Cover
Cover - USD ($) | 12 Months Ended | ||
Oct. 31, 2020 | Dec. 04, 2020 | Apr. 30, 2020 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Oct. 31, 2020 | ||
Current Fiscal Year End Date | --10-31 | ||
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, $0.01 par value | ||
Trading Symbol | NX | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 403,851,329 | ||
Entity Common Stock, Shares Outstanding | 32,828,337 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001423221 | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive Proxy Statement for its 2021 Annual Meeting of Stockholders to be filed with the Commission within 120 days of October 31, 2020 are incorporated herein by reference in Part III of this Annual Report on Form 10-K. | ||
ICFR Auditor Attestation Flag | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Oct. 31, 2020 | Oct. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 51,621,000 | $ 30,868,000 |
Accounts receivable, net of allowance for doubtful accounts of $161 and $393 | 88,287,000 | 82,946,000 |
Inventories, net | 61,181,000 | 67,159,000 |
Prepaid and other current assets | 6,217,000 | 9,353,000 |
Total current assets | 207,306,000 | 190,326,000 |
Property, plant and equipment, net of accumulated depreciation of $340,144 and $317,568 | 184,104,000 | 193,600,000 |
Operating lease right-of-use assets | 51,824,000 | 0 |
Goodwill | 146,154,000 | 145,563,000 |
Intangible assets, net | 93,068,000 | 107,297,000 |
Other assets | 9,129,000 | 8,324,000 |
Total assets | 691,585,000 | 645,110,000 |
Current liabilities: | ||
Accounts payable | 77,335,000 | 63,604,000 |
Accrued liabilities | 38,289,000 | 39,221,000 |
Income taxes payable | 6,465,000 | 6,183,000 |
Current maturities of long-term debt | 692,000 | 746,000 |
Current operating lease liabilities | 7,459,000 | 0 |
Total current liabilities | 130,240,000 | 109,754,000 |
Long-term debt | 116,728,000 | 156,414,000 |
Noncurrent operating lease liabilities | 44,873,000 | 0 |
Deferred pension and postretirement benefits | 10,923,000 | 13,322,000 |
Deferred income taxes | 19,116,000 | 19,363,000 |
Liability for uncertain tax positions | 522,000 | 556,000 |
Other liabilities | 13,424,000 | 15,514,000 |
Total liabilities | 335,826,000 | 314,923,000 |
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 37,296,166 and 37,370,402 respectively; outstanding 32,804,737 and 33,021,789, respectively | 373,000 | 374,000 |
Additional paid-in-capital | 253,458,000 | 254,673,000 |
Retained earnings | 213,517,000 | 185,703,000 |
Accumulated other comprehensive loss | (33,024,000) | (33,817,000) |
Less: Treasury stock at cost, 4,491,429 and 4,348,613 shares, respectively | (78,565,000) | (76,746,000) |
Total stockholders’ equity | 355,759,000 | 330,187,000 |
Total liabilities and stockholders' equity | $ 691,585,000 | $ 645,110,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 161 | $ 393 |
Accumulated Depreciation of Property, Plant, and Equipment | $ 340,144 | $ 317,568 |
Preferred stock, par value (usd per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock, shares, issued (in shares) | 37,296,166 | 37,370,402 |
Common stock, shares, outstanding (in shares) | 32,804,737 | 33,021,789 |
Treasury shares (in shares) | 4,348,613 | 4,491,429 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 851,573 | $ 893,841 | $ 889,785 |
Cost and expenses: | |||
Cost of sales (excluding depreciation and amortization) | 658,750 | 694,420 | 697,022 |
Selling, general and administrative | 89,707 | 101,292 | 103,758 |
Restructuring charges | 622 | 370 | 1,486 |
Depreciation and amortization | 47,229 | 49,586 | 51,822 |
Asset impairment charges | 0 | 74,600 | 0 |
Operating income (loss) | 55,265 | (26,427) | 35,697 |
Non-operating income (expense): | |||
Interest expense | (5,245) | (9,643) | (11,100) |
Other, net | 280 | 116 | 1,156 |
Income (loss) before income taxes | 50,300 | (35,954) | 25,753 |
Income tax (expense) benefit | (11,804) | (10,776) | 800 |
Net income (loss) | $ 38,496 | $ (46,730) | $ 26,553 |
Earnings Per Share [Abstract] | |||
Basic earnings (loss) per common share | $ 1.18 | $ (1.42) | $ 0.77 |
Diluted earnings (loss) per common share | $ 1.17 | $ (1.42) | $ 0.76 |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 32,689 | 32,960 | 34,701 |
Diluted (in shares) | 32,821 | 32,960 | 35,025 |
Cash dividends paid per common share (usd per share) | $ 0.32 | $ 0.32 | $ 0.20 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 38,496 | $ (46,730) | $ 26,553 |
Foreign currency translation adjustments gain (loss) | 1,078 | 1,864 | (6,640) |
Change in pension from net unamortized (loss) gain (pretax) | (376) | (6,572) | 2,253 |
Change in pension from net unamortized (loss) gain tax benefit (expense) | 91 | 1,596 | (1,242) |
Total other comprehensive income (loss), net of tax | 793 | (3,112) | (5,629) |
Comprehensive income (loss) | $ 39,289 | $ (49,842) | $ 20,924 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Common stock, shares at Oct. 31, 2017 | 37,508,877 | |||||
Stockholders' equity, value at Oct. 31, 2017 | $ 407,692,000 | $ 375,000 | $ 255,719,000 | $ 226,549,000 | $ (25,076,000) | $ (49,875,000) |
Treasury shares (in shares) at Oct. 31, 2017 | (2,670,743) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 26,553,000 | (473,000) | 26,553,000 | $ 25,340 | ||
Foreign currency translation adjustment (net of taxes) | (6,640,000) | (6,640,000) | ||||
Change in pension from net unamortized gain | 1,011,000 | 1,011,000 | ||||
Common dividends ($0.16 per share) | (7,020,000) | (7,020,000) | ||||
Stock repurchased during period, shares (in shares) | (1,900,000) | |||||
Stock repurchased during period, value | 32,034,000 | $ 32,034,000 | ||||
Stock-based compensation activity: | ||||||
Expense related to stock-based compensation | 1,874,000 | 1,874,000 | ||||
Stock options exercised | $ 4,746,000 | (149,000) | (2,141,000) | $ 7,036,000 | ||
Stock options exercised (in shares) | 377,218 | 377,218 | ||||
Restricted stock awards granted | $ 0 | (1,371,000) | $ 1,371,000 | |||
Restricted stock awards granted (in shares) | 73,400 | |||||
Stock and Warrants Issued During Period, Value, Preferred Stock and Warrants | $ 473,000 | |||||
Recognition of unrecognized tax benefit | 0 | |||||
Other (in shares) | (75,060) | |||||
Other | (960,000) | $ (1,000) | (922,000) | (37,000) | ||
Common stock, shares at Oct. 31, 2018 | 37,433,817 | |||||
Stockholders' equity, value at Oct. 31, 2018 | 395,222,000 | $ 374,000 | 254,678,000 | 243,904,000 | (30,705,000) | $ (73,029,000) |
Treasury shares (in shares) at Oct. 31, 2018 | (4,094,785) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (46,730,000) | (46,730,000) | ||||
Foreign currency translation adjustment (net of taxes) | 1,864,000 | 1,864,000 | ||||
Change in pension from net unamortized gain | (4,976,000) | (4,976,000) | ||||
Common dividends ($0.16 per share) | $ (10,644,000) | (10,644,000) | ||||
Stock repurchased during period, shares (in shares) | (583,398) | (583,398) | ||||
Stock repurchased during period, value | $ 9,551,000 | $ 9,551,000 | ||||
Stock-based compensation activity: | ||||||
Expense related to stock-based compensation | 2,045,000 | 2,045,000 | ||||
Stock options exercised | $ 3,288,000 | $ 1,000 | (322,000) | $ 3,609,000 | ||
Stock options exercised (in shares) | 204,770 | 204,770 | ||||
Restricted stock awards granted | $ 0 | (1,720,000) | (505,000) | $ 2,225,000 | ||
Restricted stock awards granted (in shares) | 124,800 | |||||
Other (in shares) | (63,415) | |||||
Other | $ (331,000) | $ (1,000) | (330,000) | |||
Common stock, shares at Oct. 31, 2019 | 37,370,402 | 37,370,402 | ||||
Stockholders' equity, value at Oct. 31, 2019 | $ 330,187,000 | $ 374,000 | 254,673,000 | 185,703,000 | (33,817,000) | $ (76,746,000) |
Treasury shares (in shares) at Oct. 31, 2019 | (4,491,429) | (4,348,613) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | $ 38,496,000 | 38,496,000 | ||||
Foreign currency translation adjustment (net of taxes) | 1,078,000 | 1,078,000 | ||||
Change in pension from net unamortized gain | (285,000) | (285,000) | ||||
Common dividends ($0.16 per share) | $ (10,534,000) | (10,534,000) | ||||
Stock repurchased during period, shares (in shares) | (450,000) | (450,000) | ||||
Stock repurchased during period, value | $ 7,233,000 | $ 7,233,000 | ||||
Stock-based compensation activity: | ||||||
Expense related to stock-based compensation | 879,000 | 879,000 | ||||
Stock options exercised | $ 3,625,000 | 66,000 | $ (242,000) | $ 3,801,000 | ||
Stock options exercised (in shares) | 215,733 | 215,733 | ||||
Restricted stock awards granted | $ 0 | (1,212,000) | $ 1,118,000 | |||
Restricted stock awards granted (in shares) | 94,000 | 63,400 | ||||
Stock and Warrants Issued During Period, Value, Preferred Stock and Warrants | (495,000) | $ 28,051 | ||||
Recognition of unrecognized tax benefit | 0 | 495,000 | ||||
Other (in shares) | (74,236) | |||||
Other | $ (454,000) | $ (1,000) | (453,000) | |||
Common stock, shares at Oct. 31, 2020 | 37,296,166 | 37,296,166 | ||||
Stockholders' equity, value at Oct. 31, 2020 | $ 355,759,000 | $ 373,000 | $ 253,458,000 | $ 213,517,000 | $ (33,024,000) | $ (78,565,000) |
Treasury shares (in shares) at Oct. 31, 2020 | (4,348,613) | (4,491,429) |
Consolidated Statement of Sto_2
Consolidated Statement of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||
Change in pension from net unamortized (loss) gain tax benefit (expense) | $ 91 | $ 1,596 | $ (1,242) | ||||||||
Cash dividends paid per common share (usd per share) | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.32 | $ 0.32 | $ 0.20 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Operating activities: | |||
Net (loss) income | $ 38,496 | $ (46,730) | $ 26,553 |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||
Depreciation and amortization | 47,229 | 49,586 | 51,822 |
Loss (gain) on disposition of capital assets | 0 | 732 | (142) |
Stock-based compensation | 879 | 2,045 | 1,874 |
Deferred income tax | (189) | 3,260 | (5,556) |
Noncash charge for deferred loan costs and debt discount | 0 | 0 | 1,064 |
Asset impairment charges | 0 | 74,600 | 0 |
Other, net | 1,689 | 2,176 | 135 |
Changes in assets and liabilities, net of effects from acquisitions: | |||
(Increase) decrease in accounts receivable | (5,766) | 574 | (5,550) |
Decrease in inventory | 6,119 | 3,797 | 17,230 |
Decrease (increase) in other current assets | 2,896 | (2,014) | 217 |
Increase in accounts payable | 15,922 | 8,124 | 8,325 |
(Decrease) increase in accrued liabilities | (3,156) | (6,760) | 6,892 |
Increase in income taxes payable | 237 | 3,416 | 676 |
(Decrease) increase in deferred pension and postretirement benefits | (2,775) | 2,531 | 2,038 |
(Decrease) increase in other long-term liabilities | (236) | 513 | (523) |
Other, net | (549) | 522 | (444) |
Cash provided by operating activities | 100,796 | 96,372 | 104,611 |
Investing activities: | |||
Capital expenditures | (25,726) | (24,883) | (26,484) |
Proceeds from disposition of capital assets | 502 | 1,324 | 432 |
Cash used for investing activities | (25,224) | (23,559) | (26,052) |
Financing activities: | |||
Borrowings under credit facility | 114,500 | 83,500 | 268,500 |
Repayments of credit facility borrowings | (154,000) | (136,000) | (296,250) |
Debt issuance costs | 0 | 0 | (1,001) |
Repayments of other long-term debt | (1,027) | (1,526) | (1,798) |
Common stock dividends paid | (10,534) | (10,644) | (7,020) |
Issuance of common stock | 3,626 | 3,287 | 4,746 |
Payroll tax paid to settle shares forfeited upon vesting of stock | (454) | (330) | (960) |
Purchase of treasury stock | (7,233) | (9,551) | (32,034) |
Cash used for financing activities | (55,122) | (71,264) | (65,817) |
Effect of exchange rate changes on cash and cash equivalents | 303 | 316 | (1,194) |
Increase in cash and cash equivalents | 20,753 | 1,865 | 11,548 |
Cash and cash equivalents at beginning of period | 30,868 | 29,003 | 17,455 |
Cash and cash equivalents at end of period | $ 51,621 | $ 30,868 | $ 29,003 |
Nature of Operations, Basis of
Nature of Operations, Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Oct. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations, Basis of Presentation and Significant Accounting Policies | 1. Nature of Operations, Basis of Presentation and Significant Accounting Policies Nature of Operations Quanex Building Products Corporation is a component supplier to original equipment manufacturers (OEMs) in the building products industry. These components can be categorized as window and door (fenestration) components and kitchen and bath cabinet components. Examples of fenestration components include: (1) energy-efficient flexible insulating glass spacers, (2) extruded vinyl profiles, (3) window and door screens, and (4) precision-formed metal and wood products. We also manufacture cabinet doors and other components for OEMs in the kitchen and bathroom cabinet industry. In addition, we provide certain other non-fenestration components and products, which include solar panel sealants, trim moldings, vinyl decking, fencing, water retention barriers, and conservatory roof components. We have organized our business into three reportable business segments: (1) North American Fenestration (NA Fenestration), (2) European Fenestration (EU Fenestration) and (3) North American Cabinet Components (NA Cabinet Components). For additional discussion of our reportable business segments, see Note 16, "Segment Information." We use low-cost production processes and engineering expertise to provide our customers with specialized products for their specific window, door, and cabinet applications. We believe these capabilities provide us with unique competitive advantages. We serve a primary customer base in North America and the United Kingdom (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. Basis of Presentation and Principles of Consolidation Our consolidated financial statements have been prepared by us in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). We consolidate our wholly-owned subsidiaries and eliminate intercompany sales and transactions. We have no cost or equity investments in companies that are not wholly-owned. In our opinion, these audited financial statements contain all adjustments necessary to fairly present our financial position, results of operations and cash flows for the periods presented. Use of Estimates In preparing financial statements, we make informed judgments and estimates that affect the reported amounts of assets and liabilities as of the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. We review our estimates on an ongoing basis, including those related to impairment of long lived assets and goodwill, pension and retirement liabilities, contingencies and income taxes. Changes in facts and circumstances may result in revised estimates and actual results may differ from these estimates. During the year ended October 31, 2018, we recorded a change in estimate related to certain assets involved in restructuring activities, as more fully described under the caption "Restructuring." A summary of our significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements follows: Revenue from Contracts with Customers Revenue recognition We recognize revenue that reflects the consideration we expect to receive for product sales upon transfer to customers. Revenue for product sales is recognized when control of the promised products is transferred to our customers, and we are entitled to consideration in exchange for such transfer. 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 products, 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 cost s We account for shipping and handling services as fulfillment services; accordingly, freight revenue is 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 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. Disaggregation of revenue We produce a wide variety of products that are used in the fenestration industry, including insulating glass 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 years ended October 31, 2020, 2019, and 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 16, “Segment Information." Year Ended October 31, 2020 2019 2018 (in thousands) NA Fenestration: United States - fenestration $ 427,616 $ 439,536 $ 412,000 International - fenestration 28,585 31,106 39,309 United States - non-fenestration 19,279 17,061 18,211 International - non-fenestration 7,935 16,134 15,846 $ 483,415 $ 503,837 $ 485,366 EU Fenestration: International - fenestration 134,432 139,638 135,415 International - non-fenestration 26,622 25,359 24,558 $ 161,054 $ 164,997 $ 159,973 NA Cabinet Components: United States - fenestration $ 11,842 $ 13,144 $ 14,596 United States - non-fenestration 196,479 214,211 232,990 International - non-fenestration 1,778 2,289 2,227 $ 210,099 $ 229,644 $ 249,813 Unallocated Corporate & Other: Eliminations $ (2,995) $ (4,637) $ (5,367) $ (2,995) $ (4,637) $ (5,367) Net sales $ 851,573 $ 893,841 $ 889,785 Cash and Cash Equivalents Cash equivalents include all highly liquid investments with an original maturity of three months or less. Such securities with an original maturity which exceeds three months are deemed to be short-term investments. We maintain cash and cash equivalents at several financial institutions, which at times may not be federally insured or may exceed federally insured limits. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risks on such accounts. Concentration of Credit Risk and Allowance for Doubtful Accounts Certain of our businesses or product lines are largely dependent on a relatively few large customers. Although we believe we have an extensive customer base, the loss of one of these large customers or if such customers were to incur a prolonged period of decline in business, our financial condition and results of operations could be adversely affected. For the year ended October 31, 2020, one customer provided more than 10% of our consolidated net sales. For the years ending October 31, 2019 and 2018, no customers provided more than 10% of our consolidated net sales. We have established an allowance for doubtful accounts to estimate the risk of loss associated with our accounts receivable balances. Our policy for determining the allowance is based on factors that affect collectability, including: (a) historical trends of write-offs, recoveries and credit losses; (b) the credit quality of our customers; and (c) projected economic and market conditions. We believe our allowance is adequate to absorb any known or probable losses as of October 31, 2020. Business Combinations We apply the acquisition method of accounting for business combinations in accordance with U.S. GAAP, which requires us to make use of estimates and judgments to allocate the purchase price paid for acquisitions to the fair value of the assets and liabilities acquired. We account for contingent assets and liabilities at fair value on the acquisition date, and record changes to fair value associated with these assets and liabilities as a period cost as incurred. We use established valuation techniques and engage reputable valuation specialists to assist us with these valuations. Inventory We record inventory at the lower of cost or net realizable value. Inventories are valued using the first-in first-out (FIFO) method. Fixed costs related to excess manufacturing capacity are evaluated and expensed in the period, to insure that inventory is properly capitalized. Inventory quantities are regularly reviewed and provisions for excess or obsolete inventory are recorded primarily based on our forecast of future demand and our estimates regarding current and future market conditions. Significant unanticipated variances to our forecasts could require a change in the provision for excess or obsolete inventory, resulting in a charge to net income during the period of the change. Long-Lived Assets Property, Plant and Equipment and Intangible Assets with Defined Lives We make judgments and estimates related to the carrying value of property, plant and equipment, intangible assets with defined lives, and long-lived assets, which include determining when to capitalize costs, the depreciation and amortization methods to use and the useful lives of these assets. We evaluate these assets for impairment when there are indicators that the carrying values of these assets might not be recoverable. Such indicators of impairment may include changes in technology, significant market fluctuations, historical losses or loss of a significant customer, or other changes in circumstance that could affect the assets’ ability to generate future cash flows. When we evaluate these assets for impairment, we compare the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset to its carrying value. If the carrying value exceeds the sum of the undiscounted cash flows, and there is no alternative use for the asset, we determine that the asset is impaired. To measure the impairment charge, we compare the carrying amount of the long-lived asset to its fair value, as determined by quoted market prices in active markets, if available, or by discounting the projected future cash flows. This calculation of fair value requires us to develop and employ long-term forecasts of future operating results related to these assets. These forecasts are based on assumptions about demand for our products and future market conditions. Future events and unanticipated changes to these assumptions could require a provision for impairment, resulting in a charge to net income during the period of the change. We monitor relevant circumstances, including industry trends, general economic conditions, and the potential impact that such circumstances might have on the valuation of our identifiable intangible assets with finite lives. Events and changes in circumstance that may cause a triggering event and necessitate such a review include, but are not limited to: a decrease in sales for certain customers, improvements or changes in technology, and/or a decision to discontinue the use of a trademark or trade name, or allow a patent to lapse. Such events could negatively impact the fair value of our identifiable intangible assets. In such circumstances, we may evaluate the underlying assumptions and estimates made by us in order to assess the appropriate valuation of these identifiable intangible assets and compare to the carrying value of the assets. We may be required to write down these identifiable intangible assets and record a non-cash impairment charge. When we originally value our intangible assets, we use a variety of techniques to establish the carrying value of the assets, including the relief from royalty method, excess current year earnings method and income method. Changes in market conditions throughout 2019 impacted our long-term forecasts of future operating results with regard to the reduction of significant sales volume to a large customer of our United States (U.S.) vinyl operations, and lower-than-expected operating performance of our NA Cabinet Components business. The World Health Organization's (WHO), declaration of COVID-19 as a global pandemic also created significant changes in market conditions throughout 2020. We determined that these conditions were indicators of triggering events which necessitated an evaluation of certain long-term assets used in these businesses for potential impairment. We compared the projected undiscounted cash flows we expected to realize associated with these assets over the remaining useful lives of the primary operating assets to the net book value of the long-term assets, including goodwill, and determined that these assets were not impaired. Therefore, we did not record an impairment charge related to property, plant and equipment or intangible assets with defined lives during the years ended October 31, 2020 and 2019. There were no indicators of triggering events noted for the year ended October 31, 2018. Software development costs, including costs incurred to purchase third-party software, are capitalized when we have determined that the technology is capable of meeting our performance requirements, and we have authorized funding for the project. We cease capitalization of software costs when the software is substantially complete and is ready for its intended use. The software is then amortized over its estimated useful life. When events or circumstances indicate the carrying value of internal use software might not be recoverable, we assess the recoverability of these assets by comparing the carrying value of the asset to the undiscounted future cash flows expected to be generated from the asset’s use, consistent with the methodology to test other property, plant and equipment for impairment. Property, plant and equipment is stated at cost and is depreciated using the straight-line method over the estimated useful lives of the assets. We capitalize betterments which extend the useful lives or significantly improve the operational efficiency of assets. We expense repair and maintenance costs as incurred. The estimated useful lives of our primary asset categories at October 31, 2020 were as follows: Useful Life (in Years) Land improvements 7 to 25 Buildings 25 to 40 Building improvements 5 to 20 Machinery and equipment 2 to 15 Leasehold improvements are depreciated over the shorter of their estimated useful lives or the term of the lease. Goodwill We use the acquisition method to account for business combinations and, to the extent that the purchase price exceeds the fair value of the net assets acquired, we record goodwill. In accordance with U.S. GAAP, we are required to evaluate our goodwill at least annually. We perform our annual goodwill assessment as of August 31, or more frequently if indicators of impairment exist. Qualitative factors that indicate impairment could include, but are not limited to, (i) macroeconomic conditions, (ii) industry and market considerations, (iii) cost factors, (iv) overall financial performance of the reporting unit, and (v) other relevant entity-specific events. The first step in our annual goodwill assessment is to perform the optional qualitative assessment allowed by ASC Topic 350 “Intangibles - Goodwill and Other” (ASC 350). In our qualitative assessment, we evaluate relevant events or circumstances to determine whether it is more likely than not (i.e., greater than 50%) that the fair value of a reporting unit is less than its carrying amount. If we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, ASC 350 requires us to compare the fair value of such reporting unit to its carrying value including goodwill. To determine the fair value of our reporting units, we use multiple valuation techniques including a discounted cash flow analysis, using the applicable weighted average cost of capital, in combination with a market approach that uses market multiples and a selection of guideline public companies. This test requires us to make assumptions about the future growth of our business