Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Jan. 31, 2014 | Mar. 03, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Quanex Building Products CORP | ' |
Trading Symbol | 'NX | ' |
Entity Central Index Key | '0001423221 | ' |
Current Fiscal Year End Date | '--10-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Jan-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 37,487,907 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
Current assets: | ' | ' |
Cash and cash equivalents | $25,807,000 | $49,736,000 |
Accounts receivable, net of allowance of $775 and $561 | 72,459,000 | 98,833,000 |
Inventories, net (Note 3) | 74,498,000 | 58,316,000 |
Deferred income taxes | 24,769,000 | 22,786,000 |
Prepaid and other current assets | 7,352,000 | 6,612,000 |
Total current assets | 204,885,000 | 236,283,000 |
Property, plant and equipment, net of accumulated depreciation of $354,014 and $348,927 | 160,531,000 | 157,219,000 |
Deferred income taxes | 13,277,000 | 13,444,000 |
Goodwill (Note 4) | 71,838,000 | 71,866,000 |
Intangible assets, net (Note 4) | 76,969,000 | 78,962,000 |
Other assets | 13,543,000 | 14,041,000 |
Total assets | 541,043,000 | 571,815,000 |
Current liabilities: | ' | ' |
Accounts payable | 67,278,000 | 76,900,000 |
Accrued liabilities | 29,679,000 | 44,785,000 |
Current maturities of long-term debt (Note 5) | 187,000 | 183,000 |
Total current liabilities | 97,144,000 | 121,868,000 |
Long-term debt (Note 5) | 721,000 | 752,000 |
Deferred pension and postretirement benefits (Note 6) | 4,506,000 | 3,712,000 |
Liability for uncertain tax positions (Note 8) | 5,435,000 | 5,396,000 |
Non-current environmental reserves (Note 9) | 8,862,000 | 9,255,000 |
Other liabilities | 12,114,000 | 14,638,000 |
Total liabilities | 128,782,000 | 155,621,000 |
Commitments and contingencies (Note 9) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, no par value, shares authorized 1,000,000; issued and outstanding - none | 0 | 0 |
Common stock, $0.01 par value, shares authorized 125,000,000; issued 37,646,075 and 37,653,639 respectively | 376,000 | 377,000 |
Additional paid-in-capital | 247,479,000 | 247,642,000 |
Retained earnings | 172,059,000 | 177,456,000 |
Accumulated other comprehensive income (loss) | -2,209,000 | -2,400,000 |
Less treasury stock at cost, 386,418 and 488,385 shares, respectively | -5,444,000 | -6,881,000 |
Total stockholders' equity | 412,261,000 | 416,194,000 |
Total liabilities and stockholders' equity | $541,043,000 | $571,815,000 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for accounts receivable | $775 | $561 |
Accumulated depreciation of property, plant and equipment | $354,014 | $348,927 |
Preferred stock, no par value | $0 | $0 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 37,646,075 | 37,653,639 |
Treasury stock, shares | 386,418 | 488,385 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Income Statement [Abstract] | ' | ' |
Net sales | $202,362 | $185,713 |
Cost and expenses: | ' | ' |
Cost of sales (excluding depreciation and amortization) | 171,904 | 162,690 |
Selling, general and administrative | 24,767 | 27,051 |
Depreciation and amortization | 10,294 | 9,657 |
Asset impairment charges | 510 | 0 |
Operating income (loss) | -5,113 | -13,685 |
Non-operating income (expense): | ' | ' |
Interest expense | -158 | -139 |
Other, net | 96 | -91 |
Income (loss) before income taxes | -5,175 | -13,915 |
Income tax benefit (expense) | 1,275 | 5,797 |
Net income (loss) | ($3,900) | ($8,118) |
Basic earnings (loss) per share | ($0.11) | ($0.22) |
Diluted earnings (loss) per share | ($0.11) | ($0.22) |
Weighted-average common shares outstanding: | ' | ' |
Basic | 37,003 | 36,809 |
Diluted | 37,003 | 36,809 |
Cash dividends per share | $0.04 | $0.04 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net income (loss) | ($3,900) | ($8,118) |
Foreign currency translation adjustments (pretax) | 55 | 901 |
Foreign currency translation adjustments tax benefit | 14 | 125 |
Change in pension from net unamortized gain (loss) adjustment (pretax) | 122 | ' |
Other comprehensive income (loss), net of tax | 191 | 1,026 |
Comprehensive income (loss) | ($3,709) | ($7,092) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flow (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Operating activities: | ' | ' |
Net income (loss) | ($3,900) | ($8,118) |
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities: | ' | ' |
Depreciation and amortization | 10,294 | 9,657 |
Stock-based compensation | 1,090 | 1,709 |
Deferred income taxes | -1,885 | -6,499 |
Excess tax benefit from share-based compensation | -1 | -169 |
Asset impairment charges | 510 | 0 |
Other, net | 728 | 482 |
Changes in assets and liabilities, net of effects from acquisitions and dispositions: | ' | ' |
Decrease (increase) in accounts receivable | 26,654 | 10,862 |
Decrease (increase) in inventory | -15,998 | -13,417 |
Decrease (increase) in other current assets | -594 | -291 |
Increase (decrease) in accounts payable | -10,894 | -11,496 |
Increase (decrease) in accrued liabilities | -15,027 | -15,593 |
Increase (decrease) in income taxes | 26 | 487 |
Increase (decrease) in deferred pension and postretirement benefits | 915 | 862 |
Increase (decrease) in other long-term liabilities | -1,087 | 295 |
Other, net | -2,315 | 889 |
Cash provided by (used for) operating activities | -11,484 | -30,340 |
Investing activities: | ' | ' |
Acquisitions, net of cash acquired | -5,161 | -22,449 |
Capital expenditures | -6,748 | -11,500 |
Proceeds from property insurance claim | 400 | ' |
Proceeds from disposition of capital assets | 303 | 16 |
Cash used for investing activities | -11,206 | -33,933 |
Financing activities: | ' | ' |
Repayments of other long-term debt | -26 | -25 |
Common stock dividends paid | -1,490 | -1,482 |
Issuance of common stock | -331 | -508 |
Excess tax benefit from share-based compensation | 1 | 169 |
Debt issuance costs | ' | 1,070 |
Cash used for financing activities | -1,184 | -1,900 |
Effect of exchange rate changes on cash and cash equivalents | -55 | -524 |
Decrease in cash and cash equivalents | -23,929 | -66,697 |
Cash and cash equivalents at beginning of period | 49,736 | 71,255 |
Cash and cash equivalents at end of period | $25,807 | $4,558 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
In Thousands, unless otherwise specified | ||||||
Balance at Oct. 31, 2013 | $416,194 | $377 | $247,642 | $177,456 | ($2,400) | ($6,881) |
Net income (loss) | -3,900 | ' | ' | -3,900 | ' | ' |
Foreign currency translation adjustment (net of taxes of $14) | 69 | ' | ' | ' | 69 | ' |
Change in pension from net unamortized gain | 122 | ' | ' | ' | 122 | ' |
Common dividends ($0.04 per share) | -1,490 | ' | ' | -1,490 | ' | ' |
Stock-based compensation activity: | ' | ' | ' | ' | ' | ' |
Expense related to stock-based compensation | 1,090 | ' | 1,090 | ' | ' | ' |
Stock options exercised | 331 | ' | 27 | 0 | ' | 304 |
Tax benefit from share-based compensation | -19 | ' | -19 | ' | ' | ' |
Restricted stock awards granted | 0 | ' | -1,133 | ' | ' | 1,133 |
Other | -136 | -1 | -128 | -7 | 0 | ' |
Balance at Jan. 31, 2014 | $412,261 | $376 | $247,479 | $172,059 | ($2,209) | ($5,444) |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statement of Stockholders' Equity (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Statement of Stockholders' Equity [Abstract] | ' | ' |
Foreign currency translation adjustment, tax | $14 | $125 |
Common stock, dividends per share | $0.04 | $0.04 |
Nature_of_Operations_and_Basis
Nature of Operations and Basis of Presentation | 3 Months Ended | |||||||||||
Jan. 31, 2014 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||
Nature of Operations and Basis of Presentation | ' | |||||||||||
1. Nature of Operations and Basis of Presentation | ||||||||||||
Quanex Building Products Corporation is a leading component supplier of engineered materials and aluminum sheet products for original equipment manufacturers (OEMs) through two reportable business segments: (1) Engineered Products and (2) Aluminum Sheet Products. Quanex Building Products Corporation produces energy efficient window components that include flexible insulating glass spacers, extruded vinyl profiles, and thin film solar panel sealants, as well as window and door screens and precision-formed metal and wood products. Aluminum sheet products include high quality mill finished and coated aluminum sheet that is tailored to customers' specifications. Quanex Building Products Corporation serves a primary customer base in North America and also serves customers in international markets through operating plants in the United Kingdom and Germany, as well as through sales and marketing efforts in other countries. | ||||||||||||
Unless the context indicates otherwise, references to "Quanex", the "Company", "we", "us" and "our" refer to the consolidated business operations of Quanex Building Products Corporation and its subsidiaries. | ||||||||||||
The accompanying interim condensed consolidated financial statements include the accounts of Quanex Building Products Corporation. All intercompany accounts and transactions have been eliminated in consolidation. These financial statements have been prepared by us, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations. The consolidated balance sheet as of October 31, 2013 was derived from audited financial information, but does not include all disclosures required by U.S. GAAP. The accompanying financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto, included in our Annual Report on Form 10-K for the fiscal year ended October 31, 2013. In our opinion, the accompanying financial statements contain all adjustments (which consist of normal recurring adjustments, except as disclosed herein) necessary to fairly present our financial position, results of operations and cash flows for the interim periods. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year or for any future periods. | ||||||||||||
In preparing financial statements, we make informed judgments and estimates that affect the reported amounts of assets and liabilities as of the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. We review our estimates on an on-going basis, including those related to impairment of long lived assets and goodwill, contingencies and income taxes. Changes in facts and circumstances may result in revised estimates and actual results may differ from these estimates. | ||||||||||||
Discontinued Operations: | ||||||||||||
In February 2014, we signed a purchase agreement with Aleris International, Inc., to sell our interest in a limited liability company which holds the net assets of our Nichols Aluminum business, the sole operating segment included in our Aluminum Sheet Products reportable segment. The sale price is $110.0 million, subject to a working capital adjustment. We expect to record a gain on the transaction when the transaction closes. We received regulatory approval and expect to close this transaction on March 31, 2014. The full text of the purchase agreement was included as an exhibit to our Current Report on Form 8-K as filed with the SEC on February 10, 2014. | ||||||||||||
We evaluated the criteria prescribed by U.S. GAAP for recording a disposal group as held for sale and discontinued operations. This criteria was not met as of January 31, 2014. Therefore, we did not present this disposal group as a discontinued operation in the accompanying balance sheets and statements of income (loss). | ||||||||||||
The following table presents the unaudited pro forma effect of the sale of this business on the presentation of net sales, loss before income taxes and net loss for each of the periods presented in the accompanying condensed consolidated statements of income (loss). No pro forma effect of the gain on the sale of this business is included in the following table. | ||||||||||||
As Reported | Disposal Group | As Adjusted | ||||||||||
(In thousands) | ||||||||||||
Quarter Ended January 31, 2014 | ||||||||||||
Net sales | $ | 202,362 | $ | 79,491 | $ | 122,871 | ||||||
Loss before income taxes | $ | (5,175 | ) | $ | (4,251 | ) | $ | (924 | ) | |||
Net loss | $ | (3,900 | ) | $ | (2,689 | ) | $ | (1,211 | ) | |||
As Reported | Disposal Group | As Adjusted | ||||||||||
(In thousands) | ||||||||||||
Quarter Ended January 31, 2013 | ||||||||||||
Net sales | $ | 185,713 | $ | 84,603 | $ | 101,110 | ||||||
Loss before income taxes | $ | (13,915 | ) | $ | (4,229 | ) | $ | (9,686 | ) | |||
Net loss | $ | (8,118 | ) | $ | (2,676 | ) | $ | (5,442 | ) | |||
If the assets and liabilities associated with our Aluminum Sheet Products reportable segment had been reclassified as held for sale at January 31, 2014 and October 31, 2013, the effect of such presentation at an unaudited condensed consolidated balance sheet caption level is summarized in the following table. | ||||||||||||
As Reported | Disposal Group | As Adjusted | ||||||||||
(In thousands) | ||||||||||||
As of January 31, 2014 | ||||||||||||
Current assets: | ||||||||||||
Accounts receivable, net | $ | 72,459 | $ | (31,110 | ) | $ | 41,349 | |||||
Inventories, net | 74,498 | (22,423 | ) | 52,075 | ||||||||
Deferred income taxes | 24,769 | (2,102 | ) | 22,667 | ||||||||
Prepaid and other current assets | 7,352 | (1,616 | ) | 5,736 | ||||||||
Current assets held-for-sale | $ | — | $ | 57,251 | $ | 57,251 | ||||||
Long-term assets: | ||||||||||||
Property, plant and equipment, net | $ | 160,531 | $ | (50,342 | ) | $ | 110,189 | |||||
Deferred income taxes | 13,277 | (6,413 | ) | 6,864 | ||||||||
Goodwill | 71,838 | — | 71,838 | |||||||||
Intangible assets, net | 76,969 | — | 76,969 | |||||||||
Other assets | 13,543 | (8,179 | ) | 5,364 | ||||||||
Long-term assets held-for-sale | $ | — | $ | 64,934 | $ | 64,934 | ||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 67,278 | $ | (29,702 | ) | $ | 37,576 | |||||
Accrued liabilities | 29,679 | (9,231 | ) | 20,448 | ||||||||
Current maturities of long-term debt | 187 | (24 | ) | 163 | ||||||||
Current liabilities held-for-sale | $ | — | $ | 38,957 | $ | 38,957 | ||||||
Long-term liabilities: | ||||||||||||
Long-term debt | $ | 721 | $ | (35 | ) | $ | 686 | |||||
Deferred pension and postretirement benefits | 4,506 | (310 | ) | 4,196 | ||||||||
