Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jul. 31, 2019 | Sep. 03, 2019 | |
Class of Stock [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-33913 | |
Entity Registrant Name | QUANEX BUILDING PRODUCTS CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-1561397 | |
Entity Address, Address Line One | 1800 West Loop South | |
Entity Address, Address Line Two | Suite 1500 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77027 | |
City Area Code | 713 | |
Local Phone Number | 961-4600 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | NX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Central Index Key | 0001423221 | |
Current Fiscal Year End Date | --10-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 33,162,058 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jul. 31, 2019 | Oct. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 10,651 | $ 29,003 |
Accounts receivable, net of allowance for doubtful accounts of $502 and $325 | 82,302 | 84,014 |
Inventories, net | 84,762 | 70,730 |
Prepaid and other current assets | 8,270 | 7,296 |
Total current assets | 185,985 | 191,043 |
Property, plant and equipment, net of accumulated depreciation of $310,983 and $288,607 | 190,447 | 201,370 |
Goodwill | 186,829 | 219,627 |
Intangible assets, net | 108,620 | 121,919 |
Other assets | 8,183 | 9,255 |
Total assets | 680,064 | 743,214 |
Current liabilities: | ||
Accounts payable | 52,602 | 52,389 |
Accrued liabilities | 30,056 | 45,968 |
Income taxes payable | 3,101 | 2,780 |
Current maturities of long-term debt | 871 | 1,224 |
Total current liabilities | 86,630 | 102,361 |
Long-term debt | 191,109 | 209,332 |
Deferred pension and postretirement benefits | 6,580 | 4,218 |
Deferred income taxes | 19,051 | 17,510 |
Other liabilities | 15,344 | 14,571 |
Total liabilities | 318,714 | 347,992 |
Commitments and contingencies | ||
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 37,370,402 and 37,433,817, respectively; outstanding 33,162,058 and 33,339,032, respectively | 374 | 374 |
Additional paid-in-capital | 254,053 | 254,678 |
Retained earnings | 219,340 | 243,904 |
Accumulated other comprehensive loss | (38,274) | (30,705) |
Less: Treasury stock at cost, 4,208,344 and 4,094,785 shares, respectively | (74,143) | (73,029) |
Total stockholders’ equity | 361,350 | 395,222 |
Total liabilities and stockholders' equity | $ 680,064 | $ 743,214 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jul. 31, 2019 | Oct. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 502 | $ 325 |
Accumulated depreciation of property, plant and equipment | $ 310,983 | $ 288,607 |
Preferred stock, no par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 37,370,402 | 37,433,817 |
Common stock, shares outstanding | 33,162,058 | 33,339,032 |
Treasury stock, shares | 4,208,344 | 4,094,785 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 238,461 | $ 239,821 | $ 653,472 | $ 645,699 |
Cost and expenses: | ||||
Cost of sales (excluding depreciation and amortization) | 181,357 | 185,811 | 511,292 | 509,357 |
Selling, general and administrative | 25,718 | 24,246 | 77,466 | 72,217 |
Restructuring charges | 94 | 243 | 281 | 851 |
Depreciation and amortization | 12,182 | 12,691 | 37,158 | 39,274 |
Asset impairment charges | 0 | 0 | 29,978 | 0 |
Operating income (loss) | 19,110 | 16,830 | (2,703) | 24,000 |
Non-operating (expense) income: | ||||
Interest expense | (2,570) | (2,641) | (7,614) | (7,584) |
Other, net | 259 | 195 | 461 | 884 |
Income (loss) before income taxes | 16,799 | 14,384 | (9,856) | 17,300 |
Income tax (expense) benefit | (4,958) | (3,631) | (5,926) | 2,536 |
Net Income (Loss) | $ 11,841 | $ 10,753 | $ (15,782) | $ 19,836 |
Basic income (loss) per common share | $ 0.36 | $ 0.31 | $ (0.48) | $ 0.57 |
Diluted income (loss) per common share | $ 0.36 | $ 0.31 | $ (0.48) | $ 0.56 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 32,899 | 34,840 | 32,984 | 34,766 |
Diluted (in shares) | 33,162 | 35,120 | 32,984 | 35,125 |
Cash dividends per share (in usd per share) | $ 0.08 | $ 0.04 | $ 0.24 | $ 0.12 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 11,841 | $ 10,753 | $ (15,782) | $ 19,836 |
Other comprehensive income: | ||||
Foreign currency translation loss | (10,147) | (7,650) | (7,565) | (1,828) |
Change in pension from net unamortized loss adjustment (pretax) | 0 | 0 | (11) | 0 |
Change in pension from net unamortized gain tax (expense) | 0 | 0 | 7 | (697) |
Other comprehensive loss | (10,147) | (7,650) | (7,569) | (2,525) |
Comprehensive income (loss) | $ 1,694 | $ 3,103 | $ (23,351) | $ 17,311 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flow (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Operating activities: | ||
Net income (loss) | $ (15,782) | $ 19,836 |
Adjustments to reconcile net (loss) income to cash provided by operating activities: | ||
Depreciation and amortization | 37,158 | 39,274 |
Stock-based compensation | 1,424 | 1,002 |
Deferred income tax | 1,930 | (5,788) |
Asset impairment charges | 29,978 | 0 |
Other, net | 1,724 | 404 |
Changes in assets and liabilities: | ||
Decrease (increase) in accounts receivable | 323 | (1,247) |
(Increase) decrease in inventory | (14,747) | 310 |
Increase in other current assets | (1,022) | (1,242) |
Increase in accounts payable | 1,562 | 1,161 |
Decrease in accrued liabilities | (15,366) | (7,565) |
Increase in income taxes payable | 396 | 231 |
Increase in deferred pension and postretirement benefits | 2,351 | 2,179 |
(Decrease) increase in other long-term liabilities | (143) | 210 |
Other, net | 250 | (312) |
Cash provided by operating activities | 30,036 | 48,453 |
Investing activities: | ||
Capital expenditures | (16,984) | (21,098) |
Proceeds from disposition of capital assets | 315 | 260 |
Cash used for investing activities | (16,669) | (20,838) |
Financing activities: | ||
Borrowings under credit facility | 66,500 | 33,500 |
Repayments of credit facility borrowings | (84,000) | (62,750) |
Repayments of other long-term debt | (1,102) | (1,394) |
Common stock dividends paid | (7,990) | (4,202) |
Issuance of common stock | 2,710 | 3,767 |
Cash paid for payroll tax for shares forfeited upon vesting | 330 | 960 |
Purchase of treasury stock | (6,336) | 0 |
Cash used for financing activities | (30,548) | (32,039) |
Effect of exchange rate changes on cash and cash equivalents | (1,171) | (631) |
Decrease in cash and cash equivalents | (18,352) | (5,055) |
Cash and cash equivalents at beginning of period | 29,003 | $ 17,455 |
Cash and cash equivalents at end of period | $ 10,651 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Balance at beginning of period at Oct. 31, 2017 | $ 406,847 | $ 375 | $ 255,719 | $ 225,704 | $ (25,076) | $ (49,875) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | 4,947 | 4,947 | ||||
Foreign currency translation adjustment | 11,150 | 11,150 | ||||
Common dividends ($0.08 per share) | (1,397) | (1,397) | ||||
Stock-based compensation activity: | ||||||
Expense related to stock-based compensation | 580 | 580 | 0 | |||
Stock Issued During Period, Value, Stock Options Exercised | 2,231 | (149) | (924) | 3,304 | ||
Restricted stock awards granted | 0 | (1,371) | 0 | 1,371 | ||
Other | (704) | (668) | (37) | 1 | ||
Balance at end of period at Jan. 31, 2018 | 422,957 | 375 | 253,638 | 228,293 | (14,623) | (44,726) |
Stock-based compensation activity: | ||||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax | (697) | (697) | ||||
Stock Issued During Period, Treasury Shares, Performance Shares Vested | (473) | 473 | ||||
Balance at beginning of period at Oct. 31, 2017 | 406,847 | 375 | 255,719 | 225,704 | (25,076) | (49,875) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | 19,836 | |||||
Balance at end of period at Jul. 31, 2018 | 423,763 | 374 | 253,806 | 240,025 | (27,601) | (42,841) |
Balance at beginning of period at Jan. 31, 2018 | 422,957 | 375 | 253,638 | 228,293 | (14,623) | (44,726) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | 4,136 | 4,136 | ||||
Foreign currency translation adjustment | (5,328) | (5,328) | ||||
Common dividends ($0.08 per share) | (1,403) | (1,403) | ||||
Stock-based compensation activity: | ||||||
Expense related to stock-based compensation | (369) | (369) | 0 | |||
Stock Issued During Period, Value, Stock Options Exercised | 333 | (81) | 414 | |||
Balance at end of period at Apr. 30, 2018 | 420,326 | 375 | 253,269 | 230,945 | (19,951) | (44,312) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | 10,753 | 10,753 | ||||
Foreign currency translation adjustment | (7,650) | (7,650) | ||||
Common dividends ($0.08 per share) | (1,402) | (1,402) | ||||
Stock-based compensation activity: | ||||||
Expense related to stock-based compensation | 791 | 791 | 0 | |||
Stock Issued During Period, Value, Stock Options Exercised | 1,203 | 0 | (269) | 1,472 | ||
Other | (258) | (1) | (254) | (2) | (1) | |
Balance at end of period at Jul. 31, 2018 | 423,763 | 374 | 253,806 | 240,025 | (27,601) | (42,841) |
Balance at beginning of period at Oct. 31, 2018 | 395,222 | 374 | 254,678 | 243,904 | (30,705) | (73,029) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (3,649) | (3,649) | ||||
Foreign currency translation adjustment | 4,066 | 4,066 | ||||
Common dividends ($0.08 per share) | (2,675) | (2,675) | ||||
Treasury Stock, Value, Acquired, Cost Method | (2,016) | (2,016) | ||||
Stock-based compensation activity: | ||||||
Expense related to stock-based compensation | 224 | 224 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 27 | 0 | (35) | 62 | ||
Restricted stock awards granted | 0 | (1,649) | (496) | 2,145 | ||
Other | (326) | (322) | (4) | |||
Balance at end of period at Jan. 31, 2019 | 390,873 | 374 | 252,931 | 237,049 | (26,643) | (72,838) |
Balance at beginning of period at Oct. 31, 2018 | 395,222 | 374 | 254,678 | 243,904 | (30,705) | (73,029) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (15,782) | |||||
Stock-based compensation activity: | ||||||
Other | (8) | (1) | (7) | 0 | 0 | 0 |
Balance at end of period at Jul. 31, 2019 | 361,350 | 374 | 254,053 | 219,340 | (38,274) | (74,143) |
Balance at beginning of period at Jan. 31, 2019 | 390,873 | 374 | 252,931 | 237,049 | (26,643) | (72,838) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (23,974) | (23,974) | ||||
Foreign currency translation adjustment | (1,484) | (1,484) | ||||
Common dividends ($0.08 per share) | (2,660) | (2,660) | ||||
Treasury Stock, Value, Acquired, Cost Method | (2,686) | (2,686) | ||||
Stock-based compensation activity: | ||||||
Expense related to stock-based compensation | 819 | 819 | ||||
Restricted stock awards granted | 0 | (71) | (9) | 80 | ||
Balance at end of period at Apr. 30, 2019 | 360,888 | 374 | 253,679 | 210,406 | (28,127) | (75,444) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | 11,841 | 11,841 | ||||
Foreign currency translation adjustment | (10,147) | (10,147) | ||||
Common dividends ($0.08 per share) | (2,655) | (2,655) | ||||
Treasury Stock, Value, Acquired, Cost Method | (1,634) | (1,634) | ||||
Stock-based compensation activity: | ||||||
Expense related to stock-based compensation | 381 | 381 | 0 | |||
Stock Issued During Period, Value, Stock Options Exercised | 2,684 | 0 | (252) | 2,935 | ||
Balance at end of period at Jul. 31, 2019 | $ 361,350 | $ 374 | $ 254,053 | $ 219,340 | $ (38,274) | $ (74,143) |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock, dividends per share (in usd per share) | $ 0.08 | $ 0.04 | $ 0.24 | $ 0.12 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Jul. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation Quanex Building Products Corporation 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, see Note 13, "Segment Information." We use low-cost, short lead-time 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 (U.K.), and also serve customers in international markets through our operating plants in the U.K. and Germany, as well as through sales and marketing efforts in other countries. Unless the context indicates otherwise, references to "Quanex", the "Company", "we", "us" and "our" refer to the consolidated business operations of Quanex Building Products Corporation and its subsidiaries. The accompanying interim condensed consolidated financial statements include the accounts of Quanex Building Products Corporation. All intercompany accounts and transactions have been eliminated in consolidation. These financial statements have been prepared by us, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of October 31, 2018 was derived from audited financial information, but does not include all disclosures required by U.S. GAAP. The accompanying financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto, included in our Annual Report on Form 10-K for the fiscal year ended October 31, 2018 . In our opinion, the accompanying financial statements contain all adjustments (which consist of normal recurring adjustments, except as disclosed herein) necessary to fairly present our financial position, results of operations and cash flows for the interim periods. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year or for any future periods. In preparing financial statements, we make informed judgments and estimates that affect the reported amounts of assets and liabilities as of the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. We review our estimates on an on-going basis, including those related to impairment of long lived assets and goodwill, contingencies and income taxes. Changes in facts and circumstances may result in revised estimates and actual results may differ from these estimates. Revenue from Contracts with Customers On November 1, 2018, we adopted Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (ASC Topic 606) using the modified retrospective method and applying ASC Topic 606 to all revenue contracts with customers. Results for reporting periods beginning on or after November 1, 2018 are presented under ASC Topic 606. In accordance with the modified retrospective approach, prior period amounts were not adjusted and are reported under ASC Topic 605, “Revenue Recognition.” As a result of adoption, there was not a material impact on our consolidated financial statements. We expect the impact of the adoption of ASC Topic 606 to continue to be immaterial to our net income on an ongoing basis. Revenue recognition The core principle of ASC Topic 606 is to recognize revenue that reflects the consideration we expect to receive for product sales when the promised items are transferred to customers. Revenue for product sales is recognized when control of the promised products is transferred to our customers, and we expect to be entitled to consideration in exchange for transferring those products. We account for a contract when a customer provides us with a firm purchase order that identifies the products to be provided, the payment terms for those services, and when collectability of the consideration due is probable. Performance obligations A performance obligation is a promise to provide the customer with a good or service. Our performance obligations include product sales, with each product included in a customer contract being recognized as a separate performance obligation. For contracts with multiple performance obligations, the standalone selling price of each product is generally readily observable. Revenue from product sales is recognized at a point in time when the product is transferred to the customer, in accordance with the shipping terms, which is generally upon shipment. We estimate a provision for sales returns and warranty allowances to account for product returns related to general returns and product nonconformance. Pricing and sales incentives Pricing is established at or prior to the time of sale with our customers and we record sales at the agreed-upon net selling price, reflective of current and prospective discounts. Practical expedients and exemptions We generally expense incremental costs of obtaining a contract when incurred because the amortization period would be less than one year. Additionally, we do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Shipping and handling costs We have elected to account for shipping and handling services as fulfillment services in accordance ASC Topic 606 guidance; accordingly, freight revenue will be combined with the product deliverable rather than being accounted for as a distinct performance obligation within the terms of the agreement. Shipping and handling costs incurred by us for the delivery of goods to customers are considered a cost to fulfill the contract and are included in Cost of sales in the accompanying Condensed Consolidated Statements of Income. Contract assets and liabilities Deferred revenue, which is not significant, is recorded when we have remaining unsatisfied performance obligations for which we have received consideration. As of July 31, 2019 , accounts receivables were $82.3 million . Disaggregation of revenue We produce a wide variety of products that are used in the fenestration industry, including window spacer systems; extruded vinyl products; metal fabricated products; 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 three and nine months ended July 31, 2019 and July 31, 2018 into groupings by segment which we believe depicts how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors. For further details regarding our results by segment, refer to Note 13, “Segment Information”. Three months ended Nine Months Ended July 31, July 31, 2019 2018 2019 2018 (In thousands) North American Fenestration: United States - fenestration $ 119,481 $ 112,914 $ 312,509 $ 297,700 International - fenestration 7,172 11,851 23,474 27,758 United States - non-fenestration 3,982 4,675 12,290 13,518 International - non-fenestration 5,624 3,957 12,381 11,304 $ 136,259 $ 133,397 $ 360,654 $ 350,280 European Fenestration: International - fenestration $ 36,342 $ 34,881 $ 102,038 $ 97,597 International - non-fenestration 7,984 7,780 19,165 17,884 $ 44,326 $ 42,661 $ 121,203 $ 115,481 North American Cabinet Components: United States - fenestration $ 3,561 $ 3,650 $ 9,909 $ 10,500 United States - non-fenestration 54,512 60,843 163,694 171,547 International - non-fenestration 616 621 1,774 1,658 $ 58,689 $ 65,114 $ 175,377 $ 183,705 Unallocated Corporate & Other Eliminations $ (813 ) $ (1,351 ) $ (3,762 ) $ (3,767 ) $ (813 ) $ (1,351 ) $ (3,762 ) $ (3,767 ) Net sales $ 238,461 $ 239,821 $ 653,472 $ 645,699 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 rental in the current period. For other costs directly related to the restructuring effort, such as equipment moving costs, we expense in the period incurred. We closed a kitchen and bathroom cabinet door business in Mexico in October 2016 and another plant in Lansing, Kansas in September 2017. We closed two U.S. vinyl operations plants in November 2016 and January 2017. Pursuant to these restructuring efforts, we expensed $0.1 million and $0.3 million during the three and nine months ended July 31, 2019 , respectively, and $0.2 million and $0.9 million , respectively, for the comparable prior year periods. We have not negotiated an exit from our lease obligation, which is deemed to be at fair market value, at one remaining closed plant location. We expect to continue to incur costs related to this operating lease during fiscal 2019 until we are able to sublet or otherwise exit the lease. Accounting Change - Inventories We record inventory at the lower of cost or market value. Inventories are valued using the first-in first-out (FIFO) method. In the second quarter of 2019, we changed the method of inventory costing for certain inventory in two plants included in our North American Fenestration reportable business segment to the FIFO method from the last-in first-out (LIFO) method. We utilize the FIFO method to determine costs at all of our other operating locations. We believe that the FIFO method is preferable as it provides uniformity of inventory valuation across our global operations, aligns with a majority of our peers which use FIFO as their only inventory valuation method, and provides better matching of revenues and expenses. The impact of this change in accounting principle on the financial statements for each period presented is further explained in Note 2, “Inventories.” |
Inventories
Inventories | 9 Months Ended |
Jul. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following at July 31, 2019 and October 31, 2018 : July 31, October 31, (In thousands) Raw materials $ 42,415 $ 41,584 Finished goods and work in process 43,823 31,727 Supplies and other 2,975 1,794 Total 89,213 75,105 Less: Inventory reserves 4,451 4,375 Inventories, net $ 84,762 $ 70,730 Fixed costs related to excess manufacturing capacity, if any, have been expensed in the period they were incurred and, therefore, are not capitalized into inventory. As described in Note 1, “Nature of Operations and Basis of Presentation - Accounting Change - Inventories ,” in the second quarter of 2019, we elected to change our method of accounting for certain inventory in our North American Fenestration reportable business segment from LIFO to FIFO. We applied this change in method of inventory costing by retrospectively adjusting the prior period financial statements. As a result of the retrospective application of the change in accounting principle, certain amounts in our condensed consolidated balance sheet as of October 31, 2018 were adjusted as follows: As reported Impact of change to FIFO As adjusted (In thousands) Inventories $ 69,365 $ 1,365 $ 70,730 Deferred income taxes 17,215 295 17,510 Retained earnings 242,834 1,070 243,904 During the third quarter of 2019, we updated our assessment of the impact of the change in method of inventory costing and noted the impact would have remained the same. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Jul. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The change in the carrying amount of goodwill for the nine months ended July 31, 2019 was as follows: Nine Months Ended July 31, 2019 (In thousands) Beginning balance as of November 1, 2018 $ 219,627 Goodwill impairment charge (29,978 ) Foreign currency translation adjustment (2,820 ) Balance as of the end of the period $ 186,829 At our last annual test date, August 31, 2018, we evaluated the recoverability of goodwill at each of our five reportable units with goodwill balances and determined that our goodwill was not impaired. For the reportable unit included in our NA Cabinet Components operating segment, we experienced financial performance for the year to date period ending March 31, 2019 that was below our annual budget. As a result, we developed a new long-range forecast for this reporting unit that was below its previous long-range forecast as a result of an industry-wide shift from semi-custom cabinets to stock cabinets. We determined that the combination of i) actual financial results below planned performance, ii) a downward revision of the long-range forecast, and iii) the historical narrow margin of fair value over carrying value in previous annual and interim goodwill assessments represented a triggering event that would more likely than not indicate that the carrying value of a reporting unit was greater than its fair value. Therefore, we performed a quantitative assessment (previously referred to as step one) of the goodwill impairment test at March 31, 2019. The step one test was conducted using multiple valuation techniques, including a discounted cash flow analysis, which utilize Level 3 fair value inputs. During the nine months ended July 31, 2019 , we adopted a new accounting standard which removed the requirement to perform any further testing beyond the quantitative assessment, as further described in Note 15, "New Accounting Guidance." As a result of the step one test, we recorded an impairment charge of $30.0 million , reducing the goodwill balance applicable to the reporting unit included in our NA Cabinet Components operating segment from $113.7 million to $83.7 million . For a summary of the change in the carrying amount of goodwill by segment, see Note 13, "Segment Information." Identifiable Intangible Assets Amortizable intangible assets consisted of the following as of July 31, 2019 and October 31, 2018 : July 31, 2019 October 31, 2018 Gross Carrying Amount Accumulated Amortization Gross Carrying Accumulated (In thousands) Customer relationships $ 151,616 $ 66,879 $ 153,704 $ 59,332 Trademarks and trade names 55,024 34,486 55,583 32,668 Patents and other technology 22,344 18,999 22,278 17,646 Total $ 228,984 $ 120,364 $ 231,565 $ 109,646 During the nine months ended July 31, 2019 , we retired identifiable intangible assets of $0.3 million related to customer relationships. We had aggregate amortization expense related to intangible assets for the three and nine months ended July 31, 2019 of $3.7 million and $11.6 million , respectively, and $4.0 million and $12.2 million , respectively, for the comparable prior year periods. Estimated remaining amortization expense, based on current intangible balances, for each of the fiscal years ending October 31, is as follows (in thousands): Estimated Amortization Expense 2019 (remaining three months) $ 3,689 2020 14,116 2021 12,396 2022 11,776 2023 11,028 Thereafter 55,615 Total $ 108,620 |
Debt and Capital Lease Obligati
Debt and Capital Lease Obligations | 9 Months Ended |
Jul. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Capital Lease Obligations | Debt and Capital Lease Obligations Debt consisted of the following at July 31, 2019 and October 31, 2018 : July 31, October 31, (In thousands) Revolving Credit Facility $ 177,500 $ 195,000 Capital lease obligations and other 15,742 17,043 Unamortized deferred financing fees (1,262 ) (1,487 ) Total debt $ 191,980 $ 210,556 Less: Current maturities of long-term debt 871 1,224 Long-term debt $ 191,109 $ 209,332 As more fully described in our Annual Report on Form 10-K for the year ended October 31, 2018, on October 18, 2018, we amended and extended our prior credit facility by entering into a $325.0 million revolving credit facility (the “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 Credit Facility has a five-year term, maturing on October 18, 2023, and requires 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. In addition, we are subject to commitment fees for the unused portion of the 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 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 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, to be greater than 3.25 to 1.00. In addition to maintaining these financial covenants, the 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 Credit Facility. Substantially all of our domestic assets, with the exception of real property, are utilized as collateral for the Credit Facility. As of July 31, 2019 , we had $177.5 million of borrowings outstanding under the Credit Agreement (reduced by unamortized debt issuance costs of $1.3 million ), $4.8 million of outstanding letters of credit and $15.7 million outstanding primarily under capital leases. We had $142.7 million available for use under the Credit Agreement at July 31, 2019 . Outstanding borrowings under the Credit Agreement accrue interest at 3.99% per annum. Our weighted average borrowing rate for borrowings outstanding during the nine months ended July 31, 2019 and 2018 was 4.16% and 3.70% , respectively. We were in compliance with our debt covenants as of July 31, 2019 . Other Debt Instruments We maintain certain capital lease obligations related to equipment purchases, vehicles, and warehouse space. The cost and accumulated depreciation of property, plant and equipment under all outstanding capital leases at July 31, 2019 was $21.2 million and $4.2 million , respectively, including $16.6 million and $2.5 million , respectively, related to warehouse space. Our total obligations under capital leases and other total $15.6 million at July 31, 2019 , of which $1.0 million is classified in the current portion of long-term debt and $14.6 million is classified as long-term debt on the accompanying unaudited condensed consolidated balance sheets. These obligations accrue interest at an average rate of 3.60% , and extend through the year 2036 |
