Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Apr. 30, 2014 | Jun. 02, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Quanex Building Products Corporation | ' |
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 | 30-Apr-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 37,514,676 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Apr. 30, 2014 | Oct. 31, 2013 |
Current assets: | ' | ' |
Cash and cash equivalents | $126,984,000 | $49,734,000 |
Accounts receivable, net of allowance of $846 and $481 | 52,335,000 | 59,460,000 |
Inventories, net (Note 3) | 54,986,000 | 41,679,000 |
Deferred income taxes (Note 8) | 20,502,000 | 16,348,000 |
Prepaid and other current assets | 5,068,000 | 4,912,000 |
Current assets of discontinued operations (Note 1) | 0 | 64,151,000 |
Total current assets | 259,875,000 | 236,284,000 |
Property, plant and equipment, net of accumulated depreciation of $197,233 and $185,269 | 111,906,000 | 106,821,000 |
Deferred income taxes (Note 8) | 7,004,000 | 7,030,000 |
Goodwill (Note 4) | 72,411,000 | 71,866,000 |
Intangible assets, net (Note 4) | 75,106,000 | 78,962,000 |
Other assets | 5,638,000 | 5,572,000 |
Non-current assets of discontinued operations (Note 1) | 0 | 65,283,000 |
Total assets | 531,940,000 | 571,818,000 |
Current liabilities: | ' | ' |
Accounts payable | 42,134,000 | 37,533,000 |
Accrued liabilities | 31,262,000 | 34,810,000 |
Income taxes payable (Note 8) | 998,000 | 0 |
Current maturities of long-term debt (Note 5) | 178,000 | 162,000 |
Current liabilities of discontinued operations (Note 1) | 0 | 49,364,000 |
Total current liabilities | 74,572,000 | 121,869,000 |
Long-term debt (Note 5) | 593,000 | 701,000 |
Deferred pension and postretirement benefits (Note 6) | 3,935,000 | 3,479,000 |
Liability for uncertain tax positions (Note 8) | 5,481,000 | 5,396,000 |
Other liabilities | 11,351,000 | 14,640,000 |
Non-current liabilities of discontinued operations (Note 1) | 0 | 9,539,000 |
Total liabilities | 95,932,000 | 155,624,000 |
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 37,640,432 and 37,653,639, respectively | 376,000 | 377,000 |
Additional paid-in-capital | 247,695,000 | 247,642,000 |
Retained earnings | 190,690,000 | 177,456,000 |
Accumulated other comprehensive income (loss) | -982,000 | -2,400,000 |
Less: Treasury stock at cost, 125,756 and 488,385 shares, respectively | -1,771,000 | -6,881,000 |
Total stockholders' equity | 436,008,000 | 416,194,000 |
Total liabilities and stockholders' equity | $531,940,000 | $571,818,000 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Apr. 30, 2014 | Oct. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for accounts receivable | $846 | $481 |
Accumulated depreciation of property, plant and equipment | $197,233 | $185,269 |
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 | 37,640,432 | 37,653,639 |
Treasury stock, shares | 125,756 | 488,385 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $135,208 | $125,140 | $261,587 | $231,259 |
Cost and expenses: | ' | ' | ' | ' |
Cost of sales (excluding depreciation and amortization) | 108,649 | 95,730 | 204,838 | 179,025 |
Selling, general and administrative | 20,393 | 28,202 | 42,895 | 52,026 |
Depreciation and amortization | 8,494 | 9,812 | 17,038 | 17,842 |
Asset impairment charges | 500 | 0 | 505 | 0 |
Operating income (loss) | -2,828 | -8,604 | -3,689 | -17,634 |
Non-operating income (expense): | ' | ' | ' | ' |
Interest expense | -143 | -174 | -284 | -294 |
Other, net | -22 | 9 | 74 | -82 |
Loss from continuing operations before income taxes | -2,993 | -8,769 | -3,899 | -18,010 |
Income tax benefit | 963 | 1,906 | 658 | 5,977 |
Loss from continuing operations | -2,030 | -6,863 | -3,241 | -12,033 |
Income (loss) from discontinued operations, net of tax of $13,481, $(283), $11,902, $(2,010), respectively | 22,161 | -485 | 19,472 | -3,433 |
Net income (loss) | $20,131 | ($7,348) | $16,231 | ($15,466) |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Loss per share from continuing operations, basic | ($0.05) | ($0.19) | ($0.09) | ($0.33) |
Earnings (loss) per share from discontinued operation, basic | $0.59 | ($0.01) | $0.53 | ($0.09) |
Basic earnings (loss) per share | $0.54 | ($0.20) | $0.44 | ($0.42) |
Loss per share from continuing operations, diluted | ($0.05) | ($0.19) | ($0.09) | ($0.33) |
Earnings (loss) per share from discontinued operations, diluted | $0.58 | ($0.01) | $0.52 | ($0.09) |
Diluted earnings (loss) per share | $0.53 | ($0.20) | $0.43 | ($0.42) |
Weighted-average common shares outstanding: | ' | ' | ' | ' |
Basic | 37,217 | 36,850 | 37,108 | 36,830 |
Diluted | 37,838 | 36,850 | 37,726 | 36,830 |
Cash dividends per share | $0.04 | $0.04 | $0.08 | $0.08 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Income (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Income tax expense (benefit) of discontinued operations | $13,481 | ($283) | $11,902 | ($2,010) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income (loss) | $20,131 | ($7,348) | $16,231 | ($15,466) |
Foreign currency translation adjustments (pretax) | 1,227 | -1,227 | 1,282 | -326 |
Foreign currency translation adjustments tax benefit | 0 | 148 | 14 | 273 |
Change in pension from net unamortized gain (loss) adjustment (pretax) | 0 | 0 | 122 | 0 |
Other comprehensive income (loss), net of tax | 1,227 | -1,079 | 1,418 | -53 |
Comprehensive income (loss) | $21,358 | ($8,427) | $17,649 | ($15,519) |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flow (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 |
Operating activities: | ' | ' |
Net income (loss) | $16,231 | ($15,466) |
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities: | ' | ' |
Depreciation and amortization | 20,078 | 21,196 |
Stock-based compensation | 1,944 | 3,408 |
Deferred income taxes | 8,128 | -8,740 |
Excess tax benefit from share-based compensation | -639 | -171 |
Asset impairment charges | 1,007 | 0 |
Gain on sale of discontinued operations | -39,645 | 0 |
Other, net | 1,427 | 778 |
Changes in assets and liabilities, net of effects from acquisitions and dispositions: | ' | ' |
Decrease (increase) in accounts receivable | 3,964 | -6,380 |
Decrease (increase) in inventory | -22,834 | -6,267 |
Decrease (increase) in other current assets | -583 | 1,046 |
Increase (decrease) in accounts payable | 10,127 | -4,236 |
Increase (decrease) in accrued liabilities | -6,234 | -7,468 |
Increase (decrease) in income taxes payable | 1,667 | 1,766 |
Increase (decrease) in deferred pension and postretirement benefits | 297 | -1,475 |
Increase (decrease) in other long-term liabilities | -3,539 | 1,066 |
Other, net | -2,419 | 160 |
Cash provided by (used in) operating activities | -11,023 | -20,783 |
Investing activities: | ' | ' |
Proceeds from sale of discontinued operations | 110,000 | 0 |
Acquisitions, net of cash acquired | -5,161 | -22,096 |
Capital expenditures | -18,597 | -24,983 |
Proceeds from property insurance claim | 1,400 | ' |
Proceeds from disposition of capital assets | 304 | 22 |
Cash provided by (used in) investing activities | 87,946 | -47,057 |
Financing activities: | ' | ' |
Borrowings under credit facility | 0 | 14,500 |
Repayments of credit facility borrowings | 0 | -4,500 |
Repayments of other long-term debt | -144 | -142 |
Common stock dividends paid | -2,989 | -2,964 |
Issuance of common stock | -2,882 | -694 |
Excess tax benefit from share-based compensation | 639 | 171 |
Debt issuance costs | 0 | -1,163 |
Other | 35 | 0 |
Cash provided by (used in) financing activities | 423 | 6,596 |
Effect of exchange rate changes on cash and cash equivalents | -96 | -383 |
Increase (decrease) in cash and cash equivalents | 77,250 | -61,627 |
Cash and cash equivalents at beginning of period | 49,734 | 71,255 |
Cash and cash equivalents at end of period | $126,984 | $9,628 |
Condensed_Consolidated_Stateme4
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) | 16,231 | ' | ' | 16,231 | ' | ' |
Foreign currency translation adjustment (tax benefit of $14) | 1,296 | ' | ' | ' | 1,296 | ' |
Change in pension from net unamortized gain | 122 | ' | ' | ' | 122 | ' |
Common dividends ($0.08 per share) | -2,989 | ' | ' | -2,989 | ' | ' |
Stock-based compensation activity: | ' | ' | ' | ' | ' | ' |
Expense related to stock-based compensation | 1,944 | ' | 1,944 | ' | ' | ' |
Stock options exercised | 2,882 | ' | -1,095 | 0 | ' | 3,977 |
Tax benefit from share-based compensation | 499 | ' | 499 | ' | ' | ' |
Restricted stock awards granted | 0 | ' | -1,133 | ' | ' | 1,133 |
Other | -171 | -1 | -162 | -8 | 0 | ' |
Balance at Apr. 30, 2014 | $436,008 | $376 | $247,695 | $190,690 | ($982) | ($1,771) |
Condensed_Consolidated_Stateme5
Condensed Consolidated Statement of Stockholders' Equity (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' | ' |
Foreign currency translation adjustment, tax | $0 | $148 | $14 | $273 |
Common stock, dividends per share | $0.04 | $0.04 | $0.08 | $0.08 |
Nature_of_Operations_and_Basis
Nature of Operations and Basis of Presentation | 6 Months Ended | |||||||||||||||
Apr. 30, 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 products such as (1) energy efficient window components that include flexible insulating glass spacers, (2) extruded vinyl profiles, (3) window and door screens, (4) solar panel sealants and (5) precision-formed metal and wood products for original equipment manufacturers (OEMs). 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 | ||||||||||||||||
Prior to April 1, 2014, we had two reportable business segments: (1) Engineered Products and (2) Aluminum Sheet Products. On April 1, 2014, we sold our interest in a limited liability company which held the assets of the Nichols Aluminum business (Nichols), the sole operating segment included in our Aluminum Sheet Products reportable segment, to Aleris International, Inc., a privately held, Delaware corporation which provides aluminum rolled products and extrusions, aluminum recycling and specification aluminum alloy production. We received proceeds of $110.0 million, subject to a working capital adjustment, resulting in a preliminary gain on the transaction of $24.6 million, net of related taxes of $15.1 million. We entered into a transition services agreement to provide certain administrative services to Nichols through May 31, 2014, including information technology support, benefit administration and payroll services. | ||||||||||||||||
