Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Oct. 31, 2018 | Dec. 07, 2018 | Apr. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Quanex Building Products Corporation | ||
Entity Central Index Key | 1,423,221 | ||
Trading Symbol | NX | ||
Current Fiscal Year End Date | --10-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Oct. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 33,500,953 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 593,689,919 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 29,003 | $ 17,455 |
Accounts receivable, net of allowance for doubtful accounts of $251 and $673 | 84,014 | 79,411 |
Inventories, net | 69,365 | 87,529 |
Prepaid and other current assets | 7,296 | 7,406 |
Total current assets | 189,678 | 191,801 |
Property, plant and equipment, net of accumulated depreciation of $245,128 and $217,512 | 201,370 | 211,131 |
Goodwill | 219,627 | 222,194 |
Intangible assets, net | 121,919 | 139,778 |
Other assets | 9,255 | 8,975 |
Total assets | 741,849 | 773,879 |
Current liabilities: | ||
Accounts payable | 52,389 | 44,150 |
Accrued liabilities | 45,968 | 38,871 |
Income taxes payable | 2,780 | 2,192 |
Current maturities of long-term debt | 1,224 | 21,242 |
Total current liabilities | 102,361 | 106,455 |
Long-term debt | 209,332 | 218,184 |
Deferred pension and postretirement benefits | 4,218 | 4,433 |
Deferred income taxes | 17,215 | 21,960 |
Liability for uncertain tax positions | 606 | 591 |
Other liabilities | 13,965 | 15,409 |
Total liabilities | 347,697 | 367,032 |
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 37,433,817 and 37,508,877 respectively; outstanding 33,339,032 and 34,838,134, respectively | 374 | 375 |
Additional paid-in-capital | 254,678 | 255,719 |
Retained earnings | 242,834 | 225,704 |
Accumulated other comprehensive loss | (30,705) | (25,076) |
Less: Treasury stock at cost, 4,094,785 and 2,670,743 shares, respectively | (73,029) | (49,875) |
Total stockholders’ equity | 394,152 | 406,847 |
Total liabilities and stockholders' equity | $ 741,849 | $ 773,879 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 325 | $ 333 |
Accumulated Depreciation of property assets | $ 288,607 | $ 264,047 |
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 37,433,817 | 37,508,877 |
Common stock, shares outstanding | 33,339,032 | 34,838,134 |
Treasury stock at cost (shares) | 4,094,785 | 2,670,743 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 889,785 | $ 866,555 | $ 928,184 |
Cost and expenses: | |||
Cost of sales (excluding depreciation and amortization) | 696,567 | 672,162 | 710,644 |
Selling, general and administrative | 103,535 | 97,981 | 114,910 |
Restructuring charges | 1,486 | 4,550 | 529 |
Depreciation and amortization | 51,822 | 57,495 | 53,146 |
Asset impairment charges | 0 | 0 | 12,602 |
Operating income | 36,375 | 34,367 | 36,353 |
Non-operating (expense) income: | |||
Interest expense | (11,100) | (9,595) | (36,498) |
Other, net | 178 | 730 | (5,479) |
Income (loss) from continuing operations before income taxes | 25,453 | 25,502 | (5,624) |
Income tax benefit (expense) | 875 | (6,819) | 3,765 |
Net income | $ 26,328 | $ 18,683 | $ (1,859) |
Earnings Per Share [Abstract] | |||
Basic earnings (loss) per common share | $ 0.76 | $ 0.55 | $ (0.05) |
Diluted earnings (loss) per common share | $ 0.75 | $ 0.54 | $ (0.05) |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 34,701 | 34,230 | 33,876 |
Diluted (in shares) | 35,025 | 34,837 | 33,876 |
Cash dividends paid per common share (usd per share) | $ 0.20 | $ 0.16 | $ 0.16 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 26,328 | $ 18,683 | $ (1,859) |
Foreign currency translation adjustments (loss) gain | (6,640) | 11,524 | (26,838) |
Change in pension from net unamortized gain (loss) (pretax) | 2,253 | 3,462 | (2,864) |
Change in pension from net unamortized gain (loss) tax (expense) benefit | (1,242) | (1,297) | 986 |
Total other comprehensive (loss) income, net of tax | (5,629) | 13,689 | (28,716) |
Comprehensive income (loss) | $ 20,699 | $ 32,372 | $ (30,575) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) | Total | Common Stock Shares | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock Shares | Treasury Stock |
Common stock, shares at Oct. 31, 2015 | 37,609,563 | |||||||
Stockholders' equity, value at Oct. 31, 2015 | $ 395,295,000 | $ 376,000 | $ 250,937,000 | $ 222,138,000 | $ (10,049,000) | $ (68,107,000) | ||
Treasury shares (in shares) at Oct. 31, 2015 | (3,647,103) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (1,859,000) | (1,859,000) | ||||||
Foreign currency translation adjustment (net of taxes) | (26,838,000) | (26,838,000) | ||||||
Change in pension from net unamortized gain | (1,878,000) | (1,878,000) | ||||||
Common dividends ($0.16 per share) | (5,470,000) | (5,470,000) | ||||||
Stock-based compensation activity: | ||||||||
Expense related to stock-based compensation | 6,089,000 | 6,089,000 | ||||||
Stock options exercised | $ 3,400,000 | (106,000) | (637,000) | 4,143,000 | ||||
Stock options exercised (in shares) | 221,850 | 221,850 | ||||||
Tax benefit from share-based compensation | $ (146,000) | (146,000) | ||||||
Restricted stock awards granted | 0 | (1,591,000) | (6,000) | 1,597,000 | ||||
Restricted stock awards granted (in shares) | 0 | 85,500 | ||||||
Other (in shares) | (49,314) | |||||||
Other | (762,000) | 0 | (643,000) | (119,000) | 0 | |||
Common stock, shares at Oct. 31, 2016 | 37,560,249 | |||||||
Stockholders' equity, value at Oct. 31, 2016 | 367,831,000 | 376,000 | 254,540,000 | 214,047,000 | (38,765,000) | (62,367,000) | ||
Treasury shares (in shares) at Oct. 31, 2016 | (3,339,753) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 18,683,000 | 18,683,000 | ||||||
Foreign currency translation adjustment (net of taxes) | 11,524,000 | 11,524,000 | ||||||
Change in pension from net unamortized gain | 2,165,000 | 2,165,000 | ||||||
Common dividends ($0.16 per share) | (5,516,000) | (5,516,000) | ||||||
Stock-based compensation activity: | ||||||||
Expense related to stock-based compensation | 5,189,000 | 5,189,000 | ||||||
Stock options exercised | 7,953,000 | (76,000) | (1,451,000) | 9,480,000 | ||||
Deficiency of stock option proceeds recorded to retained earnings | $ 1,500,000 | |||||||
Stock options exercised (in shares) | 507,660 | 507,660 | ||||||
Tax benefit from share-based compensation | $ (4,000) | (4,000) | ||||||
Restricted stock awards granted | 0 | (1,752,000) | 0 | 1,752,000 | ||||
Restricted stock awards granted (in shares) | 0 | 161,350 | ||||||
Stock Issued During Period, Value, Performance Shares Vested | (1,261,000) | 1,261,000 | ||||||
Recognition of unrecognized tax benefit | 10,100,000 | |||||||
Other (in shares) | (51,372) | |||||||
Other | $ (978,000) | (1,000) | (917,000) | (59,000) | (1,000) | |||
Common stock, shares at Oct. 31, 2017 | 37,508,877 | 37,508,877 | ||||||
Stockholders' equity, value at Oct. 31, 2017 | $ 406,847,000 | 375,000 | 255,719,000 | 225,704,000 | (25,076,000) | (49,875,000) | ||
Treasury shares (in shares) at Oct. 31, 2017 | (2,670,743) | (2,670,743) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | $ 26,328,000 | 26,328,000 | ||||||
Foreign currency translation adjustment (net of taxes) | (6,640,000) | (6,640,000) | ||||||
Change in pension from net unamortized gain | 1,011,000 | 1,011,000 | ||||||
Common dividends ($0.16 per share) | $ (7,020,000) | (7,020,000) | ||||||
Stock Repurchased During Period, Shares | (1,900,000) | |||||||
Stock Repurchased During Period, Value | $ (32,034,000) | |||||||
Stock-based compensation activity: | ||||||||
Expense related to stock-based compensation | 1,874,000 | 1,874,000 | ||||||
Stock options exercised | 4,746,000 | (149,000) | 7,036,000 | |||||
Deficiency of stock option proceeds recorded to retained earnings | $ (2,141,000) | |||||||
Stock options exercised (in shares) | 377,218 | 377,218 | ||||||
Restricted stock awards granted | $ 0 | (1,371,000) | 0 | 1,371,000 | ||||
Restricted stock awards granted (in shares) | 0 | 73,400 | ||||||
Performance share awards vested | $ 25,340 | |||||||
Stock Issued During Period, Value, Performance Shares Vested | (473,000) | 473,000 | ||||||
Other (in shares) | (75,060) | |||||||
Other | $ (960,000) | (1,000) | (922,000) | (37,000) | 0 | 0 | ||
Common stock, shares at Oct. 31, 2018 | 37,433,817 | 37,433,817 | ||||||
Stockholders' equity, value at Oct. 31, 2018 | $ 394,152,000 | $ 374,000 | $ 254,678,000 | $ 242,834,000 | $ (30,705,000) | $ (73,029,000) | ||
Treasury shares (in shares) at Oct. 31, 2018 | (4,094,785) | (4,094,785) |
Consolidated Statement of Sto_2
Consolidated Statement of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||
Cash dividends paid per common share (usd per share) | $ 0.08 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.20 | $ 0.16 | $ 0.16 |
Change in pension from net unamortized gain (loss) tax (expense) benefit | $ 1,242 | $ 1,297 | $ (986) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Operating activities: | |||
Net income | $ 26,328 | $ 18,683 | $ (1,859) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||
Depreciation and amortization | 51,822 | 57,495 | 53,146 |
(Gain) loss on disposition of capital assets | (142) | 1,528 | (20) |
Stock-based compensation | 1,874 | 5,189 | 6,089 |
Deferred income tax | (5,631) | (112) | (8,469) |
Noncash charge for deferred loan costs and debt discount | 1,064 | 0 | 16,022 |
Asset impairment charges | 0 | 0 | 12,602 |
Other, net | 135 | 1,741 | 339 |
Changes in assets and liabilities, net of effects from acquisitions: | |||
(Increase) decrease in accounts receivable | (5,550) | 5,378 | 796 |
Decrease (increase) in inventory | 17,530 | (3,240) | 5,346 |
Decrease in other current assets | 217 | 186 | 2,503 |
Increase (decrease) in accounts payable | 8,325 | (4,893) | (2,273) |
Increase (decrease) in accrued liabilities | 6,892 | (7,521) | 2,033 |
Increase (decrease) in income taxes | 676 | 4,670 | (365) |
Increase (decrease) in deferred pension and postretirement benefits | 2,038 | (271) | 588 |
(Decrease) increase in other long-term liabilities | (523) | 1,382 | 956 |
Other, net | (444) | (437) | (93) |
Cash provided by operating activities | 104,611 | 79,778 | 87,341 |
Investing activities: | |||
Acquisitions, net of cash acquired | 0 | (8,497) | (245,904) |
Capital expenditures | (26,484) | (34,564) | (37,243) |
Proceeds from disposition of capital assets | 432 | 1,937 | 1,044 |
Cash used for investing activities | (26,052) | (41,124) | (282,103) |
Financing activities: | |||
Borrowings under credit facility | 268,500 | 53,500 | 634,800 |
Repayments of credit facility borrowings | (296,250) | (98,875) | (422,875) |
Debt issuance costs | (1,001) | 0 | (11,435) |
Repayments of other long-term debt | (1,798) | (2,722) | (2,185) |
Common stock dividends paid | (7,020) | (5,516) | (5,470) |
Issuance of common stock | 4,746 | 7,953 | 3,400 |
Payroll tax paid to settle shares forfeited upon vesting of stock | (960) | (976) | (787) |
Purchase of treasury stock | (32,034) | 0 | 0 |
Cash (used for) provided by financing activities | (65,817) | (46,636) | 195,448 |
Effect of exchange rate changes on cash and cash equivalents | (1,194) | (89) | 1,715 |
Increase (decrease) in cash and cash equivalents | 11,548 | (8,071) | 2,401 |
Cash and cash equivalents at beginning of period | 17,455 | 25,526 | 23,125 |
Cash and cash equivalents at end of period | $ 29,003 | $ 17,455 | $ 25,526 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 12 Months Ended |
Oct. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | 1. Nature of Operations, Basis of Presentation and Significant Accounting Policies Nature of Operations Quanex Building Products Corporation is a component supplier to original equipment manufacturers (OEMs) in the building products industry. These components can be categorized as window and door (fenestration) components and kitchen and bath cabinet components. Examples of fenestration components 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. We also manufacture cabinet doors and other components for OEMs in the kitchen and bathroom cabinet industry. In addition, we provide certain other non-fenestration components and products, which include solar panel sealants, trim moldings, vinyl decking, fencing, water retention barriers, and conservatory roof components. We have organized our business into three reportable business segments. For additional discussion of our reportable business segments, including the transfer of two wood-manufacturing plants from the NA Engineered Components segment to the NA Cabinet Component segment, see Note 18, "Segment Information." We use low-cost production processes and engineering expertise to provide our customers with specialized products for their specific window, door, and cabinet applications. We believe these capabilities provide us with unique competitive advantages. We serve a primary customer base in North America and the United Kingdom, and also serve customers in international markets through our 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. Basis of Presentation and Principles of Consolidation Our consolidated financial statements have been prepared by us in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). We consolidate our wholly-owned subsidiaries and eliminate intercompany sales and transactions. We have no cost or equity investments in companies that are not wholly-owned. In our opinion, these audited financial statements contain all adjustments necessary to fairly present our financial position, results of operations and cash flows for the periods presented. Use of Estimates 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 ongoing 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. During the year ended October 31, 2017 , we recorded a change in estimate related to certain assets involved in restructuring activities, as more fully described under the caption "Restructuring." A summary of our significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements follows: Revenue Recognition We recognize revenue when products are shipped and when title has passed to the customer. Revenue is deemed to be realized or earned when the following criteria are met: (a) persuasive evidence that a contractual sales arrangement exists; (b) delivery has occurred; or when title passes to the buyers; (c) the price to the buyer is fixed or determinable; and (d) collection is reasonably assured. Sales allowances and customer incentives, including volume discounts or rebates, are treated as reductions to revenue and are provided for based on historical experience, current estimates or contract terms. Cash and Cash Equivalents Cash equivalents include all highly liquid investments with an original maturity of three months or less. Such securities with an original maturity which exceeds three months are deemed to be short-term investments. We maintain cash and cash equivalents at several financial institutions, which at times may not be federally insured or may exceed federally insured limits. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risks on such accounts. Concentration of Credit Risk and Allowance for Doubtful Accounts Certain of our businesses or product lines are largely dependent on a relatively few large customers. Although we believe we have an extensive customer base, the loss of one of these large customers or if such customers were to incur a prolonged period of decline in business, our financial condition and results of operations could be adversely affected. For the years ended October 31, 2018 and 2017 , no customers provided more than 10% of our consolidated net sales. For the year ended October 31, 2016, one customer provided 10% of our consolidated sales. We have established an allowance for doubtful accounts to estimate the risk of loss associated with our accounts receivable balances. Our policy for determining the allowance is based on factors that affect collectability, including: (a) historical trends of write-offs, recoveries and credit losses; (b) the credit quality of our customers; and (c) projected economic and market conditions. We believe our allowance is adequate to absorb any known or probable losses as of October 31, 2018 . Business Combinations We apply the acquisition method of accounting for business combinations in accordance with U.S. GAAP, which requires us to make use of estimates and judgments to allocate the purchase price paid for acquisitions to the fair value of the assets and liabilities acquired. We account for contingent assets and liabilities at fair value on the acquisition date, and record changes to fair value associated with these assets and liabilities as a period cost as incurred. We use established valuation techniques and engage reputable valuation specialists to assist us with these valuations. Inventory We record inventory at the lower of cost or market value. Inventories are valued using the first-in first-out (FIFO) and last-in first-out (LIFO) methods, although LIFO is only used at two of our plant locations currently. We use the dollar-value link chain LIFO method, and the LIFO reserve is calculated on a consolidated basis in a single consolidated pool. The businesses that we acquire and integrate into our operations may value inventories using either the LIFO or FIFO method. Fixed costs related to excess manufacturing capacity are evaluated and expensed in the period, to insure that inventory is properly capitalized. Inventory quantities are regularly reviewed and provisions for excess or obsolete inventory are recorded primarily based on our forecast of future demand and our estimates regarding current and future market conditions. Significant unanticipated variances to our forecasts could require a change in the provision for excess or obsolete inventory, resulting in a charge to net income during the period of the change. Long-Lived Assets Property, Plant and Equipment and Intangible Assets with Defined Lives We make judgments and estimates related to the carrying value of property, plant and equipment, intangible assets with defined lives, and long-lived assets, which include determining when to capitalize costs, the depreciation and amortization methods to use and the useful lives of these assets. We evaluate these assets for impairment when there are indicators that the carrying values of these assets might not be recoverable. Such indicators of impairment may include changes in technology, significant market fluctuations, historical losses or loss of a significant customer, or other changes in circumstances that could affect the assets’ ability to generate future cash flows. When we evaluate these assets for impairment, we compare the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset to its carrying value. If the carrying value exceeds the sum of the undiscounted cash flows, and there is no alternative use for the asset, we determine that the asset is impaired. To measure the impairment charge, we compare the carrying amount of the long-lived asset to its fair value, as determined by quoted market prices in active markets, if available, or by discounting the projected future cash flows using our incremental borrowing rate. This calculation of fair value requires us to develop and employ long-term forecasts of future operating results related to these assets. These forecasts are based on assumptions about demand for our products and future market conditions. Future events and unanticipated changes to these assumptions could require a provision for impairment, resulting in a charge to net income during the period of the change. We monitor relevant circumstances, including industry trends, general economic conditions, and the potential impact that such circumstances might have on the valuation of our identifiable intangible assets with finite lives. Events and changes in circumstances that may cause a triggering event and necessitate such a review include, but are not limited to: a decrease in sales for certain customers, improvements or changes in technology, and/or a decision to discontinue the use of a trademark or trade name, or allow a patent to lapse. Such events could negatively impact the fair value of our identifiable intangible assets. In such circumstances, we may evaluate the underlying assumptions and estimates made by us in order to assess the appropriate valuation of these identifiable intangible assets and compare to the carrying value of the assets. We may be required to write down these identifiable intangible assets and record a non-cash impairment charge. When we originally value our intangible assets, we use a variety of techniques to establish the carrying value of the assets, including the relief from royalty method, excess current year earnings method and income method. Changes in market conditions during the fourth quarter of 2016 and throughout 2017 impacted our long-term forecasts of future operating results with regard to the reduction of significant sales volume to a large customer of our United States vinyl operations, and lower-than-expected operating performance of our North American Cabinet Components business. We determined that these conditions were indicators of triggering events which necessitated an evaluation of certain long-term assets utilized in these businesses for potential impairment. We compared the projected undiscounted cash flows we expected to realize associated with these assets over the remaining useful lives of the primary operating assets to the net book value of the long-term assets, including goodwill, and determined that these assets were not impaired. Therefore, we did not record an impairment charge related to property, plant and equipment or intangible assets with defined lives during the years ended October 31, 2017 and 2016. There were no indicators of triggering events noted for the year ended October 31, 2018. Software development costs, including costs incurred to purchase third-party software, are capitalized when we have determined that the technology is capable of meeting our performance requirements, and we have authorized funding for the project. We cease capitalization of software costs when the software is substantially complete and is ready for its intended use. The software is then amortized over its estimated useful life. When events or circumstances indicate the carrying value of internal use software might not be recoverable, we assess the recoverability of these assets by comparing the carrying value of the asset to the undiscounted future cash flows expected to be generated from the asset’s use, consistent with the methodology to test other property, plant and equipment for impairment. Property, plant and equipment is stated at cost and is depreciated using the straight-line method over the estimated useful lives of the assets. We capitalize betterments which extend the useful lives or significantly improve the operational efficiency of assets. We expense repair and maintenance costs as incurred. The estimated useful lives of our primary asset categories at October 31, 2018 were as follows: Useful Life (in Years) Land improvements 7 to 25 Buildings 25 to 40 Building improvements 5 to 20 Machinery and equipment 2 to 15 Leasehold improvements are depreciated over the shorter of their estimated useful lives or the term of the lease. Goodwill We use the acquisition method to account for business combinations and, to the extent that the purchase price exceeds the fair value of the net assets acquired, we record goodwill. In accordance with U.S. GAAP, we are required to evaluate our goodwill on a qualitative basis to determine if there are indicators of impairment. If there are no indicators, no further analysis is deemed necessary. However, if there are indicators of impairment or if events or circumstances indicate there may be a potential impairment, we perform an annual goodwill impairment test as of August 31, or more frequently if indicators of impairment exist. This impairment test requires a two-step approach as prescribed in ASC Topic 350 “ Intangibles - Goodwill and Other ” (ASC 350). The first step of the impairment test requires us to compare the fair value of each reporting unit to its carrying value including goodwill. To determine fair value of our reporting units, we use multiple valuation techniques including a discounted cash flow analysis, using the applicable weighted average cost of capital, in combination with a market approach. This test requires us to make assumptions about the future growth of our business and the market in general, as well as other variables such as the level of investment in capital expenditure, growth in working capital requirements and the terminal or residual value of our reporting units beyond the periods of estimated annual cash flows. We use a third-party valuation firm to assist us with this analysis. If the fair value of each reporting unit exceeds its carrying value, no further testing is required. Otherwise, we perform the second step of the impairment test whereby we compare the implied fair value of goodwill to its carrying value. The implied fair value of goodwill is determined by applying the acquisition method of accounting for a business combination to the reporting unit as if it were acquired. Under this method, the fair value of the reporting unit is deemed to be the purchase price. The assets and liabilities are recorded at their fair value and the remaining excess of fair value is the implied value of goodwill. An impairment loss is recorded to the extent that the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill. Our estimates of future cash flows and the residual values could differ from actual cash flows which may require a provision for impairment in a future period. At our annual testing date, August 31, 2018 , we had five reporting units with goodwill balances: two reporting units included in our NA Engineered Components operating segment, two reporting units included in our EU Engineered Components operating segment, and one reporting unit included in our NA Cabinet Components operating segment. We performed a qualitative assessment of the two reportable units in the NA Engineered Components segment and the two reportable units in the EU Engineered Components segment. This review included an analysis of historical goodwill test results, operating results relative to forecast, projected results over the next five years, and other measures and concluded that there were no indicators of potential impairment associated with these reportable units. Therefore, no additional testing was deemed necessary. For the reporting unit included in our NA Cabinet Components segment, we performed the first step of the goodwill impairment test at March 31, 2018, as our annual long-range planning effort produced lower forecasted results compared to the prior year's process, a potential indicator of impairment. We determined that the fair value of the net assets of this reporting unit exceeded the carrying value by approximately 4.5% . These results included the contribution and net assets of two wood-manufacturing plants transferred from the NA Engineered Components segment to the NA Cabinet Components segment during 2018 . As of August 31, 2018 , with the assistance of a third-party valuation firm, we updated this step-one analysis and determined that the fair value of the reportable unit continued to exceed its carrying value by 7.2% . Therefore, goodwill was not deemed impaired and no further testing was deemed necessary. Restructuring We accrue one-time severance costs pursuant to an approved plan of restructuring at the communication date, when affected employees have been notified of the potential severance and sufficient information has been provided for the employee to calculate severance benefits, in the event the employee is involuntarily terminated. In addition, we accrue costs associated with the termination of contractual commitments including operating leases at the time the lease is terminated pursuant to the lease provisions or in accordance with another agreement with the landlord. Otherwise, we continue to recognize operating lease expense through the cease-use date. After the cease-use date, we determine if our operating lease payments are at market. We assume sublet of the facility at the market rate. To the extent our lease obligations exceed the fair value rentals, we discount to arrive at the present value and record a liability. If the facility is not sublet, we expense the amount of the sublet in the current period. For other costs directly related to the restructuring effort, such as equipment moving costs, we expense in the period incurred. In October 2016, we announced the closure of three operating plants, two related to our United States vinyl operations, and one related to our kitchen and bathroom cabinet door business in Mexico. We expensed $0.5 million pursuant to these restructuring efforts during the year ended October 31, 2016. In September 2017, we closed a kitchen and bathroom cabinet door plant in Lansing, Kansas. We expensed $4.6 million associated with our restructuring efforts for the year ended October 31, 2017, including cost of equipment moves, employee termination costs and severance, professional fees and operating lease costs. Our facility lease obligations were deemed to be at fair market value. We negotiated the exit of one of the vinyl facilities during September 2018, and the lease of the cabinet door plant expired during fiscal 2018. We incurred $1.5 million of expenses related to operating leases costs during the year ended October 31, 2018, and we expect to incur costs related to the operating leases for the remaining vinyl facility during fiscal 2019 until we are able to sublet or otherwise exit the lease. In addition, we evaluated the remaining depreciable lives of property, plant and equipment that has been abandoned, displaced or otherwise disposed as a result of the plant closures. We recorded a change in estimate associated with the remaining useful lives of these assets which resulted in an increase in depreciation expense of $4.3 million and $1.0 million for the years ended October 31, 2017 and 2016, respectively. Furthermore, we evaluated the remaining service lives of intangible assets with defined lives associated with our United States vinyl extrusion business and recorded a change in estimate associated with the remaining useful lives of a customer relationship intangible and a utility process intangible asset resulting in an increase in amortization expense of $1.9 million and $0.3 million for the years ended October 31, 2017 and 2016, respectively. We did not incur similar increases in depreciation or amortization expenses related to restructuring