Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jul. 29, 2016 | Aug. 25, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | TORO CO | |
Entity Central Index Key | 737,758 | |
Document Type | 10-Q | |
Document Period End Date | Jul. 29, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --10-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 54,656,474 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | |
Condensed Consolidated Statements of Earnings | ||||
Net sales | $ 600,980 | $ 609,615 | $ 1,923,819 | $ 1,910,068 |
Cost of sales | 384,363 | 393,225 | 1,221,361 | 1,242,707 |
Gross profit | 216,617 | 216,390 | 702,458 | 667,361 |
Selling, general, and administrative expense | 134,664 | 136,985 | 411,576 | 405,079 |
Operating earnings | 81,953 | 79,405 | 290,882 | 262,282 |
Interest expense | (4,646) | (4,587) | (14,021) | (14,071) |
Other income, net | 3,480 | 2,798 | 11,865 | 7,515 |
Earnings before income taxes | 80,787 | 77,616 | 288,726 | 255,726 |
Provision for income taxes | 24,965 | 24,292 | 87,962 | 77,689 |
Net earnings | $ 55,822 | $ 53,324 | $ 200,764 | $ 178,037 |
Basic net earnings per share of common stock (in dollars per share) | $ 1.02 | $ 0.96 | $ 3.65 | $ 3.19 |
Diluted net earnings per share of common stock (in dollars per share) | $ 1 | $ 0.94 | $ 3.58 | $ 3.13 |
Weighted-average number of shares of common stock outstanding - Basic (in shares) | 54,983 | 55,310 | 54,973 | 55,739 |
Weighted-average number of shares of common stock outstanding - Diluted (in shares) | 56,056 | 56,552 | 56,077 | 56,953 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | |
Condensed Consolidated Statements of Comprehensive Income | ||||
Net earnings | $ 55,822 | $ 53,324 | $ 200,764 | $ 178,037 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments | (5,753) | (3,534) | (4,803) | (10,648) |
Derivative instruments, net of tax of $652, $(379), $(1,000), and $(526), respectively | 667 | (1,055) | (1,925) | (2,394) |
Other comprehensive (loss) income | (5,086) | (4,589) | (6,728) | (13,042) |
Comprehensive income | $ 50,736 | $ 48,735 | $ 194,036 | $ 164,995 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | |
Condensed Consolidated Statements of Comprehensive Income | ||||
Derivative instruments, tax | $ 652 | $ (379) | $ (1,000) | $ (526) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 29, 2016 | Oct. 31, 2015 | Jul. 31, 2015 |
ASSETS | |||
Cash and cash equivalents | $ 277,243 | $ 126,275 | $ 110,335 |
Receivables, net | 202,389 | 177,013 | 227,806 |
Inventories, net | 327,114 | 334,514 | 350,194 |
Prepaid expenses and other current assets | 39,658 | 34,782 | 39,743 |
Deferred income taxes | 39,062 | 38,095 | 43,339 |
Total current assets | 885,466 | 710,679 | 771,417 |
Property, plant, and equipment, gross | 833,664 | 804,598 | 802,305 |
Less: accumulated depreciation | 612,788 | 579,603 | 581,983 |
Property, plant, and equipment, net | 220,876 | 224,995 | 220,322 |
Long-term deferred income taxes | 26,154 | 28,568 | 26,364 |
Other assets | 29,165 | 24,873 | 25,317 |
Goodwill | 195,016 | 195,533 | 194,727 |
Other intangible assets, net | 110,785 | 119,010 | 121,804 |
Total assets | 1,467,462 | 1,303,658 | 1,359,951 |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current portion of long-term debt | 22,627 | 23,134 | 23,279 |
Short-term debt | 222 | 5,189 | |
Accounts payable | 172,156 | 152,017 | 169,927 |
Accrued liabilities | 318,628 | 268,361 | 300,576 |
Total current liabilities | 513,411 | 443,734 | 498,971 |
Long-term debt, less current portion | 334,658 | 354,818 | 358,053 |
Deferred revenue | 11,958 | 11,365 | 11,324 |
Other long-term liabilities | 29,585 | 31,576 | 26,430 |
Stockholders' equity: | |||
Preferred stock, par value $1.00 per share, authorized 1,000,000 voting and 850,000 non-voting shares, none issued and outstanding | |||
Common stock, par value $1.00 per share, authorized 175,000,000 shares; issued and outstanding 54,644,978 shares as of July 29, 2016, 54,835,233 shares as of July 31, 2015, and 54,650,916 shares as of October 31, 2015 | 54,645 | 54,651 | 54,835 |
Retained earnings | 559,776 | 437,357 | 439,085 |
Accumulated other comprehensive loss | (36,571) | (29,843) | (28,747) |
Total stockholders' equity | 577,850 | 462,165 | 465,173 |
Total liabilities and stockholders' equity | $ 1,467,462 | $ 1,303,658 | $ 1,359,951 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 29, 2016 | Oct. 31, 2015 | Jul. 31, 2015 |
Preferred stock | |||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
Preferred stock, issued (in shares) | 0 | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 | 0 |
Common stock | |||
Common stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
Common stock, authorized (in shares) | 175,000,000 | 175,000,000 | 175,000,000 |
Common stock, issued (in shares) | 54,644,978 | 54,650,916 | 54,835,233 |
Common stock, outstanding (in shares) | 54,644,978 | 54,650,916 | 54,835,233 |
Voting preferred stock | |||
Preferred stock | |||
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Non-voting preferred stock | |||
Preferred stock | |||
Preferred stock, authorized (in shares) | 850,000 | 850,000 | 850,000 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 29, 2016 | Jul. 31, 2015 | |
Cash flows from operating activities: | ||
Net earnings | $ 200,764 | $ 178,037 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Non-cash income from finance affiliate | (7,302) | (6,223) |
Provision for depreciation, amortization, and impairment loss | 46,332 | 45,944 |
Stock-based compensation expense | 7,723 | 7,815 |
Decrease/(increase) in deferred income taxes | 256 | (2,096) |
Other | (464) | (67) |
Changes in operating assets and liabilities, net of effect of acquisitions: | ||
Receivables, net | (23,699) | (74,916) |
Inventories, net | 3,428 | (67,902) |
Prepaid expenses and other assets | (2,108) | (5,563) |
Accounts payable, accrued liabilities, deferred revenue, and other long-term liabilities | 63,977 | 92,985 |
Net cash provided by/(used in) operating activities | 288,907 | 168,014 |
Cash flows from investing activities: | ||
Purchases of property, plant, and equipment | (34,601) | (37,544) |
Proceeds from asset disposals | 232 | 77 |
Distributions from finance affiliate, net | 3,594 | 1,928 |
Proceeds from sale of a business | 1,500 | |
Acquisition, net of cash acquired | (198,329) | |
Net cash provided by/(used in) investing activities | (29,275) | (233,868) |
Cash flows from financing activities: | ||
Repayments of short-term debt | (1,161) | (16,283) |
(Repayments of)/ increase in long-term debt | (20,713) | (3,831) |
Excess tax benefits from stock-based awards | 15,078 | 7,808 |
Proceeds from exercise of stock options | 19,691 | 8,615 |
Purchases of Toro common stock | (69,189) | (90,993) |
Dividends paid on Toro common stock | (49,488) | (41,794) |
Net cash provided by/(used in) financing activities | (105,782) | (136,478) |
Effect of exchange rates on cash and cash equivalents | (2,882) | (2,206) |
Net increase/(decrease) in cash and cash equivalents | 150,968 | (204,538) |
Cash and cash equivalents as of the beginning of the fiscal period | 126,275 | 314,873 |
Cash and cash equivalents as of the end of the fiscal period | $ 277,243 | 110,335 |
Supplemental disclosure of cash flow information: | ||
Debt issued in connection with an acquisition | $ 31,161 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jul. 29, 2016 | |
Basis of Presentation | |