Nichols represented a significant portion of our assets and operations. We accounted for this sale as a discontinued operation. We revised our financial statements and reclassified the assets and liabilities of Nichols as discontinued operations as of October 31, 2013, and removed the results of operations of Nichols from net income (loss) from continuing operations, and presented separately as income (loss) from discontinued operations, net of taxes, for each of the accompanying condensed consolidated statements of income (loss). | ||||||||||||||||
We have included cash held by Nichols as a component of current assets of discontinued operations for the accompanying condensed consolidated balance sheet at October 31, 2013, rather than including this amount as cash and cash equivalents of the consolidated entity at October 31, 2013. For cash flow statement presentation, the sources and uses of cash for Nichols are presented as operating, investing and financing cash flows, as applicable, combined with such cash flows for continuing operations, as permitted by U.S. GAAP. | ||||||||||||||||
We have historically purchased approximately $12.0 million of rolled aluminum product from Nichols annually. We expect to continue to purchase aluminum from Nichols in the normal course of business. We considered whether these aluminum purchases and the services anticipated under the transition services agreement constituted significant continuing involvement with Nichols. Since these purchases are in the normal course of business and the services provided are for a relatively short period and are customary for similar transactions, we determined that this involvement was not deemed significant and does not preclude accounting for the transaction as a discontinued operation. Our purchases of aluminum product from Nichols for the three- and six-month periods ended April 30, 2014 and 2013 were $3.3 million and $6.8 million, respectively, and $2.4 million and $7.4 million, respectively. | ||||||||||||||||
As of April 30, 2014, we recorded a receivable from Aleris International, Inc. of $3.6 million, of which $0.3 million represented a service fee pursuant to the transition services agreement, and $3.3 million represented reimbursable costs, primarily payroll funding. In addition, we recorded accrued liabilities of $4.2 million related to the transaction, a portion of which related to a property casualty claim resulting from a fire in November 2013, and an estimate of liability pursuant to the working capital adjustment expected to be settled during the third quarter of 2014. | ||||||||||||||||
In November 2013, Nichols experienced a fire at its Decatur, Alabama facility, which damaged a cold mill used to roll aluminum sheet to a desired thickness. The loss was insured, subject to a $0.5 million deductible. We capitalized $6.5 million to rebuild the asset, which was returned to service as of March 31, 2014. We incurred cost of $2.3 million associated with this loss, including an impairment of $0.5 million to retire the asset, moving costs, outside service costs, clean-up and the deductible. To date, we have received insurance proceeds of $1.4 million. We expect to receive total proceeds of approximately $8.1 million, resulting in an expected gain on involuntary conversion of $5.7 million. We have recorded a receivable of $0.9 million as of April 30, 2014, equal to the loss incurred to date (difference between the expense incurred of $2.3 million and the proceeds received of $1.4 million), as we believe it is probable and estimable that we will receive proceeds at least equal to our loss incurred. We estimate the remaining gain on involuntary conversion at $4.8 million. We expect to recognize this gain during the third quarter of 2014, when and to the extent that insurance proceeds are received, which will result in an increase in income from discontinued operations, net of tax. | ||||||||||||||||
The following table presents the assets and liabilities of Nichols as of October 31, 2013: | ||||||||||||||||
October 31, | ||||||||||||||||
2013 | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 2 | ||||||||||||||
Accounts receivable, net | 39,374 | |||||||||||||||
Inventories, net | 16,637 | |||||||||||||||
Income taxes receivable | 2,314 | |||||||||||||||
Deferred income taxes | 4,123 | |||||||||||||||
Prepaid and other current assets | 1,701 | |||||||||||||||
Current assets of discontinued operations | $ | 64,151 | ||||||||||||||
Non-current assets: | ||||||||||||||||
Property, plant and equipment, net | $ | 50,398 | ||||||||||||||
Deferred income taxes | 6,413 | |||||||||||||||
Other assets | 8,472 | |||||||||||||||
Non-current assets of discontinued operations | $ | 65,283 | ||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 39,367 | ||||||||||||||
Accrued liabilities | 9,975 | |||||||||||||||
Current maturities of long-term debt | 22 | |||||||||||||||
Current liabilities of discontinued operations | $ | 49,364 | ||||||||||||||
Non-current liabilities: | ||||||||||||||||
Long-term debt | $ | 51 | ||||||||||||||
Deferred pension and postretirement benefits | 233 | |||||||||||||||
Non-current environmental reserves | 9,255 | |||||||||||||||
Non-current liabilities of discontinued operations | $ | 9,539 | ||||||||||||||
The following table summarizes the operating results for Nichols for the three-and six-month periods ended April 30, 2014 and 2013: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 30, | April 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Net sales | $ | 63,306 | $ | 109,691 | $ | 142,797 | $ | 194,294 | ||||||||
Operating loss | (4,931 | ) | (768 | ) | (9,182 | ) | (5,425 | ) | ||||||||
Loss before income taxes, before gain on sale | (4,003 | ) | (768 | ) | (8,271 | ) | (5,443 | ) | ||||||||
Income tax benefit, before gain on sale | 1,584 | 283 | 3,163 | 2,010 | ||||||||||||
Gain on sale, net of tax of $15,065, $0, $15,065 and $0, respectively | 24,580 | — | 24,580 | — | ||||||||||||
Net income (loss) | $ | 22,161 | $ | (485 | ) | $ | 19,472 | $ | (3,433 | ) | ||||||
Basic earnings (loss) per common share | $ | 0.59 | $ | (0.01 | ) | $ | 0.53 | $ | (0.09 | ) | ||||||
Diluted earnings (loss) per common share | $ | 0.58 | $ | (0.01 | ) | $ | 0.52 | $ | (0.09 | ) | ||||||
Acquisitions
Acquisitions | 6 Months Ended | |||
Apr. 30, 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. | ||||
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) for the six months ended April 30, 2014. | ||||
Pro forma results of operations were not presented because this acquisition was not deemed to be material to our results of operations for the six months ended April 30, 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 is deductible for tax purposes. We believe that this acquisition expanded 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 six months ended April 30, 2013. Therefore, we have not presented pro forma results of operations. |
Inventories
Inventories | 6 Months Ended | |||||||
Apr. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
3. Inventories | ||||||||
Inventories consisted of the following at April 30, 2014 and October 31, 2013: | ||||||||
April 30, | October 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Raw materials | $ | 31,653 | $ | 26,201 | ||||
Finished goods and work in process | 27,446 | 19,767 | ||||||
Supplies and other | 999 | 751 | ||||||
Total | 60,098 | 46,719 | ||||||
Less: Inventory reserves | 5,112 | 5,040 | ||||||
Inventories, net | $ | 54,986 | $ | 41,679 | ||||
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 April 30, 2014 and October 31, 2013 were valued using the following costing methods: | ||||||||
April 30, | October 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
LIFO | $ | 4,316 | $ | 2,090 | ||||
FIFO | 50,670 | 39,589 | ||||||
Total | $ | 54,986 | $ | 41,679 | ||||
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- and six-month periods ended April 30, 2014 and 2013. | ||||||||
For inventories valued under the LIFO method, replacement cost exceeded the LIFO value by approximately $1.5 million as of April 30, 2014 and October 31, 2013. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 6 Months Ended | |||||||||||||||
Apr. 30, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Goodwill and Acquired Intangible Assets | ' | |||||||||||||||
4. Goodwill and Intangible Assets | ||||||||||||||||
Goodwill | ||||||||||||||||
The change in the carrying amount of goodwill for the six months ended April 30, 2014 was as follows: | ||||||||||||||||
Six Months Ended | ||||||||||||||||
30-Apr-14 | ||||||||||||||||
(In thousands) | ||||||||||||||||
Beginning balance as of November 1, 2013 | $ | 71,866 | ||||||||||||||
Foreign currency translation adjustment | 545 | |||||||||||||||
Balance as of the end of the period | $ | 72,411 | ||||||||||||||
Identifiable Intangible Assets | ||||||||||||||||
Amortizable intangible assets consisted of the following as of April 30, 2014 and October 31, 2013: | ||||||||||||||||
30-Apr-14 | 31-Oct-13 | |||||||||||||||
Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||
(In thousands) | ||||||||||||||||
Customer relationships | $ | 53,351 | $ | 17,747 | $ | 52,793 | $ | 15,630 | ||||||||
Trademarks and trade names | 44,910 | 19,033 | 44,576 | 17,498 | ||||||||||||
Patents and other technology | 25,460 | 12,345 | 25,390 | 11,319 | ||||||||||||
Other | 1,392 | 882 | 1,392 | 742 | ||||||||||||
Total | $ | 125,113 | $ | 50,007 | $ | 124,151 | $ | 45,189 | ||||||||
Included in intangible assets as of April 30, 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. | ||||||||||||||||
For the three- and six-month periods ended April 30, 2014 and 2013, we had aggregate amortization expense of $2.3 million and $4.6 million, respectively, and $2.2 million and $4.4 million, 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 six months) | $ | 4,560 | ||||||||||||||
2015 | 9,003 | |||||||||||||||
