Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2019 | Apr. 01, 2019 | Jul. 31, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | VIRCO MFG CORPORATION | ||
Entity Central Index Key | 0000751365 | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 31, 2019 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 66 | ||
Entity Common Stock, Shares Outstanding | 15,541,956 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Current assets: | ||
Cash | $ 738 | $ 534 |
Trade accounts receivables (net of allowance for doubtful accounts of $200 at January 31, 2019 and 2018) | 13,253 | 11,385 |
Other receivables | 40 | 29 |
Income tax receivable | 175 | 171 |
Inventories, net | 47,289 | 42,057 |
Prepaid expenses and other current assets | 1,616 | 1,537 |
Total current assets | 63,111 | 55,713 |
Property, plant and equipment | ||
Land | 3,731 | 3,731 |
Land improvements | 688 | 688 |
Buildings and building improvements | 51,176 | 51,176 |
Machinery and equipment | 108,253 | 103,015 |
Leasehold improvements | 830 | 809 |
Total property, plant and equipment | 164,678 | 159,419 |
Less accumulated depreciation and amortization | 122,758 | 116,977 |
Net property, plant and equipment | 41,920 | 42,442 |
Deferred income tax assets, net | 9,598 | 10,093 |
Other assets | 8,484 | 8,375 |
Total assets | 123,113 | 116,623 |
Current liabilities: | ||
Accounts payable | 17,760 | 14,106 |
Accrued compensation and employee benefits | 4,568 | 4,779 |
Current portion of long-term debt | 5,504 | 4,681 |
Other accrued liabilities | 4,293 | 4,157 |
Total current liabilities | 32,125 | 27,723 |
Non-current liabilities: | ||
Accrued self-insurance | 1,190 | 1,425 |
Accrued retirement benefits | 14,487 | 14,664 |
Income tax payable | 45 | 44 |
Long-term debt, less current portion | 15,910 | 12,000 |
Other long-term liabilities | 2,329 | 2,055 |
Total non-current liabilities | 33,961 | 30,188 |
Commitments and contingencies | ||
Preferred stock: | ||
Authorized 3,000,000 shares, $.01 par value; none issued or outstanding | 0 | 0 |
Common stock: | ||
Authorized 25,000,000 shares, $.01 par value; issued and outstanding 15,541,956 shares in 2019 and 15,357,457 shares in 2018 | 155 | 154 |
Additional paid-in capital | 118,106 | 117,465 |
Accumulated deficit | (52,192) | (49,648) |
Accumulated other comprehensive loss | (9,042) | (9,259) |
Total stockholders’ equity | 57,027 | 58,712 |
Total liabilities and stockholders’ equity | $ 123,113 | $ 116,623 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivables | $ 200 | $ 200 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 15,541,956 | 15,357,457 |
Common stock, shares outstanding | 15,541,956 | 15,357,457 |
Consolidated Statements of Oper
Consolidated Statements of Operation - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 200,716 | $ 189,287 |
Costs of goods sold | 133,635 | 123,816 |
Gross profit | 67,081 | 65,471 |
Selling, general and administrative expenses | 64,751 | 60,347 |
Gain on sale of property, plant & equipment | (1) | (16) |
Operating income | 2,331 | 5,140 |
Pension expense | 1,257 | 1,181 |
Interest expense, net | 2,191 | 1,545 |
(Loss) income before income taxes | (1,117) | 2,414 |
Income tax expense | 497 | 5,623 |
Net loss | $ (1,614) | $ (3,209) |
Net income (loss) per common share: | ||
Basic | $ (0.10) | $ (0.21) |
Diluted | $ (0.10) | $ (0.21) |
Weighted average shares outstanding: | ||
Basic | 15,421 | 15,244 |
Diluted | 15,421 | 15,244 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (1,614) | $ (3,209) |
Other comprehensive loss: | ||
Pension adjustments (net of tax $76 and $1,267 in 2019 and 2018, respectively) | 217 | 2,135 |
Comprehensive loss | $ (1,397) | $ (1,074) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning balance adjustment to retained earnings as a result of the adoption of ASU 2016-09 | $ 171 | $ 171 | |||
Balance (in shares) at Jan. 31, 2017 | 15,179,664 | ||||
Balance at Jan. 31, 2017 | 59,354 | $ 152 | $ 116,976 | (46,380) | $ (11,394) |
Net loss | (3,209) | (3,209) | |||
Pension adjustments, net of tax effect | 2,135 | 2,135 | |||
Dividends | (230) | (230) | |||
Shares vested and others (in shares) | 177,793 | ||||
Shares vested | (339) | $ 2 | (341) | ||
Stock compensation expense | 830 | 830 | |||
Balance (in shares) at Jan. 31, 2018 | 15,357,457 | ||||
Balance at Jan. 31, 2018 | 58,712 | $ 154 | 117,465 | (49,648) | (9,259) |
Net loss | (1,614) | (1,614) | |||
Pension adjustments, net of tax effect | 217 | 217 | |||
Dividends | (930) | (930) | |||
Shares vested and others (in shares) | 184,499 | ||||
Shares vested | (266) | $ 1 | (267) | ||
Stock compensation expense | 908 | 908 | |||
Balance (in shares) at Jan. 31, 2019 | 15,541,956 | ||||
Balance at Jan. 31, 2019 | $ 57,027 | $ 155 | $ 118,106 | $ (52,192) | $ (9,042) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders’ Equity (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Pension adjustment tax effects | $ 76 | $ 1,267 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Operating activities | ||
Net loss | $ (1,614) | $ (3,209) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 5,791 | 5,466 |
(Decrease) increase in provision for doubtful accounts | (3) | 55 |
Gain on sale of property, plant and equipment | (1) | (16) |
Deferred income taxes | 419 | 5,821 |
Stock-based compensation | 908 | 830 |
Defined benefit plan, recognized net loss due to settlements | 538 | 0 |
Amortization of net actuarial loss for pension plans | 795 | 955 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (1,868) | (1,470) |
Other receivables | (10) | 181 |
Inventories | (5,232) | (6,368) |
Income taxes | (3) | 112 |
Prepaid expenses and other current assets | (79) | 73 |
Accounts payable and accrued liabilities | 2,722 | (748) |
Net cash provided by operating activities | 2,363 | 1,682 |
Investing activities | ||
Capital expenditures | (5,395) | (6,208) |
Purchase of manufacturing facility | 0 | (7,200) |
Proceeds from sale of property, plant and equipment | 3 | 22 |
Proceeds for life insurance | 5 | 119 |
Investments in life insurance | (61) | 0 |
Net cash used in investing activities | (5,448) | (13,267) |
Financing activities | ||
Proceeds from long-term debt | 54,711 | 36,742 |
Repayment of long-term debt | (49,978) | (25,072) |
Tax withholding payments on share-based compensation | (265) | (339) |
Payment on deferred financing costs | (249) | 0 |
Cash dividend paid | (930) | 0 |
Net cash provided by financing activities | 3,289 | 11,331 |
Net increase (decrease) in cash | 204 | (254) |
Cash at beginning of year | 534 | 788 |
Cash at end of year | 738 | 534 |
Supplemental disclosures of cash flow information | ||
Cash paid during the year for interest | 2,191 | 1,545 |
Cash paid during the year for income tax, net of refunds | $ 96 | $ 46 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Business and Significant Accounting Policies | Summary of Business and Significant Accounting Policies Business Virco Mfg. Corporation (the “Company”), which operates in one business segment, is engaged in the design, production and distribution of quality furniture for the commercial and education markets. Over 69 years of manufacturing operations have resulted in a wide product assortment. Major products include mobile tables, mobile storage equipment, desks, computer furniture, chairs, activity tables, folding chairs and folding tables. The Company manufactures its products in Torrance, California, and Conway, Arkansas, for sale primarily in the United States. The Company operates in a seasonal business and requires significant amounts of working capital under its credit facility to fund acquisitions of inventory and finance receivables during the summer delivery season. Restrictions imposed by the terms of the Company’s credit facility may limit the Company’s operating and financial flexibility (see Note 3). Reclassification Certain amounts in the prior period statement of cash flows have been reclassified to conform to the presentation of the current period financial statements. These reclassifications had no effect on the previously reported net loss. Principles of Consolidation The consolidated financial statements include the accounts of Virco Mfg. Corporation and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Management Use of Estimates Preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities - and disclosure of contingent assets and liabilities - at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include, but are not limited to, valuation of inventory; deferred tax assets and liabilities; useful lives of property, plant and equipment; liabilities under pension, warranty, self-insurance and environmental claims; and the accounts receivable allowance for doubtful accounts. Actual results could differ from these estimates. Fiscal Year End Fiscal years 2019 and 2018 refer to the fiscal years ended January 31, 2019 and 2018 , respectively. Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentrations of credit risk consist principally of accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. Sales to the Company’s recurring customers are generally made on open account with terms consistent with the industry. Credit is extended based on an evaluation of the customer’s financial condition and payment history. Past due accounts are determined based on how recently payments have been made in relation to the terms granted. Amounts are written off against the allowance in the period that the Company determines that the receivable is not collectable. The Company purchases insurance on receivables from certain commercial customers to minimize the Company’s credit risk. The Company does not typically obtain collateral to secure credit risk. Customers with inadequate credit are required to provide cash in advance or letters of credit. The Company does not assess interest on receivable balances. A substantial percentage of the Company’s receivables come from low-risk government entities. No customer exceeded 10% of the Company’s net sales for fiscal years ended January 31, 2019 and 2018. Foreign net sales were approximately 6.7% and 6.3% of the Company’s net sales for fiscal years 2019 and 2018 , respectively. No single customer accounted for more than 10% of the Company’s accounts receivable at January 31, 2019 or 2018 . Because of the short time between shipment and collection, the net carrying value of receivables approximates the fair value for these assets. Cash Cash consists of cash on hand, and the Company has no cash equivalents. Outstanding checks, representing a book overdraft, are classified in accounts payable on the accompanying consolidated balance sheets and in operating activities in the accompanying consolidated statements of cash flows. Fair Values of Financial Instruments The fair values of the Company’s cash, accounts receivable, and accounts payable approximate their carrying amounts due to their short-term nature. Financial assets and liabilities measured at fair value on a recurring basis are classified in one of the three following categories, which are described below: Level 1 — Valuations based on unadjusted quoted prices for identical assets in an active market. Level 2 — Valuations based on quoted prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. Level 3 — Valuations based on inputs that are unobservable and involve management judgment and our own assumptions about market participants and pricing. Financial assets measured at fair value on a recurring basis include assets associated with the Virco Employees Retirement Plan (see Note 4 ). Inventories Inventory is valued at the lower of cost or net realizable value (determined on a first-in, first-out basis) and includes material, labor and factory overhead. The Company maintains valuation allowances to write off estimated slow moving and obsolete inventory to reflect the difference between the lower of cost of inventory and the net realizable value. Allowances for slow moving and obsolete inventory are determined through a physical inspection of the product in connection with a physical inventory, a review of slow-moving product and consideration of active marketing programs. The market for education furniture is traditionally driven by value, not style and the Company has not typically incurred significant obsolescence expenses. If market conditions are less favorable than those anticipated by management, additional allowances may be required. Due to reductions in sales volume in the past years, the Company’s manufacturing facilities are operating at reduced levels of capacity. The Company records the cost of excess capacity as a period expense, not as a component of capitalized inventory valuation. The following table presents an updated breakdown of the Company’s net inventory (in thousands) as of January 31 : 2019 2018 Finished goods $ 15,908 $ 13,054 Work In Process 18,820 16,627 Raw materials 12,561 12,376 Inventories, net $ 47,289 $ 42,057 Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation and amortization are computed on the straight-line method for financial reporting purposes based upon the following estimated useful lives: Land improvements 5 to 25 years Buildings and building improvements 5 to 40 years Machinery and equipment 3 to 10 years Leasehold improvements shorter of lease or useful life The Company capitalizes the cost of betterments that extend the life of an asset. Repairs and maintenance that do not extend the life of an asset are expensed as incurred. Repair and maintenance expense was $2,145,000 and $1,518,000 for fiscal years ended January 31, 2019 and 2018 , respectively. Property, plant and equipment purchased during the year that remains unpaid as of January 31, 2019 was $593,000 . The Company has established asset retirement obligations related to leased manufacturing facilities in accordance with Financial Accounting Standards Board (FASB) Accounting Standard Codification (ASC) Topic 410, Asset Retirement and Environmental Obligations . Accrued asset retirement obligations are recorded at net present value and discounted over the life of the lease. Asset retirement obligations, included in other non-current liabilities were $179,000 and $170,000 at January 31, 2019 and 2018 , respectively. January 31, 2019 2018 Balance at beginning of period $ 170,000 $ 590,000 Decrease in obligation — (425,000 ) Accretion expense 9,000 5,000 Balance at end of period $ 179,000 $ 170,000 Impairment of Long-Lived Assets An impairment loss is recognized in the event facts and circumstances indicate the carrying amount of a long-lived asset may not be recoverable, and an estimate of future undiscounted cash flows is less than the carrying amount of the asset. Impairment is recorded based on the excess of the carrying amount of the impaired asset over the fair value. Generally, fair value represents the Company’s expected future cash flows from the use of an asset or group of assets, discounted at a rate commensurate with the risks involved. There were no impairments for fiscal years ended January 31, 2019 and 2018 . Net Loss per Share Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding. Diluted net loss per share is calculated by dividing net income by the weighted-average number of common shares outstanding plus the dilutive effect of stock award grants. The following table sets forth the computation of basic and diluted loss per share: January 31, In thousands, except per share data 2019 2018 Numerator Net loss $ (1,614 ) $ (3,209 ) Denominator Weighted-average shares — basic 15,421 15,244 Dilutive effect of common stock equivalents from equity incentive plans — — Weighted-average shares — diluted (a) 15,421 15,244 Net loss per common share Basic $ (0.10 ) $ (0.21 ) Diluted (0.10 ) (0.21 ) (a) For fiscal year 2019 and 2018, approximately 149,000 and 147,000 shares of common stock equivalents were excluded in the computation of diluted net income per share, as the effect would be anti-dilutive since the Company reported a net loss. Environmental Costs The Company is subject to numerous environmental laws and regulations in the various jurisdictions in which it operates that (a) govern operations that may have adverse environmental effects, such as the discharge of materials into the environment, as well as handling, storage, transportation and disposal practices for solid and hazardous wastes, and (b) impose liability for response costs and certain damages resulting from past and current spills, disposals or other releases of hazardous materials. Normal, recurring expenses related to operating the Company's factories in a manner that meets or exceeds environmental laws and regulations are matched to the cost of producing inventory. Despite our efforts to comply with existing laws and regulations, compliance with more stringent laws or regulations or stricter interpretation of existing laws, may require additional expenditures by us, some of which may be material. We reserve amounts for such matters when expenditures are probable and reasonably estimable. Costs incurred to investigate and remediate environmental waste are expensed, unless the remediation extends the useful life of the assets employed at the site. At January 31, 2019 and 2018 , the Company had not capitalized any remediation costs and had not recorded any amortization expense in fiscal years 2019 and 2018 . Advertising Costs Advertising costs are expensed in the period during which the advertising space is run. Selling, general and administrative expenses include advertising costs for the years ended January 31, 2019 and 2018 of $1,134,000 and $974,000 , respectively. Prepaid advertising costs reported as a prepaid asset on the accompanying consolidated balance sheet at January 31, 2019 and 2018 , were $254,000 and $355,000 , respectively. Product Warranty Expense The Company provides a product warranty on most products. The standard warranty offered on products sold through January 31, 2013 is ten years. Effective February 1, 2014 through December 31, 2016, the Company modified its warranty to a limited lifetime warranty. Effective January 1, 2017, the Company modified the warranty offered to provide specific warranty