activities during the year ended October 31, 2018. Insurance We manage our exposure to losses for workers’ compensation, group medical, property, casualty and other insurance claims through a combination of self-insurance retentions and insurance coverage with third-party carriers. We record undiscounted liabilities associated with our portion of these exposures, which we estimate by considering various factors such as our historical claims experience, severity factors and estimated claims incurred but not reported, for which we have developed loss development factors, which are estimates as to how claims will develop over time until closed. While we consider a number of factors in preparing the estimates, sensitive assumptions using significant judgment are made in determining the amounts that are accrued in the financial statements. Actual claims could differ significantly from these estimated liabilities, depending on future claims experience. We do not record insurance recoveries until any contingencies relating to the claim have been resolved. Retirement Plans We sponsor a defined benefit pension plan and an unfunded postretirement plan that provides health care and life insurance benefits for a limited pool of eligible retirees and dependents. To measure our liabilities associated with these plans, we make assumptions related to future events, including expected return on plan assets, rate of compensation increases, and healthcare cost trend rates. The discount rate reflects the rate at which benefits could be effectively settled on the measurement date. We determine our discount rate using a RATE: Link Model whereby target yields are developed from bonds across a range of maturity points, and a curve is fitted to those targets. Spot rates (zero coupon bond yields) are developed from the curve and used to discount benefit payments associated with each future year. Actual pension plan asset investment performance, as well as other economic experience such as discount rate and demographic experience, will either reduce or increase unamortized pension losses at the end of any fiscal year, which ultimately affects future pension costs. Warranty Obligations We accrue warranty obligations when we recognize revenue for certain products. Our provision for warranty obligations is based on historical costs incurred for such obligations and is adjusted, where appropriate, based on current conditions and factors. Our ability to estimate our warranty obligations is subject to significant uncertainties, including changes in product design and our overall product sales mix. Income Taxes We record the estimated future tax effects of temporary differences between the tax basis of assets and liabilities and the amounts reported in our consolidated balance sheets, as well as net operating losses and tax credit carry forwards. We evaluate the carrying value of the net deferred tax assets and determine whether we will be able to generate sufficient future taxable income to realize our deferred tax assets. We perform this review for recoverability on a jurisdictional basis, whereby we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence can be objectively verified. Cumulative losses in recent years is a significant piece of negative evidence that is difficult to overcome in determining that a valuation allowance is not needed against deferred tax assets. Thus, it is generally difficult for positive evidence regarding projected future taxable income exclusive of reversing taxable temporary differences to outweigh objective negative evidence of recent financial reporting losses. We recorded net income for the years ended October 31, 2018 and 2017 and a net loss for the year ended October 31, 2016. We have recorded pre-tax cumulative income from continuing operations of $45.3 million for the three-year period ended October 31, 2018 . We believe we will fully realize our deferred tax assets, net of a recorded valuation allowance. We project future taxable income using the same forecasts used to test long-lived assets and intangibles for impairment, scheduling out the future reversal of existing taxable temporary differences and reviewing our most recent financial operations. In the event the estimates and assumptions indicate we will not generate sufficient future taxable income to realize our deferred tax assets, we record a valuation allowance against a portion of our deferred tax assets. We evaluate our on-going tax positions to determine if it is more-likely-than-not we will be successful in defending such positions if challenged by taxing authorities. To the extent that our tax positions do not meet the more-likely-than-not criteria, we record a liability for uncertain tax positions. We have recorded a liability for uncertain tax positions which stem from certain state tax items related to the interpretation of tax laws and regulations. We continue to evaluate our positions regarding various state tax interpretations at each reporting date, until the applicable statute of limitations lapse. On December 22, 2017, the Tax Cuts and Jobs Act (the Act) was signed into law. The Act reduced our federal income tax statutory rate from 35.0% to 23.3% for the fiscal year ended October 31, 2018. We have re-measured our deferred income tax assets and liabilities and have recorded a provisional tax expense for the one-time mandatory transition tax on deemed repatriation of previously tax-deferred and unremitted foreign earnings. Provisional tax expense will be finalized during the one year "measurement period" allowed by Staff Accounting Bulletin No. 118. For further details of the impact of the Act, see Note 11, "Income Taxes." Derivative Instruments We have historically used financial and commodity-based derivative contracts to manage our exposure to fluctuations in foreign currency exchange rates and aluminum prices. All derivatives are measured at fair value on a recurring basis and the methodology and classifications are discussed further in Note 13, "Derivative Instruments." We have not designated the derivative instruments we use as cash flow hedges under ASC Topic 815 " Derivatives and Hedging ” (ASC 815). Therefore, all gains and losses, both realized and unrealized, are recognized in the consolidated statements of income (loss) in the period of the change as the underlying assets and liabilities are marked-to-market. We do not enter into derivative instruments for speculative or trading purposes. As such, these instruments are considered economic hedges, and are reflected in the operating activities section of the consolidated statements of cash flow. Foreign Currency Translation Our consolidated financial statements are presented in our reporting currency, the United States Dollar. Our German and United Kingdom operations are measured using the local currency as the functional currency. The assets and liabilities of our foreign operations which are denominated in other currencies are translated to United States Dollars using the prevailing exchange rates as of the balance sheet date. Revenues and expenses are translated at the average exchange rates for the applicable period. The resulting translation adjustments are recorded as a component of accumulated other comprehensive loss on the consolidated balance sheets. Occasionally, we enter into transactions that are denominated in currencies other than our functional currency. At each balance sheet date, we translate these asset or liability accounts to our functional currency and record unrealized transaction gains or losses. When these assets or liabilities settle, we record realized transaction gains or losses. These realized and unrealized gains or losses are included in the accompanying consolidated statements of income (loss) under the caption, “Other, net.” Stock–Based Compensation We have issued stock-based compensation in the form of stock options to directors, employees and officers, and non-vested restricted stock awards to certain key employees and officers. We apply the provisions of ASC Topic 718 “ Compensation - Stock Compensation ” (ASC 718), to determine the fair value of stock option awards on the date of grant using the Black-Scholes valuation model. We recognize the fair value as compensation expense on a straight-line basis over the requisite service period of the award based on awards ultimately expected to vest. Stock options granted to directors vest immediately while the stock options granted to our employees and officers typically vest ratably over a three -year period with service and continued employment as the vesting conditions. For new option grants to retirement-eligible employees, we recognize expense and vest immediately upon grant, consistent with the retirement vesting acceleration provisions of these grants. For employees near retirement age, we amortize such grants over the period from the grant date to the retirement-eligibility date if such period is shorter than the standard vesting schedule. For grants of non-vested restricted stock, we calculate the compensation expense at the grant date as the number of shares granted multiplied by the closing stock price of our common stock on the date of grant. This expense is recognized ratably over the vesting period. Our non-vested restricted stock grants to officers and employees cliff vest over a three -year period with service and continued employment as the only vesting criteria. Our fair value determination of stock-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, our expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behavior over the expected term, our dividend rate, risk-free rate and expectation with regards to forfeitures. Option-pricing models were developed for use in estimating the value of traded options that have no vesting or hedging restrictions and are fully transferable. Because our employee stock options have certain characteristics that are significantly different from traded options, and because changes in the subjective assumptions can materially affect the estimated value, the valuation models may not provide an accurate measure of the fair value of our employee stock options. Accordingly, that value may not be indicative of the fair value observed in a willing buyer/willing seller market transaction. We have granted other awards which are linked to the performance of our common stock, but will settle in cash rather than the issuance of shares of our common stock. The value of these awards fluctuates with changes in our stock price, with the resulting gains or losses reflected in the period of the change. We have recorded current and non-current liabilities related to these awards reflected in the accompanying consolidated balance sheets at October 31, 2018 and 2017 . See Note 15, “Stock-based Compensation.” In addition, we have granted performance share units which settle in cash and shares upon vesting. These awards have vesting criteria based on a market condition (relative total shareholder return) and an internal performance condition (earnings per share growth). We utilize a Monte Carlo simulation model to value the market condition and our stock price on the date of grant to value the internal performance condition. We bifurcate the liability and equity portion of the awards (amounts expected to settle in cash and shares, respectively) and recognize expense ratably over the vesting period of three years. We have also granted performance restricted stock units which settle in shares upon vesting. These awards cliff vest upon a three-year service period with the performance of our common stock as the vesting criteria. We utilized a Monte Carlo simulation model to arrive at a grant-date value of these performance restricted stock units. This amount, which is settled in our common stock, is expensed over the three-year term of the award with a credit to additional |
Acquisitions
Acquisitions | 12 Months Ended |
Oct. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | 2. Acquisitions and Dispositions Woodcraft On November 2, 2015, we completed a merger of QWMS, Inc., a Delaware corporation which was a newly-formed and wholly-owned Quanex subsidiary, and WII Holding, Inc. (WII), a Delaware corporation. Upon satisfaction or waiver of conditions set forth in the merger agreement, QWMS, Inc. merged with and into WII, and WII became our wholly-owned subsidiary, and, as a result, we acquired all the subsidiaries of WII (referred to collectively as Woodcraft). Woodcraft is a manufacturer of cabinet doors and other components to OEMs in the kitchen and bathroom cabinet industry. At the time of purchase, Woodcraft operated 12 plants within the United States and one in Mexico. On October 31, 2016, we announced the closure of the Woodcraft plant in Mexico and subsequently closed a plant in Lansing, Kansas in September 2017. We paid $245.9 million in cash, net of cash acquired and including certain holdbacks with regard to potential indemnity claims, and received less than $0.1 million from the seller as a working capital true-up, resulting in goodwill totaling $113.7 million . We believe this acquisition expanded our business into a new segment of the building products industry, which is experiencing growth and which is less susceptible to the impact of seasonality due to inclement weather. The purchase price was allocated to the fair value of the assets acquired and liabilities assumed, as indicated in the table below. As of Date of (In thousands) Net assets acquired: Accounts receivable $ 23,944 Inventory 29,552 Prepaid and other current assets 4,081 Property, plant and equipment 63,154 Goodwill 113,747 Intangible assets 62,900 Other non-current assets 24 Accounts payable (4,620 ) Accrued expenses (9,492 ) Deferred income tax liabilities, net (37,386 ) Net assets acquired $ 245,904 Consideration: Cash, net of cash and cash equivalents acquired $ 245,904 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. Intangible assets related to the Woodcraft acquisition as of November 2, 2015 included $62.8 million of customer relationships and other intangibles of less than $0.1 million , with original estimated useful lives of 12 years and 1 year, respectively. These intangible assets are being amortized on a straight-line basis. The goodwill balance is not deductible for tax purposes. Woodcraft is allocated entirely to our North American Cabinet Components reportable business segment. HLP On June 15, 2015, we acquired the outstanding ownership shares of Flamstead Holdings Limited, an extruder of vinyl lineal products and manufacturer of other plastic products incorporated and registered in England and Wales, for $131.7 million in cash, net of cash acquired, debt assumed of $7.7 million and contingent consideration of $10.3 million , resulting in goodwill on the transaction of approximately $61.3 million . Following a pre-sale reorganization and purchase, Flamstead Holdings Limited owned 100% of the ownership shares of the following subsidiaries: HL Plastics Limited, Vintage Windows Limited, Wegoma Machinery Sales Limited (renamed in 2016 as Avantek Machinery), and Liniar Limited (collectively referred to as “HLP”) each of which is registered in England and Wales. The purchase price was allocated to the fair value of the assets acquired and liabilities assumed. The agreement contained an earn-out provision which was calculated as a percentage of earnings before interest, tax and depreciation and amortization for a specified period, as defined in the purchase agreement. Pursuant to this earn-out provision, the former owner could select a base year upon which to calculate the earn-out (one of the next three succeeding twelve-month periods ended July 31). In August 2016, the former owner selected the twelve-month period ended July 31, 2016 as the measurement period for the earn-out calculation. On November 7, 2016, we paid $8.5 million to settle the earn-out. We assumed operating leases associated with the HLP acquisition for which our lessors are entities that were either wholly-owned subsidiaries or affiliates of Flamstead Holdings Limited prior to the pre-acquisition reorganization, and in which a former owner, who is now our employee, has an ownership interest. These leases include our primary operating facilities, a finished goods warehouse and a mixing plant. The lease for the manufacturing plant has a 20 -year term which began in 2007, the lease for the warehouse has a 15 -year term which began in 2012, and the lease for the mixing plant has a 13.5 -year term which began in 2013. We recorded rent expense of approximately $1.3 million , $1.2 million and $1.3 million for the years ended October 31, 2018, 2017 and 2016, respectively. Future commitments of $9.9 million under these lease arrangements are included in our operating lease commitments disclosed in Note 12, "Commitments and Contingencies." On February 20, 2017, we entered into a capital lease arrangement with the same related party to purchase a new warehouse facility at HLP. This capital lease resulted in a non-cash increase in property, plant and equipment and a corresponding increase in debt, as more fully described at Note 8, "Debt and Capital Lease Obligations - Other Debt Instruments", included herewith. |
Receivables & Allowance
Receivables & Allowance | 12 Months Ended |
Oct. 31, 2018 | |
Receivables [Abstract] | |
Accounts Receivable and Allowance for Doubtful Accounts | 3. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consisted of the following as of October 31, 2018 and 2017 : October 31, 2018 2017 (In thousands) Trade receivables $ 83,828 $ 79,221 Other 511 523 Total $ 84,339 $ 79,744 Less: Allowance for doubtful accounts 325 333 Accounts receivable, net $ 84,014 $ 79,411 The changes in our allowance for doubtful accounts were as follows: Year Ended October 31, 2018 2017 2016 (In thousands) Beginning balance as of November 1, 2017, 2016 and 2015, respectively $ 333 $ 251 $ 673 Bad debt expense (benefit) 46 131 (67 ) Amounts written off (54 ) (49 ) (371 ) Recoveries — — 16 Balance as of October 31, $ 325 $ 333 $ 251 |
Inventories
Inventories | 12 Months Ended |
Oct. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories consisted of the following at October 31, 2018 and 2017 : October 31, 2018 2017 (In thousands) Raw materials $ 41,584 $ 50,472 Finished goods and work in process 31,727 40,087 Supplies and other 1,794 2,655 Total $ 75,105 $ 93,214 Less: Inventory reserves 5,740 5,685 Inventories, net $ 69,365 $ 87,529 The changes in our inventory reserve accounts were as follows for the years ended October 31, 2018 , 2017 and 2016 : Year Ended October 31, 2018 2017 2016 (In thousands) Beginning balance as of November 1, 2017, 2016 and 2015, respectively $ 5,685 $ 4,994 $ 8,106 Charged to cost of sales 1,501 1,296 8 Write-offs (1,415 ) (661 ) (3,048 ) Other (31 ) 56 (72 ) Balance as of October 31, $ 5,740 $ 5,685 $ 4,994 Our inventories at October 31, 2018 and 2017 were valued using the following costing methods: October 31, 2018 2017 (In thousands) LIFO $ 4,273 $ 4,444 FIFO 65,092 83,085 Total $ 69,365 $ 87,529 For inventories valued using the LIFO method, replacement cost exceeded the LIFO value by approximately $1.4 million as of October 31, 2018 and 2017 . During the fiscal year ended October 31, 2018, we increased the LIFO reserve and recorded a corresponding increase to cost of sales of approximately $0.3 million . This resulted in the liquidation of two LIFO layers and a corresponding benefit of less than $0.1 million to cost of sales. During the year ended October 31, 2016, we reduced the LIFO reserve and recorded a corresponding decrease to cost of sales of approximately $0.3 million . We did not record a LIFO adjustment for the year ended October 31, 2017, and we did not liquidate any LIFO layers during the years ended October 31, 2017 or 2016. We record LIFO reserve adjustments as corporate expenses so that our chief operating decision maker can review the operations of our operating segments on a consistent FIFO or weighted-average basis. We calculate our LIFO reserve adjustments on a consolidated basis in a single pool using the dollar-value link chain method. For our business acquisitions which have inventory balances, we integrate these operations and allow the use of either the LIFO or FIFO costing method. The inventory costing methods selected by these acquired businesses depends upon the facts and circumstances that exist at the time, and may include expected inventory quantities and expected future pricing levels. We perform this evaluation for each business acquired individually. |
Property, Plant & Equipment
Property, Plant & Equipment | 12 Months Ended |
Oct. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure | 5. Property, Plant and Equipment Property, plant and equipment consisted of the following at October 31, 2018 and 2017 : October 31, 2018 2017 (In thousands) Land and land improvements $ 10,366 $ 10,491 Buildings and building improvements 98,212 96,622 Machinery and equipment 371,106 354,197 Construction in progress 10,293 13,868 Property, plant and equipment, gross 489,977 475,178 Less: Accumulated depreciation 288,607 264,047 Property, plant and equipment, net $ 201,370 $ 211,131 Depreciation expense for the years ended October 31, 2018 , 2017 , and 2016 was $35.6 million , $39.1 million and $36.2 million , respectively. Assets recorded under capital leases had a historical cost of $22.2 million and $24.3 million , respectively, and accumulated depreciation of $3.4 million and $2.8 million , respectively as of October 31, 2018 and 2017 . Depreciation expense related to these assets totaled $1.1 million , $2.0 million and $0.8 million for the periods ended October 31, 2018 , 2017 , and 2016 , respectively. Refer to Note 8, "Debt and Capital Lease Obligations" for additional information on capital leases. If there are indicators of potential impairment, we evaluate our property, plant and equipment for recoverability over the remaining useful lives of the assets. We did not incur impairment losses associated with these assets for the years ended October 31, 2018 , 2017 , and 2016 . See further discussion at Note 1, "Nature of Operations, Basis of Presentation and Significant Accounting Policies - Long-Lived Assets - Property, Plant and Equipment and Intangible Assets with Defined Lives." |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Oct. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets | 6. Goodwill and Intangible Assets Goodwill The change in the carrying amount of goodwill for the years ended October 31, 2018 and 2017 was as follows: Year Ended October 31, 2018 2017 (In thousands) Beginning balance as of November 1, 2017 and 2016 $ 222,194 $ 217,035 Foreign currency translation adjustment (2,567 ) 5,159 Balance as of October 31, $ 219,627 $ 222,194 At our annual testing date, August 31, 2018 , we had five reportable units with goodwill balances. Two of these units were included in our NA Engineered Components segment and had goodwill balances of $35.9 million and $2.8 million , two units were included in our EU Engineered Components segment with goodwill balances of $50.2 million and $17.0 million , and our NA Cabinet Components segment had one unit with a goodwill balance of $113.7 million . We determined our goodwill was not impaired at October 31, 2018 . The results of our goodwill impairment testing in August 2018 is more fully described at Note 1, "Nature of Operations, Basis of Presentation and Significant Accounting Policies - Long-Lived Assets - Goodwill." For the year ended October 31, 2016, we recorded an impairment charge of $12.6 million associated with the remaining goodwill of our United States vinyl operations within the NA Engineered Components segment. Identifiable Intangible Assets Amortizable intangible assets consisted of the following as of October 31, 2018 and 2017 : October 31, 2018 October 31, 2018 October 31, 2017 Remaining Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Customer relationships 11 years $ 153,704 $ 59,332 $ 155,230 $ 48,479 Trademarks and trade names 11 years 55,583 32,668 56,058 29,509 Patents and other technology 3 years 22,278 17,646 22,624 16,146 Total $ 231,565 $ 109,646 $ 233,912 $ 94,134 We do not estimate a residual value associated with these intangible assets. During October 2016 and throughout 2017, we determined that triggering events occurred which necessitated a review of our long-term assets. Based on an undiscounted cash flow analysis, we determined that our defined-lived intangible assets were not impaired. In addition, we shortened the life of several defined-lived intangible assets, which resulted in the recognition of incremental amortization expense of $1.9 million and $0.3 million for the years ended October 31, 2017 and 2016, respectively. We did not incur any corresponding incremental amortization expense during the year ended October 31, 2018. See additional disclosure at Note 1, "Nature of Operations, Basis of Presentation and Significant Accounting Policies - Restructuring." During the year ended October 31, 2018, we retired fully amortized identifiable assets of $0.3 million related to patents and other technology. During the year ended October 31, 2017, we retired fully amortized identifiable intangible assets of $2.4 million , primarily related to patents and other technology, including such assets associated with the restructuring mentioned above. The aggregate amortization expense associated with identifiable intangible assets for the years ended October 31, 2018 , 2017 , and 2016 was $16.2 million , $18.4 million and $16.9 million , respectively. Estimated remaining amortization expense, assuming current intangible balances and no new acquisitions, for future fiscal years ending October 31, is as follows (in thousands): Estimated Amortization Expense 2019 $ 15,282 2020 14,226 2021 12,506 2022 11,883 2023 11,136 Thereafter 56,886 Total $ 121,919 We did not incur impairment losses related to our identifiable intangible assets during the years ended October 31, 2018 , 2017 , and 2016 . |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Oct. 31, 2018 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | 7. Accrued Liabilities Accrued liabilities consisted of the following at October 31, 2018 and 2017 : October 31, 2018 2017 (In thousands) Payroll, payroll taxes and employee benefits $ 28,202 $ 16,733 Accrued insurance and workers compensation 3,095 3,591 Sales allowances 6,514 9,070 Deferred compensation (current portion) 153 669 Deferred revenue 287 625 Warranties 148 168 Audit, legal, and other professional fees 2,170 2,096 Accrued taxes 2,286 2,656 Other 3,113 3,263 Accrued liabilities $ 45,968 $ 38,871 |
Debt and Capital Lease Obligati
Debt and Capital Lease Obligations | 12 Months Ended |