Retirement Plans
Retirement Plans | 9 Months Ended |
Jul. 31, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans Pension Plan Our non-contributory, single employer defined benefit pension plan covers a majority of our employees in the U.S. The net periodic pension cost for this plan for the three and nine months ended July 31, 2019 and 2018 was as follows: Three Months Ended Nine Months Ended July 31, July 31, 2019 2018 2019 2018 (In thousands) Service cost $ 907 $ 960 $ 2,722 $ 2,932 Interest cost 364 279 1,092 847 Expected return on plan assets (494 ) (543 ) (1,483 ) (1,630 ) Amortization of net loss 31 7 94 49 Net periodic pension cost $ 808 $ 703 $ 2,425 $ 2,198 During September 2018, we contributed $0.8 million to fund our plan, and we expect to make a contribution to our plan in September 2019 of approximately $0.7 million . Other Plans We also have a supplemental benefit plan covering certain executive officers and key employees and a non-qualified deferred compensation plan covering members of the Board of Directors and certain key employees. As of July 31, 2019 and October 31, 2018 , our liability under the supplemental benefit plan was approximately $3.5 million and $3.4 million , respectively. As of July 31, 2019 and October 31, 2018 , the liability associated with the deferred compensation plan was approximately $3.7 million and $3.5 million , respectively. We record the current portion of liabilities associated with these plans under the caption "Accrued Liabilities," and the long-term portion under the caption "Other Liabilities" in the accompanying condensed consolidated balance sheets. |
Warranty Obligations
Warranty Obligations | 9 Months Ended |
Jul. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Warranty Obligations | Warranty Obligations We accrue warranty obligations as we recognize revenue associated with certain products. We make provisions for our warranty obligations based upon historical experience of costs incurred for such obligations adjusted, as necessary, for current conditions and factors. There are significant uncertainties and judgments involved in estimating our warranty obligations, including changing product designs, differences in customer installation processes and future claims experience which may vary from historical claims experience. Therefore, the ultimate amount we incur as warranty costs in the near and long-term may not be consistent with our current estimate. A reconciliation of the activity related to our accrued warranty, including both the current and long-term portions (reported in accrued liabilities and other liabilities, respectively, on the accompanying condensed consolidated balance sheets) follows: Nine Months Ended July 31, 2019 (In thousands) Beginning balance as of November 1, 2018 $ 295 Change in accrual for preexisting warranties (10 ) Warranty costs paid (15 ) Total accrued warranty as of July 31, 2019 $ 270 Less: Current portion of accrued warranty 138 Long-term portion of accrued warranty $ 132 |
Income Taxes
Income Taxes | 9 Months Ended |
Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes To determine our income tax expense or benefit for interim periods, consistent with accounting standards, we apply the estimated annual effective income tax rate to year-to-date results. Our estimated annual effective tax rates for the each of the nine months ended July 31, 2019 and 2018 was 24.8% and 23.7% , respectively, excluding discrete items. On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the Act), which significantly changed U.S. tax law. The Act reduced our federal income tax statutory rate from 35.0% to 23.3% for the fiscal year ended October 31, 2018. The Act also imposed additional tax law changes that became effective during fiscal 2019, which include new requirements for a global intangible low-taxed income provision (GILTI) and a deduction for foreign-derived intangible income (FDII). We elected to account for the tax on GILTI as a period cost and therefore have not recorded deferred taxes related to GILTI on our foreign subsidiaries. The 2019 effective rate was primarily impacted by a net charge of $1.4 million related to GILTI and FDII, as well as discrete charges of $0.6 million for the adjustment of the one-time mandatory transition tax on deemed repatriation of previously tax-deferred and unremitted foreign earnings and $0.3 million related to the vesting or exercise of equity-based compensation awards. Additionally, during the nine months ended July 31, 2019, we recorded a $30.0 million asset impairment charge, which was primarily non-deductible, in the North American Cabinet Components segment, as further explained in Note 3, "Goodwill and Intangible Assets." Discrete items contributing to the income tax benefit for the nine months ended July 31, 2018 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 $0.3 million for the true up of our accruals and related deferred taxes from prior year filings and settled tax audits, and a benefit of $0.1 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 following table reconciles our effective income tax rate to the federal statutory rate of 21.0% and 23.3% for the nine months ended July 31, 2019 and 2018 , respectively: Nine months ended July 31, 2019 2018 U.S. tax at statutory rate 21.0 % 23.3 % State and local income tax 3.4 2.8 Non-U.S. income tax 0.5 (0.7 ) Other permanent differences (3.5 ) (1.8 ) Deferred rate impact of enactment of tax reform — (44.9 ) Foreign tax positions under the Act (GILTI and FDII) 3.4 — Tax impact of stock based compensation (3.4 ) 0.8 Impact of deemed repatriation (5.9 ) 7.1 Return to actual adjustments (2.3 ) (1.3 ) Asset impairment charges (73.3 ) — Effective tax rate (60.1 )% (14.7 )% The U.S. 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. As of January 31, 2019, the Company completed the accounting for the income tax effects of the Act within the one-year measurement period as allowed by the U.S. Securities and Exchange Commission Staff Accounting Bulletin No. 118. We recorded an immaterial adjustment to our transition tax during the nine months ended July 31, 2019 . In light of the Act, we repatriated $13.9 million of excess cash from our foreign operations during the nine months ended July 31, 2019 . This repatriation of excess cash was a portion of the one-time mandatory transition tax discussed above. 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. As of July 31, 2019 , our liability for uncertain tax positions (UTP) of $0.6 million relates to certain state tax items regarding the interpretation of tax laws and regulations. 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. The disallowance of the UTP would not materially affect the annual effective tax rate. We do not believe any of the UTP at July 31, 2019 will be recognized within the next twelve months. We evaluate the likelihood of realization of our deferred tax assets by considering both positive and negative evidence. We maintain a valuation allowance for certain state net operating losses which totaled $1.3 million at July 31, 2019 . |
Contingencies
Contingencies | 9 Months Ended |
Jul. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies 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 nine months ended July 31, 2018 , our insurance carrier reimbursed fees and expenses originally incurred as part of our defense of these various commercial sealant claims totaling $0.5 million . There were no corresponding reimbursements received during the nine months ended July 31, 2019 . 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 | 9 Months Ended |
Jul. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Our derivative activities are subject to the management, direction, and control of the Chief Financial Officer and Chief Executive Officer. Certain transactions in excess of specified levels require further approval from the Board of Directors. The nature of our business activities requires the management of various financial and market risks, including those related to changes in foreign currency exchange rates. We have historically used foreign currency forwards and options to mitigate or eliminate certain of those risks at our subsidiaries. We use foreign currency contracts to offset fluctuations in the value of accounts receivable and accounts payable balances that are denominated in currencies other than the United States Dollar, including the Euro, British Pound and Canadian Dollar. Currently, we do not enter into derivative transactions for speculative or trading purposes. We are exposed to credit loss in the event of nonperformance by the counterparties to our derivative transactions. We attempt to mitigate this risk by monitoring the creditworthiness of our counterparties and limiting our exposure to individual counterparties. In addition, we have established master netting agreements in certain cases to facilitate the settlement of gains and losses on specific derivative contracts. We have not designated any of our derivative contracts as hedges for accounting purposes in accordance with the provisions under the Accounting Standards Codification Topic 815 "Derivatives and Hedging " (ASC 815). Therefore, changes in the fair value of these contracts and the realized gains and losses are recorded in the unaudited condensed consolidated statements of income (loss) for the three and nine months ended July 31, 2019 and 2018 as follows (in thousands): Three Months Ended Nine Months Ended July 31, July 31, Location of gains (losses): 2019 2018 2019 2018 Other, net Foreign currency derivatives $ 11 $ 11 $ (8 ) $ (18 ) 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 the accompanying condensed 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 July 31, 2019 and October 31, 2018. The following table summarizes the notional amounts and fair value of outstanding derivative contracts at July 31, 2019 and October 31, 2018 (in thousands): Notional as indicated Fair Value in $ July 31, October 31, July 31, October 31, Foreign currency derivatives: Sell EUR, buy USD EUR 6 455 $ — $ 1 Sell CAD, buy USD CAD 378 229 1 — Sell GBP, buy USD GBP 105 22 3 — Buy EUR, sell GBP EUR 72 34 1 — Buy GBP, sell EUR EUR 2 — — — Buy USD, sell EUR USD 6 12 — — |
Fair Value Measurement of Asset
Fair Value Measurement of Assets and Liabilities | 9 Months Ended |