periods by product component, with no warranty period longer than ten years. The Company generally provides that customers can return a defective product during the specified warranty period following purchase in exchange for a replacement product or the repair of the product by the Company at no charge to the customer. The Company determines whether replacement or repair is appropriate in each circumstance. The Company uses historic data to estimate appropriate levels of warranty reserves. Because product mix, production methods and raw material sources change over time, historic data may not always provide precise estimates for future warranty expense. The Company recorded warranty reserves of $700,000 and $925,000 as of January 31, 2019 and 2018 , respectively, as other long-term liabilities in the accompanying consolidated balance sheets. The current portion of the warranty reserve was $325,000 and $400,000 as of January 31, 2019 and 2018 , respectively, and included in other accrued liabilities in the accompanying consolidated balance sheets. Self-Insurance In 2019 and 2018 , the Company was self-insured for product and general liability losses up to $250,000 per occurrence, workers’ compensation losses up to $250,000 per occurrence, and auto liability up to $50,000 per occurrence. Actuaries assist the Company in determining its liability for the self-insured component of claims, which have been discounted to their net present value utilizing a discount rate of 4.00% in 2019 and 2.00% in 2018 . Stock-Based Compensation Plans The Company recognizes stock-based compensation cost for shares that are expected to vest, on a straight-line basis, over the requisite service period of the award. Virco issued a 10% stock dividend or 3/2 stock split every year beginning in 1983 through 2003. Although the stock dividend had no cash consequences to the Company, the accounting methodology required for 10% dividends has affected the equity section of the balance sheet. When the Company records a 10% stock dividend, 10% of the market capitalization of the Company on the date of the declaration is reclassified from retained earnings to additional paid-in capital. During the period from 1983 through 2003, the cumulative effect of the stock dividends has been to reclassify over $122 million from retained earnings to additional paid-in capital. The equity section of the balance sheet on January 31, 2019 reflects additional paid-in capital of approximately $118 million and accumulated deficit of approximately $52 million . Other than the losses incurred during 2004-2006, 2011-2014 and 2018-2019, the accumulated deficit is a result of the accounting reclassification and is not the result of accumulated losses. Accumulated Other Comprehensive (Loss) Income, Net of Tax The following table summarizes the changes in accumulated balances of other comprehensive (loss) income for the years ended January 31, 2019 and 2018 : January 31, (in thousands) 2019 2018 Balance as of beginning of year $ (9,259 ) $ (11,394 ) Other comprehensive (loss) income before reclassifications (1,116 ) 1,180 Amounts reclassified from AOCI 1,333 955 Net current period other comprehensive income 217 2,135 Balance as of end of year $ (9,042 ) $ (9,259 ) The reclassifications out of accumulated other comprehensive (loss) income of $1,333,000 and $955,000 for the years ended January 31, 2019 and 2018 , respectively, related to amortization of actuarial losses and settlements. Revenue Recognition The Company adopted Financial Accounting Standards Board (“FASB”) ASC 606, Revenue from Contracts with Customers (“ASC 606”) effective February 1, 2018 using the modified retrospective method to apply this guidance to all open contracts at the date of initial application. The results of applying ASC 606 were insignificant and did not have a material impact on our consolidated financial condition, results of operations, cash flows, business processes, controls or systems. The Company manufactures, markets and distributes a wide variety of school and office furniture to wholesalers, distributors, educational institutions and governmental entities. Revenue is recorded for promised goods or services when control is transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. Contractual Arrangements with Customers The Company's sales generally involve a single performance obligation to deliver goods pursuant to customer purchase orders. Prices for our products are based on published price lists and customer agreements. The Company has determined that the performance obligations are satisfied at a point in time when the Company completes delivery per the customer contract. The majority of sales are free on board ("FOB") destination where the destination is specified per the customer contract and may include delivering the furniture into the classroom, school site or warehouse. Sales of furniture that are sold FOB factory are typically made to resellers of our product, who in turn provide logistics to the ultimate customer. Once a product has been delivered per the shipping terms, the customer is able to direct the use of, and obtain substantially all of the remaining benefits from, the asset. The Company considers control to have transferred upon shipment or delivery in accordance with shipping terms, because the Company has a present right to payment at that time, the customer has legal title to the asset, the Company has transferred physical possession of the asset, and the customer has significant risks and rewards of ownership of the asset. Sales are recorded net of discounts, sales incentives and rebates, sales taxes and estimated returns and allowances. The Company offers sales incentives and discounts through various regional and national programs to our customers. These programs include product rebates, product returns allowances and trade promotions. Variable consideration for these programs is estimated in the transaction price at contract inception based on current sales levels and historical experience using the expected value method, subject to constraint. The Company generates revenue primarily by manufacturing and distributing products through resellers and direct-to-customers. Control transfers to both resellers and direct customers at a point in time when the delivery process is complete as determined by the corresponding shipping terms. Therefore, we do not consider them to be meaningfully different revenue streams given similarities in the nature of the products, performance obligation and distribution processes. Sales are predominately in the United States and to a similar class of customer. We do not manage or evaluate the business based on product line or any other discernable category. For product produced by and sourced from third parties, management has determined that it is the principal in all cases, since it (i) bears primary responsibility for fulfilling the promise to the customer; (ii) bears inventory risk before and/or after the good or service is transferred to the customer; and (iii) has discretion in establishing the price for the sale of good or service to the customer. Contract Assets and Liabilities Payment terms are established on the Company’s pre-established credit requirements based upon an evaluation of customers’ credit quality. Most customers obtain payment terms between 1-30 days and an asset is recognized for the related accounts receivable. Contract liabilities are recognized for contracts where payment has been received in advance of delivery. The contract liability balance can vary significantly depending on the timing of when an order is placed and when shipment or delivery occurs. As of January 31, 2019, other than accounts receivable, the Company had no material contract assets, contract liabilities or deferred contract costs recorded on its condensed consolidated balance sheet. Costs of fulfilling customers’ purchase orders, such as shipping, handling and delivery, which occur prior to the transfer of control, are recognized in selling, general and administrative expense when incurred. Practical Expedients & Optional Exemptions Significant Financing Component - as we expect the period between when we transfer control of the promised good or service to a customer and when the customer pays for that good or service will be one year or less, the Company elected to apply the practical expedient for significant financing components. Remaining Performance Obligations - due to the short-term duration of the Company’s contracts with customers and fulfillment of performance obligations, the Company has elected not to disclose the information regarding the remaining performance obligations as of the end of each reporting period or when the Company expects to recognize this revenue. Cost to Obtain a Customer - we pay certain costs to obtain a customer contract such as commissions. As our customer contracts have a contractual term of one year or less, we have elected to apply the practical expedient and expense these costs in selling, general and administrative expense as incurred, which is consistent with our historical practice. For fiscal year ended January 31, 2018, the Company recognizes revenue in accordance with FASB ASC Topic 605, Revenue Recognition . Revenue is recognized when title passes under its various shipping terms, when classroom delivery services are complete and when collectability is reasonably assured. The Company reports sales net of sales returns and allowances, sales taxes imposed by various government authorities, cash discounts and rebate to customers. In most instances, the Company sells furniture on bids and contracts, which may include multiple elements. For sales that include freight to the customer, many sales are delivered on the same day shipped, with an average delivery being in route for 1 to 3 days. Classroom delivery, which involves carrying the furniture to the classroom and setting the desks and chairs in place, typically occurs the day the furniture is delivered. In accordance with ASC 605, Revenue Recognition - Multiple-Element Arrangements, revenue arrangements with multiple deliverables are generally accounted for by the Company on a combined unit of accounting as the furniture delivery and classroom delivery are generally provided at the same time. We recognize the consideration for the combined unit of accounting once the final item has been delivered and installed. Revenue includes freight charged to customers; related costs are recorded in selling and administrative expense. Rebates, discounts and other marketing program expenses directly related to the sale are recorded as a reduction to net sales. Delivery Costs For the fiscal years ended January 31, 2019 and 2018 , shipping and classroom delivery costs of approximately $22,150,000 , $19,299,000 , respectively, were included in selling, general and administrative expenses in the accompanying consolidated statements of operations. Accounting for Income Taxes The Company recognizes deferred income taxes under the asset and liability method of accounting for income taxes in accordance with the provisions of FASB ASC Topic 740, Accounting for Income Taxes . Deferred income taxes are recognized for differences between the financial statement and tax basis of assets and liabilities at enacted statutory tax rates in effect for the years in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance against deferred tax assets is recorded when it is determined to be more likely than not that the asset will not be realized. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Jan. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Updates : On February 1, 2018, we adopted FASB ASC 606 as discussed in Note 1, under Revenue Recognition. Accounting Standards Update (“ASU”) 2017-07, Compensation-Retirement Benefits (Topic 715) : Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost - This ASU requires employers to disaggregate the service cost from other components of net periodic benefit costs and to disclose the income statement line item in which each component is included. This guidance requires service costs to be reported in the same line item as other compensation costs, and the other components of net periodic benefit costs (which include interest costs, expected return on plan assets and actuarial gains and losses) to be reported outside of operating income. We adopted this guidance on February 1, 2018. Application was required on a retrospective basis and resulted in a reclassification of $1,257,000 and $1,181,000 of expense from “Selling and administrative expenses” into “Pension expense” for the years ended January 31, 2019 and 2018, respectively. Refer to Note 4 for further information. ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SAB 118) - This ASU allows SEC registrants to record provisional amounts in earnings due to the complexities involved in accounting for the enactment of the Tax Cuts and Jobs Act (TCJA). We recognized the estimated income tax effects of the TCJA in accordance with SAB 118. Refer to Note 6 for further information. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments - We adopted this guidance on February 1, 2018, and it did not materially impact our consolidated statements of cash flows. ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income - This ASU provides financial statement preparers with an option to reclassify stranded tax effects within accumulated other comprehensive income in each period in which the effect of the change in the U.S. federal corporate income tax rate in the TCJA is recorded. We have elected not to reclassify the stranded tax effects within accumulated other comprehensive income. Recently Issued Accounting Updates But Not Yet Adopted: ASU 2016-02, Leases (Topic 842) - Requires an entity to recognize both assets and liabilities arising from financing and operating leases, along with additional qualitative and quantitative disclosures. In July 2018, the FASB issued ASU 2018-11, which provides entities with a new transition method where comparative periods presented in financial statements in the period of adoption will not need to be restated. Under the new transition method, an entity initially applies the provisions of Topic 842 at the adoption date, versus at the beginning of the earliest period presented, and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The new standard becomes effective for the Company at the beginning of fiscal 2020. The Company will adopt the standard in the first quarter of fiscal 2020 using the modified retrospective transition option of applying the new standard at the adoption date. All necessary changes required by the new standard, including those to the Company's accounting policies, business process, systems, controls, and disclosures, have been identified and are in process of implementation as of the beginning of fiscal 2020. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carry forward the historical lease classification. The Company is finalizing the impact of the new standard which will result in the recording of a right of use asset and lease liability on the consolidated balance sheet derived from the present value of future minimum lease payments which are disclosed in Note 7. The impact of the new standard will not have a material impact upon the Company’s consolidated statements of operations, cash flows or equity. ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) , which replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220), addresses the impact of the U.S. Tax Cuts and Jobs Act (the "Tax Act") on tax effects presented in other comprehensive income. The amended guidance allows a reclassification from accumulated other comprehensive income to retained earnings for the tax effects of items within accumulated other comprehensive income resulting from the Tax Act. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. The amendments may be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. ASU No. 2018-13, Fair Value Measurement (Topic 820)-Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement , improves the effectiveness of fair value measurement disclosures and modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement . The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. ASU No. 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans , which amends ASC 715-20, Compensation - Retirement Benefits - Defined Benefit Plans - General . The amended guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in accumulated Other Comprehensive Income expected to be recognized in net periodic benefit costs over the next fiscal year and (b) the effects of a one percentage point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for post-retirement health care benefits. Additional disclosures include descriptions of significant gains and losses affecting the benefit obligation for the period. The amended guidance is effective for fiscal years ending after December 15, 2020. The adoption of this guidance will modify our disclosures but will not have a material effect on our consolidated financial statements. |
Debt
Debt | 12 Months Ended |