and the market in general, as well as other variables such as the level of investment in capital expenditure, growth in working capital requirements and the terminal or residual value of our reporting units beyond the periods of estimated annual cash flows. We use a third-party valuation firm to assist us with this analysis. If the fair value of each reporting unit exceeds its carrying value, no action is required. Otherwise, an impairment loss is recorded to the extent that the carrying amount of the reporting unit including goodwill exceeds the fair value of that reporting unit. We believe the estimates and assumptions used in our impairment assessment are reasonable based on available market information, but variations in any of the assumptions could result in materially different calculations of fair value and determinations of whether or not an impairment is indicated during current or future periods. As a result of quantitative assessments performed during the year ended October 31, 2019, we recorded impairment charges totaling $74.6 million during the year ended October 31, 2019, reducing the goodwill balance applicable to the reporting unit included in our NA Cabinet Components operating segment from $113.7 million to $39.1 million. During the three months ended April 30, 2020, we determined the WHO's characterization of the outbreak of COVID-19 as a global pandemic was a triggering event which could indicate that the carrying value of our goodwill was no longer greater than the fair value. As a result of this determination, we performed a qualitative assessment for each of the five goodwill reportable units. As a result of this analysis, we determined that our goodwill was not more likely than not impaired and no quantitative assessment was necessary. At our annual testing date, August 31, 2020, we had five reporting units with goodwill balances: two reporting units included in our NA Fenestration operating segment, two reporting units included in our EU Fenestration operating segment, and one reporting unit included in our NA Cabinet Components operating segment. We performed a qualitative assessment of the two reporting units in the NA Fenestration segment and one of the reporting units in the EU Fenestration segment. This review included an analysis of historical goodwill test results, operating results relative to forecast, projected results over the next five years, and other measures and concluded that there were no indicators of potential impairment associated with these reporting units. Therefore, no additional testing was deemed necessary for these three reporting units. Also, at our annual testing date, we performed a quantitative assessment of the reporting unit in our NA Cabinet Components segment primarily due to the recent impairment of goodwill during the second and fourth quarters of 2019 and the history of a narrow margin of fair value above carrying value in quantitative assessments performed in prior years. We also elected to update the quantitative assessment of the other reportable unit in the EU Fenestration operating segment. We determined that the fair value of these reporting units exceeded their carrying values by approximately 5% and 36%, respectively. We concluded that no impairment was necessary. Restructuring We accrue one-time severance costs pursuant to an approved plan of restructuring at the communication date, when affected employees have been notified of the potential severance and sufficient information has been provided for the employee to calculate severance benefits, in the event the employee is involuntarily terminated. In addition, we accrue costs associated with the termination of contractual commitments including 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 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 assumed sublet in the current period. For other costs directly related to the restructuring effort, such as equipment moving costs, we expense in the period incurred. COVID-19 Impact On March 11, 2020, the WHO declared the outbreak of COVID-19 as a global pandemic and advised aggressive containment action. In response to this declaration and the rapid global spread of COVID-19, national, state, and local governments have taken extraordinary and continuously evolving measures to limit the outbreak and spread of the virus, including travel bans, quarantines, "stay-at-home" orders and similar mandates imposing varying degrees of restrictions on social and non-essential commercial activity to promote social distancing. Measures providing for business shutdowns generally exclude certain essential services commonly including critical infrastructure such as construction and the businesses that support that critical infrastructure. To date, we have not experienced significant challenges or expenses implementing crisis management plans intended to meet government requirements for containment and prevention. The COVID-19 pandemic and actions taken in response thereto are continuing to have an adverse effect on many sectors of the economy. We initially reduced operating schedules and implemented furloughs to balance production and demand, but all facilities were operational as of October 31, 2020. However, the duration and severity of the COVID-19 pandemic, the actions to contain the pandemic and treat its impacts, and the effects on our operations are highly uncertain and cannot be predicted at this time. Therefore, while we expect some negative impacts on our business, results of operations, cash flows and financial position, the overall financial impact cannot be reasonably estimated at this time. Additionally, in response to the business environment impacted by COVID-19 during 2020, we reduced capital expenditures and discretionary spending during the second and third quarters of the year. We have currently resumed our normal business operations but we continue to closely monitor our working capital needs as events unfold. As a result of the economic and business impact of COVID-19, we may be required to revise certain accounting estimates and judgments such as, but not limited to, those related to the valuation of goodwill, intangibles, right-of-use assets, long-lived assets, accounts receivable (including allowances for doubtful accounts), and inventory, which could have a material adverse effect on our financial position and results of operations. Insurance We manage our exposure to losses for workers’ compensation, group medical, property, casualty and other insurance claims through a combination of self-insurance retentions and insurance coverage with third-party carriers. We record undiscounted liabilities associated with our portion of these exposures, which we estimate by considering various factors such as our historical claims experience, severity factors and estimated claims incurred but not reported, for which we have developed loss development factors, which are estimates as to how claims will develop over time until closed. While we consider a number of factors in preparing the estimates, sensitive assumptions using significant judgment are made in determining the amounts that are accrued in the financial statements. Actual claims could differ significantly from these estimated liabilities, depending on future claims experience. We do not record insurance recoveries until any contingencies relating to the claim have been resolved. Retirement Plans We sponsor a defined benefit pension plan and an unfunded postretirement plan that provides health care and life insurance benefits for a limited pool of eligible retirees and dependents. To measure our liabilities associated with these plans, we make assumptions related to future events, including expected return on plan assets, rate of compensation increases, and healthcare cost trend rates. The discount rate reflects the rate at which benefits could be effectively settled on the measurement date. We determine our discount rate using a RATE: Link Model whereby target yields are developed from bonds across a range of maturity points, and a curve is fitted to those targets. Spot rates (zero coupon bond yields) are developed from the curve and used to discount benefit payments associated with each future year. Actual pension plan asset investment performance, as well as other economic experience such as discount rate and demographic experience, will either reduce or increase unamortized pension losses at the end of any fiscal year, which ultimately affects future pension costs. Warranty Obligations We accrue warranty obligations when we recognize revenue for certain products. Our provision for warranty obligations is based on historical costs incurred for such obligations and is adjusted, where appropriate, based on current conditions and factors. Our ability to estimate our warranty obligations is subject to significant uncertainties, including changes in product design and our overall product sales mix. Income Taxes We record the estimated future tax effects of temporary differences between the tax basis of assets and liabilities and the amounts reported in our consolidated balance sheets, as well as net operating losses and tax credit carry forwards. We evaluate the carrying value of the net deferred tax assets and determine whether we will be able to generate sufficient future taxable income to realize our deferred tax assets. We perform this review for recoverability on a jurisdictional basis, whereby we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence can be objectively verified. Cumulative losses in recent years is a significant piece of negative evidence that is difficult to overcome in determining that a valuation allowance is not needed against deferred tax assets. Thus, it is generally difficult for positive evidence regarding projected future taxable income exclusive of reversing taxable temporary differences to outweigh objective negative evidence of recent financial reporting losses. We recorded net income for the years ended October 31, 2020 and October 31, 2018 and net loss for the year ended October 31, 2019. We have recorded pre-tax cumulative income from operations of $40.1 million for the three-year period ended October 31, 2020. We believe we will fully realize our deferred tax assets, net of a recorded valuation allowance. We project future taxable income using the same forecasts used to test long-lived assets and intangibles for impairment, scheduling out the future reversal of existing taxable temporary differences and reviewing our most recent financial operations. In the event the estimates and assumptions indicate we will not generate sufficient future taxable income to realize our deferred tax assets, we record a valuation allowance against a portion of our deferred tax assets. We evaluate our on-going tax positions to determine if it is more-likely-than-not we will be successful in defending such positions if challenged by taxing authorities. To the extent that our tax positions do not meet the more-likely-than-not criteria, we record a liability for uncertain tax positions. We have recorded a liability for uncertain tax positions which stem from certain state tax items related to the interpretation of tax laws and regulations. We continue to evaluate our positions regarding various state tax interpretations at each reporting date, until the applicable statute of limitations lapse. On December 22, 2017, the Tax Cuts and Jobs Act (the Act) was signed into law. The Act reduced our federal income tax statutory rate from 35.0% to 21.0% for each of the fiscal years ended October 31, 2020 and 2019, respectively. For the fiscal year ended October 31, 2018 we used a rate of 23.3%, which reflects the period of November 1, 2017 through December 31, 2017 at the previous 35% rate, and the period of January 1, 2018 through October 31, 2018 at the new 21% rate. We have re-measured our deferred income tax assets and liabilities and have recorded tax expense for the one-time mandatory transition tax on deemed repatriation of previously tax-deferred and unremitted foreign earnings. For further details of the impact of the Act, see Note 10, "Income Taxes." Final regulations were published by the Internal Revenue Service regarding Uniform Capitalization (UNICAP) that became effective during fiscal 2020. Also, on March 27, 2020, The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. We are evaluating these regulations but do not believe they will result in a material impact on our consolidated financial statements. Derivative Instruments We have historically used financial and commodity-based derivative contracts to manage our exposure to fluctuations in foreign currency exchange rates and aluminum prices. All derivatives are measured at fair value on a recurring basis. We have not designated the derivative instruments we use as cash flow hedges under ASC Topic 815 "Derivatives and Hedging” (ASC 815). Therefore, all gains and losses, both realized and unrealized, are recognized in the consolidated statements of income (loss) in the period of the change as the underlying assets and liabilities are marked-to-market. We do not enter into derivative instruments for speculative or trading purposes. As such, these instruments are considered economic hedges, and are reflected in the operating activities section of the consolidated statements of cash flow. Foreign Currency Translation Our consolidated financial statements are presented in our reporting currency, the United States Dollar. Our German and U.K. operations are measured using the local currency as the functional currency. The assets and liabilities of our foreign operations which are denominated in other currencies are translated to United States Dollars using the prevailing exchange rates as of the balance sheet date. Revenues and expenses are translated at the average exchange rates for the applicable period. The resulting translation adjustments are recorded as a component of accumulated other comprehensive loss on the consolidated balance sheets. Occasionally, we enter into transactions that are denominate |
Receivables & Allowance
Receivables & Allowance | 12 Months Ended |
Oct. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts receivable consisted of the following as of October 31, 2020 and 2019 (in thousands): October 31, 2020 2019 Trade receivables $ 88,287 $ 82,745 Other 161 594 Total 88,448 83,339 Less: Allowance for doubtful accounts 161 393 Accounts receivable, net $ 88,287 $ 82,946 The changes in our allowance for doubtful accounts were as follows (in thousands): Year Ended October 31, 2020 2019 2018 Beginning balance as of November 1, 2019, 2018 and 2017, respectively $ 393 $ 325 $ 333 Bad debt expense 262 700 46 Amounts written off (494) (916) (54) Recoveries — 284 — Balance as of October 31, $ 161 $ 393 $ 325 |
Inventories
Inventories | 12 Months Ended |
Oct. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following at October 31, 2020 and 2019 (in thousands): October 31, 2020 2019 Raw materials $ 33,298 $ 32,818 Finished goods and work in process 32,347 35,538 Supplies and other 2,020 2,593 Total 67,665 70,949 Less: Inventory reserves 6,484 3,790 Inventories, net $ 61,181 $ 67,159 The changes in our inventory reserve accounts were as follows (in thousands): Year Ended October 31, 2020 2019 2018 Beginning balance as of November 1, 2019, 2018 and 2017, respectively $ 3,790 $ 4,375 $ 4,620 Charged to cost of sales 2,713 341 1,201 Write-offs — (939) (1,415) Other (19) 13 (31) Balance as of October 31, $ 6,484 $ 3,790 $ 4,375 |
Property, Plant & Equipment
Property, Plant & Equipment | 12 Months Ended |
Oct. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure | Property, plant and equipment consisted of the following at October 31, 2020 and 2019 (in thousands): October 31, 2020 2019 Land and land improvements $ 10,298 $ 10,298 Buildings and building improvements 100,576 101,569 Machinery and equipment 398,950 386,953 Construction in progress 14,424 12,348 Property, plant and equipment, gross 524,248 511,168 Less: Accumulated depreciation 340,144 317,568 Property, plant and equipment, net $ 184,104 $ 193,600 Depreciation expense for the years ended October 31, 2020, 2019, and 2018 was $31.8 million, $34.3 million and $35.6 million, respectively. If there are indicators of potential impairment, we evaluate our property, plant and equipment for recoverability over the remaining useful lives of the assets. We did not incur impairment losses associated with these assets for the years ended October 31, 2020, 2019, and 2018. See further discussion at Note 1, "Nature of Operations, Basis of Presentation and Significant Accounting Policies - Long-Lived Assets - Property, Plant and Equipment and Intangible Assets with Defined Lives." |
Leases
Leases | 12 Months Ended |
Oct. 31, 2020 | |
Leases [Abstract] | |
Leases | 5. Leases Effective November 1, 2019, we adopted Accounting Standards Codification Topic 842, "Leases" (ASC Topic 842), which requires leases to be recognized on the balance sheet. We recognize a right-of-use (ROU) asset and lease liability for each operating and finance lease with a contractual term greater than 12 months at the time of lease inception. We include ROU assets and lease liabilities for leases that exist within other contracts. Leases with an original term of 12 months or less are not recognized on the balance sheet, and the rent expense related to those short-term leases is recognized over the lease term. We do not account for lease and non-lease (e.g. common area maintenance) components of contracts separately for any underlying asset class. We lease certain manufacturing plants, warehouses, office space, vehicles and equipment under finance and operating leases. Lease commencement occurs on the date we take possession or control of the property or equipment. Original terms for our real estate-related leases are generally between five one If readily determinable, the rate implicit in the lease is used to discount lease payments to present value; however, substantially all of our leases do not provide a readily determinable implicit rate. When the implicit rate is not determinable, our estimated incremental borrowing rate is utilized, determined on a collateralized basis, to discount lease payments based on information available at lease commencement. Total lease costs recorded include fixed operating lease costs and variable lease costs. Most of our real estate leases require we pay certain expenses, such as common area maintenance costs, of which the fixed portion is included in operating lease costs. We recognize operating lease costs on a straight-line basis over the lease term. In addition to the above costs, variable lease costs are recognized when probable and are not included in determining the present value of our lease liability. The ROU asset is measured at the initial amount of the lease liability (calculated as the present value of lease payments over the term of the lease) adjusted for lease payments made at or before the lease commencement date and initial direct costs. For operating leases, ROU assets are reduced over the lease term by the recognized straight-line lease expense less the amount of accretion of the lease liability determined using the effective interest method. For finance leases, ROU assets are amortized on a straight-line basis over the shorter of the useful life of the leased asset or the lease term. Interest expense on each finance lease liability is recognized utilizing the effective interest method. ROU assets are tested for impairment in the same manner as long-lived assets. Additionally, we monitor for events or changes in circumstances that may require a reassessment of one of our leases and determine if a remeasurement is required. The table below presents the lease-related assets and liabilities recorded on the balance sheet at October 31, 2020 (in thousands): Leases Classification October 31, 2020 Assets Operating lease assets Operating lease right-of-use assets $ 51,824 Finance lease assets Property, plant and equipment (less accumulated depreciation of $1,089) 15,609 Total lease assets $ 67,433 Liabilities Current Operating Current operating lease liabilities $ 7,459 Finance Current maturities of long-term debt 962 Noncurrent Operating Noncurrent operating lease liabilities 44,873 Finance Long-term debt 14,236 Total lease liabilities $ 67,530 The table below presents the components for the year ended October 31, 2020 (in thousands): Components of lease costs Year Ended October 31, 2020 Operating lease cost $ 8,866 Finance lease cost Amortization of leased assets 1,181 Interest on lease liabilities 557 Variable lease costs 748 Total lease cost $ 8,316 The table below presents supplemental cash flow information related to leases for the year ended October 31, 2020 (in thousands): Supplemental Cash Flow Information Year Ended October 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Finance leases - financing cash flows $ 1,092 Finance leases - operating cash flows $ 557 Operating leases - operating cash flows $ 8,681 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 19,559 Finance Leases $ 398 The table below presents the weighted average remaining lease terms and weighted average discount rates for the Company's leases as of October 31, 2020: Year Ended October 31, 2020 Weighted average remaining lease term (in years) Operating leases 7.8 Financing leases 15.25 Weighted average discount rate Operating leases 3.52 % Financing leases 3.62 % The table below presents the maturity of the lease liabilities as of October 31, 2020 (in thousands): Operating Leases Finance Leases 2021 $ 9,191 $ 1,496 2022 8,754 1,449 2023 8,340 1,350 2024 7,581 1,247 2025 6,166 1,188 Thereafter 19,941 12,768 Total lease payments 59,973 19,498 Less: present value discount 7,641 4,300 Total lease liabilities $ 52,332 $ 15,198 As a result of the adoption of ASC Topic 842, we are required to present future minimum lease payments for operating and financing obligations having initial or remaining non-cancelable lease terms in excess of one year. These future minimum lease payments were previously disclosed in our 2019 Annual Report on Form 10-K and accounted for under previous lease guidance. Commitments as of October 31, 2019 were as follows (in thousands): Operating Leases Finance Leases 2020 $ 9,121 $ 1,020 2021 6,981 810 2022 6,012 815 2023 5,506 973 2024 4,699 713 Thereafter 15,220 11,392 Total $ 47,539 $ 15,723 Less: amount representing interest 5,064 Present value of minimum lease payments $ 10,659 |
Leases | 5. Leases Effective November 1, 2019, we adopted Accounting Standards Codification Topic 842, "Leases" (ASC Topic 842), which requires leases to be recognized on the balance sheet. We recognize a right-of-use (ROU) asset and lease liability for each operating and finance lease with a contractual term greater than 12 months at the time of lease inception. We include ROU assets and lease liabilities for leases that exist within other contracts. Leases with an original term of 12 months or less are not recognized on the balance sheet, and the rent expense related to those short-term leases is recognized over the lease term. We do not account for lease and non-lease (e.g. common area maintenance) components of contracts separately for any underlying asset class. We lease certain manufacturing plants, warehouses, office space, vehicles and equipment under finance and operating leases. Lease commencement occurs on the date we take possession or control of the property or equipment. Original terms for our real estate-related leases are generally between five one If readily determinable, the rate implicit in the lease is used to discount lease payments to present value; however, substantially all of our leases do not provide a readily determinable implicit rate. When the implicit rate is not determinable, our estimated incremental borrowing rate is utilized, determined on a collateralized basis, to discount lease payments based on information available at lease commencement. Total lease costs recorded include fixed operating lease costs and variable lease costs. Most of our real estate leases require we pay certain expenses, such as common area maintenance costs, of which the fixed portion is included in operating lease costs. We recognize operating lease costs on a straight-line basis over the lease term. In addition to the above costs, variable lease costs are recognized when probable and are not included in determining the present value of our lease liability. The ROU asset is measured at the initial amount of the lease liability (calculated as the present value of lease payments over the term of the lease) adjusted for lease payments made at or before the lease commencement date and initial direct costs. For operating leases, ROU assets are reduced over the lease term by the recognized straight-line lease expense less the amount of accretion of the lease liability determined using the effective interest method. For finance leases, ROU assets are amortized on a straight-line basis over the shorter of the useful life of the leased asset or the lease term. Interest expense on each finance lease liability is recognized utilizing the effective interest method. ROU assets are tested for impairment in the same manner as long-lived assets. Additionally, we monitor for events or changes in circumstances that may require a reassessment of one of our leases and determine if a remeasurement is required. The table below presents the lease-related assets and liabilities recorded on the balance sheet at October 31, 2020 (in thousands): Leases Classification October 31, 2020 Assets Operating lease assets Operating lease right-of-use assets $ 51,824 Finance lease assets Property, plant and equipment (less accumulated depreciation of $1,089) 15,609 Total lease assets $ 67,433 Liabilities Current Operating Current operating lease liabilities $ 7,459 Finance Current maturities of long-term debt 962 Noncurrent Operating Noncurrent operating lease liabilities 44,873 Finance Long-term debt 14,236 Total lease liabilities $ 67,530 The table below presents the components for the year ended October 31, 2020 (in thousands): Components of lease costs Year Ended October 31, 2020 Operating lease cost $ 8,866 Finance lease cost Amortization of leased assets 1,181 Interest on lease liabilities 557 Variable lease costs 748 Total lease cost $ 8,316 The table below presents supplemental cash flow information related to leases for the year ended October 31, 2020 (in thousands): Supplemental Cash Flow Information Year Ended October 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Finance leases - financing cash flows $ 1,092 Finance leases - operating cash flows $ 557 Operating leases - operating cash flows $ 8,681 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 19,559 Finance Leases $ 398 The table below presents the weighted average remaining lease terms and weighted average discount rates for the Company's leases as of October 31, 2020: Year Ended October 31, 2020 Weighted average remaining lease term (in years) Operating leases 7.8 Financing leases 15.25 Weighted average discount rate Operating leases 3.52 % Financing leases 3.62 % The table below presents the maturity of the lease liabilities as of October 31, 2020 (in thousands): Operating Leases Finance Leases 2021 $ 9,191 $ 1,496 2022 8,754 1,449 2023 8,340 1,350 2024 7,581 1,247 2025 6,166 1,188 Thereafter 19,941 12,768 Total lease payments 59,973 19,498 Less: present value discount 7,641 4,300 Total lease liabilities $ 52,332 $ 15,198 As a result of the adoption of ASC Topic 842, we are required to present future minimum lease payments for operating and financing obligations having initial or remaining non-cancelable lease terms in excess of one year. These future minimum lease payments were previously disclosed in our 2019 Annual Report on Form 10-K and accounted for under previous lease guidance. Commitments as of October 31, 2019 were as follows (in thousands): Operating Leases Finance Leases 2020 $ 9,121 $ 1,020 2021 6,981 810 2022 6,012 815 2023 5,506 973 2024 4,699 713 Thereafter 15,220 11,392 Total $ 47,539 $ 15,723 Less: amount representing interest 5,064 Present value of minimum lease payments $ 10,659 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Oct. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets | Goodwill The change in the carrying amount of goodwill for the years ended October 31, 2020 and 2019 was as follows (in thousands): Year Ended October 31, 2020 2019 Beginning balance as of November 1, 2020 and 2019 $ 145,563 $ 219,627 Goodwill impairment charge — (74,600) Foreign currency translation adjustment 591 536 Balance as of October 31, 2020 $ 146,154 $ 145,563 At our annual testing date, August 31, 2020, we had five reporting units with goodwill balances. Two of these units were included in our NA Fenestration segment and had goodwill balances of $35.9 million and $2.8 million, two units were included in our EU Fenestration segment with goodwill balances of $50.9 million and $17.4 million, and our NA Cabinet Components segment had one unit with a goodwill balance of $39.1 million. During the year ended October 31, 2019, we recorded impairment charges of $74.6 million associated with our NA Cabinet Components segment. The details of the impairment charges, as well as the results of our goodwill assessments during the year ended October 31, 2020 are more fully described at Note 1, "Nature of Operations, Basis of Presentation and Significant Accounting Policies - Long-Lived Assets - Goodwill." For a summary of the change in the carrying amount of goodwill by segment, see Note 17, "Segment Information." Identifiable Intangible Assets Amortizable intangible assets consisted of the following as of October 31, 2020 and 2019 (in thousands): October 31, 2020 October 31, 2020 October 31, 2019 Remaining Weighted Average Useful Life Gross Carrying Accumulated Gross Carrying Accumulated Customer relationships 9 years $ 154,004 $ 80,441 $ 153,950 $ 70,103 Trademarks and trade names 9 years 55,745 37,314 55,745 35,210 Patents and other technology 3 years 22,386 21,312 22,386 19,471 Total $ 232,135 $ 139,067 $ 232,081 $ 124,784 We do not estimate a residual value associated with these intangible assets. See additional disclosure at Note 1, "Nature of Operations, Basis of Presentation and Significant Accounting Policies - Restructuring." During the year ended October 31, 2019, we retired fully amortized identifiable intangible assets of $0.3 million related to customer relationships and patents and other technology. We retired $0.3 million of fully amortized identifiable assets related to customer relationships during the year ended October 31, 2020. The aggregate amortization expense associated with identifiable intangible assets for the years ended October 31, 2020, 2019, and 2018 was $14.3 million, $15.3 million and $16.2 million, respectively. Estimated remaining amortization expense, assuming current intangible balances and no new acquisitions, for future fiscal years ending October 31, is as follows (in thousands): Estimated 2021 $ 12,573 2022 11,941 2023 11,194 2024 10,464 2025 9,239 Thereafter 37,657 Total $ 93,068 We did not incur impairment losses related to our identifiable intangible assets during the years ended October 31, 2020, 2019, and 2018. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Oct. 31, 2020 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | 7. Accrued Liabilities Accrued liabilities consisted of the following at October 31, 2020 and 2019 (in thousands): October 31, 2020 2019 Payroll, payroll taxes and employee benefits $ 16,000 $ 19,637 Accrued insurance and workers compensation 5,108 3,514 Sales allowances 6,297 6,323 Deferred compensation (current portion) 192 1,231 Deferred revenue 763 1,251 Warranties 81 136 Audit, legal, and other professional fees 1,562 2,561 Accrued taxes 4,000 2,403 Other 4,286 2,165 Accrued liabilities $ 38,289 $ 39,221 |
Retirement Plans
Retirement Plans | 12 Months Ended |
Oct. 31, 2020 | |
Retirement Benefits [Abstract] | |
Retirement Plans | We have a number of retirement plans covering substantially all employees. We provide both defined benefit and defined contribution plans. In general, an employee’s coverage for retirement benefits depends on the location of employment. Defined Benefit Plan We have a non-contributory, single employer defined benefit pension plan that covers the majority of our domestic employees, excluding the NA Cabinet Component employees who are not currently participating. On January 1, 2020 we enacted changes to our pension plan whereby the benefits for all participants were frozen and thereafter those participants will receive increased benefits in the Company sponsored defined contribution plan in lieu of participation in a defined benefit plan. Every year, the participants will receive an interest related credit on their respective balance equivalent to the prevailing 30-year Treasury rate. Of our pension plan participants, 99% have their benefit determined pursuant to the cash balance formula. For the remaining 1% of participants, the benefit formula is a traditional formula for retirement benefits, whereby the plan pays benefits to employees upon retirement, using a formula which considers years of service and pensionable compensation prior to retirement. As a result of this action, we remeasured the pension assets and obligations for the pension plan, which resulted in a decrease to our projected benefit obligation and a corresponding net actuarial gain that was recorded in accumulated other comprehensive income (loss). This remeasurement is included in the tables below, which reflect the full impact of pension plan results and accounting measurements for the year ended October 31, 2020. The Medicare Prescription Drug, Improvement and Modernization Act of 2003 was signed into law on December 8, 2003. This Act introduces a Medicare prescription-drug benefit beginning in 2006 as well as a federal subsidy to sponsors of retiree health care plans that provide a benefit at least “actuarially equivalent” to the Medicare benefit. We concluded that our plans are at least “actuarially equivalent” to the Medicare benefit. For those who are otherwise eligible for the subsidy, we have not included this subsidy per the Act in our benefit calculations. The impact to net periodic benefit cost and to benefits paid did not have a material impact on the consolidated financial statements. Funded Status and Net periodic Benefit Cost The changes in benefit obligation and plan assets, and our funded status (reported in deferred pension and postretirement benefits on the consolidated balance sheets) were as follows (in thousands): October 31, Change in Benefit Obligation: 2020 2019 Beginning balance as of November 1, 2019 and 2018, respectively $ 44,323 $ 35,959 Service cost 1,262 3,629 Interest cost 1,139 1,456 Actuarial loss 2,823 7,690 Benefits paid (712) (3,581) Administrative expenses (785) (830) Curtailments (1,141) — Settlements (2,084) — Projected benefit obligation at October 31, $ 44,825 $ 44,323 Change in Plan Assets: Beginning balance as of November 1, 2019 and 2018, respectively $ 31,212 $ 32,064 Actual return on plan assets 2,789 2,869 Employer contributions 3,700 690 Benefits paid (712) (3,581) Administrative expenses (785) (830) Settlements (2,084) — Fair value of plan assets at October 31, $ 34,120 $ 31,212 Noncurrent liability - Funded Status $ (10,705) $ (13,111) As of October 31, 2020 and 2019, included in our accumulated comprehensive loss was a net actuarial loss of $9.9 million and $6.7 million, respectively. There were no net prior service costs or transition obligations for the years ended October 31, 2020 and 2019. As of October 31, 2020 and 2019, the accumulated benefit obligation was $44.8 million and $43.3 million, respectively. The accumulated benefit obligation is the present value of pension benefits (whether vested or unvested) attributed to employee service rendered before the measurement date, and based on employee service and compensation prior to that date. The accumulated benefit obligation differs from the projected benefit obligation in that it includes no assumption about future compensation levels. The net periodic benefit cost for the years ended October 31, 2020, 2019 and 2018, was as follows (in thousands): Year Ended October 31, 2020 2019 2018 Service cost $ 1,262 $ 3,629 $ 3,908 Interest cost 1,139 1,456 1,130 Expected return on plan assets (2,006) (1,977) (2,172) Amortization of net loss 162 125 64 Settlements 462 — — Net periodic benefit cost $ 1,019 $ 3,233 $ 2,930 The changes in plan assets and projected benefit obligations which were recognized in our other comprehensive loss for the years ended October 31, 2020, 2019 and 2018 were as follows (in thousands): Year Ended October 31, 2020 2019 2018 Net loss (gain) arising during the period $ 2,141 $ 6,697 $ (2,189) Less: Amortization of net loss 162 125 64 Less: Curtailments 1,141 — — Less: Settlements 462 — — Total recognized in other comprehensive loss $ 376 $ 6,572 $ (2,253) Measurement Date and Assumptions We generally determine our actuarial assumptions on an annual basis, with a measurement date of October 31. The following table presents our assumptions for pension benefit calculations for the years ended October 31, 2020, 2019 and 2018: For the Year Ended October 31, 2020 2019 2018 2020 2019 2018 Weighted Average Assumptions: Benefit Obligation Net Periodic Benefit Cost Discount rate 3.22% 3.10% 4.44% 3.10% 4.44% 3.68% Rate of compensation increase —% 3.00% 3.00% —% 3.00% 3.00% Expected return on plan assets n/a n/a n/a 6.50% 6.50% 6.50% The discount rate was used to calculate the present value of the projected benefit obligation for pension benefits. The rate reflects the amount at which benefits could be effectively settled on the measurement date. We used a RATE: Link Model whereby target yields are developed from bonds across a range of maturity points, and a curve is fitted to those targets. Spot rates (zero coupon bond yields) are developed from the curve and used to discount benefit payments associated with each future year. This model assumes spot rates will remain level beyond the 30-year point. We determine the present value of plan benefits by applying the discount rates to projected benefit cash flows. The expected return on plan assets was used to determine net periodic pension expense. The rate of return assumptions were based on projected long-term market returns for the various asset classes in which the plans were invested, weighted by the target asset allocations. We review the return assumption at least annually. The rate of compensation increase represents the long-term assumption for expected increases in salaries. Plan Assets The following tables provide our target allocation for the year ended October 31, 2020, as well as the actual asset allocation by asset category and fair value measurements as of October 31, 2020 and 2019: Target Allocation Actual Allocation October 31, 2020 October 31, 2020 October 31, 2019 Equity securities 60.0 % 60.0 % 61.0 % Fixed income 40.0 % 40.0 % 39.0 % Fair Value Measurements at October 31, 2020 October 31, 2019 (In thousands) Money market fund $ 3,532 $ 574 Large capitalization 7,954 8,092 Small capitalization 2,407 2,489 International equity 6,130 6,219 Other 1,853 1,848 Equity securities $ 18,344 $ 18,648 High-quality core bond 9,743 9,525 High-quality government bond 1,249 1,228 High-yield bond 1,252 1,237 Fixed income $ 12,244 $ 11,990 Total securities (1) $ 34,120 $ 31,212 (1) Quoted prices in active markets for identical assets (Level 1). Inputs and valuation techniques used to measure the fair value of plan assets vary according to the type of security being valued. All of the equity and debt securities held directly by the plans were actively traded and fair values were determined based on quoted market prices. Our investment objective for defined benefit plan assets is to meet the plans’ benefit obligations, while minimizing the potential for future required plan contributions. The investment strategies focus on asset class diversification, liquidity to meet benefit payments and an appropriate balance of long-term investment return and risk. Target ranges for asset allocations are determined by matching the actuarial projections of the plans’ future liabilities and benefit payments with expected long-term rates of return on the assets, taking into account investment return volatility and correlations across asset classes. Plan assets are diversified across several investment managers and are generally invested in liquid funds that are selected to track broad market equity and bond indices. Investment risk is carefully controlled with plan assets rebalanced to target allocations on a periodic basis and monitoring of performance of investment managers relative to the investment guidelines established with each investment manager. Expected Benefit Payments and Funding Our pension funding policy is to make the minimum annual contributions required pursuant to the plan. We accelerated contributions to target a 100% funding threshold. Additionally, we consider funding annual requirements early in the fiscal year to potentially maximize the return on assets. For the fiscal years ended October 31, 2020, 2019 and 2018, we made total pension contributions of $3.7 million, $0.7 million and $0.8 million, respectively. During fiscal 2021, we expect to contribute approximately $0.5 million to the pension plan to reach targeted funding levels and meet minimum contribution requirements. This expected contribution level will be dependent on many variables, including the market value of the assets compared to the obligation, as well as other market or regulatory conditions. In addition, we consider the cash requirements of our business investment opportunities. Accordingly, actual funding amounts and the timing of such funding may differ from current estimates. The following table presents the total benefit payments expected to be paid to participants by year, which includes payments funded from our assets, as well as payments paid from the plan for the year ended October 31, (in thousands): Pension Benefits 2021 $ 3,036 2022 2,583 2023 2,404 2024 2,376 2025 2,394 2026 - 2030 10,910 Total $ 23,703 Defined Contribution Plan We also sponsor two defined contribution plans into which we and our employees make contributions. As of January 1, 2020, we match 100% up to the first 5% of employee annual salary deferrals under our plan for all employees excluding NA Cabinet Components participants, who receive a 100% match up to 4% of employee annual salary deferrals. Between January 1, 2018 and January 1, 2020, we matched 50% up to the first 5% of employee salary deferrals. We do not offer our common stock as a direct investment option under these plans. For the years ended October 31, 2020, 2019 and 2018, we contributed approximately $4.8 million, $2.7 million and $2.6 million for these plans, respectively. Other Plans Under our postretirement benefit plan, we provide certain healthcare and life insurance benefits for a small number of eligible retired employees who were employed prior to January 1, 1993. Certain employees may become eligible for those benefits if they reach normal retirement age while working for us. We continue to fund benefit costs on a pay-as-you-go basis. The table below indicates the amount of these liabilities included in the accompanying consolidated balance sheets: October 31, 2020 October 31, 2019 (In thousands) Accrued liabilities $ 49 $ 49 Deferred pension and postretirement benefits 218 311 Total $ 267 $ 360 |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes We provide for income taxes on taxable income at the applicable statutory rates. The following table summarizes the components of income tax expense (benefit) for the years ended October 31, 2020, 2019 and 2018 (in thousands): Year Ended October 31, 2020 2019 2018 Current Federal $ 6,043 $ 3,338 $ 983 State and local 1,505 299 417 Non-United States 4,445 3,879 3,356 Total current 11,993 7,516 4,756 Deferred Federal (64) 1,497 (5,828) State and local (315) 1,087 670 Non-United States 190 676 (398) Total deferred (189) 3,260 (5,556) Total income tax expense (benefit) $ 11,804 $ 10,776 $ (800) For financial reporting purposes, income (loss) before income taxes for the years ended October 31, 2020, 2019 and 2018 includes the following components (in thousands): Year Ended October 31, 2020 2019 2018 Domestic $ 26,229 $ (58,247) $ 9,721 Foreign 24,071 22,293 16,032 Total income (loss) before income taxes $ 50,300 $ (35,954) $ 25,753 The following table reconciles our effective income tax rate to the federal statutory rate for the years ended October 31, 2020, 2019 and 2018: Year Ended October 31, 2020 2019 2018 United States tax at statutory rate 21.0 % 21.0 % 23.3 % State and local income tax 1.7 % 1.6 % 3.3 % Non-United States income tax (0.8) % (0.5) % (1.6) % General business credits (2.3) % (4.7) % (0.4) % Other permanent differences 1.7 % 3.0 % — % Deferred rate impact of enactment of tax reform — % — % (30.5) % Foreign tax positions under the Act (GILTI and FDII) 2.5 % 3.3 % — % Impact of deemed repatriation — % (1.1) % 4.8 % Asset impairment charges — % (50.7) % (1.5) % Return to actual adjustments (0.3) % (1.9) % (0.5) % Effective tax rate 23.5 % (30.0) % (3.1) % On December 22, 2017, the Tax Cuts and Jobs Act was signed into law. This Act reduced our federal income tax statutory rate from 35.0% to 21.0% for the fiscal years ending October 31, 2020 and October 31, 2019, and 23.3% for the fiscal year ended October 31, 2018, which 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. This 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 October 31, 2020 effective tax rate was impacted by the true-up of our accruals and related deferred taxes from prior year filings and settled tax audits as well as $0.6 million related to the vesting or exercise of equity-based compensation awards. The October 31, 2019 effective rate was primarily impacted by a net charge of $1.2 million related to GILTI and FDII, as well as discrete charge of $0.4 million for the adjustment of the one-time mandatory transition tax on deemed repatriation of previously tax-deferred and unremitted foreign earnings and $0.6 million related to the vesting or exercise of equity-based compensation awards. Additionally, during the year ended October 31, 2019, we recorded a $74.6 million asset impairment charge, which was primarily non-deductible, in the NA Cabinet Components segment, as further explained in Note 6, "Goodwill and Intangible Assets." Discrete items contributing to the October 31, 2018 income tax benefit included $7.7 million for the remeasurement of our deferred income tax assets and liabilities due to the decrease in the federal corporate income tax rate, a benefit of $0.2 million for the true up of our accruals and related deferred taxes from prior year filings and settled tax audits, and a benefit of $0.2 million related to the vesting or exercise of equity-based compensation awards, partially offset by a tax expense of $1.2 million for the one-time mandatory transition tax on deemed repatriation of previously tax-deferred and unremitted foreign earnings. Given the significance of the Tax Cuts and Jobs Act, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118), which allows registrants to record provisional amounts during a one year “measurement period." As of October 31, 2019, we have completed the accounting for the tax effects of the Act. In light of the Tax Cuts and Jobs Act, we repatriated $31.9 million and $24.2 million of foreign earnings from our international operations during the years ended October 31, 2020 and 2019, respectively. This was repatriation of excess cash that 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. If the investment in our foreign subsidiaries were completely realized, we would not incur a residual U.S. tax liability. Significant components of our net deferred tax liabilities and assets were as follows (in thousands): October 31, 2020 2019 Deferred tax assets: Employee benefit obligations $ 6,634 $ 7,227 Accrued liabilities and reserves 1,471 1,646 Pension and other benefit obligations 3,303 4,365 Inventory 471 632 Loss and tax credit carry forwards 2,331 2,915 Other 103 110 Total gross deferred tax assets 14,313 16,895 Less: Valuation allowance 1,493 1,560 Total deferred tax assets, net of valuation allowance 12,820 15,335 Deferred tax liabilities: Property, plant and equipment 10,465 11,075 Goodwill and intangibles 21,471 23,623 Total deferred tax liabilities 31,936 34,698 Net deferred tax liabilities $ 19,116 $ 19,363 At October 31, 2020, state operating loss carry forwards totaled $30.1 million. The majority of these losses begin to expire in 2025. Tax credits available to offset future tax liabilities totaled $0.6 million and are expected to be utilized within the next twelve months. We evaluate tax benefits of operating losses and tax credit carry forwards on an ongoing basis, including a review of historical and projected future operating results, the eligible carry forward period and other circumstances. We have recorded a valuation allowance for certain state net operating losses as of October 31, 2020 and 2019, totaling $1.5 million and $1.6 million, respectively ($1.2 million net of federal taxes for each year) for the respective periods. In assessing the need for a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. The following table shows the change in the unrecognized income tax benefit associated with uncertain tax positions for the years ended October 31, 2020, 2019 and 2018 (in thousands): Unrecognized Balance at October 31, 2017 $ 591 Additions for tax positions related to the current year — Additions for tax positions related to the prior year 15 Balance at October 31, 2018 $ 606 Additions for tax positions related to the current year — Additions for tax positions related to the prior year 16 Reassessment of position (66) Balance at October 31, 2019 $ 556 Additions for tax positions related to the current year — Additions for tax positions related to the prior year 15 Reassessment of position (49) Balance at October 31, 2020 $ 522 As of October 31, 2020, our unrecognized tax benefit (UTB) relates to certain state tax items regarding the interpretation of tax laws and regulations. At October 31, 2020, $0.5 million is recorded as a liability for uncertain tax positions. The disallowance of the UTB would not materially affect the annual effective tax rate. We, along with our subsidiaries, file income tax returns in the U.S. and various state jurisdictions as well as in the U.K., Germany and Canada. In certain jurisdictions, the statute of limitations has not yet expired. We generally remain subject to examination of our U.S. income tax returns for 2016 and subsequent years. We generally remain subject to examination of our various state and foreign income tax returns for a period of four to five years from the date the return was filed. The state impact of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the state of the federal change. Judgment is required in assessing the future tax consequences of events that have been recognized in our financial statements or tax returns. The final outcome of the future tax consequences of legal proceedings, if any, as well as the outcome of competent authority proceedings, changes in regulatory tax laws, or interpretation of those tax laws could impact our financial statements. We are subject to the effect of these matters occurring in various jurisdictions. We do not believe any of the UTB at October 31, 2020 will be recognized within the next twelve months. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Oct. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Purchase Obligations We are a party to non-cancelable purchase obligations primarily for door hardware, primary and secondary steel and primary and secondary aluminum used in our manufacturing processes, as well as expenditures related to capital projects in progress. We paid $9.0 million and $11.1 million pursuant to these arrangements for the years ended October 31, 2020 and 2019, respectively. These obligations total $22.4 million and $18.7 million at October 31, 2020 and 2019, respectively, and extend through fiscal 2021. Future amounts paid pursuant to these arrangements will depend, to some extent, on our usage. Asset Retirement Obligation We maintain an asset retirement obligation associated with a leased facility in Kent, Washington. We have estimated our future cash flows associated with this asset retirement obligation and recorded an asset and corresponding liability. We are depreciating the asset and accreting the liability over a seven year term, to culminate in an asset retirement obligation of $2.3 million as of February 2025. 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 2021. 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 year ended October 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 during the years ended October 31, 2020 or 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. |
Fair Value Measurement of Asset
Fair Value Measurement of Assets and Liabilities | 12 Months Ended |