Jul. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement of Assets and Liabilities | Fair Value Measurement of Assets and Liabilities Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market data 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 July 31, 2019 and October 31, 2018 , 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 July 31, 2019 and October 31, 2018 . 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. 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 change in interest rate risk. As a result, the fair value of our debt instrument approximates carrying value at July 31, 2019 , and October 31, 2018 (Level 3 measurement). |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Jul. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We have established and maintain an Omnibus Incentive Plan (2008 Plan) that provides for the granting of restricted stock awards, stock options, restricted stock units, performance share awards, 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 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. As approved by the Compensation & Management Development Committee of our Board of Directors annually, we grant a mix of restricted stock awards, performance shares and/or performance restricted stock units to officers, management and key employees. We also historically granted stock options to certain officers, directors 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 award is entitled to all of the rights of a shareholder, except that the award is 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 nine months ended July 31, 2019 is presented below: Restricted Stock Awards Weighted Average Non-vested at October 31, 2018 217,200 $ 19.76 Granted 124,800 $ 13.78 Forfeited (42,500 ) $ 17.87 Vested (69,400 ) $ 19.19 Non-vested at July 31, 2019 230,100 $ 17.02 The total weighted average grant-date fair value of restricted stock awards that vested during each of the nine month periods ended July 31, 2019 and 2018 was $1.3 million and $2.3 million , respectively. As of July 31, 2019 , total unrecognized compensation cost related to unamortized restricted stock awards was $1.9 million . We expect to recognize this expense over the remaining weighted average vesting period of 1.9 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 annual grant of stock options to non-employee directors. During December 2017, the Compensation & Management Development Committee of the Board of Directors approved a change to the long-term incentive award program eliminating the grant of stock options and replacing this award with a grant of performance restricted stock units as further described below. As a result, stock options were not granted during the year ended October 31, 2018 or during the nine months ended July 31, 2019 . Employee 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. For employees who are nearing retirement-eligibility, we recognize stock option expense ratably over the shorter of the vesting period or the period from the grant-date to the retirement-eligibility date. We use a Black-Scholes pricing model to estimate the fair value of stock options. A description of the methodology for the valuation assumptions was disclosed in our Annual Report on Form 10-K for the fiscal year ended October 31, 2018 . The following table summarizes our stock option activity for the nine months ended July 31, 2019 : Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (000s) Outstanding at October 31, 2018 1,753,656 $ 18.47 Granted — $ — Exercised (170,039 ) $ 15.94 Forfeited/Expired (23,000 ) $ 19.11 Outstanding at July 31, 2019 1,560,617 $ 18.73 4.1 $ 1,211 Vested or expected to vest at July 31, 2019 1,560,617 $ 18.73 4.1 $ 1,211 Exercisable at July 31, 2019 1,479,145 $ 18.69 3.9 $ 1,211 Intrinsic value is the amount by which the market price of the common stock on the date of exercise exceeds the exercise price of the stock option. The total intrinsic value of stock options exercised during the nine months ended July 31, 2019 and 2018 was less than $0.3 million and $2.0 million , respectively. The weighted-average grant date fair value of stock options that vested during the nine months ended July 31, 2019 and 2018 was $1.1 million and $1.5 million , respectively. As of July 31, 2019 , substantially all compensation cost related to stock options has been recognized. 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 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 nine months ended July 31, 2019 and 2018 , non-employee directors received 29,065 and 18,050 restricted stock units, respectively, at a grant date fair value of $15.29 per share and $21.85 per share, respectively, which vested immediately. As of July 31, 2019 , there were 4,616 non-vested restricted stock units, which were awarded in June 2019 to a key employee at a grant date fair value of $16.70 . These restricted stock units will vest in December 2020. During the nine months ended July 31, 2019 , we paid approximately $0.4 million to settle previously vested restricted stock units; there were no corresponding payments to settled vested restricted stock units during the comparable prior year period. Performance Share Awards We have awarded annual grants of performance shares to key employees and officers. These awards cliff vest after a three -year period. Performance share awards issued prior to fiscal 2019 vest with service and performance measures (relative total shareholder return (R-TSR) and earnings per share (EPS) growth), as vesting conditions. The number of shares earned is variable depending on the metrics achieved, and the settlement method is 50% in cash and 50% in our common stock. Performance share awards issued during fiscal 2019 vest with return on net assets (RONA) as the vesting condition and pay out 100% in cash. To account for these awards, we have bifurcated the portion subject to a market condition (R-TSR) and the portion subject to an internal performance measure (EPS or RONA). 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 EPS and RONA performance measures, we used the value of our common stock on the date of grant as the grant-date fair value per share. This amount is being expensed over the three -year term of the award, with a credit to additional paid-in-capital, and could fluctuate depending on the number of shares ultimately expected to vest based on our assessment of the probability that the performance conditions will be achieved. The portion of the awards expected to settle in cash is recorded as a liability and is being marked to market over the three -year term of the award, and can fluctuate depending on the number of shares ultimately expected to vest. 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, R-TSR and RONA performance metrics: Grant Date Fair Value Grant Date Shares Awarded EPS R-TSR RONA Shares Forfeited November 30, 2016 186,500 $ 19.45 $ 26.61 $ — 42,230 December 7, 2017 146,500 $ 20.70 $ 21.81 $ — 33,208 December 5, 2018 131,500 $ — $ — $ 13.63 18,100 On December 3, 2018 and January 25, 2019, a total of 139,164 shares vested pursuant to the December 2015 grant and a total of 4,300 shares vested pursuant to the January 2016 grant, however performance conditions resulted in no share issuances or cash payments for either of these awards. The November 2016 and December 2017 grants include 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 as the metric is deemed achievable, compensation expense will begin to be recognized through the remaining vesting period. We recorded compensation expense of $0.5 million for each of the three and nine months ended July 31, 2019 , respectively, related to the expected payout of our performance share awards that are outstanding as of July 31, 2019 . During the three months ended July 31, 2018 , we recorded compensation expense of $0.4 million related to the current portion of outstanding performance share grants which will vest in future years. During the nine months ended July 31, 2018 , we recorded a decrease in compensation expense of $1.2 million related to the expected payouts of performance share awards that were outstanding as of July 31, 2018 . Performance share awards are not considered outstanding shares and do not have voting rights, although dividends are accrued over the performance period and will be payable in cash based upon the number of performance shares ultimately earned. The performance shares are excluded from the diluted weighted-average shares used to calculate earnings per share until the performance criteria is probable to result in the issuance of contingent shares. As of July 31, 2019 , we have deemed 68,107 shares related to the November 2016 grants of performance shares as probable to vest. Performance Restricted Stock Units We awarded performance restricted stock units to key employees and officers beginning 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 shares 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% —% The following table summarizes our performance restricted stock unit grants and the grant date fair value for the A-TSR performance metric: Grant Date Shares Awarded Grand Date Fair Value Shares Forfeited December 7, 2017 78,200 $ 17.76 17,754 December 5, 2018 89,200 $ 13.63 13,800 During the three and nine months ended July 31, 2019 , we recorded compensation expense of approximately $0.2 million and $0.6 million , respectively, and $0.1 million and $0.2 million , respectively, for the comparable prior year periods related to our performance share restricted units. 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. Treasury Shares 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 $0.8 million during the nine months ended July 31, 2019 . The following table summarizes the treasury stock activity during the nine months ended July 31, 2019 : Nine Months Ended July 31, 2019 Beginning balance as of November 1, 2018 4,094,785 Restricted stock awards granted (124,800 ) Stock options exercised (170,039 ) Treasury stock repurchases 408,398 Balance at April 30, 2019 4,208,344 |
Other Income (Expense)
Other Income (Expense) | 9 Months Ended |
Jul. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense) | Other Income Other income, included under the caption "Other, net" on the accompanying condensed consolidated statements of income (loss), consisted of the following for the three and nine months ended July 31, 2019 and 2018 : Three Months Ended Nine Months Ended July 31, July 31, 2019 2018 2019 2018 (In thousands) Foreign currency transaction gains (losses) $ 101 $ (90 ) $ 75 $ 106 Foreign currency derivative gains (losses) 11 11 (8 ) (18 ) Pension service benefit 130 257 328 734 Interest income 15 14 59 54 Other 2 3 7 8 Other, net $ 259 $ 195 $ 461 $ 884 Other income for the three and nine months ended July 31, 2018 has been updated to reflect the adoption of Accounting Standards Update 2017-07. For further information, see Note 15, "New Accounting Guidance". |
Segment Information (Notes)
Segment Information (Notes) | 9 Months Ended |
Jul. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segment Information We present three reportable business segments in accordance with ASC Topic 280-10-50, "Segment Reporting" (ASC 280): (1) North American Fenestration segment (NA Fenestration), comprising three operating segments primarily focused on the fenestration market in North America including vinyl profiles, insulating glass spacers, screens & other fenestration components; (2) European Fenestration segment (EU Fenestration), comprising our U.K.-based vinyl extrusion business, manufacturing vinyl profiles & conservatories, and the European insulating glass business manufacturing insulating glass spacers; and (3) North American Cabinet Components segment (NA Cabinet Components), comprising our cabinet door and components operations. We maintain an Unallocated Corporate & Other grouping which includes corporate office charges, and inter-segment eliminations, less an allocation of a portion of the general and administrative costs associated with the corporate office which have been allocated to the reportable business segments, based upon a relative measure of profitability, in order to more accurately reflect each reportable business segment's administrative cost. Certain costs are not allocated to the reportable operating segments, but remain in Unallocated Corporate & Other, including 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 the fourth quarter of 2018, executive incentive compensation and medical expense fluctuations relative to planned costs as determined during the annual planning process. The change in allocation was incorporated during the fourth quarter of 2018, which resulted in a reduction in corporate general and administrative expense of $1.2 million and $2.1 million for the three and nine months ended July 31, 2018 , respectively, which is reflected in the tables below. The accounting policies of our operating segments are the same as those used to prepare the accompanying condensed consolidated financial statements. Corporate general and administrative expense allocated during the three and nine month periods ended July 31, 2019 was $4.8 million and $14.6 million , respectively, and $4.1 million and $13.2 million , respectively, for the prior year comparable periods. 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 three and nine months ended July 31, 2019 and 2018 , and total assets as of July 31, 2019 and October 31, 2018 are summarized in the following table (in thousands): NA Fenestration (1) EU Fenestration (1) NA Cabinet Comp. Unallocated Corp. & Other Total Three Months Ended July 31, 2019 Net sales $ 136,259 $ 44,326 $ 58,689 $ (813 ) $ 238,461 Depreciation and amortization 6,578 2,213 3,258 133 12,182 Operating income (loss) 15,944 5,367 1,558 (3,759 ) 19,110 Capital expenditures 2,299 485 942 236 3,962 Three Months Ended July 31, 2018 Net sales $ 133,397 $ 42,661 $ 65,114 $ (1,351 ) $ 239,821 Depreciation and amortization 6,741 2,352 3,432 166 12,691 Operating income (loss) (2) 12,712 4,177 3,623 (3,682 ) 16,830 Capital expenditures 3,391 698 1,792 4 5,885 Nine Months Ended July 31, 2019 Net sales $ 360,654 $ 121,203 $ 175,377 $ (3,762 ) $ 653,472 Depreciation and amortization 20,208 6,669 9,902 379 37,158 Operating income (loss) 24,048 12,951 (29,361 ) (10,341 ) (2,703 ) Capital expenditures 8,672 4,825 3,251 236 16,984 Nine Months Ended July 31, 2018 Net sales $ 350,280 $ 115,481 $ 183,705 $ (3,767 ) $ 645,699 Depreciation and amortization 20,561 7,328 10,957 428 39,274 Operating income (loss) 19,960 8,094 1,129 (5,183 ) 24,000 Capital expenditures 10,855 4,562 5,563 118 21,098 As of July 31, 2019 Total assets $ 235,443 $ 203,696 $ 236,236 $ 4,689 $ 680,064 As of October 31, 2018 Total assets (3) $ 239,915 $ 214,704 $ 272,313 $ 16,282 $ 743,214 (1) NA Fenestration and EU Fenestration were previously named "NA Engineered Components" and "EU Engineered Components". (2) Results have been updated to reflect the adoption of Accounting Standards Update 2017-07. For further details, see Note 15, "New Accounting Guidance", located herewith. Results have also been updated to reflect a decrease in corporate general and administrative allocations, as noted above. (3) Total assets as of October 31, 2018 have been updated to reflect an accounting change to the FIFO inventory cost method. For further details, see Note 2, "Inventories", located herewith. The following table summarizes the change in the carrying amount of goodwill by reportable business segment for the nine months ended July 31, 2019 (in thousands): NA Fenestration EU Fenestration NA Cabinet Comp. Unallocated Corp. & Other Total Balance as of October 31, 2018 $ 38,712 $ 67,168 $ 113,747 $ — $ 219,627 Asset impairment charge — — (29,978 ) — (29,978 ) Foreign currency translation adjustment — (2,820 ) — — (2,820 ) Balance as of July 31, 2019 $ 38,712 $ 64,348 $ 83,769 $ — $ 186,829 For further details of Goodwill, see Note 3, "Goodwill & Intangible Assets", located herewith. We did not allocate non-operating loss or income tax benefit to the reportable segments. The following table reconciles operating income (loss) as reported above to net income (loss) for the three and nine months ended July 31, 2019 and 2018 : Three Months Ended Nine Months Ended July 31, July 31, 2019 2018 2019 2018 (In thousands) Operating income (loss) $ 19,110 $ 16,830 $ (2,703 ) $ 24,000 Interest expense (2,570 ) (2,641 ) (7,614 ) (7,584 ) Other, net 259 195 461 884 Income tax (expense) benefit (4,958 ) (3,631 ) (5,926 ) 2,536 Net income (loss) $ 11,841 $ 10,753 $ (15,782 ) $ 19,836 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jul. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings 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. Basic and diluted earnings (loss) per share for the three and nine months ended July 31, 2019 and 2018 were calculated as follows (in thousands, except per share data): Net Income Weighted Average Shares Per Share Three Months Ended July 31, 2019 Basic earnings per common share $ 11,841 32,899 $ 0.36 Effect of dilutive securities: Stock options 77 Restricted stock awards 118 Performance shares 68 Diluted earnings per common share $ 11,841 33,162 $ 0.36 Three Months Ended July 31, 2018 Basic earnings per common share $ 10,753 34,840 $ 0.31 Effect of dilutive securities: Stock options 171 Restricted stock awards 109 Diluted earnings per common share $ 10,753 35,120 $ 0.31 Nine Months Ended July 31, 2019 Basic loss per common share $ (15,782 ) 32,984 $ (0.48 ) Diluted loss per common share (1) $ (15,782 ) 32,984 $ (0.48 ) Nine Months Ended July 31, 2018 Basic earnings per common share $ 19,836 34,766 $ 0.57 Effect of dilutive securities: Stock options 226 Restricted stock awards 133 Diluted earnings per common share $ 19,836 35,125 $ 0.56 (1) The computation of diluted earnings per share excludes outstanding stock options and other common stock equivalents when their inclusion would be anti-dilutive. This is always the case when an entity incurs a net loss. During the nine months ended July 31, 2019, 30,844 shares of common stock equivalent and 120,927 shares of restricted stock were excluded from the computation of diluted earnings per share. In addition, 68,107 potentially dilutive contingent shares related to performance share awards for each of the nine months ended July 31, 2019 were excluded. We had common stock equivalents that were potentially dilutive in future earnings per share calculations of 1,155,941 and 1,419,408 for the three and nine months ended July 31, 2019, respectively, and 1,015,946 and 972,606 , respectively, for the prior year comparable periods. Such dilution will be dependent on the excess of the market price of our stock over the exercise price and other components of the treasury stock method. |
New Accounting Guidance Adopted
New Accounting Guidance Adopted | 9 Months Ended |
Jul. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Guidance Adopted | New Accounting Guidance Accounting Standards Recently Adopted In May 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-09, Compensation - Stock Compensation (Topic 718) , which provides guidance as to when changes in share-based payment awards under Topic 718 should be accounted for as a modification of the award. Essentially, the changes should be considered a modification unless specific criteria are met. We adopted this guidance as of November 1, 2018 with no impact to the financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715) , Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This update provides explicit guidance on how to present the service cost component and other components of net benefit cost in the income statement and allows only the service cost component of net benefit cost to be eligible for capitalization. We adopted this change retrospectively as of November 1, 2018, resulting in a reclassification for the three and nine months ended July 31, 2018 of $0.2 million and $0.6 million of benefit, respectively, from the "Cost of sales" line item and approximately $0.1 million and $0.2 million of benefit for the corresponding periods from the "Selling, general and administrative" line item to the "Other, net" line item on the accompanying condensed consolidated statement of income. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) , which provides clarity when determining whether a set of assets and activities constitutes a business. Specifically, if substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not deemed to be a business. We adopted this change prospectively as of November 1, 2018 with no impact to the financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). This guidance simplifies the current two-step goodwill impairment test by eliminating the second step. Essentially, the entity compares the fair value of a reporting unit with its carrying value amount and recognizes an impairment charge for the amount by which the carrying value exceeds the fair value. The resulting loss is limited to the amount of goodwill. This guidance also eliminates the requirement for a reporting unit with zero or negative carrying value to perform a qualitative assessment of goodwill and apply step-two of the goodwill impairment test if the qualitative assessment fails. Thus, the same impairment assessment will be applied to all reporting units (even if the carrying value is zero or negative). We prospectively adopted this guidance as of February 1, 2019 with no material impact to the consolidated financial statements. See Note 3, "Goodwill & Intangible Assets," for further details of the goodwill impairment analysis performed during the three months ended April 30, 2019. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments . This amendment is intended to reduce diversity in practice as to how certain cash receipts and cash payments are presented and classified in the statement of cash flows by providing guidance for several specific cash flow issues. We adopted this change retrospectively as of November 1, 2018 with no impact to the financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This guidance prescribes a methodology to determine when revenue is recognizable and constitutes a principles-based approach to revenue recognition based on the consideration to which the entity expects to be entitled in exchange for goods or services. In addition, this guidance requires additional disclosure in the notes to the financial statements with regard to the methodology applied. This pronouncement essentially superseded and replaced existing revenue recognition rules in U.S. GAAP, including industry-specific guidance. We adopted this guidance using the modified retrospective approach on November 1, 2018. Based on our evaluation, we have concluded that the adoption of this new guidance did not have a material impact on our consolidated financial statements. For additional information, refer to Note 1, “Nature of Operations and Basis of Presentation - Revenue from Contracts with Customers”. Accounting Standards Not Yet Adopted In February 2016, the FASB established Topic 842, Leases, by issuing ASU No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard is effective for us on November 1, 2019, with early adoption permitted. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. We expect to adopt the new standard on November 1, 2019 and use the effective date as our date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods prior to November 1, 2019. The new standard provides a number of optional practical expedients in transition. We expect to elect all of the new standard’s available transition practical expedients. We expect that this standard will have a material effect on our financial statements. While we continue to assess all of the effects of adoption, we currently believe the most significant effects on our financial statements relate to the recognition of new ROU assets and lease liabilities on our balance sheet for our operating leases and providing significant new disclosures about our leasing activities. We do not expect a significant change in our leasing activities between now and adoption. On adoption, we currently expect to recognize additional operating liabilities ranging from $40.0 million to $60.0 million, with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Three months ended Nine Months Ended July 31, July 31, 2019 2018 2019 2018 (In thousands) North American Fenestration: United States - fenestration $ 119,481 $ 112,914 $ 312,509 $ 297,700 International - fenestration 7,172 11,851 23,474 27,758 United States - non-fenestration 3,982 4,675 12,290 13,518 International - non-fenestration 5,624 3,957 12,381 11,304 $ 136,259 $ 133,397 $ 360,654 $ 350,280 European Fenestration: International - fenestration $ 36,342 $ 34,881 $ 102,038 $ 97,597 International - non-fenestration 7,984 7,780 19,165 17,884 $ 44,326 $ 42,661 $ 121,203 $ 115,481 North American Cabinet Components: United States - fenestration $ 3,561 $ 3,650 $ 9,909 $ 10,500 United States - non-fenestration 54,512 60,843 163,694 171,547 International - non-fenestration 616 621 1,774 1,658 $ 58,689 $ 65,114 $ 175,377 $ 183,705 Unallocated Corporate & Other Eliminations $ (813 ) $ (1,351 ) $ (3,762 ) $ (3,767 ) $ (813 ) $ (1,351 ) $ (3,762 ) $ (3,767 ) Net sales $ 238,461 $ 239,821 $ 653,472 $ 645,699 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following at July 31, 2019 and October 31, 2018 : July 31, October 31, (In thousands) Raw materials $ 42,415 $ 41,584 Finished goods and work in process 43,823 31,727 Supplies and other 2,975 1,794 Total 89,213 75,105 Less: Inventory reserves 4,451 4,375 Inventories, net $ 84,762 $ 70,730 Fixed costs related to excess manufacturing capacity, if any, have been expensed in the period they were incurred and, therefore, are not capitalized into inventory. As described in Note 1, “Nature of Operations and Basis of Presentation - Accounting Change - Inventories ,” in the second quarter of 2019, we elected to change our method of accounting for certain inventory in our North American Fenestration reportable business segment from LIFO to FIFO. We applied this change in method of inventory costing by retrospectively adjusting the prior period financial statements. As a result of the retrospective application of the change in accounting principle, certain amounts in our condensed consolidated balance sheet as of October 31, 2018 were adjusted as follows: As reported Impact of change to FIFO As adjusted (In thousands) Inventories $ 69,365 $ 1,365 $ 70,730 Deferred income taxes 17,215 295 17,510 Retained earnings 242,834 1,070 243,904 During the third quarter of 2019, we updated our assessment of the impact of the change in method of inventory costing and noted the impact would have remained the same. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill | The change in the carrying amount of goodwill for the nine months ended July 31, 2019 was as follows: Nine Months Ended July 31, 2019 (In thousands) Beginning balance as of November 1, 2018 $ 219,627 Goodwill impairment charge (29,978 ) Foreign currency translation adjustment (2,820 ) Balance as of the end of the period $ 186,829 The following table summarizes the change in the carrying amount of goodwill by reportable business segment for the nine months ended July 31, 2019 (in thousands): NA Fenestration EU Fenestration NA Cabinet Comp. Unallocated Corp. & Other Total Balance as of October 31, 2018 $ 38,712 $ 67,168 $ 113,747 $ — $ 219,627 Asset impairment charge — — (29,978 ) — (29,978 ) Foreign currency translation adjustment — (2,820 ) — — (2,820 ) Balance as of July 31, 2019 $ 38,712 $ 64,348 $ 83,769 $ — $ 186,829 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | Identifiable Intangible Assets Amortizable intangible assets consisted of the following as of July 31, 2019 and October 31, 2018 : July 31, 2019 October 31, 2018 Gross Carrying Amount Accumulated Amortization Gross Carrying Accumulated (In thousands) Customer relationships $ 151,616 $ 66,879 $ 153,704 $ 59,332 Trademarks and trade names 55,024 34,486 55,583 32,668 Patents and other technology 22,344 18,999 22,278 17,646 Total $ 228,984 $ 120,364 $ 231,565 $ 109,646 |
Estimated Amortization Expense Related to Intangible Assets | Estimated remaining amortization expense, based on current intangible balances, for each of the fiscal years ending October 31, is as follows (in thousands): Estimated Amortization Expense 2019 (remaining three months) $ 3,689 2020 14,116 2021 12,396 2022 11,776 2023 11,028 Thereafter 55,615 Total $ 108,620 |
Debt and Capital Lease Obliga_2
Debt and Capital Lease Obligations (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Capital Lease Obligations | Debt consisted of the following at July 31, 2019 and October 31, 2018 : July 31, October 31, (In thousands) Revolving Credit Facility $ 177,500 $ 195,000 Capital lease obligations and other 15,742 17,043 Unamortized deferred financing fees (1,262 ) (1,487 ) Total debt $ 191,980 $ 210,556 Less: Current maturities of long-term debt 871 1,224 Long-term debt $ 191,109 $ 209,332 |
