Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Oct. 31, 2013 | Dec. 12, 2013 | 3-May-13 |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'TORO CO | ' | ' |
Entity Central Index Key | '0000737758 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Oct-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--10-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $2.60 |
Entity Common Stock, Shares Outstanding | ' | 56,808,317 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_STATEMENTS_OF_EAR
CONSOLIDATED STATEMENTS OF EARNINGS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
CONSOLIDATED STATEMENTS OF EARNINGS | ' | ' | ' |
Net sales | $2,041,431 | $1,958,690 | $1,883,953 |
Cost of sales | 1,316,634 | 1,285,596 | 1,247,306 |
Gross profit | 724,797 | 673,094 | 636,647 |
Selling, general, and administrative expense | 494,135 | 467,481 | 452,160 |
Operating earnings | 230,662 | 205,613 | 184,487 |
Interest expense | -16,210 | -16,906 | -16,970 |
Other income, net | 12,261 | 7,555 | 7,309 |
Earnings before income taxes | 226,713 | 196,262 | 174,826 |
Provision for income taxes | 71,868 | 66,721 | 57,168 |
Net earnings | $154,845 | $129,541 | $117,658 |
Basic net earnings per share of common stock (in dollars per share) | $2.67 | $2.18 | $1.88 |
Diluted net earnings per share of common stock (in dollars per share) | $2.62 | $2.14 | $1.85 |
Weighted-average number of shares of common stock outstanding - Basic (in shares) | 57,922 | 59,446 | 62,534 |
Weighted-average number of shares of common stock outstanding - Diluted (in shares) | 59,105 | 60,618 | 63,594 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' |
Net earnings | $154,845 | $129,541 | $117,658 |
Other comprehensive (loss) income, net of tax: | ' | ' | ' |
Foreign currency translation adjustments, net of tax of $247, $0, and $0, respectively | -2,342 | -2,532 | 104 |
Pension and retiree medical benefits, net of tax of $904, $279, and $(484), respectively | 645 | -528 | -539 |
Derivative instruments, net of tax of $(261), $(239), and $1,566, respectively | -899 | -88 | 2,671 |
Other comprehensive (loss) income, net | -2,596 | -3,148 | 2,236 |
Comprehensive income | $152,249 | $126,393 | $119,894 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' |
Foreign currency translation adjustments, tax | $247 | $0 | $0 |
Pension and retiree medical benefits, tax | 904 | 279 | -484 |
Derivative instruments, tax | ($261) | ($239) | $1,566 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $182,993 | $125,856 |
Receivables, net: | ' | ' |
Customers (net of $3,035 and $3,733, respectively, for allowance for doubtful accounts) | 147,475 | 144,241 |
Other | 9,696 | 3,169 |
Total receivables, net | 157,171 | 147,410 |
Inventories | 240,089 | 251,117 |
Prepaid expenses and other current assets | 33,258 | 24,437 |
Deferred income taxes | 39,756 | 63,314 |
Total current assets | 653,267 | 612,134 |
Property, plant, and equipment, net | 185,096 | 180,523 |
Other assets | 44,163 | 18,477 |
Goodwill | 91,914 | 92,000 |
Other intangible assets, net | 28,308 | 32,065 |
Total assets | 1,002,748 | 935,199 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Current portion of long-term debt | ' | 1,858 |
Accounts payable | 136,158 | 124,806 |
Accrued liabilities: | ' | ' |
Warranty | 72,177 | 69,848 |
Advertising and marketing programs | 64,191 | 56,264 |
Compensation and benefit costs | 53,500 | 51,591 |
Insurance | 18,184 | 19,227 |
Income taxes | 1,938 | 1,165 |
Other | 42,697 | 53,363 |
Total current liabilities | 388,845 | 378,122 |
Long-term debt, less current portion | 223,544 | 223,482 |
Deferred revenue | 10,899 | 11,143 |
Deferred income taxes | 5,969 | 2,280 |
Other long-term liabilities | 14,753 | 7,770 |
Stockholders' equity: | ' | ' |
Preferred stock, par value $1.00, authorized 1,000,000 voting and 850,000 non-voting shares, none issued and outstanding | ' | ' |
Common stock, par value $1.00, authorized 175,000,000 shares as of October 31, 2013 and 100,000,000 shares as of October 31, 2012; issued and outstanding 56,788,723 shares as of October 31, 2013 and 58,266,482 shares as of October 31, 2012 | 56,789 | 58,266 |
Retained earnings | 314,519 | 264,110 |
Accumulated other comprehensive loss | -12,570 | -9,974 |
Total stockholders' equity | 358,738 | 312,402 |
Total liabilities and stockholders' equity | $1,002,748 | $935,199 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Customers, allowance for doubtful accounts (in dollars) | $3,035 | $3,733 |
Preferred stock, par value (in dollars per share) | $1 | $1 |
Preferred stock, authorized voting shares | 1,000,000 | 1,000,000 |
Preferred stock, authorized non-voting shares | 850,000 | 850,000 |
Preferred stock, issued voting shares | 0 | 0 |
Preferred stock, issued non-voting shares | 0 | 0 |
Preferred stock, outstanding voting shares | 0 | 0 |
Preferred stock, outstanding non-voting shares | 0 | 0 |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, authorized shares | 175,000,000 | 100,000,000 |
Common stock, issued shares | 56,788,723 | 58,266,482 |
Common stock, outstanding shares | 56,788,723 | 58,266,482 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net earnings | $154,845 | $129,541 | $117,658 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' | ' |
Provision for depreciation, amortization, and impairment losses | 54,134 | 53,634 | 48,506 |
Noncash income from affiliates | -7,097 | -5,996 | -5,682 |
Decrease (increase) in deferred income taxes | 149 | -206 | -2,006 |
Stock-based compensation expense | 10,237 | 9,503 | 8,533 |
Other | 10 | -132 | -118 |
Changes in operating assets and liabilities, net of effect of acquisitions: | ' | ' | ' |
Receivables, net | -11,912 | -495 | -2,908 |
Inventories | 9,373 | -21,973 | -25,667 |
Prepaid expenses and other assets | -6,825 | -6,741 | -7,144 |
Accounts payable, accrued liabilities, deferred revenue, and other long-term liabilities | 18,962 | 28,663 | -17,295 |
Net cash provided by operating activities | 221,876 | 185,798 | 113,877 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Purchases of property, plant, and equipment | -49,427 | -43,242 | -57,447 |
Proceeds from asset disposals | 413 | 491 | 653 |
Distributions from finance affiliate, net | 6,342 | 5,091 | 3,034 |
Other | ' | ' | -360 |
Acquisitions, net of cash acquired | -2,101 | -9,663 | -15,155 |
Net cash used in investing activities | -44,773 | -47,323 | -69,275 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Repayments of short-term debt, net | -415 | -922 | -776 |
Repayments of long-term debt | -1,739 | -1,858 | -1,857 |
Excess tax benefits from stock-based awards | 6,134 | 9,017 | 2,988 |
Proceeds from exercise of stock options | 9,808 | 20,347 | 14,467 |
Purchases of Toro common stock | -99,587 | -93,395 | -129,955 |
Dividends paid on Toro common stock | -32,499 | -26,230 | -24,970 |
Net cash used in financing activities | -118,298 | -93,041 | -140,103 |
Effect of exchange rates on cash | -1,668 | -464 | -979 |
Net increase (decrease) in cash and cash equivalents | 57,137 | 44,970 | -96,480 |
Cash and cash equivalents as of the beginning of the fiscal year | 125,856 | 80,886 | 177,366 |
Cash and cash equivalents as of the end of the fiscal year | 182,993 | 125,856 | 80,886 |
Cash paid during the fiscal year for: | ' | ' | ' |
Interest | 17,054 | 17,147 | 17,120 |
Income taxes | 76,186 | 58,709 | 60,296 |
Shares issued in connection with stock-based compensation plans | 6,629 | 2,986 | 4,005 |
Payment obligations issued in connection with acquisitions | $1,395 | $100 | $3,515 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
In Thousands, unless otherwise specified | ||||
Balance at Oct. 31, 2010 | $275,810 | $62,790 | $222,082 | ($9,062) |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' |
Cash dividends paid on common stock - $0.56, $0.44 and $0.40 per share during 2013, 2012 and 2011, respectively | -24,970 | ' | -24,970 | ' |
Issuance of 669,426, 1,664,835 and 1,009,520 shares under stock-based compensation plans during 2013, 2012 and 2011, respectively | 22,868 | 1,009 | 21,859 | ' |
Contribution of stock to a deferred compensation trust | 132 | ' | 132 | ' |
Purchase of 2,147,185, 2,604,525 and 4,592,760 shares of common stock during 2013, 2012 and 2011, respectively | -129,955 | -4,593 | -125,362 | ' |
Excess tax benefits from stock-based awards | 2,988 | ' | 2,988 | ' |
Other comprehensive income (loss) | 2,236 | ' | ' | 2,236 |
Net earnings | 117,658 | ' | 117,658 | ' |
Balance at Oct. 31, 2011 | 266,767 | 59,206 | 214,387 | -6,826 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' |
Cash dividends paid on common stock - $0.56, $0.44 and $0.40 per share during 2013, 2012 and 2011, respectively | -26,230 | ' | -26,230 | ' |
Issuance of 669,426, 1,664,835 and 1,009,520 shares under stock-based compensation plans during 2013, 2012 and 2011, respectively | 29,595 | 1,665 | 27,930 | ' |
Contribution of stock to a deferred compensation trust | 255 | ' | 255 | ' |
Purchase of 2,147,185, 2,604,525 and 4,592,760 shares of common stock during 2013, 2012 and 2011, respectively | -93,395 | -2,605 | -90,790 | ' |
Excess tax benefits from stock-based awards | 9,017 | ' | 9,017 | ' |
Other comprehensive income (loss) | -3,148 | ' | ' | -3,148 |
Net earnings | 129,541 | ' | 129,541 | ' |
Balance at Oct. 31, 2012 | 312,402 | 58,266 | 264,110 | -9,974 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' |
Cash dividends paid on common stock - $0.56, $0.44 and $0.40 per share during 2013, 2012 and 2011, respectively | -32,499 | ' | -32,499 | ' |
Issuance of 669,426, 1,664,835 and 1,009,520 shares under stock-based compensation plans during 2013, 2012 and 2011, respectively | 18,574 | 670 | 17,904 | ' |
Contribution of stock to a deferred compensation trust | 1,466 | ' | 1,466 | ' |
Purchase of 2,147,185, 2,604,525 and 4,592,760 shares of common stock during 2013, 2012 and 2011, respectively | -99,588 | -2,147 | -97,441 | ' |
Excess tax benefits from stock-based awards | 6,134 | ' | 6,134 | ' |
Other comprehensive income (loss) | -2,596 | ' | ' | -2,596 |
Net earnings | 154,845 | ' | 154,845 | ' |
Balance at Oct. 31, 2013 | $358,738 | $56,789 | $314,519 | ($12,570) |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | ' | ' | ' |
Cash dividends paid on common stock (in dollars per share) | $0.56 | $0.44 | $0.40 |
Issuance of shares under stock-based compensation plans (in shares) | 669,426 | 1,664,835 | 1,009,520 |
Purchase of shares of common stock (in shares) | 2,147,185 | 2,604,525 | 4,592,760 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED DATA | 12 Months Ended | ||||||||||
Oct. 31, 2013 | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED DATA | ' | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED DATA | ' | ||||||||||
1 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED DATA | ||||||||||
Basis of Presentation and Consolidation | |||||||||||
The accompanying consolidated financial statements include the accounts of the company and its wholly owned subsidiaries. The company uses the equity method to account for investments over which it has the ability to exercise significant influence over operating and financial policies. Consolidated net earnings include the company's share of the net earnings (losses) of these companies. The cost method is used to account for investments in companies that the company does not control and for which it does not have the ability to exercise significant influence over operating and financial policies. These investments are recorded at cost. All intercompany accounts and transactions have been eliminated from the consolidated financial statements. | |||||||||||
Accounting Estimates | |||||||||||
In preparing the consolidated financial statements in conformity with United States ("U.S.") generally accepted accounting principles ("GAAP"), management must make decisions that impact the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures, including disclosures of contingent assets and liabilities. Such decisions include the selection of the appropriate accounting principles to be applied and the assumptions on which to base accounting estimates. Estimates are used in determining, among other items, sales promotions and incentive accruals, incentive compensation accruals, inventory valuation, warranty reserves, earnout liabilities, allowance for doubtful accounts, pension and postretirement accruals, self-insurance accruals, and useful lives of tangible and intangible assets. These estimates and assumptions are based on management's best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors that management believes to be reasonable under the circumstances, including the current economic environment. Management adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with certainty, actual amounts could differ significantly from those estimated at the time the consolidated financial statements are prepared. Changes in those estimates will be reflected in the consolidated financial statements in future periods. | |||||||||||
Reclassifications | |||||||||||
Certain amounts from prior years' financial statements have been reclassified to conform to the current year presentation. The reclassifications had no impact on results of operations as previously reported. | |||||||||||
Cash and Cash Equivalents | |||||||||||
The company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents and are stated at cost, which approximates fair value. As of October 31, 2013, cash and short-term investments held by the company's foreign subsidiaries that are not available to fund domestic operations unless repatriated were $24,837. | |||||||||||
Receivables | |||||||||||
The company's financial exposure to collection of accounts receivable is reduced due to its Red Iron Acceptance, LLC ("Red Iron") joint venture with TCF Inventory Finance, Inc. ("TCFIF"), as further discussed in Note 3. For receivables not serviced through Red Iron, the company grants credit to customers in the normal course of business and performs on-going credit evaluations of customers. Receivables are recorded at original carrying amount less reserves for estimated uncollectible accounts, as described below. | |||||||||||
Allowance for Doubtful Accounts | |||||||||||
The company estimates the balance of allowance for doubtful accounts by analyzing the age of account and note receivable balances and applying historical write-off trend rates. The company also estimates separately specific customer balances when it is deemed probable that the balance is uncollectible. Account balances are charged off against the allowance when all collection efforts have been exhausted. | |||||||||||
Inventory Valuations | |||||||||||
Inventories are valued at the lower of cost or net realizable value, with cost determined by the last-in, first-out ("LIFO") method for most inventories. The first-in, first-out ("FIFO") method is used for all other inventories, constituting 33 and 31 percent of total inventories as of October 31, 2013 and 2012, respectively. The company establishes a reserve for excess, slow-moving, and obsolete inventory that is equal to the difference between the cost and estimated net realizable value for that inventory. These reserves are based on a review and comparison of current inventory levels to the planned production, as well as planned and historical sales of the inventory. During fiscal 2013, LIFO layers were reduced. This reduction resulted in charging lower inventory costs prevailing in previous years to cost of sales, thus reducing cost of sales by $122. During fiscal 2012 and 2011, no LIFO inventory layers were reduced. | |||||||||||
Inventories as of October 31 were as follows: | |||||||||||
2013 | 2012 | ||||||||||
Raw materials and work in progress | $ | 87,668 | $ | 91,465 | |||||||
Finished goods and service parts | 217,796 | 223,459 | |||||||||
Total FIFO value | 305,464 | 314,924 | |||||||||
Less: adjustment to LIFO value | 65,375 | 63,807 | |||||||||
Total | $ | 240,089 | $ | 251,117 | |||||||
Property and Depreciation | |||||||||||
Property, plant, and equipment are carried at cost. The company provides for depreciation of plant and equipment utilizing the straight-line method over the estimated useful lives of the assets. Buildings, including leasehold improvements, are generally depreciated over 10 to 45 years, and equipment over two to seven years. Tooling costs are generally depreciated over three to five years using the straight-line method. Software and web site development costs are generally amortized over two to five years utilizing the straight-line method. Expenditures for major renewals and improvements, which substantially increase the useful lives of existing assets, are capitalized, and maintenance and repairs are charged to operating expenses as incurred. Interest is capitalized during the construction period for significant capital projects. During the fiscal years ended October 31, 2013, 2012, and 2011, the company capitalized $722, $256, and $230 of interest, respectively. | |||||||||||
Property, plant, and equipment as of October 31 was as follows: | |||||||||||
2013 | 2012 | ||||||||||
Land and land improvements | $ | 27,632 | $ | 27,325 | |||||||
Buildings and leasehold improvements | 133,866 | 129,353 | |||||||||
Machinery and equipment | 284,492 | 268,571 | |||||||||
Tooling | 173,039 | 166,319 | |||||||||
Computer hardware and software | 73,302 | 65,861 | |||||||||
Construction in process | 29,173 | 25,678 | |||||||||
Subtotal | 721,504 | 683,107 | |||||||||
Less: accumulated depreciation | 536,408 | 502,584 | |||||||||
Total property, plant, and equipment, net | $ | 185,096 | $ | 180,523 | |||||||
During fiscal years 2013, 2012, and 2011, the company recorded depreciation expense of $48,207, $46,840, and $43,539, respectively. | |||||||||||
Goodwill and Indefinite-Life Intangible Assets | |||||||||||
Goodwill represents the cost of acquisitions in excess of the fair values assigned to identifiable net assets acquired. Goodwill is assigned to reporting units based upon the expected benefit of the synergies of the acquisition. Goodwill and some trade names, which are considered to have indefinite lives, are not amortized; however, the company reviews them for impairment annually during each fourth fiscal quarter or more frequently if changes in circumstances or occurrence of events suggest the remaining value may not be recoverable. | |||||||||||
The company reviewed the fair value of its reporting units that have goodwill on their respective balance sheets with their corresponding carrying amount (with goodwill) during the fourth quarter of fiscal 2013. The company determined that it has eight reporting units, which are the same as its eight operating segments. Six reporting units contain goodwill on their respective balance sheets. As of August 30, 2013, the company performed an analysis of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a two-step goodwill impairment test. Based on the company's analysis of qualitative factors, the company determined that it was not necessary to perform a two-step goodwill impairment test for any of its reporting units. | |||||||||||
As of August 30, 2013, the company also performed an analysis of qualitative factors to determine whether it is more likely than not that its indefinite-life intangible assets, which consist of certain trade names, are impaired. Based on this analysis, the company concluded its indefinite-life intangible assets were not impaired. In fiscal 2012, the company determined that is was necessary to perform a quantitative impairment analysis of its indefinite-life intangible assets. Based on the company's impairment analysis, the company wrote down $400 of an indefinite-life intangible asset during fiscal 2012. | |||||||||||
Other Long-Lived Assets | |||||||||||
Other long-lived assets include property, plant, and equipment and definite-life intangible assets, which are identifiable assets that arose from purchase acquisitions consisting primarily of patents, non-compete agreements, customer relationships, trade names, and developed technology, and are amortized on a straight-line basis over periods ranging from 1.5 to 13 years. The company reviews other long-lived assets, including property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. An impairment loss is recognized when estimated undiscounted future cash flows from the operation or disposition of the asset group are less than the carrying amount of the asset group. Asset groups have identifiable cash flows and are largely independent of other asset groups. Measurement of an impairment loss is based on the excess of the carrying amount of the asset group over its fair value. Fair value is measured using a discounted cash flow model or independent appraisals, as appropriate. For long-lived assets to be abandoned, the company tests for potential impairment. If the company commits to a plan to abandon a long-lived asset before the end of its previously estimated useful life, depreciation estimates are revised. | |||||||||||
Based on the company's impairment analysis, the company wrote down $824, $691, and $109 of other long-lived assets during fiscal 2013, 2012, and 2011, respectively. | |||||||||||
Accounts Payable | |||||||||||
The company has a customer-managed services agreement with a third party to provide a web-based platform that facilitates participating suppliers' ability to finance payment obligations from the company with a designated third party financial institution. Participating suppliers may, at their sole discretion, make offers to finance one or more payment obligations of the company prior to their scheduled due dates at a discounted price to a participating financial institution. | |||||||||||
The company's obligations to its suppliers, including amounts due and scheduled payment dates, are not affected by suppliers' decisions to finance amounts under this arrangement. However, the company's right to offset balances due from suppliers against payment obligations is restricted by this arrangement for those payment obligations that have been financed by suppliers. As of October 31, 2013 and 2012, $16,572 and $16,159, respectively, of the company's outstanding payment obligations had been placed on the accounts payable tracking system. | |||||||||||
Insurance | |||||||||||
The company is self-insured for certain losses relating to medical, dental, and workers' compensation claims, and product liability occurrences. Specific stop loss coverages are provided for catastrophic claims in order to limit exposure to significant claims. Losses and claims are charged to operations when it is probable a loss has been incurred and the amount can be reasonably estimated. Self-insured liabilities are based on a number of factors, including historical claims experience, an estimate of claims incurred but not reported, demographic and severity factors, and utilizing valuations provided by independent third-party actuaries. | |||||||||||
Accrued Warranties | |||||||||||
The company provides an accrual for estimated future warranty costs at the time of sale. The company also establishes accruals for major rework campaigns. The amount of warranty accruals is based primarily on the estimated number of products under warranty, historical average costs incurred to service warranty claims, the trend in the historical ratio of claims to sales, and the historical length of time between the sale and resulting warranty claim. The company periodically assesses the adequacy of its warranty accruals based on changes in these factors and records any necessary adjustments if actual claim experience indicates that adjustments are necessary. | |||||||||||
The changes in accrued warranties were as follows: | |||||||||||
Fiscal years ended October 31 | 2013 | 2012 | |||||||||
Beginning balance | $ | 69,848 | $ | 62,730 | |||||||
Warranty provisions | 41,067 | 38,439 | |||||||||
Warranty claims | (35,529 | ) | (35,431 | ) | |||||||
Changes in estimates | (3,209 | ) | 3,910 | ||||||||
Additions from acquisitions | – | 200 | |||||||||
Ending balance | $ | 72,177 | $ | 69,848 | |||||||
Derivatives | |||||||||||
Derivatives, consisting mainly of forward currency contracts, are used to hedge most foreign currency transactions, including forecasted sales and purchases denominated in foreign currencies. The company also utilizes cross currency swaps to offset foreign currency intercompany loan exposures. Derivatives are recognized on the consolidated balance sheet at fair value. If the derivative is designated as a cash flow hedge, the effective portion of the change in the fair value of the derivative is recorded as a component of other comprehensive income within the consolidated statements of comprehensive income and the consolidated statements of stockholders' equity, and recognized in earnings when the hedged item affects earnings. Derivatives that do not meet the requirements for hedge accounting are adjusted to fair value through other income, net in the consolidated statements of earnings. | |||||||||||
Foreign Currency Translation and Transactions | |||||||||||
The functional currency of the company's foreign operations is generally the applicable local currency. The functional currency is translated into U.S. dollars for balance sheet accounts using current exchange rates in effect as of the balance sheet date and for revenue and expense accounts using a weighted-average exchange rate during the fiscal year. The translation adjustments are deferred as a component of other comprehensive income within the consolidated statements of comprehensive income and the consolidated statements of stockholders' equity. Gains or losses resulting from transactions denominated in foreign currencies are included in other income, net in the consolidated statements of earnings. | |||||||||||
Income Taxes | |||||||||||
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years that those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. A valuation allowance is provided when, in management's judgment, it is more likely than not that some portion or all of the deferred tax asset will not be realized. The company has reflected the necessary deferred tax assets and liabilities in the accompanying consolidated balance sheets. Management believes the future tax deductions will be realized principally through carryback to taxable income in prior years, future reversals of existing taxable temporary differences, and future taxable income. | |||||||||||
The company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The company also records interest and penalties related to unrecognized tax benefits in income tax expense. | |||||||||||
Revenue Recognition | |||||||||||