2016 | 8,732 | |||||||||||||||
2017 | 8,626 | |||||||||||||||
2018 | 8,371 | |||||||||||||||
Thereafter | 35,814 | |||||||||||||||
Total | $ | 75,106 | ||||||||||||||
Debt_and_Capital_Lease_Obligat
Debt and Capital Lease Obligations | 6 Months Ended | |||||||
Apr. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt and Capital Lease Obligations | ' | |||||||
5. Debt and Capital Lease Obligations | ||||||||
Debt consisted of the following at April 30, 2014 and October 31, 2013: | ||||||||
April 30, | October 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Revolving Credit Facility | $ | — | $ | — | ||||
City of Richmond, Kentucky Industrial Building Revenue Bonds | 600 | 700 | ||||||
Capital lease obligations | 171 | 163 | ||||||
Total debt | 771 | 863 | ||||||
Less: Current maturities of long-term debt | 178 | 162 | ||||||
Long-term debt | $ | 593 | $ | 701 | ||||
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 would 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 replaced 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 April 30, 2014, we were in compliance with the financial covenants set forth in the Credit Facility. | ||||||||
As of April 30, 2014, the amount available to us for use under the Credit Facility was limited to $143.0 million and we had outstanding letters of credit of $6.2 million. For the six-month period ended April 30, 2014, we did not borrow any amounts under the Credit Facility, and thus had no outstanding borrowings at April 30, 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 April 30, 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 | 6 Months Ended | |||||||||||||||
Apr. 30, 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- and six-month periods ended April 30, 2014 and 2013 was as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 30, | April 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Service cost | $ | 737 | $ | 1,003 | $ | 1,657 | $ | 1,910 | ||||||||
Interest cost | 269 | 200 | 532 | 394 | ||||||||||||
Expected return on plan assets | (438 | ) | (335 | ) | (861 | ) | (700 | ) | ||||||||
Amortization of net loss | — | 122 | — | 184 | ||||||||||||
Net periodic benefit cost | $ | 568 | $ | 990 | $ | 1,328 | $ | 1,788 | ||||||||
In February 2014, we contributed $1.1 million to fund our plan and currently expect to make additional contributions in September 2014. | ||||||||||||||||
Other Plans | ||||||||||||||||
We also have a supplemental benefit plan covering certain executive officers and a non-qualified deferred compensation plan covering members of the Board of Directors and certain key employees. As of April 30, 2014 and October 31, 2013, our liability under the supplemental benefit plan was approximately $1.8 million and $3.6 million, respectively, and under the deferred compensation plan was approximately $3.6 million and $6.7 million, respectively. In February 2014, we paid $1.7 million to our former Chairman, President and Chief Executive Officer, Mr. David Petratis pursuant to our supplemental employee retirement plan, and in January 2014, we distributed $3.3 million to Mr. Petratis, which represented his vested balances under our deferred compensation plan. |
Warranty_Obligations
Warranty Obligations | 6 Months Ended | |||
Apr. 30, 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: | ||||
Six Months Ended | ||||
April 30, 2014 | ||||
(In thousands) | ||||
Beginning balance as of November 1, 2013 | $ | 3,684 | ||
Provision for warranty expense | 490 | |||
Change in accrual for pre-existing warranties | (3,071 | ) | ||
Warranty costs paid | (251 | ) | ||
Total accrued warranty as of the end of the period | 852 | |||
Less: Current portion of accrued warranty | 398 | |||
Long-term portion of accrued warranty | $ | 454 | ||
Income_Taxes
Income Taxes | 6 Months Ended |
Apr. 30, 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 from continuing operations for the six months ended April 30, 2014 and 2013, were a benefit of 16.9% and 33.2%, respectively. The decrease in the 2014 benefit effective rate 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 first 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 $35.3 million. We will continue to evaluate our position throughout the year. We maintain a valuation allowance for certain state net operating losses which totaled $2.5 million at April 30, 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 April 30, 2014 is $13.3 million. Of this, $5.5 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 $12.5 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. | |
Our federal income tax returns for the tax years ended October 31, 2011 and 2012 are currently under examination by the Internal Revenue Service. |
Contingencies
Contingencies | 6 Months Ended |
Apr. 30, 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. | |
We are currently not subject to any remediation activities. Prior to April 1, 2014, we had remediation activities associated with one of our subsidiaries, Nichols Aluminum-Alabama, LLC, a component business unit of Nichols. As discussed in Note 1, "Nature of Operations and Basis of Presentation - Discontinued Operations", on April 1, 2014, we sold Nichols and the liabilities associated with this on-going remediation effort were assumed by Aleris International, Inc. | |
Litigation | |
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 | 6 Months Ended | |||||||||||||||||
Apr. 30, 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 have historically used foreign currency forwards and options, and aluminum swap contracts to mitigate or eliminate certain of those risks at our subsidiaries. We use foreign currency contracts 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. Historically, we have entered into swap contracts to minimize our exposure to aluminum commodity prices. Through the use of swap contracts, we attempt to protect ourselves from the effects of changing prices of aluminum on our cost of sales. To the extent that the raw material costs factored into the firm price sales commitments are matched with firm price raw material purchase commitments, changes in aluminum prices should have no effect. 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 in accordance with the provisions under the Accounting Standards Codification topic 815 "Derivatives and Hedging" (ASC 815). 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- and six-month periods ended April 30, 2014 and 2013 as follows (in thousands): | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
April 30, | April 30, | |||||||||||||||||
Location of Gain or (Loss): | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Other, net | Foreign currency derivatives | $ | (208 | ) | $ | 326 | $ | (94 | ) | $ | (382 | ) | ||||||
Cost of sales | Aluminum derivatives | $ | — | $ | (236 | ) | $ | — | $ | (244 | ) | |||||||
We have chosen not to offset any of our derivative instruments in accordance with the provisions of ASC 815. Therefore, the assets and liabilities are presented on a gross basis on our accompanying condensed consolidated balance sheets. | ||||||||||||||||||
The fair values of our outstanding derivative contracts as of April 30, 2014 and October 31, 2013 were as follows (in thousands): | ||||||||||||||||||
April 30, 2014 | October 31, 2013 | |||||||||||||||||
Prepaid and other current assets: | ||||||||||||||||||
Foreign currency derivatives | $ | — | $ | 164 | ||||||||||||||
Accrued liabilities: | ||||||||||||||||||
Foreign currency derivatives | 19 | 39 | ||||||||||||||||
Aluminum derivatives | $ | — | $ | 64 | ||||||||||||||
The following table summarizes the notional amounts and fair value of outstanding derivative contracts at April 30, 2014 and October 31, 2013 (in thousands): | ||||||||||||||||||
Notional as indicated | Fair Value in $ | |||||||||||||||||
April 30, | October 31, | April 30, | October 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Foreign currency derivatives: | ||||||||||||||||||
Sell EUR, buy USD | EUR | 4,136 | 7,258 | $ | (15 | ) | $ | 150 | ||||||||||
Sell CAD, buy USD | CAD | 344 | 615 | (3 | ) | (2 | ) | |||||||||||
Sell GBP, Buy USD | GBP | 100 | — | (1 | ) | — | ||||||||||||
Buy EUR, sell GBP | EUR | 43 | 967 | — | (12 | ) | ||||||||||||
Buy GBP, sell USD | GBP | — | 2,435 | — | (25 | ) | ||||||||||||
Sell EUR, buy GBP | EUR | — | 880 | — | 14 | |||||||||||||
Aluminum derivatives | LBS | — | 187 | $ | — | $ | (64 | ) | ||||||||||
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 | 6 Months Ended | |||||||||||||||||||||||||||||||
Apr. 30, 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): | ||||||||||||||||||||||||||||||||
April 30, 2014 | October 31, 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Short-term investments | $ | 69,972 | $ | — | $ | — | $ | 69,972 | $ | 42,639 | $ | — | $ | — | $ | 42,639 | ||||||||||||||||
Foreign currency derivatives | — | — | — | — | — | 164 | — | 164 | ||||||||||||||||||||||||
Total assets | $ | 69,972 | $ | — | $ | — | $ | 69,972 | $ | 42,639 | $ | 164 | $ | — | $ | 42,803 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Aluminum derivatives | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (64 | ) | $ | — | $ | (64 | ) | ||||||||||||||
Foreign currency derivatives | — | (19 | ) | — | (19 | ) | — | (39 | ) | — | (39 | ) | ||||||||||||||||||||
Total liabilities | $ | — | $ | (19 | ) | $ | — | $ | (19 | ) | $ | — | $ | (103 | ) | $ | — | $ | (103 | ) | ||||||||||||
We held short-term investments (with an original maturity of three months or less) in commercial paper at April 30, 2014. As of October 31, 2013, we had short-term investments in money market funds. We have included these investments as cash and cash equivalents in the accompanying condensed consolidated balance sheets. These investments 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. | ||||||||||||||||||||||||||||||||
As of April 30, 2014 and October 31, 2013, we had approximately $2.9 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 $0.8 million from October 31, 2013 to April 30, 2014 was due to an asset sale of $0.3 million and an asset impairment charge of $0.5 million associated with a facility in Barbourville, Kentucky. | ||||||||||||||||||||||||||||||||
