Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2019 | Sep. 16, 2019 | Jan. 31, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jul. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | THOR INDUSTRIES INC | ||
Entity Central Index Key | 0000730263 | ||
Current Fiscal Year End Date | --07-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 3,295 | ||
Entity Interactive Data Current | Yes | ||
Entity Address, State or Province | IN | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | THO | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding | 55,063,473 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 425,615 | $ 275,249 |
Restricted cash | 25,647 | |
Accounts receivable, trade, net | 478,531 | 467,488 |
Factored accounts receivable | 173,405 | 0 |
Accounts receivable, other, net | 64,291 | 19,747 |
Inventories, net | 827,988 | 537,909 |
Prepaid income taxes, expenses and other | 41,880 | 11,281 |
Total current assets | 2,037,357 | 1,311,674 |
Property, plant and equipment, net | 1,092,471 | 522,054 |
Other assets: | ||
Goodwill | 1,358,032 | 377,693 |
Amortizable intangible assets, net | 970,811 | 388,348 |
Deferred income tax assets, net | 73,176 | 78,444 |
Equity investment in joint ventures | 46,181 | 48,463 |
Other | 82,418 | 51,989 |
Total other assets | 2,530,618 | 944,937 |
TOTAL ASSETS | 5,660,446 | 2,778,665 |
Current liabilities: | ||
Accounts payable | 551,831 | 286,974 |
Current portion of long-term debt | 17,370 | |
Short-term financial obligations | 44,094 | |
Accrued liabilities: | ||
Compensation and related items | 135,560 | 97,122 |
Product warranties | 289,679 | 264,928 |
Income and other taxes | 61,483 | 19,345 |
Promotions and rebates | 95,052 | 59,133 |
Product, property and related liabilities | 17,595 | 17,815 |
Liabilities related to factored receivables | 173,405 | |
Other | 62,256 | 24,013 |
Total current liabilities | 1,448,325 | 769,330 |
Long-term debt | 1,885,253 | |
Deferred income tax liabilities, net | 135,703 | |
Unrecognized tax benefits | 10,799 | 12,446 |
Other liabilities | 85,138 | 59,148 |
Total long-term liabilities | 2,116,893 | 71,594 |
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 65,189,907 and 62,765,824 shares, respectively | 6,519 | 6,277 |
Additional paid-in capital | 416,382 | 252,204 |
Retained earnings | 2,066,674 | 2,022,988 |
Accumulated other comprehensive loss, net of tax | (57,004) | 0 |
Less treasury shares of 10,126,434 and 10,070,459, respectively, at cost | (348,146) | (343,728) |
Stockholders' equity attributable to Thor Industries, Inc. | 2,084,425 | 1,937,741 |
Non-controlling interests | 10,803 | |
Total stockholders' equity | 2,095,228 | 1,937,741 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 5,660,446 | $ 2,778,665 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 31, 2019 | Jul. 31, 2018 |
Statement of Financial Position [Abstract] | ||
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 | 65,189,907 | 62,765,824 |
Treasury, shares | 10,126,434 | 10,070,459 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 7,864,758 | $ 8,328,909 | $ 7,246,952 |
Cost of products sold | 6,891,664 | 7,164,243 | 6,203,369 |
Gross profit | 973,094 | 1,164,666 | 1,043,583 |
Selling, general and administrative expenses | 536,044 | 477,444 | 419,847 |
Amortization of intangible assets | 75,638 | 55,118 | 63,925 |
Acquisition-related costs | 114,866 | ||
Interest income | 8,080 | 2,148 | 923 |
Interest expense | 68,112 | 5,187 | 9,730 |
Other income (expense), net | (1,848) | 3,964 | 5,382 |
Income before income taxes | 184,666 | 633,029 | 556,386 |
Income taxes | 52,201 | 202,878 | 182,132 |
Net income | 132,465 | 430,151 | 374,254 |
Less: net (loss) attributable to non-controlling interests | (810) | ||
Net income attributable to Thor Industries, Inc. | $ 133,275 | $ 430,151 | $ 374,254 |
Weighted-average common shares outstanding: | |||
Basic | 53,905,667 | 52,674,161 | 52,562,723 |
Diluted | 54,026,686 | 52,853,360 | 52,758,442 |
Earnings per common share: | |||
Basic | $ 2.47 | $ 8.17 | $ 7.12 |
Diluted | 2.47 | 8.14 | 7.09 |
Regular dividends declared and paid per common share: | $ 1.56 | $ 1.48 | $ 1.32 |
Comprehensive income: | |||
Net income | $ 132,465 | $ 430,151 | $ 374,254 |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation adjustment, net of tax | (47,078) | ||
Unrealized gain (loss) on derivatives, net of tax | (9,472) | ||
Other (loss), net of tax | (1,048) | ||
Total other comprehensive (loss), net of tax | (57,598) | ||
Total Comprehensive income | 74,867 | 430,151 | 374,254 |
Comprehensive (loss) attributable to non-controlling interest | (1,404) | ||
Comprehensive income attributable to Thor Industries, Inc. | $ 76,271 | $ 430,151 | $ 374,254 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss), net [Member] | Treasury Stock [Member] | Stockholders' Equity Attributable to Thor [Member] | Non-controlling Interests [Member] |
Balance (in shares) at Jul. 31, 2016 | 62,439,795 | 9,957,180 | ||||||
Balance at Jul. 31, 2016 | $ 1,265,222 | $ 6,244 | $ 224,496 | $ 1,365,981 | $ (331,499) | $ 1,265,222 | ||
Net income | 374,254 | 374,254 | 374,254 | |||||
Restricted stock unit activity (in shares) | 157,315 | 53,889 | ||||||
Restricted stock unit activity | (6,027) | $ 16 | (1,471) | $ (4,572) | (6,027) | |||
Cash dividends | (69,409) | (69,409) | (69,409) | |||||
Stock compensation expense | 12,500 | 12,500 | 12,500 | |||||
Balance (in shares) at Jul. 31, 2017 | 62,597,110 | 10,011,069 | ||||||
Balance at Jul. 31, 2017 | 1,576,540 | $ 6,260 | 235,525 | 1,670,826 | $ (336,071) | 1,576,540 | ||
Net income | 430,151 | 430,151 | 430,151 | |||||
Restricted stock unit activity (in shares) | 168,714 | 59,390 | ||||||
Restricted stock unit activity | (7,961) | $ 17 | (321) | $ (7,657) | (7,961) | |||
Cash dividends | (77,989) | (77,989) | (77,989) | |||||
Stock compensation expense | 17,000 | 17,000 | 17,000 | |||||
Balance (in shares) at Jul. 31, 2018 | 62,765,824 | 10,070,459 | ||||||
Balance at Jul. 31, 2018 | 1,937,741 | $ 6,277 | 252,204 | 2,022,988 | $ (343,728) | 1,937,741 | ||
Net income | 132,465 | 133,275 | 133,275 | $ (810) | ||||
Restricted stock unit activity (in shares) | 167,591 | 55,975 | ||||||
Restricted stock unit activity | (3,116) | $ 16 | 1,286 | $ (4,418) | (3,116) | |||
Cash dividends | (84,139) | (84,139) | (84,139) | |||||
Stock compensation expense | 18,950 | 18,950 | 18,950 | |||||
Other comprehensive income (loss) | (57,598) | $ (57,004) | (57,004) | (594) | ||||
Cumulative effect of adoption of ASU no. 2014-09, net of tax | (5,450) | (5,450) | (5,450) | |||||
Acquisitions (in shares) | 2,256,492 | |||||||
Acquisitions | 156,375 | $ 226 | 143,942 | 144,168 | 12,207 | |||
Balance (in shares) at Jul. 31, 2019 | 65,189,907 | 10,126,434 | ||||||
Balance at Jul. 31, 2019 | $ 2,095,228 | $ 6,519 | $ 416,382 | $ 2,066,674 | $ (57,004) | $ (348,146) | $ 2,084,425 | $ 10,803 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Cash dividends, per common share | $ 1.56 | $ 1.48 | $ 1.32 |
Retained Earnings [Member] | |||
Cash dividends, per common share | $ 1.56 | $ 1.48 | $ 1.32 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 132,465 | $ 430,151 | $ 374,254 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 73,139 | 38,105 | 34,333 |
Amortization of intangibles | 75,638 | 55,118 | 63,925 |
Amortization of debt issuance costs | 6,189 | 1,570 | 1,570 |
Foreign currency forward contract loss | 70,777 | ||
Deferred income tax provision (benefit) | (9,059) | 14,525 | (39,552) |
(Gain) loss on disposition of property, plant and equipment | 739 | (1,450) | (2,231) |
Stock-based compensation expense | 18,950 | 17,000 | 12,500 |
Changes in assets and liabilities: | |||
Accounts receivable | 136,145 | (2,391) | (92,305) |
Inventories | 283,311 | (77,421) | (56,619) |
Prepaid income taxes, expenses and other | (13,114) | (14,197) | (13,888) |
Accounts payable | (120,507) | (40,736) | 67,138 |
Guarantee liabilities related to former EHG subsidiaries | (108,843) | ||
Accrued liabilities | (46,612) | 29,575 | 63,075 |
Long-term liabilities and other | 8,801 | 16,659 | 7,133 |
Net cash provided by operating activities | 508,019 | 466,508 | 419,333 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (130,224) | (138,197) | (115,027) |
Proceeds from dispositions of property, plant and equipment | 2,732 | 3,835 | 4,682 |
Business acquisitions, net of cash acquired | (1,658,577) | (5,039) | |
Foreign currency forward contract payment related to business acquisition | (70,777) | ||
Equity investment in joint venture | (6,500) | (50,402) | |
Other | (2,157) | 1,271 | (1,271) |
Net cash used in investing activities | (1,865,503) | (183,493) | (116,655) |
Cash flows from financing activities: | |||
Borrowings on term-loan credit facilities | 2,095,018 | ||
Borrowings on revolving credit facilities | 100,000 | ||
Principal payments on term-loan credit facilities | (242,919) | ||
Principal payments on revolving credit facilities | (100,000) | (145,000) | (215,000) |
Principal payments on unsecured notes | (84,728) | ||
Principal payments on other debt | (70,319) | ||
Payments of debt issuance costs | (70,176) | ||
Regular cash dividends paid | (84,139) | (77,989) | (69,409) |
Principal payments on capital lease obligations | (405) | (378) | (341) |
Payments related to vesting of stock-based awards | (4,418) | (7,657) | (4,572) |
Other | 1,159 | ||
Net cash provided by (used in) financing activities | 1,539,073 | (231,024) | (289,322) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (5,576) | ||
Net increase in cash and cash equivalents and restricted cash | 176,013 | 51,991 | 13,356 |
Cash and cash equivalents and restricted cash, beginning of period | 275,249 | 223,258 | 209,902 |
Cash and cash equivalents and restricted cash, end of period | 451,262 | 275,249 | 223,258 |
Less: restricted cash | 25,647 | ||
Cash and cash equivalents, end of period | 425,615 | 275,249 | 223,258 |
Supplemental cash flow information: | |||
Income taxes paid | 87,813 | 218,841 | 198,619 |
Interest paid | 57,189 | 3,901 | 8,558 |
Non-cash investing and financing transactions: | |||
Capital expenditures in accounts payable | 4,332 | $ 5,375 | $ 6,266 |
Common stock issued for business acquisition | $ 144,168 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations or “Thor”), that, combined, represent the world’s largest manufacturer of recreational vehicles by units and revenue. The Company manufactures a wide variety of RVs in the United States and Europe and sells those vehicles, as well as related parts and accessories, primarily to independent, non-franchise dealers throughout the United States, Canada and Europe. As discussed in more detail in Note 2 to the Consolidated Financial Statements, on February 1, 2019, the Company acquired Erwin Hymer Group SE, one of the largest RV manufacturers in Europe. Unless the context requires or indicates otherwise, all references to “Thor,” the “Company,” “we,” “our” and “us” refer to Thor Industries, Inc. and its subsidiaries. The Company’s business activities are primarily comprised of three distinct operations, which include the design, manufacture and sale of North American towable recreational vehicles, North American motorized recreational vehicles and European recreational vehicles, with the European vehicles including both towable and motorized products as well as other RV-related products and services. Accordingly, the Company has presented segment financial information for these segments in Note 3 to the Consolidated Financial Statements. Principles of Consolidation Estimates non-product Cash and Cash Equivalents – Interest-bearing deposits and other investments with maturities of three months or less when purchased are considered cash equivalents. At July 31, 2019 and 2018, cash and cash equivalents of $148,488 and $254,701, respectively, were held by one U.S. financial institution. In addition, at July 31, 2019, cash and cash equivalents of $61,057 were held by another U.S. financial institution, and the equivalent of $115,168 and $39,254 was held in Euros at two different European financial institutions, respectively. Derivatives Fair Value of Financial Instruments Inventories last-in, first-out first-in, first-out freight-in Depreciation Buildings and improvements – 10 to 39 years Machinery and equipment – 3 to 10 years Rental vehicles – 6 years Depreciation expense is recorded in cost of products sold, except for $8,350, $5,035 and $5,710 in fiscal 2019, 2018 and 2017, respectively, which relates primarily to office buildings and office equipment and is recorded in selling, general and administrative expenses. Business Combinations The Company accounts for the acquisition of a business using the acquisition method of accounting. Assets acquired and liabilities assumed, including amounts attributed to noncontrolling interests, are recorded at the acquisition date at their fair values. Assigning fair values requires the Company to make significant estimates and assumptions regarding the fair value of identifiable intangible assets, property, plant and equipment, deferred tax asset valuation allowances, and liabilities, such as uncertain tax positions and contingencies. The Company may refine these estimates if necessary over a period not to exceed one year by taking into consideration new information that, if known at the acquisition date, would have affected the fair values ascribed to the assets acquired and liabilities assumed. Significant estimates and assumptions are used in estimating the value of acquired identifiable intangible assets, including estimating future cash flows based on revenues and margins that the Company expects to generate following the acquisition, selecting an applicable royalty rate where needed, applying an appropriate discount rate to estimate a present value of those cash flows and determining their useful lives. Subsequent changes to projections driven by actual results following the acquisition date could require the Company to record impairment charges. Goodwill For goodwill impairment testing purposes, the Company’s reporting units are generally the same as its operating segments, which are identified in Note 3 to the Consolidated Financial Statements. Long-lived and Intangible Assets non-compete non-compete Product Warranties Factored Accounts Receivable Insurance Reserves Revenue Recognition For recreational vehicle sales, the Company recognizes revenue when all performance obligations have been satisfied and control of the product is transferred to the dealer in accordance with shipping terms. Shipping terms vary depending on regional contracting practices. U.S. customers primarily contract under FOB shipping point terms. European customers generally contract on ExWorks (“EXW”) incoterms (meaning the seller fulfills its obligation to deliver when it makes goods available at its premises, or another specified location, for the buyer to collect). Under EXW incoterms, the performance obligation is satisfied and control is transferred at the point when the customer is notified that the vehicle is available for pickup. Customers do not have a right of return. All warranties provided are assurance-type warranties. In addition to recreational vehicle sales, the Company’s European recreational vehicle reportable segment sells accessory items and provides repair services through our owned dealerships. Each ordered item represents a distinct performance obligation satisfied when control of the good is transferred to the customer. Service and repair contracts with customers are short term in nature and are recognized when the service is complete. Revenue is measured as the amount of consideration to which the Company expects to be entitled in exchange for the Company’s products and services. The amount of revenue recognized includes adjustments for any variable consideration, such as sales discounts, sales allowances, promotions, rebates and other sales incentives which are included in the transaction price and allocated to each performance obligation based on the standalone selling price. The Company estimates variable consideration based on the expected value of total consideration to which customers are likely to be entitled to based primarily on historical experience and current market conditions. Included in the estimate is an assessment as to whether any variable consideration is constrained. Revenue estimates are adjusted at the earlier of a change in the expected value of consideration or when the consideration becomes fixed. During fiscal 2019, adjustments to revenue from performance obligations satisfied in prior periods, which relate primarily to changes in estimated variable consideration, were immaterial. Amounts billed to customers related to shipping and handling activities are included in net sales. The Company has elected to account for shipping and handling costs as fulfillment activities, and these costs are included in cost of sales. We do not disclose information about the transaction price allocated to the remaining performance obligations at period end because our contracts generally have original expected durations of one year or less. In addition, we expense when incurred contract acquisition costs, primarily sales commissions, because the amortization period, which is aligned with the contract term, is one year or less. Advertising Costs Foreign Currency Repurchase Agreements Income Taxes The Company recognizes liabilities for uncertain tax positions based on a two-step Significant judgment is required in determining the Company’s provision for income taxes, the Company’s deferred tax assets and liabilities and the valuation allowance recorded against the Company’s deferred tax assets. Valuation allowances must be considered due to the uncertainty of realizing deferred tax assets. The Company assesses whether valuation allowances should be established against our deferred tax assets on a tax jurisdictional basis based on the consideration of all available evidence, including cumulative income over recent periods, using a more likely than not standard. Research and Development Stock-Based Compensation Earnings Per Share The difference between basic EPS and diluted EPS is the result of unvested restricted stock units and restricted stock as follows: 2019 2018 2017 Weighted-average shares outstanding for basic earnings per share 53,905,667 52,674,161 52,562,723 Unvested restricted stock and restricted stock units 121,019 179,199 195,719 Weighted-average shares outstanding assuming dilution 54,026,686 52,853,360 52,758,442 The Company excludes unvested restricted stock units and restricted stock that have an antidilutive effect from its calculation of weighted-average shares outstanding assuming dilution, which totaled 233,395 Accounting Pronouncements Recently Adopted Accounting Standards Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, The Company adopted ASU No. 2014-09, pre-tax The adoption impact is a result of a change in the accounting for certain sales incentives, which were historically recorded as a reduction of revenue at the later of the time products were sold or the date the incentive was offered. Upon adoption of ASU No. 2014-09, Derivatives and Hedging In August 2017, the FASB issued Accounting Standards Update No. 2017-12 2017-12) 2017-12 2017-12 2017-12 Other Accounting Standards Not Yet Adopted In January 2017, the FASB issued ASU No. 2017-04, In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” and has subsequently issued ASU’s 2018-10, “Codification Improvements (Topic 842),” and 2018-11, “Targeted Improvements (Topic 842)” (collectively the “New Leasing Standard”), which provide guidance on the recognition, measurement, presentation, and disclosure of leases. The New Leasing Standard requires the recognition of lease assets and lease liabilities by lessees for all leases with terms greater than 12 months. The principal difference from current guidance is that the lease assets and lease liabilities arising from operating leases will be recognized on the Consolidated Balance Sheet. The New Leasing Standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The New Leasing Standard is effective for the Company in its fiscal year 2020 beginning on August 1, 2019. The Company plans to elect the optional transition method as well as the available package of practical expedients upon adoption. As a result of this planned election, the Company will recognize a cumulative-effect adjustment to retained earnings as of the August 1, 2019 date of adoption and will not restate its consolidated financial statements. The Company anticipates the adoption of this ASU will result in the recognition of approximately $ million to $ million in right-of-use assets and the associated lease obligations on the Consolidated Balance Sheets and will not materially impact the Consolidated Statements of Income and Comprehensive Income. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Jul. 31, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | 2. ACQUISITIONS Erwin Hymer Group On February 1, 2019 , the Company and the shareholders of Erwin Hymer Group SE (“EHG”) closed on a transaction via which the Company acquired EHG. EHG is headquartered in Bad Waldsee, Germany, and is one of the largest RV manufacturers in Europe. The Company acquired EHG in order to expand its operations into the growing European market with a long-standing European industry leader. EHG will be managed as a stand-alone operating entity that will be included in the European recreational vehicle operating segment. At the closing, the Company paid cash consideration of approximately 1.53 billion Euro (approximately $1.76 billion at the exchange rate as of February 1, 2019) and issued 2,256,492 shares of the Company’s common stock to the sellers valued at $144.2 million. The cash consideration was funded through a combination of available cash on hand of approximately $95 million and debt financing consisting of two credit facility agreements, a 7 year, $2.1 billion term loan, consisting of an approximate $1.4 billion U.S. dollar-denominated tranche and an approximate 0.6 billion Euro tranche (approximately $0.7 billion at the exchange rate at February 1, 2019) , and $100 million utilized at closing from a 5 year, $750.0 million asset-based credit facility as more fully described in Note 12 to the Consolidated Financial Statements. The obligations of the Company under each facility are secured by liens on substantially all the assets of the Company, and both agreements contain certain customary representations, warranties and covenants of the Company. The table below summarizes the estimated fair values of the EHG assets acquired and liabilities assumed at the acquisition date. The provisional estimates of intangible assets, property, plant and equipment, goodwill, deferred income tax liabilities and other current liabilities could potentially change, as the Company has not yet finalized the valuation of certain assets and liabilities. The Company expects to finalize these values as soon as practical and no later than one year from the acquisition date. In the fourth quarter of fiscal 2019, the Company made measurement period adjustments to the estimated fair value of certain assets acquired and liabilities assumed to better reflect facts and circumstances that existed at the acquisition date, which resulted in a net increase in Goodwill of $14,045. Measurement period adjustments were a result of refinements in assumptions used at the date of acquisition for 1) valuation of property, plant and equipment, 2) deferred tax assets and liabilities for jurisdictional allocations and 3) increased valuation allowance against certain acquired tax net operating loss carryforwards. Cash $ 97,887 Inventory 593,053 Other assets 429,150 Property, plant and equipment, rental vehicles 80,132 Property, plant and equipment 447,621 Amortizable intangible assets: Dealer network 355,601 Trademarks 126,181 Technology assets 183,536 Backlog 11,471 Goodwill 1,008,472 Guarantee liabilities related to former EHG North American subsidiaries (115,668 ) Other current liabilities (850,623 ) Debt—Unsecured notes (114,710 ) Debt—Other (166,196 ) Deferred income tax liabilities (155,863 ) Other long-term liabilities (17,205 ) Non-controlling (12,207 ) Total fair value of net assets acquired 1,900,632 Less: cash acquired (97,887 ) Total fair value of net assets acquired, less cash acquired $ 1,802,745 On the acquisition date, amortizable intangible assets had a weighted-average useful life of 17 years. The dealer network was valued based on the Discounted Cash Flow method and is amortized on an accelerated basis over 20 years. The trademarks and technology assets were valued on the Relief of Royalty method and are amortized on a straight-line basis over 20 years and 10 years, respectively. The backlog was valued based on the Discounted Cash Flow method and was amortized on a straight-line basis over a five-month period. We have recognized $1,008,472 of goodwill as a result of this transaction, of which approximately $242,000 will be deductible for tax purposes. In connection with the closing of the acquisition, Thor and EHG entered into an amendment to the original September 18, 2018 purchase agreement to reflect the exclusion of EHG’s North American subsidiaries from the business operations acquired by Thor. The acquisition date balance sheet includes guarantee liabilities related to the former EHG North American subsidiaries totaling $115,668. Historically, EHG had provided guarantees for certain of its former North American subsidiaries that were assumed by Thor in the acquisition and which related to bank loans, foreign currency derivatives, certain specified supplier contracts and dealer financing arrangements, as well as a specific lease agreement. While the original term of these guarantees were generally long term in nature, the Company sought to settle these guarantees as soon as practical after the closing of the acquisition. The Company has an accrued liability of approximately $5,576 The results of EHG are included in the Company’s Consolidated Statements of Income and Comprehensive Income since the February 1 , 2019 acquisition date. During this period, EHG recorded net sales of $1,486,978, gross profit of $150,039 and a loss before income taxes of $5,946. Gross profit and loss before income taxes includes the impact of $61,418 related to the fair value step-up $11,239 for the amortization expense of the acquired backlog and the amortization expense of the other acquired amortizable intangibles of $14,355. The following unaudited pro forma information represents the Company’s results of operations as if the fiscal 2019 acquisition of EHG had occurred at the beginning of fiscal 2018. The disclosure of pro forma net sales and earnings does not purport to indicate the results that would actually have been obtained had the acquisition been completed on the assumed date for the periods presented, or which may be realized in the future. The unaudited pro forma information does not reflect any operating efficiencies or cost savings that may be realized from the integration of the acquisition. Fiscal 2019 Fiscal 2018 Net sales $ 9,067,750 $ 11,175,302 Net income $ 143,517 $ 305,101 Basic earnings per common share $ 2.66 $ 5.55 Diluted earnings per common share $ 2.66 $ 5.54 The pro forma earnings for the fiscal year ended July 31, 2019 were adjusted to exclude $114,866 of acquisition-related costs. Nonrecurring expenses related to management fees of $1,677 and $19,376 were excluded from pro forma earnings for the fiscal years ended July 31, 2019 and July 31, 2018, respectively. The periods presented exclude $61,418 of nonrecurring expense related to the fair value adjustment to acquisition-date inventory. EHG’s historical net income included in the totals above include nonrecurring charges related to its former North American operations in the amounts of $52,501 and $106,561 during the fiscal years ended July 31, 2019 and July 31, 2018, respectively. These charges primarily consist of EHG’s guarantees to third parties for certain North American subsidiary obligations and the impairment of loan receivables due to EHG from their former North American subsidiaries. Net costs incurred during fiscal 2019 related specifically to this acquisition totaled $114,866 and are included in Acquisition-related costs in the Consolidated Statements of Income and Comprehensive Income. These costs include the losses on the foreign currency forward contract of $70,777 discussed in Note 4 to the Consolidated Financial Statements below, and $44,089 of other expenses, consisting primarily of bank fees, ticking fees, legal, professional and advisory fees related to financial due diligence and implementation costs, regulatory review costs and the write-off of the remaining unamortized debt fees related to the Company’s previous asset-based facility. There were no material EHG acquisition-related costs incurred in periods prior to fiscal 2019. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Jul. 31, 2019 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | 3. BUSINESS SEGMENTS The Company has three The North American towable recreational vehicle reportable segment consists of the following operating segments that have been aggregated: Airstream (towable), Heartland (including Bison, Cruiser RV and DRV), Jayco (including Jayco towable, Starcraft and Highland Ridge), Keystone (including CrossRoads and Dutchmen) and KZ (including Venture RV). The North American motorized recreational vehicle reportable segment consists of the following operating segments that have been aggregated: Airstream (motorized), Jayco (including Jayco motorized and Entegra Coach) and Thor Motor Coach. The European recreational vehicles reportable segment consists solely of the recently acquired EHG business, as discussed in Note 2 to the Consolidated Financial Statements. EHG includes the operations of eight RV production facilities producing numerous respected and well-known brands within Europe, including Hymer, Buerstner, Carado, Dethleffs, Eriba, Etrusco, Laika, LMC, Niesmann+Bischoff, Xplore, Elddis, Compass, Buccaneer, Sunlight and CrossCamp. EHG’s products include numerous types of towable and motorized recreational vehicles, including motorcaravans, caravans, campervans and other RV-related The operations of the Company’s Postle subsidiary are included in “Other,” which is a non-reportable Total assets include those assets used in the operation of each reportable and non-reportable 2019 2018 2017 NET SALES: Recreational vehicles North American Towables $ 4,558,451 $ 6,008,700 $ 5,127,491 North American Motorized 1,649,329 2,146,315 1,971,466 Total North America 6,207,780 8,155,015 7,098,957 European 1,486,978 – – Total recreational vehicles 7,694,758 8,155,015 7,098,957 Other 263,374 305,947 253,557 Intercompany eliminations (93,374 ) (132,053 ) (105,562 ) Total $ 7,864,758 $ 8,328,909 $ 7,246,952 INCOME (LOSS) BEFORE INCOME TAXES: Recreational vehicles North American Towables $ 322,228 $ 532,657 $ 458,915 North American Motorized 80,910 134,785 125,323 Total North America 403,138 667,442 584,238 European (5,946 ) – – Total recreational vehicles 397,192 667,442 584,238 Other, net 29,086 32,667 28,714 Corporate (241,612 ) (67,080 ) (56,566 ) Total $ 184,666 $ 633,029 $ 556,386 TOTAL ASSETS: Recreational vehicles North American Towables $ 1,516,519 $ 1,654,361 $ 1,535,029 North American Motorized 446,626 492,830 500,761 Total North America 1,963,145 2,147,191 2,035,790 European 3,077,804 – – Total recreational vehicles 5,040,949 2,147,191 2,035,790 Other, net 163,897 167,965 156,996 Corporate 455,600 463,509 365,145 Total $ 5,660,446 $ 2,778,665 $ 2,557,931 DEPRECIATION AND INTANGIBLE AMORTIZATION EXPENSE: Recreational vehicles North American Towables $ 67,751 $ 68,964 $ 75,568 North American Motorized 13,831 11,800 9,393 Total North America 81,582 80,764 84,961 European 54,881 – – Total recreational vehicles 136,463 80,764 84,961 Other 10,647 10,861 11,967 Corporate 1,667 1,598 1,330 Total $ 148,777 $ 93,223 $ 98,258 CAPITAL ACQUISITIONS: Recreational vehicles North American Towables $ 69,321 $ 85,304 $ 72,801 North American Motorized 17,179 34,660 41,677 Total North America 86,500 119,964 114,478 European 35,653 – – Total recreational vehicles 122,153 119,964 114,478 Other 3,493 8,440 1,157 Corporate 1,599 8,902 2,120 Total $ 127,245 $ 137,306 $ 117,755 DESTINATION OF NET SALES BY GEOGRAPHIC REGION: United States $ 5,803,373 $ 7,540,015 $ 6,618,874 Germany 836,151 1,687 1,138 Other Europe 636,105 4,358 1,504 Canada 561,172 776,068 614,528 Other foreign 27,957 6,781 10,908 Total $ 7,864,758 $ 8,328,909 $ 7,246,952 PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC REGION: United States $ 569,641 $ 522,054 $ 425,238 Germany 424,333 – – Other Europe 92,553 – – Other 5,944 – – Total $ 1,092,471 $ 522,054 $ 425,238 |
DERIVATIVES AND HEDGING
DERIVATIVES AND HEDGING | 12 Months Ended |
Jul. 31, 2019 | |
Investments, All Other Investments [Abstract] | |
DERIVATIVES AND HEDGING | 4. DERIVATIVES AND HEDGING The Company uses interest rate swap agreements, foreign currency forward contracts and certain non-derivative Certain of the Company’s derivative transactions are subject to master netting arrangements that allow the Company to net settle contracts with the same counter parties. These arrangements generally do not call for collateral and as of the applicable dates presented below, no cash collateral had been received or pledged related to the underlying derivatives. The fair value of our derivative instruments and the associated notional amounts, presented on a pre-tax basis, were as follows: July 31, 2019 Fair Value in Other Current Cash Flow Hedges Notional Liabilities Interest rate swap agreements 849,550 12,463 Total derivative financial instruments $ 849,550 $ 12,463 See Note 10 to the Consolidated Financial Statements for additional fair value disclosures related to our derivative instruments. The Company did not have any designated hedge instruments prior to February 1, 2019. Cash Flow Hedges The Company has used foreign currency forward contracts to hedge the effect of certain foreign currency exchange rate fluctuations on forecasted foreign currency transactions, including foreign currency denominated sales. These forward contracts are designated as cash flow hedges. The changes in fair value of these contracts are recorded in accumulated other comprehensive income (“AOCI”) until the hedged items affect earnings, at which time the gain or loss is reclassified into the same line item in the determination of net income as the underlying exposure being hedged. As of July 31, 2019, the Company did not have any foreign currency forward contracts outstanding. The Company has entered into interest rate swap agreements to manage certain of its interest rate exposures. During fiscal 2019, the Company entered into pay-fixed, Net Investment Hedges The Company designates a portion of its outstanding Euro-denominated term loan tranche as a hedge of foreign currency exposures related to investments the Company has in certain Euro-denominated functional currency subsidiaries. The foreign currency transaction gains and losses on the Euro-denominated portion of the term loan, which is designated and determined to be effective as a hedge of the Company’s net investment in its Euro-denominated functional currency subsidiaries, are included as a component of the foreign currency translation adjustment. Gains included in the foreign currency translation adjustment for the fiscal year ended July 31, 2019 were $7,780, . There were no amounts reclassified out of AOCI pertaining to the net investment hedge during the fiscal year ended July 31, 2019. Derivatives Not Designated as Hedging Instruments As described in more detail in Note 2 to the Consolidated Financial Statements, on September 18, 2018, the Company entered into a definitive agreement to acquire EHG, which closed on February 1, 2019. The cash portion of the purchase price was denominated in Euro, and therefore the Company’s cash flows were exposed to changes in the Euro/USD exchange rate between the September 18, 2018 agreement date and the closing date. To reduce its exposure, the Company entered into a deal-contingent, foreign currency forward contract on the September 18, 2018 agreement date in the amount of 1.625 billion Euro. Hedge accounting was not applied to this instrument, and therefore all changes in fair value were recorded in earnings. The contract was settled in connection with the close of the EHG acquisition on February 1, 2019 in the amount of $70,777, resulting in a loss of the same amount which is included in Acquisition-related costs in the Consolidated Statements of Income and Comprehensive Income. The Company also has certain other derivative instruments, with a notional amount totaling approximately $35,700 The total amounts presented in the Consolidated Statements of Income and Comprehensive Income due to changes in the fair value of the following derivative instruments for the fiscal years ended July 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 Gain (Loss) on Derivatives Designated as Cash Flow Hedges Gain (Loss) recognized in Other Comprehensive Income, net of tax Foreign currency forward contracts $ 129 $ – $ – Interest rate swap agreements (9,396 ) – – Total gain (loss) $ (9,267 ) $ – $ – 2019 Acquisition- Interest Sales Related Costs Expense Gain (Loss) Reclassified from AOCI, Net of Tax Foreign currency forward contracts $ 129 $ – $ – Interest rate swap agreements – – 76 Gain (Loss) on Derivatives Not Designated as Hedging Instruments Amount of gain (loss) recognized in income, net of tax Foreign currency forward contracts – (70,777 ) – Interest rate swap agreements – – (438 ) Total gain (loss) $ 129 $ (70,777 ) $ (362 ) There were no derivative or non-derivative |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jul. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 5. INVENTORIES Major classifications of inventories are as follows: July 31, 2019 July 31, 2018 Finished goods—RV $ 230,483 $ 44,998 Finished goods—other 60,593 35,320 Work in process 126,636 124,703 Raw materials 300,721 258,429 Chassis 155,099 116,308 Subtotal 873,532 579,758 Excess of FIFO costs over LIFO costs (45,544 ) (41,849 ) Total inventories, net $ 827,988 $ 537,909 Of the $873,532 and $579,758 of inventories at July 31 , 2019 and July 31 , 2018 , $240,983 and $305,990, respectively, was valued on the last-in, first-out basis, and $632,549 and $273,768, respectively, was valued on the first-in, first-out method. EHG accounted for $392,643 of the $358,781 increase in FIFO inventory, and for $201,532 of the $185,485 increase in Finished goods – RV. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Jul. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | 6. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment is stated at cost, net of accumulated depreciation, and consists of the following: July 31, 2019 July 31, 2018 Land $ 142,475 $ 57,413 Buildings and improvements 742,736 468,824 Machinery and equipment 389,666 197,294 Rental vehicles 87,243 – Total cost 1,362,120 723,531 Less accumulated depreciation (269,649 ) (201,477 ) Property, plant and equipment, net $ 1,092,471 $ 522,054 Property, plant and equipment at both July 31, 2019 and July 31, 2018 includes buildings and improvements under capital leases of $6,527 and related amortization included in accumulated depreciation of $2,312 and $1,768 at July 31, 2019 and July 31, 2018, respectively. EHG accounted for $522,830 of the $570,417 increase in property, plant and equipment, net. |