Jan. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Outstanding balances (in thousands) for the Company’s long-term debt were as follows: January 31, 2019 2018 Revolving credit line $ 14,858 $ 10,059 Other 6,556 6,622 Total debt 21,414 16,681 Less current portion 5,504 4,681 Non-current portion $ 15,910 $ 12,000 The Company has a Revolving Credit and Security Agreement (the “Credit Agreement”) with PNC Bank, National Association, as administrative agent and lender (“PNC”). The credit agreement has been amended eighteen times since it’s origination in 2011 through fiscal 2019, which, among other things, extended the maturity date of the Credit Agreement for three years until March 19, 2023, increased the maximum availability under the Credit Agreement to $60,000,000 with seasonal adjustments to the credit limit and subject to borrowing base limitations, and includes a sub-limit of up to $3,000,000 for issuances of letters of credit, modified, eliminated or waived covenants, amended seasonal advances and established a 2,500,000 line for equipment financing. The Revolving Credit Facility is an asset-based line of credit that is subject to a borrowing base limitation and generally provides for advances of up to 85% of eligible accounts receivable, plus a percentage equal to the lesser of 60% of the value of eligible inventory or 85% of the liquidation value of eligible inventory, plus an amount ranging from $8,000,000 to $14,000,000 from December 1 through August 31 of each year, minus undrawn amounts of letters of credit and reserves. The Revolving Credit Facility is secured by substantially all of the Borrowers' personal property and certain of the Borrowers' real property. The principal amount outstanding under the Credit Agreement and any accrued and unpaid interest is due no later than March 19, 2023, and the Revolving Credit Facility is subject to certain prepayment penalties upon earlier termination of the Revolving Credit Facility. Prior to the maturity date, principal amounts outstanding under the Credit Agreement may be repaid and reborrowed at the option of the Borrowers without premium or penalty, subject to borrowing base limitations, seasonal adjustments and certain other conditions. The Revolving Credit Facility bears interest, at the Borrowers' option, at either the Alternate Base Rate (as defined in the Credit Agreement) or the Eurodollar Currency Rate (as defined in the Credit Agreement), in each case plus an applicable margin. The applicable margin for Alternate Base Rate loans is a percentage within a range of 0.75% to 1.25% , and the applicable margin for Eurodollar Currency Rate loans is a percentage within a range of 1.75% to 2.25% , in each case based on the EBITDA of the Borrowers at the end of each fiscal quarter and may be increased at PNC's option by 2.0% during the continuance of an event of default. Accrued interest with respect to principal amounts outstanding under the Credit Agreement is payable in arrears on a monthly basis for Alternative Base Rate loans, and at the end of the applicable interest period but at most every three months for Eurodollar Currency Rate loans. The interest rate at January 31, 2019 was 6.25% . On March 13, 2017 the Company entered into Amendment No. 14 which established an equipment line to facilitate the capital expenditure plan for fiscal 2018 and to establish covenants for fiscal 2018. On June 8, 2017, the Company entered into Amendment No. 15 to the Credit Agreement which, among other things, will allow the restatement of the amount of revolving advances to $14,000,000 for June 2017 and $11,000,000 for July 2017 and extend the time to borrow under the $2,500,000 Equipment Line until March 12, 2018. In August 2017, the Company purchased a manufacturing building in Conway Arkansas for $7,200,000 with Virco making a 20% down payment and the seller providing financing for the remaining balance of $5,760,000 for 20 years at a fixed rate of 4% per year. In connection to this purchase, the Company entered into Amendment No. 16 to the Credit Agreement with PNC Bank which, among other things, will (a) consent to the acquisition of the building, (b) permit the Company to incur the additional indebtedness and (c) amend the Credit Agreement in certain respects, which Lenders and Agent are willing to do on the terms and subject to the conditions contained in this Amendment. On March 19, 2018, the Company entered into Amendment No. 17, which amended the Credit Agreement by (i) extending the maturity date of the Credit Agreement for three years until March 19, 2023, (ii) allowing dividends and stock buyback up to $2,000,000 in aggregate for any fiscal year, (iii) setting forth the minimum EBITDA financial covenant for fiscal quarter ending April 30, 2018 at ( $3,767,000 ) and two consecutive fiscal quarters ending July 31, 2018 at $6,402,000 , (iv) increasing the Maximum Revolving Advance Amount from $50,000,000 to $60,000,000 , and (v) setting forth the minimum fixed charge coverage ratio of not less than 1.10 to 1.00 commencing with the consecutive four fiscal quarter period ending October 31, 2018 and measured as of the end of each fiscal quarter until the maturity date of the Credit Agreement. In connection with the Seventeenth Amendment, the Borrowers also agreed to pay to PNC Bank a non-refundable extension fee of $250,000 . In March 2019, the Company entered into Amendment No. 19 which, among other things, (i) increased the Maximum Revolving Advance Amount to $65,000,000 with seasonal adjustments to the credit limit and subject to borrowing base limitations, (ii) increased seasonal advance to $15,000,000 from January to July of each year, (iii) increased equipment loan to $2,000,000 , (iv) to reduce borrowings under the line to less than or equal to $10,000,000 for a period of 30 consecutive days during the fourth quarter of each fiscal year. In connection with Amendment No. 19, the Borrowers also agreed to pay to PNC Bank a non-refundable fee of $24,000 . The clean down provision allows the Company to maintain a minimum outstanding balance to be carried on an uninterrupted period extending beyond one year and ultimately due at the schedule maturity date in March 2023. As a result of Amendment No. 19, the clean down limit was increased to $10,000,000 , thereby allowing the Company to refinance an additional $2,000,000 of its short-term borrowings under the line of credit on a long-term basis at January 31, 2019 . The Company believes that normal operating cash flow will allow it to meet the clean down requirement with no adverse impact on the Company's liquidity. Events of default (subject to certain cure periods and other limitations) under the Credit Agreement include, but are not limited to, (i) non-payment of principal, interest or other amounts due under the Credit Agreement, (ii) the violation of terms, covenants, representations or warranties in the Credit Agreement or related loan documents, (iii) any event of default under agreements governing certain indebtedness of the Borrowers and certain defaults by the Borrowers under other agreements that would materially adversely affect the Borrowers, (iv) certain events of bankruptcy, insolvency or liquidation involving the Borrowers, (v) judgments or judicial actions against the Borrowers in excess of $250,000 , subject to certain conditions, (vi) the failure of the Company to comply with Pension Benefit Plans (as defined in the Credit Agreement), (vii) the invalidity of loan documents pertaining to the Credit Agreement, (viii) a change of control of the Borrowers and (ix) the interruption of operations of any of the Borrowers' manufacturing facilities for five consecutive days during the peak season or fifteen consecutive days during any other time, subject to certain conditions. For the year ended January 31, 2019, the Company was in violation of the minimum fixed charge coverage ratio resulting in an Event of Default. In April 2019, the Company entered into Amendment No. 20 which, among other things, waived the covenant violation for the fourth quarter of fiscal 2019, amended the minimum EBITDA covenant and the fixed charge coverage ratio for fiscal 2020, and eliminated the Company’s ability to pay dividends or repurchase stock commencing on February 1, 2019 and ending on January 31, 2020. The fixed charge coverage ratio is as follows: (i) for the consecutive two fiscal quarter period ending July 31, 2019, 2.25 to 1.00, and (ii) for each consecutive four fiscal quarter period of Borrowers ending thereafter, 1.10 to 1.00. Minimum EBITDA for the three consecutive fiscal month period ending on April 30, 2019, may not be less than (negative) $5,000,000 . In addition, certain restrictions were placed upon the Company’s capital expenditures limiting the amount: (a) in the first fiscal quarter ending April 30, 2019 in an aggregate amount in excess of $900,000 , (b) in the consecutive two fiscal quarter periods ending July 31, 2019 in an aggregate amount in excess of $1,900,000 , (c) in the consecutive three fiscal quarter period ended October 31, 2019 in an aggregate amount in excess of (i) $3,900,000 , if an only if, the Borrowers’ EBITDA for the consecutive two fiscal quarter period ending July 31, 2019 exceeds $8,500,000 or (ii) $2,900,000 if Borrowers’ EBITDA for such period is less than or equal to $8,500,000 and (d) in the consecutive four fiscal quarter period ending January 31, 2020 or any fiscal year thereafter, in an aggregate amount for all Borrowers in excess of $8,000,000 . In connection with Amendment No. 20 the Borrowers also agreed to pay to PNC Bank a non-refundable fee of $125,000 . The Company believes that normal operating cash flow will allow it to meet the clean down requirement with no adverse impact on the Company's liquidity. Pursuant to the Credit Agreement, substantially all of the Borrowers' accounts receivable are automatically and promptly swept to repay amounts outstanding under the Revolving Credit Facility upon receipt by the Borrowers. Due to this automatic liquidating nature of the Revolving Credit Facility, if the Borrowers breach any covenant, violate any representation or warranty or suffer a deterioration in their ability to borrow pursuant to the borrowing base calculation, the Borrowers may not have access to cash liquidity unless provided by PNC at its discretion. In addition, certain of the covenants and representations and warranties set forth in the Credit Agreement contain limited or no materiality thresholds, and many of the representations and warranties must be true and correct in all material respects upon each borrowing, which the Borrowers expect to occur on an ongoing basis. There can be no assurance that the Borrowers will be able to comply with all such covenants and be able to continue to make such representations and warranties on an ongoing basis. The Company's line of credit with PNC is structured to provide seasonal credit availability during the Company's peak summer season. Approximately $11,231,000 was available for borrowing as of January 31, 2019 . As of January 31, 2019 , long-term debt repayments are approximately as follows (in thousands): Year ending January 31, 2020 $ 5,504 2021 10,654 2022 405 2023 229 2024 238 Thereafter 4,384 Management believes that the carrying value of debt approximated fair value at January 31, 2019 and 2018 , as all of the long-term debt bears interest at variable rates based on prevailing market conditions. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Jan. 31, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans Pension Plans The Company maintains two defined benefit pension plans, the Virco Employees Retirement Plan (“Employee Plan”), and the Virco Important Performers Retirement Plan (“VIP Plan”). The annual measurement date for both plans is January 31. The Company and its subsidiaries cover all employees hired prior to December 31, 2003 under the Employee Plan, which is a qualified noncontributory defined benefit retirement plan. Benefits under the Employee Plan are based on years of service and career average earnings. Benefit accruals under the Employee Plan were frozen effective December 31, 2003. All benefits were fully vested on January 31, 2019 and 2018. The Company also provides a supplementary retirement plan for certain key employees, the VIP Plan. The VIP Plan provides a benefit up to 50% of average compensation for the last five years in the VIP Plan offset by benefits earned under the Employee Plan. Benefit accruals under the VIP Plan were frozen effective December 31, 2003. Substantially all assets, consisting of life insurance contracts, securing the VIP Plan are held in a rabbi trust. The cash surrender values of the life insurance policies are included in other assets in the accompanying consolidated balance sheets. The cash surrender values of the life insurance policies securing the VIP Plan were $3,469,000 and $3,411,000 at January 31, 2019 and 2018 , respectively. Death benefits payable under life insurance policies held by the Plan were approximately $9,102,000 and $9,095,000 at January 31, 2019 and 2018 , respectively. Accounting policy regarding pensions requires management to make complex and subjective estimates and assumptions relating to amounts which are inherently uncertain. Three primary economic assumptions influence the reported values of plan liabilities and pension costs. The Company takes the following factors into consideration: discount rate, assumed rate of return and rate of increase in compensation. The discount rate represents an estimate of the rate of return on a portfolio of high-quality, fixed-income securities that would provide cash flows that match the expected benefit payment stream from the plans. When setting the discount rate, the Company utilizes a spot-rate yield curve developed from high-quality bonds currently available which reflects changes in rates that have occurred over the past year. This assumption is sensitive to movements in market rates that have occurred since the preceding valuation date, and therefore, may change from year to year. Because the Company’s future benefit accruals for both benefit plans were frozen in 2013, the compensation increase assumption had no impact on pension expense, accumulated benefit obligation or projected benefit obligation for the period ended January 31, 2019 or 2018 . The assumed rate of return on plan assets represents an estimate of long-term returns available to investors who hold a mixture of stocks, bonds and cash equivalent securities. When setting its expected return on plan asset assumptions, the Company considers long-term rates of return on various asset classes (both historical and forecasted, using data collected from various sources generally regarded as authoritative) in the context of expected long-term average asset allocations for its defined benefit pension plan. The Company maintains a trust for and funds the pension obligations for the Employee Plan. The Board of Directors appoints a Retirement Plan Committee that establishes a policy for investment and funding strategies. Approximately 55% of the trust assets are managed by investment advisors and held in common trust funds with the balance managed by the Retirement Plan Committee. The Retirement Plan Committee has established target asset allocations for its investment advisors, who invest the trust assets in a variety of institutional collective trust funds. The Company’s investment advisors have developed a funding strategy that moves fund asset allocation from equity and other investments to fixed income instruments designed to mirror the changes in discount rates as the Plan becomes more fully funded. At January 31, 2019 , approximately 14% of the trust assets were held in these investments. The Retirement Plan Committee receives quarterly reports addressing investment returns, funded status of the plan and progress on the glidepath to fully funded status from the investment advisors and meets periodically with them to discuss investment performance. At January 31, 2019 and 2018 , the amount of the plan assets invested in bond or short-term investment funds was 16% and 15% , respectively, and the balance of the trust was held in equity funds or other investments. The trust does not hold any Company stock. It is the Company's policy to contribute adequate funds to the trust accounts to maintain the funded status of the Employee Plan at a level which is adequate to avoid significant restrictions to the Employee Plan under the Pension Protection Act of 2006. The Company contributed $0.8 million and $1.4 million , to the trust in 2019 and 2018 , respectively. Contributions during fiscal year 2020 will depend upon actual investment results and benefit payments but are anticipated to be approximately $4.5 million for the Employee Plan. During fiscal 2019 and 2018 , the Company paid approximately $281,000 and $345,000 , respectively, in benefits per year under the non-qualified plans. It is anticipated that contributions to non-qualified plans will be approximately $281,000 for fiscal 2020 . At January 31, 2019 , accumulated other comprehensive loss of approximately $9 million , net of tax, is attributable to the pension plans. The following tables set forth (in thousands) the combined funded status of the Company’s pension plans at January 31, 2019 and 2018 : Combined Employee Retirement Plans 1/31/2019 1/31/2018 Change in Benefit Obligation Benefit obligation at beg. of year $ 40,181 $ 39,761 Service cost — — Interest cost 1,459 1,593 Participant contributions — — Amendments — — Actuarial (gains) losses (2,044 ) 930 Plan settlement (2,176 ) — Benefits paid (1,121 ) (2,103 ) Benefit obligation at end of year $ 36,299 $ 40,181 Change in Plan Assets Fair value at beg. of year $ 27,259 $ 22,911 Actual return on plan assets (1,557 ) 4,726 Company contributions 1,122 1,725 Settlements (2,176 ) — Benefits paid (1,121 ) (2,103 ) Fair value at end of year $ 23,527 $ 27,259 Funded Status Unfunded status of the plan $ (12,772 ) $ (12,922 ) Amounts Recognized in Statement of Financial Position Current liabilities $ (322 ) $ (346 ) Non-current liabilities (12,450 ) (12,576 ) Accrued benefit cost $ (12,772 ) $ (12,922 ) Amounts Recognized in Statement of Financial Position and Operations Accrued benefit liability (12,772 ) (12,922 ) Accumulated other comp. loss (gain) 8,319 8,612 Net amount recognized $ (4,453 ) $ (4,310 ) Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI Unrecognized net actuarial loss (gain) $ 8,319 $ 8,612 Unamortized prior service costs — — Net initial asset recognition — — $ 8,319 $ 8,612 Combined Employee Retirement Plans 1/31/2019 1/31/2018 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Net loss (gain) $ 1,039 $ (2,447 ) Prior service cost — — Amortization of (loss) gain (1,333 ) (955 ) Amortization of prior service cost (credit) — — Amortization of initial asset — — Total recognized in other comprehensive (loss) income $ (294 ) $ (3,402 ) Items to be Recognized as a Component of Periodic Pension Cost for next fiscal year Prior service cost $ — $ — Net actuarial loss (gain) 706 692 $ 706 $ 692 Supplemental Data