KLX (KLXI) 10-Q 9 Dec 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Oct. 31, 2016	Dec. 06, 2016
Document And Entity Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Oct. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Entity Current Reporting Status	Yes
Entity Registrant Name	KLX Inc.
Entity Central Index Key	1,617,898
Current Fiscal Year End Date	--01-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		52,508,734

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Oct. 31, 2016	Jan. 31, 2016
Current assets:
Cash and cash equivalents	$ 297.7	$ 427.8
Accounts receivable-trade, less allowance for doubtful accounts ($11.2 at October 31, 2016 and $11.3 at January 31, 2016)	294	259.6
Inventories, net	1,362.1	1,295.3
Other current assets	34.7	40.1
Total current assets	1,988.5	2,022.8
Property and equipment, net of accumulated depreciation ($140.3 at October 31, 2016 and $109.3 at January 31, 2016)	257.4	260.5
Goodwill	993.3	954.9
Identifiable intangible assets, net	320.3	262.7
Deferred income taxes	147	163.4
Other assets	22.1	26.7
Total assets	3,728.6	3,691
Current liabilities:
Accounts payable	158	145.9
Accrued liabilities	109.3	115.3
Total current liabilities	267.3	261.2
Long-term debt	1,181.3	1,179.5
Deferred income taxes	6.5	16.2
Other non-current liabilities	36	31.6
Commitments, contingencies and off-balance sheet arrangements (Note 10)
Stockholders' equity:
Preferred stock, $0.01 par value; 1.0 million shares authorized; no shares outstanding
Common stock, $0.01 par value; 250.0 million shares authorized; 53.3 million shares issued as of October 31, 2016 and 53.3 million shares issued as of January 31, 2016	0.5	0.5
Additional paid-in capital	2,678.1	2,662.4
Treasury stock: 0.8 million shares at October 31, 2016 and 0.4 shares at January 31, 2016	(23)	(12.5)
Accumulated deficit	(338.4)	(373.7)
Accumulated other comprehensive loss	(79.7)	(74.2)
Total stockholders' equity	2,237.5	2,202.5
Total liabilities and equity	$ 3,728.6	$ 3,691

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Oct. 31, 2016	Jan. 31, 2016
Condensed Consolidated Balance Sheets
Accounts receivable - trade, allowance for doubtful accounts	$ 11.2	$ 11.3
Property and equipment, accumulated depreciation	$ 140.3	$ 109.3
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	53,300,000	53,300,000
Treasury stock	800,000	400,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Condensed Consolidated Statements of Earnings (Loss) and Comprehensive Income (Loss)
Product revenues	$ 348.8	$ 306.7	$ 1,039	$ 1,006.4
Service revenues	40.2	58.3	109.6	202.8
Total revenues	389	365	1,148.6	1,209.2
Cost of sales - products	244.2	213.7	728	705.7
Cost of sales - services	44.8	65.4	136	212.6
Total cost of sales	289	279.1	864	918.3
Selling, general and administrative	61.4	65	181.9	189.7
Goodwill impairment charge		310.4		310.4
Long-lived asset impairment charge		329.8		329.8
Operating earnings (loss)	38.6	(619.3)	102.7	(539)
Interest expense	18.8	19	56.8	58.2
Earnings (loss) before income taxes	19.8	(638.3)	45.9	(597.2)
Income tax expense (benefit)		(237.5)	10.3	(221.7)
Net earnings (loss)	19.8	(400.8)	35.6	(375.5)
Other comprehensive (loss) income:
Foreign currency translation adjustment	(10.8)	(0.4)	(5.5)	(6.6)
Comprehensive income (loss)	$ 9	$ (401.2)	$ 30.1	$ (382.1)
Basic net earnings (loss) per share	$ 0.38	$ (7.68)	$ 0.69	$ (7.19)
Diluted net earnings (loss) per share	$ 0.38	$ (7.68)	$ 0.68	$ (7.19)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings (loss)	$ 35.6	$ (375.5)
Adjustments to reconcile net earnings to net cash flows provided by operating activities:
Depreciation and amortization	50.6	59.8
Deferred income taxes	6.5	(226.6)
Asset impairment charge		640.2
Non-cash compensation	14.7	10.9
Amortization of deferred financing fees	3.2	2.9
Tax impact from prior sales of restricted stock		(0.9)
Provision for doubtful accounts	(0.1)	0.9
Loss on disposal of property, equipment and other	4.3	2.8
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	(22.2)	33.6
Inventories	35.3	9
Other current and non-current assets	9.3	4.7
Accounts payable	2.7	(0.1)
Other current and non-current liabilities	(0.8)	35.8
Net cash flows provided by operating activities	139.1	197.5
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(33.9)	(106.4)
Acquisitions, net of cash acquired	(220.8)	1
Net cash flows used in investing activities	(254.7)	(105.4)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of treasury stock	(13.5)	(0.1)
Cash proceeds from stock issuance	0.8	0.7
Tax impact from prior sales of restricted stock		0.9
Deferred acquisition payments		(90.8)
Net cash flows used in financing activities	(12.7)	(89.3)
Effect of foreign exchange rate changes on cash and cash equivalents	(1.8)	(1)
Net (decrease) increase in cash and cash equivalents	(130.1)	1.8
Cash and cash equivalents, beginning of period	427.8	447.2
Cash and cash equivalents, end of period	297.7	449
Cash paid during period for:
Income taxes paid, net of refunds	4.1	9.1
Interest	$ 36.4	$ 35.2

