Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 31, 2015 | Nov. 27, 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/A | |
Document Period End Date | Oct. 31, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | true | |
Amendment Description | Explanatory Note This Amendment No. 1 to Form 10-Q (this Amendment) amends the Quarterly Report on Form 10-Q for the three and nine months ended October 31, 2015 originally filed with the Securities and Exchange Commission (SEC) on December 4, 2015 (the Original Filing) by Raven Industries, Inc. (the Company). Restatement As further discussed in Note 2 to our unaudited consolidated financial statements in Part I, Item 1. "Financial Statements" of this Quarterly Report on Form 10-Q/A, subsequent to the issuance of the Original Filing, we and our Audit Committee concluded that we should restate our previously issued consolidated financial statements to correct for errors related to (i) the impairment of goodwill, finite-lived intangibles, and other long-lived assets related to our Vista reporting unit; (ii) the fair value of acquisition-related contingent consideration; and (iii) income tax accounting. In connection with the restatement, the Company also recorded adjustments for certain other errors which management has concluded are immaterial. These corrections will also result in a restatement of our consolidated financial statements for the year ended January 31, 2016 and of our unaudited consolidated financial statements for the quarter ended April 30, 2016. We will file an amended Form 10-K and amended Form 10-Q to address these corrections. Disclosure Controls and Procedures Management has reassessed its evaluation of the effectiveness of the design and operation of its disclosure controls and procedures as of October 31, 2015. As a result of that reassessment, management has concluded that the Company did not maintain effective disclosure controls and procedures due to the material weaknesses in internal control over financial reporting which existed at that date. For a description of the material weaknesses in internal control over financial reporting and actions taken, and to be taken, to address the material weaknesses, see Part 1, Item 4. "Controls and Procedures" of this Amended Quarterly Report on form 10-Q/A. Amendment Accordingly, the purpose of this Amendment is to (i) restate our previously issued unaudited consolidated financial statements and related disclosures in Part I, Item 1. "Financial Statements" for the three and nine months ended October 31, 2015 as well as related disclosures in Part I, Item 2. "Management's Discussion and Analysis of Financial Condition and Results of Operations," to reflect the correction of the errors described above and which were described in the Company’s Form 8-K filed with the SEC on November 23, 2016, and (ii) to amend and restate in its entirety Part I, Item 4. "Controls and Procedures" of the Original Filing to reflect the conclusions by the Company’s management that internal control over financial reporting and disclosure controls and procedures were not effective as of October 31, 2015 due to the identification of the material weaknesses which resulted in the errors described above and which were described in the Company’s Form 8-K filed with the SEC on November 23, 2016. Except as expressly set forth herein, this Amendment does not reflect events occurring after the date of the Original Filing or modify or update any of the other disclosures contained therein in any way other than as required to reflect the amendment discussed above and to enhance disclosures in Part I, Item 2. "Management's Discussion and Analysis of Financial Condition and Results of Operations," to be consistent with the enhanced disclosures included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2016. Accordingly, this Amendment should be read in conjunction with the Original Filing and our other filings with the SEC. The Company will also file an amendment to the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2016, originally filed with the SEC on March 29, 2016, to restate the Company's previously issued audited consolidated financial statements for the fiscal year ended January 31, 2016 to correct the errors referenced above. The Company will restate management's report on internal control over financial reporting and its evaluation of disclosure controls and procedures (to be included in its amended Annual Report on Form 10-K/A for the fiscal year ended January 31, 2016) and will receive an adverse opinion on internal control over financial reporting as of January 31, 2016 from its independent registered public accounting firm, PricewaterhouseCoopers LLP. With respect to its Form 10-Q for the quarterly period ended April 30, 2016, the Company will also restate its previously issued unaudited consolidated financial statements as well as Part I, Item 4. "Controls and Procedures." References in this Amendment to Raven Industries, Inc., the Company, "we", "our" or "us" refer to Raven Industries, Inc. and its wholly-owned and consolidated subsidiaries, net of a noncontrolling interest recorded for the noncontrolling investor's interests in the net assets of a 75% owned business venture. Items Amended in this Filing For reasons discussed above, we are filing this Amendment in order to amend the following items in our Original Report to the extent necessary to reflect the adjustments discussed above and make corresponding revisions to our financial data cited elsewhere in this Amendment: | |
Entity Common Stock, Shares Outstanding | 36,505,845 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 | Oct. 31, 2014 |
Current assets | |||
Cash and cash equivalents | $ 32,287 | $ 51,949 | $ 66,358 |
Short-term investments | 250 | 250 | 250 |
Accounts receivable, net | 39,293 | 56,576 | 54,533 |
Inventories | 48,636 | 55,152 | 51,800 |
Deferred income taxes | 3,296 | 3,958 | 3,299 |
Other current assets | 2,915 | 3,094 | 2,881 |
Total current assets | 126,677 | 170,979 | 179,121 |
Property, plant and equipment, net | 117,206 | 117,513 | 100,369 |
Goodwill | 40,712 | 52,148 | 25,234 |
Amortizable intangible assets, net | 13,327 | 18,490 | 9,005 |
Other assets | 3,859 | 3,743 | 3,734 |
TOTAL ASSETS | 301,781 | 362,873 | 317,463 |
Current liabilities | |||
Accounts payable | 7,160 | 11,545 | 11,614 |
Accrued liabilities | 11,597 | 19,187 | 16,922 |
Customer advances | 907 | 1,111 | 1,540 |
Total current liabilities | 19,664 | 31,843 | 30,076 |
Other liabilities | 14,511 | 25,793 | 20,432 |
Commitments and contingencies | |||
Shareholders' equity | |||
Common stock, $1 par value, authorized shares 100,000; issued 67,006; 66,947; and 65,400, respectively | 67,006 | 66,947 | 65,400 |
Paid-in capital | 53,919 | 53,237 | 14,579 |
Retained earnings | 232,315 | 244,180 | 242,973 |
Accumulated other comprehensive loss | (3,026) | (5,849) | (2,693) |
Treasury stock at cost, 30,500; 28,897; and 28,897 shares, respectively | (82,700) | (53,362) | (53,362) |
Total Raven Industries, Inc. shareholders' equity | 267,514 | 305,153 | 266,897 |
Noncontrolling interest | 92 | 84 | 58 |
Total shareholders' equity | 267,606 | 305,237 | 266,955 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 301,781 | $ 362,873 | $ 317,463 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Oct. 31, 2015 | Jan. 31, 2015 | Oct. 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 | 65,400,000 |
Treasury stock, at cost (in shares) | 30,500,000 | 28,897,000 | 28,897,000 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 67,611 | $ 91,292 | $ 205,402 | $ 288,287 |
Cost of sales | 50,639 | 66,953 | 150,213 | 206,524 |
Gross profit | 16,972 | 24,339 | 55,189 | 81,763 |
Research and development expenses | 4,005 | 4,318 | 10,757 | 13,675 |
Selling, general, and administrative expenses | 7,480 | 9,862 | 25,302 | 30,701 |
Goodwill impairment loss | 11,497 | 0 | 11,497 | 0 |
Long-lived asset impairment loss | 3,813 | 0 | 3,813 | 0 |
Operating (loss) income | (9,823) | 10,159 | 3,820 | 37,387 |
Other (expense), net | (123) | (72) | (433) | (210) |
(Loss) income before income taxes | (9,946) | 10,087 | 3,387 | 37,177 |
Income taxes (benefit) provision | (3,780) | 3,290 | 471 | 11,599 |
Net (loss) income | (6,166) | 6,797 | 2,916 | 25,578 |
Net income attributable to the noncontrolling interest | 22 | 14 | 58 | 38 |
Net (loss) income attributable to Raven Industries, Inc. | $ (6,188) | $ 6,783 | $ 2,858 | $ 25,540 |
Net (loss) income per common share: | ||||
Basic (in dollars per share) | $ (0.17) | $ 0.19 | $ 0.08 | $ 0.70 |
Diluted (in dollars per share) | (0.17) | 0.18 | 0.08 | 0.70 |
Cash dividends paid per common share (in dollars per share) | $ 0.13 | $ 0.13 | $ 0.39 | $ 0.37 |
Comprehensive income: | ||||
Net (loss) income | $ (6,166) | $ 6,797 | $ 2,916 | $ 25,578 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation | 2 | (463) | (172) | (588) |
Postretirement benefits, net of income tax benefit of $1,606, $14, $1,572, and $40, respectively | 2,794 | 24 | 2,995 | 74 |
Other comprehensive income (loss), net of tax | 2,796 | (439) | 2,823 | (514) |
Comprehensive (loss) income | (3,370) | 6,358 | 5,739 | 25,064 |
Comprehensive income attributable to noncontrolling interest | 22 | 14 | 58 | 38 |
Comprehensive (loss) income attributable to Raven Industries, Inc. | $ (3,392) | $ 6,344 | $ 5,681 | $ 25,026 |
Consolidated Statements of Inc5
Consolidated Statements of Income and Comprehensive Income (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Income Statement [Abstract] | ||||
Other comprehensive income, postretirement benefits, income tax benefit | $ 1,606 | $ 14 | $ 1,572 | $ 40 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ 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 | 28,897,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | 25,578 | 25,540 | 25,540 | 38 | ||||
Other comprehensive income (loss): | ||||||||
Cumulative foreign currency translation adjustment | (588) | (588) | (588) | |||||
Postretirement benefits reclassified from accumulated other comprehensive income (loss) after tax (expense) benefit | 74 | 74 | 74 | |||||
Cash dividends | (13,492) | 104 | (13,596) | (13,492) | ||||
Dividends of less than wholly owned subsidiary paid to noncontrolling interest | (80) | (80) | ||||||
Director shares issued | 0 | 18 | (18) | |||||
Shares issued on stock options exercised, net of shares withheld for employee taxes | 574 | 64 | 510 | 574 | ||||
Share-based compensation | 3,336 | 3,336 | 3,336 | |||||
Income tax impact related to share-based compensation | 91 | 91 | 91 | |||||
Balance at end of period at Oct. 31, 2014 | $ 266,955 | 65,400 | 14,579 | $ (53,362) | 242,973 | (2,693) | 266,897 | 58 |
Treasury stock at end of period (in shares) at Oct. 31, 2014 | 28,897,000 | 28,897,000 | ||||||
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 | 28,897,000 | 28,897,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | $ 2,916 | 2,858 | 2,858 | 58 | ||||
Other comprehensive income (loss): | ||||||||
Cumulative foreign currency translation adjustment | (172) | (172) | (172) | |||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | 2,770 | 2,770 | 2,770 | |||||
Postretirement benefits reclassified from accumulated other comprehensive income (loss) after tax (expense) benefit | (225) | (225) | (225) | |||||
