Document and Company Informatio
Document and Company Information (USD $) | |||
In Billions, except Share data | 3 Months Ended
Jan. 29, 2010 | Feb. 25, 2010
| May. 01, 2009
|
Document and Company Information [Abstract] | |||
Entity Registrant Name | JOY GLOBAL INC | ||
Entity Central Index Key | 0000801898 | ||
Document Type | 10-Q | ||
Document Period End Date | 2010-01-29 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --10-29 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | 2.8 | ||
Entity Common Stock, Shares Outstanding | 102,937,312 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Income (Unaudited) (USD $) | ||
In Thousands, except Per Share data | 3 Months Ended
Jan. 29, 2010 | 3 Months Ended
Jan. 30, 2009 |
Statement of Income [Abstract] | ||
Net sales | $729,220 | $754,896 |
Costs and expenses: | ||
Cost of sales | 502,438 | 513,791 |
Product development, selling and administrative expenses | 110,015 | 106,830 |
Other income | (793) | (965) |
Operating income | 117,560 | 135,240 |
Interest income | 2,864 | 1,526 |
Interest expense | (7,460) | (8,641) |
Reorganization items | (50) | (135) |
Income before income taxes | 112,914 | 127,990 |
Provision for income taxes | (36,697) | (42,250) |
Net income | $76,217 | $85,740 |
Net income per share: | ||
Basic | 0.74 | 0.84 |
Diluted | 0.73 | 0.83 |
Dividends per share | 0.175 | 0.175 |
Weighted average shares outstanding: | ||
Basic | 102,759 | 102,454 |
Diluted | 104,383 | 102,949 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet (USD $) | ||
In Thousands | Jan. 29, 2010
| Oct. 30, 2009
|
Current assets: | ||
Cash and cash equivalents | $505,050 | $471,685 |
Accounts receivable, net | 544,213 | 580,629 |
Inventories | 763,575 | 769,783 |
Other current assets | 120,119 | 127,930 |
Total current assets | 1,932,957 | 1,950,027 |
Property, plant and equipment, net | 345,994 | 347,058 |
Other intangible assets, net | 184,932 | 187,037 |
Goodwill | 127,704 | 127,732 |
Deferred income taxes | 316,044 | 332,474 |
Other non-current assets | 62,264 | 63,951 |
Total assets | 2,969,895 | 3,008,279 |
Current liabilities: | ||
Short-term notes payable, including current portion of long-term obligations | 19,686 | 19,791 |
Trade accounts payable | 178,468 | 206,770 |
Employee compensation and benefits | 70,898 | 116,149 |
Advance payments and progress billings | 336,894 | 321,629 |
Accrued warranties | 61,397 | 58,947 |
Other accrued liabilities | 153,584 | 203,498 |
Total current liabilities | 820,927 | 926,784 |
Long-term obligations | 520,490 | 523,890 |
Accrued pension costs | 576,138 | 576,140 |
Other liabilities | 169,293 | 167,726 |
Total liabilities | 2,086,848 | 2,194,540 |
Shareholders' equity | 883,047 | 813,739 |
Total liabilities and shareholders' equity | $2,969,895 | $3,008,279 |
1_Condensed Consolidated Statem
Condensed Consolidated Statement of Cash Flows (Unaudited) (USD $) | ||
In Thousands | 3 Months Ended
Jan. 29, 2010 | 3 Months Ended
Jan. 30, 2009 |
Cash flows from operating activities: | ||
Net income | $76,217 | $85,740 |
Add (deduct) - items not affecting cash | ||
Depreciation and amortization | 13,874 | 14,510 |
Increase in deferred income taxes | 74 | 1,858 |
Excess income tax benefit from share-based payment awards | (3,175) | |
Change in long-term accrued pension costs | 6,242 | (652) |
Other, net | 3,562 | 1,897 |
Changes in working capital: | ||
Decrease in accounts receivable, net | 39,124 | 30,547 |
Increase in inventories | (433) | (143,651) |
Decrease (increase) in other current assets | 7,406 | (16,320) |
Decrease in trade accounts payable | (26,020) | (35,522) |
Decrease in employee compensation and benefits | (44,943) | (40,591) |
Increase in advance payments and progress billings | 16,970 | 60,289 |
(Decrease) increase in other accrued liabilities | (29,359) | 6,080 |
Net cash provided (used) by operating activities | 59,539 | (35,815) |
Cash flows from investing activities: | ||
Acquisition of business, net of cash acquired | (11,070) | |
Property, plant and equipment acquired | (14,081) | (22,792) |
Other, net | (1,642) | (2) |
Net cash used by investing activities | (15,723) | (33,864) |
Cash flows from financing activities: | ||
Share-based payment awards | 13,945 | |
Dividends paid | (17,930) | (17,896) |
Purchases of treasury stock | (13,706) | |
(Repayment) borrowings on long-term obligations, net | (3,575) | 70,866 |
Decrease in short-term notes payable | (1,894) | |