Basis of Presentation | Note 1 — Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all the information and notes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. Unless the context indicates otherwise, the terms “company” and “Toro” refer to The Toro Company and its consolidated subsidiaries. In the opinion of management, the unaudited condensed consolidated financial statements include all adjustments, consisting primarily of recurring accruals, considered necessary for a fair presentation of the financial position and results of operations. Since the company’s business is seasonal, operating results for the nine months ended July 29, 2016, cannot be annualized to determine the expected results for the fiscal year ending October 31, 2016. The company’s fiscal year ends on October 31, and quarterly results are reported based on three-month periods that generally end on the Friday closest to the quarter end. For comparative purposes, however, the company’s second and third quarters always include exactly 13 weeks of results so that the quarter end date for these two quarters is not necessarily the Friday closest to the calendar month end. For further information, refer to the consolidated financial statements and notes included in the company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2015. The policies described in that report are used for preparing quarterly reports. Accounting Policies In preparing the consolidated financial statements in conformity with U.S. 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 promotion and incentive accruals, incentive compensation accruals, inventory valuation, warranty reserves, earn-out liabilities, allowance for doubtful accounts, pension and postretirement accruals, self-insurance accruals, useful lives for tangible and intangible assets, and future cash flows associated with impairment testing for goodwill and other long-lived assets. These estimates and assumptions are based on management’s best estimates and judgments at the time they are made. 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. |
Divestiture
Divestiture | 9 Months Ended |
Jul. 29, 2016 | |
Divestiture | |
Divestiture | Note 2 — Divestiture On November 27, 2015, in the first quarter of fiscal 2016, the company completed the sale of its Northwestern U.S. distribution company. The divestiture was not material based on the company’s consolidated financial condition and results of operations. |
Investment in Joint Venture
Investment in Joint Venture | 9 Months Ended |
Jul. 29, 2016 | |
Investment in Joint Venture | |
Investment in Joint Venture | Note 3 — Investment in Joint Venture In fiscal 2009, the company and TCF Inventory Finance, Inc. (“TCFIF”), a subsidiary of TCF National Bank, established Red Iron Acceptance, LLC (“Red Iron”), a joint venture in the form of a Delaware limited liability company that provides inventory financing to distributors and dealers of the company’s products in the U.S. and to select distributors of the company’s products in Canada. The initial term of Red Iron will continue 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. 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. 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. The company and TCFIF each 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 million secured revolving credit facility established under a credit agreement between Red Iron and TCFIF. The company’s total investment in Red Iron as of July 29, 2016 was $22.7 million. 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 $7.5 million in a calendar year. 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 for the nine months ended July 31, 2016 and July 31, 2015 was $1,389.5 million and $1,117.7 million, respectively. As of July 31, 2016, Red Iron’s total assets were $447.0 million and total liabilities were $396.5 million. |
Inventories
Inventories | 9 Months Ended |
Jul. 29, 2016 | |
Inventories | |
Inventories | Note 4 — Inventories 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 and first-in, first-out (“FIFO”) method for all other inventories. 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. Inventories were as follows: July 29, July 31, October 31, (Dollars in thousands) 2016 2015 2015 Raw materials and work in process $ $ $ Finished goods and service parts Total FIFO value Less: adjustment to LIFO value Total inventories, net $ $ $ |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Jul. 29, 2016 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | Note 5 — Goodwill and Other Intangible Assets The changes in the net carrying amount of goodwill for the first nine months of fiscal 2016 were as follows: Professional Residential (Dollars in thousands) Segment Segment Total Balance as of October 31, 2015 $ $ $ Translation adjustments ) ) ) Balance as of July 29, 2016 $ $ $ The components of other intangible assets were as follows: (Dollars in thousands) Gross Carrying Accumulated July 29, 2016 Amount Amortization Net Patents $ $ ) $ Non-compete agreements ) Customer-related ) Developed technology ) Trade names ) Other ) — Total amortizable ) Non-amortizable - trade names — Total other intangible assets, net $ $ ) $ (Dollars in thousands) Gross Carrying Accumulated October 31, 2015 Amount Amortization Net Patents $ $ ) $ Non-compete agreements ) Customer-related ) Developed technology ) Trade names ) Other ) — Total amortizable ) Non-amortizable - trade names — Total other intangible assets, net $ $ ) $ Amortization expense for intangible assets during the first nine months of fiscal 201 6 was $ 8.1 million , compared to $ 10.0 million for the same period last fiscal year. Estimated amortization expense for the remainder of fiscal 201 6 and succeeding fiscal years is as follows: fiscal 2016 (remainder), $ 2.5 million; fiscal 2017, $ 9.5 million; fiscal 2018, $ 7.4 million; fiscal 2019, $ 6.6 million; fiscal 2020, $ 6.0 million; fiscal 202 1 , $ 5.6 million; and after fiscal 202 1 , $ 68.7 million. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Jul. 29, 2016 | |
Stockholders' Equity | |
Stockholders' Equity | Note 6 — Stockholders’ Equity Accumulated Other Comprehensive Loss Components of accumulated other comprehensive loss (“AOCL”), net of tax, are as follows: July 29, July 31, October 31, (Dollars in thousands) 2016 2015 2015 Foreign currency translation adjustments $ $ $ Pension and post-retirement benefits Derivative instruments Total accumulated other comprehensive loss $ $ $ The components and activity of AOCL for the first nine months of fiscal 2016 are as follows: (Dollars in thousands) Foreign Currency Translation Adjustments Pension and Postretirement Benefits Cash Flow Derivative Instruments Total Balance as of October 31, 2015 $ $ $ $ Other comprehensive loss (income) before reclassifications ) Amounts reclassified from AOCL — — ) ) Net current period other comprehensive loss (income) ) Balance as of July 29, 2016 $ $ $ $ The components and activity of AOCL for the first nine months of fiscal 2015 are as follows: (Dollars in thousands) Foreign Currency Translation Adjustments Pension and Postretirement Benefits Cash Flow Derivative Instruments Total Balance as of October 31, 2014 $ $ $ ) $ Other comprehensive loss (income) before reclassifications ) ) Amounts reclassified from AOCL — — Net current period other comprehensive loss (income) ) Balance as of July 31, 2015 $ $ $ $ |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Jul. 29, 2016 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 7 — Stock-Based Compensation Stock Option Awards Under The Toro Company Amended and Restated 2010 Equity and Incentive Plan, as amended (the “2010 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 executive 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 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 executive officers and other employees are subject to accelerated expensing if the option holder meets the retirement definition set forth in the 2010 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 awards vest immediately upon retirement, and therefore, the fair value of the options granted is fully expensed on the date of the grant. 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 executive 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 assumptions for options granted in the following fiscal periods: Fiscal 2016 Fiscal 2015 Expected life of option in years 5.97 5.94 Expected stock price volatility 24.04% 29.67% Risk-free interest rate 1.80% 1.61% Expected dividend yield 1.24% 1.29% Grant date per share weighted-average fair value $17.58 $16.81 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 and businesses 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 per share fair value of performance share awards granted during the first quarter of each of fiscal 2016 and 2015 was $77.77 and $65.68, respectively. No performance share awards were granted during the second or third quarters of fiscal 2016 or 2015. Restricted Stock and Restricted Stock Unit Awards Under the 2010 plan, restricted stock and restricted stock unit awards are generally granted to certain employees that are not executive officers. Occasionally, restricted stock or restricted stock unit awards may be granted, including to executive officers, in connection with hiring, mid-year promotions, leadership transition, or retention. 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 per share weighted-average fair value of restricted stock and restricted stock unit awards granted during the first nine months of fiscal 2016 and 2015 was $83.67 and $66.10, respectively. |
