Document and Entity Information
Document and Entity Information (USD $) | |||
In Billions, except Share data | 6 Months Ended
Apr. 30, 2010 | May. 25, 2010
| May. 01, 2009
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | JOY GLOBAL INC | ||
Entity Central Index Key | 0000801898 | ||
Document Type | 10-Q | ||
Document Period End Date | 2010-04-30 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,010 | ||
Document Fiscal Period Focus | Q2 | ||
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 | 103,175,853 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Income (Unaudited) (USD $) | ||||
In Thousands, except Per Share data | 3 Months Ended
Apr. 30, 2010 | 3 Months Ended
May. 01, 2009 | 6 Months Ended
Apr. 30, 2010 | 6 Months Ended
May. 01, 2009 |
Condensed Consolidated Statement of Income [Abstract] | ||||
Net sales | $896,224 | $923,500 | $1,625,444 | $1,678,396 |
Costs and expenses: | ||||
Cost of sales | 590,772 | 628,207 | 1,093,210 | 1,141,998 |
Product development, selling and administrative expenses | 126,270 | 107,885 | 236,285 | 214,715 |
Other income | (1,358) | (657) | (2,151) | (1,622) |
Operating income | 180,540 | 188,065 | 298,100 | 323,305 |
Interest income | 2,900 | 1,615 | 5,764 | 3,141 |
Interest expense | (7,230) | (8,149) | (14,690) | (16,790) |
Reorganization items | (545) | (265) | (595) | (400) |
Income before income taxes | 175,665 | 181,266 | 288,579 | 309,256 |
Provision for income taxes | 55,224 | 60,725 | 91,921 | 102,975 |
Net income | $120,441 | $120,541 | $196,658 | $206,281 |
Basic earnings per share | 1.17 | 1.18 | 1.91 | 2.01 |
Diluted earnings per share | 1.15 | 1.17 | 1.88 | $2 |
Dividends per share | 0.175 | 0.175 | 0.35 | 0.35 |
Weighted average shares outstanding: | ||||
Basic | 103,160 | 102,394 | 102,959 | 102,424 |
Diluted | 104,850 | 102,877 | 104,616 | 102,913 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet (USD $) | ||
In Thousands | Apr. 30, 2010
| Oct. 30, 2009
|
Current assets: | ||
Cash and cash equivalents | $583,033 | $471,685 |
Accounts receivable, net | 594,864 | 580,629 |
Inventories | 723,127 | 769,783 |
Other current assets | 121,295 | 127,930 |
Total current assets | 2,022,319 | 1,950,027 |
Property, plant and equipment, net | 353,668 | 347,058 |
Other intangible assets, net | 182,366 | 187,037 |
Goodwill | 128,690 | 127,732 |
Deferred income taxes | 310,512 | 332,474 |
Other non-current assets | 64,444 | 63,951 |
Total assets | 3,061,999 | 3,008,279 |
Current liabilities: | ||
Short-term notes payable, including current portion of long-term obligations | 19,539 | 19,791 |
Trade accounts payable | 217,963 | 206,770 |
Employee compensation and benefits | 90,531 | 116,149 |
Advance payments and progress billings | 278,219 | 321,629 |
Accrued warranties | 59,726 | 58,947 |
Other accrued liabilities | 160,845 | 203,498 |
Total current liabilities | 826,823 | 926,784 |
Long-term obligations | 515,795 | 523,890 |
Accrued pension costs | 550,620 | 576,140 |
Other liabilities | 158,525 | 167,726 |
Total liabilities | 2,051,763 | 2,194,540 |
Shareholders' equity | 1,010,236 | 813,739 |
Total liabilities and shareholders' equity | $3,061,999 | $3,008,279 |
1_Condensed Consolidated Statem
Condensed Consolidated Statement of Cash Flows (Unaudited) (USD $) | ||
In Thousands | 6 Months Ended
Apr. 30, 2010 | 6 Months Ended
May. 01, 2009 |
Cash flows from operating activities: | ||
Net income | $196,658 | $206,281 |
Add (deduct) - items not affecting cash | ||
Depreciation and amortization | 29,329 | 27,985 |
Increase in deferred income taxes | 6,982 | 3,650 |
Excess income tax benefit from share-based payment awards | (5,013) | |
Change in long-term accrued pension costs | (14,252) | (6,171) |
Other, net | 3,516 | 4,560 |
Changes in working capital: | ||
