Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jan. 31, 2016 | Feb. 29, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jan. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | THO | |
Entity Registrant Name | THOR INDUSTRIES INC | |
Entity Central Index Key | 730,263 | |
Current Fiscal Year End Date | --07-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 52,482,615 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2016 | Jul. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 185,371 | $ 183,478 |
Accounts receivable, trade, less allowance for doubtful accounts of $780 and $1,283, respectively | 309,298 | 244,052 |
Accounts receivable, other | 22,743 | 25,642 |
Inventories, net | 274,545 | 246,115 |
Notes receivable | 8,367 | |
Prepaid income taxes, expenses and other | 17,092 | 8,323 |
Deferred income taxes, net | 59,056 | 59,864 |
Total current assets | 868,105 | 775,841 |
Property, plant and equipment, net | 246,577 | 234,045 |
Other assets: | ||
Goodwill | 303,509 | 312,622 |
Amortizable intangible assets, net | 157,136 | 169,018 |
Other | 11,036 | 11,722 |
Total other assets | 471,681 | 493,362 |
TOTAL ASSETS | 1,586,363 | 1,503,248 |
Current liabilities: | ||
Accounts payable | 180,554 | 162,587 |
Accrued liabilities: | ||
Compensation and related items | 53,142 | 51,984 |
Product warranties | 106,260 | 108,206 |
Income and other taxes | 7,730 | 11,000 |
Promotions and rebates | 21,244 | 19,817 |
Product, property and related liabilities | 11,330 | 10,892 |
Other | 16,943 | 13,849 |
Total current liabilities | 397,203 | 378,335 |
Unrecognized tax benefits | 12,478 | 11,945 |
Deferred income taxes, net | 18,494 | 20,563 |
Other liabilities | 26,794 | 27,218 |
Total long-term liabilities | $ 57,766 | $ 59,726 |
Contingent liabilities and commitments | ||
Stockholders' equity: | ||
Preferred stock - authorized 1,000,000 shares; none outstanding | ||
Common stock - par value of $.10 per share; authorized 250,000,000 shares; issued 62,439,795 and 62,306,037 shares, respectively | $ 6,244 | $ 6,231 |
Additional paid-in capital | 220,537 | 215,539 |
Retained earnings | 1,236,112 | 1,172,432 |
Less treasury shares of 9,957,180 and 9,911,474, respectively, at cost | (331,499) | (329,015) |
Total stockholders' equity | 1,131,394 | 1,065,187 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,586,363 | $ 1,503,248 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2016 | Jul. 31, 2015 |
Allowance for doubtful accounts | $ 780 | $ 1,283 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 62,439,795 | 62,306,037 |
Treasury, shares | 9,957,180 | 9,911,474 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Net sales | $ 975,071 | $ 852,416 | $ 2,005,422 | $ 1,774,408 |
Cost of products sold | 826,249 | 750,416 | 1,704,384 | 1,554,743 |
Gross profit | 148,822 | 102,000 | 301,038 | 219,665 |
Selling, general and administrative expenses | 67,366 | 54,302 | 135,820 | 112,291 |
Amortization of intangible assets | 5,854 | 3,967 | 11,882 | 7,656 |
Impairment charges | 9,113 | 9,113 | ||
Interest income | 105 | 340 | 243 | 707 |
Interest expense | 168 | 1 | 342 | 1 |
Other income (expense), net | (538) | 67 | (545) | 419 |
Income from continuing operations before income taxes | 65,888 | 44,137 | 143,579 | 100,843 |
Income taxes | 20,641 | 13,870 | 47,596 | 31,375 |
Net income from continuing operations | 45,247 | 30,267 | 95,983 | 69,468 |
Loss from discontinued operations, net of income taxes | (579) | (1,619) | (818) | (1,895) |
Net Income and comprehensive income | $ 44,668 | $ 28,648 | $ 95,165 | $ 67,573 |
Weighted-average common shares outstanding: | ||||
Basic | 52,474,801 | 53,377,440 | 52,442,373 | 53,355,757 |
Diluted | 52,561,122 | 53,458,531 | 52,553,341 | 53,444,730 |
Earnings per common share from continuing operations: | ||||
Basic | $ 0.86 | $ 0.57 | $ 1.83 | $ 1.30 |
Diluted | 0.86 | 0.57 | 1.83 | 1.30 |
Loss per common share from discontinued operations: | ||||
Basic | (0.01) | (0.03) | (0.02) | (0.03) |
Diluted | (0.01) | (0.03) | (0.02) | (0.04) |
Earnings per common share: | ||||
Basic | 0.85 | 0.54 | 1.81 | 1.27 |
Diluted | 0.85 | 0.54 | 1.81 | 1.26 |
Regular dividends declared and paid per common share | $ 0.30 | $ 0.27 | $ 0.60 | $ 0.54 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 95,165 | $ 67,573 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 10,958 | 6,788 |
Amortization of intangible assets | 11,882 | 7,656 |
Impairment charges | 9,113 | |
Deferred income tax provision | (1,261) | (1,679) |
(Gain) loss on disposition of property, plant and equipment | 47 | (78) |
Stock-based compensation expense | 4,679 | 3,327 |
Excess tax benefits from stock-based awards | (291) | (114) |
Changes in assets and liabilities (excluding acquisitions): | ||
Accounts receivable | (62,347) | (17) |
Inventories | (28,430) | (15,477) |
Prepaid income taxes, expenses and other | (8,083) | (10,391) |
Accounts payable | 18,922 | 10,120 |
Accrued liabilities | 1,231 | (12,139) |
Other liabilities | 281 | (2,407) |
Net cash provided by operating activities | 51,866 | 53,162 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (24,539) | (16,161) |
Proceeds from dispositions of property, plant and equipment | 47 | 41 |
Proceeds from notes receivable | 8,367 | 1,400 |
Acquisitions, net of cash acquired | (49,265) | |
Other | 15 | |
Net cash used in investing activities | (16,125) | (63,970) |
Cash flows from financing activities: | ||
Regular cash dividends paid | (31,485) | (28,824) |
Principal payments on capital lease obligations | (170) | |
Excess tax benefits from stock-based awards | 291 | 114 |
Payments related to vesting of stock-based awards | (2,484) | (1,562) |
Net cash used in financing activities | (33,848) | (30,272) |
Net increase (decrease) in cash and cash equivalents | 1,893 | (41,080) |
Cash and cash equivalents, beginning of period | 183,478 | 289,336 |
Cash and cash equivalents, end of period | 185,371 | 248,256 |
Supplemental cash flow information: | ||
Income taxes paid | 63,301 | 59,547 |
Interest paid | 342 | 1 |
Non-cash transactions: | ||
Capital expenditures in accounts payable | $ 585 | $ 220 |
Nature of Operations and Accoun
Nature of Operations and Accounting Policies | 6 Months Ended |
Jan. 31, 2016 | |
Nature of Operations and Accounting Policies | 1. Nature of Operations and Accounting Policies Nature of Operations Thor Industries, Inc. was founded in 1980 and, through its subsidiaries (collectively, the “Company”), manufactures a wide range of recreational vehicles (“RVs”) in the United States at various manufacturing facilities located primarily in Indiana and Ohio. These products are sold to independent dealers primarily throughout the United States and Canada. Unless the context otherwise requires or indicates, all references to “Thor”, the “Company”, “we”, “our” and “us” refer to Thor Industries, Inc. and its subsidiaries. The Company’s core business activities are comprised of two distinct operations, which include the design, manufacture and sale of towable recreational vehicles and motorized recreational vehicles. Accordingly, the Company has presented segment financial information for these two segments in Note 4 to the Condensed Consolidated Financial Statements. See Note 3, “Discontinued Operations,” in the Notes to the Condensed Consolidated Financial Statements for a description of the Company’s bus operations that were sold during the quarter ended October 31, 2013. The accompanying financial statements (including footnote disclosures unless otherwise indicated) reflect these bus operations as discontinued operations apart from the Company’s continuing operations. The July 31, 2015 amounts are derived from the annual audited financial statements. The interim financial statements are unaudited. In the opinion of management, all adjustments (which consist of normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented have been made. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2015. Due to seasonality within the recreational vehicle industry, annualizing the results of operations for the six months ended January 31, 2016 would not necessarily be indicative of the results for a full fiscal year. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Key estimates include reserves for inventory, incurred but not reported medical claims, warranty claims, recall liabilities, workers’ compensation claims, vehicle repurchases, uncertain tax positions, product and non-product litigation and assumptions made for both intangible assets acquired and asset impairment assessments. The Company bases its estimates on historical experience and on various other assumptions believed to be reasonable under the circumstances. The Company believes that such estimates are made using consistent and appropriate methods. Actual results could differ from these estimates. Accounting Pronouncements In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-08 (“ASU 2014-08”) “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. Under the new guidance, the disposal of a component or group of components of a business will be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The Company adopted ASU 2014-08 as of August 1, 2015. The impact to the Company will depend on future disposals. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 “Revenue from Contracts with Customers (Topic 606),” which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This standard will supersede most current revenue recognition guidance. Under the new standard, entities are required to identify the contract with a customer, identify the separate performance obligations in the contract, determine the transaction price, allocate the transaction price to the separate performance obligations in the contract and recognize the appropriate amount of revenue when (or as) the entity satisfies each performance obligation. The standard is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2017. The standard is effective for the Company in its fiscal year 2019 beginning on August 1, 2018. Entities have the option of using either retrospective transition or a modified approach in applying the new standard. The Company is currently evaluating the approach it will use to apply the new standard and the impact that the adoption of the new standard will have on the Company’s consolidated financial statements. In July 2015, the FASB issued Accounting Standards Update No. 2015-11 (“ASU 2015-11”) “Inventory (Topic 330): Simplifying the Measurement of Inventory.” ASU 2015-11 requires inventory measured using any method other than last-in, first-out (“LIFO”) or the retail inventory method to be subsequently measured at the lower of cost or net realizable value, rather than at the lower of cost or market. Under this ASU, subsequent measurement of inventory using the LIFO and retail inventory method is unchanged. ASU 2015-11 is effective prospectively for fiscal years, and for interim periods within those years, beginning after December 15, 2016. The standard is effective for the Company in its fiscal year 2018 beginning on August 1, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. In September 2015, the FASB issued Accounting Standards Update No. 2015-16 (“ASU 2015-16”) “Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments,” to simplify the accounting for measurement-period adjustments in a business combination. Under the new standard, an acquirer must recognize adjustments to provisional amounts in a business combination in the reporting period in which the adjustment amounts are determined, rather than retrospectively adjusting the provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill as under current guidance. ASU 2015-16 is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2015. This standard is effective for the Company in its fiscal year 2017 beginning on August 1, 2016. This new standard will be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. The Company is currently evaluating the impact of this ASU on its consolidated financial statements, which will be dependent on future acquisitions. In November 2015, the FASB issued Accounting Standards Update No. 2015-17 (“ASU 2015-17”) “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” to simplify the presentation of deferred income taxes. Under the new standard, both deferred tax liabilities and assets are required to be classified as noncurrent in a classified balance sheet. ASU 2015-17 is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2016. This standard is effective for the Company in its fiscal year 2018 beginning on August 1, 2017. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. |
Acquisitions
Acquisitions | 6 Months Ended |
Jan. 31, 2016 | |
Acquisitions | 2. Acquisitions Postle On May 1, 2015, the Company closed on a Membership Interest Purchase Agreement with Postle Aluminum Company, LLC for the acquisition of all the outstanding membership units of Postle Operating, LLC (“Postle”), a manufacturer of aluminum extrusion and specialized component products sold to RV and other manufacturers, for total cash consideration of $144,048, net of cash acquired. The net cash consideration of $144,048 was funded entirely from the Company’s cash on hand, based on a final determination of the actual net assets as of the May 1, 2015 closing date and paid during the fourth quarter of fiscal 2015. Postle operates as an independent operation in the same manner as the Company’s other subsidiaries. The operations of Postle are reported in “Other,” which is a non-reportable segment. The following table summarizes the fair values assigned to the Postle net assets acquired, which are based on internal and independent external valuations: Cash $ 2,963 Other current assets 54,780 Property, plant and equipment 32,251 Customer relationships 38,800 Trademarks 6,000 Backlog 300 Goodwill 42,871 Current liabilities (23,729 ) Capital lease obligations (7,225 ) Total fair value of net assets acquired 147,011 Less cash acquired (2,963 ) Total cash consideration for acquisition, less cash acquired $ 144,048 On the acquisition date, amortizable intangible assets had a weighted-average useful life of 12.3 years. The customer relationships were valued based on the Discounted Cash Flow Method and will be amortized on an accelerated basis over 12 years. The trademarks were valued on the Relief from Royalty Method and will be amortized on a straight-line basis over 15 years. Backlog was valued based on the Discounted Cash Flow Method and was amortized on a straight-line basis over 6 weeks. Goodwill is deductible for tax purposes. Cruiser RV, LLC and DRV, LLC On January 5, 2015, the Company closed on a Stock Purchase Agreement (“CRV/DRV SPA”) for the acquisition of all the outstanding membership units of towable recreational vehicle manufacturer Cruiser RV, LLC (“CRV”) and luxury fifth wheel towable recreational vehicle manufacturer DRV, LLC (“DRV”) through its Heartland Recreational Vehicles, LLC subsidiary (“Heartland”). The Heartland operations are reported within the towable recreational vehicle reportable segment. In accordance with the CRV/DRV SPA, the closing was deemed effective as of January 1, 2015. As contemplated in the CRV/DRV SPA, the Company also acquired, in a series of integrated transactions, certain real estate used in the ongoing operations of CRV and DRV. The initial cash paid for this acquisition was $47,412, subject to adjustment, and was funded entirely from the Company’s cash on hand. This payment of $47,412, less the $1,062 of cash on hand at the acquisition date, resulted in initial net cash consideration of $46,350. Adjustments to increase the net cash consideration by $1,173 were identified, based on the preliminary determination of the actual net assets as of the close of business on December 31, 2014 and the finalization of certain tax matters, and paid during the fourth quarter of fiscal 2015. The $1,173 included reimbursing the seller for $1,062 of cash on hand at the acquisition date and resulted in total net cash consideration of $47,523. The Company purchased CRV and DRV to expand its towable recreational vehicle market share and to supplement and expand its existing lightweight travel trailer and luxury fifth wheel product offerings and dealer base. The following table summarizes the fair values assigned to the CRV and DRV net assets acquired, which are based on internal and independent external valuations. Cash $ 1,062 Other current assets 22,175 Property, plant and equipment 4,533 Dealer network 14,300 Trademarks 5,400 Backlog 450 Goodwill 13,172 Current liabilities (12,507 ) Total fair value of net assets acquired 48,585 Less cash acquired (1,062 ) Total cash consideration for acquisition, less cash acquired $ 47,523 On the acquisition date, amortizable intangible assets had a weighted-average useful life of 13.9 years. The dealer network was valued based on the Discounted Cash Flow Method and will be amortized on an accelerated basis over 12 years. The trademarks were valued on the Relief from Royalty Method and will be amortized on a straight-line basis over 20 years. Backlog was valued based on the Discounted Cash Flow Method and was amortized on a straight-line basis over 6 weeks. Goodwill is deductible for tax purposes. The following unaudited pro forma information represents the Company’s results of operations as if the fiscal 2015 acquisitions of both Postle and CRV/DRV had occurred at the beginning of fiscal 2014. These performance results may not be indicative of the actual results that would have occurred under the ownership and management of the Company. Three Months Ended January 31, 2015 Six Months Ended January 31, 2015 Net sales $ 912,924 $ 1,914,151 Net income $ 31,318 $ 75,087 Basic earnings per common share $ 0.59 $ 1.41 Diluted earnings per common share $ 0.59 $ 1.40 |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jan. 31, 2016 | |