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 April 30, 2014 and October 31, 2013 (Level 3 measurement). |
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | ||||||||||||
Apr. 30, 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. | |||||||||||||
The aggregate number of shares of common stock originally authorized for grant under the 2008 Plan was 2,900,000. At our annual shareholder meeting held in February 2011, the shareholders approved an amendment which increased the aggregate number of shares available for grant by 2,400,000 shares; and at our annual shareholder meeting held in February 2014, the shareholders approved an amendment which increased the aggregate number of shares available for grant under the 2008 Plan by an additional 2,350,000 shares. | |||||||||||||
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 six months ended April 30, 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 | |||||||||||
Cancelled | (3,900 | ) | 21.11 | ||||||||||
Vested | (30,700 | ) | 17.45 | ||||||||||
Non-vested at April 30, 2014 | 229,200 | $ | 17.46 | ||||||||||
The total weighted average grant-date fair value of restricted stock awards that vested during the six-month periods ended April 30, 2014 and 2013 was $0.5 million and $1.1 million, respectively. As of April 30, 2014, total unrecognized compensation cost related to unamortized restricted stock awards was $2.6 million. We expect to recognize this expense over the remaining weighted average period of 2.2 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 six-month periods ended April 30, 2014 and 2013. | |||||||||||||
Six Months Ended | |||||||||||||
April 30, | |||||||||||||
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 | $8.99 | |||||||||||
The following table summarizes our stock option activity for the six months ended April 30, 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 | (282,229 | ) | 10.21 | ||||||||||
Forfeited/Expired | (121,313 | ) | 18.15 | ||||||||||
Outstanding at April 30, 2014 | 2,629,034 | $ | 16.23 | 6.6 | $ | 7,832 | |||||||
Vested or expected to vest at April 30, 2014 | 2,587,069 | $ | 16.18 | 6.6 | $ | 7,786 | |||||||
Exercisable at April 30, 2014 | 1,919,186 | $ | 15.54 | 5.8 | $ | 6,767 | |||||||
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 six months ended April 30, 2014 and 2013, was $2.6 million and $0.4 million, respectively. The total fair value of stock options vested during the six months ended April 30, 2014 and 2013, was $3.0 million and $2.7 million, respectively. As of April 30, 2014, total unrecognized compensation cost related to stock options was $3.1 million. We expect to recognize this expense over the remaining weighted average period of 2.0 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 six months ended April 30, 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 | |||||||||||
Vested | (23,200 | ) | 18.05 | ||||||||||
Non-vested at April 30, 2014 | 83,500 | $ | 15.08 | ||||||||||
Cash used to settle restricted stock units during the six-month period ended April 30, 2014 was $0.5 million. | |||||||||||||
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 April 30, 2014, we have recorded $0.5 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. | |||||||||||||
Treasury Shares | |||||||||||||
Shares are generally issued from treasury stock at the time of grant of restricted stock awards and exercise of stock options. On the subsequent issuance of treasury shares, we record proceeds in excess of cost as an increase in additional paid in capital. | |||||||||||||
The following table summarizes the treasury stock activity during the six months ended April 30, 2014: | |||||||||||||
Six Months Ended | |||||||||||||
April 30, 2014 | |||||||||||||
Beginning balance as of November 1, 2013 | 488,385 | ||||||||||||
Restricted stock awards granted | (80,400 | ) | |||||||||||
Stock options exercised | (282,229 | ) | |||||||||||
Balance at end of period | 125,756 | ||||||||||||
Other_Income_Expense
Other Income (Expense) | 6 Months Ended | |||||||||||||||
Apr. 30, 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- and six-month periods ended April 30, 2014 and 2013: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 30, | April 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Foreign currency transaction gains (losses) | $ | 170 | $ | (331 | ) | $ | 66 | $ | 331 | |||||||
Foreign currency derivative gains (losses) | (208 | ) | 326 | (94 | ) | (382 | ) | |||||||||
Interest income | 16 | 14 | 22 | 34 | ||||||||||||
Other | — | — | 80 | (65 | ) | |||||||||||
Other income (expense) | $ | (22 | ) | $ | 9 | $ | 74 | $ | (82 | ) | ||||||
Segment_Information
Segment Information | 6 Months Ended | |||||||||||||||
Apr. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
14. Segment Information | ||||||||||||||||
We have four operating segments which we aggregate into one 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; (5) similar regulatory environment; and (6) converging long-term economic similarities. The primary market drivers of our business are residential remodeling and replacement activity (R&R) and new home construction. | ||||||||||||||||
Prior to April 1, 2014, we presented two reportable operating segments: (1) Engineered Products and (2) Aluminum Sheet Products. In addition, we recorded LIFO inventory adjustments, corporate office charges and inter-segment eliminations as Corporate & Other. On April 1, 2014, we sold Nichols, the sole operating segment included in our Aluminum Sheet Products reportable segment. To account for Nichols as a discontinued operation, we reclassified certain costs from Corporate & Other to Nichols, including a portion of the LIFO reserve and incurred but not reported workers compensation accruals, to properly reflect these direct expenses as a component of the disposal group. | ||||||||||||||||
The following table reconciles our segment presentation as previously reported in our Quarterly Report on Form 10-Q for the quarter ended April 30, 2013, to the current presentation. | ||||||||||||||||
Three Months Ended April 30, 2013 | As Previously Reported | Discontinued Operations | Reclassification | Current Presentation | ||||||||||||
Net Sales | ||||||||||||||||
Engineered Products | $ | 125,158 | $ | — | $ | (18 | ) | $ | 125,140 | |||||||
Aluminum Sheet Products | 109,691 | (109,691 | ) | — | — | |||||||||||
Inter-segment Eliminations | (2,391 | ) | 2,373 | 18 | — | |||||||||||
Consolidated | $ | 232,458 | $ | (107,318 | ) | $ | — | $ | 125,140 | |||||||
Operating Income (Loss): | ||||||||||||||||
Engineered Products | $ | 5,908 | $ | — | $ | (14,512 | ) | $ | (8,604 | ) | ||||||
Aluminum Sheet Products | (468 | ) | 468 | — | — | |||||||||||
Corporate & Other | (14,813 | ) | 301 | 14,512 | — | |||||||||||
Consolidated | $ | (9,373 | ) | $ | 769 | $ | — | $ | (8,604 | ) | ||||||
Six Months Ended April 30, 2013 | As Previously Reported | Discontinued Operations | Reclassification | Current Presentation | ||||||||||||
Net Sales | ||||||||||||||||
Engineered Products | $ | 231,277 | $ | — | $ | (18 | ) | $ | 231,259 | |||||||
Aluminum Sheet Products | 194,294 | (194,294 | ) | — | — | |||||||||||
Inter-segment Eliminations | (7,400 | ) | 7,382 | 18 | — | |||||||||||
Consolidated | $ | 418,171 | $ | (186,912 | ) | $ | — | $ | 231,259 | |||||||
Operating Income (Loss): | ||||||||||||||||
Engineered Products | $ | 8,741 | $ | — | $ | (26,375 | ) | $ | (17,634 | ) | ||||||
Aluminum Sheet Products | (4,698 | ) | 4,698 | — | — | |||||||||||
Corporate & Other | (27,101 | ) | 726 | 26,375 | — | |||||||||||
Consolidated | $ | (23,058 | ) | $ | 5,424 | $ | — | $ | (17,634 | ) | ||||||
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | ||||||||||
Apr. 30, 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 shares include 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 earnings per share for the three- and six-month periods ended April 30, 2014, were calculated as follows (in thousands, except per share data): | |||||||||||
Three Months Ended April 30, 2014 | |||||||||||
Net Income | Weighted Average Shares | Per Share | |||||||||
Basic earnings per common share | $ | 20,131 | 37,217 | $ | 0.54 | ||||||
Effect of dilutive securities: | |||||||||||
Stock options | — | 513 | |||||||||
Restricted stock awards | — | 108 | |||||||||
Diluted earnings per common share | $ | 20,131 | 37,838 | $ | 0.53 | ||||||
Six Months Ended April 30, 2014 | |||||||||||
Net Income | Weighted Average Shares | Per Share | |||||||||
Basic earnings per common share | $ | 16,231 | 37,108 | $ | 0.44 | ||||||
Effect of dilutive securities: | |||||||||||
Stock options | — | 522 | |||||||||
Restricted stock awards | — | 96 | |||||||||
Diluted earnings per common share | $ | 16,231 | 37,726 | $ | 0.43 | ||||||
Basic and diluted loss per share was $0.20 and $0.42 for the three- and six-month periods ended April 30, 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- and six-month periods ended April 30, 2013. During these periods, 389,440 and 491,260 of common stock equivalents, respectively, and 87,174 and 97,636 shares of restricted stock, respectively, were excluded from the computation of diluted earnings per share. | |||||||||||
For the three- and six-month period ended April 30, 2014 and 2013, there were no potentially dilutive contingent shares related to performance share awards. | |||||||||||
For the three- and six-month periods ended April 30, 2014 and 2013, we had 920,662 and 971,284 securities, respectively, and 1,232,748 and 706,574 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 | 6 Months Ended |
Apr. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
New Accounting Pronouncements | ' |
16. New Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers.” This guidance prescribes a methodology to determine when revenue is recognizable and constitutes a principles-based approach to revenue recognition based on the consideration to which the entity expects to be entitled in exchange for goods or services. In addition, this guidance requires additional disclosure in the notes to the financial statements with regard to the methodology applied. This pronouncement becomes effective for annual reporting periods beginning after December 15, 2016, and will essentially supersede and replace existing revenue recognition rules in U.S. GAAP, including industry-specific guidance. We expect to adopt this pronouncement in fiscal 2018, and we are currently evaluating the impact on our consolidated financial statements. | |