INTANGIBLE ASSETS, GOODWILL AND
INTANGIBLE ASSETS, GOODWILL AND LONG-LIVED ASSETS | 12 Months Ended |
Jul. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, GOODWILL AND LONG-LIVED ASSETS | 7. INTANGIBLE ASSETS, GOODWILL AND LONG-LIVED ASSETS The components of amortizable intangible assets are as follows: July 31, 2019 July 31, 2018 Weighted-Average Remaining Life in Years Accumulated Accumulated at July 31, 2019 Cost Amortization Cost Amortization Dealer networks/customer relationships 18 $ 750,641 $ 191,017 $ 404,960 $ 147,077 Trademarks 18 268,778 34,518 146,117 24,364 Design technology and other intangibles 9 196,616 19,689 18,200 9,555 Non-compete – 450 450 450 383 Total amortizable intangible assets $ 1,216,485 $ 245,674 $ 569,727 $ 181,379 Estimated annual amortization expense is as follows: For the fiscal year ending July 31, 2020 $ 97,337 For the fiscal year ending July 31, 2021 103,968 For the fiscal year ending July 31, 2022 107,530 For the fiscal year ending July 31, 2023 88,051 For the fiscal year ending July 31, 2024 79,588 For the fiscal year ending July 31, 2025 and thereafter 494,337 $ 970,811 The increase in amortizable intangible assets in fiscal 2019 is entirely due to the acquisition of EHG, as more fully described in Note 2 to the Consolidated Financial Statements. For goodwill impairment testing purposes, the Company’s reporting units are generally the same as its operating segments, which are identified in Note 3 to the 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. 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. The Company completed its annual impairment review as of May 31, 2019, and no impairment was identified. There were no impairments of goodwill during fiscal 2018 or 2017. Changes in the carrying amount of goodwill by reportable segment as of July 31, 2019 and 2018 are summarized as follows: North American North American Towables Motorized European Other Total Net balance as of July 31, 2017 $ 334,822 $ – $ – $ 42,871 $ 377,693 Fiscal year 2018 activity: No activity – – – – – Net balance as of July 31, 2018 $ 334,822 $ – $ – $ 42,871 $ 377,693 Goodwill acquired – – 1,008,472 – 1,008,472 Foreign currency translation – – (28,133 ) – (28,133 ) Net balance as of July 31, 2019 $ 334,822 $ – $ 980,339 $ 42,871 $ 1,358,032 The components of the goodwill balances as of July 31, 2019 and July 31, 2018 are summarized as follows: North American North American Towables Motorized European Other Total Goodwill $ 343,935 $ 17,252 $ 980,339 $ 42,871 $ 1,384,397 Accumulated impairment charges (9,113 ) (17,252 ) – – (26,365 ) Net balance as of July 31, 2019 $ 334,822 $ – $ 980,339 $ 42,871 $ 1,358,032 North American North American Towables Motorized European Other Total Goodwill $ 343,935 $ 17,252 $ – $ 42,871 $ 404,058 Accumulated impairment charges (9,113 ) (17,252 ) – – (26,365 ) Net balance as of July 31, 2018 $ 334,822 $ – $ – $ 42,871 $ 377,693 |
EQUITY INVESTMENT
EQUITY INVESTMENT | 12 Months Ended |
Jul. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY INVESTMENT | 8. EQUITY INVESTMENT On February 15, 2018, the Company announced the formation of TH2Connect, LLC (“TH2”), a joint venture with Tourism Holdings Limited (“ thl The Company and thl each have a 50% ownership position in TH2 and equal representation on the board of directors of TH2. The Company contributed cash totaling $46,902 to TH2 in early March 2018 while thl thl thl thl The Company’s investment in TH 2 is accounted for under the equity method. The Company’s share of the gains or losses of this investment are included in Other income (expense), net, in the Consolidated Statements of Income and Comprehensive Income. Losses recognized during fiscal 2019 and fiscal 2018 were $8,798 and $1,939, respectively. |
CONCENTRATION OF RISK
CONCENTRATION OF RISK | 12 Months Ended |
Jul. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF RISK | 9. CONCENTRATION OF RISK One dealer, FreedomRoads, LLC, accounted for approximately 18.5% of the Company’s consolidated net sales in fiscal 2019 and approximately 20.0% in both fiscal 2018 and fiscal 2017. Sales to this dealer are reported within both the North American towables and North American motorized segments. This dealer also accounted for approximately 19% of the Company’s consolidated trade accounts receivable at July 31, 2019 and approximately 26% at July 31, 2018. The loss of this dealer could have a material effect on the Company’s business. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jul. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 10. FAIR VALUE MEASUREMENTS The Company assesses the inputs used to measure the fair value of certain assets and liabilities using a three-level hierarchy, as prescribed in ASC 820, “Fair Value Measurements and Disclosures,” as defined below: • Level 1 inputs include quoted prices in active markets for identical assets or liabilities and are the most observable. • Level 2 inputs include inputs other than Level 1 that are either directly or indirectly observable, such as quoted market prices for similar but not identical assets or liabilities, quoted prices in inactive markets or other inputs that can be corroborated by observable market data. • Level 3 inputs are not observable, are supported by little or no market activity and include management’s judgments about the assumptions market participants would use in pricing the asset or liability. The financial assets and liabilities that were accounted for at fair value on a recurring basis at July 31, 2019 and July 31, 2018 are as follows: Input Level July 31, 2019 July 31, 2018 Cash equivalents Level 1 $ 130,100 $ 230,319 Deferred compensation plan assets and liabilities Level 1 $ 53,828 $ 43,316 Interest rate swap liability Level 2 $ 12,463 $ – Cash equivalents represent investments in government and other money market funds traded in an active market, and are reported as a component of Cash and cash equivalents in the Consolidated Balance Sheets. Deferred compensation plan assets represent investments in securities (primarily mutual funds) traded in an active market held for the benefit of certain employees of the Company as part of a deferred compensation plan. Deferred compensation plan asset balances are recorded as a component of Other long-term assets in the 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 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 Consolidated Statements of Income and Comprehensive Income. The fair value of interest rate swaps is determined by discounting the estimated future cash flows based on the applicable observable yield curves. |
PRODUCT WARRANTY
PRODUCT WARRANTY | 12 Months Ended |
Jul. 31, 2019 | |
Guarantees and Product Warranties [Abstract] | |
PRODUCT WARRANTY | 11. PRODUCT WARRANTY The Company generally provides retail customers of its products with a one-year two-year Changes in our product warranty liabilities during the indicated periods are as follows: 2019 2018 2017 Beginning balance $ 264,928 $ 216,781 $ 201,840 Provision 233,927 259,845 195,799 Payments (251,071 ) (211,698 ) (180,858 ) Acquisition 43,329 – – Foreign currency translation (1,434 ) – – Ending balance $ 289,679 $ 264,928 $ 216,781 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Jul. 31, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | 12. LONG-TERM DEBT The components of long-term debt are as follows: July 31, 2019 July 31, 2018 Term loan $ 1,832,341 $ – Unsecured notes 27,878 – Other debt 94,124 – Total long-term debt 1,954,343 – Debt issuance costs, net of amortization (51,720 ) – Total long-term debt, net of debt issuance costs 1,902,623 – Less: current portion of long-term debt (17,370 ) – Total long-term debt, net, less current portion $ 1,885,253 $ – On February 1, 2019, the Company entered into a seven-year term loan (“term loan”) agreement, which consisted of both a United States dollar-denominated term loan tranche of $1,386,434 and a Euro-denominated term loan tranche of 617,718 Euro ($708,584 at closing date exchange rate) and a $750,000 asset-based credit facility (“ABL”). Subject to earlier termination, the term loan matures on February 1, 2026 and the ABL matures on February 1, 2024. Under the term loan, both the U.S. and Euro tranches required annual principal payments of 1.0% of the initial term loan balance, payable quarterly in 0.25% installments starting on May 1, 2019. As of July 31, 2019, however, we had made sufficient payments on the U.S. tranche to fulfill all annual payment requirements over the term of the loan. The interest rate on the U.S. portion of the term loan is an annual base rate plus 2.75%, or LIBOR plus 3.75%, and the interest rate on the Euro portion is at EURIBOR plus 4.00%, with interest on the U.S. base rate tranche payable quarterly, and interest on the U.S. LIBOR portion and the Euro tranche payable monthly. As of July 31, 2019, the entire U.S. term loan tranche balance of $ 1,146,968 1-month Availability under the ABL agreement is subject to a borrowing base based on a percentage of applicable eligible receivables and eligible inventory. The ABL carries interest at an annual base rate plus 0.25% to 0.75%, or LIBOR plus 1.25% to 1.75%, based on adjusted excess availability as defined in the ABL agreement. During fiscal 2019, $100,000 was drawn on the ABL in connection with the acquisition of EHG and was also paid in full in fiscal 2019, resulting in no borrowings outstanding on the ABL agreement as of July 31, 2019. This agreement also includes a 0.25% unused facility fee. The Company may, generally at its option, pay any borrowings under the ABL, in whole or in part, at any time and from time to time, without premium or penalty. The ABL contains a financial covenant which requires the Company to maintain a minimum consolidated fixed-charge coverage ratio of 1.0X, although the covenant is only applicable when adjusted excess availability falls below a threshold of the greater of a) 10% of the lesser of the borrowing base availability or the revolver line total, or b) $60,000. Up to $75,000 of the ABL is available for the issuance of letters of credit, and up to $75,000 is available for swingline loans. The Company may also increase commitments under the ABL by up to $150,000 by obtaining additional commitments from lenders and adhering to certain other conditions. The unused availability under the ABL is generally available to the Company for general operating purposes, and based on July 31, 2019 The unsecured notes of 25,000 Euro ($27,878) relate to long-term debt assumed at the closing of the acquisition of EHG. There are two series, 20,000 Euro ($22,302) with an interest rate of 1.945% maturing in March 2025, and 5,000 Euro ($5,576) with an interest rate of 2.534% maturing February 2028. Other debt relates primarily to real estate loans with varying maturity dates through September 2032 and interest rates ranging from 1.40% - 3.43%. The Company considers cash that is pledged as collateral against certain revolving debt obligations within its European rental fleet obligations to be restricted cash. Total contractual debt maturities are as follows: For the fiscal year ending July 31, 2020 $ 18,826 For the fiscal year ending July 31, 2021 19,549 For the fiscal year ending July 31, 2022 18,264 For the fiscal year ending July 31, 2023 18,382 For the fiscal year ending July 31, 2024 18,463 For the fiscal year ending July 31, 2025 and thereafter 1,860,859 $ 1,954,343 For fiscal 2019, interest expense on the term loan and ABL was $56,932. The Company incurred fees totaling $56,166 and $14,010 to secure the term loan and ABL, respectively, and those amounts are being amortized ratably over the respective seven and five-year terms of those agreements. The Company recorded total charges related to the amortization of these term loan and ABL fees, which are included in interest expense, of $5,404 for fiscal 2019. The unamortized balance of the ABL facility fees was $12,609 at July 31, 2019 and is included in Other long-term assets in the Consolidated Balance Sheets. For fiscal 2018 and 2017, interest expense on the Company’s previous asset-based credit agreement discussed below was $1,939 and $7,002, respectively. Interest expense for fiscal 2019 also includes $785 of amortization expense of capitalized debt fees related to the Company’s previous asset-based credit agreement that was terminated on February 1, 2019 with the new financing obtained with the EHG acquisition. Interest expense for fiscal 2018 and 2017 included $1,570 of amortization of debt issuance costs related to the Company’s previous asset-based credit agreement. The carrying value of the Company’s long-term debt, excluding debt issuance costs, approximates fair value at July 31, 2019 as the balance is subject to variable market interest rates that the Company believes are market rates for a similarly situated company. The fair value of the Company’s debt is largely estimated using Level 2 inputs as defined by ASC 820 and discussed in Note 10 to the Consolidated Financial Statements. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 13. INCOME TAXES The sources of earnings before income taxes are as follows: For the Fiscal Year Ended July 31, 2019 2018 2017 United States $ 200,859 $ 633,029 $ 556,386 Foreign (16,193 ) – – Total $ 184,666 $ 633,029 $ 556,386 The components of the provision (benefit) for income taxes are as follows: For the Fiscal Year Ended July 31, Income Taxes: 2019 2018 2017 U.S. Federal $ 48,757 $ 166,402 $ 200,370 U.S. state and local 5,921 21,025 20,941 Foreign 6,611 Total current expense 61,289 187,427 221,311 U.S. Federal 10,862 17,820 (37,033 ) U.S. state and local (36 ) (2,369 ) (2,146 ) Foreign (19,914 ) – – Total deferred expense (benefit) (9,088 ) 15,451 (39,179 ) Total income tax expense $ 52,201 $ 202,878 $ 182,132 The Tax Act was signed into law on December 22, 2017. Under the Tax Act, the federal corporate income tax rate has been reduced from 35.0% to 21.0% starting January 1, 2018, which resulted in the use of a blended federal corporate income tax rate of 26.9% for the Company’s 2018 fiscal year. The reduced rate of 21% is applicable to the entire fiscal 2019 year. As a result of other Tax Act changes, the Company’s income tax rate for fiscal 2019 was impacted by, among other items, the repeal of the domestic production activities favorable tax benefit of the Foreign Derived Intangible Income (“FDII”) provision and limitations on the deductibility of executive compensation. The Tax Act also included substantial changes to the taxation of foreign income which are applicable to the Company as a result of the acquisition of . The GILTI provision may also prospectively impact the Company’s income tax expense. Under the GILTI provision, a portion of the company’s foreign earnings may be subject to U.S. taxation, offset by available foreign tax credits, subject to limitation. For fiscal 2019, The SEC staff issued SAB 118, which provides guidance on accounting for the tax effects of the Tax Act for which the accounting under ASC 740 is incomplete. The rules allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. Accordingly, as of July 31, 2018, the Company recorded a provisional amount of $34,000 of additional deferred income tax expense related to the remeasurement The differences between income tax expense at the federal statutory rate and the actual income tax expense are as follows: For the Fiscal Year Ended July 31, 2019 2018 2017 Provision at federal statutory rate $ 38,779 $ 170,095 $ 194,735 Differences between U.S. federal statutory and foreign tax rates 1,478 U.S. state and local income taxes, net of federal benefit 4,642 14,255 11,021 Nondeductible compensation 2,401 – – Nondeductible acquisition costs 3,031 – – Nondeductible foreign currency forward contract loss on acquisition 14,863 – – Nontaxable foreign currency remeasurement gains (12,942 ) Federal income tax credits and incentives (3,373 ) (3,518 ) (3,228 ) Domestic production activities deduction – (16,175 ) (19,527 ) Change in uncertain tax positions 1,279 396 375 Effect of the U.S. Tax Act – 38,620 – Other 2,043 (795 ) (1,244 ) Total income tax expense $ 52,201 $ 202,878 $ 182,132 A summary of the deferred income tax balances is as follows: July 31, 2019 2018 Deferred income tax asset (liability): Inventory basis $ 807 $ 922 Employee benefits 5,272 3,427 Self-insurance reserves 5,185 6,368 Accrued product warranties 62,563 62,332 Accrued incentives 6,144 5,235 Sales returns and allowances 1,516 1,741 Accrued expenses 3,617 1,905 Property, plant and equipment (22,699 ) (9,060 ) Deferred compensation 15,247 12,864 Intangibles (143,861 ) (9,151 ) Net operating loss and other carryforwards 15,725 – Unrealized gain/loss (4,546 ) – Unrecognized tax benefits 2,689 2,581 Other 2,759 (720 ) Valuation allowance (12,945 ) $ – Deferred income tax asset (liability), net $ (62,527 ) $ 78,444 Total deferred tax assets and deferred tax liabilities at July 31, 2019 and 2018 are as follows: July 31, 2019 2018 Deferred tax assets $ 273,273 $ 97,375 Deferred tax liabilities (322,855 ) (18,931 ) Valuation allowance (12,945 ) – Net deferred tax assets / (liabilities) $ (62,527 ) $ 78,444 The deferred tax assets are reduced by a valuation allowance if, based upon available evidence, it is more likely than not that some, or all, of the deferred tax assets will not be realized. The valuation allowance recorded at July 31, 2019 relates to certain foreign net operating loss carry forwards and other assets in foreign jurisdictions. The Company has made an accounting policy election to treat income tax expense incurred due to the GILTI provision as a current year tax expense in the period in which a related income tax liability is incurred. For fiscal 2019, With the exception of foreign subsidiary investment basis differences not attributable to un-repatriated As of July 31, 2019, the Company has $3,162 of U.S. state tax credit carry forwards that expire from fiscal 2026-2029 of which the Company expects to realize prior to expiration. In addition, the Company has $4,811 of gross U.S. state tax NOL carryforwards that expire from fiscal 2020-2039 that the Company does not expect to realize and therefore has been fully reserved. The deferred tax asset of $299 