The company recognizes revenue for product sales when persuasive evidence of an arrangement exists, title and risk of ownership passes to the customer, the sales price is fixed or determinable, and collectability is probable. These criteria are typically met at the time product is shipped, or in the case of certain agreements, when product is delivered. A provision is made at the time the related revenue is recognized for estimated product returns, floor plan costs, rebates, and other sales promotional expenses. Sales, use, value-added, and other excise taxes are not recognized in revenue. Freight revenue billed to customers is included in net sales. | |||||||||||
The company ships some of its products to a key retailer's seasonal distribution centers on a consignment basis. The company retains title to its products stored at the seasonal distribution centers. As the company's products are removed from the seasonal distribution centers by the key retailer and shipped to the key retailer's stores, title passes from the company to the key retailer. At that time, the company invoices the key retailer and recognizes revenue for these consignment transactions. The company does not offer a right of return for products shipped to the key retailer's stores from the seasonal distribution centers. From time to time, the company also stores inventory on a consignment basis at other customers' locations. The amount of consignment inventory as of October 31, 2013 and 2012 was $18,283 and $20,339, respectively. | |||||||||||
Revenue earned from service and maintenance contracts is recognized ratably over the contractual period. Revenue from extended warranty programs is deferred at the time the contract is sold and amortized into net sales using the straight-line method over the extended warranty period. | |||||||||||
Sales Promotions and Incentives | |||||||||||
At the time of sale, the company records an estimate for sales promotion and incentive costs. Examples of sales promotion and incentive programs include rebate programs on certain professional products sold to distributors, volume discounts, retail financing support, commissions, and other sales discounts and promotional programs. The estimates of sales promotion and incentive costs are based on the terms of the arrangements with customers, historical payment experience, field inventory levels, volume purchases, and expectations for changes in relevant trends in the future. The expense of each program is classified as a reduction from gross sales. | |||||||||||
Cost of Sales | |||||||||||
Cost of sales primarily comprises direct materials and supplies consumed in the manufacture of product, as well as manufacturing labor, depreciation expense, and direct overhead expense necessary to convert purchased materials and supplies into finished product. Cost of sales also includes inbound freight costs, outbound freight costs for shipping products to customers, obsolescence expense, cost of services provided, and cash discounts on payments to vendors. | |||||||||||
Selling, General, and Administrative Expense | |||||||||||
Selling, general, and administrative expense primarily comprises payroll and benefit costs, occupancy and operating costs of distribution and corporate facilities, warranty expense, depreciation and amortization expense on non-manufacturing assets, advertising and marketing expenses, selling expenses, engineering and research costs, information systems costs, incentive and profit sharing expense, and other miscellaneous administrative costs, such as legal costs for internal and outside services that are expensed as incurred. | |||||||||||
Cost of Financing Distributor / Dealer Inventory | |||||||||||
The company enters into limited inventory repurchase agreements with a third party financing company and Red Iron. The company has repurchased immaterial amounts of inventory under these repurchase agreements over the last three fiscal years. However, an adverse change in retail sales could cause this situation to change, and thereby require the company to repurchase a portion of financed product. See Note 13 for additional information regarding the company's repurchase arrangements. | |||||||||||
Included as a reduction to net sales are costs associated with programs under which the company shares the expense of financing distributor and dealer inventories, referred to as floor plan expenses. This charge represents interest for a pre-established length of time based on a predefined rate from a contract with third party financing sources to finance distributor and dealer inventory purchases. These financing arrangements are used by the company as a marketing tool to assist customers to buy inventory. The financing costs for distributor and dealer inventories were $19,729, $19,492, and $16,394 for the fiscal years ended October 31, 2013, 2012, and 2011, respectively. | |||||||||||
Advertising | |||||||||||
General advertising expenditures are expensed the first time advertising takes place. Production costs associated with advertising are expensed in the period incurred. Cooperative advertising represents expenditures for shared advertising costs that the company reimburses to customers and is classified as a component of selling, general, and administrative expense. These obligations are accrued and expensed when the related revenues are recognized in accordance with the programs established for various product lines. Advertising costs were $48,071, $46,947, and $49,362 for the fiscal years ended October 31, 2013, 2012, and 2011, respectively. | |||||||||||
Stock-Based Compensation | |||||||||||
The company's stock-based compensation awards are generally granted to executive officers, other employees, and non-employee members of the company's Board of Directors, and include performance share awards that are contingent on the achievement of performance goals of the company, non-qualified stock options, restricted stock units, and restricted stock awards. Compensation expense equal to the grant date fair value is recognized for these awards over the vesting period and is classified in selling, general and administrative expense. See Note 10 for additional information regarding stock-based compensation plans. | |||||||||||
Net Earnings Per Share | |||||||||||
Basic net earnings per share is calculated using net earnings available to common stockholders divided by the weighted-average number of shares of common stock outstanding during the year plus the assumed issuance of contingent shares. Diluted net earnings per share is similar to basic net earnings per share except that the weighted-average number of shares of common stock outstanding plus the assumed issuance of contingent shares is increased to include the number of additional shares of common stock that would have been outstanding assuming the issuance of all potentially dilutive shares, such as common stock to be issued upon exercise of options, contingently issuable shares, and restricted common stock and units. | |||||||||||
Reconciliations of basic and diluted weighted-average shares of common stock outstanding are as follows: | |||||||||||
BASIC | |||||||||||
(Shares in thousands) | 2013 | 2012 | 2011 | ||||||||
Fiscal years ended October 31 | |||||||||||
Weighted-average number of shares of common stock | 57,898 | 59,440 | 62,530 | ||||||||
Assumed issuance of contingent shares | 24 | 6 | 4 | ||||||||
Weighted-average number of shares of common stock and assumed issuance of contingent shares | 57,922 | 59,446 | 62,534 | ||||||||
DILUTED | |||||||||||
(Shares in thousands) | 2013 | 2012 | 2011 | ||||||||
Fiscal years ended October 31 | |||||||||||
Weighted-average number of shares of common stock and assumed issuance of contingent shares | 57,922 | 59,446 | 62,534 | ||||||||
Effect of dilutive securities | 1,183 | 1,172 | 1,060 | ||||||||
Weighted-average number of shares of common stock, assumed issuance of contingent and restricted shares, and effect of dilutive securities | 59,105 | 60,618 | 63,594 | ||||||||
Incremental shares from options and restricted stock are computed by the treasury stock method. Options and restricted stock of 182,868, 33,427, and 417,436 during fiscal 2013, 2012, and 2011, were excluded from the computation of diluted earnings per share because they were anti-dilutive. | |||||||||||
Cash Flow Presentation | |||||||||||
The consolidated statements of cash flows are prepared using the indirect method, which reconciles net earnings to cash flow from operating activities. The necessary adjustments include the removal of timing differences between the occurrence of operating receipts and payments and their recognition in net earnings. The adjustments also remove from operating activities cash flows arising from investing and financing activities, which are presented separately from operating activities. Cash flows from foreign currency transactions and operations are translated at an average exchange rate for the period. Cash paid for acquisitions is classified as investing activities. | |||||||||||
New Accounting Pronouncement Adopted | |||||||||||
In February 2013, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU No. 2013-02 requires entities to disclose, for items reclassified out of accumulated other comprehensive income (loss) and into net income in their entirety, the effect of the reclassification on each affected net income line item. ASU No. 2013-02 also requires a cross reference to other required U.S. GAAP disclosures for accumulated other comprehensive income (loss) reclassification items that are not reclassified in their entirety into net income. The effective date of ASU No. 2013-02 is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2012, and early adoption is permitted. The company adopted this guidance in its fiscal 2013 fourth quarter. The adoption of this guidance did not have an impact on the company's consolidated financial statements. | |||||||||||
ACQUISITIONS
ACQUISITIONS | 12 Months Ended | ||
Oct. 31, 2013 | |||
ACQUISITIONS | ' | ||
ACQUISITIONS | ' | ||
2 | ACQUISITIONS | ||
On September 30, 2013, during the fourth quarter of fiscal 2013, the company completed the acquisition of certain assets and assumed certain liabilities for a company in China that manufactures water-efficient drip irrigation products, sprinklers, emitters, and filters for agriculture, landscaping, and green house production. The net purchase price of this acquisition was $3,496, of which $2,101 was paid in cash and the remaining balance of $1,395 will be paid in cash in fiscal 2014. | |||
On April 25, 2012, during the second quarter of fiscal 2012, the company completed the acquisition of certain assets for an equipment line of concrete and mortar mixers, material handlers, compaction equipment, and other concrete power tools for the rental and construction market. On February 10, 2012, also during the second quarter of fiscal 2012, the company completed the acquisition of certain assets and assumed certain liabilities for an equipment line of vibratory plows, trenchers, and horizontal directional drills for the underground utilities market. On December 9, 2011, during the first quarter of fiscal 2012, the company completed the acquisition of certain assets and assumed certain liabilities for a greens roller product line for the golf course market. The aggregate purchase price of these acquisitions was $11,112, which included cash payments and issuance of long-term notes. | |||
On June 24, 2011, the company completed the acquisition of certain assets of, and assumed certain liabilities for an equipment line of turf renovation equipment, including aerators, seeders, and power rakes, for the landscape, rental, municipal, and golf markets. On January 17, 2011, the company completed the acquisition of certain assets of, and assumed certain liabilities for a line of professionally installed landscape lighting fixtures and transformers for residential and commercial use. The aggregate net purchase price of these acquisitions during fiscal 2011 was $24,150, which included cash payments, the issuance of long-term notes, and estimated contingent consideration. The contingent consideration is based on annual financial results over certain thresholds as defined in the acquisition agreements. | |||
The purchase price of these acquisitions was allocated to the identifiable assets acquired and liabilities assumed based on estimates of their fair value, with the excess purchase price for acquisitions recorded as goodwill. Additional purchase accounting disclosures have been omitted given the immateriality of these acquisitions in relation to the company's consolidated financial condition and results of operations. See Note 5 for further details related to the acquired intangible assets. | |||
INVESTMENT_IN_JOINT_VENTURE
INVESTMENT IN JOINT VENTURE | 12 Months Ended | ||||||||||
Oct. 31, 2013 | |||||||||||
INVESTMENT IN JOINT VENTURE | ' | ||||||||||
INVESTMENT IN JOINT VENTURE | ' | ||||||||||
3 | INVESTMENT IN JOINT VENTURE | ||||||||||
In fiscal 2009, the company and TCFIF, a subsidiary of TCF National Bank, established Red Iron, a joint venture in the form of a Delaware limited liability company that provides inventory financing, including floor plan and open account receivable financing, to distributors and dealers of the company's products in the U.S. and select distributors of the company's products in Canada. Additionally, in connection with the joint venture, the company and an affiliate of TCFIF entered into an arrangement to provide inventory financing to dealers of the company's products in Canada. In fiscal 2012, the company and TCFIF entered into amendments to certain of the agreements pertaining to Red Iron, among other things, to extend the initial term of Red Iron until October 31, 2017, subject to unlimited automatic two-year extensions thereafter. Either the company or TCFIF may elect not to extend the initial term or any subsequent term by giving one-year notice to the other party of its intention not to extend the term. | |||||||||||
The company owns 45 percent of Red Iron and TCFIF owns 55 percent of Red Iron. The company accounts for its investment in Red Iron under the equity method of accounting. Each of the company and TCFIF contributed a specified amount of the estimated cash required to enable Red Iron to purchase the company's inventory financing receivables and to provide financial support for Red Iron's inventory financing programs. Red Iron borrows the remaining requisite estimated cash utilizing a $450,000 secured revolving credit facility established under a credit agreement between Red Iron and TCFIF. The company's total investment in Red Iron as of October 31, 2013 and 2012 was $13,300 and $12,545, respectively. The company has not guaranteed the outstanding indebtedness of Red Iron. The company has agreed to repurchase products repossessed by Red Iron and the TCFIF Canadian affiliate, up to a maximum aggregate amount of $7,500 in a calendar year. In addition, the company has provided recourse to Red Iron for certain outstanding receivables, which amounted to a maximum amount of $465 and $211 as of October 31, 2013 and 2012, respectively. | |||||||||||
Under the repurchase agreement between Red Iron and the company, Red Iron provides financing for certain dealers and distributors. These transactions are structured as an advance in the form of a payment by Red Iron to the company on behalf of a distributor or dealer with respect to invoices financed by Red Iron. These payments extinguish the obligation of the dealer or distributor to make payment to the company under the terms of the applicable invoice. Under separate agreements between Red Iron and the dealers and distributors, Red Iron provides loans to the dealers and distributors for the advances paid by Red Iron to the company. The net amount of new receivables financed for dealers and distributors under this arrangement during fiscal 2013, 2012, and 2011 was $1,211,470, $1,191,343, and $1,111,778, respectively. | |||||||||||
Summarized financial information for Red Iron is presented as follows: | |||||||||||
For the twelve months ended October 31 | 2013 | 2012 | 2011 | ||||||||
Revenue | $ | 22,418 | $ | 19,765 | $ | 17,116 | |||||
Net income | 15,776 | 13,326 | 11,070 | ||||||||
As of October 31 | 2013 | 2012 | |||||||||
Finance receivables, net | $ | 260,319 | $ | 239,008 | |||||||
Other assets | 4,040 | 1,274 | |||||||||
Total liabilities | 234,804 | 212,408 | |||||||||
OTHER_INCOME_NET
OTHER INCOME, NET | 12 Months Ended | ||||||||||
Oct. 31, 2013 | |||||||||||
OTHER INCOME, NET | ' | ||||||||||
OTHER INCOME, NET | ' | ||||||||||
4 | OTHER INCOME, NET | ||||||||||
Other income (expense) is as follows: | |||||||||||
Fiscal years ended October 31 | 2013 | 2012 | 2011 | ||||||||
Interest income | $ | 447 | $ | 786 | $ | 1,072 | |||||
Retail financing revenue | 1,093 | 1,106 | 966 | ||||||||
Foreign currency exchange rate loss | (702 | ) | (1,786 | ) | (1,751 | ) | |||||
Income from affiliates | 7,097 | 5,996 | 5,682 | ||||||||
Litigation recovery (settlements), net | 3,071 | (36 | ) | 543 | |||||||
Miscellaneous | 1,255 | 1,489 | 797 | ||||||||
Total other income, net | $ | 12,261 | $ | 7,555 | $ | 7,309 | |||||
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||
Oct. 31, 2013 | ||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | |||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | |||||||||||||
5 | GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||||
Goodwill – The changes in the net carrying amount of goodwill for fiscal 2013 and 2012 were as follows: | ||||||||||||||
Professional | Residential | Total | ||||||||||||
Segment | Segment | |||||||||||||
Balance as of October 31, 2011 | $80,990 | $11,030 | $ | 92,020 | ||||||||||
Translation adjustments | (6 | ) | (14 | ) | (20 | ) | ||||||||
Balance as of October 31, 2012 | $80,984 | $11,016 | $ | 92,000 | ||||||||||
Translation adjustments | (22 | ) | (64 | ) | (86 | ) | ||||||||
Balance as of October 31, 2013 | $80,962 | $10,952 | $ | 91,914 | ||||||||||
Other Intangible Assets – The components of other intangible assets were as follows: | ||||||||||||||
October 31, 2013 | Estimated | Gross | Accumulated | Net | ||||||||||
Life | Carrying | Amortization | ||||||||||||
(Years) | Amount | |||||||||||||
Patents | 1.5-13 | $ | 10,213 | $ | (8,537 | ) | $ | 1,676 | ||||||
Non-compete agreements | 1.5-10 | 6,849 | (4,488 | ) | 2,361 | |||||||||
Customer-related | 1.5-13 | 8,654 | (4,660 | ) | 3,994 | |||||||||
Developed technology | 1.5-10 | 28,224 | (13,478 | ) | 14,746 | |||||||||
Trade names | 1.5-5 | 1,515 | (865 | ) | 650 | |||||||||
Other | 800 | (800 | ) | – | ||||||||||
Total amortizable | 56,255 | (32,828 | ) | 23,427 | ||||||||||
Non-amortizable – trade names | 4,881 | – | 4,881 | |||||||||||
Total other intangible assets, net | $ | 61,136 | $ | (32,828 | ) | $ | 28,308 | |||||||
October 31, 2012 | Estimated | Gross | Accumulated | Net | ||||||||||
Life | Carrying | Amortization | ||||||||||||
(Years) | Amount | |||||||||||||
Patents | 1.5-13 | $ | 9,593 | $ | (8,031 | ) | $ | 1,562 | ||||||
Non-compete agreements | 1.5-10 | 6,303 | (3,656 | ) | 2,647 | |||||||||
Customer-related | 1.5-13 | 8,312 | (3,826 | ) | 4,486 | |||||||||
Developed technology | 1.5-10 | 27,727 | (10,196 | ) | 17,531 | |||||||||
Trade names | 1.5-5 | 1,515 | (557 | ) | 958 | |||||||||
Other | 800 | (800 | ) | – | ||||||||||
Total amortizable | 54,250 | (27,066 | ) | 27,184 | ||||||||||
Non-amortizable – trade names | 4,881 | – | 4,881 | |||||||||||
Total other intangible assets, net | $ | 59,131 | $ | (27,066 | ) | $ | 32,065 | |||||||
The change in gross carrying amount of other intangible assets of $2,005 from October 31, 2013 compared to October 31, 2012 was the result of intangible assets acquired from a company located in China and changes in foreign currency exchange rates. | ||||||||||||||
Amortization expense for intangible assets for the fiscal years ended October 31, 2013, 2012, and 2011 was $5,769, $6,008, and $4,967, respectively. Estimated amortization expense for the succeeding fiscal years is as follows: 2014, $5,623; 2015, $5,431; 2016, $4,912; 2017, $4,017; 2018, $1,989; and after 2018, $1,455. | ||||||||||||||
SHORTTERM_CAPITAL_RESOURCES
SHORT-TERM CAPITAL RESOURCES | 12 Months Ended | ||
Oct. 31, 2013 | |||
SHORT-TERM CAPITAL RESOURCES | ' | ||
SHORT-TERM CAPITAL RESOURCES | ' | ||
6 | SHORT-TERM CAPITAL RESOURCES | ||
As of October 31, 2013, the company had a $150,000 unsecured senior four-year revolving credit facility that expires in July 2015. Included in this $150,000 revolving credit facility is a sublimit of $20,000 for standby letters of credit and a sublimit for swingline loans of $20,000. At the election of the company, and the approval of the named borrowers on the revolving credit facility, the aggregate maximum principal amount available under the facility may be increased by an amount up to $100,000 in aggregate. Funds are available under the revolving credit facility for working capital, capital expenditures, and other lawful purposes, including, but not limited to, acquisitions and stock repurchases. Interest expense on this credit line is determined based on a LIBOR rate (or other rates quoted by the Administrative Agent, Bank of America, N.A.) plus a basis point spread defined in the credit agreement. The company had no outstanding short-term debt as of October 31, 2013 and 2012 under the revolving credit facility. The company's non-U.S. operations also maintain unsecured short-term lines of credit in the aggregate amount of $12,502. These facilities bear interest at various rates depending on the rates in their respective countries of operation. The company had no outstanding short-term debt as of October 31, 2013 and 2012 under these lines of credit. | |||
The revolving credit facility contains standard covenants, including, without limitation, financial covenants, such as the maintenance of minimum interest coverage and maximum debt to earnings ratios; and negative covenants, which among other things, limit loans and investments, disposition of assets, consolidations and mergers, transactions with affiliates, restricted payments, contingent obligations, liens and other matters customarily restricted in such agreements. Most of these restrictions are subject to certain minimum thresholds and exceptions. Under the revolving credit facility, the company is not limited in the amounts for payments of cash dividends and stock repurchases as long as the debt to earnings before interest, tax, depreciation, and amortization ("EBITDA") ratio from the previous quarter compliance certificate is less than or equal to 2.75; however, the company is limited to $50,000 per fiscal year if the debt to EBITDA ratio from the previous quarter compliance certificate is greater than 2.75. In fiscal 2013, 2012 and 2011, the company was not limited in the amount for payments of cash dividends and stock repurchases as its debt to EBITDA ratio was below 2.75. The company was in compliance with all covenants related to the lines of credit described above as of October 31, 2013 and 2012. | |||
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
LONG-TERM DEBT | ' | |||||||
LONG-TERM DEBT | ' | |||||||
7 | LONG-TERM DEBT | |||||||
A summary of long-term debt as of October 31 is as follows: | ||||||||
2013 | 2012 | |||||||
7.800% Debentures, due June 15, 2027 | $ | 100,000 | $ | 100,000 | ||||
6.625% Senior Notes, due May 1, 2037 | 123,544 | 123,482 | ||||||
Other | – | 1,858 | ||||||
Total long-term debt | 223,544 | 225,340 | ||||||
Less current portion | – | 1,858 | ||||||
Long-term debt, less current portion | $ | 223,544 | $ | 223,482 | ||||
On April 26, 2007, the company issued $125,000 in aggregate principal amount of 6.625% senior notes due May 1, 2037. The senior notes were priced at 98.513% of par value, and the resulting discount of $1,859 associated with the issuance of these senior notes is being amortized over the term of the notes using the effective interest rate method. The underwriting fee and direct debt issue costs totaling $1,524 will be amortized over the life of the notes. Although the coupon rate of the senior notes is 6.625%, the effective interest rate is 6.741% after taking into account the issuance discount. Interest on the senior notes is payable semi-annually on May 1 and November 1 of each year. The senior notes are unsecured senior obligations of the company and rank equally with the company's other unsecured and unsubordinated indebtedness from time to time outstanding. The indentures under which the senior notes were issued contain customary covenants and event of default provisions. The company may redeem some or all of the senior notes at any time at the greater of the full principal amount of the senior notes being redeemed or the present value of the remaining scheduled payments of principal and interest discounted to the redemption date on a semi-annual basis at the treasury rate plus 30 basis points, plus, in both cases, accrued and unpaid interest. In the event of the occurrence of both (i) a change of control of the company, and (ii) a downgrade of the notes below an investment grade rating by both Moody's Investors Service, Inc. and Standard & Poor's Ratings Services within a specified period, the company would be required to make an offer to purchase the senior notes at a price equal to 101% of the principal amount of the senior notes plus accrued and unpaid interest to the date of repurchase. | ||||||||
In connection with the issuance in June 1997 of $175,000 in long-term debt securities, the company paid $23,688 to terminate three forward-starting interest rate swap agreements with notional amounts totaling $125,000. These swap agreements had been entered into to reduce exposure to interest rate risk prior to the issuance of the new long-term debt securities. As of the inception of one of the swap agreements, the company had received payments that were recorded as deferred income to be recognized as an adjustment to interest expense over the term of the new debt securities. As of the date the swaps were terminated, this deferred income totaled $18,710. The excess termination fees over the deferred income recorded has been deferred and is being recognized as an adjustment to interest expense over the term of the debt securities issued. As of October 31, 2013, the company had $2,153 remaining in other assets for the excess termination fees over deferred income. | ||||||||
Principal payments required on long-term debt in each of the next five fiscal years ending October 31 are as follows: 2014, $0; 2015, $0; 2016, $0; 2017, $0; 2018, $0; and after 2018, $225,000. | ||||||||
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended | |||||||||||||
Oct. 31, 2013 | ||||||||||||||
STOCKHOLDERS' EQUITY | ' | |||||||||||||
STOCKHOLDERS' EQUITY | ' | |||||||||||||
8 | STOCKHOLDERS' EQUITY | |||||||||||||
