following table summarizes activity for long-term cash incentive awards for the year ended January 31, 2021: Shares Weighted Average Grant Date Fair Value (in thousands) Nonvested at January 31, 2020 27 $ 16.48 Granted 27 10.33 Vested (10) 15.98 Nonvested at January 31, 2021 44 $ 12.84 |
Schedule of restricted stock award activity | The following table summarizes RSA activity for the year ended January 31, 2021: Shares Weighted Average Grant Date Fair Value (in thousands) Nonvested at January 31, 2020 361 $ 16.14 Granted 258 10.54 Forfeited (20) 15.23 Vested (179) 15.42 Nonvested at January 31, 2021 420 $ 13.06 |
Summary of restricted stock unit activity | The following table summarizes RSU activity for the year ended January 31, 2021: Shares Weighted Average Grant Date Fair Value (in thousands) Nonvested at January 31, 2020 14 $ 17.06 Granted 9 10.33 Vested (5) 16.48 Nonvested at January 31, 2021 18 $ 13.91 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following is a summary of the changes in accumulated other comprehensive income (loss), by component, for the fiscal years ended January 31, 2021, 2020 and 2019: Foreign Currency Translation Adjustment Net Investment Hedging Instruments, Unrealized Gain Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, January 31, 2018 $ (4,411) $ 2,711 $ (1,700) Total other comprehensive loss (640) — (640) Balance, January 31, 2019 (5,051) 2,711 (2,340) Total other comprehensive loss (880) — (880) Balance, January 31, 2020 (5,931) 2,711 (3,220) Total other comprehensive loss 4,719 — 4,719 Balance, January 31, 2021 $ (1,212) $ 2,711 $ 1,499 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Business Acquisition [Line Items] | |
Schedule of allocations of purchase prices in business combinations | The following table presents the aggregate purchase price allocations for all acquisitions completed during the fiscal years ended January 31, 2021, 2020, and 2019: Year Ended January 31, 2021 2020 2019 (in thousands) Assets acquired: Cash $ 1 $ — $ 3,857 Receivables — 440 5,340 Inventories 4,260 6,466 21,725 Prepaid expenses and other 48 — 887 Property and equipment 1,752 3,810 3,512 Operating lease assets 2,006 — — Intangible assets 245 1,973 1,944 Goodwill 484 1,198 924 Other — — 61 8,796 13,887 38,250 Liabilities Assumed: Accounts payable — — 1,553 Floorplan payable — — 13,820 Current operating lease liabilities 159 — — Deferred revenue — — 85 Accrued expenses and other — — 1,279 Long-term debt — — 1,725 Operating lease liabilities 1,847 — — Deferred income taxes — — 632 2,006 — 19,094 Net assets acquired $ 6,790 $ 13,887 $ 19,156 Goodwill recognized by segment: Agriculture $ 484 $ 699 $ — Construction — — — International — 499 924 Goodwill expected to be deductible for tax purposes 484 1,198 — |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS Tables (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | As of January 31, 2021 and 2020, the fair value of the Company's foreign currency contracts, which are either assets or liabilities measured at fair value on a recurring basis, was not material. These foreign currency contracts were valued using a discounted cash flow analysis, an income approach, utilizing readily observable market data as inputs, which is classified as a Level 2 fair value measurement. |
SEGMENT INFORMATION AND OPERA_2
SEGMENT INFORMATION AND OPERATING RESULTS (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
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. Year Ended January 31, 2021 2020 2019 (in thousands) Revenue Agriculture $ 886,485 $ 749,042 $ 726,793 Construction 305,745 320,034 301,989 International 218,992 236,095 232,723 Total $ 1,411,222 $ 1,305,171 $ 1,261,505 Income (Loss) Before Income Taxes Agriculture $ 34,422 $ 18,036 $ 16,799 Construction 186 (2,290) (4,400) International (6,025) 504 5,160 Segment income before income taxes 28,583 16,250 17,559 Shared Resources 2,170 (1,598) (1,405) Total $ 30,753 $ 14,652 $ 16,154 Total Impairment Agriculture $ 272 $ 2,807 $ 886 Construction 597 957 1,114 International 2,311 — 156 Total $ 3,180 $ 3,764 $ 2,156 Interest Income Agriculture $ 72 $ 54 $ 84 Construction 135 217 234 International 46 44 81 Segment interest income 253 315 399 Shared Resources 16 16 (73) Total $ 269 $ 331 $ 326 Interest Expense Agriculture $ 4,884 $ 5,142 $ 4,272 Construction 5,552 7,221 6,308 International 2,796 3,504 3,313 Segment interest expense 13,232 15,867 13,893 Shared Resources (6,050) (6,061) (19) Total $ 7,182 $ 9,806 $ 13,874 Depreciation and Amortization Agriculture $ 5,337 $ 5,095 $ 4,997 Construction 12,197 12,537 13,652 International 2,645 2,402 1,804 Segment depreciation and amortization 20,179 20,034 20,453 Shared Resources 3,522 8,033 3,152 Total $ 23,701 $ 28,067 $ 23,605 Year Ended January 31, 2021 2020 2019 (in thousands) Capital Expenditures Agriculture $ 5,355 $ 4,699 $ 2,473 Construction 8,202 15,713 7,012 International 2,124 1,768 1,944 Segment capital expenditures 15,681 22,180 11,429 Shared Resources 4,408 2,836 522 Total $ 20,089 $ 25,016 $ 11,951 January 31, 2021 January 31, 2020 Total Assets (in thousands) Agriculture $ 349,697 $ 444,942 Construction 185,534 275,645 International 177,213 191,513 Segment assets 712,444 912,100 Shared Resources 103,345 63,243 Total $ 815,789 $ 975,343 |
BUSINESS ACTIVITY AND SIGNIFI_4
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Impairment of Long-Lived Assets Held-for-use | $ 0.9 | $ 3.1 | $ 2.2 |
Agriculture [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of Long-Lived Assets Held-for-use | 0.3 | 2.3 | 0.9 |
Construction [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of Long-Lived Assets Held-for-use | $ 0.6 | $ 0.8 | $ 1.1 |
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Furniture and fixtures | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Furniture and fixtures | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Vehicles | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years | ||