Description of Business and Bas

Description of Business and Basis of Presentation	9 Months Ended
	Oct. 31, 2016
Description of Business and Basis of Presentation
Description of Business and Basis of Presentation	Note 1. Description of Business and Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All adjustments which, in the opinion of management, are considered necessary for a fair presentation of the results of operations for the periods shown are of a normal recurring nature and have been reflected in the condensed consolidated financial statements. The results of operations for the periods presented are not necessarily indicative of the results expected for the full fiscal year or for any future period. The information included in these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the KLX Inc. (the “Company” or “KLX”) Annual Report on Form 10-K for the fiscal year ended January 31, 2016. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and related disclosures. Actual results could differ from those estimates.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Oct. 31, 2016
Recent Accounting Pronouncements
Recent Accounting Pronouncements	Note 2. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting , which amends ASC Topic 718, Compensation – Stock Compensation . The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. The ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those years. Earlier adoption is permitted. The Company is currently evaluating the effect this update will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”), which supersedes ASC Topic 840, Leases, and creates a new topic, ASC Topic 842, Leases. This update is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Earlier adoption is permitted. ASU 2016-02 requires lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. ASU 2016-02 will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the effect of this update on its consolidated financial statements. In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers , which updated the guidance in ASC Topic 606, Revenue Recognition . The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date . The amendments in this update deferred the effective date for implementation of ASU 2014-09 by one year and is now effective for annual reporting periods beginning after December 15, 2017. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that period. In April 2016, FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , and in May 2016, ASU 2016-12, Revenues from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients both of which provide supplemental adoption guidance and clarification to ASU 2014-09. ASU 2016-10 and ASU 2016-12 must be adopted concurrently with the adoption of ASU 2014-09. The Company has not determined the impact this guidance will have on the financial statements. However, the identification of implementation project team members and the inventorying of contracts with customers, particularly large customer contracts, has begun. Other than increased disclosures, the impact of the revised accounting guidance to the results of operations and cash flows of the Company cannot be determined until the assessment process is complete.

Business Combinations

Business Combinations	9 Months Ended
	Oct. 31, 2016
Business Combinations
Business Combinations	Note 3. Business Combinations On May 17, 2016, the Company acquired Herndon Aerospace & Defense LLC (“Herndon”), an aftermarket aerospace supply chain management and consumables hardware distributor servicing principally aftermarket military depots as well as the commercial aerospace aftermarket for an aggregate purchase price of $220.8 (net of cash acquired). During the quarter ended October 31, 2016, Herndon’s acquired working capital was finalized resulting in a reduction in purchase price of $0.7 and customary working capital adjustments as of the closing date which were not material individually or in the aggregate. Additionally, the Company adjusted the allocation of the Herndon purchase price to increase intangible assets by $16.4 and decrease goodwill and inventories by $14.2 and $3.0, respectively, related to the Company’s preliminary purchase price allocation. The impact of the purchase price adjustment to the Company’s condensed consolidated statement of earnings from the date of acquisition was not material. Based on the Company’s preliminary purchase price allocation, the excess of the purchase price of the fair value of the identifiable assets acquired approximated $113.6, of which $68.9 was allocated to identifiable intangible assets consisting of customer contracts and relationships and covenants not to compete, and $44.7 is included in goodwill. The useful life assigned to the customer contracts and relationships is 20 years, and the covenants not to compete are being amortized over their contractual periods of five years. The Herndon acquisition was accounted for as a purchase under FASB ASC 805, Business Combinations. The assets acquired and liabilities assumed have been reflected in the accompanying condensed consolidated balance sheet as of October 31, 2016 and the results of operations are included in the accompanying condensed consolidated statements of earnings and comprehensive income from the date of acquisition. The valuation of certain assets, principally intangible assets and inventories, is not yet complete, and as such, the Company has not yet finalized its allocation of the purchase price for the acquisition. The following table summarizes the current estimates of fair values of assets acquired and liabilities assumed in the Herndon acquisition in accordance with ASC 805, which are currently recorded based on management’s estimates as follows: Accounts receivable-trade $ Inventories Other current and non-current assets Property and equipment Goodwill Identified intangibles Accounts payable Other current and non-current liabilities Total consideration paid $ The majority of goodwill and intangible assets are expected to be deductible for tax purposes. On a pro forma basis to give effect to the Herndon acquisition as if it occurred on February 1, 2015, revenues, net earnings (loss) and earnings (loss) per diluted share for the three months ended October 31, 2015 and the nine months ended October 31, 2016 and 2015 were: THREE MONTHS ENDED NINE MONTHS ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2016 2015 2016 2015 As Reported Pro forma Pro forma Pro forma Revenues $ $ $ $ Net earnings (loss) Earnings (loss) per diluted share The Company has begun integrating Herndon into its Aerospace Solutions Group (“ASG”) segment systems. As a result, it is not practicable to report stand-alone operating earnings of the acquired business since the acquisition date, and going forward it will not be practicable to report stand-alone revenues of the acquired business. Revenues from Herndon from the acquisition date of May 17, 2016 through October 31, 2016 were $56.7.