In April 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This new guidance clarifies the definition of a discontinued operation as a disposal of a component of any entity, or a group of such components, which represent a strategic shift that has or will have a major effect on an entity’s operations and financial results. This guidance should result in fewer applications of discontinued operations accounting treatment. However, if such accounting treatment is required, the guidance requires additional footnote disclosures with regard to the major classes of line items constituting pretax profit or loss of the discontinued operation, a reconciliation of the major classes of assets and liabilities of the discontinued operation, and additional disclosure with regard to cash flows of the discontinued operation. This guidance becomes effective for fiscal years beginning on or after December 15, 2014. We expect to adopt this guidance during fiscal 2016, and we are currently evaluating the impact on our consolidated financial statements. | |
In July 2013, the 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 | 6 Months Ended |
Apr. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
17. Subsequent Events | |
On May 22, 2014, we sold a facility in Barbourville, Kentucky, which had been held for sale since 2012, and was written down to fair market value of $0.5 million at April 30, 2014. We received sales proceeds of $0.4 million and realized a loss of $0.1 million in the third quarter. |
Nature_of_Operations_and_Basis1
Nature of Operations and Basis of Presentation (Tables) | 6 Months Ended | |||||||||||||||
Apr. 30, 2014 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||
Financial Information of Discontinued Operations | ' | |||||||||||||||
The following table presents the assets and liabilities of Nichols as of October 31, 2013: | ||||||||||||||||
October 31, | ||||||||||||||||
2013 | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 2 | ||||||||||||||
Accounts receivable, net | 39,374 | |||||||||||||||
Inventories, net | 16,637 | |||||||||||||||
Income taxes receivable | 2,314 | |||||||||||||||
Deferred income taxes | 4,123 | |||||||||||||||
Prepaid and other current assets | 1,701 | |||||||||||||||
Current assets of discontinued operations | $ | 64,151 | ||||||||||||||
Non-current assets: | ||||||||||||||||
Property, plant and equipment, net | $ | 50,398 | ||||||||||||||
Deferred income taxes | 6,413 | |||||||||||||||
Other assets | 8,472 | |||||||||||||||
Non-current assets of discontinued operations | $ | 65,283 | ||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 39,367 | ||||||||||||||
Accrued liabilities | 9,975 | |||||||||||||||
Current maturities of long-term debt | 22 | |||||||||||||||
Current liabilities of discontinued operations | $ | 49,364 | ||||||||||||||
Non-current liabilities: | ||||||||||||||||
Long-term debt | $ | 51 | ||||||||||||||
Deferred pension and postretirement benefits | 233 | |||||||||||||||
Non-current environmental reserves | 9,255 | |||||||||||||||
Non-current liabilities of discontinued operations | $ | 9,539 | ||||||||||||||
The following table summarizes the operating results for Nichols for the three-and six-month periods ended April 30, 2014 and 2013: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 30, | April 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Net sales | $ | 63,306 | $ | 109,691 | $ | 142,797 | $ | 194,294 | ||||||||
Operating loss | (4,931 | ) | (768 | ) | (9,182 | ) | (5,425 | ) | ||||||||
Loss before income taxes, before gain on sale | (4,003 | ) | (768 | ) | (8,271 | ) | (5,443 | ) | ||||||||
Income tax benefit, before gain on sale | 1,584 | 283 | 3,163 | 2,010 | ||||||||||||
Gain on sale, net of tax of $15,065, $0, $15,065 and $0, respectively | 24,580 | — | 24,580 | — | ||||||||||||
Net income (loss) | $ | 22,161 | $ | (485 | ) | $ | 19,472 | $ | (3,433 | ) | ||||||
Basic earnings (loss) per common share | $ | 0.59 | $ | (0.01 | ) | $ | 0.53 | $ | (0.09 | ) | ||||||
Diluted earnings (loss) per common share | $ | 0.58 | $ | (0.01 | ) | $ | 0.52 | $ | (0.09 | ) | ||||||
Acquisitions_Tables
Acquisitions (Tables) | 6 Months Ended | |||
Apr. 30, 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. 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 | ||
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 | ||
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||
Apr. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories consisted of the following at April 30, 2014 and October 31, 2013: | ||||||||
April 30, | October 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Raw materials | $ | 31,653 | $ | 26,201 | ||||
Finished goods and work in process | 27,446 | 19,767 | ||||||
Supplies and other | 999 | 751 | ||||||
Total | 60,098 | 46,719 | ||||||
Less: Inventory reserves | 5,112 | 5,040 | ||||||
Inventories, net | $ | 54,986 | $ | 41,679 | ||||
Values of Inventories | ' | |||||||
Our inventories at April 30, 2014 and October 31, 2013 were valued using the following costing methods: | ||||||||
April 30, | October 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
LIFO | $ | 4,316 | $ | 2,090 | ||||
FIFO | 50,670 | 39,589 | ||||||
Total | $ | 54,986 | $ | 41,679 | ||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 6 Months Ended | |||||||||||||||
Apr. 30, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Changes in the Carrying Amount of Goodwill | ' | |||||||||||||||
The change in the carrying amount of goodwill for the six months ended April 30, 2014 was as follows: | ||||||||||||||||
Six Months Ended | ||||||||||||||||
30-Apr-14 | ||||||||||||||||
(In thousands) | ||||||||||||||||
Beginning balance as of November 1, 2013 | $ | 71,866 | ||||||||||||||
Foreign currency translation adjustment | 545 | |||||||||||||||
Balance as of the end of the period | $ | 72,411 | ||||||||||||||
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | ' | |||||||||||||||
Amortizable intangible assets consisted of the following as of April 30, 2014 and October 31, 2013: | ||||||||||||||||
30-Apr-14 | 31-Oct-13 | |||||||||||||||
Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||
(In thousands) | ||||||||||||||||
Customer relationships | $ | 53,351 | $ | 17,747 | $ | 52,793 | $ | 15,630 | ||||||||
Trademarks and trade names | 44,910 | 19,033 | 44,576 | 17,498 | ||||||||||||
Patents and other technology | 25,460 | 12,345 | 25,390 | 11,319 | ||||||||||||
Other | 1,392 | 882 | 1,392 | 742 | ||||||||||||
Total | $ | 125,113 | $ | 50,007 | $ | 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 six months) | $ | 4,560 | ||||||||||||||
2015 | 9,003 | |||||||||||||||
2016 | 8,732 | |||||||||||||||
2017 | 8,626 | |||||||||||||||
2018 | 8,371 | |||||||||||||||
Thereafter | 35,814 | |||||||||||||||
Total | $ | 75,106 | ||||||||||||||
Debt_and_Capital_Lease_Obligat1
Debt and Capital Lease Obligations (Tables) | 6 Months Ended | |||||||
Apr. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt & Capital Lease Obligations | ' | |||||||
Debt consisted of the following at April 30, 2014 and October 31, 2013: | ||||||||
April 30, | October 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Revolving Credit Facility | $ | — | $ | — | ||||
City of Richmond, Kentucky Industrial Building Revenue Bonds | 600 | 700 | ||||||
Capital lease obligations | 171 | 163 | ||||||
Total debt | 771 | 863 | ||||||
Less: Current maturities of long-term debt | 178 | 162 | ||||||
Long-term debt | $ | 593 | $ | 701 | ||||
Retirement_Plans_Tables
Retirement Plans (Tables) | 6 Months Ended | |||||||||||||||
Apr. 30, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Net Periodic Pension Cost | ' | |||||||||||||||
The net periodic pension cost for this plan for the three- and six-month periods ended April 30, 2014 and 2013 was as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 30, | April 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Service cost | $ | 737 | $ | 1,003 | $ | 1,657 | $ | 1,910 | ||||||||
Interest cost | 269 | 200 | 532 | 394 | ||||||||||||
Expected return on plan assets | (438 | ) | (335 | ) | (861 | ) | (700 | ) | ||||||||
Amortization of net loss | — | 122 | — | 184 | ||||||||||||
Net periodic benefit cost | $ | 568 | $ | 990 | $ | 1,328 | $ | 1,788 | ||||||||
Warranty_Obligations_Tables
Warranty Obligations (Tables) | 6 Months Ended | |||
Apr. 30, 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: | ||||
Six Months Ended | ||||
April 30, 2014 | ||||
(In thousands) | ||||
Beginning balance as of November 1, 2013 | $ | 3,684 | ||
Provision for warranty expense | 490 | |||
Change in accrual for pre-existing warranties | (3,071 | ) | ||
Warranty costs paid | (251 | ) | ||
Total accrued warranty as of the end of the period | 852 | |||
Less: Current portion of accrued warranty | 398 | |||
Long-term portion of accrued warranty | $ | 454 | ||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 6 Months Ended | |||||||||||||||||
Apr. 30, 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 in accordance with the provisions under the Accounting Standards Codification topic 815 "Derivatives and Hedging" (ASC 815). 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- and six-month periods ended April 30, 2014 and 2013 as follows (in thousands): | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
April 30, | April 30, | |||||||||||||||||
Location of Gain or (Loss): | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Other, net | Foreign currency derivatives | $ | (208 | ) | $ | 326 | $ | (94 | ) | $ | (382 | ) | ||||||
Cost of sales | Aluminum derivatives | $ | — | $ | (236 | ) | $ | — | $ | (244 | ) | |||||||
We have chosen not to offset any of our derivative instruments in accordance with the provisions of ASC 815. Therefore, the assets and liabilities are presented on a gross basis on our accompanying condensed consolidated balance sheets. | ||||||||||||||||||