Per Share Data
Per Share Data | 9 Months Ended |
Jul. 29, 2016 | |
Per Share Data | |
Per Share Data | Note 8 — Per Share Data Reconciliations of basic and diluted weighted-average shares of common stock outstanding are as follows: Three Months Ended Nine Months Ended July 29, July 31, July 29, July 31, (Shares in thousands) 2016 2015 2016 2015 Basic Weighted-average number of shares of common stock Assumed issuance of contingent shares — — Weighted-average number of shares of common stock and assumed issuance of contingent shares Diluted Weighted-average number of shares of common stock and assumed issuance of contingent shares Effect of dilutive securities Weighted-average number of shares of common stock, assumed issuance of contingent shares, and effect of dilutive securities Incremental shares from options, restricted stock, and restricted stock units are computed by the treasury stock method. Options to purchase 16,768 and 157,299 shares of common stock during the third quarter of fiscal 2016 and 2015, respectively, were excluded from the diluted net earnings per share because they were anti-dilutive. For the year-to-date periods through the third quarter of fiscal 2016 and 2015, options to purchase 243,871 and 245,818 shares of common stock, respectively, were excluded from the diluted net earnings per share because they were anti-dilutive. |
Segment Data
Segment Data | 9 Months Ended |
Jul. 29, 2016 | |
Segment Data | |
Segment Data | Note 9 — Segment Data The presentation of segment information reflects the manner in which management organizes segments for making operating decisions and assessing performance. On this basis, the company has determined it has three reportable business segments: Professional, Residential, and Distribution. The Distribution segment, which consists of the company-owned domestic distributorship, has been combined with the company’s corporate activities and elimination of intersegment revenues and expenses that is shown as “Other” in the following tables due to the insignificance of the segment. The following table shows the summarized financial information concerning the company’s reportable segments: (Dollars in thousands) Three months ended July 29, 2016 Professional Residential Other Total Net sales $ $ $ $ Intersegment gross sales ) — Earnings (loss) before income taxes ) Three months ended July 31, 2015 Professional Residential Other Total Net sales $ $ $ $ Intersegment gross sales ) — Earnings (loss) before income taxes ) Nine months ended July 29, 2016 Professional Residential Other Total Net sales $ $ $ $ Intersegment gross sales ) — Earnings (loss) before income taxes ) Total assets Nine months ended July 31, 2015 Professional Residential Other Total Net sales $ $ $ $ Intersegment gross sales ) — Earnings (loss) before income taxes ) Total assets The following table summarizes the components of the loss before income taxes included in “Other” shown above: Three Months Ended Nine Months Ended July 29, July 31, July 29, July 31, (Dollars in thousands) 2016 2015 2016 2015 Corporate expenses $ ) $ ) $ ) $ ) Interest expense, net ) ) ) ) Other Total $ ) $ ) $ ) $ ) |
Contingencies - Litigation
Contingencies - Litigation | 9 Months Ended |
Jul. 29, 2016 | |
Contingencies - Litigation | |
Contingencies - Litigation | Note 10 — Contingencies — Litigation 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 is currently involved in patent litigation cases, including cases by or against competitors, where it is asserting and defending against claims of patent infringement. Such cases are at varying stages in the litigation process. 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. |
Warranty Guarantees
Warranty Guarantees | 9 Months Ended |
Jul. 29, 2016 | |
Warranty Guarantees | |
Warranty Guarantees | Note 11 — Warranty Guarantees The company’s products are warranted to ensure customer confidence in design, workmanship, and overall quality. Warranty coverage is for specified periods of time and on select products’ hours of usage, and generally covers parts, labor, and other expenses for non-maintenance repairs. Warranty coverage generally does not cover operator abuse or improper use. An authorized company distributor or dealer must perform warranty work. Distributors and dealers submit claims for warranty reimbursement and are credited for the cost of repairs, labor, and other expenses as long as the repairs meet prescribed standards. Warranty expense is accrued at the time of sale based 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, the historical length of time between the sale and resulting warranty claim, and other minor factors. Special warranty reserves are also accrued for major rework campaigns. The company sells extended warranty coverage on select products for a prescribed period after the factory warranty period expires. Warranty provisions, claims, and changes in estimates for the first nine months of fiscal 2016 and 2015 were as follows: Nine Months Ended July 29, July 31, (Dollars in thousands) 2016 2015 Beginning balance $ $ Warranty provisions Warranty claims ) ) Changes in estimates ) Ending balance $ $ |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Jul. 29, 2016 | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | Note 12 — 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 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 Renminbi, and the Romanian New Leu against the U.S. dollar, as well as the Romanian New Leu against the Euro. 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 , foreign plant operations, and purchases from suppliers. 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 statements 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 sheets, recognizing future changes in the fair value in other income, net. For the third quarter and year-to-date periods of fiscal 201 6 , there were immaterial losses on forward contracts reclassified into earnings as a result of the discontinuance of cash flow hedges . As of July 29 , 201 6 and July 3 1, 2015, the notional amount outstanding of forward contracts designated as cash flow hedges was $ 86 . 0 million and $10 2 .8 million, respectively. As of July 3 1, 2015, the company had one cross currency interest rate swap instrument outstanding for a fixed pay notional of 36 . 6 million Romanian New Leu and receive floating notional of 8 . 5 million Euros. During the third quarter of fiscal 2016, the company terminated its one cross currency interest rate swap instrument outstanding with gains on the instrument recorded in other income . 