Oct. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Capital Lease Obligations | 8. Debt and Capital Lease Obligations Long-term debt consisted of the following at October 31, 2018 and 2017 : October 31, 2018 2017 (In thousands) Revolving Credit Facility $ 195,000 $ 84,000 Term Loan A — 138,750 Capital lease obligations 17,043 18,764 Unamortized deferred financing fees $ (1,487 ) $ (2,088 ) Total debt $ 210,556 $ 239,426 Less: Current maturities of long-term debt 1,224 21,242 Long-term debt $ 209,332 $ 218,184 Revolving Credit Facility On November 2, 2015, we entered into a $310.0 million Term Loan Credit Agreement and a $100.0 million ABL Credit Agreement (collectively the “2015 Credit Facilities”) with Wells Fargo, National Association, as Agent, and Bank of America, N.A. serving as Syndication Agent. The term loan portion of the 2015 Credit Facilities was to mature on November 2, 2022, and required quarterly principal payments equal to 0.25% of the aggregate borrowings. Interest was computed, at our election, based on a Base Rate plus applicable margin of 4.25% , or LIBOR plus applicable margin of 5.25% (with the stipulation that LIBOR could not be less than 1% ). The term loan provided for incremental term loan commitments for a minimum principal amount of $25.0 million , up to an aggregate amount of $50.0 million , to the extent that such borrowings did not cause the Consolidated Senior Secured Leverage Ratio to exceed 3.00 to 1.00. The term loan agreement permitted prepayment of the term loan of at least an aggregate amount of $5.0 million , or any whole multiple of $1.0 million , in excess thereof without penalty, except if such prepayment was made on or before November 2, 2016, we would pay a fee equal to 1% of such prepayment. The ABL portion of the 2015 Credit Facilities was to mature on November 2, 2020 with no stated principal repayment terms prior to maturity. Borrowing capacity and availability was determined based upon the dollar equivalent of certain working capital items including receivables and inventory, subject to eligibility as determined by Wells Fargo, National Association, as Administrative Agent, up to the facility maximum of $100.0 million . Interest was computed, at our election, on a grid as the Base Rate plus an Applicable Margin, as defined in the agreement, or LIBOR plus an Applicable Margin. The Applicable Margin applied for the duration of the 2015 Credit Facilities was 0.50% for Base Rate loans and 1.50% for LIBOR Rate loans. In addition, the ABL portion of the 2015 Credit Facilities required payment of a commitment fee (unused line fee) based on the average revolver usage. The unused line fee of 0.375% was applied for the duration of the 2015 Credit Facilities. On July 29, 2016, we refinanced and retired the 2015 Credit Facilities and entered into a $450.0 million credit agreement comprising a $150.0 million Term Loan A and a $300.0 million revolving credit facility (collectively, the “2016 Credit Agreement”), with Wells Fargo Bank, National Association, as Agent, Swingline Lender and Issuing Lender, and Bank of America, N.A. serving as Syndication Agent. The 2016 Credit Agreement had a five -year term, maturing on July 29, 2021, and required interest payments calculated, at our election and depending upon our Consolidated Leverage Ratio, at either a Base Rate plus an applicable margin or the LIBOR Rate plus an applicable margin. At the time of the initial borrowing, the applicable rate was LIBOR + 2.00% . In addition, we were subject to commitment fees for the unused portion of the 2016 Credit Agreement. The applicable margin and commitment fees are outlined in the following table: Pricing Level Consolidated Leverage Ratio Commitment Fee LIBOR Rate Loans Base Rate Loans I Less than or equal to 1.50 to 1.00 0.200% 1.50% 0.50% II Greater than 1.50 to 1.00, but less than or equal to 2.25 to 1.00 0.225% 1.75% 0.75% III Greater than 2.25 to 1.00, but less than or equal to 3.00 to 1.00 0.250% 2.00% 1.00% IV Greater than 3.00 to 1.00 0.300% 2.25% 1.25% In the event of default, outstanding borrowings would accrue interest at the Default Rate, as defined, whereby the obligations will bear interest at a per annum rate equal to 2% above the total per annum rate otherwise applicable. The term loan portion of the 2016 Credit Agreement required quarterly principal payments on the last business day of each fiscal quarter in accordance with a stated repayment schedule. Required aggregate principal repayments totaled $15.0 million for the succeeding twelve-month period, and were included in the accompanying consolidated balance sheet under the caption “Current Maturities of Long-term Debt.” No stated principal payments were required under the revolving credit portion of the 2016 Credit Agreement, except upon maturity. We were required to make mandatory prepayments of "excess cash flow" as defined in the agreement if our Consolidated Leverage Ratio was less than 2.25 to 1.00. The 2016 Credit Agreement provided for incremental term loan or revolving credit commitments for a minimum principal amount of $10.0 million , up to an aggregate amount of $150.0 million , subject to the lender's discretion to elect or decline the incremental increase. We could also borrow up to the lesser of $15.0 million or the revolving credit commitment, as defined, under a Swingline feature of the Credit Agreement. We were permitted to prepay the term loan under the Credit Agreement, without premium or penalty, in aggregate principal amounts of $1.0 million or whole multiples of $0.5 million in excess thereof. The 2016 Credit Agreement contained a: (1) Consolidated Fixed Charge Coverage Ratio requirement whereby we could not permit the Consolidated Fixed Charge Coverage Ratio, as defined, to be less than 1.10 to 1.00, and (2) Consolidated Leverage Ratio requirement, as summarized by period in the following table: Period Maximum Ratio Closing Date through January 30, 2017 3.50 to 1.00 January 31, 2017 through January 30, 2018 3.25 to 1.00 January 31, 2018 and thereafter 3.00 to 1.00 In addition to maintaining these financial covenants, the 2016 Credit Agreement also limited our ability to enter into certain business transactions, such as to incur indebtedness or liens, to acquire businesses or dispose of material assets, make restricted payments, pay dividends (limited to $10.0 million per year) and other transactions as further defined in the Credit Agreement. Substantially all of our domestic assets, with the exception of real property, were utilized as collateral for the Credit Agreement. We utilized the funding from the 2016 Credit Agreement, along with additional funding of $16.4 million of cash on hand, to repay outstanding borrowings under the 2015 Credit Facilities of $309.2 million , to pay a 1% prepayment call premium under the Term Loan B portion thereof, to settle outstanding interest accrued under the prior facility, and to pay loan fees associated with the 2016 Credit Agreement which totaled $2.8 million . In addition to the 1% prepayment call premium fee, we expensed $8.1 million to write-off unamortized deferred financing fees and $5.5 million of unamortized original issuer’s discount associated with the 2015 Credit Facilities. On October 18, 2018, we amended and extended the 2016 Credit Agreement by entering into a $325.0 million revolving credit facility (the “2018 Credit Facility”), with Wells Fargo Bank, National Association, as Agent, Swingline Lender and Issuing Lender, and Bank of America, N.A. serving as Syndication Agent. The 2018 Credit Facility has a five -year term, maturing on October 18, 2023, and required interest payments calculated, at our election and depending upon our Consolidated Leverage Ratio, at either a Base Rate plus an applicable margin or the LIBOR Rate plus an applicable margin. At the time of the initial borrowing, the applicable rate was LIBOR + 1.50% . In addition, we are subject to commitment fees for the unused portion of the 2018 Credit Facility. The applicable margin and commitment fees are outlined in the following table: Pricing Level Consolidated Leverage Ratio Commitment Fee LIBOR Rate Loans Base Rate Loans I Less than or equal to 1.50 to 1.00 0.200% 1.25% 0.25% II Greater than 1.50 to 1.00, but less than or equal to 2.25 to 1.00 0.225% 1.50% 0.50% III Greater than 2.25 to 1.00, but less than or equal to 3.00 to 1.00 0.250% 1.75% 0.75% IV Greater than 3.00 to 1.00 0.300% 2.00% 1.00% In the event of default, outstanding borrowings accrue interest at the Default Rate, as defined, whereby the obligations will bear interest at a per annum rate equal to 2% above the total per annum rate otherwise applicable. The 2018 Credit Facility provided for incremental revolving credit commitments for a minimum principal amount of $10.0 million , up to an aggregate amount of $150.0 million , subject to the lender's discretion to elect or decline the incremental increase. We can also borrow up to the lesser of $15.0 million or the revolving credit commitment, as defined, under a Swingline feature of the Credit Agreement. The 2018 Credit Facility contains a: (1) Consolidated Interest Coverage Ratio requirement whereby we must not permit the Consolidated Interest Coverage Ratio, as defined, to be less than 2.25 to 1.00, and (2) Consolidated Leverage Ratio requirement whereby we must not permit the Consolidated Leverage Ratio, as defined, must be greater than 3.25 to 1.00. In addition to maintaining these financial covenants, the 2018 Credit Facility also limits our ability to enter into certain business transactions, such as to incur indebtedness or liens, to acquire businesses or dispose of material assets, make restricted payments, pay dividends (limited to $20.0 million per year) and other transactions as further defined in the 2018 Credit Facility. Some of these limitations, however, do not take effect so long as total leverage is less than or equal to 2.75 to 1.00 and available liquidity exceeds $25 million . Substantially all of our domestic assets, with the exception of real property were utilized as collateral for the Credit Agreement. We utilized initial borrowings of $205.0 million from the 2018 Credit Facility, along with additional funding of $10.0 million of cash on hand, to repay outstanding borrowings under the 2016 Credit Agreement of $213.5 million , to settle outstanding interest accrued and loan fees under the prior facility, and to pay loan fees associated with the 2018 Credit Agreement which totaled $1.0 million . We expensed $1.1 million of unamortized deferred financing fees associated with the 2016 Credit Agreement, while deferring the remaining $0.5 million of unamortized deferred financing fees attributable to the remaining lenders from the previous facility over the life of the 2018 Credit Facility. As of October 31, 2018 , we had $195.0 million of borrowings outstanding under the Credit Agreement (reduced by unamortized debt issuance costs of $1.5 million ), $5.3 million of outstanding letters of credit and $17.0 million outstanding under capital leases. We had $124.7 million available for use under the Credit Agreement at October 31, 2018 . The borrowings outstanding as of October 31, 2018 under the Credit Agreement accrue interest at 3.80% per annum, and our weighted average borrowing rate for borrowings outstanding during the years ended October 31, 2018 and 2017 was 3.76% and 2.95% , respectively. We were in compliance with our debt covenants as of October 31, 2018 . Other Debt Instruments During the year ended October 31, 2017, we fully repaid $0.4 million related to the City of Richmond, Kentucky, Industrial Building Revenue Bonds, which had annual installment payments due through October 2020. Interest was payable monthly at a variable rate, which ranged from 0.7% to 1.3% during the fiscal year ended October 31, 2017. The average interest rate during each of the fiscal years ended October 31, 2017 and 2016 was 1.0% and 0.5% , respectively. Historically, we have maintained certain capital lease obligations related to equipment purchases. On February 20, 2017, we entered into a capital lease for warehouse space at HLP with a related-party company that is owned by our employee, the former owner of HLP. This new warehouse was anticipated at the time of the HLP acquisition in June 2015, and the lease was negotiated at arms-length. The lease accrues interest at 3.57% per annum, and extends for a twenty-year period through the year 2036. We recorded the leased asset at inception at fair value of $16.6 million and recorded a corresponding liability for our obligation under this lease. The accompanying statement of cash flows as of October 31, 2017 excludes these assets and related obligations as non-cash investing and financing activities. We are recognizing interest expense using the effective interest method over the term. Our cash commitments under this lease are £0.9 million per year for an aggregate of £17.8 million (or approximately $23.6 million ). The cost and accumulated depreciation of property, plant and equipment under capital leases at October 31, 2018 was $22.2 million and $3.4 million , respectively, including $16.3 million and $1.4 million , respectively, related to this warehouse lease. These obligations accrue interest at an average rate of 3.59% , and extend through the year 2036. The table below presents the scheduled maturity dates of our long-term debt outstanding (excluding deferred loan costs of $1.5 million ) at October 31, 2018 (in thousands): Revolving Credit Facility Capital Leases and Other Obligations Aggregate Maturities 2019 $ — $ 1,523 $ 1,523 2020 — 1,076 1,076 2021 — 884 884 2022 — 876 876 2023 195,000 807 195,807 Thereafter — 11,877 11,877 Total $ 195,000 $ 17,043 $ 212,043 |
Retirement Plans
Retirement Plans | 12 Months Ended |
Oct. 31, 2018 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans We have a number of retirement plans covering substantially all employees. We provide both defined benefit and defined contribution plans. In general, an employee’s coverage for retirement benefits depends on the location of employment. Defined Benefit Plan We have a non-contributory, single employer defined benefit pension plan that covers the majority of our domestic employees, excluding the Woodcraft employees who are not currently participating. Effective January 1, 2007, we amended this defined benefit pension plan to include a cash balance formula for all new salaried employees hired on or after January 1, 2007 and for any non-union employees who were not participating in a defined benefit plan prior to January 1, 2007. All participating salaried employees hired after January 1, 2007, are eligible to receive credits equivalent to 4% of their annual eligible wages. Some of the employees at the time of the amendment were “grandfathered” and are eligible to receive credits ranging up to 6.5% based upon a percentage of benefits received under our defined benefit plan prior to this amendment of the pension plan. Additionally, every year the participants will receive an interest related credit on their respective balance equivalent to the prevailing 30-year Treasury rate. For employees who were participating in this plan prior to January 1, 2007, the benefit formula is a more traditional formula for retirement benefits, whereby the plan pays benefits to employees upon retirement, using a formula which considers years of service and pensionable compensation prior to retirement. Of our pension plan participants, 99% have their benefit determined pursuant to the cash balance formula. The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the "Act") was signed into law on December 8, 2003. This Act introduces a Medicare prescription-drug benefit beginning in 2006 as well as a federal subsidy to sponsors of retiree health care plans that provide a benefit at least “actuarially equivalent” to the Medicare benefit. We concluded that our plans are at least “actuarially equivalent” to the Medicare benefit. For those who are otherwise eligible for the subsidy, we have not included this subsidy per the Act in our benefit calculations. The impact to net periodic benefit cost and to benefits paid did not have a material impact on the consolidated financial statements. Funded Status and Net periodic Benefit Cost The changes in benefit obligations and plan assets, and our funded status (reported in deferred pension and postretirement benefits on the consolidated balance sheets) were as follows: October 31, 2018 2017 Change in Benefit Obligation: (In thousands) Beginning balance as of November 1, 2017 and 2016, respectively $ 38,323 $ 36,892 Service cost 3,908 3,794 Interest cost 1,130 859 Actuarial gain (4,296 ) (318 ) Benefits paid (2,551 ) (2,263 ) Administrative expenses (555 ) (641 ) Projected benefit obligation at October 31, $ 35,959 $ 38,323 Change in Plan Assets: Beginning balance as of November 1, 2017 and 2016, respectively $ 34,340 $ 29,210 Actual return on plan assets 66 4,434 Employer contributions 764 3,600 Benefits paid (2,551 ) (2,263 ) Administrative expenses (555 ) (641 ) Fair value of plan assets at October 31, $ 32,064 $ 34,340 Non current liability - Funded Status $ (3,895 ) $ (3,983 ) As of October 31, 2018 and 2017 , included in our accumulated comprehensive loss was a net actuarial loss of $3.0 million and $5.2 million , respectively. There were no net prior service costs or transition obligations for the years ended October 31, 2018 and 2017 . As of October 31, 2018 and 2017 , the accumulated benefit obligation was $35.4 million and $37.4 million , respectively. The accumulated benefit obligation is the present value of pension benefits (whether vested or unvested) attributed to employee service rendered before the measurement date, and based on employee service and compensation prior to that date. The accumulated benefit obligation differs from the projected benefit obligation in that it includes no assumption about future compensation levels. The net periodic benefit cost for the years ended October 31, 2018 , 2017 and 2016 , was as follows: Year Ended October 31, 2018 2017 2016 (In thousands) Service cost $ 3,908 $ 3,794 $ 3,712 Interest cost 1,130 859 828 Expected return on plan assets (2,172 ) (1,863 ) (1,617 ) Amortization of net loss 64 574 384 Net periodic benefit cost $ 2,930 $ 3,364 $ 3,307 The changes in plan assets and projected benefit obligations which were recognized in our other comprehensive loss for the years ended October 31, 2018 , 2017 and 2016 were as follows: Year Ended October 31, 2018 2017 2016 (In thousands) Net (gain) loss arising during the period $ (2,189 ) $ (2,888 ) $ 3,556 Less: Amortization of net loss $ 64 $ 574 $ 384 Total recognized in other comprehensive loss $ (2,253 ) $ (3,462 ) $ 3,172 As of October 31, 2016, we recorded a $0.3 million pre-tax benefit associated with our postretirement benefit plan, described below at "Other Plans." Measurement Date and Assumptions We generally determine our actuarial assumptions on an annual basis, with a measurement date of October 31. The following table presents our assumptions for pension benefit calculations for the years ended October 31, 2018 , 2017 and 2016 : For the Year Ended October 31, 2018 2017 2016 2018 2017 2016 Weighted Average Assumptions: Benefit Obligation Net Periodic Benefit Cost Discount rate 4.44% 3.68% 3.41% 4.44% 3.66% 3.92% Rate of compensation increase 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Expected return on plan assets n/a n/a n/a 6.50% 6.50% 6.50% The discount rate was used to calculate the present value of the projected benefit obligation for pension benefits. The rate reflects the amount at which benefits could be effectively settled on the measurement date. We used a RATE: Link Model whereby target yields are developed from bonds across a range of maturity points, and a curve is fitted to those targets. Spot rates (zero coupon bond yields) are developed from the curve and used to discount benefit payments associated with each future year. This model assumes spot rates will remain level beyond the 30-year point. We determine the present value of plan benefits by applying the discount rates to projected benefit cash flows. The expected return on plan assets was used to determine net periodic pension expense. The rate of return assumptions were based on projected long-term market returns for the various asset classes in which the plans were invested, weighted by the target asset allocations. We review the return assumption at least annually. The rate of compensation increase represents the long-term assumption for expected increases in salaries. Plan Assets The following tables provide our target allocation for the year ended October 31, 2018 , as well as the actual asset allocation by asset category and fair value measurements as of October 31, 2018 and 2017 : Target Allocation Actual Allocation October 31, 2018 October 31, 2018 October 31, 2017 Equity securities 60.0 % 61.0 % 60.0 % Fixed income 40.0 % 39.0 % 40.0 % Fair Value Measurements at October 31, 2018 October 31, 2017 (In thousands) Money market fund $ 597 $ 204 Large capitalization $ 8,362 $ 10,972 Small capitalization 2,559 4,102 International equity 6,385 3,756 Other 1,913 1,695 Equity securities $ 19,219 $ 20,525 High-quality core bond $ 9,736 $ 6,801 High-quality government bond 1,251 3,407 High-yield bond 1,261 3,403 Fixed income $ 12,248 $ 13,611 Total securities (1) $ 32,064 $ 34,340 (1) Quoted prices in active markets for identical assets (Level 1). Inputs and valuation techniques used to measure the fair value of plan assets vary according to the type of security being valued. All of the equity and debt securities held directly by the plans were actively traded and fair values were determined based on quoted market prices. Our investment objective for defined benefit plan assets is to meet the plans’ benefit obligations, while minimizing the potential for future required plan contributions. The investment strategies focus on asset class diversification, liquidity to meet benefit payments and an appropriate balance of long-term investment return and risk. Target ranges for asset allocations are determined by matching the actuarial projections of the plans’ future liabilities and benefit payments with expected long-term rates of return on the assets, taking into account investment return volatility and correlations across asset classes. Plan assets are diversified across several investment managers and are generally invested in liquid funds that are selected to track broad market equity and bond indices. Investment risk is carefully controlled with plan assets rebalanced to target allocations on a periodic basis and monitoring of performance of investment managers relative to the investment guidelines established with each investment manager. Expected Benefit Payments and Funding Our pension funding policy is to make the minimum annual contributions required pursuant to the plan. We accelerated contributions to target a 100% funding threshold. Additionally, we consider funding annual requirements early in the fiscal year to potentially maximize the return on assets. For the fiscal years ended October 31, 2018 , 2017 and 2016 , we made total pension contributions of $0.8 million , $3.6 million and $3.7 million , respectively. During fiscal 2019 , we expect to contribute approximately $0.8 million to the pension plan to reach targeted funding levels and meet minimum contribution requirements. This expected contribution level will be dependent on many variables, including the market value of the assets compared to the obligation, as well as other market or regulatory conditions. In addition, we consider the cash requirements of our business investment opportunities. Accordingly, actual funding amounts and the timing of such funding may differ from current estimates. The following table presents the total benefit payments expected to be paid to participants by year, which includes payments funded from our assets, as well as payments paid from the plan for the year ended October 31, (in thousands): Pension Benefits 2019 $ 2,488 2020 2,516 2021 2,724 2022 2,898 2023 3,031 2024 - 2028 16,304 Total $ 29,961 Defined Contribution Plan We also sponsor a defined contribution plan into which we and our employees make contributions. We merged a predecessor plan sponsored by Woodcraft into our defined contribution plan effective January 1, 2017. We match 50% up to the first 5% of employee annual salary deferrals under our existing plan. Beginning January 1, 2018, the plan was amended to provide the same match to Woodcraft employees. Prior to January 1, 2018, we matched 35% up to the first 5% of employee deferrals for employees who participated in the predecessor Woodcraft plan. We do not offer our common stock as a direct investment option under these plans. For the years ended October 31, 2018 , 2017 and 2016 , we contributed approximately $2.6 million , $2.4 million and $2.2 million for these plans, respectively. Other Plans Under our postretirement benefit plan, we provide certain healthcare and life insurance benefits for a small number of eligible retired employees who were employed prior to January 1, 1993. Certain employees may become eligible for those benefits if they reach normal retirement age while working for us. We continue to fund benefit costs on a pay-as-you-go basis. The table below indicates the amount of these liabilities included in the accompanying consolidated balance sheets: October 31, 2018 October 31, 2017 (In thousands) Accrued liabilities $ 49 $ 49 Deferred pension and postretirement benefits 323 450 Total $ 372 $ 499 We also have supplemental benefit plans covering certain executive officers and a non-qualified deferred compensation plan covering members of the Board of Directors and certain key employees. Our liability under the supplemental benefit plan was approximately $3.4 million as of October 31, 2018 and 2017 , and our liability under the deferred compensation plan was approximately $3.5 million and $4.0 million , respectively. As of October 31, 2018 and 2017 , the current portion of these liabilities was recorded under the caption "Accrued Liabilities," and the long-term portion was included under the caption "Other Liabilities" in the accompanying balance sheets. |
Warranty Obligations
Warranty Obligations | 12 Months Ended |
Oct. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Warranty Obligations | 10. 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. 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 consolidated balance sheets) follows: Year Ended October 31, 2018 2017 (In thousands) Beginning balance as of November 1, 2017, and 2016, respectively $ 323 $ 446 Provision for warranty expense 4 41 Change in accrual for preexisting warranties (16 ) (121 ) Warranty costs paid (16 ) (43 ) Total accrued warranty $ 295 $ 323 Less: Current portion of accrued warranty 148 168 Long-term portion at October 31, $ 147 $ 155 |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes We provide for income taxes on taxable income at the statutory rates applicable. The following table summarizes the components of income tax (benefit) expense from continuing operations for the years ended October 31, 2018 , 2017 and 2016 : Year Ended October 31, 2018 2017 2016 (In thousands) Current Federal $ 983 $ 1,991 $ 1,309 State and local 417 873 154 Non-United States 3,356 4,067 3,241 Total current 4,756 6,931 4,704 Deferred Federal (5,903 ) 1,860 (5,932 ) State and local 670 (450 ) (712 ) Non-United States (398 ) (1,522 ) (1,825 ) Total deferred (5,631 ) (112 ) (8,469 ) Total income tax (benefit) expense $ (875 ) $ 6,819 $ (3,765 ) The following table reconciles our effective income tax rate to the federal statutory rate for the years ended October 31, 2018 , 2017 and 2016 : Year Ended October 31, 2018 2017 2016 United States tax at statutory rate 23.3 % 35.0 % 35.0 % State and local income tax 3.4 1.7 7.4 Non-United States income tax (1.6 ) (9.1 ) 32.0 Deferred rate impact — (4.1 ) 15.2 General business credits (0.4 ) (0.5 ) 6.4 Transaction costs — — (17.0 ) Change in valuation allowance (0.1 ) (0.6 ) (0.9 ) Other permanent differences (0.3 ) 3.3 (5.8 ) Deferred rate impact of enactment of tax reform (30.5 ) — — Tax impact of stock based compensation (0.5 ) — — Impact of deemed repatriation 4.8 — — Return to actual adjustments (1.5 ) 1.0 (5.4 ) Effective tax rate (3.4 )% 26.7 % 66.9 % On December 22, 2017, the Tax Cuts and Jobs Act (the Act) was signed into law. The Act reduced our federal income tax statutory rate from 35.0% to 23.3% for the fiscal year ending October 31, 2018. Discrete items contributing to the income tax benefit included $7.7 million for the re-measurement of our deferred income tax assets and liabilities due to the decrease in the federal corporate income tax rate, a benefit of $0.2 million for the true up of our accruals and related deferred taxes from prior year filings and settled tax audits, and a benefit of $0.2 million related to the vesting or exercise of equity-based compensation awards, partially offset by a tax expense of $1.2 million for the one-time mandatory transition tax on deemed repatriation of previously tax-deferred and unremitted foreign earnings. The United States statutory rate of 23.3% reflects the period November 1, 2017 to December 31, 2017 at the previous 35.0% rate and the period January 1, 2018 to October 31, 2018 at the new 21.0% rate. Given the significance of the Act, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118), which allows registrants to record provisional amounts during a one year “measurement period”. During the measurement period, impacts of the Act are expected to be recorded at the time a reasonable estimate for all or a portion of the effects can be made, and provisional amounts can be recognized and adjusted as information becomes available, prepared or analyzed. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Act. As of October 31, 2018, we have not completed the accounting for the tax effects of the Act. However, we have made an initial assessment of the Act and recorded a discrete net benefit of $6.5 million. We believe that our assessment of the re-measurement of our deferred income tax assets and liabilities to be complete, while we consider our tax expense related to the one-time mandatory transition tax on deemed repatriation of previously tax-deferred and unremitted foreign earnings and our tax benefit of stock based compensation to be provisional. At this time, our estimate does not reflect changes in current interpretations of compensation deduction limitations, effects of any state tax law changes and uncertainties regarding interpretations that may arise as a result of federal tax reform. Any additional impact of the enactment of the Act will be recorded as they are identified during the one-year measurement period provided for in SAB 118. In light of the Act, we repatriated $2.8 million of excess cash from our insulating glass spacer division in the United Kingdom during the twelve months ended October 31, 2018. This was repatriation of excess cash that was a portion of the one-time mandatory transition tax discussed above. Management has determined that the earnings of our foreign subsidiaries are not required as a source of funding for United States operations and we intend to indefinitely reinvest the funds at October 31, 2018 in our foreign jurisdictions. We will continue to evaluate our foreign cash position and may repatriate additional foreign earnings in the future. With the exception of the one-time mandatory transition tax on deemed repatriation of previously tax-deferred and unremitted foreign earnings, we do not anticipate any material tax impact from any potential repatriation of previously unremitted foreign earnings. If the investment in our foreign subsidiaries were completely realized, we could incur an estimated residual United States tax liability of $0.1 million . The decrease in the 2017 effective tax rate is due primarily to a greater proportion of United States taxable income in relation to foreign taxable income for the year. The United States tax rate is generally higher than the foreign tax rate. The effective rate is also lower due to a change over a period of three years in the deferred tax rate, primarily in the United Kingdom, from 19% to 17%. The foreign tax rate differential and the mix of earnings by jurisdiction also impacted the rate in 2016. The increase in the 2016 effective tax rate benefit was due primarily to a greater proportion of foreign taxable income in relation to United States taxable income for the year. The overall change in the 2016 effective rate was also impacted by transaction costs and a change in the deferred rate in the United Kingdom from 20% to 19%. Significant components of our net deferred tax liabilities and assets were as follows: October 31, 2018 2017 (In thousands) Deferred tax assets: Employee benefit obligations $ 9,910 $ 12,731 Accrued liabilities and reserves 1,609 2,409 Pension and other benefit obligations 1,872 2,968 Inventory 843 1,614 Loss and tax credit carry forwards 3,716 8,098 Other 119 194 Total gross deferred tax assets 18,069 28,014 Less: Valuation allowance 1,275 1,304 Total deferred tax assets, net of valuation allowance 16,794 26,710 Deferred tax liabilities: Property, plant and equipment 10,577 16,128 Goodwill and intangibles 23,432 32,542 Total deferred tax liabilities 34,009 48,670 Net deferred tax liabilities $ 17,215 $ 21,960 At October 31, 2018 , state operating loss carry forwards totaled $41.8 million . The majority of these losses begin to expire in 2025. Tax credits available to offset future tax liabilities totaled $4.1 million and are expected to be utilized within the next twelve months. We evaluate tax benefits of operating losses and tax credit carry forwards on an ongoing basis, including a review of historical and projected future operating results, the eligible carry forward period and other circumstances. We have recorded a valuation allowance for certain state net operating losses as of October 31, 2018 and 2017 , totaling $1.3 million ( $0.6 million net of federal taxes) for the respective periods. In assessing the need for a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. The following table reconciles the change in the unrecognized income tax benefit associated with uncertain tax positions for the years ended October 31, 2018 , 2017 and 2016 (in thousands): Unrecognized Income Tax Benefits Balance at October 31, 2015 $ 564 Additions for tax positions related to the current year — Additions for tax positions related to the prior year 15 Balance at October 31, 2016 $ 579 Additions for tax positions related to the current year — Additions for tax positions related to the prior year 12 Balance at October 31, 2017 $ 591 Additions for tax positions related to the current year — Additions for tax positions related to the prior year 15 Balance at October 31, 2018 $ 606 As of October 31, 2018 , our unrecognized tax benefit (UTB) relates to certain state tax items regarding the interpretation of tax laws and regulations. 