Projected benefit obligation $ 36,299 $ 40,181 Accumulated benefit obligation 36,299 40,181 Fair value of plan assets 23,527 27,259 Components of Net Cost Service cost $ — $ — Interest cost 1,459 1,593 Expected return on plan assets (1,535 ) (1,367 ) Amortization of transition amount — — Recognized (gain) loss due to settlement — — Amortization of prior service cost — — Recognized net actuarial loss 1,333 955 Benefit cost $ 1,257 $ 1,181 Estimated Future Benefit Payments FYE 01-31-2020 $ 6,022 FYE 01-31-2021 2,171 FYE 01-31-2022 2,151 FYE 01-31-2023 2,087 FYE 01-31-2024 2,085 FYE 01-31-2025 to 2029 10,524 Total $ 25,040 Weighted Average Assumptions to Determine Benefit Obligations at Year-End Discount rate 3.75% - 4.10% 3.75% - 4.0% Rate of compensation increase N/A N/A Weighted Average Assumptions to Determine Net Periodic Pension Cost Discount rate 4.25% 4.25% Expected return on plan assets 6.50% 6.50% Rate of compensation increase N/A N/A The Employee Plan held no Level 2 or 3 investments at January 31, 2019 and 2018. The following table sets for the fair value of the Level 1 investments for the Employee Plan as of January 31, 2019 and 2018: Fair Value Measurements of Plan Assets Employee Plan 1/31/2019 1/31/2018 Level 1 Measurement Cash & Cash Equivalents $ — $ — Common Stock 9,345 9,701 PNC Govt Money Fund 630 1,030 Vanguard Total Bond — — Ishares Credit Bond ETF — 340 Vanguard INTM Term Investment 283 702 Vanguard LT Investment 1,304 1,973 Ishares Russell 2000 1,672 2,047 Ishares Russell MID-CAP 1,890 2,129 Ishares Emerging Markets 1,130 1,338 Ishares MCSI RAFE 1,534 1,838 Ishares S&P Index 2,895 4,825 Vanguard INTM Term Treasury 281 — Vanguard LT Treasury 1,279 — Total Level 1 Investments $ 22,243 $ 25,923 At January 31, 2018, the Level 1 investments presented in the table above, excluding cash & cash equivalents and common stock, were reclassified from previously reported as Level 2 investments in the Company’s previously issued fiscal 2018 consolidated financial statements to conform to the current policy. In addition, the Managed Investment Fund, was previously presented as a Level 2 investments at January 31, 2018, but has been reclassified to present as a net asset value per share investment not subject to the fair value hierarchy. The mutual fund investment is valued using the net asset value (“NAV”) as a practical expedient and is not required to be categorized in the fair value hierarchy table. The total fair value of this investment was $1,284,000 and $1,336,000 as of January 31, 2019 and January 31, 2018, respectively, and is not included in the table above. In relation to this investment, there is no unfunded commitments and the shares can be redeemed on a daily basis with minimal restrictions. Events that may lead to a restriction to transact with the fund is not considered probable. 401(k) Retirement Plan The Company’s retirement plan, which covers all U.S. employees, allows participants to defer from 1% to 75% of their eligible compensation through a 401(k)-retirement program. Through December 31, 2001, the plan included an employee stock ownership component. The plan continues to include Virco stock as one of the investment options. At January 31, 2019 and 2018 , the plan held 648,565 shares and 564,375 shares of the Company’s common stock, respectively. Effective January 1, 2018, the Company initiated an employer match. For the fiscal years ended January 31, 2019 and 2018 , the compensation costs incurred for employer match was $738,000 and $44,000 , respectively. Life Insurance The Company provided post-retirement life insurance to certain retired employees under the Dual Option Life Insurance Plan (the "Plan"). Effective January 2004, the Company terminated this plan for active employees. The Company has purchased split-dollar life insurance on the lives of the remaining covered participants. Death benefits due to participants are approximately $2,350,000 . Cash surrender values of these policies, which are included in other assets in the accompanying consolidated balance sheets, were $2,098,000 and $2,092,000 at January 31, 2019 and 2018 , respectively. Death benefits payable under the policies were approximately $4,256,000 and $4,486,000 at January 31, 2019 and 2018 , respectively. Death benefits received under the Plan in excess of the benefit obligation will be retained in the trust and used to secure and fund benefits payable under the VIP Pension Plan. The Company maintains a rabbi trust to hold assets related to the Dual Option Life Insurance Plan. All assets securing this plan are held in the rabbi trust. The following sets forth the Company's change in death benefits payable during the years ended January 31, 2019 and 2018 : 1/31/2019 1/31/2018 Liability beginning of year $ 2,088,000 $ 2,184,000 Accretion expense 49,000 54,000 Death benefits paid (100,000 ) (150,000 ) Liability end of year $ 2,037,000 $ 2,088,000 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock-Based Compensation Stock Incentive Plans The Company's has one stock plan, the 2011 Employee Stock Incentive Plan (the “2011 Plan”). Under the 2011 Plan, the Company may grant an aggregate of 1,000,000 shares to its employees and non-employee directors in the form of stock options or awards. Restricted stock awards granted under the 2011 Plan are expensed ratably over the vesting period of the awards. The Company determines the fair value of its restricted stock awards and related compensation expense as the difference between the market value of the awards on the date of grant less the exercise price of the awards granted. There were 55,555 awards granted and 226,804 awards were vested during fiscal 2019 . As of January 31, 2019 , there were approximately 268,277 awards available for future issuance under the 2011 Plan. Accounting for the Plans A summary of the Company’s restricted stock unit awards activity, and related information for the following years ended January 31, is as follows: 2019 2018 Restricted stock units Weighted- Average Exercise Price Restricted stock units Weighted- Average Exercise Price Outstanding at beginning of year 692,404 $ 4.25 491,284 $ 2.46 Granted 55,555 4.49 504,404 4.95 Exercised (226,804 ) 4.63 (259,284 ) 4.86 Forfeited (20,000 ) 4.01 (44,000 ) 4.42 Outstanding at end of year 501,155 4.44 692,404 4.25 Weighted-average fair value of restricted stock units granted during the year — 4.49 — 4.95 The aggregate fair value of restricted stock awards vested during fiscal years 2019 and 2018 was $1,050,103 and $1,260,120 , respectively. The Company recognized compensation expense, net of forfeitures, for the restricted stock awards of $907,000 and $830,000 for fiscal 2019 and 2018, respectively. The Company records forfeitures as incurred. The weighted-average grant-date fair value of restricted stock awards is the quoted market price of the Company’s common stock on the date of grant, as shown in the table above. The weighted-average grant-date fair value of restricted stock awards granted in fiscal 2019 and 2018 was $4.49 per share and $4.95 per share, respectively. As of January 31, 2019, there was $1.6 million of total unrecognized compensation expense related to restricted stock awards. That expense is expected to be recognized over a weighted-average period of 2.84 years . To satisfy employee minimum statutory tax withholding requirements for restricted stock awards that vest, the Company withholds and retires a portion of the vesting common shares, unless an employee elects to pay cash. In fiscal 2019 and 2018, the Company withheld 57,456 and 73,749 common shares, respectively, with a total value of $0.3 million each year. These amounts are presented as a cash outflow from financing activities in the accompanying consolidated statement of cash flows. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax expense for the last two years is reconciled to the statutory federal income tax rates of 21% and 35% for the tax years ended January 31, 2019 and 2018, respectively, as follows (in thousands): 2019 2018 Statutory $ (235 ) $ 794 State taxes (net of federal tax) 186 341 Change in valuation allowance 831 410 State rate adjustment (222 ) (260 ) Change in unrecognized tax benefits 1 6 Stock Compensation (46 ) (200 ) Tax cuts and jobs act (15 ) 4,438 Expirations of attributes 28 143 Other (31 ) (49 ) Income tax expense $ 497 $ 5,623 Significant components of the expense (benefit) for income taxes (in thousands) attributed to continuing operations are as follows for the years ended January 31 (in thousands): 2019 2018 Current Federal $ (24 ) $ (296 ) State 102 98 78 (198 ) Deferred Federal (247 ) 5,270 State (165 ) 141 (412 ) 5,411 Change in Valuation Allowance 831 410 419 5,821 Income tax expense $ 497 $ 5,623 Deferred tax assets and liabilities are comprised of the following as of January 31 (in thousands): 2019 2018 Deferred tax assets Accrued vacation and sick leave $ 892 $ 1,015 Retirement plans 2,748 3,756 Insurance reserves 381 451 Warranty 182 242 Net operating loss carryforwards 5,303 4,722 Inventory 1,320 1,085 § 163 (j) Limitation 540 — Other 765 624 $ 12,131 $ 11,895 Deferred tax liabilities Tax in excess of book depreciation $ (720 ) $ (811 ) Other (57 ) (66 ) $ (777 ) $ (877 ) Valuation allowance (1,756 ) (925 ) Net long term deferred tax asset $ 9,598 $ 10,093 In assessing the realizability of deferred tax assets, the Company considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income or reversal of deferred tax liabilities during the periods in which those temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. The Company has a valuation allowance of $1,756,000 against certain state deferred tax assets that the Company does not believe it is more-likely-than-not to realize. At January 31, 2019 , the Company has net operating loss carryforwards of approximately $15,299,000 for federal and $33,429,000 for state income tax purposes, expiring at various dates through January 31, 2039. The following table summarizes the activity related to our gross unrecognized tax benefits for the years ended January 31 (in thousands): 2019 2018 Balances as of February 1, $ 38 $ 29 Increases related to prior year tax positions — 2 Decreases related to prior year tax positions (2 ) — Increases related to current year tax positions 8 16 Decreases relating to settlements with taxing authorities — — Decreases related to lapsing of statute of limitations (6 ) (9 ) Balance as of January 31, $ 38 $ 38 At January 31, 2019 , the Company’s unrecognized tax benefits associated with uncertain tax positions were $38,000 , of which $30,000 if recognized, would favorably affect the effective tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense which is consistent with the recognition of the items in prior reporting. The Company had recorded a liability for interest and penalties related to unrecognized tax benefits of $6,000 at January 31, 2019 , and $5,000 at January 31, 2018 . The years ended January 31, 2015 and subsequent years remain open for examination by the IRS and state tax authorities. The Company is currently under IRS examination for fiscal year ended January 31, 2016. The Company is not currently under state examinations. The specific timing of when the resolution of each tax position will be reached is uncertain. As of January 31, 2019 , it is reasonably possible that unrecognized tax benefits will decrease by $4,000 within the next 12 months due to the expiration of the statute of limitations. In March 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Shared-Based Payment Accounting (''ASU 2016-09''). ASU 2016-09 simplifies how several aspects of share-based payments are accounted for and presented in the financial statements. ASU 2016-09 is effective for public companies for annual reporting periods beginning after December 15, 2016. The Company adopted this ASU in the first quarter of fiscal 2018, resulting in an adjustment to beginning retained earnings on February 1, 2017 for the excess tax benefits for which a benefit could not be previously recognized of approximately $171,000 . The balance of the unrecognized excess tax benefits was reversed with the impact recorded to retained earnings. The Tax Cuts and Jobs Act (“TCJA”) was enacted on December 22, 2017. The Act reduces the US federal corporate tax rate to 21% . On December 22, 2017, Staff Accounting Bulletin No. 118 was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. In accordance with SAB 118, we have determined that $4,438,000 of the deferred tax expense recorded in connection with the remeasurement of certain deferred tax assets and liabilities was provisional amount and reasonable estimate at January 31, 2018. We finalized our accounting for the impact of the TCJA during fiscal 2019 with no material adjustments to the previous provisional amounts recognized. |
Commitments
Commitments | 12 Months Ended |
Jan. 31, 2019 | |
Commitments [Abstract] | |
Commitments | Commitments The Company has operating leases on real property and equipment that expire at various dates. The Torrance, CA office, manufacturing and distribution facility is leased under a series of 5 -year operating lease terms that would have expired on February 28, 2020. On November 14, 2017, the Company entered into a fourth amendment which extends the term of the lease for an additional 62 months through April 30, 2025 and provides for monthly base lease payments that increase after each 12-month period. The monthly base lease payments range from approximately $397,000 per month (which applies for the period from May 1, 2020 to February 28, 2021) to $447,000 per month (which applies for the period from March 1, 2024 to April 30, 2025). The Company leases trucks, automobiles and forklifts under operating leases that include certain fleet management and maintenance services. Certain of the leases contain renewal or purchase options and require payment for property taxes and insurance. The Company records rent expense for real estate on a straight-line basis based on contractual lease payments. Allowances from lessors for tenant improvements have been included in the straight-line rent expense for applicable locations. Tenant improvements are capitalized and depreciated over the remaining life of the applicable lease. Minimum future lease payments (in thousands) for operating leases in effect as of January 31, 2019 , are as follows: Year ending January 31, 2020 $ 5,045 2021 4,405 2022 5,041 2023 5,040 2024 5,192 Thereafter 6,687 Total minimum lease payments $ 31,410 Rent expense relating to operating leases was as follows (in thousands): Year ended January 31, 2019 $ 6,006 2018 5,644 The Company subleased space at one of its facilities on a month-to-month basis during 2019 and 2018 . Rental income was $40,000 for fiscal years ended January 31, 2019 and 2018 . The Company has issued purchase commitments for raw materials at January 31, 2019 , of approximately $11,296,000 . There were no commitments in excess of normal operating requirements. |
Contingencies
Contingencies | 12 Months Ended |
Jan. 31, 2019 | |
Contingencies [Abstract] | |
Contingencies | Contingencies The Company and other furniture manufacturers are subject to federal, state and local laws and regulations relating to the discharge of materials into the environment and the generation, handling, storage, transportation and disposal of waste and hazardous materials. The Company has expended, and expects to continue to spend, significant amounts in the future to comply with environmental laws. Normal recurring expenses relating to operating the Company factories in a manner that meets or exceeds environmental laws are matched to the cost of producing inventory. Despite the Company’s significant dedication to operating in compliance with applicable laws, there is a risk that the Company could fail to comply with a regulation or that applicable laws and regulations change. On these occasions, the Company records liabilities for remediation costs when remediation costs are probable and can be reasonably estimated. The Company is subject to contingencies pursuant to environmental laws and regulations that in the future may require the Company to take action to correct the effects on the environment of prior disposal practices or releases of chemical or petroleum substances by the Company or other parties. The Company has a self-insured retention for product and general liability losses up to $250,000 per occurrence, workers’ compensation liability losses up to $250,000 per occurrence and automobile liability losses up to $50,000 per occurrence. The Company has purchased insurance to cover losses in excess of the retention up to a limit of $30,000,000 . The Company has obtained an actuarial estimate of its total expected future losses for liability claims and recorded a liability equal to the net present value of $1,265,000 and $1,375,000 at January 31, 2019 and 2018 , respectively, based upon the Company’s estimated payout period of five years using a 4.0% and 2.0% discount rate, respectively. Workers’ compensation, automobile, general and product liability claims may be asserted in the future for events not currently known by management. Management does not anticipate that any related settlement, after consideration of the existing reserve for claims incurred and potential insurance recovery, would have a material adverse effect on the Company’s financial position, results of operations or cash flows. Estimated payments under the self-insurance programs are as follows (in thousands): Year ending January 31, 2020 $ 265 2021 265 2022 265 2023 270 2024 275 Thereafter — Total $ 1,340 Discount to net present value (75 ) $ 1,265 The Company and its subsidiaries are defendants in various legal proceedings resulting from operations in the normal course of business. It is the opinion of management, in consultation with legal counsel, that the ultimate outcome of all such matters will not materially affect the Company’s financial position, results of operations or cash flows. |
Warranty
Warranty | 12 Months Ended |
Jan. 31, 2019 | |
Standard Product Warranty Disclosure [Abstract] | |