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. Fair Value at Fair Value at Fair Value at (Dollars in thousands) July 29, 2016 July 31, 2015 October 31, 2015 Asset Derivatives Derivatives Designated as Hedging Instruments Prepaid expenses and other current assets Forward currency contracts $ $ $ Cross currency contract — — — Derivatives Not Designated as Hedging Instruments Prepaid expenses and other current assets Forward currency contracts Cross currency contract — Total Assets $ $ $ Liability Derivatives Derivatives Designated as Hedging Instruments Accrued liabilities Forward currency contracts $ $ $ Cross currency contract — Derivatives Not Designated as Hedging Instruments Accrued liabilities Forward currency contracts Cross currency contract — — — Total Liabilities $ $ $ The following table presents the impact of derivative instruments on the consolidated statements of earnings for the company’s derivatives designated as cash flow hedging instruments for the three and nine months ended July 29 , 201 6 and July 3 1, 2015, respectively. Effective Portion Ineffective Portion and excluded from Effectiveness Testing Gain (Loss) Location of Gain (Loss) Location of Gain (Loss) Recognized in OCI on Reclassified from AOCL Gain (Loss) Reclassified Recognized in Income on Gain (Loss) Recognized Derivatives into Income from AOCL into Income Derivatives in Income on Derivatives (Dollars in thousands) July 29, July 31, July 29, July 31, July 29, July 31, For the three months ended 2016 2015 2016 2015 2016 2015 Forward currency contracts $ $ ) Net sales $ ) $ Other income, net $ ) $ Forward currency contracts ) ) Cost of sales ) ) Cross currency contracts — Other income, net — ) Total derivatives designated as cash flow hedges $ $ ) Total $ ) $ Total $ ) $ July 29, July 31, July 29, July 31, July 29, July 31, For the nine months ended 2016 2015 2016 2015 2016 2015 Forward currency contracts $ ) $ ) Net sales $ $ Other income, net $ $ Forward currency contracts ) ) Cost of sales ) ) Cross currency contracts Other income, net ) ) Total derivatives designated as cash flow hedges $ ) $ ) Total $ ) $ Total $ $ As of July 29 , 201 6 , the company expects to reclassify approximately $ 1 . 6 million of gains 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 Location of Gain Three Months Ended Nine Months Ended (Loss) Recognized in July 29, July 31, July 29, July 31, (Dollars in thousands) Net Earnings 2016 2015 2016 2015 Forward currency contracts Other income, net $ $ ) $ ) $ Cross currency contracts Other income, net ) ) Total derivatives not designated as hedges $ $ ) $ ) $ The company entered into an International Swap Dealers Association (“ISDA”) Master Agreement with each counterparty that permits the net settlement of amounts owed under their respective contracts. The ISDA Master Agreement is an industry standardized contract that governs all derivative contracts entered into between the company and the respective counterparty. 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. The following tables show the effects of the master netting arrangements on the fair value of the company’s derivative contracts that are recorded in the consolidated balance sheets: (Dollars in thousands) July 29, 2016 July 31, 2015 October 31, 2015 Assets Forward currency contracts Gross Amounts of Recognized Assets $ $ $ Gross Liabilities Offset in the Balance Sheets ) ) ) Net Amounts of Assets Presented in the Balance Sheets Cross currency contracts Gross Amounts of Recognized Assets — Gross Liabilities Offset in the Balance Sheets — — — Net Amounts of Assets Presented in the Balance Sheets — Total Assets $ $ $ Liabilities Forward currency contracts Gross Amounts of Recognized Liabilities $ ) $ ) $ ) Gross Assets Offset in the Balance Sheets — Net Amounts of Liabilities Presented in the Balance Sheets ) ) ) Cross currency contracts Gross Amounts of Recognized Liabilities — ) ) Gross Assets Offset in the Balance Sheets — — — Net Amounts of Liabilities Presented in the Balance Sheets — ) ) Total Liabilities $ ) $ ) $ ) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jul. 29, 2016 | |
Fair Value Measurements | |
Fair Value Measurements | Note 13 — Fair Value Measurements 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 July 29, 201 6 , July 3 1, 2015, and October 31, 2015 are summarized below: (Dollars in thousands) Fair Value Measurements Using Inputs Considered as: July 29, 2016 Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ $ $ — $ — Forward currency contracts — — Cross currency contracts — — — — Total Assets $ $ $ $ — Liabilities: Forward currency contracts $ $ — $ $ — Cross currency contracts — — — — Deferred compensation liabilities — — Total Liabilities $ $ — $ $ — (Dollars in thousands) Fair Value Measurements Using Inputs Considered as: July 31, 2015 Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ $ $ — $ — Forward currency contracts — — Cross currency contracts — — Total Assets $ $ $ $ — Liabilities: Forward currency contracts $ $ — $ $ — Cross currency contracts — — Deferred compensation liabilities — — Total Liabilities $ $ — $ $ — (Dollars in thousands) Fair Value Measurements Using Inputs Considered as: October 31, 2015 Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ $ $ — $ — Forward currency contracts — — Cross currency contracts — — Total Assets $ $ $ $ — Liabilities: Forward currency contracts $ $ — $ $ — Cross currency contracts — — Deferred compensation liabilities — — Total Liabilities $ $ — $ $ — There were no transfers between Level 1 and Level 2 during the three and nine months ended July 29 , 201 6 and July 31, 2015 , or the twelve months ended October 31, 201 5 . |
Related Party Transaction
Related Party Transaction | 9 Months Ended |
Jul. 29, 2016 | |
Related Party Transaction | |
Related Party Transaction | Note 14 — Related Party Transaction On November 14, 2014, during the first quarter of fiscal 2015, the company acquired substantially all of the assets (excluding accounts receivable) of the BOSS® professional snow and ice management business of privately held Northern Star Industries, Inc. The purchase price included a cash payment and issuance of an unsecured promissory note in the aggregate principal amount of $30 million. Under the terms of the note, interest will accrue at the rate of 4.0% per year and principal payments of $10 million each, together with accrued interest, will be payable on the first, second, and third anniversaries of the closing date of the acquisition, subject to certain conditions. Effective as of the closing of the acquisition on November 14, 2014 and through May 31, 2016 , the company employed David J. Brule II, who is also a minority shareholder of Northern Star Industries, Inc., as an executive officer of the company. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Jul. 29, 2016 | |
Subsequent Events | |
Subsequent Events | Note 15 — Subsequent Events On August 18, 2016, the Company’s Board of Directors declared a two-for-one split of the Company’s common stock, which will be effected in the form of a 100 percent stock dividend, and will be distributed September 16, 2016, to shareholders of record as of September 1, 2016 . The company evaluated all subsequent events and concluded that no additional subsequent events have occurred that would require recognition in the consolidated financial statements or disclosure in the notes to the consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jul. 29, 2016 | |
Inventories | |
Schedule of Inventories | July 29, July 31, October 31, (Dollars in thousands) 2016 2015 2015 Raw materials and work in process $ $ $ Finished goods and service parts Total FIFO value Less: adjustment to LIFO value Total inventories, net $ $ $ |
Disclosure - Goodwill and Other
Disclosure - Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Jul. 29, 2016 | |
Goodwill and Other Intangible Assets | |
Schedule of changes in net carrying amount of goodwill | Professional Residential (Dollars in thousands) Segment Segment Total Balance as of October 31, 2015 $ $ $ Translation adjustments ) ) ) Balance as of July 29, 2016 $ $ $ |
Schedule of components of other intangible assets | (Dollars in thousands) Gross Carrying Accumulated July 29, 2016 Amount Amortization Net Patents $ $ ) $ Non-compete agreements ) Customer-related ) Developed technology ) Trade names ) Other ) — Total amortizable ) Non-amortizable - trade names — Total other intangible assets, net $ $ ) $ (Dollars in thousands) Gross Carrying Accumulated October 31, 2015 Amount Amortization Net Patents $ $ ) $ Non-compete agreements ) Customer-related ) Developed technology ) Trade names ) Other ) — Total amortizable ) Non-amortizable - trade names — Total other intangible assets, net $ $ ) $ |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Jul. 29, 2016 | |