The fair values of our outstanding derivative contracts as of April 30, 2014 and October 31, 2013 were as follows (in thousands): | ||||||||||||||||||
April 30, 2014 | October 31, 2013 | |||||||||||||||||
Prepaid and other current assets: | ||||||||||||||||||
Foreign currency derivatives | $ | — | $ | 164 | ||||||||||||||
Accrued liabilities: | ||||||||||||||||||
Foreign currency derivatives | 19 | 39 | ||||||||||||||||
Aluminum derivatives | $ | — | $ | 64 | ||||||||||||||
Schedule of Notional Amounts of Oustanding Derivative Positions | ' | |||||||||||||||||
The following table summarizes the notional amounts and fair value of outstanding derivative contracts at April 30, 2014 and October 31, 2013 (in thousands): | ||||||||||||||||||
Notional as indicated | Fair Value in $ | |||||||||||||||||
April 30, | October 31, | April 30, | October 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Foreign currency derivatives: | ||||||||||||||||||
Sell EUR, buy USD | EUR | 4,136 | 7,258 | $ | (15 | ) | $ | 150 | ||||||||||
Sell CAD, buy USD | CAD | 344 | 615 | (3 | ) | (2 | ) | |||||||||||
Sell GBP, Buy USD | GBP | 100 | — | (1 | ) | — | ||||||||||||
Buy EUR, sell GBP | EUR | 43 | 967 | — | (12 | ) | ||||||||||||
Buy GBP, sell USD | GBP | — | 2,435 | — | (25 | ) | ||||||||||||
Sell EUR, buy GBP | EUR | — | 880 | — | 14 | |||||||||||||
Aluminum derivatives | LBS | — | 187 | $ | — | $ | (64 | ) | ||||||||||
Fair_Value_Measurement_of_Asse1
Fair Value Measurement of Assets and Liabilities (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||
Apr. 30, 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): | ||||||||||||||||||||||||||||||||
April 30, 2014 | October 31, 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Short-term investments | $ | 69,972 | $ | — | $ | — | $ | 69,972 | $ | 42,639 | $ | — | $ | — | $ | 42,639 | ||||||||||||||||
Foreign currency derivatives | — | — | — | — | — | 164 | — | 164 | ||||||||||||||||||||||||
Total assets | $ | 69,972 | $ | — | $ | — | $ | 69,972 | $ | 42,639 | $ | 164 | $ | — | $ | 42,803 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Aluminum derivatives | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (64 | ) | $ | — | $ | (64 | ) | ||||||||||||||
Foreign currency derivatives | — | (19 | ) | — | (19 | ) | — | (39 | ) | — | (39 | ) | ||||||||||||||||||||
Total liabilities | $ | — | $ | (19 | ) | $ | — | $ | (19 | ) | $ | — | $ | (103 | ) | $ | — | $ | (103 | ) | ||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | ||||||||||||
Apr. 30, 2014 | |||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||
Schedule of Nonvested Restricted Share Activity | ' | ||||||||||||
A summary of non-vested restricted stock awards activity during the six months ended April 30, 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 | |||||||||||
Cancelled | (3,900 | ) | 21.11 | ||||||||||
Vested | (30,700 | ) | 17.45 | ||||||||||
Non-vested at April 30, 2014 | 229,200 | $ | 17.46 | ||||||||||
Schedule of Valuation Assumptions for Stock Options | ' | ||||||||||||
The following table provides a summary of assumptions used to estimate the fair value of our stock options issued during the six-month periods ended April 30, 2014 and 2013. | |||||||||||||
Six Months Ended | |||||||||||||
April 30, | |||||||||||||
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 | $8.99 | |||||||||||
Schedule of Stock Option Activity | ' | ||||||||||||
The following table summarizes our stock option activity for the six months ended April 30, 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 | (282,229 | ) | 10.21 | ||||||||||
Forfeited/Expired | (121,313 | ) | 18.15 | ||||||||||
Outstanding at April 30, 2014 | 2,629,034 | $ | 16.23 | 6.6 | $ | 7,832 | |||||||
Vested or expected to vest at April 30, 2014 | 2,587,069 | $ | 16.18 | 6.6 | $ | 7,786 | |||||||
Exercisable at April 30, 2014 | 1,919,186 | $ | 15.54 | 5.8 | $ | 6,767 | |||||||
Schedule of Restricted Stock Units Activity | ' | ||||||||||||
The following table summarizes non-vested restricted stock unit activity during the six months ended April 30, 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 | |||||||||||
Vested | (23,200 | ) | 18.05 | ||||||||||
Non-vested at April 30, 2014 | 83,500 | $ | 15.08 | ||||||||||
Treasury Stock Activity | ' | ||||||||||||
The following table summarizes the treasury stock activity during the six months ended April 30, 2014: | |||||||||||||
Six Months Ended | |||||||||||||
April 30, 2014 | |||||||||||||
Beginning balance as of November 1, 2013 | 488,385 | ||||||||||||
Restricted stock awards granted | (80,400 | ) | |||||||||||
Stock options exercised | (282,229 | ) | |||||||||||
Balance at end of period | 125,756 | ||||||||||||
Other_Income_Expense_Tables
Other Income (Expense) (Tables) | 6 Months Ended | |||||||||||||||
Apr. 30, 2014 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
Schedule of Other Non-operating 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- and six-month periods ended April 30, 2014 and 2013: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 30, | April 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Foreign currency transaction gains (losses) | $ | 170 | $ | (331 | ) | $ | 66 | $ | 331 | |||||||
Foreign currency derivative gains (losses) | (208 | ) | 326 | (94 | ) | (382 | ) | |||||||||
Interest income | 16 | 14 | 22 | 34 | ||||||||||||
Other | — | — | 80 | (65 | ) | |||||||||||
Other income (expense) | $ | (22 | ) | $ | 9 | $ | 74 | $ | (82 | ) | ||||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | |||||||||||||||
Apr. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
The following table reconciles our segment presentation as previously reported in our Quarterly Report on Form 10-Q for the quarter ended April 30, 2013, to the current presentation. | ||||||||||||||||
Three Months Ended April 30, 2013 | As Previously Reported | Discontinued Operations | Reclassification | Current Presentation | ||||||||||||
Net Sales | ||||||||||||||||
Engineered Products | $ | 125,158 | $ | — | $ | (18 | ) | $ | 125,140 | |||||||
Aluminum Sheet Products | 109,691 | (109,691 | ) | — | — | |||||||||||
Inter-segment Eliminations | (2,391 | ) | 2,373 | 18 | — | |||||||||||
Consolidated | $ | 232,458 | $ | (107,318 | ) | $ | — | $ | 125,140 | |||||||
Operating Income (Loss): | ||||||||||||||||
Engineered Products | $ | 5,908 | $ | — | $ | (14,512 | ) | $ | (8,604 | ) | ||||||
Aluminum Sheet Products | (468 | ) | 468 | — | — | |||||||||||
Corporate & Other | (14,813 | ) | 301 | 14,512 | — | |||||||||||
Consolidated | $ | (9,373 | ) | $ | 769 | $ | — | $ | (8,604 | ) | ||||||
Six Months Ended April 30, 2013 | As Previously Reported | Discontinued Operations | Reclassification | Current Presentation | ||||||||||||
Net Sales | ||||||||||||||||
Engineered Products | $ | 231,277 | $ | — | $ | (18 | ) | $ | 231,259 | |||||||
Aluminum Sheet Products | 194,294 | (194,294 | ) | — | — | |||||||||||
Inter-segment Eliminations | (7,400 | ) | 7,382 | 18 | — | |||||||||||
Consolidated | $ | 418,171 | $ | (186,912 | ) | $ | — | $ | 231,259 | |||||||
Operating Income (Loss): | ||||||||||||||||
Engineered Products | $ | 8,741 | $ | — | $ | (26,375 | ) | $ | (17,634 | ) | ||||||
Aluminum Sheet Products | (4,698 | ) | 4,698 | — | — | |||||||||||
Corporate & Other | (27,101 | ) | 726 | 26,375 | — | |||||||||||
Consolidated | $ | (23,058 | ) | $ | 5,424 | $ | — | $ | (17,634 | ) | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | ||||||||||
Apr. 30, 2014 | |||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||
Earnings Per Share, Basic and Diluted | ' | ||||||||||
Basic and diluted earnings per share for the three- and six-month periods ended April 30, 2014, were calculated as follows (in thousands, except per share data): | |||||||||||
Three Months Ended April 30, 2014 | |||||||||||
Net Income | Weighted Average Shares | Per Share | |||||||||
Basic earnings per common share | $ | 20,131 | 37,217 | $ | 0.54 | ||||||
Effect of dilutive securities: | |||||||||||
Stock options | — | 513 | |||||||||
Restricted stock awards | — | 108 | |||||||||
Diluted earnings per common share | $ | 20,131 | 37,838 | $ | 0.53 | ||||||
Six Months Ended April 30, 2014 | |||||||||||
Net Income | Weighted Average Shares | Per Share | |||||||||
Basic earnings per common share | $ | 16,231 | 37,108 | $ | 0.44 | ||||||
Effect of dilutive securities: | |||||||||||
Stock options | — | 522 | |||||||||
Restricted stock awards | — | 96 | |||||||||
Diluted earnings per common share | $ | 16,231 | 37,726 | $ | 0.43 | ||||||
Nature_of_Operations_and_Basis2
Nature of Operations and Basis of Presentation (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Oct. 31, 2013 | |
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' | $2,000 |
Accounts receivable, net | ' | ' | ' | ' | 39,374,000 |
Inventories, net | ' | ' | ' | ' | 16,637,000 |
Income tax receivable | ' | ' | ' | ' | 2,314,000 |
Deferred income taxes | ' | ' | ' | ' | 4,123,000 |
Prepaid and other current assets | ' | ' | ' | ' | 1,701,000 |
Current assets of discontinued operations | 0 | ' | 0 | ' | 64,151,000 |
Property, plant, and equipment, net | ' | ' | ' | ' | 50,398,000 |
Deferred income taxes | ' | ' | ' | ' | 6,413,000 |
Other assets | ' | ' | ' | ' | 8,472,000 |
Non-current assets of discontinued operations | 0 | ' | 0 | ' | 65,283,000 |
Accounts payable | ' | ' | ' | ' | 39,367,000 |
Accrued liabilities | ' | ' | ' | ' | 9,975,000 |
Current maturities of long-term debt | ' | ' | ' | ' | 22,000 |
Current liabilities of discontinued operations | 0 | ' | 0 | ' | 49,364,000 |
Long-term debt | ' | ' | ' | ' | 51,000 |
Deferred pension and postretirement benefits | ' | ' | ' | ' | 233,000 |
Non-current environmental reserves | ' | ' | ' | ' | 9,255,000 |
Non-current liabilities of discontinued operations | 0 | ' | 0 | ' | 9,539,000 |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ' | ' | ' |
Net sales | 63,306,000 | 109,691,000 | 142,797,000 | 194,294,000 | ' |
Operating income (loss) | -4,931,000 | -768,000 | -9,182,000 | -5,425,000 | ' |
