Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Apr. 30, 2015 | 29-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Quanex Building Products Corporation | |
Trading Symbol | NX | |
Entity Central Index Key | 1423221 | |
Current Fiscal Year End Date | -21 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 30-Apr-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 33,871,310 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $60,030 | $120,384 |
Accounts receivable, net of allowance for doubtful accounts of $682 and $698 | 50,210 | 55,193 |
Inventories, net (Note 3) | 62,994 | 57,358 |
Deferred income taxes (Note 8) | 23,684 | 21,442 |
Prepaid and other current assets | 5,433 | 6,052 |
Total current assets | 202,351 | 260,429 |
Property, plant and equipment, net of accumulated depreciation of $209,485 and $200,414 | 111,113 | 109,487 |
Deferred income taxes (Note 8) | 7,367 | 1,545 |
Goodwill (Note 4) | 68,788 | 70,546 |
Intangible assets, net (Note 4) | 65,648 | 70,150 |
Other assets | 5,620 | 4,956 |
Total assets | 460,887 | 517,113 |
Current liabilities: | ||
Accounts payable | 36,328 | 41,488 |
Accrued liabilities | 26,006 | 32,482 |
Income taxes payable (Note 8) | 0 | 107 |
Current maturities of long-term debt (Note 5) | 179 | 199 |
Total current liabilities | 62,513 | 74,276 |
Long-term debt (Note 5) | 455 | 586 |
Deferred pension and postretirement benefits (Note 6) | 5,949 | 4,818 |
Liability for uncertain tax positions (Note 8) | 548 | 4,626 |
Other liabilities | 11,174 | 11,887 |
Total liabilities | 80,639 | 96,193 |
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 37,622,163 and 37,632,032, respectively; outstanding 33,871,310 and 36,214,332, respectively | 376 | 376 |
Additional paid-in-capital | 250,106 | 249,600 |
Retained earnings | 208,020 | 202,319 |
Accumulated other comprehensive loss | -8,210 | -5,708 |
Less: Treasury stock at cost, 3,750,853 and 1,417,700 shares, respectively | -70,044 | -25,667 |
Total stockholders’ equity | 380,248 | 420,920 |
Total liabilities and stockholders' equity | $460,887 | $517,113 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $682 | $698 |
Accumulated depreciation of property, plant and equipment | $209,485 | $200,414 |
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 (in usd per share) | $0.01 | $0.01 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 37,622,163 | 37,632,032 |
Common stock, shares outstanding | 33,871,310 | 36,214,332 |
Treasury stock, shares | 3,750,853 | 1,417,700 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 |
Income Statement [Abstract] | ||||
Net sales | $141,970 | $135,208 | $269,863 | $261,587 |
Cost and expenses: | ||||
Cost of sales (excluding depreciation and amortization) | 110,812 | 108,649 | 216,616 | 204,838 |
Selling, general and administrative | 19,638 | 20,393 | 39,134 | 42,895 |
Depreciation and amortization | 7,831 | 8,494 | 16,039 | 17,038 |
Asset impairment charges | 0 | 500 | 0 | 505 |
Operating income (loss) | 3,689 | -2,828 | -1,926 | -3,689 |
Non-operating income (expense): | ||||
Interest expense | -145 | -143 | -286 | -284 |
Other, net | -115 | -22 | -266 | 74 |
Income (loss) from continuing operations before income taxes | 3,429 | -2,993 | -2,478 | -3,899 |
Income tax (expense) benefit | -1,135 | 963 | 1,678 | 658 |
Income (loss) from continuing operations | 2,294 | -2,030 | -800 | -3,241 |
Income from discontinued operations, net of tax of $0, $13,481, $15 and $11,902, respectively | 0 | 22,161 | 23 | 19,472 |
Net income (loss) | $2,294 | $20,131 | ($777) | $16,231 |
Basic income (loss) per common share: | ||||
From continuing operations (in usd per share) | $0.07 | ($0.05) | ($0.02) | ($0.09) |
From discontinued operations (in usd per share) | $0 | $0.59 | $0 | $0.53 |
Loss per share, basic (in usd per share) | $0.07 | $0.54 | ($0.02) | $0.44 |
Diluted income (loss) per common share: | ||||
From continuing operations (in usd per share) | $0.07 | ($0.05) | ($0.02) | ($0.09) |
From discontinued operations (in usd per share) | $0 | $0.58 | $0 | $0.52 |
Loss per share, diluted (in usd per share) | $0.07 | $0.53 | ($0.02) | $0.43 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 33,621 | 37,217 | 34,362 | 37,108 |
Diluted (in shares) | 34,166 | 37,838 | 34,362 | 37,726 |
Cash dividends per share (in usd per share) | $0.04 | $0.04 | $0.08 | $0.08 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Income (Loss) (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 |
Income Statement [Abstract] | ||||
Income tax expense (benefit) of discontinued operations | $0 | $13,481 | $15 | $11,902 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $2,294 | $20,131 | ($777) | $16,231 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments gain (loss) (pretax) | 277 | 1,227 | -2,572 | 1,282 |
Foreign currency translation adjustments tax benefit | 0 | 0 | 0 | 14 |
Change in pension from net unamortized gain adjustment (pretax) | 0 | 0 | 0 | 122 |
Change in pension from net unamortized gain tax benefit | 41 | 0 | 70 | 0 |
Other comprehensive income (loss), net of tax | 318 | 1,227 | -2,502 | 1,418 |
Comprehensive income (loss) | $2,612 | $21,358 | ($3,279) | $17,649 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flow (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Operating activities: | ||
Net income (loss) | ($777) | $16,231 |
Adjustments to reconcile net (loss) income to cash used for operating activities: | ||
Depreciation and amortization | 16,039 | 20,078 |
Stock-based compensation | 2,329 | 1,944 |
Deferred income tax (benefit) provision | -2,963 | 8,128 |
Excess tax benefit from share-based compensation | -60 | -639 |
Asset impairment charges | 0 | 1,007 |
Gain on sale of discontinued operations | 0 | -39,645 |
Other, net | -447 | 1,427 |
Changes in assets and liabilities, net of effects from acquisitions: | ||
Decrease in accounts receivable | 4,553 | 3,964 |
Increase in inventory | -6,047 | -22,834 |
Decrease (increase) in other current assets | 601 | -583 |
(Decrease) increase in accounts payable | -5,799 | 10,127 |
Decrease in accrued liabilities | -5,253 | -6,234 |
Increase in income taxes payable | 260 | 1,667 |
Increase in deferred pension and postretirement benefits | 1,201 | 297 |
Decrease in other long-term liabilities | -128 | -3,539 |
Other, net | -201 | -2,419 |
Cash provided by (used for) operating activities | 3,308 | -11,023 |
Investing activities: | ||
Net proceeds from sale of discontinued operations | 0 | 110,000 |
Acquisitions, net of cash acquired | 0 | -5,161 |
Capital expenditures | -13,381 | -18,597 |
Proceeds from property insurance claim | 513 | 1,400 |
Proceeds from disposition of capital assets | 202 | 304 |
Cash (used for) provided by investing activities | -12,666 | 87,946 |
Financing activities: | ||
Repayments of other long-term debt | -148 | -144 |
Common stock dividends paid | -2,803 | -2,989 |
Issuance of common stock | 4,181 | 2,882 |
Excess tax benefit from share-based compensation | 60 | 639 |
Purchase of treasury stock | -52,719 | 0 |
Other | 0 | 35 |
Cash (used for) provided by financing activities | -51,429 | 423 |
Effect of exchange rate changes on cash and cash equivalents | 433 | -96 |
(Decrease) increase in cash and cash equivalents | -60,354 | 77,250 |
Cash and cash equivalents at beginning of period | 120,384 | 49,734 |
Cash and cash equivalents at end of period | $60,030 | $126,984 |
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 beginning of period at Oct. 31, 2014 | $420,920 | $376 | $249,600 | $202,319 | ($5,708) | ($25,667) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | -777 | -777 | ||||
Foreign currency translation adjustment | -2,572 | -2,572 | ||||
Common dividends ($0.08 per share) | -2,803 | -2,803 | ||||
Purchase of treasury stock | -50,761 | -50,761 | ||||
Stock-based compensation activity: | ||||||
Expense related to stock-based compensation | 2,329 | 2,329 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 4,181 | -246 | -680 | 5,107 | ||
Tax benefit from share-based compensation | -146 | -146 | ||||
Restricted stock awards granted | 0 | -1,277 | 1,277 | |||
Recognition of unrecognized tax benefit (Note 8) | 10,003 | 10,003 | ||||
Other | -126 | 0 | -154 | -42 | 70 | 0 |
Balance at end of period at Apr. 30, 2015 | $380,248 | $376 | $250,106 | $208,020 | ($8,210) | ($70,044) |
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, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 |
Statement of Stockholders' Equity [Abstract] | ||||
Foreign currency translation adjustment, tax | $0 | $0 | $0 | $14 |
Common stock, dividends per share (in usd 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, 2015 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation | |||||||||||||||
Quanex Building Products Corporation manufactures components primarily for the window and door (fenestration) industry, which include (1) energy-efficient flexible insulating glass spacers, (2) extruded vinyl profiles, (3) window and door screens, and (4) precision-formed metal and wood products for original equipment manufacturers (OEMs), as well as certain non-fenestration components, which include solar panel sealants, wood flooring and trim moldings. 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, 2014 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, 2014. 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. | ||||||||||||||||
(Aleris), a privately held Delaware corporation which provides aluminum rolled products and extrusions, aluminum recycling and specification aluminum alloy production. We received gross proceeds of $110.0 million, which was reduced to $107.4 million, reflecting a net working capital adjustment of $2.6 million that we paid in June 2014, resulting in a net gain on the transaction of $24.1 million, net of related taxes of $15.1 million. | ||||||||||||||||