Oct. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement of Assets and Liabilities | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to Level 1 and the lowest priority to Level 3. The three levels of the fair value hierarchy are described below: • Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates) and inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 - Inputs that are both significant to the fair value measurement and unobservable. As of October 31, 2020 no instruments were being measured on a recurring basis. For the year ended October 31, 2019, foreign currency derivatives were the only instruments being measured on a recurring basis. Less than $0.1 million of foreign currency derivatives were included in total assets as of October 31, 2019. There were no outstanding foreign currency derivatives as of October 31, 2020. 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 sheets for cash, cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturity of these instruments. Our outstanding debt is variable rate debt that re-prices frequently, thereby limiting our exposure to significant changes in interest rate risk. As a result, the fair value of our debt instruments approximates carrying value at October 31, 2020 and 2019 (Level 2 measurement). The liability portion of our performance share awards are marked-to-market on a quarterly basis during a three-year vesting period based on market data (Level 2 measurement). For further information refer to Note 13. Stock-Based Compensation - Performance Share Awards." |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Oct. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | 13. Stock-Based Compensation We have established and maintain an Omnibus Incentive Plan (2020 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 2020 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 2020 Plan is 3,139,895 as approved by the shareholders. Any officer, key employee and/or non-employee director is eligible for awards under the 2020 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 a restricted stock award is entitled to all of the rights of a shareholder, except that the awards are nontransferable during the vesting period. The fair value of the restricted stock award is established on the grant date and then expensed over the vesting period resulting in an increase in additional paid-in-capital. Shares are generally issued from treasury stock at the time of grant. A summary of non-vested restricted stock award activity during the years ended October 31, 2020, 2019 and 2018, follows: Restricted Stock Awards Weighted Average Non-vested at October 31, 2017 284,300 $ 19.66 Granted 73,400 20.70 Vested (111,800) 20.16 Forfeited (28,700) 19.66 Non-vested at October 31, 2018 217,200 19.76 Granted 124,800 13.78 Vested (42,500) 17.87 Forfeited (69,400) 19.19 Non-vested at October 31, 2019 230,100 17.02 Granted 63,400 18.82 Vested (51,000) 17.30 Cancelled (55,000) 19.45 Non-vested at October 31, 2020 187,500 $ 16.82 The total weighted average grant-date fair value of restricted stock awards that vested during the years ended October 31, 2020, 2019 and 2018 was $1.1 million, $1.3 million and $2.3 million, respectively. As of October 31, 2020, total unrecognized compensation cost related to unamortized restricted stock awards totaled $1.2 million. We expect to recognize this expense over the remaining weighted average period of 1.7 years. Stock Options Historically, stock options have been awarded to key employees, officers and non-employee directors. In 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 years ended October 31, 2020, 2019, and 2018. Stock options typically vested 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 was determined on the grant date and expensed over the vesting period resulting in an increase in additional paid-in-capital. We used the Black-Scholes pricing model to estimate the grant date fair value. The inputs to this model included expected volatility, expected term, a risk-free rate and expected dividend rate at the time of grant. For employees who were nearing retirement-eligibility, we recognized stock option expense ratably over the shorter of the vesting period or the period from the grant-date to the retirement-eligibility date. The following table summarizes our stock option activity for the years ended October 31, 2020, 2019 and 2018. Stock Options Weighted Average Weighted Average Aggregate Outstanding at October 31, 2017 2,152,758 $ 17.44 5.2 $ 9,700 Granted — — Exercised (377,218) 12.58 Forfeited/Expired (21,884) 19.28 Outstanding at October 31, 2018 1,753,656 $ 18.47 5.0 $ 51 Granted — — Exercised (204,770) 15.76 Forfeited/Expired (132,700) 20.01 Outstanding at October 31, 2019 1,416,186 $ 18.71 4.2 $ 1,449 Granted — — Exercised (215,733) 17.09 Forfeited/Expired (105,124) 20.28 Outstanding at October 31, 2020 1,095,329 $ 18.88 3.6 $ 561,000 Vested at October 31, 2020 1,095,329 $ 18.88 3.6 $ 561,000 Exercisable at October 31, 2020 1,095,329 $ 18.88 3.6 $ 561,000 Intrinsic value is the amount by which the market price of the common stock on the date of exercise exceeds the exercise price of the stock option. For the years ended October 31, 2020, 2019 and 2018, the total intrinsic value of our stock options that were exercised totaled $0.5 million, $0.4 million and $2.9 million, respectively. The total fair value of stock options vested during the years ended October 31, 2020, 2019 and 2018, was $0.6 million, $1.1 million and $1.5 million, respectively. As of October 31, 2020, 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 vesting criteria is met, each restricted stock unit is payable to the holder in cash based on the market value of one share of our common stock. Accordingly, we record a liability for the restricted stock units on our balance sheet and recognize any changes in the market value during each reporting period as compensation expense. During the years ended October 31, 2020, 2019 and 2018, 25,621, 34,050 and 18,050 restricted stock units, respectively, were granted with corresponding weighted average grant date fair value of $18.18, $15.51, and $21.85, respectively. As of October 31, 2019, there were 4,616 non-vested restricted stock units from the fiscal 2019 grant that will vest in December 2020. As of October 31, 2020 there were 21,774 unvested restricted stock units from the fiscal 2020 grant. During the year ended October 31, 2019, we paid less than $0.4 million to settle restricted stock units. During the year ended October 31, 2020, we paid $0.2 million to settle restricted stock units. There were no payments to settle restricted stock units during the year ended October 31, 2018. Performance Share Award s We have awarded annual grants of performance shares to key employees and officers. Awards issued during the year ended October 31, 2018 cliff vest after a three-year period with service and performance measures such as relative total shareholder return (R-TSR) and earnings per share (EPS) growth as vesting conditions. The number of performance share awards earned is variable depending on the metrics achieved. The settlement method is 50% in cash and 50% in our common stock. Performance share awards issued during the years ended October 31, 2020 and October 31, 2019 vest with return on net assets (RONA) as the performance 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). For awards issued during the year ended October 31, 2018, 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 used 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 will be expensed over the three-year term of the award, with a credit to additional paid-in-capital, and could fluctuate depending on the number of shares ultimately expected to vest based on our assessment of the probability that the performance conditions will be achieved. The portion of the awards expected to settle in cash is recorded as a liability and is marked to market over the three-year term of the award, and could fluctuate depending on the number of shares ultimately expected to vest. Depending on the achievement of the performance conditions, 0% to 200% of the awarded performance shares may ultimately vest. The following table summarizes our performance share grants and the grant date fair value for the EPS, R-TSR, and RONA performance metrics: Grant Date Fair Value Grant Date Shares Awarded EPS R-TSR RONA Forfeited December 7, 2017 146,500 $ 20.70 $ 21.81 $ — 54,008 December 5, 2018 131,500 $ — $ — $ 13.63 40,900 December 5, 2019 55,900 $ — $ — $ 19.40 5,300 On November 30, 2019, a total of 56,103 shares vested pursuant to the November 2016 grant, which were settled with 28,051 shares of common stock and a cash payment of $0.6 million. Performance share awards are not considered outstanding shares and do not have voting rights, although dividends are accrued over the performance period and will be payable in cash based upon the number of performance shares ultimately earned. Performance shares are excluded from 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. We evaluate the probability of the performance share vesting within one year of the vesting date. As of October 31, 2020, we have deemed that no shares related to the December 2017 grants of performance shares are probable to vest. For the year ended October 31, 2019 there were 28,051 related to performance shares that were potentially dilutive and considered in the diluted weighted average shares calculations. No contingent shares related to performance shares are included in diluted weighted average shares for the year ended October 31, 2018. Performance Restricted Stock Units We awarded performance restricted stock units to key employees and officers 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 performance restricted stock units earned is variable depending on the metric achieved, and the settlement method is 100% in our common stock, with accrued dividends paid in cash at the time of vesting, assuming the shares had been outstanding throughout the performance period. To value the performance restricted stock units, we utilized a Monte Carlo simulation model to arrive at a grant-date fair value. This amount will be adjusted for forfeitures and expensed over the three-year term of the award with a credit to additional paid-in-capital. Depending on the achievement of the performance conditions, a minimum of 0% and a maximum of 150% of the awarded performance restricted stock units may vest. Specifically, the awards vest on a continuum with the following Absolute Total Shareholder Return (A-TSR) milestones: Vesting Level Vesting Criteria Percentage of Award Vested Level 1 A-TSR greater than or equal to 50% 150% Level 2 A-TSR less than 50% and greater than or equal to 20% 100% Level 3 A-TSR less than 20% and greater than or equal to -20% 50% Level 4 A-TSR less than -20% —% 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 Grant Date Fair Value Shares Forfeited December 7, 2017 78,200 $ 17.76 28,854 December 5, 2018 89,200 $ 13.63 25,500 December 5, 2019 35,000 $ 19.40 — Similar to performance shares, the performance restricted stock units are not considered outstanding shares, do not have voting rights, and are excluded from diluted weighted-average shares used to calculate earnings per share until the performance criteria is probable to result in the issuance of contingent shares. The following table summarizes amounts expensed as selling, general and administrative expense related to restricted stock awards, stock options, restricted stock units, performance share awards and performance restricted stock units for the years ended October 31, 2020, 2019 and 2018 (in thousands): Year Ended October 31, 2020 2019 2018 Restricted stock awards $ 625 $ 1,018 $ 1,462 Stock options 10 158 467 Restricted stock units 186 950 (364) Performance share awards (170) 1,131 (944) Performance restricted stock units 515 708 401 Total compensation expense 1,166 3,965 1,022 Income tax effect 274 997 (35) Net compensation expense $ 892 $ 2,968 $ 1,057 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Oct. 31, 2020 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity | 14. Stockholders' Equity As of October 31, 2020, our authorized capital stock consists of 125,000,000 shares of common stock, at par value of $0.01 per share, and 1,000,000 shares of preferred stock, with no par value. As of October 31, 2020 and 2019, we had 37,296,166 and 37,370,402 shares of common stock issued, respectively, and 32,804,737 and 33,021,789 shares of common stock outstanding, respectively. There were no shares of preferred stock issued or outstanding at October 31, 2020 and 2019. Stock Repurchase Program and Treasury Stock On August 30, 2018, our Board of Directors approved a stock repurchase program that authorized the repurchase of up to $60.0 million worth of shares of our common stock. Repurchases under the new program will be made in open market transactions or privately negotiated transactions, subject to market conditions, applicable legal requirements and other relevant factors. The program does not have an expiration date or a limit on the number of shares that may be purchased. During the years ended October 31, 2020 and 2019, we purchased 450,000 shares and 583,398 shares, respectively, at a cost of $7.2 million and $9.6 million respectively, under this program. We record treasury stock purchases under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. Shares are generally issued from treasury stock at the time of grant of restricted stock awards, upon the exercise of stock options, and upon the vesting of performance shares and performance restricted stock units. On the subsequent issuance of treasury shares, we record proceeds in excess of cost as an increase in additional paid in capital. A deficiency of such proceeds relative to costs would be applied to reduce paid-in-capital associated with prior issuances to the extent available, with the remainder recorded as a charge to retained earnings. We recorded a charge to retained earnings of $0.1 million, $0.3 million and $2.1 million, in the years ended October 31, 2020, 2019, and 2018, respectively. For a summary of treasury stock activity for the years ended October 31, 2020, 2019 and 2018, refer to the Consolidated Statement of Stockholders' Equity |
Other Income (Expense)
Other Income (Expense) | 12 Months Ended |
Oct. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense) | Other income included under the caption "Other, net" on the accompanying consolidated statements of income (loss), consisted of the following (in thousands): Year Ended October 31, 2020 2019 2018 Foreign currency transaction (losses) gains $ (42) $ (187) $ 113 Foreign currency exchange derivative losses (15) (197) (11) Pension service benefit 243 396 978 Interest income 28 63 69 Other 66 41 7 Other income $ 280 $ 116 $ 1,156 |
Segment Information
Segment Information | 12 Months Ended |
Oct. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 16. Segment Information We present three reportable business segments: (1) 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) 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) NA Cabinet Components, comprising our cabinet door and components segment. We maintain a grouping called Unallocated Corporate & Other, which includes transaction expenses, stock-based compensation, long-term incentive awards based on the performance of our common stock and other factors, certain severance and legal costs not deemed to be allocable to all segments, depreciation of corporate assets, interest expense, other, net, income taxes and inter-segment eliminations, and executive incentive compensation and medical expense fluctuations relative to planned costs as determined during the annual planning process. Other general and administrative costs associated with the corporate office are allocated to the reportable segments, based upon a relative measure of profitability in order to more accurately reflect each reportable business segment's administrative costs. We allocate corporate expenses to businesses acquired mid-year from the date of acquisition. The accounting policies of our operating segments are the same as those used to prepare the accompanying consolidated financial statements. Corporate general and administrative expenses allocated during the years ended October 31, 2020, 2019 and 2018 were $21.7 million, $18.3 million and $18.7 million, respectively. ASC Topic 280-10-50, “Segment Reporting” (ASC 280) permits aggregation of operating segments based on factors including, but not limited to: (1) similar nature of products serving the building products industry, primarily the fenestration business; (2) similar production processes, although there are some differences in the amount of automation amongst operating plants; (3) similar types or classes of customers, namely the primary OEMs; (4) similar distribution methods for product delivery, although the extent of the use of third-party distributors will vary amongst the businesses; (5) similar regulatory environment; and (6) converging long-term economic similarities. Segment information for the years ended October 31, 2020, 2019 and 2018 was as follows (in thousands): NA Fenestration EU Fenestration NA Cabinet Comp. Unallocated Corp. & Other Total Year Ended October 31, 2020 Net sales $ 483,415 $ 161,054 $ 210,099 $ (2,995) $ 851,573 Depreciation and amortization 23,555 9,468 13,732 474 47,229 Operating income (loss) 39,909 20,076 (2,502) (2,218) 55,265 Capital expenditures 15,761 5,435 4,423 107 25,726 Total assets $ 252,703 $ 223,248 $ 174,713 $ 40,921 $ 691,585 Year Ended October 31, 2019 Net sales $ 503,837 $ 164,997 $ 229,644 $ (4,637) $ 893,841 Depreciation and amortization 27,054 8,845 13,178 509 49,586 Operating income (loss) 39,765 19,040 (74,236) (10,996) (26,427) Capital expenditures 12,984 6,365 5,383 151 24,883 Total assets $ 226,243 $ 212,239 $ 181,416 $ 25,212 $ 645,110 Year Ended October 31, 2018 Net sales $ 485,366 $ 159,973 $ 249,813 $ (5,367) $ 889,785 Depreciation and amortization 27,248 9,607 14,401 566 51,822 Operating income (loss) 30,633 12,702 3,167 (10,805) 35,697 Capital expenditures $ 13,929 $ 5,450 $ 6,965 $ 140 $ 26,484 The following table summarizes the change in the carrying amount of goodwill by segment for the years ended October 31, 2020 and 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 — — (74,600) — (74,600) Foreign currency translation adjustment — 536 — — 536 Balance as of October 31, 2019 $ 38,712 $ 67,704 $ 39,147 $ — $ 145,563 Foreign currency translation adjustment — 591 — — 591 Balance as of October 31, 2020 $ 38,712 $ 68,295 $ 39,147 $ — $ 146,154 For further details of Goodwill, see Note 6, "Goodwill and Intangible Assets", located herewith. We did not allocate non-operating expense or income tax expense to the reportable segments. The following table reconciles operating income (loss) as reported above to net income (loss) for the years ended October 31, 2020, 2019 and 2018 (in thousands): Year Ended October 31, 2020 2019 2018 Operating income (loss) $ 55,265 $ (26,427) $ 35,697 Interest expense (5,245) (9,643) (11,100) Other, net 280 116 1,156 Income tax (expense) benefit (11,804) (10,776) 800 Net income (loss) $ 38,496 $ (46,730) $ 26,553 Geographic Information Our manufacturing facilities and all long-lived assets are located in the U.S., U.K. and Germany. We attribute our net sales to a geographic region based on the location of the customer. The following tables provide information concerning our net sales for the years ended October 31, 2020, 2019 and 2018, and our long-lived assets as of October 31, 2020 and 2019 (in thousands): Year Ended October 31, Net sales 2020 2019 2018 United States $ 654,802 $ 683,204 $ 676,776 Europe 158,829 162,106 159,652 Canada 18,213 20,088 23,610 Asia 11,504 18,360 18,584 Other foreign countries 8,223 10,083 11,163 Total net sales $ 851,573 $ 893,841 $ 889,785 October 31, Long-lived assets, net 2020 2019 United States $ 307,534 $ 288,722 Germany 25,519 16,899 United Kingdom 142,097 140,839 Total long-lived assets, net $ 475,150 $ 446,460 Long-lived assets, net includes: property, plant and equipment, net; goodwill; and intangible assets, net. Beginning in the year ended October 31, 2020, this amount also includes operating lease right-of-use assets. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Oct. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 17. 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. The computation of basic and diluted earnings per share for the years ended October 31, 2020, 2019 and 2018 follows (in thousands, except per share data): Year Ended October 31, 2020 Net Income (Loss) Weighted Average Shares Per Share Basic earnings per common share $ 38,496 32,689 $ 1.18 Effect of dilutive securities: Stock options 10 Restricted stock 90 Performance restricted stock units 32 Diluted loss per common share $ 38,496 32,821 $ 1.17 Year Ended October 31, 2019 Basic loss per common share $ (46,730) 32,960 $ (1.42) Diluted loss per common share $ (46,730) 32,960 $ (1.42) Effect of anti-dilutive securities: (1) Stock options 40 Restricted stock 113 Performance share awards 28 Year Ended October 31, 2018 Basic earnings per common share $ 26,553 34,701 $ 0.77 Effect of dilutive securities: Stock options 198 Restricted stock 126 Diluted earnings per common share $ 26,553 35,025 $ 0.76 (1) The computation of diluted earnings per share excludes outstanding stock options and other common stock equivalents when their inclusion would be anti-dilutive. For the years ended October 31, 2020, 2019 and 2018, we had 1,032,201, 1,267,141, and 1,000,356 securities, respectively, that were potentially dilutive in future earnings per share calculations. Such dilution will be dependent on the excess of the market price of our stock over the exercise price and other components of the treasury stock method. |
Unaudited Quarterly Data
Unaudited Quarterly Data | 12 Months Ended |
Oct. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Data | lected quarterly financial data for the years ended October 31, 2020 and 2019 was as follows (amounts in thousands, except per share amounts): For the Quarter Ended January 31, 2020 April 30, 2020 July 31, 2020 October 31, 2020 Net sales $ 196,597 $ 187,475 $ 212,096 $ 255,405 Cost of sales (excluding depreciation and amortization) 157,427 149,732 162,427 189,164 Depreciation and amortization 12,905 11,886 11,060 11,378 Operating income 1,980 8,893 16,563 27,829 Net income $ 10 $ 5,501 $ 10,833 $ 22,152 Basic earnings per share — 0.17 0.33 0.68 Diluted earnings per share — 0.17 0.33 0.68 Cash dividends paid per common share $ 0.08 $ 0.08 $ 0.08 $ 0.08 For the Quarter Ended January 31, 2019 April 30, 2019 July 31, 2019 October 31, 2019 Net sales $ 196,808 $ 218,203 $ 238,461 $ 240,369 Cost of sales (excluding depreciation and amortization) 158,557 171,378 181,357 183,128 Depreciation and amortization 12,572 12,404 12,182 12,428 Operating (loss) income (2,450) (19,363) 19,110 (23,724) Net (loss) income $ (3,649) $ (23,974) $ 11,841 $ (30,948) Basic (loss) earnings per share (0.11) (0.73) 0.36 (0.94) Diluted (loss) earnings per share (0.11) (0.73) 0.36 (0.94) Cash dividends paid per common share $ 0.08 $ 0.08 $ 0.08 $ 0.08 |
New Accounting Guidance
New Accounting Guidance | 12 Months Ended |
Oct. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Guidance | 19. New Accounting Guidance Accounting Standards Recently Adopted Effective November 1, 2019 we adopted ASC Topic 842 , using the modified retrospective approach and did not have a cumulative-effect adjustment in retained earnings as a result of the adoption. Topic 842 significantly changes accounting for leases by requiring that lessees recognize a liability representing the obligation to make lease payments and a related ROU asset for virtually all lease transactions. Upon adoption, we implemented policy elections and practical expedients which include the following: • package of practical expedients which allows us to avoid reassessing contracts that commenced prior to adoption that were properly evaluated under legacy lease accounting guidance; • excluding ROU assets and lease liabilities for leases with terms that are less than one year; • combining lease and non-lease components and accounting for them as a single lease (elected by asset class); • excluding land easements that existed or expired prior to adoption; and • policy election that eliminates the need for adjusting prior period comparable financial statements prepared under legacy (Accounting Standards Codification Topic 840) lease accounting guidance. As a result of adopting ASC Topic 842, we recorded additional lease liabilities of approximately $39.3 million and ROU assets of approximately $38.9 million on our consolidated balance sheet. The difference between the lease liabilities and ROU assets is due to rent holiday and lease build-out incentives that were recorded as deferred lease liabilities under legacy accounting guidance. The adoption of ASC Topic 842 did not materially change our consolidated statements of income or consolidated statements of cash flows. See Note 5. "Leases," for further discussion. Accounting Standards Not Yet Adopted In June 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326). This amendment replaces the incurred loss impairment methodology in current U.S. GAAP and requires that financial assets be measured on an amortized cost basis and presented at the net amount expected to be collected. This new methodology reflects expected credit losses (rather than probable credit losses) and requires consideration of a broader range of supportable information when determining these estimated credit losses, including relevant experience, current conditions and supportable forecasts to determine collectability. In addition, the amendment provides guidance with regard to the use of an allowance for credit losses for purchased financial assets and available-for-sale debt securities. This amendment becomes effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. We expect to adopt this amendment during fiscal 2021, with no material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20). |
Nature of Operations, Basis o_2
Nature of Operations, Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation, Policy | Basis of Presentation and Principles of ConsolidationOur consolidated financial statements have been prepared by us in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). We consolidate our wholly-owned subsidiaries and eliminate intercompany sales and transactions. We have no cost or equity investments in companies that are not wholly-owned. In our opinion, these audited financial statements contain all adjustments necessary to fairly present our financial position, results of operations and cash flows for the periods presented. |
Use of Estimates, Policy | Use of Estimates In preparing financial statements, we make informed judgments and estimates that affect the reported amounts of assets and liabilities as of the date of the financial statements and affect the reported amounts of revenues and expenses during the reporting period. We review our estimates on an ongoing basis, including those related to impairment of long lived assets and goodwill, pension and retirement liabilities, contingencies and income taxes. Changes in facts and circumstances may result in revised estimates and actual results may differ from these estimates. During the year ended October 31, 2018, we recorded a change in estimate related to certain assets involved in restructuring activities, as more fully described under the caption "Restructuring." A summary of our significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements follows: |
