Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Jul. 31, 2016 | Sep. 30, 2016 | Jan. 31, 2016 | |
Entity Information [Line Items] | |||
Entity Registrant Name | OIL DRI CORP OF AMERICA | ||
Entity Central Index Key | 74,046 | ||
Current Fiscal Year End Date | --07-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jul. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 184,774,000 | ||
Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 5,071,613 | ||
Common Class B | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 2,188,771 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jul. 31, 2016 | Jul. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 18,629,000 | $ 20,138,000 |
Short-term investments | 10,184,000 | 2,190,000 |
Accounts receivable, less allowance of $753 and $761 in 2016 and 2015, respectively | 30,386,000 | 31,466,000 |
Inventories | 23,251,000 | 21,369,000 |
Deferred income taxes | 3,884,000 | 2,468,000 |
Prepaid repairs expense | 3,938,000 | 3,813,000 |
Prepaid expenses and other assets | 901,000 | 1,199,000 |
Total Current Assets | 91,173,000 | 82,643,000 |
Property, Plant and Equipment | ||
Buildings and leasehold improvements | 36,776,000 | 28,518,000 |
Machinery and equipment | 137,479,000 | 127,399,000 |
Office furniture and equipment | 10,986,000 | 10,689,000 |
Vehicles | 13,108,000 | 12,330,000 |
Gross depreciable assets | 198,349,000 | 178,936,000 |
Less accumulated depreciation and amortization | (137,314,000) | (129,929,000) |
Net depreciable assets | 61,035,000 | 49,007,000 |
Construction in progress | 2,831,000 | 14,188,000 |
Land and mineral rights | 16,845,000 | 16,460,000 |
Total Property, Plant and Equipment, Net | 80,711,000 | 79,655,000 |
Other Assets | ||
Goodwill | 9,034,000 | 9,034,000 |
Trademarks and patents, net of accumulated amortization of $261 and $301 in 2016 and 2015, respectively | 916,000 | 818,000 |
Debt issuance costs, net of accumulated amortization of $161 and $133 in 2016 and 2015, respectively | 118,000 | 146,000 |
Customer list, net of accumulated amortization of $3,460 and $2,094 in 2016 and 2015, respectively | 4,325,000 | 5,691,000 |
Deferred income taxes | 12,754,000 | 6,031,000 |
Other | 5,902,000 | 6,013,000 |
Total Other Assets | 33,049,000 | 27,733,000 |
Total Assets | 204,933,000 | 190,031,000 |
Current Liabilities | ||
Current maturities of notes payable | 3,083,000 | 3,483,000 |
Accounts payable | 6,635,000 | 7,428,000 |
Dividends payable | 1,477,000 | 1,376,000 |
Accrued expenses | ||
Salaries, wages and commissions | 8,656,000 | 6,245,000 |
Trade promotions and advertising | 2,855,000 | 2,721,000 |
Freight | 1,579,000 | 1,874,000 |
Other | 6,455,000 | 5,761,000 |
Total Current Liabilities | 30,740,000 | 28,888,000 |
Noncurrent Liabilities | ||
Notes payable | 12,333,000 | 15,417,000 |
Deferred compensation | 10,504,000 | 9,518,000 |
Pension and postretirement benefits | 32,492,000 | 23,429,000 |
Other | 3,313,000 | 2,251,000 |
Total Noncurrent Liabilities | 58,642,000 | 50,615,000 |
Total Liabilities | 89,382,000 | 79,503,000 |
Stockholders’ Equity | ||
Additional paid-in capital | 34,294,000 | 32,632,000 |
Retained earnings | 149,945,000 | 142,095,000 |
Accumulated Other Comprehensive Loss | ||
Pension and postretirement benefits | (13,867,000) | (8,975,000) |
Cumulative translation adjustment | (155,000) | (270,000) |
Total Accumulated Other Comprehensive Loss | (14,022,000) | (9,245,000) |
Less Treasury Stock, at cost (2,912,953 Common and 324,741 Class B shares in 2016 and 2,932,796 Common and 324,741 Class B shares in 2015) | (55,716,000) | (55,987,000) |
Total Stockholders' Equity | 115,551,000 | 110,528,000 |
Total Liabilities and Stockholders’ Equity | 204,933,000 | 190,031,000 |
Common Stock | ||
Stockholders’ Equity | ||
Common Stock, par value $.10 | 798,000 | 794,000 |
Common Class B | ||
Stockholders’ Equity | ||
Common Stock, par value $.10 | $ 252,000 | $ 239,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet Parentheticals (Parentheticals) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Allowance for doubtful accounts | $ 753 | $ 761 |
Trademarks and patents accumulated amortization | 261 | 301 |
Debt issuance costs accumulated amortization | 161 | 133 |
Customer list accumulated amortization | $ 3,460 | $ 2,094 |
Common Stock, par value per share | $ 0.10 | $ 0.10 |
Common Stock | ||
Common Stock, par value per share | $ 0.10 | $ 0.10 |
Common Stock, shares issued | 7,982,243 | 7,936,343 |
Treasury Stock, shares | 2,912,953 | 2,932,796 |
Common Class B | ||
Common Stock, par value per share | $ 0.10 | $ 0.10 |
Common Stock, shares issued | 2,515,735 | 2,389,735 |
Treasury Stock, shares | 324,741 | 324,741 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Net Sales | $ 262,313 | $ 261,402 | $ 266,313 |
Cost of Sales | (185,164) | (201,245) | (206,663) |
Gross Profit | 77,149 | 60,157 | 59,650 |
Selling, General and Administrative Expenses | (61,736) | (45,004) | (47,232) |
Income from Operations | 15,413 | 15,153 | 12,418 |
Other Income (Expense) | |||
Interest income | 29 | 13 | 23 |
Interest expense | (1,035) | (1,327) | (1,569) |
Foreign exchange (loss) gain | (384) | (349) | 35 |
Other, net | 334 | 679 | 430 |
Total Other Expense, Net | (1,056) | (984) | (1,081) |
Income Before Income Taxes | 14,357 | 14,169 | 11,337 |
Income Taxes | (744) | (2,801) | (2,981) |
Net income | $ 13,613 | $ 11,368 | $ 8,356 |
Net Income Per Share | |||
Diluted Common | $ 1.87 | $ 1.59 | $ 1.17 |
Average Shares Outstanding | |||
Diluted Common (in shares) | 7,094 | 7,037 | 7,004 |
Basic Common | |||
Net Income Per Share | |||
Basic | $ 2.04 | $ 1.73 | $ 1.27 |
Average Shares Outstanding | |||
Basic (in shares) | 4,986 | 4,955 | 4,981 |
Basic Class B Common | |||
Net Income Per Share | |||
Basic | $ 1.53 | $ 1.30 | $ 0.96 |
Average Shares Outstanding | |||
Basic (in shares) | 2,050 | 2,019 | 2,001 |
Consolidate Statements of Compr
Consolidate Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Net Income | $ 13,613 | $ 11,368 | $ 8,356 |
Unrealized (loss) gain on marketable securities | 0 | (114) | 28 |
Pension and postretirement benefits (net of tax) | (4,892) | (343) | (3,024) |
Cumulative translation adjustment | 115 | (525) | (232) |
Other Comprehensive Loss | (4,777) | (982) | (3,228) |
Comprehensive Income | $ 8,836 | $ 10,386 | $ 5,128 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders Equity Statement - USD ($) $ in Thousands | Total | Common & Class B Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss |
Total, Beginning of Period at Jul. 31, 2013 | $ 102,938 | $ 1,026 | $ 29,493 | $ 132,750 | $ (55,296) | $ (5,035) |
Common & Class B Stock, Beginning of Period (in shares) at Jul. 31, 2013 | 10,261,047 | |||||
Treasury Stock, Beginning of Period (in shares) at Jul. 31, 2013 | (3,239,308) | |||||
Net Income | 8,356 | $ 0 | 0 | 8,356 | $ 0 | 0 |
Other Comprehensive Loss | (3,228) | 0 | 0 | 0 | 0 | (3,228) |
Dividends Declared | (5,040) | 0 | 0 | (5,040) | 0 | 0 |
Purchases of Treasury Stock | (87) | 0 | 0 | 0 | $ (87) | 0 |
Purchases of Treasury Stock (in shares) | (2,584) | |||||
Net Issuance of Stock Under Long-Term Incentive Plans | 94 | $ 5 | 137 | (27) | $ (21) | 0 |
Net Issuance of Stock Under Long-Term Incentive Plans (in shares) | 51,081 | 1,500 | ||||
Share-based Compensation | 86 | $ 0 | 86 | 0 | $ 0 | 0 |
Amortization of Restricted Stock | 1,189 | 0 | 1,189 | 0 | 0 | 0 |
Total, End of Period at Jul. 31, 2014 | 104,308 | $ 1,031 | 30,905 | 136,039 | $ (55,404) | (8,263) |
Common & Class B Stock, End of Period (in shares) at Jul. 31, 2014 | 10,312,128 | |||||
Treasury Stock, End of Period (in shares) at Jul. 31, 2014 | (3,240,392) | |||||
Net Income | 11,368 | $ 0 | 0 | 11,368 | $ 0 | 0 |
Other Comprehensive Loss | (982) | 0 | 0 | 0 | 0 | (982) |
Dividends Declared | (5,312) | 0 | 0 | (5,312) | 0 | 0 |
Purchases of Treasury Stock | (122) | 0 | 0 | 0 | $ (122) | 0 |
Purchases of Treasury Stock (in shares) | (3,645) | |||||
Net Issuance of Stock Under Long-Term Incentive Plans | 49 | $ 2 | 508 | 0 | $ (461) | 0 |
Net Issuance of Stock Under Long-Term Incentive Plans (in shares) | 13,950 | (13,500) | ||||
Share-based Compensation | 77 | $ 0 | 77 | 0 | $ 0 | 0 |
Amortization of Restricted Stock | 1,142 | 0 | 1,142 | 0 | 0 | 0 |
Total, End of Period at Jul. 31, 2015 | 110,528 | $ 1,033 | 32,632 | 142,095 | $ (55,987) | (9,245) |
Common & Class B Stock, End of Period (in shares) at Jul. 31, 2015 | 10,326,078 | |||||
Treasury Stock, End of Period (in shares) at Jul. 31, 2015 | (3,257,537) | |||||
Net Income | 13,613 | $ 0 | 0 | 13,613 | $ 0 | 0 |
Other Comprehensive Loss | (4,777) | 0 | 0 | 0 | 0 | (4,777) |
Dividends Declared | (5,701) | 0 | 0 | (5,701) | 0 | 0 |
Purchases of Treasury Stock | (18) | 0 | 0 | 0 | $ (18) | 0 |
Purchases of Treasury Stock (in shares) | (607) | |||||
Net Issuance of Stock Under Long-Term Incentive Plans | 465 | $ 17 | 221 | (62) | $ 289 | 0 |
Net Issuance of Stock Under Long-Term Incentive Plans (in shares) | 171,900 | 20,450 | ||||
Share-based Compensation | 194 | $ 0 | 194 | 0 | $ 0 | 0 |
Amortization of Restricted Stock | 1,247 | 0 | 1,247 | 0 | 0 | 0 |
Total, End of Period at Jul. 31, 2016 | $ 115,551 | $ 1,050 | $ 34,294 | $ 149,945 | $ (55,716) | $ (14,022) |
Common & Class B Stock, End of Period (in shares) at Jul. 31, 2016 | 10,497,978 | |||||
Treasury Stock, End of Period (in shares) at Jul. 31, 2016 | (3,237,694) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Cash Flows from Operating Activities | |||
Net Income | $ 13,613 | $ 11,368 | $ 8,356 |
Adjustments to reconcile net income to net cash provided by operating activites: | |||
Depreciation and amortization | 12,192 | 11,994 | 10,396 |
Amortization of investment discounts | (10) | (1) | (2) |
Non-cash stock compensation expense | 1,247 | 1,142 | 1,189 |
Excess tax benefits for share-based payments | (194) | (77) | (86) |
Deferred income taxes | (8,114) | (2,450) | 284 |
Provision for bad debts and cash discounts | 50 | 177 | 69 |
Loss on the sale of property, plant and equipment | 331 | 191 | 452 |
Gain on sale of marketable securities | 0 | (105) | 0 |
Life insurance benefits | 0 | (117) | 0 |
(Increase) decrease in: | |||
Accounts receivable | 942 | (646) | 82 |
Inventories | (1,954) | 3,114 | (2,966) |
Prepaid expenses | 167 | 2,455 | (1,988) |
Other assets | (3) | (1,287) | (817) |
Increase (decrease) in: | |||
Accounts payable | (931) | 571 | 187 |
Accrued expenses | 2,746 | (697) | (2,586) |
Deferred compensation | 986 | 251 | 698 |
Pension and postretirement benefits | 4,171 | 814 | 2,887 |
Other liabilities | (68) | 279 | 141 |
Total Adjustments | 11,558 | 15,608 | 7,940 |
Net Cash Provided by Operating Activities | 25,171 | 26,976 | 16,296 |
Cash Flows from Investing Activities | |||
Capital expenditures | (10,684) | (15,859) | (18,566) |
Proceeds from sale of property, plant and equipment | 261 | 22 | 180 |
Acquisition of business | 0 | 0 | (12,876) |
Restricted cash | 0 | 129 | (129) |
Purchases of short-term investments | (45,198) | (2,890) | (10,391) |
Dispositions of short-term investments | 37,214 | 3,341 | 26,212 |
Proceeds from sale of marketable securities | 0 | 108 | 0 |
Proceeds from life insurance | 0 | 903 | 0 |
Net Cash Used in Investing Activities | (18,407) | (14,246) | (15,570) |
Cash Flows from Financing Activities | |||
Principal payments on notes payable | (3,484) | (3,500) | (3,500) |
Dividends paid | (5,600) | (5,247) | (4,965) |
Purchase of treasury stock | (18) | (122) | (87) |
Proceeds from issuance of treasury stock | 370 | 0 | 82 |
Proceeds from issuance of common stock | 96 | 49 | 12 |
Excess tax benefits for share-based payments | 194 | 77 | 86 |
Net Cash Used in Financing Activities | (8,442) | (8,743) | (8,372) |
Effect of exchange rate changes on cash and cash equivalents | 169 | (79) | (159) |
Net (Decrease) Increase in Cash and Cash Equivalents | (1,509) | 3,908 | (7,805) |
Cash and Cash Equivalents, Beginning of Year | 20,138 | 16,230 | 24,035 |
Cash and Cash Equivalents, End of Year | 18,629 | 20,138 | 16,230 |
Cash paid for: | |||
Interest, net of amounts capitalized | 622 | 826 | 1,078 |
Income taxes | 6,693 | 2,339 | 3,022 |
Noncash investing and financing activities: | |||
Capital expenditures accrued, but not paid | 761 | 223 | 712 |
Cash dividends declared and accrued, but not paid | $ 1,477 | $ 1,376 | $ 1,311 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Summary Of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES N ATURE OF O PERATIONS We are a leader in developing, manufacturing and/or marketing sorbent products. Our sorbent products are principally produced from clay minerals. Our absorbent clay products include cat litter, industrial floor absorbents, agricultural chemical carriers and enterosorbents used in animal feed. Our adsorbent products include synthetic sorbents, which are used for industrial cleanup, and bleaching clay products, which are used for filtration of edible oils and for purification of petroleum-based oils. P RINCIPLES OF C ONSOLIDATION The Consolidated Financial Statements include the accounts of Oil-Dri Corporation of America and its subsidiaries, all of which are wholly-owned. All significant intercompany balances and transactions have been eliminated from the Consolidated Financial Statements. M ANAGEMENT U SE OF E STIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. For more information see Critical Accounting Policies and Estimates in Item 7 “ Managements Discussion and Analysis of Financial Condition and Results of Operations. ” C ASH AND C ASH E QUIVALENTS Cash equivalents are highly liquid investments with maturities of three months or less. S HORT - TERM I NVESTMENTS The table below shows the composition of short-term investments as of July 31 (in thousands): 2016 2015 U.S. Treasury securities $ 5,998 $ — Certificates of deposit 4,186 2,190 Short-term investments $ 10,184 $ 2,190 Short-term investments have maturities of one year or less. We intend and have the ability to hold these investments to maturity; therefore, these investments are reported at amortized cost. T RADE R ECEIVABLES We recognize trade receivables when the risk of loss and title pass to the customer. We record an allowance for doubtful accounts based on our historical experience and a periodic review of our accounts receivable, including a review of the overall aging of accounts, consideration of customer credit risk and analysis of facts and circumstances about specific accounts. A customer account is determined to be uncollectible when it is probable that a loss will be incurred after we have completed our internal collection procedures, including termination of shipments, direct customer contact and formal demand of payment. We retain outside collection agencies to facilitate our collection efforts. Past due status is determined based on contractual terms and customer payment history. I NVENTORIES We value inventories at the lower of cost (first-in, first-out) or market. We recorded inventory obsolescence reserves of approximately $806,000 and $521,000 as of July 31, 2016 and 2015 , respectively. The composition of inventories was as follows as of July 31 (in thousands): 2016 2015 Finished goods $ 14,032 $ 12,117 Packaging 4,672 4,735 Other 4,547 4,517 Inventories $ 23,251 $ 21,369 T RANSLATION OF F OREIGN C URRENCIES Assets and liabilities of foreign subsidiaries, where the local currency is the functional currency, are translated to U.S. Dollars at the exchange rates in effect at period end. Income statement items are translated at the average exchange rate on a monthly basis. Resulting translation adjustments are recorded as a separate component of stockholders’ equity. I NTANGIBLE A SSETS AND G OODWILL We amortize most of our intangible assets on a straight-line basis over periods ranging from ten to 20 years. Our customer list intangible asset, related to the acquisition of certain assets of MFM, is amortized at an accelerated amortization rate in the earlier years to reflect the expected pattern of decline in the related benefits over time. Intangible amortization was $1,410,000 in fiscal year 2016 and $1,642,000 in fiscal year 2015 . We have some intangible assets that were determined to have indefinite lives and are not amortized, specifically one acquired trademark recorded at $376,000 . Our estimated intangible amortization expense for the next five fiscal years is as follows (in thousands): 2017 $ 1,212 2018 $ 1,003 2019 $ 816 2020 $ 646 2021 $ 462 The weighted average amortization period of our intangible assets subject to amortization is as follows (in years): Weighted Average Amortization Period Trademarks and patents 11.5 Debt issuance costs 4.1 Customer list 7.3 Total intangible assets subject to amortization 7.3 We periodically review indefinite-lived intangibles and goodwill to assess for impairment. Our review is based on cash flow considerations and other approaches that require significant judgment with respect to volume, revenue, expenses and allocations. Impairment occurs when the carrying value exceeds the fair value. Much of our goodwill cannot be specifically assigned to one of our operating segments because of the shared nature of our production facilities; however, for purposes of our most recent impairment analysis we estimated the goodwill allocation and assigned $5,775,000 to the Retail and Wholesale Products Group and $3,259,000 to the Business to Business Products Group. Our impairment analysis has historically been performed in the first quarter of the fiscal year; however, beginning in fiscal year 2016 we performed, and going forward we will perform, our annual impairment testing in the fourth quarter of our fiscal year. We will continue to consider the need to re-perform impairment testing throughout the year when indicators such as unexpected adverse economic factors, unanticipated technological changes, competitive activities and acts by governments and courts indicate that an asset may become impaired. We believe the change in impairment testing date is not a material change to our method of applying an accounting principle. There has been no impairment from this analysis for fiscal years 2016 , 2015 or 2014 . O VERBURDEN R EMOVAL AND M INING C OSTS We mine sorbent materials on property that we either own or lease as part of our overall operations. A significant part of our overall mining cost is incurred during the process of removing the overburden from the mine site, thus exposing the sorbent material used in a majority of our production processes. These stripping costs are treated as a variable inventory production cost and are included in cost of sales in the period they are incurred. Stripping costs included in cost of sales were approximately $3,020,000 , $2,939,000 , and $4,179,000 for fiscal years 2016 , 2015 and 2014 , respectively. We defer and amortize the pre-production overburden removal costs associated with opening a new mine. No pre-production overburden removal costs were deferred in the last two fiscal years. Additionally, it is our policy to capitalize the purchase cost of land and mineral rights, including associated legal fees, survey fees and real estate fees. The costs of obtaining mineral rights, including legal fees and drilling expenses, are also capitalized. The amount of land and mineral rights included in land on the Consolidated Balance Sheets were approximately $13,659,000 and $2,165,000 , respectively, as of July 31, 2016 and $13,285,000 and $2,165,000 , respectively, as of July 31, 2015 . Pre-production development costs on new mines and any prepaid royalties that may be offset against future royalties due upon extraction of the mineral are also capitalized. No capitalized pre-production development costs were recorded in fiscal years 2016 and 2015. Prepaid royalties included in current prepaid expenses and in non-current other assets on the Consolidated Balance Sheets were approximately $1,103,000 and $1,068,000 as of July 31, 2016 and 2015 , respectively. R ECLAMATION We perform ongoing reclamation activities during the normal course of our overburden removal. As overburden is removed from a mine site, it is hauled to previously mined sites and is used to refill older sites. This process allows us to continuously reclaim older mine sites and dispose of overburden simultaneously, therefore minimizing the costs associated with the reclamation process. On an annual basis we evaluate our potential reclamation liability in accordance with ASC 410, Asset Retirement and Environmental Obligations. The reclamation assets are depreciated over the estimated useful lives of the various mines. The reclamation liabilities are increased based on a yearly accretion charge over the estimated useful lives of the mines. P ROPERTY , P LANT AND E QUIPMENT Property, plant and equipment are generally depreciated using the straight-line method over their estimated useful lives which are listed below. Depreciation expense was $10,782,000 , $10,352,000 and $9,289,000 in fiscal years 2016 , 2015 and 2014 , respectively. Major improvements and betterments are capitalized, while maintenance and repairs that do not extend the useful life of the applicable assets are expensed as incurred. Interest expense may also be capitalized for assets that require a period of time to get them ready for their intended use. Capitalized interest in fiscal year 2016 was $72,000 . There was no significant capitalized interest in fiscal years 2015 and 2014 . Years Buildings and leasehold improvements 3 - 39 Machinery and equipment Packaging 2 - 20 Processing 2 - 25 Mining and other 3 - 15 Office furniture and equipment 2 - 12 Vehicles 3 - 15 Property, plant and equipment are carried at cost on the Consolidated Balance Sheets and are reviewed for possible impairment on an annual basis. We take into consideration idle and underutilized equipment and review business plans for possible impairment. When impairment is indicated, an impairment charge is recorded for the difference between the carrying value of the asset and its fair market value. There was no impairment recorded in any of fiscal years 2016 , 2015 or 2014 . T RADE P ROMOTIONS We routinely commit to one-time or ongoing trade promotion programs, primarily in our Retail and Wholesale Products Group. All such costs are netted against sales. We have accrued liabilities at the end of each period for the estimated expenses incurred but not yet paid