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 $4.1 million and increased deferred income taxes (non-current assets) by $6.8 million and resulted in a non-cash increase in retained earnings of $10.1 million , with an increase in income tax benefit of $0.8 million . At October 31, 2018 , $0.6 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, along with our subsidiaries, file income tax returns in the United States and various state jurisdictions as well as in the United Kingdom, Germany and Canada. In certain jurisdictions the statute of limitations has not yet expired. We generally remain subject to examination of our United States income tax returns for 2015 and subsequent years. We generally remain subject to examination of our various state and foreign income tax returns for a period of four to five years from the date the return was filed. The state impact of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the state of the federal change. 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 October 31, 2018 will be recognized within the next twelve months. The acquisition of Woodcraft in November 2015 established a net noncurrent deferred tax liability of $37.4 million primarily reflecting the book to tax basis difference in intangibles, fixed assets and inventory. The acquisition of Flamstead Holdings, Ltd in June 2015 established a noncurrent deferred tax liability of $13.2 million reflecting the book to tax basis difference in intangibles, fixed assets and inventory at the then current United Kingdom tax rate of 20% . The HLP noncurrent deferred tax liability has been subsequently adjusted to the expected rate of 17%. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Oct. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Operating Leases and Purchase Obligations We have operating leases for certain real estate and equipment used in our business. Rental expense for the years ended October 31, 2018 , 2017 and 2016 was $9.5 million , $10.5 million and $10.3 million , respectively. We are a party to non-cancelable purchase obligations primarily for door hardware, primary and secondary steel and primary and secondary aluminum used in our manufacturing processes, as well as expenditures related to capital projects in progress. We paid $5.2 million and $4.5 million pursuant to these arrangements for the years ended October 31, 2018 and 2017 , respectively. These obligations total $16.7 million and $11.9 million at October 31, 2018 and 2017 , respectively, and extend through fiscal 2018. Future amounts paid pursuant to these arrangements will depend, to some extent, on our usage. The following table presents future minimum rental payments under operating leases with remaining terms in excess of one year at October 31, 2018 (in thousands): Operating Leases 2019 $ 8,407 2020 6,776 2021 5,376 2022 4,528 2023 4,290 Thereafter 20,274 Total $ 49,651 Asset Retirement Obligation We maintain an asset retirement obligation associated with a leased facility in Kent, Washington. We have estimated our future cash flows associated with this asset retirement obligation and recorded an asset and corresponding liability. We are depreciating the asset and accreting the liability over a seven year term, to culminate in an asset retirement obligation of $2.2 million as of February 2020. Remediation and Environmental Compliance Costs Under applicable state and federal laws, we may be responsible for, among other things, all or part of the costs required to remove or remediate wastes or hazardous substances at locations we, or our predecessors, have owned or operated. From time to time, we also have been alleged to be liable for all or part of the costs incurred to clean up third-party sites where there might have been an alleged improper disposal of hazardous substances. At present, we are not involved in any such matters. From time to time, we incur routine expenses and capital expenditures associated with compliance with existing environmental regulations, including control of air emissions and water discharges, and plant decommissioning costs. We have not incurred any material expenses or capital expenditures related to environmental matters during the past three fiscal years, and do not expect to incur a material amount of such costs in fiscal 2019 . While we will continue to have future expenditures related to environmental matters, any such amounts are impossible to reasonably estimate at this time. Based upon our experience to date, we do not believe that our compliance with environmental requirements will have a material adverse effect on our operations, financial condition or cash flows. Litigation From time to time, we, along with our subsidiaries, are involved in various litigation matters arising in the ordinary course of our business, including those arising from or related to contractual matters, commercial disputes, intellectual property, personal injury, environmental matters, product performance or warranties, product liability, insurance coverage and personnel and employment disputes. We regularly review with legal counsel the status of all ongoing proceedings, and we maintain insurance against these risks to the extent deemed prudent by our management and to the extent such insurance is available. However, there is no assurance that we will prevail in these matters or that our insurers will accept full coverage of these matters, and we could, in the future, incur judgments, enter into settlements of claims, or revise our expectations regarding the outcome or insurability of matters we face, which could materially impact our results of operations. We have been and are currently party to multiple claims, some of which are in litigation, relating to alleged defects in a commercial sealant product that was manufactured and sold during the 2000's. During the years ended October 31, 2018 and 2017 , our insurance carrier reimbursed fees and expenses originally incurred as part of our defense of these various commercial sealant claims totaling $0.5 million and $4.0 million , respectively. While we believe that our product was not defective and that we would prevail in these commercial sealant product claims if taken to trial, the timing, ultimate resolution and potential impact of these claims is not currently determinable. Nevertheless, after taking into account all currently available information, including our defenses, the advice of our counsel, and the extent and currently-expected availability of our existing insurance coverage, we believe that the eventual outcome of these commercial sealant claims will not have a material adverse effect on our overall financial condition, results of operations or cash flows, and we have not recorded any accrual with regard to these claims. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Oct. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 13. Derivative Instruments Our derivative activities are subject to the management, direction, and control of the Chief Financial Officer and Chief Executive Officer. Certain transactions in excess of specified levels require further approval from the Board of Directors. The nature of our business activities requires the management of various financial and market risks, including those related to changes in foreign currency exchange rates and aluminum scrap prices. We have historically used foreign currency forwards and options to mitigate or eliminate certain of those risks at our subsidiaries. We use foreign currency contracts to offset fluctuations in the value of accounts receivable and payable balances that are denominated in currencies other than the United States Dollar, including the Euro, British Pound Sterling 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 consolidated statements of income (loss) for the years ended October 31, 2018 , 2017 and 2016 were as follows (in thousands): Year Ended October 31, Derivatives Not Designated as Hedging Instruments Location of (Loss) or Gain: 2018 2017 2016 Foreign currency derivatives Other, net $ (11 ) $ (88 ) $ 77 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 consolidated balance sheets. Less than $0.1 million of fair value related to foreign currency derivatives was included in prepaid and other current assets as of the years ended October 31, 2018 and 2017, and less than $0.1 million of fair value related to foreign currency derivatives was included in accrued liabilities as of October 31, 2017. The following table summarizes the notional amounts and fair value of outstanding derivative contracts at October 31, 2018 and 2017 (in thousands): Notional as indicated Fair Value in $ October 31, October 31, October 31, October 31, Foreign currency derivatives: Buy EUR, Sell USD EUR 455 1,271 $ 1 $ 24 Sell CAD, Buy USD CAD 229 320 — 1 Sell GBP, Buy USD GBP 22 75 — — Buy EUR, Sell GBP EUR 34 30 — (1 ) Buy USD, Sell EUR USD 12 — — — For the classification in the fair value hierarchy, see Note 14, "Fair Value Measurement of Assets and Liabilities", included herewith. |
Fair Value Measurement of Asset
Fair Value Measurement of Assets and Liabilities | 12 Months Ended |
Oct. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement of Assets and Liabilities | 14. 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. As of October 31, 2018 and 2017 , foreign currency derivatives were the only instruments being measured on a recurring basis. Less than $0.1 million of foreign currency derivatives were included in total assets as of October 31, 2018 and less than $0.1 million of foreign currency derivatives were included in total assets and total liabilities as of October 31, 2017 . All of our derivative contracts are valued using quoted market prices from brokers or exchanges and are classified within Level 2 of the fair value hierarchy. As of October 31, 2018 and 2017 , 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. 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 is variable rate debt that re-prices frequently, thereby limiting our exposure to significant changes in interest rate risk. As a result, the fair value of our debt instruments approximates carrying value at October 31, 2018 and 2017 (Level 3 measurement). |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Oct. 31, 2018 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | 15. 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, performance restricted stock units, 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 authorized for grant under the 2008 Plan is 7,650,000 as approved by the shareholders. Any officer, key employee and/or non-employee director is eligible for awards under the 2008 Plan. We grant restricted stock units to non-employee directors on the first business day of each fiscal year. Annually, pending approval by the Compensation & Management Development Committee of our Board of Directors in December, we grant a mix of stock options, restricted stock awards, performance shares and/or performance restricted stock units 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 years ended October 31, 2018 , 2017 and 2016 , follows: Restricted Stock Awards Weighted Average Grant Date Fair Value per Share Non-vested at October 31, 2015 293,000 $ 18.71 Granted 85,500 19.21 Vested (102,000 ) 17.84 Forfeited (9,800 ) 18.97 Non-vested at October 31, 2016 266,700 19.19 Granted 93,800 19.46 Vested (73,100 ) 17.67 Forfeited (3,100 ) 19.65 Non-vested at October 31, 2017 284,300 19.66 Granted 73,400 20.70 Vested (111,800 ) 20.16 Forfeited (28,700 ) 19.66 Non-vested at October 31, 2018 217,200 $ 19.76 The total weighted average grant-date fair value of restricted stock awards that vested during the years ended October 31, 2018 , 2017 and 2016 was $2.3 million , $1.3 million and $1.8 million , respectively. As of October 31, 2018 , total unrecognized compensation cost related to unamortized restricted stock awards totaled $1.6 million . We expect to recognize this expense over the remaining weighted average period of 1.7 years. Stock Options Historically, stock options have been awarded to key employees, officers and non-employee directors. Effective May 2015, the director compensation structure was revised to eliminate the grant of stock options to non-employee directors. Additionally, stock options were not awarded during the year ended October 31, 2018. Key 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 the Black-Scholes pricing model to estimate the fair value of our stock options. A description of the methodology for the valuation assumptions follows: • Expected Volatility – For stock options granted prior to July 1, 2013, we used an estimate of the historical volatility of a selected peer group. Effective July 1, 2013, we determined that we had sufficient historical data to calculate the volatility of our common stock since our spin-off in April 2008. We believe there has been uncertainty in the United States equities market over the past several years and that uncertainty has contributed to volatility in equities in general. We expect this volatility to continue over the foreseeable future. Therefore, we believe that our historical volatility is a proxy for expected volatility. We have not excluded any of our historical data from the volatility calculation, and we are not aware of any specific significant factors which might impact our future volatility. • Expected Term – For stock options granted prior to July 1, 2013, we determined the expected term using historical information of our former parent company prior to the spin-off in 2008, with regards to option vesting, exercise behavior and contractual expiration, as we believed that this employee group was the most similar to our employee group. Separate groups of employees that have similar historical exercise behavior were considered separately. Effective July 1, 2013, we determined that we had sufficient historical data to estimate our expected term using our own data with regards to the exercise behavior, cancellations, retention patterns and remaining contractual terms. When analyzing these patterns and variables, we considered the stratification of the awards (large grants to relatively few employees versus smaller grants to many others), the age of certain employees with larger grants, the historical exercise behavior of the employee group, and fluctuations/volatility of our underlying common stock, as to whether the stock options are expected to be out-of-the-money. For our directors, stock options vested immediately, and, as such, the expected term approximated the contractual term, after adjusting for historical forfeitures. We believe our estimates are reasonable given these factors. • Risk-Free Rate – We base the risk-free rate on the yield at the date of grant of a zero-coupon United States Treasury bond whose maturity period equals the option’s expected term. • Expected Dividend Yield – We base the expected dividend yield on our historical dividend payment of approximately $0.16 per share. The following table summarizes the assumptions used to estimate the fair value of our stock options granted during the years ended October 31, 2017 and 2016 . Year Ended October 31, 2017 2016 Weighted-average expected volatility 34.7% 37.1% Weighted-average expected term (in years) 5.7 5.4 Risk-free interest rate 2.0% 1.7% Expected dividend yield over expected term 1.0% 1.0% Weighted average grant date fair value $6.25 $6.32 The following table summarizes our stock option activity for the years ended October 31, 2018 , 2017 and 2016 . Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (000s) Outstanding at October 31, 2015 2,352,188 $ 16.46 5.4 $ 6,672 Granted 297,900 19.23 Exercised (221,850 ) 15.43 Forfeited/Expired (42,018 ) 19.78 Outstanding at October 31, 2016 2,386,220 16.84 5.1 $ 2,384 Granted 292,600 19.45 Exercised (507,660 ) 15.67 Forfeited/Expired (18,402 ) 19.90 Outstanding at October 31, 2017 2,152,758 17.44 5.2 $ 9,700 Granted — — Exercised (377,218 ) 12.58 Forfeited/Expired (21,884 ) 19.28 Outstanding at October 31, 2018 1,753,656 18.47 5.0 $ 51 Vested or expected to vest at October 31, 2018 1,753,656 18.47 5.0 $ 51 Exercisable at October 31, 2018 1,477,746 $ 18.30 4.4 $ 51 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. For the years ended October 31, 2018 , 2017 and 2016 , the total intrinsic value of our stock options that were exercised totaled $2.9 million , $3.1 million and $1.0 million , respectively. The total fair value of stock options vested during the years ended October 31, 2018 , 2017 and 2016 , was $1.5 million , $1.8 million and $1.9 million , respectively. As of October 31, 2018 , total unrecognized compensation cost related to stock options was $0.2 million . We expect to recognize this expense over the remaining weighted average vesting period of 1.0 years. Restricted Stock Units Restricted stock units may be awarded to key employees and officers from time to time, and annually to non-employee directors. The non-employee director restricted stock units vest immediately but are payable only upon the director's cessation of service unless an election is made by the non-employee director to settle and pay the award on an earlier specified date. Restricted stock units awarded to employees and officers typically cliff vest after a three -year period with service and continued employment as the vesting conditions. Restricted stock units are not considered outstanding shares and do not have voting rights, although the holder does receive a cash payment equivalent to the dividend paid, on a one-for-one basis, on our outstanding common shares. Once the vesting criteria is met, each restricted stock unit is payable to the holder in cash based on the market value of one share of our common stock. Accordingly, we record a liability for the restricted stock units on our balance sheet and recognize any changes in the market value during each reporting period as compensation expense. During the years ended October 31, 2018 , 2017 and 2016 , 18,050 , 24,560 and 20,445 restricted stock units, respectively, were granted and immediately vested with corresponding weighted average grant date fair value of $21.85 , $15.65 and $19.56 , respectively. As of October 31, 2018 , 2017 and 2016 , there were no non-vested restricted stock units. We did not make any payments to settle restricted stock units during the years ended October 31, 2018 , 2017 and 2016 . Performance Share Awards We have granted performance share awards to key employees and officers annually in December. In addition, we awarded performance shares in January 2016 to a new officer. These awards cliff vest after a three -year period with service and performance measures such as relative total shareholder return (R-TSR) and earnings per share (EPS) growth as vesting conditions. The number of performance share awards earned is variable depending on the metrics achieved. The settlement method is 50% in cash and 50% in our common stock. To account for the performance share 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 will be expensed over the three -year term of the award, with a credit to additional paid-in-capital, and could fluctuate depending on the number of shares ultimately expected to vest based on our assessment of the probability that the performance conditions will be achieved. For both performance conditions, the portion of the award expected to settle in cash will be recorded as a liability and will be marked to market over the three -year term of the award, and could fluctuate depending on the number of shares ultimately expected to vest. Depending on the achievement of the performance conditions, 0% to 200% of the awarded performance shares may ultimately vest. The following table summarizes our performance share grants and the grant date fair value for the EPS and R-TSR performance metrics: Grant Date Fair Value Grant Date Shares Awarded EPS R-TSR Forfeited December 2, 2015 158,100 $ 19.31 $ 23.72 18,936 January 25, 2016 4,300 17.46 26.65 — November 30, 2016 186,500 19.45 26.61 17,940 December 7, 2017 146,500 $ 20.70 $ 21.81 12,848 On December 3, 2017, 123,600 shares vested pursuant to the December 2013 grant, resulting in the issuance of 25,340 shares of common stock and a cash payment of $0.6 million . The November 2016 grant includes a return on invested capital (ROIC) metric which, if achieved, could enhance the number of shares that are ultimately issued but cannot exceed the maximum (200%). Due to the uncertainty with regard to achieving this metric, no value has been assigned. In the event and at such time the metric is deemed achievable, compensation expense will begin to be recognized through the remaining vesting period. For the year ended October 31, 2018 , we recorded a decrease in compensation expense of $0.9 million , which reflects a decrease in the number of shares expected to vest in December 2018 associated with the December 2, 2015 performance share grant. For the years ended October 31, 2017 and 2016, we recorded $3.0 million and $2.7 million of compensation expense related to these performance share awards. Performance share awards are not considered outstanding shares and do not have voting rights, although dividends are accrued over the performance period and will be payable in cash based upon the number of performance shares ultimately earned. Performance shares are excluded from diluted weighted-average shares used to calculate earnings per share until the performance criteria is probable to result in the issuance of contingent shares. We evaluate the probability of the performance share vesting within one year of the vesting date. As of October 31, 2018 , we have deemed no performance share awards to vest from our December 2, 2015 performance share award. For the years ended October 31, 2017 and 2016, there were 25,338 and 67,550 shares, respectively, related to performance shares that were potentially dilutive and considered in the diluted weighted average shares calculations. No contingent shares related to performance shares are included in diluted weighted average shares for the year ended October 31, 2018. Performance Restricted Stock Units We awarded performance restricted stock units to key employees and officers in December 2017. These awards cliff vest upon a three-year service period with the absolute total shareholder return of our common stock over this three-year term as the vesting criteria. The number of performance restricted stock units earned is variable depending on the metric achieved, and the settlement method is 100% in our common stock, with accrued dividends paid in cash at the time of vesting, assuming the shares had been outstanding throughout the performance period. To value the performance restricted stock units, we utilized a Monte Carlo simulation model to arrive at a grant-date fair value. This amount will be adjusted for forfeitures and expensed over the three-year term of the award with a credit to additional paid-in-capital. Depending on the achievement of the performance conditions, a minimum of 0% and a maximum of 150% of the awarded performance restricted stock units may vest. Specifically, the awards vest on a continuum with the following Absolute Total Shareholder Return (A-TSR) milestones: Vesting Level Vesting Criteria Percentage of Award Vested Level 1 A-TSR greater than or equal to 50% 150% Level 2 A-TSR less than 50% and greater than or equal to 20% 100% Level 3 A-TSR less than 20% and greater than or equal to -20% 50% Level 4 A-TSR less than -20% —% On December 7, 2017, we awarded 78,200 performance restricted stock units with a grant date fair value of $17.76 per share. During the year ended October 31, 2018 , 6,889 of the performance restricted stock units were forfeited. Similar to performance shares, the performance restricted stock units are not considered outstanding shares, do not have voting rights, and are excluded from diluted weighted-average shares used to calculate earnings per share until the performance criteria is probable to result in the issuance of contingent shares. The following table summarizes amounts expensed as selling, general and administrative expense related to restricted stock awards, stock options, restricted stock units, performance share awards and performance restricted stock units for the years ended October 31, 2018 , 2017 and 2016 (in thousands): Year Ended October 31, 2018 2017 2016 Restricted stock awards $ 1,462 $ 1,810 $ 1,911 Stock options 467 1,820 2,486 Restricted stock units (364 ) 855 161 Performance share awards (944 ) 3,001 2,703 Performance restricted stock units 401 — — Total compensation expense 1,022 7,486 7,261 Income tax effect (35 ) 1,999 4,858 Net compensation expense $ 1,057 $ 5,487 $ 2,403 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Oct. 31, 2018 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity | 16. Stockholders' Equity As of October 31, 2018 , our authorized capital stock consists of 125,000,000 shares of common stock, at par value of $0.01 per share, and 1,000,000 shares of preferred stock, with no par value. As of October 31, 2018 and 2017 , we had 37,433,817 and 37,508,877 shares of common stock issued, respectively, and 33,339,032 and 34,838,134 shares of common stock outstanding, respectively. There were no shares of preferred stock issued or outstanding at October 31, 2018 and 2017 . Stock Repurchase Program and Treasury Stock On August 30, 2018, our Board of Directors approved a stock repurchase program that authorized the repurchase of up to $60.0 million worth of shares of our common stock. Repurchases under the new program will be made in open market transactions or privately negotiated transactions, subject to market conditions, applicable legal requirements and other relevant factors. The program does not have an expiration date or a limit on the number of shares that may be purchased. During the year ended October 31, 2018, we purchased 1,900,000 shares at a cost of $32.0 million under this program. 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, upon the exercise of stock options, and upon the vesting of performance shares and performance restricted stock units. 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 $2.1 million and $1.5 million in the years ended October 31, 2018 and 2017 , respectively. For a summary of treasury stock activity for the years ended October 31, 2018 , 2017 and 2016 , refer to the Consolidated Statement of Stockholders' Equity located elsewhere herein. |
Other Income (Expense)
Other Income (Expense) | 12 Months Ended |
Oct. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense) | 17. Other Income (Expense) Other income (expense) included under the caption "Other, net" on the accompanying consolidated statements of income (loss), consisted of the following (in thousands): Year Ended October 31, 2018 2017 2016 Foreign currency transaction gains (losses) $ 113 $ 713 $ (5,457 ) Foreign currency exchange derivative (losses) gains (11 ) (88 ) 77 Interest income 69 86 106 Other 7 19 (205 ) Other income (expense) $ 178 $ 730 $ (5,479 ) |
Segment Information
Segment Information | 12 Months Ended |