Vehicles | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Rental Fleet Equipment [Member] | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Rental Fleet Equipment [Member] | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Buildings and leasehold improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Buildings and leasehold improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 40 years |
BUSINESS ACTIVITY AND SIGNIFI_5
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Lessor Accounting | |||
Property and equipment, net | $ 291,176 | $ 290,793 | |
Accumulated depreciation | 144,011 | 145,231 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Impairment of Long-Lived Assets Held-for-use | $ 900 | 3,100 | $ 2,200 |
Receivables and Credit Policy | |||
Period from the invoice date within which trade accounts receivable due from customers | 90 days | ||
Agriculture | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Impairment of Long-Lived Assets Held-for-use | $ 300 | 2,300 | 900 |
Construction [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Impairment of Long-Lived Assets Held-for-use | 600 | $ 800 | $ 1,100 |
Failed Step 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Carrying Value of Long-Lived Assets Analyzed for Impairment | $ 6,400 | ||
Convertible Notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from diluted weighted-average common shares outstanding: | 0 | 0 | 1,057,000 |
BUSINESS ACTIVITY AND SIGNIFI_6
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | 12 Months Ended | ||
Jan. 31, 2021USD ($)segment | Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) | |
Advertising Costs | |||
Advertising Expense | $ | $ 2.2 | $ 2.2 | $ 2.1 |
Segment Reporting | |||
Number of Reportable Segments | segment | 3 |
BUSINESS ACTIVITY AND SIGNIFI_7
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Comprehensive Income and Foreign Currency Matters | |||
Net foreign currency transaction gain (loss) | $ 2.8 | $ (0.4) | $ 0.9 |
BUSINESS ACTIVITY AND SIGNIFI_8
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Jan. 31, 2021 | |
Maximum | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Maximum | Vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Maximum | Rental Fleet Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Maximum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Maximum | Buildings and leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Minimum | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Minimum | Vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Minimum | Rental Fleet Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Minimum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Minimum | Buildings and leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
BUSINESS ACTIVITY AND SIGNIFI_9
BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Accounting Policies [Abstract] | |||
Impairment of Long-Lived Assets Held-for-use | $ 0.9 | $ 3.1 | $ 2.2 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Net Income (Loss) Attributable to Parent | $ 19,356 | $ 13,953 | $ 12,182 |
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | 325 | 221 | 202 |
Net Income (Loss) Available to Common Stockholders, Basic | $ 19,031 | $ 13,732 | $ 11,980 |
Weighted Average Number of Shares Outstanding, Basic | 22,100 | 21,946 | 21,809 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 4 | 7 | 7 |
Weighted Average Number of Shares Outstanding, Diluted | 22,104 | 21,953 | 21,816 |
Earnings Per Share, Basic | $ 0.86 | $ 0.63 | $ 0.55 |
Earnings (Loss) per share - diluted (in dollars per share) | $ 0.86 | $ 0.63 | $ 0.55 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 1,411,222 | $ 1,305,171 | $ 1,261,505 |
Short-term Debt, Terms | 30 days | ||
International [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 218,992 | 236,095 | 232,723 |
Agriculture [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 886,485 | 749,042 | 726,793 |
Construction [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 305,745 | 320,034 | 301,989 |
Operating Segments [Member] | International [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 218,992 | 236,095 | 232,723 |
Operating Segments [Member] | Agriculture [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 886,485 | 749,042 | 726,793 |
Operating Segments [Member] | Construction [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 305,745 | 320,034 | 301,989 |
Service Revenue [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 107,229 | 99,165 | 86,840 |
Service Revenue [Member] | Operating Segments [Member] | International [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 7,042 | 6,818 | 4,750 |
Service Revenue [Member] | Operating Segments [Member] | Agriculture [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 74,963 | 66,158 | 58,823 |
Service Revenue [Member] | Operating Segments [Member] | Construction [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 25,224 | 26,189 | 23,267 |
Rental Revenue [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 37,429 | 48,439 | 47,926 |
Rental Revenue [Member] | Operating Segments [Member] | International [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,006 | 1,314 | 3,162 |
Rental Revenue [Member] | Operating Segments [Member] | Agriculture [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,878 | 3,010 | 2,505 |
Rental Revenue [Member] | Operating Segments [Member] | Construction [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 33,545 | 44,115 | 42,259 |
Equipment Revenue [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,016,071 | 917,202 | 909,178 |
Equipment Revenue [Member] | Operating Segments [Member] | International [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 168,332 | 186,735 | 188,981 |
Equipment Revenue [Member] | Operating Segments [Member] | Agriculture [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 654,244 | 535,792 | 535,034 |
Equipment Revenue [Member] | Operating Segments [Member] | Construction [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 193,495 | 194,675 | 185,163 |
Parts Revenue [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 244,676 | 234,217 | 210,796 |
Parts Revenue [Member] | Operating Segments [Member] | International [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 42,212 | 40,964 | 35,651 |