for these programs. Promotional reserves are provided for sales incentives made directly to consumers, such as coupons, and sales incentives made to customers, such as slotting, discounts based on sales volume, cooperative marketing programs and other arrangements. We use judgment for estimates to determine our trade spending liabilities. We rely on our historical experience of trade spending patterns and that of the industry, current trends and forecast data. A DVERTISING Advertising costs for the development of printed materials, television commercials, web-based digital banners, web-based social media and sales videos are deferred and expensed upon the first use of the materials, unless such amounts are immaterial. Costs paid for communicating advertising over a period of time, such as television air time, radio commercials and print media advertising space, are deferred and expensed on a pro-rata basis. All other advertising costs, including participation in industry conventions and shows and market research, are expensed when incurred. All advertising costs are part of selling, general and administrative expenses. Advertising expenses were approximately $18,083,000 , $5,154,000 , and $8,886,000 in fiscal years 2016 , 2015 and 2014 , respectively. Advertising expense was significantly higher in fiscal year 2016 due to an integrated marketing campaign launched in March 2016 to promote our Cat's Pride Fresh & Light Ultimate Care lightweight cat litter. F AIR V ALUE OF F INANCIAL I NSTRUMENTS Non-derivative financial instruments included in the Consolidated Balance Sheets are cash and cash equivalents, short-term investments and notes payable. These instruments, except for notes payable, were carried at amounts approximating fair value as of July 31, 2016 and 2015 . Short-term investments were certificates of deposits and treasury securities. We intend and have the ability to hold our short-term investments to maturity; therefore, these investments were reported at amortized cost on the Consolidated Balance Sheets, which approximated fair value. See Note 5 of the Notes to the Consolidated Financial Statements for additional information regarding the fair value of our financial instruments, including notes payable. R EVENUE R ECOGNITION We recognize revenue when risk of loss and title are transferred under the terms of our sales agreements with customers at a fixed and determinable price and collection of payment is probable. Taxes collected from customers and remitted to governmental authorities are excluded from net sales. Sales returns and allowances are not material. C OST OF S ALES Cost of sales consists of all manufacturing costs, including depreciation and amortization related to assets used in the manufacturing and distribution process, inbound and outbound freight, inspection costs, purchasing costs associated with materials and packaging used in the production process and warehouse and distribution costs. S HIPPING AND H ANDLING C OSTS Shipping and handling costs are included in cost of sales and were approximately $41,301,000 , $46,292,000 and $49,456,000 for fiscal years 2016 , 2015 and 2014 , respectively. S ELLING , G ENERAL AND A DMINISTRATIVE E XPENSES Selling, general and administrative expenses include salaries, wages and benefits associated with staff outside the manufacturing and distribution functions, all marketing related costs, any miscellaneous trade spending expenses not required to be included in net sales, research and development costs, depreciation and amortization related to assets outside the manufacturing and distribution process and all other non-manufacturing and non-distribution expenses. R ESEARCH AND D EVELOPMENT Research and development costs of approximately $3,025,000 , $2,809,000 and $2,587,000 were charged to expense as incurred for fiscal years 2016 , 2015 and 2014 , respectively. P ENSION AND P OSTRETIREMENT B ENEFIT C OSTS We provide a defined benefit pension plan for eligible salaried and hourly employees and we make contributions to fund the plan. We also provide a postretirement health benefit plan to domestic salaried employees who qualify under the plan’s provisions. The postretirement health benefit plan is unfunded. Our pension and postretirement health benefit plans are accounted for using actuarial valuations required by ASC 715, Compensation – Retirement Benefits . The funded status of our defined pension and postretirement health benefit plans are recognized on the Consolidated Balance Sheets. Changes in the funded status that arise during the period but are not recognized as components of net periodic benefit cost are recognized within other comprehensive income, net of income tax. See Note 9 of the Notes to the Consolidated Financial Statements for additional information. S TOCK -B ASED C OMPENSATION We account for stock options and restricted stock issued under our long term incentive plans in accordance with ASC 718, Compensation – Stock Compensation . The fair value of stock-based compensation is determined at the grant date. The related compensation expense is recognized over the appropriate vesting period. See Note 8 of the Notes to the Consolidated Financial Statements for additional information. I NCOME TAXES Deferred income tax assets and liabilities are recorded for the impact of temporary differences between the tax basis of assets and liabilities and the amounts recognized for financial reporting purposes. Deferred tax assets are reviewed and a valuation allowance is established if management believes that it is more likely than not that some portion of our deferred tax assets will not be realized. Changes in valuation allowances from period to period are included in the tax provision in the period of change. In addition to existing valuation allowances, we provide for uncertain tax positions, if necessary, when such tax positions do not meet the recognition thresholds or measurement standards prescribed by ASC 740, Income Taxes . Amounts for uncertain tax positions are adjusted when new information becomes available or when positions are effectively settled. We recognize interest and penalties accrued related to uncertain tax positions in income tax (benefit) expense. U.S. income tax expense and foreign withholding taxes are provided on remittances of foreign earnings and on unremitted foreign earnings that are not indefinitely reinvested. Where unremitted foreign earnings are indefinitely reinvested, no provision for federal or state tax expense is recorded. When circumstances change and we determine that some or all of the undistributed earnings will be remitted in the foreseeable future, a corresponding expense is accrued in the current period. See Note 6 of the Notes to the Consolidated Financial Statements for additional information about income taxes. N EW A CCOUNTING P RONOUNCEMENTS Recently Issued Accounting Standards In May 2014, the FASB issued guidance under ASC 606, Revenue from Contract with Customers , which establishes a single comprehensive revenue recognition model for all contracts with customers and will supersede most existing revenue guidance. This guidance requires entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to receive in exchange. In March, April and May of 2016, the FASB issued amended guidance that further clarifies the principles for recognizing revenue. Transition options include either a full or modified retrospective approach and early adoption is permitted. The implementation date for this guidance was deferred and will now be effective at the beginning of our first quarter of fiscal year 2019. While we are still in the process of evaluating the financial statement impact of the adoption of this requirement, it is not currently expected to have a material impact on our Consolidated Financial Statements based on the types of products we sell and our arrangements with customers. In August 2014, the FASB issued guidance under ASC 205, Presentation of Financial Statements - Going Concern , which defines management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. We plan to adopt this guidance in the first quarter of fiscal year 2017. This pronouncement requires additional disclosures only and we do not expect a significant impact on our consolidated financial statements. In April 2015, the FASB issued guidance under ASC 835, Simplifying the Presentation of Debt Issuance Cost. Under this amendment, entities will no longer be able to recognize debt issuance costs as an asset in the balance sheet, but instead will be required to present debt issuance costs as a direct deduction from the carrying amount of the associated debt liability. The recognition and measurement guidance for debt issuance costs are not affected by this pronouncement. We expect to reclassify for the first quarter of our fiscal year 2017 approximately $ 110,000 from Debt issuance costs to a direct deduction of Notes payable on the unaudited balance sheet as of October 31, 2016 that will be included in our quarterly report on Form 10-Q. Prior periods presented will also be restated accordingly. In July 2015, the FASB issued guidance under ASC 330, Simplifying the Measurement of Inventory. The new guidance requires inventory to be measured at the lower of cost and net realizable value, which is defined as the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. This new guidance is effective for our first quarter of fiscal year 2018 and early adoption is permitted. The guidance must be applied prospectively. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. In November 2015, the FASB issued guidance under ASC 740, Balance Sheet Classification of Deferred Taxes, which requires deferred tax liabilities and assets to be classified as noncurrent in a classified statement of financial position. This guidance is effective for our first quarter of fiscal year 2018 and early adoption is permitted. The guidance may be applied either prospectively or retrospectively to all periods presented. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements, but we do not expect a significant impact on our Consolidated Financial Statements. In January 2016, the FASB issued guidance under ASC 825, Recognition and Measurement of Financial Assets and Financial Liabilities. This guidance addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The provisions relevant to us at this time require the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes, as well as eliminates the requirement to disclose the method and significant assumptions used to estimate the fair value in such disclosure. This guidance is effective for our first quarter of fiscal year 2019 and early adoption is generally not permitted. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. In February 2016, the FASB issued guidance under ASC 842, Leases , which provides that, for leases with a term greater than 12 months, a lessee must recognize in the statement of financial position both a liability to make lease payments and an asset representing its right to use the underlying asset. Other requirements describe expense recognition, as well as financial statement presentation and disclosure. This guidance is effective for our first quarter of fiscal year 2020 using a modified retrospective approach, which includes a number of optional practical expedients. Early adoption is permitted. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. In March 2016, the FASB issued guidance under ASC 718, Compensation-Stock Compensation, which simplifies several aspects of the accounting for share-based payment transactions, including accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. The new guidance also clarifies the statement of cash flows presentation for certain components of share-based awards. This guidance is effective for our first quarter of fiscal year 2018, with early adoption permitted. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. In June 2016, the FASB issued guidance under ASC 326, Financial Instruments-Credit Losses , which requires companies to utilize an impairment model for most financial assets measured at amortized cost and certain other financial instruments, which include trade and other receivables, loans and held-to-maturity debt securities, to record an allowance for credit risk based on expected losses rather than incurred losses. In addition, this new guidance changes the recognition method for credit losses on available-for-sale debt securities, which can occur as a result of market and credit risk, as well as additional disclosures. In general, this guidance will require modified retrospective adoption for all outstanding instruments that fall under this guidance. This guidance is effective for our first quarter of fiscal year 2021. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. There have been no other accounting pronouncements issued but not yet adopted by us which are expected to have a material impact on our Consolidated Financial Statements. |
ACQUISITION (Notes)
ACQUISITION (Notes) | 12 Months Ended |
Jul. 31, 2016 | |
Acquisition [Abstract] | |
Acquisition | ACQUISITION On November 1, 2013, for $ 12,505,000 in cash we acquired certain assets of MFM, a company engaged in the manufacturing, marketing and distribution of primarily private label cat litter. This transaction qualified as a business combination for accounting purposes, therefore the assets acquired were recorded at their respective estimated fair values at the date of acquisition. The purchase price was allocated to: goodwill, all of which is related to our Retail and Wholesale Products Group segment and is deductible for tax purposes ($ 3,872,000 ); customer list intangible asset ($ 7,784,000 ); inventories ($ 664,000 ); equipment ($ 300,000 ); and other current assets ($ 130,000 ). We also recorded a contingent liability of $ 500,000 for the amount deposited in an escrow account, which represented our maximum obligation for expenses to prepare and sell the real property retained by MFM. In addition, we recorded a contingent receivable of $ 255,000 , which represented the estimated amount we would receive upon the sale of the real property retained by MFM. During fiscal year 2015, we recorded net expense of $ 113,000 upon settlement of both the contingent liability and receivable. This expense is included in selling, general and administrative expenses on the Consolidated Statements of Operations for fiscal year 2015. The summarized proforma financial information below presents the combined results of operations as if the acquisition of MFM had occurred as of August 1, 2012. MFM’s pre-acquisition results have been added to Oil-Dri’s historical results and include certain adjustments related to the acquisition, such as amortization of intangible assets and depreciation expense. These proforma results do not include any anticipated cost synergies and do not reflect the actual results of operations that would have been achieved, nor are they indicative of future results of operations. The following proforma results are presented for comparative purposes only for the twelve months ended July 31, 2014 (unaudited) (in thousands, except per share amounts): 2014 Proforma net sales $ 271,279 Proforma net income $ 7,834 Proforma net income per share - Basic Common $ 1.19 Proforma net income per share - Basic Class B $ 0.90 Proforma net income per share - Diluted $ 1.11 |
OPERATING SEGMENTS Level 1 (Not
OPERATING SEGMENTS Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2016 | |
OPERATING SEGMENTS [Abstract] | |
Operating Segments | OPERATING SEGMENTS We have two reportable operating segments: (1) Retail and Wholesale Products Group and (2) Business to Business Products Group. These operating segments are managed separately and each segment's major customers have different characteristics. The Retail and Wholesale Products Group customers include mass merchandisers, wholesale clubs, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores, distributors of industrial cleanup and automotive products, environmental service companies and sports field product users. The Business to Business Products Group customers include: processors and refiners of edible oils, petroleum-based oils and biodiesel fuel; manufacturers of animal feed and agricultural chemicals; distributors of animal health and nutrition products; and marketers of consumer products. Net sales and operating income for each segment are provided below. Revenues by product line are not provided because it would be impracticable to do so. The accounting policies of the segments are the same as those described in the Note 1 of the Notes to the Consolidated Financial Statements. We do not rely on any operating segment asset allocations and we do not consider them meaningful because of the shared nature of our production facilities; however, we have estimated the segment asset allocations below for those assets for which we can reasonably determine. The unallocated asset category is the remainder of our total assets. The asset allocation is estimated and is not a measure used by our chief operating decision maker about allocating resources to the operating segments or in assessing their performance. The corporate expenses line represents certain unallocated expenses, including primarily salaries, wages and benefits, purchased services, rent, utilities and depreciation and amortization associated with corporate functions such as research and development, information systems, finance, legal, human resources and customer service. Corporate expenses also include the annual incentive plan bonus accrual. July 31, Assets 2016 2015 2014 (in thousands) Business to Business Products $ 61,007 $ 55,767 $ 53,823 Retail and Wholesale Products 91,626 96,043 95,712 Unallocated assets 52,300 38,221 36,669 Total Assets $ 204,933 $ 190,031 $ 186,204 Year Ended July 31, Net Sales Income 2016 2015 2014 2016 2015 2014 (in thousands) Business to Business Products $ 96,444 $ 92,326 $ 94,286 $ 33,464 $ 29,406 $ 26,654 Retail and Wholesale Products 165,869 169,076 172,027 5,009 5,206 3,568 Total sales $ 262,313 $ 261,402 $ 266,313 Corporate expenses (23,060 ) (19,459 ) (17,804 ) Income from operations 15,413 15,153 12,418 Total other expense, net (1,056 ) (984 ) (1,081 ) Income before income taxes 14,357 14,169 11,337 Income taxes (744 ) (2,801 ) (2,981 ) Net income $ 13,613 $ 11,368 $ 8,356 The following is a summary by fiscal year of financial information by geographic region (in thousands): 2016 2015 2014 Sales to unaffiliated customers by: Domestic operations $ 251,054 $ 250,377 $ 255,067 Foreign subsidiaries $ 11,259 $ 11,025 $ 11,246 Sales or transfers between geographic areas: Domestic operations $ 5,723 $ 5,606 $ 4,285 Income (Loss) before income taxes: Domestic operations $ 15,129 $ 15,389 $ 12,209 Foreign subsidiaries $ (772 ) $ (1,220 ) $ (872 ) Net Income (Loss): Domestic operations $ 14,574 $ 12,629 $ 9,064 Foreign subsidiaries $ (961 ) $ (1,261 ) $ (708 ) Identifiable assets: Domestic operations $ 197,636 $ 182,269 $ 178,061 Foreign subsidiaries $ 7,297 $ 7,762 $ 8,143 Sales to Walmart, our largest customer, are included in our Retail and Wholesale Products Group. The percentage of consolidated net sales and net accounts receivable attributed to Walmart are shown in the table below: 2016 2015 2014 Net sales for the years ended July 31 19% 18% 19% Net accounts receivable as of July 31 29% 27% 28% There are no other customers with sales equal to or greater than 10% of our total sales. |
NOTES PAYABLE Level 1 (Notes)
NOTES PAYABLE Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2016 | |
Notes Payable [Abstract] | |
Notes Payable | NOTES PAYABLE The composition of notes payable is as follows as of July 31 (in thousands): 2016 2015 Senior notes payable in annual principal installments on August 1: $3,083 in each fiscal year 2016 through 2021. Interest is payable semiannually at an annual rate of 3.96% $ 15,416 $ 18,500 Senior notes mature on October 15, 2015. Interest is payable semiannually at an annual rate of 5.89% — 400 Total notes payable 15,416 18,900 Less current maturities of notes payable (3,083 ) (3,483 ) Noncurrent notes payable $ 12,333 $ 15,417 We issued senior promissory notes in November 2010 for $18,500,000 and in December 2005 for $15,000,000 . All note agreements provided that the proceeds could be used to fund future principal payments on debt, acquisitions, stock repurchases, and capital expenditures and for working capital purposes. Both note agreements contain certain covenants that restrict our ability and the ability of certain of our subsidiaries to, among other things, (i) incur liens, (ii) incur indebtedness, (iii) merge or consolidate, (iv) sell assets, (v) sell stock of those certain subsidiaries, (vi) engage in business that would change the general nature of the business we are engaged in, and (vii) enter into transactions other than on “arm's length” terms with affiliates. The note agreements also require a minimum fixed coverage ratio and a minimum consolidated net worth to be maintained. On December 4, 2014 , we signed a fourth amendment to our credit agreement with BMO Harris, to extend the term to December 4, 2019 . The new agreement provides for a $25,000,000 unsecured revolving credit agreement, including a maximum of $5,000,000 for foreign letters of credit. The remaining terms are substantially unchanged from our previous agreement with BMO Harris, including the provision that we may select a variable rate based on either BMO Harris’ prime rate or a LIBOR-based rate, plus a margin which varies depending on our debt to earnings ratio, or a fixed rate as agreed between us and BMO Harris. At July 31, 2016 , the variable rates would have been 3.50% for the BMO Harris’ prime-based rate or 1.70% for the LIBOR-based rate. The credit agreement contains restrictive covenants that, among other things and under various conditions, limit our ability to incur additional indebtedness or to dispose of assets. The agreement also requires us to maintain a minimum fixed coverage ratio and a minimum consolidated net worth. As of July 31, 2016 and 2015 , there were no outstanding borrowings under this credit agreement. Our debt agreements also contain provisions such that if we default on one debt agreement, the others will automatically default. If we default on any guaranteed debt with a balance greater than $1,000,000 , our unsecured revolving credit agreement with BMO Harris will be considered in default. If we default on any debt with a balance greater than $5,000,000 we will also be considered in default with the senior promissory notes. We were in compliance with all restrictive covenants and limitations at July 31, 2016 . The following is a schedule by fiscal year of future maturities of notes payable as of July 31, 2016 (in thousands): 2017 $ 3,083 2018 3,084 2019 3,083 2020 3,083 2021 3,083 $ 15,416 |