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 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). Unless noted otherwise, the notes to the consolidated financial statements pertain to our continuing operations. | ||||||||||||||||
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 for the period from November 1, 2013 to April 1, 2014, as permitted by U.S. GAAP. | ||||||||||||||||
We have historically purchased rolled aluminum product from Nichols. We expect to continue to purchase aluminum from Nichols in the normal course of business. We considered whether these aluminum purchases and the services provided under a transition services agreement for the period from April 1, 2014 to May 31, 2014 constituted significant continuing involvement with Nichols. Since these purchases were in the normal course of business and the services provided were for a relatively short period and are customary for similar transactions, we determined that this involvement was not deemed significant and did 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, 2015 and 2014 were $1.6 million and $6.2 million, respectively, and $3.3 million and $6.8 million, respectively. | ||||||||||||||||
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 costs of $2.3 million associated with this loss, including an impairment of $0.5 million related to retirement of the asset, moving costs, outside service costs, clean-up and the deductible. To date, we have received insurance proceeds of $5.3 million. We have reduced our estimate of total insurance proceeds expected related to this loss to approximately $6.3 million, resulting in an expected gain on involuntary conversion of $3.9 million of which we have recognized $2.9 million. We estimate the remaining pretax gain on involuntary conversion at $1.0 million and that this gain will be recognized during fiscal 2015, when and to the extent that insurance proceeds are received, which will result in an increase in income from discontinued operations, net of tax. | ||||||||||||||||
Income from discontinued operations for the six months ended April 30, 2015 reflects the receipt of insurance proceeds of $0.5 million, less approximately $0.5 million associated with a health insurance claim amount reimbursable to the stop-loss insurance provider. | ||||||||||||||||
The following table summarizes the operating results for Nichols, which was sold on April 1, 2014, included in the three- and six-month periods ended April 30, 2014: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 30, 2014 | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Net sales | $ | 63,306 | $ | 142,797 | ||||||||||||
Operating loss | (4,931 | ) | (9,182 | ) | ||||||||||||
Loss before income taxes and gain on sale | (4,003 | ) | (8,271 | ) | ||||||||||||
Income tax benefit | 1,584 | 3,163 | ||||||||||||||
Gain on sale, net of tax of $15,065 and $15,065, respectively | 24,580 | 24,580 | ||||||||||||||
Net income | $ | 22,161 | $ | 19,472 | ||||||||||||
Basic income per common share | $ | 0.59 | $ | 0.53 | ||||||||||||
Diluted income per common share | $ | 0.58 | $ | 0.52 | ||||||||||||
Product Sales | ||||||||||||||||
We produce a wide variety of products that are used in the fenestration industry, including: window and door systems design, engineering and fabrication; accessory trim profiles with real wood veneers and wood grain laminate finishes; window spacer systems; extruded vinyl products; metal fabrication; and astragals, thresholds and screens. In addition, we produce certain non-fenestration products, including: wood and aluminum grilles, flooring and trim moldings, solar edge tape and other products. Historically, we have presented product sales information at the reportable segment level, and we attribute our net sales based on the location of the customer. We have four operating segments that are aggregated into one reportable segment, which includes this breadth of product offerings across the fenestration and non-fenestration spectrum, but for which there are common economic and other characteristics that meet the criteria for aggregation. | ||||||||||||||||
ASC Topic 280-10-50, “Segment Reporting” (ASC 280) permits aggregation of operating segments based on factors including, but not limited to: (1) similar nature of products serving the building products industry, primarily 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 following table summarizes our product sales for the three- and six-month periods ended April 30, 2015 and 2014 into general groupings to provide additional information to our shareholders. | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 30, | April 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Product Group: | (In thousands) | |||||||||||||||
United States - fenestration | $ | 106,601 | $ | 98,501 | $ | 202,792 | $ | 195,924 | ||||||||
International - fenestration | 20,213 | 24,759 | 37,989 | 43,382 | ||||||||||||
United States - non-fenestration | 11,660 | 9,179 | 21,134 | 16,371 | ||||||||||||
International - non-fenestration | 3,496 | 2,769 | 7,948 | 5,910 | ||||||||||||
Net sales | $ | 141,970 | $ | 135,208 | $ | 269,863 | $ | 261,587 | ||||||||
Acquisitions
Acquisitions | 6 Months Ended | |||
Apr. 30, 2015 | ||||
Business Combinations [Abstract] | ||||
Acquisitions | 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 expanded our vinyl extrusion capacity and positioned 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. | ||||
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 omitted because this acquisition was not deemed to be material to our results of operations for the six months ended April 30, 2014. |
Inventories
Inventories | 6 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
Inventories consisted of the following at April 30, 2015 and October 31, 2014: | ||||||||
April 30, | October 31, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Raw materials | $ | 39,928 | $ | 36,751 | ||||
Finished goods and work in process | 29,126 | 25,558 | ||||||
Supplies and other | 1,225 | 806 | ||||||
Total | 70,279 | 63,115 | ||||||
Less: Inventory reserves | 7,285 | 5,757 | ||||||
Inventories, net | $ | 62,994 | $ | 57,358 | ||||
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, 2015 and October 31, 2014 were valued using the following costing methods: | ||||||||
April 30, | October 31, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
LIFO | $ | 6,048 | $ | 5,122 | ||||
FIFO | 56,946 | 52,236 | ||||||
Total | $ | 62,994 | $ | 57,358 | ||||
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 reserve adjustment for the three- and six-month periods ended April 30, 2015 and 2014. | ||||||||
For inventories valued under the LIFO method, replacement cost exceeded the LIFO value by approximately $1.4 million at April 30, 2015 and October 31, 2014. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 6 Months Ended | |||||||||||||||
Apr. 30, 2015 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | |||||||||||||||
Goodwill | ||||||||||||||||
The change in the carrying amount of goodwill for the six months ended April 30, 2015 was as follows: | ||||||||||||||||
Six Months Ended | ||||||||||||||||
30-Apr-15 | ||||||||||||||||
(In thousands) | ||||||||||||||||
Beginning balance as of November 1, 2014 | 70,546 | |||||||||||||||
Foreign currency translation adjustment | (1,758 | ) | ||||||||||||||
Balance as of the end of the period | $ | 68,788 | ||||||||||||||
During the fourth quarter of 2014, we evaluated our goodwill balances for indicators of impairment and performed an annual goodwill impairment test to determine the recoverability of these assets. Three of our reporting units had goodwill at October 31, 2014 which totaled $55.2 million, $12.6 million and $2.8 million. We determined that our goodwill was not impaired and there have been no triggering events to indicate impairment during the six months ended April 30, 2015, so no additional testing was deemed necessary. | ||||||||||||||||
Identifiable Intangible Assets | ||||||||||||||||
Amortizable intangible assets consisted of the following as of April 30, 2015 and October 31, 2014: | ||||||||||||||||
30-Apr-15 | 31-Oct-14 | |||||||||||||||
Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||
(In thousands) | ||||||||||||||||
Customer relationships | $ | 53,083 | $ | 21,745 | $ | 53,083 | $ | 19,700 | ||||||||
Trademarks and trade names | 44,722 | 21,712 | 44,722 | 20,343 | ||||||||||||
Patents and other technology | 25,244 | 14,177 | 25,244 | 13,228 | ||||||||||||
Other | 1,392 | 1,159 | 1,392 | 1,020 | ||||||||||||
Total | $ | 124,441 | $ | 58,793 | $ | 124,441 | $ | 54,291 | ||||||||
We do not estimate a residual value associated with these intangible assets. Included in intangible assets as of April 30, 2015 were customer relationships of $0.2 million associated with the Greenville acquisition. These assets have estimated remaining useful lives of four years. See Note 2, "Acquisitions", included herewith. | ||||||||||||||||
For the three- and six-month periods ended April 30, 2015 and 2014, we had aggregate amortization expense of $2.2 million and $4.5 million, respectively, and $2.3 million and $4.6 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 | ||||||||||||||||
2015 (remaining six months) | $ | 4,612 | ||||||||||||||
2016 | 8,713 | |||||||||||||||
2017 | 8,607 | |||||||||||||||
2018 | 8,360 | |||||||||||||||
2019 | 7,571 | |||||||||||||||
Thereafter | 27,785 | |||||||||||||||
Total | $ | 65,648 | ||||||||||||||
Debt_and_Capital_Lease_Obligat
Debt and Capital Lease Obligations | 6 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt and Capital Lease Obligations | Debt and Capital Lease Obligations | |||||||
Debt consisted of the following at April 30, 2015 and October 31, 2014: | ||||||||
April 30, | October 31, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Revolving Credit Facility | $ | — | $ | — | ||||