Revenue From Contracts with Customers, Policy | Revenue from Contracts with Customers Revenue recognition We recognize revenue that reflects the consideration we expect to receive for product sales upon transfer to customers. Revenue for product sales is recognized when control of the promised products is transferred to our customers, and we are entitled to consideration in exchange for such transfer. 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 products, 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 cost s We account for shipping and handling services as fulfillment services; accordingly, freight revenue is 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 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. Disaggregation of revenue We produce a wide variety of products that are used in the fenestration industry, including insulating glass 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 years ended October 31, 2020, 2019, and 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 16, “Segment Information." Year Ended October 31, 2020 2019 2018 (in thousands) NA Fenestration: United States - fenestration $ 427,616 $ 439,536 $ 412,000 International - fenestration 28,585 31,106 39,309 United States - non-fenestration 19,279 17,061 18,211 International - non-fenestration 7,935 16,134 15,846 $ 483,415 $ 503,837 $ 485,366 EU Fenestration: International - fenestration 134,432 139,638 135,415 International - non-fenestration 26,622 25,359 24,558 $ 161,054 $ 164,997 $ 159,973 NA Cabinet Components: United States - fenestration $ 11,842 $ 13,144 $ 14,596 United States - non-fenestration 196,479 214,211 232,990 International - non-fenestration 1,778 2,289 2,227 $ 210,099 $ 229,644 $ 249,813 Unallocated Corporate & Other: Eliminations $ (2,995) $ (4,637) $ (5,367) $ (2,995) $ (4,637) $ (5,367) Net sales $ 851,573 $ 893,841 $ 889,785 |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents Cash equivalents include all highly liquid investments with an original maturity of three months or less. Such securities with an original maturity which exceeds three months are deemed to be short-term investments. We maintain cash and cash equivalents at several financial institutions, which at times may not be federally insured or may exceed federally insured limits. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risks on such accounts. |
Concentraction Credit Risk and Allowance Policy | Concentration of Credit Risk and Allowance for Doubtful Accounts Certain of our businesses or product lines are largely dependent on a relatively few large customers. Although we believe we have an extensive customer base, the loss of one of these large customers or if such customers were to incur a prolonged period of decline in business, our financial condition and results of operations could be adversely affected. For the year ended October 31, 2020, one customer provided more than 10% of our consolidated net sales. For the years ending October 31, 2019 and 2018, no customers provided more than 10% of our consolidated net sales. |
Business Combinations Policy | Business CombinationsWe apply the acquisition method of accounting for business combinations in accordance with U.S. GAAP, which requires us to make use of estimates and judgments to allocate the purchase price paid for acquisitions to the fair value of the assets and liabilities acquired. We account for contingent assets and liabilities at fair value on the acquisition date, and record changes to fair value associated with these assets and liabilities as a period cost as incurred. We use established valuation techniques and engage reputable valuation specialists to assist us with these valuations. |
Inventory, Policy | Inventory We record inventory at the lower of cost or net realizable value. Inventories are valued using the first-in first-out (FIFO) method. Fixed costs related to excess manufacturing capacity are evaluated and expensed in the period, to insure that inventory is properly capitalized. Inventory quantities are regularly reviewed and provisions for excess or obsolete inventory are recorded primarily based on our forecast of future demand and our estimates regarding current and future market conditions. Significant unanticipated variances to our forecasts could require a change in the provision for excess or obsolete inventory, resulting in a charge to net income during the period of the change. |
Impairment or Disposal of Long-Lived Assets, Policy | Long-Lived Assets Property, Plant and Equipment and Intangible Assets with Defined Lives We make judgments and estimates related to the carrying value of property, plant and equipment, intangible assets with defined lives, and long-lived assets, which include determining when to capitalize costs, the depreciation and amortization methods to use and the useful lives of these assets. We evaluate these assets for impairment when there are indicators that the carrying values of these assets might not be recoverable. Such indicators of impairment may include changes in technology, significant market fluctuations, historical losses or loss of a significant customer, or other changes in circumstance that could affect the assets’ ability to generate future cash flows. When we evaluate these assets for impairment, we compare the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset to its carrying value. If the carrying value exceeds the sum of the undiscounted cash flows, and there is no alternative use for the asset, we determine that the asset is impaired. To measure the impairment charge, we compare the carrying amount of the long-lived asset to its fair value, as determined by quoted market prices in active markets, if available, or by discounting the projected future cash flows. This calculation of fair value requires us to develop and employ long-term forecasts of future operating results related to these assets. These forecasts are based on assumptions about demand for our products and future market conditions. Future events and unanticipated changes to these assumptions could require a provision for impairment, resulting in a charge to net income during the period of the change. We monitor relevant circumstances, including industry trends, general economic conditions, and the potential impact that such circumstances might have on the valuation of our identifiable intangible assets with finite lives. Events and changes in circumstance that may cause a triggering event and necessitate such a review include, but are not limited to: a decrease in sales for certain customers, improvements or changes in technology, and/or a decision to discontinue the use of a trademark or trade name, or allow a patent to lapse. Such events could negatively impact the fair value of our identifiable intangible assets. In such circumstances, we may evaluate the underlying assumptions and estimates made by us in order to assess the appropriate valuation of these identifiable intangible assets and compare to the carrying value of the assets. We may be required to write down these identifiable intangible assets and record a non-cash impairment charge. When we originally value our intangible assets, we use a variety of techniques to establish the carrying value of the assets, including the relief from royalty method, excess current year earnings method and income method. Changes in market conditions throughout 2019 impacted our long-term forecasts of future operating results with regard to the reduction of significant sales volume to a large customer of our United States (U.S.) vinyl operations, and lower-than-expected operating performance of our NA Cabinet Components business. The World Health Organization's (WHO), declaration of COVID-19 as a global pandemic also created significant changes in market conditions throughout 2020. We determined that these conditions were indicators of triggering events which necessitated an evaluation of certain long-term assets used in these businesses for potential impairment. We compared the projected undiscounted cash flows we expected to realize associated with these assets over the remaining useful lives of the primary operating assets to the net book value of the long-term assets, including goodwill, and determined that these assets were not impaired. Therefore, we did not record an impairment charge related to property, plant and equipment or intangible assets with defined lives during the years ended October 31, 2020 and 2019. There were no indicators of triggering events noted for the year ended October 31, 2018. Software development costs, including costs incurred to purchase third-party software, are capitalized when we have determined that the technology is capable of meeting our performance requirements, and we have authorized funding for the project. We cease capitalization of software costs when the software is substantially complete and is ready for its intended use. The software is then amortized over its estimated useful life. When events or circumstances indicate the carrying value of internal use software might not be recoverable, we assess the recoverability of these assets by comparing the carrying value of the asset to the undiscounted future cash flows expected to be generated from the asset’s use, consistent with the methodology to test other property, plant and equipment for impairment. Property, plant and equipment is stated at cost and is depreciated using the straight-line method over the estimated useful lives of the assets. We capitalize betterments which extend the useful lives or significantly improve the operational efficiency of assets. We expense repair and maintenance costs as incurred. The estimated useful lives of our primary asset categories at October 31, 2020 were as follows: Useful Life (in Years) Land improvements 7 to 25 Buildings 25 to 40 Building improvements 5 to 20 Machinery and equipment 2 to 15 Leasehold improvements are depreciated over the shorter of their estimated useful lives or the term of the lease. |
Goodwill and Intangible Assets, Goodwill, Policy | Goodwill We use the acquisition method to account for business combinations and, to the extent that the purchase price exceeds the fair value of the net assets acquired, we record goodwill. In accordance with U.S. GAAP, we are required to evaluate our goodwill at least annually. We perform our annual goodwill assessment as of August 31, or more frequently if indicators of impairment exist. Qualitative factors that indicate impairment could include, but are not limited to, (i) macroeconomic conditions, (ii) industry and market considerations, (iii) cost factors, (iv) overall financial performance of the reporting unit, and (v) other relevant entity-specific events. The first step in our annual goodwill assessment is to perform the optional qualitative assessment allowed by ASC Topic 350 “Intangibles - Goodwill and Other” (ASC 350). In our qualitative assessment, we evaluate relevant events or circumstances to determine whether it is more likely than not (i.e., greater than 50%) that the fair value of a reporting unit is less than its carrying amount. If we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, ASC 350 requires us to compare the fair value of such reporting unit to its carrying value including goodwill. To determine the fair value of our reporting units, we use multiple valuation techniques including a discounted cash flow analysis, using the applicable weighted average cost of capital, in combination with a market approach that uses market multiples and a selection of guideline public companies. This test requires us to make assumptions about the future growth of our business and the market in general, as well as other variables such as the level of investment in capital expenditure, growth in working capital requirements and the terminal or residual value of our reporting units beyond the periods of estimated annual cash flows. We use a third-party valuation firm to assist us with this analysis. If the fair value of each reporting unit exceeds its carrying value, no action is required. Otherwise, an impairment loss is recorded to the extent that the carrying amount of the reporting unit including goodwill exceeds the fair value of that reporting unit. We believe the estimates and assumptions used in our impairment assessment are reasonable based on available market information, but variations in any of the assumptions could result in materially different calculations of fair value and determinations of whether or not an impairment is indicated during current or future periods. As a result of quantitative assessments performed during the year ended October 31, 2019, we recorded impairment charges totaling $74.6 million during the year ended October 31, 2019, reducing the goodwill balance applicable to the reporting unit included in our NA Cabinet Components operating segment from $113.7 million to $39.1 million. During the three months ended April 30, 2020, we determined the WHO's characterization of the outbreak of COVID-19 as a global pandemic was a triggering event which could indicate that the carrying value of our goodwill was no longer greater than the fair value. As a result of this determination, we performed a qualitative assessment for each of the five goodwill reportable units. As a result of this analysis, we determined that our goodwill was not more likely than not impaired and no quantitative assessment was necessary. |
Restructurings, Policy | RestructuringWe 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 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 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 assumed sublet in the current period. For other costs directly related to the restructuring effort, such as equipment moving costs, we expense in the period incurred. |
Liability Reserve Estimate, Policy | Insurance We manage our exposure to losses for workers’ compensation, group medical, property, casualty and other insurance claims through a combination of self-insurance retentions and insurance coverage with third-party carriers. We record undiscounted liabilities associated with our portion of these exposures, which we estimate by considering various factors such as our historical claims experience, severity factors and estimated claims incurred but not reported, for which we have developed loss development factors, which are estimates as to how claims will develop over time until closed. While we consider a number of factors in preparing the estimates, sensitive assumptions using significant judgment are made in determining the amounts that are accrued in the financial statements. Actual claims could differ significantly from these estimated liabilities, depending on future claims experience. We do not record insurance recoveries until any contingencies relating to the claim have been resolved. |
Pension and Other Postretirement Plans, Pensions, Policy | Retirement Plans We sponsor a defined benefit pension plan and an unfunded postretirement plan that provides health care and life insurance benefits for a limited pool of eligible retirees and dependents. To measure our liabilities associated with these plans, we make assumptions related to future events, including expected return on plan assets, rate of compensation increases, and healthcare cost trend rates. The discount rate reflects the rate at which benefits could be effectively settled on the measurement date. We determine our discount rate using a RATE: Link Model whereby target yields are developed from bonds across a range of maturity points, and a curve is fitted to those targets. Spot rates (zero coupon bond yields) are developed from the curve and used to discount benefit payments associated with each future year. Actual pension plan asset investment performance, as well as other economic experience such as discount rate and demographic experience, will either reduce or increase unamortized pension losses at the end of any fiscal year, which ultimately affects future pension costs. |
Standard Product Warranty, Policy | Warranty Obligations We accrue warranty obligations when we recognize revenue for certain products. Our provision for warranty obligations is based on historical costs incurred for such obligations and is adjusted, where appropriate, based on current conditions and factors. Our ability to estimate our warranty obligations is subject to significant uncertainties, including changes in product design and our overall product sales mix. |
Income Tax, Policy | Income Taxes We record the estimated future tax effects of temporary differences between the tax basis of assets and liabilities and the amounts reported in our consolidated balance sheets, as well as net operating losses and tax credit carry forwards. We evaluate the carrying value of the net deferred tax assets and determine whether we will be able to generate sufficient future taxable income to realize our deferred tax assets. We perform this review for recoverability on a jurisdictional basis, whereby we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence can be objectively verified. Cumulative losses in recent years is a significant piece of negative evidence that is difficult to overcome in determining that a valuation allowance is not needed against deferred tax assets. Thus, it is generally difficult for positive evidence regarding projected future taxable income exclusive of reversing taxable temporary differences to outweigh objective negative evidence of recent financial reporting losses. We recorded net income for the years ended October 31, 2020 and October 31, 2018 and net loss for the year ended October 31, 2019. We have recorded pre-tax cumulative income from operations of $40.1 million for the three-year period ended October 31, 2020. We believe we will fully realize our deferred tax assets, net of a recorded valuation allowance. We project future taxable income using the same forecasts used to test long-lived assets and intangibles for impairment, scheduling out the future reversal of existing taxable temporary differences and reviewing our most recent financial operations. In the event the estimates and assumptions indicate we will not generate sufficient future taxable income to realize our deferred tax assets, we record a valuation allowance against a portion of our deferred tax assets. We evaluate our on-going tax positions to determine if it is more-likely-than-not we will be successful in defending such positions if challenged by taxing authorities. To the extent that our tax positions do not meet the more-likely-than-not criteria, we record a liability for uncertain tax positions. We have recorded a liability for uncertain tax positions which stem from certain state tax items related to the interpretation of tax laws and regulations. We continue to evaluate our positions regarding various state tax interpretations at each reporting date, until the applicable statute of limitations lapse. |
Derivatives, Policy | Derivative InstrumentsWe have historically used financial and commodity-based derivative contracts to manage our exposure to fluctuations in foreign currency exchange rates and aluminum prices. All derivatives are measured at fair value on a recurring basis. We have not designated the derivative instruments we use as cash flow hedges under ASC Topic 815 "Derivatives and Hedging” (ASC 815). Therefore, all gains and losses, both realized and unrealized, are recognized in the consolidated statements of income (loss) in the period of the change as the underlying assets and liabilities are marked-to-market. We do not enter into derivative instruments for speculative or trading purposes. As such, these instruments are considered economic hedges, and are reflected in the operating activities section of the consolidated statements of cash flow. |
Foreign Currency Transactions and Translations Policy | Foreign Currency Translation Our consolidated financial statements are presented in our reporting currency, the United States Dollar. Our German and U.K. operations are measured using the local currency as the functional currency. The assets and liabilities of our foreign operations which are denominated in other currencies are translated to United States Dollars using the prevailing exchange rates as of the balance sheet date. Revenues and expenses are translated at the average exchange rates for the applicable period. The resulting translation adjustments are recorded as a component of accumulated other comprehensive loss on the consolidated balance sheets. |
Share-based Compensation, Option and Incentive Plans Policy | Stock–Based Compensation We have issued stock-based compensation in the form of stock options to directors, employees and officers, and non-vested restricted stock awards to certain key employees and officers. We apply the provisions of ASC Topic 718 “Compensation - Stock Compensation” (ASC 718), to determine the fair value of stock option awards on the date of grant using the Black-Scholes valuation model. We recognize the fair value as compensation expense on a straight-line basis over the requisite service period of the award based on awards ultimately expected to vest. Stock options granted to directors vest immediately while the stock options granted to our employees and officers typically vest ratably over a three-year period with service and continued employment as the vesting conditions. For new option grants to retirement-eligible employees, we recognize expense and vest immediately upon grant, consistent with the retirement vesting acceleration provisions of these grants. For employees near retirement age, we amortize such grants over the period from the grant date to the retirement-eligibility date if such period is shorter than the standard vesting schedule. For grants of non-vested restricted stock, we calculate the compensation expense at the grant date as the number of shares granted multiplied by the closing stock price of our common stock on the date of grant. This expense is recognized ratably over the vesting period. Our non-vested restricted stock grants to officers and employees cliff vest over a three-year period with service and continued employment as the only vesting criteria. Our fair value determination of stock-based payment awards on the date of grant using an option-pricing model is affected by our stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, our expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behavior over the expected term, our dividend rate, risk-free rate and expectation with regards to forfeitures. Option-pricing models were developed for use in estimating the value of traded options that have no vesting or hedging restrictions and are fully transferable. Because our employee stock options have certain characteristics that are significantly different from traded options, and because changes in the subjective assumptions can materially affect the estimated value, the valuation models may not provide an accurate measure of the fair value of our employee stock options. Accordingly, that value may not be indicative of the fair value observed in a willing buyer/willing seller market transaction. We have granted other awards which are linked to the performance of our common stock, but will settle in cash rather than the issuance of shares of our common stock. The value of these awards fluctuates with changes in our stock price, with the resulting gains or losses reflected in the period of the change. We have recorded current and non-current liabilities related to these awards reflected in the accompanying consolidated balance sheets at October 31, 2020 and 2019. See Note 15, “Stock-based Compensation.” In addition, we have granted performance share awards which settle in cash and shares upon vesting. The award granted during the year ended October 31, 2018 has vesting criteria based on a market condition (relative total shareholder return) and an internal performance condition (earnings per share growth). The awards granted during the years ended October 31, 2020 and 2019 use return on net assets as the vesting condition and settle in cash. We use a Monte Carlo simulation model to value the market condition and our stock price on the date of grant to value the internal performance condition. We bifurcate the liability and equity portion of the awards (amounts expected to settle in cash and shares, respectively) and recognize expense ratably over the vesting period of three years. |
Stockholders' Equity, Policy | Treasury Stock We use the cost method to record treasury stock purchases whereby the entire cost of the acquired shares of our common stock is recorded as treasury stock (at cost). When we subsequently reissue these shares, proceeds in excess of cost upon the issuance of treasury shares are credited to additional paid in capital, while any deficiency is charged to retained earnings. |
Earnings Per Share, Policy | Earnings per Share Data We calculate basic earnings per share based on the weighted average number of our common shares outstanding for the applicable period. We calculate diluted earnings per share based on the weighted average number of our common shares outstanding for the period plus all potentially dilutive securities using the treasury stock method, whereby we assume that all such shares are converted into common shares at the beginning of the period, if deemed to be dilutive. If we incur a loss from continuing operations, the effects of potentially dilutive common stock equivalents (stock options and unvested restricted stock awards) are excluded from the calculation of diluted earnings per share because the effect would be anti-dilutive. Performance shares and performance restricted stock units are excluded from contingent shares for purposes of calculating diluted weighted average shares until the performance measure criteria is probable and shares are likely to be issued. |
Subsequent Events, Policy | Subsequent Events We have evaluated events occurring after the balance sheet date for possible disclosure as a subsequent event through the date the financial statements were issued. |
Nature of Operations, Basis o_3
Nature of Operations, Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Product Sales | The following table summarizes our product sales for the three years ended October 31, 2020, 2019, and 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 16, “Segment Information." Year Ended October 31, 2020 2019 2018 (in thousands) NA Fenestration: United States - fenestration $ 427,616 $ 439,536 $ 412,000 International - fenestration 28,585 31,106 39,309 United States - non-fenestration 19,279 17,061 18,211 International - non-fenestration 7,935 16,134 15,846 $ 483,415 $ 503,837 $ 485,366 EU Fenestration: International - fenestration 134,432 139,638 135,415 International - non-fenestration 26,622 25,359 24,558 $ 161,054 $ 164,997 $ 159,973 NA Cabinet Components: United States - fenestration $ 11,842 $ 13,144 $ 14,596 United States - non-fenestration 196,479 214,211 232,990 International - non-fenestration 1,778 2,289 2,227 $ 210,099 $ 229,644 $ 249,813 Unallocated Corporate & Other: Eliminations $ (2,995) $ (4,637) $ (5,367) $ (2,995) $ (4,637) $ (5,367) Net sales $ 851,573 $ 893,841 $ 889,785 |
