Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 31, 2015 | Aug. 25, 2015 | |
Document Information [Line Items] | ||
Entity Registrant Name | RAVEN INDUSTRIES INC | |
Entity Central Index Key | 82,166 | |
Current Fiscal Year End Date | --01-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jul. 31, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 37,303,276 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jul. 31, 2015 | Jan. 31, 2015 | Jul. 31, 2014 |
Current assets | |||
Cash and cash equivalents | $ 47,302 | $ 51,949 | $ 62,161 |
Short-term investments | 250 | 250 | 250 |
Accounts receivable, net | 39,889 | 56,576 | 52,453 |
Inventories | 54,066 | 55,152 | 51,256 |
Deferred income taxes | 3,539 | 3,958 | 3,406 |
Other current assets | 3,808 | 3,094 | 5,751 |
Total current assets | 148,854 | 170,979 | 175,277 |
Property, plant and equipment, net | 118,291 | 117,513 | 97,806 |
Goodwill | 52,198 | 52,148 | 25,420 |
Amortizable intangible assets, net | 17,148 | 18,490 | 9,514 |
Other assets, net | 4,139 | 3,743 | 3,858 |
TOTAL ASSETS | 340,630 | 362,873 | 311,875 |
Current liabilities | |||
Accounts payable | 6,958 | 11,545 | 9,483 |
Accrued liabilities | 14,049 | 19,187 | 15,276 |
Customer advances | 1,043 | 1,111 | 1,697 |
Total current liabilities | 22,050 | 31,843 | 26,456 |
Other liabilities | $ 24,244 | $ 25,793 | $ 21,138 |
Commitments and contingencies | |||
Shareholders' equity | |||
Common stock, $1 par value, authorized shares 100,000; issued 67,006; 66,947; and 65,376, respectively | $ 67,006 | $ 66,947 | $ 65,376 |
Paid-in capital | 53,909 | 53,237 | 13,505 |
Retained earnings | 243,310 | 244,180 | 240,971 |
Accumulated other comprehensive loss | (5,822) | (5,849) | (2,254) |
Treasury stock at cost, 29,447; 28,897; and 28,897 shares, respectively | (64,187) | (53,362) | (53,362) |
Total Raven Industries, Inc. shareholders' equity | 294,216 | 305,153 | 264,236 |
Noncontrolling interest | 120 | 84 | 45 |
Total shareholders' equity | 294,336 | 305,237 | 264,281 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 340,630 | $ 362,873 | $ 311,875 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) (Unaudited) - $ / shares | Jul. 31, 2015 | Jan. 31, 2015 | Jul. 31, 2014 |
Statement of Financial Position [Abstract] | |||
Common stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 67,006,000 | 66,947,000 | 65,376,000 |
Treasury stock, at cost (in shares) | 29,447,000 | 28,897,000 | 28,897,000 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 67,518 | $ 94,485 | $ 137,791 | $ 196,995 |
Cost of sales | 49,660 | 68,827 | 99,574 | 139,571 |
Gross profit | 17,858 | 25,658 | 38,217 | 57,424 |
Research and development expenses | 3,216 | 4,385 | 6,752 | 9,357 |
Selling, general, and administrative expenses | 8,213 | 10,577 | 17,822 | 20,839 |
Operating income | 6,429 | 10,696 | 13,643 | 27,228 |
Other (expense), net | (266) | (59) | (310) | (138) |
Income before income taxes | 6,163 | 10,637 | 13,333 | 27,090 |
Income taxes | 1,942 | 2,890 | 4,251 | 8,309 |
Net income | 4,221 | 7,747 | 9,082 | 18,781 |
Net income attributable to the noncontrolling interest | 30 | 28 | 36 | 24 |
Net income attributable to Raven Industries, Inc. | $ 4,191 | $ 7,719 | $ 9,046 | $ 18,757 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 0.11 | $ 0.21 | $ 0.24 | $ 0.51 |
Diluted (in dollars per share) | 0.11 | 0.21 | 0.24 | 0.51 |
Cash dividends paid per common share (in dollars per share) | $ 0.13 | $ 0.12 | $ 0.26 | $ 0.24 |
Comprehensive income: | ||||
Net income | $ 4,221 | $ 7,747 | $ 9,082 | $ 18,781 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation | (105) | (199) | (174) | (125) |
Postretirement benefits, net of income tax (expense) benefit of $(62), $12, $(33), and $26, respectively | 146 | 26 | 201 | 50 |
Other comprehensive income (loss), net of tax | 41 | (173) | 27 | (75) |
Comprehensive income | 4,262 | 7,574 | 9,109 | 18,706 |
Comprehensive income attributable to noncontrolling interest | 30 | 28 | 36 | 24 |
Comprehensive income attributable to Raven Industries, Inc. | $ 4,232 | $ 7,546 | $ 9,073 | $ 18,682 |
Consolidated Statements of Inc5
Consolidated Statements of Income and Comprehensive Income (Unaudited) (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Income Statement [Abstract] | ||||
Other comprehensive income, postretirement (expense) benefits, income tax benefit | $ (62) | $ 12 | $ (33) | $ 26 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | $1 Par Common Stock [Member] | Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Raven Industries, Inc. Equity [Member] | Non-controlling Interest [Member] |
Balance at beginning of period at Jan. 31, 2014 | $ 251,462 | $ 65,318 | $ 10,556 | $ (53,362) | $ 231,029 | $ (2,179) | $ 251,362 | $ 100 |
Treasury stock at beginning of period (in shares) at Jan. 31, 2014 | 28,897 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 18,781 | 18,757 | 18,757 | 24 | ||||
Other comprehensive income (loss): | ||||||||
Cumulative foreign currency translation adjustment | (125) | (125) | (125) | |||||
Postretirement benefits reclassified from accumulated other comprehensive income (loss) after tax benefit | 50 | 50 | 50 | |||||
Cash dividends | (8,747) | 68 | (8,815) | (8,747) | ||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (79) | 0 | 0 | 0 | 0 | (79) | ||
Director shares issued | 0 | 18 | (18) | 0 | ||||
Shares issued on stock options exercised, net of shares withheld for employee taxes | 458 | 40 | 418 | 458 | ||||
Share-based compensation | 2,428 | 0 | 2,428 | 2,428 | ||||
Income tax impact related to share-based compensation | 53 | 53 | 53 | |||||
Balance at end of period at Jul. 31, 2014 | $ 264,281 | 65,376 | 13,505 | $ (53,362) | 240,971 | (2,254) | 264,236 | 45 |
Treasury stock at end of period (in shares) at Jul. 31, 2014 | 28,897 | 28,897 | ||||||
Balance at beginning of period at Jan. 31, 2015 | $ 305,237 | 66,947 | 53,237 | $ (53,362) | 244,180 | (5,849) | 305,153 | 84 |
Treasury stock at beginning of period (in shares) at Jan. 31, 2015 | 28,897 | 28,897 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | $ 9,082 | 9,046 | 9,046 | 36 | ||||
Other comprehensive income (loss): | ||||||||
Cumulative foreign currency translation adjustment | (174) | (174) | (174) | |||||
Postretirement benefits reclassified from accumulated other comprehensive income (loss) after tax benefit | 201 | 201 | 201 | |||||
Cash dividends | (9,834) | 82 | (9,916) | (9,834) | ||||
Share issuance costs related to fiscal 2015 business combination | (15) | (15) | (15) | |||||
Shares issued on stock options exercised, net of shares withheld for employee taxes | (47) | 7 | (54) | (47) | ||||
Shares issued on vesting of stock units, net of shares withheld for employee taxes | (458) | 52 | (510) | (458) | ||||
Shares repurchased, value | (10,825) | $ (10,825) | (10,825) | |||||
Shares repurchased, Treasury Stock | 550 | |||||||
Share-based compensation | 1,436 | 0 | 1,436 | 1,436 | ||||
Income tax impact related to share-based compensation | (267) | (267) | (267) | |||||
Balance at end of period at Jul. 31, 2015 | $ 294,336 | $ 67,006 | $ 53,909 | $ (64,187) | $ 243,310 | $ (5,822) | $ 294,216 | $ 120 |
Treasury stock at end of period (in shares) at Jul. 31, 2015 | 29,447 | 29,447 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||
Common Stock, Dividends, Per Share, Declared | $ 0.260 | $ 0.130 |
Reclassification of postretirement tax benefit | $ (33) | $ 26 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
OPERATING ACTIVITIES: | ||
Net income | $ 9,082 | $ 18,781 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 8,782 | 8,373 |
Change in fair value of acquisition-related contingent consideration | 405 | 363 |
Loss from equity investment | 73 | 57 |
Deferred income taxes | (1,301) | (1,769) |
Share-based compensation expense | 1,436 | 2,428 |
Change in operating assets and liabilities: | ||
Accounts receivable | 15,824 | 4,383 |
Inventories | (559) | 3,967 |
Other assets | (714) | (1,689) |
Operating liabilities | (9,090) | (3,863) |
Other operating activities, net | (237) | 7 |
Net cash provided by operating activities | 23,701 | 31,038 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (7,333) | (7,297) |
Proceeds (payments) related to business acquisitions | 351 | (4,711) |
Proceeds from sale of assets | 1,542 | 0 |
Other investing activities, net | (391) | (432) |
Net cash used in investing activities | (5,831) | (12,440) |
FINANCING ACTIVITIES: | ||
Dividends paid | (9,834) | (8,826) |
Payments for common shares repurchased | (10,825) | 0 |
Payments of acquisition-related debt | 0 | (638) |
Payments of acquisition-related contingent liability | (735) | (454) |
Debt issuance costs paid | (548) | 0 |
Restricted stock units vested and issued | (458) | 0 |
Employee stock option exercises net of tax benefit | (85) | 511 |
Other financing activities, net | (15) | 0 |
Net cash used in financing activities | (22,500) | (9,407) |
Effect of exchange rate changes on cash | (17) | (17) |
Net (decrease) increase in cash and cash equivalents | (4,647) | 9,174 |
Cash and cash equivalents at beginning of year | 51,949 | 52,987 |
Cash and cash equivalents at end of period | $ 47,302 | $ 62,161 |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 6 Months Ended |