City of Richmond, Kentucky Industrial Building Revenue Bonds | 500 | 600 | ||||||
Capital lease obligations | 134 | 185 | ||||||
Total debt | 634 | 785 | ||||||
Less: Current maturities of long-term debt | 179 | 199 | ||||||
Long-term debt | $ | 455 | $ | 586 | ||||
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 $150.0 million, with a letter of credit sub-facility, a swing line sub-facility and a multi-currency sub-facility. Borrowings denominated in United States dollars bear interest at a spread above the London Interbank Borrowing Rate (LIBOR) or a base rate derived from the prime rate. Foreign denominated borrowings bear interest at a spread above the LIBOR applicable to such currencies. Subject to customary conditions, we may request that the aggregate commitments under the Credit Facility be increased by up to $100.0 million, with total commitments not to exceed $250.0 million. | ||||||||
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, 2015, we were in compliance with the financial covenants set forth in the Credit Facility. | ||||||||
As of April 30, 2015, the amount available to us for use under the Credit Facility was $143.4 million and we had outstanding letters of credit of $5.9 million. For the six-month period ended April 30, 2015, we did not borrow any amounts under the Credit Facility, and thus had no outstanding borrowings at April 30, 2015. 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, 2015. As of October 31, 2014, the amount available to us for use under the Credit Facility was $140.7 million and we had outstanding letters of credit of $6.1 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, 2014. |
Retirement_Plans
Retirement Plans | 6 Months Ended | |||||||||||||||
Apr. 30, 2015 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Retirement Plans | Retirement Plans | |||||||||||||||
Pension Plan | ||||||||||||||||
Our non-contributory, single employer defined benefit pension plan covers a majority of our employees. Employees of acquired companies may be covered after a transitional period. The net periodic pension cost for this plan for the three- and six-month periods ended April 30, 2015 and 2014 was as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 30, | April 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In thousands) | ||||||||||||||||
Service cost | $ | 802 | $ | 737 | $ | 1,683 | $ | 1,657 | ||||||||
Interest cost | 257 | 269 | 510 | 532 | ||||||||||||
Expected return on plan assets | (443 | ) | (438 | ) | (904 | ) | (861 | ) | ||||||||
Amortization of net loss | 40 | — | 79 | — | ||||||||||||
Net periodic benefit cost | $ | 656 | $ | 568 | $ | 1,368 | $ | 1,328 | ||||||||
During 2014, we contributed approximately $4.1 million to fund our plan, and we expect to make a contribution to our plan in September 2015. | ||||||||||||||||
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, 2015 and October 31, 2014, our liability under the supplemental benefit plan was approximately $1.8 million and $1.9 million, respectively, and under the deferred compensation plan was approximately $3.4 million for both periods. In January 2014, we paid $3.3 million related to the deferred compensation plan as a result of the separation of our former chief executive officer in July 2013. We record the current portion of liabilities under these plans under the caption "Accrued Liabilities," and the long-term portion under the caption "Other Liabilities" in the accompanying balance sheets. |
Warranty_Obligations
Warranty Obligations | 6 Months Ended | |||
Apr. 30, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Warranty Obligations | 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, 2015 | ||||
(In thousands) | ||||
Beginning balance as of November 1, 2014 | $ | 671 | ||
Provision for warranty expense | 263 | |||
Change in accrual for preexisting warranties | 99 | |||
Warranty costs paid | (124 | ) | ||
Total accrued warranty as of the end of the period | $ | 909 | ||
Less: Current portion of accrued warranty | 678 | |||
Long-term portion of accrued warranty | $ | 231 | ||
The increase in the warranty provision during the six months ended April 30, 2015 was primarily attributable to a specific claim related to our vinyl extrusion products stemming from a change in formulation. |
Income_Taxes
Income Taxes | 6 Months Ended |
Apr. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 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. Our estimated annual effective tax rates from continuing operations for the six months ended April 30, 2015 and 2014 were a benefit of 67.7% and 16.9%, respectively. The increase in the 2015 effective tax rate is attributable to a discrete benefit item resulting from the reassessment of our uncertain tax position related to the 2008 spin-off of Quanex from a predecessor company in January 2015. Excluding this item, the effective tax rate was 35.5%. The 2014 effective rate was impacted by a 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 that was booked as a discrete item in the first quarter of 2014. Excluding this discrete item, the 2014 effective tax rate was a benefit of 33.6%. | |
As of April 30, 2015, our unrecognized tax benefit (UTB) relates to certain state tax items regarding the interpretation of tax laws and regulations. The total UTB at October 31, 2014 included the UTB associated with the 2008 spin-off and totaled $11.4 million. Of this amount, $4.6 million was recorded as a liability for uncertain tax positions and $6.8 million was recorded as deferred income taxes (non-current assets) on the accompanying condensed consolidated balance sheet. In January 2015, we reassessed our unrecognized tax benefit related to the 2008 spin-off of Quanex from a predecessor company and recognized the full benefit of the tax positions taken. This reduced the liability for uncertain tax positions by $4.0 million and increased deferred income taxes (non-current assets) by $6.8 million and resulted in a non-cash increase in retained earnings of $10.0 million, with an increase in income tax benefit of $0.8 million. At April 30, 2015, $0.5 million is recorded as a liability for uncertain tax positions. The disallowance of the UTB would not materially affect the annual effective tax rate. | |
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. We will continue to evaluate our position throughout the year. We maintain a valuation allowance for certain state net operating losses which totaled $1.4 million at April 30, 2015. | |
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 do not believe any of the UTB at April 30, 2015 will be recognized within the next twelve months. | |
Our federal income tax returns for the tax years ended October 31, 2011 and 2012 were examined by the Internal Revenue Service and no adjustments were made. |
Contingencies
Contingencies | 6 Months Ended |
Apr. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies |
Environmental | |
We are subject to extensive laws and regulations concerning the discharge of materials into the environment and the remediation of chemical contamination. We accrue our best estimates of our remediation obligations and adjust these accruals when further information becomes available or circumstances change. | |
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. | |
Spacer Migration | |
We were notified by certain customers through our German operation that the vapor barrier employed on certain spacer products manufactured prior to March 2014 may fail and permit spacer migration in certain extreme circumstances. This product does not have a specific customer warranty, but we have received claims from customers related to this issue, which we continue to investigate. We incurred expense of $1.8 million during 2014 associated with this issue, including an accrual of $1.2 million at October 31, 2014 for any asserted claim that we deem to be reasonably possible and estimable. The balance of this accrual at April 30, 2015 was $1.0 million, reflecting net claim payments of $0.3 million, additional claims received of approximately $0.2 million, and a translation adjustment of approximately $0.1 million. We cannot estimate any future liability with regard to unasserted claims. We will investigate any future claims, but we are not obligated to honor any future claims. | |
Affordable Care Act | |
We are subject to the employer-shared responsibility requirements (more commonly referred to as the employer mandate) of the Affordable Care Act (ACA). The employer mandate requires us to offer health care insurance that meets minimum value and affordability requirements to our full-time employees and certain potential common law employees within a specified coverage threshold. Effective January 1, 2015, and for the calendar year ended December 31, 2015, we may be subject to a penalty in the form of an excise tax under the ACA if we do not meet these requirements. Furthermore, we must comply with the annual disclosure and reporting requirements. We are evaluating these requirements and implementing mechanisms to achieve compliance. | |
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, 2015 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||
Derivative Instruments | 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. We have historically used foreign currency forwards and options 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 accounts payable balances that are denominated in currencies other than the United States dollar, including the Euro, British Pound and Canadian Dollar. 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, 2015 and 2014 as follows (in thousands): | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
April 30, | April 30, | |||||||||||||||||
Location of (Loss) Gain: | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