FINANCIAL INSTRUMENTS Level 1 (
FINANCIAL INSTRUMENTS Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2016 | |
FAIR VALUE [Abstract] | |
Fair Value | FINANCIAL INSTRUMENTS Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs used to measure fair value are prioritized into one of three categories based on the lowest level of input that is significant to the fair value measurement. Categories in the hierarchy are as follows: Level 1: Financial assets and liabilities whose values are based on quoted market prices in active markets for identical assets or liabilities. Level 2: Financial assets and liabilities whose values are based on: 1) Quoted prices for similar assets or liabilities in active markets. 2) Quoted prices for identical or similar assets or liabilities in markets that are not active. 3) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability. Level 3: Financial assets and liabilities whose values are based on valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs may reflect estimates of the assumptions that market participants would use in valuing the financial assets and liabilities. The following table summarizes our financial assets and liabilities that were reported at fair value by level within the fair value hierarchy (in thousands): Fair Value at July 31, 2016 Fair Value at July 31, 2015 Level 1 Level 1 Assets Cash equivalents $ 7,626 $ 9,297 Cash equivalents are classified as Level 1 of the fair value hierarchy because they were valued using quoted market prices in active markets. These cash instruments are primarily money market funds. This amount is included in cash and cash equivalents on the Consolidated Balance Sheets. Short-term investments on the Consolidated Balance Sheets include certificates of deposit and treasury securities. We intend and have the ability to hold our short-term investments to maturity; therefore, these investments were reported at amortized cost on the Consolidated Balance Sheets, which approximated fair value as of July 31, 2016 and 2015 . These balances are excluded from the above table. Accounts receivable and accounts payable balances on the Consolidated Balance Sheets approximate their fair values at July 31, 2016 and 2015 due to the short maturity and nature of those balances; therefore, these balances are excluded from the above table. Notes payable on the Consolidated Balance Sheets are carried at the face amount of future maturities and are excluded from the above table. The estimated fair value of notes payable was approximately $16,651,000 as of July 31, 2016 and $20,476,000 as of July 31, 2015 . Our debt does not trade on a daily basis in an active market, therefore the fair value of notes payable was estimated based on market observable borrowing rates currently available for debt with similar terms and average maturities and is classified as Level 2. Concentration of Credit Risk Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash, short-term investments and accounts receivable. Our cash is held in banks which are covered by the Federal Deposit Insurance Corporation; however, our cash balances are in excess of the maximum amount that is insured. Our short-term investments are placed in government-backed instruments and with other high quality institutions. Concentrations of credit risk with respect to accounts receivable are subject to the financial condition of certain major customers, principally the customer referred to in Note 3 of the Notes to the Consolidated Financial Statements. We generally do not require collateral to secure customer receivables; however, we require letters of credit for some foreign customers or we purchase insurance to reduce our risk. |
INCOME TAXES Level 1 (Notes)
INCOME TAXES Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2016 | |
INCOME TAXES [Abstract] | |
Income Taxes | INCOME TAXES The provision for income tax expense (benefit) by fiscal year consists of the following (in thousands): 2016 2015 2014 Current Federal $ 3,298 $ 4,296 $ 1,267 Foreign 15 (40 ) 63 State 1,051 1,081 308 Current Income Tax Total 4,364 5,337 1,638 Deferred Federal (3,277 ) (2,242 ) 1,381 Foreign 174 68 (215 ) State (517 ) (362 ) 177 Deferred Income Tax Total (3,620 ) (2,536 ) 1,343 Total Income Tax Expense $ 744 $ 2,801 $ 2,981 Principal reasons for variations between the statutory federal rate and the effective rates by fiscal year were as follows: 2016 2015 2014 U.S. federal income tax rate 35.0 % 35.0 % 34.0 % Depletion deductions allowed for mining (13.8 ) (9.5 ) (12.2 ) State income tax expense, net of federal tax expense 2.5 3.4 2.8 Difference in effective tax rate of foreign subsidiaries 1.2 2.2 0.9 Empowerment zone credits — — (0.5 ) Valuation allowance (decrease) increase (11.7 ) (11.7 ) 3.2 Change in federal tax rate applied to deferred tax assets and liabilities (2.5 ) — — Deduction for domestic production activities (2.7 ) (1.8 ) (1.4 ) Other (2.8 ) 2.2 (0.5 ) Effective income tax rate 5.2 % 19.8 % 26.3 % The Consolidated Balance Sheets included the following tax effects of cumulative temporary differences as of July 31 (in thousands): ` 2016 2015 Assets Liabilities Assets Liabilities Depreciation $ — $ 5,924 $ — $ 6,749 Deferred compensation 4,684 — 3,936 — Postretirement benefits 11,935 — 8,242 — Allowance for doubtful accounts 172 — 237 — Deferred marketing expenses 365 — — 19 Other assets 923 — 41 — Accrued expenses 3,100 — 1,949 — Tax credits 1,060 — 1,545 — Amortization 216 — 37 — Inventories 247 — 512 — Depletion — 476 — 473 Stock-based compensation 252 — 162 — Reclamation 364 — 283 — Other assets – foreign 890 — 1,006 — Valuation allowance (1,170 ) — (2,210 ) — Total deferred taxes $ 23,038 $ 6,400 $ 15,740 $ 7,241 The increase in deferred taxes related to postretirement benefits was driven by a higher liability for these obligations. See Note 9 of the Notes to the Consolidated Financial Statements for further information about the assumptions used for the actuarial calculation of the postretirement benefits liability, including the lower discount rate used for fiscal 2016. We estimate we will use approximately $1,000,000 of our domestic AMT credit carryforwards in fiscal year 2016. We utilized $ 1,178,000 of our domestic AMT credit carryforwards for fiscal year 2015 and in fiscal year 2014 we added approximately $ 693,000 to our domestic AMT credit carryforwards. We maintain valuation allowances where it is likely that all or a portion of a deferred tax asset will not be realized. We determined during the fourth quarter of fiscal year 2016, that we expect to fully utilize our deferred tax asset for domestic AMT credits in future years. Therefore, we concluded it was appropriate to release the full $1,680,000 valuation allowance that had been established in prior years for this tax benefit, which resulted in a lower effective federal income tax rate. This decision was based on our current year's improved gross margin and the belief that we will continue to achieve margin and profitability levels in the future that will allow us to use the AMT credits. As of July 31, 2016 , we had total deferred tax assets of $1,170,000 for foreign net operating loss carryforwards and domestic state tax credits. We believe it is more likely than not that we will not realize these tax benefits; therefore, a valuation allowance has been established for the full amount of these deferred tax assets. Our foreign subsidiaries in the United Kingdom and China have not generated any untaxed foreign income, therefore we have not provided for any related income taxes. We had no liability for unrecognized tax benefits (“UTBs”) based on tax positions related to the current and prior fiscal years and, correspondingly, no related interest and penalties were recognized as income tax expense and there were no accruals for such items in fiscal 2016 . Reconciliations of the beginning and ending amount of UTBs by fiscal year were as follows (in thousands): 2016 2015 2014 Gross balance – beginning of year $ — $ — $ 273 Gross decreases - tax positions from prior years — — (273 ) Gross balance – end of year $ — $ — $ — We are subject to U.S. federal income tax as well as income tax in multiple state and foreign jurisdictions. Our federal income tax return for fiscal year 2013 was under examination as of July 31, 2016 and returns for fiscal years 2014 and 2015 remain open for examination. Foreign and U.S. state jurisdictions have statutes of limitations generally ranging from three to five years. The state impact of any federal income tax changes remains subject to examination by various states for a period of up to one year after formal notification to the states. There are no material open or unsettled state, local or foreign income tax audits. We believe our accrual for tax liabilities is adequate for all open audit years. |
STOCKHOLDERS EQUITY Level 1 (No
STOCKHOLDERS EQUITY Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2016 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Common Stock Our authorized capital stock at July 31, 2016 and 2015 consisted of 15,000,000 shares of Common Stock, 7,000,000 shares of Class B Stock and 30,000,000 shares of Class A Common Stock, each with a par value of $.10 per share. There are no Class A Common Stock shares currently outstanding. The Common Stock and Class B Stock are equal, on a per share basis, in all respects except as to voting rights, conversion rights, cash dividends and stock splits or stock dividends. The Class A Common Stock is equal, on a per share basis, in all respects, to the Common Stock except as to voting rights and stock splits or stock dividends. In the case of voting rights, Common Stock is entitled to one vote per share and Class B Stock is entitled to ten votes per share, while Class A Common Stock generally has no voting rights. Common Stock and Class A Common Stock have no conversion rights. Class B Stock is convertible on a share-by-share basis into Common Stock at any time and is subject to mandatory conversion under certain circumstances. Common Stock is entitled to cash dividends, as and when declared or paid, equal to at least 133.33% on a per share basis of the cash dividend paid on Class B Stock. Class A Common Stock is entitled to cash dividends on a per share basis equal to the cash dividend on Common Stock. Additionally, while shares of Common Stock, Class A Common Stock and Class B Stock are outstanding, the sum of the per share cash dividend paid on shares of Common Stock and Class A Common Stock, must be equal to at least 133.33% of the sum of the per share cash dividend paid on Class B Stock and Class A Common Stock. See Note 4 of the Notes to the Consolidated Financial Statements regarding dividend restrictions provided in our debt agreements. Shares of Common Stock, Class A Common Stock and Class B Stock are equal in respect of all rights to dividends (other than cash) and distributions in the form of stock or other property (including stock dividends and split-ups) in each case in the same ratio except in the case of a Special Stock Dividend. A Special Stock Dividend, which can be issued only once, is either a dividend of one share of Class A Common Stock for each share of Common Stock and Class B Stock outstanding or a recapitalization, in which half of each outstanding share of Common Stock and Class B Stock would be converted into a half share of Class A Common Stock. Our Board of Directors has authorized in the aggregate the repurchase of 3,666,771 shares of the Company stock since fiscal year 1991. Through fiscal year-end 2016 , 3,019,169 shares of Common Stock and 342,241 shares of Class B Stock have been repurchased under the Board approved repurchase authorizations. Common Stock was repurchased by other transactions authorized by management prior to the adoption of the Board’s repurchase authorizations. Accumulated Other Comprehensive (Loss) Income The following table summarizes the changes in accumulated other comprehensive income by component (in thousands): Unrealized Gain on Marketable Securities Pension and Postretirement Health Benefits Cumulative Translation Adjustment Total Accumulated Other Comprehensive (Loss) Income Balance as of July 31, 2014 $ 114 $ (8,632 ) $ 255 (8,263 ) Other comprehensive (loss) income before reclassifications, net of tax (9 ) (730 ) b) (525 ) (1,264 ) Amounts reclassified from accumulated other comprehensive income, net of tax (105 ) a) 387 c) — 282 Net current-period other comprehensive (loss) income , net of tax (114 ) (343 ) (525 ) (982 ) Balance as of July 31, 2015 $ — $ (8,975 ) $ (270 ) $ (9,245 ) Other comprehensive (loss) income before reclassifications, net of tax — (5,501 ) b) 115 (5,386 ) Amounts reclassified from accumulated other comprehensive income, net of tax — 609 c) — 609 Net current-period other comprehensive (loss) income, net of tax — (4,892 ) 115 (4,777 ) Balance as of July 31, 2016 $ — $ (13,867 ) $ (155 ) $ (14,022 ) a) Amount is included in the Consolidated Statements of Operations on the Other, net line item. The cost of the related securities was based on specific identification. b) Amounts are net of taxes of $3,372,000 and $447,000 in fiscal years 2016 and 2015 , respectively. and are included in Other Comprehensive Loss. c) Amounts are net of taxes of $374,000 and $239,000 in fiscal years 2016 and 2015 , respectively. Amounts are included in the components of net periodic benefit cost for the pension and postretirement health plans. See Note 9 of the Notes to the Consolidated Financial Statements for further information about pension and postretirement health benefits. |
STOCK-BASED COMPENSATION (Notes
STOCK-BASED COMPENSATION (Notes) | 12 Months Ended |
Jul. 31, 2016 | |
STOCK-BASED COMPENSATION [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION We determined the fair value of stock options and restricted stock issued under our long term incentive plans as of the grant date. The fair value of restricted stock was determined by the closing market price of our Common Stock on the date of grant multiplied by the number of shares granted. The fair value of the stock options was estimated on the date of the grant using a Black-Scholes option valuation model that used various assumptions. The risk free interest rate was based on the U.S. Treasury yield curve in effect at the time of grant. Expected life (estimated period of time outstanding) of a grant was determined by reference to the vesting schedule, past exercise behavior and comparison with other reporting companies. The dividend rate at the date of grant was used as the best estimate of future dividends. Expected volatility was determined by calculating the standard deviation of our stock price for the five years immediately prior to the grant date. This period of time closely resembles the expected term. All stock options issued under our plans have an exercise price equal to the closing market price of our Common Stock on the date of grant. All options currently outstanding have a term of ten years. S TOCK O PTIONS The Oil-Dri Corporation of America 2006 Long Term Incentive Plan (“2006 Plan”) permits the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards and other stock-based and cash-based awards. Our employees and outside directors are eligible to receive grants under the 2006 Plan. The total number of shares of stock subject to grants under the 2006 Plan may not exceed 937,500 . Stock options have been granted to our outside directors with a vesting period of one year and stock options granted to employees generally vest 25% two years after the grant date and in each of the three following anniversaries of the grant date. In addition, shares of restricted stock have been issued under the 2006 Plan as described in the restricted stock section below. As of July 31, 2016 , there were 375,954 shares available for future grants under this plan. Our 1995 Long Term Incentive Plan (“1995 Plan”) provided for grants of both incentive and non-qualified stock options and restricted stock. Stock options granted under the 1995 Plan generally vest 25% two years after the grant date and in each of the three following anniversaries of the grant date. All shares of stock issued upon option exercises under this plan were from authorized but unissued stock; all shares of restricted stock issued were from treasury stock. All remaining outstanding options were exercised during fiscal year 2014 and there were no shares available for future grants under this plan as of July 31, 2016 . The Oil-Dri Corporation of America Outside Director Stock Plan (the “Directors’ Plan”) provided for grants of stock options to directors. Stock options were granted to our directors with a one year vesting period. All remaining outstanding options were exercised during fiscal year 2014 and there were no shares available for future grants under this plan as of July 31, 2016 . All shares of stock issued under the Directors’ Plan were from treasury stock. A summary of stock option transactions under the plans is shown below. Number of Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Options outstanding and exercisable at July 31, 2013 60 $ 14.25 2.3 $ 1,059 Exercised (8 ) $ 12.47 $ 151 Forfeited (8 ) $ 9.43 Options outstanding and exercisable at July 31, 2014 44 $ 15.43 1.9 $ 611 Exercised (3 ) $ 15.37 $ 45 Options outstanding and exercisable at July 31, 2015 41 $ 15.43 0.9 $ 447 Exercised (31 ) $ 14.93 $ 469 Options outstanding and exercisable at July 31, 2016 10 $ 17.00 0.3 $ 205 The amount of cash received from the exercise of options during fiscal year 2016 was $467,000 and the related tax benefit was $178,000 . The amount of cash received from the exercise of options during fiscal year 2015 was $50,000 and the related tax benefit was $9,000 . The amount of cash received from the exercise of options during fiscal year 2014 was $93,000 and the related tax benefit was $39,000 . As of July 31, 2016, we have one stock option grant outstanding and exercisable for 10,000 shares with the exercise price and remaining contractual term as shown in the table above. We recognized the related compensation expense over the period from the date of grant to the date when the award is no longer contingent on the employee providing additional service to us. We recognized no stock-based compensation expense related to stock options during fiscal years 2016 , 2015 and 2014 . As of July 31, 2016 , 2015 and 2014 we had no unamortized expense associated with outstanding stock options. RESTRICTED S TOCK All of our non-vested restricted stock as of July 31, 2016 was issued under the 2006 Plan with vesting periods from two to five years. A summary of restricted stock transactions under the plans is shown below. Number of Shares (in thousands) Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Unamortized Expense (in thousands) Non-vested restricted stock outstanding at July 31, 2013 117 $ 22.24 2.1 $ 1,824 Granted 51 $ 34.18 Vested (40 ) $ 21.50 Forfeited (6 ) $ 25.41 Non-vested restricted stock outstanding at July 31, 2014 122 $ 27.31 2.4 $ 2,226 Granted 11 $ 28.68 Vested (45 ) $ 23.16 Forfeited (14 ) $ 34.05 Non-vested restricted stock outstanding at July 31, 2015 74 $ 28.83 2.1 $ 931 Granted 166 $ 28.62 Vested (41 ) $ 26.46 Forfeited (5 ) $ 31.56 Non-vested restricted stock outstanding at July 31, 2016 194 $ 29.09 3.8 $ 4,282 We recognized stock-based compensation related to restricted stock of $773,000 , $916,000 and $880,000 , net of related tax effect, in fiscal years 2016 , 2015 and 2014 , respectively. The total restricted stock compensation related tax benefit was $474,000 , $226,000 and $309,000 in fiscal years 2016 , 2015 and 2014 , respectively. |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFITS Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2016 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |
Pension and Other Postretirement Benefits | PENSION AND OTHER POSTRETIREMENT BENEFITS The Oil-Dri Corporation of American Pension Plan (“Pension Plan”) is a defined benefit pension plan for eligible salaried and hourly employees. Pension benefits are based on a formula of years of credited service and levels of compensation or stated amounts for each year of credited service. We also provide a postretirement health benefits plan to domestic salaried employees who meet specific age, participation and length of service requirements at the time of retirement. Eligible employees may elect to continue their health care coverage under the Oil-Dri Corporation of America Employee Benefits Plan until the date certain criteria are met, including attaining the age of Medicare eligibility. We have the right to modify or terminate the postretirement health benefit plan at any time. We also maintain a 401(k) savings plan under which we match a portion of employee contributions. This plan is available to essentially all domestic employees following a specific number of days of employment. Our contributions to this plan, and to similar plans maintained by our foreign subsidiaries, were $685,000 , $683,000 and $814,000 for fiscal years 2016 , 2015 and 2014 , respectively. Obligations and Funded Status The following tables provide a reconciliation of changes in the plans’ benefit obligations, assets’ fair values and funded status by fiscal year (in thousands): Pension Benefits Postretirement Health Benefits 2016 2015 2016 2015 Change in benefit obligation : Benefit obligation, beginning of year $ 46,749 $ 44,367 $ 2,362 $ 2,770 Service cost 1,502 1,606 93 133 Interest cost 1,928 1,855 82 106 Actuarial loss (gain) 6,304 96 413 (622 ) Benefits paid (1,359 ) (1,175 ) (204 ) (25 ) Benefit obligation, end of year 55,124 46,749 2,746 2,362 Change in plan assets: Fair value of plan assets, beginning of year 25,593 24,804 — — Actual return on plan assets (234 ) 174 — — Employer contribution 1,264 1,790 204 25 Benefits paid (1,359 ) (1,175 ) (204 ) (25 ) Fair value of plan assets, end of year 25,264 25,593 — — Funded status, recorded in Consolidated Balance Sheets $ (29,860 ) $ (21,156 ) $ (2,746 ) $ (2,362 ) The accumulated benefit obligation for the Pension Plan was $48,981,000 as of July 31, 2016 and $41,501,000 as of July 31, 2015 . The following table shows amounts recognized in the Consolidated Balance Sheets as of July 31 (in thousands): Pension Benefits Postretirement Health Benefits 2016 2015 2016 2015 Deferred income taxes $ 10,894 $ 7,376 $ 1,041 $ 866 Other current liabilities $ — $ — $ (114 ) $ (89 ) Other noncurrent liabilities $ (29,860 ) $ (21,156 ) $ (2,632 ) $ (2,273 ) Accumulated other comprehensive loss (income) –net of tax: Net actuarial loss $ 13,546 $ 8,909 $ 348 $ 92 Prior service cost (income) $ 4 $ 9 $ (31 ) $ (35 ) Benefit Costs and Amortizations The following table shows the components of the net periodic pension and postretirement health benefit costs by fiscal year (in thousands): Pension Cost Postretirement Health Benefit Cost 2016 2015 2014 2016 2015 2014 Service cost $ 1,502 $ 1,606 $ 1,425 $ 93 $ 133 $ 111 Interest cost 1,928 1,855 1,761 82 106 110 Expected return on plan assets (1,923 ) (1,877 ) (1,715 ) — — — Amortization of: Net transition obligation — — — — 1 16 Prior service costs (income) 8 10 13 (6 ) (6 ) (6 ) Other actuarial loss 981 584 343 — 37 24 Net periodic benefit cost $ 2,496 $ 2,178 $ 1,827 $ 169 $ 271 $ 255 The following table shows amounts, net of tax, that are recognized in other comprehensive income by fiscal year (in thousands): Pension Benefits Postretirement Health Benefits 2016 2015 2016 2015 Net actuarial loss (gain) $ 5,245 $ 1,115 $ 256 $ (385 ) Amortization of: Prior service (cost) income (5 ) (6 ) 4 4 Net transition obligation — — — (1 ) Amortization of actuarial loss (608 ) (361 ) — (23 ) Total recognized in other comprehensive loss (income) $ 4,632 $ 748 $ 260 $ (405 ) The following table shows amortization amounts, net of tax, expected to be recognized in fiscal year 2017 in accumulated other comprehensive income (in thousands): Amortization of: Pension Benefits Postretirement Health Benefits Net actuarial loss $ 1,063 $ 16 Prior service cost (income) 2 (4 ) Total to be recognized as other comprehensive loss $ 1,065 $ 12 Cash Flows We have funded the Pension Plan based upon actuarially determined contributions that take into account the amount deductible for income tax purposes, the normal cost and the minimum contribution required and the maximum contribution allowed under applicable regulations. We expect to contribute approximately $1,475,000 in fiscal year 2017 . The postretirement health plan is an unfunded plan. Our policy is to pay insurance premiums and claims from our assets. The following table shows the estimated future benefit payments by fiscal year (in thousands): Pension Benefits Postretirement Health Benefits 2017 $ 1,389 $ 114 2018 $ 1,477 $ 72 2019 $ 1,561 $ 88 2020 $ 1,575 $ 128 2021 $ 1,664 $ 157 2022-26 $ 9,895 $ 1,161 Assumptions Our pension benefit and postretirement health benefit obligations and the related effects on operations are calculated using actuarial models. Critical assumptions that are important elements of plan expenses and asset/liability measurements include discount rate and expected return on assets for the Pension Plan and health care cost trend for the postretirement health plan. We evaluate these critical assumptions at least annually. Other assumptions involving demographic factors such as retirement age, mortality and turnover are evaluated periodically and are updated to reflect our experience and to meet regulatory requirements. Actual results in any given year will often differ from actuarial assumptions because of economic and other factors. The assumptions used in the previous calculations by fiscal year were as follows: Pension Benefits Postretirement Health Benefits 2016 2015 2016 2015 Discount rate for net periodic benefit costs 4.22% 4.28% 3.51% 3.87% Discount rate for year-end obligations 3.36% 4.22% 2.71% 3.51% Rate of increase in compensation levels for net periodic benefit costs 3.50% 3.50% — — Rate of increase in compensation levels for year-end obligations 3.50% 3.50% — — Long-term expected rate of return on assets 7.50% 7.50% — — The discount rate was based on the Citigroup Pension Discount Curve (“CPDC”) to determine separately for the Pension Plan and the postretirement health plan, the single equivalent rate that would yield the same present value as the specific plan’s expected cash flows. Our expected rate of return on Pension Plan assets is determined by our asset allocation, our historical long-term investment performance, our estimate of future long-term returns by asset class (using input from our actuaries, investment managers and investment advisors), and long-term inflation assumptions. For fiscal year 2016 , the medical cost trend assumption used for the postretirement health benefit cost was 7.0% . The graded trend rate is expected to decrease to an ultimate rate of 4.0% in fiscal year 2035 . The following table reflects the effect on postretirement health costs and accruals in fiscal year 2016 of a one-percentage point change in the assumed health care cost trend (in thousands): One-Percentage Point Increase One-Percentage Point Decrease Effect on total service and interest cost $23 $(20) Effect on accumulated postretirement benefit obligation $293 $(258) Pension Plan Assets The investment objective for the Pension Plan assets is to optimize long-term return at a moderate level of risk in order to secure the benefit obligations to participants at a reasonable cost. To reach this goal, our investment structure includes various asset classes, asset allocations and investment management styles that, in total, have a reasonable likelihood of producing a sufficient level of overall diversification that balances expected return with expected risk over the long-term. The Pension Plan does not invest directly in Company stock. We measure and monitor the plan’s asset investment performance and the allocation of assets through quarterly investment portfolio reviews. Investment performance is measured by absolute returns, returns relative to benchmark indices and any other appropriate basis of comparison. The targeted allocation percentages of plan assets is shown below for fiscal year 2017 and the actual allocation as of July 31: Asset Allocation Target fiscal 2017 2016 2015 Cash and accrued income 2% —% 12% Fixed income 38% 47% 29% Equity 60% 53% 59% The following table sets forth by level, within the fair value hierarchy, the Pension Plan's assets carried at fair value (in thousands): Fair Value At July 31, 2016 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Asset Class Cash and cash equivalents (a) $ 48 $ 48 $ — Equity securities (b) : U.S. companies 8,132 4,604 3,528 International companies 1,946 1,946 — Equity securities - international mutual funds: Developed market (c) 3,258 — 3,258 Fixed Income: U.S. Treasuries 2,244 — 2,244 Bonds (f) 5,692 — 5,692 Government sponsored entities (h) 2,894 — 2,894 Money market fund (j) 1,050 — 1,050 Total $ 25,264 $ 6,598 $ 18,666 Fair Value At July 31, 2015 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Asset Class Cash and cash equivalents (a) $ 2,678 $ 2,678 $ — Equity securities (b) : U.S. companies 9,141 9,119 22 International companies 3,178 3,178 — Equity securities - international mutual funds: Developed market (c) 1,289 — 1,289 Emerging markets (d) 331 — 331 Commodities (e) 267 — 267 Fixed Income: U.S. Treasuries 3,923 — 3,923 Bonds (f) 1,751 — 1,751 Floating rate debt (g) 855 — 855 Government sponsored entities (h) 292 — 292 Multi-strategy bond fund (i) 895 — 895 Other (k) 993 — 993 Total $ 25,593 $ 14,975 $ 10,618 (a) Cash and cash equivalents consists of highly liquid investments which are traded in active markets. (b) This class represents equities traded on regulated exchanges, as well as funds that invest in a portfolio of such stocks. (c) These mutual funds seek long-term capital growth by investing no less than 80% of their assets in stocks of non- U.S. companies that are primarily in developed markets, but also may invest in emerging and less developed markets. (d) These mutual funds seek long-term capital growth by investing at least 80% of their assets in stocks of companies located in Asia, excluding Japan. (e) The majority of the investments in this class seek maximum real return by investing primarily in commodity-linked derivative instruments. Assets not invested in commodity-linked instruments may be invested in inflation-indexed securities and other fixed income instruments. (f) This class includes bonds of U.S. and non-U.S. corporate issuers from diverse industries and bonds of foreign municipalities. (g) This fund invests at least 80% of its net assets in first- and second-lien senior floating rate debt securities that are generally rated below investment grade. The fund may invest up to 20% of its net assets in debt securities that are lower than a senior claim on collateral and up to 20% of its net assets in senior loans made to non-U.S. borrowers. The fund may also include derivative instruments. (h) This class represents a beneficial ownership interest in a pool of single-family residential mortgage loans. These investments are generally not backed by the full faith and credit of the United States government, except for securities valued for $803,776 in our portfolio. (i) This class invests at least 80% of its net assets in bonds and other fixed income instruments issued by governmental or private-sector entities. More than 50% of its net assets are invested in mortgage-backed securities. The fund may invest up to 33 1/3 % of its net assets in high-yield bonds, bank loans and assignments and credit default swaps. (j) These money market mutual funds seek to provide current income consistent with liquidity and stability of principal by investing in a diversified portfolio of high quality, short-term, dollar-denominated debt securities. These funds may include securities issued or guaranteed as to principal and interest by the U.S. government or its agencies, short-term securities issued by domestic or foreign banks, domestic and dollar-denominated foreign commercial papers, and other short-term corporate obligations and obligations issued or guaranteed by one or more foreign governments. (k) This class seeks long-term positive returns by employing a number of arbitrage and alternative investment strategies. The portfolio of instruments may include equities, convertible securities, debt securities, warrants, options, swaps, future contracts, forwards or other types of derivative instruments. |
DEFERRED COMPENSATION Level 1 (
DEFERRED COMPENSATION Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2016 | |
DEFERRED COMPENSATION [Abstract] | |
Deferred Compensation | DEFERRED COMPENSATION Oil-Dri's deferred compensation plans permit directors and certain management employees to defer portions of their compensation and to earn interest on the deferred amounts. Participants have deferred $483,000 and $318,000 into these plans in fiscal years 2016 and 2015 , respectively. We recorded $438,000 and $428,000 of interest expense associated with these plans in fiscal years 2016 and 2015 , respectively. Payments to participants were $570,000 and $450,000 in fiscal years 2016 and 2015 , respectively, and the total liability recorded for deferred compensation was $9,117,000 and $8,623,000 at July 31, 2016 and 2015 , respectively. The Oil-Dri Corporation of America Annual Incentive Plan provides certain executives with the opportunity to receive a deferred executive bonus award if certain financial goals are met. A total of $763,000 was awarded to certain executives for fiscal year 2016 and will vest and accrue interest over a three -year period. Financial targets under the provisions of the plan were not achieved to merit an award for fiscal year 2015 . Both of the above deferred compensation plans are unfunded. We fund these benefits when payments are made, and the timing and amount of the payments are determined according to the plans' provisions and, for certain plans, according to individual employee agreements. The Oil-Dri Corporation of America SERP provides certain retired participants in the Pension Plan with the amount of benefits that would have been provided under the Pension Plan but for: (1) the limitations on benefits imposed by Section 415 of the Internal Revenue Code (“Code”), and/or (2) the limitation on compensation for purposes of calculating benefits under the Pension Plan imposed by Section 401(a)(17) of the Code. The SERP liability is actuarially determined at the end of each fiscal year using assumptions similar to those used for the Pension Plan, see Note 9 of the Notes to the Consolidated Financial Statements. The SERP liability recorded at July 31, 2016 was $1,968,000 , which was higher than the $1,433,000 liability recorded at July 31, 2015 due primarily to a decrease in the discount rate. We recorded expense related to the SERP of $535,000 in fiscal year 2016 and $178,000 in fiscal year 2015 . The SERP is unfunded and we will fund benefits when payments are made. |
OTHER CONTINGENCIES Level 1 (No
OTHER CONTINGENCIES Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2016 | |
OTHER CONTINGENCIES [Abstract] | |
Other Contingencies Disclosure [Text Block] | OTHER CONTINGENCIES We are party to various legal actions from time to time that are ordinary in nature and incidental to the operation of our business. While it is not possible at this time to determine with certainty the ultimate outcome of these or other lawsuits, we believe that none of the pending proceedings will have a material adverse effect on our business, financial condition, results of operations or cash flows. See Item 3 “ Legal Proceedings ” for more information about specific legal matters related to our patents. |
LEASES Level 1 (Notes)
LEASES Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2016 | |
Leases [Abstract] | |
Leases of Lessor Disclosure | LEASES Our mining operations are conducted on property we lease or own. These leases generally provide us with the right to mine as long as we continue to pay a minimum monthly rental, which is typically applied against the per ton royalty when the property is mined. We also lease certain offices and production facilities. In addition, we may lease vehicles, railcars, mining property and equipment, warehouse space, data processing equipment, and office equipment. In most cases, we expect that, in the normal course of business, leases will be renewed or replaced by other leases. The following is a schedule by fiscal year of future minimum rent requirements under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of July 31, 2016 (in thousands): 2017 $ 1,530 2018 $ 1,366 2019 $ 1,096 2020 $ 847 2021 $ 728 Later years $ 9,166 The following schedule shows the composition of total rent expense by fiscal year for all operating leases, including those with terms of one month or less which were not renewed (in thousands): 2016 2015 2014 Vehicles and Railcars $ 1,439 $ 1,559 $ 1,818 Office facilities 945 928 890 Warehouse facilities 419 311 235 Mining properties: Minimum 124 123 292 Contingent (1) 239 239 162 Other 61 46 108 $ 3,227 $ 3,206 $ 3,505 (1) Contingent mining royalty payments are determined based on the tons of raw clay mined. As of July 31, 2014, we had a capital lease for three pieces of equipment used at our manufacturing facilities. All scheduled lease payments had been made as of the 2014 fiscal year-end and the remaining obligation of $1,330,000 , which was included in other accrued expenses on the Consolidated Balance Sheets, represented the purchase option price to obtain title to the equipment, which we paid in fiscal year 2015. As of July 31, 2014, the assets under capital lease were included on the Consolidated Balance Sheets in machinery and equipment for $ 1,523,000 , and in accumulated depreciation and amortization for $ 32,000 . Depreciation expense related to these assets was included in cost of sales on the fiscal year 2014 Consolidated Statements of Operations. There were no capital leases during fiscal years 2016 or 2015. |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2016 | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | |
Quarterly Financial Information | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) A summary of selected information for fiscal years 2016 and 2015 is as follows (in thousands, except for per share amounts): Fiscal Year 2016 Quarter Ended October 31 January 31 April 30 July 31 Fiscal 2016 Net Sales $ 67,795 $ 65,367 $ 64,235 $ 64,916 $ 262,313 Gross Profit $ 20,653 $ 19,062 $ 18,568 $ 18,866 $ 77,149 Net Income (Loss) $ 5,423 $ 3,821 $ (892 ) $ 5,261 $ 13,613 Net Income Per Share Basic Common $ 0.82 $ 0.57 $ (0.14 ) $ 0.78 $ 2.04 Basic Class B Common $ 0.61 $ 0.43 $ (0.10 ) $ 0.59 $ 1.53 Diluted Common $ 0.75 $ 0.53 $ (0.13 ) $ 0.72 $ 1.87 Dividends Per Share Common $ 0.2100 $ 0.2100 $ 0.2100 $ 0.2200 $ 0.8500 Class B Common $ 0.1575 $ 0.1575 $ 0.1575 $ 0.1650 $ 0.6375 Common Stock Price Range High $ 31.61 $ 38.92 $ 38.43 $ 37.67 Low $ 21.65 $ 28.42 $ 32.24 $ 29.89 Fiscal Year 2015 Quarter Ended October 31 January 31 April 30 July 31 Fiscal 2015 Net Sales $ 66,044 $ 64,643 $ 65,196 $ 65,519 $ 261,402 Gross Profit $ 13,769 $ 15,233 $ 14,433 $ 16,722 $ 60,157 Net Income $ 2,120 $ 2,797 $ 1,385 $ 5,066 $ 11,368 Net Income Per Share Basic Common $ 0.32 $ 0.43 $ 0.21 $ 0.77 $ 1.73 Basic Class B Common $ 0.24 $ 0.32 $ 0.16 $ 0.58 $ 1.30 Diluted Common $ 0.30 $ 0.39 $ 0.19 $ 0.71 $ 1.59 Dividends Per Share Common $ 0.2000 $ 0.2000 $ 0.2000 $ 0.2100 $ 0.8100 Class B Common $ 0.1500 $ 0.1500 $ 0.1500 $ 0.1575 $ 0.6075 Common Stock Price Range High $ 31.30 $ 32.93 $ 34.19 $ 33.44 Low $ 24.02 $ 26.60 $ 28.30 $ 25.92 |
SUBSEQUENT EVENTS Level 1 (Note
SUBSEQUENT EVENTS Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Management has evaluated subsequent events through the date the financial statements were issued. Based on our evaluation no events have occurred that would require recognition in the Consolidated Financial Statements or disclosure in the Notes to the Consolidated Financial Statements. |
SUMMARY OF SIGNIFICANT ACCOUN22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Level 2 (Policies) | 12 Months Ended |
Jul. 31, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Principles of Consolidation | P RINCIPLES OF C ONSOLIDATION The Consolidated Financial Statements include the accounts of Oil-Dri Corporation of America and its subsidiaries, all of which are wholly-owned. All significant intercompany balances and transactions have been eliminated from the Consolidated Financial Statements. |
Management Use of Estimates | M ANAGEMENT U SE OF E STIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. For more information see Critical Accounting Policies and Estimates in Item 7 “ Managements Discussion and Analysis of Financial Condition and Results of Operations. ” |
Cash and Cash Equivalents | C ASH AND C ASH E QUIVALENTS Cash equivalents are highly liquid investments with maturities of three months or less. |
Short-Term Investments | S HORT - TERM I NVESTMENTS The table below shows the composition of short-term investments as of July 31 (in thousands): 2016 2015 U.S. Treasury securities $ 5,998 $ — Certificates of deposit 4,186 2,190 Short-term investments $ 10,184 $ 2,190 Short-term investments have maturities of one year or less. We intend and have the ability to hold these investments to maturity; therefore, these investments are reported at amortized cost. |
Trade Receivables | T RADE R ECEIVABLES We recognize trade receivables when the risk of loss and title pass to the customer. We record an allowance for doubtful accounts based on our historical experience and a periodic review of our accounts receivable, including a review of the overall aging of accounts, consideration of customer credit risk and analysis of facts and circumstances about specific accounts. A customer account is determined to be uncollectible when it is probable that a loss will be incurred after we have completed our internal collection procedures, including termination of shipments, direct customer contact and formal demand of payment. We retain outside collection agencies to facilitate our collection efforts. Past due status is determined based on contractual terms and customer payment history. |
Inventories | I NVENTORIES We value inventories at the lower of cost (first-in, first-out) or market. We recorded inventory obsolescence reserves of approximately $806,000 and $521,000 as of July 31, 2016 and 2015 , respectively. The composition of inventories was as follows as of July 31 (in thousands): 2016 2015 Finished goods $ 14,032 $ 12,117 Packaging 4,672 4,735 Other 4,547 4,517 Inventories $ 23,251 $ 21,369 |
Translation of Foreign Currencies | T RANSLATION OF F OREIGN C URRENCIES Assets and liabilities of foreign subsidiaries, where the local currency is the functional currency, are translated to U.S. Dollars at the exchange rates in effect at period end. Income statement items are translated at the average exchange rate on a monthly basis. Resulting translation adjustments are recorded as a separate component of stockholders’ equity. |