Cash dividends | (14,598) | 125 | (14,723) | (14,598) | ||||
Dividends of less than wholly owned subsidiary paid to noncontrolling interest | (50) | (50) | ||||||
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 | $ (29,338) | $ (29,338) | (29,338) | |||||
Shares repurchased, Treasury Stock | 1,602,545 | 1,603,000 | ||||||
Share-based compensation | $ 1,826 | 1,826 | 1,826 | |||||
Income tax impact related to share-based compensation | (690) | (690) | (690) | |||||
Balance at end of period at Oct. 31, 2015 | $ 267,606 | $ 67,006 | $ 53,919 | $ (82,700) | $ 232,315 | $ (3,026) | $ 267,514 | $ 92 |
Treasury stock at end of period (in shares) at Oct. 31, 2015 | 30,500,000 | 30,500,000 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||
Common Stock, Dividends, Per Share, Declared | $ 0.390 | $ 0.370 |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Tax | $ (19) | $ 40 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Net Prior Service Cost (Credit), Tax | $ 1,591 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
OPERATING ACTIVITIES: | ||
Net income | $ 2,916 | $ 25,578 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 13,201 | 12,538 |
Change in fair value of acquisition-related contingent consideration | (1,720) | 514 |
Goodwill impairment loss | 11,497 | 0 |
Long-lived asset impairment loss | 3,813 | 0 |
Loss from equity investment | 126 | 138 |
Deferred income taxes | (6,685) | (2,420) |
Share-based compensation expense | 1,826 | 3,336 |
Change in operating assets and liabilities: | ||
Accounts receivable | 16,144 | 2,108 |
Inventories | 4,820 | 2,768 |
Other assets | 228 | (555) |
Operating liabilities | (12,580) | 1,623 |
Other operating activities, net | 1,595 | 67 |
Net cash provided by operating activities | 35,181 | 45,695 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (10,771) | (12,797) |
Proceeds (payments) related to business acquisitions | 351 | (4,711) |
Proceeds from sales of short-term investments | 0 | 250 |
Purchase of short-term investments | 0 | (250) |
Proceeds from sale of assets | 1,960 | 0 |
Other investing activities | (506) | (604) |
Net cash used in investing activities | (8,966) | (18,112) |
FINANCING ACTIVITIES: | ||
Dividends paid | (14,648) | (13,572) |
Payments for common shares repurchased | (29,338) | 0 |
Payments of acquisition-related debt | 0 | (648) |
Payments of acquisition-related contingent liability | (773) | (491) |
Debt issuance costs paid | (548) | 0 |
Restricted stock units vested and issued | (458) | 0 |
Employee stock option exercises net of tax benefit | (85) | 665 |
Other financing activities, net | (15) | 0 |
Net cash used in financing activities | (45,865) | (14,046) |
Effect of exchange rate changes on cash | (12) | (166) |
Net (decrease) increase in cash and cash equivalents | (19,662) | 13,371 |
Cash and cash equivalents at beginning of year | 51,949 | 52,987 |
Cash and cash equivalents at end of period | $ 32,287 | $ 66,358 |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 9 Months Ended |
Oct. 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 nine -month period ended October 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. |
Restatement of the Unaudited Co
Restatement of the Unaudited Consolidated Financial Statements | 9 Months Ended |
Oct. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Restatement of the Unaudited Consolidated Financial Statements | RESTATEMENT OF THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Management has identified certain financial statement errors as further described below. Vista In conjunction with the identification of the material weakness in internal controls related to the Company’s accounting for goodwill and long-lived assets, including finite-lived assets, the Company reassessed the impairment analysis of the Vista reporting unit that had been performed during the quarter ended October 31, 2015. Based on that reassessment, the Company concluded that there were errors in certain forecast assumptions and in the determination of the unit of account for long-lived asset impairment testing which resulted in a $3,813 understatement of impairment charges related to certain long-lived assets that should have been recorded in the quarter ended October 31, 2015. The Company has corrected this error by recording an impairment charge of $3,813 , reported as "Long-lived asset impairment loss" in the Consolidated Statements of Income and Comprehensive Income. Of the total long-lived asset impairment adjustment, $3,259 was related to amortizable intangible assets related to radar technology, radar customers, and patents and $554 was related to property, plant, and equipment. The Company also determined that the forecast assumption errors resulted in an understatement of the amount of goodwill impairment originally recognized in the quarter ended October 31, 2015 and that the tax-deductible goodwill of the Vista reporting unit should have been fully impaired as of that date. The Company has corrected this error by recording an additional goodwill impairment charge of $4,084 in the quarter ended October 31, 2015. In connection with the acquisition of Vista in 2012, the Company entered into an agreement to make annual payments based upon percentages of specific revenue streams for seven years after the acquisition date. In connection with the errors in the forecast assumptions noted above, the Company determined that there was also an error in determining the fair value of the acquisition-related contingent consideration liability in the quarter ended October 31, 2015. The Company has corrected this error by recording a reduction in "Accrued liabilities" (acquisition-related contingent consideration) of $44 , "Other liabilities" (acquisition-related contingent consideration) of $746 , and "Cost of sales" of $790 for the quarter ended October 31, 2015. As a result of the material weakness in internal controls related to the Company’s monitoring of inventory existence, the Company identified a net $12 understatement of the carrying value of inventory as of October 31, 2015. The Company corrected the error by increasing inventory and reducing "Cost of sales" for the quarter ended October 31, 2015. Other The financial statements are also being adjusted to correct the income tax benefit for the impact of the goodwill, intangibles and acquisition-related contingent consideration liability error corrections noted above, as well as to correct for other tax accounting errors. The aggregate impact of tax accounting errors resulted in a $2,489 increase of "Income tax (benefit) provision", a reduction of "Accrued liabilities" (income tax payable) of $265 , a reduction of "Other Liabilities" (deferred income taxes) of $1,460 , a reduction of "Other liabilities" (uncertain tax positions) of $340 , and a $423 reduction of "Paid-in capital" for the quarter ended October 31, 2015. The effects of the restatement on the Company's unaudited consolidated balance sheets as of October 31, 2015 are as follows (in thousands): October 31, 2015 Consolidated Balance Sheets (unaudited): As Previously Reported Restatement Adjustments As Restated Inventories $ 48,624 $ 12 $ 48,636 Total current assets 126,665 12 126,677 Property, plant and equipment, net 117,760 (554 ) 117,206 Goodwill 44,796 (4,084 ) 40,712 Amortizable intangible assets, net 16,586 (3,259 ) 13,327 Total assets 309,666 (7,885 ) 301,781 Accrued liabilities 11,906 (309 ) 11,597 Total current liabilities 19,973 (309 ) 19,664 Other liabilities 17,057 (2,546 ) 14,511 Paid-in capital 54,342 (423 ) 53,919 Retained earnings 236,922 (4,607 ) 232,315 Total Raven Industries, Inc. shareholders' equity 272,544 (5,030 ) 267,514 Total shareholders' equity 272,636 (5,030 ) 267,606 Total liabilities and shareholders' equity 309,666 (7,885 ) 301,781 The effects of the restatement on the Company's unaudited consolidated statements of income and comprehensive income for the three and nine months ended October 31, 2015 are as follows (in thousands): Three Months Ended October 31, 2015 Nine Months Ended October 31, 2015 Consolidated Statements of Income and Comprehensive Income (unaudited): As Previously Reported Restatement Adjustments As Restated As Previously Reported Restatement Adjustments As Restated Cost of sales $ 51,440 $ (801 ) $ 50,639 $ 151,014 $ (801 ) $ 150,213 Gross profit 16,171 801 16,972 54,388 801 55,189 Goodwill impairment loss 7,413 4,084 11,497 7,413 4,084 11,497 Long-lived asset impairment loss — 3,813 3,813 — 3,813 3,813 Operating (loss) income (2,727 ) (7,096 ) (9,823 ) 10,916 (7,096 ) 3,820 (Loss) income before income taxes (2,850 ) (7,096 ) (9,946 ) 10,483 (7,096 ) 3,387 Income taxes (benefit) provision (1,291 ) (2,489 ) (3,780 ) 2,960 (2,489 ) 471 Net (loss) income (1,559 ) (4,607 ) (6,166 ) 7,523 (4,607 ) 2,916 Net (loss) income attributable to Raven Industries, Inc. (1,581 ) (4,607 ) (6,188 ) 7,465 (4,607 ) 2,858 Net (loss) income per common share: ─ Basic (0.04 ) (0.13 ) (0.17 ) 0.20 (0.12 ) 0.08 ─ Diluted (0.04 ) (0.13 ) (0.17 ) 0.20 (0.12 ) 0.08 Comprehensive income (loss) 1,237 (4,607 ) (3,370 ) 10,346 (4,607 ) 5,739 Comprehensive income attributable to Raven Industries, Inc. 1,215 (4,607 ) (3,392 ) 10,288 (4,607 ) 5,681 The effects of the restatement on the Company's consolidated statements of shareholders' equity as of and for the nine months ended October 31, 2015 are as follows (in thousands): Nine Months Ended October 31, 2015 Consolidated Statements of Shareholders' Equity (unaudited): As Previously Reported Restatement Adjustments As Restated Net income 7,523 (4,607 ) 2,916 Income tax impact related to share-based compensation (267 ) (423 ) (690 ) Total shareholders' equity as of October 31, 2015 272,636 (5,030 ) 267,606 The effects of the restatement on the Net Cash provided by operating activities of the Company's unaudited consolidated statements of cash flows for the nine months ended October 31, 2015 are as follows (in thousands): Nine Months Ended October 31, 2015 Consolidated Statements of Cash Flows (unaudited): As Previously Reported Restatement Adjustments As Restated Net income $ 7,523 $ (4,607 ) $ 2,916 Change in fair value of acquisition-related contingent consideration (930 ) (790 ) (1,720 ) Goodwill impairment loss 7,413 4,084 11,497 Long-lived asset impairment loss — 3,813 3,813 Deferred income taxes (4,765 ) (1,920 ) (6,685 ) Change in inventories 4,832 (12 ) 4,820 Operating liabilities (12,012 ) (568 ) (12,580 ) Net cash provided by operating activities 35,181 — 35,181 There were no impacts to Net cash used in investing activities or Net cash used in financing activities within our consolidated statement of cash flows nor was there an impact on the Net (decrease) increase in cash and cash equivalents resulting from restatement. The impacts of the restatements have been reflected throughout these unaudited financial statements, including the applicable footnotes, as appropriate. As the Company has been unable to timely file its Quarterly Reports on Form 10-Q for the three and six months ended July 31, 2016 and the three and nine months ended October 31, 2016, the Company is currently non-compliant with NASDAQ Listing Rule 5250(c)(1). In addition, the Company has requested and received covenant waivers from its lenders related to its credit agreement due to its late filing of financial statement information during fiscal 2017 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 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 nine-month periods ended October 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 assesses the recoverability of long-lived and intangible assets using fair value measurement techniques annually, or more frequently if events or changes in circumstances indicate that an asset might be impaired. An impairment loss is recognized when the carrying amount of an asset is below the estimated undiscounted cash flows used in determining the fair value of the assets. The cash flows used for this analysis are similar to those used in the goodwill impairment assessment discussed further below. As also 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). In the fiscal 2016 second quarter the Company performed a Step 1 impairment analysis using fair value techniques on the Engineered Films reporting unit as a result of changes in market conditions indicating that goodwill might be impaired. 