Liability for uncertain tax positions | 5,435 | — | 5,435 | |||||||||
Non-current environmental reserves | 8,862 | (8,862 | ) | — | ||||||||
Other liabilities | 12,114 | (1,018 | ) | 11,096 | ||||||||
Long-term liabilities held-for-sale | $ | — | $ | 10,225 | $ | 10,225 | ||||||
As Reported | Disposal Group | As Adjusted | ||||||||||
(In thousands) | ||||||||||||
As of October 31, 2013 | ||||||||||||
Current assets: | ||||||||||||
Accounts receivable, net | $ | 98,833 | $ | (40,166 | ) | $ | 58,667 | |||||
Inventories, net | 58,316 | (16,435 | ) | 41,881 | ||||||||
Deferred income taxes | 22,786 | (2,102 | ) | 20,684 | ||||||||
Prepaid and other current assets | 6,612 | (1,700 | ) | 4,912 | ||||||||
Current assets held for sale | $ | — | $ | 60,403 | $ | 60,403 | ||||||
Long-term assets: | ||||||||||||
Property, plant and equipment, net | $ | 157,219 | $ | (50,398 | ) | $ | 106,821 | |||||
Deferred income taxes | 13,444 | (6,413 | ) | 7,031 | ||||||||
Goodwill | 71,866 | — | 71,866 | |||||||||
Intangible assets, net | 78,962 | — | 78,962 | |||||||||
Other assets | 14,041 | (8,472 | ) | 5,569 | ||||||||
Long-term assets held for sale | $ | — | $ | 65,283 | $ | 65,283 | ||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 76,900 | $ | (39,483 | ) | $ | 37,417 | |||||
Accrued liabilities | 44,785 | (9,802 | ) | 34,983 | ||||||||
Current maturities of long-term debt | 183 | (22 | ) | 161 | ||||||||
Current liabilities held for sale | $ | — | $ | 49,307 | $ | 49,307 | ||||||
Long-term liabilities: | ||||||||||||
Long-term debt | $ | 752 | $ | (51 | ) | $ | 701 | |||||
Deferred pension and postretirement benefits | 3,712 | (234 | ) | 3,478 | ||||||||
Liability for uncertain tax positions | 5,396 | — | 5,396 | |||||||||
Non-current environmental reserves | 9,255 | (9,255 | ) | — | ||||||||
Other liabilities | 14,638 | (1,018 | ) | 13,620 | ||||||||
Long-term liabilities held for sale | $ | — | $ | 10,558 | $ | 10,558 | ||||||
Acquisitions
Acquisitions | 3 Months Ended | |||
Jan. 31, 2014 | ||||
Business Combinations [Abstract] | ' | |||
Acquisitions | ' | |||
2. Acquisitions | ||||
On December 31, 2013, we acquired certain vinyl extrusion assets of Atrium Windows and Doors, Inc. (Atrium) at a facility in Greenville, Texas, for $5.2 million in cash (Greenville). We accounted for this transaction as a business combination resulting in an insignificant gain on the purchase. We entered into a supply agreement with Atrium related to the products produced at Greenville. We believe this acquisition expands our vinyl extrusion capacity and positions us with a platform from which to better serve our customers in the southern United States. This business has been included in our operating results for the Engineered Products reportable segment since the date of acquisition. | ||||
The purchase price has been allocated to the fair value of the assets acquired and liabilities assumed, as indicated in the table below. This allocation is based on estimates and assumptions that are subject to change within the purchase price allocation period (generally one year from the acquisition date). | ||||
As of Date of | ||||
Opening Balance Sheet | ||||
(In thousands) | ||||
Net assets acquired: | ||||
Inventories | $ | 161 | ||
Prepaid and other current assets | 145 | |||
Property, plant and equipment | 4,695 | |||
Intangible assets | 290 | |||
Deferred income tax liability | (50 | ) | ||
Net assets acquired | $ | 5,241 | ||
Consideration: | ||||
Cash, net of cash and cash equivalents acquired | $ | 5,161 | ||
Gain recognized on bargain purchase | $ | 80 | ||
We used recognized valuation techniques to determine the fair value of the assets and liabilities, including the income approach for customer relationships, with a discount rate that reflects the risk of the expected future cash flows. The gain on bargain purchase of approximately $0.1 million is included in "Other, net" on our condensed consolidated statement of income (loss). | ||||
Pro forma results of operations were not presented because this acquisition was not deemed to be material to our results of operations for the three months ended January 31, 2014. | ||||
Alumco | ||||
On December 31, 2012, we acquired substantially all of the assets of Alumco, Inc. and its subsidiaries (Alumco), including its aluminum screen business, for $22.4 million in cash. The purchase agreement contains (1) a working capital clause that provides for an adjustment to the purchase price based on the working capital balance as of the acquisition date and (2) an earn-out clause that provides for the payment of an additional $0.5 million to Alumco contingent upon the achievement of certain financial targets. We received $0.4 million from the prior owner of Alumco pursuant to the working capital clause which reduced the consideration paid from $22.4 million to $22.1 million during the second quarter of 2013. We recorded contingent consideration of $0.3 million as the fair value of the earn-out included in the purchase price. As of October 31, 2013, we determined that the earn-out provision criteria would not be met and decreased expense by $0.3 million. | ||||
The purchase price has been allocated to the fair value of the assets acquired and liabilities assumed, as indicated in the table below. | ||||
As of Date of | ||||
Opening Balance Sheet | ||||
(In thousands) | ||||
Net assets acquired: | ||||
Accounts receivable | $ | 3,638 | ||
Inventories | 5,062 | |||
Prepaid and other current assets | 140 | |||
Property, plant and equipment | 4,682 | |||
Intangible assets | 8,939 | |||
Accounts payable | (2,066 | ) | ||
Accrued liabilities | (993 | ) | ||
Current maturities of long-term debt | (14 | ) | ||
Long-term debt | (77 | ) | ||
Goodwill | 2,785 | |||
Net assets acquired | $ | 22,096 | ||
Consideration: | ||||
Cash, net of cash and cash equivalents acquired | $ | 22,096 | ||
We used recognized valuation techniques to determine the fair value of the assets and liabilities, including the income approach for customer relationships, with a discount rate that reflects the risk of the expected future cash flows. The goodwill balance, which is deductible for tax purposes, was allocated entirely to the Engineered Products reportable segment. We expect that this acquisition expands our product portfolio and geographic distribution capabilities particularly in the vinyl window segment in the screen market. | ||||
The Alumco acquisition was not deemed material to our results of operations for the three months ended January 31, 2013. Therefore, we have not presented pro forma results of operations. |
Inventories
Inventories | 3 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
3. Inventories | ||||||||
Inventories consisted of the following at January 31, 2014 and October 31, 2013: | ||||||||
January 31, | October 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Raw materials | $ | 37,726 | $ | 32,215 | ||||
Finished goods and work in process | 45,826 | 35,657 | ||||||
Supplies and other | 2,727 | 2,269 | ||||||
Total | 86,279 | 70,141 | ||||||
Less: Inventory reserves | 11,781 | 11,825 | ||||||
Inventories, net | $ | 74,498 | $ | 58,316 | ||||
Fixed costs related to excess manufacturing capacity, if any, have been expensed in the period they were incurred and, therefore, are not capitalized into inventory. Our inventories at January 31, 2014 and October 31, 2013 were valued using the following costing methods: | ||||||||
January 31, | October 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
LIFO | $ | 24,868 | $ | 17,211 | ||||
FIFO | 49,630 | 41,105 | ||||||
Total | $ | 74,498 | $ | 58,316 | ||||
During interim periods, we estimate a LIFO reserve based on our expectations of year-end inventory levels and costs. If our calculations indicate that an adjustment at year-end will be required, we record a proportionate share of this amount during the period. At year-end, we calculate the actual LIFO reserve and record an adjustment for the difference between the annual calculation and any estimates recognized during the interim periods. Because the interim projections are subject to many factors beyond our control, the results could differ significantly from the year-end LIFO calculation. We recorded no interim LIFO allocation for the three-month periods ended January 31, 2014 and 2013. | ||||||||
For inventories valued under the LIFO method, replacement cost exceeded the LIFO value by approximately $8.1 million as of January 31, 2014 and October 31, 2013. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Goodwill and Acquired Intangible Assets | ' | |||||||||||||||
4. Goodwill and Intangible Assets | ||||||||||||||||
Goodwill | ||||||||||||||||
Goodwill was attributed entirely to our Engineered Products reportable segment. The change in the carrying amount of goodwill for the three months ended January 31, 2014 was as follows: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
31-Jan-14 | ||||||||||||||||
(In thousands) | ||||||||||||||||
Beginning balance as of November 1, 2013 | $ | 71,866 | ||||||||||||||
Acquisition | — | |||||||||||||||
Foreign currency translation adjustment | (28 | ) | ||||||||||||||
Balance as of the end of the period | $ | 71,838 | ||||||||||||||
Identifiable Intangible Assets | ||||||||||||||||
Amortizable intangible assets consisted of the following as of January 31, 2014 and October 31, 2013: | ||||||||||||||||
31-Jan-14 | 31-Oct-13 | |||||||||||||||
Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||
(In thousands) | ||||||||||||||||
Customer relationships | $ | 53,074 | $ | 16,630 | $ | 52,793 | $ | 15,630 | ||||||||
Trademarks and trade names | 44,586 | 18,239 | 44,576 | 17,498 | ||||||||||||
Patents and other technology | 25,402 | 11,804 | 25,390 | 11,319 | ||||||||||||
Other | 1,392 | 812 | 1,392 | 742 | ||||||||||||
Total | $ | 124,454 | $ | 47,485 | $ | 124,151 | $ | 45,189 | ||||||||
Included in intangible assets as of January 31, 2014 were customer relationships of $0.3 million associated with the Greenville acquisition. These assets have estimated useful lives of 5 years. See Note 2, "Acquisitions", included herewith. | ||||||||||||||||
The aggregate amortization expense related to identifiable intangible assets was $2.3 million and $2.2 million, for the three months ended January 31, 2014, and 2013, respectively. | ||||||||||||||||
Estimated remaining amortization expense, assuming current intangible balances and no new acquisitions, for each of the fiscal years ending October 31, was as follows (in thousands): | ||||||||||||||||
Estimated | ||||||||||||||||
Amortization Expense | ||||||||||||||||
2014 (remaining 9 months) | $ | 6,769 | ||||||||||||||
2015 | 8,928 | |||||||||||||||
2016 | 8,657 | |||||||||||||||
2017 | 8,551 | |||||||||||||||
2018 | 8,303 | |||||||||||||||
Thereafter | 35,761 | |||||||||||||||
Total | $ | 76,969 | ||||||||||||||
LongTerm_Debt_and_Capital_Leas
Long-Term Debt and Capital Lease Obligations | 3 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt and Capital Lease Obligations | ' | |||||||
5. Long-Term Debt and Capital Lease Obligations | ||||||||
Long-term debt consisted of the following at January 31, 2014 and October 31, 2013: | ||||||||
January 31, | October 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Revolving Credit Facility | $ | — | $ | — | ||||
City of Richmond, Kentucky Industrial Building Revenue Bonds | 700 | 700 | ||||||
Capital lease obligations and other | 208 | 235 | ||||||
Total debt | 908 | 935 | ||||||
Less: Current maturities | 187 | 183 | ||||||
Long-term debt | $ | 721 | $ | 752 | ||||
On January 28, 2013, we entered into a Senior Unsecured Revolving Credit Facility (the Credit Facility) that has a five-year term and permits aggregate borrowings at any time of up to $150 million, with a letter of credit sub-facility, a swing line sub-facility and a multi-currency sub-facility. Borrowings denominated in U.S. dollars bear interest at a spread above the London Interbank Borrowing Rate (LIBOR) or a base rate derived from the prime rate. Foreign denominated borrowings bear interest at a spread above the LIBOR applicable to such currencies. Subject to customary conditions, we may request that the aggregate commitments under the Credit Facility be increased by up to $100 million, with total commitments not to exceed $250 million. The Credit Facility replaces our previous senior unsecured revolving credit facility (the Retired Facility) that was scheduled to expire on April 23, 2013. | ||||||||
The Credit Facility requires us to comply with certain financial covenants, the terms of which are defined therein. Specifically, we must not permit, on a quarterly basis, our ratio of consolidated EBITDA to consolidated interest expense as defined (Minimum Interest Coverage Ratio), to fall below 3.00:1 or our ratio of consolidated funded debt to consolidated EBITDA, as defined (Maximum Consolidated Leverage Ratio), to exceed 3.25:1. The Maximum Consolidated Leverage Ratio is the ratio of consolidated EBITDA to consolidated interest expense, in each case for the previous four consecutive fiscal quarters. EBITDA is defined by the indenture to include pro forma EBITDA of acquisitions and to exclude certain items such as goodwill and intangible asset impairments and certain other non-cash charges and non-recurring items. Subject to our compliance with the covenant requirements, the amount available under the Credit Facility is a function of: (1) our trailing twelve-month EBITDA; (2) the Minimum Interest Coverage Ratio and Maximum Consolidated Leverage Ratio allowed under the Credit Facility; and (3) the aggregate amount of our outstanding debt and letters of credit. As of January 31, 2014, we were in compliance with the financial covenants set forth in the Credit Facility. | ||||||||
As of January 31, 2014, the amount available to us for use under the Credit Facility was limited to $142.8 million and we had outstanding letters of credit of $6.3 million. For the three-month period ended January 31, 2014, we did not borrow any amounts under the Credit Facility, and thus had no outstanding borrowings at January 31, 2014. Our current borrowing rate under the Credit Facility was 3.25% and 1.20% for the swing-line sub facility and the revolver, respectively, at January 31, 2014. As of October 31, 2013, the amount available to us for use under the Credit Facility was limited to $139.0 million and we had outstanding letters of credit of $6.2 million. Our borrowing rate under the Credit Facility was 3.25% and 1.20% for the swing-line sub facility and the revolver, respectively, at October 31, 2013. | ||||||||