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% 1.25% 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% |
Schedule Of Consolidated Leverage Ratio Requirements | The 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, to be greater than 3.25 to 1.00. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Retirement Benefits [Abstract] | |
Net Periodic Pension Cost | The net periodic pension cost for this plan for the three and nine months ended July 31, 2019 and 2018 was as follows: Three Months Ended Nine Months Ended July 31, July 31, 2019 2018 2019 2018 (In thousands) Service cost $ 907 $ 960 $ 2,722 $ 2,932 Interest cost 364 279 1,092 847 Expected return on plan assets (494 ) (543 ) (1,483 ) (1,630 ) Amortization of net loss 31 7 94 49 Net periodic pension cost $ 808 $ 703 $ 2,425 $ 2,198 |
Warranty Obligations (Tables)
Warranty Obligations (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Reconciliation of Activity Related to Accrued Warranty | A reconciliation of the activity related to our accrued warranty, including both the current and long-term portions (reported in accrued liabilities and other liabilities, respectively, on the accompanying condensed consolidated balance sheets) follows: Nine Months Ended July 31, 2019 (In thousands) Beginning balance as of November 1, 2018 $ 295 Change in accrual for preexisting warranties (10 ) Warranty costs paid (15 ) Total accrued warranty as of July 31, 2019 $ 270 Less: Current portion of accrued warranty 138 Long-term portion of accrued warranty $ 132 |
Income Taxes Income Tax (Tables
Income Taxes Income Tax (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The following table reconciles our effective income tax rate to the federal statutory rate of 21.0% and 23.3% for the nine months ended July 31, 2019 and 2018 , respectively: Nine months ended July 31, 2019 2018 U.S. tax at statutory rate 21.0 % 23.3 % State and local income tax 3.4 2.8 Non-U.S. income tax 0.5 (0.7 ) Other permanent differences (3.5 ) (1.8 ) Deferred rate impact of enactment of tax reform — (44.9 ) Foreign tax positions under the Act (GILTI and FDII) 3.4 — Tax impact of stock based compensation (3.4 ) 0.8 Impact of deemed repatriation (5.9 ) 7.1 Return to actual adjustments (2.3 ) (1.3 ) Asset impairment charges (73.3 ) — Effective tax rate (60.1 )% (14.7 )% |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | 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 unaudited condensed consolidated statements of income (loss) for the three and nine months ended July 31, 2019 and 2018 as follows (in thousands): Three Months Ended Nine Months Ended July 31, July 31, Location of gains (losses): 2019 2018 2019 2018 Other, net Foreign currency derivatives $ 11 $ 11 $ (8 ) $ (18 ) |
Schedule of Notional Amounts of Oustanding Derivative Positions | The following table summarizes the notional amounts and fair value of outstanding derivative contracts at July 31, 2019 and October 31, 2018 (in thousands): Notional as indicated Fair Value in $ July 31, October 31, July 31, October 31, Foreign currency derivatives: Sell EUR, buy USD EUR 6 455 $ — $ 1 Sell CAD, buy USD CAD 378 229 1 — Sell GBP, buy USD GBP 105 22 3 — Buy EUR, sell GBP EUR 72 34 1 — Buy GBP, sell EUR EUR 2 — — — Buy USD, sell EUR USD 6 12 — — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Nonvested Restricted Share Activity | A summary of non-vested restricted stock awards activity during the nine months ended July 31, 2019 is presented below: Restricted Stock Awards Weighted Average Non-vested at October 31, 2018 217,200 $ 19.76 Granted 124,800 $ 13.78 Forfeited (42,500 ) $ 17.87 Vested (69,400 ) $ 19.19 Non-vested at July 31, 2019 230,100 $ 17.02 |
Schedule of Stock Option Activity | The following table summarizes our stock option activity for the nine months ended July 31, 2019 : Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (000s) Outstanding at October 31, 2018 1,753,656 $ 18.47 Granted — $ — Exercised (170,039 ) $ 15.94 Forfeited/Expired (23,000 ) $ 19.11 Outstanding at July 31, 2019 1,560,617 $ 18.73 4.1 $ 1,211 Vested or expected to vest at July 31, 2019 1,560,617 $ 18.73 4.1 $ 1,211 Exercisable at July 31, 2019 1,479,145 $ 18.69 3.9 $ 1,211 |
Schedule of Performance Share Awards | The following table summarizes our performance share grants and the grant date fair value for the EPS, R-TSR and RONA performance metrics: Grant Date Fair Value Grant Date Shares Awarded EPS R-TSR RONA Shares Forfeited November 30, 2016 186,500 $ 19.45 $ 26.61 $ — 42,230 December 7, 2017 146,500 $ 20.70 $ 21.81 $ — 33,208 December 5, 2018 131,500 $ — $ — $ 13.63 18,100 |
Schedule of Performance Restricted Stock Vesting Conditions | 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% —% |
Performance Restricted Stock Units by Grant [Table Text Block] | Grant Date Shares Awarded Grand Date Fair Value Shares Forfeited December 7, 2017 78,200 $ 17.76 17,754 December 5, 2018 89,200 $ 13.63 13,800 |
Treasury Stock Activity | The following table summarizes the treasury stock activity during the nine months ended July 31, 2019 : Nine Months Ended July 31, 2019 Beginning balance as of November 1, 2018 4,094,785 Restricted stock awards granted (124,800 ) Stock options exercised (170,039 ) Treasury stock repurchases 408,398 Balance at April 30, 2019 4,208,344 |
Other Income (Expense) (Tables)
Other Income (Expense) (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Non-operating Income (Expense) | 12. Other Income Other income, included under the caption "Other, net" on the accompanying condensed consolidated statements of income (loss), consisted of the following for the three and nine months ended July 31, 2019 and 2018 : Three Months Ended Nine Months Ended July 31, July 31, 2019 2018 2019 2018 (In thousands) Foreign currency transaction gains (losses) $ 101 $ (90 ) $ 75 $ 106 Foreign currency derivative gains (losses) 11 11 (8 ) (18 ) Pension service benefit 130 257 328 734 Interest income 15 14 59 54 Other 2 3 7 8 Other, net $ 259 $ 195 $ 461 $ 884 Other income for the three and nine months ended July 31, 2018 has been updated to reflect the adoption of Accounting Standards Update 2017-07. For further information, see Note 15, "New Accounting Guidance". |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Segment information for the three and nine months ended July 31, 2019 and 2018 , and total assets as of July 31, 2019 and October 31, 2018 are summarized in the following table (in thousands): NA Fenestration (1) EU Fenestration (1) NA Cabinet Comp. Unallocated Corp. & Other Total Three Months Ended July 31, 2019 Net sales $ 136,259 $ 44,326 $ 58,689 $ (813 ) $ 238,461 Depreciation and amortization 6,578 2,213 3,258 133 12,182 Operating income (loss) 15,944 5,367 1,558 (3,759 ) 19,110 Capital expenditures 2,299 485 942 236 3,962 Three Months Ended July 31, 2018 Net sales $ 133,397 $ 42,661 $ 65,114 $ (1,351 ) $ 239,821 Depreciation and amortization 6,741 2,352 3,432 166 12,691 Operating income (loss) (2) 12,712 4,177 3,623 (3,682 ) 16,830 Capital expenditures 3,391 698 1,792 4 5,885 Nine Months Ended July 31, 2019 Net sales $ 360,654 $ 121,203 $ 175,377 $ (3,762 ) $ 653,472 Depreciation and amortization 20,208 6,669 9,902 379 37,158 Operating income (loss) 24,048 12,951 (29,361 ) (10,341 ) (2,703 ) Capital expenditures 8,672 4,825 3,251 236 16,984 Nine Months Ended July 31, 2018 Net sales $ 350,280 $ 115,481 $ 183,705 $ (3,767 ) $ 645,699 Depreciation and amortization 20,561 7,328 10,957 428 39,274 Operating income (loss) 19,960 8,094 1,129 (5,183 ) 24,000 Capital expenditures 10,855 4,562 5,563 118 21,098 As of July 31, 2019 Total assets $ 235,443 $ 203,696 $ 236,236 $ 4,689 $ 680,064 As of October 31, 2018 Total assets (3) $ 239,915 $ 214,704 $ 272,313 $ 16,282 $ 743,214 |
Changes in the Carrying Amount of Goodwill | The change in the carrying amount of goodwill for the nine months ended July 31, 2019 was as follows: Nine Months Ended July 31, 2019 (In thousands) Beginning balance as of November 1, 2018 $ 219,627 Goodwill impairment charge (29,978 ) Foreign currency translation adjustment (2,820 ) Balance as of the end of the period $ 186,829 The following table summarizes the change in the carrying amount of goodwill by reportable business segment for the nine months ended July 31, 2019 (in thousands): NA Fenestration EU Fenestration NA Cabinet Comp. Unallocated Corp. & Other Total Balance as of October 31, 2018 $ 38,712 $ 67,168 $ 113,747 $ — $ 219,627 Asset impairment charge — — (29,978 ) — (29,978 ) Foreign currency translation adjustment — (2,820 ) — — (2,820 ) Balance as of July 31, 2019 $ 38,712 $ 64,348 $ 83,769 $ — $ 186,829 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | We did not allocate non-operating loss or income tax benefit to the reportable segments. The following table reconciles operating income (loss) as reported above to net income (loss) for the three and nine months ended July 31, 2019 and 2018 : Three Months Ended Nine Months Ended July 31, July 31, 2019 2018 2019 2018 (In thousands) Operating income (loss) $ 19,110 $ 16,830 $ (2,703 ) $ 24,000 Interest expense (2,570 ) (2,641 ) (7,614 ) (7,584 ) Other, net 259 195 461 884 Income tax (expense) benefit (4,958 ) (3,631 ) (5,926 ) 2,536 Net income (loss) $ 11,841 $ 10,753 $ (15,782 ) $ 19,836 |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share (Tables) | 9 Months Ended |
Jul. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Basic and diluted earnings (loss) per share for the three and nine months ended July 31, 2019 and 2018 were calculated as follows (in thousands, except per share data): Net Income Weighted Average Shares Per Share Three Months Ended July 31, 2019 Basic earnings per common share $ 11,841 32,899 $ 0.36 Effect of dilutive securities: Stock options 77 Restricted stock awards 118 Performance shares 68 Diluted earnings per common share $ 11,841 33,162 $ 0.36 Three Months Ended July 31, 2018 Basic earnings per common share $ 10,753 34,840 $ 0.31 Effect of dilutive securities: Stock options 171 Restricted stock awards 109 Diluted earnings per common share $ 10,753 35,120 $ 0.31 Nine Months Ended July 31, 2019 Basic loss per common share $ (15,782 ) 32,984 $ (0.48 ) Diluted loss per common share (1) $ (15,782 ) 32,984 $ (0.48 ) Nine Months Ended July 31, 2018 Basic earnings per common share $ 19,836 34,766 $ 0.57 Effect of dilutive securities: Stock options 226 Restricted stock awards 133 Diluted earnings per common share $ 19,836 35,125 $ 0.56 (1) The computation of diluted earnings per share excludes outstanding stock options and other common stock equivalents when their inclusion would be anti-dilutive. This is always the case when an entity incurs a net loss. During the nine months ended July 31, 2019, 30,844 shares of common stock equivalent and 120,927 shares of restricted stock were excluded from the computation of diluted earnings per share. In addition, 68,107 potentially dilutive contingent shares related to performance share awards for each of the nine months ended July 31, 2019 were excluded. |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Oct. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||
Accounts receivable, net of allowance for doubtful accounts of $502 and $325 | $ 82,302 | $ 82,302 | $ 84,014 | ||
Restructuring costs | $ 100 | $ 200 | $ 300 | $ 900 |
Nature of Operations and Basi_4
Nature of Operations and Basis of Presentation Summary of Product Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Product Information [Line Items] | ||||
Total sales | $ 238,461 | $ 239,821 | $ 653,472 | $ 645,699 |
Operating Segments | NA Engineered Components | ||||
Product Information [Line Items] | ||||
Total sales | 136,259 | 133,397 | 360,654 | 350,280 |
Operating Segments | NA Engineered Components | International [Member] | Non-fenestration [Member] | ||||
Product Information [Line Items] | ||||
Total sales | 5,624 | 3,957 | 12,381 | 11,304 |
Operating Segments | NA Engineered Components | International [Member] | Fenestration [Member] | ||||
Product Information [Line Items] | ||||
Total sales | 7,172 | 11,851 | 23,474 | 27,758 |
Operating Segments | NA Engineered Components | United States | Non-fenestration [Member] | ||||
Product Information [Line Items] | ||||
Total sales | 3,982 | 4,675 | 12,290 | 13,518 |
Operating Segments | NA Engineered Components | United States | Fenestration [Member] | ||||
Product Information [Line Items] | ||||
Total sales | 119,481 | 112,914 | 312,509 | 297,700 |
Operating Segments | EU Engineered Components | ||||
Product Information [Line Items] | ||||
Total sales | 44,326 | 42,661 | 121,203 | 115,481 |
Operating Segments | EU Engineered Components | International [Member] | Non-fenestration [Member] | ||||
Product Information [Line Items] | ||||
Total sales | 7,984 | 7,780 | 19,165 | 17,884 |
Operating Segments | EU Engineered Components | International [Member] | Fenestration [Member] | ||||
Product Information [Line Items] | ||||
Total sales | 36,342 | 34,881 | 102,038 | 97,597 |
Operating Segments | NA Cabinet Components | ||||
Product Information [Line Items] | ||||
Total sales | 58,689 | 65,114 | 175,377 | 183,705 |
Operating Segments | NA Cabinet Components | International [Member] | Non-fenestration [Member] | ||||
Product Information [Line Items] | ||||