Loss before income taxes, before gain on sale | -4,003,000 | -768,000 | -8,271,000 | -5,443,000 | ' |
Income tax benefit, before gain on sale | 1,584,000 | 283,000 | 3,163,000 | 2,010,000 | ' |
Gain on sale, net of tax of $15,065, $0, $15,065 and $0, respectively | 24,580,000 | 0 | 24,580,000 | 0 | ' |
Net income (loss) | 22,161,000 | -485,000 | 19,472,000 | -3,433,000 | ' |
Basic earnings (loss) per common share | $0.59 | ($0.01) | $0.53 | ($0.09) | ' |
Diluted earnings (loss) per common share | $0.58 | ($0.01) | $0.52 | ($0.09) | ' |
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | ' | ' | ' | ' | ' |
Proceeds from sale of Nichols | ' | ' | 110,000,000 | 0 | ' |
Tax effect on gain on sale | ' | ' | 15,065,000 | ' | ' |
Historically purchased from Nichols | ' | ' | 12,000,000 | ' | ' |
Purchases of aluminum product from Nichols | 3,300,000 | 2,400,000 | 6,800,000 | 7,400,000 | ' |
Total receivables from Aleris, related to sale of Nichols | 3,600,000 | ' | 3,600,000 | ' | ' |
Service fee related to sale of Nichols transaction, receivable from Aleris | 300,000 | ' | 300,000 | ' | ' |
Reimbursement for payroll funding from Aleris, related to sale of Nichols | 3,300,000 | ' | 3,300,000 | ' | ' |
Accrued liabilities recorded related to sale of Nichols | 4,200,000 | ' | 4,200,000 | ' | ' |
Insurance deductible related to fire at Nichols | ' | ' | 500,000 | ' | ' |
Capitalized amount to rebuild the asset, related to fire at Nichols | 6,500,000 | ' | 6,500,000 | ' | ' |
Costs incurred related to fire loss at Nichols | ' | ' | 2,300,000 | ' | ' |
Impairment charge recognized related to fire loss at Nichols | ' | ' | 500,000 | ' | ' |
Insurance proceeds received related to fire at Nichols | ' | ' | 1,400,000 | ' | ' |
Insurance proceeds expected to receive related to fire at Nichols | 8,100,000 | ' | 8,100,000 | ' | ' |
Gain on involuntary conversion related to fire at Nichols | ' | ' | 5,700,000 | ' | ' |
Insurance proceeds receivable related to fire at Nichols | 900,000 | ' | 900,000 | ' | ' |
Remaining gain on involuntary conversion related to fire at Nichols | $4,800,000 | ' | $4,800,000 | ' | ' |
Acquisitions_Detail
Acquisitions (Detail) (USD $) | 6 Months Ended | 6 Months Ended | |||
Apr. 30, 2013 | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Oct. 31, 2013 | |
Greenville | 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 | ' | 72,411,000 | 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 | 22,449,000 | ' | ' | 5,161,000 | ' |
Gain recognized on bargain purchase | ' | ' | ' | 80,000 | ' |
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 $) | Apr. 30, 2014 | Oct. 31, 2013 |
Inventory, Raw Materials and Supplies, Net of Reserves [Abstract] | ' | ' |
Raw materials | $31,653,000 | $26,201,000 |
Finished goods and work in process | 27,446,000 | 19,767,000 |
Supplies and other | 999,000 | 751,000 |
Inventory, gross | 60,098,000 | 46,719,000 |
Inventory reserves | 5,112,000 | 5,040,000 |
Inventories, net | 54,986,000 | 41,679,000 |
Inventory, Net [Abstract] | ' | ' |
LIFO | 4,316,000 | 2,090,000 |
FIFO | 50,670,000 | 39,589,000 |
Inventories, net | 54,986,000 | 41,679,000 |
Excess of replacement cost over LIFO value | $1,500,000 | $1,500,000 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Oct. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' | ' |
Intangible assets amortization expense | $2,300,000 | $2,200,000 | $4,600,000 | $4,400,000 | ' |
Goodwill [Roll Forward] | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | 71,866,000 | ' | ' |
Foreign currency translation adjustment | ' | ' | 545,000 | ' | ' |
Ending balance | 72,411,000 | ' | 72,411,000 | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross carrying amount | 125,113,000 | ' | 125,113,000 | ' | 124,151,000 |
Accumulated amortization | -50,007,000 | ' | -50,007,000 | ' | -45,189,000 |
Customer relationships related to acquired Greenville facility | 300,000 | ' | 300,000 | ' | ' |
Useful life of customer relationships related to acquired Greenville facility | ' | ' | '5 years | ' | ' |
Estimated Amortization Expense | ' | ' | ' | ' | ' |
2014 (remaining six months) | 4,560,000 | ' | 4,560,000 | ' | ' |
2015 | 9,003,000 | ' | 9,003,000 | ' | ' |
2016 | 8,732,000 | ' | 8,732,000 | ' | ' |
2017 | 8,626,000 | ' | 8,626,000 | ' | ' |
2018 | 8,371,000 | ' | 8,371,000 | ' | ' |
Thereafter | 35,814,000 | ' | 35,814,000 | ' | ' |
Intangible assets, net | 75,106,000 | ' | 75,106,000 | ' | 78,962,000 |
Customer relationships | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross carrying amount | 53,351,000 | ' | 53,351,000 | ' | 52,793,000 |
Accumulated amortization | -17,747,000 | ' | -17,747,000 | ' | -15,630,000 |
Trademarks and trade names | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross carrying amount | 44,910,000 | ' | 44,910,000 | ' | 44,576,000 |
Accumulated amortization | -19,033,000 | ' | -19,033,000 | ' | -17,498,000 |
Patents and other technology | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross carrying amount | 25,460,000 | ' | 25,460,000 | ' | 25,390,000 |
Accumulated amortization | -12,345,000 | ' | -12,345,000 | ' | -11,319,000 |
Other | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Gross carrying amount | 1,392,000 | ' | 1,392,000 | ' | 1,392,000 |
Accumulated amortization | ($882,000) | ' | ($882,000) | ' | ($742,000) |
Debt_and_Capital_Lease_Obligat2
Debt and Capital Lease Obligations (Detail) (USD $) | Apr. 30, 2014 | Oct. 31, 2013 |
Debt Disclosure [Line Items] | ' | ' |
Total debt | $771,000 | $863,000 |
Less maturities due within one year | 178,000 | 162,000 |
Long-term debt | 593,000 | 701,000 |
Debt Disclosure [Abstract] | ' | ' |
Credit Facility, commitments increase limit | 100,000,000 | ' |
Credit facility, total commitments limit | 250,000,000 | ' |
Credit Facility, amount available | 143,000,000 | 139,000,000 |
Letters of credit, outstanding | 6,200,000 | 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 | 600,000 | 700,000 |
Capital Lease Obligations | ' | ' |
Debt Disclosure [Line Items] | ' | ' |
Total debt | 171,000 | 163,000 |
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 | 6 Months Ended | |||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Oct. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' | ' | ' |
Defined benefit plan, contributions by employer | ' | ' | $1,100,000 | ' | ' |
Deferred compensation liability | 3,600,000 | ' | 3,600,000 | ' | 6,700,000 |
Payment of vested balance under deferred compensation plan | 3,300,000 | ' | 3,300,000 | ' | ' |
Supplemental benefit plan liability | 1,800,000 | ' | 1,800,000 | ' | 3,600,000 |
Payment of vested balance under supplemental benefit plan | 1,700,000 | ' | 1,700,000 | ' | ' |
Net periodic benefit cost: | ' | ' | ' | ' | ' |
Service cost | 737,000 | 1,003,000 | 1,657,000 | 1,910,000 | ' |
Interest cost | 269,000 | 200,000 | 532,000 | 394,000 | ' |
Expected return on plan assets | -438,000 | -335,000 | -861,000 | -700,000 | ' |
Amortization of net loss | 0 | 122,000 | 0 | 184,000 | ' |
Net periodic benefit cost | $568,000 | $990,000 | $1,328,000 | $1,788,000 | ' |
Warranty_Obligations_Detail
Warranty Obligations (Detail) (USD $) | 6 Months Ended |
Apr. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Accrued warranty at beginning of period | $3,684,000 |
Provision for warranty expense | 490,000 |
Change in accrual for pre-existing warranties | -3,071,000 |
Warranty costs paid | -251,000 |
Accrued warranty at end of period | 852,000 |
Current accrued warranty | 398,000 |
Long-term accrued warranty | 454,000 |
Reduction in warranty accrual related to Insulating Glass business | $2,800,000 |
Income_Taxes_Detail
Income Taxes (Detail) (USD $) | 6 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Oct. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Estimated annual effective tax rate | 16.90% | 33.20% | ' |
Deferred tax assets | $35,300,000 | ' | ' |
Valuation allowance | 2,500,000 | ' | ' |
Unrecognized tax benefits | 13,300,000 | ' | ' |
Liability for uncertain tax positions | 5,481,000 | ' | 5,396,000 |
Uncertain tax position in non-current deferred taxes | 7,800,000 | ' | ' |
Recognition not affect annual effective tax rate | 12,500,000 | ' | ' |
Possible change in uncertain tax benefit within the next year | $2,000,000 | ' | ' |
Derivative_Instruments_Detail
Derivative Instruments (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Oct. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Foreign currency derivatives | ($208) | $326 | ($94) | ($382) | ' |
Derivatives [Line Items] | ' | ' | ' | ' | ' |
Foreign currency derivatives, asset | 0 | ' | 0 | ' | 164 |
Aluminum derivatives, liability | 0 | ' | 0 | ' | -64 |
Foreign currency derivatives, liability | -19 | ' | -19 | ' | -39 |
Sell EUR | ' | ' | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' |
Derivatives, notional amount | 4,136 | ' | 4,136 | ' | 7,258 |
Foreign currency derivatives, fair value | -15 | ' | -15 | ' | 150 |
Buy GBP | ' | ' | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' |
Derivatives, notional amount | 0 | ' | 0 | ' | 2,435 |
Foreign currency derivatives, fair value | 0 | ' | 0 | ' | -25 |
Sell CAD | ' | ' | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' |
Derivatives, notional amount | 344 | ' | 344 | ' | 615 |
Foreign currency derivatives, fair value | -3 | ' | -3 | ' | -2 |
Sell GBP | ' | ' | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' |
Derivatives, notional amount | 100 | ' | 100 | ' | 0 |
Foreign currency derivatives, fair value | -1 | ' | -1 | ' | 0 |
Buy EUR, sell GBP | ' | ' | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' |
Derivatives, notional amount | 43 | ' | 43 | ' | 967 |
Foreign currency derivatives, fair value | 0 | ' | 0 | ' | -12 |
Sell EUR, buy GBP | ' | ' | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' |
Derivatives, notional amount | 0 | ' | 0 | ' | 880 |
Foreign currency derivatives, fair value | 0 | ' | 0 | ' | 14 |
Aluminum Swap Contracts | ' | ' | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' |
Derivatives, notional amount | 0 | ' | 0 | ' | 187 |
Aluminum derivatives, fair value | 0 | ' | 0 | ' | -64 |
Prepaid and Other Current Assets | ' | ' | ' | ' | ' |