associated with the U.S. state tax NOL carryforwards and the related equal and offsetting valuation allowance are not reflected in the table above. Unrecognized Tax Benefits The benefits of tax positions reflected on income tax returns but whose outcome remains uncertain are only recognized for financial accounting purposes if they meet minimum recognition thresholds. The total amount of unrecognized tax benefits that, if recognized, would have impacted the Company’s effective tax rate were $11,332 for fiscal 2019, $10,491 for fiscal 2018 and $8,477 for fiscal 2017. Changes in the unrecognized tax benefit during fiscal years 2019, 2018 and 2017 were as follows: 2019 2018 2017 Beginning balance $ 13,004 $ 12,671 $ 13,269 Tax positions related to prior years: Additions – 353 75 Reductions (263 ) (2,203 ) (1,510 ) Tax positions related to current year: Additions 2,062 3,629 3,853 Settlements (773 ) (192 ) (1,450 ) Lapses in statute of limitations (918 ) (1,254 ) (1,566 ) Tax positions acquired from EHG 736 – – Ending balance $ 13,848 $ 13,004 $ 12,671 It is the Company’s policy to recognize interest and penalties accrued relative to unrecognized tax benefits in income tax expense. The total amount of liabilities accrued for interest and penalties related to unrecognized tax benefits as of July 31, 2019 and 2018 were $1,758 and $1,290, respectively. The total amount of interest and penalties expense (benefit) recognized in the Consolidated Statements of Income and Comprehensive Income for the fiscal years ended July 31, 2019, 2018 and 2017 were $454, $203 and $(218), respectively. The total unrecognized tax benefits above, along with the related accrued interest and penalties, are reported within the liability section of the Consolidated Balance Sheets. A portion of the unrecognized tax benefits is classified as short-term and is included in the “Income and other taxes” line of the Consolidated Balance Sheets, while the remainder is classified as a long-term liability. The components of total unrecognized tax benefits are summarized as follows: July 31, 2019 2018 Unrecognized tax benefits $ 13,848 $ 13,004 Reduction to unrecognized tax benefits which offset tax credit and loss carryforwards (1,916 ) (955 ) Accrued interest and penalties 1,758 1,290 Total unrecognized tax benefits $ 13,690 $ 13,339 Short-term, included in “Income and other taxes” $ 2,891 $ 893 Long-term 10,799 12,446 Total unrecognized tax benefits $ 13,690 $ 13,339 The Company anticipates a decrease of approximately $3,800 in unrecognized tax benefits and $850 in interest during fiscal 2020 from expected settlements or payments of uncertain tax positions and lapses of the applicable statutes of limitations. Actual results may differ from these estimates. The Company files income tax returns in the U.S. federal jurisdiction and in many U.S. state and foreign jurisdictions. The Company is currently under exam by certain U.S. state tax authorities for the fiscal years ended July 31, 2015 through 2017. The Company believes it has adequately reserved for its exposure to additional payments for uncertain tax positions in its liability for unrecognized tax benefits. The major tax jurisdictions we file in, with the years still subject to income tax examinations, are listed below: Major Tax Jurisdiction Tax Years Subject to Exam United States – Federal Fiscal 2016 – Fiscal 2018 United States – State Fiscal 2016 – Fiscal 2018 Germany Fiscal 2016 – Fiscal 2018 France Fiscal 2016 – Fiscal 2018 Italy Fiscal 2015 – Fiscal 2018 United Kingdom Fiscal 2018 |
CONTINGENT LIABILITIES AND COMM
CONTINGENT LIABILITIES AND COMMITMENTS | 12 Months Ended |
Jul. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENT LIABILITIES AND COMMITMENTS | 14. CONTINGENT LIABILITIES AND COMMITMENTS The Company is contingently liable under terms of repurchase agreements with financial institutions providing inventory financing for certain independent dealers of certain of its RV products. These arrangements, which are customary in the RV industry, provide for the repurchase of products sold to dealers in the event of default by the dealer on their agreement to pay the financial institution. The repurchase price is generally determined by the original sales price of the product and predefined 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, the Company 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 historically 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 July 31, 2019 and July 31, 2018 were $2,961,019 and $2,748,465, respectively, with the July 31, 2019 balance including $755,852 related to EHG. The commitment term is generally 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 $9,575 and $7,400 as of July 31, 2019 and July 31, 2018, respectively, which are included in Other current liabilities in the Consolidated Balance Sheets. Losses incurred related to repurchase agreements that were settled in the past three fiscal years were not material. Based on current market conditions, 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. Legal Matters The Company is 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. |
LEASES
LEASES | 12 Months Ended |
Jul. 31, 2019 | |
Leases [Abstract] | |
LEASES | 15. LEASES The Company has operating leases principally for land, buildings and equipment and also leases certain real estate and transportation equipment under various capital leases expiring between 2019 and 2028. Future minimum rental payments required under capital and operating leases as of July 31, 2019 are as follows: Capital Leases Operating Leases For the fiscal year ending July 31, 2020 $ 974 $ 8,785 For the fiscal year ending July 31, 2021 993 6,809 For the fiscal year ending July 31, 2022 1,015 5,437 For the fiscal year ending July 31, 2023 1,037 3,980 For the fiscal year ending July 31, 2024 1,061 3,424 For the fiscal year ending July 31, 2025 and thereafter 3,037 20,745 Total minimum lease payments 8,117 $ 49,180 Less amount representing interest (2,427 ) Present value of net minimum capital lease payments 5,690 Less current portion (444 ) Long-term capital lease obligations $ 5,246 The current portion of capital lease obligations are included in Other current liabilities and the long-term capital lease obligations are included in Other long-term liabilities, respectively, in the Consolidated Balance Sheets. Rent expense for the fiscal years ended July 31, 2019, 2018 and 2017 was $8,825, $3,804 and $3,560, respectively, |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Jul. 31, 2019 | |
Postemployment Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | 16. EMPLOYEE BENEFIT PLANS Substantially all non-highly The Company has established a deferred compensation plan for highly compensated U.S. employees who are not eligible to participate in a 401(k) plan. This plan allows participants to defer a portion of their compensation and to direct the Company to invest the funds in mutual fund investments held by the Company. Participant benefits are limited to the value of the investments held on their behalf. Investments held by the Company are accounted for at fair value and reported as Other long-term assets, and the equal and offsetting obligation to the participants is reported as Other long-term liabilities in the Consolidated Balance Sheets. Changes in the fair value of the plan assets and the related deferred liability are both recorded through the Consolidated Statements of Income and Comprehensive Income. The Company does not make contributions to the plan. The balance of investments held in this plan, and the equal and offsetting long-term liability to the participants, was $53,828 at July 31, 2019 and $43,316 at July 31, 2018. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Jul. 31, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | 17. STOCKHOLDERS’ EQUITY Stock-Based Compensation The Board approved the Thor Industries, Inc. 2016 Equity and Incentive Plan (the “2016 Equity and Incentive Plan”) on October 11, 2016 and the 2010 Equity Incentive Plan (the “2010 Equity Incentive Plan”) on October 25, 2010. These plans were subsequently approved by shareholders at the 2016 and 2010 annual meetings, respectively. The maximum number of shares issuable under each of the 2016 Equity and Incentive Plan and the 2010 Equity and Incentive Plan is 2,000,000. As of July 31, 2019, the remaining shares available to be granted under the 2016 Equity and Incentive Plan are 1,378,729 and under the 2010 Equity Incentive Plan are 1,211,385. Awards may be in the form of options (incentive stock options and n on-statutory Restricted stock award activity and the related expense under the 2010 Equity and Incentive Plan was immaterial for all periods presented. During fiscal 2013, the Compensation and Development Committee of the Board (the “Committee”) approved a program to award restricted stock units (the “RSU program”) to certain employees at the operating subsidiary and corporate levels. In December 2016, the stockholders of the Company approved a new equity compensation plan that allows the RSU program to continue in subsequent years on similar terms, but now includes a double-trigger change in control provision. The double-trigger provision, which is applicable to awards granted in fiscal 2017 and subsequent years, stipulates that immediate vesting of an outstanding grant would occur only upon the occurrence of both a change in control, as defined by the plan, and a corresponding change in employment status. Under the RSU program, the Committee generally approves awards each October related to the financial performance of the most recently completed fiscal year. The awarded employee restricted stock units vest, and shares of common stock are issued, in equal installments on the first, second and third anniversaries of the date of grant. In addition, concurrent with the timing of the employee awards, the Nominating and Governance Committee of the Board has 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. The fair value of the employee and Board member restricted stock units is determined using the Company’s stock price on the date of grant. Total expense recognized in fiscal 2019, 2018 and 2017 for these restricted stock unit awards was $18,950, $17,000 and $12,399, respectively. A summary of restricted stock unit activity during fiscal 2019, 2018 and 2017 is included below: 2019 2018 2017 Restricted Stock Units Weighted- Average Grant Date Fair Value Restricted Stock Units Weighted- Date Fair Value Restricted Stock Units Weighted- Date Fair Value Nonvested, beginning of year 328,431 $ 101.97 332,576 $ 69.41 325,136 $ 53.95 Granted 310,924 79.12 171,340 124.84 166,567 84.85 Vested (167,591 ) 90.23 (168,714 ) 64.01 (157,315 ) 53.87 Forfeited (20,201 ) 91.11 (6,771 ) 93.46 (1,812 ) 64.03 Nonvested, end of year 451,563 $ 91.08 328,431 $ 101.97 332,576 $ 69.41 At July 31, 2019 there was $18,918 of total unrecognized compensation costs related to restricted stock unit awards that are expected to be recognized over a weighted-average period of 1.81 years. The Company recognized a tax benefit related to total stock-based compensation expense of $4,550, $4,930 and $4,625 in fiscal 2019, 2018 and 2017, respectively. Share Repurchase Program On June 19, 2018, the Company’s Board of Directors authorized Company management to utilize up to $250,000 to purchase shares of the Company’s common stock through June 19, 2020. Under the share repurchase plan, the Company is authorized to repurchase, from time-to-time, There were no repurchases under this program during fiscal 2019 or 2018. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Jul. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | 18. REVENUE RECOGNITION The table below disaggregates revenue to the level that the Company believes best depicts how the nature, amount, timing and uncertainty of the Company’s revenue and cash flows are affected by economic factors. Other R V-related 2019 2018 2017 NET SALES: Recreational vehicles North American Towables Travel Trailers and Other $ 2,710,308 $ 3,646,581 $ 3,088,561 Fifth Wheels 1,848,143 2,362,119 2,038,930 Total North American Towables 4,558,451 6,008,700 5,127,491 North American Motorized Class A 761,176 1,000,881 914,681 Class C 824,449 1,047,376 968,899 Class B 63,704 98,058 87,886 Total North American Motorized 1,649,329 2,146,315 1,971,466 Total North America 6,207,780 8,155,015 7,098,957 European Motorcaravan 960,155 – – Campervan 201,089 – – Caravan 172,144 – – Other RV-related 153,590 – – Total European 1,486,978 – – Total recreational vehicles 7,694,758 8,155,015 7,098,957 Other, primarily aluminum extruded components 263,374 305,947 253,557 Intercompany eliminations (93,374 ) (132,053 ) (105,562 ) Total $ 7,864,758 $ 8,328,909 $ 7,246,952 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Jul. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 19. ACCUMULATED OTHER COMPREHENSIVE LOSS INCOME (LOSS) The components of other comprehensive income (loss) (“OCI”) and the changes in the Company’s accumulated OCI (“AOCI”) by component for the fiscal year ended July 31, 2019 were as follows (The Company did not have any OCI or AOCI prior to fiscal 2019): 2019 Foreign Currency Unrealized Translation Gain (Loss) on Adjustment Derivatives Other Total Balance at beginning of period $ – $ – $ – $ – OCI before reclassifications (44,684 ) (12,184 ) (1,048 ) (57,916 ) Income taxes associated with OCI before reclassifications (1) (2,394 ) 2,917 – 523 Amounts reclassified from AOCI – (279 ) – (279 ) Income taxes associated with amounts reclassified from AOCI – 74 – 74 AOCI, net of tax (47,078 ) (9,472 ) (1,048 ) (57,598 ) Less: OCI attributable to non-controlling interest (594 ) – – (594 ) AOCI, net of tax attributable to Thor Industries, Inc. $ (46,484 ) $ (9,472 ) $ (1,048 ) $ (57,004 ) (1) We do not recognize deferred taxes for a majority of the foreign currency translation gains and losses because we do not anticipate reversal in the foreseeable future. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations or “Thor”), that, combined, represent the world’s largest manufacturer of recreational vehicles by units and revenue. The Company manufactures a wide variety of RVs in the United States and Europe and sells those vehicles, as well as related parts and accessories, primarily to independent, non-franchise dealers throughout the United States, Canada and Europe. As discussed in more detail in Note 2 to the Consolidated Financial Statements, on February 1, 2019, the Company acquired Erwin Hymer Group SE, one of the largest RV manufacturers in Europe. Unless the context requires or indicates otherwise, all references to “Thor,” the “Company,” “we,” “our” and “us” refer to Thor Industries, Inc. and its subsidiaries. The Company’s business activities are primarily comprised of three distinct operations, which include the design, manufacture and sale of North American towable recreational vehicles, North American motorized recreational vehicles and European recreational vehicles, with the European vehicles including both towable and motorized products as well as other RV-related products and services. Accordingly, the Company has presented segment financial information for these segments in Note 3 to the Consolidated Financial Statements. |
Principles of Consolidation | Principles of Consolidation |
Estimates | Estimates non-product |
Cash and Cash Equivalents | Cash and Cash Equivalents – Interest-bearing deposits and other investments with maturities of three months or less when purchased are considered cash equivalents. At July 31, 2019 and 2018, cash and cash equivalents of $148,488 and $254,701, respectively, were held by one U.S. financial institution. In addition, at July 31, 2019, cash and cash equivalents of $61,057 were held by another U.S. financial institution, and the equivalent of $115,168 and $39,254 was held in Euros at two different European financial institutions, respectively. |
Derivatives | Derivatives |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Inventories | Inventories last-in, first-out first-in, first-out freight-in |
Depreciation | Depreciation Buildings and improvements – 10 to 39 years Machinery and equipment – 3 to 10 years Rental vehicles – 6 years Depreciation expense is recorded in cost of products sold, except for $8,350, $5,035 and $5,710 in fiscal 2019, 2018 and 2017, respectively, which relates primarily to office buildings and office equipment and is recorded in selling, general and administrative expenses. |
Business Combinations | Business Combinations The Company accounts for the acquisition of a business using the acquisition method of accounting. Assets acquired and liabilities assumed, including amounts attributed to noncontrolling interests, are recorded at the acquisition date at their fair values. Assigning fair values requires the Company to make significant estimates and assumptions regarding the fair value of identifiable intangible assets, property, plant and equipment, deferred tax asset valuation allowances, and liabilities, such as uncertain tax positions and contingencies. The Company may refine these estimates if necessary over a period not to exceed one year by taking into consideration new information that, if known at the acquisition date, would have affected the fair values ascribed to the assets acquired and liabilities assumed. Significant estimates and assumptions are used in estimating the value of acquired identifiable intangible assets, including estimating future cash flows based on revenues and margins that the Company expects to generate following the acquisition, selecting an applicable royalty rate where needed, applying an appropriate discount rate to estimate a present value of those cash flows and determining their useful lives. Subsequent changes to projections driven by actual results following the acquisition date could require the Company to record impairment charges. |
Goodwill | Goodwill For goodwill impairment testing purposes, the Company’s reporting units are generally the same as its operating segments, which are identified in Note 3 to the Consolidated Financial Statements. |
Long-lived and Intangible Assets | Long-lived and Intangible Assets non-compete non-compete |
Product Warranties | Product Warranties |
Factored Accounts Receivable | Factored Accounts Receivable |
Insurance Reserves | Insurance Reserves |