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% . No significant changes were noted in the market conditions in fiscal 2016 third quarter and operating income was consistent with expectations at the end of second quarter. Although oil prices continue to be lower and sales are down, the profitability of the division continues to be higher than the trailing months at the time of the impairment analysis given the lower material costs in comparison to the selling price. As such, the Company concluded a triggering event did not occur in the current quarter for Engineered Films. In the fiscal 2016 third quarter the Company determined that a triggering event occurred for its Vista reporting unit, a subsidiary of the Aerostar Division. In addition to the Company making a change in the executive leadership of the Vista reporting unit during the quarter, financial expectations for sales and operating income of the reporting unit were lowered due to delays and uncertainties regarding the reporting unit’s pursuit of large international opportunities, one of which was expected to be awarded during the current quarter. While Vista has been in the process of negotiating a large international contract, the contract did not materialize in the fiscal 2016 third quarter as expected. The likelihood of being awarded this or other such contracts in the next twelve months is now lower than it was in the second quarter. The Company continues to pursue these international opportunities, but the timing of any contract award is less certain. As a result of a delay in being awarded this large international contract, the Company lowered its financial forecast for the business. As a result of these factors, the Company performed a Step 1 impairment analysis using fair value techniques as of October 31, 2015 for both long-lived assets and goodwill. As described in Note 7 Goodwill and Long-lived Asset Impairment Loss and Other Charges, the Company concluded that the Vista goodwill balance was fully impaired and that certain long-lived assets of the Vista reporting unit, including finite-lived intangible assets, were impaired as of October 31, 2015. Although the profitability of the Company’s other two reporting units, Aerostar (all operations other than Vista) and Applied Technology, has been down as compared to the prior year, the Company identified no triggering events requiring a Step 1 goodwill impairment analysis or long-lived asset impairment test for either of these reporting units. The Company will conduct its planned annual assessment of goodwill for impairment in the fourth quarter. 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 . |
Net (Loss) Income per Share
Net (Loss) Income per Share | 9 Months Ended |
Oct. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Income per Share | NET (LOSS) 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. Weighted average common and common equivalent shares outstanding are excluded from the diluted loss per share calculation as their inclusion would have an antidilutive effect. 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 Nine Months Ended October 31, 2015 (As Restated) October 31, October 31, 2015 (As Restated) October 31, Anti-dilutive options and restricted stock units 1,216,318 846,205 1,150,227 574,631 The computation of earnings per share is presented below: Three Months Ended Nine Months Ended October 31, 2015 (As Restated) October 31, October 31, 2015 (As Restated) October 31, Numerator: Net (loss) income attributable to Raven Industries, Inc. $ (6,188 ) $ 6,783 $ 2,858 $ 25,540 Denominator: Weighted average common shares outstanding 36,785,140 36,499,018 37,481,675 36,462,441 Weighted average stock units outstanding 92,470 68,721 84,597 69,616 Denominator for basic calculation 36,877,610 36,567,739 37,566,272 36,532,057 Weighted average common shares outstanding 36,785,140 36,499,018 37,481,675 36,462,441 Weighted average stock units outstanding 92,470 68,721 84,597 69,616 Dilutive impact of stock options and restricted stock units — 165,504 47,773 188,713 Denominator for diluted calculation 36,877,610 36,733,243 37,614,045 36,720,770 Net (loss) income per share - basic $ (0.17 ) $ 0.19 $ 0.08 $ 0.70 Net (loss) income per share - diluted $ (0.17 ) $ 0.18 $ 0.08 $ 0.70 |
Selected Balance Sheet Informat
Selected Balance Sheet Information | 9 Months Ended |
Oct. 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: October 31, 2015 (As Restated) January 31, 2015 October 31, 2014 Accounts receivable, net: Trade accounts $ 40,062 $ 56,895 $ 54,889 Allowance for doubtful accounts (769 ) (319 ) (356 ) $ 39,293 $ 56,576 $ 54,533 Inventories: Finished goods $ 5,211 $ 8,127 $ 7,981 In process 2,157 1,317 2,063 Materials 41,268 45,708 41,756 $ 48,636 $ 55,152 $ 51,800 Other current assets: Insurance policy benefit $ 728 $ 733 $ 517 Federal tax receivable — 713 — Receivable from sale of business 420 — — Prepaid expenses and other 1,767 1,648 2,364 $ 2,915 $ 3,094 $ 2,881 Property, plant and equipment, net: Held for use: Land $ 2,974 $ 3,246 $ 2,077 Buildings and improvements 76,775 78,140 69,353 Machinery and equipment 138,921 131,766 124,057 Accumulated depreciation (102,263 ) (96,545 ) (95,118 ) Accumulated impairment losses (554 ) — — $ 115,853 $ 116,607 $ 100,369 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 — $ 117,206 $ 117,513 $ 100,369 Other assets, net: Investment in affiliate $ 2,720 $ 3,217 $ 3,175 Other, net 1,139 526 559 $ 3,859 $ 3,743 $ 3,734 Accrued liabilities: Salaries and related $ 1,177 $ 4,063 $ 1,875 Benefits 3,925 5,001 5,778 Insurance obligations 1,852 1,590 1,426 Warranties 1,639 3,120 2,456 Income taxes 748 536 1,140 Other taxes 977 1,240 1,052 Acquisition-related contingent consideration 448 1,375 1,191 Other 831 2,262 2,004 $ 11,597 $ 19,187 $ 16,922 Other liabilities: Postretirement benefits $ 7,898 $ 11,812 $ 8,264 Acquisition-related contingent consideration 1,483 3,631 3,587 Deferred income taxes 2,205 7,091 1,406 Uncertain tax positions 2,925 3,259 7,175 $ 14,511 $ 25,793 $ 20,432 |
Acquisitions of and Investments
Acquisitions of and Investments in Businesses and Technologies | 9 Months Ended |
Oct. 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 October 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 January 2012 . The fair value of such contingent consideration is estimated using forecasted discounted cash flows. Projecting discounted future cash flows requires the Company to make significant estimates and assumptions regarding future revenues under the subject contingent agreement and the appropriate discount rate. Such valuations techniques include one or more significant inputs that are not observable (Level 3 fair value measures). 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 October 31, 2015 , the fair value of this contingent consideration was $1,338 , of which $329 was classified as "Accrued liabilities" and $1,009 was classified as "Other liabilities" in the Consolidated Balance Sheets. At October 31, 2014 , the fair value of this contingent consideration was $1,583 , of which $298 was classified as "Accrued liabilities" and $1,285 as "Other liabilities." The Company paid $38 and $188 in earn-out payments in the three- and nine -month periods ended October 31, 2015 . There were $37 earn-out payments in the three- and nine -month periods ended October 31, 2014 . Related to the acquisition of 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 . As a result of the triggering event described in Note 3 Summary of Significant Accounting Policies , the Company performed a Step 1 and Step 2 impairment analysis for the Vista reporting unit. The result of the Step 2 analysis is more fully described in Note 7 Goodwill and Long-lived Asset Impairment Loss and Other Charges . The Company evaluated the fair value of the remaining assets and liabilities including acquisition related contingent consideration. This analysis included reduction of $2,273 in the fair value of this contingent consideration which was recognized in "Cost of sales" in the Consolidated Statements of Income and Comprehensive Income for the three- and nine-month periods ended October 31, 2015 . At October 31, 2015 the fair value of this contingent consideration was $550 , of which $76 was classified in "Accrued liabilities" and $474 as "Other liabilities" in the Consolidated Balance Sheets. At October 31, 2014 the fair value of this contingent consideration was $2,841 , of which $539 was classified as "Accrued liabilities" and $2,302 as "Other liabilities" in the Consolidated Balance Sheets. The Company paid $585 and $454 in the nine-month periods ended October 31, 2015 and 2014 , respectively. The Company made no earn-out payments in the three-month periods ended October 31, 2015 or 2014, respectively. |
Goodwill and Long-Lived Asset I
Goodwill and Long-Lived Asset Impairment Loss and Other Charges | 9 Months Ended |