Prior to January 28, 2013, we maintained a $270.0 million senior unsecured revolving credit facility (the Retired Facility) which had been executed on April 23, 2008 and was scheduled to mature on April 23, 2013. The Retired Facility provided for up to $50.0 million of standby letters of credit, limited based on availability, as defined. Amounts borrowed under the facility were to bear interest at a spread above LIBOR based on a combined leverage and ratings grid. In addition, the Retired Facility contained restrictive debt covenants, as defined in the indenture, and contained certain limits on additional indebtedness, asset or equity sales and acquisitions. During the period from November 1, 2012 through January 28, 2013, we were in compliance with our debt covenants and did not borrow funds pursuant to the Retired Facility. |
Retirement_Plans
Retirement Plans | 3 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||
Retirement Plans | ' | |||||||
6. Retirement Plans | ||||||||
Pension Plan | ||||||||
Our non-contributory, single employer defined benefit pension plan covers substantially all non-union employees. The net periodic pension cost for this plan for the three-month periods ended January 31, 2014 and 2013 was as follows: | ||||||||
Three Months Ended January 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Service cost | $ | 920 | $ | 907 | ||||
Interest cost | 263 | 194 | ||||||
Expected return on plan assets | (423 | ) | (365 | ) | ||||
Amortization of net loss | — | 62 | ||||||
Net periodic benefit cost | $ | 760 | $ | 798 | ||||
In February 2014, we contributed $1.1 million to fund our plan and currently we do not expect to make additional contributions during the remainder of our current fiscal year. | ||||||||
Deferred Compensation Plan | ||||||||
We also have a non-qualified deferred compensation plan covering members of the Board of Directors and certain key employees. As of January 31, 2014 and October 31, 2013, our liability under the deferred compensation plan was approximately $3.5 million and $6.7 million, respectively. In January 2014, we paid a vested balance of $3.3 million to our former Chairman, President and Chief Executive Officer, Mr. David Petratis. |
Warranty_Obligations
Warranty Obligations | 3 Months Ended | |||
Jan. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Warranty Obligations | ' | |||
7. Warranty Obligations | ||||
We accrue warranty obligations as we recognize revenue associated with certain products. We make provisions for our warranty obligations based upon historical experience of costs incurred for such obligations adjusted, as necessary, for current conditions and factors. During January 2014, we reduced our warranty accrual by $2.8 million for certain products associated with our insulating glass business that were discontinued in a prior year and for which claim activity for a particular customer had ceased. There are significant uncertainties and judgments involved in estimating our warranty obligations, including changing product designs, differences in customer installation processes and future claims experience which may vary from historical claims experience. Therefore, the ultimate amount we incur as warranty costs in the near and long-term may not be consistent with our current estimate. | ||||
A reconciliation of the activity related to our accrued warranty, including both the current and long-term portions (reported in accrued liabilities and other liabilities, respectively, on the accompanying condensed consolidated balance sheet) follows: | ||||
Three Months Ended | ||||
January 31, 2014 | ||||
(In thousands) | ||||
Beginning balance as of November 1, 2013 | $ | 3,684 | ||
Provision for warranty expense | 349 | |||
Change in accrual for pre-existing warranties | (3,071 | ) | ||
Warranty costs paid | (242 | ) | ||
Total accrued warranty as of the end of the period | 720 | |||
Less: Current portion of accrued warranty | 389 | |||
Long-term portion of accrued warranty | $ | 331 | ||
Income_Taxes
Income Taxes | 3 Months Ended |
Jan. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
8. Income Taxes | |
To determine our income tax expense for interim periods, consistent with accounting standards, we apply the estimated annual effective income tax rate to year-to-date results. The rate is based on the annualized forecast of pretax income, permanent book versus tax differences and estimated tax credits. Our estimated annual effective tax rates for the three months ended January 31, 2014 and 2013, were a benefit of 24.6% and 41.7%, respectively. The decrease in the first quarter 2014 benefit is attributable to the change in the tax status of our facility in the United Kingdom (UK). On November 1, 2013, the assets of our UK branch were contributed to a newly formed wholly-owned UK subsidiary. This change resulted in a U.S. taxable charge and was booked as a discrete item in the quarter. We intend to indefinitely reinvest any future undistributed earnings of the new subsidiary. | |
We evaluate the likelihood of realization of our deferred tax assets by considering both positive and negative evidence. We believe there is no need for a valuation allowance of the federal net operating losses. However, if we record three years of cumulative losses, after adjusting for non-recurring items, we may be required to increase our valuation allowance to the full extent of our net deferred tax assets of $45.9 million. We will continue to evaluate our position throughout fiscal 2014. We maintain a valuation allowance for certain state net operating losses which totaled $2.5 million at January 31, 2014. | |
Our unrecognized tax benefit (UTB) is related to the 2008 spin-off of Quanex from its former parent and certain state tax items regarding the interpretation of tax laws and regulations. The total UTB as of January 31, 2014 is $13.2 million. Of this, $5.4 million is recorded as a liability for uncertain tax positions and $7.8 million is recorded in non-current deferred income taxes. The UTB includes $12.4 million for which the recognition of such items would not affect the annual effective tax rate. | |
Judgment is required in assessing the future tax consequences of events that have been recognized in our financial statements or tax returns. The final outcome of the future tax consequences of legal proceedings, if any, as well as the outcome of competent authority proceedings, changes in regulatory tax laws, or interpretation of those tax laws could impact our financial statements. We are subject to the effect of these matters occurring in various jurisdictions. We believe it is reasonably possible that a decrease of approximately $2.0 million in the UTB may be recognized within the next twelve months as a result of the lapse in the statute of limitations. | |
In February 2014, we were notified by the Internal Revenue Service that our federal income tax returns for the tax years ended October 31, 2011 and 2012 will be examined during 2014. |
Contingencies
Contingencies | 3 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Contingencies | ' | |||||||
9. Contingencies | ||||||||
Environmental | ||||||||
We are subject to extensive laws and regulations concerning the discharge of materials into the environment and the remediation of chemical contamination. To satisfy such requirements, we must invest capital and make other expenditures on an on-going basis. We accrue for remediation obligations and adjust our accruals as information becomes available and circumstances develop. Those estimates may change substantially depending on various factors, including the nature and extent of contamination, appropriate remediation technologies, and regulatory approvals. When we accrue for environmental remediation liabilities, costs of future expenditures are not discounted to their present value, unless the amount and timing of the expenditures are fixed or reliably determinable. When environmental laws are deemed to impose joint and several liability for the costs of responding to contamination, information indicates that it is probable we have incurred a loss, and such amount is estimable, we accrue our allocable share of liability taking into account the number of parties participating, the ability of such counter-parties to pay their share of the costs, the volume and nature of the wastes involved, the nature of anticipated response actions, and the nature of our alleged connection to the contamination. The cost of environmental matters has not had a material adverse effect on our operations or financial condition in the past, and we are not currently aware of any conditions that, we believe, are likely to have a material adverse effect on our operations, financial condition or cash flows. | ||||||||
The table below indicates the total environmental reserve and corresponding recoverable balances as well as where these balances are reported in the accompanying condensed consolidated balance sheets as of January 31, 2014 and October 31, 2013: | ||||||||
January 31, | October 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Accrued liabilities | $ | 1,550 | $ | 1,550 | ||||
Non-current environmental reserves | 8,862 | 9,255 | ||||||
Total environmental reserves | $ | 10,412 | $ | 10,805 | ||||
Accounts receivable | $ | 1,257 | $ | 903 | ||||
Other current assets | 1,395 | 1,395 | ||||||
Other assets (non-current) | 7,976 | 8,330 | ||||||
Total receivable for recovery of remediation costs | $ | 10,628 | $ | 10,628 | ||||
Currently, our on-going remediation activities are associated with one of our subsidiaries, Nichols Aluminum-Alabama, LLC (NAA). NAA operates a plant in Decatur, Alabama that is subject to an Alabama Hazardous Wastes Management and Minimization Act Post-Closure Permit. Among other things, the permit requires NAA to remediate, as directed by the state, historical environmental releases of wastes and waste constituents. Consistent with the permit, NAA has undertaken various studies of site conditions and, during the first quarter 2006, started a phased program to treat in-place free product petroleum that had been released underneath the plant. During the second quarter 2010, NAA submitted to the state the first component of its proposed workplan for implementing a site-wide remedy. The full workplan was submitted to the state during the third quarter 2010, revised during the second quarter 2011 to reflect both additional sampling data and responses to state comments, and revised again in the fourth quarter 2011 in response to another round of state comments. In September 2013, the state approved NAA’s cleanup plan and incorporated it into a revised Post-Closure Permit. Based on the cleanup activities set forth in that Permit, and current information about site conditions, our remediation reserve at NAA’s Decatur plant is $10.4 million as of January 31, 2014. Approximately $0.6 million of the January 31, 2014 reserve represents administrative costs; the balance of $9.8 million represents estimated costs for investigation, studies, cleanup, and treatment. The reserve has not been discounted. NAA was acquired through a stock purchase in which the sellers agreed to indemnify us and NAA for identified environmental matters related to the business and based on conditions initially created or events initially occurring prior to the acquisition. Environmental conditions are presumed to relate to the period prior to the acquisition unless proven to relate to releases occurring entirely after closing. The limit on indemnification is $21.5 million excluding legal fees. While our current estimates indicate we will not reach this limit, changing circumstances could result in additional costs or expenses that are not foreseen at this time. In accordance with the indemnification, the indemnitors paid the first $1.5 million of response costs and have been paying 90% of on-going costs. Based on our experience to date, the estimated cleanup costs going forward, and costs incurred to date as of January 31, 2014, we expect to recover from the sellers’ shareholders an additional $10.6 million which has not been discounted. | ||||||||
Our final remediation costs and the timing of those expenditures will depend upon such factors as the nature and extent of contamination, the cleanup technologies employed, the effectiveness of the cleanup measures that are employed, and regulatory concurrences. While actual remediation costs, therefore, may be more or less than amounts accrued, we believe that we have established adequate reserves for all probable and reasonably estimable remediation liabilities. It is not possible at this point to reasonably estimate the amount of any obligation for remediation in excess of current accruals because of uncertainties as to the extent of environmental impact, cleanup technologies, and concurrence of governmental authorities. Currently, we expect the accrued remediation reserve to be paid through fiscal year 2035, although some of the same factors discussed earlier could accelerate or extend the timing. | ||||||||
As discussed in Note 1, "Nature of Operations and Basis of Presentation - Discontinued Operations", we signed a purchase agreement in February 2014 to sell our Aluminum Sheet Products business, of which NAA is a component business unit. | ||||||||
Fire Loss | ||||||||
In November 2013, the cold mill at NAA was damaged due to fire. There were no employee injuries. However, we sustained losses to the building, the cold mill and other equipment from the fire, smoke and water damage. Our current estimate of losses incurred including business interruption costs is $7.0 million. Of this amount, we expect to recover the full value, excluding our deductible of $0.5 million, from our insurance provider. In December 2013, we received a portion of the property insurance claim in the amount of $0.4 million from our insurance provider to recover these losses. We have also recorded an asset impairment charge of $0.5 million to write-off the net book value associated with the damaged assets in the accompanying condensed consolidated statement of income (loss). Other than the cold mill, the equipment at the facility is currently operating while repairs are underway. | ||||||||