Stockholders' Equity | |
Schedule of components of accumulated other comprehensive loss (AOCL), net of tax | July 29, July 31, October 31, (Dollars in thousands) 2016 2015 2015 Foreign currency translation adjustments $ $ $ Pension and post-retirement benefits Derivative instruments Total accumulated other comprehensive loss $ $ $ |
Schedule of components and activity of AOCL | (Dollars in thousands) Foreign Currency Translation Adjustments Pension and Postretirement Benefits Cash Flow Derivative Instruments Total Balance as of October 31, 2015 $ $ $ $ Other comprehensive loss (income) before reclassifications ) Amounts reclassified from AOCL — — ) ) Net current period other comprehensive loss (income) ) Balance as of July 29, 2016 $ $ $ $ (Dollars in thousands) Foreign Currency Translation Adjustments Pension and Postretirement Benefits Cash Flow Derivative Instruments Total Balance as of October 31, 2014 $ $ $ ) $ Other comprehensive loss (income) before reclassifications ) ) Amounts reclassified from AOCL — — Net current period other comprehensive loss (income) ) Balance as of July 31, 2015 $ $ $ $ |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Jul. 29, 2016 | |
Stock-Based Compensation | |
Schedule of assumptions for options granted | Fiscal 2016 Fiscal 2015 Expected life of option in years 5.97 5.94 Expected stock price volatility 24.04% 29.67% Risk-free interest rate 1.80% 1.61% Expected dividend yield 1.24% 1.29% Grant date per share weighted-average fair value $17.58 $16.81 |
Per Share Data (Tables)
Per Share Data (Tables) | 9 Months Ended |
Jul. 29, 2016 | |
Per Share Data | |
Reconciliations of basic and diluted weighted-average shares of common stock outstanding | Three Months Ended Nine Months Ended July 29, July 31, July 29, July 31, (Shares in thousands) 2016 2015 2016 2015 Basic Weighted-average number of shares of common stock Assumed issuance of contingent shares — — Weighted-average number of shares of common stock and assumed issuance of contingent shares Diluted Weighted-average number of shares of common stock and assumed issuance of contingent shares Effect of dilutive securities Weighted-average number of shares of common stock, assumed issuance of contingent shares, and effect of dilutive securities |
Segment Data (Tables)
Segment Data (Tables) | 9 Months Ended |
Jul. 29, 2016 | |
Segment Data | |
Summarized financial information concerning reportable segments | (Dollars in thousands) Three months ended July 29, 2016 Professional Residential Other Total Net sales $ $ $ $ Intersegment gross sales ) — Earnings (loss) before income taxes ) Three months ended July 31, 2015 Professional Residential Other Total Net sales $ $ $ $ Intersegment gross sales ) — Earnings (loss) before income taxes ) Nine months ended July 29, 2016 Professional Residential Other Total Net sales $ $ $ $ Intersegment gross sales ) — Earnings (loss) before income taxes ) Total assets Nine months ended July 31, 2015 Professional Residential Other Total Net sales $ $ $ $ Intersegment gross sales ) — Earnings (loss) before income taxes ) Total assets |
Summary of components of loss before income taxes included in Other segment | Three Months Ended Nine Months Ended July 29, July 31, July 29, July 31, (Dollars in thousands) 2016 2015 2016 2015 Corporate expenses $ ) $ ) $ ) $ ) Interest expense, net ) ) ) ) Other Total $ ) $ ) $ ) $ ) |
Warranty Guarantees (Tables)
Warranty Guarantees (Tables) | 9 Months Ended |
Jul. 29, 2016 | |
Warranty Guarantees | |
Schedule of warranty provisions, claims, and changes in estimates | Nine Months Ended July 29, July 31, (Dollars in thousands) 2016 2015 Beginning balance $ $ Warranty provisions Warranty claims ) ) Changes in estimates ) Ending balance $ $ |
Derivative Instruments and He30
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Jul. 29, 2016 | |
Derivative Instruments and Hedging Activities | |
Schedule of fair value of derivatives and consolidated balance sheet location | Fair Value at Fair Value at Fair Value at (Dollars in thousands) July 29, 2016 July 31, 2015 October 31, 2015 Asset Derivatives Derivatives Designated as Hedging Instruments Prepaid expenses and other current assets Forward currency contracts $ $ $ Cross currency contract — — — Derivatives Not Designated as Hedging Instruments Prepaid expenses and other current assets Forward currency contracts Cross currency contract — Total Assets $ $ $ Liability Derivatives Derivatives Designated as Hedging Instruments Accrued liabilities Forward currency contracts $ $ $ Cross currency contract — Derivatives Not Designated as Hedging Instruments Accrued liabilities Forward currency contracts Cross currency contract — — — Total Liabilities $ $ $ |
Schedule of impact of derivative instruments on consolidated statements of earnings for derivatives designated as cash flow hedging instruments | Effective Portion Ineffective Portion and excluded from Effectiveness Testing Gain (Loss) Location of Gain (Loss) Location of Gain (Loss) Recognized in OCI on Reclassified from AOCL Gain (Loss) Reclassified Recognized in Income on Gain (Loss) Recognized Derivatives into Income from AOCL into Income Derivatives in Income on Derivatives (Dollars in thousands) July 29, July 31, July 29, July 31, July 29, July 31, For the three months ended 2016 2015 2016 2015 2016 2015 Forward currency contracts $ $ ) Net sales $ ) $ Other income, net $ ) $ Forward currency contracts ) ) Cost of sales ) ) Cross currency contracts — Other income, net — ) Total derivatives designated as cash flow hedges $ $ ) Total $ ) $ Total $ ) $ July 29, July 31, July 29, July 31, July 29, July 31, For the nine months ended 2016 2015 2016 2015 2016 2015 Forward currency contracts $ ) $ ) Net sales $ $ Other income, net $ $ Forward currency contracts ) ) Cost of sales ) ) Cross currency contracts Other income, net ) ) Total derivatives designated as cash flow hedges $ ) $ ) Total $ ) $ Total $ $ |
Schedule of impact of derivative instruments on consolidated statements of earnings for derivatives not designated as hedging instruments | Gain (Loss) Recognized in Net Earnings Location of Gain Three Months Ended Nine Months Ended (Loss) Recognized in July 29, July 31, July 29, July 31, (Dollars in thousands) Net Earnings 2016 2015 2016 2015 Forward currency contracts Other income, net $ $ ) $ ) $ Cross currency contracts Other income, net ) ) Total derivatives not designated as hedges $ $ ) $ ) $ |
Schedule of effects of master netting arrangements on fair value of derivative contracts recorded in consolidated balance sheets | (Dollars in thousands) July 29, 2016 July 31, 2015 October 31, 2015 Assets Forward currency contracts Gross Amounts of Recognized Assets $ $ $ Gross Liabilities Offset in the Balance Sheets ) ) ) Net Amounts of Assets Presented in the Balance Sheets Cross currency contracts Gross Amounts of Recognized Assets — Gross Liabilities Offset in the Balance Sheets — — — Net Amounts of Assets Presented in the Balance Sheets — Total Assets $ $ $ Liabilities Forward currency contracts Gross Amounts of Recognized Liabilities $ ) $ ) $ ) Gross Assets Offset in the Balance Sheets — Net Amounts of Liabilities Presented in the Balance Sheets ) ) ) Cross currency contracts Gross Amounts of Recognized Liabilities — ) ) Gross Assets Offset in the Balance Sheets — — — Net Amounts of Liabilities Presented in the Balance Sheets — ) ) Total Liabilities $ ) $ ) $ ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jul. 29, 2016 | |
Fair Value Measurements | |