Other, net | Foreign currency derivatives | $ | (38 | ) | $ | (208 | ) | $ | 614 | $ | (94 | ) | ||||||
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, 2015 and October 31, 2014 were as follows (in thousands): | ||||||||||||||||||
April 30, 2015 | October 31, 2014 | |||||||||||||||||
Prepaid and other current assets: | ||||||||||||||||||
Foreign currency derivatives | $ | 298 | $ | 69 | ||||||||||||||
Accrued liabilities: | ||||||||||||||||||
Foreign currency derivatives | $ | (2 | ) | $ | — | |||||||||||||
The following table summarizes the notional amounts and fair value of outstanding derivative contracts at April 30, 2015 and October 31, 2014 (in thousands): | ||||||||||||||||||
Notional as indicated | Fair Value in $ | |||||||||||||||||
April 30, | October 31, | April 30, | October 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
Foreign currency derivatives: | ||||||||||||||||||
Sell EUR, buy USD | EUR | 7,555 | $ | 4,907 | $ | 289 | $ | 68 | ||||||||||
Sell CAD, buy USD | CAD | 296 | 331 | 2 | 1 | |||||||||||||
Sell GBP, buy USD | GBP | 267 | — | 6 | — | |||||||||||||
Buy EUR, sell GBP | EUR | 97 | — | (2 | ) | — | ||||||||||||
Buy USD, sell EUR | USD | 23 | — | 1 | — | |||||||||||||
Buy GBP, sell EUR | GBP | 5 | — | $ | — | — | ||||||||||||
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, 2015 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Fair Value Measurement of Assets and Liabilities | 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, 2015 | October 31, 2014 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Short-term investments | $ | 10,000 | $ | — | $ | — | $ | 10,000 | $ | 69,975 | $ | — | $ | — | $ | 69,975 | ||||||||||||||||
Foreign currency derivatives | — | 298 | — | 298 | — | 69 | — | 69 | ||||||||||||||||||||||||
Total assets | $ | 10,000 | $ | 298 | $ | — | $ | 10,298 | $ | 69,975 | $ | 69 | $ | — | $ | 70,044 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Foreign currency derivatives | $ | — | $ | 2 | $ | — | $ | 2 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Total liabilities | $ | — | $ | 2 | $ | — | $ | 2 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
We held short-term investments (with an original maturity of three months or less) in commercial paper at April 30, 2015 and October 31, 2014. 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. | ||||||||||||||||||||||||||||||||
We had approximately $2.4 million of certain property, plant and equipment that was recorded at fair value on a non-recurring basis and classified as Level 3 as of April 30, 2015 and October 31, 2014. The fair value was based on broker opinions. | ||||||||||||||||||||||||||||||||
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, 2015 and October 31, 2014 (Level 3 measurement). |
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | ||||||||||||
Apr. 30, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Stock-Based Compensation | 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. In February 2011 and February 2014, shareholders approved an increase of the aggregate shares available for grant by 2,400,000 shares and 2,350,000 shares, respectively. Any officer, key employee and/or non-employee director is eligible for awards under the 2008 Plan. Our practice is to grant stock options and restricted stock units to non-employee directors on the last business day of each fiscal year, with an additional grant of options to each director on the date of his or her first anniversary of service. Once we receive approval from the Board of Directors in December, we grant stock options, restricted stock awards, restricted stock units and/or performance shares to officers, management and key employees. Occasionally, we may make additional grants to key employees at other times during the year. | |||||||||||||
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, 2015 is presented below: | |||||||||||||
Restricted Stock Awards | Weighted Average | ||||||||||||
Grant Date Fair Value per Share | |||||||||||||
Non-vested at October 31, 2014 | 220,800 | $ | 17.42 | ||||||||||
Granted | 68,800 | 20.28 | |||||||||||
Cancelled | — | — | |||||||||||
Vested | (33,500 | ) | 15.08 | ||||||||||
Non-vested at April 30, 2015 | 256,100 | $ | 18.49 | ||||||||||
The total weighted average grant-date fair value of restricted stock awards that vested during each of the six-month periods ended April 30, 2015 and 2014 was $0.5 million, respectively. As of April 30, 2015, total unrecognized compensation cost related to unamortized restricted stock awards was $2.3 million. We expect to recognize this expense over the remaining weighted average vesting period of 1.6 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, 2014. | |||||||||||||
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, 2015 and 2014. | |||||||||||||
Six Months Ended | |||||||||||||
April 30, | |||||||||||||
2015 | 2014 | ||||||||||||
Weighted-average expected volatility | 47.70% | 55.70% | |||||||||||
Weighted-average expected term (in years) | 5.6 | 5.9 | |||||||||||
Risk-free interest rate | 1.60% | 1.80% | |||||||||||
Expected dividend yield over expected term | 1.00% | 1.00% | |||||||||||
Weighted average grant date fair value | $8.40 | $8.52 | |||||||||||
The following table summarizes our stock option activity for the six months ended April 30, 2015: | |||||||||||||
Stock Options | Weighted Average | Weighted Average | Aggregate | ||||||||||
Exercise Price | Remaining Contractual | Intrinsic | |||||||||||
Term (in years) | Value (000s) | ||||||||||||
Outstanding at October 31, 2014 | 2,588,389 | $ | 16.21 | ||||||||||
Granted | 123,900 | 20.28 | |||||||||||
Exercised | (273,950 | ) | 15.26 | ||||||||||
Forfeited/Expired | (167 | ) | 15.08 | ||||||||||
Outstanding at April 30, 2015 | 2,438,172 | $ | 16.52 | 6 | $ | 7,591 | |||||||
Vested or expected to vest at April 30, 2015 | 2,411,605 | $ | 16.49 | 5.9 | $ | 7,577 | |||||||
Exercisable at April 30, 2015 | 1,972,200 | $ | 15.95 | 5.4 | $ | 7,105 | |||||||
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, 2015 and 2014 was $1.1 million and $2.6 million. The weighted-average grant date fair value of stock options that vested during the six months ended April 30, 2015 and 2014 was $2.3 million and $3.0 million, respectively. As of April 30, 2015, total unrecognized compensation cost related to stock options was $2.3 million. We expect to recognize this expense over the remaining weighted average vesting period of 1.5 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 but are payable only upon the director's cessation of service, 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 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, 2015: | |||||||||||||
Restricted Stock Units | Weighted Average | ||||||||||||
Grant Date Fair Value per Share | |||||||||||||
Non-vested at October 31, 2014 | 83,500 | $ | 15.08 | ||||||||||
Vested | (83,500 | ) | 15.08 | ||||||||||
Non-vested at April 30, 2015 | — | $ | — | ||||||||||
During the six-month periods ended April 30, 2015 and 2014, we paid $1.7 million and $0.5 million, respectively, to settle certain restricted stock units. | |||||||||||||
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 grants which occurred in December 2014 and 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 these awards, we have bifurcated 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 bifurcated 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 is being 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 is recorded as a liability and is being marked to market over the three-year term of the award, and can fluctuate depending on the number of shares ultimately expected to vest. | |||||||||||||
In conjunction with the annual grants in December 2014 and 2013, we awarded 137,400 and 155,800 performance shares, respectively, of which 0% to 200% of these shares may ultimately vest, depending on the achievement of the performance conditions. During 2014, 7,000 of the performance shares issued in December 2013 were forfeited. For the six-month periods ended April 30, 2015 and 2014, we have recorded $0.8 million and $0.5 million of compensation expense, respectively, 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. | |||||||||||||
The performance shares are excluded from the diluted weighted-average shares used to calculate earnings per share until the performance criteria is probable to result in the issuance of contingent shares. | |||||||||||||
Treasury Shares | |||||||||||||
On September 5, 2014, our Board cancelled our existing stock repurchase program and approved a new stock repurchase program authorizing us to use up to $75.0 million to repurchase shares of our common stock. For the period from September 5, 2014 through October 31, 2014, we purchased 1,316,326 shares at a cost of $24.2 million under the new program. During the six months ended April 30, 2015, we purchased an additional 2,675,903 shares at a cost of $50.8 million. From inception of the program, we purchased 3,992,229 shares at a cost of $75.0 million. | |||||||||||||
We record treasury stock purchases under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. Shares are generally issued from treasury stock at the time of grant of restricted stock awards, and upon the exercise of stock options and upon the issuance of performance shares. On the subsequent issuance of treasury shares, we record proceeds in excess of cost as an increase in additional paid in capital. A deficiency of such proceeds relative to costs would be applied to reduce paid-in-capital associated with prior issuances to the extent available, with the remainder recorded as a charge to retained earnings. We recorded a charge to retained earnings of $0.7 million in March 2015. | |||||||||||||