Net cash (used) provided by financing activities | (7,560) | 37,370 |
Effect of exchange rate changes on cash and cash equivalents | (2,891) | (5,259) |
Increase (Decrease) in Cash and Cash Equivalents | 33,365 | (37,568) |
Cash and Cash Equivalents at Beginning of Period | 471,685 | 201,575 |
Cash and Cash Equivalents at End of Period | $505,050 | $164,007 |
Description of Business
Description of Business | |
3 Months Ended
Jan. 29, 2010 | |
Description of Business [Abstract] | |
Description of Business | 1. Description of Business Joy Global Inc. (the Company) is a leading manufacturer and servicer of high productivity mining equipment for the extraction of coal and other minerals and ores. Our equipment is used in major mining regions throughout the world to mine coal, copper, iron ore, oil sands and other minerals. We operate in two business segments: underground mining machinery (Joy Mining Machinery or Joy) and surface mining equipment (PH Mining Equipment or PH). Joy is a major manufacturer of underground mining equipment for the extraction of coal and other bedded minerals and offers comprehensive service locations near major mining regions worldwide. PH is a major producer of surface mining equipment for the extraction of ores and minerals and provides extensive operational support for many types of equipment used in surface mining. |
Basis of Presentation
Basis of Presentation | |
3 Months Ended
Jan. 29, 2010 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 2. Basis of Presentation The Condensed Consolidated Financial Statements presented in this quarterly report on Form 10-Q are unaudited and have been prepared by us in accordance with accounting principles generally accepted in the United States of America (GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission. In our opinion, all adjustments necessary for the fair presentation on a going concern basis of the results of operations, cash flows and financial position for all periods presented have been made. All adjustments made are of a normal recurring nature. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual amounts could differ from the estimates. These financial statements should be read in conjunction with the financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended October30, 2009. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year. |
Derivatives
Derivatives | |
3 Months Ended
Jan. 29, 2010 | |
Derivatives [Abstract] | |
Derivatives | 3. Derivatives We enter into derivative contracts, primarily foreign currency forward contracts, to hedge the risks of certain identified and anticipated transactions in currencies other than the functional currency of the respective operating unit. The types of risks hedged are those arising from the variability of future earnings and cash flows caused by fluctuations in foreign currency exchange rates. We have designated substantially all of these contracts as cash flow hedges in accordance with Accounting Standards Codification (ASC) No.815. These contracts are for forecasted transactions, and committed receivables and payables denominated in foreign currencies and not for speculative purposes. We are exposed to certain foreign currency risks in the normal course of our global business operations. For derivative contracts that are designated and qualify for a cash flow hedge, the effective portion of the gain or loss of the derivative contract is recorded as a component of other comprehensive income, net of tax and is reclassified into the income statement, on the same line associated with the underlying transaction and in the same period(s) in which the hedged transaction affects earnings. The amounts recorded in accumulated other comprehensive income for existing cash flow hedges is generally expected to be reclassified into earnings within one year and all of the existing hedges will be reclassified into earnings by August2011. Ineffectiveness related to these derivative contracts was recorded in the Consolidated Statement of Income as a gain of $2.5million and $1.1million for the quarters ended January29, 2010 and January30, 2009, respectively. For derivative contracts that are designated and qualify as a fair value hedge, the gain or loss of the derivative contracts is recorded in the Income Statement under the heading Cost of Sales. For quarters ended January29, 2010 and January30, 2009 we recorded an immaterial gain and a $2.6million loss, respectively, in the Consolidated Statement of Income related