Discontinued Operations | 3. Discontinued Operations On July 31, 2013, the Company entered into a Stock Purchase Agreement (“ASV SPA”) to sell its bus business to Allied Specialty Vehicles, Inc. (“ASV”) for cash of $100,000, subject to closing adjustments for changes in the net assets sold from April 30, 2013, to the closing date. The Company’s bus business manufactured and sold transit and shuttle buses. The sale was completed as of October 20, 2013, and the Company received the $100,000 on October 21, 2013, and an additional $5,043 in February 2014, representing the increase in bus net assets since April 30, 2013. The results of operations for the bus business have been reported as discontinued operations in the Condensed Consolidated Statements of Income and Comprehensive Income for all periods presented. The following table summarizes the results of discontinued operations: Three Months Ended January 31, Six Months Ended January 31, 2016 2015 2016 2015 Operating loss of discontinued operations before income taxes $ (918 ) $ (2,564 ) $ (1,296 ) $ (2,999 ) Income tax benefit (339 ) (945 ) (478 ) (1,104 ) Loss from discontinued operations, net of taxes $ (579 ) $ (1,619 ) $ (818 ) $ (1,895 ) The operating loss of discontinued operations before income taxes for the three and six months ended January 31, 2016 and January 31, 2015 reflects expenses incurred directly related to the former bus operations, including ongoing costs related to liabilities retained by the Company under the ASV SPA for bus product liability and worker’s compensation claims occurring prior to the closing date of the sale. As a result of the sale of the bus business, and in accordance with the ASV SPA, the Company is no longer the primary obligor to the taxing authorities for bus operations in certain states. Under the terms of the sale, the Company has agreed to indemnify ASV for any claims made by the taxing authorities after the date of sale for uncertain tax positions, but does not expect future losses under this guarantee to be material. |
Business Segments
Business Segments | 6 Months Ended |
Jan. 31, 2016 | |
Business Segments | 4. Business Segments The Company has two reportable segments: (1) towable recreational vehicles and (2) motorized recreational vehicles. The towable recreational vehicle reportable segment consists of the following operating segments that have been aggregated: Airstream (towable), Bison, CrossRoads, Heartland (including its wholly-owned subsidiaries CRV and DRV), Keystone, KZ and Livin’ Lite. The motorized recreational vehicle reportable segment consists of the following operating segments that have been aggregated: Airstream (motorized) and Thor Motor Coach. The operations of the Company’s Postle subsidiary, which was acquired May 1, 2015, are included in “Other,” which is a non-reportable segment. Net sales included in Other mainly relate to the sale of aluminum extrusions and specialized component products. Intercompany eliminations adjust for Postle sales to the Company’s towable and motorized segments, which are transacted at established arm’s length transfer prices generally consistent with the selling prices of extrusion components to third party customers. All manufacturing is conducted in the United States. Total assets include those assets used in the operation of each reportable and non-reportable segment, and the Corporate assets consist primarily of cash and cash equivalents and deferred income tax assets. Three Months Ended January 31, Six Months Ended January 31, Net sales: 2016 2015 2016 2015 Recreational vehicles: Towables $ 698,318 $ 675,090 $ 1,442,997 $ 1,374,868 Motorized 242,867 177,326 493,966 399,540 Total recreational vehicles 941,185 852,416 1,936,963 1,774,408 Other 48,011 — 98,393 — Intercompany eliminations (14,125 ) — (29,934 ) — Total $ 975,071 $ 852,416 $ 2,005,422 $ 1,774,408 Three Months Ended January 31, Six Months Ended January 31, 2016 2015 2016 2015 Income (loss) from continuing operations before income taxes: Recreational vehicles: Towables $ 53,069 $ 40,320 $ 116,293 $ 89,619 Motorized 20,519 11,867 42,172 26,968 Total recreational vehicles 73,588 52,187 158,465 116,587 Other, net 3,010 — 5,666 — Corporate (10,710 ) (8,050 ) (20,552 ) (15,744 ) Total $ 65,888 $ 44,137 $ 143,579 $ 100,843 January 31, 2016 July 31, 2015 Total assets: Recreational vehicles: Towables $ 928,841 $ 907,175 Motorized 220,368 162,940 Total recreational vehicles 1,149,209 1,070,115 Other, net 156,103 161,075 Corporate 281,051 272,058 Total $ 1,586,363 $ 1,503,248 |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jan. 31, 2016 | |
Earnings Per Common Share | 5. Earnings Per Common Share Three Months Ended January 31, Six Months Ended January 31, 2016 2015 2016 2015 Weighted-average common shares outstanding for basic earnings per share 52,474,801 53,377,440 52,442,373 53,355,757 Unvested restricted stock and restricted stock units 86,321 81,091 110,968 88,973 Weighted-average common shares outstanding for diluted earnings per share 52,561,122 53,458,531 52,553,341 53,444,730 At January 31, 2016 and 2015, the Company had 30,716 and 14,048, respectively, of unvested restricted stock and restricted stock units outstanding which were excluded from this calculation as their effect would be antidilutive. |
Inventories
Inventories | 6 Months Ended |
Jan. 31, 2016 | |
Inventories | 6. Inventories Major classifications of inventories are as follows: January 31, 2016 July 31, 2015 Finished goods – RV $ 37,764 $ 35,693 Finished goods – other 17,542 18,045 Work in process 59,506 51,556 Raw materials 139,876 133,482 Chassis 50,597 37,739 Total 305,285 276,515 Excess of FIFO costs over LIFO costs (30,740 ) (30,400 ) Total inventories, net $ 274,545 $ 246,115 Of the $305,285 and $276,515 of inventories at January 31, 2016 and July 31, 2015, all but $82,324 and $72,498, respectively, at certain subsidiaries were valued on a last-in, first-out basis. The $82,324 and $72,498 of inventories were valued on a first-in, first-out basis. |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jan. 31, 2016 | |
Property, Plant and Equipment | 7. Property, Plant and Equipment Property, plant and equipment is stated at cost, net of accumulated depreciation, and consists of the following: January 31, 2016 July 31, 2015 Land $ 29,208 $ 27,447 Buildings and improvements 228,622 214,462 Machinery and equipment 112,065 106,959 Total cost 369,895 348,868 Less accumulated depreciation (123,318 ) (114,823 ) Property, plant and equipment, net $ 246,577 $ 234,045 Property, plant and equipment at both January 31, 2016 and July 31, 2015 includes buildings and improvements under capital leases of $6,527, and includes related amortization included in accumulated depreciation of $408 and $136 at January 31, 2016 and July 31, 2015, respectively. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 6 Months Ended |
Jan. 31, 2016 | |
Intangible Assets and Goodwill | 8. Intangible Assets and Goodwill The components of amortizable intangible assets are as follows: Weighted-Average Remaining Life in Years at January 31, 2016 January 31, 2016 July 31, 2015 Cost Accumulated Amortization Cost Accumulated Amortization Dealer networks/customer relationships 9 $ 143,860 $ 46,300 $ 143,860 $ 37,194 Trademarks 18 55,282 8,880 55,282 7,608 Design technology and other intangibles 9 22,400 9,518 22,400 8,168 Non-compete agreements 3 450 158 4,710 4,264 Total amortizable intangible assets $ 221,992 $ 64,856 $ 226,252 $ 57,234 The dealer networks and customer relationships are being amortized on an accelerated basis. Trademarks, design technology and other intangibles and non-compete agreements are amortized on a straight-line basis. Estimated annual amortization expense is as follows: For the fiscal year ending July 31, 2016 $ 23,440 For the fiscal year ending July 31, 2017 20,671 For the fiscal year ending July 31, 2018 18,986 For the fiscal year ending July 31, 2019 16,975 For the fiscal year ending July 31, 2020 15,256 For the fiscal year ending July 31, 2021 and thereafter 73,690 $ 169,018 Goodwill is not subject to amortization, but instead is reviewed for impairment by applying a fair-value based test to the Company’s reporting units on an annual basis as of April 30, or more frequently if events or circumstances indicate a potential impairment. The Company’s reporting units are the same as its operating segments, which are identified in Note 4 to the Condensed Consolidated Financial Statements. Fair values are determined by a discounted cash flow model. These estimates are subject to significant management judgment, including the determination of many factors such as sales growth rates, gross margin patterns, cost growth rates, terminal value assumptions and discount rates, and therefore largely represent Level 3 inputs as defined by ASC 820. Changes in these estimates can have a significant impact on the determination of cash flows and fair value and could potentially result in future material impairments. Of the recorded goodwill of $303,509 at January 31, 2016 and $312,622 at July 31, 2015, $260,638 and $269,751, respectively, resides in the towable recreational vehicle segment and $42,871 resides in the other non-reportable segment at both January 31, 2016 and July 31, 2015. Based on recent and future forecasted operating results, the Company determined that sufficient evidence existed as of the second quarter of fiscal 2016 to warrant an interim goodwill impairment analysis for one of its reporting units. As a result of this analysis, the Company recorded a pre-tax, non-cash goodwill impairment charge of $9,113 related to this reporting unit within the towables reportable segment. For the purpose of this goodwill test, the fair value of the reporting unit was determined by employing a discounted cash flow model, which utilized Level 3 inputs as defined by ASC 820. The $9,113 charge represents the full impairment of the goodwill related to this reporting unit. |