Jul. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION Raven Industries, Inc. (the Company or Raven) is a diversified technology company providing a variety of products to customers within the industrial, agricultural, energy, construction, and military/aerospace markets. The Company is comprised of three unique operating units, or divisions, classified into reportable segments: Applied Technology, Engineered Films, and Aerostar. The accompanying unaudited consolidated financial information, which includes the accounts of Raven and its wholly-owned or controlled subsidiaries, net of intercompany balances and transactions which have been eliminated, has been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (SEC). Accordingly, it does not include all of the information and notes required by GAAP for complete financial statements. This financial information should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2015 . In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of this financial information have been included. Financial results for the interim six -month period ended July 31, 2015 are not necessarily indicative of the results that may be expected for the year ending January 31, 2016 . The January 31, 2015 consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by GAAP. Preparing financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Noncontrolling interests represent capital contributions, income and loss attributable to the owners of less than wholly-owned consolidated entities. The Company owns a 75% interest in an entity consolidated under the Aerostar business segment. Given the Company's majority ownership interest, the accounts of the business venture have been consolidated with the accounts of the Company, and a noncontrolling interest has been recorded for the noncontrolling investor interests in the net assets and operations of the business venture. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company prospectively adopted the straight-line method of depreciation for manufacturing equipment, office equipment, and furniture and fixtures placed in service on or after February 1, 2015. This change was made as a straight-line method of depreciation more accurately reflects the economic consumption of these assets than did the accelerated method previously used. This prospective change in the depreciation method did not have a material effect on the Company’s financial position or results of operations for the three- or six-month periods ended July 31, 2015. As described in Note 1 Summary of Significant Accounting Policies of the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2015, the Company recognizes goodwill as the excess cost of an acquired business over the net amount assigned to assets acquired and liabilities assumed. Management assesses goodwill for impairment annually during the fourth quarter and between annual tests whenever a triggering event indicates there may be an impairment. Impairment tests of goodwill are done at the reporting unit level. When performing goodwill impairment testing, the fair values of reporting units are determined based on valuation techniques using the best available information, primarily discounted cash flow projections. Such valuations are derived from valuation techniques in which one or more significant inputs are not observable (Level 3 fair value measures). As a result of changes in market conditions indicating that goodwill might be impaired, the Company performed a Step 1 impairment analysis using fair value techniques on the Engineered Films reporting unit as of July 31, 2015. The reporting unit's fair value was estimated based on discounted cash flows and that fair value amount was compared to the carrying value of the reporting unit. This analysis indicated that the estimated fair value of the Engineered Films reporting unit exceeded the net book value by approximately $50,700 or 37.2% and that the Step 1 test was passed at July 31, 2015. No impairments were recorded in the three- and six-months periods ended July 31, 2015 or 2014. There have been no material changes to the Company's significant accounting policies as described in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2015 . |
Accounting Changes, Change in Depreciation Method [Text Block] | The Company prospectively adopted the straight-line method of depreciation for manufacturing equipment, office equipment, and furniture and fixtures placed in service on or after February 1, 2015. This change was made as a straight-line method of depreciation more accurately reflects the economic consumption of these assets than did the accelerated method previously used. This prospective change in the depreciation method did not have a material effect on the Company’s financial position or results of operations for the three- or six-month periods ended July 31, 2015. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | As described in Note 1 Summary of Significant Accounting Policies of the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2015, the Company recognizes goodwill as the excess cost of an acquired business over the net amount assigned to assets acquired and liabilities assumed. Management assesses goodwill for impairment annually during the fourth quarter and between annual tests whenever a triggering event indicates there may be an impairment. Impairment tests of goodwill are done at the reporting unit level. When performing goodwill impairment testing, the fair values of reporting units are determined based on valuation techniques using the best available information, primarily discounted cash flow projections. Such valuations are derived from valuation techniques in which one or more significant inputs are not observable (Level 3 fair value measures). As a result of changes in market conditions indicating that goodwill might be impaired, the Company performed a Step 1 impairment analysis using fair value techniques on the Engineered Films reporting unit as of July 31, 2015. The reporting unit's fair value was estimated based on discounted cash flows and that fair value amount was compared to the carrying value of the reporting unit. This analysis indicated that the estimated fair value of the Engineered Films reporting unit exceeded the net book value by approximately $50,700 or 37.2% and that the Step 1 test was passed at July 31, 2015. No impairments were recorded in the three- and six-months periods ended July 31, 2015 or 2014. |
Net Income per Share
Net Income per Share | 6 Months Ended |
Jul. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Income per Share | NET INCOME PER SHARE Basic net income per share is computed by dividing net income by the weighted average common shares and stock units outstanding. Diluted net income per share is computed by dividing net income by the weighted average common and common equivalent shares outstanding which includes the shares issuable upon exercise of employee stock options (net of shares assumed purchased with the option proceeds), stock units, and restricted stock units outstanding. Performance share awards are included in the diluted calculation based upon what would be issued if the end of the most recent reporting period was the end of the term of the award. Certain outstanding options and restricted stock units were excluded from the diluted net income per-share calculations because their effect would have been anti-dilutive under the treasury stock method. The options and restricted stock units excluded from the diluted net income per-share share calculation were as follows: Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, Anti-dilutive options and restricted stock units 1,207,761 623,658 1,156,704 502,950 The computation of earnings per share is presented below: Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, Numerator: Net income attributable to Raven Industries, Inc. $ 4,191 $ 7,719 $ 9,046 $ 18,757 Denominator: Weighted average common shares outstanding 37,659,107 36,462,600 37,829,941 36,444,153 Weighted average stock units outstanding 91,831 68,414 80,661 70,063 Denominator for basic calculation 37,750,938 36,531,014 37,910,602 36,514,216 Weighted average common shares outstanding 37,659,107 36,462,600 37,829,941 36,444,153 Weighted average stock units outstanding 91,831 68,414 80,661 70,063 Dilutive impact of stock options and restricted stock units 76,662 203,703 80,688 213,502 Denominator for diluted calculation 37,827,600 36,734,717 37,991,290 36,727,718 Net income per share - basic $ 0.11 $ 0.21 $ 0.24 $ 0.51 Net income per share - diluted $ 0.11 $ 0.21 $ 0.24 $ 0.51 |
Selected Balance Sheet Informat
Selected Balance Sheet Information | 6 Months Ended |
Jul. 31, 2015 | |
Selected Balance Sheet Information [Abstract] | |
Selected Balance Sheet Information | SELECTED BALANCE SHEET INFORMATION Following are the components of selected items from the Consolidated Balance Sheets: July 31, 2015 January 31, 2015 July 31, 2014 Accounts receivable, net: Trade accounts $ 40,370 $ 56,895 $ 52,797 Allowance for doubtful accounts (481 ) (319 ) (344 ) $ 39,889 $ 56,576 $ 52,453 Inventories: Finished goods $ 6,657 $ 8,127 $ 7,098 In process 3,957 1,317 1,694 Materials 43,452 45,708 42,464 $ 54,066 $ 55,152 $ 51,256 Other current assets: Insurance policy benefit $ 637 $ 733 $ 876 Federal tax receivable — 713 1,826 Receivable from sale of business 830 — — Prepaid expenses and other 2,341 1,648 3,049 $ 3,808 $ 3,094 $ 5,751 Property, plant and equipment, net: Held for use: Land $ 2,921 $ 3,246 $ 2,077 Buildings and improvements 76,697 78,140 68,439 Machinery and equipment 136,666 131,766 118,833 Accumulated depreciation (99,346 ) (96,545 ) (91,543 ) $ 116,938 $ 116,607 $ 97,806 Held for sale: Land $ 324 $ 11 $ — Buildings and improvements 2,597 1,522 — Machinery and equipment 639 — — Accumulated depreciation (2,207 ) (627 ) — 1,353 906 — $ 118,291 $ 117,513 $ 97,806 Other assets, net: Investment in affiliate $ 2,896 $ 3,217 $ 3,380 Other, net 1,243 526 478 $ 4,139 $ 3,743 $ 3,858 Accrued liabilities: Salaries and related $ 2,031 $ 4,063 $ 2,115 Benefits 4,315 5,001 5,261 Insurance obligations 1,702 1,590 1,443 Warranties 1,752 3,120 2,617 Income taxes 1,108 536 133 Other taxes 1,031 1,240 983 Acquisition-related contingent consideration 1,028 1,375 919 Other 1,082 2,262 1,805 $ 14,049 $ 19,187 $ 15,276 Other liabilities: Postretirement benefits $ 12,151 $ 11,812 $ 8,166 Acquisition-related contingent consideration 3,049 3,631 3,682 Deferred income taxes 5,764 7,091 2,172 Uncertain tax positions 3,280 3,259 7,118 $ 24,244 $ 25,793 $ 21,138 |