Warranty | Warranty The Company provides a warranty against all substantial defects in material and workmanship. The standard warranty offered on products sold through January 31, 2013 is 10 years. Effective February 1, 2014 the Company modified its warranty to a limited lifetime warranty. The warranty effective February 1, 2014 is not anticipated to have a significant effect on warranty expense. Effective January 1, 2017, the Company modified the warranty offered to provide specific warranty periods by product component, with no warranty period longer than ten years. The Company’s warranty is not a guarantee of service life, which depends upon events outside the Company’s control and may be different from the warranty period. The Company accrues an estimate of its exposure to warranty claims based upon both product sales data and an analysis of actual warranty claims incurred. The following is a summary of the Company’s warranty-claim activity during for the years ended January 31 (in thousands): 2019 2018 Beginning balance $ 925 $ 1,000 Provision for current year 600 760 Provision for (benefits from) prior year (555 ) (380 ) Costs incurred (270 ) (455 ) Ending balance $ 700 $ 925 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated events subsequent to January 31, 2019 to assess the need for potential recognition or disclosure in this report. Such events were evaluated through the date these financial statements were issued. Based upon this evaluation, it was determined that no subsequent events occurred that require recognition or additional disclosure in the financial statements except for Amendments No. 19 and 20, dated March 12, 2019 and April 29, 2019 to the Revolving Credit and Security Agreement, dated as of December 22, 2011, which is disclosed in Note 3 to the consolidated financial statements. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Notes) | 12 Months Ended |
Jan. 31, 2019 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts and Reserves | VIRCO MFG. CORPORATION AND SUBSIDIARIES SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES FOR THE YEARS ENDED JANUARY 31, 2019 and 2018 (In Thousands) Col. A Col. B Col. C Col. E Col. F Allowance for doubtful accounts for the period ended: January 31, 2019 $ 200 $ 3 $ 3 $ 200 January 31, 2018 $ 200 $ 55 $ 55 $ 200 Product, general, workers’ compensation and automobile liability reserves for the period ended: January 31, 2019 $ 1,347 $ 1,357 $ 1,439 $ 1,265 January 31, 2018 $ 1,650 $ 1,101 $ 1,404 $ 1,347 Deferred tax valuation allowance for the period ended: January 31, 2019 $ 925 $ 831 $ — $ 1,756 January 31, 2018 $ 515 $ 410 $ — $ 925 All other schedules for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are not required under the related instructions, are inapplicable, or are included in the Financial Statements or Notes thereto, and therefore are not required to be presented under this Item. |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2019 | |
Accounting Policies [Abstract] | |
Reclassification | Certain amounts in the prior period statement of cash flows have been reclassified to conform to the presentation of the current period financial statements. These reclassifications had no effect on the previously reported net loss. Principles of Consolidation |
Principles of Consolidation | The consolidated financial statements include the accounts of Virco Mfg. Corporation and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Management Use of Estimates | Preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities - and disclosure of contingent assets and liabilities - at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include, but are not limited to, valuation of inventory; deferred tax assets and liabilities; useful lives of property, plant and equipment; liabilities under pension, warranty, self-insurance and environmental claims; and the accounts receivable allowance for doubtful accounts. Actual results could differ from these estimates. |
Fiscal Year End | Fiscal years 2019 and 2018 refer to the fiscal years ended January 31, 2019 and 2018 , respectively. |
Concentration of Credit Risk | Financial instruments, which potentially subject the Company to concentrations of credit risk consist principally of accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. Sales to the Company’s recurring customers are generally made on open account with terms consistent with the industry. Credit is extended based on an evaluation of the customer’s financial condition and payment history. Past due accounts are determined based on how recently payments have been made in relation to the terms granted. Amounts are written off against the allowance in the period that the Company determines that the receivable is not collectable. The Company purchases insurance on receivables from certain commercial customers to minimize the Company’s credit risk. The Company does not typically obtain collateral to secure credit risk. Customers with inadequate credit are required to provide cash in advance or letters of credit. The Company does not assess interest on receivable balances. A substantial percentage of the Company’s receivables come from low-risk government entities. No customer exceeded 10% of the Company’s net sales for fiscal years ended January 31, 2019 and 2018. Foreign net sales were approximately 6.7% and 6.3% of the Company’s net sales for fiscal years 2019 and 2018 , respectively. No single customer accounted for more than 10% of the Company’s accounts receivable at January 31, 2019 or 2018 . Because of the short time between shipment and collection, the net carrying value of receivables approximates the fair value for these assets. |
Cash | Cash consists of cash on hand, and the Company has no cash equivalents. Outstanding checks, representing a book overdraft, are classified in accounts payable on the accompanying consolidated balance sheets and in operating activities in the accompanying consolidated statements of cash flows. |
Fair Values of Financial Instruments | The fair values of the Company’s cash, accounts receivable, and accounts payable approximate their carrying amounts due to their short-term nature. Financial assets and liabilities measured at fair value on a recurring basis are classified in one of the three following categories, which are described below: Level 1 — Valuations based on unadjusted quoted prices for identical assets in an active market. Level 2 — Valuations based on quoted prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. Level 3 — Valuations based on inputs that are unobservable and involve management judgment and our own assumptions about market participants and pricing. Financial assets measured at fair value on a recurring basis include assets associated with the Virco Employees Retirement Plan (see Note 4 ). |
Inventories | Inventory is valued at the lower of cost or net realizable value (determined on a first-in, first-out basis) and includes material, labor and factory overhead. The Company maintains valuation allowances to write off estimated slow moving and obsolete inventory to reflect the difference between the lower of cost of inventory and the net realizable value. Allowances for slow moving and obsolete inventory are determined through a physical inspection of the product in connection with a physical inventory, a review of slow-moving product and consideration of active marketing programs. The market for education furniture is traditionally driven by value, not style and the Company has not typically incurred significant obsolescence expenses. If market conditions are less favorable than those anticipated by management, additional allowances may be required. Due to reductions in sales volume in the past years, the Company’s manufacturing facilities are operating at reduced levels of capacity. The Company records the cost of excess capacity as a period expense, not as a component of capitalized inventory valuation. The following table presents an updated breakdown of the Company’s net inventory (in thousands) as of January 31 : 2019 2018 Finished goods $ 15,908 $ 13,054 Work In Process 18,820 16,627 Raw materials 12,561 12,376 Inventories, net $ 47,289 $ 42,057 |
Property, Plant and Equipment | Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation and amortization are computed on the straight-line method for financial reporting purposes based upon the following estimated useful lives: Land improvements 5 to 25 years Buildings and building improvements 5 to 40 years Machinery and equipment 3 to 10 years Leasehold improvements shorter of lease or useful life The Company capitalizes the cost of betterments that extend the life of an asset. Repairs and maintenance that do not extend the life of an asset are expensed as incurred. Repair and maintenance expense was $2,145,000 and $1,518,000 for fiscal years ended January 31, 2019 and 2018 , respectively. Property, plant and equipment purchased during the year that remains unpaid as of January 31, 2019 was $593,000 . The Company has established asset retirement obligations related to leased manufacturing facilities in accordance with Financial Accounting Standards Board (FASB) Accounting Standard Codification (ASC) Topic 410, Asset Retirement and Environmental Obligations . Accrued asset retirement obligations are recorded at net present value and discounted over the life of the lease. Asset retirement obligations, included in other non-current liabilities were $179,000 and $170,000 at January 31, 2019 and 2018 , respectively. January 31, 2019 2018 Balance at beginning of period $ 170,000 $ 590,000 Decrease in obligation — (425,000 ) Accretion expense 9,000 5,000 Balance at end of period $ 179,000 $ 170,000 |
Impairment of Long-Lived Assets | An impairment loss is recognized in the event facts and circumstances indicate the carrying amount of a long-lived asset may not be recoverable, and an estimate of future undiscounted cash flows is less than the carrying amount of the asset. Impairment is recorded based on the excess of the carrying amount of the impaired asset over the fair value. Generally, fair value represents the Company’s expected future cash flows from the use of an asset or group of assets, discounted at a rate commensurate with the risks involved. There were no impairments for fiscal years ended January 31, 2019 and 2018 . |
Net Loss per Share | Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding. Diluted net loss per share is calculated by dividing net income by the weighted-average number of common shares outstanding plus the dilutive effect of stock award grants. The following table sets forth the computation of basic and diluted loss per share: January 31, In thousands, except per share data 2019 2018 Numerator Net loss $ (1,614 ) $ (3,209 ) Denominator Weighted-average shares — basic 15,421 15,244 Dilutive effect of common stock equivalents from equity incentive plans — — Weighted-average shares — diluted (a) 15,421 15,244 Net loss per common share Basic $ (0.10 ) $ (0.21 ) Diluted (0.10 ) (0.21 ) (a) For fiscal year 2019 and 2018, approximately 149,000 and 147,000 shares of common stock equivalents were excluded in the computation of diluted net income per share, as the effect would be anti-dilutive since the Company reported a net loss. |
Environmental Costs | The Company is subject to numerous environmental laws and regulations in the various jurisdictions in which it operates that (a) govern operations that may have adverse environmental effects, such as the discharge of materials into the environment, as well as handling, storage, transportation and disposal practices for solid and hazardous wastes, and (b) impose liability for response costs and certain damages resulting from past and current spills, disposals or other releases of hazardous materials. Normal, recurring expenses related to operating the Company's factories in a manner that meets or exceeds environmental laws and regulations are matched to the cost of producing inventory. Despite our efforts to comply with existing laws and regulations, compliance with more stringent laws or regulations or stricter interpretation of existing laws, may require additional expenditures by us, some of which may be material. We reserve amounts for such matters when expenditures are probable and reasonably estimable. Costs incurred to investigate and remediate environmental waste are expensed, unless the remediation extends the useful life of the assets employed at the site. At January 31, 2019 and 2018 , the Company had not capitalized any remediation costs and had not recorded any amortization expense in fiscal years 2019 and 2018 . |
Advertising Costs | Advertising costs are expensed in the period during which the advertising space is run. Selling, general and administrative expenses include advertising costs for the years ended January 31, 2019 and 2018 of $1,134,000 and $974,000 , respectively. Prepaid advertising costs reported as a prepaid asset on the accompanying consolidated balance sheet at January 31, 2019 and 2018 , were $254,000 and $355,000 , respectively. |
Product Warranty Expense | The Company provides a product warranty on most products. The standard warranty offered on products sold through January 31, 2013 is ten years. Effective February 1, 2014 through December 31, 2016, the Company modified its warranty to a limited lifetime warranty. Effective January 1, 2017, the Company modified the warranty offered to provide specific warranty periods by product component, with no warranty period longer than ten years. The Company generally provides that customers can return a defective product during the specified warranty period following purchase in exchange for a replacement product or the repair of the product by the Company at no charge to the customer. The Company determines whether replacement or repair is appropriate in each circumstance. The Company uses historic data to estimate appropriate levels of warranty reserves. Because product mix, production methods and raw material sources change over time, historic data may not always provide precise estimates for future warranty expense. The Company recorded warranty reserves of $700,000 and $925,000 as of January 31, 2019 and 2018 , respectively, as other long-term liabilities in the accompanying consolidated balance sheets. The current portion of the warranty reserve was $325,000 and $400,000 as of January 31, 2019 and 2018 , respectively, and included in other accrued liabilities in the accompanying consolidated balance sheets. |
Self-Insurance | In 2019 and 2018 , the Company was self-insured for product and general liability losses up to $250,000 per occurrence, workers’ compensation losses up to $250,000 per occurrence, and auto liability up to $50,000 per occurrence. Actuaries assist the Company in determining its liability for the self-insured component of claims, which have been discounted to their net present value utilizing a discount rate of 4.00% in 2019 and 2.00% in 2018 . |
Share-based Compensation Plans | The Company recognizes stock-based compensation cost for shares that are expected to vest, on a straight-line basis, over the requisite service period of the award. Virco issued a 10% stock dividend or 3/2 stock split every year beginning in 1983 through 2003. Although the stock dividend had no cash consequences to the Company, the accounting methodology required for 10% dividends has affected the equity section of the balance sheet. When the Company records a 10% stock dividend, 10% of the market capitalization of the Company on the date of the declaration is reclassified from retained earnings to additional paid-in capital. During the period from 1983 through 2003, the cumulative effect of the stock dividends has been to reclassify over $122 million from retained earnings to additional paid-in capital. The equity section of the balance sheet on January 31, 2019 reflects additional paid-in capital of approximately $118 million and accumulated deficit of approximately $52 million . Other than the losses incurred during 2004-2006, 2011-2014 and 2018-2019, the accumulated deficit is a result of the accounting reclassification and is not the result of accumulated losses. |
Accumulated Other Comprehensive Income (Loss), Net of Tax | The following table summarizes the changes in accumulated balances of other comprehensive (loss) income for the years ended January 31, 2019 and 2018 : January 31, (in thousands) 2019 2018 Balance as of beginning of year $ (9,259 ) $ (11,394 ) Other comprehensive (loss) income before reclassifications (1,116 ) 1,180 Amounts reclassified from AOCI 1,333 955 Net current period other comprehensive income 217 2,135 Balance as of end of year $ (9,042 ) $ (9,259 ) The reclassifications out of accumulated other comprehensive (loss) income of $1,333,000 and $955,000 for the years ended January 31, 2019 and 2018 , respectively, related to amortization of actuarial losses and settlements. |