Parts Revenue [Member] | Operating Segments [Member] | Agriculture [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 151,278 | 141,093 | 127,741 |
Parts Revenue [Member] | Operating Segments [Member] | Construction [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 51,186 | 52,160 | 47,404 |
Other Revenue [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 5,817 | 6,148 | 6,765 |
Other Revenue [Member] | Operating Segments [Member] | International [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 400 | 264 | 179 |
Other Revenue [Member] | Operating Segments [Member] | Agriculture [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 3,122 | 2,989 | 2,690 |
Other Revenue [Member] | Operating Segments [Member] | Construction [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,295 | 2,895 | 3,896 |
Revenue from Contracts with Customers [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,373,793 | 1,256,732 | 1,213,579 |
Revenue from Contracts with Customers [Member] | Operating Segments [Member] | International [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 217,986 | 234,781 | 229,561 |
Revenue from Contracts with Customers [Member] | Operating Segments [Member] | Agriculture [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 883,607 | 746,032 | 724,288 |
Revenue from Contracts with Customers [Member] | Operating Segments [Member] | Construction [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 272,200 | $ 275,919 | $ 259,730 |
REVENUE Deferred Revenue (Detai
REVENUE Deferred Revenue (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Deferred Revenue Arrangement | ||
Contract with Customer, Liability | $ 59,418 | $ 40,968 |
Deferred Revenue | 1,687 | 1,456 |
Product and Services [Member] | ||
Deferred Revenue Arrangement | ||
Contract with Customer, Liability | 57,731 | 39,512 |
Deferred Revenue from Contracts with Customers [Member] | ||
Deferred Revenue Arrangement | ||
Deferred Revenue | $ 57,700 | $ 39,500 |
RECEIVABLES (Details)
RECEIVABLES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Receivables | ||
Accounts Receivable, Allowance for Credit Loss | $ 2,994 | $ 2,943 |
Accounts Receivable, after Allowance for Credit Loss, Current | 41,579 | 47,401 |
Receivables, net | 69,109 | 72,776 |
Impaired Financing Receivables | 498 | 2,497 |
Accounts Receivable, Credit Loss Expense (Reversal) | 564 | |
Accounts Receivable, Allowance for Credit Loss, Writeoff | (716) | |
Accounts Receivable, Allowance for Credit Loss, Recovery | 87 | |
Trade Accounts Receivable | ||
Receivables | ||
Trade accounts receivable | 31,664 | 36,400 |
Unbilled Receivables from Operating Leases and Rental Contract | ||
Receivables | ||
Unbilled Receivables, Current | 12,909 | 13,944 |
Unbilled Revenues [Member] | ||
Receivables | ||
Accounts Receivable, Allowance for Credit Loss | 2,994 | 2,943 |
Due from finance companies | ||
Receivables | ||
Trade accounts receivable | 14,133 | 12,352 |
Accounts Receivable [Member] | ||
Receivables | ||
Trade accounts receivable | 4,329 | 7,381 |
Unbilled Receivables from Operating Leases and Rental Contracts [Member] | ||
Receivables | ||
Trade accounts receivable | 520 | 861 |
Trade And Unbilled Receivables From Rental Contracts | ||
Receivables | ||
Accounts Receivable, Allowance for Credit Loss | 1,939 | 2,180 |
Accounts Receivable, after Allowance for Credit Loss, Current | 2,910 | 6,062 |
Due from manufacturers | ||
Receivables | ||
Trade accounts receivable | 8,720 | 5,763 |
Other Receivables [Domain] | ||
Receivables | ||
Trade accounts receivable | 1,767 | 1,198 |
Accounts Receivable, after Allowance for Credit Loss, Current | 10,487 | 6,961 |
impairment losses from Sales Contracts [Member] | ||
Receivables | ||
Trade accounts receivable | 356 | 1,373 |
impairment losses from Rental Contracts [Member] | ||
Receivables | ||
Trade accounts receivable | 142 | 1,124 |
Agriculture [Member] | ||
Receivables | ||
Accounts Receivable, Allowance for Credit Loss | 229 | 181 |
Accounts Receivable, Credit Loss Expense (Reversal) | 115 | |
Accounts Receivable, Allowance for Credit Loss, Writeoff | (125) | |
Accounts Receivable, Allowance for Credit Loss, Recovery | 58 | |
Construction [Member] | ||
Receivables | ||
Accounts Receivable, Allowance for Credit Loss | 1,074 | 1,016 |
Accounts Receivable, Credit Loss Expense (Reversal) | 282 | |
Accounts Receivable, Allowance for Credit Loss, Writeoff | (247) | |
Accounts Receivable, Allowance for Credit Loss, Recovery | 23 | |
International [Member] | ||
Receivables | ||
Accounts Receivable, Allowance for Credit Loss | 1,691 | $ 1,746 |
Accounts Receivable, Credit Loss Expense (Reversal) | 167 | |
Accounts Receivable, Allowance for Credit Loss, Writeoff | (344) | |
Accounts Receivable, Allowance for Credit Loss, Recovery | 6 | |
Financing Receivable, Allowance for Credit Loss, Foreign Currency Translation | $ 116 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Inventory Disclosure [Abstract] | ||
New equipment | $ 206,683 | $ 358,339 |
Used equipment | 131,369 | 157,535 |
Parts and attachments | 78,982 | 79,813 |
Work in process | 1,424 | 1,707 |
Inventories | $ 418,458 | $ 597,394 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 291,176 | $ 290,793 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 144,011 | 145,231 | |
Property and equipment, net | 147,165 | 145,562 | |
Capital Leased Assets, Gross | 31,100 | 24,300 | |
Capital Leases, Accumulated Depreciation | (8,700) | (6,900) | |
Depreciation expense | 21,900 | 26,500 | $ 23,600 |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 23,354 | 22,682 | |
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 55,884 | 51,850 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 43,678 | 41,720 | |
Land, buildings, and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 90,730 | $ 70,408 |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL - Schedule of Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
INTANGIBLE ASSETS | |||
Cost | $ 510 | $ 445 | |
Accumulated Amortization | (223) | (90) | |
Net | 287 | 355 | |
Amortization expense | 100 | 100 | $ 100 |
Covenants not to compete | |||