The following table summarizes the treasury stock activity during the six months ended April 30, 2015: | |||||||||||||
Six Months Ended | |||||||||||||
April 30, 2015 | |||||||||||||
Beginning balance as of November 1, 2014 | 1,417,700 | ||||||||||||
Restricted stock awards granted | (68,800 | ) | |||||||||||
Stock options exercised | (273,950 | ) | |||||||||||
Shares purchased | 2,675,903 | ||||||||||||
Balance at end of period | 3,750,853 | ||||||||||||
Other_Income_Expense
Other Income (Expense) | 6 Months Ended | |||||||||||||||
Apr. 30, 2015 | ||||||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||||||
Other Income (Expense) | 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, 2015 and 2014: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 30, | April 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In thousands) | ||||||||||||||||
Foreign currency transaction (losses) gains | $ | (88 | ) | $ | 170 | $ | (922 | ) | $ | 66 | ||||||
Foreign currency derivative (losses) gains | (38 | ) | (208 | ) | 614 | (94 | ) | |||||||||
Interest income | 8 | 16 | 39 | 22 | ||||||||||||
Other | 3 | — | 3 | 80 | ||||||||||||
Other (expense) income | $ | (115 | ) | $ | (22 | ) | $ | (266 | ) | $ | 74 | |||||
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | ||||||||||
Apr. 30, 2015 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
Earnings Per Share | 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. | |||||||||||
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 from continuing operations, as we did for the six-month period ended April 30, 2015, as well as the three and six months ended April 30, 2014. During these periods, common stock equivalents of 451,590, 513,653, and 521,719, respectively, and restricted stock shares of 107,748, 107,589, and 95,912, respectively, were excluded from the computation of diluted earnings per share. | |||||||||||
Basic and diluted earnings per share from continuing operations for the three-month period ended April 30, 2015 was calculated as follows (in thousands, except per share data): | |||||||||||
Three Months Ended April 30, 2015 | |||||||||||
Net Income from Continuing Operations | Weighted Average Shares | Per Share | |||||||||
Basic earnings per common share | $ | 2,294 | 33,621 | $ | 0.07 | ||||||
Effect of dilutive securities: | |||||||||||
Stock options | — | 429 | |||||||||
Restricted stock awards | — | 116 | |||||||||
Diluted earnings per common share | $ | 2,294 | 34,166 | $ | 0.07 | ||||||
For the three- and six-month periods ended April 30, 2015 and 2014, there were no potentially dilutive contingent shares related to performance share awards as the issuance of these shares was not yet deemed probable. | |||||||||||
For each of the three- and six-month periods ended April 30, 2015, we had 731,272 securities, respectively, and for the three- and six-month periods ended April 30, 2014, we had 920,662 and 971,284 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, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements |
In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This amendment requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the treatment of debt discounts. This guidance becomes effective for financial statements issued for fiscal years beginning after December 15, 2015. We expect to adopt this guidance during fiscal 2017, and we are currently evaluating the impact on our consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period. This amendment requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition that affects vesting or as a nonvesting condition that affects the grant-date fair value of an award, and provides explicit guidance for those awards. This guidance becomes effective for fiscal years beginning on or after December 15, 2015. We expect to adopt this guidance during fiscal 2017, and we do not expect this pronouncement to have a material impact on our consolidated financial statements. | |
In May 2014, the FASB issued 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 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 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 became effective for fiscal years beginning after December 15, 2013. We adopted this guidance on November 1, 2014 with no material impact on our consolidated financial statements. |
Nature_of_Operations_and_Basis1
Nature of Operations and Basis of Presentation (Tables) | 6 Months Ended | |||||||||||||||
Apr. 30, 2015 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||
Financial Information of Discontinued Operations | The following table summarizes the operating results for Nichols, which was sold on April 1, 2014, included in the three- and six-month periods ended April 30, 2014: | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 30, 2014 | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Net sales | $ | 63,306 | $ | 142,797 | ||||||||||||
Operating loss | (4,931 | ) | (9,182 | ) | ||||||||||||
Loss before income taxes and gain on sale | (4,003 | ) | (8,271 | ) | ||||||||||||
Income tax benefit | 1,584 | 3,163 | ||||||||||||||
Gain on sale, net of tax of $15,065 and $15,065, respectively | 24,580 | 24,580 | ||||||||||||||
Net income | $ | 22,161 | $ | 19,472 | ||||||||||||
Basic income per common share | $ | 0.59 | $ | 0.53 | ||||||||||||
Diluted income per common share | $ | 0.58 | $ | 0.52 | ||||||||||||
Schedule of Product Sales | The following table summarizes our product sales for the three- and six-month periods ended April 30, 2015 and 2014 into general groupings to provide additional information to our shareholders. | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 30, | April 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Product Group: | (In thousands) | |||||||||||||||
United States - fenestration | $ | 106,601 | $ | 98,501 | $ | 202,792 | $ | 195,924 | ||||||||
International - fenestration | 20,213 | 24,759 | 37,989 | 43,382 | ||||||||||||
United States - non-fenestration | 11,660 | 9,179 | 21,134 | 16,371 | ||||||||||||
International - non-fenestration | 3,496 | 2,769 | 7,948 | 5,910 | ||||||||||||
Net sales | $ | 141,970 | $ | 135,208 | $ | 269,863 | $ | 261,587 | ||||||||
Acquisitions_Tables
Acquisitions (Tables) | 6 Months Ended | |||
Apr. 30, 2015 | ||||
Business Combinations [Abstract] | ||||
Schedule of Purchase Price Allocation | The purchase price has been allocated to the fair value of the assets acquired and liabilities assumed, as indicated in the table below. | |||
As of Date of | ||||
Opening Balance Sheet | ||||
(In thousands) | ||||
Net assets acquired: | ||||
Inventories | $ | 161 | ||
Prepaid and other current assets | 145 | |||
Property, plant and equipment | 4,695 | |||
Intangible assets | 290 | |||
Deferred income tax liability | (50 | ) | ||
Net assets acquired | $ | 5,241 | ||
Consideration: | ||||
Cash, net of cash and cash equivalents acquired | $ | 5,161 | ||
Gain recognized on bargain purchase | $ | 80 | ||
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories consisted of the following at April 30, 2015 and October 31, 2014: | |||||||
April 30, | October 31, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Raw materials | $ | 39,928 | $ | 36,751 | ||||
Finished goods and work in process | 29,126 | 25,558 | ||||||
Supplies and other | 1,225 | 806 | ||||||
Total | 70,279 | 63,115 | ||||||
Less: Inventory reserves | 7,285 | 5,757 | ||||||
Inventories, net | $ | 62,994 | $ | 57,358 | ||||
Values of Inventories | Our inventories at April 30, 2015 and October 31, 2014 were valued using the following costing methods: | |||||||
April 30, | October 31, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
LIFO | $ | 6,048 | $ | 5,122 | ||||
FIFO | 56,946 | 52,236 | ||||||
Total | $ | 62,994 | $ | 57,358 | ||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 6 Months Ended | |||||||||||||||
Apr. 30, 2015 | ||||||||||||||||
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, 2015 was as follows: | |||||||||||||||
Six Months Ended | ||||||||||||||||
30-Apr-15 | ||||||||||||||||
(In thousands) | ||||||||||||||||
Beginning balance as of November 1, 2014 | 70,546 | |||||||||||||||
Foreign currency translation adjustment | (1,758 | ) | ||||||||||||||
Balance as of the end of the period | $ | 68,788 | ||||||||||||||
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | Amortizable intangible assets consisted of the following as of April 30, 2015 and October 31, 2014: | |||||||||||||||
30-Apr-15 | 31-Oct-14 | |||||||||||||||
Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||
(In thousands) | ||||||||||||||||
Customer relationships | $ | 53,083 | $ | 21,745 | $ | 53,083 | $ | 19,700 | ||||||||
Trademarks and trade names | 44,722 | 21,712 | 44,722 | 20,343 | ||||||||||||
Patents and other technology | 25,244 | 14,177 | 25,244 | 13,228 | ||||||||||||
Other | 1,392 | 1,159 | 1,392 | 1,020 | ||||||||||||
Total | $ | 124,441 | $ | 58,793 | $ | 124,441 | $ | 54,291 | ||||||||
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 | ||||||||||||||||
2015 (remaining six months) | $ | 4,612 | ||||||||||||||
2016 | 8,713 | |||||||||||||||
2017 | 8,607 | |||||||||||||||
2018 | 8,360 | |||||||||||||||
2019 | 7,571 | |||||||||||||||
Thereafter | 27,785 | |||||||||||||||
Total | $ | 65,648 | ||||||||||||||
Debt_and_Capital_Lease_Obligat1
Debt and Capital Lease Obligations (Tables) | 6 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt and Capital Lease Obligations | Debt consisted of the following at April 30, 2015 and October 31, 2014: | |||||||
April 30, | October 31, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Revolving Credit Facility | $ | — | $ | — | ||||
City of Richmond, Kentucky Industrial Building Revenue Bonds | 500 | 600 | ||||||
Capital lease obligations | 134 | 185 | ||||||
Total debt | 634 | 785 | ||||||
Less: Current maturities of long-term debt | 179 | 199 | ||||||