Concentration of Risk
Concentration of Risk | 6 Months Ended |
Jan. 31, 2016 | |
Concentration of Risk | 9. Concentration of Risk One dealer, FreedomRoads, LLC, accounted for 21% and 14% of the Company’s continuing consolidated net sales for the six months ended January 31, 2016 and the six months ended January 31, 2015, respectively. This dealer also accounted for 24% of the Company’s consolidated trade accounts receivable at January 31, 2016 and 22% at July 31, 2015. The loss of this dealer could have a significant effect on the Company’s business. |
Investments and Fair Value Meas
Investments and Fair Value Measurements | 6 Months Ended |
Jan. 31, 2016 | |
Investments and Fair Value Measurements | 10. Investments and Fair Value Measurements The Company carries at fair value its investments in securities (primarily mutual funds) held for the benefit of certain employees of the Company as part of a deferred compensation plan. These investments are measured with Level 1 inputs as prescribed by ASC 820, which include quoted prices in active markets for identical assets or liabilities and are the most observable inputs. Deferred compensation plan asset balances of $10,460 and $10,803 were recorded as of January 31, 2016 and July 31, 2015, respectively, as components of other long-term assets in the Condensed Consolidated Balance Sheets. An equal and offsetting liability is also recorded in regards to the deferred compensation plan as a component of other long-term liabilities in the Condensed Consolidated Balance Sheets. Changes in the fair value of the plan assets and the related liability are reflected in other income (expense), net and selling, general and administrative expenses, respectively, in the Condensed Consolidated Statements of Income and Comprehensive Income. |
Product Warranties
Product Warranties | 6 Months Ended |
Jan. 31, 2016 | |
Product Warranties | 11. Product Warranties The Company generally provides retail customers of its products with a one-year warranty covering defects in material or workmanship, with longer warranties on certain structural components. The Company records a liability based on its best estimate of the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. Factors used in estimating the warranty liability include a history of units sold, existing dealer inventory, average cost incurred and a profile of the distribution of warranty expenditures over the warranty period. Management believes that the warranty reserves are adequate, however, actual claims incurred could differ from estimates, requiring adjustments to the reserves. Warranty reserves are reviewed and adjusted as necessary on at least a quarterly basis. Changes in our product warranty reserves are as follows: Three Months Ended January 31, Six Months Ended January 31, 2016 2015 2016 2015 Beginning balance $ 107,847 $ 97,640 $ 108,206 $ 94,938 Provision 25,283 26,769 51,516 56,230 Payments (26,870 ) (27,025 ) (53,462 ) (53,784 ) Acquisitions — 4,664 — 4,664 Ending balance $ 106,260 $ 102,048 $ 106,260 $ 102,048 |
Provision for Income Taxes
Provision for Income Taxes | 6 Months Ended |
Jan. 31, 2016 | |
Provision for Income Taxes | 12. Provision for Income Taxes The overall effective income tax rate for the three months ended January 31, 2016 was 31.3% compared with 31.4% for the three months ended January 31, 2015. The effective income tax rates for the fiscal 2015 three-month period and fiscal 2016 three-month period were both impacted, to a similar extent, by the retroactive reinstatement of the federal research and development credit and other credits that were enacted on December 19, 2014 and December 18, 2015 respectively. The overall effective income tax rate for the six months ended January 31, 2016 was 33.1% compared with 31.1% for the six months ended January 31, 2015. The primary reason for the increase in the effective income tax rate is due to uncertain tax benefits that settled favorably in the six months ended January 31, 2015 while no such settlements occurred in the six months ended January 31, 2016. The effective income tax rates for the fiscal 2015 and fiscal 2016 periods were both impacted, to a similar extent, by the retroactive reinstatement of the federal research and development credit and other credits that were enacted on December 19, 2014 and December 18, 2015 respectively. It is the Company’s policy to recognize interest and penalties accrued relative to unrecognized tax benefits in income tax expense. For the six months ended January 31, 2016, there were no material changes to the balance of unrecognized tax benefits and the Company accrued $282 in interest and penalties related to the remaining uncertain tax positions recorded at July 31, 2015. For the three months ended January 31, 2016, the Company accrued $141 in interest and penalties related to the remaining uncertain tax positions recorded at July 31, 2015. For the six months ended January 31, 2015, the Company released $4,506 of gross uncertain tax positions and related interest and penalties recorded at July 31, 2014 related to the effective settlement of various uncertain tax positions, which resulted in a net income tax benefit of $2,387. The Company accrued $293 in interest and penalties related to the remaining uncertain tax positions recorded at July 31, 2014 and recorded $90 of additional uncertain tax benefit reserve related to previous tax periods. For the three months ended January 31, 2015, the Company recorded $90 of additional uncertain tax benefit reserve related to previous tax periods and accrued $147 in interest and penalties. The Company anticipates a decrease of approximately $5,340 in unrecognized tax benefits, and $1,182 in accrued interest and penalties related to unrecognized tax benefits recorded as of January 31, 2016, within the next 12 months from expected settlements or payments of uncertain tax positions and lapses of the applicable statutes of limitations. Actual results may differ from these estimates. Generally, fiscal years 2012, 2013 and 2014 remain open for federal income tax purposes and fiscal years 2011, 2012, 2013 and 2014 remain open for state and Canadian income tax purposes. The Company and its subsidiaries file a consolidated U.S. federal income tax return and multiple state income tax returns. The Company is currently disputing the audit results by the state of Indiana for tax years ended July 31, 2008, 2009 and 2010. The Company believes it has adequately reserved for its exposure to additional payments for uncertain tax positions related to its Indiana income tax returns in its liability for unrecognized tax benefits. |
Contingent Liabilities, Commitm
Contingent Liabilities, Commitments and Legal Matters | 6 Months Ended |
Jan. 31, 2016 | |