INTANGIBLE ASSETS | |||
Cost | 150 | 100 | |
Accumulated Amortization | (38) | (7) | |
Net | 112 | 93 | |
Customer relationships | |||
INTANGIBLE ASSETS | |||
Cost | 360 | 345 | |
Accumulated Amortization | (185) | (83) | |
Net | $ 175 | $ 262 |
INTANGIBLE ASSETS AND GOODWIL_3
INTANGIBLE ASSETS AND GOODWILL - Schedule of Intangible Assets Future Amortization Expenses (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Goodwill [Line Items] | |||
Goodwill | $ 1,433 | $ 2,327 | $ 1,161 |
Goodwill, Acquired During Period | 484 | 1,198 | 924 |
Goodwill, Foreign Currency Translation Gain (Loss) | 75 | (33) | |
Goodwill, Impairment Loss | 1,453 | ||
Future amortization expense | |||
2022 | 112 | ||
2023 | 74 | ||
2024 | 63 | ||
2025 | 38 | ||
2026 | 0 | ||
Thereafter | 0 | ||
Net | 287 | 355 | |
International [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 0 | 1,378 | 911 |
Goodwill, Acquired During Period | 0 | 499 | |
Goodwill, Foreign Currency Translation Gain (Loss) | 75 | (32) | |
Goodwill, Impairment Loss | 1,453 | ||
Agriculture [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 1,433 | 949 | $ 250 |
Goodwill, Acquired During Period | 484 | 699 | |
Goodwill, Foreign Currency Translation Gain (Loss) | $ 0 | $ 0 |
INTANGIBLE ASSETS AND GOODWIL_4
INTANGIBLE ASSETS AND GOODWILL - Schedule of Indefinite-Lived Intangible Assets (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Indefinite-lived Intangible Assets | |||
Other Indefinite-lived Intangible Assets | $ 7,498 | $ 8,012 | $ 7,092 |
Indefinite-lived Intangible Assets Acquired | 195 | 1,623 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 858 | 672 | |
Other Intangible Assets [Member] | |||
Indefinite-lived Intangible Assets | |||
Translation Adjustment Functional to Reporting Currency, Net of Tax, Period Increase (Decrease) | 149 | (31) | |
International [Member] | |||
Indefinite-lived Intangible Assets | |||
Other Indefinite-lived Intangible Assets | 1,161 | 1,870 | 1,805 |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 858 | ||
International [Member] | Other Intangible Assets [Member] | |||
Indefinite-lived Intangible Assets | |||
Indefinite-lived Intangible Assets Acquired | 96 | ||
Translation Adjustment Functional to Reporting Currency, Net of Tax, Period Increase (Decrease) | 149 | (31) | |
Construction [Member] | |||
Indefinite-lived Intangible Assets | |||
Other Indefinite-lived Intangible Assets | 72 | 72 | 237 |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 165 | ||
Agriculture Segment | |||
Indefinite-lived Intangible Assets | |||
Other Indefinite-lived Intangible Assets | 6,265 | 6,070 | $ 5,050 |
Indefinite-lived Intangible Assets Acquired | 195 | 1,527 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 507 | ||
Distribution Rights [Member] | |||
Indefinite-lived Intangible Assets | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 900 | $ 700 |
INTANGIBLE ASSETS AND GOODWIL_5
INTANGIBLE ASSETS AND GOODWILL - Goodwill Rollforward (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Goodwill [Line Items] | |||
Balance at the beginning of the period | $ 2,327 | $ 1,161 | |
Arising in completed business combinations | 484 | 1,198 | $ 924 |
Foreign currency translation adjustment | 75 | (33) | |
Goodwill, Impairment Loss | 1,453 | ||
Balance at the end of the period | 1,433 | 2,327 | 1,161 |
Agriculture | |||
Goodwill [Line Items] | |||
Balance at the beginning of the period | 949 | 250 | |
Arising in completed business combinations | 484 | 699 | |
Foreign currency translation adjustment | 0 | 0 | |
Balance at the end of the period | 1,433 | 949 | 250 |
International [Member] | |||
Goodwill [Line Items] | |||
Balance at the beginning of the period | 1,378 | 911 | |
Arising in completed business combinations | 0 | 499 | |
Foreign currency translation adjustment | 75 | (32) | |
Goodwill, Impairment Loss | 1,453 | ||
Balance at the end of the period | $ 0 | $ 1,378 | $ 911 |
FLOORPLAN PAYABLE_LINES OF CR_3
FLOORPLAN PAYABLE/LINES OF CREDIT (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Line of Credit Facility [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | |
Compensating Balance, Amount | $ 5,000,000 | |
Amount Available for Dividend Distribution without Affecting Capital Adequacy Requirements | 47,400,000 | |
Floorplan Notes Payable | 161,835,000 | $ 371,772,000 |
Non-Interest Bearing Floorplan Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Floorplan Notes Payable | 98,800,000 | 205,200,000 |
Floorplan Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 773,000,000 | |
Long-term Line of Credit | 161,835,000 | $ 371,772,000 |
UNITED STATES | Floorplan Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 360,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.05% | |
UNITED STATES | Floorplan Line of Credit [Member] | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.81% | |
Non-US | Floorplan Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 90,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.40% | 0.86% |
Non-US | Floorplan Line of Credit [Member] | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.82% | 7.66% |
Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term Line of Credit | $ 0 | $ 10,000,000 |
Bank Syndicate Agreement | ||
Line of Credit Facility [Line Items] | ||
Minimum Fixed Charge Coverage Ratio Covenant | 1.10 | |
Bank Syndicate Agreement | Federal Funds Effective Swap Rate | ||
Line of Credit Facility [Line Items] | ||
Margin over variable rate basis (as a percent) | 0.50% | |
Bank Syndicate Agreement | One Month LIBOR | ||
Line of Credit Facility [Line Items] | ||
Margin over variable rate basis (as a percent) | 1.00% | |
Bank Syndicate Agreement | Line of Credit [Member] | Minimum | ||
Line of Credit Facility [Line Items] | ||
Non-usage fee on average monthly unused amount (as a percent) | 0.25% | |
Bank Syndicate Agreement | Line of Credit [Member] | Minimum | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Margin over variable rate basis (as a percent) | 1.50% | |
Bank Syndicate Agreement | Line of Credit [Member] | Maximum | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Margin over variable rate basis (as a percent) | 2.00% | |