Schedule of assets and liabilities measured at fair value on a recurring basis | (Dollars in thousands) Fair Value Measurements Using Inputs Considered as: July 29, 2016 Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ $ $ — $ — Forward currency contracts — — Cross currency contracts — — — — Total Assets $ $ $ $ — Liabilities: Forward currency contracts $ $ — $ $ — Cross currency contracts — — — — Deferred compensation liabilities — — Total Liabilities $ $ — $ $ — (Dollars in thousands) Fair Value Measurements Using Inputs Considered as: July 31, 2015 Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ $ $ — $ — Forward currency contracts — — Cross currency contracts — — Total Assets $ $ $ $ — Liabilities: Forward currency contracts $ $ — $ $ — Cross currency contracts — — Deferred compensation liabilities — — Total Liabilities $ $ — $ $ — (Dollars in thousands) Fair Value Measurements Using Inputs Considered as: October 31, 2015 Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ $ $ — $ — Forward currency contracts — — Cross currency contracts — — Total Assets $ $ $ $ — Liabilities: Forward currency contracts $ $ — $ $ — Cross currency contracts — — Deferred compensation liabilities — — Total Liabilities $ $ — $ $ — |
Investment in Joint Venture (De
Investment in Joint Venture (Details) - USD ($) | 9 Months Ended | ||
Jul. 31, 2016 | Jul. 29, 2016 | Jul. 31, 2015 | |
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% | ||
Investment in joint venture | $ 22,700,000 | ||
Maximum aggregate amount of products repossessed by Red Iron and the TCFIF Canadian affiliate, entity has agreed to repurchase in a calendar year | 7,500,000 | ||
Net amount of new receivables financed for dealers and distributors | $ 1,389,500,000 | $ 1,117,700,000 | |
Summarized financial information for Red Iron | |||
Total assets | 447,000,000 | ||
Total liabilities | $ 396,500,000 | ||
Red Iron Acceptance, LLC | TCFIF secured revolving credit facility | |||
Schedule of Equity Method Investments | |||
Maximum borrowing capacity under credit facility | $ 450,000,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jul. 29, 2016 | Oct. 31, 2015 | Jul. 31, 2015 |
Inventories | |||
Raw materials and work in process | $ 88,581 | $ 107,086 | $ 102,580 |
Finished goods and service parts | 302,573 | 291,468 | 315,110 |
Total FIFO value | 391,154 | 398,554 | 417,690 |
Less: adjustment to LIFO value | 64,040 | 64,040 | 67,496 |
Total inventories, net | $ 327,114 | $ 334,514 | $ 350,194 |
Goodwill and Other Intangible34
Goodwill and Other Intangible Assets - Changes in Net Carrying Amount of Goodwill (Details) $ in Thousands | 9 Months Ended |
Jul. 29, 2016USD ($) | |
Changes in the net carrying amount of goodwill | |
Goodwill as of the beginning of the fiscal period | $ 195,533 |
Translation adjustments | (517) |
Goodwill as of the end of the fiscal period | 195,016 |
Professional | |
Changes in the net carrying amount of goodwill | |
Goodwill as of the beginning of the fiscal period | 184,766 |
Translation adjustments | (296) |
Goodwill as of the end of the fiscal period | 184,470 |
Residential | |
Changes in the net carrying amount of goodwill | |
Goodwill as of the beginning of the fiscal period | 10,767 |
Translation adjustments | (221) |
Goodwill as of the end of the fiscal period | $ 10,546 |
Goodwill and Other Intangible35
Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jul. 29, 2016 | Jul. 31, 2015 | Oct. 31, 2015 | |
Other Intangible Assets | |||
Gross Carrying Amount | $ 164,689 | $ 165,031 | |
Accumulated Amortization | (58,346) | (50,852) | |
Net | 106,343 | 114,179 | |
Non-amortizable - trade names | 4,442 | 4,831 | |
Total other intangible assets, gross | 169,131 | 169,862 | |
Total other intangible assets, net | 110,785 | $ 121,804 | 119,010 |
Amortization expense for intangible assets | 8,100 | $ 10,000 | |
Estimated amortization expense | |||
Fiscal 2016 (remainder) | 2,500 | ||
Fiscal 2,017 | 9,500 | ||
Fiscal 2,018 | 7,400 | ||
Fiscal 2,019 | 6,600 | ||
Fiscal 2,020 | 6,000 | ||
Fiscal 2,021 | 5,600 | ||
After 2,021 | 68,700 | ||
Patents | |||
Other Intangible Assets | |||
Gross Carrying Amount | 15,159 | 15,191 | |
Accumulated Amortization | (10,692) | (10,175) | |
Net | 4,467 | 5,016 | |
Non-compete agreements | |||
Other Intangible Assets | |||
Gross Carrying Amount | 6,894 | 6,922 | |
Accumulated Amortization | (6,588) | (6,206) | |
Net | 306 | 716 | |
Customer-related | |||
Other Intangible Assets | |||
Gross Carrying Amount | 84,427 | 84,599 | |
Accumulated Amortization | (13,448) | (10,316) | |
Net | 70,979 | 74,283 | |
Developed technology | |||
Other Intangible Assets | |||
Gross Carrying Amount | 28,694 | 28,804 | |
Accumulated Amortization | (22,923) | (20,530) | |
Net | 5,771 | 8,274 | |
Trade names | |||
Other Intangible Assets | |||
Gross Carrying Amount | 28,715 | 28,715 | |
Accumulated Amortization | (3,895) | (2,825) | |
Net | 24,820 | 25,890 | |
Other | |||
Other Intangible Assets | |||
Gross Carrying Amount | 800 | 800 | |
Accumulated Amortization | $ (800) | $ (800) |
Stockholders' Equity - Componen
Stockholders' Equity - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Jul. 29, 2016 | Oct. 31, 2015 | Jul. 31, 2015 |
Accumulated other comprehensive loss (AOCL) | |||
Foreign currency translation adjustments | $ 29,636 | $ 24,328 | $ 23,255 |
Pension and post-retirement benefits | 4,881 | 5,386 | 5,195 |
Derivative instruments | 2,054 | 129 | 297 |
Total accumulated other comprehensive loss | $ 36,571 | $ 29,843 | $ 28,747 |
Stockholders' Equity - Compon37
Stockholders' Equity - Components and Activity of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | |
Components and activity of accumulated other comprehensive loss | ||||
Balance as of the beginning of the fiscal period | $ (462,165) | |||
Net current period other comprehensive loss (income) | $ 5,086 | $ 4,589 | 6,728 | $ 13,042 |
Balance as of the end of the fiscal period | (577,850) | (465,173) | (577,850) | (465,173) |
Accumulated Other Comprehensive Loss | ||||
Components and activity of accumulated other comprehensive loss | ||||
Balance as of the beginning of the fiscal period | 29,843 | 15,705 | ||
Other comprehensive loss before reclassifications | 6,943 | 3,954 | ||
Amounts reclassified from AOCL | (215) | 9,088 | ||
Net current period other comprehensive loss (income) | 6,728 | 13,042 | ||
Balance as of the end of the fiscal period | 36,571 | 28,747 | 36,571 | 28,747 |
Foreign Currency Translation Adjustments | ||||
Components and activity of accumulated other comprehensive loss | ||||
Balance as of the beginning of the fiscal period | 24,328 | 12,536 | ||
Other comprehensive loss before reclassifications | 5,308 | 10,719 | ||
Net current period other comprehensive loss (income) | 5,308 | 10,719 | ||
Balance as of the end of the fiscal period | 29,636 | 23,255 | 29,636 | 23,255 |
Pension and Postretirement Benefits | ||||
Components and activity of accumulated other comprehensive loss | ||||
Balance as of the beginning of the fiscal period | 5,386 | 5,266 | ||
Other comprehensive loss before reclassifications | (505) | (71) | ||
Net current period other comprehensive loss (income) | (505) | (71) | ||
Balance as of the end of the fiscal period | 4,881 | 5,195 | 4,881 | 5,195 |
Cash Flow Derivative Instruments | ||||
Components and activity of accumulated other comprehensive loss | ||||
Balance as of the beginning of the fiscal period | 129 | (2,097) | ||
Other comprehensive loss before reclassifications | 2,140 | (6,694) | ||
Amounts reclassified from AOCL | (215) | 9,088 | ||
Net current period other comprehensive loss (income) | 1,925 | 2,394 | ||
Balance as of the end of the fiscal period | $ 2,054 | $ 297 | $ 2,054 | $ 297 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Awards (Details) - $ / shares | 9 Months Ended | |
Jul. 29, 2016 | Jul. 31, 2015 | |
Employee Stock Option Awards | Executive officers | ||
Stock-Based Compensation | ||
Frequency of grants | On an annual basis in the first quarter of the company's fiscal year | |
Term of award | 10 years | |
Employee Stock Option Awards | Executive officers | Graded vesting | ||
Stock-Based Compensation | ||
Vesting (as a percent) | 33.333% | |
Award vesting period | 3 years | |
Employee 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 | |
Term of award | 10 years | |