Contingent Liabilities, Commitments and Legal Matters | 13. Contingent Liabilities, Commitments and Legal Matters The Company is contingently liable under terms of repurchase agreements with financial institutions providing inventory financing for certain dealers of certain of its products. These arrangements, which are customary in the industry, provide for the repurchase of products sold to dealers in the event of default by the dealer on the agreement to pay the financial institution. The repurchase price is generally determined by the original sales price of the product and pre-defined curtailment arrangements. The Company typically resells the repurchased product at a discount from its repurchase price. The risk of loss from these agreements is spread over numerous dealers. In addition to the guarantee under these repurchase agreements, we may also be required to repurchase inventory relative to dealer terminations in certain states in accordance with state laws or regulatory requirements. The repurchase activity related to dealer terminations in certain states has been insignificant in relation to our repurchase obligation with financial institutions. The Company’s total commercial commitments under standby repurchase obligations on dealer inventory financing as of January 31, 2016 and July 31, 2015 were $1,558,560 and $1,363,576, respectively. The commitment term is primarily up to eighteen months. The Company accounts for the guarantee under repurchase agreements of dealers’ financing by deferring a portion of the related product sale that represents the estimated fair value of the guarantee at inception. The estimated fair value takes into account an estimate of the losses that may be incurred upon resale of any repurchases. This estimate is based on recent historical experience supplemented by the Company’s assessment of current economic and other conditions affecting its dealers. This deferred amount is included in the repurchase and guarantee reserve balances of $4,650 and $4,163 as of January 31, 2016 and July 31, 2015, respectively, which are included in other current liabilities on the Condensed Consolidated Balance Sheets. The following table reflects losses incurred related to repurchase agreements that were settled in the periods noted. The Company believes that any future losses under these agreements will not have a significant effect on the Company’s consolidated financial position, results of operations or cash flows. Three Months Ended January 31, Six Months Ended January 31, 2016 2015 2016 2015 Cost of units repurchased $ 189 $ 4,582 $ 1,008 $ 6,227 Realization of units resold 189 3,721 876 5,161 Losses due to repurchase $ — $ 861 $ 132 $ 1,066 The Company is also involved in certain litigation arising out of its operations in the normal course of its business, most of which is based upon state “lemon laws”, warranty claims and vehicle accidents (for which the Company carries insurance above a specified self-insured retention or deductible amount). The outcomes of legal proceedings and claims brought against the Company are subject to significant uncertainty. There is significant judgment required in assessing both the probability of an adverse outcome and the determination as to whether an exposure can be reasonably estimated. In management’s opinion, the ultimate disposition of any current legal proceedings or claims against the Company will not have a material effect on the Company’s financial condition, operating results or cash flows. Litigation is, however, inherently uncertain and an adverse outcome from such litigation could have a material effect on the operating results of a particular reporting period. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jan. 31, 2016 | |
Stockholders' Equity | 14. Stockholders’ Equity Stock-Based Compensation During fiscal 2013, the Compensation and Development Committee of the Board (“the Committee”) approved a program to award restricted stock units to certain employees at the operating subsidiary and corporate levels. Under this program, the Committee approved awards that were granted in fiscal 2015 related to fiscal year 2014 performance and approved additional awards that were granted in fiscal 2016 related to fiscal 2015 performance. The employee restricted stock units vest, and shares of common stock will be issued, in equal installments on the first, second and third anniversaries of the date of grant. In fiscal 2016 and fiscal 2015, the Nominating and Governance Committee of the Board awarded restricted stock units to Board members that will vest, and shares of common stock will be issued, on the first anniversary of the date of the grant. Total expense recognized in the three months ended January 31, 2016 and January 31, 2015 for these restricted stock unit awards and other stock-based compensation was $2,400 and $1,762, respectively. Total expense recognized in the six months ended January 31, 2016 and January 31, 2015 for these restricted stock unit awards and other stock-based compensation was $4,679 and $3,327, respectively. For the restricted stock units that vested during the six month periods ended January 31, 2016 and January 31, 2015, a portion of the vested shares awarded were withheld as treasury shares to cover the recipients’ estimated withholding taxes. Tax payments made by the Company related to these stock-based awards for the six months ended January 31, 2016 and January 31, 2015 totaled $2,484 and $1,562, respectively. Retained Earnings The components of the change in retained earnings are as follows: Balance as of July 31, 2015 $ 1,172,432 Net income 95,165 Dividends declared and paid (31,485 ) Balance as of January 31, 2016 $ 1,236,112 The dividends declared and paid total of $31,485 represents the regular quarterly dividend of $0.30 per share for each of the first two quarters of fiscal 2016. |
Nature of Operations and Acco20
Nature of Operations and Accounting Policies (Policies) | 6 Months Ended |
Jan. 31, 2016 | |
Nature of Operations | Nature of Operations Thor Industries, Inc. was founded in 1980 and, through its subsidiaries (collectively, the “Company”), manufactures a wide range of recreational vehicles (“RVs”) in the United States at various manufacturing facilities located primarily in Indiana and Ohio. These products are sold to independent dealers primarily throughout the United States and Canada. Unless the context otherwise requires or indicates, all references to “Thor”, the “Company”, “we”, “our” and “us” refer to Thor Industries, Inc. and its subsidiaries. The Company’s core business activities are comprised of two distinct operations, which include the design, manufacture and sale of towable recreational vehicles and motorized recreational vehicles. Accordingly, the Company has presented segment financial information for these two segments in Note 4 to the Condensed Consolidated Financial Statements. See Note 3, “Discontinued Operations,” in the Notes to the Condensed Consolidated Financial Statements for a description of the Company’s bus operations that were sold during the quarter ended October 31, 2013. The accompanying financial statements (including footnote disclosures unless otherwise indicated) reflect these bus operations as discontinued operations apart from the Company’s continuing operations. The July 31, 2015 amounts are derived from the annual audited financial statements. The interim financial statements are unaudited. In the opinion of management, all adjustments (which consist of normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented have been made. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2015. Due to seasonality within the recreational vehicle industry, annualizing the results of operations for the six months ended January 31, 2016 would not necessarily be indicative of the results for a full fiscal year. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Key estimates include reserves for inventory, incurred but not reported medical claims, warranty claims, recall liabilities, workers’ compensation claims, vehicle repurchases, uncertain tax positions, product and non-product litigation and assumptions made for both intangible assets acquired and asset impairment assessments. The Company bases its estimates on historical experience and on various other assumptions believed to be reasonable under the circumstances. The Company believes that such estimates are made using consistent and appropriate methods. Actual results could differ from these estimates. |
Accounting Pronouncements | Accounting Pronouncements In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-08 (“ASU 2014-08”) “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. Under the new guidance, the disposal of a component or group of components of a business will be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The Company adopted ASU 2014-08 as of August 1, 2015. The impact to the Company will depend on future disposals. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 “Revenue from Contracts with Customers (Topic 606),” which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This standard will supersede most current revenue recognition guidance. Under the new standard, entities are required to identify the contract with a customer, identify the separate performance obligations in the contract, determine the transaction price, allocate the transaction price to the separate performance obligations in the contract and recognize the appropriate amount of revenue when (or as) the entity satisfies each performance obligation. The standard is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2017. The standard is effective for the Company in its fiscal year 2019 beginning on August 1, 2018. Entities have the option of using either retrospective transition or a modified approach in applying the new standard. The Company is currently evaluating the approach it will use to apply the new standard and the impact that the adoption of the new standard will have on the Company’s consolidated financial statements. In July 2015, the FASB issued Accounting Standards Update No. 2015-11 (“ASU 2015-11”) “Inventory (Topic 330): Simplifying the Measurement of Inventory.” ASU 2015-11 requires inventory measured using any method other than last-in, first-out (“LIFO”) or the retail inventory method to be subsequently measured at the lower of cost or net realizable value, rather than at the lower of cost or market. Under this ASU, subsequent measurement of inventory using the LIFO and retail inventory method is unchanged. ASU 2015-11 is effective prospectively for fiscal years, and for interim periods within those years, beginning after December 15, 2016. The standard is effective for the Company in its fiscal year 2018 beginning on August 1, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. In September 2015, the FASB issued Accounting Standards Update No. 2015-16 (“ASU 2015-16”) “Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments,” to simplify the accounting for measurement-period adjustments in a business combination. Under the new standard, an acquirer must recognize adjustments to provisional amounts in a business combination in the reporting period in which the adjustment amounts are determined, rather than retrospectively adjusting the provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill as under current guidance. ASU 2015-16 is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2015. This standard is effective for the Company in its fiscal year 2017 beginning on August 1, 2016. This new standard will be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. The Company is currently evaluating the impact of this ASU on its consolidated financial statements, which will be dependent on future acquisitions. In November 2015, the FASB issued Accounting Standards Update No. 2015-17 (“ASU 2015-17”) “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” to simplify the presentation of deferred income taxes. Under the new standard, both deferred tax liabilities and assets are required to be classified as noncurrent in a classified balance sheet. ASU 2015-17 is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2016. This standard is effective for the Company in its fiscal year 2018 beginning on August 1, 2017. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Unaudited Pro Forma Information | The following unaudited pro forma information represents the Company’s results of operations as if the fiscal 2015 acquisitions of both Postle and CRV/DRV had occurred at the beginning of fiscal 2014. These performance results may not be indicative of the actual results that would have occurred under the ownership and management of the Company. Three Months Ended January 31, 2015 Six Months Ended January 31, 2015 Net sales $ 912,924 $ 1,914,151 Net income $ 31,318 $ 75,087 Basic earnings per common share $ 0.59 $ 1.41 Diluted earnings per common share $ 0.59 $ 1.40 |
Postle Operating, LLC | |
Summary of Fair Value Assigned to Assets Acquired | The following table summarizes the fair values assigned to the Postle net assets acquired, which are based on internal and independent external valuations: Cash $ 2,963 Other current assets 54,780 Property, plant and equipment 32,251 Customer relationships 38,800 Trademarks 6,000 Backlog 300 Goodwill 42,871 Current liabilities (23,729 ) Capital lease obligations (7,225 ) Total fair value of net assets acquired 147,011 Less cash acquired (2,963 ) Total cash consideration for acquisition, less cash acquired $ 144,048 |
Cruiser RV, LLC and DRV, LLC | |
Summary of Fair Value Assigned to Assets Acquired | The following table summarizes the fair values assigned to the CRV and DRV net assets acquired, which are based on internal and independent external valuations. Cash $ 1,062 Other current assets 22,175 Property, plant and equipment 4,533 Dealer network 14,300 Trademarks 5,400 Backlog 450 Goodwill 13,172 Current liabilities (12,507 ) Total fair value of net assets acquired 48,585 Less cash acquired (1,062 ) Total cash consideration for acquisition, less cash acquired $ 47,523 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Operating Results of Discontinued Operations | The following table summarizes the results of discontinued operations: Three Months Ended January 31, Six Months Ended January 31, 2016 2015 2016 2015 Operating loss of discontinued operations before income taxes $ (918 ) $ (2,564 ) $ (1,296 ) $ (2,999 ) Income tax benefit (339 ) (945 ) (478 ) (1,104 ) Loss from discontinued operations, net of taxes $ (579 ) $ (1,619 ) $ (818 ) $ (1,895 ) |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Schedule of Segment Reporting Information by Segment | Three Months Ended January 31, Six Months Ended January 31, Net sales: 2016 2015 2016 2015 Recreational vehicles: Towables $ 698,318 $ 675,090 $ 1,442,997 $ 1,374,868 Motorized 242,867 177,326 493,966 399,540 Total recreational vehicles 941,185 852,416 1,936,963 1,774,408 Other 48,011 — 98,393 — Intercompany eliminations (14,125 ) — (29,934 ) — Total $ 975,071 $ 852,416 $ 2,005,422 $ 1,774,408 Three Months Ended January 31, Six Months Ended January 31, 2016 2015 2016 2015 Income (loss) from continuing operations before income taxes: Recreational vehicles: Towables $ 53,069 $ 40,320 $ 116,293 $ 89,619 Motorized 20,519 11,867 42,172 26,968 Total recreational vehicles 73,588 52,187 158,465 116,587 Other, net 3,010 — 5,666 — Corporate (10,710 ) (8,050 ) (20,552 ) (15,744 ) Total $ 65,888 $ 44,137 $ 143,579 $ 100,843 January 31, 2016 July 31, 2015 Total assets: Recreational vehicles: Towables $ 928,841 $ 907,175 Motorized 220,368 162,940 Total recreational vehicles 1,149,209 1,070,115 Other, net 156,103 161,075 Corporate 281,051 272,058 Total $ 1,586,363 $ 1,503,248 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Schedule of Earnings Per Common Share | Three Months Ended January 31, Six Months Ended January 31, 2016 2015 2016 2015 Weighted-average common shares outstanding for basic earnings per share 52,474,801 53,377,440 52,442,373 53,355,757 Unvested restricted stock and restricted stock units 86,321 81,091 110,968 88,973 Weighted-average common shares outstanding for diluted earnings per share 52,561,122 53,458,531 52,553,341 53,444,730 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Schedule of Major Classifications of Inventories | Major classifications of inventories are as follows: January 31, 2016 July 31, 2015 Finished goods – RV $ 37,764 $ 35,693 Finished goods – other 17,542 18,045 Work in process 59,506 51,556 Raw materials 139,876 133,482 Chassis 50,597 37,739 Total 305,285 276,515 Excess of FIFO costs over LIFO costs (30,740 ) (30,400 ) Total inventories, net $ 274,545 $ 246,115 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Property, Plant and Equipment | Property, plant and equipment is stated at cost, net of accumulated depreciation, and consists of the following: January 31, 2016 July 31, 2015 Land $ 29,208 $ 27,447 Buildings and improvements 228,622 214,462 Machinery and equipment 112,065 106,959 Total cost 369,895 348,868 Less accumulated depreciation (123,318 ) (114,823 ) Property, plant and equipment, net $ 246,577 $ 234,045 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Components of Amortizable Intangible Assets | The components of amortizable intangible assets are as follows: Weighted-Average Remaining Life in Years at January 31, 2016 January 31, 2016 July 31, 2015 Cost Accumulated Amortization Cost Accumulated Amortization Dealer networks/customer relationships 9 $ 143,860 $ 46,300 $ 143,860 $ 37,194 Trademarks 18 55,282 8,880 55,282 7,608 Design technology and other intangibles 9 22,400 9,518 22,400 8,168 Non-compete agreements 3 450 158 4,710 4,264 Total amortizable intangible assets $ 221,992 $ 64,856 $ 226,252 $ 57,234 |
Estimated Amortization Expense | Estimated annual amortization expense is as follows: For the fiscal year ending July 31, 2016 $ 23,440 For the fiscal year ending July 31, 2017 20,671 For the fiscal year ending July 31, 2018 18,986 For the fiscal year ending July 31, 2019 16,975 For the fiscal year ending July 31, 2020 15,256 For the fiscal year ending July 31, 2021 and thereafter 73,690 $ 169,018 |
Product Warranties (Tables)
Product Warranties (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Schedule of Changes in Product Warranty Liabilities | Changes in our product warranty reserves are as follows: Three Months Ended January 31, Six Months Ended January 31, 2016 2015 2016 2015 Beginning balance $ 107,847 $ 97,640 $ 108,206 $ 94,938 Provision 25,283 26,769 51,516 56,230 Payments (26,870 ) (27,025 ) (53,462 ) (53,784 ) Acquisitions — 4,664 — 4,664 Ending balance $ 106,260 $ 102,048 $ 106,260 $ 102,048 |
Contingent Liabilities, Commi29