Bank Syndicate Agreement | Working capital line of credit | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 65,000,000 | |
Bank Syndicate Agreement | Floorplan Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 185,000,000 | |
Long-term Line of Credit | $ 0 | 82,700,000 |
C N H Capital America L L C [Member] | ||
Line of Credit Facility [Line Items] | ||
Minimum Fixed Charge Coverage Ratio Covenant | 1.10 | |
Line of Credit Facility Covenant, Maximum level of adjusted debt to tangible net worth | 3.50 | |
C N H Capital America L L C [Member] | Floorplan Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 450,000,000 | |
Long-term Line of Credit | $ 86,792,000 | 187,690,000 |
Margin over variable rate basis (as a percent) | 3.25% | |
Basis of variable interest rate | prime | |
DLL Finance | ||
Line of Credit Facility [Line Items] | ||
Minimum Fixed Charge Coverage Ratio Covenant | 1.10 | |
DLL Finance | Floorplan Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 60,000,000 | |
Long-term Line of Credit | $ 10,667,000 | 30,657,000 |
Basis of variable interest rate | three-month LIBOR | |
Notice period for increasing, decreasing or termination of credit facility | 90 days | |
DLL Finance | Floorplan Line of Credit [Member] | Minimum | ||
Line of Credit Facility [Line Items] | ||
Margin over variable rate basis (as a percent) | 2.85% | |
Other Affiliates [Member] | Floorplan Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term Line of Credit | $ 64,376,000 | $ 70,725,000 |
International [Member] | DLL Finance | Floorplan Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 13,500,000 | |
Basis of variable interest rate | three-month EURIBOR | |
International [Member] | DLL Finance | Floorplan Line of Credit [Member] | Minimum | ||
Line of Credit Facility [Line Items] | ||
Margin over variable rate basis (as a percent) | 2.10% | |
International [Member] | DLL Finance | Floorplan Line of Credit [Member] | Maximum | ||
Line of Credit Facility [Line Items] | ||
Margin over variable rate basis (as a percent) | 2.50% | |
DomesticLineOfCreditMember | DLL Finance | Floorplan Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 46,500,000 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Payables and Accruals [Abstract] | ||
Compensation | $ 21,635 | $ 19,732 |
Sales, payroll, real estate and value added taxes | 8,287 | 5,947 |
Interest | 257 | 608 |
Insurance | 2,839 | 3,336 |
Other | 5,082 | 4,975 |
Total accrued expenses | 48,791 | 38,360 |
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Net | 868 | 2,054 |
Finance Lease, Liability | $ 9,823 | $ 1,708 |
SENIOR CONVERTIBLE NOTES (Detai
SENIOR CONVERTIBLE NOTES (Details) - USD ($) $ in Millions | 1 Months Ended | |
Apr. 30, 2012 | Jan. 31, 2020 | |
SENIOR CONVERTIBLE NOTES | ||
Debt Instrument, Repurchased Face Amount | $ 45.6 | |
Amount of debt issued | $ 150 | |
Interest rate (as a percent) | 3.75% |
SENIOR CONVERTIBLE NOTES (Det_2
SENIOR CONVERTIBLE NOTES (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2020 | Jan. 31, 2019 | |
SENIOR CONVERTIBLE NOTES | ||
Senior Convertible Notes repurchased, face value | $ 45,600 | |
Convertible Notes | ||
SENIOR CONVERTIBLE NOTES | ||
Coupon interest expense | 421 | $ 2,014 |
Amortization of debt discount | 350 | 1,626 |
Amortization of transaction costs | 45 | 216 |
Interest and Debt Expense | $ 816 | $ 3,856 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) | Jan. 31, 2021 | Jan. 31, 2020 |
LONG-TERM DEBT | ||
Long term debt | $ 49,497,000 | $ 51,568,000 |
Less current maturities | (4,591,000) | (13,779,000) |
Notes and Loans, Noncurrent | 44,906,000 | 37,789,000 |
Mortgages | ||
LONG-TERM DEBT | ||
Long term debt | 22,916,000 | 15,252,000 |
Line of Credit | ||
LONG-TERM DEBT | ||
Long-term Line of Credit | 0 | 10,000,000 |
Secured Debt | ||
LONG-TERM DEBT | ||
Long term debt | 9,999,000 | 7,468,000 |
Loans Payable | ||
LONG-TERM DEBT | ||
Long term debt | 77,000 | 1,067,000 |
Sale-leaseback Financing Obligation | ||
LONG-TERM DEBT | ||
Long term debt | 16,505,000 | 17,781,000 |
Floorplan Line of Credit [Member] | ||
LONG-TERM DEBT | ||
Long-term Line of Credit | $ 161,835,000 | $ 371,772,000 |
LONG-TERM DEBT - Maturities (De
LONG-TERM DEBT - Maturities (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Total Present Value of Minimum Lease Payments and Other Long-Term Debt | ||
2022 | $ 4,591 | |
2023 | 4,729 | |
2024 | 4,885 | |
2025 | 8,345 | |
2026 | 4,225 | |
Thereafter | 22,722 | |
Long term debt | $ 49,497 | $ 51,568 |
DERIVATIVE INSTRUMENTS (Details
DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
DERIVATIVE INSTRUMENTS | |||
Derivative, Notional Amount | $ 8,000 | ||
Foreign currency forward contracts | |||
DERIVATIVE INSTRUMENTS | |||
Derivative, Gain (Loss) on Derivative, Net | 934 | $ 365 | $ 1,696 |
Foreign currency forward contracts | Not designated as hedging instruments | |||
DERIVATIVE INSTRUMENTS | |||
Derivative, Gain (Loss) on Derivative, Net | $ 934 | $ 365 | $ 1,696 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Jan. 31, 2021USD ($) |
Other Commitments [Line Items] | |
Contractual Obligation | $ 2 |
Other Commitment | 1.7 |
Other Commitment, Due in Second and Third Year | 0.8 |
Other Commitment, Due in Next Twelve Months | 0.9 |
Guarantees on customer financing | $ 1.2 |
LEASES (Details)
LEASES (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 291,176,000 | $ 290,793,000 | |
Property, Plant and Equipment, Net | 147,165,000 | 145,562,000 | |
Revenues | 1,411,222,000 | 1,305,171,000 | $ 1,261,505,000 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 144,011,000 | 145,231,000 | |
Lessee, Operating Lease, Liability, Payments, Due Next Rolling Twelve Months | 16,521,000 | ||
Operating Lease, Payments | $ 18,267,000 | $ 18,176,000 | |
Operating Lease, Weighted Average Remaining Lease Term | 7 years 2 months 12 days | 7 years 10 months 24 days | |
Operating Lease, Right-of-Use Asset | $ 74,445,000 | $ 88,281,000 | |
Finance Lease, Right-of-Use Asset, Amortization | 1,585,000 | 1,457,000 | |
Finance Lease, Interest Expense | 451,000 | 554,000 | |
Operating Lease, Cost | 18,025,000 | 21,225,000 | |