Other | ||||||||
From time to time, we, along with our subsidiaries, are involved in various litigation matters arising in the ordinary course of our business. Although the ultimate resolution and impact of such litigation is not presently determinable, we believe that the eventual outcome of such litigation will not have a material adverse effect on our overall financial condition, results of operations or cash flows. |
Derivative_Instruments
Derivative Instruments | 3 Months Ended | ||||||||||||||
Jan. 31, 2014 | |||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||
Derivative Instruments | ' | ||||||||||||||
10. Derivative Instruments | |||||||||||||||
Our derivative activities are subject to the management, direction, and control of the Chief Financial Officer and Chief Executive Officer. Certain transactions in excess of specified levels require further approval from the Board of Directors. | |||||||||||||||
The nature of our business activities requires the management of various financial and market risks, including those related to changes in foreign currency exchange rates and aluminum scrap prices. We use foreign currency forwards and options and aluminum forward and swap contracts to mitigate or eliminate certain of those risks. Specifically, the foreign currency contracts are used to offset fluctuations in the value of accounts receivable and payable balances that are denominated in currencies other than the U.S. dollar, including the Euro, British Pound and Canadian Dollar. We use aluminum contracts to minimize the price risk related to customer sales contracts. Historically, we have entered into firm price raw material purchase commitments (which are designated as "normal purchases" under ASC topic 815 "Derivatives and Hedging" (ASC 815)) as well as certain forward purchase and sale contracts and a swap contract with the commodity price based on published amounts from the London Metal Exchange (LME). Our risk management policy, as it relates to these LME contracts, is to enter into contracts as needed so that raw material purchase levels, including both fixed price purchase commitments as well as LME contracts, match our needs to meet the committed sales orders. Currently, we do not enter into derivative transactions for speculative or trading purposes. We are exposed to credit loss in the event of nonperformance by the counterparties to our derivative transactions. We attempt to mitigate this risk by monitoring the creditworthiness of our counterparties and limiting our exposure to individual counterparties. In addition, we have established master netting agreements in certain cases to facilitate the settlement of gains and losses on specific derivative contracts. | |||||||||||||||
We have not designated any of our derivative contracts as hedges for accounting purposes. Therefore, changes in the fair value of these contracts and the realized gains and losses are recorded in the condensed consolidated statements of income (loss) for the three months ended January 31, 2014 and 2013 as follows: | |||||||||||||||
Three Months Ended January 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||
Derivatives Not Designated as Hedging Instruments: | Location of Gain or (Loss): | (In thousands) | |||||||||||||
Aluminum derivatives | Cost of sales | $ | (115 | ) | $ | 70 | |||||||||
Foreign currency derivatives | Other, net | $ | 114 | $ | (708 | ) | |||||||||
The fair values of our outstanding derivative contracts as of January 31, 2014 and October 31, 2013 are summarized in the following table (in thousands). We have chosen not to offset any of our derivative instruments in accordance with the provisions of ASC 815. Therefore, the assets and liabilities below are presented on a gross basis on our accompanying condensed consolidated balance sheets. | |||||||||||||||
January 31, 2014 | October 31, 2013 | ||||||||||||||
Prepaid and other current assets: | |||||||||||||||
Aluminum derivatives | $ | — | $ | 50 | |||||||||||
Foreign currency derivatives | 104 | 164 | |||||||||||||
Other assets: | |||||||||||||||
Aluminum derivatives | — | 8 | |||||||||||||
Accrued liabilities: | |||||||||||||||
Aluminum derivatives | 163 | 77 | |||||||||||||
Foreign currency derivatives | — | 39 | |||||||||||||
The aluminum derivatives and foreign currency derivatives are each subject to master netting agreements. | |||||||||||||||
The following table summarizes the notional amounts and fair value of outstanding derivative contracts at January 31, 2014 and October 31, 2013 (in thousands): | |||||||||||||||
Notional as indicated | Fair Value in $ | ||||||||||||||
January 31, 2014 | October 31, 2013 | January 31, 2014 | October 31, 2013 | ||||||||||||
Aluminum derivatives: | |||||||||||||||
Aluminum forward purchase contracts | LBS | 2,480 | 3,142 | $ | (163 | ) | $ | 45 | |||||||
Aluminum swap contracts | LBS | — | 187 | — | (64 | ) | |||||||||
Foreign currency derivatives: | |||||||||||||||
Sell EUR, buy USD | EUR | 5,054 | 7,258 | 102 | 150 | ||||||||||
Sell CAD, buy USD | CAD | 254 | 615 | 1 | (2 | ) | |||||||||
Sell GBP, Buy USD | GBP | 216 | — | 1 | — | ||||||||||
Buy EUR, sell GBP | EUR | 21 | 967 | — | (12 | ) | |||||||||
Buy GBP, sell USD | GBP | — | 2,435 | — | (25 | ) | |||||||||
Sell EUR, buy GBP | EUR | — | 880 | $ | — | $ | 14 | ||||||||
For the classification in the fair value hierarchy, see Note 11, "Fair Value Measurement of Assets and Liabilities", included herewith. |
Fair_Value_Measurement_of_Asse
Fair Value Measurement of Assets and Liabilities | 3 Months Ended | |||||||||||||||||||||||||||||||
Jan. 31, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Fair Value Measurement of Assets and Liabilities | ' | |||||||||||||||||||||||||||||||
11. Fair Value Measurement of Assets and Liabilities | ||||||||||||||||||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to Level 1 and the lowest priority to Level 3. The three levels of the fair value hierarchy are described below: | ||||||||||||||||||||||||||||||||
• | Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |||||||||||||||||||||||||||||||
• | Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates) and inputs that are derived principally from or corroborated by observable market data by correlation or other means. | |||||||||||||||||||||||||||||||
• | Level 3 - Inputs that are both significant to the fair value measurement and unobservable. | |||||||||||||||||||||||||||||||
The following table summarizes the assets and liabilities measured on a recurring basis based on the fair value hierarchy (in thousands): | ||||||||||||||||||||||||||||||||
January 31, 2014 | October 31, 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Investments in money market fund | $ | 24,614 | $ | — | $ | — | $ | 24,614 | $ | 42,639 | $ | — | $ | — | $ | 42,639 | ||||||||||||||||
Aluminum derivatives | — | — | — | — | — | 58 | — | 58 | ||||||||||||||||||||||||
Foreign currency derivatives | — | 104 | — | 104 | — | 164 | — | 164 | ||||||||||||||||||||||||
Total assets | $ | 24,614 | $ | 104 | $ | — | $ | 24,718 | $ | 42,639 | $ | 222 | $ | — | $ | 42,861 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Aluminum derivatives | $ | — | $ | (163 | ) | $ | — | $ | (163 | ) | $ | — | $ | (77 | ) | $ | — | $ | (77 | ) | ||||||||||||
Foreign currency derivatives | — | — | — | — | — | (39 | ) | — | (39 | ) | ||||||||||||||||||||||
Total liabilities | $ | — | $ | (163 | ) | $ | — | $ | (163 | ) | $ | — | $ | (116 | ) | $ | — | $ | (116 | ) | ||||||||||||
Net assets (liabilities) | $ | 24,614 | $ | (59 | ) | $ | — | $ | 24,555 | $ | 42,639 | $ | 106 | $ | — | $ | 42,745 | |||||||||||||||
We hold investments in money market funds and derivative contracts that are measured at fair value on a recurring basis. The investments in money market funds are measured at fair value based on active market quotations and are therefore classified as Level 1. All of our derivative contracts are valued using quoted market prices from brokers or exchanges and are classified within Level 2 of the fair value hierarchy. We have classified our investments in money market funds as cash and cash equivalents in the accompanying condensed consolidated balance sheets. | ||||||||||||||||||||||||||||||||
As of January 31, 2014 and October 31, 2013, we had approximately $3.4 million and $3.7 million, respectively, of certain property, plant and equipment that was recorded at fair value on a non-recurring basis and classified as Level 3. The fair value was based on broker opinions. The decrease in value of $0.3 million from October 31, 2013 to January 31, 2014 was due to an asset sale. | ||||||||||||||||||||||||||||||||
Carrying amounts reported on the balance sheet for cash, cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturity of these instruments. Our outstanding debt was variable rate debt that re-prices frequently, thereby limiting our exposure to significant change in interest rate risk. As a result, the fair value of our debt instruments approximates carrying value at January 31, 2014 and October 31, 2013 (Level 3 measurement). |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||
Stock-Based Compensation | ' | ||||||||||||
12. Stock-Based Compensation | |||||||||||||
We have established and maintain an Omnibus Incentive Plan (2008 Plan) that provides for the granting of restricted stock awards, stock options, restricted stock units, performance share awards and other stock-based and cash-based awards. The 2008 Plan is administered by the Compensation and Management Development Committee of the Board of Directors. | |||||||||||||
Restricted Stock Awards | |||||||||||||
Restricted stock awards are granted to key employees and officers annually, and typically cliff vest over a three-year period with service and continued employment as the only vesting criteria. The recipient of the restricted stock awards is entitled to all of the rights of a shareholder, except that the awards are nontransferable during the vesting period. The fair value of the restricted stock award is established on the grant date and then expensed over the vesting period resulting in an increase in additional paid-in-capital. Shares are generally issued from treasury stock at the time of grant. | |||||||||||||
A summary of non-vested restricted stock awards activity during the three months ended January 31, 2014 is presented below: | |||||||||||||
Restricted Stock Awards | Weighted Average | ||||||||||||
Grant Date Fair Value per Share | |||||||||||||
Non-vested at October 31, 2013 | 183,400 | $ | 17.46 | ||||||||||
Granted | 80,400 | 17.63 | |||||||||||
Vested | (25,700 | ) | 16.9 | ||||||||||
Non-vested at January 31, 2014 | 238,100 | $ | 17.58 | ||||||||||
The total weighted average grant-date fair value of restricted stock awards that vested during the three months ended January 31, 2014 and 2013 was $0.4 million and $1.1 million, respectively. As of January 31, 2014, total unrecognized compensation cost related to unamortized restricted stock awards was $3.0 million. We expect to recognize this expense over the remaining weighted average period of 2.4 years. | |||||||||||||
Stock Options | |||||||||||||
Stock options are awarded to key employees, officers and non-employee directors. Director stock options vest immediately while employee and officer stock options typically vest ratably over a three-year period with service and continued employment as the vesting conditions. Our stock options may be exercised up to a maximum of ten years from the date of grant. The fair value of the stock options is determined on the grant date and expensed over the vesting period resulting in an increase in additional paid-in-capital. | |||||||||||||
We use a Black-Scholes pricing model to estimate the fair value of stock options. A description of the methodology for the valuation assumptions was disclosed in our Annual Report on Form 10-K for the fiscal year ended October 31, 2013. | |||||||||||||
The following table provides a summary of assumptions used to estimate the fair value of our stock options issued during the three-month periods ended January 31, 2014 and 2013. | |||||||||||||
Three Months Ended January 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Weighted-average expected volatility | 55.70% | 54.00% | |||||||||||
Weighted-average expected term (in years) | 5.9 | 5 | |||||||||||
Risk-free interest rate | 1.80% | 0.60% | |||||||||||
Expected dividend yield over expected term | 1.00% | 1.00% | |||||||||||
Weighted average grant date fair value | $8.52 | $8.98 | |||||||||||
The following table summarizes our stock option activity for the three months ended January 31, 2014: | |||||||||||||
Stock Options | Weighted Average | Weighted Average | Aggregate | ||||||||||
Exercise Price | Remaining Contractual | Intrinsic | |||||||||||
Term (in years) | Value (000s) | ||||||||||||
Outstanding at October 31, 2013 | 2,875,276 | $ | 15.64 | ||||||||||
Granted | 157,300 | 17.64 | |||||||||||
Exercised | (21,567 | ) | 15.34 | ||||||||||
Forfeited/Expired | (24,171 | ) | 17.36 | ||||||||||
Outstanding at January 31, 2014 | 2,986,838 | $ | 15.74 | 6.9 | $ | 10,570 | |||||||
Vested or expected to vest at January 31, 2014 | 2,920,273 | $ | 15.66 | 6.8 | $ | 10,502 | |||||||
Exercisable at January 31, 2014 | 2,157,297 | $ | 14.8 | 6 | $ | 9,341 | |||||||
Intrinsic value is the amount by which the market price of the common stock on the date of exercise exceeds the exercise price of the stock option. The total intrinsic value of stock options exercised during the three months ended January 31, 2014 and 2013, was $0.1 million and $0.3 million, respectively. The total fair value of stock options vested during the three months ended January 31, 2014 and 2013, was $2.8 million and $2.5 million, respectively. As of January 31, 2014, total unrecognized compensation cost related to stock options was $4.1 million. We expect to recognize this expense over the remaining weighted average period of 2.1 years. | |||||||||||||