Contingent Liabilities, Commitments and Legal Matters (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Losses Due to Repurchases Related to Repurchase Agreements | The following table reflects losses incurred related to repurchase agreements that were settled in the periods noted. The Company believes that any future losses under these agreements will not have a significant effect on the Company’s consolidated financial position, results of operations or cash flows. Three Months Ended January 31, Six Months Ended January 31, 2016 2015 2016 2015 Cost of units repurchased $ 189 $ 4,582 $ 1,008 $ 6,227 Realization of units resold 189 3,721 876 5,161 Losses due to repurchase $ — $ 861 $ 132 $ 1,066 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Schedule of Change in Retained Earnings | The components of the change in retained earnings are as follows: Balance as of July 31, 2015 $ 1,172,432 Net income 95,165 Dividends declared and paid (31,485 ) Balance as of January 31, 2016 $ 1,236,112 |
Summary of Significant Accounti
Summary of Significant Accounting Policies - Additional Information (Detail) | 6 Months Ended |
Jan. 31, 2016Segment | |
Summary Of Significant Accounting Policies [Line Items] | |
Number of reportable segments | 2 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | May. 01, 2015 | Jan. 05, 2015 | Jul. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | Jul. 31, 2015 |
Business Acquisition [Line Items] | ||||||
Payment to acquire business, net | $ 49,265 | |||||
Postle Operating, LLC | ||||||
Business Acquisition [Line Items] | ||||||
Payment to acquire business, net | $ 144,048 | |||||
Asset purchase agreement date | May 1, 2015 | |||||
Amortizable intangible assets, weighted average useful life | 12 years 3 months 18 days | |||||
Cash on hand at the acquisition date | $ 2,963 | |||||
Cruiser RV, LLC and DRV, LLC | ||||||
Business Acquisition [Line Items] | ||||||
Payment to acquire business, net | $ 47,523 | $ 47,523 | ||||
Asset purchase agreement date | Dec. 31, 2014 | |||||
Amortizable intangible assets, weighted average useful life | 13 years 10 months 24 days | |||||
Payment to acquire business | $ 47,412 | |||||
Purchase price adjustment | 1,173 | |||||
Cash on hand at the acquisition date | 1,062 | $ 1,062 | $ 1,062 | |||
Initial payment to acquire business | $ 46,350 | |||||
Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets amortization period | 12 years | |||||
Amortizable intangible assets, amortization method | Accelerated cash flow basis | |||||
Trademarks | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets amortization period | 15 years | 20 years | 18 years | |||
Amortizable intangible assets, amortization method | Straight-line basis | |||||
Backlog | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets amortization period | 42 days | 42 days | ||||
Amortizable intangible assets, amortization method | Straight-line basis | |||||
Dealer Networks | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets amortization period | 12 years | |||||
Amortizable intangible assets, amortization method | Accelerated cash flow basis |
Summary of Preliminary Fair Val
Summary of Preliminary Fair Value Assigned to Net Assets Acquired (Detail) - USD ($) $ in Thousands | May. 01, 2015 | Jan. 31, 2015 | Jan. 31, 2016 | Jul. 31, 2015 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 303,509 | $ 312,622 | ||
Total cash consideration for acquisition, less cash acquired | $ 49,265 | |||
Postle Operating, LLC | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 2,963 | |||
Other current assets | 54,780 | |||
Property, plant and equipment | 32,251 | |||
Goodwill | 42,871 | |||
Current liabilities | (23,729) | |||
Capital lease obligations | (7,225) | |||
Total fair value of net assets acquired | 147,011 | |||
Less cash acquired | (2,963) | |||
Total cash consideration for acquisition, less cash acquired | 144,048 | |||
Postle Operating, LLC | Customer Relationships | ||||
Business Acquisition [Line Items] | ||||
Business acquisition allocated to amortizing intangible asset | 38,800 | |||
Postle Operating, LLC | Trademarks | ||||
Business Acquisition [Line Items] | ||||
Business acquisition allocated to amortizing intangible asset | 6,000 | |||
Postle Operating, LLC | Backlog | ||||
Business Acquisition [Line Items] | ||||
Business acquisition allocated to amortizing intangible asset | $ 300 |
Summary of Fair Value Assigned
Summary of Fair Value Assigned to Net Assets Acquired (Detail) - USD ($) $ in Thousands | Jan. 05, 2015 | Jul. 31, 2015 | Jan. 31, 2015 | Jan. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 312,622 | $ 303,509 | ||
Total cash consideration for acquisition, less cash acquired | $ 49,265 | |||
Cruiser RV, LLC and DRV, LLC | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 1,062 | 1,062 | ||
Other current assets | 22,175 | |||
Property, plant and equipment | 4,533 | |||
Goodwill | 13,172 | |||
Current liabilities | (12,507) | |||
Total fair value of net assets acquired | 48,585 | |||
Less cash acquired | (1,062) | |||
Total cash consideration for acquisition, less cash acquired | 47,523 | $ 47,523 | ||
Cruiser RV, LLC and DRV, LLC | Dealer Networks | ||||
Business Acquisition [Line Items] | ||||
Business acquisition allocated to amortizing intangible asset | 14,300 | |||
Cruiser RV, LLC and DRV, LLC | Trademarks | ||||
Business Acquisition [Line Items] | ||||
Business acquisition allocated to amortizing intangible asset | 5,400 | |||
Cruiser RV, LLC and DRV, LLC | Backlog | ||||
Business Acquisition [Line Items] | ||||
Business acquisition allocated to amortizing intangible asset | $ 450 |
Unaudited Pro Forma Information
Unaudited Pro Forma Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jan. 31, 2015 | Jan. 31, 2015 | |
Business Acquisition, Pro Forma Information [Line Items] | ||
Net sales | $ 912,924 | $ 1,914,151 |
Net income | $ 31,318 | $ 75,087 |
Basic earnings per common share | $ 0.59 | $ 1.41 |
Diluted earnings per common share | $ 0.59 | $ 1.40 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 21, 2013 | Feb. 28, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Proceeds from sale of bus business | $ 100,000 | |
Discontinued operation, amounts collected from ASV | $ 5,043 |
Operating Results of Discontinu
Operating Results of Discontinued Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Operating loss of discontinued operations before income taxes | $ (918) | $ (2,564) | $ (1,296) | $ (2,999) |
Income tax benefit | (339) | (945) | (478) | (1,104) |
Loss from discontinued operations, net of taxes | $ (579) | $ (1,619) | $ (818) | $ (1,895) |
Business Segments - Additional
Business Segments - Additional Information (Detail) | 6 Months Ended |
Jan. 31, 2016Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 2 |
Postle Operating, LLC | |
Segment Reporting Information [Line Items] | |
Subsidiary acquisition date | May 1, 2015 |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 975,071 | $ 852,416 | $ 2,005,422 | $ 1,774,408 |
Income (loss) from continuing operations before income taxes | 65,888 | 44,137 | 143,579 | 100,843 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from continuing operations before income taxes | (10,710) | (8,050) | (20,552) | (15,744) |
Operating Segments | Recreational vehicles | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from continuing operations before income taxes | 73,588 | 52,187 | 158,465 | 116,587 |
Operating Segments | Recreational vehicles | Towables | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from continuing operations before income taxes | 53,069 | 40,320 | 116,293 | 89,619 |
Operating Segments | Recreational vehicles | Motorized | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from continuing operations before income taxes | 20,519 | 11,867 | 42,172 | 26,968 |
Operating Segments | Other | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from continuing operations before income taxes | 3,010 | 5,666 | ||
Continuing Operations | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 975,071 | 852,416 | 2,005,422 | 1,774,408 |
Continuing Operations | Operating Segments | Recreational vehicles | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 941,185 | 852,416 | 1,936,963 | 1,774,408 |
Continuing Operations | Operating Segments | Recreational vehicles | Towables | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 698,318 | 675,090 | 1,442,997 | 1,374,868 |
Continuing Operations | Operating Segments | Recreational vehicles | Motorized | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 242,867 | $ 177,326 | 493,966 | $ 399,540 |
Continuing Operations | Operating Segments | Other | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 48,011 | 98,393 | ||
Continuing Operations | Intercompany Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ (14,125) | $ (29,934) |
Schedule of Segment Reporting40
Schedule of Segment Reporting Information, by Segment Balance Sheet Item (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Jul. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 1,586,363 | $ 1,503,248 |
Continuing Operations | Corporate | ||
Segment Reporting Information [Line Items] | ||
Total assets | 281,051 | 272,058 |
Continuing Operations | Operating Segments | Recreational vehicles | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,149,209 | 1,070,115 |