Intangible Assets and Goodwill | I NTANGIBLE A SSETS AND G OODWILL We amortize most of our intangible assets on a straight-line basis over periods ranging from ten to 20 years. Our customer list intangible asset, related to the acquisition of certain assets of MFM, is amortized at an accelerated amortization rate in the earlier years to reflect the expected pattern of decline in the related benefits over time. Intangible amortization was $1,410,000 in fiscal year 2016 and $1,642,000 in fiscal year 2015 . We have some intangible assets that were determined to have indefinite lives and are not amortized, specifically one acquired trademark recorded at $376,000 . Our estimated intangible amortization expense for the next five fiscal years is as follows (in thousands): 2017 $ 1,212 2018 $ 1,003 2019 $ 816 2020 $ 646 2021 $ 462 The weighted average amortization period of our intangible assets subject to amortization is as follows (in years): Weighted Average Amortization Period Trademarks and patents 11.5 Debt issuance costs 4.1 Customer list 7.3 Total intangible assets subject to amortization 7.3 We periodically review indefinite-lived intangibles and goodwill to assess for impairment. Our review is based on cash flow considerations and other approaches that require significant judgment with respect to volume, revenue, expenses and allocations. Impairment occurs when the carrying value exceeds the fair value. Much of our goodwill cannot be specifically assigned to one of our operating segments because of the shared nature of our production facilities; however, for purposes of our most recent impairment analysis we estimated the goodwill allocation and assigned $5,775,000 to the Retail and Wholesale Products Group and $3,259,000 to the Business to Business Products Group. Our impairment analysis has historically been performed in the first quarter of the fiscal year; however, beginning in fiscal year 2016 we performed, and going forward we will perform, our annual impairment testing in the fourth quarter of our fiscal year. We will continue to consider the need to re-perform impairment testing throughout the year when indicators such as unexpected adverse economic factors, unanticipated technological changes, competitive activities and acts by governments and courts indicate that an asset may become impaired. We believe the change in impairment testing date is not a material change to our method of applying an accounting principle. There has been no impairment from this analysis for fiscal years 2016 , 2015 or 2014 . |
Overburden Removal and Mining Costs | O VERBURDEN R EMOVAL AND M INING C OSTS We mine sorbent materials on property that we either own or lease as part of our overall operations. A significant part of our overall mining cost is incurred during the process of removing the overburden from the mine site, thus exposing the sorbent material used in a majority of our production processes. These stripping costs are treated as a variable inventory production cost and are included in cost of sales in the period they are incurred. Stripping costs included in cost of sales were approximately $3,020,000 , $2,939,000 , and $4,179,000 for fiscal years 2016 , 2015 and 2014 , respectively. We defer and amortize the pre-production overburden removal costs associated with opening a new mine. No pre-production overburden removal costs were deferred in the last two fiscal years. Additionally, it is our policy to capitalize the purchase cost of land and mineral rights, including associated legal fees, survey fees and real estate fees. The costs of obtaining mineral rights, including legal fees and drilling expenses, are also capitalized. The amount of land and mineral rights included in land on the Consolidated Balance Sheets were approximately $13,659,000 and $2,165,000 , respectively, as of July 31, 2016 and $13,285,000 and $2,165,000 , respectively, as of July 31, 2015 . Pre-production development costs on new mines and any prepaid royalties that may be offset against future royalties due upon extraction of the mineral are also capitalized. No capitalized pre-production development costs were recorded in fiscal years 2016 and 2015. Prepaid royalties included in current prepaid expenses and in non-current other assets on the Consolidated Balance Sheets were approximately $1,103,000 and $1,068,000 as of July 31, 2016 and 2015 , respectively. |
Reclamation | R ECLAMATION We perform ongoing reclamation activities during the normal course of our overburden removal. As overburden is removed from a mine site, it is hauled to previously mined sites and is used to refill older sites. This process allows us to continuously reclaim older mine sites and dispose of overburden simultaneously, therefore minimizing the costs associated with the reclamation process. On an annual basis we evaluate our potential reclamation liability in accordance with ASC 410, Asset Retirement and Environmental Obligations. The reclamation assets are depreciated over the estimated useful lives of the various mines. The reclamation liabilities are increased based on a yearly accretion charge over the estimated useful lives of the mines. |
Property, Plant and Equipment | P ROPERTY , P LANT AND E QUIPMENT Property, plant and equipment are generally depreciated using the straight-line method over their estimated useful lives which are listed below. Depreciation expense was $10,782,000 , $10,352,000 and $9,289,000 in fiscal years 2016 , 2015 and 2014 , respectively. Major improvements and betterments are capitalized, while maintenance and repairs that do not extend the useful life of the applicable assets are expensed as incurred. Interest expense may also be capitalized for assets that require a period of time to get them ready for their intended use. Capitalized interest in fiscal year 2016 was $72,000 . There was no significant capitalized interest in fiscal years 2015 and 2014 . Years Buildings and leasehold improvements 3 - 39 Machinery and equipment Packaging 2 - 20 Processing 2 - 25 Mining and other 3 - 15 Office furniture and equipment 2 - 12 Vehicles 3 - 15 Property, plant and equipment are carried at cost on the Consolidated Balance Sheets and are reviewed for possible impairment on an annual basis. We take into consideration idle and underutilized equipment and review business plans for possible impairment. When impairment is indicated, an impairment charge is recorded for the difference between the carrying value of the asset and its fair market value. There was no impairment recorded in any of fiscal years 2016 , 2015 or 2014 . |
Trade Promotions | T RADE P ROMOTIONS We routinely commit to one-time or ongoing trade promotion programs, primarily in our Retail and Wholesale Products Group. All such costs are netted against sales. We have accrued liabilities at the end of each period for the estimated expenses incurred but not yet paid for these programs. Promotional reserves are provided for sales incentives made directly to consumers, such as coupons, and sales incentives made to customers, such as slotting, discounts based on sales volume, cooperative marketing programs and other arrangements. We use judgment for estimates to determine our trade spending liabilities. We rely on our historical experience of trade spending patterns and that of the industry, current trends and forecast data. |
Advertising | A DVERTISING Advertising costs for the development of printed materials, television commercials, web-based digital banners, web-based social media and sales videos are deferred and expensed upon the first use of the materials, unless such amounts are immaterial. Costs paid for communicating advertising over a period of time, such as television air time, radio commercials and print media advertising space, are deferred and expensed on a pro-rata basis. All other advertising costs, including participation in industry conventions and shows and market research, are expensed when incurred. All advertising costs are part of selling, general and administrative expenses. Advertising expenses were approximately $18,083,000 , $5,154,000 , and $8,886,000 in fiscal years 2016 , 2015 and 2014 , respectively. Advertising expense was significantly higher in fiscal year 2016 due to an integrated marketing campaign launched in March 2016 to promote our Cat's Pride Fresh & Light Ultimate Care lightweight cat litter. |
Fair Value of Financial Instruments | F AIR V ALUE OF F INANCIAL I NSTRUMENTS Non-derivative financial instruments included in the Consolidated Balance Sheets are cash and cash equivalents, short-term investments and notes payable. These instruments, except for notes payable, were carried at amounts approximating fair value as of July 31, 2016 and 2015 . Short-term investments were certificates of deposits and treasury securities. We intend and have the ability to hold our short-term investments to maturity; therefore, these investments were reported at amortized cost on the Consolidated Balance Sheets, which approximated fair value. See Note 5 of the Notes to the Consolidated Financial Statements for additional information regarding the fair value of our financial instruments, including notes payable. |
Revenue Recognition | R EVENUE R ECOGNITION We recognize revenue when risk of loss and title are transferred under the terms of our sales agreements with customers at a fixed and determinable price and collection of payment is probable. Taxes collected from customers and remitted to governmental authorities are excluded from net sales. Sales returns and allowances are not material. |
Cost of Sales | C OST OF S ALES Cost of sales consists of all manufacturing costs, including depreciation and amortization related to assets used in the manufacturing and distribution process, inbound and outbound freight, inspection costs, purchasing costs associated with materials and packaging used in the production process and warehouse and distribution costs. |
Shipping and Handling Costs | S HIPPING AND H ANDLING C OSTS Shipping and handling costs are included in cost of sales and were approximately $41,301,000 , $46,292,000 and $49,456,000 for fiscal years 2016 , 2015 and 2014 , respectively. |
Selling, General and Administrative Expenses | S ELLING , G ENERAL AND A DMINISTRATIVE E XPENSES Selling, general and administrative expenses include salaries, wages and benefits associated with staff outside the manufacturing and distribution functions, all marketing related costs, any miscellaneous trade spending expenses not required to be included in net sales, research and development costs, depreciation and amortization related to assets outside the manufacturing and distribution process and all other non-manufacturing and non-distribution expenses. |
Research and Development | R ESEARCH AND D EVELOPMENT Research and development costs of approximately $3,025,000 , $2,809,000 and $2,587,000 were charged to expense as incurred for fiscal years 2016 , 2015 and 2014 , respectively. |
Pension and Postretirement Benefit Costs | P ENSION AND P OSTRETIREMENT B ENEFIT C OSTS We provide a defined benefit pension plan for eligible salaried and hourly employees and we make contributions to fund the plan. We also provide a postretirement health benefit plan to domestic salaried employees who qualify under the plan’s provisions. The postretirement health benefit plan is unfunded. Our pension and postretirement health benefit plans are accounted for using actuarial valuations required by ASC 715, Compensation – Retirement Benefits . The funded status of our defined pension and postretirement health benefit plans are recognized on the Consolidated Balance Sheets. Changes in the funded status that arise during the period but are not recognized as components of net periodic benefit cost are recognized within other comprehensive income, net of income tax. See Note 9 of the Notes to the Consolidated Financial Statements for additional information. |
Stock-Based Compensation | S TOCK -B ASED C OMPENSATION We account for stock options and restricted stock issued under our long term incentive plans in accordance with ASC 718, Compensation – Stock Compensation . The fair value of stock-based compensation is determined at the grant date. The related compensation expense is recognized over the appropriate vesting period. See Note 8 of the Notes to the Consolidated Financial Statements for additional information. We determined the fair value of stock options and restricted stock issued under our long term incentive plans as of the grant date. The fair value of restricted stock was determined by the closing market price of our Common Stock on the date of grant multiplied by the number of shares granted. The fair value of the stock options was estimated on the date of the grant using a Black-Scholes option valuation model that used various assumptions. The risk free interest rate was based on the U.S. Treasury yield curve in effect at the time of grant. Expected life (estimated period of time outstanding) of a grant was determined by reference to the vesting schedule, past exercise behavior and comparison with other reporting companies. The dividend rate at the date of grant was used as the best estimate of future dividends. Expected volatility was determined by calculating the standard deviation of our stock price for the five years immediately prior to the grant date. This period of time closely resembles the expected term. All stock options issued under our plans have an exercise price equal to the closing market price of our Common Stock on the date of grant. All options currently outstanding have a term of ten years. |
Income Taxes | I NCOME TAXES Deferred income tax assets and liabilities are recorded for the impact of temporary differences between the tax basis of assets and liabilities and the amounts recognized for financial reporting purposes. Deferred tax assets are reviewed and a valuation allowance is established if management believes that it is more likely than not that some portion of our deferred tax assets will not be realized. Changes in valuation allowances from period to period are included in the tax provision in the period of change. In addition to existing valuation allowances, we provide for uncertain tax positions, if necessary, when such tax positions do not meet the recognition thresholds or measurement standards prescribed by ASC 740, Income Taxes . Amounts for uncertain tax positions are adjusted when new information becomes available or when positions are effectively settled. We recognize interest and penalties accrued related to uncertain tax positions in income tax (benefit) expense. U.S. income tax expense and foreign withholding taxes are provided on remittances of foreign earnings and on unremitted foreign earnings that are not indefinitely reinvested. Where unremitted foreign earnings are indefinitely reinvested, no provision for federal or state tax expense is recorded. When circumstances change and we determine that some or all of the undistributed earnings will be remitted in the foreseeable future, a corresponding expense is accrued in the current period. See Note 6 of the Notes to the Consolidated Financial Statements for additional information about income taxes. |
New Accounting Pronouncements | N EW A CCOUNTING P RONOUNCEMENTS Recently Issued Accounting Standards In May 2014, the FASB issued guidance under ASC 606, Revenue from Contract with Customers , which establishes a single comprehensive revenue recognition model for all contracts with customers and will supersede most existing revenue guidance. This guidance requires entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to receive in exchange. In March, April and May of 2016, the FASB issued amended guidance that further clarifies the principles for recognizing revenue. Transition options include either a full or modified retrospective approach and early adoption is permitted. The implementation date for this guidance was deferred and will now be effective at the beginning of our first quarter of fiscal year 2019. While we are still in the process of evaluating the financial statement impact of the adoption of this requirement, it is not currently expected to have a material impact on our Consolidated Financial Statements based on the types of products we sell and our arrangements with customers. In August 2014, the FASB issued guidance under ASC 205, Presentation of Financial Statements - Going Concern , which defines management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. We plan to adopt this guidance in the first quarter of fiscal year 2017. This pronouncement requires additional disclosures only and we do not expect a significant impact on our consolidated financial statements. In April 2015, the FASB issued guidance under ASC 835, Simplifying the Presentation of Debt Issuance Cost. Under this amendment, entities will no longer be able to recognize debt issuance costs as an asset in the balance sheet, but instead will be required to present debt issuance costs as a direct deduction from the carrying amount of the associated debt liability. The recognition and measurement guidance for debt issuance costs are not affected by this pronouncement. We expect to reclassify for the first quarter of our fiscal year 2017 approximately $ 110,000 from Debt issuance costs to a direct deduction of Notes payable on the unaudited balance sheet as of October 31, 2016 that will be included in our quarterly report on Form 10-Q. Prior periods presented will also be restated accordingly. In July 2015, the FASB issued guidance under ASC 330, Simplifying the Measurement of Inventory. The new guidance requires inventory to be measured at the lower of cost and net realizable value, which is defined as the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. This new guidance is effective for our first quarter of fiscal year 2018 and early adoption is permitted. The guidance must be applied prospectively. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. In November 2015, the FASB issued guidance under ASC 740, Balance Sheet Classification of Deferred Taxes, which requires deferred tax liabilities and assets to be classified as noncurrent in a classified statement of financial position. This guidance is effective for our first quarter of fiscal year 2018 and early adoption is permitted. The guidance may be applied either prospectively or retrospectively to all periods presented. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements, but we do not expect a significant impact on our Consolidated Financial Statements. In January 2016, the FASB issued guidance under ASC 825, Recognition and Measurement of Financial Assets and Financial Liabilities. This guidance addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The provisions relevant to us at this time require the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes, as well as eliminates the requirement to disclose the method and significant assumptions used to estimate the fair value in such disclosure. This guidance is effective for our first quarter of fiscal year 2019 and early adoption is generally not permitted. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. In February 2016, the FASB issued guidance under ASC 842, Leases , which provides that, for leases with a term greater than 12 months, a lessee must recognize in the statement of financial position both a liability to make lease payments and an asset representing its right to use the underlying asset. Other requirements describe expense recognition, as well as financial statement presentation and disclosure. This guidance is effective for our first quarter of fiscal year 2020 using a modified retrospective approach, which includes a number of optional practical expedients. Early adoption is permitted. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. In March 2016, the FASB issued guidance under ASC 718, Compensation-Stock Compensation, which simplifies several aspects of the accounting for share-based payment transactions, including accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. The new guidance also clarifies the statement of cash flows presentation for certain components of share-based awards. This guidance is effective for our first quarter of fiscal year 2018, with early adoption permitted. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. In June 2016, the FASB issued guidance under ASC 326, Financial Instruments-Credit Losses , which requires companies to utilize an impairment model for most financial assets measured at amortized cost and certain other financial instruments, which include trade and other receivables, loans and held-to-maturity debt securities, to record an allowance for credit risk based on expected losses rather than incurred losses. In addition, this new guidance changes the recognition method for credit losses on available-for-sale debt securities, which can occur as a result of market and credit risk, as well as additional disclosures. In general, this guidance will require modified retrospective adoption for all outstanding instruments that fall under this guidance. This guidance is effective for our first quarter of fiscal year 2021. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. There have been no other accounting pronouncements issued but not yet adopted by us which are expected to have a material impact on our Consolidated Financial Statements. |
OPERATING SEGMENTS Level 2 (Pol
OPERATING SEGMENTS Level 2 (Policy) | 12 Months Ended |
Jul. 31, 2016 | |
Accounting Policies [Abstract] | |
Segment Reporting | We have two reportable operating segments: (1) Retail and Wholesale Products Group and (2) Business to Business Products Group. These operating segments are managed separately and each segment's major customers have different characteristics. The Retail and Wholesale Products Group customers include mass merchandisers, wholesale clubs, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores, distributors of industrial cleanup and automotive products, environmental service companies and sports field product users. The Business to Business Products Group customers include: processors and refiners of edible oils, petroleum-based oils and biodiesel fuel; manufacturers of animal feed and agricultural chemicals; distributors of animal health and nutrition products; and marketers of consumer products. |
FINANCIAL INSTRUMENTS Fair Valu
FINANCIAL INSTRUMENTS Fair Value (Policies) | 12 Months Ended |
Jul. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement, Policy [Policy Text Block] | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs used to measure fair value are prioritized into one of three categories based on the lowest level of input that is significant to the fair value measurement. Categories in the hierarchy are as follows: Level 1: Financial assets and liabilities whose values are based on quoted market prices in active markets for identical assets or liabilities. Level 2: Financial assets and liabilities whose values are based on: 1) Quoted prices for similar assets or liabilities in active markets. 2) Quoted prices for identical or similar assets or liabilities in markets that are not active. 3) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability. Level 3: Financial assets and liabilities whose values are based on valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs may reflect estimates of the assumptions that market participants would use in valuing the financial assets and liabilities. |