to fair value hedges which was offset by foreign exchange fluctuations of the underlying receivable. We are exposed to credit-related losses in the event of non-performance by counterparties to our forward exchange contracts. We currently have a concentration of these contracts held with Bank of America, N.A., which maintains an investment grade rating. We do not expect any counterparties, including Bank of America, N.A., to fail to meet their obligations. A contract is generally subject to credit risk only when it has a positive fair value and the maximum exposure is the amount of the positive fair value. Forward exchange contracts are entered into to protect the value of forecasted transactions and committed future foreign currency receipts and disbursements and consequently any market-related loss on the forward contract would be offset by changes in the value of the hedged item. As a result, we are generally not exposed to net market risk associated with these instruments. The following table summarizes the effect of derivative instruments on the Consolidated Statement of Income: |
Borrowings and Credit Facilitie
Borrowings and Credit Facilities | |
3 Months Ended
Jan. 29, 2010 | |
Borrowings and Credit Facilities [Abstract] | |
Borrowings and Credit Facilities | 4. Borrowings and Credit Facilities Direct borrowings and capital lease obligations consisted of the following: January 29, October 30, In thousands 2010 2009 6.0% Senior Notes due 2016 $ 247,442 $ 247,366 6.625% Senior Notes due 2036 148,400 148,395 Term loan 140,000 144,375 Short-term notes payable 1,465 1,464 Capital leases and other 2,869 2,081 540,176 543,681 Less: Amounts due within one year (19,686 ) (19,791 ) Long-term obligations $ 520,490 $ 523,890 We have a $400.0million unsecured revolving credit facility (Credit Agreement) which expires November10, 2011. Outstanding borrowings bear interest equal to the London Interbank Offered Rate (LIBOR) Rate (defined as applicable LIBOR rate for the equivalent interest period plus 0.5% to 1.25%) or the Base Rate (defined as the higher of the Prime Rate or the Federal Funds Effective Rate plus 0.5%) at our option. We pay a commitment fee ranging from 0.125% to 0.25% on the unused portion of the revolving credit facility based on our credit rating. The Credit Agreement requires the maintenance of certain financial covenants, including covenants related to leverage and interest coverage. The Credit Agreement also restricts payments of dividends or other return of capital based on the consolidated leverage ratio. At January29, 2010, we were in compliance with all financial covenants in the Credit Agreement and had no restrictions on the payment of dividends or return of capital. At January29, 2010, there were no outstanding direct borrowings under the Credit Agreement. Outstanding letters of credit issued under the Credit Agreement, which count toward the $400.0 million credit limit, totaled $129.9million. At January29, 2010, there was $270.1million available for borrowings under the Credit Agreement. |
Share Based Compensation
Share Based Compensation | |
3 Months Ended
Jan. 29, 2010 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | 5. Share-Based Compensation We recognized total share-based compensation expense for the quarter ended January29, 2010 and January30, 2009 of approximately $5.2million and $4.8million, respectively. Stock Options A summary of stock option activity under all plans is as follows: Aggregate Weighted-Average Intrinsic Number of Exercise Price Value Options per Share (In Millions) Outstanding at October30, 2009 3,634,045 $ 29.95 $ 79.3 Options granted 488,500 52.81 Options exercised (453,712 ) 23.74 Options forfeited and cancelled (122,665 ) 25.32 Outstanding at January29, 2010 3,546,168 $ 34.05 $ 52.7 Exercisable at January29, 2010 1,630,200 $ 34.43 $ 23.7 The fair value of the stock awards is the estimated fair value at grant date using the Black-Scholes valuation model and is recognized as expense on a straight line basis over the vesting period, which is three years. The weighted average assumptions and resulting estimated fair value is as follows: Quarter Ended January 29, 2010 Risk free interest rate 1.23 % Expected volatility 49.14 % Expected life in years 3.36 Dividend yield 1.37 % Weighted average estimated fair value at grant date $ 17.44 Restricted Stock Units Aggregate Weighted-Average Intrinsic Number of Exercise Price Value Units per Share (In Millions) Outstanding at October30, 2009 534,684 $ 26.57 Units granted 208,500 52.81 Units earned from dividends 2,316 51.82 Units settled (33,814 ) 26.27 $ 2.0 Units deferred (13,190 ) 34.88 0.8 Units forfeited (13,521 ) 25.05 Outstanding at January29, 2010 684,975 $ 34.53 Performance Shares Aggregate Weighted-Average Intrinsic Number of Exercise Price Value Shares per Share (In Millions) Outstanding at October30, 2009 520,950 $ 34.64 Shares granted 88,500 52.81 Shares distributed (63,666 ) 41.25 $ 3.8 Shares forfeited (21,005 ) 24.67 Outstanding at January29, 2010 524,779 $ 37.30 |