Derivatives [Line Items] | ' | ' | ' | ' | ' |
Foreign currency derivatives, asset | 0 | ' | 0 | ' | 164 |
Accrued Liabilities | ' | ' | ' | ' | ' |
Derivatives [Line Items] | ' | ' | ' | ' | ' |
Aluminum derivatives, liability | 0 | ' | 0 | ' | 64 |
Foreign currency derivatives, liability | 19 | ' | 19 | ' | 39 |
Other Non Operating Income (Loss) | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Foreign currency derivatives | -208 | 326 | -94 | -382 | ' |
Cost of Sales | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Aluminum derivatives | $0 | ($236) | $0 | ($244) | ' |
Fair_Value_Measurement_of_Asse2
Fair Value Measurement of Assets and Liabilities (Details) (USD $) | 3 Months Ended | 6 Months Ended | |
Jan. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Short-term investments | ' | $69,972,000 | $42,639,000 |
Foreign currency derivatives, asset | ' | 0 | 164,000 |
Total assets | ' | 69,972,000 | 42,803,000 |
Aluminum derivatives, liability | ' | 0 | -64,000 |
Foreign currency derivatives, liability | ' | -19,000 | -39,000 |
Total liabilities | ' | -19,000 | -103,000 |
Property, plant and equipment at fair value (non-recurring) | 2,900,000 | ' | 3,700,000 |
Decrease in value of property, plant & equipment | 800,000 | ' | ' |
Reduction due to sale of an asset | ' | 300,000 | ' |
Asset impairment charge | ' | 500,000 | ' |
Fair Value, Inputs, Level 1 | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Short-term investments | ' | 69,972,000 | 42,639,000 |
Total assets | ' | 69,972,000 | 42,639,000 |
Fair Value, Inputs, Level 2 | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Foreign currency derivatives, asset | ' | 0 | 164,000 |
Total assets | ' | 0 | 164,000 |
Aluminum derivatives, liability | ' | 0 | -64,000 |
Foreign currency derivatives, liability | ' | -19,000 | -39,000 |
Total liabilities | ' | ($19,000) | ($103,000) |
Stock_Based_Compensation_Detai
Stock Based Compensation (Detail) (USD $) | 6 Months Ended | |
Apr. 30, 2014 | Apr. 30, 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 | $8.99 |
Stock Options, [Roll Forward] | ' | ' |
Outstanding at beginning of period | 2,875,276 | ' |
Granted | 157,300 | ' |
Exercised | -282,229 | ' |
Cancelled/Expired | -121,313 | ' |
Outstanding at end of period | 2,629,034 | ' |
Vested or expected to vest at end of period | 2,587,069 | ' |
Exercisable at end of period | 1,919,186 | ' |
Weighted Average Exercise Price Per Share | ' | ' |
Outstanding at beginning of period | $15.64 | ' |
Granted | $17.64 | ' |
Exercised | $10.21 | ' |
Cancelled/Expired | $18.15 | ' |
Outstanding at end of period | $16.23 | ' |
Vested or expected to vest at end of period | $16.18 | ' |
Exercisable at end of period | $15.54 | ' |
Weighted Average Remaining Contractual Life | ' | ' |
Outstanding at end of period | '6 years 6 months 24 days | ' |
Vested or expected to vest at end of period | '6 years 7 months | ' |
Exercisable at end of period | '5 years 10 months | ' |
Aggregate Intrinsic Value | ' | ' |
Outstanding at end of period | $7,832,000 | ' |
Vested or expected to vest at end of period | 7,786,000 | ' |
Exercisable at end of period | 6,767,000 | ' |
Additional Disclosures [Abstract] | ' | ' |
Number of shares authorized, originally | 2,900,000 | ' |
Cash used to settle restricted stock units | 500,000 | ' |
Treasury Stock [Abstract] | ' | ' |
Treasury stock shares, balance | 488,385 | ' |
Treasury stock, shares, balance | 125,756 | ' |
Restricted Stock Awards (RSAs) | ' | ' |
Number of Shares | ' | ' |
Non-vested at beginning of the period | 183,400 | ' |
Granted | 80,400 | ' |
Cancelled | -3,900 | ' |
Vested | -30,700 | ' |
Non-vested at end of the period | 229,200 | ' |
Weighted Average Grant Date Fair Value Per Share | ' | ' |
Non-vested at beginning of the period | $17.46 | ' |
Granted | $17.63 | ' |
Cancelled | $21.11 | ' |
Vested | $17.45 | ' |
Non-vested at end of the period | $17.46 | ' |
Additional Disclosures [Abstract] | ' | ' |
Vesting period | '3 years | ' |
Fair value of restricted stock awards vested | 500,000 | 1,100,000 |
Unrecognized compensation cost - non vested restricted stock awards | 2,600,000 | ' |
Weighted-average period over which unrecognized cost is expected to be recognized | '2 years 2 months | ' |
Treasury Stock [Abstract] | ' | ' |
Shares, Issued | -80,400 | ' |
Stock Options | ' | ' |
Additional Disclosures [Abstract] | ' | ' |
Vesting period | '3 years | ' |
Weighted-average period over which unrecognized cost is expected to be recognized | '2 years 0 months | ' |
Total intrinsic value of options exercised | 2,600,000 | 400,000 |
Fair value of stock options vested | 3,000,000 | 2,700,000 |
Unrecognized compensation cost - non vested stock options | 3,100,000 | ' |
Treasury Stock [Abstract] | ' | ' |
Shares, Issued | -282,229 | ' |
Restricted Stock Units (RSUs) | ' | ' |
Number of Shares | ' | ' |
Non-vested at beginning of the period | 101,000 | ' |
Granted | 5,700 | ' |
Vested | -23,200 | ' |
Non-vested at end of the period | 83,500 | ' |
Weighted Average Grant Date Fair Value Per Share | ' | ' |
Non-vested at beginning of the period | $15.62 | ' |
Granted | $17.63 | ' |
Vested | $18.05 | ' |
Non-vested at end of the period | $15.08 | ' |
Additional Disclosures [Abstract] | ' | ' |
Vesting period | '3 years | ' |
Performance Shares | ' | ' |
Additional 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 | $500,000 | ' |
Stockholders' Meeting Held in 2011 | ' | ' |
Additional Disclosures [Abstract] | ' | ' |
Number of additional shares authorized | 2,400,000 | ' |
Stockholders' Meeting Held in 2014 | ' | ' |
Additional Disclosures [Abstract] | ' | ' |
Number of additional shares authorized | 2,350,000 | ' |
Other_Income_Expense_Detail
Other Income (Expense) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Other Income and Expenses [Abstract] | ' | ' | ' | ' |
Foreign currency transaction gains (losses) | $170 | ($331) | $66 | $331 |
Foreign currency derivative gains (losses) | 208 | -326 | 94 | 382 |
Interest income | 16 | 14 | 22 | 34 |
Other | 0 | 0 | 80 | -65 |
Other income (expense) | ($22) | $9 | $74 | ($82) |
Segment_Information_Detail
Segment Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income (loss) | ($2,828) | ($8,604) | ($3,689) | ($17,634) |
As Previously Reported | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | ' | 232,458 | ' | 418,171 |
Operating income (loss) | ' | -9,373 | ' | -23,058 |
Discontinued Operations | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | ' | -107,318 | ' | -186,912 |
Operating income (loss) | ' | 769 | ' | 5,424 |
Reclassification | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | ' | 0 | ' | 0 |
Operating income (loss) | ' | 0 | ' | 0 |
Current Presentation | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | ' | 125,140 | ' | 231,259 |
Operating income (loss) | ' | -8,604 | ' | -17,634 |
Engineered Products | As Previously Reported | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | ' | 125,158 | ' | 231,277 |
Operating income (loss) | ' | 5,908 | ' | 8,741 |
Engineered Products | Discontinued Operations | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | ' | 0 | ' | 0 |
Operating income (loss) | ' | 0 | ' | 0 |
Engineered Products | Reclassification | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | ' | -18 | ' | -18 |
Operating income (loss) | ' | -14,512 | ' | -26,375 |
Engineered Products | Current Presentation | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | ' | 125,140 | ' | 231,259 |
Operating income (loss) | ' | -8,604 | ' | -17,634 |
Aluminum Sheet Products | As Previously Reported | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | ' | 109,691 | ' | 194,294 |
Operating income (loss) | ' | -468 | ' | -4,698 |
Aluminum Sheet Products | Discontinued Operations | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | ' | -109,691 | ' | -194,294 |
Operating income (loss) | ' | 468 | ' | 4,698 |
Aluminum Sheet Products | Reclassification | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | ' | 0 | ' | 0 |
Operating income (loss) | ' | 0 | ' | 0 |
Aluminum Sheet Products | Current Presentation | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | ' | 0 | ' | 0 |
Operating income (loss) | ' | 0 | ' | 0 |
Corporate & Other | As Previously Reported | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | ' | -2,391 | ' | -7,400 |
Operating income (loss) | ' | -14,813 | ' | -27,101 |
Corporate & Other | Discontinued Operations | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | ' | 2,373 | ' | 7,382 |
Operating income (loss) | ' | 301 | ' | 726 |
Corporate & Other | Reclassification | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | ' | 18 | ' | 18 |
Operating income (loss) | ' | 14,512 | ' | 26,375 |
Corporate & Other | Current Presentation | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | ' | 0 | ' | 0 |
Operating income (loss) | ' | $0 | ' | $0 |
Earnings_Per_Share_Detail
Earnings Per Share (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Earnings Per Share Disclosure [Line Items] | ' | ' | ' | ' |
Net income (loss) | $20,131 | ($7,348) | $16,231 | ($15,466) |
Weighted average number of shares outstanding, basic | 37,217,000 | 36,850,000 | 37,108,000 | 36,830,000 |
Weighted average number of shares outstanding, diluted | 37,838,000 | 36,850,000 | 37,726,000 | 36,830,000 |
Basic earnings (loss) per share | $0.54 | ($0.20) | $0.44 | ($0.42) |
Diluted earnings (loss) per share | $0.53 | ($0.20) | $0.43 | ($0.42) |
Antidilutive securities | 920,662 | 1,232,748 | 971,284 | 706,574 |
Stock Options | ' | ' | ' | ' |
Earnings Per Share Disclosure [Line Items] | ' | ' | ' | ' |
Dilutive securities | 513,000 | 389,440 | 522,000 | 491,260 |
Restricted Stock Awards (RSAs) | ' | ' | ' | ' |
Earnings Per Share Disclosure [Line Items] | ' | ' | ' | ' |
Dilutive securities | 108,000 | 87,174 | 96,000 | 97,636 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Apr. 30, 2014 |
In Millions, unless otherwise specified | |
Subsequent Events [Abstract] | ' |
Fair market value of an asset sold | $0.50 |
Subsequent Event Proceeds from Sale of an Asset | 0.4 |
Subsequent Event Loss on Sale of an Asset | $0.10 |