Inventories

Inventories	9 Months Ended
	Oct. 31, 2016
Inventories
Inventories	Note 4. Inventories Inventories, made up of finished goods, consist primarily of aerospace fasteners and consumables. The Company values inventories at the lower of cost or market, using first‑in, first‑out or weighted average cost method. The Company reviews inventory quantities on hand and records a provision for excess and obsolete inventory based primarily on historical demand, estimated product demand to support contractual supply agreements with its customers and the age of the inventory, among other factors. Demand for the Company’s products can fluctuate from period to period depending on customer activity. In accordance with industry practice, inventories include amounts relating to long-term contracts with long production cycles, some of which are not expected to be realized within one year. In addition, the Company supports a substantial portion of the global fleet of aircraft in service, and in its capacity as a stocking distributor will acquire and hold inventories for aircraft maintenance at periodic intervals as mandated by the Federal Aviation Administration (“FAA”) or similar regulatory agencies. Based on historical experience, the support of the aftermarket activities with products such as those which the Company sells will necessitate holding inventory in excess of the amount required to support new build production activity contracts. Obsolescence has historically been immaterial for the Company due to the long life of an aircraft and nature of the products sold by the Company. Inventory with a limited shelf life is continually monitored and reserved for in advance of expiration. The annual provision for inventory with limited shelf life has historically been immaterial. Reserves for excess and obsolete inventory were approximately $47.8 and $40.4 as of October 31, 2016 and January 31, 2016, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Oct. 31, 2016
Goodwill and Intangible Assets
Goodwill and Intangible Assets	Note 5. Goodwill and Intangible Assets The table below sets forth the intangible assets by major asset class, all of which were acquired through business purchase transactions: October 31, 2016 Useful Life Original Accumulated Net Book (Years) Cost Amortization Value Customer contracts and relationships 8 - 30 $ $ $ Covenants not to compete 4 - 5 Developed technologies 15 Trade names Indefinite - $ $ $ Amortization expense associated with identifiable intangible assets was approximately $4.8 and $5.8 for the three months ended October 31, 2016 and 2015, respectively, and $14.7 and $19.1 for the nine months ended October 31, 2016 and 2015, respectively. The Company currently expects to recognize amortization expense of approximately $20.0 in each of the next five fiscal years (primarily related to our ASG business). The future amortization amounts are estimates. Actual future amortization expense may be different due to finalization of purchase price allocations of acquisitions, future acquisitions, impairments, changes in amortization periods or other factors such as changes in exchange rates for assets acquired outside the United States. The Company expenses costs to renew or extend the term of a recognized intangible asset. Goodwill increased by $38.4 as compared to January 31, 2016 primarily as a result of the May 17, 2016 acquisition of Herndon by the ASG segment. The fair value of the ASG reporting unit exceeded the carrying value by approximately 16% as of December 31, 2015, and approximately $993.3 of goodwill has been allocated to the ASG reporting unit as of October 31, 2016. ASG's cash flow projections were a significant input into the December 31, 2015 reporting unit fair value. Should ASG’s future cash from operations decline to levels inconsistent with ASG’s projected results, long-term projections may be adjusted downward, which could result in an impairment charge at the ASG reporting unit.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Oct. 31, 2016
Related Party Transactions
Related Party Transactions	Note 6. Related Party Transactions On December 17, 2014, B/E Aerospace, Inc. ( “B/E Aerospace”) created an independent public company through a spin-off of its ASG and Energy Services Group (“ESG”) businesses to B/E Aerospace’s stockholders (“Spin-Off”). Following the Spin-Off, the Company created in-house substantially all of the functions that were previously provided to it by B/E Aerospace. In addition, the Company has entered into certain agreements with B/E Aerospace relating to transition services and IT services for a transitional period of approximately 24 months following the Spin-Off. In addition, the Company entered into an employee matters agreement and a tax sharing and indemnification agreement with B/E Aerospace in connection with the Spin-Off. This transitional support enables KLX to establish its stand-alone processes for various activities that were previously provided by B/E Aerospace and does not constitute significant continuing support of KLX’s operations. Expenses incurred under those agreements totaled $2.1 and $2.7 for the three months ended October 31, 2016 and 2015, respectively, and $7.1 and $8.8 for the nine months ended October 31, 2016 and 2015, respectively. As of October 31, 2016, the Company has recorded a tax indemnity payable to B/E Aerospace totaling $4.7, of which $0.1 is classified in other current liabilities and $4.6 is classified in other long term liabilities. Sales to B/E Aerospace were $5.4 and $5.1 for the three months ended October 31, 2016 and 2015, respectively, and $18.6 and $14.4 for the nine months ended October 31, 2016 and 2015, respectively.

Accrued Liabilities

Accrued Liabilities	9 Months Ended
	Oct. 31, 2016
Accrued Liabilities
Accrued Liabilities	Note 7. Accrued Liabilities Accrued liabilities consisted of the following : October 31, 2016 January 31, 2016 Accrued salaries, vacation and related benefits $ $ Accrued commissions Income taxes payable Accrued interest Other accrued liabilities $ $