STOCK-BASED COMPENSATION STOCK-
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION (Policies) | 12 Months Ended |
Jul. 31, 2016 | |
Accounting Policies [Abstract] | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | S TOCK -B ASED C OMPENSATION We account for stock options and restricted stock issued under our long term incentive plans in accordance with ASC 718, Compensation – Stock Compensation . The fair value of stock-based compensation is determined at the grant date. The related compensation expense is recognized over the appropriate vesting period. See Note 8 of the Notes to the Consolidated Financial Statements for additional information. We determined the fair value of stock options and restricted stock issued under our long term incentive plans as of the grant date. The fair value of restricted stock was determined by the closing market price of our Common Stock on the date of grant multiplied by the number of shares granted. The fair value of the stock options was estimated on the date of the grant using a Black-Scholes option valuation model that used various assumptions. The risk free interest rate was based on the U.S. Treasury yield curve in effect at the time of grant. Expected life (estimated period of time outstanding) of a grant was determined by reference to the vesting schedule, past exercise behavior and comparison with other reporting companies. The dividend rate at the date of grant was used as the best estimate of future dividends. Expected volatility was determined by calculating the standard deviation of our stock price for the five years immediately prior to the grant date. This period of time closely resembles the expected term. All stock options issued under our plans have an exercise price equal to the closing market price of our Common Stock on the date of grant. All options currently outstanding have a term of ten years. |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Short-Term Investments | The table below shows the composition of short-term investments as of July 31 (in thousands): 2016 2015 U.S. Treasury securities $ 5,998 $ — Certificates of deposit 4,186 2,190 Short-term investments $ 10,184 $ 2,190 |
Inventories | The composition of inventories was as follows as of July 31 (in thousands): 2016 2015 Finished goods $ 14,032 $ 12,117 Packaging 4,672 4,735 Other 4,547 4,517 Inventories $ 23,251 $ 21,369 |
Estimated Intangible Amortization Expense | Our estimated intangible amortization expense for the next five fiscal years is as follows (in thousands): 2017 $ 1,212 2018 $ 1,003 2019 $ 816 2020 $ 646 2021 $ 462 |
Acquired Finite-Lived Intangible Assets Weighted Average Amortization Period | The weighted average amortization period of our intangible assets subject to amortization is as follows (in years): Weighted Average Amortization Period Trademarks and patents 11.5 Debt issuance costs 4.1 Customer list 7.3 Total intangible assets subject to amortization 7.3 |
Property, Plant and Equipment Estimated Useful Lives | Years Buildings and leasehold improvements 3 - 39 Machinery and equipment Packaging 2 - 20 Processing 2 - 25 Mining and other 3 - 15 Office furniture and equipment 2 - 12 Vehicles 3 - 15 |
ACQUISITION ProForma (Tables)
ACQUISITION ProForma (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Proforma [Abstract] | |
Pro Forma Information | The summarized proforma financial information below presents the combined results of operations as if the acquisition of MFM had occurred as of August 1, 2012. MFM’s pre-acquisition results have been added to Oil-Dri’s historical results and include certain adjustments related to the acquisition, such as amortization of intangible assets and depreciation expense. These proforma results do not include any anticipated cost synergies and do not reflect the actual results of operations that would have been achieved, nor are they indicative of future results of operations. The following proforma results are presented for comparative purposes only for the twelve months ended July 31, 2014 (unaudited) (in thousands, except per share amounts): 2014 Proforma net sales $ 271,279 Proforma net income $ 7,834 Proforma net income per share - Basic Common $ 1.19 Proforma net income per share - Basic Class B $ 0.90 Proforma net income per share - Diluted $ 1.11 The net sales for MFM-related customers after the acquisition that are included in our Consolidated Statements of Operations for fiscal 2014 were approximately $10,100,000 . The amount of net income specifically attributed to these customers cannot be determined because MFM’s customers’ orders were fulfilled in our existing cat litter manufacturing plants and with our existing sales team and logistics processes. |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
OPERATING SEGMENTS [Abstract] | |
Segment Reporting Information | Net sales and operating income for each segment are provided below. Revenues by product line are not provided because it would be impracticable to do so. The accounting policies of the segments are the same as those described in the Note 1 of the Notes to the Consolidated Financial Statements. We do not rely on any operating segment asset allocations and we do not consider them meaningful because of the shared nature of our production facilities; however, we have estimated the segment asset allocations below for those assets for which we can reasonably determine. The unallocated asset category is the remainder of our total assets. The asset allocation is estimated and is not a measure used by our chief operating decision maker about allocating resources to the operating segments or in assessing their performance. The corporate expenses line represents certain unallocated expenses, including primarily salaries, wages and benefits, purchased services, rent, utilities and depreciation and amortization associated with corporate functions such as research and development, information systems, finance, legal, human resources and customer service. Corporate expenses also include the annual incentive plan bonus accrual. July 31, Assets 2016 2015 2014 (in thousands) Business to Business Products $ 61,007 $ 55,767 $ 53,823 Retail and Wholesale Products 91,626 96,043 95,712 Unallocated assets 52,300 38,221 36,669 Total Assets $ 204,933 $ 190,031 $ 186,204 Year Ended July 31, Net Sales Income 2016 2015 2014 2016 2015 2014 (in thousands) Business to Business Products $ 96,444 $ 92,326 $ 94,286 $ 33,464 $ 29,406 $ 26,654 Retail and Wholesale Products 165,869 169,076 172,027 5,009 5,206 3,568 Total sales $ 262,313 $ 261,402 $ 266,313 Corporate expenses (23,060 ) (19,459 ) (17,804 ) Income from operations 15,413 15,153 12,418 Total other expense, net (1,056 ) (984 ) (1,081 ) Income before income taxes 14,357 14,169 11,337 Income taxes (744 ) (2,801 ) (2,981 ) Net income $ 13,613 $ 11,368 $ 8,356 |
Financial information by geographic region | The following is a summary by fiscal year of financial information by geographic region (in thousands): 2016 2015 2014 Sales to unaffiliated customers by: Domestic operations $ 251,054 $ 250,377 $ 255,067 Foreign subsidiaries $ 11,259 $ 11,025 $ 11,246 Sales or transfers between geographic areas: Domestic operations $ 5,723 $ 5,606 $ 4,285 Income (Loss) before income taxes: Domestic operations $ 15,129 $ 15,389 $ 12,209 Foreign subsidiaries $ (772 ) $ (1,220 ) $ (872 ) Net Income (Loss): Domestic operations $ 14,574 $ 12,629 $ 9,064 Foreign subsidiaries $ (961 ) $ (1,261 ) $ (708 ) Identifiable assets: Domestic operations $ 197,636 $ 182,269 $ 178,061 Foreign subsidiaries $ 7,297 $ 7,762 $ 8,143 |
Largest Customer Information | Sales to Walmart, our largest customer, are included in our Retail and Wholesale Products Group. The percentage of consolidated net sales and net accounts receivable attributed to Walmart are shown in the table below: 2016 2015 2014 Net sales for the years ended July 31 19% 18% 19% Net accounts receivable as of July 31 29% 27% 28% |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Notes Payable [Abstract] | |
Schedule of Notes Payable | The composition of notes payable is as follows as of July 31 (in thousands): 2016 2015 Senior notes payable in annual principal installments on August 1: $3,083 in each fiscal year 2016 through 2021. Interest is payable semiannually at an annual rate of 3.96% $ 15,416 $ 18,500 Senior notes mature on October 15, 2015. Interest is payable semiannually at an annual rate of 5.89% — 400 Total notes payable 15,416 18,900 Less current maturities of notes payable (3,083 ) (3,483 ) Noncurrent notes payable $ 12,333 $ 15,417 |
Schedule of Maturities | The following is a schedule by fiscal year of future maturities of notes payable as of July 31, 2016 (in thousands): 2017 $ 3,083 2018 3,084 2019 3,083 2020 3,083 2021 3,083 $ 15,416 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
FAIR VALUE [Abstract] | |
Schedule of Fair Value | The following table summarizes our financial assets and liabilities that were reported at fair value by level within the fair value hierarchy (in thousands): Fair Value at July 31, 2016 Fair Value at July 31, 2015 Level 1 Level 1 Assets Cash equivalents $ 7,626 $ 9,297 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
INCOME TAXES [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income tax expense (benefit) by fiscal year consists of the following (in thousands): 2016 2015 2014 Current Federal $ 3,298 $ 4,296 $ 1,267 Foreign 15 (40 ) 63 State 1,051 1,081 308 Current Income Tax Total 4,364 5,337 1,638 Deferred Federal (3,277 ) (2,242 ) 1,381 Foreign 174 68 (215 ) State (517 ) (362 ) 177 Deferred Income Tax Total (3,620 ) (2,536 ) 1,343 Total Income Tax Expense $ 744 $ 2,801 $ 2,981 |
Schedule of Effective Income Tax Rate Reconciliation | Principal reasons for variations between the statutory federal rate and the effective rates by fiscal year were as follows: 2016 2015 2014 U.S. federal income tax rate 35.0 % 35.0 % 34.0 % Depletion deductions allowed for mining (13.8 ) (9.5 ) (12.2 ) State income tax expense, net of federal tax expense 2.5 3.4 2.8 Difference in effective tax rate of foreign subsidiaries 1.2 2.2 0.9 Empowerment zone credits — — (0.5 ) Valuation allowance (decrease) increase (11.7 ) (11.7 ) 3.2 Change in federal tax rate applied to deferred tax assets and liabilities (2.5 ) — — Deduction for domestic production activities (2.7 ) (1.8 ) (1.4 ) Other (2.8 ) 2.2 (0.5 ) Effective income tax rate 5.2 % 19.8 % 26.3 % |
Schedule of Deferred Tax Assets and Liabilities | The Consolidated Balance Sheets included the following tax effects of cumulative temporary differences as of July 31 (in thousands): ` 2016 2015 Assets Liabilities Assets Liabilities Depreciation $ — $ 5,924 $ — $ 6,749 Deferred compensation 4,684 — 3,936 — Postretirement benefits 11,935 — 8,242 — Allowance for doubtful accounts 172 — 237 — Deferred marketing expenses 365 — — 19 Other assets 923 — 41 — Accrued expenses 3,100 — 1,949 — Tax credits 1,060 — 1,545 — Amortization 216 — 37 — Inventories 247 — 512 — Depletion — 476 — 473 Stock-based compensation 252 — 162 — Reclamation 364 — 283 — Other assets – foreign 890 — 1,006 — Valuation allowance (1,170 ) — (2,210 ) — Total deferred taxes $ 23,038 $ 6,400 $ 15,740 $ 7,241 |
Summary of Income Tax Contingencies | Reconciliations of the beginning and ending amount of UTBs by fiscal year were as follows (in thousands): 2016 2015 2014 Gross balance – beginning of year $ — $ — $ 273 Gross decreases - tax positions from prior years — — (273 ) Gross balance – end of year $ — $ — $ — |
STOCKHOLDERS EQUITY Accumulated
STOCKHOLDERS EQUITY Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) | The following table summarizes the changes in accumulated other comprehensive income by component (in thousands): Unrealized Gain on Marketable Securities Pension and Postretirement Health Benefits Cumulative Translation Adjustment Total Accumulated Other Comprehensive (Loss) Income Balance as of July 31, 2014 $ 114 $ (8,632 ) $ 255 (8,263 ) Other comprehensive (loss) income before reclassifications, net of tax (9 ) (730 ) b) (525 ) (1,264 ) Amounts reclassified from accumulated other comprehensive income, net of tax (105 ) a) 387 c) — 282 Net current-period other comprehensive (loss) income , net of tax (114 ) (343 ) (525 ) (982 ) Balance as of July 31, 2015 $ — $ (8,975 ) $ (270 ) $ (9,245 ) Other comprehensive (loss) income before reclassifications, net of tax — (5,501 ) b) 115 (5,386 ) Amounts reclassified from accumulated other comprehensive income, net of tax — 609 c) — 609 Net current-period other comprehensive (loss) income, net of tax — (4,892 ) 115 (4,777 ) Balance as of July 31, 2016 $ — $ (13,867 ) $ (155 ) $ (14,022 ) a) Amount is included in the Consolidated Statements of Operations on the Other, net line item. The cost of the related securities was based on specific identification. b) Amounts are net of taxes of $3,372,000 and $447,000 in fiscal years 2016 and 2015 , respectively. and are included in Other Comprehensive Loss. c) Amounts are net of taxes of $374,000 and $239,000 in fiscal years 2016 and 2015 , respectively. Amounts are included in the components of net periodic benefit cost for the pension and postretirement health plans. See Note 9 of the Notes to the Consolidated Financial Statements for further information about pension and postretirement health benefits. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
STOCK-BASED COMPENSATION [Abstract] | |
Schedule of stock option plans transactions | A summary of stock option transactions under the plans is shown below. Number of Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Options outstanding and exercisable at July 31, 2013 60 $ 14.25 2.3 $ 1,059 Exercised (8 ) $ 12.47 $ 151 Forfeited (8 ) $ 9.43 Options outstanding and exercisable at July 31, 2014 44 $ 15.43 1.9 $ 611 Exercised (3 ) $ 15.37 $ 45 Options outstanding and exercisable at July 31, 2015 41 $ 15.43 0.9 $ 447 Exercised (31 ) $ 14.93 $ 469 Options outstanding and exercisable at July 31, 2016 10 $ 17.00 0.3 $ 205 |
Schedule of summary of restricted stock | A summary of restricted stock transactions under the plans is shown below. Number of Shares (in thousands) Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Unamortized Expense (in thousands) Non-vested restricted stock outstanding at July 31, 2013 117 $ 22.24 2.1 $ 1,824 Granted 51 $ 34.18 Vested (40 ) $ 21.50 Forfeited (6 ) $ 25.41 Non-vested restricted stock outstanding at July 31, 2014 122 $ 27.31 2.4 $ 2,226 Granted 11 $ 28.68 Vested (45 ) $ 23.16 Forfeited (14 ) $ 34.05 Non-vested restricted stock outstanding at July 31, 2015 74 $ 28.83 2.1 $ 931 Granted 166 $ 28.62 Vested (41 ) $ 26.46 Forfeited (5 ) $ 31.56 Non-vested restricted stock outstanding at July 31, 2016 194 $ 29.09 3.8 $ 4,282 |
PENSION AND OTHER POSTRETIREM34
PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |
Schedule of Obligations and Funded Status | The following tables provide a reconciliation of changes in the plans’ benefit obligations, assets’ fair values and funded status by fiscal year (in thousands): Pension Benefits Postretirement Health Benefits 2016 2015 2016 2015 Change in benefit obligation : Benefit obligation, beginning of year $ 46,749 $ 44,367 $ 2,362 $ 2,770 Service cost 1,502 1,606 93 133 Interest cost 1,928 1,855 82 106 Actuarial loss (gain) 6,304 96 413 (622 ) Benefits paid (1,359 ) (1,175 ) (204 ) (25 ) Benefit obligation, end of year 55,124 46,749 2,746 2,362 Change in plan assets: Fair value of plan assets, beginning of year 25,593 24,804 — — Actual return on plan assets (234 ) 174 — — Employer contribution 1,264 1,790 204 25 Benefits paid (1,359 ) (1,175 ) (204 ) (25 ) Fair value of plan assets, end of year 25,264 25,593 — — Funded status, recorded in Consolidated Balance Sheets $ (29,860 ) $ (21,156 ) $ (2,746 ) $ (2,362 ) |
Schedule of Amounts Recognized in Balance Sheet | The following table shows amounts recognized in the Consolidated Balance Sheets as of July 31 (in thousands): Pension Benefits Postretirement Health Benefits 2016 2015 2016 2015 Deferred income taxes $ 10,894 $ 7,376 $ 1,041 $ 866 Other current liabilities $ — $ — $ (114 ) $ (89 ) Other noncurrent liabilities $ (29,860 ) $ (21,156 ) $ (2,632 ) $ (2,273 ) Accumulated other comprehensive loss (income) –net of tax: Net actuarial loss $ 13,546 $ 8,909 $ 348 $ 92 Prior service cost (income) $ 4 $ 9 $ (31 ) $ (35 ) |
Schedule of Net Benefit Costs | The following table shows the components of the net periodic pension and postretirement health benefit costs by fiscal year (in thousands): Pension Cost Postretirement Health Benefit Cost 2016 2015 2014 2016 2015 2014 Service cost $ 1,502 $ 1,606 $ 1,425 $ 93 $ 133 $ 111 Interest cost 1,928 1,855 1,761 82 106 110 Expected return on plan assets (1,923 ) (1,877 ) (1,715 ) — — — Amortization of: Net transition obligation — — — — 1 16 Prior service costs (income) 8 10 13 (6 ) (6 ) (6 ) Other actuarial loss 981 584 343 — 37 24 Net periodic benefit cost $ 2,496 $ 2,178 $ 1,827 $ 169 $ 271 $ 255 |
Schedule of Amounts Recognized in Other Comprehensive Income | The following table shows amounts, net of tax, that are recognized in other comprehensive income by fiscal year (in thousands): Pension Benefits Postretirement Health Benefits 2016 2015 2016 2015 Net actuarial loss (gain) $ 5,245 $ 1,115 $ 256 $ (385 ) Amortization of: Prior service (cost) income (5 ) (6 ) 4 4 Net transition obligation — — — (1 ) Amortization of actuarial loss (608 ) (361 ) — (23 ) Total recognized in other comprehensive loss (income) $ 4,632 $ 748 $ 260 $ (405 ) |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The following table shows amortization amounts, net of tax, expected to be recognized in fiscal year 2017 in accumulated other comprehensive income (in thousands): Amortization of: Pension Benefits Postretirement Health Benefits Net actuarial loss $ 1,063 $ 16 Prior service cost (income) 2 (4 ) Total to be recognized as other comprehensive loss $ 1,065 $ 12 |
Schedule of Expected Benefit Payments | The following table shows the estimated future benefit payments by fiscal year (in thousands): Pension Benefits Postretirement Health Benefits 2017 $ 1,389 $ 114 2018 $ 1,477 $ 72 2019 $ 1,561 $ 88 2020 $ 1,575 $ 128 2021 $ 1,664 $ 157 2022-26 $ 9,895 $ 1,161 |
Schedule of Assumptions Used | The assumptions used in the previous calculations by fiscal year were as follows: Pension Benefits Postretirement Health Benefits 2016 2015 2016 2015 Discount rate for net periodic benefit costs 4.22% 4.28% 3.51% 3.87% Discount rate for year-end obligations 3.36% 4.22% 2.71% 3.51% Rate of increase in compensation levels for net periodic benefit costs 3.50% 3.50% — — Rate of increase in compensation levels for year-end obligations 3.50% 3.50% — — Long-term expected rate of return on assets 7.50% 7.50% — — |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | The following table reflects the effect on postretirement health costs and accruals in fiscal year 2016 of a one-percentage point change in the assumed health care cost trend (in thousands): One-Percentage Point Increase One-Percentage Point Decrease Effect on total service and interest cost $23 $(20) Effect on accumulated postretirement benefit obligation $293 $(258) |
Schedule of Allocation of Plan Assets | The targeted allocation percentages of plan assets is shown below for fiscal year 2017 and the actual allocation as of July 31: Asset Allocation Target fiscal 2017 2016 2015 Cash and accrued income 2% —% 12% Fixed income 38% 47% 29% Equity 60% 53% 59% The following table sets forth by level, within the fair value hierarchy, the Pension Plan's assets carried at fair value (in thousands): Fair Value At July 31, 2016 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Asset Class Cash and cash equivalents (a) $ 48 $ 48 $ — Equity securities (b) : U.S. companies 8,132 4,604 3,528 International companies 1,946 1,946 — Equity securities - international mutual funds: Developed market (c) 3,258 — 3,258 Fixed Income: U.S. Treasuries 2,244 — 2,244 Bonds (f) 5,692 — 5,692 Government sponsored entities (h) 2,894 — 2,894 Money market fund (j) 1,050 — 1,050 Total $ 25,264 $ 6,598 $ 18,666 Fair Value At July 31, 2015 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Asset Class Cash and cash equivalents (a) $ 2,678 $ 2,678 $ — Equity securities (b) : U.S. companies 9,141 9,119 22 International companies 3,178 3,178 — Equity securities - international mutual funds: Developed market (c) 1,289 — 1,289 Emerging markets (d) 331 — 331 Commodities (e) 267 — 267 Fixed Income: U.S. Treasuries 3,923 — 3,923 Bonds (f) 1,751 — 1,751 Floating rate debt (g) 855 — 855 Government sponsored entities (h) 292 — 292 Multi-strategy bond fund (i) 895 — 895 Other (k) 993 — 993 Total $ 25,593 $ 14,975 $ 10,618 (a) Cash and cash equivalents consists of highly liquid investments which are traded in active markets. (b) This class represents equities traded on regulated exchanges, as well as funds that invest in a portfolio of such stocks. (c) These mutual funds seek long-term capital growth by investing no less than 80% of their assets in stocks of non- U.S. companies that are primarily in developed markets, but also may invest in emerging and less developed markets. (d) These mutual funds seek long-term capital growth by investing at least 80% of their assets in stocks of companies located in Asia, excluding Japan. (e) The majority of the investments in this class seek maximum real return by investing primarily in commodity-linked derivative instruments. Assets not invested in commodity-linked instruments may be invested in inflation-indexed securities and other fixed income instruments. (f) This class includes bonds of U.S. and non-U.S. corporate issuers from diverse industries and bonds of foreign municipalities. (g) This fund invests at least 80% of its net assets in first- and second-lien senior floating rate debt securities that are generally rated below investment grade. The fund may invest up to 20% of its net assets in debt securities that are lower than a senior claim on collateral and up to 20% of its net assets in senior loans made to non-U.S. borrowers. The fund may also include derivative instruments. (h) This class represents a beneficial ownership interest in a pool of single-family residential mortgage loans. These investments are generally not backed by the full faith and credit of the United States government, except for securities valued for $803,776 in our portfolio. (i) This class invests at least 80% of its net assets in bonds and other fixed income instruments issued by governmental or private-sector entities. More than 50% of its net assets are invested in mortgage-backed securities. The fund may invest up to 33 1/3 % of its net assets in high-yield bonds, bank loans and assignments and credit default swaps. (j) These money market mutual funds seek to provide current income consistent with liquidity and stability of principal by investing in a diversified portfolio of high quality, short-term, dollar-denominated debt securities. These funds may include securities issued or guaranteed as to principal and interest by the U.S. government or its agencies, short-term securities issued by domestic or foreign banks, domestic and dollar-denominated foreign commercial papers, and other short-term corporate obligations and obligations issued or guaranteed by one or more foreign governments. (k) This class seeks long-term positive returns by employing a number of arbitrage and alternative investment strategies. The portfolio of instruments may include equities, convertible securities, debt securities, warrants, options, swaps, future contracts, forwards or other types of derivative instruments. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The following is a schedule by fiscal year of future minimum rent requirements under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of July 31, 2016 (in thousands): 2017 $ 1,530 2018 $ 1,366 2019 $ 1,096 2020 $ 847 2021 $ 728 Later years $ 9,166 |