Restricted Stock Units | |||||||||||||
Restricted stock units may be awarded to key employees and officers from time to time, and annually to non-employee directors. The director restricted stock units vest immediately, whereas restricted stock units awarded to employees and officers typically cliff vest after a three-year period with service and continued employment as the vesting conditions. Restricted stock units are not considered outstanding shares and do not have voting rights, although the holder does receive a cash payment equivalent to the dividend paid, on a one-for-one basis, on our outstanding common shares. Once the vesting criteria is met, each restricted stock unit is payable to the holder in cash based on the market value of one share of our common stock. Accordingly, we record a liability for the restricted stock units on our balance sheet and recognize any changes in the market value during each reporting period as compensation expense. | |||||||||||||
The following table summarizes non-vested restricted stock unit activity during the three months ended January 31, 2014: | |||||||||||||
Restricted Stock Units | Weighted Average | ||||||||||||
Grant Date Fair Value per Share | |||||||||||||
Non-vested at October 31, 2013 | 101,000 | $ | 15.62 | ||||||||||
Granted | 5,700 | 17.63 | |||||||||||
Non-vested at January 31, 2014 | 106,700 | $ | 15.73 | ||||||||||
There was no cash settlement of restricted stock units during the three-month periods ended January 31, 2014 and 2013. | |||||||||||||
Performance Share Awards | |||||||||||||
Historically, we have granted performance units to key employees and officers annually. These awards cliff vest after a three-year period with service and performance measures such as relative total shareholder return and earnings per share growth as vesting conditions. These awards were treated as a liability and marked to market based upon our assessment of the achievement of the performance measures, with the assistance of third-party compensation consultants. | |||||||||||||
For the annual grant which occurred in December 2013, we granted performance shares rather than performance units. These performance share awards have the same performance measures (relative total shareholder return and earnings per share growth). However, the number of shares earned is variable depending on the metrics achieved, and the settlement method is 50% in cash and 50% in our common stock. | |||||||||||||
To account for this award, we have bi-furcated the portion subject to a market condition (relative total shareholder return) and the portion subject to an internal performance measure (earnings per share growth). We have further bi-furcated these awards based on the settlement method, as the portion expected to settle in stock (equity component) and the portion expected to settle in cash (liability component). | |||||||||||||
To value the shares subject to the market condition, we utilized a Monte Carlo simulation model to arrive at a grant-date fair value. This amount will be expensed over the three-year term of the award with a credit to additional paid-in-capital. To value the shares subject to the internal performance measure, we used the value of our common stock on the date of grant as the grant-date fair value per share. This amount will be expensed over the three-year term of the award, with a credit to additional paid-in-capital, and could fluctuate depending on the number of shares ultimately expected to vest based on our assessment of the probability that the performance conditions will be achieved. For both performance conditions, the portion of the award expected to settle in cash will be recorded as a liability and will be marked to market over the three-year term of the award, and could fluctuate depending on the number of shares ultimately expected to vest. | |||||||||||||
In conjunction with the annual grant in December 2013, we awarded 155,800 performance shares, of which 0% to 200% of these shares may ultimately vest, depending on the achievement of the performance conditions. For the period from the date of grant through January 31, 2014, we have recorded $0.1 million of compensation expense related to these performance share awards. | |||||||||||||
Performance share awards are not considered outstanding shares and do not have voting rights, although dividends are accrued over the performance period and will be payable in cash based upon the number of performance shares ultimately earned. |
Other_Income_Expense
Other Income (Expense) | 3 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Other Income and Expenses [Abstract] | ' | |||||||
Other Income (Expense) | ' | |||||||
13. Other Income (Expense) | ||||||||
Other income (expense) included under the caption "Other, net" on the accompanying condensed consolidated statements of income (loss), consisted of the following for the three months ended January 31, 2014 and 2013: | ||||||||
Three Months Ended January 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Foreign currency transaction gains (losses) | $ | (104 | ) | $ | 662 | |||
Foreign currency derivative gains (losses) | 114 | (708 | ) | |||||
Interest income | 6 | 20 | ||||||
Other | 80 | (65 | ) | |||||
Other income (expense) | $ | 96 | $ | (91 | ) | |||
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
14. Segment Information | ||||||||||||||||
We have two reportable segments: (1) Engineered Products and (2) Aluminum Sheet Products. The Engineered Products segment produces systems, finished products and components serving the OEM residential window and door industry, while the Aluminum Sheet Products segment produces mill finished and coated aluminum sheet serving the broader building and construction markets. The primary market drivers of our segments are residential remodeling and replacement activity (R&R) and new home construction. | ||||||||||||||||
We have aggregated four operating segments into the Engineered Products reportable segment in accordance with ASC Topic 280-10-50, “Segment Reporting” (ASC 280). This aggregation is based on factors including, but not limited to: (1) similar nature of products serving the building products industry, specifically the fenestration business; (2) similar production processes, although there are some differences in the amount of automation amongst operating plants; (3) similar types or classes of customers, namely the primary original equipment manufacturers (OEMs) in the window and door industry; (4) similar distribution methods for product delivery, although the extent of the use of third-party distributors will vary amongst the businesses; and (5) similar regulatory environment. | ||||||||||||||||
We measure our inventory at the segment level on a FIFO or weighted-average basis; however, at the consolidated level, a portion of the inventory is measured on a LIFO basis. The LIFO reserve is computed on a consolidated basis as a single pool. (See Note 3, "Inventories", included herewith). We record LIFO inventory adjustments, corporate office charges and inter-segment eliminations as Corporate & Other. We account for inter-segment sales and transfers as though the sales or transfers were to third parties, at current market prices. Inter-segment sales, related cost of sales, and intercompany profit are eliminated in consolidation. The most significant components of corporate assets include cash and cash equivalents, property, plant and equipment, and deferred tax assets, among others. We measure segment profit and our chief operating decision makers evaluate segment results based on the U.S. GAAP measure of operating income (loss). We do not allocate interest expense, interest income or income taxes to our operating segments. | ||||||||||||||||
Our segment information for the three months ended January 31, 2014 and 2013 was as follows (in thousands): | ||||||||||||||||
Engineered Products | Aluminum Sheet Products | Corporate & Other | Total | |||||||||||||
Three Months Ended January 31, 2014 | ||||||||||||||||
Net sales | $ | 126,379 | $ | 75,983 | $ | — | $ | 202,362 | ||||||||
Inter-segment sales | — | 3,508 | (3,508 | ) | — | |||||||||||
Depreciation and amortization | 7,644 | 1,750 | 900 | 10,294 | ||||||||||||
Operating income (loss) | 7,491 | (4,251 | ) | (8,353 | ) | (5,113 | ) | |||||||||
Capital expenditures | $ | 4,578 | $ | 1,750 | $ | 420 | $ | 6,748 | ||||||||
Three Months Ended January 31, 2013 | ||||||||||||||||
Net sales | $ | 106,119 | $ | 79,594 | $ | — | $ | 185,713 | ||||||||
Inter-segment sales | — | 5,009 | (5,009 | ) | — | |||||||||||
Depreciation and amortization | 7,473 | 1,627 | 557 | 9,657 | ||||||||||||
Operating income (loss) | 2,833 | (4,229 | ) | (12,289 | ) | (13,685 | ) | |||||||||
Capital expenditures | $ | 4,189 | $ | 3,561 | $ | 3,750 | $ | 11,500 | ||||||||
As of January 31, 2014 | ||||||||||||||||
Goodwill | $ | 71,838 | $ | — | $ | — | $ | 71,838 | ||||||||
Total assets | $ | 386,047 | $ | 128,790 | $ | 26,206 | $ | 541,043 | ||||||||
For a description of the change in the carrying amount of goodwill see Note 4, "Goodwill & Intangible Assets", included herewith. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended |
Jan. 31, 2014 | |
Earnings Per Share [Abstract] | ' |
Earnings Per Share | ' |
15. Earnings Per Share | |
We compute basic earnings per share by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common and potential common share includes the weighted average of additional shares associated with the incremental effect of dilutive employee stock options, non-vested restricted stock as determined using the treasury stock method prescribed by U.S. GAAP and contingent shares associated with performance share awards, if dilutive. | |
Basic and diluted loss per share was $0.11 and $0.22 for the three months ended January 31, 2014 and 2013, respectively. The computation of diluted earnings per share excludes outstanding stock options and other common stock equivalents when their inclusion would be anti-dilutive. This is always the case when an entity incurs a net loss, as we did for the three-month periods ended January 31, 2014 and 2013. During these three-month periods, 528,397 and 515,587 of common stock equivalents, respectively, and 83,594 and 97,414 shares of restricted stock, respectively, were excluded from the computation of diluted earnings per share. For the three-month period ended January 31, 2014, there were no potentially dilutive contingent shares related to performance share awards. | |
For the three-month periods ended January 31, 2014 and 2013, we had 1,083,988 and 600,350 securities, respectively, that were potentially dilutive in future earnings per share calculations. Such dilution will be dependent on the excess of the market price of our stock over the exercise price and other components of the treasury stock method. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Jan. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
New Accounting Pronouncements | ' |
16. New Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which provides guidance related to the presentation of current and deferred income taxes on the balance sheet. In general, an entity must present an unrecognized tax benefit related to a net operating loss carryforward, similar tax loss or tax credit carryforward, as a reduction of a deferred tax asset, except in prescribed circumstances through which liability presentation would be appropriate. This guidance becomes effective for fiscal years beginning after December 15, 2013. We expect to adopt this guidance during fiscal 2015 with no material impact on our consolidated financial statements. | |
In February 2013, the FASB issued ASU No. 2013-2, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. We adopted ASU 2013-2 as of November 1, 2013, with no material impact on our consolidated financial statements. | |
In December 2011, the FASB issued ASU No. 2011-11, Disclosures about Offsetting Assets and Liabilities, which requires entities to disclose both gross information and net information about instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The scope of this standard, which was subsequently clarified by ASU 2013-1, includes derivatives, sale and repurchase agreements, reverse sale and repurchase agreements, and securities borrowing and securities lending arrangements. These disclosures assist users of financial statements in evaluating the effect or potential effect of netting arrangements on an entity's financial position. We adopted ASU 2011-11 as of November 1, 2013, with no material impact on our consolidated financial statements. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Jan. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
17. Subsequent Events | |
On February 7, 2014, we signed a purchase agreement with Aleris International, Inc., to sell our interest in a limited liability company which holds the net assets of our Nichols Aluminum business, the sole operating segment included in our Aluminum Sheet Products reportable segment. The sale price is $110.0 million, subject to a working capital adjustment. We expect to record a gain on the transaction. We received regulatory approval and expect to close this transaction on March 31, 2014. | |
For tabular presentation of the operating results of this business for the three months ended January 31, 2014 and 2013 and the pro forma impact of this business on consolidated earnings during these periods, as well as the balance sheet presentation of this business as held for sale if such transaction had occurred as of January 31, 2014 and October 31, 2013, see Note 1, "Nature of Operations and Basis of Presentation - Discontinued Operations", included herewith. |
Nature_of_Operations_and_Basis1
Nature of Operations and Basis of Presentation (Tables) | 3 Months Ended | |||||||||||
Jan. 31, 2014 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||
Schedule of Pro Forma Information of Disposal Group | ' | |||||||||||
As Reported | Disposal Group | As Adjusted | ||||||||||
(In thousands) | ||||||||||||
Quarter Ended January 31, 2014 | ||||||||||||