Long-Term Debt

Long-Term Debt	9 Months Ended
	Oct. 31, 2016
Long-Term Debt
Long-Term Debt	Note 8. Long-Term Debt As of October 31, 2016, long-term debt consisted of $1,200.0 aggregate principal amount of the Company’s 5.875% senior unsecured notes due 2022 (the “5.875% Notes”). On a net basis, after taking into consideration the debt issue costs for the Term Loan Facility, total debt was $1,181.3. As of October 31, 2016, the Company also had a $750.0 undrawn secured revolving credit facility pursuant to a credit agreement dated as of December 16, 2014 and amended and restated on May 19, 2015 (the “Revolving Credit Facility”). Borrowings under the Revolving Credit Facility bear interest at an annual rate equal to the London interbank offered rate (“LIBOR”) (as defined in the Revolving Credit Facility) plus the applicable margin (as defined). No amounts were outstanding under the Revolving Credit Facility as of October 31, 2016. The Revolving Credit Facility is tied to a borrowing base formula and has no maintenance financial covenants. This Revolving Credit Facility matures in May 2020. The credit agreement is collateralized by the Company’s assets and contains customary affirmative covenants, negative covenants, restrictions on the payment of dividends and the repurchase of our stock, and conditions precedent for borrowings, all of which were met as of October 31, 2016. Letters of credit issued under the Revolving Credit Facility aggregated $4.8 and $3.2 at October 31, 2016 and 2015, respectively.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Oct. 31, 2016
Fair Value Measurements
Fair Value Measurements	Note 9. Fair Value Measurements All short-term financial instruments are generally carried at amounts that approximate estimated fair value. The fair value is the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. Assets measured at fair value are categorized based upon the lowest level of significant input to the valuations. Level 1 – quoted prices in active markets for identical assets and liabilities. Level 2 – quoted prices for identical assets and liabilities in markets that are not active, or observable inputs other than quoted prices in active markets for identical assets and liabilities. Level 3 – unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions. The carrying amounts of cash and cash equivalents (which the Company classifies as Level 1 assets), accounts receivable – trade and accounts payable represent their respective fair values due to their short-term nature. There was no debt outstanding under the Revolving Credit Facility as of October 31, 2016. The fair value of the Company’s 5.875% Notes, based on market prices for publicly-traded debt (which the Company classifies as Level 2 inputs), was $1,218.2 and $1,136.4 as of October 31, 2016 and January 31, 2016, respectively.

Commitments, Contingencies and

Commitments, Contingencies and Off-Balance Sheet Arrangements	9 Months Ended
	Oct. 31, 2016
Commitments, Contingencies and Off-Balance Sheet Arrangements
Commitments, Contingencies and Off-Balance Sheet Arrangements	Note 10. Commitments, Contingencies and Off-Balance Sheet Arrangements Lease Commitments - The Company finances its use of certain facilities and equipment under committed lease arrangements provided by various institutions. Since the terms of these arrangements meet the accounting definition of operating lease arrangements, the aggregate sum of future minimum lease payments is not reflected on the condensed consolidated balance sheets. At October 31, 2016, future minimum lease payments under these arrangements approximated $90.9, the majority of which related to long-term real estate leases. Litigation - The Company is a defendant in various legal actions arising in the normal course of business, the outcomes of which, in the opinion of management, neither individually nor in the aggregate are likely to result in a material adverse effect on the Company’s consolidated financial statements. Indemnities, Commitments and Guarantees - During its normal course of business, the Company has made certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain transactions. These indemnities include indemnities to various lessors in connection with facility leases for certain claims arising from such facility or lease and indemnities to other parties to certain acquisition agreements. The duration of these indemnities, commitments and guarantees varies, and in certain cases, is indefinite. Many of these indemnities, commitments and guarantees provide for limitations on the maximum potential future payments the Company could be obligated to make. However, the Company is unable to estimate the maximum amount of liability related to its indemnities, commitments and guarantees because such liabilities are contingent upon the occurrence of events that are not reasonably determinable. Management believes that any liability for these indemnities, commitments and guarantees would not be material to the accompanying consolidated financial statements. Accordingly, no significant amounts have been accrued for indemnities, commitments and guarantees. The Company has employment agreements with three year initial terms, which renew for one additional year on each anniversary date, with certain key members of management. The Company’s employment agreements generally provide for certain protections in the event of a change of control. These protections generally include the payment of severance and related benefits under certain circumstances in the event of a change of control.

Accounting for Stock-Based Comp

Accounting for Stock-Based Compensation	9 Months Ended
	Oct. 31, 2016
Accounting for Stock-Based Compensation
Accounting for Stock-Based Compensation	Note 11. Accounting for Stock-Based Compensation The Company has a Long-Term Incentive Plan (“LTIP”) under which the Company’s Compensation Committee has the authority to grant stock options, stock appreciation rights, restricted stock, restricted stock units or other forms of equity-based or equity-related awards. The Company accounts for share-based compensation arrangements in accordance with the provisions of FASB ASC 718, Compensation—Stock Compensation , whereby share-based compensation cost is measured on the date of grant, based on the fair value of the award, and is recognized over the requisite service period. Compensation cost recognized during the three and nine months ended October 31, 2016 and 2015 related to KLX restricted stock and stock options was $4.8 and $3.5, and $14.3 and $10.6, respectively. Unrecognized compensation expense related to these grants was $32.5 at October 31, 2016. KLX has established a qualified Employee Stock Purchase Plan, the terms of which allow for qualified employees (as defined in the Plan) to participate in the purchase of designated shares of KLX’s common stock at a price equal to 85% of the closing price on the last business day of each semi ‑ annual stock purchase period. The fair value of employee purchase rights represents the difference between the closing price of KLX’s shares on the date of purchase and the purchase price of the shares. Compensation cost for this plan was not material to any of the periods presented.