Oct. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 18. Segment Information We present three reportable business segments: (1) North American Engineered Components segment (“NA Engineered Components”), comprising four operating segments primarily focused on the fenestration market in North America including vinyl profiles, insulating glass (IG) spacers, screens & other fenestration components; (2) European Engineered Components segment (“EU Engineered Components”), comprising our United Kingdom-based vinyl extrusion business, manufacturing vinyl profiles & conservatories, and the European insulating glass business manufacturing IG spacers; and (3) North American Cabinet Components segment (“NA Cabinet Components”), comprising Woodcraft and two wood manufacturing plants. We maintain a grouping called Unallocated Corporate & Other, which includes transaction expenses, stock-based compensation, long-term incentive awards based on the performance of our common stock and other factors, certain severance and legal costs not deemed to be allocable to all segments, depreciation of corporate assets, interest expense, other, net, income taxes and inter-segment eliminations, and beginning in 2018, executive incentive compensation and medical expense fluctuations relative to planned costs as determined during the annual planning process. Other general and administrative costs associated with the corporate office are allocated to the reportable segments, based upon a relative measure of profitability in order to more accurately reflect each reportable business segment's administrative costs. We allocate corporate expenses to businesses acquired mid-year from the date of acquisition. The accounting policies of our operating segments are the same as those used to prepare the accompanying consolidated financial statements. Corporate general and administrative expenses allocated during the years ended October 31, 2018 , 2017 and 2016 were $18.7 million , $17.0 million and $19.1 million , respectively. 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 OEMs; (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. Segment information for the years ended October 31, 2018 , 2017 and 2016 was as follows (in thousands): NA Eng. Comp. EU Eng. Comp. NA Cabinet Comp. Unallocated Corp. & Other Total Year Ended October 31, 2018 Net sales $ 485,366 $ 159,973 $ 249,813 $ (5,367 ) $ 889,785 Depreciation and amortization 27,248 9,607 14,401 566 51,822 Operating income (loss) 31,484 12,702 3,248 (11,059 ) 36,375 Capital expenditures 13,929 5,450 6,965 140 26,484 Total assets $ 239,915 $ 214,704 $ 272,313 $ 14,917 $ 741,849 Year Ended October 31, 2017 Net sales $ 474,878 $ 147,963 $ 248,808 $ (5,094 ) $ 866,555 Depreciation and amortization 34,308 8,833 13,811 543 57,495 Operating income (loss) 26,311 13,673 4,128 (9,745 ) 34,367 Capital expenditures 18,822 7,841 7,349 552 34,564 Total assets $ 258,315 $ 219,622 $ 285,457 $ 10,485 $ 773,879 Year Ended October 31, 2016 Net sales $ 538,249 $ 150,203 $ 248,119 $ (8,387 ) $ 928,184 Depreciation and amortization 29,793 9,339 13,453 561 53,146 Operating income (loss) 34,229 13,225 5,475 (16,576 ) 36,353 Capital expenditures $ 22,114 $ 6,141 $ 8,709 $ 279 $ 37,243 The following table summarizes the change in the carrying amount of goodwill by segment for the years ended October 31, 2018 and 2017 (in thousands): NA Eng. Comp. EU Eng. Comp. NA Cabinet Comp. Unallocated Corp. & Other Total Balance as of October 31, 2016 $ 38,712 $ 64,576 $ 113,747 $ — $ 217,035 Foreign currency translation adjustment — 5,159 — — 5,159 Balance as of October 31, 2017 $ 38,712 $ 69,735 $ 113,747 $ — $ 222,194 Foreign currency translation adjustment — (2,567 ) — — (2,567 ) Balance as of October 31, 2018 $ 38,712 $ 67,168 $ 113,747 $ — $ 219,627 For further details of Goodwill, see Note 6, "Goodwill & Intangible Assets", located herewith. We did not allocate non-operating expense or income tax expense to the reportable segments. The following table reconciles operating income (loss) as reported above to net income (loss) for the years ended October 31, 2018 , 2017 and 2016 : Year Ended October 31, 2018 2017 2016 (in thousands) Operating income $ 36,375 $ 34,367 $ 36,353 Interest expense (11,100 ) (9,595 ) (36,498 ) Other, net 178 730 (5,479 ) Income tax benefit (expense) 875 (6,819 ) 3,765 Income (loss) from continuing operations $ 26,328 $ 18,683 $ (1,859 ) Geographic Information Our manufacturing facilities and all long-lived assets are located in the United States, United Kingdom and Germany. We attribute our net sales to a geographic region based on the location of the customer. The following tables provide information concerning our net sales for the years ended October 31, 2018 , 2017 and 2016 , and our long-lived assets as of October 31, 2018 and 2017 (in thousands): Year Ended October 31, Net Sales: 2018 2017 2016 United States $ 676,776 $ 667,063 $ 724,045 Europe 159,652 148,370 150,710 Canada 23,610 24,442 24,141 Asia 18,584 17,028 20,404 Other foreign countries 11,163 9,652 8,884 Total net sales $ 889,785 $ 866,555 $ 928,184 Year Ended October 31, Long-lived assets, net 2018 2017 United States $ 384,595 $ 404,732 Germany 16,507 20,052 United Kingdom 141,814 148,319 Total long-lived assets, net $ 542,916 $ 573,103 Long-lived assets, net includes: property, plant and equipment, net; goodwill; and intangible assets, net. Product Sales We produce a wide variety of products that are used in the fenestration industry, including window spacer systems; extruded vinyl products; metal fabrication; and astragals, thresholds and screens. In addition, we produce certain non-fenestration products, including: kitchen and bath cabinet doors and components, flooring and trim moldings, solar edge tape, plastic decking, fencing, water retention barriers, conservatory roof components, and other products. The following table summarizes our product sales for the years ended October 31, 2018 , 2017 and 2016 into general groupings to provide additional information to our shareholders. Year Ended October 31, 2018 2017 2016 (in thousands) NA Engineered Components: United States - fenestration $ 412,000 $ 399,694 $ 444,571 International - fenestration 39,309 34,279 38,439 United States - non-fenestration 18,211 25,263 36,986 International - non-fenestration 15,846 15,642 18,253 $ 485,366 $ 474,878 $ 538,249 EU Engineered Components: United States - fenestration $ — $ 303 $ 412 International - fenestration 135,415 129,140 134,631 International - non-fenestration 24,558 18,520 15,160 $ 159,973 $ 147,963 $ 150,203 NA Cabinet Components: United States - fenestration $ 14,596 $ 17,083 $ 21,779 United States - non-fenestration 232,990 229,550 223,664 International - non-fenestration 2,227 2,175 2,676 $ 249,813 $ 248,808 $ 248,119 Unallocated Corporate & Other Eliminations $ (5,367 ) $ (5,094 ) $ (8,387 ) $ (5,367 ) $ (5,094 ) $ (8,387 ) Net sales $ 889,785 $ 866,555 $ 928,184 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Oct. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 19. Earnings (Loss) Per Share We compute basic earnings (loss) per share by dividing net income (loss) 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 basic and diluted earnings per share for the years ended October 31, 2018 and 2017 follows (in thousands, except per share data): Year Ended October 31, 2018 Year Ended October 31, 2017 Net Income from Continuing Operations Weighted Average Shares Per Share Net Income from Continuing Operations Weighted Average Shares Per Share Basic earnings per common share $ 26,328 34,701 $ 0.76 $ 18,683 34,230 $ 0.55 Effect of dilutive securities: Stock options — 198 — 446 Restricted stock — 126 — 138 Performance shares — — — 23 Diluted earnings per common share $ 26,328 35,025 $ 0.75 $ 18,683 34,837 $ 0.54 Basic and diluted loss per share was $0.05 for the twelve months ended October 31, 2016. The computation of diluted earnings per share excludes outstanding stock options and other common stock equivalents when their inclusion would be anti-dilutive. During the twelve-month period ended October 31, 2016, 378,542 shares of common stock equivalents, 152,227 shares of restricted stock and 67,550 contingent shares related to performance share awards and performance restricted stock units were excluded from the computation of diluted earnings per share. For the years ended October 31, 2018 , 2017 and 2016 , we had 1,000,356 , 686,650 ; and 807,372 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. |
Unaudited Quarterly Data
Unaudited Quarterly Data | 12 Months Ended |
Oct. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Data | Unaudited Quarterly Data Selected quarterly financial data for the years ended October 31, 2018 and 2017 was as follows (amounts in thousands, except per share amounts): For the Quarter Ended January 31, 2018 April 30, 2018 July 31, 2018 October 31, 2018 Net sales $ 191,666 $ 214,212 $ 239,821 $ 244,086 Cost of sales (excluding depreciation and amortization) 154,440 168,741 185,610 187,776 Depreciation and amortization 13,273 13,310 12,691 12,548 Operating (loss) income (489 ) 8,136 17,087 11,641 Net income $ 4,947 $ 4,136 $ 10,753 $ 6,492 Basic earnings per share 0.14 0.12 0.31 0.19 Diluted earnings per share 0.14 0.12 0.31 0.19 Cash dividends paid per common share $ 0.04 $ 0.04 $ 0.04 $ 0.08 For the Quarter Ended January 31, 2017 April 30, 2017 July 31, 2017 October 31, 2017 Net sales $ 195,096 $ 209,133 $ 229,367 $ 232,959 Cost of sales (excluding depreciation and amortization) 154,947 162,132 176,758 178,325 Depreciation and amortization 15,406 14,380 13,915 13,794 Operating (loss) income (3,841 ) 4,625 17,352 16,231 Net (loss) income $ (3,726 ) $ 1,462 $ 10,215 $ 10,732 Basic (loss) earnings per share (0.11 ) 0.04 0.30 0.31 Diluted (loss) earnings per share (0.11 ) 0.04 0.29 0.31 Cash dividends paid per common share $ 0.04 $ 0.04 $ 0.04 $ 0.04 Quarterly earnings (loss) per share results may not sum to the consolidated earnings per share results on the accompanying consolidated statements of income (loss) due to rounding and changes in weighted average shares during the respective periods. |
New Accounting Guidance Adopted
New Accounting Guidance Adopted | 12 Months Ended |
Oct. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Guidance Adopted | 21. New Accounting Guidance Adopted In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This amendment requires disclosure of the accounting policy for releasing income tax effects from accumulated other comprehensive income. It also provides an option for entities to reclassify the income tax effects of the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. We elected to early adopt this ASU effective November 1, 2017. We record income tax effects related to our unrecognized pension obligations in accumulated other comprehensive income as discussed in our Annual Report on Form 10-K for the year ended October 31, 2017. We have not elected to reclassify the income tax effects of the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This guidance prescribes the presentation of excess tax benefits or deficiencies derived from book and tax timing differences associated with stock-based compensation arrangements and certain related statement of cash flow implications. We adopted the provisions of ASU 2016-09 effective November 1, 2017, as noted below with no significant impact on our consolidated financial statements. • Excess tax benefits or deficiencies for share-based payments are to be recorded in the income tax provision, rather than as an adjustment to additional paid-in-capital. We made this change on a prospective basis; • Cash flows related to excess tax benefits or deficiencies are included in net cash provided by operating activities rather than as a financing activity. We adopted this change retrospectively, which resulted in an increase to net cash provided by operating activities and a corresponding decrease to net cash provided by financing activities of $0.2 million and $0.1 million for the years ended October 31, 2017 and 2016, respectively; • Cash paid to taxing authorities when withholding shares from an employee’s vesting or exercise of equity-based compensation awards for tax-withholding purposes is to be classified as net cash used in financing activities rather than as an operating activity. We adopted this change retrospectively, which resulted in an increase to net cash provided by operating activities and a corresponding decrease to net cash provided by financing activities of $1.0 million and $0.8 million for the years ended October 31, 2017 and 2016, respectively; • We elected to continue to withhold shares associated with stock-based compensation vesting or exercises to satisfy the minimum statutory tax withholding requirements, rather than electing to withhold at a higher rate; and • We elected to continue to estimate forfeitures rather than account for forfeitures as they occur. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842): Amendments to the Accounting Standards Codification . These amendments replace current guidance and require the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. The amendments apply to any entity that enters into leasing arrangements. This guidance becomes effective for fiscal years beginning after December 15, 2018, and, therefore, we will adopt this pronouncement in fiscal 2020. We are currently evaluating the impact of this pronouncement on our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This amendment simplifies the subsequent measurement of inventories by replacing the lower of cost or market revaluation method with the lower of cost and net realizable value test. This guidance is applicable to all inventories measured using methods other than last-in first-out method and the retail inventory method. We adopted the provisions of ASU 2016-09 effective November 1, 2017, with no material impact on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which supersedes and replaces existing revenue recognition guidance, including industry specific guidance. This guidance prescribes a principles-based approach to revenue recognition under which revenue is recognized as goods and services are transferred to the customer in the amount the entity expects to be entitled to in exchange for those goods or services. In addition, this guidance requires additional disclosures regarding the nature, amount, timing and uncertainty of revenue from contracts with customers. We will adopt this guidance as of November 1, 2018 using the modified retrospective approach with a cumulative adjustment to retained earnings. As of October 31, 2018, we have completed the evaluation of our revenue streams and have reviewed samples of customer contracts that we believe fairly represent contract traits that could be accounted for differently under amended guidance. We have evaluated the potential impact of the new revenue standard on each of the selected contracts including: (i) estimating the contract consideration under the new standard, (ii) identifying the performance obligations within the customer contracts, (iii) calculating the anticipated allocation of contract consideration to each performance obligation, (iv) determining the timing of revenue recognition for each performance obligation, and (v) determining the classification of the contract revenue for disclosure purposes. Based on the contract reviews and evaluations performed to date, we do not anticipate any material impacts from implementing the amended guidance. |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation Organization, Consolidation and Presentation of Financial Statements (Policies) | 12 Months Ended |
Oct. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy | Basis of Presentation and Principles of Consolidation Our consolidated financial statements have been prepared by us in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). We consolidate our wholly-owned subsidiaries and eliminate intercompany sales and transactions. We have no cost or equity investments in companies that are not wholly-owned. In our opinion, these audited financial statements contain all adjustments necessary to fairly present our financial position, results of operations and cash flows for the periods presented. |
Use of Estimates, Policy | Use of Estimates 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 ongoing 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. During the year ended October 31, 2017 , we recorded a change in estimate related to certain assets involved in restructuring activities, as more fully described under the caption "Restructuring." A summary of our significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements follows: |
Revenue Recognition, Deferred Revenue | Revenue Recognition We recognize revenue when products are shipped and when title has passed to the customer. Revenue is deemed to be realized or earned when the following criteria are met: (a) persuasive evidence that a contractual sales arrangement exists; (b) delivery has occurred; or when title passes to the buyers; (c) the price to the buyer is fixed or determinable; and (d) collection is reasonably assured. Sales allowances and customer incentives, including volume discounts or rebates, are treated as reductions to revenue and are provided for based on historical experience, current estimates or contract terms. |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents Cash equivalents include all highly liquid investments with an original maturity of three months or less. Such securities with an original maturity which exceeds three months are deemed to be short-term investments. We maintain cash and cash equivalents at several financial institutions, which at times may not be federally insured or may exceed federally insured limits. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risks on such accounts. |
Concentration Credit Risk and Allowance Policy | Concentration of Credit Risk and Allowance for Doubtful Accounts Certain of our businesses or product lines are largely dependent on a relatively few large customers. Although we believe we have an extensive customer base, the loss of one of these large customers or if such customers were to incur a prolonged period of decline in business, our financial condition and results of operations could be adversely affected. For the years ended October 31, 2018 and 2017 , no customers provided more than 10% of our consolidated net sales. For the year ended October 31, 2016, one customer provided 10% of our consolidated sales. We have established an allowance for doubtful accounts to estimate the risk of loss associated with our accounts receivable balances. Our policy for determining the allowance is based on factors that affect collectability, including: (a) historical trends of write-offs, recoveries and credit losses; (b) the credit quality of our customers; and (c) projected economic and market conditions. We believe our allowance is adequate to absorb any known or probable losses as of October 31, 2018 . |
Business Combinations Policy | Business Combinations We apply the acquisition method of accounting for business combinations in accordance with U.S. GAAP, which requires us to make use of estimates and judgments to allocate the purchase price paid for acquisitions to the fair value of the assets and liabilities acquired. We account for contingent assets and liabilities at fair value on the acquisition date, and record changes to fair value associated with these assets and liabilities as a period cost as incurred. We use established valuation techniques and engage reputable valuation specialists to assist us with these valuations. |
Inventory, Policy | Inventory We record inventory at the lower of cost or market value. Inventories are valued using the first-in first-out (FIFO) and last-in first-out (LIFO) methods, although LIFO is only used at two of our plant locations currently. We use the dollar-value link chain LIFO method, and the LIFO reserve is calculated on a consolidated basis in a single consolidated pool. The businesses that we acquire and integrate into our operations may value inventories using either the LIFO or FIFO method. Fixed costs related to excess manufacturing capacity are evaluated and expensed in the period, to insure that inventory is properly capitalized. Inventory quantities are regularly reviewed and provisions for excess or obsolete inventory are recorded primarily based on our forecast of future demand and our estimates regarding current and future market conditions. Significant unanticipated variances to our forecasts could require a change in the provision for excess or obsolete inventory, resulting in a charge to net income during the period of the change. |
Impairment or Disposal of Long-Lived Assets, Policy | Long-Lived Assets Property, Plant and Equipment and Intangible Assets with Defined Lives We make judgments and estimates related to the carrying value of property, plant and equipment, intangible assets with defined lives, and long-lived assets, which include determining when to capitalize costs, the depreciation and amortization methods to use and the useful lives of these assets. We evaluate these assets for impairment when there are indicators that the carrying values of these assets might not be recoverable. Such indicators of impairment may include changes in technology, significant market fluctuations, historical losses or loss of a significant customer, or other changes in circumstances that could affect the assets’ ability to generate future cash flows. When we evaluate these assets for impairment, we compare the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset to its carrying value. If the carrying value exceeds the sum of the undiscounted cash flows, and there is no alternative use for the asset, we determine that the asset is impaired. To measure the impairment charge, we compare the carrying amount of the long-lived asset to its fair value, as determined by quoted market prices in active markets, if available, or by discounting the projected future cash flows using our incremental borrowing rate. This calculation of fair value requires us to develop and employ long-term forecasts of future operating results related to these assets. These forecasts are based on assumptions about demand for our products and future market conditions. Future events and unanticipated changes to these assumptions could require a provision for impairment, resulting in a charge to net income during the period of the change. We monitor relevant circumstances, including industry trends, general economic conditions, and the potential impact that such circumstances might have on the valuation of our identifiable intangible assets with finite lives. Events and changes in circumstances that may cause a triggering event and necessitate such a review include, but are not limited to: a decrease in sales for certain customers, improvements or changes in technology, and/or a decision to discontinue the use of a trademark or trade name, or allow a patent to lapse. Such events could negatively impact the fair value of our identifiable intangible assets. In such circumstances, we may evaluate the underlying assumptions and estimates made by us in order to assess the appropriate valuation of these identifiable intangible assets and compare to the carrying value of the assets. We may be required to write down these identifiable intangible assets and record a non-cash impairment charge. When we originally value our intangible assets, we use a variety of techniques to establish the carrying value of the assets, including the relief from royalty method, excess current year earnings method and income method. Changes in market conditions during the fourth quarter of 2016 and throughout 2017 impacted our long-term forecasts of future operating results with regard to the reduction of significant sales volume to a large customer of our United States vinyl operations, and lower-than-expected operating performance of our North American Cabinet Components business. We determined that these conditions were indicators of triggering events which necessitated an evaluation of certain long-term assets utilized in these businesses for potential impairment. We compared the projected undiscounted cash flows we expected to realize associated with these assets over the remaining useful lives of the primary operating assets to the net book value of the long-term assets, including goodwill, and determined that these assets were not impaired. Therefore, we did not record an impairment charge related to property, plant and equipment or intangible assets with defined lives during the years ended October 31, 2017 and 2016. There were no indicators of triggering events noted for the year ended October 31, 2018. Software development costs, including costs incurred to purchase third-party software, are capitalized when we have determined that the technology is capable of meeting our performance requirements, and we have authorized funding for the project. We cease capitalization of software costs when the software is substantially complete and is ready for its intended use. The software is then amortized over its estimated useful life. When events or circumstances indicate the carrying value of internal use software might not be recoverable, we assess the recoverability of these assets by comparing the carrying value of the asset to the undiscounted future cash flows expected to be generated from the asset’s use, consistent with the methodology to test other property, plant and equipment for impairment. Property, plant and equipment is stated at cost and is depreciated using the straight-line method over the estimated useful lives of the assets. We capitalize betterments which extend the useful lives or significantly improve the operational efficiency of assets. We expense repair and maintenance costs as incurred. The estimated useful lives of our primary asset categories at October 31, 2018 were as follows: Useful Life (in Years) Land improvements 7 to 25 Buildings 25 to 40 Building improvements 5 to 20 Machinery and equipment 2 to 15 Leasehold improvements are depreciated over the shorter of their estimated useful lives or the term of the lease. Goodwill We use the acquisition method to account for business combinations and, to the extent that the purchase price exceeds the fair value of the net assets acquired, we record goodwill. In accordance with U.S. GAAP, we are required to evaluate our goodwill on a qualitative basis to determine if there are indicators of impairment. If there are no indicators, no further analysis is deemed necessary. However, if there are indicators of impairment or if events or circumstances indicate there may be a potential impairment, we perform an annual goodwill impairment test as of August 31, or more frequently if indicators of impairment exist. This impairment test requires a two-step approach as prescribed in ASC Topic 350 “ Intangibles - Goodwill and Other ” (ASC 350). The first step of the impairment test requires us to compare the fair value of each reporting unit to its carrying value including goodwill. To determine fair value of our reporting units, we use multiple valuation techniques including a discounted cash flow analysis, using the applicable weighted average cost of capital, in combination with a market approach. This test requires us to make assumptions about the future growth of our business and the market in general, as well as other variables such as the level of investment in capital expenditure, growth in working capital requirements and the terminal or residual value of our reporting units beyond the periods of estimated annual cash flows. We use a third-party valuation firm to assist us with this analysis. If the fair value of each reporting unit exceeds its carrying value, no further testing is required. Otherwise, we perform the second step of the impairment test whereby we compare the implied fair value of goodwill to its carrying value. The implied fair value of goodwill is determined by applying the acquisition method of accounting for a business combination to the reporting unit as if it were acquired. Under this method, the fair value of the reporting unit is deemed to be the purchase price. The assets and liabilities are recorded at their fair value and the remaining excess of fair value is the implied value of goodwill. An impairment loss is recorded to the extent that the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill. Our estimates of future cash flows and the residual values could differ from actual cash flows which may require a provision for impairment in a future period. |
Liability Reserve Estimate, Policy | Insurance We manage our exposure to losses for workers’ compensation, group medical, property, casualty and other insurance claims through a combination of self-insurance retentions and insurance coverage with third-party carriers. We record undiscounted liabilities associated with our portion of these exposures, which we estimate by considering various factors such as our historical claims experience, severity factors and estimated claims incurred but not reported, for which we have developed loss development factors, which are estimates as to how claims will develop over time until closed. While we consider a number of factors in preparing the estimates, sensitive assumptions using significant judgment are made in determining the amounts that are accrued in the financial statements. Actual claims could differ significantly from these estimated liabilities, depending on future claims experience. We do not record insurance recoveries until any contingencies relating to the claim have been resolved. |
Pension and Other Postretirement Plans, Pensions, Policy | Retirement Plans We sponsor a defined benefit pension plan and an unfunded postretirement plan that provides health care and life insurance benefits for a limited pool of eligible retirees and dependents. To measure our liabilities associated with these plans, we make assumptions related to future events, including expected return on plan assets, rate of compensation increases, and healthcare cost trend rates. The discount rate reflects the rate at which benefits could be effectively settled on the measurement date. We determine our discount rate using a RATE: Link Model whereby target yields are developed from bonds across a range of maturity points, and a curve is fitted to those targets. Spot rates (zero coupon bond yields) are developed from the curve and used to discount benefit payments associated with each future year. Actual pension plan asset investment performance, as well as other economic experience such as discount rate and demographic experience, will either reduce or increase unamortized pension losses at the end of any fiscal year, which ultimately affects future pension costs. |
Standard Product Warranty, Policy | Warranty Obligations We accrue warranty obligations when we recognize revenue for certain products. Our provision for warranty obligations is based on historical costs incurred for such obligations and is adjusted, where appropriate, based on current conditions and factors. Our ability to estimate our warranty obligations is subject to significant uncertainties, including changes in product design and our overall product sales mix. |
Income Tax, Policy | Income Taxes We record the estimated future tax effects of temporary differences between the tax basis of assets and liabilities and the amounts reported in our consolidated balance sheets, as well as net operating losses and tax credit carry forwards. We evaluate the carrying value of the net deferred tax assets and determine whether we will be able to generate sufficient future taxable income to realize our deferred tax assets. We perform this review for recoverability on a jurisdictional basis, whereby we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence can be objectively verified. Cumulative losses in recent years is a significant piece of negative evidence that is difficult to overcome in determining that a valuation allowance is not needed against deferred tax assets. Thus, it is generally difficult for positive evidence regarding projected future taxable income exclusive of reversing taxable temporary differences to outweigh objective negative evidence of recent financial reporting losses. We recorded net income for the years ended October 31, 2018 and 2017 and a net loss for the year ended October 31, 2016. We have recorded pre-tax cumulative income from continuing operations of $45.3 million for the three-year period ended October 31, 2018 . We believe we will fully realize our deferred tax assets, net of a recorded valuation allowance. We project future taxable income using the same forecasts used to test long-lived assets and intangibles for impairment, scheduling out the future reversal of existing taxable temporary differences and reviewing our most recent financial operations. In the event the estimates and assumptions indicate we will not generate sufficient future taxable income to realize our deferred tax assets, we record a valuation allowance against a portion of our deferred tax assets. We evaluate our on-going tax positions to determine if it is more-likely-than-not we will be successful in defending such positions if challenged by taxing authorities. To the extent that our tax positions do not meet the more-likely-than-not criteria, we record a liability for uncertain tax positions. We have recorded a liability for uncertain tax positions which stem from certain state tax items related to the interpretation of tax laws and regulations. We continue to evaluate our positions regarding various state tax interpretations at each reporting date, until the applicable statute of limitations lapse. |