Total sales | 616 | 621 | 1,774 | 1,658 |
Operating Segments | NA Cabinet Components | United States | Non-fenestration [Member] | ||||
Product Information [Line Items] | ||||
Total sales | 54,512 | 60,843 | 163,694 | 171,547 |
Operating Segments | NA Cabinet Components | United States | Fenestration [Member] | ||||
Product Information [Line Items] | ||||
Total sales | 3,561 | 3,650 | 9,909 | 10,500 |
Corporate Non-Segment | ||||
Product Information [Line Items] | ||||
Total sales | $ (813) | $ (1,351) | $ (3,762) | $ (3,767) |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Oct. 31, 2018 |
Inventories, net | $ 84,762 | $ 70,730 |
Deferred income taxes | 19,051 | 17,510 |
Retained earnings | 219,340 | 243,904 |
Inventory, Raw Materials and Supplies, Net of Reserves [Abstract] | ||
Raw materials | 42,415 | 41,584 |
Finished goods and work in process | 43,823 | 31,727 |
Supplies and other | 2,975 | 1,794 |
Total | 89,213 | 75,105 |
Less: Inventory reserves | 4,451 | 4,375 |
Inventories, net | $ 84,762 | 70,730 |
As reported before change to FIFO [Member] | ||
Inventories, net | 69,365 | |
Deferred Tax Liabilities, Net | 17,215 | |
Retained earnings | 242,834 | |
Inventory, Raw Materials and Supplies, Net of Reserves [Abstract] | ||
Inventories, net | 69,365 | |
Inventories [Member] | ||
Inventories, net | 1,365 | |
Deferred Tax Liabilities, Net | 295 | |
Retained earnings | 1,070 | |
Inventory, Raw Materials and Supplies, Net of Reserves [Abstract] | ||
Inventories, net | $ 1,365 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands | 9 Months Ended |
Jul. 31, 2019USD ($) | |
Goodwill [Line Items] | |
Goodwill, Impairment Loss | $ (29,978) |
Goodwill [Roll Forward] | |
Beginning balance | 219,627 |
Foreign currency translation adjustment | (2,820) |
Balance as of the end of the period | 186,829 |
NA Cabinet Components | |
Goodwill [Roll Forward] | |
Beginning balance | 113,700 |
Balance as of the end of the period | $ 83,700 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Oct. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying amount | $ 300 | ||||
Accumulated amortization | $ 120,364 | 120,364 | $ 109,646 | ||
Finite-Lived Intangible Assets, Gross | 228,984 | 228,984 | 231,565 | ||
Intangible assets amortization expense | 3,700 | $ 4,000 | 11,600 | $ 12,200 | |
Estimated Amortization Expense | |||||
2019 (remaining three months) | 3,689 | 3,689 | |||
2016 | 14,116 | 14,116 | |||
2017 | 12,396 | 12,396 | |||
2018 | 11,776 | 11,776 | |||
2019 | 11,028 | 11,028 | |||
Thereafter | 55,615 | 55,615 | |||
Total | 108,620 | 108,620 | 121,919 | ||
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Accumulated amortization | 66,879 | 66,879 | 59,332 | ||
Finite-Lived Intangible Assets, Gross | 151,616 | 151,616 | 153,704 | ||
Trademarks and trade names | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Accumulated amortization | 34,486 | 34,486 | 32,668 | ||
Finite-Lived Intangible Assets, Gross | 55,024 | 55,024 | 55,583 | ||
Patents And Other Technology [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Accumulated amortization | 18,999 | 18,999 | 17,646 | ||
Finite-Lived Intangible Assets, Gross | $ 22,344 | $ 22,344 | $ 22,278 |
Debt and Capital Lease Obliga_3
Debt and Capital Lease Obligations (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Oct. 31, 2018 | |
Debt Disclosure [Line Items] | ||||
Borrowings under credit facility | $ 66,500,000 | $ 33,500,000 | ||
Document Period End Date | Jul. 31, 2019 | |||
City of Richmond, Kentucky Industrial Building Revenue Bonds | $ 15,700,000 | |||
Capital lease obligations and other | 15,600,000 | |||
Deferred Finance Costs, Own-share Lending Arrangement, Issuance Costs, Net | (1,262,000) | $ (1,487,000) | ||
Total debt | 191,980,000 | 210,556,000 | ||
Less: Current maturities of long-term debt | 871,000 | 1,224,000 | ||
Long-term Debt | $ 191,109,000 | 209,332,000 | ||
Debt Instrument, Interest Rate During Period | 3.70% | 4.16% | ||
Repayments of Lines of Credit | $ 84,000,000 | $ 62,750,000 | ||
Capital Lease Obligations, Current | 1,000,000 | |||
Capital Leases in Property Plant and Equipment | 21,200,000 | |||
Capital leases in accumulated depreciation | 4,200,000 | |||
Warehouse Lease in Property Plant and Equipment | 16,600,000 | |||
Warehouse Lease in Accumulated Depreciation | 2,500,000 | |||
Debt Instrument, Unamortized Discount (Premium), Net | 1,300,000 | |||
Other assets | 8,183,000 | 9,255,000 | ||
Debt Disclosure [Abstract] | ||||
Credit Facility, amount available | 142,700,000 | |||
Letters of credit, outstanding | $ 4,800,000 | |||
Term Loan Facility [Member] | ||||
Debt Disclosure [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.99% | |||
Capital Lease Obligations | ||||
Debt Disclosure [Line Items] | ||||
Capital lease obligations and other | $ 15,742,000 | 17,043,000 | ||
Capital lease obligations | ||||
Debt Disclosure [Line Items] | ||||
Average interest rate | 3.60% | |||
Revolving Credit Facility [Member] | ||||
Debt Disclosure [Line Items] | ||||
Revolving Credit Facility | $ 177,500,000 | $ 195,000,000 | ||
2018 Credit Facility [Member] | ||||
Debt Disclosure [Line Items] | ||||
Revolving Credit Facility | 177,500,000 | |||
HLP [Member] | ||||
Debt Disclosure [Line Items] | ||||
Capital Lease Obligations, Noncurrent | 14,600,000 | |||
2018 Credit Facility [Member] | Line of Credit [Member] | ||||
Debt Disclosure [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity, Committed Amount | $ 325,000,000 | |||
Debt Instrument, Debt Default, Interest Accrual Rate | 2.00% | |||
Debt Instrument, Required Leverage Ratio | 0.0325 | |||
Debt Instrument, Limitation on Annual Dividend | $ 20,000,000 | |||
Debt Instrument, Maximum Fixed Charge Coverage Ratio | 2.25% | |||
Less Than One and One Half Leverage Ratio [Member] | 2018 Credit Facility [Member] | Line of Credit [Member] | ||||
Debt Disclosure [Line Items] | ||||
Commitment Fee Percentage | 0.20% | |||
Less Than One and One Half Leverage Ratio [Member] | Base Rate [Member] | 2018 Credit Facility [Member] | Line of Credit [Member] | ||||
Debt Disclosure [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |||
Less Than One and One Half Leverage Ratio [Member] | London Interbank Offered Rate (LIBOR) [Member] | 2018 Credit Facility [Member] | Line of Credit [Member] | ||||
Debt Disclosure [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||
Between One and One Half and Two and One Quarter Leverage Ratio [Member] | 2018 Credit Facility [Member] | Line of Credit [Member] | ||||
Debt Disclosure [Line Items] | ||||
Commitment Fee Percentage | 0.225% | |||
Between One and One Half and Two and One Quarter Leverage Ratio [Member] | Base Rate [Member] | 2018 Credit Facility [Member] | Line of Credit [Member] | ||||
Debt Disclosure [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||
Between One and One Half and Two and One Quarter Leverage Ratio [Member] | London Interbank Offered Rate (LIBOR) [Member] | 2018 Credit Facility [Member] | Line of Credit [Member] | ||||
Debt Disclosure [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||
Between Two and One Quarter and Three Leverage Ratio [Member] | 2018 Credit Facility [Member] | Line of Credit [Member] | ||||
Debt Disclosure [Line Items] | ||||
Commitment Fee Percentage | 0.25% | |||
Between Two and One Quarter and Three Leverage Ratio [Member] | Base Rate [Member] | 2018 Credit Facility [Member] | Line of Credit [Member] | ||||
Debt Disclosure [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||
Between Two and One Quarter and Three Leverage Ratio [Member] | London Interbank Offered Rate (LIBOR) [Member] | 2018 Credit Facility [Member] | Line of Credit [Member] | ||||
Debt Disclosure [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||
Greater Than Three Leverage Ratio [Member] | 2018 Credit Facility [Member] | Line of Credit [Member] | ||||
Debt Disclosure [Line Items] | ||||
Commitment Fee Percentage | 0.30% | |||
Greater Than Three Leverage Ratio [Member] | Base Rate [Member] | 2018 Credit Facility [Member] | Line of Credit [Member] | ||||
Debt Disclosure [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||
Greater Than Three Leverage Ratio [Member] | London Interbank Offered Rate (LIBOR) [Member] | 2018 Credit Facility [Member] | Line of Credit [Member] | ||||
Debt Disclosure [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% |
Retirement Plans (Detail)
Retirement Plans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Oct. 31, 2018 | |
Retirement Benefits [Abstract] | |||||
Defined benefit plan, contributions by employer | $ 800 | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 700 | $ 700 | |||
Supplemental benefit plan liability | 3,500 | 3,500 | 3,400 | ||
Deferred compensation liability | 3,700 | 3,700 | $ 3,500 | ||
Net periodic benefit cost: | |||||
Service cost | 907 | $ 960 | 2,722 | $ 2,932 | |
Interest cost | 364 | 279 | 1,092 | 847 | |
Expected return on plan assets | (494) | (543) | (1,483) | (1,630) | |
Amortization of net loss | 31 | 7 | 94 | 49 | |
Net periodic benefit cost | $ 808 | $ 703 | $ 2,425 | $ 2,198 |
Warranty Obligations (Detail)
Warranty Obligations (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Standard Product Warranty Accrual, Increase (Decrease) for Preexisting Warranties | $ (10) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Accrued warranty at beginning of period | 295 | |
Warranty costs paid | (15) | |
Accrued warranty at end of period | 270 | |
Total accrued warranty | $ 295 | $ 270 |
Less: Current portion of accrued warranty | 138 | |
Long-term portion of accrued warranty | $ 132 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Jan. 31, 2017 | Jul. 31, 2019 | Jul. 31, 2018 | Oct. 31, 2017 | |
Income Tax Disclosure | ||||
Document Period End Date | Jul. 31, 2019 | |||
Estimated annual effective tax rate (benefit) expense | (24.80%) | (23.70%) | ||
Remeasurement of Deferred Taxes, Impact of Tax Reform | $ 7.7 | |||
True Up of Accrued Taxes, Impact of Tax Reform | 0.3 | |||
Deemed Repatriation, Impact of Tax Reform | $ (0.6) | 1.2 | ||
Tax Cuts and Jobs Act of 2017, Excess Tax Benefits | $ 0.3 | $ 0.1 | ||
U.S. tax at statutory rate | 35.00% | 21.00% | 23.30% | 35.00% |
Tax Cuts and Jobs Act of 2017, GILTI and FDII | $ 1.4 | |||
State and local income tax | 3.40% | 2.80% | ||
Non-U.S. income tax | 0.50% | (0.70%) | ||
Other permanent differences | (3.50%) | (1.80%) | ||
Deferred rate impact of enactment of tax reform | 0.00% | (44.90%) | ||
Effective Income Tax Rate Reconciliation, Impact of GILTI and FDII | 3.40% | 0.00% | ||
Tax impact of stock based compensation | 3.40% | (0.80%) | ||
Impact of deemed repatriation | (5.90%) | 7.10% | ||
Return to actual adjustments | (2.30%) | (1.30%) | ||
Asset impairment charges | (73.30%) | 0.00% | ||
Effective tax rate | (60.10%) | (14.70%) | ||
Liability for uncertain tax positions | $ 0.6 | |||
Valuation allowance | 1.3 | |||
GERMANY | ||||
Income Tax Disclosure | ||||
Foreign earnings repatriated | $ 13.9 |
Contingencies (Details)
Contingencies (Details) $ in Millions | 9 Months Ended |
Jul. 31, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Loss Contingency, Receivable, Proceeds | $ 0.5 |
Derivative Instruments (Detail)
Derivative Instruments (Detail) € in Thousands, £ in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Jul. 31, 2019USD ($) | Jul. 31, 2018USD ($) | Jul. 31, 2019USD ($) | Jul. 31, 2018USD ($) | Jul. 31, 2019EUR (€) | Jul. 31, 2019GBP (£) | Oct. 31, 2018USD ($) | Oct. 31, 2018EUR (€) | Oct. 31, 2018GBP (£) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Foreign currency derivatives | $ 11 | $ 11 | $ (8) | $ (18) | |||||
Other, Net | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Foreign currency derivatives | 11 | $ 11 | (8) | $ (18) | |||||
Sell EUR, buy USD | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Derivatives, notional amount | 6 | 6 | $ 455 | ||||||
Foreign currency derivatives, fair value | 0 | 0 | 1 | ||||||
Sell CAD, buy USD | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Derivatives, notional amount | 378 | 378 | 229 | ||||||
Foreign currency derivatives, fair value | 1 | 1 | 0 | ||||||
Sell GBP, buy USD | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Derivatives, notional amount | £ | £ 105 | £ 22 | |||||||
Foreign currency derivatives, fair value | 3 | 3 | 0 | ||||||
Buy EUR, sell GBP | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Derivatives, notional amount | € | € 72 | € 34 | |||||||
Foreign currency derivatives, fair value | 1 | 1 | 0 | ||||||
Buy GBP, Sell EUR [Member] | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Derivatives, notional amount | € | 2 | € 0 | |||||||
Foreign currency derivatives, fair value | € | € 0 | ||||||||
Buy USD, Sell EUR | |||||||||
Derivatives, Fair Value [Line Items] | |||||||||
Derivatives, notional amount | 6 | 6 | 12 | ||||||
Foreign currency derivatives, fair value | $ 0 | $ 0 | 0 | ||||||
Prepaid and Other Current Assets | |||||||||
Derivatives [Line Items] | |||||||||
Foreign currency derivatives, asset | $ 100 |
Fair Value Measurement of Ass_2
Fair Value Measurement of Assets and Liabilities (Details) $ in Millions | Jul. 31, 2019USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Debt Instrument, Unamortized Discount (Premium), Net | $ 1.3 |
Fair Value, Inputs, Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Foreign currency derivatives, asset | $ 0.1 |
Stock Based Compensation (Detai
Stock Based Compensation (Detail) | 9 Months Ended |
Jul. 31, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Document Period End Date | Jul. 31, 2019 |