Net sales | $ | 202,362 | $ | 79,491 | $ | 122,871 | ||||||
Loss before income taxes | $ | (5,175 | ) | $ | (4,251 | ) | $ | (924 | ) | |||
Net loss | $ | (3,900 | ) | $ | (2,689 | ) | $ | (1,211 | ) | |||
As Reported | Disposal Group | As Adjusted | ||||||||||
(In thousands) | ||||||||||||
Quarter Ended January 31, 2013 | ||||||||||||
Net sales | $ | 185,713 | $ | 84,603 | $ | 101,110 | ||||||
Loss before income taxes | $ | (13,915 | ) | $ | (4,229 | ) | $ | (9,686 | ) | |||
Net loss | $ | (8,118 | ) | $ | (2,676 | ) | $ | (5,442 | ) | |||
If the assets and liabilities associated with our Aluminum Sheet Products reportable segment had been reclassified as held for sale at January 31, 2014 and October 31, 2013, the effect of such presentation at an unaudited condensed consolidated balance sheet caption level is summarized in the following table. | ||||||||||||
As Reported | Disposal Group | As Adjusted | ||||||||||
(In thousands) | ||||||||||||
As of January 31, 2014 | ||||||||||||
Current assets: | ||||||||||||
Accounts receivable, net | $ | 72,459 | $ | (31,110 | ) | $ | 41,349 | |||||
Inventories, net | 74,498 | (22,423 | ) | 52,075 | ||||||||
Deferred income taxes | 24,769 | (2,102 | ) | 22,667 | ||||||||
Prepaid and other current assets | 7,352 | (1,616 | ) | 5,736 | ||||||||
Current assets held-for-sale | $ | — | $ | 57,251 | $ | 57,251 | ||||||
Long-term assets: | ||||||||||||
Property, plant and equipment, net | $ | 160,531 | $ | (50,342 | ) | $ | 110,189 | |||||
Deferred income taxes | 13,277 | (6,413 | ) | 6,864 | ||||||||
Goodwill | 71,838 | — | 71,838 | |||||||||
Intangible assets, net | 76,969 | — | 76,969 | |||||||||
Other assets | 13,543 | (8,179 | ) | 5,364 | ||||||||
Long-term assets held-for-sale | $ | — | $ | 64,934 | $ | 64,934 | ||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 67,278 | $ | (29,702 | ) | $ | 37,576 | |||||
Accrued liabilities | 29,679 | (9,231 | ) | 20,448 | ||||||||
Current maturities of long-term debt | 187 | (24 | ) | 163 | ||||||||
Current liabilities held-for-sale | $ | — | $ | 38,957 | $ | 38,957 | ||||||
Long-term liabilities: | ||||||||||||
Long-term debt | $ | 721 | $ | (35 | ) | $ | 686 | |||||
Deferred pension and postretirement benefits | 4,506 | (310 | ) | 4,196 | ||||||||
Liability for uncertain tax positions | 5,435 | — | 5,435 | |||||||||
Non-current environmental reserves | 8,862 | (8,862 | ) | — | ||||||||
Other liabilities | 12,114 | (1,018 | ) | 11,096 | ||||||||
Long-term liabilities held-for-sale | $ | — | $ | 10,225 | $ | 10,225 | ||||||
As Reported | Disposal Group | As Adjusted | ||||||||||
(In thousands) | ||||||||||||
As of October 31, 2013 | ||||||||||||
Current assets: | ||||||||||||
Accounts receivable, net | $ | 98,833 | $ | (40,166 | ) | $ | 58,667 | |||||
Inventories, net | 58,316 | (16,435 | ) | 41,881 | ||||||||
Deferred income taxes | 22,786 | (2,102 | ) | 20,684 | ||||||||
Prepaid and other current assets | 6,612 | (1,700 | ) | 4,912 | ||||||||
Current assets held for sale | $ | — | $ | 60,403 | $ | 60,403 | ||||||
Long-term assets: | ||||||||||||
Property, plant and equipment, net | $ | 157,219 | $ | (50,398 | ) | $ | 106,821 | |||||
Deferred income taxes | 13,444 | (6,413 | ) | 7,031 | ||||||||
Goodwill | 71,866 | — | 71,866 | |||||||||
Intangible assets, net | 78,962 | — | 78,962 | |||||||||
Other assets | 14,041 | (8,472 | ) | 5,569 | ||||||||
Long-term assets held for sale | $ | — | $ | 65,283 | $ | 65,283 | ||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 76,900 | $ | (39,483 | ) | $ | 37,417 | |||||
Accrued liabilities | 44,785 | (9,802 | ) | 34,983 | ||||||||
Current maturities of long-term debt | 183 | (22 | ) | 161 | ||||||||
Current liabilities held for sale | $ | — | $ | 49,307 | $ | 49,307 | ||||||
Long-term liabilities: | ||||||||||||
Long-term debt | $ | 752 | $ | (51 | ) | $ | 701 | |||||
Deferred pension and postretirement benefits | 3,712 | (234 | ) | 3,478 | ||||||||
Liability for uncertain tax positions | 5,396 | — | 5,396 | |||||||||
Non-current environmental reserves | 9,255 | (9,255 | ) | — | ||||||||
Other liabilities | 14,638 | (1,018 | ) | 13,620 | ||||||||
Long-term liabilities held for sale | $ | — | $ | 10,558 | $ | 10,558 | ||||||
Acquisitions_Tables
Acquisitions (Tables) | 3 Months Ended | |||
Jan. 31, 2014 | ||||
Business Combinations [Abstract] | ' | |||
Schedule of Purchase Price Allocation | ' | |||
The purchase price has been allocated to the fair value of the assets acquired and liabilities assumed, as indicated in the table below. | ||||
As of Date of | ||||
Opening Balance Sheet | ||||
(In thousands) | ||||
Net assets acquired: | ||||
Accounts receivable | $ | 3,638 | ||
Inventories | 5,062 | |||
Prepaid and other current assets | 140 | |||
Property, plant and equipment | 4,682 | |||
Intangible assets | 8,939 | |||
Accounts payable | (2,066 | ) | ||
Accrued liabilities | (993 | ) | ||
Current maturities of long-term debt | (14 | ) | ||
Long-term debt | (77 | ) | ||
Goodwill | 2,785 | |||
Net assets acquired | $ | 22,096 | ||
Consideration: | ||||
Cash, net of cash and cash equivalents acquired | $ | 22,096 | ||
The purchase price has been allocated to the fair value of the assets acquired and liabilities assumed, as indicated in the table below. This allocation is based on estimates and assumptions that are subject to change within the purchase price allocation period (generally one year from the acquisition date). | ||||
As of Date of | ||||
Opening Balance Sheet | ||||
(In thousands) | ||||
Net assets acquired: | ||||
Inventories | $ | 161 | ||
Prepaid and other current assets | 145 | |||
Property, plant and equipment | 4,695 | |||
Intangible assets | 290 | |||
Deferred income tax liability | (50 | ) | ||
Net assets acquired | $ | 5,241 | ||
Consideration: | ||||
Cash, net of cash and cash equivalents acquired | $ | 5,161 | ||
Gain recognized on bargain purchase | $ | 80 | ||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories consisted of the following at January 31, 2014 and October 31, 2013: | ||||||||
January 31, | October 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Raw materials | $ | 37,726 | $ | 32,215 | ||||
Finished goods and work in process | 45,826 | 35,657 | ||||||
Supplies and other | 2,727 | 2,269 | ||||||
Total | 86,279 | 70,141 | ||||||
Less: Inventory reserves | 11,781 | 11,825 | ||||||
Inventories, net | $ | 74,498 | $ | 58,316 | ||||
Values of Inventories | ' | |||||||
Our inventories at January 31, 2014 and October 31, 2013 were valued using the following costing methods: | ||||||||
January 31, | October 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
LIFO | $ | 24,868 | $ | 17,211 | ||||
FIFO | 49,630 | 41,105 | ||||||
Total | $ | 74,498 | $ | 58,316 | ||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Changes in the Carrying Amount of Goodwill | ' | |||||||||||||||
The change in the carrying amount of goodwill for the three months ended January 31, 2014 was as follows: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
31-Jan-14 | ||||||||||||||||
(In thousands) | ||||||||||||||||
Beginning balance as of November 1, 2013 | $ | 71,866 | ||||||||||||||
Acquisition | — | |||||||||||||||
Foreign currency translation adjustment | (28 | ) | ||||||||||||||
Balance as of the end of the period | $ | 71,838 | ||||||||||||||
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | ' | |||||||||||||||
Amortizable intangible assets consisted of the following as of January 31, 2014 and October 31, 2013: | ||||||||||||||||
31-Jan-14 | 31-Oct-13 | |||||||||||||||
Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||
(In thousands) | ||||||||||||||||
Customer relationships | $ | 53,074 | $ | 16,630 | $ | 52,793 | $ | 15,630 | ||||||||
Trademarks and trade names | 44,586 | 18,239 | 44,576 | 17,498 | ||||||||||||
Patents and other technology | 25,402 | 11,804 | 25,390 | 11,319 | ||||||||||||
Other | 1,392 | 812 | 1,392 | 742 | ||||||||||||
Total | $ | 124,454 | $ | 47,485 | $ | 124,151 | $ | 45,189 | ||||||||
Estimated Amortization Expense Related to Intangible Assets | ' | |||||||||||||||
Estimated remaining amortization expense, assuming current intangible balances and no new acquisitions, for each of the fiscal years ending October 31, was as follows (in thousands): | ||||||||||||||||
Estimated | ||||||||||||||||
Amortization Expense | ||||||||||||||||
2014 (remaining 9 months) | $ | 6,769 | ||||||||||||||
2015 | 8,928 | |||||||||||||||
2016 | 8,657 | |||||||||||||||
2017 | 8,551 | |||||||||||||||
2018 | 8,303 | |||||||||||||||
Thereafter | 35,761 | |||||||||||||||
Total | $ | 76,969 | ||||||||||||||
LongTerm_Debt_and_Capital_Leas1
Long-Term Debt and Capital Lease Obligations (Tables) | 3 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
Long-term debt consisted of the following at January 31, 2014 and October 31, 2013: | ||||||||
January 31, | October 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Revolving Credit Facility | $ | — | $ | — | ||||
City of Richmond, Kentucky Industrial Building Revenue Bonds | 700 | 700 | ||||||
Capital lease obligations and other | 208 | 235 | ||||||
Total debt | 908 | 935 | ||||||
Less: Current maturities | 187 | 183 | ||||||
Long-term debt | $ | 721 | $ | 752 | ||||
Retirement_Plans_Tables
Retirement Plans (Tables) | 3 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||
Net Periodic Pension Cost | ' | |||||||
The net periodic pension cost for this plan for the three-month periods ended January 31, 2014 and 2013 was as follows: | ||||||||
Three Months Ended January 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Service cost | $ | 920 | $ | 907 | ||||
Interest cost | 263 | 194 | ||||||
Expected return on plan assets | (423 | ) | (365 | ) | ||||
Amortization of net loss | — | 62 | ||||||
Net periodic benefit cost | $ | 760 | $ | 798 | ||||
Warranty_Obligations_Tables
Warranty Obligations (Tables) | 3 Months Ended | |||
Jan. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Reconciliation of Activity Related to Accrued Warranty | ' | |||
A reconciliation of the activity related to our accrued warranty, including both the current and long-term portions (reported in accrued liabilities and other liabilities, respectively, on the accompanying condensed consolidated balance sheet) follows: | ||||
Three Months Ended | ||||
January 31, 2014 | ||||
(In thousands) | ||||
Beginning balance as of November 1, 2013 | $ | 3,684 | ||
Provision for warranty expense | 349 | |||
Change in accrual for pre-existing warranties | (3,071 | ) | ||
Warranty costs paid | (242 | ) | ||
Total accrued warranty as of the end of the period | 720 | |||
Less: Current portion of accrued warranty | 389 | |||
Long-term portion of accrued warranty | $ | 331 | ||
Contingencies_Tables
Contingencies (Tables) | 3 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Environmental Reserve and Corresponding Recovery | ' | |||||||
The table below indicates the total environmental reserve and corresponding recoverable balances as well as where these balances are reported in the accompanying condensed consolidated balance sheets as of January 31, 2014 and October 31, 2013: | ||||||||
January 31, | October 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Accrued liabilities | $ | 1,550 | $ | 1,550 | ||||
Non-current environmental reserves | 8,862 | 9,255 | ||||||
Total environmental reserves | $ | 10,412 | $ | 10,805 | ||||
Accounts receivable | $ | 1,257 | $ | 903 | ||||
Other current assets | 1,395 | 1,395 | ||||||
Other assets (non-current) | 7,976 | 8,330 | ||||||
Total receivable for recovery of remediation costs | $ | 10,628 | $ | 10,628 | ||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 3 Months Ended | ||||||||||||||
Jan. 31, 2014 | |||||||||||||||
Summary of Derivative Instruments [Abstract] | ' | ||||||||||||||
Schedule of Location in Financial Performance and Financial Position | ' | ||||||||||||||
We have not designated any of our derivative contracts as hedges for accounting purposes. Therefore, changes in the fair value of these contracts and the realized gains and losses are recorded in the condensed consolidated statements of income (loss) for the three months ended January 31, 2014 and 2013 as follows: | |||||||||||||||
Three Months Ended January 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||
Derivatives Not Designated as Hedging Instruments: | Location of Gain or (Loss): | (In thousands) | |||||||||||||
Aluminum derivatives | Cost of sales | $ | (115 | ) | $ | 70 | |||||||||
Foreign currency derivatives | Other, net | $ | 114 | $ | (708 | ) | |||||||||
The fair values of our outstanding derivative contracts as of January 31, 2014 and October 31, 2013 are summarized in the following table (in thousands). We have chosen not to offset any of our derivative instruments in accordance with the provisions of ASC 815. Therefore, the assets and liabilities below are presented on a gross basis on our accompanying condensed consolidated balance sheets. | |||||||||||||||
January 31, 2014 | October 31, 2013 | ||||||||||||||
Prepaid and other current assets: | |||||||||||||||
Aluminum derivatives | $ | — | $ | 50 | |||||||||||
Foreign currency derivatives | 104 | 164 | |||||||||||||
Other assets: | |||||||||||||||
Aluminum derivatives | — | 8 | |||||||||||||
Accrued liabilities: | |||||||||||||||
Aluminum derivatives | 163 | 77 | |||||||||||||
Foreign currency derivatives | — | 39 | |||||||||||||
Schedule of Notional Amounts of Oustanding Derivative Positions | ' | ||||||||||||||
The following table summarizes the notional amounts and fair value of outstanding derivative contracts at January 31, 2014 and October 31, 2013 (in thousands): | |||||||||||||||
Notional as indicated | Fair Value in $ | ||||||||||||||
January 31, 2014 | October 31, 2013 | January 31, 2014 | October 31, 2013 | ||||||||||||
Aluminum derivatives: | |||||||||||||||
Aluminum forward purchase contracts | LBS | 2,480 | 3,142 | $ | (163 | ) | $ | 45 | |||||||
Aluminum swap contracts | LBS | — | 187 | — | (64 | ) | |||||||||
Foreign currency derivatives: | |||||||||||||||
Sell EUR, buy USD | EUR | 5,054 | 7,258 | 102 | 150 | ||||||||||
Sell CAD, buy USD | CAD | 254 | 615 | 1 | (2 | ) | |||||||||
Sell GBP, Buy USD | GBP | 216 | — | 1 | — | ||||||||||