(Increase) decrease in accounts receivable, net | (1,180) | 28,910 |
(Increase) decrease in inventories | 37,780 | (138,181) |
(Increase) decrease in other current assets | 5,282 | (8,899) |
(Decrease) increase in trade accounts payable | 13,464 | (55,574) |
(Decrease) increase in employee compensation and benefits | (25,735) | (31,305) |
(Decrease) increase in advance payments and progress billings | (43,927) | 6,933 |
(Decrease) increase in other accrued liabilities | (34,891) | (11,337) |
Net cash provided by operating activities | 168,013 | 26,852 |
Cash flows from investing activities: | ||
Acquisition of business, net of cash acquired | (11,184) | |
Property, plant and equipment acquired | (32,124) | (48,659) |
Other, net | (1,588) | 1,174 |
Net cash used by investing activities | (33,712) | (58,669) |
Cash flows from financing activities: | ||
Share-based payment awards | 16,925 | 121 |
Excess income tax benefit from share-based payment awards | 5,013 | |
Dividends paid | (35,948) | (35,785) |
Purchases of treasury stock | (13,706) | |
(Repayment) borrowings on long-term obligations, net | (8,520) | 60,917 |
Decrease in short-term notes payable | (1,273) | |
Net cash (used) provided by financing activities | (22,530) | 10,274 |
Effect of exchange rate changes on cash and cash equivalents | (423) | 1,178 |
Increase (Decrease) in Cash and Cash Equivalents | 111,348 | (20,365) |
Cash and Cash Equivalents at Beginning of Period | 471,685 | 201,575 |
Cash and Cash Equivalents at End of Period | $583,033 | $181,210 |
Description of Business
Description of Business | |
6 Months Ended
Apr. 30, 2010 | |
Description of Business [Abstract] | |
Description of Business | 1. Description of Business Joy Global Inc. (the Company) is a worldwide leader in high productivity mining solutions, and we manufacture and market original equipment and aftermarket parts and services for both underground and surface mining and certain industrial applications. 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 | |
6 Months Ended
Apr. 30, 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 | |
6 Months Ended
Apr. 30, 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. 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 October2011. Ineffectiveness related to these derivative contracts was recorded in the Consolidated Statement of Income as a gain of $0.2million and $0.6million for the quarters ended April30, 2010 and May1, 2009, respectively. Ineffectiveness related to these derivative contracts was recorded in the Consolidated Statement of Income as a gain of $2.7million for the six months ended April30, 2010. 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 Consolidated Statement of Income under the heading Cost of Sales. For quarters ended April30, 2010 and May1, 2009 we recorded a loss of $0.2million and $2.0million, respectively, in the Consolidated Statement of Income related to fair value hedges which was offset by foreign exchange fluctuations of the underlying receivable. For the six months ended April30, 2010 we recorded a loss of $0.2 million 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 conseq |
Borrowings and Credit Facilitie
Borrowings and Credit Facilities | |
6 Months Ended
Apr. 30, 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: April 30, October 30, In thousands 2010 2009 6.0% Senior Notes due 2016 $ 247,519 $ 247,366 6.625% Senior Notes due 2036 148,406 148,395 Term loan 135,625 144,375 Capital leases and other 3,784 3,545 535,334 543,681 Less: Amounts due within one year (19,539 ) (19,791 ) Long-term obligations $ 515,795 $ 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) (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 April30, 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 April30, 2010, there was $253.4million available for borrowings under the Credit Agreement. Outstanding letters of credit issued under the Credit Agreement, which count toward the $400.0million credit limit, totaled $146.6million. At April30, 2010, there were no outstanding direct borrowings under the Credit Agreement. |