Stock Split. On May 24, 2012, the company announced that its Board of Directors declared a two-for-one stock split of the company's common stock, effected in the form of a 100 percent stock dividend. The stock split was distributed or paid on June 29, 2012, to shareholders of record as of June 15, 2012. As a result of this action, approximately 29.4 million shares were issued to shareholders of record as of June 15, 2012. The par value of the common stock remains at $1.00 per share and; accordingly, approximately $29,390 was transferred from retained earnings to common stock. All share and per share amounts have been retroactively updated to reflect this stock split. | ||||||||||||||
Common Shares Authorized. On March 12, 2013, following the approval by the company's shareholders at its 2013 annual meeting of shareholders, the company amended its Restated Certificate of Incorporation by filing a Certificate of Amendment to Restated Certificate of Incorporation to increase the number of authorized shares from 100 million to 175 million. | ||||||||||||||
Stock Repurchase Program. On December 11, 2012, the company's Board of Directors authorized the repurchase of 5 million shares of the company's common stock in open-market or in privately negotiated transactions. This program has no expiration date but may be terminated by the Board at any time. During fiscal 2013, 2012, and 2011, the company paid $98,842, $92,719, and $129,955 to repurchase an aggregate of 2,131,615 shares, 2,591,039 shares, and 4,592,760 shares, respectively. As of October 31, 2013, 4,343,062 shares remained authorized for repurchase. | ||||||||||||||
Treasury Shares. As of October 31, 2013, the company had 21,275,717 treasury shares at a cost of $1,081,086. As of October 31, 2012, the company had 19,797,958 treasury shares at a cost of $1,012,536. On November 30, 2011, the company's Board of Directors authorized the retirement of 30 million treasury shares, as adjusted for the company's two-for-one stock split, previously discussed. | ||||||||||||||
Accumulated Other Comprehensive Loss. | ||||||||||||||
Components of accumulated other comprehensive loss ("AOCL"), net of tax, within the consolidated statements of stockholders' equity are as follows: | ||||||||||||||
As of October 31 | 2013 | 2012 | 2011 | |||||||||||
Foreign currency translation adjustments | $ | 7,778 | $ | 5,436 | $ | 2,904 | ||||||||
Pension and retiree medical benefits | 3,683 | 4,328 | 3,800 | |||||||||||
Derivative instruments | 1,109 | 210 | 122 | |||||||||||
Total accumulated other comprehensive loss | $ | 12,570 | $ | 9,974 | $ | 6,826 | ||||||||
The components and activity of accumulated other comprehensive loss are as follows: | ||||||||||||||
Foreign | Pension | Cash Flow | Total | |||||||||||
Currency | and Post- | Derivative | ||||||||||||
Translation | retirement | Instruments | ||||||||||||
Adjustments | Benefits | |||||||||||||
October 31, 2012 | $ | 5,436 | $ | 4,328 | $ | 210 | $ | 9,974 | ||||||
Other comprehensive loss before reclassifications | 2,342 | – | 1,870 | 4,212 | ||||||||||
Amounts reclassified from AOCL | – | (645 | ) | (971 | ) | (1,616 | ) | |||||||
Net current period other comprehensive loss (income) | $ | 2,342 | $ | (645 | ) | $ | 899 | $ | 2,596 | |||||
October 31, 2013 | $ | 7,778 | $ | 3,683 | $ | 1,109 | $ | 12,570 | ||||||
Accumulated other comprehensive loss associated with pension and postretirement benefits are included in Note 11. Details of amounts reclassified from accumulated other comprehensive loss to the respective line items in net earnings for cash flow derivative instruments are included in Note 14. | ||||||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Oct. 31, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
INCOME TAXES | ' | ||||||||||
9 | INCOME TAXES | ||||||||||
A reconciliation of the statutory federal income tax rate to the company's consolidated effective tax rate is summarized as follows: | |||||||||||
Fiscal years ended October 31 | 2013 | 2012 | 2011 | ||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | |||||
Increase (reduction) in income taxes resulting from: | |||||||||||
Domestic manufacturer's deduction | (2.0 | ) | (2.0 | ) | (1.8 | ) | |||||
State and local income taxes, net of federal income tax benefit | 1.5 | 1.5 | 1.4 | ||||||||
Effect of foreign source income | (0.3 | ) | 0.2 | 0.2 | |||||||
Domestic research tax credit | (2.4 | ) | (0.2 | ) | (2.4 | ) | |||||
Other, net | (0.1 | ) | (0.5 | ) | 0.3 | ||||||
Consolidated effective tax rate | 31.7 | % | 34 | % | 32.7 | % | |||||
Components of the provision for income taxes were as follows: | |||||||||||
Fiscal years ended October 31 | 2013 | 2012 | 2011 | ||||||||
Provision for income taxes: | |||||||||||
Current – | |||||||||||
Federal | $ | 61,388 | $ | 59,405 | $ | 47,922 | |||||
State | 5,108 | 4,609 | 3,963 | ||||||||
Non-U.S. | 5,734 | 3,854 | 7,103 | ||||||||
Current provision | $ | 72,230 | $ | 67,868 | $ | 58,988 | |||||
Deferred – | |||||||||||
Federal | $ | 824 | $ | (685 | ) | $ | (31 | ) | |||
State | 91 | (132 | ) | (211 | ) | ||||||
Non-U.S. | (1,277 | ) | (330 | ) | (1,578 | ) | |||||
Deferred benefit | (362 | ) | (1,147 | ) | (1,820 | ) | |||||
Total provision for income taxes | $ | 71,868 | $ | 66,721 | $ | 57,168 | |||||
Earnings before income taxes were as follows: | |||||||||||
Fiscal years ended October 31 | 2013 | 2012 | 2011 | ||||||||
Earnings before income taxes: | |||||||||||
U.S. | $ | 213,509 | $ | 189,206 | $ | 160,444 | |||||
Non-U.S. | 13,204 | 7,056 | 14,382 | ||||||||
Total | $ | 226,713 | $ | 196,262 | $ | 174,826 | |||||
During the fiscal years ended October 31, 2013, 2012, and 2011, respectively, $6,134, $9,017, and $2,988 was added to stockholders' equity reflecting the permanent book to tax difference in accounting for tax benefits related to employee stock-based award transactions. | |||||||||||
The tax effects of temporary differences that give rise to the net deferred income tax assets are presented below: | |||||||||||
October 31 | 2013 | 2012 | |||||||||
Deferred tax assets (liabilities): | |||||||||||
Allowance for doubtful accounts | $ | 1,635 | $ | 1,959 | |||||||
Inventory items | 3,969 | 4,595 | |||||||||
Warranty reserves and other accruals | 38,168 | 39,559 | |||||||||
Employee benefits | 18,315 | 16,466 | |||||||||
Depreciation | (2,467 | ) | (4,389 | ) | |||||||
Other | 5,550 | 9,625 | |||||||||
Deferred tax assets | $ | 65,170 | $ | 67,815 | |||||||
Valuation allowance | (5,572 | ) | (6,781 | ) | |||||||
Net deferred tax assets | $ | 59,598 | $ | 61,034 | |||||||
The valuation allowance as of October 31, 2013 and 2012 principally applies to capital loss carryforwards and foreign net operating loss carryforwards that are expected to expire prior to utilization. | |||||||||||
As of October 31, 2013, the company had net operating loss carryforwards of approximately $16,679 in foreign jurisdictions. The carryforward periods on the company's foreign loss carryforwards are as follows: $10,477 that do not expire; none that expire in fiscal years 2014 thru 2017; and $6,202 that expire between fiscal years 2018 and 2021. | |||||||||||
As of October 31, 2013, the company had approximately $52,587 of accumulated undistributed earnings from subsidiaries outside the U.S. that are considered to be reinvested indefinitely. No deferred tax liability has been provided for such earnings. | |||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||
Balance as of October 31, 2012 | $ | 4,421 | |||||||||
Decrease as a result of tax positions taken during a prior period | (626 | ) | |||||||||
Increase as a result of tax positions taken during the current period | 940 | ||||||||||
Decrease relating to settlements with taxing authorities | (214 | ) | |||||||||
Reduction as a result of a lapse of the applicable statute of limitations | (15 | ) | |||||||||
Balance as of October 31, 2013 | $ | 4,506 | |||||||||
Included in the balance of unrecognized tax benefits as of October 31, 2013 are potential benefits of $3,276 that, if recognized, would affect the effective tax rate from continuing operations. | |||||||||||
The company recognizes potential accrued interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes. In addition to the liability of $4,506 for unrecognized tax benefits as of October 31, 2013 was an amount of approximately $66 for accrued interest and penalties. To the extent interest and penalties are not assessed with respect to uncertain tax positions, the amounts accrued will be revised and reflected as an adjustment to the provision for income taxes. | |||||||||||
The company anticipates that total unrecognized tax benefits will not change significantly within the next 12 months. | |||||||||||
The company is subject to U.S. federal income tax as well as income tax of numerous state and foreign jurisdictions. The company is generally no longer subject to U.S. federal tax examinations for taxable years before fiscal 2010 and with limited exceptions, state and foreign income tax examinations for fiscal years before 2008. | |||||||||||
STOCKBASED_COMPENSATION_PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended | |||||||||||
Oct. 31, 2013 | ||||||||||||
STOCK-BASED COMPENSATION PLANS | ' | |||||||||||
STOCK-BASED COMPENSATION PLANS | ' | |||||||||||
10 | STOCK-BASED COMPENSATION PLANS | |||||||||||
The company maintains The Toro Company 2010 Equity and Incentive Plan, as amended, for officers, other employees, and non-employee members of the company's Board of Directors. The company's incentive plan allows it to grant equity-based compensation awards, including stock options, restricted stock and restricted stock unit awards, and performance share awards. | ||||||||||||
The compensation costs related to stock-based awards were as follows: | ||||||||||||
Fiscal years ended October 31 | 2013 | 2012 | 2011 | |||||||||
Stock option awards | $ | 4,710 | $ | 4,200 | $ | 4,654 | ||||||
Restricted stock and restricted stock unit awards | 1,694 | 1,721 | 699 | |||||||||
Performance share awards | 3,833 | 3,582 | 3,180 | |||||||||
Total compensation cost for stock-based awards | $ | 10,237 | $ | 9,503 | $ | 8,533 | ||||||
Tax benefit realized for tax deductions from stock-based awards | $ | 10,614 | $ | 13,266 | $ | 4,469 | ||||||
The number of unissued shares of common stock available for future equity-based grants under the company's equity-based compensation plan was 3,873,904 as of October 31, 2013. Stock options, restricted stock and restricted stock units, and performance shares are issued from treasury shares. | ||||||||||||
Stock Option Awards. Under the company's incentive plan, stock options are granted with an exercise price equal to the closing price of the company's common stock on the date of grant, as reported by the New York Stock Exchange. Options are generally granted to officers, other employees, and non-employee members of the company's Board of Directors on an annual basis in the first quarter of the company's fiscal year. Options generally vest one-third each year over a three-year period and have a ten-year term. Other options granted to certain non-officer employees vest in full on the three-year anniversary of the date of grant and have a ten-year term. Compensation expense equal to the grant date fair value is generally recognized for these awards over the vesting period. Stock options granted to officers and other employees are subject to accelerated expensing if the option holder meets the retirement definition set forth in the plan. In that case, the fair value of the options is expensed in the fiscal year of grant because the option holder must be employed as of the end of the fiscal year in which the options are granted in order for the options to continue to vest following retirement. Similarly, if a non-employee director has served on the company's Board of Directors for ten full fiscal years or more, the fair value of the options granted is fully expensed on the date of the grant. | ||||||||||||
The table below presents stock option activity for fiscal 2013: | ||||||||||||
Stock | Weighted | Weighted | Intrinsic | |||||||||
Option | Average | Average | Value | |||||||||
Awards | Exercise | Contractual | ||||||||||
Price | Life(years) | |||||||||||
Outstanding as of October 31, 2012 | 3,199,816 | $22.54 | 6 | $ | 62,982 | |||||||
Granted | 381,639 | 42.14 | ||||||||||
Exercised | (498,513 | ) | 18.63 | |||||||||
Cancelled | (13,164 | ) | 35.91 | |||||||||
Outstanding as of October 31, 2013 | 3,069,778 | $25.55 | 5.9 | $ | 102,493 | |||||||
Exercisable as of October 31, 2013 | 2,220,781 | $21.97 | 4.9 | $ | 82,099 | |||||||
As of October 31, 2013, there was $1,712 of total unrecognized compensation expense related to unvested stock options. That cost is expected to be recognized over a weighted-average period of 1.9 years. | ||||||||||||
The following table presents the total market value of stock options exercised and the total intrinsic value of options exercised during the following fiscal years: | ||||||||||||
Fiscal years ended October 31 | 2013 | 2012 | 2011 | |||||||||
Market value of stock options exercised | $ | 23,160 | $ | 35,901 | $ | 25,592 | ||||||
Intrinsic value of options exercised | 13,875 | 16,061 | 11,434 | |||||||||
The fair value of each stock option is estimated on the date of grant using the Black-Scholes valuation method with the assumptions noted in the table below. The expected life is a significant assumption as it determines the period for which the risk-free interest rate, volatility, and dividend yield must be applied. The expected life is the average length of time in which officers, other employees, and non-employee directors are expected to exercise their stock options, which is primarily based on historical experience. Separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. Expected volatilities are based on the movement of the company's common stock over the most recent historical period equivalent to the expected life of the option. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury rate over the expected life at the time of grant. Dividend yield is estimated over the expected life based on the company's historical cash dividends paid, expected future cash dividends and dividend yield, and expected changes in the company's stock price. | ||||||||||||
The following table illustrates the valuation assumptions of stock-based compensation for the following fiscal years: | ||||||||||||
Fiscal years ended October 31 | 2013 | 2012 | 2011 | |||||||||
Expected life of option in years | 6 | 6 | 6 | |||||||||
Expected volatility | 35.18% – 35.19% | 34.87% – 35.02% | 33.34% – 33.43% | |||||||||
Weighted-average volatility | 35.19% | 35.01% | 33.42% | |||||||||
Risk-free interest rate | 0.88% | 1.20% | 1.72% – 2.36% | |||||||||
Expected dividend yield | 1.04% – 1.07% | 1.31% – 1.40% | 1.04% – 1.16% | |||||||||
Weighted-average dividend yield | 1.07% | 1.32% | 1.05% | |||||||||
Weighted-average fair value at date of grant | $13.03 | $8.56 | $10.15 | |||||||||
Restricted Stock and Restricted Stock Unit Awards. Under the company's incentive plan, restricted stock and restricted stock unit awards are generally granted to certain non-officer employees. Occasionally, restricted stock or restricted stock unit awards may be granted in connection with hiring, mid-year promotions, leadership transition, or retention. In fiscal 2013, the company began granting restricted stock unit awards. Restricted stock and restricted stock unit awards generally vest one-third each year over a three-year period, or vest in full on the three-year anniversary of the date of grant. Such awards may have performance-based rather than time-based vesting requirements. Compensation expense equal to the grant date fair value, which is equal to the closing price of the company's common stock on the date of grant multiplied by the number of shares subject to the restricted stock and restricted stock unit awards, is recognized for these awards over the vesting period. | ||||||||||||
The company granted restricted stock and restricted stock unit awards during the following fiscal years as follows: | ||||||||||||
Fiscal years ended October 31 | 2013 | 2012 | 2011 | |||||||||
Weighted-average fair value at date of grant | $ | 46.1 | $ | 33.61 | $ | 27.17 | ||||||
Fair value of restricted stock and restricted stock unit awards vested | 1,207 | 967 | 37 | |||||||||
The table below summarizes the activity during fiscal 2013 for unvested restricted stock and restricted stock unit awards: | ||||||||||||
Restricted | Weighted- | |||||||||||
Stock and | Average Fair | |||||||||||
Units | Value at Date | |||||||||||
of Grant | ||||||||||||
Unvested as of October 31, 2012 | 114,914 | $ | 30.02 | |||||||||
Granted | 41,270 | 46.1 | ||||||||||
Vested | (42,214 | ) | 28.59 | |||||||||
Forfeited | (4,682 | ) | 37.45 | |||||||||
Unvested as of October 31, 2013 | 109,288 | $ | 36.32 | |||||||||
As of October 31, 2013, there was $1,894 of total unrecognized compensation expense related to unvested restricted stock and restricted stock unit awards. That cost is expected to be recognized over a weighted-average period of 2.1 years. | ||||||||||||
Performance Share Awards. The company grants performance share awards to executive officers and other employees under which they are entitled to receive shares of the company's common stock contingent on the achievement of performance goals of the company, which are generally measured over a three-year period. The number of shares of common stock a participant receives will be increased (up to 200 percent of target levels) or reduced (down to zero) based on the level of achievement of performance goals and vest at the end of a three-year period. Performance share awards are generally granted on an annual basis in the first quarter of the company's fiscal year. Compensation expense is recognized for these awards on a straight-line basis over the vesting period based on the per share fair value as of the date of grant and the probability of achieving each performance goal. | ||||||||||||
The company granted performance share awards as follows: | ||||||||||||
Fiscal years ended October 31 | 2013 | 2012 | 2011 | |||||||||
Weighted-average fair value at date of grant | $ | 42.06 | $ | 28.24 | $ | 31.76 | ||||||
Fair value of performance share awards vested | 9,057 | 1,828 | 1,429 | |||||||||
The table below summarizes the activity during fiscal 2013 for unvested performance share awards: | ||||||||||||
Performance | Weighted- | |||||||||||
Shares | Average Fair | |||||||||||
Value at Date | ||||||||||||
of Grant | ||||||||||||
Unvested as of October 31, 2012 | 583,332 | $ | 26.33 | |||||||||
Granted | 152,800 | 42.06 | ||||||||||
Vested | (215,332 | ) | 20.37 | |||||||||
Forfeited | – | – | ||||||||||
Unvested as of October 31, 2013 | 520,800 | $ | 33.41 | |||||||||
As of October 31, 2013, there was $3,497 of total unrecognized compensation expense related to unvested performance share awards. That cost is expected to be recognized over a weighted-average period of 1.7 years. | ||||||||||||
EMPLOYEE_RETIREMENT_PLANS
EMPLOYEE RETIREMENT PLANS | 12 Months Ended | ||||||||||
Oct. 31, 2013 | |||||||||||
EMPLOYEE RETIREMENT PLANS | ' | ||||||||||
EMPLOYEE RETIREMENT PLANS | ' | ||||||||||
11 | EMPLOYEE RETIREMENT PLANS | ||||||||||
The company maintains The Toro Company Investment, Savings, and Employee Stock Ownership Plan for eligible employees. The company's expenses under this plan were $14,931, $14,304, and $12,686 for the fiscal years ended October 31, 2013, 2012, and 2011, respectively. | |||||||||||
In addition, the company and its subsidiaries have defined benefit, supplemental, and other retirement plans covering certain employees in the U.S. and the United Kingdom. The projected benefit obligation of these plans as of October 31, 2013 and 2012 was $42,034 and $41,701, respectively, and the net liability amount recognized in the consolidated balance sheets as of October 31, 2013 and 2012 was $3,982 and $3,881, respectively. The accumulated benefit obligation of these plans as of October 31, 2013 and 2012 was $39,967 and $39,612, respectively. The funded status of these plans as of October 31, 2013 and 2012 was $9,063 and $10,510, respectively. The fair value of the plan assets as of October 31, 2013 and 2012 was $32,971 and $31,191, respectively. The net expense recognized in the consolidated financial statements for these plans was $1,149, $703, and $1,520 for the fiscal years ended October 31, 2013, 2012, and 2011, respectively. | |||||||||||
Amounts recognized in accumulated other comprehensive loss consisted of: | |||||||||||
Fiscal years ended | Defined Benefit | Other Postretirement | Total | ||||||||
October 31 | Pension Plans | Benefit Plans | |||||||||
2013 | |||||||||||
Net actuarial loss | $ | 2,915 | $ | 611 | $ | 3,526 | |||||
Net prior service cost (credit) | 289 | (132 | ) | 157 | |||||||
Accumulated other comprehensive loss | $ | 3,204 | $ | 479 | $ | 3,683 | |||||
2012 | |||||||||||
Net actuarial loss | $ | 3,316 | $ | 926 | $ | 4,242 | |||||
Net prior service cost (credit) | 324 | (238 | ) | 86 | |||||||
Accumulated other comprehensive loss | $ | 3,640 | $ | 688 | $ | 4,328 | |||||
The following amounts are included in accumulated other comprehensive loss as of October 31, 2013 and are expected to be recognized as components of net periodic benefit cost during fiscal 2014. | |||||||||||
Defined Benefit | Other | Total | |||||||||
Pension Plans | Postretirement | ||||||||||
Benefit Plans | |||||||||||
Net actuarial loss | $ | 424 | $ | 14 | $ | 438 | |||||
Net prior service cost (credit) | 51 | (168 | ) | (117 | ) | ||||||
Total | $ | 475 | $ | (154 | ) | $ | 321 | ||||
Amounts recognized in net periodic benefit cost and other comprehensive income consisted of: | |||||||||||
Fiscal years ended | Defined Benefit | Other | Total | ||||||||
October 31 | Pension Plans | Postretirement | |||||||||
Benefit Plans | |||||||||||
2013 | |||||||||||
Net actuarial gain | $ | (1,170 | ) | $ | (283 | ) | $ | (1,453 | ) | ||
Amortization of unrecognized prior service (credit) cost | (34 | ) | 106 | 72 | |||||||
Amortization of unrecognized actuarial loss (gain) | 768 | (32 | ) | 736 | |||||||
Total recognized in other comprehensive loss (income) | $ | (436 | ) | $ | (209 | ) | $ | (645 | ) | ||
Total recognized in net periodic benefit cost and other comprehensive loss (income) | $ | 117 | $ | 387 | $ | 504 | |||||
2012 | |||||||||||
Net actuarial loss (gain) | $ | 298 | $ | (1,130 | ) | $ | (832 | ) | |||
Curtailment loss | 311 | – | 311 | ||||||||
Prior service cost | 186 | – | 186 | ||||||||
Amortization of unrecognized prior service (credit) cost | (55 | ) | 106 | 51 | |||||||
Amortization of unrecognized actuarial loss (gain) | 919 | (107 | ) | 812 | |||||||
Total recognized in other comprehensive loss (income) | $ | 1,659 | $ | (1,131 | ) | $ | 528 | ||||
Total recognized in net periodic benefit cost and other comprehensive loss (income) | $ | 1,522 | $ | (291 | ) | $ | 1,231 | ||||
The company has omitted the remaining disclosures for its defined benefit plans and postretirement healthcare plan as the company deems these plans to be immaterial to its consolidated financial position and results of operations. | |||||||||||
SEGMENT_DATA
SEGMENT DATA | 12 Months Ended | |||||||||||||
Oct. 31, 2013 | ||||||||||||||
SEGMENT DATA | ' | |||||||||||||
SEGMENT DATA | ' | |||||||||||||
12 | SEGMENT DATA | |||||||||||||
The company's businesses are organized, managed, and internally grouped into segments based on differences in products and services. Segment selection was based on the manner in which management organizes segments for making operating and investment decisions and assessing performance. The company has identified eight operating segments and has aggregated those segments into three reportable segments: Professional, Residential, and Distribution. The aggregation of the company's segments is based on the segments having the following similarities: economic characteristics, types of products and services, types of production processes, type or class of customers, and method of distribution. The company's Distribution segment, which consists of company-owned domestic distributorships, has been combined with the company's corporate activities and elimination of intersegment revenues and expenses and is shown as "Other" due to the insignificance of the segment. | ||||||||||||||
The Professional business segment consists of turf and landscape equipment and irrigation products. Turf and landscape equipment products include sports fields and grounds maintenance equipment, golf course mowing and maintenance equipment, landscape contractor mowing equipment, landscape creation and renovation equipment, rental and construction equipment, and other maintenance equipment. Irrigation and lighting products consist of sprinkler heads, electric and hydraulic valves, controllers, computer irrigation central control systems, and micro-irrigation drip tape and hose products, as well as professionally installed lighting products offered through distributors and landscape contractors that also purchase irrigation products. Professional business segment products are sold mainly through a network of distributors and dealers to professional users engaged in maintaining golf courses, sports fields, municipal properties, agricultural fields, and residential and commercial landscapes, as well as directly to government customers, rental companies, and large retailers. | ||||||||||||||
The Residential business segment consists of walk power mowers, riding mowers, snow throwers, replacement parts, and home solutions products, including trimmers, blowers, blower-vacuums, and underground and hose-end retail irrigation products sold in Australia. Residential business segment products are sold to homeowners through a network of distributors and dealers, and through a broad array of home centers, hardware retailers, and mass retailers, as well as over the Internet. | ||||||||||||||
The Other segment consists of the company's Distribution segment and corporate activities and elimination of intersegment revenues and expenses. Corporate activities include general corporate expenditures (finance, human resources, legal, information services, public relations, and similar activities) and other unallocated corporate assets and liabilities, such as corporate facilities, parts inventory, and deferred tax assets. | ||||||||||||||
The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1. The company evaluates the performance of its professional and residential business segment results based on earnings from operations plus other income, net. Operating loss for the Other segment includes earnings (loss) from domestic wholly owned distribution companies, corporate activities, other income, and interest expense. The business segment's operating profits or losses include direct costs incurred at the segment's operating level plus allocated expenses, such as profit sharing and manufacturing expenses. The allocated expenses represent costs that these operations would have incurred otherwise, but do not include general corporate expenses, interest expense, and income taxes. The company accounts for intersegment gross sales at current market prices. | ||||||||||||||