Oct. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Long-Lived Asset Impairment Loss and Other Charges | OODWILL AND LONG-LIVED ASSET IMPAIRMENT LOSS AND OTHER CHARGES Pre-contract Deferred Cost Write-offs From time to time, the Company incurs costs before a contract is finalized and such pre-contract costs are deferred to the balance sheet to the extent they relate to a specific project and the Company has concluded that is probable that the contract will be awarded for more than the amount deferred. Pre-contract cost deferrals are common with Vista's business pursuits. As described in Note 3 Summary of Significant Accounting Policies, Vista has been pursuing international opportunities and was in the process of negotiating a large international contract that did not materialize in the fiscal 2016 third quarter as expected. Expectations were lowered as the timing and likelihood of completing certain international pursuits became less certain. While the Company continues to pursue international opportunities, it is not likely that major contracts will be successfully executed within the next twelve months as previously expected. Corresponding to these lower expectations, the pre-contract costs associated with these pursuits were written off during the fiscal 2016 third quarter. Vista recorded a charge of $2,933 , (which is comprised of $2,075 of costs capitalized as of July 31, 2015 and additional costs of $858 capitalized during August and September 2015) for the write-off of these pre-contract costs. This charge is recorded in “Cost of sales” in the Consolidated Statements of Income and Comprehensive Income. Goodwill Impairment Loss In the fiscal 2016 third quarter the Company determined that a triggering event occurred for its Vista reporting unit, a subsidiary of the Aerostar division. The triggering event was caused by the lowering of financial expectations for sales and operating income of the reporting unit due to delays and uncertainties regarding the reporting unit’s pursuit of large international opportunities, one of which was expected to be awarded during the quarter. In addition, the Company made a change in the executive leadership of the reporting unit during the quarter. The Step 1 impairment analysis was completed using fair value techniques as of October 31, 2015. In determining the estimated fair value of the Vista reporting unit, the Company was required to estimate a number of factors, including projected revenue growth rates, projected operating results, terminal growth rates, economic conditions, anticipated future cash flows, and the discount rate. On the basis of these estimates, the October 31, 2015 analysis indicated that the estimated fair value of the Vista reporting unit was less than the carrying value. The carrying value exceeded the estimated fair value by $13,986 , or 63.6% . Pursuant to the applicable accounting guidance, the Company performed a Step 2 impairment analysis. In the Step 2 impairment analysis, the fair value determined was allocated to the assets and liabilities of the reporting unit. Based on this Step 2 impairment analysis, the resulting implied fair value of the Vista goodwill was determined to have no value compared to the carrying value recorded for the reporting unit, $11,497 . This $11,497 shortfall was recorded in the current quarter as an impairment charge to operating income reported as "Goodwill impairment loss" in the Consolidated Statements of Income and Comprehensive Income. There were no goodwill impairment losses reported in the three- or nine-month periods ended October 31, 2014 nor were there any accumulated goodwill impairment losses prior to October 31, 2015. Goodwill gross and net of accumulated impairment losses at October 31, 2015 was $52,209 and $40,712 , respectively. Goodwill gross and net of accumulated impairment losses at October 31, 2014 was $25,234 . The changes in the carrying amount of goodwill by reporting unit are shown below: Applied Technology Engineered Films Aerostar (exc. Vista) Vista Total Balance at January 31, 2015 $ 12,550 $ 27,312 $ 789 $ 11,497 $ 52,148 Purchase price adjustment to acquired goodwill (a) — 206 — — 206 Goodwill disposed from sale of business (69 ) — — — (69 ) Goodwill impairment loss (as restated) — — — (11,497 ) (11,497 ) Foreign currency translation adjustment (76 ) — — — (76 ) Balance at October 31, 2015 (as restated) $ 12,405 $ 27,518 $ 789 $ — $ 40,712 (a) Working capital adjustment and final deferred tax adjustment for Integra acquisition (see Note 6 Acquisitions of and Investments in Businesses and Technologies). Long-lived Intangibles Impairment Loss Pursuant to the applicable accounting guidance, the Company determined that the relevant cash flows for long-lived asset testing (the lowest level of cash flows that are largely independent of other groups of assets) are one level below the Vista reporting unit. For Vista, these levels were determined to be an asset group identified for the client private business (CP) and a second group for radar products and services (Radar). While these groups have financial dependence on each other and enable the other to operate in their respective markets of focus, there is little strategic or business interdependence. The two groups have few shared resources, assets or facilities, and long-lived assets are readily identifiable for each asset group. Based on the reassessment of the forecasts of cash flows and these asset groups, the Company concluded that certain long-lived assets of the Vista reporting unit, including finite-lived intangible assets, were impaired as of October 31, 2015. Using the sum of the undiscounted cash flows associated with each of the two asset groups, a Step 1 test was performed for each asset group. The undiscounted cash flows for the CP asset group exceeded the carrying value of the long-lived assets and no Step 2 test was deemed to be necessary based on the recoverability of the long-lived assets. For the Radar asset group, however, the undiscounted cash flows did not exceed the carrying value of the long-lived assets and the Company performed a Step 2 impairment analysis for the long-lived assets. In the Step 2 impairment analysis, the fair value determined was allocated to the assets and liabilities of the Radar asset group. The resulting implied fair value of the Radar asset group long-lived assets was $103 compared to the carrying value of $3,916 for the asset group. The shortfall of $3,813 was recorded in the current quarter as an impairment charge to operating income reported as "Long-lived asset impairment loss" in the Consolidated Statements of Income and Comprehensive Income. Of the total long-lived asset impairment of $3,813 , $3,154 was related to amortizable intangible assets related to radar technology and radar customers, $554 was related to property, plant, and equipment, and $105 was related to patents. There were no long-lived intangible impairment losses reported in the three- or nine-month periods ended October 31, 2014 nor were there any accumulated long-lived intangible impairment losses prior to October 31, 2015. |
Employee Postretirement Benefit
Employee Postretirement Benefits | 9 Months Ended |
Oct. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Postretirement Benefits | EMPLOYEE POSTRETIREMENT BENEFITS The Company provides postretirement medical and other benefits to senior executive officers and senior managers. These plan obligations are unfunded. On August 25, 2015 the Company amended the employment agreements with five of its senior executive officers eliminating the postretirement medical benefits to these individuals and their spouses. In consideration of eliminating this retiree benefit, the senior executive officers received lump sum payments in amounts ranging from $8 to $15 based on each officer’s years of service to the Company. The Company’s current senior executive officers that either already qualified for retirement or had twenty or more years of service to the Company are still eligible for benefits under their employment agreements. The reduction in active plan participants was accounted for as a negative plan amendment and eliminated the accrual for defined benefits for future services from these individuals and resulted in the subsequent remeasurement of the Company's benefit obligation as of August 31, 2015. The effect of the August 31, 2015 remeasurement of the benefit obligation is as follows: Benefit obligation at January 31, 2015 $ 12,125 Service cost 252 Interest cost 244 Prior service (credit) due to plan amendment (958 ) Actuarial (gain) due to assumption changes (3,403 ) Retiree benefits paid (89 ) Benefit obligation at August 31, 2015 $ 8,171 Fair value of plan assets — Funded status at August 31, 2015 $ (8,171 ) Net actuarial loss in accumulated other comprehensive income 2,710 Unrecognized prior service (credit) (958 ) Accrued postretirement benefit cost at August 31, 2015 $ (6,419 ) The actuarial gain from assumptions changes is primarily the result of an increase in the discount rate at the measurement date. The discount rate is based on matching rates of return on high-quality fixed-income investments with the timing and amount of expected benefit payments. Medical trend rates were developed using a combination of a trend survey and a trend rate model. For the years 2015 through 2017, the rates are based on survey data and client market expectations. The trend rate model was then used to determine the trend rates between the years 2017 through 2030, based on reasonable macro-economic assumptions for the growth of health care expenditures during this period relative to the general economy. The assumptions used to measure the benefit obligation were as follows: Assumptions used to calculate benefit obligation: Measurement date August 31, 2015 January 31, 2015 Discount rate 4.25 % 3.50 % Wage inflation rate 4.00 % 4.00 % Average remaining years of service 15.14 16.05 Health care cost trend rates: Health care cost trend rate assumed for next year 7.00 % 7.20 % Ultimate health care cost trend rate 4.50 % 5.00 % Year that the rate reaches the ultimate trend rate 2030 2025 The negative plan amendment and assumption changes will reduce the net periodic benefit cost for fiscal year 2016 by approximately $300 compared to the amount expected prior to the remeasurement. The components of the net periodic benefit cost for postretirement benefits are as follows: Three Months Ended Nine Months Ended October 31, October 31, October 31, October 31, Service cost $ 49 $ 49 $ 265 $ 147 Interest cost 92 91 302 274 Amortization of actuarial losses 38 38 206 114 Net periodic benefit cost $ 179 $ 178 $ 773 $ 535 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 | 9 Months Ended |
Oct. 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 Nine Months Ended October 31, October 31, October 31, October 31, Beginning balance $ 1,752 $ 2,617 $ 3,120 $ 2,525 Accrual for warranties 571 676 1,319 2,065 Settlements made (684 ) (837 ) (2,800 ) (2,134 ) Ending balance $ 1,639 $ 2,456 $ 1,639 $ 2,456 |
Financing Arrangements
Financing Arrangements | 9 Months Ended |
Oct. 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 . Unamortized debt issuance costs associated with this Credit Agreement were $489 at October 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 October 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 expects to have these outstanding letters of credit issued under the 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/A. |
Contingencies
Contingencies | 9 Months Ended |
Oct. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | CONTINGENCIES In the normal course of business, the Company is subject to various claims and litigation. The Company has concluded that the ultimate outcome of these matters is not expected to be significant to the Company’s results of operations, financial position, or cash flows. |
Income Taxes Income Taxes
Income Taxes Income Taxes | 9 Months Ended |
Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company’s effective tax rate varies from the federal statutory rate primarily due to state and local taxes, tax-exempt captive insurance premiums, and tax benefits on qualified production activities. The Company’s effective tax rates for the nine -month periods ended October 31, 2015 and 2014 were 13.9% and 31.2% , respectively. The 17.3 percentage point decrease in the fiscal 2016 effective rate is primarily due to the relationship between significantly lower pretax income in fiscal 2016 than fiscal 2015 and relatively large permanent tax benefits in fiscal 2016. As of October 31, 2015, undistributed earnings of approximately $1,720 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 $270 net of foreign tax credits. |