Revenue Recognition | The Company adopted Financial Accounting Standards Board (“FASB”) ASC 606, Revenue from Contracts with Customers (“ASC 606”) effective February 1, 2018 using the modified retrospective method to apply this guidance to all open contracts at the date of initial application. The results of applying ASC 606 were insignificant and did not have a material impact on our consolidated financial condition, results of operations, cash flows, business processes, controls or systems. The Company manufactures, markets and distributes a wide variety of school and office furniture to wholesalers, distributors, educational institutions and governmental entities. Revenue is recorded for promised goods or services when control is transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. Contractual Arrangements with Customers The Company's sales generally involve a single performance obligation to deliver goods pursuant to customer purchase orders. Prices for our products are based on published price lists and customer agreements. The Company has determined that the performance obligations are satisfied at a point in time when the Company completes delivery per the customer contract. The majority of sales are free on board ("FOB") destination where the destination is specified per the customer contract and may include delivering the furniture into the classroom, school site or warehouse. Sales of furniture that are sold FOB factory are typically made to resellers of our product, who in turn provide logistics to the ultimate customer. Once a product has been delivered per the shipping terms, the customer is able to direct the use of, and obtain substantially all of the remaining benefits from, the asset. The Company considers control to have transferred upon shipment or delivery in accordance with shipping terms, because the Company has a present right to payment at that time, the customer has legal title to the asset, the Company has transferred physical possession of the asset, and the customer has significant risks and rewards of ownership of the asset. Sales are recorded net of discounts, sales incentives and rebates, sales taxes and estimated returns and allowances. The Company offers sales incentives and discounts through various regional and national programs to our customers. These programs include product rebates, product returns allowances and trade promotions. Variable consideration for these programs is estimated in the transaction price at contract inception based on current sales levels and historical experience using the expected value method, subject to constraint. The Company generates revenue primarily by manufacturing and distributing products through resellers and direct-to-customers. Control transfers to both resellers and direct customers at a point in time when the delivery process is complete as determined by the corresponding shipping terms. Therefore, we do not consider them to be meaningfully different revenue streams given similarities in the nature of the products, performance obligation and distribution processes. Sales are predominately in the United States and to a similar class of customer. We do not manage or evaluate the business based on product line or any other discernable category. For product produced by and sourced from third parties, management has determined that it is the principal in all cases, since it (i) bears primary responsibility for fulfilling the promise to the customer; (ii) bears inventory risk before and/or after the good or service is transferred to the customer; and (iii) has discretion in establishing the price for the sale of good or service to the customer. Contract Assets and Liabilities Payment terms are established on the Company’s pre-established credit requirements based upon an evaluation of customers’ credit quality. Most customers obtain payment terms between 1-30 days and an asset is recognized for the related accounts receivable. Contract liabilities are recognized for contracts where payment has been received in advance of delivery. The contract liability balance can vary significantly depending on the timing of when an order is placed and when shipment or delivery occurs. As of January 31, 2019, other than accounts receivable, the Company had no material contract assets, contract liabilities or deferred contract costs recorded on its condensed consolidated balance sheet. Costs of fulfilling customers’ purchase orders, such as shipping, handling and delivery, which occur prior to the transfer of control, are recognized in selling, general and administrative expense when incurred. Practical Expedients & Optional Exemptions Significant Financing Component - as we expect the period between when we transfer control of the promised good or service to a customer and when the customer pays for that good or service will be one year or less, the Company elected to apply the practical expedient for significant financing components. Remaining Performance Obligations - due to the short-term duration of the Company’s contracts with customers and fulfillment of performance obligations, the Company has elected not to disclose the information regarding the remaining performance obligations as of the end of each reporting period or when the Company expects to recognize this revenue. Cost to Obtain a Customer - we pay certain costs to obtain a customer contract such as commissions. As our customer contracts have a contractual term of one year or less, we have elected to apply the practical expedient and expense these costs in selling, general and administrative expense as incurred, which is consistent with our historical practice. For fiscal year ended January 31, 2018, the Company recognizes revenue in accordance with FASB ASC Topic 605, Revenue Recognition . Revenue is recognized when title passes under its various shipping terms, when classroom delivery services are complete and when collectability is reasonably assured. The Company reports sales net of sales returns and allowances, sales taxes imposed by various government authorities, cash discounts and rebate to customers. In most instances, the Company sells furniture on bids and contracts, which may include multiple elements. For sales that include freight to the customer, many sales are delivered on the same day shipped, with an average delivery being in route for 1 to 3 days. Classroom delivery, which involves carrying the furniture to the classroom and setting the desks and chairs in place, typically occurs the day the furniture is delivered. In accordance with ASC 605, Revenue Recognition - Multiple-Element Arrangements, revenue arrangements with multiple deliverables are generally accounted for by the Company on a combined unit of accounting as the furniture delivery and classroom delivery are generally provided at the same time. We recognize the consideration for the combined unit of accounting once the final item has been delivered and installed. Revenue includes freight charged to customers; related costs are recorded in selling and administrative expense. Rebates, discounts and other marketing program expenses directly related to the sale are recorded as a reduction to net sales. |
Delivery Costs | For the fiscal years ended January 31, 2019 and 2018 , shipping and classroom delivery costs of approximately $22,150,000 , $19,299,000 , respectively, were included in selling, general and administrative expenses in the accompanying consolidated statements of operations. |
Accounting for Income Taxes | The Company recognizes deferred income taxes under the asset and liability method of accounting for income taxes in accordance with the provisions of FASB ASC Topic 740, Accounting for Income Taxes . Deferred income taxes are recognized for differences between the financial statement and tax basis of assets and liabilities at enacted statutory tax rates in effect for the years in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance against deferred tax assets is recorded when it is determined to be more likely than not that the asset will not be realized. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 12 Months Ended |
Jan. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Updates : On February 1, 2018, we adopted FASB ASC 606 as discussed in Note 1, under Revenue Recognition. Accounting Standards Update (“ASU”) 2017-07, Compensation-Retirement Benefits (Topic 715) : Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost - This ASU requires employers to disaggregate the service cost from other components of net periodic benefit costs and to disclose the income statement line item in which each component is included. This guidance requires service costs to be reported in the same line item as other compensation costs, and the other components of net periodic benefit costs (which include interest costs, expected return on plan assets and actuarial gains and losses) to be reported outside of operating income. We adopted this guidance on February 1, 2018. Application was required on a retrospective basis and resulted in a reclassification of $1,257,000 and $1,181,000 of expense from “Selling and administrative expenses” into “Pension expense” for the years ended January 31, 2019 and 2018, respectively. Refer to Note 4 for further information. ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SAB 118) - This ASU allows SEC registrants to record provisional amounts in earnings due to the complexities involved in accounting for the enactment of the Tax Cuts and Jobs Act (TCJA). We recognized the estimated income tax effects of the TCJA in accordance with SAB 118. Refer to Note 6 for further information. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments - We adopted this guidance on February 1, 2018, and it did not materially impact our consolidated statements of cash flows. ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income - This ASU provides financial statement preparers with an option to reclassify stranded tax effects within accumulated other comprehensive income in each period in which the effect of the change in the U.S. federal corporate income tax rate in the TCJA is recorded. We have elected not to reclassify the stranded tax effects within accumulated other comprehensive income. Recently Issued Accounting Updates But Not Yet Adopted: ASU 2016-02, Leases (Topic 842) - Requires an entity to recognize both assets and liabilities arising from financing and operating leases, along with additional qualitative and quantitative disclosures. In July 2018, the FASB issued ASU 2018-11, which provides entities with a new transition method where comparative periods presented in financial statements in the period of adoption will not need to be restated. Under the new transition method, an entity initially applies the provisions of Topic 842 at the adoption date, versus at the beginning of the earliest period presented, and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The new standard becomes effective for the Company at the beginning of fiscal 2020. The Company will adopt the standard in the first quarter of fiscal 2020 using the modified retrospective transition option of applying the new standard at the adoption date. All necessary changes required by the new standard, including those to the Company's accounting policies, business process, systems, controls, and disclosures, have been identified and are in process of implementation as of the beginning of fiscal 2020. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carry forward the historical lease classification. The Company is finalizing the impact of the new standard which will result in the recording of a right of use asset and lease liability on the consolidated balance sheet derived from the present value of future minimum lease payments which are disclosed in Note 7. The impact of the new standard will not have a material impact upon the Company’s consolidated statements of operations, cash flows or equity. ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) , which replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, with early adoption permitted for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220), addresses the impact of the U.S. Tax Cuts and Jobs Act (the "Tax Act") on tax effects presented in other comprehensive income. The amended guidance allows a reclassification from accumulated other comprehensive income to retained earnings for the tax effects of items within accumulated other comprehensive income resulting from the Tax Act. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. The amendments may be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. ASU No. 2018-13, Fair Value Measurement (Topic 820)-Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement , improves the effectiveness of fair value measurement disclosures and modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement . The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. ASU No. 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans , which amends ASC 715-20, Compensation - Retirement Benefits - Defined Benefit Plans - General . The amended guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in accumulated Other Comprehensive Income expected to be recognized in net periodic benefit costs over the next fiscal year and (b) the effects of a one percentage point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for post-retirement health care benefits. Additional disclosures include descriptions of significant gains and losses affecting the benefit obligation for the period. The amended guidance is effective for fiscal years ending after December 15, 2020. The adoption of this guidance will modify our disclosures but will not have a material effect on our consolidated financial statements. |
Summary of Business and Signi_3
Summary of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Inventory, Net | The following table presents an updated breakdown of the Company’s net inventory (in thousands) as of January 31 : 2019 2018 Finished goods $ 15,908 $ 13,054 Work In Process 18,820 16,627 Raw materials 12,561 12,376 Inventories, net $ 47,289 $ 42,057 |
Depreciation and amortization computed on the straight-line method for financial reporting purposes based upon estimated useful lives | Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation and amortization are computed on the straight-line method for financial reporting purposes based upon the following estimated useful lives: Land improvements 5 to 25 years Buildings and building improvements 5 to 40 years Machinery and equipment 3 to 10 years Leasehold improvements shorter of lease or useful life |
Asset retirement obligations related to leased manufacturing facilities | January 31, 2019 2018 Balance at beginning of period $ 170,000 $ 590,000 Decrease in obligation — (425,000 ) Accretion expense 9,000 5,000 Balance at end of period $ 179,000 $ 170,000 |
Computation of basic and diluted loss per share | The following table sets forth the computation of basic and diluted loss per share: January 31, In thousands, except per share data 2019 2018 Numerator Net loss $ (1,614 ) $ (3,209 ) Denominator Weighted-average shares — basic 15,421 15,244 Dilutive effect of common stock equivalents from equity incentive plans — — Weighted-average shares — diluted (a) 15,421 15,244 Net loss per common share Basic $ (0.10 ) $ (0.21 ) Diluted (0.10 ) (0.21 ) (a) For fiscal year 2019 and 2018, approximately 149,000 and 147,000 shares of common stock equivalents were excluded in the computation of diluted net income per share, as the effect would be anti-dilutive since the Company reported a net loss. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated balances of other comprehensive (loss) income for the years ended January 31, 2019 and 2018 : January 31, (in thousands) 2019 2018 Balance as of beginning of year $ (9,259 ) $ (11,394 ) Other comprehensive (loss) income before reclassifications (1,116 ) 1,180 Amounts reclassified from AOCI 1,333 955 Net current period other comprehensive income 217 2,135 Balance as of end of year $ (9,042 ) $ (9,259 ) The reclassifications out of accumulated other comprehensive (loss) income of $1,333,000 and $955,000 for the years ended January 31, 2019 and 2018 , respectively, related to amortization of actuarial losses and settlements. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Debt Disclosure [Abstract] | |
Outstanding balances of long-term debt | Outstanding balances (in thousands) for the Company’s long-term debt were as follows: January 31, 2019 2018 Revolving credit line $ 14,858 $ 10,059 Other 6,556 6,622 Total debt 21,414 16,681 Less current portion 5,504 4,681 Non-current portion $ 15,910 $ 12,000 |
Schedule of maturities of long-term debt | As of January 31, 2019 , long-term debt repayments are approximately as follows (in thousands): Year ending January 31, 2020 $ 5,504 2021 10,654 2022 405 2023 229 2024 238 Thereafter 4,384 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of pension plans | The following tables set forth (in thousands) the combined funded status of the Company’s pension plans at January 31, 2019 and 2018 : Combined Employee Retirement Plans 1/31/2019 1/31/2018 Change in Benefit Obligation Benefit obligation at beg. of year $ 40,181 $ 39,761 Service cost — — Interest cost 1,459 1,593 Participant contributions — — Amendments — — Actuarial (gains) losses (2,044 ) 930 Plan settlement (2,176 ) — Benefits paid (1,121 ) (2,103 ) Benefit obligation at end of year $ 36,299 $ 40,181 Change in Plan Assets Fair value at beg. of year $ 27,259 $ 22,911 Actual return on plan assets (1,557 ) 4,726 Company contributions 1,122 1,725 Settlements (2,176 ) — Benefits paid (1,121 ) (2,103 ) Fair value at end of year $ 23,527 $ 27,259 Funded Status Unfunded status of the plan $ (12,772 ) $ (12,922 ) Amounts Recognized in Statement of Financial Position Current liabilities $ (322 ) $ (346 ) Non-current liabilities (12,450 ) (12,576 ) Accrued benefit cost $ (12,772 ) $ (12,922 ) Amounts Recognized in Statement of Financial Position and Operations Accrued benefit liability (12,772 ) (12,922 ) Accumulated other comp. loss (gain) 8,319 8,612 Net amount recognized $ (4,453 ) $ (4,310 ) Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI Unrecognized net actuarial loss (gain) $ 8,319 $ 8,612 Unamortized prior service costs — — Net initial asset recognition — — $ 8,319 $ 8,612 Combined Employee Retirement Plans 1/31/2019 1/31/2018 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Net loss (gain) $ 1,039 $ (2,447 ) Prior service cost — — Amortization of (loss) gain (1,333 ) (955 ) Amortization of prior service cost (credit) — — Amortization of initial asset — — Total recognized in other comprehensive (loss) income $ (294 ) $ (3,402 ) Items to be Recognized as a Component of Periodic Pension Cost for next fiscal year Prior service cost $ — $ — Net actuarial loss (gain) 706 692 $ 706 $ 692 Supplemental Data Projected benefit obligation $ 36,299 $ 40,181 Accumulated benefit obligation 36,299 40,181 Fair value of plan assets 23,527 27,259 Components of Net Cost Service cost $ — $ — Interest cost 1,459 1,593 Expected return on plan assets (1,535 ) (1,367 ) Amortization of transition amount — — Recognized (gain) loss due to settlement — — Amortization of prior service cost — — Recognized net actuarial loss 1,333 955 Benefit cost $ 1,257 $ 1,181 Estimated Future Benefit Payments FYE 01-31-2020 $ 6,022 FYE 01-31-2021 2,171 FYE 01-31-2022 2,151 FYE 01-31-2023 2,087 FYE 01-31-2024 2,085 FYE 01-31-2025 to 2029 10,524 Total $ 25,040 Weighted Average Assumptions to Determine Benefit Obligations at Year-End Discount rate 3.75% - 4.10% 3.75% - 4.0% Rate of compensation increase N/A N/A Weighted Average Assumptions to Determine Net Periodic Pension Cost Discount rate 4.25% 4.25% Expected return on plan assets 6.50% 6.50% Rate of compensation increase N/A N/A |