Warranties
Warranties | |
3 Months Ended
Jan. 29, 2010 | |
Warranties [Abstract] | |
Warranties | 6. Warranties The following table reconciles the changes in the product warranty reserve: Quarter Ended January 29, January 30, In thousands 2010 2009 Balance, beginning of period $ 58,947 $ 46,621 Accrual for warranty expensed during the period 8,264 5,574 Settlements made during the period (5,331 ) (5,330 ) Change in liability for pre-existing warranties during the period, including expirations (115 ) 45 Effect of foreign currency translation (368 ) (1,716 ) Balance, end of period $ 61,397 $ 45,194 |
Basic and Diluted Net Income Pe
Basic and Diluted Net Income Per Share | |
3 Months Ended
Jan. 29, 2010 | |
Basic and Diluted Net Income Per Share [Abstract] | |
Basic and Diluted Net Income Per Share | 7. Basic and Diluted Net Income Per Share Basic net income per share is computed based on the weighted-average number of shares outstanding during each period. Diluted net income per share is computed based on the weighted-average number of ordinary shares during each period, plus dilutive potential shares considered outstanding during the period in accordance with ASC No.260, Earnings per Share. The following table sets forth the computation of basic and diluted net income per share: Quarter Ended January 29, January 30, In thousands, except per share data 2010 2009 Numerator: Net income $ 76,217 $ 85,740 Denominator: Denominator for basic net income per share - Weighted average shares 102,759 102,454 Effect of dilutive securities: Stock options, restricted stock units and performance shares 1,624 495 Denominator for diluted net income per share - Adjusted weighted average shares and assumed conversions 104,383 102,949 Net income per share: Basic $ 0.74 $ 0.84 Diluted $ 0.73 $ 0.83 |
Contingent Liabilities
Contingent Liabilities | |
3 Months Ended
Jan. 29, 2010 | |
Contingent Liabilities [Abstract] | |
Contingent Liabilities | 8. Contingent Liabilities We and our subsidiaries are involved in various unresolved legal matters that arise in the normal course of operations, the most prevalent of which relate to product liability (including over 1,000 asbestos and silica-related cases), employment, and commercial matters. Also, as a normal part of operations, our subsidiaries undertake contractual obligations, warranties, and guarantees in connection with the sale of products or services. Although the outcome of these matters cannot be predicted with certainty and favorable or unfavorable resolutions may affect the results of operations on a quarter-to-quarter basis, we believe that the outcome of such legal and other matters will not have a materially adverse effect on our consolidated financial position, results of operations, or liquidity. During the Chapter11 reorganization of Harnischfeger Industries, Inc., our Predecessor Company, in 1999 by the filing of a voluntary petition under Chapter11 of the United States Bankruptcy Code, the Wisconsin Department of Workforce Development (DWD) filed claims against Beloit Corporation (Beloit), a former majority owned subsidiary, and us in Federal bankruptcy court seeking at least $10million in severance benefits and penalties, plus interest, on behalf of former Beloit employees. DWDs claim against Beloit included unpaid severance pay due under a severance policy Beloit established in 1996. DWD alleges that Beloit violated its alleged contractual obligations under the 1996 policy when it amended the policy in 1999. The Federal District Court for the District of Delaware removed DWDs claims from the bankruptcy court and granted summary judgment in our favor on all of DWDs claims in December2001. DWD appealed the decision and the judgment was ultimately vacated in part and remanded. Following further proceedings, DWDs only remaining claim against us is that our Predecessor Company tortiously interfered