Restructuring Costs
Restructuring Costs | 9 Months Ended |
Oct. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | 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 weighted to Applied Technology as a result of the 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 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 $588 in the nine-month period ended October 31, 2015 . This restructuring plan was completed during fiscal 2016 second quarter so no costs were incurred related to this restructuring plan in the three-month period ended October 31, 2015 and there were no unpaid costs at October 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 nine-month periods ended October 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 $611 were recorded in the nine-month period ended October 31, 2015 . There were no gains recorded in the three-month period ended October 31, 2015 . Receivables for inventory and estimated future royalties pursuant to the sale agreements were $420 and were reflected in "Other current assets" in the Consolidated Balance Sheet at October 31, 2015 . Aerostar Division (Vista) Restructuring Plan In addition to the restructuring plan announced in first quarter, the Company's Aerostar segment implemented a restructuring plan at Vista in October 2015 due to reduced demand expectations primarily related to delays and uncertainty surrounding international pursuits. The lower cost structure will preserve the Company's capabilities to pursue domestic and international opportunities for Vista's radar products and technology. Vista incurred restructuring costs for severance benefits of $73 in the three- and nine-month periods ended October 31, 2015 . The restructuring plan was implemented late in third quarter so virtually all of these costs were unpaid at October 31, 2015 . The Company reported $58 of this expense in "Cost of sales" and the remaining $15 in "Research and development expenses" in the Consolidated Statements of Income and Comprehensive Income. In addition to these restructuring costs, Vista incurred a goodwill impairment loss, a long-lived asset impairment loss, and a write-off of some deferred pre-contract costs. These one-time charges are further described in Note 7 Goodwill and Long-lived Asset Impairment Loss and Other Charges . Vista incurred no restructuring costs in the three- or nine-month periods ended October 31, 2014 . |
Dividends and Treasury Stock
Dividends and Treasury Stock | 9 Months Ended |
Oct. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Dividends and Treasury Stock | DIVIDENDS AND TREASURY STOCK Dividends paid to Raven shareholders for the three and nine months ended October 31, 2015 were $4,764 and $14,598 , or 13.0 cents and 39.0 cents per share, respectively. Dividends paid to Raven shareholders for the three and nine months ended October 31, 2014 were $4,745 and $13,492 , or 13.0 cents and 37.0 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 Company repurchased 1,052,587 and 1,602,545 shares in the three- and nine-month periods ended October 31, 2015, respectively. These purchases totaled $18,513 and $29,338 , respectively. The remaining dollar value that may be purchased under the plan at October 31, 2015 is $10,662 . |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Oct. 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 nine months ended October 31, 2015 and October 31, 2014 . Stock Option Awards The Company granted 289,600 and 194,900 non-qualified stock options during the nine -month periods ended October 31, 2015 and 2014, respectively. None of these options were granted during the three-month periods ended October 31, 2015 or October 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: Nine Months Ended October 31, 2015 October 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 27,696 and 19,040 time-vested RSUs to employees in the nine -month periods ended October 31, 2015 and 2014 , respectively. The Company granted 8,446 awards in the three-month period ended October 31, 2015. There were no awards granted during the three-month period ended October 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 weighted average grant date fair value per share of the time-vested RSUs granted in the nine months ended October 31, 2015 was $19.90 . The weighted average grant date fair value per share of the time-vested RSUs granted for the nine-month period ended October 31, 2014 was $32.75 . 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 nine -month period ended October 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 nine -month periods ended October 31, 2015 and 2014 , the Company granted 68,570 and 54,490 performance-based RSUs, respectively. None of the performance-based RSUs were granted in the three-month period ended October 31, 2015 or October 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 | 9 Months Ended |
Oct. 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 Nine Months Ended October 31, 2015 (As Restated) October 31, October 31, 2015 (As Restated) October 31, Net sales Applied Technology Division $ 21,344 $ 33,161 $ 74,165 $ 115,696 Engineered Films Division 36,919 41,249 104,029 125,755 Aerostar Division 9,456 19,257 27,338 56,179 Intersegment eliminations (a) (108 ) (2,375 ) (130 ) (9,343 ) Consolidated net sales $ 67,611 $ 91,292 $ 205,402 $ 288,287 Operating income (loss) Applied Technology Division (b) $ 3,299 $ 6,447 $ 16,081 $ 31,132 Engineered Films Division 6,145 5,486 15,981 17,165 Aerostar Division (c) (15,474 ) 3,027 (15,013 ) 4,666 Intersegment eliminations (a) 9 134 93 114 Total reportable segment income (6,021 ) 15,094 17,142 53,077 Administrative and general expenses (3,802 ) (4,935 ) (13,322 ) (15,690 ) Consolidated operating (loss) income $ (9,823 ) $ 10,159 $ 3,820 $ 37,387 (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 $611 for the nine-month period ended October 31, 2015 on disposal of assets related to the exit of contract manufacturing operations. (c) The three- and nine-month periods ended October 31, 2015 include pre-contract cost write-offs of $2,933 (which is comprised of $2,075 of costs capitalized as of July 31, 2015 and additional costs of $858 capitalized during August and September 2015), a goodwill impairment loss of $11,497 , a long-lived asset impairment loss of $3,813 , and a reduction of $2,273 of an acquisition-related contingent liability for Vista as a result of changes in expected sales and cash flows. |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Oct. 31, 2015 | |
Accounting Policies [Abstract] | |
New Accounting Standards | 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 was amended on August 25, 2015. As a result of this plan amendment, the Company elected the practical expedient pursuant to this guidance and a valuation was completed using an August 31, 2015 measurement date. 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. In August 2015 the FASB issued ASU No. 2015-15 "Interest—Imputation of Interest (Subtopic 835-30) Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements" (ASU 2015-15). The guidance in ASU 2015-03 does not address presentation or subsequent measurement of debt issuance costs related to line of credit arrangements. Given the absence of authoritative guidance, in ASU 2015-15, issued in August 2015, FASB adopted SEC staff comments that they would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangement. ASU 2015-03 and 2015-15 are both 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 and ASU 2015-15 in fiscal 2016 third 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 the credit facility discussed further in Note 10 Financing Arrangements have been presented as an asset and are being amortized ratably over the term of the line of credit arrangement. The adoption of this guidance did not have an impact on the Company's results of operations for the period. 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, second and third 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 November 2015 the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes" (ASU 2015-17). Current GAAP requires the deferred taxes for each jurisdiction (or tax-paying component of a jurisdiction) to be presented as a net current asset or liability and net noncurrent asset or liability. This requires a jurisdiction-by-jurisdiction analysis based on the classification of the assets and liabilities to which the underlying temporary differences relate, or, in the case of loss or credit carryforwards, based on the period in which the attribute is expected to be realized. Any valuation allowance is then required to be allocated on a pro rata basis, by jurisdiction, between current and noncurrent deferred tax assets. To simplify presentation, ASU 2015-17 requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. As a result, each jurisdiction will now only have one net noncurrent deferred tax asset or liability. The guidance does not change the existing requirement that only permits offsetting within a jurisdiction - that is, companies are still prohibited from offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016. The Company may apply the standard either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early adoption is permitted. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial statements and working capital. In September 2015 the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805) Simplifying the Accounting for Measurement-Period Adjustments" (ASU 2015-16). The amendments in ASU 2015-16 apply to all entities that have reported provisional amounts for items in a business combination for which the accounting is incomplete by the end of the reporting period in which the combination occurs and, during the measurement period, have an adjustment to provisional amounts recognized. ASU 2015-16 requires that an acquirer in a business combination recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 requires that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this update require an entity to present separately on the face of the income statement, or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. ASU 2015-16 is to be applied prospectively to adjustments to provisional amounts that occur after the effective date of the update with earlier application permitted for financial statements that have not been issued. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial statements, results of operations, and disclosures. 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 clarify that 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 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 may be 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 August 2015, the FASB approved a one-year deferral of the effective date (ASU 2015-14) 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. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 31, 2015 | |
Accounting Policies [Abstract] | |
Depreciation, Depletion, and Amortization Policy | 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. |