Short-term Lease, Cost | 340,000 | 242,000 | |
Variable Lease, Cost | 2,798,000 | 2,665,000 | |
Sublease Income | (547,000) | (620,000) | |
Lease, Cost | 22,652,000 | 25,523,000 | |
Finance Lease, Right-of-Use Asset | 12,426,000 | 6,297,000 | |
Lessee, Right-Of-Use Asset | 86,871,000 | 94,578,000 | |
Operating Lease, Liability, Current | 11,772,000 | 12,259,000 | |
Finance Lease, Liability, Current | 9,823,000 | 1,708,000 | |
Finance Lease, Liability, Current | 12,734,000 | ||
Operating Lease, Liability, Noncurrent | 73,567,000 | 88,387,000 | |
Finance Lease, Liability, Noncurrent | 2,911,000 | 4,103,000 | |
Lessee, Lease Liability | 98,073,000 | $ 106,457,000 | |
Finance Lease, Liability, Payments, Remainder of Fiscal Year | 10,131,000 | ||
Lessee, Liability, Payments, Remainder of Fiscal Year | 26,652,000 | ||
Finance Lease, Liability, Payments, Due Next Twelve Months | 1,328,000 | ||
Lessee, Liability, Payments, Due Next Twelve Months | 16,761,000 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 15,433,000 | ||
Lessee, Liability, Payments, Due Year Two | 14,906,000 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 14,324,000 | ||
Finance Lease, Liability, Payments, Due Year Three | 582,000 | ||
Finance Lease, Liability, Payments, Due Year Four | 463,000 | ||
Lessee, Liability, Payments, Due Year Three | 13,540,000 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 13,077,000 | ||
Lessee, Liability, Payments, Due Year Four | 13,222,000 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 12,910,000 | ||
Finance Lease, Liability, Payments, Due Year Five | 312,000 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 33,252,000 | ||
Finance Lease, Liability, Payments, Due after Year Five | 1,084,000 | ||
Lessee, Liability, Payments, Due After Year Five | 34,336,000 | ||
Lessee, Operating Lease, Liability, Payments, Due | 105,517,000 | ||
Finance Lease, Liability, Payment, Due | 13,900,000 | ||
Lessee, Liability, Payments, Due | 119,417,000 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 20,178,000 | ||
Finance Lease, Liability, Undiscounted Excess Amount | 1,166,000 | ||
Lessee, Liability, Undiscounted Excess Amount | 21,344,000 | ||
Operating Lease, Liability | 85,339,000 | ||
Present Value of Lease Liabilities | $ 98,073,000 | ||
Finance Lease, Weighted Average Remaining Lease Term | 1 year 9 months 18 days | 5 years 4 months 24 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 6.10% | 6.10% | |
Finance Lease, Weighted Average Discount Rate, Percent | 5.30% | 8.50% | |
Finance Lease, Interest Payment on Liability | $ 451,000 | $ 553,000 | |
Finance Lease, Principal Payments | 1,816,000 | 1,812,000 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 3,066,000 | 1,316,000 | |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 512,000 | 1,333,000 | |
Rental Fleet Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 77,530,000 | 104,133,000 | |
Property, Plant and Equipment, Net | 48,614,000 | 62,057,000 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 28,916,000 | $ 42,076,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Valuation Allowance [Line Items] | |||
Operating Loss Carryforwards | $ 36,700 | ||
Undistributed Earnings of Foreign Subsidiaries | 20,000 | ||
Deferred Tax Assets, Net | 3,637 | $ 92 | |
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 36,778 | 14,148 | $ 10,994 |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | (6,025) | 504 | 5,160 |
Income (Loss) from Continuing Operations before Income Taxes, Total | 30,753 | 14,652 | 16,154 |
Current payable (receivable) | |||
Federal | 12,825 | 897 | (110) |
State | 1,442 | 116 | (189) |
Foreign | 668 | 1,349 | 1,760 |
Current Income Tax Expense (Benefit) | 14,935 | 2,362 | 1,461 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | (5,128) | (375) | 2,071 |
State | 553 | (1,929) | (45) |
Foreign | 1,037 | 641 | 485 |
Deferred income taxes | (3,538) | (1,663) | 2,511 |
Total | $ 11,397 | $ 699 | $ 3,972 |
Reconciliation of statutory federal income tax rate to effective rate | |||
U.S. statutory rate (as a percent) | 21.00% | 21.00% | 21.00% |
Foreign statutory rates (as a percent) | (0.20%) | 1.00% | 0.60% |
State taxes on income net of federal tax benefit (as a percent) | 4.80% | 5.80% | 5.60% |
Valuation allowances (as a percent) | 12.20% | (36.60%) | (5.20%) |
Effective Income Tax Rate Reconciliation, Foreign Currency Gains (Losses) | (4.00%) | 10.50% | 2.00% |
All other, net (as a percent) | 3.30% | 3.10% | 0.60% |
Effective tax rate (as a percent) | 37.10% | 4.80% | 24.60% |
Current deferred tax assets: | |||
Inventory allowances | $ 2,616 | $ 3,037 | |
Intangible assets | 1,874 | 2,192 | |
Net operating losses | 5,242 | 4,291 | |
Accrued liabilities and other | 4,831 | 3,533 | |
Receivables | 1,153 | 1,137 | |
Stock-based compensation | 1,009 | 1,095 | |
Deferred Tax Liabilities, Leasing Arrangements | 20,874 | 25,325 | |
Other | 597 | 452 | |
Total deferred tax assets | 38,196 | 41,062 | |
Valuation allowances | (6,134) | (2,180) | |
Deferred tax assets, net of valuation allowances | 32,062 | 38,882 | |
Non-current deferred tax assets (liabilities): | |||
Property and equipment | (10,359) | (16,752) | |
Deferred Tax Liabilities Right of Use Assets | (18,066) | (22,038) | |
Total deferred tax liabilities | $ (28,425) | $ (38,790) |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Operating Loss Carryforwards [Line Items] | ||
Undistributed earnings in non-U.S. subsidiaries | $ 20,000 | |
Net operating loss carryforwards | 36,700 | |
Valuation Allowances | 6,134 | $ 2,180 |
Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
OperatingLossCarryforwardIndefinite | 22,900 | |
OperatingLossCarryforwardsLimited | 9,200 | |
Domestic Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
OperatingLossCarryforwardsLimited | $ 4,600 |
CAPITAL STRUCTURE (Details)
CAPITAL STRUCTURE (Details) - $ / shares | Jan. 31, 2021 | Jan. 31, 2020 | Jun. 01, 2012 |
Stockholders' Equity Note [Abstract] | |||
Shares authorized for issuance | 50,000,000 | ||
Par value of shares authorized (in dollars per share) | $ 0.00001 | $ 0.00001 | $ 0.00001 |