with Beloits decision to amend its severance policy. We have commenced a trial on DWDs remaining claim on March1, 2010. We do not believe these proceedings will have a significant effect on our financial condition, results of operations, or liquidity. Because DWDs claims were still being litigated as of the effective date of our plan of reorganization, the plan of reorganization provided that the claim allowance process with respect to DWDs claims would continue as long as necessary to liquidate and determine these claims. At January29, 2010, we were contingently liable to banks, financial institutions, and others for approximately $167.7million for outstanding letters of credit, bank guarantees, and surety bonds securing performance of sales contracts and other guarantees in the ordinary course of business. Of the $167.7million, approximately $1.5million remains in place and is substantially attributable to remaining workers compensation obligations of Beloit and $14.6 million is relative to outstanding letters of credit or other guarantees issued by non-U.S. banks for non-U.S. subsidiaries under locally provided credit facilities. From time to time we and our subsidiaries become involved in proceedings relat |
Fair Value Measurements
Fair Value Measurements | |
3 Months Ended
Jan. 29, 2010 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 9. Fair Value Measurements ASC No.820, Fair Value Measurements and Disclosures provides a definition of fair value, establishes a framework for measuring fair value within GAAP and expands disclosures about fair value measurements. ASC No.820 establishes a three-level fair value hierarchy that prioritizes information used in developing assumptions when pricing an asset or liability as follows: Level 1: Observable inputs such as quoted prices in active markets Level 2: Inputs, other than quoted prices in active markets that are observable either directly or indirectly Level 3: Unobservable inputs where there is little or no market data, which requires the reporting entity to develop its own assumptions ASC No.820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. Financial assets and liabilities measured at fair value as of January29, 2010 consisted of forward foreign exchange contracts. The fair value of forward foreign exchange contracts represents the estimated amounts receivable (payable)to terminate such contracts at the reporting date based on foreign exchange market prices at that date. The fair value of the forward foreign exchange contracts, together with the inputs used to develop the fair value measurements, are as follows: January 29, In thousands 2010 Level 1 Level 2 Level 3 Assets Derivatives $ 4,095 $ $ 4,095 $ Liabilities Derivatives $ (12,742 ) $ $ (12,742 ) $ The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash and Cash Equivalents: The carrying value approximates fair value because of the short maturity of those instruments. Term Loan: The fair value of our term loan is estimated based upon input from third parties on prevailing current market conditions. Senior Notes: The fair market value of the Senior Notes is estimated based on market quotations at year-end. The estimated fair values of financial instruments at January29, 2010 and October30, 2009 are as follows: In thousands Carrying Value Fair Value January29, 2010 Cash and cash equivalents $ 505,050 $ 505,050 6.0% Senior Notes 247,442 264,375 6.625% Senior Notes 148,400 143,042 Term Loan 140,000 136,236 Other borrowings 4,334 4,334 October30, 2009 Cash and cash equivalents $ 471,685 $ 471,685 6.0% Senior Notes 247,366 250,605 6.625% Senior Notes 148,395 138,287 Term Loan 144,375 140,999 Other borrowings 3,545 3,545 Forward exchange contracts (4, |
Comprehensive Income
Comprehensive Income | |
3 Months Ended
Jan. 29, 2010 | |
Comprehensive Income [Abstract] | |
Comprehensive Income | 10. Comprehensive Income Comprehensive income consisted of the following: Quarter Ended January 29, January 30, In thousands 2010 2009 Net income $ 76,217 $ 85,740 Other comprehensive income (loss): Pension postretirement adjustments 8,084 47 Translation adjustments (9,736 ) (18,529 ) Derivative fair value adjustments (4,729 ) (8,439 ) Total other comprehensive loss (6,381 ) (26,921 ) Comprehensive income $ 69,836 $ 58,819 |
Inventories
Inventories | |
3 Months Ended
Jan. 29, 2010 | |
Inventories [Abstract] | |