Fair value measurements of plan assets | 1/31/2019 1/31/2018 Level 1 Measurement Cash & Cash Equivalents $ — $ — Common Stock 9,345 9,701 PNC Govt Money Fund 630 1,030 Vanguard Total Bond — — Ishares Credit Bond ETF — 340 Vanguard INTM Term Investment 283 702 Vanguard LT Investment 1,304 1,973 Ishares Russell 2000 1,672 2,047 Ishares Russell MID-CAP 1,890 2,129 Ishares Emerging Markets 1,130 1,338 Ishares MCSI RAFE 1,534 1,838 Ishares S&P Index 2,895 4,825 Vanguard INTM Term Treasury 281 — Vanguard LT Treasury 1,279 — Total Level 1 Investments $ 22,243 $ 25,923 |
Life insurance liability | The following sets forth the Company's change in death benefits payable during the years ended January 31, 2019 and 2018 : 1/31/2019 1/31/2018 Liability beginning of year $ 2,088,000 $ 2,184,000 Accretion expense 49,000 54,000 Death benefits paid (100,000 ) (150,000 ) Liability end of year $ 2,037,000 $ 2,088,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Restricted Stock and Stock Unit Award Activity | A summary of the Company’s restricted stock unit awards activity, and related information for the following years ended January 31, is as follows: 2019 2018 Restricted stock units Weighted- Average Exercise Price Restricted stock units Weighted- Average Exercise Price Outstanding at beginning of year 692,404 $ 4.25 491,284 $ 2.46 Granted 55,555 4.49 504,404 4.95 Exercised (226,804 ) 4.63 (259,284 ) 4.86 Forfeited (20,000 ) 4.01 (44,000 ) 4.42 Outstanding at end of year 501,155 4.44 692,404 4.25 Weighted-average fair value of restricted stock units granted during the year — 4.49 — 4.95 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income tax expense (benefit) reconciled to statutory rate | 2019 2018 Statutory $ (235 ) $ 794 State taxes (net of federal tax) 186 341 Change in valuation allowance 831 410 State rate adjustment (222 ) (260 ) Change in unrecognized tax benefits 1 6 Stock Compensation (46 ) (200 ) Tax cuts and jobs act (15 ) 4,438 Expirations of attributes 28 143 Other (31 ) (49 ) Income tax expense $ 497 $ 5,623 |
Significant components of expense (benefit) | Significant components of the expense (benefit) for income taxes (in thousands) attributed to continuing operations are as follows for the years ended January 31 (in thousands): 2019 2018 Current Federal $ (24 ) $ (296 ) State 102 98 78 (198 ) Deferred Federal (247 ) 5,270 State (165 ) 141 (412 ) 5,411 Change in Valuation Allowance 831 410 419 5,821 Income tax expense $ 497 $ 5,623 |
Deferred tax assets and liabilities | Deferred tax assets and liabilities are comprised of the following as of January 31 (in thousands): 2019 2018 Deferred tax assets Accrued vacation and sick leave $ 892 $ 1,015 Retirement plans 2,748 3,756 Insurance reserves 381 451 Warranty 182 242 Net operating loss carryforwards 5,303 4,722 Inventory 1,320 1,085 § 163 (j) Limitation 540 — Other 765 624 $ 12,131 $ 11,895 Deferred tax liabilities Tax in excess of book depreciation $ (720 ) $ (811 ) Other (57 ) (66 ) $ (777 ) $ (877 ) Valuation allowance (1,756 ) (925 ) Net long term deferred tax asset $ 9,598 $ 10,093 |
Unrecognized tax benefits | The following table summarizes the activity related to our gross unrecognized tax benefits for the years ended January 31 (in thousands): 2019 2018 Balances as of February 1, $ 38 $ 29 Increases related to prior year tax positions — 2 Decreases related to prior year tax positions (2 ) — Increases related to current year tax positions 8 16 Decreases relating to settlements with taxing authorities — — Decreases related to lapsing of statute of limitations (6 ) (9 ) Balance as of January 31, $ 38 $ 38 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Commitments [Abstract] | |
Minimum future lease payments | Minimum future lease payments (in thousands) for operating leases in effect as of January 31, 2019 , are as follows: Year ending January 31, 2020 $ 5,045 2021 4,405 2022 5,041 2023 5,040 2024 5,192 Thereafter 6,687 Total minimum lease payments $ 31,410 |
Rent expense | Rent expense relating to operating leases was as follows (in thousands): Year ended January 31, 2019 $ 6,006 2018 5,644 |
Contingencies (Tables)
Contingencies (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Contingencies [Abstract] | |
Estimated payments under the self-insurance programs | Estimated payments under the self-insurance programs are as follows (in thousands): Year ending January 31, 2020 $ 265 2021 265 2022 265 2023 270 2024 275 Thereafter — Total $ 1,340 Discount to net present value (75 ) $ 1,265 |
Warranty (Tables)
Warranty (Tables) | 12 Months Ended |
Jan. 31, 2019 | |
Standard Product Warranty Disclosure [Abstract] | |
Warranty claim activity | The following is a summary of the Company’s warranty-claim activity during for the years ended January 31 (in thousands): 2019 2018 Beginning balance $ 925 $ 1,000 Provision for current year 600 760 Provision for (benefits from) prior year (555 ) (380 ) Costs incurred (270 ) (455 ) Ending balance $ 700 $ 925 |
Summary of Business and Signi_4
Summary of Business and Significant Accounting Policies (Concentration of Credit risk) (Details) | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Concentration Risk [Line Items] | ||
Period of Manufacturing Operations | 69 years | |
Sales Revenue, Goods, Net [Member] | Geographic Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Foreign sales revenue by percent | 6.70% | 6.30% |
Summary of Business and Signi_5
Summary of Business and Significant Accounting Policies (Inventory, net) (Details) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Accounting Policies [Abstract] | ||
Finished goods | $ 15,908 | $ 13,054 |
Work In Process | 18,820 | 16,627 |
Raw materials | 12,561 | 12,376 |
Inventories, net | $ 47,289 | $ 42,057 |
Summary of Business and Signi_6
Summary of Business and Significant Accounting Policies (Property, Plant, and Equipment) (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Repair and maintenance | $ 2,145,000 | $ 1,518,000 |
Depreciation and amortization expense | 5,791,000 | 5,466,000 |
Rental income | 40,000 | $ 40,000 |
Property, Plant And Equipment Included in AP And Accrued Expense | $ 593,000 | |
Land Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 5 years | |
Land Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 25 years | |
Buildings and building improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 5 years | |
Buildings and building improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 40 years | |
Machinery and equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 3 years | |
Machinery and equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 10 years |
Summary of Business and Signi_7
Summary of Business and Significant Accounting Policies (Asset Retirement Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Accounting Policies [Abstract] | ||
Asset retirement obligation beginning of period | $ 170 | $ 590 |
Decrease in obligation | 0 | (425) |
Accretion expense | 9 | 5 |
Asset retirement obligation end of period | $ 179 | $ 170 |
Summary of Business and Signi_8
Summary of Business and Significant Accounting Policies (Computation of Basic and Diluted Loss Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Accounting Policies [Abstract] | ||
Net loss | $ (1,614) | $ (3,209) |
Weighted-average shares — basic | 15,421,000 | 15,244,000 |
Dilutive effect of common stock equivalents from equity incentive plans | 0 | 0 |
Weighted-average shares — diluted | 15,421,000 | 15,244,000 |
Basic | $ (0.10) | $ (0.21) |
Diluted | $ (0.10) | $ (0.21) |
Shares of common stock equivalents excluded from computation of diluted net income per share (in shares) | 149,000 | 147,000 |
Summary of Business and Signi_9
Summary of Business and Significant Accounting Policies (Advertising Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Accounting Policies [Abstract] | ||
Advertising cost | $ 1,134 | $ 974 |
Prepaid advertising costs | $ 254 | $ 355 |
Summary of Business and Sign_10
Summary of Business and Significant Accounting Policies (Product Warranty Expense) (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Warranty [Line Items] | |||
Accrued warranty balance | $ 700,000 | $ 925,000 | $ 1,000,000 |
Product Warranty Accrual, Current | $ 325,000 | $ 400,000 | |
Minimum [Member] | |||
Warranty [Line Items] | |||
Product warranty period | 10 years | ||
Maximum [Member] | |||
Warranty [Line Items] | |||
Product warranty period | 10 years |
Summary of Business and Sign_11
Summary of Business and Significant Accounting Policies (Self-Insurance) (Details) - USD ($) | Jan. 31, 2019 | Jan. 31, 2018 |
Loss Contingencies [Line Items] | ||
Discount rate | 4.00% | 2.00% |
Product and General Liability [Member] | ||
Loss Contingencies [Line Items] | ||
Self insurance reserve | $ 250,000 | |
Workers Compensation [Member] | ||
Loss Contingencies [Line Items] | ||
Self insurance reserve | 250,000 | |
Automobile Losses [Member] | ||
Loss Contingencies [Line Items] | ||
Self insurance reserve | $ 50,000 |
Summary of Business and Sign_12
Summary of Business and Significant Accounting Policies (Stock-Based Compensation Plans) (Details) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2019USD ($) | Jan. 31, 2018USD ($) | Jan. 31, 2017USD ($) | Jan. 31, 2003USD ($) | |
Accounting Policies [Abstract] | ||||
Stock dividend, return percentage (as a percent) | 10.00% | |||
Stock conversion ratio | 1.5 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stockholders' equity | $ 57,027 | $ 58,712 | $ 59,354 | |
Additional Paid-in Capital | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stockholders' equity | 118,106 | 117,465 | 116,976 | $ 122,000 |
Accumulated Deficit | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stockholders' equity | $ (52,192) | $ (49,648) | $ (46,380) |
Summary of Business and Sign_13
Summary of Business and Significant Accounting Policies (Manufacturing Operations and Shipping Fees) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Accounting Policies [Abstract] | ||
Shipping and delivery costs | $ 22,150 | $ 19,299 |
Summary of Business and Sign_14
Summary of Business and Significant Accounting Policies (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance as of beginning of year | $ (9,259) | |
Amortization of prior service cost (credit) | 795 | $ 955 |
Net current period other comprehensive income | 217 | 2,135 |
Balance as of end of year | (9,042) | (9,259) |
Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance as of beginning of year | (9,259) | (11,394) |
Other comprehensive (loss) income before reclassifications | (1,116) | 1,180 |
Amortization of prior service cost (credit) | 1,333 | 955 |
Net current period other comprehensive income | 217 | 2,135 |
Balance as of end of year | $ (9,042) | $ (9,259) |
New Accounting Pronouncements_2
New Accounting Pronouncements (Additional Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | ||
Pension expense | $ 1,257 | $ 1,181 |
Debt (Long-term Debt) (Details)
Debt (Long-term Debt) (Details) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 21,414 | $ 16,681 |
Less current portion | 5,504 | 4,681 |
Non-current portion | 15,910 | 12,000 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 14,858 | 10,059 |
Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 6,556 | $ 6,622 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | Aug. 01, 2017USD ($) | Apr. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Apr. 30, 2019USD ($) | Jul. 31, 2019USD ($) | Oct. 31, 2019USD ($) | Jan. 31, 2019USD ($) | Jan. 31, 2018USD ($) | Jul. 31, 2018USD ($) | Apr. 30, 2018USD ($) | Jul. 01, 2017USD ($) | Jun. 30, 2017USD ($) |
Line of Credit Facility [Line Items] | ||||||||||||
Revolving credit facility bears interest increased | 2.00% | |||||||||||
Interest rate | 4.00% | 6.25% | ||||||||||
Dividends | $ 930,000 | $ 230,000 | ||||||||||
Purchase agreement nonbinding commitment | $ 7,200,000 | |||||||||||
Purchase agreement nonbinding commitment down payment | 20.00% | |||||||||||
Purchase Agreement, Non-binding Commitment, Seller Financed Portion | $ 5,760,000 | |||||||||||
Purchase Agreement, Non-binding Commitment, Financing Period | 20 years | |||||||||||
Judgments or judicial actions against the borrowers in excess | $ 250,000 | |||||||||||
Accounts receivable [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Revolving credit facility borrowing base limitation | 85.00% | |||||||||||
Inventory [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Revolving credit facility borrowing base limitation | 60.00% | |||||||||||
Minimum [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Line Of Credit Facility, Borrowing Capacity, Term | $ 8,000,000 | |||||||||||
Maximum [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Line Of Credit Facility, Borrowing Capacity, Term | $ 14,000,000 | |||||||||||
Maximum [Member] | Accounts receivable [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Revolving credit facility borrowing base limitation | 85.00% | |||||||||||
Amendment No. 17 to Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Minimum EBITDA | $ 6,402,000 | $ (3,767,000) | ||||||||||
Revolving credit facility | $ 60,000,000 | $ 50,000,000 | ||||||||||
Dividends | $ 2,000,000 | |||||||||||
Maximum fixed charge coverage ratio | 1.10 | |||||||||||
Non-refundable Extension Fee | $ 250,000 | |||||||||||
PNC [Member] | Revolving Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Line of credit facility, maximum borrowing capacity | 60,000,000 | |||||||||||
Line of credit facility, Equipment financing | 2,500,000 | |||||||||||
Revolving Advances | $ 11,000,000 | $ 14,000,000 | ||||||||||
Remaining borrowing capacity | 11,231,000 | |||||||||||
PNC [Member] | Revolving Credit Facility [Member] | Amendment To Credit Agreement [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Line of credit facility, Equipment financing | 2,500,000 | |||||||||||
PNC [Member] | Letter of Credit [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Line of credit facility, maximum borrowing capacity | $ 3,000,000 | |||||||||||
Eurodollar [Member] | Minimum [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Revolving credit facility bears interest range of | 1.75% | |||||||||||
Eurodollar [Member] | Maximum [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Revolving credit facility bears interest range of | 2.25% | |||||||||||
Alternate Base Rate Loans [Member] | London Interbank Offered Rate LIBOR [Member] | Minimum [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Revolving credit facility bears interest range of | 0.75% | |||||||||||
Alternate Base Rate Loans [Member] | London Interbank Offered Rate LIBOR [Member] | Maximum [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Revolving credit facility bears interest range of | 1.25% | |||||||||||
Subsequent Event [Member] | Amendment No. 19 to Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Non-refundable Extension Fee | $ 24,000 | |||||||||||
Subsequent Event [Member] | Amendment No. 20 To Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Minimum EBITDA | $ 5,000,000 | $ 5,000,000 | ||||||||||
Maximum fixed charge coverage ratio | 1.10 | 1.10 | 2.25 | |||||||||
Non-refundable Extension Fee | $ 125,000 | |||||||||||
Subsequent Event [Member] | Amendment No. 20 To Credit Facility [Member] | Minimum [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt Instrument, Covenant, Capital Expenditures Limit | $ 900,000 | |||||||||||
Debt Instrument, Covenant, Aggregate Debt | $ 8,000,000 | $ 8,000,000 | ||||||||||
Subsequent Event [Member] | PNC [Member] | Revolving Credit Facility [Member] | Amendment No. 19 to Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Line of credit facility, maximum borrowing capacity | 65,000,000 | |||||||||||
Line Of Credit, Clean Down Limit | 10,000,000 | |||||||||||
Line Of Credit, Short-Term Borrowings Limit | 2,000,000 | |||||||||||
Subsequent Event [Member] | PNC [Member] | Seasonal Advance [Member] | Amendment No. 19 to Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Line of credit facility, maximum borrowing capacity | 15,000,000 | |||||||||||
Subsequent Event [Member] | PNC [Member] | Equipment Loan [Member] | Amendment No. 19 to Credit Facility [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Line of credit facility, maximum borrowing capacity | 10,000,000 | |||||||||||
Line of credit facility, Equipment financing | $ 2,000,000 | |||||||||||
Scenario, Forecast [Member] | Subsequent Event [Member] | Amendment No. 20 To Credit Facility [Member] | Minimum [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt Instrument, Covenant, Capital Expenditures Limit | $ 1,900,000 | |||||||||||
Debt Covenant Term One [Member] | Scenario, Forecast [Member] | Subsequent Event [Member] | Amendment No. 20 To Credit Facility [Member] | Minimum [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt Instrument, Covenant, Capital Expenditures Limit | $ 3,900,000 | |||||||||||
Debt Instrument, Covenant, Capital Expenditure Limit Term On EBITDA | 8,500,000 | |||||||||||
Debt Covenant Term Two [Member] | Scenario, Forecast [Member] | Subsequent Event [Member] | Amendment No. 20 To Credit Facility [Member] | Minimum [Member] | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt Instrument, Covenant, Capital Expenditures Limit | 2,900,000 | |||||||||||
Debt Instrument, Covenant, Capital Expenditure Limit Term On EBITDA | $ 8,500,000 |
Debt (Long-term Debt Repayments
Debt (Long-term Debt Repayments) (Details) $ in Thousands | Jan. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 5,504 |
2021 | 10,654 |
2022 | 405 |
2023 | 229 |
2024 | 238 |
Thereafter | $ 4,384 |
Retirement Plans (Pension Plans