Common stock, authorized shares | 45,000,000 | 45,000,000 | 45,000,000 |
Undesignated shares authorized | 5,000,000 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
STOCK-BASED COMPENSATION | |||
Number of shares authorized | 2,200,000 | ||
Number of shares available for future awards | 791,959 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 15.98 | ||
Restricted Stock [Member] | |||
STOCK-BASED COMPENSATION | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 15.42 | ||
Restricted Stock [Member] | Board of Directors | Maximum | |||
STOCK-BASED COMPENSATION | |||
Vesting period | 1 year | ||
Restricted Stock [Member] | Employees | Minimum | |||
STOCK-BASED COMPENSATION | |||
Vesting period | 4 years | ||
Restricted Stock [Member] | Employees | Maximum | |||
STOCK-BASED COMPENSATION | |||
Vesting period | 6 years | ||
Restricted Stock Units (RSUs) [Member] | Employees | Minimum | |||
STOCK-BASED COMPENSATION | |||
Vesting period | 3 years | ||
Restricted Stock Units (RSUs) [Member] | Employees | Maximum | |||
STOCK-BASED COMPENSATION | |||
Vesting period | 6 years | ||
The Plan | |||
STOCK-BASED COMPENSATION | |||
Compensation cost | $ 2.7 | $ 2.7 | $ 2.7 |
Income tax benefit (net) | $ 0.4 | $ 0.6 | $ 0.8 |
STOCK-BASED COMPENSATION (Det_2
STOCK-BASED COMPENSATION (Details 2) - $ / shares | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Restricted Stock Units (RSUs) [Member] | ||
Stock options outstanding and exercisable by exercise price range | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 10.33 | $ 17.79 |
STOCK-BASED COMPENSATION (Det_3
STOCK-BASED COMPENSATION (Details 3) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price | $ 12.84 | $ 16.48 | |
Shares | |||
Balance at the beginning of the period (in shares) | 27 | ||
Granted (in shares) | 27 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 15.98 | ||
Balance at the end of the period (in shares) | 44 | 27 | |
Weighted Average Grant Date Fair Value | |||
Vested (in dollars per share) | $ 10.33 | ||
Balance at the end of the period (in dollars per share) | $ 13.91 | ||
Additional disclosure | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | (10) | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 0.4 | ||
Restricted Stock Awards | |||
Shares | |||
Balance at the beginning of the period (in shares) | 361 | ||
Granted (in shares) | 258 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 15.42 | ||
Forfeited (in shares) | (20) | ||
Vested (in shares) | (179) | ||
Balance at the end of the period (in shares) | 420 | 361 | |
Weighted Average Grant Date Fair Value | |||
Balance at the beginning of the period (in dollars per share) | $ 16.14 | ||
Granted (in dollars per share) | 10.54 | $ 16.48 | $ 17.22 |
Forfeited (in dollars per share) | 15.23 | ||
Balance at the end of the period (in dollars per share) | $ 13.06 | $ 16.14 | |
Weighted Average Remaining Contractual Term | |||
Nonvested | 2 years 3 months 18 days | ||
Additional disclosure | |||
Fair value of restricted stock vested | $ 1.6 | $ 3.8 | $ 3.6 |
Unrecognized compensation cost on non-vested restricted stock | $ 3.8 | ||
Restricted Stock Units | |||
Shares | |||
Balance at the beginning of the period (in shares) | 14 | ||
Granted (in shares) | 9 | ||
Vested (in shares) | (5) | ||
Balance at the end of the period (in shares) | 18 | 14 | |
Weighted Average Grant Date Fair Value | |||
Balance at the beginning of the period (in dollars per share) | $ 17.06 | ||
Granted (in dollars per share) | 10.33 | $ 17.79 | |
Balance at the end of the period (in dollars per share) | $ 16.48 | $ 17.06 | |
Weighted Average Remaining Contractual Term | |||
Nonvested | 2 years 4 months 24 days | ||
Additional disclosure | |||
Unrecognized compensation cost on non-vested restricted stock | $ 0.2 | ||
Management Service, Incentive [Member] | |||
Weighted Average Remaining Contractual Term | |||
Nonvested | 1 year 4 months 24 days |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Accumulated Other Comprehensive Income [Abstract] | ||||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ 4,719 | $ (880) | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | $ (640) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 4,719 | (880) | ||
Accumulated other comprehensive income (loss) | 1,499 | (3,220) | (2,340) | $ (1,700) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (640) | |||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), Reclassification, before Tax | 0 | |||
Derivatives used in Net Investment Hedge, Net of Tax | 2,711 | 2,711 | 2,711 | 2,711 |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (1,212) | $ (5,931) | $ (5,051) | $ (4,411) |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) $ in Millions | 12 Months Ended | ||
Jan. 31, 2021USD ($)yr | Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) | |
401(k) profit sharing plan | |||
Minimum age of employees considered as an eligibility criteria for the employee benefit plan | yr | 19 | ||
Employer matching contribution as a percentage of employee's contribution | 50.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% | ||
Contributions to the plan | $ | $ 3.1 | $ 3 | $ 2.7 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Business Acquisition [Line Items] | |||
Cash Acquired from Acquisition | $ 1 | $ 0 | $ 3,857 |
Purchase price allocation | |||
Cash consideration | 6,800 | 10,900 | 19,200 |
Goodwill expected to be deductible for tax purposes | 484 | 1,198 | |
Real Estate Investment Property, at Cost | 2,100 | ||
Goodwill, Acquired During Period | 484 | 1,198 | 924 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 0 | 61 | |
Business Combination, Acquired Receivable, Fair Value | 0 | 440 | 5,340 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 48 | 0 | 887 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 1,752 | 3,810 | 3,512 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 2,006 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 245 | 1,973 | 1,944 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 8,796 | 13,887 | 38,250 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 1,553 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities | 2,700 | 7,400 | 13,820 |