Inventories | 11. Inventories Consolidated inventories consisted of the following: January 29, October 30, In thousands 2010 2009 Finished goods $ 484,404 $ 513,055 Work in process and purchased parts 206,617 173,850 Raw materials 72,554 82,878 $ 763,575 $ 769,783 |
Retiree Benefits
Retiree Benefits | |
3 Months Ended
Jan. 29, 2010 | |
Retiree Benefits [Abstract] | |
Retiree Benefits | 12. Retiree Benefits The components of the net periodic pension and other post-retirement benefit (OPEB) expense recognized are as follows: Pension Benefits Postretirement Benefits Quarter Ended Quarter Ended January 29, January 30, January 29, January 30, In thousands 2010 2009 2010 2009 Service cost $ 5,273 $ 3,900 $ 258 $ 218 Interest cost 21,316 21,439 410 712 Expected return on assets (21,791 ) (20,943 ) (67 ) (46 ) Amortization of: Prior service cost 290 286 (41 ) Actuarial (gain)loss 8,146 37 (352 ) (235 ) Net periodic pension and OPEB expense $ 13,234 $ 4,719 $ 249 $ 608 For fiscal 2010, we expect to contribute approximately $80.0million to $100.0million to our defined benefit employee pension plans globally. |
Segment Information
Segment Information | |
3 Months Ended
Jan. 29, 2010 | |
Segment Information [Abstract] | |
Segment Information | 13. Segment Information As of January29, 2010, we had two reportable segments: Underground Mining Machinery and Surface Mining Equipment. At the beginning of fiscal 2010, the integration of the conveying business was completed, and the Continental Crushing and Conveying segment was combined with the Underground Mining Machinery and Surface Mining Equipment segments. Crushing and conveying operating results related to surface applications are reported as part of the Surface Mining Equipment segment, while total crushing and conveying operating results are included with the Underground Mining Machinery segment. Eliminations include the surface applications of crushing and conveying included in both operating segments. The prior year presentation has been restated to reflect this change. Operating income (loss)of segments does not include interest income and expense, reorganization items and provision for income taxes. Underground Surface Mining Mining Machinery Equipment Corporate Eliminations Total 1st Quarter 2010 Net sales $ 423,731 $ 328,000 $ $ (22,511 ) $ 729,220 Operating income (loss) $ 68,223 $ 65,384 $ (10,250 ) $ (5,797 ) $ 117,560 Interest and other (4,646 ) (4,646 ) Income before income taxes $ 68,223 $ 65,384 $ (14,896 ) $ (5,797 ) $ 112,914 Depreciation and amortization $ 8,736 $ 5,111 $ 27 $ $ 13,874 Capital expenditures $ 8,332 $ 5,635 $ 114 $ $ 14,081 Total assets $ 1,588,249 $ 798,376 $ 583,270 $ $ 2,969,895 1st Quarter 2009 Net sales $ 484,167 $ 310,243 $ $ (39,514 ) $ 754,896 Operating income (loss) $ 92,173 $ 62,224 $ (9,366 ) $ (9,791 ) $ 135,240 Interest and other (7,250 ) (7,250 ) Income before income taxes $ 92,173 $ 62,224 $ (16,616 ) $ (9,791 ) $ 127,990 Depreciation and amortization $ 9,949 $ 4,552 $ 9 $ $ 14,510 Capital expenditures $ 12,906 $ 9,886 $ $ $ 22,792 Total assets $ 1,640,536 $ 799,453 $ 281,194 $ $ 2,721,183 |
Subsequent Event
Subsequent Event | |
3 Months Ended
Jan. 29, 2010 | |
Subsequent Event [Abstract] | |
Subsequent Event | 14. Subsequent Event On February18, 2010, our Board of Directors declared a cash dividend of $0.175 per outstanding share of common stock. The dividend will be paid on March19, 2010 to all shareholders of record at the close of business on March5, 2010. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | |
3 Months Ended
Jan. 29, 2010 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 15. Recent Accounting Pronouncements In December2009, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No.2009-17, Consolidations (Topic 810): Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities. ASU No.2009-17 clarifies how a company determines when an entity that is insufficiently capitalized or is not controlled through voting should be consolidated. This statement is effective for us beginning in the first quarter of fiscal 2011 (October30, 2010). We are assessing the potential impact that the adoption of ASU No.2009-17 will have on our consolidated financial statements. In October2009, FASB issued ASU No.2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements a consensus of the FASB Emerging Issues Task Force. ASU No.2009-13 establishes the accounting and reporting guidance for arrangements under which a vendor will perform multiple revenue-generating activities. Specifically, this ASU addresses how