Employee Stock Option Awards | Other employees | Graded vesting | ||
Stock-Based Compensation | ||
Vesting (as a percent) | 33.333% | |
Award vesting period | 3 years | |
Employee Stock Option Awards | Certain employees | ||
Stock-Based Compensation | ||
Term of award | 10 years | |
Employee Stock Option Awards | Certain employees | Cliff vesting | ||
Stock-Based Compensation | ||
Award vesting period | 3 years | |
Stock Option Awards | ||
Assumptions for options granted | ||
Expected life of option | 5 years 11 months 19 days | 5 years 11 months 9 days |
Expected stock price volatility (as a percent) | 24.04% | 29.67% |
Risk-free interest rate (as a percent) | 1.80% | 1.61% |
Expected dividend yield (as a percent) | 1.24% | 1.29% |
Grant date per share weighted average fair value (in dollars per share) | $ 17.58 | $ 16.81 |
Stock Option Awards | Non-employee members of Board of Directors | ||
Stock-Based Compensation | ||
Frequency of grants | On an annual basis in the first quarter of the company's fiscal year | |
Term of award | 10 years | |
Requisite service period for non-employee director after which fair value of options granted is fully expensed on the date of grant | 10 years | |
Stock Option Awards | Non-employee members of Board of Directors | Graded vesting | ||
Stock-Based Compensation | ||
Vesting (as a percent) | 33.333% | |
Award vesting period | 3 years |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Share Awards and Restricted Stock and Restricted Stock Unit Awards (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Jul. 29, 2016 | Apr. 29, 2016 | Jan. 29, 2016 | Jul. 31, 2015 | May 01, 2015 | Jan. 30, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | |
Performance Share Awards | ||||||||
Stock-Based Compensation | ||||||||
Frequency of grants | On an annual basis in the first quarter of the company's fiscal year | |||||||
Performance goal period | 3 years | |||||||
Award vesting period | 3 years | |||||||
Unvested awards | ||||||||
Granted (in shares) | 0 | 0 | 0 | 0 | ||||
Weighted-Average Fair Value at Date of Grant | ||||||||
Granted (in dollars per share) | $ 77.77 | $ 65.68 | ||||||
Performance Share Awards | Maximum | ||||||||
Stock-Based Compensation | ||||||||
Vesting (as a percent) | 200.00% | |||||||
Performance Share Awards | Minimum | ||||||||
Stock-Based Compensation | ||||||||
Vesting (as a percent) | 0.00% | |||||||
Restricted Stock and Restricted Stock Unit Awards | ||||||||
Weighted-Average Fair Value at Date of Grant | ||||||||
Granted (in dollars per share) | $ 83.67 | $ 66.10 | ||||||
Restricted Stock and Restricted Stock Unit Awards | Graded vesting | ||||||||
Stock-Based Compensation | ||||||||
Vesting (as a percent) | 33.333% | |||||||
Award vesting period | 3 years | |||||||
Restricted Stock and Restricted Stock Unit Awards | Cliff vesting | ||||||||
Stock-Based Compensation | ||||||||
Award vesting period | 3 years |
Per Share Data (Details)
Per Share Data (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | |
Basic | ||||
Weighted-average number of shares of common stock | 54,983,000 | 55,310,000 | 54,955,000 | 55,724,000 |
Assumed issuance of contingent shares | 18,000 | 15,000 | ||
Weighted-average number of shares of common stock and assumed issuance of contingent shares | 54,983,000 | 55,310,000 | 54,973,000 | 55,739,000 |
Diluted | ||||
Weighted-average number of shares of common stock and assumed issuance of contingent shares | 54,983,000 | 55,310,000 | 54,973,000 | 55,739,000 |
Effect of dilutive securities (in shares) | 1,073,000 | 1,242,000 | 1,104,000 | 1,214,000 |
Weighted-average number of shares of common stock, assumed issuance of contingent shares, and effect of dilutive securities | 56,056,000 | 56,552,000 | 56,077,000 | 56,953,000 |
Options, restricted stock, and restricted stock units, excluded from the diluted earnings per share | 16,768 | 157,299 | 243,871 | 245,818 |
Segment Data - Summarized Finan
Segment Data - Summarized Financial Information of Reportable Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 29, 2016USD ($) | Jul. 31, 2015USD ($) | Jul. 29, 2016USD ($)segment | Jul. 31, 2015USD ($) | Oct. 31, 2015USD ($) | |
Financial information concerning reportable segments | |||||
Number of reportable business segments | segment | 3 | ||||
Net sales | $ 600,980 | $ 609,615 | $ 1,923,819 | $ 1,910,068 | |
Earnings (loss) before income taxes | 80,787 | 77,616 | 288,726 | 255,726 | |
Total assets | 1,467,462 | 1,359,951 | 1,467,462 | 1,359,951 | $ 1,303,658 |
Professional | |||||
Financial information concerning reportable segments | |||||
Net sales | 427,784 | 421,994 | 1,361,829 | 1,314,474 | |
Earnings (loss) before income taxes | 89,096 | 82,253 | 292,311 | 258,727 | |
Total assets | 803,414 | 846,400 | 803,414 | 846,400 | |
Residential | |||||
Financial information concerning reportable segments | |||||
Net sales | 167,815 | 175,977 | 550,330 | 578,587 | |
Earnings (loss) before income taxes | 12,767 | 20,566 | 64,494 | 69,131 | |
Total assets | 215,509 | 226,835 | 215,509 | 226,835 | |
Other | |||||
Financial information concerning reportable segments | |||||
Net sales | 5,381 | 11,644 | 11,660 | 17,007 | |
Earnings (loss) before income taxes | (21,076) | (25,203) | (68,079) | (72,132) | |
Total assets | 448,539 | 286,716 | 448,539 | 286,716 | |
Intersegment | Professional | |||||
Financial information concerning reportable segments | |||||
Gross sales | 6,134 | 10,365 | 24,100 | 38,651 | |
Intersegment | Residential | |||||
Financial information concerning reportable segments | |||||
Gross sales | 92 | 222 | 289 | 410 | |
Intersegment | Other | |||||
Financial information concerning reportable segments | |||||
Gross sales | $ (6,226) | $ (10,587) | $ (24,389) | $ (39,061) |
Segment Data - Components of Lo
Segment Data - Components of Loss before Income Taxes Included in Other (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | |
Components of the loss before income taxes included in "Other" | ||||
Interest expense, net | $ (4,646) | $ (4,587) | $ (14,021) | $ (14,071) |
Other income, net | 3,480 | 2,798 | 11,865 | 7,515 |
Earnings before income taxes | 80,787 | 77,616 | 288,726 | 255,726 |
Other | ||||
Components of the loss before income taxes included in "Other" | ||||
Corporate expenses | (19,872) | (26,989) | (68,270) | (68,434) |
Interest expense, net | (4,646) | (4,587) | (14,021) | (14,071) |
Other income, net | 3,442 | 6,373 | 14,212 | 10,373 |
Earnings before income taxes | $ (21,076) | $ (25,203) | $ (68,079) | $ (72,132) |
Warranty Guarantees (Details)
Warranty Guarantees (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 29, 2016 | Jul. 31, 2015 | |
Warranty provisions, claims, and changes in estimates | ||
Beginning balance | $ 70,734 | $ 71,080 |
Warranty provisions | 36,673 | 34,532 |
Warranty claims | (28,596) | (26,728) |
Changes in estimates | 2,602 | (221) |
Ending balance | $ 81,413 | $ 78,663 |
Derivative Instruments and He44
Derivative Instruments and Hedging Activities - General, Notional Amount and Fair Value (Details) $ in Thousands, € in Millions, RON in Millions | 3 Months Ended | 9 Months Ended | ||||
Jul. 29, 2016USD ($)instrument | Jul. 29, 2016USD ($) | Oct. 31, 2015USD ($) | Jul. 31, 2015USD ($)instrument | Jul. 31, 2015RONinstrument | Jul. 31, 2015EUR (€)instrument | |
Fair value of derivatives | ||||||
Maximum time limit for cash flow hedge | 2 years | |||||
Asset Derivatives | $ 646 | $ 646 | $ 5,309 | $ 7,799 | ||
Liability Derivatives | 2,472 | 2,472 | 1,845 | 2,231 | ||
Forward currency contracts | ||||||
Fair value of derivatives | ||||||
Asset Derivatives | 646 | 646 | 3,173 | 5,620 | ||
Liability Derivatives | 2,472 | 2,472 | 1,711 | 1,988 | ||
Forward currency contracts | Derivatives Designated as Hedging Instruments | ||||||
Fair value of derivatives | ||||||
Notional amount | 86,000 | 86,000 | 102,800 | |||
Forward currency contracts | Derivatives Designated as Hedging Instruments | Prepaid expenses and other current assets | ||||||
Fair value of derivatives | ||||||
Asset Derivatives | 114 | 114 | 2,102 | 2,957 | ||