Derivatives, Policy | Derivative Instruments We have historically used financial and commodity-based derivative contracts to manage our exposure to fluctuations in foreign currency exchange rates and aluminum prices. All derivatives are measured at fair value on a recurring basis and the methodology and classifications are discussed further in Note 13, "Derivative Instruments." We have not designated the derivative instruments we use as cash flow hedges under ASC Topic 815 " Derivatives and Hedging ” (ASC 815). Therefore, all gains and losses, both realized and unrealized, are recognized in the consolidated statements of income (loss) in the period of the change as the underlying assets and liabilities are marked-to-market. We do not enter into derivative instruments for speculative or trading purposes. As such, these instruments are considered economic hedges, and are reflected in the operating activities section of the consolidated statements of cash flow. |
Foreign Currency Transactions and Translations Policy | Foreign Currency Translation Our consolidated financial statements are presented in our reporting currency, the United States Dollar. Our German and United Kingdom operations are measured using the local currency as the functional currency. The assets and liabilities of our foreign operations which are denominated in other currencies are translated to United States Dollars using the prevailing exchange rates as of the balance sheet date. Revenues and expenses are translated at the average exchange rates for the applicable period. The resulting translation adjustments are recorded as a component of accumulated other comprehensive loss on the consolidated balance sheets. Occasionally, we enter into transactions that are denominated in currencies other than our functional currency. At each balance sheet date, we translate these asset or liability accounts to our functional currency and record unrealized transaction gains or losses. When these assets or liabilities settle, we record realized transaction gains or losses. These realized and unrealized gains or losses are included in the accompanying consolidated statements of income (loss) under the caption, “Other, net.” |
Share-based Compensation, Option and Incentive Plans Policy | Stock–Based Compensation We have issued stock-based compensation in the form of stock options to directors, employees and officers, and non-vested restricted stock awards to certain key employees and officers. We apply the provisions of ASC Topic 718 “ Compensation - Stock Compensation ” (ASC 718), to determine the fair value of stock option awards on the date of grant using the Black-Scholes valuation model. We recognize the fair value as compensation expense on a straight-line basis over the requisite service period of the award based on awards ultimately expected to vest. Stock options granted to directors vest immediately while the stock options granted to our employees and officers typically vest ratably over a three -year period with service and continued employment as the vesting conditions. For new option grants to retirement-eligible employees, we recognize expense and vest immediately upon grant, consistent with the retirement vesting acceleration provisions of these grants. For employees near retirement age, we amortize such grants over the period from the grant date to the retirement-eligibility date if such period is shorter than the standard vesting schedule. For grants of non-vested restricted stock, we calculate the compensation expense at the grant date as the number of shares granted multiplied by the closing stock price of our common stock on the date of grant. This expense is recognized ratably over the vesting period. Our non-vested restricted stock grants to officers and employees cliff vest over a three -year period with service and continued employment as the only vesting criteria. Our fair value determination of stock-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, our expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behavior over the expected term, our dividend rate, risk-free rate and expectation with regards to forfeitures. Option-pricing models were developed for use in estimating the value of traded options that have no vesting or hedging restrictions and are fully transferable. Because our employee stock options have certain characteristics that are significantly different from traded options, and because changes in the subjective assumptions can materially affect the estimated value, the valuation models may not provide an accurate measure of the fair value of our employee stock options. Accordingly, that value may not be indicative of the fair value observed in a willing buyer/willing seller market transaction. We have granted other awards which are linked to the performance of our common stock, but will settle in cash rather than the issuance of shares of our common stock. The value of these awards fluctuates with changes in our stock price, with the resulting gains or losses reflected in the period of the change. We have recorded current and non-current liabilities related to these awards reflected in the accompanying consolidated balance sheets at October 31, 2018 and 2017 . See Note 15, “Stock-based Compensation.” In addition, we have granted performance share units which settle in cash and shares upon vesting. These awards have vesting criteria based on a market condition (relative total shareholder return) and an internal performance condition (earnings per share growth). We utilize a Monte Carlo simulation model to value the market condition and our stock price on the date of grant to value the internal performance condition. We bifurcate the liability and equity portion of the awards (amounts expected to settle in cash and shares, respectively) and recognize expense ratably over the vesting period of three years. |
Stockholders' Equity, Policy | Treasury Stock We use the cost method to record treasury stock purchases whereby the entire cost of the acquired shares of our common stock is recorded as treasury stock (at cost). When we subsequently reissue these shares, proceeds in excess of cost upon the issuance of treasury shares are credited to additional paid in capital, while any deficiency is charged to retained earnings. |
Earnings Per Share, Policy | Earnings per Share Data We calculate basic earnings per share based on the weighted average number of our common shares outstanding for the applicable period. We calculate diluted earnings per share based on the weighted average number of our common shares outstanding for the period plus all potentially dilutive securities using the treasury stock method, whereby we assume that all such shares are converted into common shares at the beginning of the period, if deemed to be dilutive. If we incur a loss from continuing operations, the effects of potentially dilutive common stock equivalents (stock options and unvested restricted stock awards) are excluded from the calculation of diluted earnings per share because the effect would be anti-dilutive. Performance shares and performance restricted stock units are excluded from contingent shares for purposes of calculating diluted weighted average shares until the performance measure criteria is probable and shares are likely to be issued. |
Discontinued Operations, Policy | We lease several operating facilities from a company that is directly owned by the former owner of our United Kingdom-based vinyl extrusion business, who was our employee until his retirement in October 2018. See Note 2, "Acquisitions and Dispositions". In addition to the leases with our employee, our related party transactions also included purchases of less than $0.1 million and sales of approximately $0.1 million. Accounts payable and accounts receivable as of October 31, 2018 included less than $0.1 million of activity from related party transactions. |
Subsequent Events, Policy | Subsequent Events We have evaluated events occurring after the balance sheet date for possible disclosure as a subsequent event through the date the financial statements were issued. |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property Assets Useful Life | The estimated useful lives of our primary asset categories at October 31, 2018 were as follows: Useful Life (in Years) Land improvements 7 to 25 Buildings 25 to 40 Building improvements 5 to 20 Machinery and equipment 2 to 15 |
Cash Flow, Supplemental Disclosures | The following table summarizes our supplemental cash flow information for the years ended October 31, 2018 , 2017 and 2016 : Year Ended October 31, 2018 2017 2016 (In thousands) Cash paid for interest $ 7,890 $ 9,019 $ 14,594 Cash paid for income taxes 4,217 3,334 3,004 Cash received for income tax refunds 95 1,167 1,949 Noncash investing and financing activities: Investment in capital leases 799 16,846 — Increase (decrease) in capitalized expenditures in accounts payable and accrued liabilities 264 392 (32 ) Debt discount on Term Loan B — — 6,200 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Woodcraft | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | As of Date of (In thousands) Net assets acquired: Accounts receivable $ 23,944 Inventory 29,552 Prepaid and other current assets 4,081 Property, plant and equipment 63,154 Goodwill 113,747 Intangible assets 62,900 Other non-current assets 24 Accounts payable (4,620 ) Accrued expenses (9,492 ) Deferred income tax liabilities, net (37,386 ) Net assets acquired $ 245,904 Consideration: Cash, net of cash and cash equivalents acquired $ 245,904 |
Receivables & Allowance (Tables
Receivables & Allowance (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts receivable consisted of the following as of October 31, 2018 and 2017 : October 31, 2018 2017 (In thousands) Trade receivables $ 83,828 $ 79,221 Other 511 523 Total $ 84,339 $ 79,744 Less: Allowance for doubtful accounts 325 333 Accounts receivable, net $ 84,014 $ 79,411 |
Change in Allowance for Doubtful Accounts | The changes in our allowance for doubtful accounts were as follows: Year Ended October 31, 2018 2017 2016 (In thousands) Beginning balance as of November 1, 2017, 2016 and 2015, respectively $ 333 $ 251 $ 673 Bad debt expense (benefit) 46 131 (67 ) Amounts written off (54 ) (49 ) (371 ) Recoveries — — 16 Balance as of October 31, $ 325 $ 333 $ 251 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following at October 31, 2018 and 2017 : October 31, 2018 2017 (In thousands) Raw materials $ 41,584 $ 50,472 Finished goods and work in process 31,727 40,087 Supplies and other 1,794 2,655 Total $ 75,105 $ 93,214 Less: Inventory reserves 5,740 5,685 Inventories, net $ 69,365 $ 87,529 |
Inventory Reserve Rollforward | The changes in our inventory reserve accounts were as follows for the years ended October 31, 2018 , 2017 and 2016 : Year Ended October 31, 2018 2017 2016 (In thousands) Beginning balance as of November 1, 2017, 2016 and 2015, respectively $ 5,685 $ 4,994 $ 8,106 Charged to cost of sales 1,501 1,296 8 Write-offs (1,415 ) (661 ) (3,048 ) Other (31 ) 56 (72 ) Balance as of October 31, $ 5,740 $ 5,685 $ 4,994 |
Values of Inventories | Our inventories at October 31, 2018 and 2017 were valued using the following costing methods: October 31, 2018 2017 (In thousands) LIFO $ 4,273 $ 4,444 FIFO 65,092 83,085 Total $ 69,365 $ 87,529 |
Property, Plant & and Equipment
Property, Plant & and Equipment (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consisted of the following at October 31, 2018 and 2017 : October 31, 2018 2017 (In thousands) Land and land improvements $ 10,366 $ 10,491 Buildings and building improvements 98,212 96,622 Machinery and equipment 371,106 354,197 Construction in progress 10,293 13,868 Property, plant and equipment, gross 489,977 475,178 Less: Accumulated depreciation 288,607 264,047 Property, plant and equipment, net $ 201,370 $ 211,131 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill | The change in the carrying amount of goodwill for the years ended October 31, 2018 and 2017 was as follows: Year Ended October 31, 2018 2017 (In thousands) Beginning balance as of November 1, 2017 and 2016 $ 222,194 $ 217,035 Foreign currency translation adjustment (2,567 ) 5,159 Balance as of October 31, $ 219,627 $ 222,194 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | Amortizable intangible assets consisted of the following as of October 31, 2018 and 2017 : October 31, 2018 October 31, 2018 October 31, 2017 Remaining Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Customer relationships 11 years $ 153,704 $ 59,332 $ 155,230 $ 48,479 Trademarks and trade names 11 years 55,583 32,668 56,058 29,509 Patents and other technology 3 years 22,278 17,646 22,624 16,146 Total $ 231,565 $ 109,646 $ 233,912 $ 94,134 |
Estimated Amortization Expense Related to Intangible Assets | Estimated remaining amortization expense, assuming current intangible balances and no new acquisitions, for future fiscal years ending October 31, is as follows (in thousands): Estimated Amortization Expense 2019 $ 15,282 2020 14,226 2021 12,506 2022 11,883 2023 11,136 Thereafter 56,886 Total $ 121,919 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | Accrued liabilities consisted of the following at October 31, 2018 and 2017 : October 31, 2018 2017 (In thousands) Payroll, payroll taxes and employee benefits $ 28,202 $ 16,733 Accrued insurance and workers compensation 3,095 3,591 Sales allowances 6,514 9,070 Deferred compensation (current portion) 153 669 Deferred revenue 287 625 Warranties 148 168 Audit, legal, and other professional fees 2,170 2,096 Accrued taxes 2,286 2,656 Other 3,113 3,263 Accrued liabilities $ 45,968 $ 38,871 |
Debt and Capital Lease Obliga_2
Debt and Capital Lease Obligations (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt & Capital Lease Obligations | Long-term debt consisted of the following at October 31, 2018 and 2017 : October 31, 2018 2017 (In thousands) Revolving Credit Facility $ 195,000 $ 84,000 Term Loan A — 138,750 Capital lease obligations 17,043 18,764 Unamortized deferred financing fees $ (1,487 ) $ (2,088 ) Total debt $ 210,556 $ 239,426 Less: Current maturities of long-term debt 1,224 21,242 Long-term debt $ 209,332 $ 218,184 |
Schedule Of Applicable Margin And Commitment Fees | The applicable margin and commitment fees are outlined in the following table: Pricing Level Consolidated Leverage Ratio Commitment Fee LIBOR Rate Loans Base Rate Loans I Less than or equal to 1.50 to 1.00 0.200% 1.50% 0.50% II Greater than 1.50 to 1.00, but less than or equal to 2.25 to 1.00 0.225% 1.75% 0.75% III Greater than 2.25 to 1.00, but less than or equal to 3.00 to 1.00 0.250% 2.00% 1.00% IV Greater than 3.00 to 1.00 0.300% 2.25% 1.25% |
Schedule Of Consolidated Leverage Ratio Requirements | The 2016 Credit Agreement contained a: (1) Consolidated Fixed Charge Coverage Ratio requirement whereby we could not permit the Consolidated Fixed Charge Coverage Ratio, as defined, to be less than 1.10 to 1.00, and (2) Consolidated Leverage Ratio requirement, as summarized by period in the following table: Period Maximum Ratio Closing Date through January 30, 2017 3.50 to 1.00 January 31, 2017 through January 30, 2018 3.25 to 1.00 January 31, 2018 and thereafter 3.00 to 1.00 |
Schedule of Maturities of Long-term Debt | The table below presents the scheduled maturity dates of our long-term debt outstanding (excluding deferred loan costs of $1.5 million ) at October 31, 2018 (in thousands): Revolving Credit Facility Capital Leases and Other Obligations Aggregate Maturities 2019 $ — $ 1,523 $ 1,523 2020 — 1,076 1,076 2021 — 884 884 2022 — 876 876 2023 195,000 807 195,807 Thereafter — 11,877 11,877 Total $ 195,000 $ 17,043 $ 212,043 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Retirement Benefits [Abstract] | |
Funded Status and Net periodic Benefit Cost | The changes in benefit obligations and plan assets, and our funded status (reported in deferred pension and postretirement benefits on the consolidated balance sheets) were as follows: October 31, 2018 2017 Change in Benefit Obligation: (In thousands) Beginning balance as of November 1, 2017 and 2016, respectively $ 38,323 $ 36,892 Service cost 3,908 3,794 Interest cost 1,130 859 Actuarial gain (4,296 ) (318 ) Benefits paid (2,551 ) (2,263 ) Administrative expenses (555 ) (641 ) Projected benefit obligation at October 31, $ 35,959 $ 38,323 Change in Plan Assets: Beginning balance as of November 1, 2017 and 2016, respectively $ 34,340 $ 29,210 Actual return on plan assets 66 4,434 Employer contributions 764 3,600 Benefits paid (2,551 ) (2,263 ) Administrative expenses (555 ) (641 ) Fair value of plan assets at October 31, $ 32,064 $ 34,340 Non current liability - Funded Status $ (3,895 ) $ (3,983 ) |
Net Periodic Pension Cost | The net periodic benefit cost for the years ended October 31, 2018 , 2017 and 2016 , was as follows: Year Ended October 31, 2018 2017 2016 (In thousands) Service cost $ 3,908 $ 3,794 $ 3,712 Interest cost 1,130 859 828 Expected return on plan assets (2,172 ) (1,863 ) (1,617 ) Amortization of net loss 64 574 384 Net periodic benefit cost $ 2,930 $ 3,364 $ 3,307 |
Amounts Recognized in Other Comprehensive Income (Loss) | The changes in plan assets and projected benefit obligations which were recognized in our other comprehensive loss for the years ended October 31, 2018 , 2017 and 2016 were as follows: Year Ended October 31, 2018 2017 2016 (In thousands) Net (gain) loss arising during the period $ (2,189 ) $ (2,888 ) $ 3,556 Less: Amortization of net loss $ 64 $ 574 $ 384 Total recognized in other comprehensive loss $ (2,253 ) $ (3,462 ) $ 3,172 |
Assumptions Used in Benefit Calculations | The following table presents our assumptions for pension benefit calculations for the years ended October 31, 2018 , 2017 and 2016 : For the Year Ended October 31, 2018 2017 2016 2018 2017 2016 Weighted Average Assumptions: Benefit Obligation Net Periodic Benefit Cost Discount rate 4.44% 3.68% 3.41% 4.44% 3.66% 3.92% Rate of compensation increase 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Expected return on plan assets n/a n/a n/a 6.50% 6.50% 6.50% |
Allocation and Fair Value of Pension Assets | The following tables provide our target allocation for the year ended October 31, 2018 , as well as the actual asset allocation by asset category and fair value measurements as of October 31, 2018 and 2017 : Target Allocation Actual Allocation October 31, 2018 October 31, 2018 October 31, 2017 Equity securities 60.0 % 61.0 % 60.0 % Fixed income 40.0 % 39.0 % 40.0 % Fair Value Measurements at October 31, 2018 October 31, 2017 (In thousands) Money market fund $ 597 $ 204 Large capitalization $ 8,362 $ 10,972 Small capitalization 2,559 4,102 International equity 6,385 3,756 Other 1,913 1,695 Equity securities $ 19,219 $ 20,525 High-quality core bond $ 9,736 $ 6,801 High-quality government bond 1,251 3,407 High-yield bond 1,261 3,403 Fixed income $ 12,248 $ 13,611 Total securities (1) $ 32,064 $ 34,340 |
Expected Benefit Payments | The following table presents the total benefit payments expected to be paid to participants by year, which includes payments funded from our assets, as well as payments paid from the plan for the year ended October 31, (in thousands): Pension Benefits 2019 $ 2,488 2020 2,516 2021 2,724 2022 2,898 2023 3,031 2024 - 2028 16,304 Total $ 29,961 |
Amounts Recognized in Balance Sheet | The table below indicates the amount of these liabilities included in the accompanying consolidated balance sheets: October 31, 2018 October 31, 2017 (In thousands) Accrued liabilities $ 49 $ 49 Deferred pension and postretirement benefits 323 450 Total $ 372 $ 499 |
Warranty Obligations (Tables)
Warranty Obligations (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
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 consolidated balance sheets) follows: Year Ended October 31, 2018 2017 (In thousands) Beginning balance as of November 1, 2017, and 2016, respectively $ 323 $ 446 Provision for warranty expense 4 41 Change in accrual for preexisting warranties (16 ) (121 ) Warranty costs paid (16 ) (43 ) Total accrued warranty $ 295 $ 323 Less: Current portion of accrued warranty 148 168 Long-term portion at October 31, $ 147 $ 155 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense (Benefit) | The following table summarizes the components of income tax (benefit) expense from continuing operations for the years ended October 31, 2018 , 2017 and 2016 : Year Ended October 31, 2018 2017 2016 (In thousands) Current Federal $ 983 $ 1,991 $ 1,309 State and local 417 873 154 Non-United States 3,356 4,067 3,241 Total current 4,756 6,931 4,704 Deferred Federal (5,903 ) 1,860 (5,932 ) State and local 670 (450 ) (712 ) Non-United States (398 ) (1,522 ) (1,825 ) Total deferred (5,631 ) (112 ) (8,469 ) Total income tax (benefit) expense $ (875 ) $ 6,819 $ (3,765 ) |
Effective Income Tax Rate | The following table reconciles our effective income tax rate to the federal statutory rate for the years ended October 31, 2018 , 2017 and 2016 : Year Ended October 31, 2018 2017 2016 United States tax at statutory rate 23.3 % 35.0 % 35.0 % State and local income tax 3.4 1.7 7.4 Non-United States income tax (1.6 ) (9.1 ) 32.0 Deferred rate impact — (4.1 ) 15.2 General business credits (0.4 ) (0.5 ) 6.4 Transaction costs — — (17.0 ) Change in valuation allowance (0.1 ) (0.6 ) (0.9 ) Other permanent differences (0.3 ) 3.3 (5.8 ) Deferred rate impact of enactment of tax reform (30.5 ) — — Tax impact of stock based compensation (0.5 ) — — Impact of deemed repatriation 4.8 — — Return to actual adjustments (1.5 ) 1.0 (5.4 ) Effective tax rate (3.4 )% 26.7 % 66.9 % |
Deferred Tax Assets and Liabilities | Significant components of our net deferred tax liabilities and assets were as follows: October 31, 2018 2017 (In thousands) Deferred tax assets: Employee benefit obligations $ 9,910 $ 12,731 Accrued liabilities and reserves 1,609 2,409 Pension and other benefit obligations 1,872 2,968 Inventory 843 1,614 Loss and tax credit carry forwards 3,716 8,098 Other 119 194 Total gross deferred tax assets 18,069 28,014 Less: Valuation allowance 1,275 1,304 Total deferred tax assets, net of valuation allowance 16,794 26,710 Deferred tax liabilities: Property, plant and equipment 10,577 16,128 Goodwill and intangibles 23,432 32,542 Total deferred tax liabilities 34,009 48,670 Net deferred tax liabilities $ 17,215 $ 21,960 |
Unrecognized Tax Benefits | The following table reconciles the change in the unrecognized income tax benefit associated with uncertain tax positions for the years ended October 31, 2018 , 2017 and 2016 (in thousands): Unrecognized Income Tax Benefits Balance at October 31, 2015 $ 564 Additions for tax positions related to the current year — Additions for tax positions related to the prior year 15 Balance at October 31, 2016 $ 579 Additions for tax positions related to the current year — Additions for tax positions related to the prior year 12 Balance at October 31, 2017 $ 591 Additions for tax positions related to the current year — Additions for tax positions related to the prior year 15 Balance at October 31, 2018 $ 606 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Leases of Lessee Disclosure | The following table presents future minimum rental payments under operating leases with remaining terms in excess of one year at October 31, 2018 (in thousands): Operating Leases 2019 $ 8,407 2020 6,776 2021 5,376 2022 4,528 2023 4,290 Thereafter 20,274 Total $ 49,651 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
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 consolidated statements of income (loss) for the years ended October 31, 2018 , 2017 and 2016 were as follows (in thousands): Year Ended October 31, Derivatives Not Designated as Hedging Instruments Location of (Loss) or Gain: 2018 2017 2016 Foreign currency derivatives Other, net $ (11 ) $ (88 ) $ 77 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 consolidated balance sheets. Less than $0.1 million of fair value related to foreign currency derivatives was included in prepaid and other current assets as of the years ended October 31, 2018 and 2017, and less than $0.1 million of fair value related to foreign currency derivatives was included in accrued liabilities as of October 31, 2017. |
Schedule of Notional Amounts of Oustanding Derivative Positions | The following table summarizes the notional amounts and fair value of outstanding derivative contracts at October 31, 2018 and 2017 (in thousands): Notional as indicated Fair Value in $ October 31, October 31, October 31, October 31, Foreign currency derivatives: Buy EUR, Sell USD EUR 455 1,271 $ 1 $ 24 Sell CAD, Buy USD CAD 229 320 — 1 Sell GBP, Buy USD GBP 22 75 — — Buy EUR, Sell GBP EUR 34 30 — (1 ) Buy USD, Sell EUR USD 12 — — — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Share-based Compensation [Abstract] | |
Schedule of Nonvested Restricted Share Activity | A summary of non-vested restricted stock awards activity during the years ended October 31, 2018 , 2017 and 2016 , follows: Restricted Stock Awards Weighted Average Grant Date Fair Value per Share Non-vested at October 31, 2015 293,000 $ 18.71 Granted 85,500 19.21 Vested (102,000 ) 17.84 Forfeited (9,800 ) 18.97 Non-vested at October 31, 2016 266,700 19.19 Granted 93,800 19.46 Vested (73,100 ) 17.67 Forfeited (3,100 ) 19.65 Non-vested at October 31, 2017 284,300 19.66 Granted 73,400 20.70 Vested (111,800 ) 20.16 Forfeited (28,700 ) 19.66 Non-vested at October 31, 2018 217,200 $ 19.76 |
Schedule of Stock Option Activity | The following table summarizes our stock option activity for the years ended October 31, 2018 , 2017 and 2016 . Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (000s) Outstanding at October 31, 2015 2,352,188 $ 16.46 5.4 $ 6,672 Granted 297,900 19.23 Exercised (221,850 ) 15.43 Forfeited/Expired (42,018 ) 19.78 Outstanding at October 31, 2016 2,386,220 16.84 5.1 $ 2,384 Granted 292,600 19.45 Exercised (507,660 ) 15.67 Forfeited/Expired (18,402 ) 19.90 Outstanding at October 31, 2017 2,152,758 17.44 5.2 $ 9,700 Granted — — Exercised (377,218 ) 12.58 Forfeited/Expired (21,884 ) 19.28 Outstanding at October 31, 2018 1,753,656 18.47 5.0 $ 51 Vested or expected to vest at October 31, 2018 1,753,656 18.47 5.0 $ 51 Exercisable at October 31, 2018 1,477,746 $ 18.30 4.4 $ 51 |
Schedule of Valuation Assumptions and Fair Value for Stock Options | The following table summarizes our performance share grants and the grant date fair value for the EPS and R-TSR performance metrics: Grant Date Fair Value Grant Date Shares Awarded EPS R-TSR Forfeited December 2, 2015 158,100 $ 19.31 $ 23.72 18,936 January 25, 2016 4,300 17.46 26.65 — November 30, 2016 186,500 19.45 26.61 17,940 December 7, 2017 146,500 $ 20.70 $ 21.81 12,848 The following table summarizes the assumptions used to estimate the fair value of our stock options granted during the years ended October 31, 2017 and 2016 . Year Ended October 31, 2017 2016 Weighted-average expected volatility 34.7% 37.1% Weighted-average expected term (in years) 5.7 5.4 Risk-free interest rate 2.0% 1.7% Expected dividend yield over expected term 1.0% 1.0% Weighted average grant date fair value $6.25 $6.32 |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs | The following table summarizes amounts expensed as selling, general and administrative expense related to restricted stock awards, stock options, restricted stock units, performance share awards and performance restricted stock units for the years ended October 31, 2018 , 2017 and 2016 (in thousands): Year Ended October 31, 2018 2017 2016 Restricted stock awards $ 1,462 $ 1,810 $ 1,911 Stock options 467 1,820 2,486 Restricted stock units (364 ) 855 161 Performance share awards (944 ) 3,001 2,703 Performance restricted stock units 401 — — Total compensation expense 1,022 7,486 7,261 Income tax effect (35 ) 1,999 4,858 Net compensation expense $ 1,057 $ 5,487 $ 2,403 |
Other Income (Expense) (Tables)
Other Income (Expense) (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Non-operating Income (Expense) | Other income (expense) included under the caption "Other, net" on the accompanying consolidated statements of income (loss), consisted of the following (in thousands): Year Ended October 31, 2018 2017 2016 Foreign currency transaction gains (losses) $ 113 $ 713 $ (5,457 ) Foreign currency exchange derivative (losses) gains (11 ) (88 ) 77 Interest income 69 86 106 Other 7 19 (205 ) Other income (expense) $ 178 $ 730 $ (5,479 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Segment Reporting [Abstract] | |
Corporate SGA Allocation [Table Text Block] | |
Segment Information | NA Eng. Comp. EU Eng. Comp. NA Cabinet Comp. Unallocated Corp. & Other Total Year Ended October 31, 2018 Net sales $ 485,366 $ 159,973 $ 249,813 $ (5,367 ) $ 889,785 Depreciation and amortization 27,248 9,607 14,401 566 51,822 Operating income (loss) 31,484 12,702 3,248 (11,059 ) 36,375 Capital expenditures 13,929 5,450 6,965 140 26,484 Total assets $ 239,915 $ 214,704 $ 272,313 $ 14,917 $ 741,849 Year Ended October 31, 2017 Net sales $ 474,878 $ 147,963 $ 248,808 $ (5,094 ) $ 866,555 Depreciation and amortization 34,308 8,833 13,811 543 57,495 Operating income (loss) 26,311 13,673 4,128 (9,745 ) 34,367 Capital expenditures 18,822 7,841 7,349 552 34,564 Total assets $ 258,315 $ 219,622 $ 285,457 $ 10,485 $ 773,879 Year Ended October 31, 2016 Net sales $ 538,249 $ 150,203 $ 248,119 $ (8,387 ) $ 928,184 Depreciation and amortization 29,793 9,339 13,453 561 53,146 Operating income (loss) 34,229 13,225 5,475 (16,576 ) 36,353 Capital expenditures $ 22,114 $ 6,141 $ 8,709 $ 279 $ 37,243 The following table summarizes the change in the carrying amount of goodwill by segment for the years ended October 31, 2018 and 2017 (in thousands): NA Eng. Comp. EU Eng. Comp. NA Cabinet Comp. Unallocated Corp. & Other Total Balance as of October 31, 2016 $ 38,712 $ 64,576 $ 113,747 $ — $ 217,035 Foreign currency translation adjustment — 5,159 — — 5,159 Balance as of October 31, 2017 $ 38,712 $ 69,735 $ 113,747 $ — $ 222,194 Foreign currency translation adjustment — (2,567 ) — — (2,567 ) Balance as of October 31, 2018 $ 38,712 $ 67,168 $ 113,747 $ — $ 219,627 We did not allocate non-operating expense or income tax expense to the reportable segments. The following table reconciles operating income (loss) as reported above to net income (loss) for the years ended October 31, 2018 , 2017 and 2016 : Year Ended October 31, 2018 2017 2016 (in thousands) Operating income $ 36,375 $ 34,367 $ 36,353 Interest expense (11,100 ) (9,595 ) (36,498 ) Other, net 178 730 (5,479 ) Income tax benefit (expense) 875 (6,819 ) 3,765 Income (loss) from continuing operations $ 26,328 $ 18,683 $ (1,859 ) |