Warranties
Warranties | |
6 Months Ended
Apr. 30, 2010 | |
Warranties [Abstract] | |
Warranties | 5. Warranties The following table reconciles the changes in the product warranty reserve: Quarter Ended Six Months Ended April 30, May 1, April 30, May 1, In thousands 2010 2009 2010 2009 Balance, beginning of period $ 61,397 $ 45,194 $ 58,947 $ 46,621 Accrual for warranty expensed during the period 9,680 9,054 17,944 14,628 Settlements made during the period (10,505 ) (6,781 ) (15,836 ) (12,111 ) Change in liability for pre-existing warranties during the period, including expirations (546 ) 255 (661 ) 300 Effect of foreign currency translation (300 ) 1,330 (668 ) (386 ) Balance, end of period $ 59,726 $ 49,052 $ 59,726 $ 49,052 |
Basic and Diluted Net Income Pe
Basic and Diluted Net Income Per Share | |
6 Months Ended
Apr. 30, 2010 | |
Basic and Diluted Net Income Per Share [Abstract] | |
Basic and Diluted Net Income Per Share | 6. 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. The following table sets forth the computation of basic and diluted net income per share: Quarter Ended Six Months Ended April 30, May 1, April 30, May 1, In thousands except per share data 2010 2009 2010 2009 Numerator: Net income $ 120,441 $ 120,541 $ 196,658 $ 206,281 Denominator: Denominator for basic net income per share - Weighted average shares 103,160 102,394 102,959 102,424 Effect of dilutive securities: Stock options, restricted stock units and performance shares 1,690 483 1,657 489 Denominator for diluted net income per share - Adjusted weighted average shares and assumed conversions 104,850 102,877 104,616 102,913 Basic earnings per share: $ 1.17 $ 1.18 $ 1.91 $ 2.01 Diluted earnings per share: $ 1.15 $ 1.17 $ 1.88 $ 2.00 |
Contingent Liabilities
Contingent Liabilities | |
6 Months Ended
Apr. 30, 2010 | |
Contingent Liabilities [Abstract] | |
Contingent Liabilities | 7. 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 concluded a trial on DWDs remaining claim during the week of March1, 2010 and are awaiting a ruling on the matter, which we expect to receive during the fourth quarter. 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. On May29, 2010, the collective bargaining agreement with the International Association of Machinists at the Joy Mining Machinery factory, located in Franklin, Pennsylvania, was renewed. At April30, 2010, we were contingently liable to banks, financial institutions, and others for approximately $181.9million 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 $181.9million, approximately $1.5million remains in place and is substantially attributable t |
Fair Value Measurements
Fair Value Measurements | |
6 Months Ended
Apr. 30, 2010 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 8. Fair Value Measurements GAAP 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 GAAP 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. The following tables present the fair value hierarchy for those assets and liabilities measured at fair value and disclosed the fair value of certain other liabilities as of April 30, 2010 and October30, 2009. Fair Value Measurements at April30, 2010 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Total Fair Assets Inputs Inputs In thousands Value Value Level 1 Level 2 Level 3 Current Assets Cash and cash equivalents $ 583,033 $ 583,033 $ 583,033 $ $ Other Current Assets Derivatives $ 3,393 $ 3,393 $ $ 3,393 $ Short term notes