Acquisitions of and Investments
Acquisitions of and Investments in Businesses and Technologies | 6 Months Ended |
Jul. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions of and Investments in Businesses and Technologies | ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES AND TECHNOLOGIES Integra Related to the fourth quarter fiscal 2015 acquisition of Integra Plastics, Inc. (Integra), the Company received $351 in settlement of the working capital adjustment to the purchase price and finalized deferred tax calculations in fiscal 2016 first quarter. These transactions resulted in an adjustment of about $20 to the purchase price allocation. As of as July 31, 2015 , the purchase price valuation was $48,262 with fair value of goodwill of $27,422 . None of this goodwill is tax deductible. Acquisition-related contingent consideration The Company has contingent liabilities related to prior year acquisitions of SBG Innovatie BV and its affiliate, Navtronics BVBA (collectively, SBG) in May 2014 and Vista in 2012 . In connection with the acquisition of SBG, Raven is committed to making additional earn-out payments, not to exceed $2,500 , calculated and paid quarterly for ten years after the purchase date contingent upon achieving certain revenues. At July 31, 2015 , the fair value of this contingent consideration was $1,325 , of which $310 was classified as "Accrued liabilities" and $1,015 was classified as "Other liabilities" in the Consolidated Balance Sheets. At July 31, 2014 , the fair value of this contingent consideration was $1,661 , of which $152 was classified as "Accrued liabilities" and $1,509 as "Other liabilities." The Company paid $121 and $150 in earn-out payments in the three- and six -month periods ended July 31, 2015 . There were no earn-out payments in the three- or six-month periods ended July 31, 2014. Related to the acquisition of Vista Research, Inc. (Vista) in 2012 , the Company is committed to making annual payments based upon earn-out percentages on specific revenue streams for seven years after the purchase date, not to exceed $15,000 . The fair value of this contingent consideration is estimated using forecasted discounted cash flows. At July 31, 2015 the fair value of this contingent consideration was $2,720 , of which $686 was classified in "Accrued liabilities" and $2,034 as "Other liabilities" in the Consolidated Balance Sheets. At July 31, 2014 the fair value of this contingent consideration was $2,745 , of which $569 was classified as "Accrued liabilities" and $2,176 as "Other liabilities" in the Consolidated Balance Sheets. The Company paid $585 and $454 in the six-month periods ended July 31, 2015 and 2014 , respectively. The Company made no earn-out payments in the three-month periods ended July 31, 2015 or 2014, respectively. |
Employee Postretirement Benefit
Employee Postretirement Benefits | 6 Months Ended |
Jul. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Postretirement Benefits (Text Block) | EMPLOYEE POSTRETIREMENT BENEFITS The Company provides postretirement medical and other benefits to senior executive officers and senior managers. These plan obligations are unfunded. The components of net periodic benefit cost for postretirement benefits are as follows: Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, Service cost $ 108 $ 49 $ 216 $ 98 Interest cost 105 92 210 183 Amortization of actuarial losses 84 38 168 76 Net periodic benefit cost $ 297 $ 179 $ 594 $ 357 Postretirement benefit cost components are reclassified in their entirety from accumulated other comprehensive loss to net periodic benefit cost. Net periodic benefit costs are reported in net income as “Cost of sales” or “Selling, general, and administrative expenses” in a manner consistent with the classification of direct labor and personnel costs of the eligible employees. |
Warranties
Warranties | 6 Months Ended |
Jul. 31, 2015 | |
Product Warranties Disclosures [Abstract] | |
Warranties | WARRANTIES Accruals necessary for product warranties are estimated based on historical warranty costs and average time elapsed between purchases and returns for each division. Additional accruals are made for any significant, discrete warranty issues. Changes in the warranty accrual were as follows: Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, Beginning balance $ 2,285 $ 2,654 $ 3,120 $ 2,525 Accrual for warranties 389 648 748 1,389 Settlements made (922 ) (685 ) (2,116 ) (1,297 ) Ending balance $ 1,752 $ 2,617 $ 1,752 $ 2,617 |
Financing Arrangements Financin
Financing Arrangements Financing Arrangements | 6 Months Ended |
Jul. 31, 2015 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | FINANCING ARRANGEMENTS On April 15, 2015 the Company's uncollateralized credit agreement with Wells Fargo Bank, N.A. (Wells Fargo) providing a line of credit of $10,500 and maturing on November 30, 2016 was terminated upon the Company's entering into a new credit facility. This new credit facility, the Credit Agreement dated as of April 15, 2015 among Raven Industries, Inc., JPMorgan Chase Bank, N.A., Toronto Branch as Canadian Administrative Agent, JPMorgan Chase Bank, National Association, as administrative agent, and each lender from time to time party thereto (the Credit Agreement), provides for a syndicated senior revolving credit facility up to $125,000 with a maturity date of April 15, 2020 . Debt issuance costs associated with this Credit Agreement were $549 as of July 31, 2015 . Loans or borrowings defined under the Credit Agreement bear interest and fees at varying rates and terms defined in the Credit Agreement based on the type of borrowing as defined. The Credit Agreement contains customary affirmative and negative covenants, including those relating to financial reporting and notification, limits on levels of indebtedness and liens, investments, mergers and acquisitions, affiliate transactions, sales of assets, restrictive agreements, and change in control as defined in the Credit Agreement. Financial covenants include an interest coverage ratio and funded indebtedness to earnings before interest, taxes, depreciation, and amortization as defined in the Credit Agreement. $125,000 was available under the Credit Agreement for borrowings as of July 31, 2015 . The loan proceeds may be utilized by Raven for strategic business purposes and for working capital needs. Simultaneous with execution of the Credit Agreement, Raven, Aerostar, Vista, and Integra entered into a guaranty agreement in favor of JPMorgan Chase Bank National Association in its capacity as administrator under the Credit Agreement for the benefit of JPMorgan Chase Bank N.A., Toronto Branch and the lenders and their affiliates under the Credit Agreement. Letters of credit totaling $ 850 , issued under the previous line of credit with Wells Fargo primarily to support self-insured workers' compensation bonding requirements, remain in place. The Company is in the process of moving these outstanding letters of credit under the new credit facility. Until such time as that is complete, any draws required under these letters of credit would be settled with available cash or borrowings under the Credit Agreement. There were no borrowings under either credit agreement for any of the fiscal periods covered by this Quarterly Report on Form 10-Q. |
Income Tax Income Tax Disclosur
Income Tax Income Tax Disclosure | 6 Months Ended |
Jul. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | INCOME TAXES The Company’s effective tax rate varies from the federal statutory rate primarily due to state and local taxes and tax benefits on qualified production activities. The Company’s tax rates for the three-month periods ended July 31, 2015 and 2014 were 31.5% and 27.2% , respectively. The Company’s tax rates for the six -month periods ended July 31, 2015 and 2014 were 31.9% and 30.7% , respectively. The fiscal 2015 rates include the impact of recognition of a $709 research and development tax credit in the fiscal second quarter based upon a tax study undertaken for fiscal years 2011 through 2014. As of July 31, 2015, undistributed earnings of approximately $2,000 of the Canadian subsidiary were considered to have been reinvested indefinitely and, accordingly, the Company has not provided United States income taxes on such earnings. This estimated tax liability would be approximately $310 net of foreign tax credits. |
Restructuring Costs Restructuri
Restructuring Costs Restructuring Costs Disclosure | 6 Months Ended |