Property Assets Useful Life | The estimated useful lives of our primary asset categories at October 31, 2020 were as follows: Useful Life (in Years) Land improvements 7 to 25 Buildings 25 to 40 Building improvements 5 to 20 Machinery and equipment 2 to 15 |
Cash Flow, Supplemental Disclosures | The following table summarizes our supplemental cash flow information for the years ended October 31, 2020, 2019 and 2018 (in thousands): Year Ended October 31, 2020 2019 2018 Cash paid for interest $ 4,715 $ 9,020 $ 7,890 Cash paid for income taxes 12,118 5,081 4,217 Cash received from income tax refunds 352 1,020 95 Noncash investing and financing activities: Increase in capitalized expenditures in accounts payable and accrued liabilities $ 2,370 $ 2,897 $ 264 |
Receivables & Allowance (Tables
Receivables & Allowance (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts receivable consisted of the following as of October 31, 2020 and 2019 (in thousands): October 31, 2020 2019 Trade receivables $ 88,287 $ 82,745 Other 161 594 Total 88,448 83,339 Less: Allowance for doubtful accounts 161 393 Accounts receivable, net $ 88,287 $ 82,946 |
Financing Receivable, Current, Allowance for Credit Loss | The changes in our allowance for doubtful accounts were as follows (in thousands): Year Ended October 31, 2020 2019 2018 Beginning balance as of November 1, 2019, 2018 and 2017, respectively $ 393 $ 325 $ 333 Bad debt expense 262 700 46 Amounts written off (494) (916) (54) Recoveries — 284 — Balance as of October 31, $ 161 $ 393 $ 325 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following at October 31, 2020 and 2019 (in thousands): October 31, 2020 2019 Raw materials $ 33,298 $ 32,818 Finished goods and work in process 32,347 35,538 Supplies and other 2,020 2,593 Total 67,665 70,949 Less: Inventory reserves 6,484 3,790 Inventories, net $ 61,181 $ 67,159 |
Inventory Reserve Rollforward | The changes in our inventory reserve accounts were as follows (in thousands): Year Ended October 31, 2020 2019 2018 Beginning balance as of November 1, 2019, 2018 and 2017, respectively $ 3,790 $ 4,375 $ 4,620 Charged to cost of sales 2,713 341 1,201 Write-offs — (939) (1,415) Other (19) 13 (31) Balance as of October 31, $ 6,484 $ 3,790 $ 4,375 |
Property, Plant & and Equipment
Property, Plant & and Equipment (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consisted of the following at October 31, 2020 and 2019 (in thousands): October 31, 2020 2019 Land and land improvements $ 10,298 $ 10,298 Buildings and building improvements 100,576 101,569 Machinery and equipment 398,950 386,953 Construction in progress 14,424 12,348 Property, plant and equipment, gross 524,248 511,168 Less: Accumulated depreciation 340,144 317,568 Property, plant and equipment, net $ 184,104 $ 193,600 |
Leases, Codification Topic 842
Leases, Codification Topic 842 (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Leases [Abstract] | |
Assets And Liabilities, Lessee | The table below presents the lease-related assets and liabilities recorded on the balance sheet at October 31, 2020 (in thousands): Leases Classification October 31, 2020 Assets Operating lease assets Operating lease right-of-use assets $ 51,824 Finance lease assets Property, plant and equipment (less accumulated depreciation of $1,089) 15,609 Total lease assets $ 67,433 Liabilities Current Operating Current operating lease liabilities $ 7,459 Finance Current maturities of long-term debt 962 Noncurrent Operating Noncurrent operating lease liabilities 44,873 Finance Long-term debt 14,236 Total lease liabilities $ 67,530 |
Lease, Cost | The table below presents the components for the year ended October 31, 2020 (in thousands): Components of lease costs Year Ended October 31, 2020 Operating lease cost $ 8,866 Finance lease cost Amortization of leased assets 1,181 Interest on lease liabilities 557 Variable lease costs 748 Total lease cost $ 8,316 The table below presents supplemental cash flow information related to leases for the year ended October 31, 2020 (in thousands): Supplemental Cash Flow Information Year Ended October 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Finance leases - financing cash flows $ 1,092 Finance leases - operating cash flows $ 557 Operating leases - operating cash flows $ 8,681 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 19,559 Finance Leases $ 398 |
Lease Term and Discount Rate, Lessee | The table below presents the weighted average remaining lease terms and weighted average discount rates for the Company's leases as of October 31, 2020: Year Ended October 31, 2020 Weighted average remaining lease term (in years) Operating leases 7.8 Financing leases 15.25 Weighted average discount rate Operating leases 3.52 % Financing leases 3.62 % |
Lessee, Operating Lease, Liability, Maturity | The table below presents the maturity of the lease liabilities as of October 31, 2020 (in thousands): Operating Leases Finance Leases 2021 $ 9,191 $ 1,496 2022 8,754 1,449 2023 8,340 1,350 2024 7,581 1,247 2025 6,166 1,188 Thereafter 19,941 12,768 Total lease payments 59,973 19,498 Less: present value discount 7,641 4,300 Total lease liabilities $ 52,332 $ 15,198 Operating Leases Finance Leases 2020 $ 9,121 $ 1,020 2021 6,981 810 2022 6,012 815 2023 5,506 973 2024 4,699 713 Thereafter 15,220 11,392 Total $ 47,539 $ 15,723 Less: amount representing interest 5,064 Present value of minimum lease payments $ 10,659 |
Finance Lease, Liability, Fiscal Year Maturity | The table below presents the maturity of the lease liabilities as of October 31, 2020 (in thousands): Operating Leases Finance Leases 2021 $ 9,191 $ 1,496 2022 8,754 1,449 2023 8,340 1,350 2024 7,581 1,247 2025 6,166 1,188 Thereafter 19,941 12,768 Total lease payments 59,973 19,498 Less: present value discount 7,641 4,300 Total lease liabilities $ 52,332 $ 15,198 Operating Leases Finance Leases 2020 $ 9,121 $ 1,020 2021 6,981 810 2022 6,012 815 2023 5,506 973 2024 4,699 713 Thereafter 15,220 11,392 Total $ 47,539 $ 15,723 Less: amount representing interest 5,064 Present value of minimum lease payments $ 10,659 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill | The change in the carrying amount of goodwill for the years ended October 31, 2020 and 2019 was as follows (in thousands): Year Ended October 31, 2020 2019 Beginning balance as of November 1, 2020 and 2019 $ 145,563 $ 219,627 Goodwill impairment charge — (74,600) Foreign currency translation adjustment 591 536 Balance as of October 31, 2020 $ 146,154 $ 145,563 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | Amortizable intangible assets consisted of the following as of October 31, 2020 and 2019 (in thousands): October 31, 2020 October 31, 2020 October 31, 2019 Remaining Weighted Average Useful Life Gross Carrying Accumulated Gross Carrying Accumulated Customer relationships 9 years $ 154,004 $ 80,441 $ 153,950 $ 70,103 Trademarks and trade names 9 years 55,745 37,314 55,745 35,210 Patents and other technology 3 years 22,386 21,312 22,386 19,471 Total $ 232,135 $ 139,067 $ 232,081 $ 124,784 |
Estimated Amortization Expense Related to Intangible Assets | Estimated remaining amortization expense, assuming current intangible balances and no new acquisitions, for future fiscal years ending October 31, is as follows (in thousands): Estimated 2021 $ 12,573 2022 11,941 2023 11,194 2024 10,464 2025 9,239 Thereafter 37,657 Total $ 93,068 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | Accrued liabilities consisted of the following at October 31, 2020 and 2019 (in thousands): October 31, 2020 2019 Payroll, payroll taxes and employee benefits $ 16,000 $ 19,637 Accrued insurance and workers compensation 5,108 3,514 Sales allowances 6,297 6,323 Deferred compensation (current portion) 192 1,231 Deferred revenue 763 1,251 Warranties 81 136 Audit, legal, and other professional fees 1,562 2,561 Accrued taxes 4,000 2,403 Other 4,286 2,165 Accrued liabilities $ 38,289 $ 39,221 |
Debt and Capital Lease Obligati
Debt and Capital Lease Obligations (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt & Capital Lease Obligations | Long-term debt consisted of the following at October 31, 2020 and 2019 (in thousands): October 31, 2020 2019 Revolving Credit Facility $ 103,000 $ 142,500 Finance lease obligations and other 15,321 15,865 Unamortized deferred financing fees (901) (1,205) Total debt 117,420 157,160 Less: Current maturities of long-term debt 692 746 Long-term debt $ 116,728 $ 156,414 |
Schedule of Margin and Commitment Fee | 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 Maturities of Long-term Debt | The table below presents the scheduled maturity dates of our long-term debt outstanding (excluding deferred loan costs of $0.9 million ) at October 31, 2020 (in thousands): Revolving Credit Facility Finance Leases and Other Obligations Aggregate Maturities 2021 $ — $ 1,529 $ 1,529 2022 — 1,482 1,482 2023 103,000 1,383 104,383 2024 — 1,271 1,271 2025 — 1,188 1,188 Thereafter — 12,768 12,768 Total debt payments 103,000 19,621 122,621 Less: present value discount of finance leases — (4,300) (4,300) Total $ 103,000 $ 15,321 $ 118,321 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Retirement Benefits [Abstract] | |
Funded Status and Net periodic Benefit Cost | The changes in benefit obligation and plan assets, and our funded status (reported in deferred pension and postretirement benefits on the consolidated balance sheets) were as follows (in thousands): October 31, Change in Benefit Obligation: 2020 2019 Beginning balance as of November 1, 2019 and 2018, respectively $ 44,323 $ 35,959 Service cost 1,262 3,629 Interest cost 1,139 1,456 Actuarial loss 2,823 7,690 Benefits paid (712) (3,581) Administrative expenses (785) (830) Curtailments (1,141) — Settlements (2,084) — Projected benefit obligation at October 31, $ 44,825 $ 44,323 Change in Plan Assets: Beginning balance as of November 1, 2019 and 2018, respectively $ 31,212 $ 32,064 Actual return on plan assets 2,789 2,869 Employer contributions 3,700 690 Benefits paid (712) (3,581) Administrative expenses (785) (830) Settlements (2,084) — Fair value of plan assets at October 31, $ 34,120 $ 31,212 Noncurrent liability - Funded Status $ (10,705) $ (13,111) |
Net Periodic Pension Cost | The net periodic benefit cost for the years ended October 31, 2020, 2019 and 2018, was as follows (in thousands): Year Ended October 31, 2020 2019 2018 Service cost $ 1,262 $ 3,629 $ 3,908 Interest cost 1,139 1,456 1,130 Expected return on plan assets (2,006) (1,977) (2,172) Amortization of net loss 162 125 64 Settlements 462 — — Net periodic benefit cost $ 1,019 $ 3,233 $ 2,930 |
Amounts Recognized in Other Comprehensive Income (Loss) | The changes in plan assets and projected benefit obligations which were recognized in our other comprehensive loss for the years ended October 31, 2020, 2019 and 2018 were as follows (in thousands): Year Ended October 31, 2020 2019 2018 Net loss (gain) arising during the period $ 2,141 $ 6,697 $ (2,189) Less: Amortization of net loss 162 125 64 Less: Curtailments 1,141 — — Less: Settlements 462 — — Total recognized in other comprehensive loss $ 376 $ 6,572 $ (2,253) |
Assumptions Used in Benefit Calculations | The following table presents our assumptions for pension benefit calculations for the years ended October 31, 2020, 2019 and 2018: For the Year Ended October 31, 2020 2019 2018 2020 2019 2018 Weighted Average Assumptions: Benefit Obligation Net Periodic Benefit Cost Discount rate 3.22% 3.10% 4.44% 3.10% 4.44% 3.68% Rate of compensation increase —% 3.00% 3.00% —% 3.00% 3.00% Expected return on plan assets n/a n/a n/a 6.50% 6.50% 6.50% |
Allocation and Fair Value of Pension Assets | The following tables provide our target allocation for the year ended October 31, 2020, as well as the actual asset allocation by asset category and fair value measurements as of October 31, 2020 and 2019: Target Allocation Actual Allocation October 31, 2020 October 31, 2020 October 31, 2019 Equity securities 60.0 % 60.0 % 61.0 % Fixed income 40.0 % 40.0 % 39.0 % Fair Value Measurements at October 31, 2020 October 31, 2019 (In thousands) Money market fund $ 3,532 $ 574 Large capitalization 7,954 8,092 Small capitalization 2,407 2,489 International equity 6,130 6,219 Other 1,853 1,848 Equity securities $ 18,344 $ 18,648 High-quality core bond 9,743 9,525 High-quality government bond 1,249 1,228 High-yield bond 1,252 1,237 Fixed income $ 12,244 $ 11,990 Total securities (1) $ 34,120 $ 31,212 |
Expected Benefit Payments | The following table presents the total benefit payments expected to be paid to participants by year, which includes payments funded from our assets, as well as payments paid from the plan for the year ended October 31, (in thousands): Pension Benefits 2021 $ 3,036 2022 2,583 2023 2,404 2024 2,376 2025 2,394 2026 - 2030 10,910 Total $ 23,703 |
Amounts Recognized in Balance Sheet | The table below indicates the amount of these liabilities included in the accompanying consolidated balance sheets: October 31, 2020 October 31, 2019 (In thousands) Accrued liabilities $ 49 $ 49 Deferred pension and postretirement benefits 218 311 Total $ 267 $ 360 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense (Benefit) | The following table summarizes the components of income tax expense (benefit) for the years ended October 31, 2020, 2019 and 2018 (in thousands): Year Ended October 31, 2020 2019 2018 Current Federal $ 6,043 $ 3,338 $ 983 State and local 1,505 299 417 Non-United States 4,445 3,879 3,356 Total current 11,993 7,516 4,756 Deferred Federal (64) 1,497 (5,828) State and local (315) 1,087 670 Non-United States 190 676 (398) Total deferred (189) 3,260 (5,556) Total income tax expense (benefit) $ 11,804 $ 10,776 $ (800) |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | For financial reporting purposes, income (loss) before income taxes for the years ended October 31, 2020, 2019 and 2018 includes the following components (in thousands): Year Ended October 31, 2020 2019 2018 Domestic $ 26,229 $ (58,247) $ 9,721 Foreign 24,071 22,293 16,032 Total income (loss) before income taxes $ 50,300 $ (35,954) $ 25,753 |
Effective Income Tax Rate | The following table reconciles our effective income tax rate to the federal statutory rate for the years ended October 31, 2020, 2019 and 2018: Year Ended October 31, 2020 2019 2018 United States tax at statutory rate 21.0 % 21.0 % 23.3 % State and local income tax 1.7 % 1.6 % 3.3 % Non-United States income tax (0.8) % (0.5) % (1.6) % General business credits (2.3) % (4.7) % (0.4) % Other permanent differences 1.7 % 3.0 % — % Deferred rate impact of enactment of tax reform — % — % (30.5) % Foreign tax positions under the Act (GILTI and FDII) 2.5 % 3.3 % — % Impact of deemed repatriation — % (1.1) % 4.8 % Asset impairment charges — % (50.7) % (1.5) % Return to actual adjustments (0.3) % (1.9) % (0.5) % Effective tax rate 23.5 % (30.0) % (3.1) % |
Deferred Tax Assets and Liabilities | Significant components of our net deferred tax liabilities and assets were as follows (in thousands): October 31, 2020 2019 Deferred tax assets: Employee benefit obligations $ 6,634 $ 7,227 Accrued liabilities and reserves 1,471 1,646 Pension and other benefit obligations 3,303 4,365 Inventory 471 632 Loss and tax credit carry forwards 2,331 2,915 Other 103 110 Total gross deferred tax assets 14,313 16,895 Less: Valuation allowance 1,493 1,560 Total deferred tax assets, net of valuation allowance 12,820 15,335 Deferred tax liabilities: Property, plant and equipment 10,465 11,075 Goodwill and intangibles 21,471 23,623 Total deferred tax liabilities 31,936 34,698 Net deferred tax liabilities $ 19,116 $ 19,363 |
Unrecognized Tax Benefits | The following table shows the change in the unrecognized income tax benefit associated with uncertain tax positions for the years ended October 31, 2020, 2019 and 2018 (in thousands): Unrecognized Balance at October 31, 2017 $ 591 Additions for tax positions related to the current year — Additions for tax positions related to the prior year 15 Balance at October 31, 2018 $ 606 Additions for tax positions related to the current year — Additions for tax positions related to the prior year 16 Reassessment of position (66) Balance at October 31, 2019 $ 556 Additions for tax positions related to the current year — Additions for tax positions related to the prior year 15 Reassessment of position (49) Balance at October 31, 2020 $ 522 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Nonvested Restricted Share Activity | A summary of non-vested restricted stock award activity during the years ended October 31, 2020, 2019 and 2018, follows: Restricted Stock Awards Weighted Average Non-vested at October 31, 2017 284,300 $ 19.66 Granted 73,400 20.70 Vested (111,800) 20.16 Forfeited (28,700) 19.66 Non-vested at October 31, 2018 217,200 19.76 Granted 124,800 13.78 Vested (42,500) 17.87 Forfeited (69,400) 19.19 Non-vested at October 31, 2019 230,100 17.02 Granted 63,400 18.82 Vested (51,000) 17.30 Cancelled (55,000) 19.45 Non-vested at October 31, 2020 187,500 $ 16.82 |
Schedule of Stock Option Activity | The following table summarizes our stock option activity for the years ended October 31, 2020, 2019 and 2018. Stock Options Weighted Average Weighted Average Aggregate Outstanding at October 31, 2017 2,152,758 $ 17.44 5.2 $ 9,700 Granted — — Exercised (377,218) 12.58 Forfeited/Expired (21,884) 19.28 Outstanding at October 31, 2018 1,753,656 $ 18.47 5.0 $ 51 Granted — — Exercised (204,770) 15.76 Forfeited/Expired (132,700) 20.01 Outstanding at October 31, 2019 1,416,186 $ 18.71 4.2 $ 1,449 Granted — — Exercised (215,733) 17.09 Forfeited/Expired (105,124) 20.28 Outstanding at October 31, 2020 1,095,329 $ 18.88 3.6 $ 561,000 Vested at October 31, 2020 1,095,329 $ 18.88 3.6 $ 561,000 Exercisable at October 31, 2020 1,095,329 $ 18.88 3.6 $ 561,000 |
Schedule of Valuation Assumptions and Fair Value for Stock Options | The following table summarizes our performance share grants and the grant date fair value for the EPS, R-TSR, and RONA performance metrics: Grant Date Fair Value Grant Date Shares Awarded EPS R-TSR RONA Forfeited December 7, 2017 146,500 $ 20.70 $ 21.81 $ — 54,008 December 5, 2018 131,500 $ — $ — $ 13.63 40,900 December 5, 2019 55,900 $ — $ — $ 19.40 5,300 |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs | The following table summarizes amounts expensed as selling, general and administrative expense related to restricted stock awards, stock options, restricted stock units, performance share awards and performance restricted stock units for the years ended October 31, 2020, 2019 and 2018 (in thousands): Year Ended October 31, 2020 2019 2018 Restricted stock awards $ 625 $ 1,018 $ 1,462 Stock options 10 158 467 Restricted stock units 186 950 (364) Performance share awards (170) 1,131 (944) Performance restricted stock units 515 708 401 Total compensation expense 1,166 3,965 1,022 Income tax effect 274 997 (35) Net compensation expense $ 892 $ 2,968 $ 1,057 |
Other Income (Expense) (Tables)
Other Income (Expense) (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Non-operating Income (Expense) | Other income included under the caption "Other, net" on the accompanying consolidated statements of income (loss), consisted of the following (in thousands): Year Ended October 31, 2020 2019 2018 Foreign currency transaction (losses) gains $ (42) $ (187) $ 113 Foreign currency exchange derivative losses (15) (197) (11) Pension service benefit 243 396 978 Interest income 28 63 69 Other 66 41 7 Other income $ 280 $ 116 $ 1,156 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | NA Fenestration EU Fenestration NA Cabinet Comp. Unallocated Corp. & Other Total Year Ended October 31, 2020 Net sales $ 483,415 $ 161,054 $ 210,099 $ (2,995) $ 851,573 Depreciation and amortization 23,555 9,468 13,732 474 47,229 Operating income (loss) 39,909 20,076 (2,502) (2,218) 55,265 Capital expenditures 15,761 5,435 4,423 107 25,726 Total assets $ 252,703 $ 223,248 $ 174,713 $ 40,921 $ 691,585 Year Ended October 31, 2019 Net sales $ 503,837 $ 164,997 $ 229,644 $ (4,637) $ 893,841 Depreciation and amortization 27,054 8,845 13,178 509 49,586 Operating income (loss) 39,765 19,040 (74,236) (10,996) (26,427) Capital expenditures 12,984 6,365 5,383 151 24,883 Total assets $ 226,243 $ 212,239 $ 181,416 $ 25,212 $ 645,110 Year Ended October 31, 2018 Net sales $ 485,366 $ 159,973 $ 249,813 $ (5,367) $ 889,785 Depreciation and amortization 27,248 9,607 14,401 566 51,822 Operating income (loss) 30,633 12,702 3,167 (10,805) 35,697 Capital expenditures $ 13,929 $ 5,450 $ 6,965 $ 140 $ 26,484 The following table summarizes the change in the carrying amount of goodwill by segment for the years ended October 31, 2020 and 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 — — (74,600) — (74,600) Foreign currency translation adjustment — 536 — — 536 Balance as of October 31, 2019 $ 38,712 $ 67,704 $ 39,147 $ — $ 145,563 Foreign currency translation adjustment — 591 — — 591 Balance as of October 31, 2020 $ 38,712 $ 68,295 $ 39,147 $ — $ 146,154 We did not allocate non-operating expense or income tax expense to the reportable segments. The following table reconciles operating income (loss) as reported above to net income (loss) for the years ended October 31, 2020, 2019 and 2018 (in thousands): Year Ended October 31, 2020 2019 2018 Operating income (loss) $ 55,265 $ (26,427) $ 35,697 Interest expense (5,245) (9,643) (11,100) Other, net 280 116 1,156 Income tax (expense) benefit (11,804) (10,776) 800 Net income (loss) $ 38,496 $ (46,730) $ 26,553 |
Schedule of Product Sales | The following table summarizes our product sales for the three years ended October 31, 2020, 2019, and 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 16, “Segment Information." Year Ended October 31, 2020 2019 2018 (in thousands) NA Fenestration: United States - fenestration $ 427,616 $ 439,536 $ 412,000 International - fenestration 28,585 31,106 39,309 United States - non-fenestration 19,279 17,061 18,211 International - non-fenestration 7,935 16,134 15,846 $ 483,415 $ 503,837 $ 485,366 EU Fenestration: International - fenestration 134,432 139,638 135,415 International - non-fenestration 26,622 25,359 24,558 $ 161,054 $ 164,997 $ 159,973 NA Cabinet Components: United States - fenestration $ 11,842 $ 13,144 $ 14,596 United States - non-fenestration 196,479 214,211 232,990 International - non-fenestration 1,778 2,289 2,227 $ 210,099 $ 229,644 $ 249,813 Unallocated Corporate & Other: Eliminations $ (2,995) $ (4,637) $ (5,367) $ (2,995) $ (4,637) $ (5,367) Net sales $ 851,573 $ 893,841 $ 889,785 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following tables provide information concerning our net sales for the years ended October 31, 2020, 2019 and 2018, and our long-lived assets as of October 31, 2020 and 2019 (in thousands): Year Ended October 31, Net sales 2020 2019 2018 United States $ 654,802 $ 683,204 $ 676,776 Europe 158,829 162,106 159,652 Canada 18,213 20,088 23,610 Asia 11,504 18,360 18,584 Other foreign countries 8,223 10,083 11,163 Total net sales $ 851,573 $ 893,841 $ 889,785 October 31, Long-lived assets, net 2020 2019 United States $ 307,534 $ 288,722 Germany 25,519 16,899 United Kingdom 142,097 140,839 Total long-lived assets, net $ 475,150 $ 446,460 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Basic and Diluted | The computation of basic and diluted earnings per share for the years ended October 31, 2020, 2019 and 2018 follows (in thousands, except per share data): Year Ended October 31, 2020 Net Income (Loss) Weighted Average Shares Per Share Basic earnings per common share $ 38,496 32,689 $ 1.18 Effect of dilutive securities: Stock options 10 Restricted stock 90 Performance restricted stock units 32 Diluted loss per common share $ 38,496 32,821 $ 1.17 Year Ended October 31, 2019 Basic loss per common share $ (46,730) 32,960 $ (1.42) Diluted loss per common share $ (46,730) 32,960 $ (1.42) Effect of anti-dilutive securities: (1) Stock options 40 Restricted stock 113 Performance share awards 28 Year Ended October 31, 2018 Basic earnings per common share $ 26,553 34,701 $ 0.77 Effect of dilutive securities: Stock options 198 Restricted stock 126 Diluted earnings per common share $ 26,553 35,025 $ 0.76 |
Unaudited Quarterly Data (Table
Unaudited Quarterly Data (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Selected quarterly financial data for the years ended October 31, 2020 and 2019 was as follows (amounts in thousands, except per share amounts): For the Quarter Ended January 31, 2020 April 30, 2020 July 31, 2020 October 31, 2020 Net sales $ 196,597 $ 187,475 $ 212,096 $ 255,405 Cost of sales (excluding depreciation and amortization) 157,427 149,732 162,427 189,164 Depreciation and amortization 12,905 11,886 11,060 11,378 Operating income 1,980 8,893 16,563 27,829 Net income $ 10 $ 5,501 $ 10,833 $ 22,152 Basic earnings per share — 0.17 0.33 0.68 Diluted earnings per share — 0.17 0.33 0.68 Cash dividends paid per common share $ 0.08 $ 0.08 $ 0.08 $ 0.08 For the Quarter Ended January 31, 2019 April 30, 2019 July 31, 2019 October 31, 2019 Net sales $ 196,808 $ 218,203 $ 238,461 $ 240,369 Cost of sales (excluding depreciation and amortization) 158,557 171,378 181,357 183,128 Depreciation and amortization 12,572 12,404 12,182 12,428 Operating (loss) income (2,450) (19,363) 19,110 (23,724) Net (loss) income $ (3,649) $ (23,974) $ 11,841 $ (30,948) Basic (loss) earnings per share (0.11) (0.73) 0.36 (0.94) Diluted (loss) earnings per share (0.11) (0.73) 0.36 (0.94) Cash dividends paid per common share $ 0.08 $ 0.08 $ 0.08 $ 0.08 |
Nature of Operations, Basis o_4
Nature of Operations, Basis of Presentation and Significant Accounting Policies, Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 255,405 | $ 212,096 | $ 187,475 | $ 196,597 | $ 240,369 | $ 238,461 | $ 218,203 | $ 196,808 | $ 851,573 | $ 893,841 | $ 889,785 |
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 654,802 | 683,204 | 676,776 | ||||||||
Operating Segments | NA Engineered Components | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 483,415 | 503,837 | 485,366 | ||||||||
Operating Segments | EU Engineered Components | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 161,054 | 164,997 | 159,973 | ||||||||
Operating Segments | NA Cabinet Components | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 210,099 | 229,644 | 249,813 | ||||||||
Intersegment Eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (2,995) | (4,637) | (5,367) | ||||||||
Corporate, Non-segment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (2,995) | (4,637) | (5,367) | ||||||||
Fenestration | Operating Segments | NA Engineered Components | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 427,616 | 439,536 | 412,000 | ||||||||