Schedule of Product Sales | The following table summarizes our product sales for the years ended October 31, 2018 , 2017 and 2016 into general groupings to provide additional information to our shareholders. Year Ended October 31, 2018 2017 2016 (in thousands) NA Engineered Components: United States - fenestration $ 412,000 $ 399,694 $ 444,571 International - fenestration 39,309 34,279 38,439 United States - non-fenestration 18,211 25,263 36,986 International - non-fenestration 15,846 15,642 18,253 $ 485,366 $ 474,878 $ 538,249 EU Engineered Components: United States - fenestration $ — $ 303 $ 412 International - fenestration 135,415 129,140 134,631 International - non-fenestration 24,558 18,520 15,160 $ 159,973 $ 147,963 $ 150,203 NA Cabinet Components: United States - fenestration $ 14,596 $ 17,083 $ 21,779 United States - non-fenestration 232,990 229,550 223,664 International - non-fenestration 2,227 2,175 2,676 $ 249,813 $ 248,808 $ 248,119 Unallocated Corporate & Other Eliminations $ (5,367 ) $ (5,094 ) $ (8,387 ) $ (5,367 ) $ (5,094 ) $ (8,387 ) Net sales $ 889,785 $ 866,555 $ 928,184 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following tables provide information concerning our net sales for the years ended October 31, 2018 , 2017 and 2016 , and our long-lived assets as of October 31, 2018 and 2017 (in thousands): Year Ended October 31, Net Sales: 2018 2017 2016 United States $ 676,776 $ 667,063 $ 724,045 Europe 159,652 148,370 150,710 Canada 23,610 24,442 24,141 Asia 18,584 17,028 20,404 Other foreign countries 11,163 9,652 8,884 Total net sales $ 889,785 $ 866,555 $ 928,184 Year Ended October 31, Long-lived assets, net 2018 2017 United States $ 384,595 $ 404,732 Germany 16,507 20,052 United Kingdom 141,814 148,319 Total long-lived assets, net $ 542,916 $ 573,103 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Basic and Diluted | The computation of basic and diluted earnings per share for the years ended October 31, 2018 and 2017 follows (in thousands, except per share data): Year Ended October 31, 2018 Year Ended October 31, 2017 Net Income from Continuing Operations Weighted Average Shares Per Share Net Income from Continuing Operations Weighted Average Shares Per Share Basic earnings per common share $ 26,328 34,701 $ 0.76 $ 18,683 34,230 $ 0.55 Effect of dilutive securities: Stock options — 198 — 446 Restricted stock — 126 — 138 Performance shares — — — 23 Diluted earnings per common share $ 26,328 35,025 $ 0.75 $ 18,683 34,837 $ 0.54 Basic and diluted loss per share was $0.05 for the twelve months ended October 31, 2016. The computation of diluted earnings per share excludes outstanding stock options and other common stock equivalents when their inclusion would be anti-dilutive. During the twelve-month period ended October 31, 2016, 378,542 shares of common stock equivalents, 152,227 shares of restricted stock and 67,550 contingent shares related to performance share awards and performance restricted stock units were excluded from the computation of diluted earnings per share. |
Unaudited Quarterly Data (Table
Unaudited Quarterly Data (Tables) | 12 Months Ended |
Oct. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Selected quarterly financial data for the years ended October 31, 2018 and 2017 was as follows (amounts in thousands, except per share amounts): For the Quarter Ended January 31, 2018 April 30, 2018 July 31, 2018 October 31, 2018 Net sales $ 191,666 $ 214,212 $ 239,821 $ 244,086 Cost of sales (excluding depreciation and amortization) 154,440 168,741 185,610 187,776 Depreciation and amortization 13,273 13,310 12,691 12,548 Operating (loss) income (489 ) 8,136 17,087 11,641 Net income $ 4,947 $ 4,136 $ 10,753 $ 6,492 Basic earnings per share 0.14 0.12 0.31 0.19 Diluted earnings per share 0.14 0.12 0.31 0.19 Cash dividends paid per common share $ 0.04 $ 0.04 $ 0.04 $ 0.08 For the Quarter Ended January 31, 2017 April 30, 2017 July 31, 2017 October 31, 2017 Net sales $ 195,096 $ 209,133 $ 229,367 $ 232,959 Cost of sales (excluding depreciation and amortization) 154,947 162,132 176,758 178,325 Depreciation and amortization 15,406 14,380 13,915 13,794 Operating (loss) income (3,841 ) 4,625 17,352 16,231 Net (loss) income $ (3,726 ) $ 1,462 $ 10,215 $ 10,732 Basic (loss) earnings per share (0.11 ) 0.04 0.30 0.31 Diluted (loss) earnings per share (0.11 ) 0.04 0.29 0.31 Cash dividends paid per common share $ 0.04 $ 0.04 $ 0.04 $ 0.04 |
Nature of Operations and Basi_4
Nature of Operations and Basis of Presentation, Concentration (Details) | 12 Months Ended | |
Oct. 31, 2018segmentcustomer | Oct. 31, 2016 | |
Concentration Risk [Line Items] | ||
Number of segments | segment | 3 | |
Sales | ||
Concentration Risk [Line Items] | ||
Number of major customers whose business, if lost, could adversely affect business | customer | 1 | |
Number of major customers | 1 |
Nature of Operations and Basi_5
Nature of Operations and Basis of Presentation, Inventory (Details) | Oct. 31, 2018plant |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Plant Locations using LIFO Valuation Method | 2 |
Nature of Operations and Basi_6
Nature of Operations and Basis of Presentation, Long Lived Assets (Details) | 12 Months Ended |
Oct. 31, 2018 | |
Land Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Land Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 25 years |
Building | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 25 years |
Building | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Building Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Building Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Nature of Operations and Basi_7
Nature of Operations and Basis of Presentation, Stock Options (Details) | 12 Months Ended |
Oct. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average period over which unrecognized cost is expected to be recognized | 3 years |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Weighted-average period over which unrecognized cost is expected to be recognized | 1 year |
Restricted stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Weighted-average period over which unrecognized cost is expected to be recognized | 1 year 8 months 12 days |
Employees and Officers | Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Nature of Operations and Basi_8
Nature of Operations and Basis of Presentation, Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Cash paid for interest | $ 7,890 | $ 9,019 | $ 14,594 |
Cash paid for income taxes | 4,217 | 3,334 | 3,004 |
Cash received for income tax refunds | 95 | 1,167 | 1,949 |
Initiation of capital leases and other | 799 | 16,846 | 0 |
Change in capitalized expenditures in accounts payable and accrued liabilities | (264) | (392) | (32) |
Debt discount | $ 0 | $ 0 | $ 6,200 |
Nature of Operations and Basi_9
Nature of Operations and Basis of Presentation, Related Party Transactions (Details) - reporting_unit | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Goodwill [Line Items] | ||
Number of reporting units | 5 | |
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 7.20% | 4.50% |
NA Engineered Components | ||
Goodwill [Line Items] | ||
Number of reporting units | 2 | |
EU Engineered Components | ||
Goodwill [Line Items] | ||
Number of reporting units | 2 | |
NA Cabinet Components | ||
Goodwill [Line Items] | ||
Number of reporting units | 1 |
Nature of Operations and Bas_10
Nature of Operations and Basis of Presentation, Restructuring (Details) - USD ($) $ in Thousands | 12 Months Ended | 36 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Income (loss) from continuing operations before income taxes | $ 25,453 | $ 25,502 | $ (5,624) | $ 45,300 |
Severance Costs | 500 | |||
Restructuring charges | $ 1,486 | 4,550 | 529 | |
Restructuring and Related Cost, Accelerated Depreciation | 4,300 | 1,000 | ||
Additional Amortization, Restructuring | $ 1,900 | $ 300 |
Acquisitions (Detail)
Acquisitions (Detail) $ / shares in Units, $ in Thousands | Nov. 07, 2016USD ($) | Nov. 02, 2015USD ($) | Jun. 15, 2015USD ($) | Oct. 31, 2018USD ($)$ / shares | Jul. 31, 2018$ / shares | Apr. 30, 2018$ / shares | Jan. 31, 2018$ / shares | Oct. 31, 2017USD ($)$ / shares | Jul. 31, 2017$ / shares | Apr. 30, 2017$ / shares | Jan. 31, 2017$ / shares | Oct. 31, 2015 | Jul. 31, 2016USD ($) | Oct. 31, 2018USD ($)$ / shares | Oct. 31, 2017USD ($)$ / shares | Oct. 31, 2016USD ($)$ / shares |
Business Acquisition [Line Items] | ||||||||||||||||
Goodwill | $ 219,627 | $ 222,194 | $ 219,627 | $ 222,194 | $ 217,035 | |||||||||||
Cash, net of cash acquired | $ 0 | $ 8,497 | $ 245,904 | |||||||||||||
Earn-out period compensation expense | $ 8,500 | |||||||||||||||
Tax at statutory rate | 23.30% | 35.00% | 35.00% | |||||||||||||
Basic earnings (loss) per common share | $ / shares | $ 0.19 | $ 0.31 | $ 0.12 | $ 0.14 | $ 0.31 | $ 0.30 | $ 0.04 | $ (0.11) | $ 0.76 | $ 0.55 | $ (0.05) | |||||
Diluted earnings (loss) per common share | $ / shares | $ 0.19 | $ 0.31 | $ 0.12 | $ 0.14 | $ 0.31 | $ 0.29 | $ 0.04 | $ (0.11) | $ 0.75 | $ 0.54 | $ (0.05) | |||||
HLP Acquisition | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Goodwill | $ 61,300 | |||||||||||||||
Cash, net of cash acquired | 131,700 | |||||||||||||||
Acquisitions, debt assumed | 7,700 | |||||||||||||||
Acquisitions, contingent consideration | $ (10,300) | |||||||||||||||
Ownership percentage | 100.00% | |||||||||||||||
Related party rent expense | $ 1,300 | $ 1,300 | $ 1,200 | |||||||||||||
Woodcraft | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Payments to Acquire Businesses, Gross | $ 245,900 | |||||||||||||||
working capital adjustment | $ 100 | $ 100 | ||||||||||||||
Goodwill | 113,747 | |||||||||||||||
Cash, net of cash acquired | 245,904 | |||||||||||||||
Accounts receivable for HLP | 23,944 | |||||||||||||||
Inventories for HLP | 29,552 | |||||||||||||||
Prepaid and other current assets for HLP | 4,081 | |||||||||||||||
Property, plant and equipment for HLP | 63,154 | |||||||||||||||
Intangible assets for HLP | 62,900 | |||||||||||||||
Other non-current assets for HLP | 24 | |||||||||||||||
Accounts payable for HLP | (4,620) | |||||||||||||||
Accrued expenses for HLP | (9,492) | |||||||||||||||
Deferred tax liability for HLP | (37,386) | |||||||||||||||
Net assets acquired | 245,904 | |||||||||||||||
Manufacturing Facility | HLP Acquisition | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Lease term | 20 years | |||||||||||||||
Warehouse | HLP Acquisition | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Lease term | 15 years | |||||||||||||||
Mixing Plant | HLP Acquisition | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Lease term | 13 years 6 months | |||||||||||||||
Internal Revenue Service (IRS) | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Tax at statutory rate | 23.30% | 35.00% | ||||||||||||||
United States | Woodcraft | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Number of Plants | 12 | 12 | ||||||||||||||
MEXICO | Woodcraft | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Number of Plants | 1 | 1 | ||||||||||||||
Customer relationships | Woodcraft | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 62,800 | |||||||||||||||
Finite-Lived Intangible Asset, Useful Life | 12 years | |||||||||||||||
Other Intangible Assets | Woodcraft | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 100 | |||||||||||||||
Finite-Lived Intangible Asset, Useful Life | 1 year |
Receivables & Allowance (Detail
Receivables & Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2018 | Oct. 31, 2017 | |
Receivables [Abstract] | |||||
Trade receivables | $ 83,828 | $ 79,221 | |||
Receivables from employees | 511 | 523 | |||
Accounts receivable, gross | 84,339 | 79,744 | |||
Allowance for accounts receivable | $ 333 | $ 251 | $ 673 | 325 | 333 |
Accounts receivable, net | $ 84,014 | $ 79,411 | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||
Allowance for accounts receivable | 333 | 251 | 673 | ||
Bad debt expense (benefit) | 46 | 131 | (67) | ||
Amounts written off | (54) | (49) | (371) | ||
Recoveries | 0 | 0 | 16 | ||
Allowance for accounts receivable | $ 325 | $ 333 | $ 251 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2018 | Oct. 31, 2017 | |
Inventory, Net [Abstract] | |||||
Raw materials | $ 41,584 | $ 50,472 | |||
Finished goods and work in process | 31,727 | 40,087 | |||
Supplies and other | 1,794 | 2,655 | |||
Total | 75,105 | 93,214 | |||
Inventory reserves | $ 5,685 | $ 4,994 | $ 8,106 | 5,740 | 5,685 |
Inventories, net | 69,365 | 87,529 | |||
Inventory Adjustments [Abstract] | |||||
Inventory reserves, beginning balance | 5,685 | 4,994 | 8,106 | ||
Charged (credited) to costs & expenses | 1,501 | 1,296 | 8 | ||
Write-offs | (1,415) | (661) | (3,048) | ||
Other | 31 | (56) | 72 | ||
Inventory reserves, ending balance | 5,740 | $ 5,685 | 4,994 | ||
LIFO Method Related Items [Abstract] | |||||
LIFO | 4,273 | 4,444 | |||
FIFO | 65,092 | 83,085 | |||
Inventories, net | 69,365 | $ 87,529 | |||
Excess of replacement cost over LIFO value | $ 1,400 | ||||
LIFO Adjustment | $ 300 | $ 300 |
Property, Plant & and Equipme_2
Property, Plant & and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Land and land improvements | $ 10,366 | $ 10,491 | |
Buildings and building improvements | 98,212 | 96,622 | |
Machinery and equipment | 371,106 | 354,197 | |
Construction in progress | 10,293 | 13,868 | |
Property, plant and equipment, gross | 489,977 | 475,178 | |
Less: Accumulated depreciation | (288,607) | (264,047) | |
Property, plant and equipment, net | 201,370 | 211,131 | |
Depreciation | 35,600 | 39,100 | $ 36,200 |
Capital Lease Obligations | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 22,200 | 24,300 | |
Less: Accumulated depreciation | (3,400) | (2,800) | |
Depreciation | $ 1,100 | $ 2,000 | $ 800 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Detail) $ in Thousands | Nov. 02, 2015USD ($) | Oct. 31, 2018USD ($) | Oct. 31, 2017USD ($) | Oct. 31, 2016USD ($) | Oct. 31, 2018USD ($)unit | Oct. 31, 2017USD ($) | Nov. 02, 2015USD ($) |
Goodwill [Roll Forward] | |||||||
Beginning balance | $ 222,194 | $ 217,035 | |||||
Foreign currency translation adjustment | (2,567) | 5,159 | |||||
Ending balance | 219,627 | 222,194 | $ 217,035 | ||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Asset impairment charges | 0 | 0 | 12,602 | ||||
Amortization | 1,900 | 300 | |||||
Number of reportable units with goodwill balances | unit | 5 | ||||||
Goodwill | 222,194 | 217,035 | 217,035 | $ 219,627 | $ 222,194 | ||
Gross carrying amount | 231,565 | 233,912 | |||||
Accumulated amortization | (109,646) | (94,134) | |||||
Retirement of fully amortized intangible assets | 300 | 2,400 | |||||
Intangible assets amortization expense | $ 16,200 | $ 18,400 | $ 16,900 | ||||
Estimated Amortization Expense | |||||||
2,018 | 15,282 | ||||||
2,019 | 14,226 | ||||||
2,020 | 12,506 | ||||||
2,021 | 11,883 | ||||||
2,022 | 11,136 | ||||||
Thereafter | 56,886 | ||||||
Intangible assets, net | 121,919 | 139,778 | |||||
Customer relationships | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Gross carrying amount | 153,704 | 155,230 | |||||
Accumulated amortization | (59,332) | (48,479) | |||||
Weighted Average Useful Life | 11 years | ||||||
Trademarks and trade names | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Gross carrying amount | 55,583 | 56,058 | |||||
Accumulated amortization | (32,668) | (29,509) | |||||
Weighted Average Useful Life | 11 years | ||||||
Patents and other technology | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Gross carrying amount | 22,278 | 22,624 | |||||
Accumulated amortization | $ (17,646) | $ (16,146) | |||||
Weighted Average Useful Life | 3 years | ||||||
Woodcraft | |||||||
Goodwill [Roll Forward] | |||||||
Ending balance | $ 113,747 | ||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | $ 113,747 | $ 113,747 | |||||
Woodcraft | Customer relationships | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Customer relationships related to acquired Greenville facility | $ 62,800 | ||||||
Useful life of customer relationships related to acquired Greenville facility | 12 years | ||||||
Engineered Products | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Number of reportable units with goodwill balances | unit | 2 | ||||||
NA Engineered Components Unit One | |||||||
Goodwill [Roll Forward] | |||||||
Ending balance | $ 35,900 | ||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | 35,900 | $ 35,900 | |||||
NA Engineered Components Unit Three | |||||||
Goodwill [Roll Forward] | |||||||
Ending balance | 2,800 | ||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | 2,800 | $ 2,800 | |||||
EU Engineered Components | |||||||
Goodwill [Roll Forward] | |||||||
Foreign currency translation adjustment | (2,567) | ||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Number of reportable units with goodwill balances | unit | 2 | ||||||
EU Engineered Components Unit One [Member] | |||||||
Goodwill [Roll Forward] | |||||||
Ending balance | 50,200 | ||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | 50,200 | $ 50,200 | |||||
EU Engineered Components Unit Two [Member] | |||||||
Goodwill [Roll Forward] | |||||||
Ending balance | 17,000 | ||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | $ 17,000 | $ 17,000 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 |
Accrued Liabilities [Abstract] | ||
Payroll, payroll taxes and employee benefits | $ 28,202 | $ 16,733 |
Accrued insurance and workers compensation | 3,095 | 3,591 |
Sales allowances | 6,514 | 9,070 |
Deferred compensation | 153 | 669 |
Deferred revenue | 287 | 625 |
Warranties | 148 | 168 |
Audit, legal, and other professional fees | 2,170 | 2,096 |
accrued other business taxes | 2,286 | 2,656 |
Other | 3,113 | 3,263 |
Accrued liabilities | $ 45,968 | $ 38,871 |
Debt and Capital Lease Obliga_3
Debt and Capital Lease Obligations - Schedule of Debt Obligations (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Oct. 31, 2017 |
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | $ 210,556 | $ 239,426 |
Debt Instrument, Unamortized Discount (Premium), Net | 1,487 | |
Unamortized deferred financing fees | (2,088) | |
Less: Current maturities of long-term debt | 1,224 | 21,242 |
Long-term debt | 209,332 | 218,184 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 195,000 | 84,000 |
Term Loan A | ||
Debt Instrument [Line Items] | ||
Term Loan A | 0 | 138,750 |
Capital lease obligations | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | $ 17,043 | $ 18,764 |
Debt and Capital Lease Obliga_4
Debt and Capital Lease Obligations - Narrative (Details) - USD ($) | Oct. 31, 2018 | Oct. 18, 2018 | Jul. 31, 2016 | Jul. 29, 2016 | Nov. 02, 2015 | Oct. 31, 2016 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | Apr. 30, 2018 |
Debt Instrument [Line Items] | ||||||||||
Amortization of debt discount (premium) | $ 0 | $ 0 | $ 6,200,000 | |||||||
Debt Instrument, Unamortized Discount (Premium), Net | $ 1,487,000 | 1,487,000 | ||||||||
Letters of credit, outstanding | 5,300,000 | 5,300,000 | ||||||||
Debt and capital lease obligations | 210,556,000 | 210,556,000 | $ 239,426,000 | |||||||
Credit facility, amount available | 124,700,000 | $ 124,700,000 | ||||||||
Debt instrument, interest rate during period | 3.76% | 2.95% | ||||||||
Interest expense, lessee, assets under capital lease | $ 0.0357 | |||||||||
Capital lease gross fair value | 16,600,000 | 16,600,000 | ||||||||
Capital lease obligations incurred | 799,000 | $ 16,846,000 | $ 0 | |||||||
Capital leases in property plant and equipment | 22,200,000 | 22,200,000 | ||||||||
Capital leases in accumulated depreciation | 3,400,000 | 3,400,000 | ||||||||
HLP | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Capital lease obligation, current portion | 900,000 | 900,000 | ||||||||
Capital leases in property plant and equipment | 16,300,000 | 16,300,000 | ||||||||
Capital leases in accumulated depreciation | 1,400,000 | 1,400,000 | ||||||||
HLP 2017 Capital Lease | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Capital lease obligations incurred, in GBP | 17,800,000 | 17,800,000 | ||||||||
Capital lease obligations incurred | 23,600,000 | |||||||||
2016 Credit Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | $ 195,000,000 | |||||||||
Capital lease obligations | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt and capital lease obligations | $ 17,043,000 | $ 17,043,000 | $ 18,764,000 | |||||||
Term Loan Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate, stated percentage | 3.80% | 3.80% | ||||||||
Kentucky Industrial Building Revenue Bonds | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate during period | 1.00% | 0.50% | ||||||||
Kentucky Industrial Building Revenue Bonds | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of debt | $ 400,000 | |||||||||
Interest rate, effective percentage | 0.70% | 0.70% | ||||||||
Kentucky Industrial Building Revenue Bonds | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate, effective percentage | 1.30% | 1.30% | ||||||||
Capital Lease Obligations | HLP | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Weighted average interest rate | 3.59% | 3.59% | ||||||||
Term Loan Facility | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity, committed amount | $ 150,000,000 | $ 310,000,000 | ||||||||
Quarterly principal payments | 0.0025 | |||||||||
Secured leverage ratio | 3 | |||||||||
Minimum prepayment amount | $ 5,000,000 | |||||||||
Incremental prepayment amounts | $ 1,000,000 | |||||||||
Prepayment fee | 1.00% | |||||||||
Term Loan Facility | Line of Credit | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Incremental borrowing capacity | $ 25,000,000 | |||||||||
Term Loan Facility | Line of Credit | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Incremental borrowing capacity | $ 50,000,000 | |||||||||
Term Loan Facility | Line of Credit | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Margin on base rate | 4.25% | |||||||||
Term Loan Facility | Line of Credit | London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Margin on base rate | 5.25% | |||||||||
Term Loan Facility | Line of Credit | London Interbank Offered Rate (LIBOR) | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate, stated percentage | 1.00% | |||||||||
Revolving Credit Facility | Base Rate | Tranche One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Margin on base rate | 0.50% | |||||||||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Tranche One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Margin on base rate | 1.50% | |||||||||
Revolving Credit Facility | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity, committed amount | $ 325,000,000 | 300,000,000 | $ 100,000,000 | |||||||
Debt Instrument, Term | 5 years | |||||||||
Margin on base rate | 1.50% | |||||||||
2015 Credit Facility | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment fee | 0.375% | |||||||||
Outstanding revolver borrowings | 309,200,000 | |||||||||
Amortization of financing costs | $ 8,100,000 | |||||||||
2016 Credit Agreement | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity, committed amount | $ 450,000,000 | |||||||||
Debt Instrument, Term | 5 years | |||||||||
LIBOR stipulation (less than) | 2.00% | |||||||||
Debt, current | $ 15,000,000 | $ 15,000,000 | ||||||||
Debt instrument, periodic payment, principal | $ 0 | |||||||||
Minimum leverage ratio | 2.25% | 2.25% | ||||||||
Minimum incremental borrowing | $ 10,000,000 | $ 10,000,000 | ||||||||
Maximum incremental borrowing | 150,000,000 | $ 150,000,000 | ||||||||
Debt instrument, maximum fixed charge coverage ratio | 1.10% | |||||||||
Debt instrument, limitation on annual dividend | $ 10,000,000 | |||||||||
Repayments of debt | 16,400,000 | $ 10,000,000 | ||||||||
Outstanding revolver borrowings | $ 213,500,000 | |||||||||
Debt instrument, repayment penalty, cash | 500,000 | $ 2,800,000 | ||||||||
Amortization of financing costs | 1,100,000 | |||||||||
2016 Credit Agreement | Line of Credit | London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Margin on base rate | 2.00% | |||||||||
Swing Line | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, unused borrowing capacity, amount | 15,000,000 | 15,000,000 | ||||||||
Minimum repayment | 1,000,000 | 1,000,000 | ||||||||
Minimum repayment multiples | $ 500,000 | $ 500,000 | ||||||||
2018 Credit Facility | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Secured leverage ratio | 3.25 | |||||||||
LIBOR stipulation (less than) | 2.00% | |||||||||
Minimum incremental borrowing | $ 10,000,000 | $ 10,000,000 | ||||||||
Maximum incremental borrowing | 150,000,000 | $ 150,000,000 | ||||||||
Debt instrument, limitation on annual dividend | $ 20,000,000 | |||||||||
Debt Instrument, Leverage Ratio Threshold for Limitations to Take Effect | 2.75 | |||||||||
Debt Instrument, Liquidity Threshold for Limitations to Take Effect | $ 25,000,000 | |||||||||
Outstanding revolver borrowings | 205,000,000 | |||||||||
Debt instrument, repayment penalty, cash | $ 1,000,000 | |||||||||
Amortization of debt discount (premium) | $ 5,500,000 | |||||||||
Required coverage ratio | 2.25 |
Debt and Capital Lease Obliga_5
Debt and Capital Lease Obligations - Schedule of Applicable Margins and Commitment Fees (Details) - Line of Credit | Jul. 31, 2016 | Oct. 31, 2018 |
Closing Date through January 30 2017 | ||
Debt Instrument [Line Items] | ||
Secured leverage ratio | 3.5 | |
January 31 2017 through January 30 2018 | ||
Debt Instrument [Line Items] | ||
Secured leverage ratio | 3.25 | |
January 31 2018 and thereafter | ||
Debt Instrument [Line Items] | ||
Secured leverage ratio | 3 | |
2016 Credit Agreement | LIBOR Rate Loans | ||
Debt Instrument [Line Items] | ||
Margin on base rate | 2.00% | |
2016 Credit Agreement | Less than or equal to 1.50 to 1.00 | ||
Debt Instrument [Line Items] | ||
Commitment Fee | 0.20% | |
2016 Credit Agreement | Less than or equal to 1.50 to 1.00 | LIBOR Rate Loans | ||
Debt Instrument [Line Items] | ||
Margin on base rate | 1.50% | |
2016 Credit Agreement | Less than or equal to 1.50 to 1.00 | Base Rate Loans | ||
Debt Instrument [Line Items] | ||
Margin on base rate | 0.50% | |
2016 Credit Agreement | Greater than 1.50 to 1.00, but less than or equal to 2.25 to 1.00 | ||
Debt Instrument [Line Items] | ||
Commitment Fee | 0.225% | |
2016 Credit Agreement | Greater than 1.50 to 1.00, but less than or equal to 2.25 to 1.00 | LIBOR Rate Loans | ||
Debt Instrument [Line Items] | ||
Margin on base rate | 1.75% | |
2016 Credit Agreement | Greater than 1.50 to 1.00, but less than or equal to 2.25 to 1.00 | Base Rate Loans | ||
Debt Instrument [Line Items] | ||
Margin on base rate | 0.75% | |
2016 Credit Agreement | Greater than 2.25 to 1.00, but less than or equal to 3.00 to 1.00 | ||
Debt Instrument [Line Items] | ||
Commitment Fee | 0.25% | |
2016 Credit Agreement | Greater than 2.25 to 1.00, but less than or equal to 3.00 to 1.00 | LIBOR Rate Loans | ||
Debt Instrument [Line Items] | ||
Margin on base rate | 2.00% | |
2016 Credit Agreement | Greater than 2.25 to 1.00, but less than or equal to 3.00 to 1.00 | Base Rate Loans | ||
Debt Instrument [Line Items] | ||
Margin on base rate | 1.00% | |
2016 Credit Agreement | Greater than 3.00 to 1.00 | ||
Debt Instrument [Line Items] | ||
Commitment Fee | 0.30% | |
2016 Credit Agreement | Greater than 3.00 to 1.00 | LIBOR Rate Loans | ||
Debt Instrument [Line Items] | ||
Margin on base rate | 2.25% | |
2016 Credit Agreement | Greater than 3.00 to 1.00 | Base Rate Loans | ||
Debt Instrument [Line Items] | ||
Margin on base rate | 1.25% | |
Credit Agreement | ||
Debt Instrument [Line Items] | ||
Secured leverage ratio | 3.25 | |
Credit Agreement | Less than or equal to 1.50 to 1.00 | ||
Debt Instrument [Line Items] | ||
Commitment Fee | 0.20% | |
Credit Agreement | Less than or equal to 1.50 to 1.00 | LIBOR Rate Loans | ||
Debt Instrument [Line Items] | ||
Margin on base rate | 1.25% | |
Credit Agreement | Less than or equal to 1.50 to 1.00 | Base Rate Loans | ||
Debt Instrument [Line Items] | ||
Margin on base rate | 0.25% | |
Credit Agreement | Greater than 1.50 to 1.00, but less than or equal to 2.25 to 1.00 | ||
Debt Instrument [Line Items] | ||
Commitment Fee | 0.225% | |
Credit Agreement | Greater than 1.50 to 1.00, but less than or equal to 2.25 to 1.00 | LIBOR Rate Loans | ||
Debt Instrument [Line Items] | ||
Margin on base rate | 1.50% | |
Credit Agreement | Greater than 1.50 to 1.00, but less than or equal to 2.25 to 1.00 | Base Rate Loans | ||
Debt Instrument [Line Items] | ||
Margin on base rate | 0.50% | |
Credit Agreement | Greater than 2.25 to 1.00, but less than or equal to 3.00 to 1.00 | ||
Debt Instrument [Line Items] | ||
Commitment Fee | 0.25% | |
Credit Agreement | Greater than 2.25 to 1.00, but less than or equal to 3.00 to 1.00 | LIBOR Rate Loans | ||
Debt Instrument [Line Items] | ||
Margin on base rate | 1.75% | |
Credit Agreement | Greater than 2.25 to 1.00, but less than or equal to 3.00 to 1.00 | Base Rate Loans | ||
Debt Instrument [Line Items] | ||
Margin on base rate | 0.75% | |
Credit Agreement | Greater than 3.00 to 1.00 | ||
Debt Instrument [Line Items] | ||
Commitment Fee | 0.30% | |
Credit Agreement | Greater than 3.00 to 1.00 | LIBOR Rate Loans | ||
Debt Instrument [Line Items] | ||
Margin on base rate | 2.00% | |
Credit Agreement | Greater than 3.00 to 1.00 | Base Rate Loans | ||
Debt Instrument [Line Items] | ||
Margin on base rate | 1.00% |
Debt and Capital Lease Obliga_6
Debt and Capital Lease Obligations - Schedule of Debt Maturities (Details) $ in Thousands | Oct. 31, 2018USD ($) |
Revolving Credit Facility | |
2019, Other Long Term Debt | $ 0 |
2020, Other Long Term Debt | 0 |
2021, Other Long Term Debt | 0 |
2022, Other Long Term Debt | 0 |
2023, Other Long Term Debt | 195,000 |
Thereafter, Other Long Term Debt | 0 |
Total, Other Long Term Debt | 195,000 |
Capital Leases and Other Obligations | |
2019, Capital Lease Obligations | 1,523 |
2020, Capital Lease Obligations | 1,076 |
2021, Capital Lease Obligations | 884 |
2022, Capital Lease Obligations | 876 |
2023, Capital Lease Obligations | 807 |
Thereafter, Capital Lease Obligation | 11,877 |
Total, Capital Lease Obligations | 17,043 |
2019, Aggregate Maturities | 1,523 |
2020, Aggregate Maturities | 1,076 |
2021, Aggregate Maturities | 884 |
2022, Aggregate Maturities | 876 |
2023, Aggregate Maturities | 195,807 |
Thereafter, Aggregate Maturities | 11,877 |
Debt and Capital Lease Obligations | $ 212,043 |
Retirement Plans (Detail)
Retirement Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Post Retirement Plan Adjustment | $ 300 | ||
Employer contribution percentage match of compensation | 4.00% | ||
Benefit pension plan credits - grandfathered employees up to | 6.50% | ||
Benefit pension plan - % of participants under cash balance formula | 99.00% | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation | $ 38,323 | $ 36,892 | |
Service cost | 3,908 | 3,794 | 3,712 |
Interest cost | 1,130 | 859 | 828 |