Segment Reporting

Segment Reporting	9 Months Ended
	Oct. 31, 2016
Segment Reporting
Segment Reporting	Note 12. Segment Reporting The Company is organized based on the products and services it offers. The Company’s reportable segments which are also its operating segments, are comprised of ASG and ESG. The segments regularly report their results of operations and make requests for capital expenditures and acquisition funding to the Company’s chief operational decision-making group (“CODM”). This group is comprised of the Chairman and Chief Executive Officer and the President and Chief Operating Officer. As a result, the CODM has determined the Company has two reportable segments. The following table presents revenues and operating earnings (losses) by reportable segment: THREE MONTHS ENDED NINE MONTHS ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, Revenues 2016 2015 2016 2015 Aerospace Solutions Group $ $ $ $ Energy Services Group Total revenues Operating earnings (loss) (1) Aerospace Solutions Group Energy Services Group Total operating earnings (loss) Interest expense Earnings (loss) before income taxes $ $ $ $ (1) Operating earnings (loss) include an allocation of employee benefits and general and administrative costs based on the proportion of each segment’s number of employees for the three and nine months ended October 31, 2016 and revenues for the three and nine months ended October 31, 2015. The following table presents capital expenditures by reportable segment: THREE MONTHS ENDED NINE MONTHS ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2016 2015 2016 2015 Aerospace Solutions Group $ $ $ $ Energy Services Group $ $ $ $ Corporate capital expenditures have been allocated to the above segments based on each segment’s percentage of total capital expenditures. The following table presents goodwill by reportable segment: October 31, January 31, 2016 2016 Aerospace Solutions Group $ $ Energy Services Group - $ $ The following table presents total assets by reportable segment: October 31, January 31, 2016 2016 Aerospace Solutions Group $ $ Energy Services Group $ $ Corporate assets (primarily cash and cash equivalents) of $411.9 and $559.5 at October 31, 2016 and January 31, 2016, respectively, have been allocated to the above segments based on each segment’s percentage of total assets.

Net Earnings Per Common Share

Net Earnings Per Common Share	9 Months Ended
	Oct. 31, 2016
Net Earnings Per Common Share
Net Earnings Per Common Share	Note 13. Net Earnings Per Common Share Basic net earnings per common share is computed using the weighted average common shares outstanding during the period. Diluted net earnings per common share is computed by using the weighted average common shares outstanding including the dilutive effect of stock options, shares issued under the KLX LTIP and restricted shares based on an average share price during the period. For the three months ended October 31, 2016 and 2015, approximately 0.4 and no shares and for the nine months ended October 31, 2016 and 2015, approximately 0.3 and no shares of the Company’s common stock, respectively, were excluded from the determination of diluted earnings per common share because their effect would have been anti-dilutive. The computations of basic and diluted earnings per share for the three and nine months ended October 31, 2016 and 2015 are as follows: THREE MONTHS ENDED NINE MONTHS ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2016 2015 2016 2015 Net earnings (loss) $ $ $ $ (Shares in millions) Basic weighted average common shares Effect of dilutive securities - dilutive securities - - Diluted weighted average common shares Basic net earnings (loss) per common share $ $ $ $ Diluted net earnings (loss) per common share $ $ $ $

Income Taxes

Income Taxes	9 Months Ended
	Oct. 31, 2016
Income Taxes
Income Taxes	Note 14. Income Taxes In accordance with FASB ASC 740, Income Taxes , the Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. As of October 31, 2016 and 2015, the Company had $12.3 and $10.3, respectively, of uncertain tax positions, including accrued interest of $1.7 and $1.1 at October 31, 2016 and 2015, respectively, all of which would affect the Company’s effective tax rate if recognized. During the quarter, the Company determined that certain loss carryforwards, previously reserved in the Company’s valuation allowance, would no longer require a reserve as we realized a one-time benefit from our ongoing tax planning initiatives. The release of valuation allowance with respect to these loss carryforwards resulted in a tax benefit for the quarter. The tax benefit netted against the Company’s tax expense on book income for the quarter, which resulted in no tax expense for the quarter. As a result, the Company now expects an effective tax rate of approximately 27.5% for the year ending January 31, 2017. Pursuant to the terms of the Tax Sharing Agreement with our former parent, B/E Aerospace, the Company may be liable for income tax in certain foreign jurisdictions arising from the examination of tax years during which the Company was part of the B/E Group. The statute of limitations in these foreign jurisdictions is open for tax years 2007-2015. The Company is currently undergoing a U.S. federal income tax examination for the period from December 17, 2014 through December 31, 2015.

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Oct. 31, 2016
Description of Business and Summary of Significant Accounting Policies
Recent Accounting Pronouncements	In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting , which amends ASC Topic 718, Compensation – Stock Compensation . The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. The ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those years. Earlier adoption is permitted. The Company is currently evaluating the effect this update will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”), which supersedes ASC Topic 840, Leases, and creates a new topic, ASC Topic 842, Leases. This update is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Earlier adoption is permitted. ASU 2016-02 requires lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. ASU 2016-02 will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the effect of this update on its consolidated financial statements. In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers , which updated the guidance in ASC Topic 606, Revenue Recognition . The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date . The amendments in this update deferred the effective date for implementation of ASU 2014-09 by one year and is now effective for annual reporting periods beginning after December 15, 2017. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that period. In April 2016, FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , and in May 2016, ASU 2016-12, Revenues from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients both of which provide supplemental adoption guidance and clarification to ASU 2014-09. ASU 2016-10 and ASU 2016-12 must be adopted concurrently with the adoption of ASU 2014-09. The Company has not determined the impact this guidance will have on the financial statements. However, the identification of implementation project team members and the inventorying of contracts with customers, particularly large customer contracts, has begun. Other than increased disclosures, the impact of the revised accounting guidance to the results of operations and cash flows of the Company cannot be determined until the assessment process is complete.