Number of shares authorized, originally | 7,650,000 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Awards (Details) - Restricted Stock Awards (RSAs) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Number of Shares | ||
Non-vested at beginning of the period (in shares) | 217,200 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 124,800 | |
Cancelled (in shares) | (42,500) | |
Vested (in shares) | (69,400) | |
Non-vested at end of the period (in shares) | 230,100 | |
Weighted Average Grant Date Fair Value per Share | ||
Non-vested at beginning of the period (in usd per share) | $ 19.76 | |
Granted (in usd per share) | 13.78 | |
Cancelled (in usd per share) | 17.87 | |
Vested (in usd per share) | 19.19 | |
Non-vested at end of the period (in usd per share) | $ 17.02 | |
Vesting period | 3 years | |
Fair value of restricted stock awards vested | $ 1.3 | $ 2.3 |
Unrecognized compensation cost - non vested restricted stock awards | $ 1.9 | |
Weighted-average period over which unrecognized cost is expected to be recognized | 1 year 10 months 24 days |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) - USD ($) | 9 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Stock Options, [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 1,753,656 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (170,039) | |
Forfeited/Expired (in shares) | (23,000) | |
Outstanding at end of period (in shares) | 1,560,617 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 1,560,617 | |
Exercisable at end of period (in shares) | 1,479,145 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of period (in usd per share) | $ 18.47 | |
Granted (in usd per share) | 0 | |
Exercised (in usd per share) | 15.94 | |
Forfeited/Expired (in usd per share) | 19.11 | |
Outstanding at end of period (in usd per share) | 18.73 | |
Vested or expected to vest at end of period (in usd per share) | 18.73 | |
Exercisable at end of period (in usd per share) | $ 18.69 | |
Weighted Average Remaining Contractual Life | ||
Outstanding at end of period | 4 years 1 month 6 days | |
Vested or expected to vest at end of period | 4 years 1 month 6 days | |
Exercisable at end of period | 3 years 10 months 24 days | |
Aggregate Intrinsic Value | ||
Outstanding at end of period | $ 1,211,000 | |
Vested or expected to vest at end of period | 1,211,000 | |
Exercisable at end of period | $ 1,211,000 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Total intrinsic value of options exercised | $ 300,000 | $ 2,000,000 |
Fair value of stock options vested | $ 1,100,000 | $ 1,500,000 |
Stock-Based Compensation - Re_2
Stock-Based Compensation - Restricted Stock Units (Details) - USD ($) | 9 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 29,065 | 18,050 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 15.29 | $ 21.85 |
Restricted Stock or Unit Expense | $ 400,000 | |
Vesting period | 3 years | |
Key Employee Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 4,616 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 16.70 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Share Awards (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 05, 2018 | Dec. 07, 2017 | Nov. 30, 2016 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
2013 Performance Shares Vested | 139,164 | |||||
January 2016 Performance Shares Probable to Vest | 4,300 | |||||
Earnings Per Share, Basic and Diluted | $ 0 | $ 20.70 | $ 19.45 | |||
Relative Total Share Return | 0 | 21.81 | 26.61 | |||
Return On Net Assets | $ 13.63 | $ 0 | $ 0 | |||
Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Performance shares settled in cash | 50.00% | |||||
Performance shares settled in stock | 50.00% | |||||
Performance shares granted | 131,500 | 146,500 | 186,500 | |||
Performance shares forfeited | 18,100 | 33,208 | 42,230 | |||
Performance shares compensation expense | $ 0.4 | $ 0.5 | $ 1.2 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 68,107 | |||||
Performance Shares | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance shares vesting percentage maximum | 0.00% | |||||
Performance Shares | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance shares vesting percentage maximum | 200.00% |
Stock-Based Compensation - Pe_2
Stock-Based Compensation - Performance Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 05, 2018 | Dec. 07, 2017 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 |
Key Employee Restricted Stock Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in usd per share) | $ 16.70 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 4,616 | |||||
Performance Restricted Stock Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance Restricted Stock Units Granted | 89,200 | 78,200 | ||||
Granted (in usd per share) | $ 13.63 | $ 17.76 | ||||
Performance restricted stock units shares forfeited | 13,800 | 17,754 | ||||
Allocated Share-based Compensation Expense | $ 0.2 | $ 0.1 | $ 0.6 | $ 0.2 | ||
Performance Restricted Stock Units [Member] | Level 1 [Member] | A-TSR greater than or equal to 50% [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance restricted stock units vesting percentage maximum | 150.00% | |||||
Performance Restricted Stock Units [Member] | Level 2 [Member] | A-TSR less than 50% and greater than or equal to 20% [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance restricted stock units vesting percentage maximum | 100.00% | |||||
Performance Restricted Stock Units [Member] | Level 3 [Member] | A-TSR less than 20% and greater than or equal to -20% [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance restricted stock units vesting percentage maximum | 50.00% | |||||
Performance Restricted Stock Units [Member] | Level 4 [Member] | A-TSR less than -20% [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance restricted stock units vesting percentage maximum | 0.00% | |||||
Performance Restricted Stock Units [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance restricted stock units vesting percentage maximum | 0.00% | |||||
Performance Restricted Stock Units [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance restricted stock units vesting percentage maximum | 150.00% |
Stock-Based Compensation - Trea
Stock-Based Compensation - Treasury Shares (Details) $ in Millions | 9 Months Ended |
Jul. 31, 2019USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Document Period End Date | Jul. 31, 2019 |
Deficiency of stock option proceeds recorded to retained earnings | $ | $ 0.8 |
Treasury Stock [Abstract] | |
Beginning balance as of November 1, 2018 | 4,094,785 |
Shares, Issued | (170,039) |
Stock Repurchased During Period, Shares | 408,398 |
Balance at April 30, 2019 | 4,208,344 |
Restricted Stock Awards (RSAs) | |
Treasury Stock [Abstract] | |
Restricted stock awards granted | (124,800) |
Other Income (Expense) (Detail)
Other Income (Expense) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Other Income and Expenses [Abstract] | ||||
Foreign currency transaction gains (losses) | $ 101 | $ (90) | $ 75 | $ 106 |
Foreign currency derivative gains (losses) | 11 | 11 | (8) | (18) |
Pension Service Benefit | 130 | 257 | 328 | 734 |
Interest income | 15 | 14 | 59 | 54 |
Other | 2 | 3 | 7 | 8 |
Other, net | $ 259 | $ 195 | $ 461 | $ 884 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2019USD ($) | Jul. 31, 2018USD ($) | Jul. 31, 2019USD ($)segment | Jul. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | 3 | |||
Allocated corporate general and administrative expense | $ | $ 4.8 | $ 4.1 | $ 14.6 | $ 13.2 |
Operating Segments | NA Engineered Components | ||||
Segment Reporting Information [Line Items] | ||||
Number of operating segments | 3 |
Segment Information Segment Rep
Segment Information Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Oct. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 238,461 | $ 239,821 | $ 653,472 | $ 645,699 | |
Reduction in corporate allocation | 1,200 | 2,100 | |||
General and Administrative Expense | 4,800 | 4,100 | 14,600 | 13,200 | |
Depreciation and amortization | 12,182 | 12,691 | 37,158 | 39,274 | |
Operating income (loss) | 19,110 | 16,830 | (2,703) | 24,000 | |
Capital expenditures | 3,962 | 5,885 | 16,984 | 21,098 | |
Total assets | 680,064 | 680,064 | $ 743,214 | ||
Operating Segments | NA Engineered Components | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 136,259 | 133,397 | 360,654 | 350,280 | |
Depreciation and amortization | 6,578 | 6,741 | 20,208 | 20,561 | |
Operating income (loss) | 15,944 | 12,712 | 24,048 | 19,960 | |
Capital expenditures | 2,299 | 3,391 | 8,672 | 10,855 | |
Total assets | 235,443 | 235,443 | 239,915 | ||
Operating Segments | EU Engineered Components | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 44,326 | 42,661 | 121,203 | 115,481 | |
Depreciation and amortization | 2,213 | 2,352 | 6,669 | 7,328 | |
Operating income (loss) | 5,367 | 4,177 | 12,951 | 8,094 | |
Capital expenditures | 485 | 698 | 4,825 | 4,562 | |
Total assets | 203,696 | 203,696 | 214,704 | ||
Operating Segments | NA Cabinet Components | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 58,689 | 65,114 | 175,377 | 183,705 | |
Depreciation and amortization | 3,258 | 3,432 | 9,902 | 10,957 | |
Operating income (loss) | 1,558 | 3,623 | (29,361) | 1,129 | |
Capital expenditures | 942 | 1,792 | 3,251 | 5,563 | |
Total assets | 236,236 | 236,236 | 272,313 | ||
Corporate Non-Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (813) | (1,351) | (3,762) | (3,767) | |
Depreciation and amortization | 133 | 166 | 379 | 428 | |
Operating income (loss) | (3,759) | (3,682) | (10,341) | (5,183) | |
Capital expenditures | 236 | $ 4 | 236 | $ 118 | |
Total assets | $ 4,689 | $ 4,689 | $ 16,282 |
Segment Information Goodwill by
Segment Information Goodwill by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Goodwill [Line Items] | ||||
Asset impairment charges | $ 0 | $ 0 | $ (29,978) | $ 0 |
Beginning balance | 219,627 | |||
Foreign currency translation adjustment | (2,820) | |||
Balance as of the end of the period | 186,829 | 186,829 | ||
NA Cabinet Components | ||||
Goodwill [Line Items] | ||||
Asset impairment charges | (29,978) | |||
Beginning balance | 113,700 | |||
Balance as of the end of the period | 83,700 | 83,700 | ||
Operating Segments | NA Engineered Components | ||||
Goodwill [Line Items] | ||||
Beginning balance | 38,712 | |||
Foreign currency translation adjustment | 0 | |||
Balance as of the end of the period | 38,712 | 38,712 | ||
Operating Segments | EU Engineered Components | ||||
Goodwill [Line Items] | ||||
Beginning balance | 67,168 | |||
Balance as of the end of the period | 64,348 | 64,348 | ||
Operating Segments | NA Cabinet Components | ||||
Goodwill [Line Items] | ||||
Beginning balance | 113,747 | |||
Foreign currency translation adjustment | 0 | |||
Balance as of the end of the period | 83,769 | 83,769 | ||
Corporate Non-Segment | ||||
Goodwill [Line Items] | ||||
Beginning balance | 0 | |||
Foreign currency translation adjustment | 0 | |||
Balance as of the end of the period | $ 0 | $ 0 |
Segment Information Reconcillia
Segment Information Reconcilliation of Operating Loss to Net Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Segment Reporting [Abstract] | ||||||||
Operating loss | $ 19,110 | $ 16,830 | $ (2,703) | $ 24,000 | ||||
Interest expense | (2,570) | (2,641) | (7,614) | (7,584) | ||||
Other, net | 259 | 195 | 461 | 884 | ||||
Income tax (expense) benefit | (4,958) | (3,631) | (5,926) | 2,536 | ||||
Net Income (Loss) | $ 11,841 | $ (23,974) | $ (3,649) | $ 10,753 | $ 4,136 | $ 4,947 | $ (15,782) | $ 19,836 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | Dec. 05, 2018 | Dec. 07, 2017 | Nov. 30, 2016 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 |
Earnings Per Share Disclosure [Line Items] | |||||||
Basic earnings per common share | $ 11,841 | $ 10,753 | $ (15,782) | $ 19,836 | |||
Diluted earnings per common share | $ 11,841 | $ 10,753 | $ (15,782) | $ 19,836 | |||
Basic (in shares) | 32,899,000 | 34,840,000 | 32,984,000 | 34,766,000 | |||
Earnings Per Share, Basic | $ (0.36) | $ (0.31) | $ 0.48 | $ (0.57) | |||
Diluted (in shares) | 33,162,000 | 35,120,000 | 32,984,000 | 35,125,000 | |||
Earnings Per Share, Diluted | $ 0.36 | $ 0.31 | $ (0.48) | $ 0.56 | |||
Earnings Per Share, Basic and Diluted | $ 0 | $ 20.70 | $ 19.45 | ||||
Antidilutive securities (in shares) | 1,155,941 | 1,015,946 | 1,419,408 | 972,606 | |||
Earnings Per Share, Diluted | $ 0.36 | $ 0.31 | $ (0.48) | $ 0.56 | |||
Stock Options | |||||||
Earnings Per Share Disclosure [Line Items] | |||||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 77,000 | 171,000 | 30,844 | 226,000 | |||
Restricted Stock [Member] | |||||||
Earnings Per Share Disclosure [Line Items] | |||||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 118,000 | 109,000 | 120,927 | 133,000 | |||
Performance Shares | |||||||
Earnings Per Share Disclosure [Line Items] | |||||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 68,000 | 68,107 |
New Accounting Guidance Adopt_2
New Accounting Guidance Adopted (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Cost of sales (excluding depreciation and amortization) | $ 181,357 | $ 185,811 | $ 511,292 | $ 509,357 |
Selling, general and administrative | 25,718 | 24,246 | $ 77,466 | 72,217 |
Inventories [Member] | ||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Cost of sales (excluding depreciation and amortization) | $ 200 | 600 | ||
Selling, general and administrative | $ 100 | $ 200 |