payable, Including current portion of long term obligations Current portion of Term Loan $ 17,500 $ 17,500 $ $ 17,500 $ Other Accrued Liabilities Derivatives $ 12,674 $ 12,674 $ $ 12,674 $ Long term Obligations 6.0% Senior Notes $ 247,519 $ 264,063 $ 264,063 $ $ 6.625% Senior Notes 148,406 147,000 147,000 Term Loan 118,125 115,212 115,212 Fair Value Measurements at October30, 2009 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Total Fair Assets Inputs Inputs In thousands Value Value Level 1 Level 2 Level 3 Current Assets Cash and cash equivalents $ 471,685 $ 471,685 $ 471,685 $ $ Other Current Assets Derivatives $ 7,008 $ $ $ |
Share-Based Compensation
Share-Based Compensation | |
6 Months Ended
Apr. 30, 2010 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | 9. Share-Based Compensation We recognized total share-based compensation expense for the quarters ended April30, 2010 and May1, 2009 of approximately $9.2million and $4.2million, respectively. We recognized total share-based compensation expense for the six months ended April30, 2010 and May1, 2009 of approximately $14.4million and $9.0million, respectively. |
Inventories
Inventories | |
6 Months Ended
Apr. 30, 2010 | |
Inventories [Abstract] | |
Inventories | 10. Inventories Consolidated inventories consisted of the following: April 30, October 30, In thousands 2010 2009 Finished goods $ 500,357 $ 513,055 Work in process and purchased parts 151,670 173,850 Raw materials 71,100 82,878 $ 723,127 $ 769,783 |
Comprehensive Income
Comprehensive Income | |
6 Months Ended
Apr. 30, 2010 | |
Comprehensive Income [Abstract] | |
Comprehensive Income | 11. Comprehensive Income Comprehensive income consisted of the following: Quarter Ended Six Months Ended April 30, May 1, April 30, May 1, In thousands 2010 2009 2010 2009 Net income $ 120,441 $ 120,541 $ 196,658 $ 206,281 Other comprehensive income (loss): Pension postretirement adjustments 2,694 47 10,778 94 Translation adjustments 3,044 28,622 (6,692 ) 10,093 Derivative fair value adjustments 1,847 8,880 (2,882 ) 441 Total other comprehensive income 7,585 37,549 1,204 10,628 Comprehensive income $ 128,026 $ 158,090 $ 197,862 $ 216,909 |
Retiree Benefits
Retiree Benefits | |
6 Months Ended
Apr. 30, 2010 | |
Retiree Benefits [Abstract] | |
Retiree Benefits | 12. Retiree Benefits The components of the net periodic pension and other post-retirement benefits (OPEB) expense recognized are as follows: Pension Benefits Postretirement Benefits Quarter Ended Quarter Ended April 30, May 1, April 30, May 1, 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 ) (21,494 ) (67 ) 15 Amortization of: Prior service cost 290 286 (41 ) Actuarial loss (gain) 8,146 37 (352 ) (235 ) Net periodic benefit cost $ 13,234 $ 4,168 $ 249 $ 669 Pension Benefits Postretirement Benefits Six Months Ended Six Months Ended April 30, May 1, April 30, May 1, In thousands 2010 2009 2010 2009 Service cost $ 10,546 $ 7,800 $ 516 $ 436 Interest cost 42,632 42,878 820 1,424 Expected return on assets (43,582 ) (42,437 ) (134 ) (107 ) Amortization of: Prior service cost 580 572 (82 ) Actuarial loss (gain) 16,292 74 (704 ) (470 ) Net periodic benefit cost $ 26,468 $ 8,887 $ 498 $ 1,201 For fiscal 2010, we expect to contribute approximately $85.0million to $105.0million to our defined benefit employee pension plans globally. |
Segment Information
Segment Information | |
6 Months Ended
Apr. 30, 2010 | |
Segment Information [Abstract] | |