Business Combinations (Tables)

Business Combinations (Tables) - Herndon	9 Months Ended
	Oct. 31, 2016
Estimates of Fair Values of Assets Acquired and Liabilities Assumed	Accounts receivable-trade $ Inventories Other current and non-current assets Property and equipment Goodwill Identified intangibles Accounts payable Other current and non-current liabilities Total consideration paid $
Pro Forma Revenues, Net Earnings (Loss) and Diluted Net Earnings (Loss) Per Share	THREE MONTHS ENDED NINE MONTHS ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2016 2015 2016 2015 As Reported Pro forma Pro forma Pro forma Revenues $ $ $ $ Net earnings (loss) Earnings (loss) per diluted share

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Oct. 31, 2016
Goodwill and Intangible Assets
Intangible Assets by Major Asset Class	October 31, 2016 Useful Life Original Accumulated Net Book (Years) Cost Amortization Value Customer contracts and relationships 8 - 30 $ $ $ Covenants not to compete 4 - 5 Developed technologies 15 Trade names Indefinite - $ $ $

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	9 Months Ended
	Oct. 31, 2016
Accrued Liabilities
Accrued Liabilities	October 31, 2016 January 31, 2016 Accrued salaries, vacation and related benefits $ $ Accrued commissions Income taxes payable Accrued interest Other accrued liabilities $ $

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Oct. 31, 2016
Segment Reporting
Revenues and Operating Earnings (Losses) by Reportable Segment	THREE MONTHS ENDED NINE MONTHS ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, Revenues 2016 2015 2016 2015 Aerospace Solutions Group $ $ $ $ Energy Services Group Total revenues Operating earnings (loss) (1) Aerospace Solutions Group Energy Services Group Total operating earnings (loss) Interest expense Earnings (loss) before income taxes $ $ $ $ (1) Operating earnings (loss) include an allocation of employee benefits and general and administrative costs based on the proportion of each segment’s number of employees for the three and nine months ended October 31, 2016 and revenues for the three and nine months ended October 31, 2015.
Capital Expenditures by Reportable Segment	THREE MONTHS ENDED NINE MONTHS ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2016 2015 2016 2015 Aerospace Solutions Group $ $ $ $ Energy Services Group $ $ $ $
Goodwill by Reportable Segment	October 31, January 31, 2016 2016 Aerospace Solutions Group $ $ Energy Services Group - $ $
Total Assets by Reportable Segment	October 31, January 31, 2016 2016 Aerospace Solutions Group $ $ Energy Services Group $ $

Net Earnings Per Common Share (

Net Earnings Per Common Share (Tables)	9 Months Ended
	Oct. 31, 2016
Net Earnings Per Common Share
Computation of Basic and Diluted Net Earnings Per Share	THREE MONTHS ENDED NINE MONTHS ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2016 2015 2016 2015 Net earnings (loss) $ $ $ $ (Shares in millions) Basic weighted average common shares Effect of dilutive securities - dilutive securities - - Diluted weighted average common shares Basic net earnings (loss) per common share $ $ $ $ Diluted net earnings (loss) per common share $ $ $ $

Business Combinations (Details)

Business Combinations (Details) - USD ($) $ in Millions	May 17, 2016	Oct. 31, 2016	Oct. 31, 2016	Oct. 31, 2015
Business Combinations
Purchase price, net of cash acquired			$ 220.8	$ (1)
Herndon
Business Combinations
Purchase price, net of cash acquired	$ 220.8
Identified intangible assets including goodwill		$ 113.6
Reduction in purchase price		0.7
Increase to intangible assets, purchase price allocation		16.4
Goodwill reduction, purchase price allocation		14.2
Inventory reduction, purchase price allocation		$ 3
Customer contracts and relationships | Minimum
Business Combinations
Useful Life (years)			8 years
Customer contracts and relationships | Maximum
Business Combinations
Useful Life (years)			30 years
Customer contracts and relationships | Herndon
Business Combinations
Useful Life (years)		20 years
Covenants not to compete | Minimum
Business Combinations
Useful Life (years)			4 years
Covenants not to compete | Maximum
Business Combinations
Useful Life (years)			5 years
Covenants not to compete | Herndon
Business Combinations
Useful Life (years)		5 years