The following table shows summarized financial information concerning the company's reportable segments: | ||||||||||||||
Fiscal years ended October 31 | Professional | Residential | Other | Total | ||||||||||
2013 | ||||||||||||||
Net sales | $ | 1,425,259 | $ | 594,411 | $ | 21,761 | $ | 2,041,431 | ||||||
Intersegment gross sales | 40,416 | 402 | (40,818 | ) | – | |||||||||
Earnings (loss) before income taxes | 254,424 | 62,033 | (89,744 | ) | 226,713 | |||||||||
Total assets | 528,926 | 167,918 | 305,904 | 1,002,748 | ||||||||||
Capital expenditures | 32,362 | 7,838 | 9,227 | 49,427 | ||||||||||
Depreciation and amortization | 34,706 | 10,321 | 9,107 | 54,134 | ||||||||||
2012 | ||||||||||||||
Net sales | $ | 1,329,504 | $ | 607,435 | $ | 21,751 | $ | 1,958,690 | ||||||
Intersegment gross sales | 37,324 | 26 | (37,350 | ) | – | |||||||||
Earnings (loss) before income taxes | 232,104 | 57,889 | (93,731 | ) | 196,262 | |||||||||
Total assets | 527,159 | 169,899 | 238,141 | 935,199 | ||||||||||
Capital expenditures | 29,313 | 4,164 | 9,765 | 43,242 | ||||||||||
Depreciation and amortization | 34,876 | 10,919 | 7,839 | 53,634 | ||||||||||
2011 | ||||||||||||||
Net sales | $ | 1,239,068 | $ | 623,889 | $ | 20,996 | $ | 1,883,953 | ||||||
Intersegment gross sales | 35,539 | 3,560 | (39,099 | ) | – | |||||||||
Earnings (loss) before income taxes | 205,009 | 54,410 | (84,593 | ) | 174,826 | |||||||||
Total assets | 497,388 | 202,222 | 171,053 | 870,663 | ||||||||||
Capital expenditures | 43,933 | 5,615 | 7,899 | 57,447 | ||||||||||
Depreciation and amortization | 31,380 | 9,846 | 7,280 | 48,506 | ||||||||||
The following table presents the details of the other segment operating loss before income taxes: | ||||||||||||||
Fiscal years ended October 31 | 2013 | 2012 | 2011 | |||||||||||
Corporate expenses | $ | (85,359 | ) | $ | (81,376 | ) | $ | (72,726 | ) | |||||
Interest expense | (16,210 | ) | (16,906 | ) | (16,970 | ) | ||||||||
Other income | 11,825 | 4,551 | 5,103 | |||||||||||
Total | $ | (89,744 | ) | $ | (93,731 | ) | $ | (84,593 | ) | |||||
The following table presents net sales for groups of similar products and services: | ||||||||||||||
Fiscal years ended October 31 | 2013 | 2012 | 2011 | |||||||||||
Equipment | $ | 1,649,489 | $ | 1,586,864 | $ | 1,529,470 | ||||||||
Irrigation and lighting | 391,942 | 371,826 | 354,483 | |||||||||||
Total | $ | 2,041,431 | $ | 1,958,690 | $ | 1,883,953 | ||||||||
Sales to one customer in the residential segment accounted for 10 percent of total consolidated gross sales in fiscal 2013 and 11 percent of consolidated gross sales in both fiscal 2012 and 2011. | ||||||||||||||
Geographic Data | ||||||||||||||
The following geographic area data includes net sales based on product shipment destination. Long-lived assets consist of net property, plant, and equipment, which is determined based on physical location in addition to allocated capital tooling from U.S. plant facilities. | ||||||||||||||
Fiscal years ended October 31 | United | Foreign | Total | |||||||||||
States | Countries | |||||||||||||
2013 | ||||||||||||||
Net sales | $ | 1,426,060 | $ | 615,371 | $ | 2,041,431 | ||||||||
Long-lived assets | 143,547 | 41,549 | 185,096 | |||||||||||
2012 | ||||||||||||||
Net sales | $ | 1,364,377 | $ | 594,313 | $ | 1,958,690 | ||||||||
Long-lived assets | 137,708 | 42,815 | 180,523 | |||||||||||
2011 | ||||||||||||||
Net sales | $ | 1,276,038 | $ | 607,915 | $ | 1,883,953 | ||||||||
Long-lived assets | 145,169 | 45,971 | 191,140 | |||||||||||
COMMITMENTS_AND_CONTINGENT_LIA
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended | ||
Oct. 31, 2013 | |||
COMMITMENTS AND CONTINGENT LIABILITIES | ' | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ' | ||
13 | COMMITMENTS AND CONTINGENT LIABILITIES | ||
Leases | |||
Total rental expense for operating leases was $24,399, $22,166, and $21,840 for the fiscal years ended October 31, 2013, 2012, and 2011, respectively. As of October 31, 2013, future minimum lease payments under noncancelable operating leases amounted to $73,165 as follows: 2014, $14,632; 2015, $12,544; 2016, $9,307; 2017, $5,283; 2018, $4,212 and after 2018, $27,187. | |||
Customer Financing | |||
Wholesale Financing. In fiscal 2009, Toro Credit Company sold its receivable portfolio to Red Iron, the company's joint venture with TCFIF. See Note 3 for additional information related to Red Iron. Some products sold to independent dealers in Australia finance their products with a third party finance company. This third party financing company purchased $26,526 of receivables from the company during fiscal 2013. As of October 31, 2013, $13,273 of receivables financed by the third party financing company, excluding Red Iron, was outstanding. | |||
The company also enters into limited inventory repurchase agreements with third party financing companies and Red Iron for receivables financed by third party financing companies and Red Iron. As of October 31, 2013, the company was contingently liable to repurchase up to a maximum amount of $10,153 of inventory related to receivables under these financing arrangements. The company has repurchased only immaterial amounts of inventory under these repurchase agreements since inception. | |||
End-User Financing. The company has agreements with third party financing companies to provide lease-financing options to golf course and sports fields and grounds equipment customers in the U.S. and select countries in Europe. The company has no contingent liabilities for residual value or credit collection risk under these agreements with third party financing companies. | |||
From time to time, the company enters into agreements where it provides recourse to third party finance companies in the event of default by the customer for lease payments to the third party finance company. The company's maximum exposure for credit collection as of October 31, 2013 was $1,744. | |||
Purchase Commitments | |||
As of October 31, 2013, the company had $8,400 of noncancelable purchase commitments with some suppliers for materials and supplies as part of the normal course of business. The company also entered into an agreement for the construction of a new corporate facility at its Bloomington, Minnesota location for a maximum obligation, subject to certain exceptions, of $19,876. | |||
Letters of Credit | |||
Letters of credit are issued by the company during the normal course of business, as required by some vendor contracts. As of October 31, 2013 and 2012, the company had $12,681 and $12,963, respectively, in outstanding letters of credit. | |||
Litigation | |||
General. The company is party to litigation in the ordinary course of business. Such matters are generally subject to uncertainties and to outcomes that are not predictable with assurance and that may not be known for extended periods of time. Litigation occasionally involves claims for punitive, as well as compensatory, damages arising out of the use of the company's products. Although the company is self-insured to some extent, the company maintains insurance against certain product liability losses. The company is also subject to litigation and administrative and judicial proceedings with respect to claims involving asbestos and the discharge of hazardous substances into the environment. Some of these claims assert damages and liability for personal injury, remedial investigations or clean up and other costs and damages. The company is also typically involved in commercial disputes, employment disputes, and patent litigation cases in which it is asserting or defending against patent infringement claims. To prevent possible infringement of the company's patents by others, the company periodically reviews competitors' products. To avoid potential liability with respect to others' patents, the company regularly reviews certain patents issued by the United States Patent and Trademark Office and foreign patent offices. Management believes these activities help minimize its risk of being a defendant in patent infringement litigation. The company records a liability in its consolidated financial statements for costs related to claims, including future legal costs, settlements and judgments, where the company has assessed that a loss is probable and an amount can be reasonably estimated. If the reasonable estimate of a probable loss is a range, the company records the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount. The company discloses a contingent liability even if the liability is not probable or the amount is not estimable, or both, if there is a reasonable possibility that a material loss may have been incurred. In the opinion of management, the amount of liability, if any, with respect to these matters, individually or in the aggregate, will not materially affect its consolidated results of operations, financial position, or cash flows. | |||
Canadian Lawnmower Engine Horsepower Marketing and Sales Practices Litigation. In March 2010, individuals who claimed to have purchased lawnmowers in Canada filed class action litigation against the company and other defendants that, similar to the class action litigation previously filed by plaintiffs in the United States and settled by the company pursuant to a settlement agreement that became final in February 2011, (i) contained allegations under applicable Canadian law that the horsepower labels on the products the plaintiffs purchased were inaccurate, (ii) sought certification of a class of all persons in Canada who, beginning January 1, 1994 purchased a lawnmower containing a gas combustible engine up to 30 horsepower that was manufactured or sold by the company and other defendants, and (iii) sought under applicable Canadian law unspecified compensatory and punitive damages, attorneys' costs and fees, and equitable relief. In June 2013, the company and certain other defendants, in order to avoid further protracted and expensive litigation, entered into a settlement agreement to resolve all claims against them in the Canadian litigation. As a group, such settling defendants agreed to pay an aggregate amount of CAD $4,200. In September 2013, courts in Ontario and Quebec held hearings to consider the settlement, which was subsequently approved and became final in October 2013. | |||
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended | |||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||
FINANCIAL INSTRUMENTS | ' | |||||||||||||||||||||||
FINANCIAL INSTRUMENTS | ' | |||||||||||||||||||||||
14 | FINANCIAL INSTRUMENTS | |||||||||||||||||||||||
Concentrations of Credit Risk | ||||||||||||||||||||||||
Financial instruments, which potentially subject the company to concentrations of credit risk, consist principally of accounts receivable that are concentrated in the professional and residential business segments. The credit risk associated with these segments is limited because of the large number of customers in the company's customer base and their geographic dispersion, except for the residential segment that has significant sales to The Home Depot. | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | ||||||||||||||||||||||||
The company is exposed to foreign currency exchange rate risk arising from transactions in the normal course of business, such as sales to third party customers, sales and loans to wholly owned foreign subsidiaries, foreign plant operations, and purchases from suppliers. The company actively manages the exposure of its foreign currency exchange rate market risk by entering into various hedging instruments, authorized under company policies that place controls on these activities, with counterparties that are highly rated financial institutions. The company's hedging activities primarily involve the use of forward currency contracts, as well as cross currency swaps that are intended to offset intercompany loan exposures. The company uses derivative instruments only in an attempt to limit underlying exposure from foreign currency exchange rate fluctuations and to minimize earnings and cash flow volatility associated with foreign currency exchange rate changes. Decisions on whether to use such contracts are primarily based on the amount of exposure to the currency involved and an assessment of the near-term market value for each currency. The company's policy does not allow the use of derivatives for trading or speculative purposes. The company also made an accounting policy election to use the portfolio exception permitted in ASU No. 2011-04 with respect to measuring counterparty credit risk for derivative instruments, and to measure the fair value of a portfolio of financial assets and financial liabilities on the basis of the net open risk position with each counterparty. The company's primary currency exchange rate exposures are with the Euro, the Australian dollar, the Canadian dollar, the British pound, the Mexican peso, the Japanese yen, the Chinese Yuan, and the Romanian New Leu against the U.S. dollar, as well as the Romanian New Leu against the Euro. | ||||||||||||||||||||||||
The company entered into an International Swap Dealers Association Master Agreement ("ISDA") with each counterparty that permits the net settlement of amounts owed under their respective contracts. Under these master netting agreements, net settlement generally permits the company or the counterparty to determine the net amount payable or receivable for contracts due on the same date or in the same currency for similar types of derivative transactions. The company records the fair value of its derivative contracts at the net amount in its consolidated balance sheets. | ||||||||||||||||||||||||
Cash Flow Hedges. The company recognizes all derivative instruments as either assets or liabilities at fair value on the consolidated balance sheet and formally documents relationships between cash flow hedging instruments and hedged transactions, as well as its risk-management objective and strategy for undertaking hedge transactions. This process includes linking all derivatives to the forecasted transactions, such as sales to third parties and foreign plant operations. Changes in fair values of outstanding cash flow hedge derivatives, except the ineffective portion, are recorded in other comprehensive income ("OCI"), until net earnings is affected by the variability of cash flows of the hedged transaction. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in net earnings. The consolidated statement of earnings classification of effective hedge results is the same as that of the underlying exposure. Results of hedges of sales and foreign plant operations are recorded in net sales and cost of sales, respectively, when the underlying hedged transaction affects net earnings. The maximum amount of time the company hedges its exposure to the variability in future cash flows for forecasted trade sales and purchases is two years. Results of hedges of intercompany loans are recorded in other income, net as an offset to the remeasurement of the foreign loan balance. | ||||||||||||||||||||||||
The company formally assesses, at a hedge's inception and on an ongoing basis, whether the derivatives that are designated as hedges have been highly effective in offsetting changes in the cash flows of the hedged transactions and whether those derivatives may be expected to remain highly effective in future periods. When it is determined that a derivative is not, or has ceased to be, highly effective as a hedge, the company discontinues hedge accounting prospectively. When the company discontinues hedge accounting because it is no longer probable, but it is still reasonably possible that the forecasted transaction will occur by the end of the originally expected period or within an additional two-month period of time thereafter, the gain or loss on the derivative remains in AOCL and is reclassified to net earnings when the forecasted transaction affects net earnings. However, if it is probable that a forecasted transaction will not occur by the end of the originally specified time period or within an additional two-month period of time thereafter, the gains and losses that were in AOCL are recognized immediately in net earnings. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the company carries the derivative at its fair value on the consolidated balance sheet, recognizing future changes in the fair value in other income, net. For the fiscal years ended October 31, 2013 and 2012, there were no gains or losses on contracts reclassified into earnings as a result of the discontinuance of cash flow hedges. As of October 31, 2013, the notional amount of outstanding forward contracts designated as cash flow hedges was $134,186. Additionally, the company has one cross currency interest rate swap instrument outstanding as of October 31, 2013 for a fixed pay notional of 36,593 Romanian New Leu and receive floating notional of 8,500 Euro. | ||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments. The company also enters into foreign currency contracts that include forward currency contracts and cross currency swaps to mitigate the remeasurement of specific assets and liabilities on the consolidated balance sheet. These contracts are not designated as hedging instruments. Accordingly, changes in the fair value of hedges of recorded balance sheet positions, such as cash, receivables, payables, intercompany notes, and other various contractual claims to pay or receive foreign currencies other than the functional currency, are recognized immediately in other income, net, on the consolidated statements of earnings together with the transaction gain or loss from the hedged balance sheet position. | ||||||||||||||||||||||||
The following table presents the fair value of the company's derivatives and consolidated balance sheet location. | ||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||
October 31, 2013 | October 31, 2012 | October 31, 2013 | October 31, 2012 | |||||||||||||||||||||
Balance | Fair | Balance | Fair | Balance | Fair | Balance | Fair | |||||||||||||||||
Sheet | Value | Sheet | Value | Sheet | Value | Sheet | Value | |||||||||||||||||
Location | Location | Location | Location | |||||||||||||||||||||
Derivatives Designated as Hedging Instruments | ||||||||||||||||||||||||
Forward currency contracts | Prepaid expenses | $ | 558 | Prepaid expenses | $ | 635 | Accrued liabilities | $ | 1,381 | Accrued liabilities | $ | 1,359 | ||||||||||||
Cross currency contract | Prepaid expenses | – | Prepaid expenses | 661 | Accrued liabilities | 326 | Accrued liabilities | – | ||||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||||||||
Forward currency contracts | Prepaid expenses | $ | 708 | Prepaid expenses | $ | 360 | Accrued liabilities | $ | 550 | Accrued liabilities | $ | 755 | ||||||||||||
Cross currency contract | Prepaid expenses | – | Prepaid expenses | 385 | Accrued liabilities | 117 | Accrued liabilities | – | ||||||||||||||||
Total Derivatives | $ | 1,266 | $ | 2,041 | $ | 2,374 | $ | 2,114 | ||||||||||||||||
The following table presents the impact of derivative instruments on the consolidated statements of earnings and the consolidated statements of comprehensive income for the company's derivatives designated as cash flow hedging instruments for the fiscal years ended October 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||
Gain (Loss) | Location of Gain (Loss) Reclassified | Gain (Loss) Reclassified | Location of Gain (Loss) Recognized in | Gain (Loss) Recognized | ||||||||||||||||||||
Recognized in OCI on | from AOCL into Income | from AOCL into Income | Income on Derivatives (Ineffective | in Income on Derivatives | ||||||||||||||||||||
Derivatives, net of tax | (Effective Portion) | (Effective Portion) | Portion and excluded from | (Ineffective Portion and | ||||||||||||||||||||
(Effective Portion) | Effectiveness Testing) | Excluded from | ||||||||||||||||||||||
Effectiveness Testing) | ||||||||||||||||||||||||
Fiscal years ended | October 31, | October 31, | October 31, | October 31, | October 31, | October 31, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Forward currency contracts | $ | 7 | $ | (1,751 | ) | Net sales | $ | (805 | ) | $ | (3,561 | ) | Other income, net | $ | 648 | $ | 930 | |||||||
Forward currency contracts | (231 | ) | 1,194 | Cost of sales | 473 | 1,500 | ||||||||||||||||||
Cross currency contracts | (680 | ) | 463 | Other income, net | (639 | ) | 133 | |||||||||||||||||
Total | $ | (904 | ) | $ | (94 | ) | Total | $ | (971 | ) | $ | (1,928 | ) | |||||||||||
As of October 31, 2013, the company anticipates to reclassify approximately $1,338 of losses from AOCL to earnings during the next twelve months. | ||||||||||||||||||||||||
The following table presents the impact of derivative instruments on the consolidated statements of earnings for the company's derivatives not designated as hedging instruments. | ||||||||||||||||||||||||
Gain (Loss) Recognized | ||||||||||||||||||||||||
in Net Earnings | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
Location of Gain (Loss) | October 31, | October 31, | ||||||||||||||||||||||
Recognized in Net Earnings | 2013 | 2012 | ||||||||||||||||||||||
Forward currency contracts | Other income, net | $ | (1,402 | ) | $ | 4,165 | ||||||||||||||||||
Cross currency contracts | Other income, net | (483 | ) | 379 | ||||||||||||||||||||
Total | $ | (1,885 | ) | $ | 4,544 | |||||||||||||||||||
During the second quarter of fiscal 2007, the company entered into three treasury lock agreements based on a 30-year U.S. Treasury security with a principal balance of $30,000 each for two of the agreements and $40,000 for the third agreement. These treasury lock agreements provided for a single payment at maturity, which was April 23, 2007, based on the change in value of the reference treasury security. These agreements were designated as cash flow hedges and resulted in a net settlement of $182, which was recorded in AOCL, and will be amortized to interest expense over the 30-year term of the senior notes. The unrecognized loss portion of the fair value of these agreements in AOCL as of October 31, 2013 and 2012 was $143 and $149, respectively. | ||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||
The company categorizes its assets and liabilities into one of three levels based on the assumptions (inputs) used in valuing the asset or liability. Estimates of fair value for financial assets and financial liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value, and requires certain disclosures. The framework discusses valuation techniques such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. The three levels are defined as follows: | ||||||||||||||||||||||||
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||||||||||
Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||||||||||
Level 3 – Unobservable inputs reflecting management's assumptions about the inputs used in pricing the asset or liability. | ||||||||||||||||||||||||
Cash balances are valued at their carrying amounts in the consolidated balance sheets, which are reasonable estimates of their fair value due to their short-term nature. Forward currency contracts are valued based on observable market transactions of forward currency prices and spot currency rates as of the reporting date. The fair value of cross currency contracts is determined using discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs such as interest rates and foreign currency exchange rates. In addition, credit valuation adjustments, which consider the impact of any credit enhancements to the contracts, such as collateral postings, thresholds, mutual puts, and guarantees, are incorporated in the fair values to account for potential nonperformance risk. The unfunded deferred compensation liability is primarily subject to changes in fixed-income investment contracts based on current yields. For accounts receivable and accounts payable, carrying amounts are a reasonable estimate of fair value given their short-term nature. | ||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis, as of October 31, 2013 and 2012, respectively, are summarized below: | ||||||||||||||||||||||||
October 31, 2013 | Fair | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Value | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 182,993 | $ | 182,993 | $ | – | – | |||||||||||||||||
Forward currency contracts | 1,266 | – | 1,266 | – | ||||||||||||||||||||
Total assets | $ | 184,259 | $ | 182,993 | $ | 1,266 | – | |||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Forward currency contracts | $ | 1,931 | – | $ | 1,931 | – | ||||||||||||||||||
Cross currency contracts | 443 | – | 443 | – | ||||||||||||||||||||
Deferred compensation liabilities | 2,777 | – | 2,777 | – | ||||||||||||||||||||
Total liabilities | $ | 5,151 | – | $ | 5,151 | – | ||||||||||||||||||
October 31, 2012 | Fair | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Value | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 125,856 | $ | 125,856 | $ | – | – | |||||||||||||||||
Forward currency contracts | 995 | – | 995 | – | ||||||||||||||||||||
Cross currency contracts | 1,046 | – | 1,046 | – | ||||||||||||||||||||
Total assets | $ | 127,897 | $ | 125,856 | $ | 2,041 | – | |||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Forward currency contracts | $ | 2,114 | – | $ | 2,114 | – | ||||||||||||||||||
Deferred compensation liabilities | 3,547 | – | 3,547 | – | ||||||||||||||||||||
Total liabilities | $ | 5,661 | – | $ | 5,661 | – | ||||||||||||||||||
There were no transfers between Level 1 and Level 2 during the fiscal years ended October 31, 2013 and 2012. | ||||||||||||||||||||||||
As of October 31, 2013, the estimated fair value of long-term debt with fixed interest rates was $243,074 compared to its carrying amount of $223,544. As of October 31, 2012, the estimated fair value of long-term debt with fixed interest rates was $262,458 compared to its carrying amount of $226,858. The fair value is estimated by discounting the projected cash flows using the rate at which similar amounts of debt could currently be borrowed. Long-term debt is a Level 2 liability in the fair value hierarchy. | ||||||||||||||||||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended | ||
Oct. 31, 2013 | |||
SUBSEQUENT EVENTS | ' | ||
SUBSEQUENT EVENTS | ' | ||
15 | SUBSEQUENT EVENTS | ||
The company evaluated all subsequent events and concluded that no subsequent events have occurred that would require recognition in the financial statements or disclosure in the notes to the financial statements. | |||
QUARTERLY_FINANCIAL_DATA_unaud
QUARTERLY FINANCIAL DATA (unaudited) | 12 Months Ended | |||||||||||||
Oct. 31, 2013 | ||||||||||||||
QUARTERLY FINANCIAL DATA (unaudited) | ' | |||||||||||||
QUARTERLY FINANCIAL DATA (unaudited) | ' | |||||||||||||
16 | QUARTERLY FINANCIAL DATA (unaudited) | |||||||||||||