Business Combination, Recognized Identifiable Asset Acquired And Liability Assumed, Operating Lease Liability, Current | 159 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | 85 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 1,279 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 1,725 | ||
Business Combination, Recognized Identifiable Asset Acquired And Liability Assumed, Operating Lease Liability, Non-Current | 1,847 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 2,006 | 19,094 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 6,790 | 13,887 | 19,156 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 4,260 | 6,466 | 21,725 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 632 | ||
International [Member] | |||
Purchase price allocation | |||
Cash consideration | 3,000 | ||
Goodwill expected to be deductible for tax purposes | 0 | 499 | 924 |
Goodwill, Acquired During Period | 0 | 499 | |
Agriculture [Member] | |||
Purchase price allocation | |||
Goodwill expected to be deductible for tax purposes | 484 | 699 | |
Goodwill, Acquired During Period | 484 | 699 | |
Other Intangible Assets [Member] | |||
Purchase price allocation | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 100 | ||
Distribution Rights [Member] | |||
Purchase price allocation | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 200 | 1,600 | 1,800 |
Customer Relationships [Member] | |||
Purchase price allocation | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 200 | $ 100 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS ASSETS AND LIABILITIES MEASURED ON A NONRECURRING BASIS (Details 2) - USD ($) $ in Millions | Jan. 31, 2021 | Oct. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 |
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Carrying Value of Long-Lived Assets Analyzed for Impairment | $ 0.8 | $ 0.5 | $ 0.4 | $ 2.8 |
SEGMENT INFORMATION AND OPERA_3
SEGMENT INFORMATION AND OPERATING RESULTS (Details) $ in Millions | 12 Months Ended | |
Jan. 31, 2021USD ($)segment | Jan. 31, 2020USD ($) | |
Revenue and long-lived assets | ||
Number of Reportable Segments | segment | 3 | |
European subsidiaries | ||
Revenue and long-lived assets | ||
Long-lived assets | $ | $ 18 | $ 18 |
SEGMENT INFORMATION AND OPERA_4
SEGMENT INFORMATION AND OPERATING RESULTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Segment Reporting Information | |||
Revenues | $ 1,411,222 | $ 1,305,171 | $ 1,261,505 |
Income (Loss) Before Income Taxes | 30,753 | 14,652 | 16,154 |
Impairment of goodwill, intangible assets and long lived assets | 3,180 | 3,764 | 2,156 |
Realignment Costs | 414 | ||
Interest Income | 269 | 331 | 326 |
Interest expense | 7,182 | 9,806 | 13,874 |
Depreciation and Amortization | 23,701 | 28,067 | 23,605 |
Capital Expenditures | 20,089 | 25,016 | 11,951 |
Total Assets | 815,789 | 975,343 | |
Agriculture | |||
Segment Reporting Information | |||
Revenues | 886,485 | 749,042 | 726,793 |
Income (Loss) Before Income Taxes | 34,422 | 18,036 | 16,799 |
Impairment of goodwill, intangible assets and long lived assets | 272 | 2,807 | 886 |
Interest Income | 72 | 54 | 84 |
Interest expense | 4,884 | 5,142 | 4,272 |
Depreciation and Amortization | 5,337 | 5,095 | 4,997 |
Capital Expenditures | 5,355 | 4,699 | 2,473 |
Total Assets | 349,697 | 444,942 | |
Shared Resources | |||
Segment Reporting Information | |||
Income (Loss) Before Income Taxes | 2,170 | (1,598) | (1,405) |
Interest Income | 16 | 16 | (73) |
Interest expense | (6,050) | (6,061) | (19) |
Depreciation and Amortization | 3,522 | 8,033 | 3,152 |
Capital Expenditures | 4,408 | 2,836 | 522 |
Total Assets | 103,345 | 63,243 | |
International [Member] | |||
Segment Reporting Information | |||
Revenues | 218,992 | 236,095 | 232,723 |
Income (Loss) Before Income Taxes | (6,025) | 504 | 5,160 |
Impairment of goodwill, intangible assets and long lived assets | 2,311 | 0 | 156 |
Interest Income | 46 | 44 | 81 |
Interest expense | 2,796 | 3,504 | 3,313 |
Depreciation and Amortization | 2,645 | 2,402 | 1,804 |
Capital Expenditures | 2,124 | 1,768 | 1,944 |
Total Assets | 177,213 | 191,513 | |
Construction [Member] | |||
Segment Reporting Information | |||
Revenues | 305,745 | 320,034 | 301,989 |
Income (Loss) Before Income Taxes | 186 | (2,290) | (4,400) |
Impairment of goodwill, intangible assets and long lived assets | 597 | 957 | 1,114 |
Interest Income | 135 | 217 | 234 |
Interest expense | 5,552 | 7,221 | 6,308 |
Depreciation and Amortization | 12,197 | 12,537 | 13,652 |
Capital Expenditures | 8,202 | 15,713 | 7,012 |
Total Assets | 185,534 | 275,645 | |
Operating Segments | |||
Segment Reporting Information | |||
Income (Loss) Before Income Taxes | 28,583 | 16,250 | 17,559 |
Interest Income | 253 | 315 | 399 |
Interest expense | 13,232 | 15,867 | 13,893 |
Depreciation and Amortization | 20,179 | 20,034 | 20,453 |
Capital Expenditures | 15,681 | 22,180 | 11,429 |
Total Assets | 712,444 | 912,100 | |
Operating Segments | Agriculture | |||
Segment Reporting Information | |||
Revenues | 886,485 | 749,042 | 726,793 |
Operating Segments | International [Member] | |||
Segment Reporting Information | |||
Revenues | 218,992 | 236,095 | 232,723 |
Operating Segments | Construction [Member] | |||
Segment Reporting Information | |||
Revenues | 305,745 | 320,034 | 301,989 |
All Countries, Excluding United States [Member] | |||
Segment Reporting Information | |||
Revenues | $ 219,000 | $ 236,100 | $ 232,700 |
Schedule II-Valuation and Qua_2
Schedule II-Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Changes in valuation and qualifying accounts and reserves | |||
Foreign Currency Translation Adjustment | $ 210 | ||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Business Acquired | 0 | $ 0 | $ 958 |
Valuation reserve deduction from receivables | |||
Changes in valuation and qualifying accounts and reserves | |||
Beginning Balance | 5,123 | 3,528 | 2,951 |
Additions Charged to Expenses | 498 | 2,497 | 835 |
Deductions for Write-offs, Net of Recoveries | (1,013) | (872) | (1,173) |
Foreign Currency Translation Adjustment | 115 | (30) | (43) |
Ending Balance | $ 4,933 | $ 5,123 | $ 3,528 |