Jul. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | RESTRUCTURING COSTS On March 10, 2015 the Company announced and implemented a restructuring plan to further lower its cost structure. The cost reductions covered all divisions and included the corporate offices, but were heavily weighted to Applied Technology as a result of the significant decline in this business and the expectation of continued end-market weakness for this division. This action was taken in addition to a preemptive restructuring of the Engineered Films Division taken in the fourth quarter of fiscal 2015 to address the expected decline in demand in the energy sector as the result of falling oil prices, as well as the Applied Technology restructuring announced in November 2014. The Company incurred restructuring costs for severance benefits of $111 and $588 , respectively, in the three- and six-month periods ended July 31, 2015 . There were no unpaid costs at July 31, 2015 . The Company reported $407 of this expense in cost of sales and the remaining $181 in selling, general, and administrative expenses in the Consolidated Statements of Income and Comprehensive Income. Substantially all of these restructuring costs related to the Applied Technology Division. The Company incurred no restructuring costs in the three- or six-month periods ended July 31, 2014 . Subsequent to the end of fiscal 2015, the Company announced that Applied Technology's remaining contract manufacturing operations in the St. Louis, Missouri area had been successfully sold and transferred. The exit activities related to this sale and transfer were substantially completed during the first quarter. There were no impairments recorded as a result of the exit activity and gains of $247 and $611 were recorded in the three- and six-month periods ended July 31, 2015 . Receivables for inventory and estimated future royalties pursuant to the sale agreements were $827 and were reflected in "Other current assets" in the Consolidated Balance Sheet at July 31, 2015 . |
Dividends and Treasury Stock
Dividends and Treasury Stock | 6 Months Ended |
Jul. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Dividends and Treasury Stock | DIVIDENDS AND TREASURY STOCK Dividends paid to Raven shareholders for the three and six months ended July 31, 2015 were $4,894 and $9,834 , or 13.0 cents and 26.0 cents per share, respectively. Dividends paid to Raven shareholders for the three and six months ended July 31, 2014 were $4,376 and $8,747 , or 12.0 cents and 24.0 cents per share, respectively. On November 30, 2014 the Company announced that its Board of Directors had authorized a $40,000 stock buyback program. The remaining dollar value that may be purchased under the plan at July 31, 2015 is $29,175 . |
Share Based Compensation
Share Based Compensation | 6 Months Ended |
Jul. 31, 2015 | |
Share-based Compensation [Abstract] | |
Share Based Compensation | SHARE-BASED COMPENSATION The Company reserves shares for issuance pursuant to the Amended and Restated 2010 Stock Incentive Plan effective March 23, 2012, administered by the Personnel and Compensation Committee of the Board of Directors. Two types of awards, stock options and restricted stock units, were granted during the six months ended July 31, 2015 and July 31, 2014 . Stock Option Awards The Company granted 9,400 and 289,600 non-qualified stock options during the three- and six -month periods ended July 31, 2015 , respectively. The Company granted 194,900 non-qualified stock options during the six -month period ended July 31, 2014 . None of these options were granted during the three-months ended July 31, 2014. Options are granted with exercise prices not less than the market value of the Company's common stock at the date of grant. The stock options vest over a four -year period and expire after five years. Options contain retirement and change-in-control provisions that may accelerate the vesting period. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. The Company uses historical data to estimate option exercises and employee terminations within this valuation model. The weighted average assumptions used for the Black-Scholes option pricing model by grant year are as follows: Six Months Ended July 31, 2015 July 31, 2014 Risk-free interest rate 1.33 % 1.32 % Expected dividend yield 2.59 % 1.53 % Expected volatility factor 36.81 % 38.65 % Expected option term (in years) 3.75 4.00 Weighted average grant date fair value $4.77 $9.18 Restricted Stock Unit Awards (RSUs) The Company granted 19,250 and 19,040 time-vested RSUs to employees in the six -month periods ended July 31, 2015 and 2014 , respectively. None of these awards were granted during the three-month periods ended July 31, 2015 or July 31, 2014. The fair value of a time-vested RSU is measured based upon the closing market price of the Company's common stock on the day prior to the date of grant. The grant date fair value per share of the time-vested RSUs granted during the six months ended July 31, 2015 and 2014 was $20.10 and $ 32.75 , respectively. Time-vested RSUs will vest if, at the end of the three -year period, the employee remains employed by the Company. RSUs contain retirement and change-in-control provisions that may accelerate the vesting period. Dividends are cumulatively earned on the time-vested RSUs over the vesting period. The Company also granted performance-based RSUs in the six -month periods ended July 31, 2015 . The exact number of performance shares to be issued will vary from 0% to 150% of the target award, depending on the Company's actual performance over the three-year period in comparison to the target award. The target award for the fiscal 2016 and 2015 grants are based on return on equity (ROE), which is defined as net income divided by the average of beginning and ending shareholders' equity. The performance-based RSUs will vest if, at the end of the three -year performance period, the Company has achieved certain performance goals and the employee remains employed by the Company. RSUs contain retirement and change-in-control provisions that may accelerate the vesting period. Dividends are cumulatively earned on performance-based RSUs over the vesting period. The number of RSUs that will vest is determined by an estimated ROE target over the three -year performance period. The estimated ROE performance factors used to estimate the number of restricted stock units expected to vest are evaluated at least quarterly. The number of restricted stock units issued at the vesting date will be based on actual results. The fair value of the performance-based restricted stock units is based upon the closing market price of the Company's common stock on the day prior to the grant date. The number of performance-based RSUs granted is based on 100% of the target award. During the six -month periods ended July 31, 2015 and 2014 , the Company granted 68,570 and 54,490 performance-based RSUs, respectively. 2,240 performance-based RSUs were granted in the three-month period ended July 31, 2015 but none were granted in the three-month period ended July 31, 2014. The weighted average grant date fair value per share of these performance-based RSUs was $20.10 and $ 32.75 , respectively. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jul. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING The Company's reportable segments are defined by their product lines which have been grouped in these segments based on common technologies, production methods, and inventories. Raven's reportable segments are Applied Technology Division, Engineered Films Division, and Aerostar Division. The Company measures the performance of its segments based on their operating income excluding administrative and general expenses. Other expense and income taxes are not allocated to individual operating segments, and assets not identifiable to an individual segment are included as corporate assets. Segment information is reported consistent with the Company's management reporting structure. Business segment net sales and operating income results are as follows: Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, Net sales Applied Technology Division $ 20,411 $ 36,247 $ 52,821 $ 82,535 Engineered Films Division 35,789 42,299 67,110 84,506 Aerostar Division 11,328 19,257 17,882 36,922 Intersegment eliminations (a) (10 ) (3,318 ) (22 ) (6,968 ) Consolidated net sales $ 67,518 $ 94,485 $ 137,791 $ 196,995 Operating income Applied Technology Division (b) $ 4,041 $ 8,829 $ 12,782 $ 24,685 Engineered Films Division 5,365 5,816 9,836 11,679 Aerostar Division (c) 1,314 1,628 461 1,639 Intersegment eliminations (a) 25 (82 ) 84 (20 ) Total reportable segment income 10,745 16,191 23,163 37,983 Administrative and general expenses (4,316 ) (5,495 ) (9,520 ) (10,755 ) Consolidated operating income $ 6,429 $ 10,696 $ 13,643 $ 27,228 (a) Fiscal 2016 intersegment sales were primarily sales from Engineered Films to Aerostar. Fiscal 2015 intersegment sales were comprised primarily of contract manufacturing sales from Aerostar to Applied Technology. (b) Includes gains of $247 and $611 for the three- and six-month periods ended July 31, 2015, respectively, on disposal of assets related to the exit of contract manufacturing operations. (c) Includes $(70) loss for both the three- and six-month periods ended July 31, 2015 on disposal of an idle manufacturing plant held for sale. |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Event | 6 Months Ended |
Jul. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENT On August 25, 2015 the Personnel and Compensation Committee of the Company’s Board of Directors approved changes to the Company’s postretirement benefit plan that provides medical and certain other benefits. Under the amendment, certain current senior executives became ineligible for plan benefits. These changes to the plan constitute a curtailment and will be accounted for as such based on a remeasurement of the expected benefit obligation. The remeasurement will be undertaken in the fiscal 2016 third quarter to determine the impact of the plan changes on the Company’s consolidated financial position and results of operations. Such changes are expected to reduce net periodic benefit costs for the current fiscal year by approximately $165 . |
Contingencies Contingencies Dis
Contingencies Contingencies Disclosure | 6 Months Ended |
Jul. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | CONTINGENCIES In the normal course of business, the Company is subject to various claims and litigation. The Company has concluded that ultimate outcome of these matters is not expected to be significant to the Company’s results of operations, financial position or cash flows. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies New Accounting Standards | 6 Months Ended |