Retirement Plans (Pension Plans, Narrative) (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Liability for Future Policy Benefits, Life | $ 9,102,000 | $ 9,095,000 | |
Company contributions | 800,000 | 1,400,000 | |
Estimated contributions to qualified pension plans for 2020 | 4,500,000 | ||
Benefit payments | 281,000 | 345,000 | |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Tax | $ 9,000,000 | ||
Combined Employee Retirement Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of trust assets managed | 55.00% | ||
Company contributions | $ 1,122,000 | 1,725,000 | |
Accumulated other comp. loss (gain) | 8,319,000 | 8,612,000 | |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Tax | $ 0 | 0 | |
VIP Retirement Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit of average compensation | 50.00% | ||
Benefit of average compensation period | 5 years | ||
Cash surrender value | $ 3,469,000 | $ 3,411,000 | |
Debt Securities [Member] | Combined Employee Retirement Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Short-term investment funds | 16.00% | 15.00% | |
Scenario, Forecast [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Estimated future contributions to non-qualified plans for 2020 | $ 281,000 | ||
Fixed Income Securities [Member] | Combined Employee Retirement Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of assets held in trust (less than) | 14.00% |
Retirement Plans (Funded Status
Retirement Plans (Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Change in Plan Assets | ||
Company contributions | $ 800 | $ 1,400 |
Combined Employee Retirement Plans [Member] | ||
Change in Benefit Obligation | ||
Benefit obligation at beg. of year | 40,181 | 39,761 |
Service cost | 0 | 0 |
Interest cost | 1,459 | 1,593 |
Participant contributions | 0 | 0 |
Amendments | 0 | 0 |
Actuarial (gains) losses | (2,044) | 930 |
Plan settlement | (2,176) | 0 |
Benefits paid | (1,121) | (2,103) |
Benefit obligation at end of year | 36,299 | 40,181 |
Change in Plan Assets | ||
Fair value at beg. of year | 27,259 | 22,911 |
Actual return on plan assets | (1,557) | 4,726 |
Company contributions | 1,122 | 1,725 |
Settlements | (2,176) | 0 |
Benefits paid | (1,121) | (2,103) |
Fair value at end of year | 23,527 | 27,259 |
Unfunded status of the plan | (12,772) | (12,922) |
Amounts Recognized in Statement of Financial Position | ||
Current liabilities | (322) | (346) |
Non-current liabilities | (12,450) | (12,576) |
Accrued benefit cost | (12,772) | (12,922) |
Amounts Recognized in Statement of Financial Position and Operations | ||
Accrued benefit liability | (12,772) | (12,922) |
Accumulated other comp. loss (gain) | 8,319 | 8,612 |
Net amount recognized | (4,453) | (4,310) |
Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI | ||
Unrecognized net actuarial loss (gain) | 8,319 | 8,612 |
Unamortized prior service costs | 0 | 0 |
Net initial asset recognition | 0 | 0 |
Net periodic pension expense, included in AOCI | $ 8,319 | $ 8,612 |
Retirement Plans (Periodic Pens
Retirement Plans (Periodic Pension Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | |||
Amortization of prior service cost (credit) | $ 795 | $ 955 | |
Total recognized in other Comprehensive Income | (217) | (2,135) | |
Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI | |||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Tax | 9,000 | ||
Combined Employee Retirement Plans [Member] | |||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | |||
Net loss (gain) | 1,039 | (2,447) | |
Prior service cost | 0 | 0 | |
Amortization of (loss) gain | (1,333) | (955) | |
Amortization of prior service cost (credit) | 0 | 0 | |
Amortization of initial asset | 0 | 0 | |
Total recognized in other Comprehensive Income | (294) | (3,402) | |
Items not yet Recognized as a Component of Net Periodic Pension Expense, Included in AOCI | |||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Tax | 0 | 0 | |
Net actuarial loss (gain) | 706 | 692 | |
Net periodic pension cost | 706 | 692 | |
Projected benefit obligation | 36,299 | 40,181 | $ 39,761 |
Accumulated benefit obligation | 36,299 | 40,181 | |
Fair value of plan assets | 23,527 | 27,259 | $ 22,911 |
Components of Net Cost | |||
Service cost | 0 | 0 | |
Interest cost | 1,459 | 1,593 | |
Expected return on plan assets | (1,535) | (1,367) | |
Amortization of transition amount | 0 | 0 | |
Recognized (gain) loss due to settlement | 0 | 0 | |
Amortization of prior service cost | 0 | 0 | |
Recognized net actuarial loss | 1,333 | 955 | |
Benefit cost | 1,257 | $ 1,181 | |
Estimated Future Benefit Payments | |||
FYE 01-31-2020 | 6,022 | ||
FYE 01-31-2021 | 2,171 | ||
FYE 01-31-2022 | 2,151 | ||
FYE 01-31-2023 | 2,087 | ||
FYE 01-31-2024 | 2,085 | ||
FYE 01-31-2025 to 2029 | 10,524 | ||
Total | $ 25,040 | ||
Weighted Average Assumptions to Determine Net Periodic Pension Cost | |||
Discount rate | 4.25% | 4.25% | |
Expected return on plan assets | 6.50% | 6.50% | |
Minimum [Member] | Combined Employee Retirement Plans [Member] | |||
Weighted Average Assumptions to Determine Benefit Obligations at Year-End | |||
Discount rate | 3.75% | 3.75% | |
Maximum [Member] | Combined Employee Retirement Plans [Member] | |||
Weighted Average Assumptions to Determine Benefit Obligations at Year-End | |||
Discount rate | 4.10% | 4.00% |
Retirement Plans (Fair Value of
Retirement Plans (Fair Value of Employee Plan Assets) (Details) - Combined Employee Retirement Plans [Member] - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 23,527 | $ 27,259 | $ 22,911 |
Managed Investment Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,284 | 1,336 | |
Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 22,243 | 25,923 | |
Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Common Stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9,345 | 9,701 | |
Fair Value, Inputs, Level 1 [Member] | PNC Government Money Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 630 | 1,030 | |
Fair Value, Inputs, Level 1 [Member] | Vanguard Total Bond [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Ishares Credit Bond ETF Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 340 | |
Fair Value, Inputs, Level 1 [Member] | Vanguard INTM Term Investment Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 283 | 702 | |
Fair Value, Inputs, Level 1 [Member] | Vanguard LT Investment [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,304 | 1,973 | |
Fair Value, Inputs, Level 1 [Member] | Ishares Russell 2000 [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,672 | 2,047 | |
Fair Value, Inputs, Level 1 [Member] | Ishares MID-CAP Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,890 | 2,129 | |
Fair Value, Inputs, Level 1 [Member] | Ishares Emerging Markets Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,130 | 1,338 | |
Fair Value, Inputs, Level 1 [Member] | Ishares MCSI RAFE Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,534 | 1,838 | |
Fair Value, Inputs, Level 1 [Member] | Ishares S&P Index [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,895 | 4,825 | |
Fair Value, Inputs, Level 1 [Member] | Vanguard INTM Term Treasury [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 281 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Vanguard LT Treasury [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 1,279 | $ 0 |
Retirement Plans (401(k) Retire
Retirement Plans (401(k) Retirement Plan) (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Company contributions | $ 800,000 | $ 1,400,000 |
Domestic Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Virco stock held in plan | 648,565 | 564,375 |
Company contributions | $ 738,000 | $ 44,000 |
Domestic Plan [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Participant deferral percentage allowance | 1.00% | |
Domestic Plan [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Participant deferral percentage allowance | 75.00% |
Retirement Plans (Life Insuranc
Retirement Plans (Life Insurance) (Details) - USD ($) | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Retirement Benefits [Abstract] | ||
Liability for Future Policy Benefits, Life | $ 9,102,000 | $ 9,095,000 |
Life Insurance, Corporate or Bank Owned, Amount | 2,350,000 | |
Liability beginning of year | 2,088,000 | 2,184,000 |
Accretion expense | 49,000 | 54,000 |
Present value of death benefits paid | (100,000) | (150,000) |
Liability end of year | 2,037,000 | 2,088,000 |
Cash surrender value | 2,098,000 | 2,092,000 |
Death benefits received from life insurance policy | $ 4,256,000 | $ 4,486,000 |
Stock-Based Compensation (Textu
Stock-Based Compensation (Textual) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation at cost | $ 1,600 | |
Compensation Cost Not yet Recognized, Period for Recognition | 2 years 9 months 34 days | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stocks granted during period | 55,555 | 504,404 |
Aggregate fair value of stock awards vested during the period | $ 1,050 | $ 1,260 |
Compensation expense | $ 907 | $ 830 |
Weighted-average grant-date fair value of restricted stock awards granted | $ 4.49 | $ 4.95 |
Shares Paid for Tax Withholding for Share Based Compensation | 57,456 | 73,749 |
Payments Related to Tax Withholding for Share-based Compensation | $ 300 | $ 300 |
Restricted Stock Units [Member] | 2011 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock available for future issuance | 268,277 | |
Restricted stocks granted during period | 55,555 | |
Awards vested during the year | 226,804 | |
Restricted Stock Units [Member] | 2007 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock available for future issuance | 1,000,000 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock Units) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Summary of restricted stock and stock unit awards | ||
Unrecognized compensation at cost | $ 1,600 | |
Restricted Stock Units [Member] | ||
Summary of restricted stock and stock unit awards | ||
Granted | 55,555 | 504,404 |
Expense for 12 months ended | $ 907 | $ 830 |
Restricted Stock Units | ||
Outstanding at beginning of year | 692,404 | 491,284 |
Granted | 55,555 | 504,404 |
Vested | (226,804) | (259,284) |
Forfeited | (20,000) | (44,000) |
Outstanding at end of year | 501,155 | 692,404 |
Weighted- average fair value of restricted stock units | ||
Outstanding at beginning of year | $ 4.25 | $ 2.46 |
Granted | 4.49 | 4.95 |
Vested | 4.63 | 4.86 |
Forfeited | 4.01 | 4.42 |
Outstanding at end of year | $ 4.44 | $ 4.25 |
2011 Plan [Member] | Restricted Stock Units [Member] | ||
Summary of restricted stock and stock unit awards | ||
Granted | 55,555 | |
Restricted Stock Units | ||
Granted | 55,555 |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Statutory | $ (235) | $ 794 |
State taxes (net of federal tax) | 186 | 341 |
Change in valuation allowance | 831 | 410 |
State rate adjustment | (222) | (260) |
Change in unrecognized tax benefits | 1 | 6 |
Stock Compensation | (46) | (200) |
Tax cuts and jobs act | (15) | 4,438 |
Expirations of attributes | 28 | 143 |
Other | (31) | (49) |
Income tax expense (benefit) | $ 497 | $ 5,623 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Current | ||
Federal | $ (24) | $ (296) |
State | 102 | 98 |
Current income tax benefit (expense) | 78 | (198) |
Deferred | ||
Federal | (247) | 5,270 |
State | (165) | 141 |
Total deferred income taxes | (412) | 5,411 |
Change in Valuation Allowance | 831 | 410 |
Deferred income taxes | 419 | 5,821 |
Income tax expense (benefit) | $ 497 | $ 5,623 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 |
Deferred tax assets | ||
Accrued vacation and sick leave | $ 892 | $ 1,015 |
Retirement plans | 2,748 | 3,756 |
Insurance reserves | 381 | 451 |
Warranty | 182 | 242 |
Net operating loss carryforwards | 5,303 | 4,722 |
Inventory | 1,320 | 1,085 |
§ 163 (j) Limitation | 540 | 0 |
Other | 765 | 624 |
Total deferred tax assets | 12,131 | 11,895 |
Deferred tax liabilities | ||
Tax in excess of book depreciation | (720) | (811) |
Other | (57) | (66) |
Total deferred tax liabilities | (777) | (877) |
Valuation allowance | (1,756) | (925) |
Net long term deferred tax asset | $ 9,598 | $ 10,093 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning Balance, unrecognized tax benefits | $ 38 | $ 29 |
Increases related to prior year tax positions | 0 | 2 |
Decreases related to prior year tax positions | (2) | 0 |
Increases related to current year tax positions | 8 | 16 |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 0 | 0 |
Decreases related to lapsing of statute of limitations | (6) | (9) |
Ending Balance, unrecognized tax benefits | $ 38 | $ 38 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | Dec. 22, 2017 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 |
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | $ 38,000 | $ 38,000 | $ 29,000 | |
Unrecognized tax benefits that would favorably impact effective tax rate | 30,000 | |||
Liability for interest and penalties related to unrecognized tax benefits | 6,000 | 5,000 | ||
Unrecognized tax benefit amount that is reasonably possible to decrease | 4,000 | |||
Valuation allowance | 1,756,000 | 925,000 | ||
Federal net operating loss carryforward | 15,299,000 | |||
State net operating loss carryforward | 33,429,000 | |||
Excess tax benefit amount for share based compensation | 46,000 | $ 200,000 | ||
TCJA, Change in tax rate, income tax expense (benefit) | $ 4,438,000 | |||
Accounting Standards Update 2016-09 [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Excess tax benefit amount for share based compensation | $ 171,000 |
Commitments (Lease Terms) (Deta
Commitments (Lease Terms) (Details) - USD ($) $ in Thousands | Nov. 14, 2017 | Aug. 01, 2017 | Jan. 31, 2019 | Jan. 31, 2018 |
Property Subject to or Available for Operating Lease [Line Items] | ||||
Purchase of manufacturing facility | $ 0 | $ 7,200 | ||
Purchase agreement nonbinding commitment down payment | 20.00% | |||
Lease length | 62 months | |||
Manufacturing and Distribution Facility in Torrance, CA [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Operating lease period | 5 years | |||
Minimum [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Monthly base rent | $ 397 | |||
Maximum [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Monthly base rent | $ 447 |
Commitments (Minimum Future Lea
Commitments (Minimum Future Lease Payments) (Details) $ in Thousands | Jan. 31, 2019USD ($) |
Operating Leases, Future Minimum Payments Due | |
Operating leases payments due 2020 | $ 5,045 |
Operating leases payments due 2021 | 4,405 |
Operating leases payments due 2022 | 5,041 |
Operating leases payments due 2023 | 5,040 |
Operating leases payments due 2024 | 5,192 |
Operating leases payments due Thereafter | 6,687 |
Total | $ 31,410 |
Commitments (Rent Expense) (Det
Commitments (Rent Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Commitments [Abstract] | ||
Rent expense | $ 6,006 | $ 5,644 |
Commitments (Purchase Commitmen
Commitments (Purchase Commitments) (Details) | 12 Months Ended |
Jan. 31, 2019USD ($) | |
Raw Materials [Member] | |
Long-term Purchase Commitment [Line Items] | |
Purchase commitment | $ 11,296,000 |
Contingencies (Details Textual)
Contingencies (Details Textual) - USD ($) | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Loss Contingencies [Line Items] | ||
Liability retention losses | $ 30,000,000 | |
Expected future losses | $ 1,265,000 | $ 1,375,000 |
Estimated payout period | 5 years | |
Discount rate | 4.00% | 2.00% |
Product and General Liability [Member] | ||
Loss Contingencies [Line Items] | ||
Self insurance reserve | $ 250,000 | |
Workers Compensation [Member] | ||
Loss Contingencies [Line Items] | ||
Self insurance reserve | 250,000 | |
Automobile Losses [Member] | ||
Loss Contingencies [Line Items] | ||
Self insurance reserve | $ 50,000 |
Contingencies (Minimum Self Ins
Contingencies (Minimum Self Insurance Payments) (Details) $ in Thousands | Jan. 31, 2019USD ($) |
Self Insurance, Future Estimated Payments Due | |
Estimated self insurance payments due in 2020 | $ 265 |
Estimated self insurance payments due in 2021 | 265 |
Estimated self insurance payments due in 2022 | 265 |
Estimated self insurance payments due in 2023 | 270 |
Estimated self insurance payments due in 2024 | 275 |
Estimated self insurance payments due thereafter | 0 |
Estimated self insurance payments, gross | 1,340 |
Discount to net present value | (75) |
Estimated self insurance payments, net | $ 1,265 |
Warranty (Details)
Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Warranty claim activity | ||
Beginning accrued warranty balance | $ 925 | $ 1,000 |
Provision | 600 | 760 |
Provision for (benefits from) prior year | (555) | (380) |
Costs incurred | (270) | (455) |
Ending accrued warranty balance | $ 700 | $ 925 |
Minimum [Member] | ||
Warranty [Line Items] | ||
Product warranty period | 10 years | |
Maximum [Member] | ||
Warranty [Line Items] | ||
Product warranty period | 10 years |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2019 | Jan. 31, 2018 | |
Allowance for doubtful accounts | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Valuation Allowances and Reserves, Beginning Balance | $ 200 | $ 200 |
Valuation Allowances and Reserves, Charged to (Reduced from) Expenses | 3 | 55 |
Valuation Allowances and Reserves, Deductions from Reserves | 3 | 55 |
Valuation Allowances and Reserves, Ending Balance | 200 | 200 |
Product, general, workers’ compensation and automobile liability reserves | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Valuation Allowances and Reserves, Beginning Balance | 1,347 | 1,650 |
Valuation Allowances and Reserves, Charged to (Reduced from) Expenses | 1,357 | 1,101 |
Valuation Allowances and Reserves, Deductions from Reserves | 1,439 | 1,404 |
Valuation Allowances and Reserves, Ending Balance | 1,265 | 1,347 |
Deferred tax valuation allowance | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Valuation Allowances and Reserves, Beginning Balance | 925 | 515 |
Valuation Allowances and Reserves, Charged to (Reduced from) Expenses | 831 | 410 |
Valuation Allowances and Reserves, Deductions from Reserves | 0 | 0 |
Valuation Allowances and Reserves, Ending Balance | $ 1,756 | $ 925 |