Buy EUR, sell GBP | EUR | 21 | 967 | — | (12 | ) | |||||||||
Buy GBP, sell USD | GBP | — | 2,435 | — | (25 | ) | |||||||||
Sell EUR, buy GBP | EUR | — | 880 | $ | — | $ | 14 | ||||||||
Fair_Value_Measurement_of_Asse1
Fair Value Measurement of Assets and Liabilities (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Jan. 31, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Summary of Fair Value of Assets and Liabilities Measured on Recurring Basis | ' | |||||||||||||||||||||||||||||||
The following table summarizes the assets and liabilities measured on a recurring basis based on the fair value hierarchy (in thousands): | ||||||||||||||||||||||||||||||||
January 31, 2014 | October 31, 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Investments in money market fund | $ | 24,614 | $ | — | $ | — | $ | 24,614 | $ | 42,639 | $ | — | $ | — | $ | 42,639 | ||||||||||||||||
Aluminum derivatives | — | — | — | — | — | 58 | — | 58 | ||||||||||||||||||||||||
Foreign currency derivatives | — | 104 | — | 104 | — | 164 | — | 164 | ||||||||||||||||||||||||
Total assets | $ | 24,614 | $ | 104 | $ | — | $ | 24,718 | $ | 42,639 | $ | 222 | $ | — | $ | 42,861 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Aluminum derivatives | $ | — | $ | (163 | ) | $ | — | $ | (163 | ) | $ | — | $ | (77 | ) | $ | — | $ | (77 | ) | ||||||||||||
Foreign currency derivatives | — | — | — | — | — | (39 | ) | — | (39 | ) | ||||||||||||||||||||||
Total liabilities | $ | — | $ | (163 | ) | $ | — | $ | (163 | ) | $ | — | $ | (116 | ) | $ | — | $ | (116 | ) | ||||||||||||
Net assets (liabilities) | $ | 24,614 | $ | (59 | ) | $ | — | $ | 24,555 | $ | 42,639 | $ | 106 | $ | — | $ | 42,745 | |||||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||
Schedule of Nonvested Restricted Share Activity | ' | ||||||||||||
A summary of non-vested restricted stock awards activity during the three months ended January 31, 2014 is presented below: | |||||||||||||
Restricted Stock Awards | Weighted Average | ||||||||||||
Grant Date Fair Value per Share | |||||||||||||
Non-vested at October 31, 2013 | 183,400 | $ | 17.46 | ||||||||||
Granted | 80,400 | 17.63 | |||||||||||
Vested | (25,700 | ) | 16.9 | ||||||||||
Non-vested at January 31, 2014 | 238,100 | $ | 17.58 | ||||||||||
Schedule of Valuation Assumptions for Grants | ' | ||||||||||||
The following table provides a summary of assumptions used to estimate the fair value of our stock options issued during the three-month periods ended January 31, 2014 and 2013. | |||||||||||||
Three Months Ended January 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Weighted-average expected volatility | 55.70% | 54.00% | |||||||||||
Weighted-average expected term (in years) | 5.9 | 5 | |||||||||||
Risk-free interest rate | 1.80% | 0.60% | |||||||||||
Expected dividend yield over expected term | 1.00% | 1.00% | |||||||||||
Weighted average grant date fair value | $8.52 | $8.98 | |||||||||||
Schedule of Stock Option Activity | ' | ||||||||||||
The following table summarizes our stock option activity for the three months ended January 31, 2014: | |||||||||||||
Stock Options | Weighted Average | Weighted Average | Aggregate | ||||||||||
Exercise Price | Remaining Contractual | Intrinsic | |||||||||||
Term (in years) | Value (000s) | ||||||||||||
Outstanding at October 31, 2013 | 2,875,276 | $ | 15.64 | ||||||||||
Granted | 157,300 | 17.64 | |||||||||||
Exercised | (21,567 | ) | 15.34 | ||||||||||
Forfeited/Expired | (24,171 | ) | 17.36 | ||||||||||
Outstanding at January 31, 2014 | 2,986,838 | $ | 15.74 | 6.9 | $ | 10,570 | |||||||
Vested or expected to vest at January 31, 2014 | 2,920,273 | $ | 15.66 | 6.8 | $ | 10,502 | |||||||
Exercisable at January 31, 2014 | 2,157,297 | $ | 14.8 | 6 | $ | 9,341 | |||||||
Schedule of Restricted Stock Units Activity | ' | ||||||||||||
during the three months ended January 31, 2014: | |||||||||||||
Restricted Stock Units | Weighted Average | ||||||||||||
Grant Date Fair Value per Share | |||||||||||||
Non-vested at October 31, 2013 | 101,000 | $ | 15.62 | ||||||||||
Granted | 5,700 | 17.63 | |||||||||||
Non-vested at January 31, 2014 | 106,700 | $ | 15.73 | ||||||||||
Other_Income_Expense_Tables
Other Income (Expense) (Tables) | 3 Months Ended | |||||||
Jan. 31, 2014 | ||||||||
Other Income and Expenses [Abstract] | ' | |||||||
Schedule of Other Nonoperating Income (Expense) | ' | |||||||
Other income (expense) included under the caption "Other, net" on the accompanying condensed consolidated statements of income (loss), consisted of the following for the three months ended January 31, 2014 and 2013: | ||||||||
Three Months Ended January 31, | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Foreign currency transaction gains (losses) | $ | (104 | ) | $ | 662 | |||
Foreign currency derivative gains (losses) | 114 | (708 | ) | |||||
Interest income | 6 | 20 | ||||||
Other | 80 | (65 | ) | |||||
Other income (expense) | $ | 96 | $ | (91 | ) | |||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Summary of Net Sales, Operating Income (Loss) and Identifiable Assets by Segment | ' | |||||||||||||||
Our segment information for the three months ended January 31, 2014 and 2013 was as follows (in thousands): | ||||||||||||||||
Engineered Products | Aluminum Sheet Products | Corporate & Other | Total | |||||||||||||
Three Months Ended January 31, 2014 | ||||||||||||||||
Net sales | $ | 126,379 | $ | 75,983 | $ | — | $ | 202,362 | ||||||||
Inter-segment sales | — | 3,508 | (3,508 | ) | — | |||||||||||
Depreciation and amortization | 7,644 | 1,750 | 900 | 10,294 | ||||||||||||
Operating income (loss) | 7,491 | (4,251 | ) | (8,353 | ) | (5,113 | ) | |||||||||
Capital expenditures | $ | 4,578 | $ | 1,750 | $ | 420 | $ | 6,748 | ||||||||
Three Months Ended January 31, 2013 | ||||||||||||||||
Net sales | $ | 106,119 | $ | 79,594 | $ | — | $ | 185,713 | ||||||||
Inter-segment sales | — | 5,009 | (5,009 | ) | — | |||||||||||
Depreciation and amortization | 7,473 | 1,627 | 557 | 9,657 | ||||||||||||
Operating income (loss) | 2,833 | (4,229 | ) | (12,289 | ) | (13,685 | ) | |||||||||
Capital expenditures | $ | 4,189 | $ | 3,561 | $ | 3,750 | $ | 11,500 | ||||||||
As of January 31, 2014 | ||||||||||||||||
Goodwill | $ | 71,838 | $ | — | $ | — | $ | 71,838 | ||||||||
Total assets | $ | 386,047 | $ | 128,790 | $ | 26,206 | $ | 541,043 | ||||||||
Nature_of_Operations_and_Basis2
Nature of Operations and Basis of Presentation (Details) (USD $) | 3 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Oct. 31, 2013 | |
Disposal Group Pro Forma Disclosures [Line Items] | ' | ' | ' |
Net sales | $202,362,000 | $185,713,000 | ' |
Income (loss) before income taxes | -5,175,000 | -13,915,000 | ' |
Net income (loss) | -3,900,000 | -8,118,000 | ' |
Accounts receivable, net | 72,459,000 | ' | 98,833,000 |
Inventory, net | 74,498,000 | ' | 58,316,000 |
Deferred income taxes | 24,769,000 | ' | 22,786,000 |
Prepaid and other current assets | 7,352,000 | ' | 6,612,000 |
Property, plant and equipment, net | 160,531,000 | ' | 157,219,000 |
Deferred income taxes | 13,277,000 | ' | 13,444,000 |
Goodwill | 71,838,000 | ' | 71,866,000 |
Intangible assets, net | 76,969,000 | ' | 78,962,000 |
Other assets | 13,543,000 | ' | 14,041,000 |
Accounts payable | 67,278,000 | ' | 76,900,000 |
Accrued liabilities | 29,679,000 | ' | 44,785,000 |
Current maturities of long-term debt | 187,000 | ' | 183,000 |
Long-term debt | 721,000 | ' | 752,000 |
Deferred pension and postretirement benefits | 4,506,000 | ' | 3,712,000 |
Liability for uncertain tax positions | 5,435,000 | ' | 5,396,000 |
Non-current environmental reserves | 8,862,000 | ' | 9,255,000 |
Other liabilities | 12,114,000 | ' | 14,638,000 |
Sale price of disposal group | 110,000,000 | ' | ' |
Disposal Group | ' | ' | ' |
Disposal Group Pro Forma Disclosures [Line Items] | ' | ' | ' |
Net sales | 79,491,000 | 84,603,000 | ' |
Income (loss) before income taxes | -4,251,000 | -4,229,000 | ' |
Net income (loss) | -2,689,000 | -2,676,000 | ' |
Accounts receivable, net | -31,110,000 | ' | -40,166,000 |
Inventory, net | -22,423,000 | ' | -16,435,000 |
Deferred income taxes | -2,102,000 | ' | -2,102,000 |
Prepaid and other current assets | -1,616,000 | ' | -1,700,000 |
Current assets held-for-sale | 57,251,000 | ' | 60,403,000 |
Property, plant and equipment, net | -50,342,000 | ' | -50,398,000 |
Deferred income taxes | -6,413,000 | ' | -6,413,000 |
Goodwill | 0 | ' | 0 |
Intangible assets, net | 0 | ' | 0 |
Other assets | -8,179,000 | ' | -8,472,000 |
Long-term assets held-for-sale | 64,934,000 | ' | 65,283,000 |
Accounts payable | -29,702,000 | ' | -39,483,000 |
Accrued liabilities | -9,231,000 | ' | -9,802,000 |
Current maturities of long-term debt | -24,000 | ' | -22,000 |
Current liabilities held-for-sale | 38,957,000 | ' | 49,307,000 |
Long-term debt | -35,000 | ' | -51,000 |
Deferred pension and postretirement benefits | -310,000 | ' | -234,000 |
Liability for uncertain tax positions | 0 | ' | 0 |
Non-current environmental reserves | -8,862,000 | ' | -9,255,000 |
Other liabilities | -1,018,000 | ' | -1,018,000 |
Long-term liabilities held-for-sale | 10,225,000 | ' | 10,558,000 |
As Adjusted | ' | ' | ' |
Disposal Group Pro Forma Disclosures [Line Items] | ' | ' | ' |
Net sales | 122,871,000 | 101,110,000 | ' |
Income (loss) before income taxes | -924,000 | -9,686,000 | ' |
Net income (loss) | -1,211,000 | -5,442,000 | ' |
Accounts receivable, net | 41,349,000 | ' | 58,667,000 |
Inventory, net | 52,075,000 | ' | 41,881,000 |
Deferred income taxes | 22,667,000 | ' | 20,684,000 |
Prepaid and other current assets | 5,736,000 | ' | 4,912,000 |
Current assets held-for-sale | 57,251,000 | ' | 60,403,000 |
Property, plant and equipment, net | 110,189,000 | ' | 106,821,000 |
Deferred income taxes | 6,864,000 | ' | 7,031,000 |
Goodwill | 71,838,000 | ' | 71,866,000 |
Intangible assets, net | 76,969,000 | ' | 78,962,000 |
Other assets | 5,364,000 | ' | 5,569,000 |
Long-term assets held-for-sale | 64,934,000 | ' | 65,283,000 |
Accounts payable | 37,576,000 | ' | 37,417,000 |
Accrued liabilities | 20,448,000 | ' | 34,983,000 |
Current maturities of long-term debt | 163,000 | ' | 161,000 |
Current liabilities held-for-sale | 38,957,000 | ' | 49,307,000 |
Long-term debt | 686,000 | ' | 701,000 |
Deferred pension and postretirement benefits | 4,196,000 | ' | 3,478,000 |
Liability for uncertain tax positions | 5,435,000 | ' | 5,396,000 |
Non-current environmental reserves | 0 | ' | 0 |
Other liabilities | 11,096,000 | ' | 13,620,000 |
Long-term liabilities held-for-sale | $10,225,000 | ' | $10,558,000 |
Acquisitions_Detail
Acquisitions (Detail) (USD $) | 3 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2014 | Jan. 31, 2013 | Oct. 31, 2013 | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2013 | |
Greenville | Alumco | Alumco | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | ' | ' | $3,638,000 | ' |
Inventories | ' | ' | ' | 161,000 | 5,062,000 | ' |
Prepaid and other current assets | ' | ' | ' | 145,000 | 140,000 | ' |
Property, plant and equipment | ' | ' | ' | 4,695,000 | 4,682,000 | ' |
Intangible assets | ' | ' | ' | 290,000 | 8,939,000 | ' |
Accounts payable | ' | ' | ' | ' | -2,066,000 | ' |
Accrued liabilities | ' | ' | ' | ' | -993,000 | ' |
Current maturities of long-term debt | ' | ' | ' | ' | -14,000 | ' |
Long-term debt | ' | ' | ' | ' | -77,000 | ' |
Deferred income tax liability | ' | ' | ' | -50,000 | ' | ' |
Goodwill | 71,838,000 | ' | 71,866,000 | ' | 2,785,000 | ' |
Net assets acquired | ' | ' | ' | 5,241,000 | 22,096,000 | ' |
Cash paid for acquisition, net of cash and cash equivalents acquired | ' | ' | ' | 5,161,000 | 22,096,000 | ' |
Gain recognized on bargain purchase | ' | ' | ' | 80,000 | ' | ' |
Cash paid for Alumco acquisition | 5,161,000 | 22,449,000 | ' | ' | ' | ' |
Contingent consideration based on certain financial targets | ' | ' | ' | ' | ' | 500,000 |
Contingent consideration received based on working capital clause | ' | ' | ' | ' | ' | 400,000 |
Contingent consideration, at fair value | ' | ' | ' | ' | ' | $300,000 |
Inventories_Detail
Inventories (Detail) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
Inventory, Raw Materials and Supplies, Net of Reserves [Abstract] | ' | ' |
Raw materials | $37,726,000 | $32,215,000 |
Finished goods and work in process | 45,826,000 | 35,657,000 |
Supplies and other | 2,727,000 | 2,269,000 |
Inventory, gross | 86,279,000 | 70,141,000 |
Inventory reserves | 11,781,000 | 11,825,000 |
Inventories, net | 74,498,000 | 58,316,000 |
Inventory, Net [Abstract] | ' | ' |
LIFO | 24,868,000 | 17,211,000 |
FIFO | 49,630,000 | 41,105,000 |
Inventories, net | 74,498,000 | 58,316,000 |
Excess of replacement cost over LIFO value | $8,100,000 | $8,100,000 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Detail) (USD $) | 3 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Oct. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Intangible assets amortization expense | $2,300,000 | $2,200,000 | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Beginning balance | 71,866,000 | ' | ' |
Acquisition | 0 | ' | ' |
Foreign currency translation adjustment | -28,000 | ' | ' |
Ending balance | 71,838,000 | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross carrying amount | 124,454,000 | ' | 124,151,000 |
Accumulated amortization | -47,485,000 | ' | -45,189,000 |
Customer relationships related to acquired Greenville facility | 300,000 | ' | ' |
Useful life of customer relationships related to acquired Greenville facility | '5 years | ' | ' |
Estimated Amortization Expense | ' | ' | ' |
2014 (remaining nine months) | 6,769,000 | ' | ' |
2015 | 8,928,000 | ' | ' |
2016 | 8,657,000 | ' | ' |
2017 | 8,551,000 | ' | ' |
2018 | 8,303,000 | ' | ' |
Thereafter | 35,761,000 | ' | ' |
Intangible assets, net | 76,969,000 | ' | 78,962,000 |
Customer relationships | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross carrying amount | 53,074,000 | ' | 52,793,000 |
Accumulated amortization | -16,630,000 | ' | -15,630,000 |
Trademarks and trade names | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross carrying amount | 44,586,000 | ' | 44,576,000 |
Accumulated amortization | -18,239,000 | ' | -17,498,000 |