Goodwill and Intangible Assets Policy | As also 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). In the fiscal 2016 second quarter the Company performed a Step 1 impairment analysis using fair value techniques on the Engineered Films reporting unit as a result of changes in market conditions indicating that goodwill might be impaired. 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. |
New Accounting Standards Policy | 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 was amended on August 25, 2015. As a result of this plan amendment, the Company elected the practical expedient pursuant to this guidance and a valuation was completed using an August 31, 2015 measurement date. 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. In August 2015 the FASB issued ASU No. 2015-15 "Interest—Imputation of Interest (Subtopic 835-30) Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements" (ASU 2015-15). The guidance in ASU 2015-03 does not address presentation or subsequent measurement of debt issuance costs related to line of credit arrangements. Given the absence of authoritative guidance, in ASU 2015-15, issued in August 2015, FASB adopted SEC staff comments that they would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangement. ASU 2015-03 and 2015-15 are both 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 and ASU 2015-15 in fiscal 2016 third 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 the credit facility discussed further in Note 10 Financing Arrangements have been presented as an asset and are being amortized ratably over the term of the line of credit arrangement. The adoption of this guidance did not have an impact on the Company's results of operations for the period. 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, second and third 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 November 2015 the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes" (ASU 2015-17). Current GAAP requires the deferred taxes for each jurisdiction (or tax-paying component of a jurisdiction) to be presented as a net current asset or liability and net noncurrent asset or liability. This requires a jurisdiction-by-jurisdiction analysis based on the classification of the assets and liabilities to which the underlying temporary differences relate, or, in the case of loss or credit carryforwards, based on the period in which the attribute is expected to be realized. Any valuation allowance is then required to be allocated on a pro rata basis, by jurisdiction, between current and noncurrent deferred tax assets. To simplify presentation, ASU 2015-17 requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. As a result, each jurisdiction will now only have one net noncurrent deferred tax asset or liability. The guidance does not change the existing requirement that only permits offsetting within a jurisdiction - that is, companies are still prohibited from offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016. The Company may apply the standard either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early adoption is permitted. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial statements and working capital. In September 2015 the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805) Simplifying the Accounting for Measurement-Period Adjustments" (ASU 2015-16). The amendments in ASU 2015-16 apply to all entities that have reported provisional amounts for items in a business combination for which the accounting is incomplete by the end of the reporting period in which the combination occurs and, during the measurement period, have an adjustment to provisional amounts recognized. ASU 2015-16 requires that an acquirer in a business combination recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 requires that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this update require an entity to present separately on the face of the income statement, or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. ASU 2015-16 is to be applied prospectively to adjustments to provisional amounts that occur after the effective date of the update with earlier application permitted for financial statements that have not been issued. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial statements, results of operations, and disclosures. 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 clarify that 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 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 may be 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 August 2015, the FASB approved a one-year deferral of the effective date (ASU 2015-14) 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. |
Restatement of the Unaudited 27
Restatement of the Unaudited Consolidated Financial Statements (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Effects of Restatements on Financial Statements | The effects of the restatement on the Company's unaudited consolidated balance sheets as of October 31, 2015 are as follows (in thousands): October 31, 2015 Consolidated Balance Sheets (unaudited): As Previously Reported Restatement Adjustments As Restated Inventories $ 48,624 $ 12 $ 48,636 Total current assets 126,665 12 126,677 Property, plant and equipment, net 117,760 (554 ) 117,206 Goodwill 44,796 (4,084 ) 40,712 Amortizable intangible assets, net 16,586 (3,259 ) 13,327 Total assets 309,666 (7,885 ) 301,781 Accrued liabilities 11,906 (309 ) 11,597 Total current liabilities 19,973 (309 ) 19,664 Other liabilities 17,057 (2,546 ) 14,511 Paid-in capital 54,342 (423 ) 53,919 Retained earnings 236,922 (4,607 ) 232,315 Total Raven Industries, Inc. shareholders' equity 272,544 (5,030 ) 267,514 Total shareholders' equity 272,636 (5,030 ) 267,606 Total liabilities and shareholders' equity 309,666 (7,885 ) 301,781 The effects of the restatement on the Company's unaudited consolidated statements of income and comprehensive income for the three and nine months ended October 31, 2015 are as follows (in thousands): Three Months Ended October 31, 2015 Nine Months Ended October 31, 2015 Consolidated Statements of Income and Comprehensive Income (unaudited): As Previously Reported Restatement Adjustments As Restated As Previously Reported Restatement Adjustments As Restated Cost of sales $ 51,440 $ (801 ) $ 50,639 $ 151,014 $ (801 ) $ 150,213 Gross profit 16,171 801 16,972 54,388 801 55,189 Goodwill impairment loss 7,413 4,084 11,497 7,413 4,084 11,497 Long-lived asset impairment loss — 3,813 3,813 — 3,813 3,813 Operating (loss) income (2,727 ) (7,096 ) (9,823 ) 10,916 (7,096 ) 3,820 (Loss) income before income taxes (2,850 ) (7,096 ) (9,946 ) 10,483 (7,096 ) 3,387 Income taxes (benefit) provision (1,291 ) (2,489 ) (3,780 ) 2,960 (2,489 ) 471 Net (loss) income (1,559 ) (4,607 ) (6,166 ) 7,523 (4,607 ) 2,916 Net (loss) income attributable to Raven Industries, Inc. (1,581 ) (4,607 ) (6,188 ) 7,465 (4,607 ) 2,858 Net (loss) income per common share: ─ Basic (0.04 ) (0.13 ) (0.17 ) 0.20 (0.12 ) 0.08 ─ Diluted (0.04 ) (0.13 ) (0.17 ) 0.20 (0.12 ) 0.08 Comprehensive income (loss) 1,237 (4,607 ) (3,370 ) 10,346 (4,607 ) 5,739 Comprehensive income attributable to Raven Industries, Inc. 1,215 (4,607 ) (3,392 ) 10,288 (4,607 ) 5,681 The effects of the restatement on the Company's consolidated statements of shareholders' equity as of and for the nine months ended October 31, 2015 are as follows (in thousands): Nine Months Ended October 31, 2015 Consolidated Statements of Shareholders' Equity (unaudited): As Previously Reported Restatement Adjustments As Restated Net income 7,523 (4,607 ) 2,916 Income tax impact related to share-based compensation (267 ) (423 ) (690 ) Total shareholders' equity as of October 31, 2015 272,636 (5,030 ) 267,606 The effects of the restatement on the Net Cash provided by operating activities of the Company's unaudited consolidated statements of cash flows for the nine months ended October 31, 2015 are as follows (in thousands): Nine Months Ended October 31, 2015 Consolidated Statements of Cash Flows (unaudited): As Previously Reported Restatement Adjustments As Restated Net income $ 7,523 $ (4,607 ) $ 2,916 Change in fair value of acquisition-related contingent consideration (930 ) (790 ) (1,720 ) Goodwill impairment loss 7,413 4,084 11,497 Long-lived asset impairment loss — 3,813 3,813 Deferred income taxes (4,765 ) (1,920 ) (6,685 ) Change in inventories 4,832 (12 ) 4,820 Operating liabilities (12,012 ) (568 ) (12,580 ) Net cash provided by operating activities 35,181 — 35,181 There were no impacts to Net cash used in investing activities or Net cash used in financing activities within our consolidated statement of cash flows nor was there an impact on the Net (decrease) increase in cash and cash equivalents resulting from restatement. The impacts of the restatements have been reflected throughout these unaudited financial statements, including the applicable footnotes, as appropriate. As the Company has been unable to timely file its Quarterly Reports on Form 10-Q for the three and six months ended July 31, 2016 and the three and nine months ended October 31, 2016, the Company is currently non-compliant with NASDAQ Listing Rule 5250(c)(1). In addition, the Company has requested and received covenant waivers from its lenders related to its credit agreement due to its late filing of financial statement information during fiscal 2017 . |
Net (Loss) Income per Share (Ta
Net (Loss) Income per Share (Tables) | 9 Months Ended |
Oct. 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 Nine Months Ended October 31, 2015 (As Restated) October 31, October 31, 2015 (As Restated) October 31, Anti-dilutive options and restricted stock units 1,216,318 846,205 1,150,227 574,631 |
Schedule of calculation of numerator and denominator in earnings per share | The computation of earnings per share is presented below: Three Months Ended Nine Months Ended October 31, 2015 (As Restated) October 31, October 31, 2015 (As Restated) October 31, Numerator: Net (loss) income attributable to Raven Industries, Inc. $ (6,188 ) $ 6,783 $ 2,858 $ 25,540 Denominator: Weighted average common shares outstanding 36,785,140 36,499,018 37,481,675 36,462,441 Weighted average stock units outstanding 92,470 68,721 84,597 69,616 Denominator for basic calculation 36,877,610 36,567,739 37,566,272 36,532,057 Weighted average common shares outstanding 36,785,140 36,499,018 37,481,675 36,462,441 Weighted average stock units outstanding 92,470 68,721 84,597 69,616 Dilutive impact of stock options and restricted stock units — 165,504 47,773 188,713 Denominator for diluted calculation 36,877,610 36,733,243 37,614,045 36,720,770 Net (loss) income per share - basic $ (0.17 ) $ 0.19 $ 0.08 $ 0.70 Net (loss) income per share - diluted $ (0.17 ) $ 0.18 $ 0.08 $ 0.70 |
Selected Balance Sheet Inform29
Selected Balance Sheet Information (Tables) | 9 Months Ended |