Fenestration | Operating Segments | NA Engineered Components | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 28,585 | 31,106 | 39,309 | ||||||||
Fenestration | Operating Segments | EU Engineered Components | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 134,432 | 139,638 | 135,415 | ||||||||
Fenestration | Operating Segments | NA Cabinet Components | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 11,842 | 13,144 | 14,596 | ||||||||
Non-fenestration | Operating Segments | NA Engineered Components | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 19,279 | 17,061 | 18,211 | ||||||||
Non-fenestration | Operating Segments | NA Engineered Components | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 7,935 | 16,134 | 15,846 | ||||||||
Non-fenestration | Operating Segments | EU Engineered Components | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 26,622 | 25,359 | 24,558 | ||||||||
Non-fenestration | Operating Segments | NA Cabinet Components | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 196,479 | 214,211 | 232,990 | ||||||||
Non-fenestration | Operating Segments | NA Cabinet Components | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 1,778 | $ 2,289 | $ 2,227 |
Nature of Operations, Basis o_5
Nature of Operations, Basis of Presentation and Significant Accounting Policies, Concentration (Details) | 12 Months Ended |
Oct. 31, 2020segmentcustomer | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of segments | segment | 3 |
Sales | |
Concentration Risk [Line Items] | |
Number of major customers whose business, if lost, could adversely affect business | customer | 1 |
Net sales | One Customer | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 10.00% |
Nature of Operations, Basis o_6
Nature of Operations, Basis of Presentation and Significant Accounting Policies, Long Lived Assets (Details) $ in Thousands | Aug. 31, 2020reporting_unit | Oct. 31, 2020USD ($)reporting_unit | Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($) |
Property, Plant and Equipment [Line Items] | ||||
Goodwill, Impairment Loss | $ 0 | $ 74,600 | ||
Goodwill | $ 146,154 | 145,563 | $ 219,627 | |
Number of Reporting Units | reporting_unit | 5 | 5 | ||
NA Cabinet Components | ||||
Property, Plant and Equipment [Line Items] | ||||
Goodwill | $ 39,100 | $ 113,700 | ||
Number of Reporting Units | reporting_unit | 1 | |||
Land Improvements | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 7 years | |||
Land Improvements | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 25 years | |||
Building | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 25 years | |||
Building | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 40 years | |||
Building Improvements | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
Building Improvements | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 20 years | |||
Machinery and Equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 2 years | |||
Machinery and Equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 15 years |
Nature of Operations, Basis o_7
Nature of Operations, Basis of Presentation and Significant Accounting Policies, Goodwill (Details) $ in Thousands | Aug. 31, 2020reporting_unit | Oct. 31, 2020USD ($)reporting_unit | Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($) |
Goodwill [Line Items] | ||||
Goodwill, Impairment Loss | $ | $ 0 | $ 74,600 | ||
Goodwill | $ | $ 146,154 | 145,563 | $ 219,627 | |
Number of Reporting Units | 5 | 5 | ||
Number Of Reporting Units, Performed Quantitative Assessment | 3 | |||
NA Cabinet Components | ||||
Goodwill [Line Items] | ||||
Goodwill | $ | $ 39,100 | $ 113,700 | ||
Number of Reporting Units | 1 | |||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 5.00% | |||
EU Engineered Components | ||||
Goodwill [Line Items] | ||||
Number of Reporting Units | 2 | |||
Number Of Reporting Units, Performed Quantitative Assessment | 1 | |||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 36.00% | |||
Engineered Products | ||||
Goodwill [Line Items] | ||||
Number of Reporting Units | 2 | |||
Number Of Reporting Units, Performed Quantitative Assessment | 2 |
Nature of Operations, Basis o_8
Nature of Operations, Basis of Presentation and Significant Accounting Policies, Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | 36 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Total income (loss) before income taxes | $ 50,300 | $ (35,954) | $ 25,753 | $ 40,100 |
Federal income tax blended rate | 21.00% | 21.00% | 23.30% |
Nature of Operations, Basis o_9
Nature of Operations, Basis of Presentation and Significant Accounting Policies, Stock-Based Compensation (Details) | 12 Months Ended |
Oct. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Restricted stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Weighted-average period over which unrecognized cost is expected to be recognized | 1 year 8 months 12 days |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Nature of Operations, Basis _10
Nature of Operations, Basis of Presentation and Significant Accounting Policies, Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Cash paid for interest | $ 4,715 | $ 9,020 | $ 7,890 |
Cash paid for income taxes | 12,118 | 5,081 | 4,217 |
Cash received for income tax refunds | 352 | 1,020 | 95 |
Change in capitalized expenditures in accounts payable and accrued liabilities | $ 2,370 | $ 2,897 | $ 264 |
Nature of Operations, Basis _11
Nature of Operations, Basis of Presentation and Significant Accounting Policies, Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Affiliated Entity | Related Party Lease | |||
Related Party Transaction [Line Items] | |||
Related party expense | $ 0 | $ 0 | $ 1.3 |
Receivables & Allowance (Detail
Receivables & Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2016 | |
Receivables [Abstract] | ||||||
Trade receivables | $ 88,287 | $ 82,745 | ||||
Receivables from employees | 161 | 594 | ||||
Accounts receivable, gross | 88,448 | 83,339 | ||||
Allowance for accounts receivable | $ 161 | $ 325 | $ 325 | 161 | 393 | $ 333 |
Accounts receivable, net | $ 88,287 | $ 82,946 | ||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||
Allowance for accounts receivable | 393 | 325 | ||||
Bad debt expense | 262 | 700 | 46 | |||
Amounts written off | (494) | (916) | (54) | |||
Recoveries | 0 | 284 | 0 | |||
Allowance for accounts receivable | $ 161 | $ 393 | $ 325 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2016 | |
Inventory, Net [Abstract] | ||||||
Raw materials | $ 33,298 | $ 32,818 | ||||
Finished goods and work in process | 32,347 | 35,538 | ||||
Supplies and other | 2,020 | 2,593 | ||||
Total | 67,665 | 70,949 | ||||
Inventory reserves | $ 3,790 | $ 4,375 | $ 4,375 | 6,484 | 3,790 | $ 4,620 |
Inventories, net | $ 61,181 | $ 67,159 | ||||
Inventory Reserve Rollforward | ||||||
Inventory reserves, beginning balance | 3,790 | 4,375 | ||||
Charged (credited) to costs & expenses | 2,713 | 341 | 1,201 | |||
Write-offs | 0 | (939) | (1,415) | |||
Other | 19 | (13) | 31 | |||
Inventory reserves, ending balance | $ 6,484 | $ 3,790 | $ 4,375 |
Property, Plant & and Equipme_2
Property, Plant & and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Land and land improvements | $ 10,298 | $ 10,298 | |
Buildings and building improvements | 100,576 | 101,569 | |
Machinery and equipment | 398,950 | 386,953 | |
Construction in progress | 14,424 | 12,348 | |
Property, plant and equipment, gross | 524,248 | 511,168 | |
Less: Accumulated depreciation | (340,144) | (317,568) | |
Property, plant and equipment, net | 184,104 | 193,600 | |
Depreciation | $ 31,800 | $ 34,300 | $ 35,600 |
Leases, Codification Topic 84_2
Leases, Codification Topic 842 (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease right-of-use assets | $ 51,824,000 | $ 0 |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | 15,609,000 | |
Finance Lease, Right-of-Use Asset, Accumulated Amortization | 1,089,000 | |
Leases, Right-of-Use Asset | 67,433,000 | |
Current operating lease liabilities | 7,459,000 | 0 |
Finance Lease, Liability, Current | 962,000 | |
Noncurrent operating lease liabilities | 44,873,000 | 0 |
Finance Lease, Liability, Noncurrent | 14,236,000 | |
Leases, Liability | 67,530,000 | |
Operating Lease, Cost | 8,866 | |
Finance Lease, Right-of-Use Asset, Amortization | 1,181 | |
Finance Lease, Interest Expense | 557 | |
Variable Lease, Cost | 748 | |
Lease, Cost | 8,316 | |
Finance Lease, Principal Payments | 1,092 | |
Finance Lease, Interest Payment on Liability | 557 | |
Operating Lease, Payments | 8,681 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 19,559 | |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 398 | |
Operating Lease, Weighted Average Remaining Lease Term | 7 years 9 months 18 days | |
Finance Lease, Weighted Average Remaining Lease Term | 15 years 3 months | |
Operating Lease, Weighted Average Discount Rate, Percent | 3.52% | |
Finance Lease, Weighted Average Discount Rate, Percent | 3.62% | |
Lessee, Operating Lease, Liability, to be Paid, Year One | $ 9,191,000 | 9,121,000 |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 8,754,000 | 6,981,000 |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 8,340,000 | 6,012,000 |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 7,581,000 | 5,506,000 |
Lessee, Operating Lease, Liability, to be Paid, Year Five | 6,166,000 | 4,699,000 |
Lessee, Operating Lease, Liability, to be Paid | 59,973,000 | 47,539,000 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 7,641,000 | |
Operating Lease, Liability | 52,332,000 | |
2021 | 1,496,000 | 1,020,000 |
2022 | 1,449,000 | 810,000 |
Finance Lease, Liability, to be Paid, Year Three | 1,350,000 | 815,000 |
2024 | 1,247,000 | 973,000 |
2025 | 1,188,000 | 713,000 |
Lessee, Operating Lease, Liability, to be Paid, after Year Five | 19,941,000 | 15,220,000 |
Thereafter | 12,768,000 | 11,392,000 |
Finance Lease, Liability, Payment, Due | 19,498,000 | 15,723,000 |
Finance Lease, Liability, Undiscounted Excess Amount | 4,300,000 | 5,064,000 |
Total debt payments | $ 15,198,000 | $ 10,659,000 |
Equipment and Vehicles | Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Term | 1 year | |
Equipment and Vehicles | Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Term | 10 years | |
Real Estate-Related Leases | Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Term | 5 years | |
Real Estate-Related Leases | Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Term | 20 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Detail) | 12 Months Ended | |||||
Oct. 31, 2020USD ($) | Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($) | Oct. 31, 2020USD ($)unit | Oct. 31, 2019USD ($) | Nov. 02, 2015USD ($) | |
Goodwill [Roll Forward] | ||||||
Beginning balance | $ 145,563,000 | $ 219,627,000 | ||||
Goodwill, impairment loss | 0 | (74,600,000) | ||||
Foreign currency translation adjustment | 591,000 | 536,000 | ||||
Ending balance | 146,154,000 | 145,563,000 | $ 219,627,000 | |||
Finite-Lived Intangible Assets [Line Items] | ||||||
Number of reportable units with goodwill balances | unit | 5 | |||||
Goodwill | 145,563,000 | 219,627,000 | 219,627,000 | $ 146,154,000 | $ 145,563,000 | |
Asset impairment charges | 0 | 74,600,000 | 0 | |||
Gross Carrying Amount | 232,135,000 | 232,081,000 | ||||
Accumulated Amortization | (139,067,000) | (124,784,000) | ||||
Intangible assets amortization expense | 14,300,000 | 15,300,000 | 16,200,000 | |||
Impairment of intangible assets | $ 0 | 0 | 0 | |||
Estimated Amortization Expense | ||||||
2018 | 12,573,000 | |||||
2019 | 11,941,000 | |||||
2020 | 11,194,000 | |||||
2021 | 10,464,000 | |||||
2022 | 9,239,000 | |||||
Thereafter | 37,657,000 | |||||
Intangible assets, net | 93,068,000 | 107,297,000 | ||||
Customer relationships | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Remaining Weighted Average Useful Life | 9 years | |||||
Gross Carrying Amount | 154,004,000 | 153,950,000 | ||||
Accumulated Amortization | (80,441,000) | (70,103,000) | ||||
Retirement of fully amortized intangible assets | 300,000 | |||||
Trademarks and trade names | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Remaining Weighted Average Useful Life | 9 years | |||||
Gross Carrying Amount | 55,745,000 | 55,745,000 | ||||
Accumulated Amortization | (37,314,000) | (35,210,000) | ||||
Patents and other technology | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Remaining Weighted Average Useful Life | 3 years | |||||
Gross Carrying Amount | 22,386,000 | 22,386,000 | ||||
Accumulated Amortization | $ (21,312,000) | (19,471,000) | ||||
Customer relationships and patents and other technology | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Retirement of fully amortized intangible assets | 300,000 | |||||
Woodcraft | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, impairment loss | (74,600,000) | |||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 39,100,000 | |||||
Engineered Products | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Number of reportable units with goodwill balances | unit | 2 | |||||
NA Engineered Components Unit One | ||||||
Goodwill [Roll Forward] | ||||||
Ending balance | $ 35,900,000 | |||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | 35,900,000 | $ 35,900,000 | ||||
NA Engineered Components Unit Three | ||||||
Goodwill [Roll Forward] | ||||||
Ending balance | 2,800,000 | |||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | 2,800,000 | $ 2,800,000 | ||||
EU Engineered Components | ||||||
Goodwill [Roll Forward] | ||||||
Foreign currency translation adjustment | 591,000 | 536,000 | ||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Number of reportable units with goodwill balances | unit | 2 | |||||
EU Engineered Components Unit One [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Ending balance | 50,900,000 | |||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | 50,900,000 | $ 50,900,000 | ||||
EU Engineered Components Unit Two [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Ending balance | 17,400,000 | |||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | 17,400,000 | $ 17,400,000 | ||||
NA Cabinet Components | ||||||
Goodwill [Roll Forward] | ||||||
Beginning balance | 39,100,000 | 113,700,000 | ||||
Ending balance | 39,100,000 | 113,700,000 | ||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Number of reportable units with goodwill balances | unit | 1 | |||||
Goodwill | $ 39,100,000 | $ 39,100,000 | $ 113,700,000 | $ 39,100,000 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Accrued Liabilities [Abstract] | ||
Payroll, payroll taxes and employee benefits | $ 16,000 | $ 19,637 |
Accrued insurance and workers compensation | 5,108 | 3,514 |
Sales allowances | 6,297 | 6,323 |
Deferred compensation | 192 | 1,231 |
Deferred revenue | 763 | 1,251 |
Warranties | 81 | 136 |
Audit, legal, and other professional fees | 1,562 | 2,561 |
accrued other business taxes | 4,000 | 2,403 |
Other | 4,286 | 2,165 |
Accrued liabilities | $ 38,289 | $ 39,221 |
Debt and Capital Lease Obliga_2
Debt and Capital Lease Obligations - Schedule of Debt Obligations (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | $ 117,420 | $ 157,160 |
Debt Instrument, Unamortized Discount (Premium), Net | 901 | |
Unamortized deferred financing fees | (1,205) | |
Less: Current maturities of long-term debt | 692 | 746 |
Long-term debt | 116,728 | 156,414 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 103,000 | 142,500 |
Capital Lease Obligations And Other | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | $ 15,321 | $ 15,865 |
Debt and Capital Lease Obliga_3
Debt and Capital Lease Obligations - Narrative (Details) - USD ($) | Oct. 31, 2018 | Oct. 18, 2018 | Jul. 31, 2016 | Jul. 29, 2016 | Oct. 31, 2020 | Oct. 31, 2019 |
Debt Instrument [Line Items] | ||||||
Debt Instrument, Unamortized Discount (Premium), Net | $ (901,000) | |||||
Letters of credit, outstanding | 4,800,000 | |||||
Debt and capital lease obligations | 117,420,000 | $ 157,160,000 | ||||
Credit facility, amount available | $ 217,200,000 | |||||
Debt instrument, interest rate during period | 2.45% | 4.07% | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt and capital lease obligations | $ 103,000,000 | $ 142,500,000 | ||||
Term Loan Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 3.30% | |||||
Revolving Credit Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Term | 5 years | |||||
Margin on base rate | 1.50% | |||||
Line of Credit Facility, Maximum Borrowing Capacity, Committed Amount | $ 325,000,000 | $ 300,000,000 | ||||
2016 Credit Agreement | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Term | 5 years | |||||
Repayments of debt | $ 10,000,000 | |||||
Outstanding revolver borrowings | 213,500,000 | |||||
Debt instrument, repayment penalty, cash | 500,000 | |||||
Amortization of financing costs | $ 1,100,000 | |||||
Line of Credit Facility, Maximum Borrowing Capacity, Committed Amount | $ 450,000,000 | |||||
2016 Credit Agreement | Line of Credit | Less than or equal to 1.50 to 1.00 | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee | 0.20% | |||||
2016 Credit Agreement | Line of Credit | Greater than 3.00 to 1.00 | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee | 0.30% | |||||
Term Loan Facility [Member] | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity, Committed Amount | $ 150,000,000 | |||||
Credit Agreement | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Secured leverage ratio | 3.25 | |||||
LIBOR stipulation (less than) | 2.00% | |||||
Minimum incremental borrowing | $ 10,000,000 | |||||
Maximum incremental borrowing | $ 150,000,000 | |||||
Debt instrument, limitation on annual dividend | $ 20,000,000 | |||||
Debt Instrument, Leverage Ratio Threshold for Limitations to Take Effect | 2.75 | |||||
Debt Instrument, Liquidity Threshold for Limitations to Take Effect | $ 25,000,000 | |||||
Outstanding revolver borrowings | 205,000,000 | |||||
Debt instrument, repayment penalty, cash | $ 1,000,000 | |||||
Required coverage ratio | 2.25 | |||||
Credit Agreement | Line of Credit | Less than or equal to 1.50 to 1.00 | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee | 0.20% | |||||
Credit Agreement | Line of Credit | Greater than 3.00 to 1.00 | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee | 0.30% | |||||
Swing Line [Member] | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, unused borrowing capacity, amount | $ 15,000,000 | |||||
Base Rate | 2016 Credit Agreement | Line of Credit | Less than or equal to 1.50 to 1.00 | ||||||
Debt Instrument [Line Items] | ||||||
Margin on base rate | 0.50% | |||||
Base Rate | 2016 Credit Agreement | Line of Credit | Greater than 3.00 to 1.00 | ||||||
Debt Instrument [Line Items] | ||||||
Margin on base rate | 1.25% | |||||
Base Rate | Credit Agreement | Line of Credit | Less than or equal to 1.50 to 1.00 | ||||||
Debt Instrument [Line Items] | ||||||
Margin on base rate | 0.25% | |||||
Base Rate | Credit Agreement | Line of Credit | Greater than 3.00 to 1.00 | ||||||
Debt Instrument [Line Items] | ||||||
Margin on base rate | 1.00% | |||||
London Interbank Offered Rate (LIBOR) | 2016 Credit Agreement | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Margin on base rate | 2.00% | |||||
London Interbank Offered Rate (LIBOR) | 2016 Credit Agreement | Line of Credit | Less than or equal to 1.50 to 1.00 | ||||||
Debt Instrument [Line Items] | ||||||
Margin on base rate | 1.50% | |||||
London Interbank Offered Rate (LIBOR) | 2016 Credit Agreement | Line of Credit | Greater than 3.00 to 1.00 | ||||||
Debt Instrument [Line Items] | ||||||
Margin on base rate | 2.25% | |||||
London Interbank Offered Rate (LIBOR) | Credit Agreement | Line of Credit | Less than or equal to 1.50 to 1.00 | ||||||
Debt Instrument [Line Items] | ||||||
Margin on base rate | 1.25% | |||||
London Interbank Offered Rate (LIBOR) | Credit Agreement | Line of Credit | Greater than 3.00 to 1.00 | ||||||
Debt Instrument [Line Items] | ||||||
Margin on base rate | 2.00% |
Debt and Capital Lease Obliga_4
Debt and Capital Lease Obligations - Schedule of Applicable Margins and Commitment Fees (Details) - Credit Agreement - Line of Credit | 12 Months Ended |
Oct. 31, 2020 | |
Less than or equal to 1.50 to 1.00 | |
Debt Instrument [Line Items] | |
Commitment Fee | 0.20% |
Less than or equal to 1.50 to 1.00 | LIBOR Rate Loans | |
Debt Instrument [Line Items] | |
Margin on base rate | 1.25% |
Less than or equal to 1.50 to 1.00 | Base Rate Loans | |
Debt Instrument [Line Items] | |
Margin on base rate | 0.25% |
Greater than 1.50 to 1.00, but less than or equal to 2.25 to 1.00 | |
Debt Instrument [Line Items] | |
Commitment Fee | 0.225% |
Greater than 1.50 to 1.00, but less than or equal to 2.25 to 1.00 | LIBOR Rate Loans | |
Debt Instrument [Line Items] | |
Margin on base rate | 1.50% |
Greater than 1.50 to 1.00, but less than or equal to 2.25 to 1.00 | Base Rate Loans | |
Debt Instrument [Line Items] | |
Margin on base rate | 0.50% |
Greater than 2.25 to 1.00, but less than or equal to 3.00 to 1.00 | |
Debt Instrument [Line Items] | |
Commitment Fee | 0.25% |
Greater than 2.25 to 1.00, but less than or equal to 3.00 to 1.00 | LIBOR Rate Loans | |
Debt Instrument [Line Items] | |
Margin on base rate | 1.75% |
Greater than 2.25 to 1.00, but less than or equal to 3.00 to 1.00 | Base Rate Loans | |
Debt Instrument [Line Items] | |
Margin on base rate | 0.75% |
Greater than 3.00 to 1.00 | |
Debt Instrument [Line Items] | |
Commitment Fee | 0.30% |
Greater than 3.00 to 1.00 | LIBOR Rate Loans | |
Debt Instrument [Line Items] | |
Margin on base rate | 2.00% |
Greater than 3.00 to 1.00 | Base Rate Loans | |
Debt Instrument [Line Items] | |
Margin on base rate | 1.00% |
Debt and Capital Lease Obliga_5
Debt and Capital Lease Obligations - Schedule of Debt Maturities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Revolving Credit Facility | ||
2021 | $ 0 | |
2022 | 0 | |
2023 | 103,000 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 0 | |
Debt and Capital Lease Obligations | 117,420 | $ 157,160 |
Finance Leases and Other Obligations | ||
2021 | 1,529 | |
2022 | 1,482 | |
2023 | 1,383 | |
2024 | 1,271 | |
2025 | 1,188 | |
Thereafter | 12,768 | |
Total debt payments | 19,621 | |
Less: present value discount of finance leases | (4,300) | |
Total, Capital Lease Obligations | 15,321 | |
Aggregate Maturities | ||
2021 | 1,529 | |
2022 | 1,482 | |
2023 | 104,383 | |
2024 | 1,271 | |
2025 | 1,188 | |
Thereafter | 12,768 | |
Long-term debt | 122,621 | |
Total | $ 118,321 |
Retirement Plans (Detail)
Retirement Plans (Detail) | 10 Months Ended | 12 Months Ended | 24 Months Ended | ||
Oct. 31, 2020USD ($)plan | Oct. 31, 2020USD ($)plan | Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($) | Dec. 31, 2019 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Projected benefit obligation | $ 44,323,000 | $ 35,959,000 | |||
Service cost | 1,262,000 | 3,629,000 | $ 3,908,000 | ||
Interest cost | 1,139,000 | 1,456,000 | 1,130,000 | ||
Actuarial loss | 2,823,000 | 7,690,000 | |||
Benefits paid | (712,000) | (3,581,000) | |||
Administrative expenses | (785,000) | (830,000) | |||
Curtailments | (1,141,000) | 0 | |||
Settlements | (2,084,000) | 0 | |||
Projected benefit obligation | $ 44,825,000 | 44,825,000 | 44,323,000 | 35,959,000 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets | 34,120,000 | 34,120,000 | 31,212,000 | 32,064,000 | |
Actual return on plan assets | 2,789,000 | 2,869,000 | |||
Employer contributions | 3,700,000 | 690,000 | 800,000 | ||
Benefits paid | (712,000) | (3,581,000) | |||
Administrative expenses | (785,000) | (830,000) | |||
Settlements | (2,084,000) | 0 | |||
Noncurrent liability - Funded Status | (10,705,000) | (10,705,000) | (13,111,000) | ||
Accumulated other comprehensive income (loss), net gains (losses), before tax | 9,900,000 | 9,900,000 | 6,700,000 | ||
Aggregate accumulated benefit obligation | $ 44,800,000 | 44,800,000 | 43,300,000 | ||
Net periodic benefit cost: | |||||
Service cost | 1,262,000 | 3,629,000 | 3,908,000 | ||
Interest cost | 1,139,000 | 1,456,000 | 1,130,000 | ||
Expected return on plan assets | (2,006,000) | (1,977,000) | (2,172,000) | ||
Amortization of net loss | 162,000 | 125,000 | 64,000 | ||
Settlements | (462,000) | 0 | 0 | ||
Net periodic benefit cost | 1,019,000 | 3,233,000 | 2,930,000 | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax [Abstract] | |||||
Net loss (gain) arising during the period | 2,141,000 | 6,697,000 | (2,189,000) | ||
Less: Amortization of net loss | 162,000 | 125,000 | 64,000 | ||
Less: Curtailments | 1,141,000 | 0 | 0 | ||
Settlements | (462,000) | 0 | 0 | ||
Total recognized in other comprehensive loss | $ 376,000 | $ 6,572,000 | $ (2,253,000) | ||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||||
Benefit Obligation, Discount rate | 3.22% | 3.22% | 3.10% | 4.44% | |
Benefit Obligation, Rate of compensation increase | 0.00% | 0.00% | 3.00% | 3.00% | |
Net Periodic Benefit Cost, Discount rate | 3.10% | 4.44% | 3.68% | ||
Net Periodic Benefit Cost, Rate of compensation increase | 0.00% | 3.00% | 3.00% | ||
Net Periodic Benefit Cost, Expected long-term return on assets | 6.50% | 6.50% | 6.50% | ||
Fair value of plan assets | $ 34,120,000 | $ 34,120,000 | $ 31,212,000 | $ 32,064,000 | |
Contributions target funded status | 100.00% | 100.00% | |||
Employer contributions | $ 3,700,000 | 690,000 | 800,000 | ||
Estimated future employer contributions in next fiscal year | $ 500,000 | 500,000 | |||
Fiscal Year Maturity [Abstract] | |||||
2016 | 3,036,000 | 3,036,000 | |||
2017 | 2,583,000 | 2,583,000 | |||
2018 | 2,404,000 | 2,404,000 | |||
2019 | 2,376,000 | 2,376,000 | |||
2020 | 2,394,000 | 2,394,000 | |||
2021-2024 | 10,910,000 | 10,910,000 | |||
Total | $ 23,703,000 | $ 23,703,000 | |||
Number Of Defined Contribution Plans | plan | 2 | 2 | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | 50.00% | |||
Employer matching contribution, percent of employees' gross pay | 5.00% | 5.00% | |||
Employer discretionary contribution amount | $ 4,800,000 | 2,700,000 | $ 2,600,000 | ||
Accrued liabilities | $ 49,000 | 49,000 | 49,000 | ||
Deferred pension and postretirement benefits | 218,000 | 218,000 | 311,000 | ||
Total | 267,000 | 267,000 | 360,000 | ||
Supplemental benefit plan liability | 2,600,000 | 2,600,000 | 4,200,000 | ||
Deferred compensation liability | $ 3,300,000 | 3,300,000 | 3,800,000 | ||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | (2,084,000) | 0 | |||
NA Cabinet Components | |||||
Fiscal Year Maturity [Abstract] | |||||
Employer matching contribution, percent of employees' gross pay | 4.00% | ||||
Money market fund | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets | $ 3,532,000 | 3,532,000 | 574,000 | ||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||||
Fair value of plan assets | 3,532,000 | 3,532,000 | 574,000 | ||
Equity securities | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets | $ 18,344,000 | $ 18,344,000 | $ 18,648,000 | ||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||||