Revenue Recognition | Revenue Recognition For recreational vehicle sales, the Company recognizes revenue when all performance obligations have been satisfied and control of the product is transferred to the dealer in accordance with shipping terms. Shipping terms vary depending on regional contracting practices. U.S. customers primarily contract under FOB shipping point terms. European customers generally contract on ExWorks (“EXW”) incoterms (meaning the seller fulfills its obligation to deliver when it makes goods available at its premises, or another specified location, for the buyer to collect). Under EXW incoterms, the performance obligation is satisfied and control is transferred at the point when the customer is notified that the vehicle is available for pickup. Customers do not have a right of return. All warranties provided are assurance-type warranties. In addition to recreational vehicle sales, the Company’s European recreational vehicle reportable segment sells accessory items and provides repair services through our owned dealerships. Each ordered item represents a distinct performance obligation satisfied when control of the good is transferred to the customer. Service and repair contracts with customers are short term in nature and are recognized when the service is complete. Revenue is measured as the amount of consideration to which the Company expects to be entitled in exchange for the Company’s products and services. The amount of revenue recognized includes adjustments for any variable consideration, such as sales discounts, sales allowances, promotions, rebates and other sales incentives which are included in the transaction price and allocated to each performance obligation based on the standalone selling price. The Company estimates variable consideration based on the expected value of total consideration to which customers are likely to be entitled to based primarily on historical experience and current market conditions. Included in the estimate is an assessment as to whether any variable consideration is constrained. Revenue estimates are adjusted at the earlier of a change in the expected value of consideration or when the consideration becomes fixed. During fiscal 2019, adjustments to revenue from performance obligations satisfied in prior periods, which relate primarily to changes in estimated variable consideration, were immaterial. Amounts billed to customers related to shipping and handling activities are included in net sales. The Company has elected to account for shipping and handling costs as fulfillment activities, and these costs are included in cost of sales. We do not disclose information about the transaction price allocated to the remaining performance obligations at period end because our contracts generally have original expected durations of one year or less. In addition, we expense when incurred contract acquisition costs, primarily sales commissions, because the amortization period, which is aligned with the contract term, is one year or less. |
Advertising Costs | Advertising Costs |
Foreign Currency | Foreign Currency |
Repurchase Agreements | Repurchase Agreements |
Income Taxes | Income Taxes The Company recognizes liabilities for uncertain tax positions based on a two-step Significant judgment is required in determining the Company’s provision for income taxes, the Company’s deferred tax assets and liabilities and the valuation allowance recorded against the Company’s deferred tax assets. Valuation allowances must be considered due to the uncertainty of realizing deferred tax assets. The Company assesses whether valuation allowances should be established against our deferred tax assets on a tax jurisdictional basis based on the consideration of all available evidence, including cumulative income over recent periods, using a more likely than not standard. |
Research and Development | Research and Development |
Stock-Based Compensation | Stock-Based Compensation |
Earnings Per Share | Earnings Per Share The difference between basic EPS and diluted EPS is the result of unvested restricted stock units and restricted stock as follows: 2019 2018 2017 Weighted-average shares outstanding for basic earnings per share 53,905,667 52,674,161 52,562,723 Unvested restricted stock and restricted stock units 121,019 179,199 195,719 Weighted-average shares outstanding assuming dilution 54,026,686 52,853,360 52,758,442 The Company excludes unvested restricted stock units and restricted stock that have an antidilutive effect from its calculation of weighted-average shares outstanding assuming dilution, which totaled 233,395 |
Accounting Pronouncements | Accounting Pronouncements Recently Adopted Accounting Standards Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, The Company adopted ASU No. 2014-09, pre-tax The adoption impact is a result of a change in the accounting for certain sales incentives, which were historically recorded as a reduction of revenue at the later of the time products were sold or the date the incentive was offered. Upon adoption of ASU No. 2014-09, |
Derivatives and Hedging | Derivatives and Hedging In August 2017, the FASB issued Accounting Standards Update No. 2017-12 2017-12) 2017-12 2017-12 2017-12 |
Other Accounting Standards Not Yet Adopted | Other Accounting Standards Not Yet Adopted In January 2017, the FASB issued ASU No. 2017-04, In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” and has subsequently issued ASU’s 2018-10, “Codification Improvements (Topic 842),” and 2018-11, “Targeted Improvements (Topic 842)” (collectively the “New Leasing Standard”), which provide guidance on the recognition, measurement, presentation, and disclosure of leases. The New Leasing Standard requires the recognition of lease assets and lease liabilities by lessees for all leases with terms greater than 12 months. The principal difference from current guidance is that the lease assets and lease liabilities arising from operating leases will be recognized on the Consolidated Balance Sheet. The New Leasing Standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The New Leasing Standard is effective for the Company in its fiscal year 2020 beginning on August 1, 2019. The Company plans to elect the optional transition method as well as the available package of practical expedients upon adoption. As a result of this planned election, the Company will recognize a cumulative-effect adjustment to retained earnings as of the August 1, 2019 date of adoption and will not restate its consolidated financial statements. The Company anticipates the adoption of this ASU will result in the recognition of approximately $ million to $ million in right-of-use assets and the associated lease obligations on the Consolidated Balance Sheets and will not materially impact the Consolidated Statements of Income and Comprehensive Income. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Difference Between Basic and Diluted EPS as Result of Restricted Stock Units and Unvested Restricted Stock | The difference between basic EPS and diluted EPS is the result of unvested restricted stock units and restricted stock as follows: 2019 2018 2017 Weighted-average shares outstanding for basic earnings per share 53,905,667 52,674,161 52,562,723 Unvested restricted stock and restricted stock units 121,019 179,199 195,719 Weighted-average shares outstanding assuming dilution 54,026,686 52,853,360 52,758,442 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The Company expects to finalize these values as soon as practical and no later than one year from the acquisition date. Cash $ 97,887 Inventory 593,053 Other assets 429,150 Property, plant and equipment, rental vehicles 80,132 Property, plant and equipment 447,621 Amortizable intangible assets: Dealer network 355,601 Trademarks 126,181 Technology assets 183,536 Backlog 11,471 Goodwill 1,008,472 Guarantee liabilities related to former EHG North American subsidiaries (115,668 ) Other current liabilities (850,623 ) Debt—Unsecured notes (114,710 ) Debt—Other (166,196 ) Deferred income tax liabilities (155,863 ) Other long-term liabilities (17,205 ) Non-controlling (12,207 ) Total fair value of net assets acquired 1,900,632 Less: cash acquired (97,887 ) Total fair value of net assets acquired, less cash acquired $ 1,802,745 |
Business Acquisition, Pro Forma Information | The following unaudited pro forma information represents the Company’s results of operations as if the fiscal 2019 acquisition of EHG had occurred at the beginning of fiscal 2018. The disclosure of pro forma net sales and earnings does not purport to indicate the results that would actually have been obtained had the acquisition been completed on the assumed date for the periods presented, or which may be realized in the future. The unaudited pro forma information does not reflect any operating efficiencies or cost savings that may be realized from the integration of the acquisition. Fiscal 2019 Fiscal 2018 Net sales $ 9,067,750 $ 11,175,302 Net income $ 143,517 $ 305,101 Basic earnings per common share $ 2.66 $ 5.55 Diluted earnings per common share $ 2.66 $ 5.54 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | 2019 2018 2017 NET SALES: Recreational vehicles North American Towables $ 4,558,451 $ 6,008,700 $ 5,127,491 North American Motorized 1,649,329 2,146,315 1,971,466 Total North America 6,207,780 8,155,015 7,098,957 European 1,486,978 – – Total recreational vehicles 7,694,758 8,155,015 7,098,957 Other 263,374 305,947 253,557 Intercompany eliminations (93,374 ) (132,053 ) (105,562 ) Total $ 7,864,758 $ 8,328,909 $ 7,246,952 INCOME (LOSS) BEFORE INCOME TAXES: Recreational vehicles North American Towables $ 322,228 $ 532,657 $ 458,915 North American Motorized 80,910 134,785 125,323 Total North America 403,138 667,442 584,238 European (5,946 ) – – Total recreational vehicles 397,192 667,442 584,238 Other, net 29,086 32,667 28,714 Corporate (241,612 ) (67,080 ) (56,566 ) Total $ 184,666 $ 633,029 $ 556,386 TOTAL ASSETS: Recreational vehicles North American Towables $ 1,516,519 $ 1,654,361 $ 1,535,029 North American Motorized 446,626 492,830 500,761 Total North America 1,963,145 2,147,191 2,035,790 European 3,077,804 – – Total recreational vehicles 5,040,949 2,147,191 2,035,790 Other, net 163,897 167,965 156,996 Corporate 455,600 463,509 365,145 Total $ 5,660,446 $ 2,778,665 $ 2,557,931 DEPRECIATION AND INTANGIBLE AMORTIZATION EXPENSE: Recreational vehicles North American Towables $ 67,751 $ 68,964 $ 75,568 North American Motorized 13,831 11,800 9,393 Total North America 81,582 80,764 84,961 European 54,881 – – Total recreational vehicles 136,463 80,764 84,961 Other 10,647 10,861 11,967 Corporate 1,667 1,598 1,330 Total $ 148,777 $ 93,223 $ 98,258 CAPITAL ACQUISITIONS: Recreational vehicles North American Towables $ 69,321 $ 85,304 $ 72,801 North American Motorized 17,179 34,660 41,677 Total North America 86,500 119,964 114,478 European 35,653 – – Total recreational vehicles 122,153 119,964 114,478 Other 3,493 8,440 1,157 Corporate 1,599 8,902 2,120 Total $ 127,245 $ 137,306 $ 117,755 DESTINATION OF NET SALES BY GEOGRAPHIC REGION: United States $ 5,803,373 $ 7,540,015 $ 6,618,874 Germany 836,151 1,687 1,138 Other Europe 636,105 4,358 1,504 Canada 561,172 776,068 614,528 Other foreign 27,957 6,781 10,908 Total $ 7,864,758 $ 8,328,909 $ 7,246,952 PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC REGION: United States $ 569,641 $ 522,054 $ 425,238 Germany 424,333 – – Other Europe 92,553 – – Other 5,944 – – Total $ 1,092,471 $ 522,054 $ 425,238 |
DERIVATIVES AND HEDGING (Tables
DERIVATIVES AND HEDGING (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Investments, All Other Investments [Abstract] | |
Schedule of Derivative Instruments | July 31, 2019 Fair Value in Other Current Cash Flow Hedges Notional Liabilities Interest rate swap agreements 849,550 12,463 Total derivative financial instruments $ 849,550 $ 12,463 |
Derivative Instruments, Gain (Loss) | The total amounts presented in the Consolidated Statements of Income and Comprehensive Income due to changes in the fair value of the following derivative instruments for the fiscal years ended July 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 Gain (Loss) on Derivatives Designated as Cash Flow Hedges Gain (Loss) recognized in Other Comprehensive Income, net of tax Foreign currency forward contracts $ 129 $ – $ – Interest rate swap agreements (9,396 ) – – Total gain (loss) $ (9,267 ) $ – $ – 2019 Acquisition- Interest Sales Related Costs Expense Gain (Loss) Reclassified from AOCI, Net of Tax Foreign currency forward contracts $ 129 $ – $ – Interest rate swap agreements – – 76 Gain (Loss) on Derivatives Not Designated as Hedging Instruments Amount of gain (loss) recognized in income, net of tax Foreign currency forward contracts – (70,777 ) – Interest rate swap agreements – – (438 ) Total gain (loss) $ 129 $ (70,777 ) $ (362 ) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Major Classifications of Inventories | Major classifications of inventories are as follows: July 31, 2019 July 31, 2018 Finished goods—RV $ 230,483 $ 44,998 Finished goods—other 60,593 35,320 Work in process 126,636 124,703 Raw materials 300,721 258,429 Chassis 155,099 116,308 Subtotal 873,532 579,758 Excess of FIFO costs over LIFO costs (45,544 ) (41,849 ) Total inventories, net $ 827,988 $ 537,909 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment is stated at cost, net of accumulated depreciation, and consists of the following: July 31, 2019 July 31, 2018 Land $ 142,475 $ 57,413 Buildings and improvements 742,736 468,824 Machinery and equipment 389,666 197,294 Rental vehicles 87,243 – Total cost 1,362,120 723,531 Less accumulated depreciation (269,649 ) (201,477 ) Property, plant and equipment, net $ 1,092,471 $ 522,054 |
INTANGIBLE ASSETS, GOODWILL A_2
INTANGIBLE ASSETS, GOODWILL AND LONG-LIVED ASSETS (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Amortizable Intangible Assets | The components of amortizable intangible assets are as follows: July 31, 2019 July 31, 2018 Weighted-Average Remaining Life in Years Accumulated Accumulated at July 31, 2019 Cost Amortization Cost Amortization Dealer networks/customer relationships 18 $ 750,641 $ 191,017 $ 404,960 $ 147,077 Trademarks 18 268,778 34,518 146,117 24,364 Design technology and other intangibles 9 196,616 19,689 18,200 9,555 Non-compete – 450 450 450 383 Total amortizable intangible assets $ 1,216,485 $ 245,674 $ 569,727 $ 181,379 |
Estimated Amortization Expense | Estimated annual amortization expense is as follows: For the fiscal year ending July 31, 2020 $ 97,337 For the fiscal year ending July 31, 2021 103,968 For the fiscal year ending July 31, 2022 107,530 For the fiscal year ending July 31, 2023 88,051 For the fiscal year ending July 31, 2024 79,588 For the fiscal year ending July 31, 2025 and thereafter 494,337 $ 970,811 |
Changes in Carrying Amount of Goodwill by Reportable Segment | Changes in the carrying amount of goodwill by reportable segment as of July 31, 2019 and 2018 are summarized as follows: North American North American Towables Motorized European Other Total Net balance as of July 31, 2017 $ 334,822 $ – $ – $ 42,871 $ 377,693 Fiscal year 2018 activity: No activity – – – – – Net balance as of July 31, 2018 $ 334,822 $ – $ – $ 42,871 $ 377,693 Goodwill acquired – – 1,008,472 – 1,008,472 Foreign currency translation – – (28,133 ) – (28,133 ) Net balance as of July 31, 2019 $ 334,822 $ – $ 980,339 $ 42,871 $ 1,358,032 The components of the goodwill balances as of July 31, 2019 and July 31, 2018 are summarized as follows: North American North American Towables Motorized European Other Total Goodwill $ 343,935 $ 17,252 $ 980,339 $ 42,871 $ 1,384,397 Accumulated impairment charges (9,113 ) (17,252 ) – – (26,365 ) Net balance as of July 31, 2019 $ 334,822 $ – $ 980,339 $ 42,871 $ 1,358,032 North American North American Towables Motorized European Other Total Goodwill $ 343,935 $ 17,252 $ – $ 42,871 $ 404,058 Accumulated impairment charges (9,113 ) (17,252 ) – – (26,365 ) Net balance as of July 31, 2018 $ 334,822 $ – $ – $ 42,871 $ 377,693 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets Measured on Recurring Basis | The financial assets and liabilities that were accounted for at fair value on a recurring basis at July 31, 2019 and July 31, 2018 are as follows: Input Level July 31, 2019 July 31, 2018 Cash equivalents Level 1 $ 130,100 $ 230,319 Deferred compensation plan assets and liabilities Level 1 $ 53,828 $ 43,316 Interest rate swap liability Level 2 $ 12,463 $ – |
PRODUCT WARRANTY (Tables)
PRODUCT WARRANTY (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of Changes in Product Warranty Liabilities | Changes in our product warranty liabilities during the indicated periods are as follows: 2019 2018 2017 Beginning balance $ 264,928 $ 216,781 $ 201,840 Provision 233,927 259,845 195,799 Payments (251,071 ) (211,698 ) (180,858 ) Acquisition 43,329 – – Foreign currency translation (1,434 ) – – Ending balance $ 289,679 $ 264,928 $ 216,781 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The components of long-term debt are as follows: July 31, 2019 July 31, 2018 Term loan $ 1,832,341 $ – Unsecured notes 27,878 – Other debt 94,124 – Total long-term debt 1,954,343 – Debt issuance costs, net of amortization (51,720 ) – Total long-term debt, net of debt issuance costs 1,902,623 – Less: current portion of long-term debt (17,370 ) – Total long-term debt, net, less current portion $ 1,885,253 $ – |
Schedule of Maturities of Long-term Debt | Total contractual debt maturities are as follows: For the fiscal year ending July 31, 2020 $ 18,826 For the fiscal year ending July 31, 2021 19,549 For the fiscal year ending July 31, 2022 18,264 For the fiscal year ending July 31, 2023 18,382 For the fiscal year ending July 31, 2024 18,463 For the fiscal year ending July 31, 2025 and thereafter 1,860,859 $ 1,954,343 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The sources of earnings before income taxes are as follows: For the Fiscal Year Ended July 31, 2019 2018 2017 United States $ 200,859 $ 633,029 $ 556,386 Foreign (16,193 ) – – Total $ 184,666 $ 633,029 $ 556,386 |
Schedule of Components of Provision (Benefit) for Income Taxes | The components of the provision (benefit) for income taxes are as follows: For the Fiscal Year Ended July 31, Income Taxes: 2019 2018 2017 U.S. Federal $ 48,757 $ 166,402 $ 200,370 U.S. state and local 5,921 21,025 20,941 Foreign 6,611 Total current expense 61,289 187,427 221,311 U.S. Federal 10,862 17,820 (37,033 ) U.S. state and local (36 ) (2,369 ) (2,146 ) Foreign (19,914 ) – – Total deferred expense (benefit) (9,088 ) 15,451 (39,179 ) Total income tax expense $ 52,201 $ 202,878 $ 182,132 |
Schedule of Differences Between Income Tax Expense at Federal Statutory Rate and Actual Income Taxes | The differences between income tax expense at the federal statutory rate and the actual income tax expense are as follows: For the Fiscal Year Ended July 31, 2019 2018 2017 Provision at federal statutory rate $ 38,779 $ 170,095 $ 194,735 Differences between U.S. federal statutory and foreign tax rates 1,478 U.S. state and local income taxes, net of federal benefit 4,642 14,255 11,021 Nondeductible compensation 2,401 – – Nondeductible acquisition costs 3,031 – – Nondeductible foreign currency forward contract loss on acquisition 14,863 – – Nontaxable foreign currency remeasurement gains (12,942 ) Federal income tax credits and incentives (3,373 ) (3,518 ) (3,228 ) Domestic production activities deduction – (16,175 ) (19,527 ) Change in uncertain tax positions 1,279 396 375 Effect of the U.S. Tax Act – 38,620 – Other 2,043 (795 ) (1,244 ) Total income tax expense $ 52,201 $ 202,878 $ 182,132 |
Schedule of Deferred Income Taxe Balances | A summary of the deferred income tax balances is as follows: July 31, 2019 2018 Deferred income tax asset (liability): Inventory basis $ 807 $ 922 Employee benefits 5,272 3,427 Self-insurance reserves 5,185 6,368 Accrued product warranties 62,563 62,332 Accrued incentives 6,144 5,235 Sales returns and allowances 1,516 1,741 Accrued expenses 3,617 1,905 Property, plant and equipment (22,699 ) (9,060 ) Deferred compensation 15,247 12,864 Intangibles (143,861 ) (9,151 ) Net operating loss and other carryforwards 15,725 – Unrealized gain/loss (4,546 ) – Unrecognized tax benefits 2,689 2,581 Other 2,759 (720 ) Valuation allowance (12,945 ) $ – Deferred income tax asset (liability), net $ (62,527 ) $ 78,444 |