Patents and other technology | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross carrying amount | 25,402,000 | ' | 25,390,000 |
Accumulated amortization | -11,804,000 | ' | -11,319,000 |
Other | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross carrying amount | 1,392,000 | ' | 1,392,000 |
Accumulated amortization | ($812,000) | ' | ($742,000) |
LongTerm_Debt_and_Capital_Leas2
Long-Term Debt and Capital Lease Obligations (Detail) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
Debt Disclosure [Line Items] | ' | ' |
Total debt | $908,000 | $935,000 |
Less maturities due within one year included in current liabilities | 187,000 | 183,000 |
Long-term debt | 721,000 | 752,000 |
Debt Disclosure [Abstract] | ' | ' |
Credit Facility, commitments increase limit | 100,000,000 | ' |
Credit facility, total commitments limit | 250,000,000 | ' |
Credit Facility, amount available | 142,800,000 | 139,000,000 |
Letters of credit, outstanding | 6,300,000 | 6,200,000 |
Current borrowing rate - Revolver | 3.25% | 3.25% |
Current borrowing rate - Swing line sub facility | 1.20% | 1.20% |
Required consolidated interest coverage ratio | 3 | ' |
Required consolidated leverage ratio | 3.25 | ' |
Maximum letters of credit under Retired Facility | 50,000,000 | ' |
Revolving Credit Facility | ' | ' |
Debt Disclosure [Line Items] | ' | ' |
Line of credit, amount outstanding | 0 | 0 |
Credit facility, maximum borrowing capacity | 150,000,000 | ' |
Kentucky Industrial Building Revenue Bonds | ' | ' |
Debt Disclosure [Line Items] | ' | ' |
Other long-term debt | 700,000 | 700,000 |
Capital Lease Obligations and Other | ' | ' |
Debt Disclosure [Line Items] | ' | ' |
Total debt | 208,000 | 235,000 |
Retired Credit Facility | ' | ' |
Debt Disclosure [Line Items] | ' | ' |
Credit facility, maximum borrowing capacity | $270,000,000 | ' |
Retirement_Plans_Detail
Retirement Plans (Detail) (USD $) | 3 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Oct. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Defined benefit plan, contributions by employer | $1,100,000 | ' | ' |
Deferred compensation liability | 3,500,000 | ' | 6,700,000 |
Deferred compensation vested balance payment | 3,300,000 | ' | ' |
Net periodic benefit cost: | ' | ' | ' |
Service cost | 920,000 | 907,000 | ' |
Interest cost | 263,000 | 194,000 | ' |
Expected return on plan assets | -423,000 | -365,000 | ' |
Amortization of net loss | 0 | 62,000 | ' |
Net periodic benefit cost | $760,000 | $798,000 | ' |
Warranty_Obligations_Detail
Warranty Obligations (Detail) (USD $) | 3 Months Ended |
Jan. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Accrued warranty at beginning of period | $3,684,000 |
Provision for warranty expense | 349,000 |
Change in accrual for pre-existing warranties | -3,071,000 |
Warranty costs paid | 242,000 |
Accrued warranty at end of period | 720,000 |
Current accrued warranty | 389,000 |
Long-term accrued warranty | 331,000 |
Reduction in warranty accrual related to Insulating Glass business | $2,800,000 |
Income_Taxes_Detail
Income Taxes (Detail) (USD $) | 3 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Oct. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Estimated annual effective tax rate | 24.60% | 41.70% | ' |
Deferred tax assets | $45,900,000 | ' | ' |
Valuation allowance | 2,500,000 | ' | ' |
Unrecognized tax benefits | 13,200,000 | ' | ' |
Liability for uncertain tax positions | 5,435,000 | ' | 5,396,000 |
Uncertain tax position in non-current deferred taxes | 7,800,000 | ' | ' |
Recognition not affect annual effective tax rate | 12,400,000 | ' | ' |
Possible change in uncertain tax benefit within the next year | $2,000,000 | ' | ' |
Contingencies_Detail
Contingencies (Detail) (USD $) | 3 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Oct. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Accrued liabilities | $1,550,000 | ' | $1,550,000 |
Non-current environmental reserves | 8,862,000 | ' | 9,255,000 |
Total environmental reserves | 10,412,000 | ' | 10,805,000 |
Accounts receivable | 1,257,000 | ' | 903,000 |
Other current assets | 1,395,000 | ' | 1,395,000 |
Other assets (non-current) | 7,976,000 | ' | 8,330,000 |
Receivable for recovery of remediation costs | 10,628,000 | ' | 10,628,000 |
Environmental Remediation [Abstract] | ' | ' | ' |
Environmental reserve, administrative costs | 569,000 | ' | ' |
Remaining environmental reserve (net of admin & legal costs) | 9,800,000 | ' | ' |
Limit on indemnification | 21,500,000 | ' | ' |
Payment on indemnification received | 1,500,000 | ' | ' |
Percentage of ongoing payments received | 90.00% | ' | ' |
Loss Contingency [Abstract] | ' | ' | ' |
Estimate of possible loss from fire damage | 7,000,000 | ' | ' |
Insurance deductible | 500,000 | ' | ' |
Insurance recoveries | 400,000 | ' | ' |
Asset impairment charges | $510,000 | $0 | ' |
Derivative_Instruments_Detail
Derivative Instruments (Detail) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | Aluminum Forward Purchase Contracts | Aluminum Forward Purchase Contracts | Aluminum Swap Contracts | Aluminum Swap Contracts | Sell EUR | Sell EUR | Buy GBP | Buy GBP | Sell CAD | Sell CAD | Sell GBP | Sell GBP | Buy EUR, sell GBP | Buy EUR, sell GBP | Sell EUR, buy GBP | Sell EUR, buy GBP | Prepaid and Other Current Assets | Prepaid and Other Current Assets | Other Assets | Other Assets | Accrued Liabilities | Accrued Liabilities | Cost of Sales | Cost of Sales | Other Non Operating Income (Loss) | Other Non Operating Income (Loss) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aluminum derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($115) | $70 | ' | ' |
Foreign currency derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 114 | -708 |
Derivatives [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aluminum derivatives, asset | 0 | 58 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 50 | 0 | 8 | ' | ' | ' | ' | ' | ' |
Foreign currency exchange derivatives, asset | 104 | 164 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 104 | 164 | ' | ' | ' | ' | ' | ' | ' | ' |
Aluminum derivatives, liability | -163 | -77 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 163 | 77 | ' | ' | ' | ' |
Foreign currency exchange derivatives, liability | 0 | -39 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 39 | ' | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives, notional amount | ' | ' | 2,480 | 3,142 | 0 | 187 | 5,054 | 7,258 | 0 | 2,435 | 254 | 615 | 216 | 0 | 21 | 967 | 0 | 880 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aluminum derivatives, fair value | ' | ' | -163 | 45 | 0 | -64 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency exchange derivatives, fair value | ' | ' | ' | ' | ' | ' | $102 | $150 | $0 | ($25) | $1 | ($2) | $1 | $0 | $0 | ($12) | $0 | $14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurement_of_Asse2
Fair Value Measurement of Assets and Liabilities (Details) (USD $) | 3 Months Ended | |
Jan. 31, 2014 | Oct. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments in money market fund | $24,614,000 | $42,639,000 |
Aluminum derivatives, asset | 0 | 58,000 |
Foreign currency exchange derivatives, asset | 104,000 | 164,000 |
Total assets | 24,718,000 | 42,861,000 |
Aluminum derivatives, liability | -163,000 | -77,000 |
Foreign currency exchange derivatives, liability | 0 | -39,000 |
Total liabilities | -163,000 | -116,000 |
Net assets (liabilities) | 24,555,000 | 42,745,000 |
Property, plant, and equipment at fair value (non-recurring) | 3,400,000 | 3,700,000 |
Decrease in PP&E value | 300,000 | ' |
Fair Value, Inputs, Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments in money market fund | 24,614,000 | 42,639,000 |
Total assets | 24,614,000 | 42,639,000 |
Net assets (liabilities) | 24,614,000 | 42,639,000 |
Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Aluminum derivatives, asset | 0 | 58,000 |
Foreign currency exchange derivatives, asset | 104,000 | 164,000 |
Total assets | 104,000 | 222,000 |
Aluminum derivatives, liability | -163,000 | -77,000 |
Foreign currency exchange derivatives, liability | 0 | -39,000 |
Total liabilities | -163,000 | -116,000 |
Net assets (liabilities) | ($59,000) | $106,000 |
Stock_Based_Compensation_Detai
Stock Based Compensation (Detail) (USD $) | 3 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2013 | |
Fair Value Assumptions [Abstract] | ' | ' |
Weighted-average expected volatility | 55.70% | 54.00% |
Weighted-average expected term (in years) | '5 years 11 months | '5 years |
Risk-free interest rate | 1.80% | 0.60% |
Expected dividend yield over expected term | 1.00% | 1.00% |
Weighted-average grant date fair value | $8.52 | $8.98 |
Stock Options, [Roll Forward] | ' | ' |
Outstanding at beginning of period | 2,875,276 | ' |
Granted | 157,300 | ' |
Exercised | -21,567 | ' |
Cancelled/Expired | -24,171 | ' |
Outstanding at end of period | 2,986,838 | ' |
Vested or expected to vest at end of period | 2,920,273 | ' |
Exercisable at end of period | 2,157,297 | ' |
Weighted Average Exercise Price Per Share | ' | ' |
Outstanding at beginning of period | $15.64 | ' |
Granted | $17.64 | ' |
Exercised | $15.34 | ' |
Cancelled/Expired | $17.36 | ' |
Outstanding at end of period | $15.74 | ' |
Vested or expected to vest at end of period | $15.66 | ' |
Exercisable at end of period | $14.80 | ' |
Weighted Average Remaining Contractual Life | ' | ' |
Outstanding at end of period | '6 years 10 months 24 days | ' |
Vested or expected to vest at end of period | '6 years 10 months | ' |
Exercisable at end of period | '6 years | ' |
Aggregate Intrinsic Value | ' | ' |
Outstanding at end of period | $10,570,000 | ' |
Vested or expected to vest at end of period | 10,502,000 | ' |
Exercisable at end of period | 9,341,000 | ' |
Restricted Stock Awards (RSAs) | ' | ' |
Number of Shares | ' | ' |
Non-vested at beginning of the period | 183,400 | ' |
Granted | 80,400 | ' |
Vested | -25,700 | ' |
Non-vested at end of the period | 238,100 | ' |
Weighted Average Grant Date Fair Value Per Share | ' | ' |
Non-vested at beginning of the period | $17.46 | ' |
Granted | $17.63 | ' |
Vested | $16.90 | ' |
Non-vested at end of the period | $17.58 | ' |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ' | ' |
Vesting period | '3 years | ' |
Fair value of restricted stock awards vested | 400,000 | 1,100,000 |
Unrecognized compensation cost - non vested restricted stock awards | 3,000,000 | ' |
Weighted-average period over which unrecognized cost is expected to be recognized | '2 years 5 months | ' |
Stock Options | ' | ' |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ' | ' |
Vesting period | '3 years | ' |
Weighted-average period over which unrecognized cost is expected to be recognized | '2 years 1 month | ' |
Total intrinsic value of options exercised | 100,000 | 300,000 |
Fair value of stock options vested | 2,800,000 | 2,500,000 |
Unrecognized compensation cost - non vested stock options | 4,100,000 | ' |
Restricted Stock Units (RSUs) | ' | ' |
Number of Shares | ' | ' |
Non-vested at beginning of the period | 101,000 | ' |
Granted | 5,700 | ' |
Non-vested at end of the period | 106,700 | ' |
Weighted Average Grant Date Fair Value Per Share | ' | ' |
Non-vested at beginning of the period | $15.62 | ' |
Granted | $17.63 | ' |
Non-vested at end of the period | $15.73 | ' |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ' | ' |
Vesting period | '3 years | ' |
Performance Shares | ' | ' |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ' | ' |
Vesting period | '3 years | ' |
Performance shares settled in cash | 50.00% | ' |
Performance shares settled in stock | 50.00% | ' |
Performance shares vesting percentage maximum | 200.00% | ' |
Performance shares granted | 155,800 | ' |
Performance shares compensation expense | $100,000 | ' |
Other_Income_Expense_Detail
Other Income (Expense) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Other Income and Expenses [Abstract] | ' | ' |
Foreign currency transaction gains (losses) | ($104) | $662 |
Foreign currency exchange derivative gains (losses) | 114 | -708 |
Interest income | 6 | 20 |
Other | 80 | -65 |
Other income (expense) | $96 | ($91) |
Segment_Information_Detail
Segment Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Oct. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | $202,362 | $185,713 | ' |
Inter-segment sales | 0 | 0 | ' |
Depreciation and amortization | 10,294 | 9,657 | ' |
Operating income (loss) | -5,113 | -13,685 | ' |
Capital expenditures | 6,748 | 11,500 | ' |
Goodwill | 71,838 | ' | 71,866 |
Assets | 541,043 | ' | 571,815 |
Engineered Products | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 126,379 | 106,119 | ' |
Inter-segment sales | 0 | 0 | ' |
Depreciation and amortization | 7,644 | 7,473 | ' |
Operating income (loss) | 7,491 | 2,833 | ' |
Capital expenditures | 4,578 | 4,189 | ' |
Goodwill | 71,838 | ' | ' |
Assets | 386,047 | ' | ' |
Aluminum Sheet Products | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 75,983 | 79,594 | ' |
Inter-segment sales | 3,508 | 5,009 | ' |
Depreciation and amortization | 1,750 | 1,627 | ' |
Operating income (loss) | -4,251 | -4,229 | ' |
Capital expenditures | 1,750 | 3,561 | ' |
Goodwill | 0 | ' | ' |
Assets | 128,790 | ' | ' |
Corporate & Other | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 0 | 0 | ' |
Inter-segment sales | -3,508 | -5,009 | ' |
Depreciation and amortization | 900 | 557 | ' |
Operating income (loss) | -8,353 | -12,289 | ' |
Capital expenditures | 420 | 3,750 | ' |
Goodwill | 0 | ' | ' |
Assets | $26,206 | ' | ' |
Earnings_Per_Share_Detail
Earnings Per Share (Detail) (USD $) | 3 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2013 | |
Earnings Per Share Disclosure [Line Items] | ' | ' |
Loss per share, basic | ($0.11) | ($0.22) |
Loss per share, diluted | ($0.11) | ($0.22) |
Antidilutive securities | 1,083,988 | 600,350 |
Stock Options | ' | ' |
Earnings Per Share Disclosure [Line Items] | ' | ' |
Dilutive securities | 528,397 | 515,587 |
Restricted Stock Awards (RSAs) | ' | ' |
Earnings Per Share Disclosure [Line Items] | ' | ' |
Dilutive securities | 83,594 | 97,414 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Jan. 31, 2014 |
In Millions, unless otherwise specified | |
Subsequent Events [Abstract] | ' |
Sale price of disposal group | $110 |