Oct. 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: October 31, 2015 (As Restated) January 31, 2015 October 31, 2014 Accounts receivable, net: Trade accounts $ 40,062 $ 56,895 $ 54,889 Allowance for doubtful accounts (769 ) (319 ) (356 ) $ 39,293 $ 56,576 $ 54,533 Inventories: Finished goods $ 5,211 $ 8,127 $ 7,981 In process 2,157 1,317 2,063 Materials 41,268 45,708 41,756 $ 48,636 $ 55,152 $ 51,800 Other current assets: Insurance policy benefit $ 728 $ 733 $ 517 Federal tax receivable — 713 — Receivable from sale of business 420 — — Prepaid expenses and other 1,767 1,648 2,364 $ 2,915 $ 3,094 $ 2,881 Property, plant and equipment, net: Held for use: Land $ 2,974 $ 3,246 $ 2,077 Buildings and improvements 76,775 78,140 69,353 Machinery and equipment 138,921 131,766 124,057 Accumulated depreciation (102,263 ) (96,545 ) (95,118 ) Accumulated impairment losses (554 ) — — $ 115,853 $ 116,607 $ 100,369 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 — $ 117,206 $ 117,513 $ 100,369 Other assets, net: Investment in affiliate $ 2,720 $ 3,217 $ 3,175 Other, net 1,139 526 559 $ 3,859 $ 3,743 $ 3,734 Accrued liabilities: Salaries and related $ 1,177 $ 4,063 $ 1,875 Benefits 3,925 5,001 5,778 Insurance obligations 1,852 1,590 1,426 Warranties 1,639 3,120 2,456 Income taxes 748 536 1,140 Other taxes 977 1,240 1,052 Acquisition-related contingent consideration 448 1,375 1,191 Other 831 2,262 2,004 $ 11,597 $ 19,187 $ 16,922 Other liabilities: Postretirement benefits $ 7,898 $ 11,812 $ 8,264 Acquisition-related contingent consideration 1,483 3,631 3,587 Deferred income taxes 2,205 7,091 1,406 Uncertain tax positions 2,925 3,259 7,175 $ 14,511 $ 25,793 $ 20,432 |
Goodwill and Long-Lived Asset30
Goodwill and Long-Lived Asset Impairment Loss and Other Charges (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill by reporting unit are shown below: Applied Technology Engineered Films Aerostar (exc. Vista) Vista Total Balance at January 31, 2015 $ 12,550 $ 27,312 $ 789 $ 11,497 $ 52,148 Purchase price adjustment to acquired goodwill (a) — 206 — — 206 Goodwill disposed from sale of business (69 ) — — — (69 ) Goodwill impairment loss (as restated) — — — (11,497 ) (11,497 ) Foreign currency translation adjustment (76 ) — — — (76 ) Balance at October 31, 2015 (as restated) $ 12,405 $ 27,518 $ 789 $ — $ 40,712 (a) Working capital adjustment and final deferred tax adjustment for Integra acquisition (see Note 6 Acquisitions of and Investments in Businesses and Technologies). |
Employee Postretirement Benef31
Employee Postretirement Benefits Employee Postretirement Benefits (Tables) | 9 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||
Schedule of Accumulated and Projected Benefit Obligations | The effect of the August 31, 2015 remeasurement of the benefit obligation is as follows: Benefit obligation at January 31, 2015 $ 12,125 Service cost 252 Interest cost 244 Prior service (credit) due to plan amendment (958 ) Actuarial (gain) due to assumption changes (3,403 ) Retiree benefits paid (89 ) Benefit obligation at August 31, 2015 $ 8,171 Fair value of plan assets — Funded status at August 31, 2015 $ (8,171 ) Net actuarial loss in accumulated other comprehensive income 2,710 Unrecognized prior service (credit) (958 ) Accrued postretirement benefit cost at August 31, 2015 $ (6,419 ) | |
Schedule of Assumptions Used | The assumptions used to measure the benefit obligation were as follows: Assumptions used to calculate benefit obligation: Measurement date August 31, 2015 January 31, 2015 Discount rate 4.25 % 3.50 % Wage inflation rate 4.00 % 4.00 % Average remaining years of service 15.14 16.05 Health care cost trend rates: Health care cost trend rate assumed for next year 7.00 % 7.20 % Ultimate health care cost trend rate 4.50 % 5.00 % Year that the rate reaches the ultimate trend rate 2030 2025 | |
Components of net periodic benefit cost for postretirement plan | The components of the net periodic benefit cost for postretirement benefits are as follows: Three Months Ended Nine Months Ended October 31, October 31, October 31, October 31, Service cost $ 49 $ 49 $ 265 $ 147 Interest cost 92 91 302 274 Amortization of actuarial losses 38 38 206 114 Net periodic benefit cost $ 179 $ 178 $ 773 $ 535 |
Warranties (Tables)
Warranties (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Product Warranties Disclosures [Abstract] | |
Warranties | Changes in the warranty accrual were as follows: Three Months Ended Nine Months Ended October 31, October 31, October 31, October 31, Beginning balance $ 1,752 $ 2,617 $ 3,120 $ 2,525 Accrual for warranties 571 676 1,319 2,065 Settlements made (684 ) (837 ) (2,800 ) (2,134 ) Ending balance $ 1,639 $ 2,456 $ 1,639 $ 2,456 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Oct. 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: Nine Months Ended October 31, 2015 October 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) | 9 Months Ended |
Oct. 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 Nine Months Ended October 31, 2015 (As Restated) October 31, October 31, 2015 (As Restated) October 31, Net sales Applied Technology Division $ 21,344 $ 33,161 $ 74,165 $ 115,696 Engineered Films Division 36,919 41,249 104,029 125,755 Aerostar Division 9,456 19,257 27,338 56,179 Intersegment eliminations (a) (108 ) (2,375 ) (130 ) (9,343 ) Consolidated net sales $ 67,611 $ 91,292 $ 205,402 $ 288,287 Operating income (loss) Applied Technology Division (b) $ 3,299 $ 6,447 $ 16,081 $ 31,132 Engineered Films Division 6,145 5,486 15,981 17,165 Aerostar Division (c) (15,474 ) 3,027 (15,013 ) 4,666 Intersegment eliminations (a) 9 134 93 114 Total reportable segment income (6,021 ) 15,094 17,142 53,077 Administrative and general expenses (3,802 ) (4,935 ) (13,322 ) (15,690 ) Consolidated operating (loss) income $ (9,823 ) $ 10,159 $ 3,820 $ 37,387 (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 $611 for the nine-month period ended October 31, 2015 on disposal of assets related to the exit of contract manufacturing operations. (c) The three- and nine-month periods ended October 31, 2015 include pre-contract cost write-offs of $2,933 (which is comprised of $2,075 of costs capitalized as of July 31, 2015 and additional costs of $858 capitalized during August and September 2015), a goodwill impairment loss of $11,497 , a long-lived asset impairment loss of $3,813 , and a reduction of $2,273 of an acquisition-related contingent liability for Vista as a result of changes in expected sales and cash flows. |
Basis of Presentation and Pri35
Basis of Presentation and Principles of Consolidation (Details) | 9 Months Ended |
Oct. 31, 2015segment | |
Organization, Consolidation and Presentation of Financial Statements Line Items [Line Items] | |
Number of operating units | 3 |
Aerostar Integrated Systems [Member] | |
Organization, Consolidation and Presentation of Financial Statements Line Items [Line Items] | |
Joint venture, ownership percentage | 75.00% |
Restatement of the Unaudited 36
Restatement of the Unaudited Consolidated Financial Statements (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | Jan. 31, 2012 | Jan. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Long-lived asset impairment loss | $ 3,813,000 | $ 0 | $ 3,813,000 | $ 0 | ||
Goodwill impairment loss | 11,497,000 | 0 | 11,497,000 | 0 | ||
income tax expense (benefit) | 3,780,000 | (3,290,000) | (471,000) | (11,599,000) | ||
Increase (decrease) in accrued liabilities | (11,597,000) | (16,922,000) | (11,597,000) | (16,922,000) | $ (19,187,000) | |
Increase (decrease) in other liabilities | (14,511,000) | (20,432,000) | (14,511,000) | (20,432,000) | (25,793,000) | |
Increase (decrease) in other liabilities, Deferred Taxes | 2,205,000 | 1,406,000 | 2,205,000 | 1,406,000 | 7,091,000 | |
Increase (decrease) in Liability for Uncertaint Tax Positions, Noncurrent | (2,925,000) | (7,175,000) | (2,925,000) | (7,175,000) | (3,259,000) | |
Increase (decrease) in Paid-in capital | (53,919,000) | (14,579,000) | (53,919,000) | (14,579,000) | (53,237,000) | |
Increase (decrease) in Inventory | (48,636,000) | (51,800,000) | (48,636,000) | (51,800,000) | $ (55,152,000) | |
Increase (Decrease) in Cost of sales | (50,639,000) | (66,953,000) | (150,213,000) | (206,524,000) | ||
Increase (decrease) in Net Cash Provided by (Used in) Investing Activities | 8,966,000 | 18,112,000 | ||||
Increase (decrease) in Net Cash Provided by (Used in) Financing Activities | $ 45,865,000 | 14,046,000 | ||||
Debt Instrument, Covenant Compliance | In addition, the Company has requested and received covenant waivers from its lenders related to its credit agreement due to its late filing of financial statement information during fiscal 2017 | |||||
Correction of Immaterial Errors [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Increase (decrease) in Inventory | (12,000) | $ (12,000) | ||||
Increase (Decrease) in Cost of sales | (12,000) | |||||
Adjustment for Tax Balance [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
income tax expense (benefit) | (2,489,000) | (2,489,000) | ||||
Increase (decrease) in accrued liabilities | (265,000) | (265,000) | ||||
Increase (decrease) in other liabilities, Deferred Taxes | (1,460,000) | (1,460,000) | ||||
Increase (decrease) in Paid-in capital | (423,000) | (423,000) | ||||
Adjustments to cash flows [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Increase (decrease) in Net Cash Provided by (Used in) Investing Activities | 0 | |||||
Increase (decrease) in Net Cash Provided by (Used in) Financing Activities | $ 0 | |||||
Vista Research [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Business acquisition contingent consideration payments period | 7 years | 7 years | ||||
Vista Reporting Unit [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Long-lived asset impairment loss | 3,813,000 | $ 3,813,000 | ||||
Goodwill impairment loss | 11,497,000 | $ 0 | 11,497,000 | $ 0 | ||
Vista Reporting Unit [Member] | Adjustment for Goodwill Impairment [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Goodwill impairment loss | 4,084,000 | 4,084,000 | ||||
Vista Reporting Unit [Member] | Radar Technology, Radar Customers, and Patents [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Long-lived asset impairment loss | 3,259,000 | 3,259,000 | ||||
Vista Reporting Unit [Member] | Property, Plant and Equipment [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Long-lived asset impairment loss | 554,000 | 554,000 | ||||
Vista Research [Member] | Adjustment for Fair Value of Contingent Consideration Liability [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Increase (decrease) in accrued liabilities | (44,000) | (44,000) | ||||
Increase (decrease) in other liabilities | (746,000) | (746,000) | ||||
Increase (Decrease) in Cost of sales | (790,000) | (790,000) | ||||
Vista Research [Member] | Adjustments for Inventories [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Increase (decrease) in Liability for Uncertaint Tax Positions, Noncurrent | $ (340,000) | $ (340,000) |
Restatement of the Unaudited 37
Restatement of the Unaudited Consolidated Financial Statements (Balance Sheet Restatement) (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jan. 31, 2014 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Inventories | $ 48,636 | $ 55,152 | $ 51,800 | |
Total current assets | 126,677 | 170,979 | 179,121 | |
Property, plant and equipment, net | 117,206 | 117,513 | 100,369 | |
Goodwill | 40,712 | 52,148 | 25,234 | |
Amortizable intangible assets, net | 13,327 | 18,490 | 9,005 | |
Total assets | 301,781 | 362,873 | 317,463 | |
Accrued liabilities | 11,597 | 19,187 | 16,922 | |
Total current liabilities | 19,664 | 31,843 | 30,076 | |