Schedule of Rent Expense | The following schedule shows the composition of total rent expense by fiscal year for all operating leases, including those with terms of one month or less which were not renewed (in thousands): 2016 2015 2014 Vehicles and Railcars $ 1,439 $ 1,559 $ 1,818 Office facilities 945 928 890 Warehouse facilities 419 311 235 Mining properties: Minimum 124 123 292 Contingent (1) 239 239 162 Other 61 46 108 $ 3,227 $ 3,206 $ 3,505 (1) Contingent mining royalty payments are determined based on the tons of raw clay mined. |
SELECTED QUARTERLY FINANCIAL 36
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | |
Schedule of Quarterly Financial Information | A summary of selected information for fiscal years 2016 and 2015 is as follows (in thousands, except for per share amounts): Fiscal Year 2016 Quarter Ended October 31 January 31 April 30 July 31 Fiscal 2016 Net Sales $ 67,795 $ 65,367 $ 64,235 $ 64,916 $ 262,313 Gross Profit $ 20,653 $ 19,062 $ 18,568 $ 18,866 $ 77,149 Net Income (Loss) $ 5,423 $ 3,821 $ (892 ) $ 5,261 $ 13,613 Net Income Per Share Basic Common $ 0.82 $ 0.57 $ (0.14 ) $ 0.78 $ 2.04 Basic Class B Common $ 0.61 $ 0.43 $ (0.10 ) $ 0.59 $ 1.53 Diluted Common $ 0.75 $ 0.53 $ (0.13 ) $ 0.72 $ 1.87 Dividends Per Share Common $ 0.2100 $ 0.2100 $ 0.2100 $ 0.2200 $ 0.8500 Class B Common $ 0.1575 $ 0.1575 $ 0.1575 $ 0.1650 $ 0.6375 Common Stock Price Range High $ 31.61 $ 38.92 $ 38.43 $ 37.67 Low $ 21.65 $ 28.42 $ 32.24 $ 29.89 Fiscal Year 2015 Quarter Ended October 31 January 31 April 30 July 31 Fiscal 2015 Net Sales $ 66,044 $ 64,643 $ 65,196 $ 65,519 $ 261,402 Gross Profit $ 13,769 $ 15,233 $ 14,433 $ 16,722 $ 60,157 Net Income $ 2,120 $ 2,797 $ 1,385 $ 5,066 $ 11,368 Net Income Per Share Basic Common $ 0.32 $ 0.43 $ 0.21 $ 0.77 $ 1.73 Basic Class B Common $ 0.24 $ 0.32 $ 0.16 $ 0.58 $ 1.30 Diluted Common $ 0.30 $ 0.39 $ 0.19 $ 0.71 $ 1.59 Dividends Per Share Common $ 0.2000 $ 0.2000 $ 0.2000 $ 0.2100 $ 0.8100 Class B Common $ 0.1500 $ 0.1500 $ 0.1500 $ 0.1575 $ 0.6075 Common Stock Price Range High $ 31.30 $ 32.93 $ 34.19 $ 33.44 Low $ 24.02 $ 26.60 $ 28.30 $ 25.92 |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Short-Term Investments (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Investment | ||
Short-term investments | $ 10,184 | $ 2,190 |
U.S. Treasury Securities | ||
Investment | ||
Short-term investments | 5,998 | 0 |
Certificates of Deposit | ||
Investment | ||
Short-term investments | $ 4,186 | $ 2,190 |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Inventories (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Finished goods | $ 14,032 | $ 12,117 |
Packaging | 4,672 | 4,735 |
Other | 4,547 | 4,517 |
Inventories | $ 23,251 | $ 21,369 |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Intangible Assets Amortization Expense (Details) $ in Thousands | Jul. 31, 2016USD ($) |
Estimated Intangible Amortization Expense | |
2,017 | $ 1,212 |
2,018 | 1,003 |
2,019 | 816 |
2,020 | 646 |
2,021 | $ 462 |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Intangible Assets Weighted Average Amortization Period (Details) | 12 Months Ended |
Jul. 31, 2016 | |
Finite-Lived Intangible Assets | |
Finite-lived Intangible Assets, Weighted Average Amortization Period | 7 years 3 months 11 days |
Trademarks and patents | |
Finite-Lived Intangible Assets | |
Finite-lived Intangible Assets, Weighted Average Amortization Period | 11 years 5 months 21 days |
Debt issuance costs | |
Finite-Lived Intangible Assets | |
Finite-lived Intangible Assets, Weighted Average Amortization Period | 4 years 1 month 2 days |
Customer list | |
Finite-Lived Intangible Assets | |
Finite-lived Intangible Assets, Weighted Average Amortization Period | 7 years 3 months 1 day |
SUMMARY OF SIGNIFICANT ACCOUN41
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Property, Plant and Equipment (Details) | 12 Months Ended |
Jul. 31, 2016 | |
Minimum | Buildings and leasehold improvements | |
Property, Plant and Equipment | |
Estimated useful life | 3 years |
Minimum | Machinery and Equipment - Packaging | |
Property, Plant and Equipment | |
Estimated useful life | 2 years |
Minimum | Machinery and Equipment - Processing | |
Property, Plant and Equipment | |
Estimated useful life | 2 years |
Minimum | Machinery and Equipment - Mining and Other | |
Property, Plant and Equipment | |
Estimated useful life | 3 years |
Minimum | Office furniture and equipment | |
Property, Plant and Equipment | |
Estimated useful life | 2 years |
Minimum | Vehicles | |
Property, Plant and Equipment | |
Estimated useful life | 3 years |
Maximum | Buildings and leasehold improvements | |
Property, Plant and Equipment | |
Estimated useful life | 39 years |
Maximum | Machinery and Equipment - Packaging | |
Property, Plant and Equipment | |
Estimated useful life | 20 years |
Maximum | Machinery and Equipment - Processing | |
Property, Plant and Equipment | |
Estimated useful life | 25 years |
Maximum | Machinery and Equipment - Mining and Other | |
Property, Plant and Equipment | |
Estimated useful life | 15 years |
Maximum | Office furniture and equipment | |
Property, Plant and Equipment | |
Estimated useful life | 12 years |
Maximum | Vehicles | |
Property, Plant and Equipment | |
Estimated useful life | 15 years |
SUMMARY OF SIGNIFICANT ACCOUN42
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Narrative (Details) - USD ($) | 12 Months Ended | |||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | Nov. 02, 2013 | |
Short-term investments original maturity maximum | 1 year | |||
Maximum maturity of cash equivalents | 3 months | |||
Inventory obsolescence reserves | $ 806,000 | $ 521,000 | ||
Amortization of intangible assets | 1,410,000 | 1,642,000 | ||
Indefinite-lived trademarks | 376,000 | |||
Goodwill | 9,034,000 | 9,034,000 | $ 3,872,000 | |
Goodwill impairment | 0 | 0 | $ 0 | |
Stripping costs | 3,020,000 | 2,939,000 | 4,179,000 | |
Pre-production overburden removal costs | 0 | 0 | ||
Land | 13,659,000 | 13,285,000 | ||
Mineral rights | 2,165,000 | 2,165,000 | ||
Prepaid royalties | 1,103,000 | 1,068,000 | ||
Depreciation | 10,782,000 | 10,352,000 | 9,289,000 | |
Interest Costs Capitalized | 72,000 | 0 | 0 | |
Pre-production development costs | 0 | 0 | ||
Impairment of property, plant and equipment | 0 | 0 | 0 | |
Advertising expense | 18,083,000 | 5,154,000 | 8,886,000 | |
Shipping and handling costs | 41,301,000 | 46,292,000 | 49,456,000 | |
Research and development costs | 3,025,000 | $ 2,809,000 | $ 2,587,000 | |
New accounting pronouncement, expected quantification of adoption | $ 110,000 | |||
Minimum | ||||
Amortization period of intangible assets (years) | 10 years | |||
Maximum | ||||
Amortization period of intangible assets (years) | 20 years | |||
Retail and Wholesale Products | ||||
Goodwill | $ 5,775,000 | |||
Business to Business Products | ||||
Goodwill | $ 3,259,000 |
ACQUISITION Proforma (Details)
ACQUISITION Proforma (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Jul. 31, 2014USD ($)$ / shares | |
Business Acquisition | |
Proforma net sales | $ | $ 271,279 |
Proforma net income | $ | $ 7,834 |
Proforma net income per share - Diluted | $ 1.11 |
Common Stock | |
Business Acquisition | |
Proforma net income per share - Basic | 1.19 |
Common Class B | |
Business Acquisition | |
Proforma net income per share - Basic | $ 0.90 |
ACQUISITION Consideration Trans
ACQUISITION Consideration Transferred and Assets Acquired (Details) - USD ($) | 12 Months Ended | |||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2016 | Nov. 02, 2013 | |
Acquisition [Abstract] | ||||
Consideration transferred: Cash | $ 12,505,000 | |||
Goodwill | $ 9,034,000 | $ 9,034,000 | 3,872,000 | |
Identifiable assets acquired: Customer list | 7,784,000 | |||
Identifiable assets acquired: Inventories | 664,000 | |||
Identifiable assets acquired: Equipment | 300,000 | |||
Identifiable assets acquired: Other current assets | 130,000 | |||
Contingent consideration - Obligation for land preparation costs | 500,000 | |||
Contingent consideration - Receivable for proceeds on land sale | $ 255,000 | |||
Contingent consideration difference upon settlement, net | $ 113,000 | |||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 10,100,000 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Segment Reporting Information | |||||||||||
Assets | $ 204,933 | $ 190,031 | $ 204,933 | $ 190,031 | $ 186,204 | ||||||
Net Sales | 64,916 | $ 64,235 | $ 65,367 | $ 67,795 | 65,519 | $ 65,196 | $ 64,643 | $ 66,044 | 262,313 | 261,402 | 266,313 |
Corporate Expenses | (23,060) | (19,459) | (17,804) | ||||||||
Income from Operations | 15,413 | 15,153 | 12,418 | ||||||||
Total Other Expense, Net | (1,056) | (984) | (1,081) | ||||||||
Income before Income Taxes | 14,357 | 14,169 | 11,337 | ||||||||
Income Taxes | (744) | (2,801) | (2,981) | ||||||||
Net Income | 13,613 | 11,368 | 8,356 | ||||||||
Business to Business Products | |||||||||||
Segment Reporting Information | |||||||||||
Assets | 61,007 | 55,767 | 61,007 | 55,767 | 53,823 | ||||||
Segment Net Sales | 96,444 | 92,326 | 94,286 | ||||||||
Segment Income | 33,464 | 29,406 | 26,654 | ||||||||
Retail and Wholesale Products | |||||||||||
Segment Reporting Information | |||||||||||
Assets | 91,626 | 96,043 | 91,626 | 96,043 | 95,712 | ||||||
Segment Net Sales | 165,869 | 169,076 | 172,027 | ||||||||
Segment Income | 5,009 | 5,206 | 3,568 | ||||||||
Unallocated Assets | |||||||||||
Segment Reporting Information | |||||||||||
Assets | $ 52,300 | $ 38,221 | $ 52,300 | $ 38,221 | $ 36,669 |
OPERATING SEGMENTS Financial In
OPERATING SEGMENTS Financial Information by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Financial Information by Geographic Region | |||||||||||
Sales to unaffiliated customers | $ 64,916 | $ 64,235 | $ 65,367 | $ 67,795 | $ 65,519 | $ 65,196 | $ 64,643 | $ 66,044 | $ 262,313 | $ 261,402 | $ 266,313 |
Net Income (Loss) | 5,261 | $ (892) | $ 3,821 | $ 5,423 | 5,066 | $ 1,385 | $ 2,797 | $ 2,120 | 13,613 | 11,368 | 8,356 |
Identifiable assets | 204,933 | 190,031 | 204,933 | 190,031 | 186,204 | ||||||
Domestic Operations | |||||||||||
Financial Information by Geographic Region | |||||||||||
Sales to unaffiliated customers | 251,054 | 250,377 | 255,067 | ||||||||
Sales or transfers between geographic areas | 5,723 | 5,606 | 4,285 | ||||||||
Income (Loss) before income taxes | 15,129 | 15,389 | 12,209 | ||||||||
Net Income (Loss) | 14,574 | 12,629 | 9,064 | ||||||||
Identifiable assets | 197,636 | 182,269 | 197,636 | 182,269 | 178,061 | ||||||
Foreign subsidiaries | |||||||||||
Financial Information by Geographic Region | |||||||||||
Sales to unaffiliated customers | 11,259 | 11,025 | 11,246 | ||||||||
Income (Loss) before income taxes | (772) | (1,220) | (872) | ||||||||
Net Income (Loss) | (961) | (1,261) | (708) | ||||||||
Identifiable assets | $ 7,297 | $ 7,762 | $ 7,297 | $ 7,762 | $ 8,143 |
OPERATING SEGMENTS Largest Cust
OPERATING SEGMENTS Largest Customer (Details) - Customer, Walmart | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Net sales for the years ended July 31 | |||
Revenue, Major customer | |||
Concentration risk, percentage | 19.00% | 18.00% | 19.00% |
Net accounts receivable as of July 31 | |||
Revenue, Major customer | |||
Concentration risk, percentage | 29.00% | 27.00% | 28.00% |
OPERATING SEGMENTS Narrative (D
OPERATING SEGMENTS Narrative (Details) | 12 Months Ended |
Jul. 31, 2016segment | |
Segment Reporting Information | |
Number of Reportable Segments | 2 |
NOTES PAYABLE Notes Payable (De
NOTES PAYABLE Notes Payable (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Debt Instrument | ||
Notes Payable | $ 15,416,000 | $ 18,900,000 |
Less current maturities of notes payable | (3,083,000) | (3,483,000) |
Noncurrent Notes payable | 12,333,000 | 15,417,000 |
Senior Notes Issued November 2010 | ||
Debt Instrument | ||
Notes Payable | 15,416,000 | 18,500,000 |
Annual Principal Installments | $ 3,083,000 | |
Starting payments | Aug. 1, 2015 | |
Ending payments | Aug. 1, 2020 | |
Annual rate | 3.96% | |
Minimum overdue financial obligation considered as default | $ 5,000,000 | |
Senior Notes Issued December 2005 | ||
Debt Instrument | ||
Notes Payable | $ 0 | $ 400,000 |
Annual rate | 5.89% | |
Minimum overdue financial obligation considered as default | $ 5,000,000 | |
Maturity date | Oct. 15, 2015 |
NOTES PAYABLE Maturities of Not
NOTES PAYABLE Maturities of Notes Payable (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Notes Payable Maturities | ||
2,017 | $ 3,083 | |
2,018 | 3,084 | |
2,019 | 3,083 | |
2,020 | 3,083 | |
2,021 | 3,083 | |
Notes Payable | $ 15,416 | $ 18,900 |
NOTES PAYABLE Notes Payable (Na
NOTES PAYABLE Notes Payable (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Senior Notes Issued November 2010 | ||
Debt Instrument | ||
Face amount | $ 18,500,000 | |
Interest rate | 3.96% | |
Minimum overdue financial obligation considered as default | $ 5,000,000 | |
Senior Notes Issued December 2005 | ||
Debt Instrument | ||
Face amount | $ 15,000,000 | |
Interest rate | 5.89% | |
Maturity date | Oct. 15, 2015 | |
Minimum overdue financial obligation considered as default | $ 5,000,000 | |
Line of Credit, BMO Harris | ||
Debt Instrument | ||
Initiation date | Dec. 4, 2014 | |
Expiration date | Dec. 4, 2019 | |
Maximum borrowing capacity | $ 25,000,000 | |
Maximum borrowing capacity for foreign letters of credit | $ 5,000,000 | |
Variable interest rate, prime based | 3.50% | |
Variable interest rate, LIBOR based | 1.70% | |
Line of credit amount outstanding | $ 0 | $ 0 |
Minimum overdue financial obligation considered as default | $ 1,000,000 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | $ 7,626 | $ 9,297 |
FINANCIAL INSTRUMENTS Narrative
FINANCIAL INSTRUMENTS Narrative (Details) - USD ($) | Jul. 31, 2016 | Jul. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Long-term Debt, Fair Value | $ 16,651,000 | $ 20,476,000 |
INCOME TAXES Income Tax Provisi
INCOME TAXES Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Current - Federal | $ 3,298 | $ 4,296 | $ 1,267 |
Current - Foreign | 15 | (40) | 63 |
Current - State | 1,051 | 1,081 | 308 |
Current Income Tax Total | 4,364 | 5,337 | 1,638 |
Deferred - Federal | (3,277) | (2,242) | 1,381 |
Deferred - Foreign | 174 | 68 | (215) |
Deferred - State | (517) | (362) | 177 |
Deferred Income Tax Total | (3,620) | (2,536) | 1,343 |
Total Income Tax Expense | $ 744 | $ 2,801 | $ 2,981 |
INCOME TAXES Income Tax Effecti
INCOME TAXES Income Tax Effective Rate Reconciliation (Details) | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
U.S. federal income tax rate | 35.00% | 35.00% | 34.00% |
Depletion deductions allowed for mining | (13.80%) | (9.50%) | (12.20%) |
State income tax expense, net of federal tax expense | 2.50% | 3.40% | 2.80% |
Difference in effective tax rate of foreign subsidiaries | 1.20% | 2.20% | 0.90% |
Empowerment zone credits | 0.00% | 0.00% | (0.50%) |
Valuation allowance (decrease) increase | (11.70%) | (11.70%) | 3.20% |
Change in federal tax rate applied to deferred tax assets and liabilities | (2.50%) | 0.00% | 0.00% |
Deduction for domestic production activities | (2.70%) | (1.80%) | (1.40%) |
Other | (2.80%) | 2.20% | (0.50%) |
Effective income tax rate | 5.20% | 19.80% | 26.30% |
INCOME TAXES Components of Defe
INCOME TAXES Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Deferred Tax Asset | ||
Depreciation | $ 0 | $ 0 |
Deferred compensation | 4,684 | 3,936 |
Postretirement benefits | 11,935 | 8,242 |
Allowance for doubtful accounts | 172 | 237 |
Deferred marketing expenses | 365 | |
Deferred marketing expenses | 0 | |
Other assets | 923 | 41 |
Accrued expenses | 3,100 | 1,949 |
Tax credits | 1,060 | 1,545 |
Amortization | 216 | 37 |
Inventories | 247 | 512 |
Depletion | 0 | 0 |
Stock-based compensation | 252 | 162 |
Reclamation | 364 | 283 |
Other assets - foreign | 890 | 1,006 |
Valuation allowance | (1,170) | (2,210) |
Total deferred tax assets | 23,038 | 15,740 |
Deferred Tax Liability | ||
Depreciation | 5,924 | 6,749 |
Deferred compensation | 0 | 0 |
Postretirement benefits | 0 | 0 |
Allowance for doubtful accounts | 0 | 0 |
Deferred marketing expenses | 0 | (19) |
Other liabilities | 0 | 0 |
Accrued expenses | 0 | 0 |
Tax credits | 0 | 0 |
Amortization | 0 | 0 |
Inventories | 0 | 0 |
Depletion | 476 | 473 |
Stock-based compensation | 0 | 0 |
Reclamation | 0 | 0 |
Other assets - foreign | 0 | 0 |
Valuation allowance | 0 | 0 |
Total deferred tax liabilities | $ 6,400 | $ 7,241 |
INCOME TAXES Unrecognized tax b
INCOME TAXES Unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Income Tax Contingency | |||
Gross balance - beginning of year | $ 0 | $ 0 | $ 273 |
Gross decreases - tax positions from prior years | 0 | 0 | (273) |
Gross balance - end of year | $ 0 | $ 0 | $ 0 |
INCOME TAXES Narrative (Details
INCOME TAXES Narrative (Details) - USD ($) | 12 Months Ended | |||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Deferred tax asset attribute to alternative minimum tax carryforward added/(utilized) | $ 1,000,000 | $ 1,178,000 | $ (693,000) | |
Foreign net operating loss carryforward and domestic state tax credits | 1,170,000 | |||
Unrecognized Tax Benefits | 0 | $ 0 | $ 0 | $ 273,000 |
Unrecognized tax benefits, penalties and interest expense | 0 | |||
Unrecognized tax benefits, penalties and interest accrued | $ 0 | |||
Minimum | ||||
Foreign and U.S. state tax statute of limitations (years) | 3 years | |||
Maximum | ||||
Foreign and U.S. state tax statute of limitations (years) | 5 years | |||
Valuation Allowance, Tax Credit Carryforward [Member] | ||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 1,680,000 |
STOCKHOLDERS EQUITY Accumulat59
STOCKHOLDERS EQUITY Accumulated Other Comprehensive Income (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive (Loss) Income, beginning balance | $ (9,245,000) | $ (8,263,000) | |
Other comprehensive (loss) income, before reclassifications, net of tax | (5,386,000) | (1,264,000) | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 609,000 | 282,000 | |
Other Comprehensive Loss | (4,777,000) | (982,000) | $ (3,228,000) |
Accumulated Other Comprehensive (Loss) Income, ending balance | (14,022,000) | (9,245,000) | (8,263,000) |
Unrealized Gain on Marketable Securities | |||
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive (Loss) Income, beginning balance | 0 | 114,000 | |
Other comprehensive (loss) income, before reclassifications, net of tax | 0 | (9,000) | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | (105,000) | |
Other Comprehensive Loss | 0 | (114,000) | |
Accumulated Other Comprehensive (Loss) Income, ending balance | 0 | 0 | 114,000 |
Pension and Postretirement Health Benefits | |||
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive (Loss) Income, beginning balance | (8,975,000) | (8,632,000) | |
Other comprehensive (loss) income, before reclassifications, net of tax | (5,501,000) | (730,000) | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 609,000 | 387,000 | |
Other Comprehensive Loss | (4,892,000) | (343,000) | |
Accumulated Other Comprehensive (Loss) Income, ending balance | (13,867,000) | (8,975,000) | (8,632,000) |
Tax on Other comprehensive (loss) incomes, Pension and postretirement benefit Plans before reclassifications | 3,372,000 | 447,000 | |
Tax on amount reclassified from AOCI, Pension and postretirement health benefits | 374,000 | 239,000 | |
Cumulative Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive (Loss) Income, beginning balance | (270,000) | 255,000 | |
Other comprehensive (loss) income, before reclassifications, net of tax | 115,000 | (525,000) | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | |
Other Comprehensive Loss | 115,000 | (525,000) | |
Accumulated Other Comprehensive (Loss) Income, ending balance | $ (155,000) | $ (270,000) | $ 255,000 |
STOCKHOLDERS EQUITY Narrative (
STOCKHOLDERS EQUITY Narrative (Details) - $ / shares | 12 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Stockholders' Equity | ||
Par Value Per Share | $ 0.10 | $ 0.10 |
Relative Total Dividend Rate - Common Stock Plus Class A Versus Class A Plus Class B Stock | 133.33% | |
Number of Shares Authorized to be Repurchased | 3,666,771 | |
Common Stock | ||
Stockholders' Equity | ||
Shares Authorized | 15,000,000 | 15,000,000 |
Par Value Per Share | $ 0.10 | $ 0.10 |
Voting Rights | one | |
Relative Dividend Rate - Common Stock Versus Class B Stock | 133.33% | |
Shares Repurchased, Board Approved, Cummulative | 3,019,169 | |
Common Class B | ||
Stockholders' Equity | ||
Shares Authorized | 7,000,000 | 7,000,000 |
Par Value Per Share | $ 0.10 | $ 0.10 |
Voting Rights | ten | |
Shares Repurchased, Board Approved, Cummulative | 342,241 | |
Class A Common Stock | ||
Stockholders' Equity | ||
Shares Authorized | 30,000,000 | 30,000,000 |
Shares Outstanding | 0 | |