Segment Information | 13. Segment Information As of April30, 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 In thousands Machinery Equipment Corporate Eliminations Total Quarter ended April30, 2010 Net sales $ 544,287 $ 383,613 $ $ (31,676 ) $ 896,224 Operating income (loss) $ 109,264 $ 92,007 $ (12,886 ) $ (7,845 ) $ 180,540 Interest and other (4,875 ) (4,875 ) Income before income taxes $ 109,264 $ 92,007 $ (17,761 ) $ (7,845 ) $ 175,665 Depreciation and amortization $ 10,274 $ 5,149 $ 32 $ $ 15,455 Capital expenditures $ 4,331 $ 13,720 $ (8 ) $ $ 18,043 Quarter ended May1, 2009 Net sales $ 571,629 $ 388,685 $ $ (36,814 ) $ 923,500 Operating income (loss) $ 121,862 $ 84,750 $ (8,778 ) $ (9,769 ) $ 188,065 Interest and other (6,799 ) (6,799 ) Income before income taxes $ 121,862 $ 84,750 $ (15,577 ) $ (9,769 ) $ 181,266 Depreciation and amortization $ 9,019 $ 4,447 $ 9 $ $ 13,475 Capital expenditures $ 18,398 $ 7,469 $ $ $ 25,867 Six months ended April30, 2010 Net sales $ 968,018 $ 711,613 $ $ (54,187 ) $ 1,625,444 Operating income (loss) $ 177,487 $ 157,391 $ (23,136 ) $ (13,642 ) $ 298,100 Interest and other (9,521 ) (9,521 ) Income before income taxes $ 177,487 $ 157,391 $ (32,657 ) $ (13,642 ) $ 288,579 Depreciation and amortization $ 19,010 $ 10,260 $ 59 $ $ 29,329 Capital expenditures $ 12,663 $ 19,355 $ 106 $ $ 32,124 Total assets $ 1,613,277 $ 825,571 $ 623,151 $ $ 3,061,999 Six months ended May1, 2009 |
Subsequent Event
Subsequent Event | |
6 Months Ended
Apr. 30, 2010 | |
Subsequent Event [Abstract] | |
Subsequent Event | 14. Subsequent Event On May20, 2010, our Board of Directors declared a cash dividend of $0.175 per outstanding share of common stock. The dividend will be paid on June18, 2010 to all shareholders of record at the close of business on June4, 2010. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | |
6 Months Ended
Apr. 30, 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 do not expect a material impact from the adoption of ASU No.2009-17 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. We do not expect a material impact from the adoption of ASU No.2009-13 on our consolidated financial statements. 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 do not expect a material impact from the adoption of SFAS No.167 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 owne |
Subsidiary Guarantors
Subsidiary Guarantors | |
6 Months Ended
Apr. 30, 2010 | |
Subsidiary Guarantors [Abstract] | |
Subsidiary Guarantors | 16. Subsidiary Guarantors The following tables present condensed consolidated financial information as of and for the quarter ended April30, 2010 and May1, 2009 for: (a)the parent company; (b)on a combined basis, the guarantors of the Credit Agreement and Senior Notes issued in November2006, 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 April30, 2010 (In thousands) Parent Subsidiary Non-Guarantor Company Guarantors Subsidiaries Eliminations Consolidated Net sales $ $ 548,242 $ 542,053 $ (194,071 ) $ 896,224 Cost of sales 372,665 378,932 (160,825 ) 590,772 Product development, selling and administrative expenses 12,831 67,429 46,010 126,270 Other (income)expense 15,037 (16,395 ) (1,358 ) Operating income (loss) (12,831 ) 93,111 133,506 (33,246 ) 180,540 Intercompany items 11,213 (13,253 ) (14,791 ) 16,831 Interest income (expense) net (6,428 ) 699 1,399 (4,330 ) Reorganization items (545 ) (545 ) Income (loss)before income taxes and equity (8,591 ) 80,557 120,114 (16,415 ) 175,665 (Provision) benefit for income taxes 9,832 (50,004 ) (15,052 ) (55,224 ) Equity in income (loss)of subsidiaries 119,200 41,864 (161,064 ) Net income $ 120,441 $ 72,417 $ 105,062 $ (177,479 ) $ 120,441 Condensed Consolidating Statement of Income Quarter Ended May1, 2009 (In thousands) Parent Subsidiary Non-Guarantor Company Guarantors Subsidiaries Eliminations Consolidated Net sales $ $ 629,969 $ 588,455 $ (294,924 ) $ 923,500 Cost of sales 435,121 427,867 (234,781 ) 628,207 Product development, selling and administrative expenses 8,872 60,910 38,103 107,885 Other income 11,186 (11,843 ) (65 |