Schedule of Total Deferred Tax Assets And Liabilities | Total deferred tax assets and deferred tax liabilities at July 31, 2019 and 2018 are as follows: July 31, 2019 2018 Deferred tax assets $ 273,273 $ 97,375 Deferred tax liabilities (322,855 ) (18,931 ) Valuation allowance (12,945 ) – Net deferred tax assets / (liabilities) $ (62,527 ) $ 78,444 |
Schedule of Changes in Unrecognized Tax Benefit | Changes in the unrecognized tax benefit during fiscal years 2019, 2018 and 2017 were as follows: 2019 2018 2017 Beginning balance $ 13,004 $ 12,671 $ 13,269 Tax positions related to prior years: Additions – 353 75 Reductions (263 ) (2,203 ) (1,510 ) Tax positions related to current year: Additions 2,062 3,629 3,853 Settlements (773 ) (192 ) (1,450 ) Lapses in statute of limitations (918 ) (1,254 ) (1,566 ) Tax positions acquired from EHG 736 – – Ending balance $ 13,848 $ 13,004 $ 12,671 |
Components of Total Unrecognized Tax Benefits | The components of total unrecognized tax benefits are summarized as follows: July 31, 2019 2018 Unrecognized tax benefits $ 13,848 $ 13,004 Reduction to unrecognized tax benefits which offset tax credit and loss carryforwards (1,916 ) (955 ) Accrued interest and penalties 1,758 1,290 Total unrecognized tax benefits $ 13,690 $ 13,339 Short-term, included in “Income and other taxes” $ 2,891 $ 893 Long-term 10,799 12,446 Total unrecognized tax benefits $ 13,690 $ 13,339 |
Summary of Income Tax Examinations | The major tax jurisdictions we file in, with the years still subject to income tax examinations, are listed below: Major Tax Jurisdiction Tax Years Subject to Exam United States – Federal Fiscal 2016 – Fiscal 2018 United States – State Fiscal 2016 – Fiscal 2018 Germany Fiscal 2016 – Fiscal 2018 France Fiscal 2016 – Fiscal 2018 Italy Fiscal 2015 – Fiscal 2018 United Kingdom Fiscal 2018 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Leases [Abstract] | |
Future Minimum Rental Payments under Capital and Operating Leases | Future minimum rental payments required under capital and operating leases as of July 31, 2019 are as follows: Capital Leases Operating Leases For the fiscal year ending July 31, 2020 $ 974 $ 8,785 For the fiscal year ending July 31, 2021 993 6,809 For the fiscal year ending July 31, 2022 1,015 5,437 For the fiscal year ending July 31, 2023 1,037 3,980 For the fiscal year ending July 31, 2024 1,061 3,424 For the fiscal year ending July 31, 2025 and thereafter 3,037 20,745 Total minimum lease payments 8,117 $ 49,180 Less amount representing interest (2,427 ) Present value of net minimum capital lease payments 5,690 Less current portion (444 ) Long-term capital lease obligations $ 5,246 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Summary of Restricted Stock Award Activity | A summary of restricted stock unit activity during fiscal 2019, 2018 and 2017 is included below: 2019 2018 2017 Restricted Stock Units Weighted- Average Grant Date Fair Value Restricted Stock Units Weighted- Date Fair Value Restricted Stock Units Weighted- Date Fair Value Nonvested, beginning of year 328,431 $ 101.97 332,576 $ 69.41 325,136 $ 53.95 Granted 310,924 79.12 171,340 124.84 166,567 84.85 Vested (167,591 ) 90.23 (168,714 ) 64.01 (157,315 ) 53.87 Forfeited (20,201 ) 91.11 (6,771 ) 93.46 (1,812 ) 64.03 Nonvested, end of year 451,563 $ 91.08 328,431 $ 101.97 332,576 $ 69.41 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregates of Revenue | 2019 2018 2017 NET SALES: Recreational vehicles North American Towables Travel Trailers and Other $ 2,710,308 $ 3,646,581 $ 3,088,561 Fifth Wheels 1,848,143 2,362,119 2,038,930 Total North American Towables 4,558,451 6,008,700 5,127,491 North American Motorized Class A 761,176 1,000,881 914,681 Class C 824,449 1,047,376 968,899 Class B 63,704 98,058 87,886 Total North American Motorized 1,649,329 2,146,315 1,971,466 Total North America 6,207,780 8,155,015 7,098,957 European Motorcaravan 960,155 – – Campervan 201,089 – – Caravan 172,144 – – Other RV-related 153,590 – – Total European 1,486,978 – – Total recreational vehicles 7,694,758 8,155,015 7,098,957 Other, primarily aluminum extruded components 263,374 305,947 253,557 Intercompany eliminations (93,374 ) (132,053 ) (105,562 ) Total $ 7,864,758 $ 8,328,909 $ 7,246,952 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The components of other comprehensive income (loss) (“OCI”) and the changes in the Company’s accumulated OCI (“AOCI”) by component for the fiscal year ended July 31, 2019 were as follows (The Company did not have any OCI or AOCI prior to fiscal 2019): 2019 Foreign Currency Unrealized Translation Gain (Loss) on Adjustment Derivatives Other Total Balance at beginning of period $ – $ – $ – $ – OCI before reclassifications (44,684 ) (12,184 ) (1,048 ) (57,916 ) Income taxes associated with OCI before reclassifications (1) (2,394 ) 2,917 – 523 Amounts reclassified from AOCI – (279 ) – (279 ) Income taxes associated with amounts reclassified from AOCI – 74 – 74 AOCI, net of tax (47,078 ) (9,472 ) (1,048 ) (57,598 ) Less: OCI attributable to non-controlling interest (594 ) – – (594 ) AOCI, net of tax attributable to Thor Industries, Inc. $ (46,484 ) $ (9,472 ) $ (1,048 ) $ (57,004 ) (1) We do not recognize deferred taxes for a majority of the foreign currency translation gains and losses because we do not anticipate reversal in the foreseeable future. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||||
Jul. 31, 2019USD ($)Segmentshares | Jul. 31, 2018USD ($)shares | Jul. 31, 2017USD ($)shares | Aug. 01, 2019USD ($) | Aug. 01, 2018USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of reportable segments | Segment | 3 | ||||
Cash and cash equivalents | $ 425,615 | $ 275,249 | $ 223,258 | ||
Depreciation | 73,139 | 38,105 | 34,333 | ||
Advertising costs | $ 38,643 | $ 26,874 | $ 24,997 | ||
Maximum percentage of tax benefits realized upon ultimate settlement | 50.00% | ||||
Antidilutive stock options, restricted stock units and unvested restricted stock outstanding | shares | 0 | 0 | |||
Factored accounts receivable | $ 173,405 | $ 0 | |||
Research and development | $ 9,381 | 2,009 | $ 2,577 | ||
Restricted Stock Units (RSUs) [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Stock-based Compensation, requisite service period | 3 years | ||||
Antidilutive stock options, restricted stock units and unvested restricted stock outstanding | shares | 233,395 | ||||
Restricted Stock [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Antidilutive stock options, restricted stock units and unvested restricted stock outstanding | shares | 0 | ||||
Research and Development Expense [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Increase In Research And Development Expense | $ 7,372 | ||||
Research and Development Expense [Member] | European [Member] | Operating Segments | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Increase In Research And Development Expense | 7,244 | ||||
Continuing Operations | Selling, General and Administrative Expenses | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Depreciation | 8,350 | $ 5,035 | $ 5,710 | ||
Accounting Standards Update 2014-09 | Retained Earnings | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Cumulative effect of the change in accounting principle, net of tax | $ (5,450) | ||||
Accounting Standards Update 2014-09 | Accrued Promotions and Rebates | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Cumulative effect of the change in accounting principle, net of tax | 7,127 | ||||
Cumulative effect of change on equity or net assets on pre-tax basis | $ 181 | ||||
Accounting Standards Update 2014-09 | Deferred Income Tax Assets | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Cumulative effect of the change in accounting principle, net of tax | $ 1,677 | ||||
Trademarks | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets amortization period | 18 years | ||||
Rental Vehicles | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, estimated useful life | 6 years | ||||
Minimum | Accounting Standards Update 2016-02 | Subsequent Event | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Right of use assets | $ 30,000 | ||||
Operating Lease Liability | 30,000 | ||||
Minimum | Design Technology Assets | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets amortization period | 2 years | ||||
Minimum | Non-Compete Agreements | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets amortization period | 2 years | ||||
Minimum | Trademarks | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets amortization period | 15 years | ||||
Minimum | Dealer Network | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets amortization period | 12 years | ||||
Minimum | Other Intangible Assets | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets amortization period | 2 years | ||||
Minimum | Building and Building Improvements | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, estimated useful life | 10 years | ||||
Minimum | Machinery and Equipment | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, estimated useful life | 3 years | ||||
Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Cash equivalents maturity period | 3 months | 3 months | |||
Maximum | Accounting Standards Update 2016-02 | Subsequent Event | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Right of use assets | 40,000 | ||||
Operating Lease Liability | $ 40,000 | ||||
Maximum | Design Technology Assets | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets amortization period | 15 years | ||||
Maximum | Non-Compete Agreements | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets amortization period | 15 years | ||||
Maximum | Trademarks | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets amortization period | 25 years | ||||
Maximum | Dealer Network | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets amortization period | 20 years | ||||
Maximum | Backlog | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets amortization period | 5 months | ||||
Maximum | Other Intangible Assets | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible assets amortization period | 15 years | ||||
Maximum | Building and Building Improvements | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, estimated useful life | 39 years | ||||
Maximum | Machinery and Equipment | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, estimated useful life | 10 years | ||||
One US Financial Institution | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Cash and cash equivalents | $ 61,057 | ||||
Euro Financial Institutions One | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Cash and cash equivalents | 115,168 | ||||
Euro Financial Institutions Two | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Cash and cash equivalents | 39,254 | ||||
Held By One U.S. Financial Institution | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Cash and cash equivalents | $ 148,488 | $ 254,701 |
Schedule of Difference Between
Schedule of Difference Between Basic and Diluted EPS as Result of Restricted Stock Units and Unvested Restricted Stock (Detail) - shares | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Weighted-average shares outstanding for basic earnings per share | 53,905,667 | 52,674,161 | 52,562,723 |
Unvested restricted stock and restricted stock units | 121,019 | 179,199 | 195,719 |
Weighted-average shares outstanding assuming dilution | 54,026,686 | 52,853,360 | 52,758,442 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) € in Thousands, $ in Thousands | Feb. 02, 2019USD ($) | Feb. 01, 2019USD ($)shares | Feb. 01, 2019EUR (€)shares | Jul. 31, 2019USD ($) | Jul. 31, 2019USD ($) | Jul. 31, 2018USD ($) | Jul. 31, 2017USD ($) | Feb. 01, 2019EUR (€) |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 7,864,758 | $ 8,328,909 | $ 7,246,952 | |||||
Gross Profit | 973,094 | 1,164,666 | 1,043,583 | |||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 184,666 | 633,029 | 556,386 | |||||
Amortization of Intangible Assets | 75,638 | 55,118 | 63,925 | |||||
Goodwill | $ 1,358,032 | 1,358,032 | 377,693 | $ 377,693 | ||||
Step-up Costs [Member] | ||||||||
Purchase accounting of acquired inventory | $ 61,418 | |||||||
Subsidary Loan [Member] | North America [Member] | ||||||||
Asset Impairment Charges | 52,501 | 106,561 | ||||||
Proforma Income [Member] | ||||||||
Business Combination, Acquisition Related Costs | 114,866 | |||||||
Proforma Income [Member] | Fair Value Adjustment to Inventory [Member] | ||||||||
Assets, Fair Value Adjustment | $ 61,418 | |||||||
Asset Based Credit Facility [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 750,000 | 750,000 | 750,000 | |||||
Other Expense [Member] | ||||||||
Business Combination, Acquisition Related Costs | $ 44,089 | |||||||
Trademarks [Member] | ||||||||
Finite-Lived Intangible Asset, Useful Life | 18 years | |||||||
Term Loan [Member] | ||||||||
Debt Instrument, Term | 7 years | 7 years | ||||||
Amount of debt financing | 1,832,341 | $ 1,832,341 | ||||||
Us Tranche [Member] | Term Loan [Member] | ||||||||
Amount of debt financing | 849,550 | 849,550 | ||||||
Euro Tranche [Member] | Term Loan [Member] | ||||||||
Amount of debt financing | $ 708,584 | 685,373 | 685,373 | € 617,718 | ||||
Erwin Hymer Group [Member] | ||||||||
Payments to Acquire Businesses, Gross | $ 1,760,000 | € 1,530,000 | ||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 2,256,492 | 2,256,492 | ||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 144,200 | |||||||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed Subsidiaries Guarantee Obligations | 115,668 | |||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,486,978 | |||||||
Gross Profit | 150,039 | |||||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (5,946) | |||||||
Amortization of Intangible Assets | 11,239 | |||||||
Business Combination Available Cash | $ 95,000 | |||||||
Debt Instrument, Term | 7 years | 7 years | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 17 years | 17 years | ||||||
Goodwill | $ 1,008,472 | |||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 242,000 | 242,000 | ||||||
Business Acquisition Pro Forma Professional Fee | 1,677 | $ 19,376 | ||||||
Increase In Goodwill | 14,045 | |||||||
Erwin Hymer Group [Member] | Asset Based Credit Facility [Member] | ||||||||
Debt Instrument, Term | 5 years | 5 years | ||||||
Amount of debt financing | $ 100,000 | |||||||
Erwin Hymer Group [Member] | Acquisition Costs [Member] | ||||||||
Business Combination, Acquisition Related Costs | 114,866 | |||||||
Erwin Hymer Group [Member] | Acquisition Costs [Member] | Foreign Currency Contract Losses [Member] | ||||||||
Business Combination, Acquisition Related Costs | 70,777 | |||||||
Erwin Hymer Group [Member] | Other Current Liabilities [Member] | ||||||||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed Accrued Liabilities Current | $ 5,576 | 5,576 | ||||||
Erwin Hymer Group [Member] | Trademarks [Member] | ||||||||
Finite-Lived Intangible Asset, Useful Life | 20 years | 20 years | ||||||
Finite-Lived Intangible Assets, Amortization Method | straight-line basis | |||||||
Erwin Hymer Group [Member] | Technology-Based Intangible Assets [Member] | ||||||||
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years | ||||||
Finite-Lived Intangible Assets, Amortization Method | straight-line basis | |||||||
Erwin Hymer Group [Member] | Dealer Network [Member] | ||||||||
Finite-Lived Intangible Asset, Useful Life | 20 years | |||||||
Finite-Lived Intangible Assets, Amortization Method | accelerated basis | |||||||
Erwin Hymer Group [Member] | Backlog [Member] | ||||||||
Finite-Lived Intangible Asset, Useful Life | 5 months | |||||||
Finite-Lived Intangible Assets, Amortization Method | straight-line basis | |||||||
Erwin Hymer Group [Member] | Other Intangible Assets [Member] | ||||||||
Amortization of Intangible Assets | $ 14,355 | |||||||
Finite-Lived Intangible Assets, Amortization Method | straight-line basis | straight-line basis | ||||||
Erwin Hymer Group [Member] | Term Loan [Member] | ||||||||
Amount of debt financing | $ 2,100,000 | |||||||
Erwin Hymer Group [Member] | Us Tranche [Member] | ||||||||
Amount of debt financing | 1,400,000 | |||||||
Erwin Hymer Group [Member] | Euro Tranche [Member] | ||||||||
Amount of debt financing | € | € 600,000 | |||||||
Erwin Hymer Group [Member] | Euro Tranche [Member] | Term Loan [Member] | ||||||||
Amount of debt financing | $ 700,000 |
Summary of Final Fair Value Ass
Summary of Final Fair Value Assigned to Net Assets Acquired (Detail) - USD ($) $ in Thousands | Feb. 01, 2019 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 |
Amortizable intangible assets: | ||||
Goodwill | $ 1,358,032 | $ 377,693 | $ 377,693 | |
Erwin Hymer Group [Member] | ||||
Cash | $ 97,887 | |||
Inventory | 593,053 | |||
Other assets | 429,150 | |||
Property, plant and equipment, rental vehicles | 80,132 | |||
Property, plant and equipment | 447,621 | $ 522,830 | ||
Amortizable intangible assets: | ||||
Goodwill | 1,008,472 | |||
Guarantee liabilities related to former EHG North American subsidiaries | (115,668) | |||
Other current liabilities | (850,623) | |||
Debt – Unsecured notes | (114,710) | |||
Debt – Other | (166,196) | |||
Deferred income tax liabilities | (155,863) | |||
Other long-term liabilities | (17,205) | |||
Non-controlling interests | (12,207) | |||
Total fair value of net assets acquired | 1,900,632 | |||
Less: cash acquired | (97,887) | |||
Total fair value of net assets acquired, less cash acquired | 1,802,745 | |||
Dealer network | Erwin Hymer Group [Member] | ||||
Amortizable intangible assets: | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 355,601 | |||
Trademarks | Erwin Hymer Group [Member] | ||||
Amortizable intangible assets: | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 126,181 | |||
Technology assets | Erwin Hymer Group [Member] | ||||
Amortizable intangible assets: | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 183,536 | |||
Backlog | Erwin Hymer Group [Member] | ||||
Amortizable intangible assets: | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 11,471 |
Unaudited Pro Forma Information
Unaudited Pro Forma Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Business Combinations [Abstract] | ||
Net sales | $ 9,067,750 | $ 11,175,302 |
Net income | $ 143,517 | $ 305,101 |
Basic earnings per common share | $ 2.66 | $ 5.55 |
Diluted earnings per common share | $ 2.66 | $ 5.54 |
Business Segments - Additional
Business Segments - Additional Information (Detail) | 12 Months Ended |
Jul. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information by Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 7,864,758 | $ 8,328,909 | $ 7,246,952 |
Income (loss) from continuing operations before income taxes | 184,666 | 633,029 | 556,386 |
Recreational vehicles | |||
Segment Reporting Information [Line Items] | |||
Net sales | 7,694,758 | 8,155,015 | 7,098,957 |
Operating Segments | Recreational vehicles | |||
Segment Reporting Information [Line Items] | |||
Net sales | 7,694,758 | 8,155,015 | 7,098,957 |
Income (loss) from continuing operations before income taxes | 397,192 | 667,442 | 584,238 |