Business Combinations (Assets A

Business Combinations (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		5 Months Ended	9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2016	Oct. 31, 2015	Jan. 31, 2016
Business Combination, Separately Recognized Transactions [Line Items]
Goodwill	$ 993.3		$ 993.3	$ 993.3		$ 954.9
Revenues	389	$ 365		1,148.6	$ 1,209.2
Net earnings (loss)	$ 19.8	$ (400.8)		$ 35.6	$ (375.5)
Diluted net earnings (loss) per share	$ 0.38	$ (7.68)		$ 0.68	$ (7.19)
Herndon
Business Combination, Separately Recognized Transactions [Line Items]
Accounts receivable-trade	$ 12.3		12.3	$ 12.3
Inventories	103.2		103.2	103.2
Other current and non-current assets	1.1		1.1	1.1
Property and equipment	2.3		2.3	2.3
Goodwill	44.7		44.7	44.7
Identified intangibles	68.9		68.9	68.9
Accounts payable	(9.7)		(9.7)	(9.7)
Other current and non-current liabilities	(2)		(2)	(2)
Total consideration paid	220.8		220.8	220.8
Unaudited pro forma revenues had business acquisitions occurred at the beginning of the period		$ 399.5		1,198.8	$ 1,309.3
Unaudited pro forma net earnings (loss) had business acquisitions occurred at the beginning of the period		$ (398.4)		$ 39.1	$ (368.6)
Unaudited pro forma diluted net earnings (loss) per share had business acquisitions occurred at the beginning of the period		$ (7.63)		$ 0.75	$ (7.06)
Revenues	389		$ 56.7
Net earnings (loss)	$ 19.8
Diluted net earnings (loss) per share	$ 0.38

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Oct. 31, 2016	Jan. 31, 2016
Inventories
Inventory reserves	$ 47.8	$ 40.4

Goodwill and Intangible Asset29

Goodwill and Intangible Assets (Major Asset Classes) (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015	Jan. 31, 2016
Goodwill and Intangible Assets Disclosure [Line Items]
Original Cost		$ 448.5
Accumulated Amortization		128.2
Net Book Value		320.3		$ 262.7
Goodwill impairment charge	$ 310.4		$ 310.4
Indefinite Life Trade Name [Member]
Goodwill and Intangible Assets Disclosure [Line Items]
Net Book Value		17.2
Customer contracts and relationships
Goodwill and Intangible Assets Disclosure [Line Items]
Original Cost		422.5
Accumulated Amortization		124.6
Net Book Value		$ 297.9
Customer contracts and relationships | Minimum
Goodwill and Intangible Assets Disclosure [Line Items]
Useful Life (years)		8 years
Customer contracts and relationships | Maximum
Goodwill and Intangible Assets Disclosure [Line Items]
Useful Life (years)		30 years
Covenants not to compete
Goodwill and Intangible Assets Disclosure [Line Items]
Original Cost		$ 5.5
Accumulated Amortization		3.4
Net Book Value		$ 2.1
Covenants not to compete | Minimum
Goodwill and Intangible Assets Disclosure [Line Items]
Useful Life (years)		4 years
Covenants not to compete | Maximum
Goodwill and Intangible Assets Disclosure [Line Items]
Useful Life (years)		5 years
Developed Technologies
Goodwill and Intangible Assets Disclosure [Line Items]
Original Cost		$ 3.3
Accumulated Amortization		0.2
Net Book Value		$ 3.1
Developed Technologies | Minimum
Goodwill and Intangible Assets Disclosure [Line Items]
Useful Life (years)		15 years
Developed Technologies | Maximum
Goodwill and Intangible Assets Disclosure [Line Items]
Useful Life (years)		15 years

Goodwill and Intangilble Assets

Goodwill and Intangilble Assets (Goodwill and Amortization Expenses) (Details) - USD ($) $ in Millions	3 Months Ended		5 Months Ended	9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2016	Oct. 31, 2015	Jan. 31, 2016	Dec. 31, 2015
Amortization expense of intangible assets	$ 4.8	$ 5.8		$ 14.7	$ 19.1
Expected amortization expenses in year one	20		$ 20	20
Expected amortization expenses in year two	20		20	20
Expected amortization expenses in year three	20		20	20
Expected amortization expenses in year four	20		20	20
Expected amortization expenses in year five	20		20	20
Goodwill	993.3		993.3	993.3		$ 954.9
Revenues	389	365		1,148.6	1,209.2
Herndon
Goodwill	44.7		44.7	44.7
Revenues	389		56.7
Aerospace Solutions Group
Goodwill increase during period				38.4
Fair value of reporting unit in excess of carrying value (in percentage)							16.00%
Goodwill	993.3		$ 993.3	993.3		$ 952.4
Revenues	$ 348.8	$ 306.7		$ 1,039	$ 1,006.4

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Millions	Dec. 17, 2014	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Transitional period	24 months
Former parent
Cost incurred pursuant to arrangements		$ 2.1	$ 2.7	$ 7.1	$ 8.8
Sales		5.4	$ 5.1	18.6	$ 14.4
Former parent | Tax Indemnification
Due to related party		4.7		4.7
Former parent | Other Current Liabilities | Tax Indemnification
Due to related party		0.1		0.1
Former parent | Other Long-term Liabilities | Tax Indemnification
Due to related party		$ 4.6		$ 4.6

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Millions	Oct. 31, 2016	Jan. 31, 2016
Accrued Liabilities
Accrued salaries, vacation and related benefits	$ 30.1	$ 28.7
Accrued commissions	7.5	6.2
Income taxes payable	4.3	11.4
Accrued interest	29.4	11.7
Other accrued liabilities	38	57.3
Total accrued liabilities	$ 109.3	$ 115.3

Long-Term Debt (Details)

Long-Term Debt (Details) $ in Millions	9 Months Ended
	Oct. 31, 2016USD ($)item	Jan. 31, 2016USD ($)	Oct. 31, 2015USD ($)
Debt Instrument [Line Items]
Long-term debt	$ 1,181.3	$ 1,179.5
Revolving Credit Facility
Debt Instrument [Line Items]
Amount outstanding	0
Revolving credit facility	$ 750
Number of maintenance financial covenants | item	0
Outstanding letter of credit amount	$ 4.8		$ 3.2
Senior Unsecured Notes 5.875 Percent Due 2022
Debt Instrument [Line Items]
Senior unsecured notes	$ 1,200
Debt, interest rate	5.875%
Long-term debt	$ 1,181.3