Forward currency contracts | Derivatives Designated as Hedging Instruments | Accrued liabilities | ||||||
Fair value of derivatives | ||||||
Liability Derivatives | 2,070 | 2,070 | 1,363 | 1,986 | ||
Forward currency contracts | Derivatives Not Designated as Hedging Instruments | Prepaid expenses and other current assets | ||||||
Fair value of derivatives | ||||||
Asset Derivatives | 532 | 532 | 1,071 | 2,663 | ||
Forward currency contracts | Derivatives Not Designated as Hedging Instruments | Accrued liabilities | ||||||
Fair value of derivatives | ||||||
Liability Derivatives | $ 402 | $ 402 | 348 | 2 | ||
Cross currency contracts | ||||||
Fair value of derivatives | ||||||
Asset Derivatives | 2,136 | 2,179 | ||||
Liability Derivatives | 134 | $ 243 | ||||
Cross currency contracts | Derivatives Designated as Hedging Instruments | ||||||
Fair value of derivatives | ||||||
Number of derivative contracts held | instrument | 1 | 1 | 1 | |||
Notional amount | RON 36.6 | € 8.5 | ||||
Number of derivative contracts terminated | instrument | 1 | |||||
Cross currency contracts | Derivatives Designated as Hedging Instruments | Accrued liabilities | ||||||
Fair value of derivatives | ||||||
Liability Derivatives | 134 | $ 243 | ||||
Cross currency contracts | Derivatives Not Designated as Hedging Instruments | Prepaid expenses and other current assets | ||||||
Fair value of derivatives | ||||||
Asset Derivatives | $ 2,136 | $ 2,179 |
Derivative Instruments and He45
Derivative Instruments and Hedging Activities - Impact on Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 29, 2016 | Jul. 31, 2015 | Jul. 29, 2016 | Jul. 31, 2015 | |
Derivative Instruments and Hedging Activities | ||||
Expected reclassification of gains from AOCL to earnings during the next twelve months | $ 1,600 | |||
Derivatives Not Designated as Hedging Instruments | ||||
Derivative Instruments and Hedging Activities | ||||
Gain (Loss) Recognized in Net Earnings | $ 780 | $ (2,752) | (744) | $ 9,900 |
Forward currency contracts | Derivatives Not Designated as Hedging Instruments | Other income, net | ||||
Derivative Instruments and Hedging Activities | ||||
Gain (Loss) Recognized in Net Earnings | 788 | (2,891) | (553) | 8,459 |
Cross currency contracts | Derivatives Not Designated as Hedging Instruments | Other income, net | ||||
Derivative Instruments and Hedging Activities | ||||
Gain (Loss) Recognized in Net Earnings | (8) | 139 | (191) | 1,441 |
Cash flow hedging | ||||
Derivative Instruments and Hedging Activities | ||||
Gain (Loss) Recognized in OCI on Derivatives, Effective Portion | 666 | (1,056) | (1,929) | (2,398) |
Gain (Loss) Reclassified from AOCL into Income Effective Portion | (1,123) | 2,356 | (215) | 9,088 |
Gain (Loss) Recognized in Income on Derivatives Ineffective Portion and Excluded from Effectiveness Testing | (69) | 280 | 162 | 563 |
Cash flow hedging | Forward currency contracts | Net sales | ||||
Derivative Instruments and Hedging Activities | ||||
Gain (Loss) Recognized in OCI on Derivatives, Effective Portion | 983 | (654) | (1,647) | (950) |
Gain (Loss) Reclassified from AOCL into Income Effective Portion | (192) | 3,258 | 1,809 | 11,188 |
Cash flow hedging | Forward currency contracts | Cost of sales | ||||
Derivative Instruments and Hedging Activities | ||||
Gain (Loss) Recognized in OCI on Derivatives, Effective Portion | (317) | (433) | (537) | (1,615) |
Gain (Loss) Reclassified from AOCL into Income Effective Portion | (931) | (817) | (1,930) | (1,808) |
Cash flow hedging | Forward currency contracts | Other income, net | ||||
Derivative Instruments and Hedging Activities | ||||
Gain (Loss) Recognized in Income on Derivatives Ineffective Portion and Excluded from Effectiveness Testing | $ (69) | 280 | 162 | 563 |
Cash flow hedging | Cross currency contracts | Other income, net | ||||
Derivative Instruments and Hedging Activities | ||||
Gain (Loss) Recognized in OCI on Derivatives, Effective Portion | 31 | 255 | 167 | |
Gain (Loss) Reclassified from AOCL into Income Effective Portion | $ (85) | $ (94) | $ (292) |
Derivative Instruments and He46
Derivative Instruments and Hedging Activities - Effects of Master Netting Arrangements (Details) - USD ($) $ in Thousands | Jul. 29, 2016 | Oct. 31, 2015 | Jul. 31, 2015 |
Assets | |||
Net Amounts of Assets Presented in the Balance Sheets | $ 646 | $ 5,309 | $ 7,799 |
Liabilities | |||
Net Amounts of Liabilities Presented in the Balance Sheets | (2,472) | (1,845) | (2,231) |
Forward currency contracts | |||
Assets | |||
Gross Amounts of Recognized Assets | 885 | 3,380 | 5,855 |
Gross Liabilities Offset in the Balance Sheets | (239) | (207) | (235) |
Net Amounts of Assets Presented in the Balance Sheets | 646 | 3,173 | 5,620 |
Liabilities | |||
Gross Amounts of Recognized Liabilities | (2,475) | (1,711) | (2,220) |
Gross Assets Offset in the Balance Sheets | 3 | 232 | |
Net Amounts of Liabilities Presented in the Balance Sheets | $ (2,472) | (1,711) | (1,988) |
Cross currency contracts | |||
Assets | |||
Gross Amounts of Recognized Assets | 2,136 | 2,179 | |
Net Amounts of Assets Presented in the Balance Sheets | 2,136 | 2,179 | |
Liabilities | |||
Gross Amounts of Recognized Liabilities | (134) | (243) | |
Net Amounts of Liabilities Presented in the Balance Sheets | $ (134) | $ (243) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jul. 29, 2016 | Oct. 31, 2015 | Jul. 31, 2015 |
Assets: | |||
Derivative assets | $ 646 | $ 5,309 | $ 7,799 |
Liabilities: | |||
Derivative liabilities | 2,472 | 1,845 | 2,231 |
Transfer of assets from level 1 to level 2 | 0 | 0 | 0 |
Transfer of assets from level 2 to level 1 | 0 | 0 | 0 |
Transfer of liabilities from level 1 to level 2 | 0 | 0 | 0 |
Transfer of liabilities from level 2 to level 1 | 0 | 0 | 0 |
Forward currency contracts | |||
Assets: | |||
Derivative assets | 646 | 3,173 | 5,620 |
Liabilities: | |||
Derivative liabilities | 2,472 | 1,711 | 1,988 |
Cross currency contracts | |||
Assets: | |||
Derivative assets | 2,136 | 2,179 | |
Liabilities: | |||
Derivative liabilities | 134 | 243 | |
Measured on a recurring basis | |||
Assets: | |||
Cash and cash equivalents | 277,243 | 126,275 | 110,335 |
Total assets | 277,889 | 131,584 | 118,134 |
Liabilities: | |||
Deferred compensation liabilities | 1,275 | 1,652 | 1,775 |
Total liabilities | 3,747 | 3,497 | 4,006 |
Measured on a recurring basis | Forward currency contracts | |||
Assets: | |||
Derivative assets | 646 | 3,173 | 5,620 |
Liabilities: | |||
Derivative liabilities | 2,472 | 1,711 | 1,988 |
Measured on a recurring basis | Cross currency contracts | |||
Assets: | |||
Derivative assets | 2,136 | 2,179 | |
Liabilities: | |||
Derivative liabilities | 134 | 243 | |
Measured on a recurring basis | Level 1 | |||
Assets: | |||
Cash and cash equivalents | 277,243 | 126,275 | 110,335 |
Total assets | 277,243 | 126,275 | 110,335 |
Measured on a recurring basis | Level 2 | |||
Assets: | |||
Total assets | 646 | 5,309 | 7,799 |
Liabilities: | |||
Deferred compensation liabilities | 1,275 | 1,652 | 1,775 |
Total liabilities | 3,747 | 3,497 | 4,006 |
Measured on a recurring basis | Level 2 | Forward currency contracts | |||
Assets: | |||
Derivative assets | 646 | 3,173 | 5,620 |
Liabilities: | |||
Derivative liabilities | $ 2,472 | 1,711 | 1,988 |
Measured on a recurring basis | Level 2 | Cross currency contracts | |||
Assets: | |||
Derivative assets | 2,136 | 2,179 | |
Liabilities: | |||
Derivative liabilities | $ 134 | $ 243 |
Related Party Transaction (Deta
Related Party Transaction (Details) - 4% Unsecured Note, due November14, 2017 | Nov. 14, 2014USD ($) |
Debt | |
Aggregate principal amount of notes issued | $ 30,000,000 |
Interest rate percentage | 4.00% |
Principal payment on each anniversary date | $ 10,000,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent event - Common Stock | Aug. 18, 2016 | Sep. 16, 2016 |
Subsequent event disclosures | ||
Stock split, conversion ratio | 2 | |
Expected | ||
Subsequent event disclosures | ||
Percentage of common stock dividend to be distributed as a result of stock split | 100.00% |