Long-term debt | $ | 455 | $ | 586 | ||||
Retirement_Plans_Tables
Retirement Plans (Tables) | 6 Months Ended | |||||||||||||||
Apr. 30, 2015 | ||||||||||||||||
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, 2015 and 2014 was as follows: | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 30, | April 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In thousands) | ||||||||||||||||
Service cost | $ | 802 | $ | 737 | $ | 1,683 | $ | 1,657 | ||||||||
Interest cost | 257 | 269 | 510 | 532 | ||||||||||||
Expected return on plan assets | (443 | ) | (438 | ) | (904 | ) | (861 | ) | ||||||||
Amortization of net loss | 40 | — | 79 | — | ||||||||||||
Net periodic benefit cost | $ | 656 | $ | 568 | $ | 1,368 | $ | 1,328 | ||||||||
Warranty_Obligations_Tables
Warranty Obligations (Tables) | 6 Months Ended | |||
Apr. 30, 2015 | ||||
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, 2015 | ||||
(In thousands) | ||||
Beginning balance as of November 1, 2014 | $ | 671 | ||
Provision for warranty expense | 263 | |||
Change in accrual for preexisting warranties | 99 | |||
Warranty costs paid | (124 | ) | ||
Total accrued warranty as of the end of the period | $ | 909 | ||
Less: Current portion of accrued warranty | 678 | |||
Long-term portion of accrued warranty | $ | 231 | ||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 6 Months Ended | |||||||||||||||||
Apr. 30, 2015 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [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, 2015 and 2014 as follows (in thousands): | |||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
April 30, | April 30, | |||||||||||||||||
Location of (Loss) Gain: | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
Other, net | Foreign currency derivatives | $ | (38 | ) | $ | (208 | ) | $ | 614 | $ | (94 | ) | ||||||
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, 2015 and October 31, 2014 were as follows (in thousands): | ||||||||||||||||||
April 30, 2015 | October 31, 2014 | |||||||||||||||||
Prepaid and other current assets: | ||||||||||||||||||
Foreign currency derivatives | $ | 298 | $ | 69 | ||||||||||||||
Accrued liabilities: | ||||||||||||||||||
Foreign currency derivatives | $ | (2 | ) | $ | — | |||||||||||||
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, 2015 and October 31, 2014 (in thousands): | |||||||||||||||||
Notional as indicated | Fair Value in $ | |||||||||||||||||
April 30, | October 31, | April 30, | October 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
Foreign currency derivatives: | ||||||||||||||||||
Sell EUR, buy USD | EUR | 7,555 | $ | 4,907 | $ | 289 | $ | 68 | ||||||||||
Sell CAD, buy USD | CAD | 296 | 331 | 2 | 1 | |||||||||||||
Sell GBP, buy USD | GBP | 267 | — | 6 | — | |||||||||||||
Buy EUR, sell GBP | EUR | 97 | — | (2 | ) | — | ||||||||||||
Buy USD, sell EUR | USD | 23 | — | 1 | — | |||||||||||||
Buy GBP, sell EUR | GBP | 5 | — | $ | — | — | ||||||||||||
Fair_Value_Measurement_of_Asse1
Fair Value Measurement of Assets and Liabilities (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||
Apr. 30, 2015 | ||||||||||||||||||||||||||||||||
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, 2015 | October 31, 2014 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Short-term investments | $ | 10,000 | $ | — | $ | — | $ | 10,000 | $ | 69,975 | $ | — | $ | — | $ | 69,975 | ||||||||||||||||
Foreign currency derivatives | — | 298 | — | 298 | — | 69 | — | 69 | ||||||||||||||||||||||||
Total assets | $ | 10,000 | $ | 298 | $ | — | $ | 10,298 | $ | 69,975 | $ | 69 | $ | — | $ | 70,044 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Foreign currency derivatives | $ | — | $ | 2 | $ | — | $ | 2 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Total liabilities | $ | — | $ | 2 | $ | — | $ | 2 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | ||||||||||||
Apr. 30, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Schedule of Nonvested Restricted Share Activity | A summary of non-vested restricted stock awards activity during the six months ended April 30, 2015 is presented below: | ||||||||||||
Restricted Stock Awards | Weighted Average | ||||||||||||
Grant Date Fair Value per Share | |||||||||||||
Non-vested at October 31, 2014 | 220,800 | $ | 17.42 | ||||||||||
Granted | 68,800 | 20.28 | |||||||||||
Cancelled | — | — | |||||||||||
Vested | (33,500 | ) | 15.08 | ||||||||||
Non-vested at April 30, 2015 | 256,100 | $ | 18.49 | ||||||||||
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, 2015 and 2014. | ||||||||||||
Six Months Ended | |||||||||||||
April 30, | |||||||||||||
2015 | 2014 | ||||||||||||
Weighted-average expected volatility | 47.70% | 55.70% | |||||||||||
Weighted-average expected term (in years) | 5.6 | 5.9 | |||||||||||
Risk-free interest rate | 1.60% | 1.80% | |||||||||||
Expected dividend yield over expected term | 1.00% | 1.00% | |||||||||||
Weighted average grant date fair value | $8.40 | $8.52 | |||||||||||
Schedule of Stock Option Activity | The following table summarizes our stock option activity for the six months ended April 30, 2015: | ||||||||||||
Stock Options | Weighted Average | Weighted Average | Aggregate | ||||||||||
Exercise Price | Remaining Contractual | Intrinsic | |||||||||||
Term (in years) | Value (000s) | ||||||||||||
Outstanding at October 31, 2014 | 2,588,389 | $ | 16.21 | ||||||||||
Granted | 123,900 | 20.28 | |||||||||||
Exercised | (273,950 | ) | 15.26 | ||||||||||
Forfeited/Expired | (167 | ) | 15.08 | ||||||||||
Outstanding at April 30, 2015 | 2,438,172 | $ | 16.52 | 6 | $ | 7,591 | |||||||
Vested or expected to vest at April 30, 2015 | 2,411,605 | $ | 16.49 | 5.9 | $ | 7,577 | |||||||
Exercisable at April 30, 2015 | 1,972,200 | $ | 15.95 | 5.4 | $ | 7,105 | |||||||
Schedule of Restricted Stock Units Activity | The following table summarizes non-vested restricted stock unit activity during the six months ended April 30, 2015: | ||||||||||||
Restricted Stock Units | Weighted Average | ||||||||||||
Grant Date Fair Value per Share | |||||||||||||
Non-vested at October 31, 2014 | 83,500 | $ | 15.08 | ||||||||||
Vested | (83,500 | ) | 15.08 | ||||||||||
Non-vested at April 30, 2015 | — | $ | — | ||||||||||
Treasury Stock Activity | The following table summarizes the treasury stock activity during the six months ended April 30, 2015: | ||||||||||||
Six Months Ended | |||||||||||||
April 30, 2015 | |||||||||||||
Beginning balance as of November 1, 2014 | 1,417,700 | ||||||||||||
Restricted stock awards granted | (68,800 | ) | |||||||||||
Stock options exercised | (273,950 | ) | |||||||||||
Shares purchased | 2,675,903 | ||||||||||||
Balance at end of period | 3,750,853 | ||||||||||||
Other_Income_Expense_Tables
Other Income (Expense) (Tables) | 6 Months Ended | |||||||||||||||
Apr. 30, 2015 | ||||||||||||||||
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, 2015 and 2014: | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
April 30, | April 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In thousands) | ||||||||||||||||
Foreign currency transaction (losses) gains | $ | (88 | ) | $ | 170 | $ | (922 | ) | $ | 66 | ||||||
Foreign currency derivative (losses) gains | (38 | ) | (208 | ) | 614 | (94 | ) | |||||||||
Interest income | 8 | 16 | 39 | 22 | ||||||||||||
Other | 3 | — | 3 | 80 | ||||||||||||
Other (expense) income | $ | (115 | ) | $ | (22 | ) | $ | (266 | ) | $ | 74 | |||||
Earnings_Per_Share_Earnings_Pe
Earnings Per Share Earnings Per Share (Tables) | 6 Months Ended | ||||||||||
Apr. 30, 2015 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Basic and diluted earnings per share from continuing operations for the three-month period ended April 30, 2015 was calculated as follows (in thousands, except per share data): | ||||||||||
Three Months Ended April 30, 2015 | |||||||||||
Net Income from Continuing Operations | Weighted Average Shares | Per Share | |||||||||
Basic earnings per common share | $ | 2,294 | 33,621 | $ | 0.07 | ||||||
Effect of dilutive securities: | |||||||||||
Stock options | — | 429 | |||||||||
Restricted stock awards | — | 116 | |||||||||
Diluted earnings per common share | $ | 2,294 | 34,166 | $ | 0.07 | ||||||
Nature_of_Operations_and_Basis2
Nature of Operations and Basis of Presentation (Details) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 14 Months Ended | ||
Mar. 31, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | Jul. 31, 2014 | Jan. 31, 2015 | |
segment | segment | ||||||
operating_segment | |||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||
Number of reportable segments | 2 | 1 | |||||
Number of Operating Segments | 4 | ||||||
Disposal Group, Including Discontinued Operation, Additional Disclosures [Abstract] | |||||||
Proceeds from sale of Nichols | $0 | $110,000,000 | $107,400,000 | ||||
Working capital adjustment | 2,600,000 | 2,600,000 | |||||
Gain on sale | 24,580,000 | 24,100,000 | 24,580,000 | ||||
Tax effect on gain on sale | 15,100,000 | ||||||
Purchases of aluminum product from Nichols | 1,600,000 | 3,300,000 | 6,200,000 | 6,800,000 | |||
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 | 513,000 | 1,400,000 | 5,300,000 | ||||
Insurance proceeds expected to receive related to fire at Nichols | 6,300,000 | 6,300,000 | |||||
Expected gain on involuntary conversion | 3,900,000 | 3,900,000 | |||||
Gain on involuntary conversion related to fire at Nichols | 2,900,000 | ||||||
Remaining gain on involuntary conversion related to fire at Nichols | 1,000,000 | 1,000,000 | |||||
Insurance Claims Expense, Amount Reimbursable | $500,000 |
Nature_of_Operations_and_Basis3
Nature of Operations and Basis of Presentation - Results of Operations, Discontinued Operations (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Net sales | $63,306 | $142,797 | ||
Operating loss | -4,931 | -9,182 | ||
Loss before income taxes | -4,003 | -8,271 | ||