to separate deliverables and how to measure and allocate arrangement consideration to one or more units of accounting. This guidance will be effective for us in the beginning of the first quarter of fiscal 2011 (October30, 2010) and, when adopted, will change our accounting treatment for multiple-element revenue arrangements on a prospective basis. In June2009, FASB issued SFAS No.167, Amendments to FASB Interpretation No.46(R). SFAS No. 167 changes how a company determines when an entity that is insufficiently capitalized or is not controlled through voting should be consolidated. The determination of whether a company is required to consolidate an entity is based on, among other things, an entitys purpose and design and a companys ability to direct the activities of the entity that most significantly impact the entitys economic performance. This statement is effective for us in fiscal 2011. We are assessing the potential impact that the adoption of SFAS No.167 will have on our consolidated financial statements. In December2007, FASB issued ASC No.805, Business Combinations. ASC No.805 requires the measurement at fair value of assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree as of the acquisition date. ASC No.805 also requires that acquisition related costs and costs to restructure the acquiree be expensed as incurred. ASC No.805 became effective for us beginning in fiscal 2010. The adoption of ASC No.805 did not have a significant effect on our consolidated financial statements and related disclosures. In December2007, FASB issued ASC No.810, Consolidation. The objective of ASC No.810 is to improve the transparency and comparability of financial information that is provided as it relates to a parent and noncontrolling interests. ASC No.810 requires clear identification of ownership interests in subsidiaries held by other parties and the amount of consolidated net income attributable to the parent and other parties. The codification also requires changes in parent ownership interests to be accounted for consistently, while the parent retains its controlling interest in |
Subsidiary Guarantors
Subsidiary Guarantors | |
3 Months Ended
Jan. 29, 2010 | |
Subsidiary Guarantors [Abstract] | |
Subsidiary Guarantors | 16. Subsidiary Guarantors The following tables present condensed consolidated financial information as of and for the quarter ended January29, 2010 and January30, 2009 for: (a)the parent company; (b)on a combined basis, the guarantors of the Credit Agreement and Senior Notes issued in November 2006, which include the significant domestic operations of Joy Technologies Inc., PH Mining Equipment Inc., N.E.S. Investment Co., and Continental Crushing Conveying Inc. (Subsidiary Guarantors); and (c)on a combined basis, the non-guarantors, which include all of our foreign subsidiaries and a number of small domestic subsidiaries (Non-Guarantor Subsidiaries). Separate financial statements of the Subsidiary Guarantors are not presented because the guarantors are unconditionally, jointly, and severally liable under the guarantees, and we believe such separate statements or disclosures would not be useful to investors. Condensed Consolidating Statement of Income Quarter Ended January29, 2010 (In thousands) Parent Subsidiary Non-Guarantor Company Guarantors Subsidiaries Eliminations Consolidated Net sales $ $ 445,793 $ 416,602 $ (133,175 ) $ 729,220 Cost of sales 307,378 303,279 (108,219 ) 502,438 Product development, selling and administrative expenses 10,252 56,844 42,919 110,015 Other income 16,173 (16,966 ) (793 ) Operating income (loss) (10,252 ) 65,398 87,370 (24,956 ) 117,560 Intercompany items 9,649 (15,932 ) (14,650 ) 20,933 Interest income (expense) net (7,164 ) 866 1,702 (4,596 ) Reorganization items (50 ) (50 ) Income (loss)from continuing operations before income taxes and equity (7,817 ) 50,332 74,422 (4,023 ) 112,914 Provision (benefit)for income taxes (5,538 ) 34,342 7,893 36,697 Equity in income (loss)of subsidiaries 78,496 40,148 (118,644 ) Net income $ 76,217 $ 56,138 $ 66,529 $ (122,667 ) $ 76,217 Condensed Consolidating Statement of Income Quarter Ended January30, 2009 (In thousands) Non- Parent Subsidiary Guarantor Company Guarantors Subsidiaries Eliminations Consolidated Net sales $ $ 517,609 $ 405,185 $ (167,898 ) $ 754,896 Cost of sales 344,265 307,422 (137,896 ) 513,791 Product development, selling and administrative expenses 9,322 60,087 37,421 106,830 Other (income)expense |