Jul. 31, 2015 | |
New Accounting Pronouncement [Abstract] | |
New Accounting Standards adopted and pending adoptionn [Text Block] | NEW ACCOUNTING STANDARDS Accounting Standards Adopted In April 2015 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-04, "Compensation—Retirement Benefits (Topic 715) Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets" (ASU 2015-04). The amendments in ASU 2015-04 allow a reporting entity that may incur more costs than other entities when measuring the fair value of plan assets of a defined benefit pension or other postretirement benefit plan at other than a month-end to measure defined benefit plan assets and obligations using the month-end date that is closest to the date of event (such as a plan amendment, settlement, or curtailment that calls for a remeasurement in accordance with existing requirements) that is triggering the remeasurement. In addition, if a contribution or significant event occurs between the month-end date used to measure defined benefit plan assets and obligations and an entity’s fiscal year-end, the entity should adjust the measurement of defined benefit plan assets and obligations to reflect the effects of those contributions or significant events. However, an entity should not adjust the measurement of defined benefit plan assets and obligations for other events that occur between the month-end measurement and the entity’s fiscal year-end that are not caused by the entity (for example, changes in market prices or interest rates). This practical expedient for the measurement date also applies to significant events that trigger a remeasurement in an interim period. An entity electing the practical expedient for the measurement date is required to disclose the accounting policy election and the date used to measure defined benefit plan assets and obligations in accordance with the amendments in ASU 2015-04. ASU 2015-04 is effective for fiscal years beginning after December 15, 2015. The Company may adopt the standard prospectively. Early adoption is permitted. In the fiscal 2016 first quarter the Company elected to early adopt ASU 2015-04 and apply it on a prospective basis. The Company's Plan that provides postretirement medical and other benefits, further described in Note 6 Employee Postretirement Benefits , did not have an event occur that would trigger a remeasurement in the period of adoption; therefore, the early adoption of this guidance in fiscal 2016 first quarter did not have any impact on the Company's consolidated financial statements or results of operations for the period. In April 2015 the FASB issued ASU No. 2015-03, "Interest—Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs" (ASU 2015-03). The amendments in ASU 2015-03 simplify the presentation of debt issuance costs and require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015. The amendments are required to be applied retrospectively to all prior periods presented and early adoption is permitted. The Company elected to early adopt ASU 2015-03 in fiscal 2016 first quarter. Adoption of this guidance did not have a significant impact on the Company's consolidated financial statements, or results of operations for the period since there were no prior period costs it applied to. Debt issuance costs associated with a credit facility discussed further in Note 8 Financing Arrangements have been presented as prescribed by ASU 2015-03. In April 2014 the FASB issued ASU No. 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" (ASU No. 2014-08). ASU No. 2014-08 changes the criteria for determining which disposals should be presented as discontinued operations and modifies the related disclosure requirements. Additionally, this guidance requires that a business that qualifies as held for sale upon acquisition should be reported as discontinued operations. This guidance became effective for the Company on February 1, 2015 and applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The adoption of this guidance did not have an impact on the Company's consolidated financial statements, results of operations, or disclosures for the period. In addition to the accounting pronouncements adopted and described above, the Company adopted various other accounting pronouncements that became effective in first and second quarter fiscal 2016. None of this guidance had a significant impact on the Company's consolidated financial statements, results of operations, or disclosures for the period. New Accounting Standards not yet adopted In July 2015 the FASB issued ASU No. 2015-11, "Inventory (Topic 330) Simplifying the Measurement of Inventory" (ASU 2015-11). The amendments in ASU 2015-11 clarifies an entity should measure inventory within the scope of this update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Substantial and unusual losses that result from subsequent measurement of inventory should be disclosed in the financial statements. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments are to be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial statements, results of operations, and disclosures. In April 2015 the Financial Accounting Standards Board FASB issued ASU No. 2015-05, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement" (ASU 2015-05). The amendments in ASU 2015-05 clarify existing GAAP guidance about a customer’s accounting for fees paid in a cloud computing arrangement with or without a software license. Examples of cloud computing arrangements include software as a service, platform as a service, infrastructure as a service, and other similar hosting arrangements. ASU 2015-05 adds guidance to Subtopic 350-40, Intangibles—Goodwill and Other—Internal-Use Software, which will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance does not change GAAP for a customer’s accounting for service contracts. All software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. ASU 2015-05 is effective for fiscal years beginning after December 15, 2015. The amendments maybe applied prospectively to all arrangements entered into or materially altered after the effective date or retrospectively to all prior periods presented. Early adoption is permitted. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial position, results of operations, and cash flows. In February 2015 the FASB issued ASU No. 2015-02, “Consolidation (Topic 810) Amendments to the Consolidation Analysis" (ASU 2015-02). The amendments in ASU 2015-02 affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: 1. Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; 2. Eliminate the presumption that a general partner should consolidate a limited partnership; 3. Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and 4. Provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940. ASU 2015-02 is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. ASU 2015-02 may be applied retrospectively or using a modified retrospective approach. The Company is evaluating the impact of this guidance on its consolidated legal entities and on its consolidated financial position, results of operations, and cash flows. In May 2014 the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09). ASU 2014-09 provides a comprehensive new recognition model that requires recognition of revenue when a company transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to receive in exchange for those goods or services. This guidance supersedes the revenue recognition requirements in FASB ASC Topic 605, “Revenue Recognition,” and most industry-specific guidance. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, companies will need to use more judgment and make more estimates than under the current guidance. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In July 2015, the FASB approved a one-year deferral of the effective date and the standard is now effective for the Company for fiscal 2019 and interim periods therein. ASU 2014-09 may be adopted as of the original effective date, which for the Company is fiscal 2018. The guidance may be applied using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently evaluating the method and date of adoption and the impact the adoption of ASU 2014-09 will have on the Company’s consolidated financial position, results of operations, and disclosures. |