Operating Segments | Recreational vehicles | North American [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 6,207,780 | 8,155,015 | 7,098,957 |
Income (loss) from continuing operations before income taxes | 403,138 | 667,442 | 584,238 |
Operating Segments | Recreational vehicles | European [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,486,978 | 0 | 0 |
Income (loss) from continuing operations before income taxes | (5,946) | 0 | 0 |
Operating Segments | Recreational vehicles | North American Towables | |||
Segment Reporting Information [Line Items] | |||
Net sales | 4,558,451 | 6,008,700 | 5,127,491 |
Income (loss) from continuing operations before income taxes | 322,228 | 532,657 | 458,915 |
Operating Segments | Recreational vehicles | North American Motorized | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,649,329 | 2,146,315 | 1,971,466 |
Income (loss) from continuing operations before income taxes | 80,910 | 134,785 | 125,323 |
Corporate and Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net sales | 263,374 | 305,947 | 253,557 |
Income (loss) from continuing operations before income taxes | 29,086 | 32,667 | 28,714 |
Intercompany Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net sales | (93,374) | (132,053) | (105,562) |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Income (loss) from continuing operations before income taxes | $ (241,612) | $ (67,080) | $ (56,566) |
Schedule of Segment Reporting_2
Schedule of Segment Reporting Information, by Segment Balance Sheet Item (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Total assets | $ 5,660,446 | $ 2,778,665 | $ 2,557,931 |
Depreciation and Intangible amortization expense, total | 148,777 | 93,223 | 98,258 |
Capital acquisitions | 127,245 | 137,306 | 117,755 |
Operating Segments | Recreational vehicles | |||
Segment Reporting Information [Line Items] | |||
Total assets | 5,040,949 | 2,147,191 | 2,035,790 |
Depreciation and Intangible amortization expense, total | 136,463 | 80,764 | 84,961 |
Capital acquisitions | 122,153 | 119,964 | 114,478 |
Operating Segments | Recreational vehicles | North American [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 1,963,145 | 2,147,191 | 2,035,790 |
Depreciation and Intangible amortization expense, total | 81,582 | 80,764 | 84,961 |
Capital acquisitions | 86,500 | 119,964 | 114,478 |
Operating Segments | Recreational vehicles | European [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 3,077,804 | 0 | 0 |
Depreciation and Intangible amortization expense, total | 54,881 | 0 | 0 |
Capital acquisitions | 35,653 | 0 | 0 |
Operating Segments | Recreational vehicles | North American Towables | |||
Segment Reporting Information [Line Items] | |||
Total assets | 1,516,519 | 1,654,361 | 1,535,029 |
Depreciation and Intangible amortization expense, total | 67,751 | 68,964 | 75,568 |
Capital acquisitions | 69,321 | 85,304 | 72,801 |
Operating Segments | Recreational vehicles | North American Motorized | |||
Segment Reporting Information [Line Items] | |||
Total assets | 446,626 | 492,830 | 500,761 |
Depreciation and Intangible amortization expense, total | 13,831 | 11,800 | 9,393 |
Capital acquisitions | 17,179 | 34,660 | 41,677 |
Corporate and Eliminations | |||
Segment Reporting Information [Line Items] | |||
Total assets | 163,897 | 167,965 | 156,996 |
Depreciation and Intangible amortization expense, total | 10,647 | 10,861 | 11,967 |
Capital acquisitions | 3,493 | 8,440 | 1,157 |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 455,600 | 463,509 | 365,145 |
Depreciation and Intangible amortization expense, total | 1,667 | 1,598 | 1,330 |
Capital acquisitions | $ 1,599 | $ 8,902 | $ 2,120 |
Schedule of Segment Reporting_3
Schedule of Segment Reporting Information, by Segment Geographic Region Item (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 7,864,758 | $ 8,328,909 | $ 7,246,952 |
Property, plant and equipment, net | 1,092,471 | 522,054 | 425,238 |
United States | |||
Segment Reporting Information [Line Items] | |||
Net sales | 5,803,373 | 7,540,015 | 6,618,874 |
Property, plant and equipment, net | 569,641 | 522,054 | 425,238 |
Germany | |||
Segment Reporting Information [Line Items] | |||
Net sales | 836,151 | 1,687 | 1,138 |
Property, plant and equipment, net | 424,333 | 0 | 0 |
Other Europe | |||
Segment Reporting Information [Line Items] | |||
Net sales | 636,105 | 4,358 | 1,504 |
Property, plant and equipment, net | 92,553 | 0 | 0 |
Canada | |||
Segment Reporting Information [Line Items] | |||
Net sales | 561,172 | 776,068 | 614,528 |
Other foreign | |||
Segment Reporting Information [Line Items] | |||
Net sales | 27,957 | 6,781 | 10,908 |
Other | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | $ 5,944 | $ 0 | $ 0 |
Derivatives and Hedging - Addit
Derivatives and Hedging - Additional Information (Detail) $ in Thousands, € in Millions | 12 Months Ended | |||
Jul. 31, 2019USD ($) | Jul. 31, 2018USD ($) | Jul. 31, 2017USD ($) | Sep. 18, 2018EUR (€) | |
Foreign currency transaction | $ 7,780 | |||
Amount reclassified | $ 0 | $ 0 | ||
Cash Flow Hedging [Member] | ||||
Foreign Currency Forward Contract Outstanding | 12,463 | |||
Notional amount | 849,550 | |||
Not Designated as Hedging Instrument | ||||
Reclassified out of AOCI | 0 | |||
Notional amount | 35,700 | |||
Not Designated as Hedging Instrument | Other Liabilities [Member] | ||||
Derivative liability | 1,226 | |||
Acquisition Costs | Foreign Currency Contract Losses | ||||
Acquisition related costs | 70,777 | |||
Interest Rate Swap | Cash Flow Hedging [Member] | ||||
Foreign Currency Forward Contract Outstanding | 12,463 | |||
Notional amount | 849,550 | |||
Interest Rate Swap | Designated as Hedging Instrument | ||||
Notional Amount | $ 900,000 | |||
Term Of Swap | 4 years 6 months | |||
Foreign Exchange Forward | ||||
Notional Amount | $ 0 | |||
Foreign Exchange Forward | Cash Flow Hedging [Member] | ||||
Foreign Currency Forward Contract Outstanding | $ 0 | |||
Foreign Exchange Forward | Not Designated as Hedging Instrument | ||||
Notional Amount | € | € 1,625 |
Derivatives and Hedging fair va
Derivatives and Hedging fair value of our derivative instruments and the associated notional amounts (Details) - Cash Flow Hedging $ in Thousands | Jul. 31, 2019USD ($) |
Notional | $ 849,550 |
Fair Value in Other Current Liabilities | 12,463 |
Interest rate swap agreements | |
Notional | 849,550 |
Fair Value in Other Current Liabilities | $ 12,463 |
Derivatives and Hedging Financi
Derivatives and Hedging Financial Statement Impact of Derivatives (Details) $ in Thousands | 12 Months Ended |
Jul. 31, 2019USD ($) | |
Designated as Hedging Instrument | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |
Gain (Loss) recognized in Other Comprehensive Income, net of tax | $ (9,267) |
Foreign currency forward contracts | Designated as Hedging Instrument | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |
Gain (Loss) recognized in Other Comprehensive Income, net of tax | 129 |
Interest rate swap agreements | Designated as Hedging Instrument | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |
Gain (Loss) recognized in Other Comprehensive Income, net of tax | (9,396) |
Cost of Sales | Designated as Hedging Instrument | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |
Gain (Loss) recognized in Other Comprehensive Income, net of tax | 129 |
Cost of Sales | Foreign currency forward contracts | Cash Flow Hedging | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |
Gain (loss) reclassified from AOCI | 129 |
Acquisition Related Costs | Designated as Hedging Instrument | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |
Gain (Loss) recognized in Other Comprehensive Income, net of tax | (70,777) |
Acquisition Related Costs | Foreign currency forward contracts | Designated as Hedging Instrument | |
Gain Loss on Derivatives Not Designated as Hedging Instruments [Abstract] | |
Amount of gain (loss) recognized in income | (70,777) |
Interest Expense | Designated as Hedging Instrument | |
Gain Loss on Derivatives Not Designated as Hedging Instruments [Abstract] | |
Amount of gain (loss) recognized in income | (362) |
Interest Expense | Interest rate swap agreements | Cash Flow Hedging | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | |
Gain (loss) reclassified from AOCI | 76 |
Interest Expense | Interest rate swap agreements | Designated as Hedging Instrument | |
Gain Loss on Derivatives Not Designated as Hedging Instruments [Abstract] | |
Amount of gain (loss) recognized in income | $ (438) |
Schedule of Major Classificatio
Schedule of Major Classifications of Inventories (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 |
Inventory [Line Items] | ||
Work in process | $ 126,636 | $ 124,703 |
Raw materials | 300,721 | 258,429 |
Chassis | 155,099 | 116,308 |
Subtotal | 873,532 | 579,758 |
Excess of FIFO costs over LIFO costs | (45,544) | (41,849) |
Total inventories, net | 827,988 | 537,909 |
Recreational vehicles | ||
Inventory [Line Items] | ||
Finished products | 230,483 | 44,998 |
Other | ||
Inventory [Line Items] | ||
Finished products | $ 60,593 | $ 35,320 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Feb. 01, 2019 | Jul. 31, 2018 | |
Inventories | $ 873,532 | $ 579,758 | |
Subsidiaries valued inventory in last-in, first-out method | 240,983 | 305,990 | |
Change In FIFO Inventory | 358,781 | ||
Change In Inventory Finished Goods | 185,485 | ||
Subsidiaries valued inventory in first-in, first-out method | 632,549 | $ 273,768 | |
Erwin Hymer Group [Member] | |||
Subsidiaries valued inventory in first-in, first-out method | $ 593,053 | ||
Erwin Hymer Group [Member] | FIFO [Member] | |||
Subsidiaries valued inventory in first-in, first-out method | 392,643 | ||
Erwin Hymer Group [Member] | Finished Goods [Member] | |||
Subsidiaries valued inventory in first-in, first-out method | $ 201,532 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 |
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 1,362,120 | $ 723,531 | |
Less accumulated depreciation | (269,649) | (201,477) | |
Property, plant and equipment, net | 1,092,471 | 522,054 | $ 425,238 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | 142,475 | 57,413 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | 742,736 | 468,824 | |
Machinery and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | 389,666 | 197,294 | |
Rental Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 87,243 | $ 0 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Feb. 01, 2019 | Jul. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 1,362,120 | $ 723,531 | |
Accumulated depreciation | 269,649 | 201,477 | |
Increase Decrease In Property Plant And Equipment Net | 570,417 | ||
Erwin Hymer Group [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 522,830 | $ 447,621 | |
Assets Held under Capital Leases | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 6,527 | 6,527 | |
Accumulated depreciation | $ 2,312 | $ 1,768 |
Components of Amortizable Intan
Components of Amortizable Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 1,216,485 | $ 569,727 |
Accumulated Amortization | $ 245,674 | 181,379 |
Dealer Network/Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life | 18 years | |
Cost | $ 750,641 | 404,960 |
Accumulated Amortization | $ 191,017 | 147,077 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life | 18 years | |
Cost | $ 268,778 | 146,117 |
Accumulated Amortization | $ 34,518 | 24,364 |
Design Technology and Other Intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Life | 9 years | |
Cost | $ 196,616 | 18,200 |
Accumulated Amortization | 19,689 | 9,555 |
Non-Compete Agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 450 | 450 |
Accumulated Amortization | $ 450 | $ 383 |
Estimated Amortization Expense
Estimated Amortization Expense (Detail) $ in Thousands | Jul. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Estimated annual amortization expense, For the fiscal year ending July 31, 2020 | $ 97,337 |
Estimated annual amortization expense, For the fiscal year ending July 31, 2021 | 103,968 |
Estimated annual amortization expense, For the fiscal year ending July 31, 2022 | 107,530 |
Estimated annual amortization expense, For the fiscal year ending July 31, 2023 | 88,051 |
Estimated annual amortization expense, For the fiscal year ending July 31, 2024 | 79,588 |
Estimated annual amortization expense, For the fiscal year ending July 31, 2025 and thereafter | 494,337 |
Estimated annual amortization expense, Total | $ 970,811 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill by Reportable Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 377,693 | $ 377,693 |
No activity | ||
Goodwill acquired | 1,008,472 | |
Goodwill, Foreign currency translation | (28,133) | |
Goodwill, Ending Balance | 1,358,032 | 377,693 |
Europe [Member] | ||
Goodwill [Line Items] | ||
No activity | ||
Goodwill acquired | 1,008,472 | |
Goodwill, Foreign currency translation | (28,133) | |
Goodwill, Ending Balance | 980,339 | |
Other Segments [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 42,871 | 42,871 |
No activity | ||
Goodwill, Ending Balance | 42,871 | 42,871 |
Towables [Member] | North American [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 334,822 | 334,822 |
No activity | ||
Goodwill, Ending Balance | $ 334,822 | 334,822 |
Motorized [Member] | North American [Member] | ||
Goodwill [Line Items] | ||
No activity |
Summary of Components of Net Ba
Summary of Components of Net Balance (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 |
Goodwill [Line Items] | |||
Goodwill | $ 1,384,397 | $ 404,058 | |
Accumulated impairment charges | (26,365) | (26,365) | |
Net balance | 1,358,032 | 377,693 | $ 377,693 |
European [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 980,339 | ||
Net balance | 980,339 | ||
Other [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 42,871 | 42,871 | |
Net balance | 42,871 | 42,871 | 42,871 |
Towables [Member] | North American [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 343,935 | 343,935 | |
Accumulated impairment charges | (9,113) | (9,113) | |
Net balance | 334,822 | 334,822 | $ 334,822 |
Motorized [Member] | North American [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 17,252 | 17,252 | |
Accumulated impairment charges | $ (17,252) | $ (17,252) |
Intangible Assets, Goodwill a_3
Intangible Assets, Goodwill and Long-Lived Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Intangible Assets And Goodwill [Line Items] | |||
Pre-tax, non-cash goodwill impairment charge | $ 0 | $ 0 | $ 0 |
Equity Investment - Additional
Equity Investment - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 15, 2018 | Jul. 31, 2019 | Jul. 31, 2018 |
Schedule of Equity Method Investments [Line Items] | |||
Payments to Acquire Interest in Joint Venture | $ 6,500 | $ 50,402 | |
TH2 | |||
Schedule of Equity Method Investments [Line Items] | |||
Losses from investment | 8,798 | 1,939 | |
Payments to Acquire Interest in Joint Venture | $ 46,902 | 6,500 | $ 3,500 |
Loan to joint venture | $ 2,157 | ||
Ownership percent | 50.00% | ||
TH2 | Tourism Holdings Limited ('thl') | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percent | 50.00% |
Concentration of Risk - Additio
Concentration of Risk - Additional Information (Detail) - Customer Concentration Risk - Freedom Roads, LLC | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Net Sales | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 18.50% | 20.00% | 20.00% |
Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 19.00% | 26.00% |
Schedule of Fair Value, Assets
Schedule of Fair Value, Assets Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 130,100 | $ 230,319 |
Deferred compensation plan assets and liabilities | 53,828 | $ 43,316 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap liability | $ 12,463 |
Product Warranty - Additional I
Product Warranty - Additional Information (Detail) | 12 Months Ended |
Jul. 31, 2019 | |
Product Warranty One | |
Product Warranty Liability [Line Items] | |
Warranty period for retail customers, years | 1 year |
Product Warranty Two | |
Product Warranty Liability [Line Items] | |
Warranty period for retail customers, years | 2 years |
Schedule of Changes in Product
Schedule of Changes in Product Warranty Liabilities for Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Product Warranty | |||
Beginning balance | $ 264,928 | $ 216,781 | $ 201,840 |
Provision | 233,927 | 259,845 | 195,799 |
Payments | (251,071) | (211,698) | (180,858) |
Acquisition | 43,329 | ||
Foreign currency translation | (1,434) | ||
Ending balance | $ 289,679 | $ 264,928 | $ 216,781 |
Long-Term Debt - Additional In
Long-Term Debt - Additional Information (Detail) € in Thousands, $ in Thousands | Feb. 02, 2019 | Feb. 01, 2019USD ($) | Jul. 31, 2019USD ($) | Jul. 31, 2018USD ($) | Jul. 31, 2017USD ($) | Jul. 31, 2019EUR (€) | Feb. 01, 2019EUR (€) |
Line of Credit Facility [Line Items] | |||||||
Fees to secure the facility, amortized amount | $ 6,189 | $ 1,570 | $ 1,570 | ||||
Unsecured Debt | 27,878 | € 25,000 | |||||
Interest Expense, Debt | 56,932 | ||||||
Unamortized Debt Issuance Expense | 12,609 | ||||||
Fees to secure the facility, amount incurred | 56,166 | ||||||
Borrowings on revolving credit facilities | 100,000 | ||||||
Principal payments on revolving credit facilities | 100,000 | 145,000 | 215,000 | ||||
Term Loan [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Term Loan Outstanding | $ 1,832,341 | ||||||
Debt Instrument, Term | 7 years | ||||||
Debt Instrument Principal Payment Percentage | 1.00% | ||||||
Debt Instrument Quarterly Principal Repayment Percentage | 0.25% | ||||||
Term Loan [Member] | Interest Rate Swap [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate | 2.466% | 2.466% | |||||
Term Loan [Member] | Us Tranche [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Term Loan Outstanding | $ 849,550 | ||||||
Interest rate | 6.1875% | 6.1875% | |||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 6.216% | 6.216% | |||||
Term Loan [Member] | Us Tranche [Member] | Base Rate [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate | 2.75% | 2.75% | |||||
Term Loan [Member] | Us Tranche [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Term Loan Outstanding | $ 1,386,434 | $ 1,146,968 | |||||
Interest rate | 3.75% | 3.75% | |||||
Term Loan [Member] | Euro Tranche [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Term Loan Outstanding | 708,584 | $ 685,373 | € 617,718 | ||||
Interest rate | 4.00% | 4.00% | |||||
Term Loan [Member] | Euro Tranche [Member] | Euro Interbank Offered Rate EURIBOR [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate | 4.00% | 4.00% | |||||
Unsecured Series One Debt [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate | 1.945% | 1.945% | |||||
Unsecured Debt | $ 22,302 | € 20,000 | |||||
Unsecured Series Two Debt [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate | 2.534% | 2.534% | |||||
Unsecured Debt | $ 5,576 | € 5,000 | |||||
Other Long Term Debt [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate | 3.43% | 3.43% | |||||
Other Long Term Debt [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate | 1.40% | 1.40% | |||||
Asset Based Credit Facility [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit, borrowing availability | $ 608,763 | ||||||