Target Allocation | 60.00% | 60.00% | |||
Actual Allocation | 60.00% | 60.00% | 61.00% | ||
Fair value of plan assets | $ 18,344,000 | $ 18,344,000 | $ 18,648,000 | ||
Large capitalization | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets | 7,954,000 | 7,954,000 | 8,092,000 | ||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||||
Fair value of plan assets | 7,954,000 | 7,954,000 | 8,092,000 | ||
Small capitalization | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets | 2,407,000 | 2,407,000 | 2,489,000 | ||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||||
Fair value of plan assets | 2,407,000 | 2,407,000 | 2,489,000 | ||
International equity | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets | 6,130,000 | 6,130,000 | 6,219,000 | ||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||||
Fair value of plan assets | 6,130,000 | 6,130,000 | 6,219,000 | ||
Other | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets | 1,853,000 | 1,853,000 | 1,848,000 | ||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||||
Fair value of plan assets | 1,853,000 | 1,853,000 | 1,848,000 | ||
Fixed income | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets | $ 12,244,000 | $ 12,244,000 | $ 11,990,000 | ||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||||
Target Allocation | 40.00% | 40.00% | |||
Actual Allocation | 40.00% | 40.00% | 39.00% | ||
Fair value of plan assets | $ 12,244,000 | $ 12,244,000 | $ 11,990,000 | ||
High-quality core bond | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets | 9,743,000 | 9,743,000 | 9,525,000 | ||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||||
Fair value of plan assets | 9,743,000 | 9,743,000 | 9,525,000 | ||
High-quality government bond | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets | 1,249,000 | 1,249,000 | 1,228,000 | ||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||||
Fair value of plan assets | 1,249,000 | 1,249,000 | 1,228,000 | ||
High-yield bond | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair value of plan assets | 1,252,000 | 1,252,000 | 1,237,000 | ||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||||
Fair value of plan assets | $ 1,252,000 | $ 1,252,000 | $ 1,237,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | 36 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2020 | |
Current | ||||
Federal | $ 6,043 | $ 3,338 | $ 983 | |
State and local | 1,505 | 299 | 417 | |
Non-United States | 4,445 | 3,879 | 3,356 | |
Total current | 11,993 | 7,516 | 4,756 | |
Deferred | ||||
Federal | (64) | 1,497 | (5,828) | |
State and local | (315) | 1,087 | 670 | |
Non-United States | 190 | 676 | (398) | |
Total deferred | (189) | 3,260 | (5,556) | |
Total income tax expense (benefit) | 11,804 | 10,776 | (800) | |
Domestic | 26,229 | (58,247) | 9,721 | |
Foreign | 24,071 | 22,293 | 16,032 | |
Total income (loss) before income taxes | $ 50,300 | $ (35,954) | $ 25,753 | $ 40,100 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
United States tax at statutory rate | 21.00% | 21.00% | 23.30% | |
State and local income tax | 1.70% | 1.60% | 3.30% | |
Non-United States income tax | (0.80%) | (0.50%) | (1.60%) | |
General business credits | (2.30%) | (4.70%) | (0.40%) | |
Other permanent differences | 1.70% | 3.00% | 0.00% | |
Deferred rate impact of enactment of tax reform | 0.00% | 0.00% | (30.50%) | |
Foreign tax positions under the Act (GILTI and FDII) | 2.50% | 3.30% | 0.00% | |
Impact of deemed repatriation | 0.00% | (1.10%) | 4.80% | |
Asset impairment charges | 0.00% | (50.70%) | (1.50%) | |
Return to actual adjustments | (0.30%) | (1.90%) | (0.50%) | |
Effective tax rate | 23.50% | (30.00%) | (3.10%) | |
Deferred tax assets: | ||||
Employee benefit obligations | $ 6,634 | $ 7,227 | 6,634 | |
Accrued liabilities and reserves | 1,471 | 1,646 | 1,471 | |
Pension and other benefit obligations | 3,303 | 4,365 | 3,303 | |
Inventory | 471 | 632 | 471 | |
Loss and tax credit carry forwards | 2,331 | 2,915 | 2,331 | |
Other | 103 | 110 | 103 | |
Total gross deferred tax assets | 14,313 | 16,895 | 14,313 | |
Less: Valuation allowance | 1,493 | 1,560 | 1,493 | |
Total deferred tax assets, net of valuation allowance | 12,820 | 15,335 | 12,820 | |
Deferred tax liabilities: | ||||
Property, plant and equipment | 10,465 | 11,075 | 10,465 | |
Goodwill and intangibles | 21,471 | 23,623 | 21,471 | |
Total deferred tax liabilities | 31,936 | 34,698 | 31,936 | |
Net deferred tax liabilities | 19,116 | 19,363 | 19,116 | |
Unrecognized Tax Benefits [Roll Forward] | ||||
Unrecognized Tax Benefits | 556 | 606 | $ 591 | 591 |
Additions for tax positions related to the current year | 0 | 0 | 0 | |
Additions for tax positions related to the prior year | 15 | 16 | 15 | |
Reassessment of position | (49) | (66) | ||
Unrecognized Tax Benefits | $ 522 | $ 556 | $ 606 | $ 522 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Income Tax Examination [Line Items] | |||
Tax credit carryforward, amount | $ 600 | ||
Operating loss carryforwards | $ 30,100 | ||
United States tax at statutory rate | 21.00% | 21.00% | 23.30% |
Tax Cuts and Jobs Act of 2017, transition tax for accumulated foreign earnings, income tax expense (benefit) | $ 400 | ||
Goodwill impairment charges | 0 | $ 74,600 | |
Tax Cuts and Jobs Act, change in tax rate, income tax expense (benefit) | (7,700) | ||
Foreign earnings repatriated | 31,900 | 24,200 | |
Liability for uncertain tax positions | 522 | 556 | |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | 200 | ||
Effective Income Tax Rate Reconciliation, Vesting or Exercise Of Share-based Payment Arrangement, Amount | 600 | ||
Tax Cuts and Jobs Act of 2017, GILTI and FDII | 1,200 | ||
Tax Cuts and Jobs Act of 2017, Excess Tax Benefits | 600 | ||
Tax Cuts and Jobs Act, Income Tax Expense (Benefit) | 200 | ||
Tax Cuts and Jobs Act of 2017, Transition Tax for Accumulated Foreign Earnings, Income Tax Expense (Benefit) | 1,200 | ||
State | |||
Income Tax Examination [Line Items] | |||
Operating loss carryforwards, valuation allowance | 1,500 | 1,600 | |
Federal | |||
Income Tax Examination [Line Items] | |||
Operating loss carryforwards, valuation allowance | $ 1,200 | $ 1,200 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Amount purchased under purchase obligations | $ 9,000,000 | $ 11,100,000 | |
Purchased obligation amount due within the next fiscal year | $ 22,400,000 | 18,700,000 | |
Deprecation and accretion period | 7 years | ||
Cumulative asset retirement obligation | $ 2,300,000 | ||
Loss contingency, receivable, proceeds | $ 0 | $ 0 | $ 500,000 |
Fair Value Measurement of Ass_2
Fair Value Measurement of Assets and Liabilities (Details) | 12 Months Ended | |
Oct. 31, 2020USD ($)numberOfInstruments | Oct. 31, 2019USD ($) | |
Derivative Asset [Abstract] | ||
Instruments measured on a recurring basis | numberOfInstruments | 0 | |
Vesting period | 3 years | |
Fair Value, Inputs, Level 2 | ||
Derivative Asset [Abstract] | ||
Foreign currency derivatives, fair value | $ | $ 0 | $ 100,000 |
Stock Based Compensation (Detai
Stock Based Compensation (Detail) - USD ($) $ / shares in Units, $ in Thousands | Dec. 05, 2019 | Nov. 30, 2019 | Dec. 05, 2018 | Dec. 07, 2017 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 |
Stock Options, [Roll Forward] | ||||||||
Outstanding at beginning of period (in shares) | 1,416,186 | 1,753,656 | 2,152,758 | |||||
Granted (in shares) | 0 | 0 | 0 | |||||
Exercised (in shares) | (215,733) | (204,770) | (377,218) | |||||
Forfeited/Expired (in shares) | (105,124) | (132,700) | (21,884) | |||||
Outstanding at end of period (in shares) | 1,095,329 | 1,416,186 | 1,753,656 | 2,152,758 | ||||
Vested or expected to vest at end of period | 1,095,329 | |||||||
Exercisable at end of period | 1,095,329 | |||||||
Weighted Average Exercise Price Per Share | ||||||||
Outstanding at beginning of period (in dollars per share) | $ 18.71 | $ 18.47 | $ 17.44 | |||||
Granted (in dollars per share) | 0 | 0 | 0 | |||||
Exercised (in dollars per share) | 17.09 | 15.76 | 12.58 | |||||
Forfeited/Expired (in dollars per share) | 20.28 | 20.01 | 19.28 | |||||
Outstanding at end of period (in dollars per share) | 18.88 | $ 18.71 | $ 18.47 | $ 17.44 | ||||
Vested or expected to vest at end of period | 18.88 | |||||||
Exercisable at end of period | $ 18.88 | |||||||
Weighted Average Remaining Contractual Life | ||||||||
Outstanding at end of period | 3 years 7 months 6 days | 4 years 2 months 12 days | 5 years | 5 years 2 months 12 days | ||||
Vested or expected to vest at end of period | 3 years 7 months 6 days | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 561 | |||||||
Aggregate Intrinsic Value | ||||||||
Outstanding at end of period | 561 | $ 1,449 | $ 51 | $ 9,700 | ||||
Vested or expected to vest at end of period | $ 561 | |||||||
Additional Disclosures [Abstract] | ||||||||
Number of shares authorized, originally | 3,139,895 | |||||||
Vesting period | 3 years | |||||||
Total intrinsic value of options exercised | $ 500 | $ 400 | 2,900 | |||||
Performance shares settled in cash | 100.00% | 50.00% | ||||||
Performance shares settled in stock | 50.00% | |||||||
Total compensation expense | $ 1,166 | $ 3,965 | 1,022 | |||||
Income tax effect | 274 | 997 | (35) | |||||
Net compensation expense | 892 | 2,968 | 1,057 | |||||
EPS | $ 0 | $ 0 | $ 20.70 | |||||
R-TSR | 0 | 0 | 21.81 | |||||
Return On Net Assets | $ 19.40 | $ 13.63 | $ 0 | |||||
Payment For Settlement Of Share-Based Compensation | $ 200 | $ 400 | $ 0 | |||||
Restricted stock | ||||||||
Number of Shares | ||||||||
Period start, non-vested (in shares) | 230,100 | 217,200 | 284,300 | |||||
Granted (in shares) | 63,400 | 124,800 | 73,400 | |||||
Vested (in shares) | (51,000) | (42,500) | (111,800) | |||||
Forfeited (in shares) | (55,000) | (69,400) | (28,700) | |||||
Period end, non-vested (in shares) | 187,500 | 230,100 | 217,200 | 284,300 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||
Period start, non-vested (in dollars per share) | $ 17.02 | $ 19.76 | $ 19.66 | |||||
Grant Date Fair Value (in dollars per share) | 18.82 | 13.78 | 20.70 | |||||
Vested in Period, Weighted Average Grant Date Fair Value (in dollars per share) | 17.30 | 17.87 | 20.16 | |||||
Forfeitures, Weighted Average Grant Date Fair Value (in dollars per share) | 19.45 | 19.19 | 19.66 | |||||
Period end, non-vested (in dollars per shares) | $ 16.82 | $ 17.02 | $ 19.76 | $ 19.66 | ||||
Additional Disclosures [Abstract] | ||||||||
Vesting period | 3 years | |||||||
Fair value of restricted stock awards vested | $ 1,100 | $ 1,300 | $ 2,300 | |||||
Unrecognized compensation cost - non vested restricted stock awards | $ 1,200 | |||||||
Weighted-average period over which unrecognized cost is expected to be recognized | 1 year 8 months 12 days | |||||||
Total compensation expense | $ 625 | 1,018 | 1,462 | |||||
Stock options | ||||||||
Additional Disclosures [Abstract] | ||||||||
Vesting period | 3 years | |||||||
Expiration period | 10 years | |||||||
Fair value of stock options vested | $ 600 | 1,100 | 1,500 | |||||
Total compensation expense | $ 10 | $ 158 | $ 467 | |||||
Restricted Stock Units (RSUs) | ||||||||
Number of Shares | ||||||||
Period start, non-vested (in shares) | 4,616 | |||||||
Vested (in shares) | (25,621) | (34,050) | (18,050) | |||||
Period end, non-vested (in shares) | 21,774 | 4,616 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||
Vested in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 18.18 | $ 15.51 | $ 21.85 | |||||
Additional Disclosures [Abstract] | ||||||||
Vesting period | 3 years | |||||||
Total compensation expense | $ 186 | $ 950 | $ (364) | |||||
Performance Shares | ||||||||
Number of Shares | ||||||||
Vested (in shares) | (56,103) | |||||||
Additional Disclosures [Abstract] | ||||||||
Vesting period | 3 years | |||||||
Total compensation expense | $ (170) | 1,131 | (944) | |||||
Performance shares granted | 55,900 | 131,500 | 146,500 | |||||
Performance shares forfeited | 5,300 | 40,900 | 54,008 | |||||
Payment For Settlement Of Share-Based Compensation | $ 600 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 28,051 | |||||||
Performance Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||||
Grant Date Fair Value (in dollars per share) | $ 19.40 | $ 13.63 | $ 17.76 | |||||
Additional Disclosures [Abstract] | ||||||||
Vesting period | 3 years | |||||||
Total compensation expense | $ 515 | $ 708 | $ 401 | |||||
Performance shares granted | 35,000 | 89,200 | 78,200 | |||||
Performance shares forfeited | 0 | 25,500 | 28,854 | |||||
Minimum | ||||||||
Additional Disclosures [Abstract] | ||||||||
Performance shares vesting percentage | 0.00% | |||||||
Minimum | Performance Restricted Stock Units | ||||||||
Additional Disclosures [Abstract] | ||||||||
Performance shares vesting percentage | 0.00% | |||||||
Maximum | ||||||||
Additional Disclosures [Abstract] | ||||||||
Performance shares vesting percentage | 200.00% | |||||||
Maximum | Performance Restricted Stock Units | ||||||||
Additional Disclosures [Abstract] | ||||||||
Performance shares vesting percentage | 150.00% | |||||||
Share-based Compensation Award, Tranche One [Member] | Performance Restricted Stock Units | ||||||||
Additional Disclosures [Abstract] | ||||||||
Performance shares vesting percentage | 150.00% | |||||||
Share-based Compensation Award, Tranche One [Member] | Share-Based Compensation Award, Performance Criteria, Absolute Total Shareholder Return Milestones, Greater Than Or Equal To 50 Percent [Member] | Performance Restricted Stock Units | ||||||||
Additional Disclosures [Abstract] | ||||||||
Performance shares vesting percentage | 150.00% | |||||||
Share-based Compensation Award, Tranche Two [Member] | Performance Restricted Stock Units | ||||||||
Additional Disclosures [Abstract] | ||||||||
Performance shares vesting percentage | 100.00% | |||||||
Share-based Compensation Award, Tranche Two [Member] | Share-Based Compensation Award, Performance Criteria, Absolute Total Shareholder Return Milestones, Less Than 50 Percent And Greater Than Or Equal To 20 Percent [Member] | Performance Restricted Stock Units | ||||||||
Additional Disclosures [Abstract] | ||||||||
Performance shares vesting percentage | 100.00% | |||||||
Share-based Compensation Award, Tranche Three [Member] | Performance Restricted Stock Units | ||||||||
Additional Disclosures [Abstract] | ||||||||
Performance shares vesting percentage | 50.00% | |||||||
Share-based Compensation Award, Tranche Three [Member] | Share-Based Compensation Award, Performance Criteria, Absolute Total Shareholder Return Milestones, Less Than 20 Percent And Greater Than Or Equal To Negative 20 Percent [Member] | Performance Restricted Stock Units | ||||||||
Additional Disclosures [Abstract] | ||||||||
Performance shares vesting percentage | 50.00% | |||||||
Share-Based Compensation Award, Tranche Four [Member] | Performance Restricted Stock Units | ||||||||
Additional Disclosures [Abstract] | ||||||||
Performance shares vesting percentage | 0.00% | |||||||
Share-Based Compensation Award, Tranche Four [Member] | Share-Based Compensation Award, Performance Criteria, Absolute Total Shareholder Return Milestones, Less Than Negative 20 Percent [Member] | Performance Restricted Stock Units | ||||||||
Additional Disclosures [Abstract] | ||||||||
Performance shares vesting percentage | 0.00% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 12 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | Aug. 30, 2018 | |
Class of Stock [Line Items] | ||||
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | ||
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | ||
Preferred stock, par value (usd per share) | $ 0 | |||
Common stock, shares, issued (in shares) | 37,296,166 | 37,370,402 | ||
Common stock, shares, outstanding (in shares) | 32,804,737 | 33,021,789 | ||
Stock repurchased during period, shares (in shares) | 450,000 | 583,398 | ||
Stock repurchased during period, value | $ 7,233,000 | $ 9,551,000 | $ 32,034,000 | |
Stock Repurchase Program, Authorized Amount | $ 60,000,000 | |||
Retained Earnings | ||||
Class of Stock [Line Items] | ||||
Deficiency of stock option proceeds recorded to retained earnings | $ 100,000 | $ 300,000 | $ 2,100,000 |
Other Income (Expense) (Detail)
Other Income (Expense) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Other Income and Expenses [Abstract] | |||
Foreign currency transaction gains (losses) | $ (42) | $ (187) | $ 113 |
Foreign currency exchange derivative losses | (15) | (197) | (11) |
Pension Service Benefit | 243 | 396 | 978 |
Interest income | 28 | 63 | 69 |
Other | 66 | 41 | 7 |
Other income (expense) | $ 280 | $ 116 | $ 1,156 |
Segment Information (Detail)
Segment Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Oct. 31, 2020USD ($) | Jul. 31, 2020USD ($) | Apr. 30, 2020USD ($) | Jan. 31, 2020USD ($) | Oct. 31, 2019USD ($) | Jul. 31, 2019USD ($) | Apr. 30, 2019USD ($) | Jan. 31, 2019USD ($) | Oct. 31, 2020USD ($)segment | Oct. 31, 2019USD ($) | Oct. 31, 2018USD ($) | Nov. 02, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||||||||||||
Income tax (expense) benefit | $ (11,804) | $ (10,776) | $ 800 | |||||||||
General and Administrative Expense | $ 21,700 | 18,300 | 18,700 | |||||||||
Number of segments | segment | 3 | |||||||||||
Net sales | $ 255,405 | $ 212,096 | $ 187,475 | $ 196,597 | $ 240,369 | $ 238,461 | $ 218,203 | $ 196,808 | $ 851,573 | 893,841 | 889,785 | |
Depreciation and amortization | 11,378 | 11,060 | 11,886 | 12,905 | 12,428 | 12,182 | 12,404 | 12,572 | 47,229 | 49,586 | 51,822 | |
Operating income (loss) | 27,829 | $ 16,563 | $ 8,893 | $ 1,980 | (23,724) | $ 19,110 | $ (19,363) | $ (2,450) | 55,265 | (26,427) | 35,697 | |
Interest Expense | 5,245 | 9,643 | 11,100 | |||||||||
Other, net | 280 | 116 | 1,156 | |||||||||
Capital expenditures | 25,726 | 24,883 | 26,484 | |||||||||
Long-lived assets, net | 475,150 | 446,460 | 475,150 | 446,460 | ||||||||
Goodwill | 146,154 | 145,563 | 146,154 | 145,563 | 219,627 | |||||||
Assets | 691,585 | 645,110 | 691,585 | 645,110 | ||||||||
Goodwill, impairment loss | 0 | (74,600) | ||||||||||
Goodwill, Translation Adjustments | 591 | 536 | ||||||||||
Income (loss) from continuing operations | 38,496 | (46,730) | 26,553 | |||||||||
Woodcraft | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Goodwill | $ 39,100 | |||||||||||
Goodwill, impairment loss | (74,600) | |||||||||||
EU Engineered Components | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Goodwill, Translation Adjustments | 591 | 536 | ||||||||||
NA Cabinet Components | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Goodwill | 39,100 | 39,100 | 113,700 | |||||||||
United States | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 654,802 | 683,204 | 676,776 | |||||||||
Long-lived assets, net | 307,534 | 288,722 | 307,534 | 288,722 | ||||||||
Europe | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 158,829 | 162,106 | 159,652 | |||||||||
Canada | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 18,213 | 20,088 | 23,610 | |||||||||
Asia | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 11,504 | 18,360 | 18,584 | |||||||||
Other foreign countries | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 8,223 | 10,083 | 11,163 | |||||||||
Germany | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Long-lived assets, net | 25,519 | 16,899 | 25,519 | 16,899 | ||||||||
UNITED KINGDOM | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Long-lived assets, net | 142,097 | 140,839 | $ 142,097 | 140,839 | ||||||||
Operating Segments | NA Engineered Components | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Number of segments | segment | 3 | |||||||||||
Net sales | $ 483,415 | 503,837 | 485,366 | |||||||||
Depreciation and amortization | 23,555 | 27,054 | 27,248 | |||||||||
Operating income (loss) | 39,909 | 39,765 | 30,633 | |||||||||
Capital expenditures | 15,761 | 12,984 | 13,929 | |||||||||
Goodwill | 38,712 | 38,712 | 38,712 | 38,712 | 38,712 | |||||||
Assets | 252,703 | 226,243 | 252,703 | 226,243 | ||||||||
Goodwill, impairment loss | 0 | |||||||||||
Goodwill, Translation Adjustments | 0 | 0 | ||||||||||
Operating Segments | EU Engineered Components | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 161,054 | 164,997 | 159,973 | |||||||||
Depreciation and amortization | 9,468 | 8,845 | 9,607 | |||||||||
Operating income (loss) | 20,076 | 19,040 | 12,702 | |||||||||
Capital expenditures | 5,435 | 6,365 | 5,450 | |||||||||
Goodwill | 68,295 | 67,704 | 68,295 | 67,704 | 67,168 | |||||||
Assets | 223,248 | 212,239 | 223,248 | 212,239 | ||||||||
Goodwill, impairment loss | 0 | |||||||||||
Operating Segments | NA Cabinet Components | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 210,099 | 229,644 | 249,813 | |||||||||
Depreciation and amortization | 13,732 | 13,178 | 14,401 | |||||||||
Operating income (loss) | (2,502) | (74,236) | 3,167 | |||||||||
Capital expenditures | 4,423 | 5,383 | 6,965 | |||||||||
Goodwill | 39,147 | 39,147 | 39,147 | 39,147 | 113,747 | |||||||
Assets | 174,713 | 181,416 | 174,713 | 181,416 | ||||||||
Goodwill, Translation Adjustments | 0 | 0 | ||||||||||
Operating Segments | Non-fenestration | United States | NA Engineered Components | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 19,279 | 17,061 | 18,211 | |||||||||
Operating Segments | Non-fenestration | United States | NA Cabinet Components | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 196,479 | 214,211 | 232,990 | |||||||||
Operating Segments | Non-fenestration | International | NA Engineered Components | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 7,935 | 16,134 | 15,846 | |||||||||
Operating Segments | Non-fenestration | International | EU Engineered Components | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 26,622 | 25,359 | 24,558 | |||||||||
Operating Segments | Non-fenestration | International | NA Cabinet Components | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 1,778 | 2,289 | 2,227 | |||||||||
Operating Segments | Fenestration | United States | NA Engineered Components | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 427,616 | 439,536 | 412,000 | |||||||||
Operating Segments | Fenestration | United States | NA Cabinet Components | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 11,842 | 13,144 | 14,596 | |||||||||
Operating Segments | Fenestration | International | NA Engineered Components | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 28,585 | 31,106 | 39,309 | |||||||||
Operating Segments | Fenestration | International | EU Engineered Components | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 134,432 | 139,638 | 135,415 | |||||||||
Intersegment Eliminations | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | (2,995) | (4,637) | (5,367) | |||||||||
Corporate, Non-segment | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | (2,995) | (4,637) | (5,367) | |||||||||
Depreciation and amortization | 474 | 509 | 566 | |||||||||
Operating income (loss) | (2,218) | (10,996) | (10,805) | |||||||||
Capital expenditures | 107 | 151 | 140 | |||||||||
Goodwill | 0 | 0 | 0 | 0 | $ 0 | |||||||
Assets | $ 40,921 | $ 25,212 | 40,921 | 25,212 | ||||||||
Goodwill, impairment loss | 0 | |||||||||||
Goodwill, Translation Adjustments | $ 0 | $ 0 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Earnings Per Share Disclosure [Line Items] | |||||||||||
Income (loss) from continuing operations | $ 38,496 | $ (46,730) | $ 26,553 | ||||||||
Weighted average number of shares outstanding, basic | 32,689,000 | 32,960,000 | 34,701,000 | ||||||||
Weighted average number of shares outstanding, diluted | 32,821,000 | 32,960,000 | 35,025,000 | ||||||||
Basic earnings (loss) per share (usd per share) | $ (1.18) | $ 1.42 | $ (0.77) | ||||||||
Earnings (loss) from continuing operations | $ 1.17 | $ (1.42) | $ 0.76 | ||||||||
Antidilutive securities | 1,032,201 | 1,267,141 | 1,000,356 | ||||||||
Revenues | $ 255,405 | $ 212,096 | $ 187,475 | $ 196,597 | $ 240,369 | $ 238,461 | $ 218,203 | $ 196,808 | $ 851,573 | $ 893,841 | $ 889,785 |
Cost of sales (excluding depreciation and amortization) | 189,164 | 162,427 | 149,732 | 157,427 | 183,128 | 181,357 | 171,378 | 158,557 | 658,750 | 694,420 | 697,022 |
Depreciation and amortization | 11,378 | 11,060 | 11,886 | 12,905 | 12,428 | 12,182 | 12,404 | 12,572 | 47,229 | 49,586 | 51,822 |
Operating (loss) income | 27,829 | 16,563 | 8,893 | 1,980 | (23,724) | 19,110 | (19,363) | (2,450) | 55,265 | (26,427) | 35,697 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 22,152 | $ 10,833 | $ 5,501 | $ 10 | $ (30,948) | $ 11,841 | $ (23,974) | $ (3,649) | $ 38,496 | $ (46,730) | $ 26,553 |
Basic earnings (loss) per common share | $ 0.68 | $ 0.33 | $ 0.17 | $ 0 | $ (0.94) | $ 0.36 | $ (0.73) | $ (0.11) | $ 1.18 | $ (1.42) | $ 0.77 |
Diluted earnings (loss) per common share | 0.68 | 0.33 | 0.17 | 0 | (0.94) | 0.36 | (0.73) | (0.11) | 1.17 | (1.42) | 0.76 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.32 | $ 0.32 | $ 0.20 |
Stock options | |||||||||||
Earnings Per Share Disclosure [Line Items] | |||||||||||
Weighted Average Dilutive Securities | 10,000 | 40,000 | 198,000 | ||||||||
Restricted stock | |||||||||||
Earnings Per Share Disclosure [Line Items] | |||||||||||
Weighted Average Dilutive Securities | 90,000 | 126,000 | |||||||||
Restricted Stock or Unit Expense | 113,000 | ||||||||||
Performance Shares | |||||||||||
Earnings Per Share Disclosure [Line Items] | |||||||||||
Restricted Stock or Unit Expense | 32,000 | 28,000 |
Unaudited Quarterly Data (Detai
Unaudited Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 255,405 | $ 212,096 | $ 187,475 | $ 196,597 | $ 240,369 | $ 238,461 | $ 218,203 | $ 196,808 | $ 851,573 | $ 893,841 | $ 889,785 |
Cost of sales (excluding depreciation and amortization) | 189,164 | 162,427 | 149,732 | 157,427 | 183,128 | 181,357 | 171,378 | 158,557 | 658,750 | 694,420 | 697,022 |
Depreciation and amortization | 11,378 | 11,060 | 11,886 | 12,905 | 12,428 | 12,182 | 12,404 | 12,572 | 47,229 | 49,586 | 51,822 |
Operating (loss) income | 27,829 | 16,563 | 8,893 | 1,980 | (23,724) | 19,110 | (19,363) | (2,450) | 55,265 | (26,427) | 35,697 |
Net (loss) income | $ 22,152 | $ 10,833 | $ 5,501 | $ 10 | $ (30,948) | $ 11,841 | $ (23,974) | $ (3,649) | $ 38,496 | $ (46,730) | $ 26,553 |
Basic earnings (loss) per share (usd per share) | $ 0.68 | $ 0.33 | $ 0.17 | $ 0 | $ (0.94) | $ 0.36 | $ (0.73) | $ (0.11) | $ 1.18 | $ (1.42) | $ 0.77 |
Diluted earnings (loss) per share (usd per share) | 0.68 | 0.33 | 0.17 | 0 | (0.94) | 0.36 | (0.73) | (0.11) | 1.17 | (1.42) | 0.76 |
Cash dividends paid per common share (usd per share) | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.32 | $ 0.32 | $ 0.20 |
Accounting Changes and Error Co
Accounting Changes and Error Corrections (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Oct. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Liability | $ 52,332 | |
Operating lease right-of-use assets | $ 51,824 | $ 0 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Liability | 39,300 | |
Operating lease right-of-use assets | $ 38,900 |