Accounting Standards Adopted or Early Adoopted | Accounting Standards Adopted In April 2015 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-04, "Compensation—Retirement Benefits (Topic 715) Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets" (ASU 2015-04). The amendments in ASU 2015-04 allow a reporting entity that may incur more costs than other entities when measuring the fair value of plan assets of a defined benefit pension or other postretirement benefit plan at other than a month-end to measure defined benefit plan assets and obligations using the month-end date that is closest to the date of event (such as a plan amendment, settlement, or curtailment that calls for a remeasurement in accordance with existing requirements) that is triggering the remeasurement. In addition, if a contribution or significant event occurs between the month-end date used to measure defined benefit plan assets and obligations and an entity’s fiscal year-end, the entity should adjust the measurement of defined benefit plan assets and obligations to reflect the effects of those contributions or significant events. However, an entity should not adjust the measurement of defined benefit plan assets and obligations for other events that occur between the month-end measurement and the entity’s fiscal year-end that are not caused by the entity (for example, changes in market prices or interest rates). This practical expedient for the measurement date also applies to significant events that trigger a remeasurement in an interim period. An entity electing the practical expedient for the measurement date is required to disclose the accounting policy election and the date used to measure defined benefit plan assets and obligations in accordance with the amendments in ASU 2015-04. ASU 2015-04 is effective for fiscal years beginning after December 15, 2015. The Company may adopt the standard prospectively. Early adoption is permitted. In the fiscal 2016 first quarter the Company elected to early adopt ASU 2015-04 and apply it on a prospective basis. The Company's Plan that provides postretirement medical and other benefits, further described in Note 6 Employee Postretirement Benefits , did not have an event occur that would trigger a remeasurement in the period of adoption; therefore, the early adoption of this guidance in fiscal 2016 first quarter did not have any impact on the Company's consolidated financial statements or results of operations for the period. In April 2015 the FASB issued ASU No. 2015-03, "Interest—Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs" (ASU 2015-03). The amendments in ASU 2015-03 simplify the presentation of debt issuance costs and require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015. The amendments are required to be applied retrospectively to all prior periods presented and early adoption is permitted. The Company elected to early adopt ASU 2015-03 in fiscal 2016 first quarter. Adoption of this guidance did not have a significant impact on the Company's consolidated financial statements, or results of operations for the period since there were no prior period costs it applied to. Debt issuance costs associated with a credit facility discussed further in Note 8 Financing Arrangements have been presented as prescribed by ASU 2015-03. In April 2014 the FASB issued ASU No. 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" (ASU No. 2014-08). ASU No. 2014-08 changes the criteria for determining which disposals should be presented as discontinued operations and modifies the related disclosure requirements. Additionally, this guidance requires that a business that qualifies as held for sale upon acquisition should be reported as discontinued operations. This guidance became effective for the Company on February 1, 2015 and applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The adoption of this guidance did not have an impact on the Company's consolidated financial statements, results of operations, or disclosures for the period. In addition to the accounting pronouncements adopted and described above, the Company adopted various other accounting pronouncements that became effective in first and second quarter fiscal 2016. None of this guidance had a significant impact on the Company's consolidated financial statements, results of operations, or disclosures for the period. |
Pending Accounting Standards, not yet adopted | In July 2015 the FASB issued ASU No. 2015-11, "Inventory (Topic 330) Simplifying the Measurement of Inventory" (ASU 2015-11). The amendments in ASU 2015-11 clarifies an entity should measure inventory within the scope of this update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Substantial and unusual losses that result from subsequent measurement of inventory should be disclosed in the financial statements. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments are to be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial statements, results of operations, and disclosures. In April 2015 the Financial Accounting Standards Board FASB issued ASU No. 2015-05, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement" (ASU 2015-05). The amendments in ASU 2015-05 clarify existing GAAP guidance about a customer’s accounting for fees paid in a cloud computing arrangement with or without a software license. Examples of cloud computing arrangements include software as a service, platform as a service, infrastructure as a service, and other similar hosting arrangements. ASU 2015-05 adds guidance to Subtopic 350-40, Intangibles—Goodwill and Other—Internal-Use Software, which will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance does not change GAAP for a customer’s accounting for service contracts. All software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. ASU 2015-05 is effective for fiscal years beginning after December 15, 2015. The amendments maybe applied prospectively to all arrangements entered into or materially altered after the effective date or retrospectively to all prior periods presented. Early adoption is permitted. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial position, results of operations, and cash flows. In February 2015 the FASB issued ASU No. 2015-02, “Consolidation (Topic 810) Amendments to the Consolidation Analysis" (ASU 2015-02). The amendments in ASU 2015-02 affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: 1. Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; 2. Eliminate the presumption that a general partner should consolidate a limited partnership; 3. Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and 4. Provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940. ASU 2015-02 is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. ASU 2015-02 may be applied retrospectively or using a modified retrospective approach. The Company is evaluating the impact of this guidance on its consolidated legal entities and on its consolidated financial position, results of operations, and cash flows. In May 2014 the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (ASU 2014-09). ASU 2014-09 provides a comprehensive new recognition model that requires recognition of revenue when a company transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to receive in exchange for those goods or services. This guidance supersedes the revenue recognition requirements in FASB ASC Topic 605, “Revenue Recognition,” and most industry-specific guidance. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, companies will need to use more judgment and make more estimates than under the current guidance. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In July 2015, the FASB approved a one-year deferral of the effective date and the standard is now effective for the Company for fiscal 2019 and interim periods therein. ASU 2014-09 may be adopted as of the original effective date, which for the Company is fiscal 2018. The guidance may be applied using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently evaluating the method and date of adoption and the impact the adoption of ASU 2014-09 will have on the Company’s consolidated financial position, results of operations, and disclosures. |
Net Income per Share (Tables)
Net Income per Share (Tables) | 6 Months Ended |
Jul. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of antidilutive securities excluded from computation of earnings per share | The options and restricted stock units excluded from the diluted net income per-share share calculation were as follows: Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, Anti-dilutive options and restricted stock units 1,207,761 623,658 1,156,704 502,950 |
Schedule of calculation of numerator and denominator in earnings per share | The computation of earnings per share is presented below: Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, Numerator: Net income attributable to Raven Industries, Inc. $ 4,191 $ 7,719 $ 9,046 $ 18,757 Denominator: Weighted average common shares outstanding 37,659,107 36,462,600 37,829,941 36,444,153 Weighted average stock units outstanding 91,831 68,414 80,661 70,063 Denominator for basic calculation 37,750,938 36,531,014 37,910,602 36,514,216 Weighted average common shares outstanding 37,659,107 36,462,600 37,829,941 36,444,153 Weighted average stock units outstanding 91,831 68,414 80,661 70,063 Dilutive impact of stock options and restricted stock units 76,662 203,703 80,688 213,502 Denominator for diluted calculation 37,827,600 36,734,717 37,991,290 36,727,718 Net income per share - basic $ 0.11 $ 0.21 $ 0.24 $ 0.51 Net income per share - diluted $ 0.11 $ 0.21 $ 0.24 $ 0.51 |
Selected Balance Sheet Inform26
Selected Balance Sheet Information (Tables) | 6 Months Ended |
Jul. 31, 2015 | |
Selected Balance Sheet Information [Abstract] | |
Components of selected balance sheet items | Following are the components of selected items from the Consolidated Balance Sheets: July 31, 2015 January 31, 2015 July 31, 2014 Accounts receivable, net: Trade accounts $ 40,370 $ 56,895 $ 52,797 Allowance for doubtful accounts (481 ) (319 ) (344 ) $ 39,889 $ 56,576 $ 52,453 Inventories: Finished goods $ 6,657 $ 8,127 $ 7,098 In process 3,957 1,317 1,694 Materials 43,452 45,708 42,464 $ 54,066 $ 55,152 $ 51,256 Other current assets: Insurance policy benefit $ 637 $ 733 $ 876 Federal tax receivable — 713 1,826 Receivable from sale of business 830 — — Prepaid expenses and other 2,341 1,648 3,049 $ 3,808 $ 3,094 $ 5,751 Property, plant and equipment, net: Held for use: Land $ 2,921 $ 3,246 $ 2,077 Buildings and improvements 76,697 78,140 68,439 Machinery and equipment 136,666 131,766 118,833 Accumulated depreciation (99,346 ) (96,545 ) (91,543 ) $ 116,938 $ 116,607 $ 97,806 Held for sale: Land $ 324 $ 11 $ — Buildings and improvements 2,597 1,522 — Machinery and equipment 639 — — Accumulated depreciation (2,207 ) (627 ) — 1,353 906 — $ 118,291 $ 117,513 $ 97,806 Other assets, net: Investment in affiliate $ 2,896 $ 3,217 $ 3,380 Other, net 1,243 526 478 $ 4,139 $ 3,743 $ 3,858 Accrued liabilities: Salaries and related $ 2,031 $ 4,063 $ 2,115 Benefits 4,315 5,001 5,261 Insurance obligations 1,702 1,590 1,443 Warranties 1,752 3,120 2,617 Income taxes 1,108 536 133 Other taxes 1,031 1,240 983 Acquisition-related contingent consideration 1,028 1,375 919 Other 1,082 2,262 1,805 $ 14,049 $ 19,187 $ 15,276 Other liabilities: Postretirement benefits $ 12,151 $ 11,812 $ 8,166 Acquisition-related contingent consideration 3,049 3,631 3,682 Deferred income taxes 5,764 7,091 2,172 Uncertain tax positions 3,280 3,259 7,118 $ 24,244 $ 25,793 $ 21,138 |