Fees to secure the facility, amortized amount | $ 785 | 1,570 | |||||
Line of Credit Facility, Covenant Terms | The ABL contains a financial covenant which requires the Company to maintain a minimum consolidated fixed-charge coverage ratio of 1.0X, although the covenant is only applicable when adjusted excess availability falls below a threshold of the greater of a) 10% of the lesser of the borrowing base availability or the revolver line total, or b) $60,000. Up to $75,000 of the ABL is available for the issuance of letters of credit, and up to $75,000 is available for swingline loans. | ||||||
Line of Credit Facility, Increase (Decrease) for Period, Description | The Company may also increase commitments under the ABL by up to $150,000 by obtaining additional commitments from lenders and adhering to certain other conditions. | ||||||
Interest Expense, Debt | $ 1,939 | $ 7,002 | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | ||||||
Fees to secure the facility, amount incurred | $ 14,010 | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 750,000 | 750,000 | |||||
Borrowings on revolving credit facilities | 100,000 | ||||||
Principal payments on revolving credit facilities | $ 100,000 | ||||||
Asset Based Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate | 0.75% | 0.75% | |||||
Asset Based Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate | 0.25% | 0.25% | |||||
Asset Based Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Interest Rate at Period End | 1.75% | 1.75% | |||||
Asset Based Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Interest Rate at Period End | 1.25% | 1.25% |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - Jul. 31, 2019 € in Thousands, $ in Thousands | USD ($) | EUR (€) |
Unsecured notes | $ 27,878 | € 25,000 |
Other debt | 94,124 | |
Total long-term debt | 1,954,343 | |
Debt issuance costs, net of amortization | (51,720) | |
Total long-term debt, net of debt issuance costs | 1,902,623 | |
Less: current portion of long-term debt | (17,370) | |
Total long-term debt, net, less current portion | 1,885,253 | |
Term Loan [Member] | ||
Term loan | $ 1,832,341 |
Long-Term Debt - Schedule of Ma
Long-Term Debt - Schedule of Maturities of Long-term Debt (Details) $ in Thousands | Jul. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
For the fiscal year ending July 31, 2020 | $ 18,826 |
For the fiscal year ending July 31, 2021 | 19,549 |
For the fiscal year ending July 31, 2022 | 18,264 |
For the fiscal year ending July 31, 2023 | 18,382 |
For the fiscal year ending July 31, 2024 | 18,463 |
For the fiscal year ending July 31, 2025 and thereafter | 1,860,859 |
Total long-term debt, gross | $ 1,954,343 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
Jul. 31, 2018 | Dec. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Income Tax [Line Items] | ||||||
Corporate tax rate | 35.00% | 21.00% | ||||
Unrecognized tax benefits that, if recognized, would affect the company's income tax rate | $ 10,491 | $ 10,491 | $ 11,332 | $ 10,491 | $ 8,477 | |
Accrued interest and penalties | 1,290 | $ 1,290 | 1,758 | 1,290 | ||
Total amount of interest and penalties expense (benefit) recognized | 454 | 203 | (218) | |||
Expected decrease in unrecognized tax benefits due to resolution of uncertain tax positions | 3,800 | |||||
Expected decrease in interest due to resolution of uncertain tax positions | 850 | |||||
Income Tax Expense Benefit | 61,289 | $ 187,427 | $ 221,311 | |||
Foreign Subsidaries [Member] | ||||||
Income Tax [Line Items] | ||||||
Deferred Tax Liabilities Unrecorded | 0 | |||||
GILTI [Member] | ||||||
Income Tax [Line Items] | ||||||
Income Tax Expense Benefit | 0 | |||||
State and Local Jurisdiction | ||||||
Income Tax [Line Items] | ||||||
Tax credit carry forward | 3,162 | |||||
Gross state tax Net Operating Loss carry forwards | 4,811 | |||||
Deferred tax asset, Net Operating Loss carry forwards | $ 299 | |||||
State and Local Jurisdiction | Earliest Tax Year | ||||||
Income Tax [Line Items] | ||||||
Tax Credit Carry forward Expiration Year | 2026 | |||||
Gross state tax Net Operating Loss carry forwards, expiration year | 2020 | |||||
State and Local Jurisdiction | Latest Tax Year | ||||||
Income Tax [Line Items] | ||||||
Tax Credit Carry forward Expiration Year | 2029 | |||||
Gross state tax Net Operating Loss carry forwards, expiration year | 2039 | |||||
Foreign Tax Authority [Member] | ||||||
Income Tax [Line Items] | ||||||
Gross state tax Net Operating Loss carry forwards | $ 54,008 | |||||
Foreign Tax Authority [Member] | Earliest Tax Year | ||||||
Income Tax [Line Items] | ||||||
Gross state tax Net Operating Loss carry forwards, expiration year | 2023 | |||||
Foreign Tax Authority [Member] | Latest Tax Year | ||||||
Income Tax [Line Items] | ||||||
Description Of Maximum Period For Which Operating Loss Can Be Carried Forward | indefinite carryforward | |||||
Blended Federal Tax [Member] | ||||||
Income Tax [Line Items] | ||||||
Corporate tax rate | 26.90% | |||||
Staff Accounting Bulletin Number 118 | ||||||
Income Tax [Line Items] | ||||||
Measurement period | 1 year | |||||
Provisional tax amount of additional deferred income tax expense | $ 34,000 | |||||
Provisional tax amount of additional income tax expense | $ 2,000 |
Income Taxes - Earnings Before
Income Taxes - Earnings Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
United States | $ 200,859 | $ 633,029 | $ 556,386 |
Foreign | (16,193) | ||
Income before income taxes | $ 184,666 | $ 633,029 | $ 556,386 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Provision (Benefit) for Income Taxes from Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 48,757 | $ 166,402 | $ 200,370 |
State and local | 5,921 | 21,025 | 20,941 |
Foreign | 6,611 | ||
Total current expense | 61,289 | 187,427 | 221,311 |
Federal | 10,862 | 17,820 | (37,033) |
State and local | (36) | (2,369) | (2,146) |
Foreign | (19,914) | ||
Total deferred expense (benefit) | (9,088) | 15,451 | (39,179) |
Total income tax expense | $ 52,201 | $ 202,878 | $ 182,132 |
Income Taxes - Schedule of Diff
Income Taxes - Schedule of Differences between Income Tax Expense at Federal Statutory Rate and Actual Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Provision at federal statutory rate | $ 38,779 | $ 170,095 | $ 194,735 |
Differences between U.S. federal statutory and foreign tax rates | 1,478 | ||
U.S. state and local income taxes, net of federal benefit | 4,642 | 14,255 | 11,021 |
Nondeductible compensation | 2,401 | ||
Nondeductible acquisition costs | 3,031 | ||
Nondeductible foreign currency forward contract loss on acquisition | 14,863 | ||
Nontaxable foreign currency remeasurement gains | (12,942) | ||
Federal income tax credits and incentives | (3,373) | (3,518) | (3,228) |
Domestic production activities deduction | (16,175) | (19,527) | |
Change in uncertain tax positions | 1,279 | 396 | 375 |
Effect of the U.S. Tax Act | 38,620 | ||
Other | 2,043 | (795) | (1,244) |
Total income tax expense | $ 52,201 | $ 202,878 | $ 182,132 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Tax Balances (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 |
Schedule Of Deferred Income Tax Assets And Liabilities [Line Items] | ||
Inventory basis | $ 807 | $ 922 |
Employee benefits | 5,272 | 3,427 |
Self-insurance reserves | 5,185 | 6,368 |
Accrued product warranties | 62,563 | 62,332 |
Accrued incentives | 6,144 | 5,235 |
Sales returns and allowances | 1,516 | 1,741 |
Accrued expenses | 3,617 | 1,905 |
Property, plant and equipment | (22,699) | (9,060) |
Deferred compensation | 15,247 | 12,864 |
Intangibles | (143,861) | (9,151) |
Net operating loss and other carryforwards | 15,725 | |
Unrealized gain/loss | (4,546) | |
Unrecognized tax benefits | 2,689 | 2,581 |
Other | 2,759 | (720) |
Valuation allowance | (12,945) | |
Deferred income tax (liability), net | $ (62,527) | |
Deferred income tax asset, net | $ 78,444 |
Income Taxes - Schedule Of Tota
Income Taxes - Schedule Of Total Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 |
Deferred tax assets | $ 273,273 | $ 97,375 |
Deferred tax liabilities | (322,855) | (18,931) |
Valuation allowance | (12,945) | |
Net deferred tax (liabilities) | $ (62,527) | |
Net deferred tax assets | $ 78,444 |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes in Unrecognized Tax Benefit (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 13,004 | $ 12,671 | $ 13,269 |
Tax positions related to prior years: Additions | 353 | 75 | |
Tax positions related to prior years: Reductions | (263) | (2,203) | (1,510) |
Tax positions related to current year: Additions | 2,062 | 3,629 | 3,853 |
Settlements | (773) | (192) | (1,450) |
Lapses in statute of limitations | (918) | (1,254) | (1,566) |
Tax positions acquired from EHG | 736 | ||
Ending balance | $ 13,848 | $ 13,004 | $ 12,671 |
Income Taxes - Components of To
Income Taxes - Components of Total Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 |
Income Tax Disclosure [Abstract] | ||||
Unrecognized tax benefits | $ 13,848 | $ 13,004 | $ 12,671 | $ 13,269 |
Reduction to unrecognized tax benefits which offset tax credit and loss carryforwards | (1,916) | (955) | ||
Accrued interest and penalties | 1,758 | 1,290 | ||
Total unrecognized tax benefits | 13,690 | 13,339 | ||
Short-term, included in "Income and other taxes" | 2,891 | 893 | ||
Long-term | 10,799 | 12,446 | ||
Total unrecognized tax benefits | $ 13,690 | $ 13,339 |
Income Taxes - Summary Of Incom
Income Taxes - Summary Of Income Tax Examinations (Detail) | 12 Months Ended |
Jul. 31, 2019 | |
United States – Federal | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2018 |
United States – Federal | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2016 |
United States – State | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2018 |
United States – State | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2016 |
Germany | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2018 |
Germany | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2016 |
France | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2018 |
France | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2016 |
Italy | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2018 |
Italy | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2015 |
United Kingdom | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2018 |
Contingent Liabilities and Co_2
Contingent Liabilities and Commitments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Standby repurchase obligations amount | $ 2,961,019 | $ 2,748,465 |
Term of commitments | up to eighteen months. | |
Repurchase and guarantee reserve balances | $ 9,575 | $ 7,400 |
EHG [Member] | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Standby repurchase obligations amount | $ 755,852 |
Future Minimum Rental Payments
Future Minimum Rental Payments under Capital and Operating Leases (Detail) $ in Thousands | Jul. 31, 2019USD ($) |
Leases [Abstract] | |
For the fiscal year ending July 31, 2020 | $ 974 |
For the fiscal year ending July 31, 2021 | 993 |
For the fiscal year ending July 31, 2022 | 1,015 |
For the fiscal year ending July 31, 2023 | 1,037 |
For the fiscal year ending July 31, 2024 | 1,061 |
For the fiscal year ending July 31, 2025 and thereafter | 3,037 |
Total minimum lease payments | 8,117 |
Less amount representing interest | (2,427) |
Present value of net minimum capital lease payments | 5,690 |
Less current portion | (444) |
Long-term capital lease obligations | 5,246 |
For the fiscal year ending July 31, 2020 | 8,785 |
For the fiscal year ending July 31, 2021 | 6,809 |
For the fiscal year ending July 31, 2022 | 5,437 |
For the fiscal year ending July 31, 2023 | 3,980 |
For the fiscal year ending July 31, 2024 | 3,424 |
For the fiscal year ending July 31, 2025 and thereafter | 20,745 |
Total minimum lease payments | $ 49,180 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Lessee, Lease, Description [Line Items] | |||
Rent expense | $ 8,825 | $ 3,804 | $ 3,560 |
Europe [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Rent expense | $ 5,202 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Postemployment Benefits [Abstract] | |||
Employer match and administrative fees for 401(k) plan | $ 3,197 | $ 2,689 | $ 1,797 |
Investments under employees deferred compensation plan | $ 53,828 | $ 43,316 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Stock Based Compensation And Stockholders Equity [Line Items] | |||
Total compensation expenses | $ 18,950,000 | $ 17,000,000 | $ 12,500,000 |
Obligation to repurchase common stock | 0 | ||
Total unrecognized compensation costs | $ 18,918,000 | ||
Period for recognition of compensation cost not yet recognized | 1 year 9 months 21 days | ||
Tax benefits from stock compensation expense | $ 4,550,000 | 4,930,000 | 4,625,000 |
Stock repurchase program authorized amount | 250,000,000 | ||
Stock repurchase program expiration date | Jun. 19, 2020 | ||
Amount Of Shares Repurchased Under The Programme | $ 0 | 0 | |
Restricted Stock Units (RSUs) | |||
Stock Based Compensation And Stockholders Equity [Line Items] | |||
Total compensation expenses | $ 18,950,000 | $ 17,000,000 | $ 12,399,000 |
2010 Equity Incentive Plan | |||
Stock Based Compensation And Stockholders Equity [Line Items] | |||
Number of shares authorized under stock option plan | 2,000,000 | ||
Number of shares available to be granted | 1,211,385 | ||
2016 Equity Incentive Plan | |||
Stock Based Compensation And Stockholders Equity [Line Items] | |||
Number of shares authorized under stock option plan | 2,000,000 | ||
Number of shares available to be granted | 1,378,729 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Restricted Stock Unit Activity (Detail) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Nonvested, beginning of year, Shares | 328,431 | 332,576 | 325,136 |
Granted, Shares | 310,924 | 171,340 | 166,567 |
Vested, Shares | (167,591) | (168,714) | (157,315) |
Forfeited, Shares | (20,201) | (6,771) | (1,812) |
Nonvested, end of year, Shares | 451,563 | 328,431 | 332,576 |
Nonvested, beginning of year, Weighted Average Grant Date Fair Value | $ 101.97 | $ 69.41 | $ 53.95 |
Granted, Weighted Average Grant Date Fair Value | 79.12 | 124.84 | 84.85 |
Vested, Weighted Average Grant Date Fair Value | 90.23 | 64.01 | 53.87 |
Forfeited, Weighted Average Grant Date Fair Value | 91.11 | 93.46 | 64.03 |
Nonvested, end of year, Weighted Average Grant Date Fair Value | $ 91.08 | $ 101.97 | $ 69.41 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregates of Revenue (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 7,864,758 | $ 8,328,909 | $ 7,246,952 |
Recreation Vehicles [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 7,694,758 | 8,155,015 | 7,098,957 |
Operating Segments | Recreation Vehicles [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 7,694,758 | 8,155,015 | 7,098,957 |
Operating Segments | North America [Member] | Recreation Vehicles [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 6,207,780 | 8,155,015 | 7,098,957 |
Operating Segments | Europe [Member] | Recreation Vehicles [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,486,978 | ||
Operating Segments | Travel Trailers And Other Towables | North America [Member] | Recreation Vehicles [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,710,308 | 3,646,581 | 3,088,561 |
Operating Segments | Fifth Wheels Towables | North America [Member] | Recreation Vehicles [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,848,143 | 2,362,119 | 2,038,930 |
Operating Segments | Towables | North America [Member] | Recreation Vehicles [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 4,558,451 | 6,008,700 | 5,127,491 |
Operating Segments | Class A Motorized | North America [Member] | Recreation Vehicles [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 761,176 | 1,000,881 | 914,681 |
Operating Segments | Class C Motorized | North America [Member] | Recreation Vehicles [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 824,449 | 1,047,376 | 968,899 |
Operating Segments | Class B Motorized | North America [Member] | Recreation Vehicles [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 63,704 | 98,058 | 87,886 |
Operating Segments | Motorized | Recreation Vehicles [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,649,329 | 2,146,315 | 1,971,466 |
Operating Segments | Motorized | North America [Member] | Recreation Vehicles [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,649,329 | 2,146,315 | 1,971,466 |
Operating Segments | Motorcaravan | Europe [Member] | Recreation Vehicles [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 960,155 | ||
Operating Segments | Campervan | Europe [Member] | Recreation Vehicles [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 201,089 | ||
Operating Segments | Caravan | Europe [Member] | Recreation Vehicles [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 172,144 | ||
Operating Segments | Other RV Related | Europe [Member] | Recreation Vehicles [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 153,590 | ||
Corporate and Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 263,374 | 305,947 | 253,557 |
Intercompany Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ (93,374) | $ (132,053) | $ (105,562) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) $ in Thousands | 12 Months Ended | |
Jul. 31, 2019USD ($) | ||
Balance at beginning of period | $ 0 | |
OCI before reclassifications | (57,916) | |
Income taxes associated with OCI before reclassifications | 523 | [1] |
Amounts reclassified from AOCI | (279) | |
Income taxes associated with amounts reclassified from AOCI | 74 | |
AOCI, net of tax | (57,598) | |
Less: OCI attributable to non-controlling interest | (594) | |
AOCI, net of tax attributable to Thor Industries, Inc. | (57,004) | |
Foreign Currency Translation | ||
Balance at beginning of period | 0 | |
OCI before reclassifications | (44,684) | |
Income taxes associated with OCI before reclassifications | (2,394) | [1] |
Amounts reclassified from AOCI | 0 | |
Income taxes associated with amounts reclassified from AOCI | 0 | |
AOCI, net of tax | (47,078) | |
Less: OCI attributable to non-controlling interest | (594) | |
AOCI, net of tax attributable to Thor Industries, Inc. | (46,484) | |
Unrealized Gain (Loss) on Derivatives | ||
Balance at beginning of period | 0 | |
OCI before reclassifications | (12,184) | |
Income taxes associated with OCI before reclassifications | 2,917 | [1] |
Amounts reclassified from AOCI | (279) | |
Income taxes associated with amounts reclassified from AOCI | 74 | |
AOCI, net of tax | (9,472) | |
Less: OCI attributable to non-controlling interest | 0 | |
AOCI, net of tax attributable to Thor Industries, Inc. | (9,472) | |
Other | ||
Balance at beginning of period | 0 | |
OCI before reclassifications | (1,048) | |
Income taxes associated with OCI before reclassifications | 0 | [1] |
Amounts reclassified from AOCI | 0 | |
Income taxes associated with amounts reclassified from AOCI | 0 | |
AOCI, net of tax | (1,048) | |
Less: OCI attributable to non-controlling interest | 0 | |
AOCI, net of tax attributable to Thor Industries, Inc. | $ (1,048) | |
[1] | We do not recognize deferred taxes for a majority of the foreign currency translation gains and losses because we do not anticipate reversal in the foreseeable future. |