Summarized quarterly financial data for fiscal 2013 and 2012 are as follows: | ||||||||||||||
Fiscal year ended | First | Second | Third | Fourth | ||||||||||
October 31, 2013 | ||||||||||||||
Quarter | ||||||||||||||
Net sales | $ | 444,661 | $ | 704,486 | $ | 509,918 | $ | 382,366 | ||||||
Gross profit | 165,817 | 252,301 | 178,031 | 128,648 | ||||||||||
Net earnings | 31,396 | 78,402 | 40,097 | 4,950 | ||||||||||
Basic net earnings per share1 | 0.54 | 1.35 | 0.7 | 0.09 | ||||||||||
Diluted net earnings per share1 | 0.53 | 1.32 | 0.68 | 0.08 | ||||||||||
Fiscal year ended | First | Second | Third | Fourth | ||||||||||
October 31, 2012 | ||||||||||||||
Quarter | ||||||||||||||
Net sales | $ | 423,835 | $ | 691,485 | $ | 504,076 | $ | 339,294 | ||||||
Gross profit | 146,651 | 235,422 | 178,122 | 112,899 | ||||||||||
Net earnings | 19,923 | 68,818 | 40,549 | 251 | ||||||||||
Basic net earnings per share1 | 0.33 | 1.15 | 0.69 | 0 | ||||||||||
Diluted net earnings per share1 | 0.33 | 1.13 | 0.67 | 0 | ||||||||||
1 | ||||||||||||||
Net earnings per share amounts do not sum to equal full year total due to changes in the number of shares outstanding during the periods and rounding. | ||||||||||||||
SCHEDULE_II_Valuation_and_Qual
SCHEDULE II Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
SCHEDULE II Valuation and Qualifying Accounts | ' | ||||||||||||||||
SCHEDULE II Valuation and Qualifying Accounts | ' | ||||||||||||||||
SCHEDULE II | |||||||||||||||||
THE TORO COMPANY AND SUBSIDIARIES | |||||||||||||||||
Valuation and Qualifying Accounts | |||||||||||||||||
(Dollars in thousands) | Balance as of | Charged to | Other2 | Deductions3 | Balance as of | ||||||||||||
the beginning | costs and | the end of | |||||||||||||||
of the fiscal year | expenses1 | the fiscal year | |||||||||||||||
Fiscal year ended October 31, 2013 | |||||||||||||||||
Allowance for doubtful accounts and notes receivable reserves | $ | 3,733 | $ | 123 | $ | – | $ | 431 | $ | 3,425 | |||||||
Fiscal year ended October 31, 2012 | |||||||||||||||||
Allowance for doubtful accounts and notes receivable reserves | 2,040 | 2,160 | 12 | 479 | 3,733 | ||||||||||||
Fiscal year ended October 31, 2011 | |||||||||||||||||
Allowance for doubtful accounts and notes receivable reserves | 3,904 | 6 | 55 | 1,925 | 2,040 | ||||||||||||
1 | |||||||||||||||||
Provision/(recovery). | |||||||||||||||||
2 | |||||||||||||||||
Addition due to acquisitions. | |||||||||||||||||
3 | |||||||||||||||||
Uncollectible accounts charged off. | |||||||||||||||||
(Dollars in thousands) | Balance as of | Charged to | Deductions2 | Balance as of | |||||||||||||
the beginning | costs and | the end of | |||||||||||||||
of the fiscal year | expenses1 | the fiscal year | |||||||||||||||
Fiscal year ended October 31, 2013 | |||||||||||||||||
Accrued advertising and marketing programs | $ | 56,264 | $ | 287,217 | $ | 279,290 | $ | 64,191 | |||||||||
Fiscal year ended October 31, 2012 | |||||||||||||||||
Accrued advertising and marketing programs | 47,161 | 214,474 | 205,371 | 56,264 | |||||||||||||
Fiscal year ended October 31, 2011 | |||||||||||||||||
Accrued advertising and marketing programs | 43,095 | 190,021 | 185,955 | 47,161 | |||||||||||||
1 | |||||||||||||||||
Provision consists of rebates, cooperative advertising, floor planning costs, commissions, and other promotional program expenses. The expense of each program is classified either as a reduction of net sales or as a component of selling, general, and administrative expense. | |||||||||||||||||
2 | |||||||||||||||||
Claims paid. | |||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED DATA (Policies) | 12 Months Ended | ||||||||||
Oct. 31, 2013 | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED DATA | ' | ||||||||||
Basis of Presentation and Consolidation | ' | ||||||||||
Basis of Presentation and Consolidation | |||||||||||
The accompanying consolidated financial statements include the accounts of the company and its wholly owned subsidiaries. The company uses the equity method to account for investments over which it has the ability to exercise significant influence over operating and financial policies. Consolidated net earnings include the company's share of the net earnings (losses) of these companies. The cost method is used to account for investments in companies that the company does not control and for which it does not have the ability to exercise significant influence over operating and financial policies. These investments are recorded at cost. All intercompany accounts and transactions have been eliminated from the consolidated financial statements. | |||||||||||
Accounting Estimates | ' | ||||||||||
Accounting Estimates | |||||||||||
In preparing the consolidated financial statements in conformity with United States ("U.S.") generally accepted accounting principles ("GAAP"), management must make decisions that impact the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures, including disclosures of contingent assets and liabilities. Such decisions include the selection of the appropriate accounting principles to be applied and the assumptions on which to base accounting estimates. Estimates are used in determining, among other items, sales promotions and incentive accruals, incentive compensation accruals, inventory valuation, warranty reserves, earnout liabilities, allowance for doubtful accounts, pension and postretirement accruals, self-insurance accruals, and useful lives of tangible and intangible assets. These estimates and assumptions are based on management's best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors that management believes to be reasonable under the circumstances, including the current economic environment. Management adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with certainty, actual amounts could differ significantly from those estimated at the time the consolidated financial statements are prepared. Changes in those estimates will be reflected in the consolidated financial statements in future periods. | |||||||||||
Reclassifications | ' | ||||||||||
Reclassifications | |||||||||||
Certain amounts from prior years' financial statements have been reclassified to conform to the current year presentation. The reclassifications had no impact on results of operations as previously reported. | |||||||||||
Cash and Cash Equivalents | ' | ||||||||||
Cash and Cash Equivalents | |||||||||||
The company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents and are stated at cost, which approximates fair value. As of October 31, 2013, cash and short-term investments held by the company's foreign subsidiaries that are not available to fund domestic operations unless repatriated were $24,837. | |||||||||||
Receivables | ' | ||||||||||
Receivables | |||||||||||
The company's financial exposure to collection of accounts receivable is reduced due to its Red Iron Acceptance, LLC ("Red Iron") joint venture with TCF Inventory Finance, Inc. ("TCFIF"), as further discussed in Note 3. For receivables not serviced through Red Iron, the company grants credit to customers in the normal course of business and performs on-going credit evaluations of customers. Receivables are recorded at original carrying amount less reserves for estimated uncollectible accounts, as described below. | |||||||||||
Allowance for Doubtful Accounts | ' | ||||||||||
Allowance for Doubtful Accounts | |||||||||||
The company estimates the balance of allowance for doubtful accounts by analyzing the age of account and note receivable balances and applying historical write-off trend rates. The company also estimates separately specific customer balances when it is deemed probable that the balance is uncollectible. Account balances are charged off against the allowance when all collection efforts have been exhausted. | |||||||||||
Inventory Valuations | ' | ||||||||||
Inventory Valuations | |||||||||||
Inventories are valued at the lower of cost or net realizable value, with cost determined by the last-in, first-out ("LIFO") method for most inventories. The first-in, first-out ("FIFO") method is used for all other inventories, constituting 33 and 31 percent of total inventories as of October 31, 2013 and 2012, respectively. The company establishes a reserve for excess, slow-moving, and obsolete inventory that is equal to the difference between the cost and estimated net realizable value for that inventory. These reserves are based on a review and comparison of current inventory levels to the planned production, as well as planned and historical sales of the inventory. During fiscal 2013, LIFO layers were reduced. This reduction resulted in charging lower inventory costs prevailing in previous years to cost of sales, thus reducing cost of sales by $122. During fiscal 2012 and 2011, no LIFO inventory layers were reduced. | |||||||||||
Inventories as of October 31 were as follows: | |||||||||||
2013 | 2012 | ||||||||||
Raw materials and work in progress | $ | 87,668 | $ | 91,465 | |||||||
Finished goods and service parts | 217,796 | 223,459 | |||||||||
Total FIFO value | 305,464 | 314,924 | |||||||||
Less: adjustment to LIFO value | 65,375 | 63,807 | |||||||||
Total | $ | 240,089 | $ | 251,117 | |||||||
Property and Depreciation | ' | ||||||||||
Property and Depreciation | |||||||||||
Property, plant, and equipment are carried at cost. The company provides for depreciation of plant and equipment utilizing the straight-line method over the estimated useful lives of the assets. Buildings, including leasehold improvements, are generally depreciated over 10 to 45 years, and equipment over two to seven years. Tooling costs are generally depreciated over three to five years using the straight-line method. Software and web site development costs are generally amortized over two to five years utilizing the straight-line method. Expenditures for major renewals and improvements, which substantially increase the useful lives of existing assets, are capitalized, and maintenance and repairs are charged to operating expenses as incurred. Interest is capitalized during the construction period for significant capital projects. During the fiscal years ended October 31, 2013, 2012, and 2011, the company capitalized $722, $256, and $230 of interest, respectively. | |||||||||||
Property, plant, and equipment as of October 31 was as follows: | |||||||||||
2013 | 2012 | ||||||||||
Land and land improvements | $ | 27,632 | $ | 27,325 | |||||||
Buildings and leasehold improvements | 133,866 | 129,353 | |||||||||
Machinery and equipment | 284,492 | 268,571 | |||||||||
Tooling | 173,039 | 166,319 | |||||||||
Computer hardware and software | 73,302 | 65,861 | |||||||||
Construction in process | 29,173 | 25,678 | |||||||||
Subtotal | 721,504 | 683,107 | |||||||||
Less: accumulated depreciation | 536,408 | 502,584 | |||||||||
Total property, plant, and equipment, net | $ | 185,096 | $ | 180,523 | |||||||
During fiscal years 2013, 2012, and 2011, the company recorded depreciation expense of $48,207, $46,840, and $43,539, respectively. | |||||||||||
Goodwill and Indefinite-Life Intangible Assets | ' | ||||||||||
Goodwill and Indefinite-Life Intangible Assets | |||||||||||
Goodwill represents the cost of acquisitions in excess of the fair values assigned to identifiable net assets acquired. Goodwill is assigned to reporting units based upon the expected benefit of the synergies of the acquisition. Goodwill and some trade names, which are considered to have indefinite lives, are not amortized; however, the company reviews them for impairment annually during each fourth fiscal quarter or more frequently if changes in circumstances or occurrence of events suggest the remaining value may not be recoverable. | |||||||||||
The company reviewed the fair value of its reporting units that have goodwill on their respective balance sheets with their corresponding carrying amount (with goodwill) during the fourth quarter of fiscal 2013. The company determined that it has eight reporting units, which are the same as its eight operating segments. Six reporting units contain goodwill on their respective balance sheets. As of August 30, 2013, the company performed an analysis of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a two-step goodwill impairment test. Based on the company's analysis of qualitative factors, the company determined that it was not necessary to perform a two-step goodwill impairment test for any of its reporting units. | |||||||||||
As of August 30, 2013, the company also performed an analysis of qualitative factors to determine whether it is more likely than not that its indefinite-life intangible assets, which consist of certain trade names, are impaired. Based on this analysis, the company concluded its indefinite-life intangible assets were not impaired. In fiscal 2012, the company determined that is was necessary to perform a quantitative impairment analysis of its indefinite-life intangible assets. Based on the company's impairment analysis, the company wrote down $400 of an indefinite-life intangible asset during fiscal 2012. | |||||||||||
Other Long-Lived Assets | ' | ||||||||||
Other Long-Lived Assets | |||||||||||
Other long-lived assets include property, plant, and equipment and definite-life intangible assets, which are identifiable assets that arose from purchase acquisitions consisting primarily of patents, non-compete agreements, customer relationships, trade names, and developed technology, and are amortized on a straight-line basis over periods ranging from 1.5 to 13 years. The company reviews other long-lived assets, including property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. An impairment loss is recognized when estimated undiscounted future cash flows from the operation or disposition of the asset group are less than the carrying amount of the asset group. Asset groups have identifiable cash flows and are largely independent of other asset groups. Measurement of an impairment loss is based on the excess of the carrying amount of the asset group over its fair value. Fair value is measured using a discounted cash flow model or independent appraisals, as appropriate. For long-lived assets to be abandoned, the company tests for potential impairment. If the company commits to a plan to abandon a long-lived asset before the end of its previously estimated useful life, depreciation estimates are revised. | |||||||||||
Based on the company's impairment analysis, the company wrote down $824, $691, and $109 of other long-lived assets during fiscal 2013, 2012, and 2011, respectively. | |||||||||||
Accounts Payable | ' | ||||||||||
Accounts Payable | |||||||||||
The company has a customer-managed services agreement with a third party to provide a web-based platform that facilitates participating suppliers' ability to finance payment obligations from the company with a designated third party financial institution. Participating suppliers may, at their sole discretion, make offers to finance one or more payment obligations of the company prior to their scheduled due dates at a discounted price to a participating financial institution. | |||||||||||
The company's obligations to its suppliers, including amounts due and scheduled payment dates, are not affected by suppliers' decisions to finance amounts under this arrangement. However, the company's right to offset balances due from suppliers against payment obligations is restricted by this arrangement for those payment obligations that have been financed by suppliers. As of October 31, 2013 and 2012, $16,572 and $16,159, respectively, of the company's outstanding payment obligations had been placed on the accounts payable tracking system. | |||||||||||
Insurance | ' | ||||||||||
Insurance | |||||||||||
The company is self-insured for certain losses relating to medical, dental, and workers' compensation claims, and product liability occurrences. Specific stop loss coverages are provided for catastrophic claims in order to limit exposure to significant claims. Losses and claims are charged to operations when it is probable a loss has been incurred and the amount can be reasonably estimated. Self-insured liabilities are based on a number of factors, including historical claims experience, an estimate of claims incurred but not reported, demographic and severity factors, and utilizing valuations provided by independent third-party actuaries. | |||||||||||
Accrued Warranties | ' | ||||||||||
Accrued Warranties | |||||||||||
The company provides an accrual for estimated future warranty costs at the time of sale. The company also establishes accruals for major rework campaigns. The amount of warranty accruals is based primarily on the estimated number of products under warranty, historical average costs incurred to service warranty claims, the trend in the historical ratio of claims to sales, and the historical length of time between the sale and resulting warranty claim. The company periodically assesses the adequacy of its warranty accruals based on changes in these factors and records any necessary adjustments if actual claim experience indicates that adjustments are necessary. | |||||||||||
The changes in accrued warranties were as follows: | |||||||||||
Fiscal years ended October 31 | 2013 | 2012 | |||||||||
Beginning balance | $ | 69,848 | $ | 62,730 | |||||||
Warranty provisions | 41,067 | 38,439 | |||||||||
Warranty claims | (35,529 | ) | (35,431 | ) | |||||||
Changes in estimates | (3,209 | ) | 3,910 | ||||||||
Additions from acquisitions | – | 200 | |||||||||
Ending balance | $ | 72,177 | $ | 69,848 | |||||||
Derivatives | ' | ||||||||||
Derivatives | |||||||||||
Derivatives, consisting mainly of forward currency contracts, are used to hedge most foreign currency transactions, including forecasted sales and purchases denominated in foreign currencies. The company also utilizes cross currency swaps to offset foreign currency intercompany loan exposures. Derivatives are recognized on the consolidated balance sheet at fair value. If the derivative is designated as a cash flow hedge, the effective portion of the change in the fair value of the derivative is recorded as a component of other comprehensive income within the consolidated statements of comprehensive income and the consolidated statements of stockholders' equity, and recognized in earnings when the hedged item affects earnings. Derivatives that do not meet the requirements for hedge accounting are adjusted to fair value through other income, net in the consolidated statements of earnings. | |||||||||||
Foreign Currency Translation and Transactions | ' | ||||||||||
Foreign Currency Translation and Transactions | |||||||||||
The functional currency of the company's foreign operations is generally the applicable local currency. The functional currency is translated into U.S. dollars for balance sheet accounts using current exchange rates in effect as of the balance sheet date and for revenue and expense accounts using a weighted-average exchange rate during the fiscal year. The translation adjustments are deferred as a component of other comprehensive income within the consolidated statements of comprehensive income and the consolidated statements of stockholders' equity. Gains or losses resulting from transactions denominated in foreign currencies are included in other income, net in the consolidated statements of earnings. | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | |||||||||||
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years that those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. A valuation allowance is provided when, in management's judgment, it is more likely than not that some portion or all of the deferred tax asset will not be realized. The company has reflected the necessary deferred tax assets and liabilities in the accompanying consolidated balance sheets. Management believes the future tax deductions will be realized principally through carryback to taxable income in prior years, future reversals of existing taxable temporary differences, and future taxable income. | |||||||||||
The company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The company also records interest and penalties related to unrecognized tax benefits in income tax expense. | |||||||||||
Revenue Recognition | ' | ||||||||||
Revenue Recognition | |||||||||||
The company recognizes revenue for product sales when persuasive evidence of an arrangement exists, title and risk of ownership passes to the customer, the sales price is fixed or determinable, and collectability is probable. These criteria are typically met at the time product is shipped, or in the case of certain agreements, when product is delivered. A provision is made at the time the related revenue is recognized for estimated product returns, floor plan costs, rebates, and other sales promotional expenses. Sales, use, value-added, and other excise taxes are not recognized in revenue. Freight revenue billed to customers is included in net sales. | |||||||||||
The company ships some of its products to a key retailer's seasonal distribution centers on a consignment basis. The company retains title to its products stored at the seasonal distribution centers. As the company's products are removed from the seasonal distribution centers by the key retailer and shipped to the key retailer's stores, title passes from the company to the key retailer. At that time, the company invoices the key retailer and recognizes revenue for these consignment transactions. The company does not offer a right of return for products shipped to the key retailer's stores from the seasonal distribution centers. From time to time, the company also stores inventory on a consignment basis at other customers' locations. The amount of consignment inventory as of October 31, 2013 and 2012 was $18,283 and $20,339, respectively. | |||||||||||
Revenue earned from service and maintenance contracts is recognized ratably over the contractual period. Revenue from extended warranty programs is deferred at the time the contract is sold and amortized into net sales using the straight-line method over the extended warranty period. | |||||||||||
Sales Promotions and Incentives | ' | ||||||||||
Sales Promotions and Incentives | |||||||||||
At the time of sale, the company records an estimate for sales promotion and incentive costs. Examples of sales promotion and incentive programs include rebate programs on certain professional products sold to distributors, volume discounts, retail financing support, commissions, and other sales discounts and promotional programs. The estimates of sales promotion and incentive costs are based on the terms of the arrangements with customers, historical payment experience, field inventory levels, volume purchases, and expectations for changes in relevant trends in the future. The expense of each program is classified as a reduction from gross sales. | |||||||||||
Cost of Sales | ' | ||||||||||
Cost of Sales | |||||||||||
Cost of sales primarily comprises direct materials and supplies consumed in the manufacture of product, as well as manufacturing labor, depreciation expense, and direct overhead expense necessary to convert purchased materials and supplies into finished product. Cost of sales also includes inbound freight costs, outbound freight costs for shipping products to customers, obsolescence expense, cost of services provided, and cash discounts on payments to vendors. | |||||||||||
Selling, General, and Administrative Expense | ' | ||||||||||
Selling, General, and Administrative Expense | |||||||||||
Selling, general, and administrative expense primarily comprises payroll and benefit costs, occupancy and operating costs of distribution and corporate facilities, warranty expense, depreciation and amortization expense on non-manufacturing assets, advertising and marketing expenses, selling expenses, engineering and research costs, information systems costs, incentive and profit sharing expense, and other miscellaneous administrative costs, such as legal costs for internal and outside services that are expensed as incurred. | |||||||||||
Cost of Financing Distributor/Dealer Inventory | ' | ||||||||||
Cost of Financing Distributor / Dealer Inventory | |||||||||||
The company enters into limited inventory repurchase agreements with a third party financing company and Red Iron. The company has repurchased immaterial amounts of inventory under these repurchase agreements over the last three fiscal years. However, an adverse change in retail sales could cause this situation to change, and thereby require the company to repurchase a portion of financed product. See Note 13 for additional information regarding the company's repurchase arrangements. | |||||||||||
Included as a reduction to net sales are costs associated with programs under which the company shares the expense of financing distributor and dealer inventories, referred to as floor plan expenses. This charge represents interest for a pre-established length of time based on a predefined rate from a contract with third party financing sources to finance distributor and dealer inventory purchases. These financing arrangements are used by the company as a marketing tool to assist customers to buy inventory. The financing costs for distributor and dealer inventories were $19,729, $19,492, and $16,394 for the fiscal years ended October 31, 2013, 2012, and 2011, respectively. | |||||||||||
Advertising | ' | ||||||||||
Advertising | |||||||||||
General advertising expenditures are expensed the first time advertising takes place. Production costs associated with advertising are expensed in the period incurred. Cooperative advertising represents expenditures for shared advertising costs that the company reimburses to customers and is classified as a component of selling, general, and administrative expense. These obligations are accrued and expensed when the related revenues are recognized in accordance with the programs established for various product lines. Advertising costs were $48,071, $46,947, and $49,362 for the fiscal years ended October 31, 2013, 2012, and 2011, respectively. | |||||||||||
Stock-Based Compensation | ' | ||||||||||
Stock-Based Compensation | |||||||||||
The company's stock-based compensation awards are generally granted to executive officers, other employees, and non-employee members of the company's Board of Directors, and include performance share awards that are contingent on the achievement of performance goals of the company, non-qualified stock options, restricted stock units, and restricted stock awards. Compensation expense equal to the grant date fair value is recognized for these awards over the vesting period and is classified in selling, general and administrative expense. See Note 10 for additional information regarding stock-based compensation plans. | |||||||||||
Net Earnings Per Share | ' | ||||||||||
Net Earnings Per Share | |||||||||||