Actuarial gain | (4,296) | (318) | |
Benefits Paid | 2,551 | 2,263 | |
Administrative expenses | (555) | (641) | |
Projected benefit obligation | 35,959 | 38,323 | 36,892 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets | 32,064 | 34,340 | 29,210 |
Actual return on plan assets | 66 | 4,434 | |
Employer contributions | 764 | 3,600 | 3,700 |
Benefits paid | (2,551) | (2,263) | |
Administrative expenses | (555) | (641) | |
Non current liability - Funded Status | (3,895) | (3,983) | |
Accumulated other comprehensive income (loss), net gains (losses), before tax | 3,000 | 5,200 | |
Aggregate accumulated benefit obligation | 35,400 | 37,400 | |
Net periodic benefit cost: | |||
Service cost | 3,908 | 3,794 | 3,712 |
Interest cost | 1,130 | 859 | 828 |
Expected return on plan assets | (2,172) | (1,863) | (1,617) |
Amortization of net loss | 64 | 574 | 384 |
Net periodic benefit cost | 2,930 | 3,364 | 3,307 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax [Abstract] | |||
Net (gain) loss arising during the period | (2,189) | (2,888) | 3,556 |
Less: Amortization of net loss | 64 | 574 | 384 |
Total recognized in other comprehensive loss | $ (2,253) | $ (3,462) | $ 3,172 |
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Benefit Obligation, Discount rate | 4.44% | 3.68% | 3.41% |
Benefit Obligation, Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Net Periodic Benefit Cost, Discount rate | 4.44% | 3.66% | 3.92% |
Net Periodic Benefit Cost, Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Net Periodic Benefit Cost, Expected long-term return on assets | 6.50% | 6.50% | 6.50% |
Fair value of plan assets | $ 32,064 | $ 34,340 | $ 29,210 |
Contributions target funded status | 100.00% | ||
Employer contributions | $ 764 | 3,600 | 3,700 |
Estimated future employer contributions in next fiscal year | 800 | ||
Fiscal Year Maturity [Abstract] | |||
2,016 | 2,488 | ||
2,017 | 2,516 | ||
2,018 | 2,724 | ||
2,019 | 2,898 | ||
2,020 | 3,031 | ||
2021-2024 | 16,304 | ||
Total | $ 29,961 | ||
Employer matching contribution, percent of employees' gross pay | 50.00% | ||
Defined contribution employer match of employee amount | 5.00% | ||
Employer discretionary contribution amount | $ 2,600 | 2,400 | $ 2,200 |
Accrued liabilities | 49 | 49 | |
Deferred pension and postretirement benefits | 323 | 450 | |
Total | 372 | 499 | |
Supplemental benefit plan liability | 3,400 | ||
Deferred compensation liability | 3,500 | 4,000 | |
Money market fund | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets | 597 | 204 | |
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Fair value of plan assets | 597 | 204 | |
Equity securities | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets | $ 19,219 | $ 20,525 | |
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Target Allocation | 60.00% | ||
Actual Allocation | 61.00% | 60.00% | |
Fair value of plan assets | $ 19,219 | $ 20,525 | |
Large capitalization | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets | 8,362 | 10,972 | |
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Fair value of plan assets | 8,362 | 10,972 | |
Small capitalization | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets | 2,559 | 4,102 | |
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Fair value of plan assets | 2,559 | 4,102 | |
International equity | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets | 6,385 | 3,756 | |
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Fair value of plan assets | 6,385 | 3,756 | |
Other | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets | 1,913 | 1,695 | |
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Fair value of plan assets | 1,913 | 1,695 | |
Fixed income | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets | $ 12,248 | $ 13,611 | |
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Target Allocation | 40.00% | ||
Actual Allocation | 39.00% | 40.00% | |
Fair value of plan assets | $ 12,248 | $ 13,611 | |
High-quality core bond | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets | 9,736 | 6,801 | |
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Fair value of plan assets | 9,736 | 6,801 | |
High-quality government bond | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets | 1,251 | 3,407 | |
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Fair value of plan assets | 1,251 | 3,407 | |
High-yield bond | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets | 1,261 | 3,403 | |
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Fair value of plan assets | $ 1,261 | $ 3,403 | |
Woodcraft | |||
Fiscal Year Maturity [Abstract] | |||
Employer matching contribution, percent of employees' gross pay | 35.00% | ||
Defined contribution employer match of employee amount | 5.00% |
Warranty Obligations (Detail)
Warranty Obligations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
Movement in Product Warranty Accrual [Roll Forward] | ||
Beginning balance as of November 1, 2017, and 2016, respectively | $ 323 | $ 446 |
Provision for warranty expense | 4 | 41 |
Change in accrual for preexisting warranties | (16) | (121) |
Warranty costs paid | (16) | (43) |
Total accrued warranty | 295 | 323 |
Less: Current portion of accrued warranty | 148 | 168 |
Long-term portion at October 31, | $ 147 | $ 155 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Income Tax Examination [Line Items] | ||||
Tax Cuts and Jobs Act of 2017, Excess Tax Benefits | $ 200 | |||
Tax Cuts and Jobs Act of 2017, Transition Tax for Accumulated Foreign Earnings, Income Tax Expense (Benefit) | 1,200 | |||
Current | ||||
Federal | 983 | $ 1,991 | $ 1,309 | |
State and local | 417 | 873 | 154 | |
Non-United States | 3,356 | 4,067 | 3,241 | |
Total current | 4,756 | 6,931 | 4,704 | |
Deferred | ||||
Federal | (5,903) | 1,860 | (5,932) | |
State and local | 670 | (450) | (712) | |
Non-United States | (398) | (1,522) | (1,825) | |
Total deferred | (5,631) | (112) | (8,469) | |
Total income tax (benefit) expense | $ (875) | $ 6,819 | $ (3,765) | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Tax at statutory rate | 23.30% | 35.00% | 35.00% | |
State and local income tax | 3.40% | 1.70% | 7.40% | |
Non-United States income tax | (1.60%) | (9.10%) | 32.00% | |
Deferred rate impact | 0.00% | (4.10%) | 15.20% | |
General business credits | (0.40%) | (0.50%) | 6.40% | |
Employee related items | 0.00% | 0.00% | (17.00%) | |
Change in valuation allowance | (0.10%) | (0.60%) | (0.90%) | |
Effective Income Tax Rate Reconciliation,Other Reconciling Items, Percent | (0.30%) | 3.30% | (5.80%) | |
Effective Income Tax Rate Reconciliation, Impact of Tax Reform | (30.50%) | |||
Effective Income Tax Rate Reconciliation, Stock Based Compensation | (0.50%) | |||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 4.80% | |||
Return to actual adjustments | (1.50%) | 1.00% | (5.40%) | |
Effective tax rate | (3.40%) | 26.70% | 66.90% | |
Foreign Earnings Repatriated | $ 2,800 | |||
Deferred tax assets: | ||||
Employee benefit obligations | 9,910 | $ 12,731 | ||
Accrued liabilities and reserves | 1,609 | 2,409 | ||
Pension and other benefit obligations | 1,872 | 2,968 | ||
Inventory | 843 | 1,614 | ||
Loss and tax credit carry forwards | 3,716 | 8,098 | ||
Other | 119 | 194 | ||
Total gross deferred tax assets | 18,069 | 28,014 | ||
Less: Valuation allowance | 1,275 | 1,304 | ||
Total deferred tax assets, net of valuation allowance | 16,794 | 26,710 | ||
Deferred tax liabilities: | ||||
Property, plant and equipment | 10,577 | 16,128 | ||
Goodwill and intangibles | 23,432 | 32,542 | ||
Total deferred tax liabilities | 34,009 | 48,670 | ||
Net deferred tax assets | 17,215 | 21,960 | ||
Operating loss carryforwards | 41,800 | |||
Tax credit carryforward, amount | 4,100 | |||
Unrecognized Tax Benefits [Roll Forward] | ||||
Unrecognized Tax Benefits | 591 | 579 | $ 564 | |
Additions for tax positions related to the current year | 0 | 0 | 0 | |
Additions for tax positions related to the prior year | 15 | 12 | 15 | |
Unrecognized Tax Benefits | 606 | 591 | $ 579 | |
Liability for uncertain tax positions | 606 | 591 | ||
Additions for tax positions | 4,100 | |||
Increase (Decrease) in Deferred Income Taxes | 6,800 | |||
Recognition of unrecognized tax benefit | 10,100 | |||
Increase (Decrease) in Income Taxes | 800 | |||
Deferred income taxes | 17,215 | $ 21,960 | ||
Potential Tax liabilities on undistributed foreign earnings | 100 | |||
Tax Cuts and Jobs Act of 2017, Change in Tax Rate, Income Tax Expense (Benefit) | (7,700) | |||
Tax Cuts and Jobs Act of 2017, True Up Of Accrued Taxes | $ 200 | |||
Internal Revenue Service (IRS) | ||||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Tax at statutory rate | 23.30% | 35.00% | ||
State | ||||
Deferred tax liabilities: | ||||
Operating loss carryforwards, valuation allowance | $ 1,300 | |||
Federal | ||||
Deferred tax liabilities: | ||||
Operating loss carryforwards, valuation allowance | 600 | |||
Woodcraft | ||||
Unrecognized Tax Benefits [Roll Forward] | ||||
Deferred income taxes | 37,400 | |||
HLP Acquisition | ||||
Unrecognized Tax Benefits [Roll Forward] | ||||
Deferred income taxes | $ 13,200 | |||
HLP | Her Majesty's Revenue and Customs (HMRC) | ||||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Tax at statutory rate | 20.00% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Other Commitments [Line Items] | |||
Rent expense | $ 9,500 | $ 10,500 | $ 10,300 |
Amount purchased under purchase obligations | 5,200 | 4,500 | |
Purchased obligation amount due within the next fiscal year | 16,700 | 11,900 | |
Cumulative asset retirement obligation | 2,200 | ||
Warranty costs paid | (16) | (43) | |
Loss Contingency, Receivable, Proceeds | 500 | $ 4,000 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,016 | 8,407 | ||
2,017 | 6,776 | ||
2,018 | 5,376 | ||
2,019 | 4,528 | ||
2,020 | 4,290 | ||
Thereafter | 20,274 | ||
Total | $ 49,651 |
Derivative Instruments (Detail)
Derivative Instruments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency derivatives | $ (11) | $ (88) | $ 77 |
Other Non Operating Income (Loss) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency derivatives | (11) | (88) | $ 77 |
Buy EUR, Sell USD | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives, notional amount | 455 | 1,271 | |
Foreign currency derivatives, fair value | 1 | 24 | |
Sell CAD, Buy USD | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives, notional amount | 229 | 320 | |
Foreign currency derivatives, fair value | 0 | 1 | |
Sell GBP, Buy USD | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives, notional amount | 22 | 75 | |
Foreign currency derivatives, fair value | 0 | 0 | |
Buy EUR, Sell GBP | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives, notional amount | 34 | 30 | |
Foreign currency derivatives, fair value | 0 | (1) | |
Buy USD, Sell EUR | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives, notional amount | 12 | 0 | |
Foreign currency derivatives, fair value | 0 | 0 | |
Prepaid and other current assets: | |||
Derivatives [Line Items] | |||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | $ 100 | 100 | |
Accrued Liabilities [Member] | |||
Derivatives [Line Items] | |||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | $ 100 |
Fair Value Measurement of Ass_2
Fair Value Measurement of Assets and Liabilities (Details) - USD ($) $ in Millions | Oct. 31, 2018 | Oct. 31, 2017 |
Derivative Asset [Abstract] | ||
Property, plant and equipment at fair value (non-recurring) | $ 2.4 | $ 2.4 |
Fair Value, Inputs, Level 2 | ||
Derivative Asset [Abstract] | ||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | $ 0.1 | 0.1 |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | $ 0.1 |
Stock Based Compensation (Detai
Stock Based Compensation (Detail) - USD ($) | Dec. 07, 2017 | Nov. 30, 2016 | Jan. 25, 2016 | Dec. 02, 2015 | Dec. 03, 2014 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2015 |
Additional Disclosures [Line Items] | |||||||||
Treasury Stock, Shares, Acquired | 1,900,000 | ||||||||
Fair Value Assumptions [Abstract] | |||||||||
Weighted-average expected volatility | 34.70% | 37.10% | |||||||
Weighted-average expected term (in years) | 5 years 8 months 12 days | 5 years 4 months 24 days | |||||||
Risk-free interest rate | 2.00% | 1.70% | |||||||
Expected dividend yield over expected term | 1.00% | 1.00% | |||||||
Weighted average grant date fair value | $ 6.25 | $ 6.32 | |||||||
Stock Options, [Roll Forward] | |||||||||
Outstanding at beginning of period (in shares) | 2,152,758 | 2,386,220 | 2,352,188 | ||||||
Granted (in shares) | 0 | 292,600 | 297,900 | ||||||
Exercised (in shares) | (377,218) | (507,660) | (221,850) | ||||||
Forfeited/Expired (in shares) | (21,884) | (18,402) | (42,018) | ||||||
Outstanding at end of period (in shares) | 1,753,656 | 2,152,758 | 2,386,220 | 2,352,188 | |||||
Vested or expected to vest at end of period | 1,753,656 | ||||||||
Exercisable at end of period | 1,477,746 | ||||||||
Weighted Average Exercise Price Per Share | |||||||||
Outstanding at beginning of period (in dollars per share) | $ 17.44 | $ 16.84 | $ 16.46 | ||||||
Granted (in dollars per share) | 0 | 19.45 | 19.23 | ||||||
Exercised (in dollars per share) | 12.58 | 15.67 | 15.43 | ||||||
Forfeited/Expired (in dollars per share) | 19.28 | 19.90 | 19.78 | ||||||
Outstanding at end of period (in dollars per share) | 18.47 | $ 17.44 | $ 16.84 | $ 16.46 | |||||
Vested or expected to vest at end of period | 18.47 | ||||||||
Exercisable at end of period | $ 18.30 | ||||||||
Weighted Average Remaining Contractual Life | |||||||||
Outstanding at end of period | 5 years | 5 years 2 months 12 days | 5 years 1 month 6 days | 5 years 4 months 24 days | |||||
Vested or expected to vest at end of period | 5 years | ||||||||
Exercisable at end of period | 4 years 4 months 24 days | ||||||||
Aggregate Intrinsic Value | |||||||||
Outstanding at end of period | $ 51,000 | $ 9,700,000 | $ 2,384,000 | $ 6,672,000 | |||||
Vested or expected to vest at end of period | 51,000 | ||||||||
Exercisable at end of period | $ 51,000 | ||||||||
Additional Disclosures [Abstract] | |||||||||
Number of shares authorized, originally | 7,650,000 | ||||||||
Weighted-average period over which unrecognized cost is expected to be recognized | 3 years | ||||||||
Fair value assumptions, expected dividend payments | $ 0.16 | ||||||||
Total intrinsic value of options exercised | $ 2,900,000 | 3,100,000 | 1,000,000 | ||||||
Performance shares settled in cash | 50.00% | ||||||||
Performance shares settled in stock | 50.00% | ||||||||
Total compensation expense | $ 1,022,000 | 7,486,000 | 7,261,000 | ||||||
Income tax effect | (35,000) | 1,999,000 | 4,858,000 | ||||||
Net compensation expense | $ 1,057,000 | $ 5,487,000 | $ 2,403,000 | ||||||
EPS | $ 20.70 | $ 19.45 | $ 17.46 | $ 19.31 | |||||
R-TSR | $ 21.81 | $ 26.61 | $ 26.65 | $ 23.72 | |||||
2013 Performance share vested (in shares) | 123,600 | ||||||||
2013 Performance shares issued (in shares) | 25,340 | ||||||||
Performance Share Cash Payment | $ 600,000 | ||||||||
Earnings Per Share, Potentially Dilutive Securities | 25,338 | 67,550 | |||||||
Restricted stock | |||||||||
Number of Shares | |||||||||
Period start, non-vested (in shares) | 284,300 | 266,700 | 293,000 | ||||||
Granted (in shares) | 73,400 | 93,800 | 85,500 | ||||||
Vested (in shares) | (111,800) | (73,100) | (102,000) | ||||||
Forfeited (in shares) | (28,700) | (3,100) | (9,800) | ||||||
Period end, non-vested (in shares) | 217,200 | 284,300 | 266,700 | 293,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||||
Period start, non-vested (in dollars per share) | $ 19.66 | $ 19.19 | $ 18.71 | ||||||
Grant Date Fair Value (in dollars per share) | 20.70 | 19.46 | 19.21 | ||||||
Vested in Period, Weighted Average Grant Date Fair Value (in dollars per share) | 20.16 | 17.67 | 17.84 | ||||||
Forfeitures, Weighted Average Grant Date Fair Value (in dollars per share) | 19.66 | 19.65 | 18.97 | ||||||
Period end, non-vested (in dollars per shares) | $ 19.76 | $ 19.66 | $ 19.19 | $ 18.71 | |||||
Additional Disclosures [Abstract] | |||||||||
Vesting period | 3 years | ||||||||
Fair value of restricted stock awards vested | $ 2,300,000 | $ 1,300,000 | $ 1,800,000 | ||||||
Unrecognized compensation cost - non vested restricted stock awards | $ 1,600,000 | ||||||||
Weighted-average period over which unrecognized cost is expected to be recognized | 1 year 8 months 12 days | ||||||||
Total compensation expense | $ 1,462,000 | 1,810,000 | 1,911,000 | ||||||
Stock options | |||||||||
Additional Disclosures [Abstract] | |||||||||
Vesting period | 3 years | ||||||||
Weighted-average period over which unrecognized cost is expected to be recognized | 1 year | ||||||||
Expiration period | 10 years | ||||||||
Fair value of stock options vested | $ 1,500,000 | 1,800,000 | 1,900,000 | ||||||
Unrecognized compensation cost - non vested stock options | 200,000 | ||||||||
Total compensation expense | $ 467,000 | $ 1,820,000 | $ 2,486,000 | ||||||
Restricted Stock Units (RSUs) | |||||||||
Number of Shares | |||||||||
Vested (in shares) | (18,050) | (24,560) | (20,445) | ||||||
Period end, non-vested (in shares) | 0 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||||
Vested in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 21.85 | $ 15.65 | $ 19.56 | ||||||
Additional Disclosures [Abstract] | |||||||||
Vesting period | 3 years | ||||||||
Total compensation expense | $ (364,000) | $ 855,000 | $ 161,000 | ||||||
Performance Shares | |||||||||
Stock Options, [Roll Forward] | |||||||||
Vested or expected to vest at end of period | 0 | ||||||||
Additional Disclosures [Abstract] | |||||||||
Vesting period | 3 years | ||||||||
Total compensation expense | $ (944,000) | 3,001,000 | 2,703,000 | ||||||
Dilutive Securities, Effect on Basic Earnings Per Share | 67,550 | ||||||||
Performance shares granted | 146,500 | 186,500 | 4,300 | 158,100 | |||||
Performance shares forfeited | 12,848 | 17,940 | 0 | 18,936 | |||||
Performance Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||||
Grant Date Fair Value (in dollars per share) | $ 17.76 | ||||||||
Additional Disclosures [Abstract] | |||||||||
Total compensation expense | $ 401,000 | $ 0 | $ 0 | ||||||
Performance shares granted | 78,200 | ||||||||
Performance shares forfeited | 6,889 | ||||||||
Minimum | |||||||||
Additional Disclosures [Abstract] | |||||||||
Performance shares vesting percentage | 0.00% | ||||||||
Minimum | Performance Restricted Stock Units | |||||||||
Additional Disclosures [Abstract] | |||||||||
Performance shares vesting percentage | 0.00% | ||||||||
Maximum | |||||||||
Additional Disclosures [Abstract] | |||||||||
Performance shares vesting percentage | 200.00% | ||||||||
Maximum | Performance Restricted Stock Units | |||||||||
Additional Disclosures [Abstract] | |||||||||
Performance shares vesting percentage | 150.00% | ||||||||
Share-based Compensation Award, Tranche One [Member] | Share-Based Compensation Award, Performance Criteria, Absolute Total Shareholder Return Milestones, Greater Than Or Equal To 50 Percent [Member] | Performance Restricted Stock Units | |||||||||
Additional Disclosures [Abstract] | |||||||||
Performance shares vesting percentage | 150.00% | ||||||||
Share-based Compensation Award, Tranche Two [Member] | Share-Based Compensation Award, Performance Criteria, Absolute Total Shareholder Return Milestones, Less Than 50 Percent And Greater Than Or Equal To 20 Percent [Member] | Performance Restricted Stock Units | |||||||||
Additional Disclosures [Abstract] | |||||||||
Performance shares vesting percentage | 100.00% | ||||||||
Share-based Compensation Award, Tranche Three [Member] | Share-Based Compensation Award, Performance Criteria, Absolute Total Shareholder Return Milestones, Less Than 20 Percent And Greater Than Or Equal To Negative 20 Percent [Member] | Performance Restricted Stock Units | |||||||||
Additional Disclosures [Abstract] | |||||||||
Performance shares vesting percentage | 50.00% | ||||||||
Share-Based Compensation Award, Tranche Four [Member] | Share-Based Compensation Award, Performance Criteria, Absolute Total Shareholder Return Milestones, Less Than Negative 20 Percent [Member] | Performance Restricted Stock Units | |||||||||
Additional Disclosures [Abstract] | |||||||||
Performance shares vesting percentage | 0.00% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares [Roll Forward] | |||
Treasury stock, shares | 2,670,743 | ||
Shares, Issued (in shares) | (377,218) | (507,660) | (221,850) |
Treasury Stock, shares acquired | 1,900,000 | ||
Treasury stock, shares | 4,094,785 | 2,670,743 | |
Common stock, shares authorized | 125,000,000 | 125,000,000 | |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | |
Common stock, shares issued | 37,433,817 | 37,508,877 | |
Common Stock, shares outstanding | 33,339,032 | 34,838,134 | |
Stock Repurchased During Period, Value | $ (32,034) | ||
Deficiency of stock option proceeds recorded to retained earnings | $ (2,141) | $ 1,500 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares [Roll Forward] | |||
Granted (in shares) | (73,400) | (93,800) | (85,500) |
Other Income (Expense) (Detail)
Other Income (Expense) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Other Income and Expenses [Abstract] | |||
Foreign currency transaction gains (losses) | $ 113 | $ 713 | $ (5,457) |
Foreign currency exchange derivative (losses) gains | (11) | (88) | 77 |
Interest income | 69 | 86 | 106 |
Other | 7 | 19 | (205) |
Other income (expense) | $ 178 | $ 730 | $ (5,479) |
Segment Information (Detail)
Segment Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2018USD ($) | Jul. 31, 2018USD ($) | Apr. 30, 2018USD ($) | Jan. 31, 2018USD ($) | Oct. 31, 2017USD ($) | Jul. 31, 2017USD ($) | Apr. 30, 2017USD ($) | Jan. 31, 2017USD ($) | Oct. 31, 2018USD ($)segment | Oct. 31, 2017USD ($) | Oct. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Income tax benefit (expense) | $ 875 | $ (6,819) | $ 3,765 | ||||||||
General and Administrative Expense | $ 18,700 | 17,000 | 19,100 | ||||||||
Number of segments | segment | 3 | ||||||||||
Net sales | $ 889,785 | 866,555 | 928,184 | ||||||||
Depreciation and amortization | 51,822 | 57,495 | 53,146 | ||||||||
Operating income (loss) | $ 11,641 | $ 17,087 | $ 8,136 | $ (489) | $ 16,231 | $ 17,352 | $ 4,625 | $ (3,841) | 36,375 | 34,367 | 36,353 |
Interest Expense | 11,100 | 9,595 | 36,498 | ||||||||
Other, net | 178 | 730 | (5,479) | ||||||||
Capital expenditures | 26,484 | 34,564 | 37,243 | ||||||||
Long-lived assets, net | 542,916 | 573,103 | 542,916 | 573,103 | |||||||
Goodwill | 219,627 | 222,194 | 219,627 | 222,194 | 217,035 | ||||||
Assets | 741,849 | 773,879 | 741,849 | 773,879 | |||||||
Net sales | 244,086 | $ 239,821 | $ 214,212 | $ 191,666 | 232,959 | $ 229,367 | $ 209,133 | $ 195,096 | 889,785 | 866,555 | 928,184 |
Goodwill, Translation Adjustments | (2,567) | 5,159 | |||||||||
Income (loss) from continuing operations | 26,328 | 18,683 | (1,859) | ||||||||
EU Engineered Components | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Goodwill, Translation Adjustments | (2,567) | ||||||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 676,776 | 667,063 | 724,045 | ||||||||
Long-lived assets, net | 384,595 | 404,732 | 384,595 | 404,732 | |||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 159,652 | 148,370 | 150,710 | ||||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 23,610 | 24,442 | 24,141 | ||||||||
Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 18,584 | 17,028 | 20,404 | ||||||||
Other foreign countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 11,163 | 9,652 | 8,884 | ||||||||
Germany | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Long-lived assets, net | 16,507 | 20,052 | 16,507 | 20,052 | |||||||
UNITED KINGDOM | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Long-lived assets, net | 141,814 | 148,319 | $ 141,814 | 148,319 | |||||||
Operating Segments | NA Engineered Components | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number of segments | segment | 4 | ||||||||||
Net sales | $ 485,366 | 474,878 | 538,249 | ||||||||
Depreciation and amortization | 27,248 | 34,308 | 29,793 | ||||||||
Operating income (loss) | 31,484 | 26,311 | 34,229 | ||||||||
Capital expenditures | 13,929 | 18,822 | 22,114 | ||||||||
Goodwill | 38,712 | 38,712 | 38,712 | 38,712 | 38,712 | ||||||
Assets | 239,915 | 258,315 | 239,915 | 258,315 | |||||||
Net sales | 485,366 | 474,878 | 538,249 | ||||||||
Goodwill, Translation Adjustments | 0 | 0 | |||||||||
Operating Segments | EU Engineered Components | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 159,973 | 147,963 | 150,203 | ||||||||
Depreciation and amortization | 9,607 | 8,833 | 9,339 | ||||||||
Operating income (loss) | 12,702 | 13,673 | 13,225 | ||||||||
Capital expenditures | 5,450 | 7,841 | 6,141 | ||||||||
Goodwill | 67,168 | 69,735 | 67,168 | 69,735 | 64,576 | ||||||
Assets | 214,704 | 219,622 | 214,704 | 219,622 | |||||||
Net sales | 159,973 | 147,963 | 150,203 | ||||||||
Goodwill, Translation Adjustments | 5,159 | ||||||||||
Operating Segments | NA Cabinet Components | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 249,813 | 248,808 | 248,119 | ||||||||
Depreciation and amortization | 14,401 | 13,811 | 13,453 | ||||||||
Operating income (loss) | 3,248 | 4,128 | 5,475 | ||||||||
Capital expenditures | 6,965 | 7,349 | 8,709 | ||||||||
Goodwill | 113,747 | 113,747 | 113,747 | 113,747 | 113,747 | ||||||
Assets | 272,313 | 285,457 | 272,313 | 285,457 | |||||||
Net sales | 249,813 | 248,808 | 248,119 | ||||||||
Goodwill, Translation Adjustments | 0 | 0 | |||||||||
Operating Segments | Non-fenestration | United States | NA Engineered Components | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 18,211 | 25,263 | 36,986 | ||||||||
Operating Segments | Non-fenestration | United States | NA Cabinet Components | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 232,990 | 229,550 | 223,664 | ||||||||
Operating Segments | Non-fenestration | International | NA Engineered Components | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 15,846 | 15,642 | 18,253 | ||||||||
Operating Segments | Non-fenestration | International | EU Engineered Components | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 24,558 | 18,520 | 15,160 | ||||||||
Operating Segments | Non-fenestration | International | NA Cabinet Components | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,227 | 2,175 | 2,676 | ||||||||
Operating Segments | Fenestration | United States | NA Engineered Components | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 412,000 | 399,694 | 444,571 | ||||||||
Operating Segments | Fenestration | United States | EU Engineered Components | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 0 | 303 | 412 | ||||||||
Operating Segments | Fenestration | United States | NA Cabinet Components | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 14,596 | 17,083 | 21,779 | ||||||||
Operating Segments | Fenestration | International | NA Engineered Components | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 39,309 | 34,279 | 38,439 | ||||||||
Operating Segments | Fenestration | International | EU Engineered Components | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 135,415 | 129,140 | 134,631 | ||||||||
Intersegment Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | (5,367) | (5,094) | (8,387) | ||||||||
Corporate, Non-segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | (5,367) | (5,094) | (8,387) | ||||||||
Depreciation and amortization | 566 | 543 | 561 | ||||||||
Operating income (loss) | (11,059) | (9,745) | (16,576) | ||||||||
Capital expenditures | 140 | 552 | 279 | ||||||||
Goodwill | 0 | 0 | 0 | 0 | 0 | ||||||
Assets | $ 14,917 | $ 10,485 | 14,917 | 10,485 | |||||||
Net sales | (5,367) | (5,094) | (8,387) | ||||||||
Goodwill, Translation Adjustments | $ 0 | $ 0 | |||||||||
Continuing Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Capital expenditures | $ 37,243 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Earnings Per Share Disclosure [Line Items] | |||
Income (loss) from continuing operations | $ 26,328,000 | $ 18,683,000 | $ (1,859,000) |
Weighted average number of shares outstanding, basic | 34,701,000 | 34,230,000 | 33,876,000 |
Weighted average number of shares outstanding, diluted | 35,025,000 | 34,837,000 | 33,876,000 |
Basic earnings (loss) per share (usd per share) | $ (0.76) | $ (0.55) | $ 0.05 |
Earnings (loss) from continuing operations | $ 0.75 | $ 0.54 | |
Antidilutive securities | 1,000,356 | 686,650 | 807,372 |
Stock options | |||
Earnings Per Share Disclosure [Line Items] | |||
Weighted Average Dilutive Securities | 198,000 | 446,000 | 378,542 |
Restricted stock | |||
Earnings Per Share Disclosure [Line Items] | |||
Weighted Average Dilutive Securities | 126,000 | 138,000 | 152,227 |
Performance Shares | |||
Earnings Per Share Disclosure [Line Items] | |||
Weighted Average Dilutive Securities | 0 | 23,000 | |
Performance Shares | |||
Earnings Per Share Disclosure [Line Items] | |||
Dilutive Securities | $ 67,550 |
Unaudited Quarterly Data (Detai
Unaudited Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 244,086 | $ 239,821 | $ 214,212 | $ 191,666 | $ 232,959 | $ 229,367 | $ 209,133 | $ 195,096 | $ 889,785 | $ 866,555 | $ 928,184 |
Cost of sales (excluding depreciation and amortization) | 187,776 | 185,610 | 168,741 | 154,440 | 178,325 | 176,758 | 162,132 | 154,947 | 696,567 | 672,162 | 710,644 |
Depreciation and amortization | 12,548 | 12,691 | 13,310 | 13,273 | 13,794 | 13,915 | 14,380 | 15,406 | |||
Operating (loss) income | 11,641 | 17,087 | 8,136 | (489) | 16,231 | 17,352 | 4,625 | (3,841) | 36,375 | 34,367 | 36,353 |
Net income | $ 6,492 | $ 10,753 | $ 4,136 | $ 4,947 | $ 10,732 | $ 10,215 | $ 1,462 | $ (3,726) | $ 26,328 | $ 18,683 | $ (1,859) |
Basic earnings (loss) per share (usd per share) | $ 0.76 | $ 0.55 | $ (0.05) | ||||||||
Earnings (loss) from continuing operations | 0.75 | 0.54 | |||||||||
Basic earnings (loss) per share (usd per share) | $ 0.19 | $ 0.31 | $ 0.12 | $ 0.14 | $ 0.31 | $ 0.30 | $ 0.04 | $ (0.11) | 0.76 | 0.55 | (0.05) |
Diluted earnings (loss) per share (usd per share) | 0.19 | 0.31 | 0.12 | 0.14 | 0.31 | 0.29 | 0.04 | (0.11) | 0.75 | 0.54 | (0.05) |
Cash dividends paid per common share (usd per share) | $ 0.08 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.20 | $ 0.16 | $ 0.16 |
New Accounting Guidance Adopt_2
New Accounting Guidance Adopted (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2018 | |
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Excess Tax Benefits Impact to Cash Flow | $ 200 | $ 100 | |
Deferred income taxes | 21,960 | $ 17,215 | |
Other assets | 8,975 | 9,255 | |
Long-term debt | 218,184 | $ 209,332 | |
Impact to Financing Activities on Cash Flow | $ 1,000 | $ 800 |