Employee Postretirement Benef27
Employee Postretirement Benefits (Tables) | 6 Months Ended |
Jul. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of net periodic benefit cost for postretirement plan | The components of net periodic benefit cost for postretirement benefits are as follows: Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, Service cost $ 108 $ 49 $ 216 $ 98 Interest cost 105 92 210 183 Amortization of actuarial losses 84 38 168 76 Net periodic benefit cost $ 297 $ 179 $ 594 $ 357 |
Warranties (Tables)
Warranties (Tables) | 6 Months Ended |
Jul. 31, 2015 | |
Product Warranties Disclosures [Abstract] | |
Warranties | Changes in the warranty accrual were as follows: Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, Beginning balance $ 2,285 $ 2,654 $ 3,120 $ 2,525 Accrual for warranties 389 648 748 1,389 Settlements made (922 ) (685 ) (2,116 ) (1,297 ) Ending balance $ 1,752 $ 2,617 $ 1,752 $ 2,617 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 6 Months Ended |
Jul. 31, 2015 | |
Share-based Compensation [Abstract] | |
Weighted average assumptions by grant year | The weighted average assumptions used for the Black-Scholes option pricing model by grant year are as follows: Six Months Ended July 31, 2015 July 31, 2014 Risk-free interest rate 1.33 % 1.32 % Expected dividend yield 2.59 % 1.53 % Expected volatility factor 36.81 % 38.65 % Expected option term (in years) 3.75 4.00 Weighted average grant date fair value $4.77 $9.18 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jul. 31, 2015 | |
Segment Reporting [Abstract] | |
Business segment net sales and operating income results | Business segment net sales and operating income results are as follows: Three Months Ended Six Months Ended July 31, July 31, July 31, July 31, Net sales Applied Technology Division $ 20,411 $ 36,247 $ 52,821 $ 82,535 Engineered Films Division 35,789 42,299 67,110 84,506 Aerostar Division 11,328 19,257 17,882 36,922 Intersegment eliminations (a) (10 ) (3,318 ) (22 ) (6,968 ) Consolidated net sales $ 67,518 $ 94,485 $ 137,791 $ 196,995 Operating income Applied Technology Division (b) $ 4,041 $ 8,829 $ 12,782 $ 24,685 Engineered Films Division 5,365 5,816 9,836 11,679 Aerostar Division (c) 1,314 1,628 461 1,639 Intersegment eliminations (a) 25 (82 ) 84 (20 ) Total reportable segment income 10,745 16,191 23,163 37,983 Administrative and general expenses (4,316 ) (5,495 ) (9,520 ) (10,755 ) Consolidated operating income $ 6,429 $ 10,696 $ 13,643 $ 27,228 (a) Fiscal 2016 intersegment sales were primarily sales from Engineered Films to Aerostar. Fiscal 2015 intersegment sales were comprised primarily of contract manufacturing sales from Aerostar to Applied Technology. (b) Includes gains of $247 and $611 for the three- and six-month periods ended July 31, 2015, respectively, on disposal of assets related to the exit of contract manufacturing operations. (c) Includes $(70) loss for both the three- and six-month periods ended July 31, 2015 on disposal of an idle manufacturing plant held for sale. |
Basis of Presentation and Pri31
Basis of Presentation and Principles of Consolidation (Details) - Jul. 31, 2015 - segment | Total |
Organization, Consolidation and Presentation of Financial Statements Line Items [Line Items] | |
Number of operating units | 3 |
Aerostar Integrated Systems [Member] | |
Organization, Consolidation and Presentation of Financial Statements Line Items [Line Items] | |
Joint venture, ownership percentage | 75.00% |
Summary of Significant Accoun32
Summary of Significant Accounting Policies Goodwill Fair Value Analysis (Details) - Engineered Films [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Reporting Unit, Amount of Fair Value in Excess of Carrying Amount | $ 50,700 | $ 50,700 | ||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 37.20% | 37.20% | ||
Goodwill, Impairment Loss, Net of Tax | $ 0 | $ 0 | $ 0 | $ 0 |
Net Income per Share (Antidilut
Net Income per Share (Antidiluted Securities Excluded from Computation) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in options and restricted units) | 1,207,761 | 623,658 | 1,156,704 | 502,950 |
Net Income per Share (Schedule
Net Income per Share (Schedule of Calculation of Numerator and Denominator in Earnings per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Numerator: | ||||
Net income attributable to Raven Industries, Inc. | $ 4,191 | $ 7,719 | $ 9,046 | $ 18,757 |
Denominator: | ||||
Weighted average common shares outstanding (in shares) | 37,659,107 | 36,462,600 | 37,829,941 | 36,444,153 |
Weighted average stock units outstanding (in shares) | 91,831 | 68,414 | 80,661 | 70,063 |
Denominator for basic calculation (in shares) | 37,750,938 | 36,531,014 | 37,910,602 | 36,514,216 |
Weighted average common shares outstanding (in shares) | 37,659,107 | 36,462,600 | 37,829,941 | 36,444,153 |
Weighted average stock units outstanding (in shares) | 91,831 | 68,414 | 80,661 | 70,063 |
Dilutive impact of stock options and restricted units (in shares) | 76,662 | 203,703 | 80,688 | 213,502 |
Denominator for diluted calculation (in shares) | 37,827,600 | 36,734,717 | 37,991,290 | 36,727,718 |
Net income per share - basic (in dollars per share) | $ 0.11 | $ 0.21 | $ 0.24 | $ 0.51 |
Net income per share - diluted (in dollars per share) | $ 0.11 | $ 0.21 | $ 0.24 | $ 0.51 |
Selected Balance Sheet Inform35
Selected Balance Sheet Information (Details) - USD ($) $ in Thousands | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 |
Accounts receivable, net: | ||||||
Trade accounts | $ 40,370 | $ 56,895 | $ 52,797 | |||
Allowance for doubtful accounts | (481) | (319) | (344) | |||
Accounts receivable, net | 39,889 | 56,576 | 52,453 | |||
Inventories: | ||||||
Finished goods | 6,657 | 8,127 | 7,098 | |||
In process | 3,957 | 1,317 | 1,694 | |||
Materials | 43,452 | 45,708 | 42,464 | |||
Inventories | 54,066 | 55,152 | 51,256 | |||
Other current assets: | ||||||
Insurance policy benefit | 637 | 733 | 876 | |||
Federal tax receivable | 0 | 713 | 1,826 | |||
Receivable from sale of business | 830 | 0 | 0 | |||
Prepaid Expense and other | 2,341 | 1,648 | 3,049 | |||
Other current assets | 3,808 | 3,094 | 5,751 | |||
Property, plant and equipment, net: | ||||||
Property, plant and equipment, net | 118,291 | 117,513 | 97,806 | |||
Other Assets, net (Noncurrent): | ||||||
Investment in affiliate (equity method) | 2,896 | 3,217 | 3,380 | |||
Other, net | 1,243 | 526 | 478 | |||
Other assets, net | 4,139 | 3,743 | 3,858 | |||
Accrued liabilities: | ||||||
Salaries and related | 2,031 | 4,063 | 2,115 | |||
Benefits | 4,315 | 5,001 | 5,261 | |||
Insurance obligations | 1,702 | 1,590 | 1,443 | |||
Warranties | 1,752 | $ 2,285 | 3,120 | 2,617 | $ 2,654 | $ 2,525 |
Income Taxes | 1,108 | 536 | 133 | |||
Other taxes | 1,031 | 1,240 | 983 | |||
Acquisition-related contingent consideration liability, Current | 1,028 | 1,375 | 919 | |||
Other | 1,082 | 2,262 | 1,805 | |||
Accrued liabilities | 14,049 | 19,187 | 15,276 | |||
Other liabilities: | ||||||
Postretirement benefits | 12,151 | 11,812 | 8,166 | |||
Acquisition-related contingent consideration liability, Noncurrent | 3,049 | 3,631 | 3,682 | |||
Deferred income taxes | 5,764 | 7,091 | 2,172 | |||
Uncertain tax positions | 3,280 | 3,259 | 7,118 | |||
Other liabilities | 24,244 | 25,793 | 21,138 | |||
Land [Member] | ||||||
Property, plant and equipment, net: | ||||||
Property, plant and equipment | 324 | 11 | 0 | |||
Building and Building Improvements [Member] | ||||||
Property, plant and equipment, net: | ||||||
Property, plant and equipment | 2,597 | 1,522 | 0 | |||
Machinery and Equipment [Member] | ||||||
Property, plant and equipment, net: | ||||||
Property, plant and equipment | 639 | 0 | 0 | |||
Assets Held-for-sale [Member] | ||||||
Property, plant and equipment, net: | ||||||
Accumulated depreciation | (2,207) | (627) | 0 | |||
Property, plant and equipment, net | 1,353 | 906 | 0 | |||
Land [Member] | ||||||
Property, plant and equipment, net: | ||||||
Property, plant and equipment | 2,921 | 3,246 | 2,077 | |||
Building and Building Improvements [Member] | ||||||
Property, plant and equipment, net: | ||||||
Property, plant and equipment | 76,697 | 78,140 | 68,439 | |||
Machinery and Equipment [Member] | ||||||
Property, plant and equipment, net: | ||||||
Property, plant and equipment | 136,666 | 131,766 | 118,833 | |||
Assets held for use [Member] | ||||||
Property, plant and equipment, net: | ||||||
Accumulated depreciation | (99,346) | (96,545) | (91,543) | |||
Property, plant and equipment, net | 116,938 | 116,607 | 97,806 | |||
Assets held for use [Member] | Assets Held-for-sale [Member] | ||||||
Property, plant and equipment, net: | ||||||
Property, plant and equipment, net | $ 118,291 | $ 117,513 | $ 97,806 |
Acquisitions of and Investmen36
Acquisitions of and Investments in Businesses and Technologies (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | Jan. 31, 2015 | |
Business Combination, Description [Abstract] | |||||
Goodwill | $ 52,198,000 | $ 25,420,000 | $ 52,198,000 | $ 25,420,000 | $ 52,148,000 |
Business Combination, Contingent Consideration Arrangements [Abstract] | |||||
Acquisition-related contingent consideration liability, Current | 1,028,000 | 919,000 | 1,028,000 | 919,000 | 1,375,000 |
Acquisition-related contingent consideration liability, Noncurrent | 3,049,000 | 3,682,000 | 3,049,000 | 3,682,000 | $ 3,631,000 |