Voting Rights | 0 |
STOCK-BASED COMPENSATION (Summa
STOCK-BASED COMPENSATION (Summary of Option Activity) (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Summary of Share-based Award Activity | ||||
Options outstanding, Number | 10,000 | 41,000 | 44,000 | 60,000 |
Options exercisable, number | 10,000 | 41,000 | 44,000 | 60,000 |
Options outstanding, Weighted Average Exercise Price | $ 17 | $ 15.43 | $ 15.43 | $ 14.25 |
Options exercisable, Weighted Average Exercise Price | $ 17 | $ 15.43 | $ 15.43 | $ 14.25 |
Options outstanding, Weighted Average Remaining Contractual Term (Years) | 3 months 24 days | 11 months | 1 year 10 months 24 days | 2 years 3 months 19 days |
Options exercisable, Weighted Average Remaining Contractual Term (Years) | 3 months 24 days | 11 months | 1 year 10 months 24 days | 2 years 3 months 19 days |
Options outstanding, Aggregate Intrinsic Value | $ 205 | $ 447 | $ 611 | $ 1,059 |
Options exercisable, Aggregate Intrinsic Value | $ 205 | $ 477 | $ 611 | $ 1,059 |
Exercised, Number | (31,000) | (3,000) | (8,000) | |
Exercised, Weighted Average Exercise Price | $ 14.93 | $ 15.37 | $ 12.47 | |
Exercised, Aggregate Intrinsic Value | $ 469 | $ 45 | $ 151 | |
Options forfeited, number | (8,000) | |||
Options forfeited, Weighted Average Exercise Price | $ 9.43 |
STOCK-BASED COMPENSATION (Sum62
STOCK-BASED COMPENSATION (Summary of Restricted Stock Activity) (Details) - Restricted Stock - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Summary of Restricted Stock Activity | ||||
Nonvested restricted stock outstanding, Number | 194 | 74 | 122 | 117 |
Nonvested restricted stock outstanding, Weighted Average Grant Date Fair Value | $ 29.09 | $ 28.83 | $ 27.31 | $ 22.24 |
Nonvested restricted stock outstanding, Weighted Average Remaining Contractual Term (Years) | 3 years 9 months 12 days | 2 years 1 month 10 days | 2 years 5 months 10 days | 2 years 1 month 6 days |
Nonvested retricted stock outstanding, Unamortized Expense | $ 4,282 | $ 931 | $ 2,226 | $ 1,824 |
Granted, Number | 166 | 11 | 51 | |
Granted, Weighted Average Grant Date Fair Value | $ 28.62 | $ 28.68 | $ 34.18 | |
Vested, Number | (41) | (45) | (40) | |
Vested, Weighted Average Grant Date Fair Value | $ 26.46 | $ 23.16 | $ 21.50 | |
Forfeitures, Number | (5) | (14) | (6) | |
Forfeitures, Weighted Average Grant Date Fair Value | $ 31.56 | $ 34.05 | $ 25.41 |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) | 12 Months Ended | |||
Jul. 31, 2016USD ($)Grantshares | Jul. 31, 2015USD ($)shares | Jul. 31, 2014USD ($)shares | Jul. 31, 2013shares | |
Share-based Compensation Award Disclosure | ||||
Number of Stock Option Grants Outstanding | Grant | 1 | |||
Stock Options | ||||
Share-based Compensation Award Disclosure | ||||
Fair value calculation, volatility calculation period (years) | 5 years | |||
Options expiration term (years) | 10 years | |||
Cash received from exercise of stock options | $ 467,000 | $ 50,000 | $ 93,000 | |
Tax benefit realized from exercise of stock options | $ 178,000 | $ 9,000 | $ 39,000 | |
Options outstanding, Number | shares | 10,000 | 41,000 | 44,000 | 60,000 |
Share-based compensation expense | $ 0 | $ 0 | $ 0 | |
Nonvested awards, unamortized compensation expense | 0 | 0 | 0 | |
Restricted Stock | ||||
Share-based Compensation Award Disclosure | ||||
Share-based compensation expense | 773,000 | 916,000 | 880,000 | |
Tax Benefit from Compensation Expense | $ 474,000 | $ 226,000 | $ 309,000 | |
1995 Plan | ||||
Share-based Compensation Award Disclosure | ||||
Annual vesting percentage | 25.00% | |||
Number of years after grant date vesting starts (years) | 2 years | |||
Number of consecutive years vesting occurs after initial vest date (years) | 3 years | |||
Number of shares available for grant | shares | 0 | |||
2006 Plan | ||||
Share-based Compensation Award Disclosure | ||||
Number of shares authorized | shares | 937,500 | |||
Number of shares available for grant | shares | 375,954 | |||
2006 Plan - Employee Stock Options | ||||
Share-based Compensation Award Disclosure | ||||
Annual vesting percentage | 25.00% | |||
Number of years after grant date vesting starts (years) | 2 years | |||
Number of consecutive years vesting occurs after initial vest date (years) | 3 years | |||
2006 Plan - Restricted Stock | Minimum | ||||
Share-based Compensation Award Disclosure | ||||
Award vesting period (years) | 2 years | |||
2006 Plan - Restricted Stock | Maximum | ||||
Share-based Compensation Award Disclosure | ||||
Award vesting period (years) | 5 years | |||
Director Stock Option | ||||
Share-based Compensation Award Disclosure | ||||
Award vesting period (years) | 1 year | |||
Directors' Plan | ||||
Share-based Compensation Award Disclosure | ||||
Award vesting period (years) | 1 year | |||
Number of shares available for grant | shares | 0 |
PENSION AND OTHER POSTRETIREM64
PENSION AND OTHER POSTRETIREMENT BENEFITS Change in Benefit Obligation and Plan Assets, Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Defined Benefit Plans and Postretirement Health Benefits | |||
Fair value of plan assets. beginning of year | $ 25,593 | ||
Fair value of plan assets. end of year | 25,264 | $ 25,593 | |
Pension Benefits | |||
Defined Benefit Plans and Postretirement Health Benefits | |||
Benefit obligation, beginning of year | 46,749 | 44,367 | |
Service cost | 1,502 | 1,606 | $ 1,425 |
Interest cost | 1,928 | 1,855 | 1,761 |
Actuarial loss (gain) | 6,304 | 96 | |
Benefits paid | (1,359) | (1,175) | |
Benefit obligation, end of year | 55,124 | 46,749 | 44,367 |
Fair value of plan assets. beginning of year | 25,593 | 24,804 | |
Actual return on plan assets | (234) | 174 | |
Employer contribution | 1,264 | 1,790 | |
Benefits paid | (1,359) | (1,175) | |
Fair value of plan assets. end of year | 25,264 | 25,593 | 24,804 |
Funded status, recorded in Consolidated Balance Sheets | (29,860) | (21,156) | |
Postretirement Health Benefits | |||
Defined Benefit Plans and Postretirement Health Benefits | |||
Benefit obligation, beginning of year | 2,362 | 2,770 | |
Service cost | 93 | 133 | 111 |
Interest cost | 82 | 106 | 110 |
Actuarial loss (gain) | 413 | (622) | |
Benefits paid | (204) | (25) | |
Benefit obligation, end of year | 2,746 | 2,362 | 2,770 |
Fair value of plan assets. beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contribution | 204 | 25 | |
Benefits paid | (204) | (25) | |
Fair value of plan assets. end of year | 0 | 0 | $ 0 |
Funded status, recorded in Consolidated Balance Sheets | $ (2,746) | $ (2,362) |
PENSION AND OTHER POSTRETIREM65
PENSION AND OTHER POSTRETIREMENT BENEFITS Amounts Recognized in Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Defined Benefit Plans and Postretirement Health Benefits | ||
Other noncurrent Liabilities | $ (32,492) | $ (23,429) |
Pension Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Deferred income tax | 10,894 | 7,376 |
Other current liabilities | 0 | 0 |
Other noncurrent Liabilities | (29,860) | (21,156) |
Accumulated other comprehensive income - net of tax, Net actuarial loss | 13,546 | 8,909 |
Accumulated other comprehensive income - net of tax, Prior service cost (income) | 4 | 9 |
Postretirement Health Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Deferred income tax | 1,041 | 866 |
Other current liabilities | (114) | (89) |
Other noncurrent Liabilities | (2,632) | (2,273) |
Accumulated other comprehensive income - net of tax, Net actuarial loss | 348 | 92 |
Accumulated other comprehensive income - net of tax, Prior service cost (income) | $ (31) | $ (35) |
PENSION AND OTHER POSTRETIREM66
PENSION AND OTHER POSTRETIREMENT BENEFITS Components of net periodic benefit cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Pension Benefits | |||
Defined Benefit Plans and Postretirement Health Benefits | |||
Service cost | $ 1,502 | $ 1,606 | $ 1,425 |
Interest cost | 1,928 | 1,855 | 1,761 |
Expected return on plan assets | (1,923) | (1,877) | (1,715) |
Amortization of: Net transition obligations | 0 | 0 | 0 |
Amortization of: Prior service costs (income) | 8 | 10 | 13 |
Amortization of: Other actuarial loss | 981 | 584 | 343 |
Net periodic benefit cost | 2,496 | 2,178 | 1,827 |
Postretirement Health Benefits | |||
Defined Benefit Plans and Postretirement Health Benefits | |||
Service cost | 93 | 133 | 111 |
Interest cost | 82 | 106 | 110 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of: Net transition obligations | 0 | 1 | 16 |
Amortization of: Prior service costs (income) | (6) | (6) | (6) |
Amortization of: Other actuarial loss | 0 | 37 | 24 |
Net periodic benefit cost | $ 169 | $ 271 | $ 255 |
PENSION AND OTHER POSTRETIREM67
PENSION AND OTHER POSTRETIREMENT BENEFITS Amounts recognized in other comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Defined Benefit Plans and Postretirement Health Benefits | |||
Total recognized in other comprehensive loss (income) | $ 4,892 | $ 343 | $ 3,024 |
Pension Benefits | |||
Defined Benefit Plans and Postretirement Health Benefits | |||
Net actuarial loss (gain) | 5,245 | 1,115 | |
Amortization of: Prior service (cost) income | (5) | (6) | |
Amortization of: Net transition obligation | 0 | 0 | |
Amortization of actuarial loss | (608) | (361) | |
Total recognized in other comprehensive loss (income) | 4,632 | 748 | |
Postretirement Health Benefits | |||
Defined Benefit Plans and Postretirement Health Benefits | |||
Net actuarial loss (gain) | 256 | (385) | |
Amortization of: Prior service (cost) income | 4 | 4 | |
Amortization of: Net transition obligation | 0 | (1) | |
Amortization of actuarial loss | 0 | (23) | |
Total recognized in other comprehensive loss (income) | $ 260 | $ (405) |
PENSION AND OTHER POSTRETIREM68
PENSION AND OTHER POSTRETIREMENT BENEFITS Amounts to be recognized in other comprehensive income in the next fiscal year (Details) $ in Thousands | 12 Months Ended |
Jul. 31, 2016USD ($) | |
Pension Benefits | |
Defined Benefit Plans and Postretirement Health Benefits | |
Amortization of: Net actuarial loss | $ 1,063 |
Amortization of: Prior service cost (income) | 2 |
Total to be recognized in other comprehensive loss | 1,065 |
Postretirement Health Benefits | |
Defined Benefit Plans and Postretirement Health Benefits | |
Amortization of: Net actuarial loss | 16 |
Amortization of: Prior service cost (income) | (4) |
Total to be recognized in other comprehensive loss | $ 12 |
PENSION AND OTHER POSTRETIREM69
PENSION AND OTHER POSTRETIREMENT BENEFITS Estimated future benefit payments (Details) $ in Thousands | Jul. 31, 2016USD ($) |
Pension Benefits | |
Defined Benefit Plans and Postretirement Health Benefits | |
2,017 | $ 1,389 |
2,018 | 1,477 |
2,019 | 1,561 |
2,020 | 1,575 |
2,021 | 1,664 |
2022-26 | 9,895 |
Postretirement Health Benefits | |
Defined Benefit Plans and Postretirement Health Benefits | |
2,017 | 114 |
2,018 | 72 |
2,019 | 88 |
2,020 | 128 |
2,021 | 157 |
2022-26 | $ 1,161 |
PENSION AND OTHER POSTRETIREM70
PENSION AND OTHER POSTRETIREMENT BENEFITS Assumptions used in calculations (Details) | 12 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Pension Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Discount rate for net periodic benefit costs | 4.22% | 4.28% |
Discount rate for year-end obligations | 3.36% | 4.22% |
Rate of increase in compensation levels for net periodic benefit costs | 3.50% | 3.50% |
Rate of increase in compensation levels for year-end obligations | 3.50% | 3.50% |
Long-term expected rate of return on assets | 7.50% | 7.50% |
Postretirement Health Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Discount rate for net periodic benefit costs | 3.51% | 3.87% |
Discount rate for year-end obligations | 2.71% | 3.51% |
Rate of increase in compensation levels for net periodic benefit costs | 0.00% | 0.00% |
Rate of increase in compensation levels for year-end obligations | 0.00% | 0.00% |
Long-term expected rate of return on assets | 0.00% | 0.00% |
PENSION AND OTHER POSTRETIREM71
PENSION AND OTHER POSTRETIREMENT BENEFITS Effect of one-percentage point change in assumed healthcare trend (Details) - Postretirement Health Benefits $ in Thousands | 12 Months Ended |
Jul. 31, 2016USD ($) | |
Defined Benefit Plans and Postretirement Health Benefits | |
Effect of One Percentage Point Increase on total service and interest cost | $ 23 |
Effect of One Percentage Point Decrease on total service and interest cost | (20) |
Effect of One Percentage Point Increase on accumulated postretirement benefit obligation | 293 |
Effect of One Percentage Point Decrease on accumulated postretirement benefit obligation | $ (258) |
PENSION AND OTHER POSTRETIREM72
PENSION AND OTHER POSTRETIREMENT BENEFITS Plan Assets Allocation Percentages (Details) | 12 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Cash and accrued income | ||
Defined Benefit Plan Disclosure | ||
Target Allocation % | 2.00% | |
Actual Allocation % | 0.00% | 12.00% |
Fixed income | ||
Defined Benefit Plan Disclosure | ||
Target Allocation % | 38.00% | |
Actual Allocation % | 47.00% | 29.00% |
Equity | ||
Defined Benefit Plan Disclosure | ||
Target Allocation % | 60.00% | |
Actual Allocation % | 53.00% | 59.00% |
PENSION AND OTHER POSTRETIREM73
PENSION AND OTHER POSTRETIREMENT BENEFITS Fair value level of pension plan assets (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 25,264,000 | $ 25,593,000 |
Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 6,598,000 | 14,975,000 |
Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 18,666,000 | 10,618,000 |
Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 48,000 | 2,678,000 |
Cash and Cash Equivalents | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 48,000 | 2,678,000 |
Cash and Cash Equivalents | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Equity securities U.S. companies | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 8,132,000 | 9,141,000 |
Equity securities U.S. companies | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 4,604,000 | 9,119,000 |
Equity securities U.S. companies | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 3,528,000 | 22,000 |
Equity securities International companies | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 1,946,000 | 3,178,000 |
Equity securities International companies | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 1,946,000 | 3,178,000 |
Equity securities International companies | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Equity securities - international mutual funds: Developed market | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 3,258,000 | $ 1,289,000 |
Minimum % of Fund Assets Invested in Non-US Stocks Developed Market | 80.00% | 80.00% |
Equity securities - international mutual funds: Developed market | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 | $ 0 |
Equity securities - international mutual funds: Developed market | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 3,258,000 | 1,289,000 |
Equity securities - international mutual funds: Emerging market | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 331,000 | |
Minimum % of Fund Assets Invested Primarily in Asian Stocks excluding Japan | 80.00% | 80.00% |
Equity securities - international mutual funds: Emerging market | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 | |
Equity securities - international mutual funds: Emerging market | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 331,000 | |
Commodities | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 267,000 | |
Commodities | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |
Commodities | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 267,000 | |
Fixed Income: U.S. Treasuries | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 2,244,000 | 3,923,000 |
Fixed Income: U.S. Treasuries | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Fixed Income: U.S. Treasuries | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 2,244,000 | 3,923,000 |
Fixed Income: Bonds | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 5,692,000 | 1,751,000 |
Fixed Income: Bonds | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Fixed Income: Bonds | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 5,692,000 | 1,751,000 |
Fixed Income: Floating rate debt | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 855,000 | |
Minimum % of Fund Assets Invested in Floating Rate Debt | 80.00% | 80.00% |
Maximum % of Fund Assets Invested in Debt Securities Lower Than Senior Claim | 20.00% | 20.00% |
Maximum % of Fund Assets Invested in Senior Loans to Non-US Borrowers | 20.00% | 20.00% |
Fixed Income: Floating rate debt | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 | |
Fixed Income: Floating rate debt | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 855,000 | |
Fixed Income: Government sponsored entities | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 2,894,000 | 292,000 |
Amount Backed by US Government | 803,776 | |
Fixed Income: Government sponsored entities | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Fixed Income: Government sponsored entities | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 2,894,000 | 292,000 |
Fixed Income: Multi-strategy bond fund | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 895,000 | |
Minimum % of Fund Assets Invested in Bonds and Other Fixed Income | 80.00% | 80.00% |
Minimum % of Fund Assets Invested in Mortgage-Backed Securities | 50.00% | 50.00% |
Maximum % of Fund Invested in High-Yield Investments | 33.00% | 33.00% |
Fixed Income: Multi-strategy bond fund | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 | |
Fixed Income: Multi-strategy bond fund | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 895,000 | |
Money Market Funds | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 1,050,000 | |
Money Market Funds | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |
Money Market Funds | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 1,050,000 | |
Other | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 993,000 | |
Other | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |
Other | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 993,000 |
PENSION AND OTHER POSTRETIREM74
PENSION AND OTHER POSTRETIREMENT BENEFITS Narrative (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Contribution to defined contribution plans | $ 685,000 | $ 683,000 | $ 814,000 |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Accumulated benefit obligation | 48,981,000 | $ 41,501,000 | |
Pension plan estimated employer contributions in next fiscal year | $ 1,475,000 | ||
Postretirement Health Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Health care cost trend rate assumed | 7.00% | ||
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 4.00% | ||
Defined Benefit Plan, Year that Rate Reaches Ultimate Trend Rate | 2,035 |
DEFERRED COMPENSATION Deferred
DEFERRED COMPENSATION Deferred Comp and Bonus (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Deferred Compensation | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | ||
Annual Total Amount Deferred | $ 483,000 | $ 318,000 |
Deferred Compensation Interest Expense | 438,000 | 428,000 |
Deferred Compensation Payments to Participants | 570,000 | 450,000 |
Deferred Compensation Recorded Liability | 9,117,000 | $ 8,623,000 |
Executive Deferred Bonus | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | ||
Deferred Compensation Arrangement with Individual, Employer Contribution | $ 763,000 | |
Deferred Compensation Arrangement with Individual, Requisite Service Period | 3 years |
DEFERRED COMPENSATION SERP (Det
DEFERRED COMPENSATION SERP (Details) - Supplemental Employee Retirement Plan - USD ($) | 12 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
SERP Disclosure | ||
SERP, Benefit Obligation | $ 1,968,000 | $ 1,433,000 |
SERP Expense (Income) | $ 535,000 | $ 178,000 |
LEASES Future minimum rental (D
LEASES Future minimum rental (Details) $ in Thousands | Jul. 31, 2016USD ($) |
Future Minimum Rental Requirements | |
2,017 | $ 1,530 |
2,018 | 1,366 |
2,019 | 1,096 |
2,020 | 847 |
2,021 | 728 |
Later years | $ 9,166 |
LEASES Rental Expense for all o
LEASES Rental Expense for all operating leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Total Rental Expense | |||
Rent Expense, Total | $ 3,227 | $ 3,206 | $ 3,505 |
Vehicles and Railcars | |||
Total Rental Expense | |||
Rent Expense | 1,439 | 1,559 | 1,818 |
Office facilities | |||
Total Rental Expense | |||
Rent Expense | 945 | 928 | 890 |
Warehouse facilities | |||
Total Rental Expense | |||
Rent Expense | 419 | 311 | 235 |
Mining properties | |||
Total Rental Expense | |||
Rent Expense, Minimum | 124 | 123 | 292 |
Rent Expense, Contingent | 239 | 239 | 162 |
Other | |||
Total Rental Expense | |||
Rent Expense | $ 61 | $ 46 | $ 108 |
LEASES Narrative (Details)
LEASES Narrative (Details) | Jul. 31, 2016Lease | Jul. 31, 2015Lease | Jul. 31, 2014USD ($)Lease |
Narrative [Abstract] | |||
Capital Leased Assets, Number of Units | Lease | 0 | 0 | 3 |
Capital Lease Obligations | $ 1,330,000 | ||
Capital leased assets, gross | 1,523,000 | ||
Capital leases, accumulated depreciation | $ 32,000 |
SELECTED QUARTERLY FINANCIAL 80
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Net Sales | $ 64,916 | $ 64,235 | $ 65,367 | $ 67,795 | $ 65,519 | $ 65,196 | $ 64,643 | $ 66,044 | $ 262,313 | $ 261,402 | $ 266,313 |
Gross Profit | 18,866 | 18,568 | 19,062 | 20,653 | 16,722 | 14,433 | 15,233 | 13,769 | 77,149 | 60,157 | 59,650 |
Net Income (Loss) | $ 5,261 | $ (892) | $ 3,821 | $ 5,423 | $ 5,066 | $ 1,385 | $ 2,797 | $ 2,120 | $ 13,613 | $ 11,368 | $ 8,356 |
Net Income Per Share, Diluted Common | $ 0.72 | $ (0.13) | $ 0.53 | $ 0.75 | $ 0.71 | $ 0.19 | $ 0.39 | $ 0.30 | $ 1.87 | $ 1.59 | $ 1.17 |
Common Stock | |||||||||||
Net Income Per Share, Basic | 0.78 | (0.14) | 0.57 | 0.82 | 0.77 | 0.21 | 0.43 | 0.32 | 2.04 | 1.73 | 1.27 |
Dividends Per Share | 0.2200 | 0.2100 | 0.2100 | 0.2100 | 0.2100 | 0.2000 | 0.2000 | 0.2000 | 0.8500 | 0.8100 | |
Common Stock Price Range, High | 37.67 | 38.43 | 38.92 | 31.61 | 33.44 | 34.19 | 32.93 | 31.30 | |||
Common Stock Price Range, Low | 29.89 | 32.24 | 28.42 | 21.65 | 25.92 | 28.30 | 26.60 | 24.02 | |||
Common Class B | |||||||||||
Net Income Per Share, Basic | 0.59 | (0.10) | 0.43 | 0.61 | 0.58 | 0.16 | 0.32 | 0.24 | 1.53 | 1.30 | $ 0.96 |
Dividends Per Share | $ 0.1650 | $ 0.1575 | $ 0.1575 | $ 0.1575 | $ 0.1575 | $ 0.1500 | $ 0.1500 | $ 0.1500 | $ 0.6375 | $ 0.6075 |