Income tax benefit | 1,584 | 3,163 | ||
Gain on Sale, Net of Tax | 24,580 | 24,100 | 24,580 | |
Net loss | $0 | $22,161 | $23 | $19,472 |
Basic loss per common share (in usd per share) | $0 | $0.59 | $0 | $0.53 |
Diluted loss per common share (in usd per share) | $0 | $0.58 | $0 | $0.52 |
Nature_of_Operations_and_Basis4
Nature of Operations and Basis of Presentation - Summary of Product Sales (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 |
Product Information [Line Items] | ||||
Total sales | $141,970 | $135,208 | $269,863 | $261,587 |
Fenestration | United States | ||||
Product Information [Line Items] | ||||
Total sales | 106,601 | 98,501 | 202,792 | 195,924 |
Fenestration | International | ||||
Product Information [Line Items] | ||||
Total sales | 20,213 | 24,759 | 37,989 | 43,382 |
Non-fenestration | United States | ||||
Product Information [Line Items] | ||||
Total sales | 11,660 | 9,179 | 21,134 | 16,371 |
Non-fenestration | International | ||||
Product Information [Line Items] | ||||
Total sales | $3,496 | $2,769 | $7,948 | $5,910 |
Acquisitions_Detail
Acquisitions (Detail) (Greenville, USD $) | 0 Months Ended | 6 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Apr. 30, 2014 | Dec. 31, 2013 |
Greenville | |||
Business Acquisition [Line Items] | |||
Inventories | $161 | $161 | |
Prepaid and other current assets | 145 | 145 | |
Property, plant and equipment | 4,695 | 4,695 | |
Intangible assets | 290 | 290 | |
Deferred income tax liability | -50 | -50 | |
Net assets acquired | 5,241 | 5,241 | |
Cash paid for acquisition, net of cash and cash equivalents acquired | 5,161 | ||
Gain recognized on bargain purchase | $80 | $100 |
Inventories_Detail
Inventories (Detail) (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
Inventory, Raw Materials and Supplies, Net of Reserves [Abstract] | ||
Raw materials | $39,928,000 | $36,751,000 |
Finished goods and work in process | 29,126,000 | 25,558,000 |
Supplies and other | 1,225,000 | 806,000 |
Total | 70,279,000 | 63,115,000 |
Less: Inventory reserves | 7,285,000 | 5,757,000 |
Inventories, net | 62,994,000 | 57,358,000 |
Inventory, Net [Abstract] | ||
LIFO | 6,048,000 | 5,122,000 |
FIFO | 56,946,000 | 52,236,000 |
Inventories, net | 62,994,000 | 57,358,000 |
Excess of replacement cost over LIFO value | $1,400,000 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Goodwill (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Oct. 31, 2014 |
reporting_unit | ||
Goodwill [Line Items] | ||
Number of reporting units with goodwill | 3 | |
Goodwill [Roll Forward] | ||
Beginning balance | $70,546 | |
Foreign currency translation adjustment | -1,758 | |
Balance as of the end of the period | 68,788 | |
Reporting Unit One | ||
Goodwill [Roll Forward] | ||
Beginning balance | 55,200 | |
Balance as of the end of the period | 55,200 | |
Reporting Unit Two | ||
Goodwill [Roll Forward] | ||
Beginning balance | 12,600 | |
Balance as of the end of the period | 12,600 | |
Reporting Unit Three | ||
Goodwill [Roll Forward] | ||
Beginning balance | 2,800 | |
Balance as of the end of the period | $2,800 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Identifiable Intangible Assets (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | Oct. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | $124,441,000 | $124,441,000 | $124,441,000 | ||
Accumulated amortization | 58,793,000 | 58,793,000 | 54,291,000 | ||
Intangible assets amortization expense | 2,200,000 | 2,300,000 | 4,500,000 | 4,600,000 | |
Estimated Amortization Expense | |||||
2015 (remaining six months) | 4,612,000 | 4,612,000 | |||
2016 | 8,713,000 | 8,713,000 | |||
2017 | 8,607,000 | 8,607,000 | |||
2018 | 8,360,000 | 8,360,000 | |||
2019 | 7,571,000 | 7,571,000 | |||
Thereafter | 27,785,000 | 27,785,000 | |||
Total | 65,648,000 | 65,648,000 | 70,150,000 | ||
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 53,083,000 | 53,083,000 | 53,083,000 | ||
Accumulated amortization | 21,745,000 | 21,745,000 | 19,700,000 | ||
Trademarks and trade names | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 44,722,000 | 44,722,000 | 44,722,000 | ||
Accumulated amortization | 21,712,000 | 21,712,000 | 20,343,000 | ||
Patents and other technology | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 25,244,000 | 25,244,000 | 25,244,000 | ||
Accumulated amortization | 14,177,000 | 14,177,000 | 13,228,000 | ||
Other | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | 1,392,000 | 1,392,000 | 1,392,000 | ||
Accumulated amortization | 1,159,000 | 1,159,000 | 1,020,000 | ||
Greenville | Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Customer relationships related to acquired Greenville facility | $200,000 | $200,000 | |||
Useful life of customer relationships related to acquired Greenville facility | 4 years |
Debt_and_Capital_Lease_Obligat2
Debt and Capital Lease Obligations (Detail) (USD $) | 6 Months Ended | ||
Apr. 30, 2015 | Oct. 31, 2014 | Jan. 28, 2013 | |
Debt Disclosure [Line Items] | |||
Document Period End Date | 30-Apr-15 | ||
Total debt | $634,000 | $785,000 | |
Less: Current maturities of long-term debt | 179,000 | 199,000 | |
Long-term debt | 455,000 | 586,000 | |
Debt Disclosure [Abstract] | |||
Credit Facility, commitments increase limit | 100,000,000 | ||
Credit facility, total commitments limit | 250,000,000 | ||
Required consolidated interest coverage ratio | 3 | ||
Required consolidated leverage ratio | 3.25 | ||
Credit Facility, amount available | 143,400,000 | 140,700,000 | |
Letters of credit, outstanding | 5,900,000 | 6,100,000 | |
Current borrowing rate - Revolver | 3.25% | 3.25% | |
Current borrowing rate - Swing line sub facility | 1.20% | 1.20% | |
Revolving Credit Facility | |||
Debt Disclosure [Line Items] | |||
Revolving Credit Facility | 0 | 0 | |
Credit facility, maximum borrowing capacity | 150,000,000 | ||
City of Richmond, Kentucky Industrial Building Revenue Bonds | |||
Debt Disclosure [Line Items] | |||
City of Richmond, Kentucky Industrial Building Revenue Bonds | 500,000 | 600,000 | |
Capital Lease Obligations | |||
Debt Disclosure [Line Items] | |||
Capital lease obligations | $134,000 | $185,000 |
Retirement_Plans_Detail
Retirement Plans (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jan. 31, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | Oct. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||||||
Defined benefit plan, contributions by employer | $4,100,000 | |||||
Supplemental benefit plan liability | 1,800,000 | 1,800,000 | 1,900,000 | |||
Deferred compensation liability | 3,400,000 | 3,400,000 | 3,400,000 | |||
Deferred compensation plan, employer contributions | 3,300,000 | |||||
Net periodic benefit cost: | ||||||
Service cost | 802,000 | 737,000 | 1,683,000 | 1,657,000 | ||
Interest cost | 257,000 | 269,000 | 510,000 | 532,000 | ||
Expected return on plan assets | -443,000 | -438,000 | -904,000 | -861,000 | ||
Amortization of net loss | 40,000 | 0 | 79,000 | 0 | ||
Net periodic benefit cost | $656,000 | $568,000 | $1,368,000 | $1,328,000 |
Warranty_Obligations_Detail
Warranty Obligations (Detail) (USD $) | 6 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Reduction in warranty accrual related to Insulating Glass business | $2,800,000 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Accrued warranty at beginning of period | 671,000 | |
Provision for warranty expense | 263,000 | |
Change in accrual for preexisting warranties | 99,000 | |
Warranty costs paid | -124,000 | |
Accrued warranty at end of period | 909,000 | |
Less: Current portion of accrued warranty | 678,000 | |
Long-term portion of accrued warranty | $231,000 |
Income_Taxes_Detail
Income Taxes (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2015 | Apr. 30, 2015 | Apr. 30, 2014 | Oct. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Estimated annual effective tax rate (benefit) expense | -67.70% | -16.90% | ||
Effective income tax rate excluding discrete items | 35.50% | 33.60% | ||
Unrecognized tax benefits | $11,400,000 | |||
Liability for uncertain tax positions | 548,000 | 4,626,000 | ||
Uncertain tax position in non-current deferred taxes | 6,800,000 | |||
Reduced liability uncertain tax position resulting from lapse in statute of limitations | 4,000,000 | |||
Increase (Decrease) in Deferred Income Taxes | 6,800,000 | |||
Liability reduction of uncertain tax position resulted in increase to retained earnings | 10,003,000 | |||
Reduction in uncertain tax position resulting in decrease in income tax expense | 800,000 | |||
Valuation allowance | $1,400,000 |
Contingencies_Contingencies_De
Contingencies Contingencies (Details) (USD $) | 6 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Oct. 31, 2014 | |
Other Commitments [Line Items] | ||
Net claim payments | $124,000 | |
Spacer Migration | ||
Other Commitments [Line Items] | ||
Product warranty expense | 1,800,000 | |
Spacer specific product warranty accrual | 1,000,000 | 1,200,000 |
Net claim payments | 300,000 | |
Product Warranty Accrual, Period Increase (Decrease) | 200,000 | |
Translation adjustment | $100,000 |
Derivative_Instruments_Detail
Derivative Instruments (Detail) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | Oct. 31, 2014 | Apr. 30, 2015 | Apr. 30, 2015 | Oct. 31, 2014 | Oct. 31, 2014 | Apr. 30, 2015 | Apr. 30, 2015 | Oct. 31, 2014 | Oct. 31, 2014 | Apr. 30, 2015 | Apr. 30, 2015 | Oct. 31, 2014 | Oct. 31, 2014 | Apr. 30, 2015 | Apr. 30, 2015 | Oct. 31, 2014 | Oct. 31, 2014 | Apr. 30, 2015 | Oct. 31, 2014 | Apr. 30, 2015 | Apr. 30, 2015 | Oct. 31, 2014 | Oct. 31, 2014 | Apr. 30, 2015 | Oct. 31, 2014 | Apr. 30, 2015 | Oct. 31, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Sell EUR, buy USD | Sell EUR, buy USD | Sell EUR, buy USD | Sell EUR, buy USD | Sell CAD, buy USD | Sell CAD, buy USD | Sell CAD, buy USD | Sell CAD, buy USD | Sell GBP, buy USD | Sell GBP, buy USD | Sell GBP, buy USD | Sell GBP, buy USD | Buy EUR, sell GBP | Buy EUR, sell GBP | Buy EUR, sell GBP | Buy EUR, sell GBP | Buy USD, Sell EUR | Buy USD, Sell EUR | Buy GBP, Sell EUR | Buy GBP, Sell EUR | Buy GBP, Sell EUR | Buy GBP, Sell EUR | Prepaid and Other Current Assets | Prepaid and Other Current Assets | Accrued Liabilities | Accrued Liabilities | Other, Net | Other, Net | Other, Net | Other, Net | |
USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | CAD | USD ($) | CAD | USD ($) | GBP (£) | USD ($) | GBP (£) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | GBP (£) | USD ($) | GBP (£) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||||||||||||||||
Foreign currency derivatives | ($38) | ($208) | $614 | ($94) | ($38) | ($208) | $614 | ($94) | |||||||||||||||||||||||||||
Derivatives [Line Items] | |||||||||||||||||||||||||||||||||||
Foreign currency derivatives, asset | 298 | 298 | 69 | 298 | 69 | ||||||||||||||||||||||||||||||
Foreign currency derivatives, liability | -2 | -2 | 0 | -2 | 0 | ||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||||||||||||||||||||||
Derivatives, notional amount | 7,555 | 4,907 | 296 | 331 | 267 | 0 | 97 | 0 | 23 | 0 | 5 | 0 | |||||||||||||||||||||||
Foreign currency derivatives, fair value | 289 | 68 | 2 | 1 | 6 | 0 | -2 | 0 | 1 | 0 | 0 | ||||||||||||||||||||||||
Price Risk Derivative Instruments Not Designated as Hedging Instruments, at Fair Value, Net | $0 |
Fair_Value_Measurement_of_Asse2
Fair Value Measurement of Assets and Liabilities (Details) (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $10,000,000 | $69,975,000 |
Foreign currency derivatives, asset | 298,000 | 69,000 |
Total assets | 10,298,000 | 70,044,000 |
Foreign currency derivatives, liability | 2,000 | 0 |
Total liabilities | 2,000 | 0 |
Property, plant and equipment at fair value (non-recurring) | 2,400,000 | 2,400,000 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 10,000,000 | 69,975,000 |
Total assets | 10,000,000 | 69,975,000 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivatives, asset | 298,000 | 69,000 |
Total assets | 298,000 | 69,000 |
Foreign currency derivatives, liability | 2,000 | 0 |
Total liabilities | $2,000 | $0 |
Stock_Based_Compensation_Detai
Stock Based Compensation (Detail) | 6 Months Ended |
Apr. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Document Period End Date | 30-Apr-15 |
Number of shares authorized, originally | 2,900,000 |
Stockholders' Meeting Held in 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of additional shares authorized | 2,400,000 |
Stockholders' Meeting Held in 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of additional shares authorized | 2,350,000 |
StockBased_Compensation_Restri
Stock-Based Compensation - Restricted Stock Awards (Details) (Restricted Stock Awards (RSAs), USD $) | 6 Months Ended | |
In Millions, except Share data, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Restricted Stock Awards (RSAs) | ||
Number of Shares | ||
Non-vested at beginning of the period (in shares) | 220,800 | |
Granted (in shares) | 68,800 | |
Cancelled (in shares) | 0 | |
Vested (in shares) | -33,500 | |
Non-vested at end of the period (in shares) | 256,100 | |
Weighted Average Grant Date Fair Value per Share | ||
Non-vested at beginning of the period (in usd per share) | $17.42 | |
Granted (in usd per share) | $20.28 | |
Cancelled (in usd per share) | $0 | |
Vested (in usd per share) | $15.08 | |
Non-vested at end of the period (in usd per share) | $18.49 | |
Vesting period | 3 years | |
Fair value of restricted stock awards vested | $0.50 | $0.50 |
Unrecognized compensation cost - non vested restricted stock awards | $2.30 | |
Weighted-average period over which unrecognized cost is expected to be recognized | 1 year 7 months 6 days |
StockBased_Compensation_Stock_
Stock-Based Compensation - Stock Options (Details) (USD $) | 6 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Fair Value Assumptions [Abstract] | ||
Weighted-average expected volatility | 47.70% | 55.70% |
Weighted-average expected term (in years) | 5 years 7 months 6 days | 5 years 10 months 24 days |
Risk-free interest rate | 1.60% | 1.80% |
Expected dividend yield over expected term | 1.00% | 1.00% |
Weighted average grant date fair value | $8.40 | $8.52 |
Stock Options, [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 2,588,389 | |
Granted (in shares) | 123,900 | |
Exercised (in shares) | -273,950 | |
Forfeited/Expired (in shares) | -167 | |
Outstanding at end of period (in shares) | 2,438,172 | |
Vested or expected to vest at end of period (in shares) | 2,411,605 | |
Exercisable at end of period (in shares) | 1,972,200 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of period (in usd per share) | $16.21 | |
Granted (in usd per share) | $20.28 | |
Exercised (in usd per share) | $15.26 | |
Forfeited/Expired (in usd per share) | $15.08 | |
Outstanding at end of period (in usd per share) | $16.52 | |
Vested or expected to vest at end of period (in usd per share) | $16.49 | |
Exercisable at end of period (in usd per share) | $15.95 | |
Weighted Average Remaining Contractual Life | ||
Outstanding at end of period | 6 years | |
Vested or expected to vest at end of period | 5 years 10 months 24 days | |
Exercisable at end of period | 5 years 4 months 24 days | |
Aggregate Intrinsic Value | ||
Outstanding at end of period | $7,591,000 | |
Vested or expected to vest at end of period | 7,577,000 | |
Exercisable at end of period | 7,105,000 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Total intrinsic value of options exercised | 1,100,000 | 2,600,000 |
Fair value of stock options vested | 2,300,000 | 3,000,000 |
Unrecognized compensation cost - non vested stock options | $2,300,000 | |
Weighted-average period over which unrecognized cost is expected to be recognized | 1 year 6 months |
StockBased_Compensation_Restri1
Stock-Based Compensation - Restricted Stock Units (Details) (USD $) | 6 Months Ended | |
In Millions, except Share data, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cash used to settle restricted stock units | $1.70 | $0.50 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Number of Shares | ||
Non-vested at beginning of the period (in shares) | 83,500 | |
Vested (in shares) | -83,500 | |
Non-vested at end of the period (in shares) | 0 | |
Weighted Average Grant Date Fair Value Per Share | ||
Non-vested at beginning of the period (in usd per share) | $15.08 | |
Vested (in usd per share) | $15.08 | |
Non-vested at end of the period (in usd per share) | $0 |
StockBased_Compensation_Perfor
Stock-Based Compensation - Performance Share Awards (Details) (Performance Shares, USD $) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 30, 2015 | Apr. 30, 2014 | Oct. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Performance shares settled in cash | 50.00% | ||||
Performance shares settled in stock | 50.00% | ||||
Performance shares granted | 137,400 | 155,800 | |||
Performance shares forfeited | 7,000 | ||||
Performance shares compensation expense | $0.80 | $0.50 | |||
Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance shares vesting percentage maximum | 0.00% | ||||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance shares vesting percentage maximum | 200.00% |
StockBased_Compensation_Treasu
Stock-Based Compensation - Treasury Shares (Details) (USD $) | 6 Months Ended | 12 Months Ended | |
Apr. 30, 2015 | Feb. 28, 2015 | Oct. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Document Period End Date | 30-Apr-15 | ||
Stock repurchase program, authorized amount | $75,000,000 | ||
Purchase of treasury stock | 50,761,000 | 75,000,000 | 24,200,000 |
Deficiency of stock option proceeds recorded to retained earnings | $700,000 | ||
Treasury Stock [Abstract] | |||
Beginning balance as of November 1, 2014 | 1,417,700 | ||
Shares purchased | 2,675,903 | 3,992,229 | 1,316,326 |
Balance at end of period | 3,750,853 | 1,417,700 | |
Restricted Stock Awards (RSAs) | |||
Treasury Stock [Abstract] | |||
Restricted stock awards granted | -68,800 | ||
Stock Options | |||
Treasury Stock [Abstract] | |||
Shares, Issued | -273,950 | ||
Shares purchased | 2,675,903 |
Other_Income_Expense_Detail
Other Income (Expense) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 |
Other Income and Expenses [Abstract] | ||||
Foreign currency transaction (losses) gains | ($88) | $170 | ($922) | $66 |
Foreign currency derivative (losses) gains | -38 | -208 | 614 | -94 |
Interest income | 8 | 16 | 39 | 22 |
Other | 3 | 0 | 3 | 80 |
Other (expense) income | ($115) | ($22) | ($266) | $74 |
Earnings_Per_Share_Detail
Earnings Per Share (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | |
Earnings Per Share Disclosure [Line Items] | ||||
Income (loss) from continuing operations | $2,294,000 | ($2,030,000) | ($800,000) | ($3,241,000) |
Basic (in shares) | 33,621,000 | 37,217,000 | 34,362,000 | 37,108,000 |
Loss per share, basic (in usd per share) | $0.07 | $0.54 | ($0.02) | $0.44 |
Loss per share, diluted (in usd per share) | $0.07 | $0.53 | ($0.02) | $0.43 |
Document Period End Date | 30-Apr-15 | |||
Antidilutive securities (in shares) | 920,662 | 731,272 | 971,284 | |
Diluted (in shares) | 34,166,000 | 37,838,000 | 34,362,000 | 37,726,000 |
Stock Options | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Potentially dilutive securities (in shares) | 513,653 | 451,590 | 521,719 | |
Restricted Stock Awards (RSAs) | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Potentially dilutive securities (in shares) | 107,589 | 107,748 | 95,912 | |
Performance Shares | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Potentially dilutive securities (in shares) | $0 | $0 | $0 | $0 |
Restricted Stock [Member] | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 116,000 | |||
Stock Options | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 429,000 |