Payments of acquisition-related contingent liability | $ (735,000) | (454,000) | |||
Integra Plastics [Member] | |||||
Business Combination, Description [Abstract] | |||||
Business Acquisition, Name of Acquired Entity | Integra Plastics, Inc. | ||||
Business Combination Cash received for working capital adjustment | $ 351,000 | ||||
Business Acquisition, adjustment to consideration transferred | 20,000 | ||||
Business Combination, Consideration Transferred | 48,262,000 | ||||
Goodwill | 27,422,000 | $ 27,422,000 | |||
SBG Innovatie [Member] | |||||
Business Combination, Description [Abstract] | |||||
Business Acquisition, Name of Acquired Entity | SBG Innovatie BV | ||||
Navtronics [Member] | |||||
Business Combination, Description [Abstract] | |||||
Business Acquisition, Name of Acquired Entity | Navtronics BVBA | ||||
SBG Innovatie and Affiliates [Member] | |||||
Business Combination, Description [Abstract] | |||||
Business Acquisition, Date of Acquisition Agreement | May 1, 2014 | ||||
Contingent consideration, potential cash payment | 2,500,000 | $ 2,500,000 | |||
Contingent Consideration Term in Years | 10 years | ||||
Business Combination, Contingent Consideration Arrangements [Abstract] | |||||
Acquisition-related contingent consideration, total liability | 1,325,000 | 1,661,000 | $ 1,325,000 | 1,661,000 | |
Acquisition-related contingent consideration liability, Current | 310,000 | 152,000 | 310,000 | 152,000 | |
Acquisition-related contingent consideration liability, Noncurrent | 1,015,000 | 1,509,000 | 1,015,000 | 1,509,000 | |
Payments of acquisition-related contingent liability | 121,000 | 0 | $ 150,000 | 0 | |
Vista Research [Member] | |||||
Business Combination, Description [Abstract] | |||||
Business Acquisition, Date of Acquisition Agreement | Jan. 6, 2012 | ||||
Contingent consideration, potential cash payment | 15,000,000 | $ 15,000,000 | |||
Business acquisition contingent consideration payments period | 7 years | ||||
Business Combination, Contingent Consideration Arrangements [Abstract] | |||||
Acquisition-related contingent consideration, total liability | 2,720,000 | 2,745,000 | $ 2,720,000 | 2,745,000 | |
Acquisition-related contingent consideration liability, Current | 686,000 | 569,000 | 686,000 | 569,000 | |
Acquisition-related contingent consideration liability, Noncurrent | 2,034,000 | 2,176,000 | 2,034,000 | 2,176,000 | |
Payments of acquisition-related contingent liability | $ 0 | $ 0 | $ 585,000 | $ 454,000 |
Employee Postretirement Benef37
Employee Postretirement Benefits (Details) - Other Postretirement Benefit Plans, Defined Benefit [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 108 | $ 49 | $ 216 | $ 98 |
Interest cost | 105 | 92 | 210 | 183 |
Amortization of actuarial losses | 84 | 38 | 168 | 76 |
Net periodic benefit cost | $ 297 | $ 179 | $ 594 | $ 357 |
Warranties (Details)
Warranties (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Product Warranty Accrual [Roll Forward] | ||||
Beginning balance | $ 2,285 | $ 2,654 | $ 3,120 | $ 2,525 |
Accrual for warranties | 389 | 648 | 748 | 1,389 |
Settlements made | (922) | (685) | (2,116) | (1,297) |
Ending balance | $ 1,752 | $ 2,617 | $ 1,752 | $ 2,617 |
Financing Arrangements (Details
Financing Arrangements (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jul. 31, 2015 | Apr. 15, 2015 | Apr. 14, 2015 | Jul. 31, 2014 | |
Wells Fargo Bank, N.A. [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Borrowing capacity under line of credit | $ 10,500 | |||
Maturity date of the line of credit | Apr. 15, 2015 | |||
Letters of credit issued, amount | $ 850 | |||
Borrowing outstanding under line of credit | $ 0 | $ 0 | ||
Remaining borrowing capacity under the line of credit | $ 9,650 | |||
JPMorgan Chase Bank [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Initiation Date | Apr. 15, 2015 | |||
Borrowing capacity under line of credit | $ 125,000 | |||
Maturity date of the line of credit | Apr. 15, 2020 | |||
Debt Issuance Cost | $ 549 | |||
Borrowing outstanding under line of credit | 0 | |||
Remaining borrowing capacity under the line of credit | $ 125,000 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Income Tax Contingency [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Percent | 31.50% | 27.20% | 31.90% | 30.70% |
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount | $ 709 | $ 709 | ||
CANADA | ||||
Income Tax Contingency [Line Items] | ||||
Undistributed Earnings of Foreign Subsidiaries | 2,000 | 2,000 | ||
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | $ 310 | $ 310 |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | Jan. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Activities, Initiation Date | Mar. 10, 2015 | ||||
Restructuring costs unpaid | $ 0 | ||||
Severance Costs | $ 111,000 | 588,000 | |||
Restructuring and Related Cost, Incurred Cost | $ 0 | $ 0 | |||
Impairment charges related to exit activity | 0 | 0 | |||
Gain (Loss) on Disposition of Assets | 247,000 | 611,000 | |||
Receivable from sale of business | 830,000 | $ 0 | 830,000 | $ 0 | $ 0 |
Applied Technology Division [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Gain (Loss) on Disposition of Assets | 247,000 | 611,000 | |||
Receivable from sale of business | $ 827,000 | 827,000 | |||
Cost of Sales [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance Costs | 407,000 | ||||
Selling, General and Administrative Expenses [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance Costs | $ 181,000 |
Dividends and Treasury Stock (D
Dividends and Treasury Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Stockholders' Equity Note [Abstract] | ||||
Dividends paid | $ 4,894 | $ 4,376 | $ 9,834 | $ 8,747 |
Cash dividends paid per common share (in dollars per share) | $ 0.13 | $ 0.12 | $ 0.26 | $ 0.24 |
Stock Repurchase Program, Authorized Amount | $ 40,000 | $ 40,000 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 29,175 | $ 29,175 |
Share Based Compensation (Detai
Share Based Compensation (Details) - 2010 Stock Incentive Plan [Member] - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in period (in shares) | 9,400 | 0 | 289,600 | 194,900 |
Stock options vesting period, years | 4 years | |||
Years to expiration | 5 years | |||
Time-vested RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options vesting period, years | 3 years | |||
Grants in period (time-vested or performance-based RSUs) | 0 | 0 | 19,250 | 19,040 |
Weighted average grant date fair value (in dollars per share) | $ 20.10 | $ 32.75 | ||
Performance-based RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options vesting period, years | 3 years | |||
Grants in period (time-vested or performance-based RSUs) | 2,240 | 0 | 68,570 | 54,490 |
Weighted average grant date fair value (in dollars per share) | $ 20.10 | $ 32.75 | ||
Share Based Compensation Arrangement, By Share Based Payment Award, Number Of Shares Granted Based On Target Award Percenatge | 100.00% | |||
Performance-based RSUs [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Perfromance shares target award | 0.00% | |||
Performance-based RSUs [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Perfromance shares target award | 150.00% |
Share Based Compensation (Weigh
Share Based Compensation (Weighted average assumptions by grant year) (Details) - $ / shares | 6 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Share-based Compensation [Abstract] | ||
Risk-free interest rate | 1.33% | 1.32% |
Expected dividend yield | 2.59% | 1.53% |
Expected volatility factor | 36.81% | 38.65% |
Expected option term (in years) | 3 years 9 months | 4 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 4.77 | $ 9.18 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2014 | ||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 67,518 | $ 94,485 | $ 137,791 | $ 196,995 | |
Operating income | 6,429 | 10,696 | 13,643 | 27,228 | |
Administrative and general expenses | (4,316) | (5,495) | (9,520) | (10,755) | |
Gain (Loss) on Disposition of Assets | (247) | (611) | |||
Applied Technology Division [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 20,411 | 36,247 | 52,821 | 82,535 | |
Operating income | [1] | 4,041 | 8,829 | 12,782 | 24,685 |
Gain (Loss) on Disposition of Assets | (247) | (611) | |||
Engineered Films [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 35,789 | 42,299 | 67,110 | 84,506 | |
Operating income | 5,365 | 5,816 | 9,836 | 11,679 | |
Aerostar Division [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 11,328 | 19,257 | 17,882 | 36,922 | |
Operating income | [2] | 1,314 | 1,628 | 461 | 1,639 |
Gain (Loss) on Disposition of Assets | 70 | 70 | |||
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | [3] | (10) | (3,318) | (22) | (6,968) |
Operating income | [3] | 25 | (82) | 84 | (20) |
Corporate Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | $ 10,745 | $ 16,191 | $ 23,163 | $ 37,983 | |
[1] | (b) Includes gains of $247 and $611 for the three- and six-month periods ended July 31, 2015, respectively, on disposal of assets related to the exit of contract manufacturing operations. | ||||
[2] | (c) Includes $(70) loss for both the three- and six-month periods ended July 31, 2015 on disposal of an idle manufacturing plant held for sale. | ||||
[3] | (a) Fiscal 2016 intersegment sales were primarily sales from Engineered Films to Aerostar. Fiscal 2015 intersegment sales were comprised primarily of contract manufacturing sales from Aerostar to Applied Technology. |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 31, 2015 | Aug. 25, 2015 | |
Subsequent Event [Line Items] | ||
Subsequent Event, Date | Aug. 25, 2015 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Expected effect of plan amendment on net periodic benefit cost for remainder of fiscal year | $ 165 |