Basic net earnings per share is calculated using net earnings available to common stockholders divided by the weighted-average number of shares of common stock outstanding during the year plus the assumed issuance of contingent shares. Diluted net earnings per share is similar to basic net earnings per share except that the weighted-average number of shares of common stock outstanding plus the assumed issuance of contingent shares is increased to include the number of additional shares of common stock that would have been outstanding assuming the issuance of all potentially dilutive shares, such as common stock to be issued upon exercise of options, contingently issuable shares, and restricted common stock and units. | |||||||||||
Reconciliations of basic and diluted weighted-average shares of common stock outstanding are as follows: | |||||||||||
BASIC | |||||||||||
(Shares in thousands) | 2013 | 2012 | 2011 | ||||||||
Fiscal years ended October 31 | |||||||||||
Weighted-average number of shares of common stock | 57,898 | 59,440 | 62,530 | ||||||||
Assumed issuance of contingent shares | 24 | 6 | 4 | ||||||||
Weighted-average number of shares of common stock and assumed issuance of contingent shares | 57,922 | 59,446 | 62,534 | ||||||||
DILUTED | |||||||||||
(Shares in thousands) | 2013 | 2012 | 2011 | ||||||||
Fiscal years ended October 31 | |||||||||||
Weighted-average number of shares of common stock and assumed issuance of contingent shares | 57,922 | 59,446 | 62,534 | ||||||||
Effect of dilutive securities | 1,183 | 1,172 | 1,060 | ||||||||
Weighted-average number of shares of common stock, assumed issuance of contingent and restricted shares, and effect of dilutive securities | 59,105 | 60,618 | 63,594 | ||||||||
Incremental shares from options and restricted stock are computed by the treasury stock method. Options and restricted stock of 182,868, 33,427, and 417,436 during fiscal 2013, 2012, and 2011, were excluded from the computation of diluted earnings per share because they were anti-dilutive. | |||||||||||
Cash Flow Presentation | ' | ||||||||||
Cash Flow Presentation | |||||||||||
The consolidated statements of cash flows are prepared using the indirect method, which reconciles net earnings to cash flow from operating activities. The necessary adjustments include the removal of timing differences between the occurrence of operating receipts and payments and their recognition in net earnings. The adjustments also remove from operating activities cash flows arising from investing and financing activities, which are presented separately from operating activities. Cash flows from foreign currency transactions and operations are translated at an average exchange rate for the period. Cash paid for acquisitions is classified as investing activities. | |||||||||||
New Accounting Pronouncement Policy Adopted | ' | ||||||||||
New Accounting Pronouncement Adopted | |||||||||||
In February 2013, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU No. 2013-02 requires entities to disclose, for items reclassified out of accumulated other comprehensive income (loss) and into net income in their entirety, the effect of the reclassification on each affected net income line item. ASU No. 2013-02 also requires a cross reference to other required U.S. GAAP disclosures for accumulated other comprehensive income (loss) reclassification items that are not reclassified in their entirety into net income. The effective date of ASU No. 2013-02 is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2012, and early adoption is permitted. The company adopted this guidance in its fiscal 2013 fourth quarter. The adoption of this guidance did not have an impact on the company's consolidated financial statements. | |||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED DATA (Tables) | 12 Months Ended | ||||||||||
Oct. 31, 2013 | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED DATA | ' | ||||||||||
Schedule of Inventories | ' | ||||||||||
2013 | 2012 | ||||||||||
Raw materials and work in progress | $ | 87,668 | $ | 91,465 | |||||||
Finished goods and service parts | 217,796 | 223,459 | |||||||||
Total FIFO value | 305,464 | 314,924 | |||||||||
Less: adjustment to LIFO value | 65,375 | 63,807 | |||||||||
Total | $ | 240,089 | $ | 251,117 | |||||||
Schedule of property, plant and equipment | ' | ||||||||||
2013 | 2012 | ||||||||||
Land and land improvements | $ | 27,632 | $ | 27,325 | |||||||
Buildings and leasehold improvements | 133,866 | 129,353 | |||||||||
Machinery and equipment | 284,492 | 268,571 | |||||||||
Tooling | 173,039 | 166,319 | |||||||||
Computer hardware and software | 73,302 | 65,861 | |||||||||
Construction in process | 29,173 | 25,678 | |||||||||
Subtotal | 721,504 | 683,107 | |||||||||
Less: accumulated depreciation | 536,408 | 502,584 | |||||||||
Total property, plant, and equipment, net | $ | 185,096 | $ | 180,523 | |||||||
Schedule of changes in accrued warranties | ' | ||||||||||
Fiscal years ended October 31 | 2013 | 2012 | |||||||||
Beginning balance | $ | 69,848 | $ | 62,730 | |||||||
Warranty provisions | 41,067 | 38,439 | |||||||||
Warranty claims | (35,529 | ) | (35,431 | ) | |||||||
Changes in estimates | (3,209 | ) | 3,910 | ||||||||
Additions from acquisitions | – | 200 | |||||||||
Ending balance | $ | 72,177 | $ | 69,848 | |||||||
Reconciliations of basic and diluted weighted-average shares of common stock outstanding | ' | ||||||||||
BASIC | |||||||||||
(Shares in thousands) | 2013 | 2012 | 2011 | ||||||||
Fiscal years ended October 31 | |||||||||||
Weighted-average number of shares of common stock | 57,898 | 59,440 | 62,530 | ||||||||
Assumed issuance of contingent shares | 24 | 6 | 4 | ||||||||
Weighted-average number of shares of common stock and assumed issuance of contingent shares | 57,922 | 59,446 | 62,534 | ||||||||
DILUTED | |||||||||||
(Shares in thousands) | 2013 | 2012 | 2011 | ||||||||
Fiscal years ended October 31 | |||||||||||
Weighted-average number of shares of common stock and assumed issuance of contingent shares | 57,922 | 59,446 | 62,534 | ||||||||
Effect of dilutive securities | 1,183 | 1,172 | 1,060 | ||||||||
Weighted-average number of shares of common stock, assumed issuance of contingent and restricted shares, and effect of dilutive securities | 59,105 | 60,618 | 63,594 | ||||||||
INVESTMENT_IN_JOINT_VENTURE_Ta
INVESTMENT IN JOINT VENTURE (Tables) | 12 Months Ended | ||||||||||
Oct. 31, 2013 | |||||||||||
INVESTMENT IN JOINT VENTURE | ' | ||||||||||
INVESTMENT IN JOINT VENTURE | ' | ||||||||||
For the twelve months ended October 31 | 2013 | 2012 | 2011 | ||||||||
Revenue | $ | 22,418 | $ | 19,765 | $ | 17,116 | |||||
Net income | 15,776 | 13,326 | 11,070 | ||||||||
As of October 31 | 2013 | 2012 | |||||||||
Finance receivables, net | $ | 260,319 | $ | 239,008 | |||||||
Other assets | 4,040 | 1,274 | |||||||||
Total liabilities | 234,804 | 212,408 | |||||||||
OTHER_INCOME_NET_Tables
OTHER INCOME, NET (Tables) | 12 Months Ended | ||||||||||
Oct. 31, 2013 | |||||||||||
OTHER INCOME, NET | ' | ||||||||||
Schedule of other income (expense) | ' | ||||||||||
Fiscal years ended October 31 | 2013 | 2012 | 2011 | ||||||||
Interest income | $ | 447 | $ | 786 | $ | 1,072 | |||||
Retail financing revenue | 1,093 | 1,106 | 966 | ||||||||
Foreign currency exchange rate loss | (702 | ) | (1,786 | ) | (1,751 | ) | |||||
Income from affiliates | 7,097 | 5,996 | 5,682 | ||||||||
Litigation recovery (settlements), net | 3,071 | (36 | ) | 543 | |||||||
Miscellaneous | 1,255 | 1,489 | 797 | ||||||||
Total other income, net | $ | 12,261 | $ | 7,555 | $ | 7,309 | |||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||
Oct. 31, 2013 | ||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | |||||||||||||
Changes in the net carrying amount of goodwill | ' | |||||||||||||
Professional | Residential | Total | ||||||||||||
Segment | Segment | |||||||||||||
Balance as of October 31, 2011 | $80,990 | $11,030 | $ | 92,020 | ||||||||||
Translation adjustments | (6 | ) | (14 | ) | (20 | ) | ||||||||
Balance as of October 31, 2012 | $80,984 | $11,016 | $ | 92,000 | ||||||||||
Translation adjustments | (22 | ) | (64 | ) | (86 | ) | ||||||||
Balance as of October 31, 2013 | $80,962 | $10,952 | $ | 91,914 | ||||||||||
Components of other intangible assets | ' | |||||||||||||
October 31, 2013 | Estimated | Gross | Accumulated | Net | ||||||||||
Life | Carrying | Amortization | ||||||||||||
(Years) | Amount | |||||||||||||
Patents | 1.5-13 | $ | 10,213 | $ | (8,537 | ) | $ | 1,676 | ||||||
Non-compete agreements | 1.5-10 | 6,849 | (4,488 | ) | 2,361 | |||||||||
Customer-related | 1.5-13 | 8,654 | (4,660 | ) | 3,994 | |||||||||
Developed technology | 1.5-10 | 28,224 | (13,478 | ) | 14,746 | |||||||||
Trade names | 1.5-5 | 1,515 | (865 | ) | 650 | |||||||||
Other | 800 | (800 | ) | – | ||||||||||
Total amortizable | 56,255 | (32,828 | ) | 23,427 | ||||||||||
Non-amortizable – trade names | 4,881 | – | 4,881 | |||||||||||
Total other intangible assets, net | $ | 61,136 | $ | (32,828 | ) | $ | 28,308 | |||||||
October 31, 2012 | Estimated | Gross | Accumulated | Net | ||||||||||
Life | Carrying | Amortization | ||||||||||||
(Years) | Amount | |||||||||||||
Patents | 1.5-13 | $ | 9,593 | $ | (8,031 | ) | $ | 1,562 | ||||||
Non-compete agreements | 1.5-10 | 6,303 | (3,656 | ) | 2,647 | |||||||||
Customer-related | 1.5-13 | 8,312 | (3,826 | ) | 4,486 | |||||||||
Developed technology | 1.5-10 | 27,727 | (10,196 | ) | 17,531 | |||||||||
Trade names | 1.5-5 | 1,515 | (557 | ) | 958 | |||||||||
Other | 800 | (800 | ) | – | ||||||||||
Total amortizable | 54,250 | (27,066 | ) | 27,184 | ||||||||||
Non-amortizable – trade names | 4,881 | – | 4,881 | |||||||||||
Total other intangible assets, net | $ | 59,131 | $ | (27,066 | ) | $ | 32,065 | |||||||
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 12 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
LONG-TERM DEBT | ' | |||||||
Schedule of long-term debt | ' | |||||||
2013 | 2012 | |||||||
7.800% Debentures, due June 15, 2027 | $ | 100,000 | $ | 100,000 | ||||
6.625% Senior Notes, due May 1, 2037 | 123,544 | 123,482 | ||||||
Other | – | 1,858 | ||||||
Total long-term debt | 223,544 | 225,340 | ||||||
Less current portion | – | 1,858 | ||||||
Long-term debt, less current portion | $ | 223,544 | $ | 223,482 | ||||
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended | |||||||||||||
Oct. 31, 2013 | ||||||||||||||
STOCKHOLDERS' EQUITY | ' | |||||||||||||
Schedule of components of accumulated other comprehensive loss ("AOCL"), net of tax, within the consolidated statements of stockholders' equity | ' | |||||||||||||
As of October 31 | 2013 | 2012 | 2011 | |||||||||||
Foreign currency translation adjustments | $ | 7,778 | $ | 5,436 | $ | 2,904 | ||||||||
Pension and retiree medical benefits | 3,683 | 4,328 | 3,800 | |||||||||||
Derivative instruments | 1,109 | 210 | 122 | |||||||||||
Total accumulated other comprehensive loss | $ | 12,570 | $ | 9,974 | $ | 6,826 | ||||||||
Schedule of components and activity of accumulated other comprehensive loss | ' | |||||||||||||
Foreign | Pension | Cash Flow | Total | |||||||||||
Currency | and Post- | Derivative | ||||||||||||
Translation | retirement | Instruments | ||||||||||||
Adjustments | Benefits | |||||||||||||
October 31, 2012 | $ | 5,436 | $ | 4,328 | $ | 210 | $ | 9,974 | ||||||
Other comprehensive loss before reclassifications | 2,342 | – | 1,870 | 4,212 | ||||||||||
Amounts reclassified from AOCL | – | (645 | ) | (971 | ) | (1,616 | ) | |||||||
Net current period other comprehensive loss (income) | $ | 2,342 | $ | (645 | ) | $ | 899 | $ | 2,596 | |||||
October 31, 2013 | $ | 7,778 | $ | 3,683 | $ | 1,109 | $ | 12,570 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Oct. 31, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
Schedule of reconciliation of the statutory federal income tax rate to the company's consolidated effective tax rate | ' | ||||||||||
Fiscal years ended October 31 | 2013 | 2012 | 2011 | ||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | |||||
Increase (reduction) in income taxes resulting from: | |||||||||||
Domestic manufacturer's deduction | (2.0 | ) | (2.0 | ) | (1.8 | ) | |||||
State and local income taxes, net of federal income tax benefit | 1.5 | 1.5 | 1.4 | ||||||||
Effect of foreign source income | (0.3 | ) | 0.2 | 0.2 | |||||||
Domestic research tax credit | (2.4 | ) | (0.2 | ) | (2.4 | ) | |||||
Other, net | (0.1 | ) | (0.5 | ) | 0.3 | ||||||
Consolidated effective tax rate | 31.7 | % | 34 | % | 32.7 | % | |||||
Schedule of components of the provision for income taxes | ' | ||||||||||
Fiscal years ended October 31 | 2013 | 2012 | 2011 | ||||||||
Provision for income taxes: | |||||||||||
Current – | |||||||||||
Federal | $ | 61,388 | $ | 59,405 | $ | 47,922 | |||||
State | 5,108 | 4,609 | 3,963 | ||||||||
Non-U.S. | 5,734 | 3,854 | 7,103 | ||||||||
Current provision | $ | 72,230 | $ | 67,868 | $ | 58,988 | |||||
Deferred – | |||||||||||
Federal | $ | 824 | $ | (685 | ) | $ | (31 | ) | |||
State | 91 | (132 | ) | (211 | ) | ||||||
Non-U.S. | (1,277 | ) | (330 | ) | (1,578 | ) | |||||
Deferred benefit | (362 | ) | (1,147 | ) | (1,820 | ) | |||||
Total provision for income taxes | $ | 71,868 | $ | 66,721 | $ | 57,168 | |||||
Schedule of earnings before income taxes | ' | ||||||||||
Fiscal years ended October 31 | 2013 | 2012 | 2011 | ||||||||
Earnings before income taxes: | |||||||||||
U.S. | $ | 213,509 | $ | 189,206 | $ | 160,444 | |||||
Non-U.S. | 13,204 | 7,056 | 14,382 | ||||||||
Total | $ | 226,713 | $ | 196,262 | $ | 174,826 | |||||
Schedule of tax effects of temporary differences that give rise to the net deferred income tax assets | ' | ||||||||||
October 31 | 2013 | 2012 | |||||||||
Deferred tax assets (liabilities): | |||||||||||
Allowance for doubtful accounts | $ | 1,635 | $ | 1,959 | |||||||
Inventory items | 3,969 | 4,595 | |||||||||
Warranty reserves and other accruals | 38,168 | 39,559 | |||||||||
Employee benefits | 18,315 | 16,466 | |||||||||
Depreciation | (2,467 | ) | (4,389 | ) | |||||||
Other | 5,550 | 9,625 | |||||||||
Deferred tax assets | $ | 65,170 | $ | 67,815 | |||||||
Valuation allowance | (5,572 | ) | (6,781 | ) | |||||||
Net deferred tax assets | $ | 59,598 | $ | 61,034 | |||||||
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | ' | ||||||||||
Balance as of October 31, 2012 | $ | 4,421 | |||||||||
Decrease as a result of tax positions taken during a prior period | (626 | ) | |||||||||
Increase as a result of tax positions taken during the current period | 940 | ||||||||||
Decrease relating to settlements with taxing authorities | (214 | ) | |||||||||
Reduction as a result of a lapse of the applicable statute of limitations | (15 | ) | |||||||||
Balance as of October 31, 2013 | $ | 4,506 | |||||||||
STOCKBASED_COMPENSATION_PLANS_
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended | |||||||||||
Oct. 31, 2013 | ||||||||||||
STOCK-BASED COMPENSATION PLANS | ' | |||||||||||
Schedule of compensation costs related to stock-based awards | ' | |||||||||||
Fiscal years ended October 31 | 2013 | 2012 | 2011 | |||||||||
Stock option awards | $ | 4,710 | $ | 4,200 | $ | 4,654 | ||||||
Restricted stock and restricted stock unit awards | 1,694 | 1,721 | 699 | |||||||||
Performance share awards | 3,833 | 3,582 | 3,180 | |||||||||
Total compensation cost for stock-based awards | $ | 10,237 | $ | 9,503 | $ | 8,533 | ||||||
Tax benefit realized for tax deductions from stock-based awards | $ | 10,614 | $ | 13,266 | $ | 4,469 | ||||||
Schedule of stock options activity | ' | |||||||||||
Stock | Weighted | Weighted | Intrinsic | |||||||||
Option | Average | Average | Value | |||||||||
Awards | Exercise | Contractual | ||||||||||
Price | Life(years) | |||||||||||
Outstanding as of October 31, 2012 | 3,199,816 | $22.54 | 6 | $ | 62,982 | |||||||
Granted | 381,639 | 42.14 | ||||||||||
Exercised | (498,513 | ) | 18.63 | |||||||||
Cancelled | (13,164 | ) | 35.91 | |||||||||
Outstanding as of October 31, 2013 | 3,069,778 | $25.55 | 5.9 | $ | 102,493 | |||||||
Exercisable as of October 31, 2013 | 2,220,781 | $21.97 | 4.9 | $ | 82,099 | |||||||
Schedule of total market value and the intrinsic value of options exercised | ' | |||||||||||
Fiscal years ended October 31 | 2013 | 2012 | 2011 | |||||||||
Market value of stock options exercised | $ | 23,160 | $ | 35,901 | $ | 25,592 | ||||||
Intrinsic value of options exercised | 13,875 | 16,061 | 11,434 | |||||||||
Schedule of valuation assumptions of stock-based compensation | ' | |||||||||||
Fiscal years ended October 31 | 2013 | 2012 | 2011 | |||||||||
Expected life of option in years | 6 | 6 | 6 | |||||||||
Expected volatility | 35.18% – 35.19% | 34.87% – 35.02% | 33.34% – 33.43% | |||||||||
Weighted-average volatility | 35.19% | 35.01% | 33.42% | |||||||||
Risk-free interest rate | 0.88% | 1.20% | 1.72% – 2.36% | |||||||||
Expected dividend yield | 1.04% – 1.07% | 1.31% – 1.40% | 1.04% – 1.16% | |||||||||
Weighted-average dividend yield | 1.07% | 1.32% | 1.05% | |||||||||
Weighted-average fair value at date of grant | $13.03 | $8.56 | $10.15 | |||||||||
Schedule of restricted stock and restricted stock unit awards granted | ' | |||||||||||
Fiscal years ended October 31 | 2013 | 2012 | 2011 | |||||||||
Weighted-average fair value at date of grant | $ | 46.1 | $ | 33.61 | $ | 27.17 | ||||||
Fair value of restricted stock and restricted stock unit awards vested | 1,207 | 967 | 37 | |||||||||
Schedule of unvested restricted stock shares and the weighted average fair value at the date of grant | ' | |||||||||||
Restricted | Weighted- | |||||||||||
Stock and | Average Fair | |||||||||||
Units | Value at Date | |||||||||||
of Grant | ||||||||||||
Unvested as of October 31, 2012 | 114,914 | $ | 30.02 | |||||||||
Granted | 41,270 | 46.1 | ||||||||||
Vested | (42,214 | ) | 28.59 | |||||||||
Forfeited | (4,682 | ) | 37.45 | |||||||||
Unvested as of October 31, 2013 | 109,288 | $ | 36.32 | |||||||||
Schedule of performance share awards granted | ' | |||||||||||
Fiscal years ended October 31 | 2013 | 2012 | 2011 | |||||||||
Weighted-average fair value at date of grant | $ | 42.06 | $ | 28.24 | $ | 31.76 | ||||||
Fair value of performance share awards vested | 9,057 | 1,828 | 1,429 | |||||||||
Schedule of unvested performance share awards and the weighted average fair value at the date of grant | ' | |||||||||||
Performance | Weighted- | |||||||||||
Shares | Average Fair | |||||||||||
Value at Date | ||||||||||||
of Grant | ||||||||||||
Unvested as of October 31, 2012 | 583,332 | $ | 26.33 | |||||||||
Granted | 152,800 | 42.06 | ||||||||||
Vested | (215,332 | ) | 20.37 | |||||||||
Forfeited | – | – | ||||||||||
Unvested as of October 31, 2013 | 520,800 | $ | 33.41 | |||||||||
EMPLOYEE_RETIREMENT_PLANS_Tabl
EMPLOYEE RETIREMENT PLANS (Tables) | 12 Months Ended | ||||||||||
Oct. 31, 2013 | |||||||||||
EMPLOYEE RETIREMENT PLANS | ' | ||||||||||
Schedule of amounts recognized in accumulated other comprehensive loss | ' | ||||||||||
Fiscal years ended | Defined Benefit | Other Postretirement | Total | ||||||||
October 31 | Pension Plans | Benefit Plans | |||||||||
2013 | |||||||||||
Net actuarial loss | $ | 2,915 | $ | 611 | $ | 3,526 | |||||
Net prior service cost (credit) | 289 | (132 | ) | 157 | |||||||
Accumulated other comprehensive loss | $ | 3,204 | $ | 479 | $ | 3,683 | |||||
2012 | |||||||||||
Net actuarial loss | $ | 3,316 | $ | 926 | $ | 4,242 | |||||
Net prior service cost (credit) | 324 | (238 | ) | 86 | |||||||
Accumulated other comprehensive loss | $ | 3,640 | $ | 688 | $ | 4,328 | |||||
Schedule of amounts included in accumulated other comprehensive loss and are expected to be recognized as components of net periodic benefit cost during next fiscal year | ' | ||||||||||
Defined Benefit | Other | Total | |||||||||
Pension Plans | Postretirement | ||||||||||
Benefit Plans | |||||||||||
Net actuarial loss | $ | 424 | $ | 14 | $ | 438 | |||||
Net prior service cost (credit) | 51 | (168 | ) | (117 | ) | ||||||
Total | $ | 475 | $ | (154 | ) | $ | 321 | ||||
Schedule of amounts recognized in net periodic benefit cost and other comprehensive income | ' | ||||||||||
Fiscal years ended | Defined Benefit | Other | Total | ||||||||
October 31 | Pension Plans | Postretirement | |||||||||
Benefit Plans | |||||||||||
2013 | |||||||||||
Net actuarial gain | $ | (1,170 | ) | $ | (283 | ) | $ | (1,453 | ) | ||
Amortization of unrecognized prior service (credit) cost | (34 | ) | 106 | 72 | |||||||
Amortization of unrecognized actuarial loss (gain) | 768 | (32 | ) | 736 | |||||||
Total recognized in other comprehensive loss (income) | $ | (436 | ) | $ | (209 | ) | $ | (645 | ) | ||
Total recognized in net periodic benefit cost and other comprehensive loss (income) | $ | 117 | $ | 387 | $ | 504 | |||||
2012 | |||||||||||
Net actuarial loss (gain) | $ | 298 | $ | (1,130 | ) | $ | (832 | ) | |||
Curtailment loss | 311 | – | 311 | ||||||||
Prior service cost | 186 | – | 186 | ||||||||
Amortization of unrecognized prior service (credit) cost | (55 | ) | 106 | 51 | |||||||
Amortization of unrecognized actuarial loss (gain) | 919 | (107 | ) | 812 | |||||||
Total recognized in other comprehensive loss (income) | $ | 1,659 | $ | (1,131 | ) | $ | 528 | ||||
Total recognized in net periodic benefit cost and other comprehensive loss (income) | $ | 1,522 | $ | (291 | ) | $ | 1,231 | ||||
SEGMENT_DATA_Tables
SEGMENT DATA (Tables) | 12 Months Ended | |||||||||||||
Oct. 31, 2013 | ||||||||||||||
SEGMENT DATA | ' | |||||||||||||
Summarized financial information concerning the company's reportable segments | ' | |||||||||||||
Fiscal years ended October 31 | Professional | Residential | Other | Total | ||||||||||
2013 | ||||||||||||||
Net sales | $ | 1,425,259 | $ | 594,411 | $ | 21,761 | $ | 2,041,431 | ||||||
Intersegment gross sales | 40,416 | 402 | (40,818 | ) | – | |||||||||
Earnings (loss) before income taxes | 254,424 | 62,033 | (89,744 | ) | 226,713 | |||||||||
Total assets | 528,926 | 167,918 | 305,904 | 1,002,748 | ||||||||||
Capital expenditures | 32,362 | 7,838 | 9,227 | 49,427 | ||||||||||
Depreciation and amortization | 34,706 | 10,321 | 9,107 | 54,134 | ||||||||||
2012 | ||||||||||||||
Net sales | $ | 1,329,504 | $ | 607,435 | $ | 21,751 | $ | 1,958,690 | ||||||
Intersegment gross sales | 37,324 | 26 | (37,350 | ) | – | |||||||||
Earnings (loss) before income taxes | 232,104 | 57,889 | (93,731 | ) | 196,262 | |||||||||
Total assets | 527,159 | 169,899 | 238,141 | 935,199 | ||||||||||
Capital expenditures | 29,313 | 4,164 | 9,765 | 43,242 | ||||||||||
Depreciation and amortization | 34,876 | 10,919 | 7,839 | 53,634 | ||||||||||
2011 | ||||||||||||||
Net sales | $ | 1,239,068 | $ | 623,889 | $ | 20,996 | $ | 1,883,953 | ||||||
Intersegment gross sales | 35,539 | 3,560 | (39,099 | ) | – | |||||||||
Earnings (loss) before income taxes | 205,009 | 54,410 | (84,593 | ) | 174,826 | |||||||||
Total assets | 497,388 | 202,222 | 171,053 | 870,663 | ||||||||||
Capital expenditures | 43,933 | 5,615 | 7,899 | 57,447 | ||||||||||
Depreciation and amortization | 31,380 | 9,846 | 7,280 | 48,506 | ||||||||||
Summary of the components of the loss before income taxes included in "Other" | ' | |||||||||||||
Fiscal years ended October 31 | 2013 | 2012 | 2011 | |||||||||||
Corporate expenses | $ | (85,359 | ) | $ | (81,376 | ) | $ | (72,726 | ) | |||||
Interest expense | (16,210 | ) | (16,906 | ) | (16,970 | ) | ||||||||
Other income | 11,825 | 4,551 | 5,103 | |||||||||||
Total | $ | (89,744 | ) | $ | (93,731 | ) | $ | (84,593 | ) | |||||
Schedule of net sales for groups of similar products and services | ' | |||||||||||||
Fiscal years ended October 31 | 2013 | 2012 | 2011 | |||||||||||
Equipment | $ | 1,649,489 | $ | 1,586,864 | $ | 1,529,470 | ||||||||
Irrigation and lighting | 391,942 | 371,826 | 354,483 | |||||||||||
Total | $ | 2,041,431 | $ | 1,958,690 | $ | 1,883,953 | ||||||||
Schedule of geographic area data | ' | |||||||||||||
Fiscal years ended October 31 | United | Foreign | Total | |||||||||||
States | Countries | |||||||||||||
2013 | ||||||||||||||
Net sales | $ | 1,426,060 | $ | 615,371 | $ | 2,041,431 | ||||||||
Long-lived assets | 143,547 | 41,549 | 185,096 | |||||||||||
2012 | ||||||||||||||
Net sales | $ | 1,364,377 | $ | 594,313 | $ | 1,958,690 | ||||||||
Long-lived assets | 137,708 | 42,815 | 180,523 | |||||||||||
2011 | ||||||||||||||
Net sales | $ | 1,276,038 | $ | 607,915 | $ | 1,883,953 | ||||||||
Long-lived assets | 145,169 | 45,971 | 191,140 | |||||||||||
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | |||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||
FINANCIAL INSTRUMENTS | ' | |||||||||||||||||||||||
Fair value of the company's derivatives and consolidated balance sheet location | ' | |||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||
October 31, 2013 | October 31, 2012 | October 31, 2013 | October 31, 2012 | |||||||||||||||||||||
Balance | Fair | Balance | Fair | Balance | Fair | Balance | Fair | |||||||||||||||||
Sheet | Value | Sheet | Value | Sheet | Value | Sheet | Value | |||||||||||||||||
Location | Location | Location | Location | |||||||||||||||||||||
Derivatives Designated as Hedging Instruments | ||||||||||||||||||||||||
Forward currency contracts | Prepaid expenses | $ | 558 | Prepaid expenses | $ | 635 | Accrued liabilities | $ | 1,381 | Accrued liabilities | $ | 1,359 | ||||||||||||
Cross currency contract | Prepaid expenses | – | Prepaid expenses | 661 | Accrued liabilities | 326 | Accrued liabilities | – | ||||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||||||||
Forward currency contracts | Prepaid expenses | $ | 708 | Prepaid expenses | $ | 360 | Accrued liabilities | $ | 550 | Accrued liabilities | $ | 755 | ||||||||||||
Cross currency contract | Prepaid expenses | – | Prepaid expenses | 385 | Accrued liabilities | 117 | Accrued liabilities | – | ||||||||||||||||
Total Derivatives | $ | 1,266 | $ | 2,041 | $ | 2,374 | $ | 2,114 | ||||||||||||||||
Impact of derivative instruments on the consolidated statements of earnings for the company's derivatives designated as cash flow hedging instruments | ' | |||||||||||||||||||||||
Gain (Loss) | Location of Gain (Loss) Reclassified | Gain (Loss) Reclassified | Location of Gain (Loss) Recognized in | Gain (Loss) Recognized | ||||||||||||||||||||
Recognized in OCI on | from AOCL into Income | from AOCL into Income | Income on Derivatives (Ineffective | in Income on Derivatives | ||||||||||||||||||||
Derivatives, net of tax | (Effective Portion) | (Effective Portion) | Portion and excluded from | (Ineffective Portion and | ||||||||||||||||||||
(Effective Portion) | Effectiveness Testing) | Excluded from | ||||||||||||||||||||||
Effectiveness Testing) | ||||||||||||||||||||||||
Fiscal years ended | October 31, | October 31, | October 31, | October 31, | October 31, | October 31, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Forward currency contracts | $ | 7 | $ | (1,751 | ) | Net sales | $ | (805 | ) | $ | (3,561 | ) | Other income, net | $ | 648 | $ | 930 | |||||||