Continuing Operations | Operating Segments | Recreational vehicles | Towables | ||
Segment Reporting Information [Line Items] | ||
Total assets | 928,841 | 907,175 |
Continuing Operations | Operating Segments | Recreational vehicles | Motorized | ||
Segment Reporting Information [Line Items] | ||
Total assets | 220,368 | 162,940 |
Continuing Operations | Operating Segments | Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 156,103 | $ 161,075 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Earnings Per Share Disclosure [Line Items] | ||||
Weighted-average common shares outstanding for basic earnings per share | 52,474,801 | 53,377,440 | 52,442,373 | 53,355,757 |
Unvested restricted stock and restricted stock units | 86,321 | 81,091 | 110,968 | 88,973 |
Weighted-average common shares outstanding for diluted earnings per share | 52,561,122 | 53,458,531 | 52,553,341 | 53,444,730 |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional Information (Detail) - shares | 6 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive stock options, unvested restricted stock and restricted stock units outstanding | 30,716 | 14,048 |
Schedule of Major Classificatio
Schedule of Major Classifications of Inventories (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Jul. 31, 2015 |
Inventory [Line Items] | ||
Work in process | $ 59,506 | $ 51,556 |
Raw materials | 139,876 | 133,482 |
Chassis | 50,597 | 37,739 |
Total | 305,285 | 276,515 |
Excess of FIFO costs over LIFO costs | (30,740) | (30,400) |
Total inventories, net | 274,545 | 246,115 |
Recreational vehicles | ||
Inventory [Line Items] | ||
Finished goods | 37,764 | 35,693 |
Other | ||
Inventory [Line Items] | ||
Finished goods | $ 17,542 | $ 18,045 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Jul. 31, 2015 |
Inventory [Line Items] | ||
Inventories | $ 305,285 | $ 276,515 |
Subsidiaries valued inventories in first-in, first-out basis | $ 82,324 | $ 72,498 |
Property, Plant and Equipment45
Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Jul. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 369,895 | $ 348,868 |
Less accumulated depreciation | (123,318) | (114,823) |
Property, plant and equipment, net | 246,577 | 234,045 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 29,208 | 27,447 |
Building and Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 228,622 | 214,462 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 112,065 | $ 106,959 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Jul. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 369,895 | $ 348,868 |
Accumulated depreciation | 123,318 | 114,823 |
Assets Held under Capital Leases | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 6,527 | 6,527 |
Accumulated depreciation | $ 408 | $ 136 |
Components of Amortizable Intan
Components of Amortizable Intangible Assets (Detail) - USD ($) $ in Thousands | May. 01, 2015 | Jan. 05, 2015 | Jan. 31, 2016 | Jul. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||||
Cost | $ 221,992 | $ 226,252 | ||
Accumulated Amortization | $ 64,856 | 57,234 | ||
Dealer Network/Customer Relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Remaining Life in Years | 9 years | |||
Cost | $ 143,860 | 143,860 | ||
Accumulated Amortization | $ 46,300 | 37,194 | ||
Trademarks | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Remaining Life in Years | 15 years | 20 years | 18 years | |
Cost | $ 55,282 | 55,282 | ||
Accumulated Amortization | $ 8,880 | 7,608 | ||
Design Technology And Other Intangibles | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Remaining Life in Years | 9 years | |||
Cost | $ 22,400 | 22,400 | ||
Accumulated Amortization | $ 9,518 | 8,168 | ||
Non-Compete Agreements | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Remaining Life in Years | 3 years | |||
Cost | $ 450 | 4,710 | ||
Accumulated Amortization | $ 158 | $ 4,264 |
Estimated Amortization Expense
Estimated Amortization Expense (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Jul. 31, 2015 |
Expected Amortization Expense [Line Items] | ||
Estimated annual amortization expense, For the fiscal year ending July 31, 2016 | $ 23,440 | |
Estimated annual amortization expense, For the fiscal year ending July 31, 2017 | 20,671 | |
Estimated annual amortization expense, For the fiscal year ending July 31, 2018 | 18,986 | |
Estimated annual amortization expense, For the fiscal year ending July 31, 2019 | 16,975 | |
Estimated annual amortization expense, For the fiscal year ending July 31, 2020 | 15,256 | |
Estimated annual amortization expense, For the fiscal year ending July 31, 2021 and thereafter | 73,690 | |
Estimated annual amortization expense, Total | $ 157,136 | $ 169,018 |
Intangible Assets and Goodwil49
Intangible Assets and Goodwill - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2016 | Jul. 31, 2015 | |
Intangible Assets And Goodwill [Line Items] | |||
Goodwill | $ 303,509 | $ 303,509 | $ 312,622 |
Pre-tax, non-cash goodwill impairment charge | 9,113 | 9,113 | |
Towables | |||
Intangible Assets And Goodwill [Line Items] | |||
Goodwill | 260,638 | 260,638 | 269,751 |
Other | |||
Intangible Assets And Goodwill [Line Items] | |||
Goodwill | $ 42,871 | $ 42,871 | $ 42,871 |
Concentration of Risk - Additio
Concentration of Risk - Additional Information (Detail) - Freedom Roads, LLC | 6 Months Ended | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | Jul. 31, 2015 | |
Net Sales | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 21.00% | 14.00% | |
Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 24.00% | 22.00% |
Investments and Fair Value Me51
Investments and Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Jul. 31, 2015 |
Level 1 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Investments under employees deferred compensation plan | $ 10,460 | $ 10,803 |
Product Warranties - Additional
Product Warranties - Additional Information (Detail) | 6 Months Ended |
Jan. 31, 2016 | |
Product Warranty Liability [Line Items] | |
Warranty period for retail customers, years | 1 year |
Schedule of Changes in Product
Schedule of Changes in Product Warranty Liabilities for Continuing Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Product Warranty | ||||
Beginning balance | $ 107,847 | $ 97,640 | $ 108,206 | $ 94,938 |
Provision | 25,283 | 26,769 | 51,516 | 56,230 |
Payments | (26,870) | (27,025) | (53,462) | (53,784) |
Acquisitions | 4,664 | 4,664 | ||
Ending balance | $ 106,260 | $ 102,048 | $ 106,260 | $ 102,048 |
Provision for Income Taxes - Ad
Provision for Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Income Tax [Line Items] | ||||
Effective income tax rate | 31.30% | 31.40% | 33.10% | 31.10% |
Interest and penalties related to uncertain tax benefits | $ 141 | $ 147 | $ 282 | $ 293 |
Decreases in unrecognized tax benefits resulting from effective settlement | 4,506 | |||
Income tax benefit related to gross uncertain tax benefit releases, net | 2,387 | |||
Accrued an additional uncertain tax benefit related to prior tax periods | $ 90 | $ 90 | ||
Expected decrease in unrecognized tax benefits due to resolution of uncertain tax positions | $ 5,340 | 5,340 | ||
Expected decrease in interest due to resolution of uncertain tax positions | $ 1,182 |
Contingent Liabilities Commitme
Contingent Liabilities Commitments and Legal Matters - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jan. 31, 2016 | Jul. 31, 2015 | |
Loss Contingencies [Line Items] | ||
Standby Repurchase Obligations Amount | $ 1,558,560 | $ 1,363,576 |
Term of Commitments | Up to eighteen months | |
Repurchase and guarantee reserve balances | $ 4,650 | $ 4,163 |
Losses Due to Repurchases Relat
Losses Due to Repurchases Related to Repurchase Agreements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Loss Contingencies [Line Items] | ||||
Cost of units repurchased | $ 189 | $ 4,582 | $ 1,008 | $ 6,227 |
Realization of units resold | $ 189 | 3,721 | 876 | 5,161 |
Losses due to repurchase | $ 861 | $ 132 | $ 1,066 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2016 | Oct. 31, 2015 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Stock Based Compensation And Stockholders Equity [Line Items] | |||||
Stock-based compensation expense | $ 2,400 | $ 1,762 | $ 4,679 | $ 3,327 | |
Withholding taxes payable | $ 2,484 | $ 1,562 | |||
Regular dividends declared and paid per common share | $ 0.30 | $ 0.30 | $ 0.27 | $ 0.60 | $ 0.54 |
Regular Dividends declared and paid | $ 31,485 | ||||
Restricted Stock | |||||
Stock Based Compensation And Stockholders Equity [Line Items] | |||||
Withholding taxes payable | $ 2,484 | $ 1,562 |
Schedule of Change in Retained
Schedule of Change in Retained Earnings (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Retained Earnings Adjustments [Line Items] | ||
Beginning Balance | $ 1,172,432 | |
Net income | 95,165 | $ 67,573 |
Dividends declared and paid | (31,485) | |
Ending Balance | $ 1,236,112 |