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	9 Months Ended
	Oct. 31, 2016	Jan. 31, 2016
Senior Unsecured Notes 5.875 Percent Due 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt, interest rate	5.875%
Revolving Credit Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount outstanding	$ 0
Fair Value, Inputs, Level 2 | Senior Unsecured Notes 5.875 Percent Due 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior unsecured notes, fair value	$ 1,218.2	$ 1,136.4

Commitments, Contingencies an35

Commitments, Contingencies and Off-Balance Sheet Arrangements (Details) $ in Millions	9 Months Ended
	Oct. 31, 2016USD ($)
Commitments, Contingencies and Off-Balance Sheet Arrangements
Future minimum lease payments	$ 90.9
Initial term of employment agreements	3 years
Number of additional years for which employment agreements may renew.	1 year

Accounting for Stock-Based Co36

Accounting for Stock-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Accounting for Stock-Based Compensation
Share based compensation	$ 4.8	$ 3.5	$ 14.3	$ 10.6
Unrecognized compensation cost	$ 32.5		$ 32.5
Qualified employees purchase of stock at a price equal to percentage of closing price			85.00%

Segment Reporting (Revenues and

Segment Reporting (Revenues and Operating Earnings (Losses) by Reportable Segment) (Details) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 31, 2016USD ($)	Oct. 31, 2015USD ($)	Oct. 31, 2016USD ($)segment	Oct. 31, 2015USD ($)
Reportable Segments [Abstract]
Number of reportable segments | segment			2
Revenues
Revenues	$ 389	$ 365	$ 1,148.6	$ 1,209.2
Operating earnings (loss)
Operating earnings	38.6	(619.3)	102.7	(539)
Interest expense	18.8	19	56.8	58.2
Earnings (loss) before income taxes	19.8	(638.3)	45.9	(597.2)
Aerospace Solutions Group
Revenues
Revenues	348.8	306.7	1,039	1,006.4
Operating earnings (loss)
Operating earnings	56.5	47.8	174.9	167.7
Energy Services Group
Revenues
Revenues	40.2	58.3	109.6	202.8
Operating earnings (loss)
Operating earnings	$ (17.9)	$ (667.1)	$ (72.2)	$ (706.7)

Segment Reporting (Capital Expe

Segment Reporting (Capital Expenditures by Reportable Segment) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Property, Plant and Equipment [Line Items]
Capital expenditures	$ 8.6	$ 36.3	$ 33.9	$ 106.4
Aerospace Solutions Group
Property, Plant and Equipment [Line Items]
Capital expenditures	4.1	11.9	10.4	23.4
Energy Services Group
Property, Plant and Equipment [Line Items]
Capital expenditures	$ 4.5	$ 24.4	$ 23.5	$ 83

Segment Reporting (Goodwill by

Segment Reporting (Goodwill by Reportable Segment) (Details) - USD ($) $ in Millions	Oct. 31, 2016	Jan. 31, 2016
Goodwill [Line Items]
Goodwill	$ 993.3	$ 954.9
Aerospace Solutions Group
Goodwill [Line Items]
Goodwill	$ 993.3	952.4
Energy Services Group
Goodwill [Line Items]
Goodwill		$ 2.5

Segment Reporting (Total Assets

Segment Reporting (Total Assets by Reportable Segment) (Details) - USD ($) $ in Millions	Oct. 31, 2016	Jan. 31, 2016
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 3,728.6	$ 3,691
Aerospace Solutions Group
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	3,496	3,422.8
Energy Services Group
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 232.6	$ 268.2

Segment Reporting (Corporate As

Segment Reporting (Corporate Assets by Reportable Segment) (Details) - USD ($) $ in Millions	Oct. 31, 2016	Jan. 31, 2016
Segment Reporting Information [Line Items]
Total assets	$ 3,728.6	$ 3,691
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Total assets	$ 411.9	$ 559.5

Net Earnings Per Common Share42

Net Earnings Per Common Share (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Net Earnings Per Common Share
Anti-dilutive securities excluded from determination of diluted earnings per common share	0.4	0	0.3	0

Net Earnings Per Common Share43

Net Earnings Per Common Share (Computations of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Net Earnings Per Common Share
Net earnings (loss)	$ 19.8	$ (400.8)	$ 35.6	$ (375.5)
Basic weighted average common shares (in millions)	51.8	52.2	51.9	52.2
Effect of dilutive securities - dilutive securities	0.4		0.3
Diluted weighted average common shares (in millions)	52.2	52.2	52.2	52.2
Basic net earnings (loss) per share	$ 0.38	$ (7.68)	$ 0.69	$ (7.19)
Diluted net earnings (loss) per share	$ 0.38	$ (7.68)	$ 0.68	$ (7.19)

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended		12 Months Ended
	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015	Jan. 31, 2017
Income taxes
Net unrecognized tax benefits that would affect effective tax rate, if recognized	$ 10.3	$ 12.3	$ 10.3
Liability for unrecognized tax benefits for interest and penalties	1.1	1.7	1.1
Income tax expense (benefit)	$ (237.5)	$ 10.3	$ (221.7)
Forecast
Income taxes
Effective tax rate (as a percent)				27.50%