Forward currency contracts | (231 | ) | 1,194 | Cost of sales | 473 | 1,500 | ||||||||||||||||||
Cross currency contracts | (680 | ) | 463 | Other income, net | (639 | ) | 133 | |||||||||||||||||
Total | $ | (904 | ) | $ | (94 | ) | Total | $ | (971 | ) | $ | (1,928 | ) | |||||||||||
Impact of derivative instruments on the consolidated statements of earnings for the company's derivatives not designated as hedging instruments | ' | |||||||||||||||||||||||
Gain (Loss) Recognized | ||||||||||||||||||||||||
in Net Earnings | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
Location of Gain (Loss) | October 31, | October 31, | ||||||||||||||||||||||
Recognized in Net Earnings | 2013 | 2012 | ||||||||||||||||||||||
Forward currency contracts | Other income, net | $ | (1,402 | ) | $ | 4,165 | ||||||||||||||||||
Cross currency contracts | Other income, net | (483 | ) | 379 | ||||||||||||||||||||
Total | $ | (1,885 | ) | $ | 4,544 | |||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||||||||||||
October 31, 2013 | Fair | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Value | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 182,993 | $ | 182,993 | $ | – | – | |||||||||||||||||
Forward currency contracts | 1,266 | – | 1,266 | – | ||||||||||||||||||||
Total assets | $ | 184,259 | $ | 182,993 | $ | 1,266 | – | |||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Forward currency contracts | $ | 1,931 | – | $ | 1,931 | – | ||||||||||||||||||
Cross currency contracts | 443 | – | 443 | – | ||||||||||||||||||||
Deferred compensation liabilities | 2,777 | – | 2,777 | – | ||||||||||||||||||||
Total liabilities | $ | 5,151 | – | $ | 5,151 | – | ||||||||||||||||||
October 31, 2012 | Fair | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Value | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 125,856 | $ | 125,856 | $ | – | – | |||||||||||||||||
Forward currency contracts | 995 | – | 995 | – | ||||||||||||||||||||
Cross currency contracts | 1,046 | – | 1,046 | – | ||||||||||||||||||||
Total assets | $ | 127,897 | $ | 125,856 | $ | 2,041 | – | |||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Forward currency contracts | $ | 2,114 | – | $ | 2,114 | – | ||||||||||||||||||
Deferred compensation liabilities | 3,547 | – | 3,547 | – | ||||||||||||||||||||
Total liabilities | $ | 5,661 | – | $ | 5,661 | – | ||||||||||||||||||
QUARTERLY_FINANCIAL_DATA_Table
QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended | |||||||||||||
Oct. 31, 2013 | ||||||||||||||
QUARTERLY FINANCIAL DATA (unaudited) | ' | |||||||||||||
Summary of quarterly financial data | ' | |||||||||||||
Fiscal year ended | First | Second | Third | Fourth | ||||||||||
October 31, 2013 | ||||||||||||||
Quarter | ||||||||||||||
Net sales | $ | 444,661 | $ | 704,486 | $ | 509,918 | $ | 382,366 | ||||||
Gross profit | 165,817 | 252,301 | 178,031 | 128,648 | ||||||||||
Net earnings | 31,396 | 78,402 | 40,097 | 4,950 | ||||||||||
Basic net earnings per share1 | 0.54 | 1.35 | 0.7 | 0.09 | ||||||||||
Diluted net earnings per share1 | 0.53 | 1.32 | 0.68 | 0.08 | ||||||||||
Fiscal year ended | First | Second | Third | Fourth | ||||||||||
October 31, 2012 | ||||||||||||||
Quarter | ||||||||||||||
Net sales | $ | 423,835 | $ | 691,485 | $ | 504,076 | $ | 339,294 | ||||||
Gross profit | 146,651 | 235,422 | 178,122 | 112,899 | ||||||||||
Net earnings | 19,923 | 68,818 | 40,549 | 251 | ||||||||||
Basic net earnings per share1 | 0.33 | 1.15 | 0.69 | 0 | ||||||||||
Diluted net earnings per share1 | 0.33 | 1.13 | 0.67 | 0 | ||||||||||
1 | ||||||||||||||
Net earnings per share amounts do not sum to equal full year total due to changes in the number of shares outstanding during the periods and rounding. | ||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED DATA (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Cash and Cash Equivalents | ' | ' | ' |
Restricted cash and short-term investments | $24,837 | ' | ' |
Inventory Valuations | ' | ' | ' |
Percentage of total inventory valued under FIFO method | 33.00% | 31.00% | ' |
Effect of LIFO inventory layers reduction on cost of sales | 122 | 0 | 0 |
Inventories | ' | ' | ' |
Raw materials and work in process | 87,668 | 91,465 | ' |
Finished goods and service parts | 217,796 | 223,459 | ' |
Total FIFO value | 305,464 | 314,924 | ' |
Less: adjustment to LIFO value | 65,375 | 63,807 | ' |
Total | $240,089 | $251,117 | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED DATA (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Property and Depreciation | ' | ' | ' |
Capitalized interest amount | $722 | $256 | $230 |
Subtotal | 721,504 | 683,107 | ' |
Less: accumulated depreciation | 536,408 | 502,584 | ' |
Property, plant, and equipment, net | 185,096 | 180,523 | 191,140 |
Depreciation expense | 48,207 | 46,840 | 43,539 |
Buildings including leasehold improvements | ' | ' | ' |
Property and Depreciation | ' | ' | ' |
Subtotal | 133,866 | 129,353 | ' |
Buildings including leasehold improvements | Minimum | ' | ' | ' |
Property and Depreciation | ' | ' | ' |
Estimated useful life | '10 years | ' | ' |
Buildings including leasehold improvements | Maximum | ' | ' | ' |
Property and Depreciation | ' | ' | ' |
Estimated useful life | '45 years | ' | ' |
Equipment | Minimum | ' | ' | ' |
Property and Depreciation | ' | ' | ' |
Estimated useful life | '2 years | ' | ' |
Equipment | Maximum | ' | ' | ' |
Property and Depreciation | ' | ' | ' |
Estimated useful life | '7 years | ' | ' |
Tooling costs | ' | ' | ' |
Property and Depreciation | ' | ' | ' |
Subtotal | 173,039 | 166,319 | ' |
Tooling costs | Minimum | ' | ' | ' |
Property and Depreciation | ' | ' | ' |
Estimated useful life | '3 years | ' | ' |
Tooling costs | Maximum | ' | ' | ' |
Property and Depreciation | ' | ' | ' |
Estimated useful life | '5 years | ' | ' |
Software and website development costs | Minimum | ' | ' | ' |
Property and Depreciation | ' | ' | ' |
Estimated useful life | '2 years | ' | ' |
Software and website development costs | Maximum | ' | ' | ' |
Property and Depreciation | ' | ' | ' |
Estimated useful life | '5 years | ' | ' |
Land and land improvements | ' | ' | ' |
Property and Depreciation | ' | ' | ' |
Subtotal | 27,632 | 27,325 | ' |
Machinery and equipment | ' | ' | ' |
Property and Depreciation | ' | ' | ' |
Subtotal | 284,492 | 268,571 | ' |
Computer hardware and software | ' | ' | ' |
Property and Depreciation | ' | ' | ' |
Subtotal | 73,302 | 65,861 | ' |
Construction in process | ' | ' | ' |
Property and Depreciation | ' | ' | ' |
Subtotal | $29,173 | $25,678 | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED DATA (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
item | |||
segment | |||
Goodwill and Indefinite-Life Intangible Assets | ' | ' | ' |
Number of operating segments | 8 | ' | ' |
Number of reporting units containing goodwill | 6 | ' | ' |
Impairment charges write down of indefinite-life intangible asset | ' | $400 | ' |
Other Long-Lived Assets | ' | ' | ' |
Write down of long-lived assets | 824 | 691 | 109 |
Accounts Payable | ' | ' | ' |
Minimum number of payment obligations to be financed | 1 | ' | ' |
Outstanding payment obligations placed on the accounts payable tracking system | 16,572 | 16,159 | ' |
Changes in accrued warranties | ' | ' | ' |
Beginning balance | 69,848 | 62,730 | ' |
Warranty Provisions | 41,067 | 38,439 | ' |
Warranty Claims | -35,529 | -35,431 | ' |
Changes in estimates | -3,209 | 3,910 | ' |
Additions from acquisitions | ' | 200 | ' |
Ending balance | 72,177 | 69,848 | 62,730 |
Revenue Recognition | ' | ' | ' |
Consignment inventory amount | 18,283 | 20,339 | ' |
Cost of Financing Distributor/Dealer Inventory | ' | ' | ' |
Number of fiscal years the entity has repurchased immaterial amounts of inventory under repurchase agreements | '3 years | ' | ' |
Financing costs for distributor and dealer inventories | 19,729 | 19,492 | 16,394 |
Advertising | ' | ' | ' |
Advertising costs | $48,071 | $46,947 | $49,362 |
Basic | ' | ' | ' |
Weighted-average number of shares of common stock | 57,898 | 59,440 | 62,530 |
Assumed issuance of contingent shares | 24 | 6 | 4 |
Weighted-average number of shares of common stock and assumed issuance of contingent shares | 57,922 | 59,446 | 62,534 |
Diluted | ' | ' | ' |
Weighted-average number of shares of common stock and assumed issuance of contingent shares | 57,922 | 59,446 | 62,534 |
Effect of dilutive securities (in shares) | 1,183 | 1,172 | 1,060 |
Weighted-average number of shares of common stock, assumed issuance of contingent and restricted shares, and effect of dilutive securities | 59,105 | 60,618 | 63,594 |
Options and restricted stock, excluded from the computation of diluted earnings per share | 182,868 | 33,427 | 417,436 |
Minimum | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Estimated life | '1 year 6 months | ' | ' |
Maximum | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Estimated life | '13 years | ' | ' |
ACQUISITIONS_Details
ACQUISITIONS (Details) (USD $) | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2012 | Oct. 31, 2011 |
In Thousands, unless otherwise specified | Fiscal 2013 Acquisitions | Fiscal 2013 Acquisitions | Fiscal 2012 Acquisitions | Fiscal 2011 Acquisitions |
Forecast | ||||
Acquisitions | ' | ' | ' | ' |
Purchase price | $3,496 | ' | $11,112 | $24,150 |
Cash consideration | $2,101 | $1,395 | ' | ' |
INVESTMENT_IN_JOINT_VENTURE_De
INVESTMENT IN JOINT VENTURE (Details) (Red Iron Acceptance, LLC, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Red Iron Acceptance, LLC | ' | ' | ' |
Schedule of Equity Method Investments | ' | ' | ' |
Period of unlimited automatic extensions after the initial term of joint venture | ' | '2 years | ' |
Period of notice to be given by parties under the joint venture for not extending the initial term or any subsequent term of joint venture | ' | '1 year | ' |
Portion owned by Toro (as a percent) | 45.00% | ' | ' |
Portion owned by TCFIF (as a percent) | 55.00% | ' | ' |
Secured revolving credit facility | $450,000 | ' | ' |
Investment in joint venture | 13,300 | 12,545 | ' |
Maximum aggregate amount of products repossessed by Red Iron and the TCFIF Canadian affiliate, entity has agreed to repurchase in a calendar year | 7,500 | ' | ' |
Maximum amount of recourse provided to joint venture for outstanding receivables | 465 | 211 | ' |
Net amount of new receivables financed for dealers and distributors | 1,211,470 | 1,191,343 | 1,111,778 |
Summarized financial information for Red Iron | ' | ' | ' |
Revenue | 22,418 | 19,765 | 17,116 |
Net income | 15,776 | 13,326 | 11,070 |
Finance receivables, net | 260,319 | 239,008 | ' |
Other assets | 4,040 | 1,274 | ' |
Total liabilities | $234,804 | $212,408 | ' |
OTHER_INCOME_NET_Details
OTHER INCOME, NET (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
OTHER INCOME, NET | ' | ' | ' |
Interest income | $447 | $786 | $1,072 |
Retail financing revenue | 1,093 | 1,106 | 966 |
Foreign currency exchange rate loss | -702 | -1,786 | -1,751 |
Income from affiliates | 7,097 | 5,996 | 5,682 |
Litigation recovery (settlements), net | 3,071 | -36 | 543 |
Miscellaneous | 1,255 | 1,489 | 797 |
Total other income, net | $12,261 | $7,555 | $7,309 |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
Changes in Goodwill | ' | ' |
Goodwill at the beginning of the period | $92,000 | $92,020 |
Translation and other adjustments | -86 | -20 |
Goodwill at the end of the period | 91,914 | 92,000 |
Professional | ' | ' |
Changes in Goodwill | ' | ' |
Goodwill at the beginning of the period | 80,984 | 80,990 |
Translation and other adjustments | -22 | -6 |
Goodwill at the end of the period | 80,962 | 80,984 |
Residential | ' | ' |
Changes in Goodwill | ' | ' |
Goodwill at the beginning of the period | 11,016 | 11,030 |
Translation and other adjustments | -64 | -14 |
Goodwill at the end of the period | $10,952 | $11,016 |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Other Intangible Assets | ' | ' | ' |
Gross Carrying Amount | $56,255 | $54,250 | ' |
Accumulated Amortization | -32,828 | -27,066 | ' |
Net | 23,427 | 27,184 | ' |
Non-amortizable - trade names | 4,881 | 4,881 | ' |
Total other intangible assets, gross | 61,136 | 59,131 | ' |
Total other intangible assets, net | 28,308 | 32,065 | ' |
Change in gross carrying amount of other intangible assets | 2,005 | ' | ' |
Amortization expense for intangible assets | 5,769 | 6,008 | 4,967 |
Estimated amortization expense | ' | ' | ' |
Fiscal 2014 | 5,623 | ' | ' |
Fiscal 2015 | 5,431 | ' | ' |
Fiscal 2016 | 4,912 | ' | ' |
Fiscal 2017 | 4,017 | ' | ' |
Fiscal 2018 | 1,989 | ' | ' |
After fiscal 2018 | 1,455 | ' | ' |
Patents | ' | ' | ' |
Other Intangible Assets | ' | ' | ' |
Gross Carrying Amount | 10,213 | 9,593 | ' |
Accumulated Amortization | -8,537 | -8,031 | ' |
Net | 1,676 | 1,562 | ' |
Patents | Minimum | ' | ' | ' |
Other Intangible Assets | ' | ' | ' |
Estimated life | '1 year 6 months | '1 year 6 months | ' |
Patents | Maximum | ' | ' | ' |
Other Intangible Assets | ' | ' | ' |
Estimated life | '13 years | '13 years | ' |
Non-compete agreements | ' | ' | ' |
Other Intangible Assets | ' | ' | ' |
Gross Carrying Amount | 6,849 | 6,303 | ' |
Accumulated Amortization | -4,488 | -3,656 | ' |
Net | 2,361 | 2,647 | ' |
Non-compete agreements | Minimum | ' | ' | ' |
Other Intangible Assets | ' | ' | ' |
Estimated life | '1 year 6 months | '1 year 6 months | ' |
Non-compete agreements | Maximum | ' | ' | ' |
Other Intangible Assets | ' | ' | ' |
Estimated life | '10 years | '10 years | ' |
Customer-related | ' | ' | ' |
Other Intangible Assets | ' | ' | ' |
Gross Carrying Amount | 8,654 | 8,312 | ' |
Accumulated Amortization | -4,660 | -3,826 | ' |
Net | 3,994 | 4,486 | ' |
Customer-related | Minimum | ' | ' | ' |
Other Intangible Assets | ' | ' | ' |
Estimated life | '1 year 6 months | '1 year 6 months | ' |
Customer-related | Maximum | ' | ' | ' |
Other Intangible Assets | ' | ' | ' |
Estimated life | '13 years | '13 years | ' |
Developed technology | ' | ' | ' |
Other Intangible Assets | ' | ' | ' |
Gross Carrying Amount | 28,224 | 27,727 | ' |
Accumulated Amortization | -13,478 | -10,196 | ' |
Net | 14,746 | 17,531 | ' |
Developed technology | Minimum | ' | ' | ' |
Other Intangible Assets | ' | ' | ' |
Estimated life | '1 year 6 months | '1 year 6 months | ' |
Developed technology | Maximum | ' | ' | ' |
Other Intangible Assets | ' | ' | ' |
Estimated life | '10 years | '10 years | ' |
Trade names | ' | ' | ' |
Other Intangible Assets | ' | ' | ' |
Gross Carrying Amount | 1,515 | 1,515 | ' |
Accumulated Amortization | -865 | -557 | ' |
Net | 650 | 958 | ' |
Non-amortizable - trade names | 4,881 | 4,881 | ' |
Trade names | Minimum | ' | ' | ' |
Other Intangible Assets | ' | ' | ' |
Estimated life | '1 year 6 months | '1 year 6 months | ' |
Trade names | Maximum | ' | ' | ' |
Other Intangible Assets | ' | ' | ' |
Estimated life | '5 years | '5 years | ' |
Other | ' | ' | ' |
Other Intangible Assets | ' | ' | ' |
Gross Carrying Amount | 800 | 800 | ' |
Accumulated Amortization | ($800) | ($800) | ' |
SHORTTERM_CAPITAL_RESOURCES_De
SHORT-TERM CAPITAL RESOURCES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Short-term capital resources | ' | ' | ' |
Ratio of debt to EBITDA, maximum | 2.75 | 2.75 | 2.75 |
Limit to cash dividends paid and stock repurchased (per fiscal year) if debt to EBITDA ratio exceeds 2.75 | $50,000 | ' | ' |
Unsecured senior four-year revolving credit facility | ' | ' | ' |
Short-term capital resources | ' | ' | ' |
Maximum borrowing capacity | 150,000 | ' | ' |
Credit facility term (in years) | '4 years | ' | ' |
Increase in the credit agreement's borrowing capacity available under the approval of named borrowers | 100,000 | ' | ' |
Description of variable base interest rate | 'LIBOR | ' | ' |
Outstanding short-term debt | 0 | 0 | ' |
Standby letters of credit | ' | ' | ' |
Short-term capital resources | ' | ' | ' |
Maximum borrowing capacity | 20,000 | ' | ' |
Swingline loans | ' | ' | ' |
Short-term capital resources | ' | ' | ' |
Maximum borrowing capacity | 20,000 | ' | ' |
Non-U.S. Operations | Unsecured short-term lines of credit | ' | ' | ' |
Short-term capital resources | ' | ' | ' |
Maximum borrowing capacity | 12,502 | ' | ' |
Outstanding short-term debt | $0 | 0 | ' |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 | Jun. 30, 1997 | Oct. 31, 2013 | Oct. 31, 2012 | Apr. 26, 2007 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | 7.800% Debentures, due June 15, 2027 | 7.800% Debentures, due June 15, 2027 | 7.800% Debentures, due June 15, 2027 | 6.625% Senior Notes, due May 1, 2037 | 6.625% Senior Notes, due May 1, 2037 | 6.625% Senior Notes, due May 1, 2037 | Other | ||
item | |||||||||
LONG-TERM DEBT | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long-term debt | $223,544 | $225,340 | ' | $100,000 | $100,000 | ' | $123,544 | $123,482 | $1,858 |
Less current portion | ' | 1,858 | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, less current portion | 223,544 | 223,482 | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount of notes issued | ' | ' | 175,000 | ' | ' | 125,000 | ' | ' | ' |
Interest rate percentage | ' | ' | ' | 7.80% | ' | 6.63% | 6.63% | ' | ' |
Percentage of par value at which debt was issued | ' | ' | ' | ' | ' | 98.51% | ' | ' | ' |
Debt discount, unamortized | ' | ' | ' | ' | ' | 1,859 | ' | ' | ' |
Total underwriting fee and direct debt issue costs | ' | ' | ' | ' | ' | 1,524 | ' | ' | ' |
Effective interest rate (as a percent) | ' | ' | ' | ' | ' | ' | 6.74% | ' | ' |
Redemption value, basis points added to the treasury rate (as a percent) | ' | ' | ' | ' | ' | ' | 0.30% | ' | ' |
Redemption price as a percentage of the principal amount upon the occurrence of both a change of control and downgrade of rating (as a percent) | ' | ' | ' | ' | ' | ' | 101.00% | ' | ' |
Amount paid to terminate forward-starting interest rate swap agreements | ' | ' | 23,688 | ' | ' | ' | ' | ' | ' |
Number of terminated forward-starting interest rate swap agreements | ' | ' | 3 | ' | ' | ' | ' | ' | ' |
Notional amount of terminated forward-starting interest rate swap agreements | ' | ' | 125,000 | ' | ' | ' | ' | ' | ' |
Deferred income amount at the time of swap termination | ' | ' | 18,710 | ' | ' | ' | ' | ' | ' |
Other assets, excess termination fees over deferred income | 2,153 | ' | ' | ' | ' | ' | ' | ' | ' |
Principal payments on long-term debt in fiscal years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
After 2018 | $225,000 | ' | ' | ' | ' | ' | ' | ' | ' |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||
In Thousands, except Share data, unless otherwise specified | 24-May-12 | Nov. 30, 2011 | Jun. 30, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Mar. 12, 2013 | Jun. 29, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Dec. 11, 2012 |
Stock repurchase program | Stock repurchase program | Stock repurchase program | Stock repurchase program | |||||||||
STOCKHOLDERS' EQUITY | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock split, conversion ratio | 2 | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of common stock dividend distributed as a result of stock split | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' |
Shares issued to stockholders as a result of common stock split | 29,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value (in dollars per share) | $1 | ' | ' | $1 | $1 | ' | ' | ' | ' | ' | ' | ' |
Value of shares transferred from retained earnings to common stock | $29,390 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, authorized shares before amendment to Restated Certificate of Incorporation | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' |
Common stock, authorized shares | ' | ' | ' | 175,000,000 | 100,000,000 | ' | 175,000,000 | ' | ' | ' | ' | ' |
Stock repurchase program | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized to be repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 |
Amount paid to repurchase the shares (in dollars) | ' | ' | ' | 99,588 | 93,395 | 129,955 | ' | ' | 98,842 | 92,719 | 129,955 | ' |
Repurchase of shares | ' | ' | ' | 2,147,185 | 2,604,525 | 4,592,760 | ' | ' | 2,131,615 | 2,591,039 | 4,592,760 | ' |
Number of shares remained authorized for repurchase | ' | ' | ' | ' | ' | ' | ' | ' | 4,343,062 | ' | ' | ' |
Treasury shares held | ' | ' | ' | 21,275,717 | 19,797,958 | ' | ' | ' | ' | ' | ' | ' |
Cost of treasury shares (in dollars) | ' | ' | ' | $1,081,086 | $1,012,536 | ' | ' | ' | ' | ' | ' | ' |
Number of treasury shares authorized to be retired by the company's Board of Directors | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
STOCKHOLDERS_EQUITY_Details_2
STOCKHOLDERS' EQUITY (Details 2) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
In Thousands, unless otherwise specified | |||
Accumulated other comprehensive loss (AOCL) | ' | ' | ' |
Foreign currency translation adjustments | $7,778 | $5,436 | $2,904 |
Pension and retiree medical benefits | 3,683 | 4,328 | 3,800 |
Derivative instruments | 1,109 | 210 | 122 |
Total accumulated other comprehensive loss | $12,570 | $9,974 | $6,826 |
STOCKHOLDERS_EQUITY_Details_3
STOCKHOLDERS' EQUITY (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2011 |
Components and activity of accumulated other comprehensive loss | ' | ' |
Balance at the beginning of the period | $9,974 | $6,826 |
Other comprehensive loss before reclassifications | 4,212 | ' |
Amounts reclassified from AOCL | -1,616 | ' |
Net current period other comprehensive (income) loss | 2,596 | ' |
Balance at the end of the period | 12,570 | 6,826 |
Foreign Currency Translation Adjustments | ' | ' |
Components and activity of accumulated other comprehensive loss | ' | ' |
Balance at the beginning of the period | 5,436 | ' |
Other comprehensive loss before reclassifications | 2,342 | ' |
Net current period other comprehensive (income) loss | 2,342 | ' |
Balance at the end of the period | 7,778 | ' |
Pension and Post-retirement Benefits | ' | ' |
Components and activity of accumulated other comprehensive loss | ' | ' |
Balance at the beginning of the period | 4,328 | ' |
Amounts reclassified from AOCL | -645 | ' |
Net current period other comprehensive (income) loss | -645 | ' |
Balance at the end of the period | 3,683 | ' |
Cash Flow Derivative Instruments | ' | ' |
Components and activity of accumulated other comprehensive loss | ' | ' |
Balance at the beginning of the period | 210 | ' |
Other comprehensive loss before reclassifications | 1,870 | ' |
Amounts reclassified from AOCL | -971 | ' |
Net current period other comprehensive (income) loss | 899 | ' |
Balance at the end of the period | $1,109 | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Reconciliation of the statutory federal income tax rate to consolidated effective tax rate | ' | ' | ' |
Statutory federal income tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
Increase (reduction) in income taxes resulting from: | ' | ' | ' |
Domestic manufacturer's deduction (as a percent) | -2.00% | -2.00% | -1.80% |
State and local income taxes, net of federal income tax benefit (as a percent) | 1.50% | 1.50% | 1.40% |
Effect of foreign source income (as a percent) | -0.30% | 0.20% | 0.20% |
Domestic research tax credit (as a percent) | -2.40% | -0.20% | -2.40% |
Other, net (as a percent) | -0.10% | -0.50% | 0.30% |
Consolidated effective tax rate (as a percent) | 31.70% | 34.00% | 32.70% |
Current | ' | ' | ' |
Federal | $61,388 | $59,405 | $47,922 |
State | 5,108 | 4,609 | 3,963 |
Non-U.S. | 5,734 | 3,854 | 7,103 |
Current provision | 72,230 | 67,868 | 58,988 |
Deferred | ' | ' | ' |
Federal | 824 | -685 | -31 |
State | 91 | -132 | -211 |
Non-U.S. | -1,277 | -330 | -1,578 |
Deferred benefit | -362 | -1,147 | -1,820 |
Total provision for income taxes | 71,868 | 66,721 | 57,168 |
Earnings before income taxes: | ' | ' | ' |
U.S. | 213,509 | 189,206 | 160,444 |
Non-U.S. | 13,204 | 7,056 | 14,382 |
Earnings before income taxes | 226,713 | 196,262 | 174,826 |
Adjustment to stockholders' equity for tax benefits related to employee stock-based award transactions | 6,134 | 9,017 | 2,988 |
Deferred tax assets (liabilities): | ' | ' | ' |
Allowance for doubtful accounts | 1,635 | 1,959 | ' |
Inventory items | 3,969 | 4,595 | ' |
Warranty reserves and other accruals | 38,168 | 39,559 | ' |
Employee benefits | 18,315 | 16,466 | ' |
Depreciation | -2,467 | -4,389 | ' |
Other | 5,550 | 9,625 | ' |
Deferred tax assets | 65,170 | 67,815 | ' |
Valuation allowance | -5,572 | -6,781 | ' |
Net deferred tax assets | 59,598 | 61,034 | ' |
Accumulated undistributed earnings attributable to foreign subsidiaries considered to be indefinitely invested | 52,587 | ' | ' |
Deferred tax liability provided for undistributed earnings from subsidiaries outside the United States | 0 | ' | ' |
Reconciliation of unrecognized tax benefits | ' | ' | ' |
Balance at the beginning of the period | 4,421 | ' | ' |
Decrease as a result of tax positions taken during a prior period | -626 | ' | ' |
Increase as a result of tax positions taken during the current period | 940 | ' | ' |
Decrease relating to settlements with taxing authorities | -214 | ' | ' |
Reduction as a result of a lapse of the applicable statute of limitations | -15 | ' | ' |
Balance at the end of the period | 4,506 | 4,421 | ' |
Potential benefits that would affect the effective tax rate | 3,276 | ' | ' |
Accrued interest and penalties for unrecognized tax benefits | 66 | ' | ' |
Foreign Jurisdictions | ' | ' | ' |
Net operating loss | ' | ' | ' |
Net operating loss carryforwards in foreign jurisdictions | 16,679 | ' | ' |
Net operating loss carryforwards in foreign jurisdictions not subject to expiration | 10,477 | ' | ' |
Net operating loss carryforwards in foreign jurisdictions subject to expiration in fiscal years 2014 through 2017 | 0 | ' | ' |
Net operating loss carryforwards in foreign jurisdictions subject to expiration between fiscal years 2018 and 2021 | $6,202 | ' | ' |
STOCKBASED_COMPENSATION_PLANS_1
STOCK-BASED COMPENSATION PLANS (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Stock-Based Compensation | ' | ' | ' |
Total compensation cost for stock-based awards | $10,237 | $9,503 | $8,533 |
Tax benefit realized for tax deductions from stock-based awards | 10,614 | 13,266 | 4,469 |
Common stock available for future grants (in shares) | 3,873,904 | ' | ' |
Stock Option Awards | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' |
Total compensation cost for stock-based awards | 4,710 | 4,200 | 4,654 |
Stock option awards | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 3,199,816 | ' | ' |
Granted (in shares) | 381,639 | ' | ' |
Exercised (in shares) | -498,513 | ' | ' |
Cancelled (in shares) | -13,164 | ' | ' |
Outstanding at the end of the period (in shares) | 3,069,778 | 3,199,816 | ' |
Exercisable at the end of the period (in shares) | 2,220,781 | ' | ' |
Stock options, weighted-average exercise price | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $22.54 | ' | ' |
Granted (in dollars per share) | $42.14 | ' | ' |
Exercised (in dollars per share) | $18.63 | ' | ' |
Cancelled (in dollars per share) | $35.91 | ' | ' |
Outstanding at the end of the period (in dollars per share) | $25.55 | $22.54 | ' |
Exercisable at the end of the period (in dollars per share) | $21.97 | ' | ' |
Stock options, weighted-average contractual life | ' | ' | ' |
Outstanding at the beginning of the period | '5 years 10 months 24 days | '6 years | ' |
Outstanding at the end of the period | '5 years 10 months 24 days | '6 years | ' |
Exercisable at the end of the period | '4 years 10 months 24 days | ' | ' |
Aggregate intrinsic value | ' | ' | ' |
Outstanding at the beginning of the period | 62,982 | ' | ' |
Outstanding at the end of the period | 102,493 | 62,982 | ' |
Exercisable at the end of the period | 82,099 | ' | ' |
Other stock-based compensation plan disclosures | ' | ' | ' |
Total unrecognized compensation cost related to unvested awards | 1,712 | ' | ' |
Weighted-average period for recognition of compensation cost related to unvested awards | '1 year 10 months 24 days | ' | ' |
Total market value, intrinsic value and fair value of stock options exercised and vested | ' | ' | ' |
Market value of stock options exercised | 23,160 | 35,901 | 25,592 |
Intrinsic value of options exercised | 13,875 | 16,061 | 11,434 |
Valuation assumptions of stock-based compensation | ' | ' | ' |
Expected life of option | '6 years | '6 years | '6 years |
Expected volatility, low end of range (as a percent) | 35.18% | 34.87% | 33.34% |
Expected volatility, high end of range (as a percent) | 35.19% | 35.02% | 33.43% |
Weighted-average volatility (as a percent) | 35.19% | 35.01% | 33.42% |
Risk-free interest rate (as a percent) | 0.88% | 1.20% | ' |
Risk-free interest rate, low end of range (as a percent) | ' | ' | 1.72% |
Risk-free interest rate, high end of range (as a percent) | ' | ' | 2.36% |
Expected dividend yield, low end of range (as a percent) | 1.04% | 1.31% | 1.04% |
Expected dividend yield, high end of range (as a percent) | 1.07% | 1.40% | 1.16% |
Weighted-average dividend yield (as a percent) | 1.07% | 1.32% | 1.05% |
Weighted-average fair value at date of grant (in dollars per share) | $13.03 | $8.56 | $10.15 |
Stock Option Awards | Officers | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' |
Frequency of grants | 'On an annual basis in the first quarter of the company's fiscal year | ' | ' |
Portion of stock-based award that generally vest per year for employees and non-employee directors | 0.333 | ' | ' |
Award vesting period | '3 years | ' | ' |
Term of award | '10 years | ' | ' |
Stock Option Awards | Other employees | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' |
Frequency of grants | 'On an annual basis in the first quarter of the company's fiscal year | ' | ' |
Portion of stock-based award that generally vest per year for employees and non-employee directors | 0.333 | ' | ' |
Award vesting period | '3 years | ' | ' |
Term of award | '10 years | ' | ' |
Stock Option Awards | Non-employee directors | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' |
Frequency of grants | 'On an annual basis in the first quarter of the company's fiscal year | ' | ' |
Portion of stock-based award that generally vest per year for employees and non-employee directors | 0.333 | ' | ' |
Award vesting period | '3 years | ' | ' |
Term of award | '10 years | ' | ' |
Requisite service period for non-employee director based upon which fair value of options granted is expensed on the date of grant | '10 years | ' | ' |
Stock Option Awards | Non-officer employees | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' |
Award vesting period | '3 years | ' | ' |
Term of award | '10 years | ' | ' |
Restricted Stock and Restricted Stock Unit Awards | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' |
Total compensation cost for stock-based awards | 1,694 | 1,721 | 699 |
Portion of stock-based award that generally vest per year for employees and non-employee directors | 0.333 | ' | ' |
Award vesting period | '3 years | ' | ' |
Other stock-based compensation plan disclosures | ' | ' | ' |
Total unrecognized compensation cost related to unvested awards | 1,894 | ' | ' |
Weighted-average period for recognition of compensation cost related to unvested awards | '2 years 1 month 6 days | ' | ' |
Performance Share Awards | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' |
Total compensation cost for stock-based awards | 3,833 | 3,582 | 3,180 |
Frequency of grants | 'On an annual basis in the first quarter of the company's fiscal year | ' | ' |
Award vesting period | '3 years | ' | ' |
Other stock-based compensation plan disclosures | ' | ' | ' |
Total unrecognized compensation cost related to unvested awards | $3,497 | ' | ' |
Weighted-average period for recognition of compensation cost related to unvested awards | '1 year 8 months 12 days | ' | ' |
Valuation assumptions of stock-based compensation | ' | ' | ' |
Performance goal period | '3 years | ' | ' |
Maximum increase in the number of shares of common stock a participant receives based on the achievement of performance goals (as a percent) | 200.00% | ' | ' |
Potential lowest number of shares of common stock that could be received based on the achievement level of performance goals | 0 | ' | ' |
STOCKBASED_COMPENSATION_PLANS_2
STOCK-BASED COMPENSATION PLANS (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Restricted Stock and Restricted Stock Unit Awards | ' | ' | ' |
Granted shares of awards | ' | ' | ' |
Weighted-average fair value at date of grant (in dollars per share) | $46.10 | $33.61 | $27.17 |
Fair value of awards vested | $1,207 | $967 | $37 |
Unvested awards | ' | ' | ' |
Unvested at the beginning of the period (in shares) | 114,914 | ' | ' |
Granted (in shares) | 41,270 | ' | ' |
Vested (in shares) | -42,214 | ' | ' |
Forfeited (in shares) | -4,682 | ' | ' |
Unvested at the end of the period (in shares) | 109,288 | 114,914 | ' |
Weighted-Average Fair Value at Date of Grant | ' | ' | ' |
Unvested at the beginning of the period (in dollars per share) | $30.02 | ' | ' |
Granted (in dollars per share) | $46.10 | $33.61 | $27.17 |
Vested (in dollars per share) | $28.59 | ' | ' |
Forfeited (in dollars per share) | $37.45 | ' | ' |
Unvested at the end of the period (in dollars per share) | $36.32 | $30.02 | ' |
Performance Share Awards | ' | ' | ' |
Granted shares of awards | ' | ' | ' |
Weighted-average fair value at date of grant (in dollars per share) | $42.06 | $28.24 | $31.76 |
Fair value of awards vested | $9,057 | $1,828 | $1,429 |
Unvested awards | ' | ' | ' |
Unvested at the beginning of the period (in shares) | 583,332 | ' | ' |
Granted (in shares) | 152,800 | ' | ' |
Vested (in shares) | -215,332 | ' | ' |
Unvested at the end of the period (in shares) | 520,800 | 583,332 | ' |
Weighted-Average Fair Value at Date of Grant | ' | ' | ' |
Unvested at the beginning of the period (in dollars per share) | $26.33 | ' | ' |
Granted (in dollars per share) | $42.06 | $28.24 | $31.76 |
Vested (in dollars per share) | $20.37 | ' | ' |
Unvested at the end of the period (in dollars per share) | $33.41 | $26.33 | ' |
EMPLOYEE_RETIREMENT_PLANS_Deta
EMPLOYEE RETIREMENT PLANS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
EMPLOYEE RETIREMENT PLANS | ' | ' | ' |
Investments, Savings, Employee Stock Ownership Plan, expenses | $14,931 | $14,304 | $12,686 |
Projected benefit obligation | 42,034 | 41,701 | ' |
Amount of net liability recognized | 3,982 | 3,881 | ' |
Accumulated benefit obligation | 39,967 | 39,612 | ' |
Funded status of plans | 9,063 | 10,510 | ' |
Fair value of the plan assets | 32,971 | 31,191 | ' |
Net expense recognized | 1,149 | 703 | 1,520 |
Amounts recognized in accumulated other comprehensive loss | ' | ' | ' |
Net actuarial loss | 3,526 | 4,242 | ' |
Net prior service cost (credit) | 157 | 86 | ' |
Accumulated other comprehensive loss | 3,683 | 4,328 | 3,800 |
Amounts included in accumulated other comprehensive loss, expected to be recognized as components of net periodic benefit cost | ' | ' | ' |
Net actuarial loss | 438 | ' | ' |
Net prior service cost (credit) | -117 | ' | ' |
Total | 321 | ' | ' |
Amounts recognized in net periodic benefit cost and other comprehensive income | ' | ' | ' |
Net actuarial loss (gain) | -1,453 | -832 | ' |
Curtailment loss | ' | 311 | ' |
Prior service cost | ' | 186 | ' |
Amortization of unrecognized prior service (credit) cost | 72 | 51 | ' |
Amortization of unrecognized actuarial loss (gain) | 736 | 812 | ' |
Total recognized in other comprehensive loss (income) | -645 | 528 | ' |
Total recognized in net periodic benefit cost and other comprehensive loss (income) | 504 | 1,231 | ' |
Defined Benefit Pension Plans | ' | ' | ' |
Amounts recognized in accumulated other comprehensive loss | ' | ' | ' |
Net actuarial loss | 2,915 | 3,316 | ' |
Net prior service cost (credit) | 289 | 324 | ' |
Accumulated other comprehensive loss | 3,204 | 3,640 | ' |
Amounts included in accumulated other comprehensive loss, expected to be recognized as components of net periodic benefit cost | ' | ' | ' |
Net actuarial loss | 424 | ' | ' |
Net prior service cost (credit) | 51 | ' | ' |
Total | 475 | ' | ' |
Amounts recognized in net periodic benefit cost and other comprehensive income | ' | ' | ' |
Net actuarial loss (gain) | -1,170 | 298 | ' |
Curtailment loss | ' | 311 | ' |
Prior service cost | ' | 186 | ' |
Amortization of unrecognized prior service (credit) cost | -34 | -55 | ' |
Amortization of unrecognized actuarial loss (gain) | 768 | 919 | ' |
Total recognized in other comprehensive loss (income) | -436 | 1,659 | ' |
Total recognized in net periodic benefit cost and other comprehensive loss (income) | 117 | 1,522 | ' |
Other Postretirement Benefit Plans | ' | ' | ' |
Amounts recognized in accumulated other comprehensive loss | ' | ' | ' |
Net actuarial loss | 611 | 926 | ' |
Net prior service cost (credit) | -132 | -238 | ' |
Accumulated other comprehensive loss | 479 | 688 | ' |
Amounts included in accumulated other comprehensive loss, expected to be recognized as components of net periodic benefit cost | ' | ' | ' |
Net actuarial loss | 14 | ' | ' |
Net prior service cost (credit) | -168 | ' | ' |
Total | -154 | ' | ' |
Amounts recognized in net periodic benefit cost and other comprehensive income | ' | ' | ' |
Net actuarial loss (gain) | -283 | -1,130 | ' |
Amortization of unrecognized prior service (credit) cost | 106 | 106 | ' |
Amortization of unrecognized actuarial loss (gain) | -32 | -107 | ' |
Total recognized in other comprehensive loss (income) | -209 | -1,131 | ' |
Total recognized in net periodic benefit cost and other comprehensive loss (income) | $387 | ($291) | ' |
SEGMENT_DATA_Details
SEGMENT DATA (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Aug. 02, 2013 | 3-May-13 | Feb. 01, 2013 | Oct. 31, 2012 | Aug. 03, 2012 | 4-May-12 | Feb. 03, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
segment | |||||||||||
SEGMENT DATA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segment | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' |
Number of reportable business segments | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Financial information concerning the company's reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $382,366 | $509,918 | $704,486 | $444,661 | $339,294 | $504,076 | $691,485 | $423,835 | $2,041,431 | $1,958,690 | $1,883,953 |
Earnings (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 226,713 | 196,262 | 174,826 |
Total assets | 1,002,748 | ' | ' | ' | 935,199 | ' | ' | ' | 1,002,748 | 935,199 | 870,663 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 49,427 | 43,242 | 57,447 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 54,134 | 53,634 | 48,506 |
Components of the loss before income taxes included in "Other" | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense, net | ' | ' | ' | ' | ' | ' | ' | ' | -16,210 | -16,906 | -16,970 |
Other income | ' | ' | ' | ' | ' | ' | ' | ' | 12,261 | 7,555 | 7,309 |
Earnings (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 226,713 | 196,262 | 174,826 |
Professional | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial information concerning the company's reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,425,259 | 1,329,504 | 1,239,068 |
Intersegment gross sales | ' | ' | ' | ' | ' | ' | ' | ' | 40,416 | 37,324 | 35,539 |
Earnings (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 254,424 | 232,104 | 205,009 |
Total assets | 528,926 | ' | ' | ' | 527,159 | ' | ' | ' | 528,926 | 527,159 | 497,388 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 32,362 | 29,313 | 43,933 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 34,706 | 34,876 | 31,380 |
Components of the loss before income taxes included in "Other" | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 254,424 | 232,104 | 205,009 |
Residential | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial information concerning the company's reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 594,411 | 607,435 | 623,889 |
Intersegment gross sales | ' | ' | ' | ' | ' | ' | ' | ' | 402 | 26 | 3,560 |
Earnings (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 62,033 | 57,889 | 54,410 |
Total assets | 167,918 | ' | ' | ' | 169,899 | ' | ' | ' | 167,918 | 169,899 | 202,222 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 7,838 | 4,164 | 5,615 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 10,321 | 10,919 | 9,846 |
Components of the loss before income taxes included in "Other" | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 62,033 | 57,889 | 54,410 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial information concerning the company's reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 21,761 | 21,751 | 20,996 |
Intersegment gross sales | ' | ' | ' | ' | ' | ' | ' | ' | -40,818 | -37,350 | -39,099 |
Earnings (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -89,744 | -93,731 | -84,593 |
Total assets | 305,904 | ' | ' | ' | 238,141 | ' | ' | ' | 305,904 | 238,141 | 171,053 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 9,227 | 9,765 | 7,899 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 9,107 | 7,839 | 7,280 |
Components of the loss before income taxes included in "Other" | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Corporate expenses | ' | ' | ' | ' | ' | ' | ' | ' | -85,359 | -81,376 | -72,726 |
Interest expense, net | ' | ' | ' | ' | ' | ' | ' | ' | -16,210 | -16,906 | -16,970 |
Other income | ' | ' | ' | ' | ' | ' | ' | ' | 11,825 | 4,551 | 5,103 |
Earnings (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ($89,744) | ($93,731) | ($84,593) |
SEGMENT_DATA_Details_2
SEGMENT DATA (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Aug. 02, 2013 | 3-May-13 | Feb. 01, 2013 | Oct. 31, 2012 | Aug. 03, 2012 | 4-May-12 | Feb. 03, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Net sales for groups of similar products and services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $382,366 | $509,918 | $704,486 | $444,661 | $339,294 | $504,076 | $691,485 | $423,835 | $2,041,431 | $1,958,690 | $1,883,953 |
Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales for groups of similar products and services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,649,489 | 1,586,864 | 1,529,470 |
Irrigation and lighting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales for groups of similar products and services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $391,942 | $371,826 | $354,483 |
SEGMENT_DATA_Details_3
SEGMENT DATA (Details 3) (Sales, Customer concentration, Single customer, Residential Segment [Member]) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
customer | customer | customer | |
Sales | Customer concentration | Single customer | Residential Segment [Member] | ' | ' | ' |
Concentration Risk | ' | ' | ' |
Number of customers | 1 | 1 | 1 |
Percentage of consolidated gross sales accounted for by one customer (as a percent) | 10.00% | 11.00% | 11.00% |
SEGMENT_DATA_Details_4
SEGMENT DATA (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Aug. 02, 2013 | 3-May-13 | Feb. 01, 2013 | Oct. 31, 2012 | Aug. 03, 2012 | 4-May-12 | Feb. 03, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Geographic Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $382,366 | $509,918 | $704,486 | $444,661 | $339,294 | $504,076 | $691,485 | $423,835 | $2,041,431 | $1,958,690 | $1,883,953 |
Long-lived assets | 185,096 | ' | ' | ' | 180,523 | ' | ' | ' | 185,096 | 180,523 | 191,140 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Geographic Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,426,060 | 1,364,377 | 1,276,038 |
Long-lived assets | 143,547 | ' | ' | ' | 137,708 | ' | ' | ' | 143,547 | 137,708 | 145,169 |
Foreign Countries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Geographic Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 615,371 | 594,313 | 607,915 |
Long-lived assets | $41,549 | ' | ' | ' | $42,815 | ' | ' | ' | $41,549 | $42,815 | $45,971 |
COMMITMENTS_AND_CONTINGENT_LIA1
COMMITMENTS AND CONTINGENT LIABILITIES (Details) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Jun. 30, 2013 | Oct. 31, 2013 | Oct. 31, 2013 |
USD ($) | USD ($) | USD ($) | Canadian Lawnmower Engine Horsepower Marketing and Sales Practices Litigation | Wholesale Financing | End-User Financing | |
CAD | USD ($) | USD ($) | ||||
Leases | ' | ' | ' | ' | ' | ' |
Rental expense for operating leases | $24,399 | $22,166 | $21,840 | ' | ' | ' |
Future minimum lease payments under noncancelable operating leases | ' | ' | ' | ' | ' | ' |
Total future minimum lease payments | 73,165 | ' | ' | ' | ' | ' |
2014 | 14,632 | ' | ' | ' | ' | ' |
2015 | 12,544 | ' | ' | ' | ' | ' |
2016 | 9,307 | ' | ' | ' | ' | ' |
2017 | 5,283 | ' | ' | ' | ' | ' |
2018 | 4,212 | ' | ' | ' | ' | ' |
After 2018 | 27,187 | ' | ' | ' | ' | ' |
Customer Financing | ' | ' | ' | ' | ' | ' |
Receivables purchased by third party financing company from the company | ' | ' | ' | ' | 26,526 | ' |
Receivables financed by third party financing company, excluding Red Iron, outstanding | ' | ' | ' | ' | 13,273 | ' |
Maximum amount of contingent liability to repurchase inventory related receivables under limited inventory repurchase agreements | ' | ' | ' | ' | 10,153 | ' |
Contingent liabilities for residual value or credit collection risk | ' | ' | ' | ' | ' | 0 |
Maximum exposure for credit collection | ' | ' | ' | ' | ' | 1,744 |
Amount agreed to pay under settlement agreement | ' | ' | ' | 4,200 | ' | ' |
Purchase Commitments | ' | ' | ' | ' | ' | ' |
Amount of noncancelable purchase commitments | 8,400 | ' | ' | ' | ' | ' |
Maximum obligation for the construction of a new corporate headquarters facility | 19,876 | ' | ' | ' | ' | ' |
Letters of Credit | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding | $12,681 | $12,963 | ' | ' | ' | ' |
FINANCIAL_INSTRUMENTS_Details
FINANCIAL INSTRUMENTS (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 |
USD ($) | USD ($) | Forward currency contracts | Forward currency contracts | Forward currency contracts | Forward currency contracts | Forward currency contracts | Forward currency contracts | Forward currency contracts | Forward currency contracts | Cross currency contract | Cross currency contract | Cross currency contract | Cross currency contract | Cross currency contract | Cross currency contract | |
USD ($) | USD ($) | Net sales | Net sales | Other income, net | Other income, net | Cost of sales | Cost of sales | USD ($) | EUR (€) | RON | USD ($) | Other income, net | Other income, net | |||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | item | USD ($) | USD ($) | ||||||||
Summary of cash flow hedge activity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum time limit for cash flow hedge | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains or losses on contracts reclassified into earnings as a result of discontinuance of cash flow hedges | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash flow hedge effectiveness testing, grace period | '2 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments and Hedging Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of foreign currency contracts designated as cash flow hedges | ' | ' | 134,186 | ' | ' | ' | ' | ' | ' | ' | ' | 8,500 | 36,593 | ' | ' | ' |
Number of foreign currency contracts held | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | 1 | ' | ' | ' |
Foreign currency contract, designated as hedging instrument, classified in prepaid expenses | ' | ' | 558 | 635 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 661 | ' | ' |
Foreign currency contract, not designated as hedging instrument, classified in prepaid expenses | ' | ' | 708 | 360 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 385 | ' | ' |
Total foreign currency contract asset derivatives at fair value | 1,266 | 2,041 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency contract, designated as hedging instrument, classified in accrued liabilities | ' | ' | 1,381 | 1,359 | ' | ' | ' | ' | ' | ' | 326 | ' | ' | ' | ' | ' |
Foreign currency contract, not designated as hedging instrument, classified in accrued liabilities | ' | ' | 550 | 755 | ' | ' | ' | ' | ' | ' | 117 | ' | ' | ' | ' | ' |
Total foreign currency contract liability derivatives at fair value | 2,374 | 2,114 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (Loss) Recognized in OCI on Foreign Exchange Contract Derivative (Effective Portion) | -904 | -94 | ' | ' | 7 | -1,751 | ' | ' | -231 | 1,194 | ' | ' | ' | ' | -680 | 463 |
Gain (Loss) Reclassified from AOCL into Income on Foreign Exchange Contract Derivative (Effective Portion) | -971 | -1,928 | ' | ' | -805 | -3,561 | ' | ' | 473 | 1,500 | ' | ' | ' | ' | -639 | 133 |
Gain (Loss) recognized in Income on Derivatives (Ineffective Portion and Excluded from Effectiveness Testing) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 648 | 930 |
Gain (Loss) Recognized in Net Earnings | -1,885 | 4,544 | ' | ' | ' | ' | -1,402 | 4,165 | ' | ' | ' | ' | ' | ' | -483 | 379 |
Reclassification of losses from AOCI to earnings during the next 12 months on foreign currency contracts | $1,338 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
FINANCIAL_INSTRUMENTS_Details_
FINANCIAL INSTRUMENTS (Details 2) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Apr. 23, 2007 | Oct. 31, 2013 | Oct. 31, 2012 | Apr. 30, 2007 | Apr. 30, 2007 | Apr. 30, 2007 |
In Thousands, unless otherwise specified | Treasury lock agreement based on U.S. Treasury security | Treasury lock agreement based on U.S. Treasury security | Treasury lock agreement based on U.S. Treasury security | Treasury lock agreement based on U.S. Treasury security | Treasury lock agreement based on U.S. Treasury security, one and two | Treasury lock agreement based on U.S. Treasury security, three | |||
Cash flow hedges. | Cash flow hedges. | Cash flow hedges. | Cash flow hedges. | Cash flow hedges. | Cash flow hedges. | ||||
item | |||||||||
Treasury lock agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of treasury lock agreements | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Amortization period | ' | ' | ' | ' | ' | ' | ' | '30 years | ' |
Principal balance | ' | ' | ' | ' | ' | ' | ' | $30,000 | $40,000 |
Net settlement of unrecognized loss portion recorded in accumulated other comprehensive loss | ' | ' | ' | 182 | ' | ' | ' | ' | ' |
Amount of unrecognized loss portion in accumulated other comprehensive loss | ($1,109) | ($210) | ($122) | ' | $143 | $149 | ' | ' | ' |
FINANCIAL_INSTRUMENTS_Details_1
FINANCIAL INSTRUMENTS (Details 3) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | ||
Liabilities: | ' | ' |
Transfer of asset from level 1 to level 2 | $0 | $0 |
Transfer of asset from level 2 to level 1 | 0 | 0 |
Transfer of liabilities from level 1 to level 2 | 0 | 0 |
Transfer of liabilities from level 2 to level 1 | 0 | 0 |
Long-term debt with fixed interest rates | 243,074 | 262,458 |
Carrying amount of long-term debt | 223,544 | 226,858 |
Measured on a recurring basis | Fair Value | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 182,993 | 125,856 |
Forward currency contracts | 1,266 | 995 |
Cross currency contracts | ' | 1,046 |
Total Assets | 184,259 | 127,897 |
Liabilities: | ' | ' |
Forward currency contracts | 1,931 | 2,114 |
Cross currency contracts | 443 | ' |
Deferred compensation liabilities | 2,777 | 3,547 |
Total Liabilities | 5,151 | 5,661 |
Measured on a recurring basis | Level 1 | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 182,993 | 125,856 |
Total Assets | 182,993 | 125,856 |
Measured on a recurring basis | Level 2 | ' | ' |
Assets: | ' | ' |
Forward currency contracts | 1,266 | 995 |
Cross currency contracts | ' | 1,046 |
Total Assets | 1,266 | 2,041 |
Liabilities: | ' | ' |
Forward currency contracts | 1,931 | 2,114 |
Cross currency contracts | 443 | ' |
Deferred compensation liabilities | 2,777 | 3,547 |
Total Liabilities | $5,151 | $5,661 |
QUARTERLY_FINANCIAL_DATA_Detai
QUARTERLY FINANCIAL DATA (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Aug. 02, 2013 | 3-May-13 | Feb. 01, 2013 | Oct. 31, 2012 | Aug. 03, 2012 | 4-May-12 | Feb. 03, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
QUARTERLY FINANCIAL DATA (unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $382,366 | $509,918 | $704,486 | $444,661 | $339,294 | $504,076 | $691,485 | $423,835 | $2,041,431 | $1,958,690 | $1,883,953 |
Gross profit | 128,648 | 178,031 | 252,301 | 165,817 | 112,899 | 178,122 | 235,422 | 146,651 | 724,797 | 673,094 | 636,647 |
Net earnings | $4,950 | $40,097 | $78,402 | $31,396 | $251 | $40,549 | $68,818 | $19,923 | $154,845 | $129,541 | $117,658 |
Basic net earnings per share (in dollars per share) | $0.09 | $0.70 | $1.35 | $0.54 | $0 | $0.69 | $1.15 | $0.33 | $2.67 | $2.18 | $1.88 |
Diluted net earnings per share (in dollars per share) | $0.08 | $0.68 | $1.32 | $0.53 | $0 | $0.67 | $1.13 | $0.33 | $2.62 | $2.14 | $1.85 |
SCHEDULE_II_Valuation_and_Qual1
SCHEDULE II Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Allowance for doubtful accounts and notes receivable reserves | ' | ' | ' |
Movement in allowance for doubtful accounts and notes receivable reserves and accrued advertising and marketing programs | ' | ' | ' |
Balance at the beginning of the period | $3,733 | $2,040 | $3,904 |
Charged to costs and expense | 123 | 2,160 | 6 |
Other | ' | 12 | 55 |
Deductions | 431 | 479 | 1,925 |
Balance at the end of the period | 3,425 | 3,733 | 2,040 |
Accrued advertising and marketing programs | ' | ' | ' |
Movement in allowance for doubtful accounts and notes receivable reserves and accrued advertising and marketing programs | ' | ' | ' |
Balance at the beginning of the period | 56,264 | 47,161 | 43,095 |
Charged to costs and expense | 287,217 | 214,474 | 190,021 |
Deductions | 279,290 | 205,371 | 185,955 |
Balance at the end of the period | $64,191 | $56,264 | $47,161 |