Other liabilities | 14,511 | 25,793 | 20,432 | |
Paid-in capital | 53,919 | 53,237 | 14,579 | |
Retained earnings | 232,315 | 244,180 | 242,973 | |
Total Raven Industries, Inc. shareholders' equity | 267,514 | 305,153 | 266,897 | |
Total shareholders' equity | 267,606 | 305,237 | 266,955 | $ 251,462 |
Total liabilities and shareholders' equity | 301,781 | $ 362,873 | $ 317,463 | |
As Previously Reported [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Inventories | 48,624 | |||
Total current assets | 126,665 | |||
Property, plant and equipment, net | 117,760 | |||
Goodwill | 44,796 | |||
Amortizable intangible assets, net | 16,586 | |||
Total assets | 309,666 | |||
Accrued liabilities | 11,906 | |||
Total current liabilities | 19,973 | |||
Other liabilities | 17,057 | |||
Paid-in capital | 54,342 | |||
Retained earnings | 236,922 | |||
Total Raven Industries, Inc. shareholders' equity | 272,544 | |||
Total shareholders' equity | 272,636 | |||
Total liabilities and shareholders' equity | 309,666 | |||
Restatement Adjustments [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Inventories | 12 | |||
Total current assets | 12 | |||
Property, plant and equipment, net | (554) | |||
Goodwill | (4,084) | |||
Amortizable intangible assets, net | (3,259) | |||
Total assets | (7,885) | |||
Accrued liabilities | (309) | |||
Total current liabilities | (309) | |||
Other liabilities | (2,546) | |||
Paid-in capital | (423) | |||
Retained earnings | (4,607) | |||
Total Raven Industries, Inc. shareholders' equity | (5,030) | |||
Total shareholders' equity | (5,030) | |||
Total liabilities and shareholders' equity | $ (7,885) |
Restatement of the Unaudited 38
Restatement of the Unaudited Consolidated Financial Statements (Income Statement Restatement) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of sales | $ 50,639 | $ 66,953 | $ 150,213 | $ 206,524 |
Gross profit | 16,972 | 24,339 | 55,189 | 81,763 |
Goodwill impairment loss | 11,497 | 0 | 11,497 | 0 |
Long-lived asset impairment loss | 3,813 | 0 | 3,813 | 0 |
Operating (loss) income | (9,823) | 10,159 | 3,820 | 37,387 |
(Loss) income before income taxes | (9,946) | 10,087 | 3,387 | 37,177 |
Income taxes (benefit) provision | (3,780) | 3,290 | 471 | 11,599 |
Net (loss) income | (6,166) | 6,797 | 2,916 | 25,578 |
Net (loss) income attributable to Raven Industries, Inc. | $ (6,188) | $ 6,783 | $ 2,858 | $ 25,540 |
Net (loss) income per common share: | ||||
Basic (in dollars per share) | $ (0.17) | $ 0.19 | $ 0.08 | $ 0.70 |
Diluted (in dollars per share) | $ (0.17) | $ 0.18 | $ 0.08 | $ 0.70 |
Comprehensive income (loss) | $ (3,370) | $ 6,358 | $ 5,739 | $ 25,064 |
Comprehensive income attributable to Raven Industries, Inc. | (3,392) | $ 6,344 | 5,681 | $ 25,026 |
As Previously Reported [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of sales | 51,440 | 151,014 | ||
Gross profit | 16,171 | 54,388 | ||
Goodwill impairment loss | 7,413 | 7,413 | ||
Long-lived asset impairment loss | 0 | 0 | ||
Operating (loss) income | (2,727) | 10,916 | ||
(Loss) income before income taxes | (2,850) | 10,483 | ||
Income taxes (benefit) provision | (1,291) | 2,960 | ||
Net (loss) income | (1,559) | 7,523 | ||
Net (loss) income attributable to Raven Industries, Inc. | $ (1,581) | $ 7,465 | ||
Net (loss) income per common share: | ||||
Basic (in dollars per share) | $ (0.04) | $ 0.20 | ||
Diluted (in dollars per share) | $ (0.04) | $ 0.20 | ||
Comprehensive income (loss) | $ 1,237 | $ 10,346 | ||
Comprehensive income attributable to Raven Industries, Inc. | 1,215 | 10,288 | ||
Restatement Adjustments [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of sales | (801) | (801) | ||
Gross profit | 801 | 801 | ||
Goodwill impairment loss | 4,084 | 4,084 | ||
Long-lived asset impairment loss | 3,813 | 3,813 | ||
Operating (loss) income | (7,096) | (7,096) | ||
(Loss) income before income taxes | (7,096) | (7,096) | ||
Income taxes (benefit) provision | (2,489) | (2,489) | ||
Net (loss) income | (4,607) | (4,607) | ||
Net (loss) income attributable to Raven Industries, Inc. | $ (4,607) | $ (4,607) | ||
Net (loss) income per common share: | ||||
Basic (in dollars per share) | $ (0.13) | $ (0.12) | ||
Diluted (in dollars per share) | $ (0.13) | $ (0.12) | ||
Comprehensive income (loss) | $ (4,607) | $ (4,607) | ||
Comprehensive income attributable to Raven Industries, Inc. | $ (4,607) | $ (4,607) |
Restatement of the Unaudited 39
Restatement of the Unaudited Consolidated Financial Statements (Restatement of Shareholders' Equity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Net income | $ (6,166) | $ 6,797 | $ 2,916 | $ 25,578 | ||
Income tax impact related to share-based compensation | (690) | 91 | ||||
Total shareholders' equity | 267,606 | $ 266,955 | 267,606 | $ 266,955 | $ 305,237 | $ 251,462 |
As Previously Reported [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Net income | (1,559) | 7,523 | ||||
Income tax impact related to share-based compensation | (267) | |||||
Total shareholders' equity | 272,636 | 272,636 | ||||
Restatement Adjustments [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Net income | (4,607) | (4,607) | ||||
Income tax impact related to share-based compensation | (423) | |||||
Total shareholders' equity | $ (5,030) | $ (5,030) |
Restatement of the Unaudited 40
Restatement of the Unaudited Consolidated Financial Statements (Cash Flows Restatement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net income | $ (6,166) | $ 6,797 | $ 2,916 | $ 25,578 |
Change in fair value of acquisition-related contingent consideration | (1,720) | 514 | ||
Goodwill impairment loss | 11,497 | 0 | 11,497 | 0 |
Long-lived asset impairment loss | 3,813 | $ 0 | 3,813 | 0 |
Deferred income taxes | (6,685) | (2,420) | ||
Change in inventories | 4,820 | 2,768 | ||
Operating liabilities | (12,580) | 1,623 | ||
Net cash provided by operating activities | 35,181 | $ 45,695 | ||
As Previously Reported [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net income | (1,559) | 7,523 | ||
Change in fair value of acquisition-related contingent consideration | (930) | |||
Goodwill impairment loss | 7,413 | 7,413 | ||
Long-lived asset impairment loss | 0 | 0 | ||
Deferred income taxes | (4,765) | |||
Change in inventories | 4,832 | |||
Operating liabilities | (12,012) | |||
Net cash provided by operating activities | 35,181 | |||
Restatement Adjustments [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net income | (4,607) | (4,607) | ||
Change in fair value of acquisition-related contingent consideration | (790) | |||
Goodwill impairment loss | 4,084 | 4,084 | ||
Long-lived asset impairment loss | $ 3,813 | 3,813 | ||
Deferred income taxes | (1,920) | |||
Change in inventories | (12) | |||
Operating liabilities | (568) | |||
Net cash provided by operating activities | $ 0 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Details) $ in Thousands | 9 Months Ended | |
Oct. 31, 2015ReportingUnits | Jul. 31, 2015USD ($) | |
Engineered Films [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Excess in net book value | $ | $ 50,700 | |
Excess in net book value, percentage | 37.20% | |
Aerostar [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of reporting units | ReportingUnits | 2 |
Net (Loss) Income per Share (An
Net (Loss) Income per Share (Antidiluted Securities Excluded from Computation) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in options and restricted units) | 1,216,318 | 846,205 | 1,150,227 | 574,631 |
Net (Loss) Income per Share (Sc
Net (Loss) Income per Share (Schedule of Calculation of Numerator and Denominator in Earnings per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Numerator: | ||||
Net (loss) income attributable to Raven Industries, Inc. | $ (6,188) | $ 6,783 | $ 2,858 | $ 25,540 |
Denominator: | ||||
Weighted average common shares outstanding (in shares) | 36,785,140 | 36,499,018 | 37,481,675 | 36,462,441 |
Weighted average stock units outstanding (in shares) | 92,470 | 68,721 | 84,597 | 69,616 |
Denominator for basic calculation (in shares) | 36,877,610 | 36,567,739 | 37,566,272 | 36,532,057 |
Weighted average common shares outstanding (in shares) | 36,785,140 | 36,499,018 | 37,481,675 | 36,462,441 |
Weighted average stock units outstanding (in shares) | 92,470 | 68,721 | 84,597 | 69,616 |
Dilutive impact of stock options and restricted units (in shares) | 0 | 165,504 | 47,773 | 188,713 |
Denominator for diluted calculation (in shares) | 36,877,610 | 36,733,243 | 37,614,045 | 36,720,770 |
Net income per share - basic (in dollars per share) | $ (0.17) | $ 0.19 | $ 0.08 | $ 0.70 |
Net income per share - diluted (in dollars per share) | $ (0.17) | $ 0.18 | $ 0.08 | $ 0.70 |
Selected Balance Sheet Inform44
Selected Balance Sheet Information (Details) - USD ($) $ in Thousands | Oct. 31, 2015 | Jul. 31, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Jan. 31, 2014 |
Accounts receivable, net: | ||||||
Trade accounts | $ 40,062 | $ 56,895 | $ 54,889 | |||
Allowance for doubtful accounts | (769) | (319) | (356) | |||
Accounts receivable, net | 39,293 | 56,576 | 54,533 | |||
Inventories: | ||||||
Finished goods | 5,211 | 8,127 | 7,981 | |||
In process | 2,157 | 1,317 | 2,063 | |||
Materials | 41,268 | 45,708 | 41,756 | |||
Inventories | 48,636 | 55,152 | 51,800 | |||
Other current assets: | ||||||
Insurance policy benefit | 728 | 733 | 517 | |||
Federal tax receivable | 0 | 713 | 0 | |||
Receivable from sale of business | 420 | 0 | 0 | |||
Prepaid Expense and other | 1,767 | 1,648 | 2,364 | |||
Other current assets | 2,915 | 3,094 | 2,881 | |||
Property, plant and equipment, net: | ||||||
Property, plant and equipment, net | 117,206 | 117,513 | 100,369 | |||
Other Assets, net (Noncurrent): | ||||||
Investment in affiliate (equity method) | 2,720 | 3,217 | 3,175 | |||
Other, net | 1,139 | 526 | 559 | |||
Other assets | 3,859 | 3,743 | 3,734 | |||
Accrued liabilities: | ||||||
Salaries and related | 1,177 | 4,063 | 1,875 | |||
Benefits | 3,925 | 5,001 | 5,778 | |||
Insurance obligations | 1,852 | 1,590 | 1,426 | |||
Warranties | 1,639 | $ 1,752 | 3,120 | 2,456 | $ 2,617 | $ 2,525 |
Income Taxes | 748 | 536 | 1,140 | |||
Other taxes | 977 | 1,240 | 1,052 | |||
Acquisition-related contingent consideration liability, Current | 448 | 1,375 | 1,191 | |||
Other | 831 | 2,262 | 2,004 | |||
Accrued liabilities | 11,597 | 19,187 | 16,922 | |||
Other liabilities: | ||||||
Postretirement benefits | 7,898 | 11,812 | 8,264 | |||
Acquisition-related contingent consideration liability, Noncurrent | 1,483 | 3,631 | 3,587 | |||
Deferred income taxes | 2,205 | 7,091 | 1,406 | |||
Uncertain tax positions | 2,925 | 3,259 | 7,175 | |||
Other liabilities | 14,511 | 25,793 | 20,432 | |||
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 | 2,974 | 3,246 | 2,077 | |||
Building and Building Improvements [Member] | ||||||
Property, plant and equipment, net: | ||||||
Property, plant and equipment | 76,775 | 78,140 | 69,353 | |||
Machinery and Equipment [Member] | ||||||
Property, plant and equipment, net: | ||||||
Property, plant and equipment | 138,921 | 131,766 | 124,057 | |||
Assets held for use [Member] | ||||||
Property, plant and equipment, net: | ||||||
Accumulated depreciation | (102,263) | (96,545) | (95,118) | |||
Accumulated Impairment, Property, Plant and Equipment | (554) | 0 | 0 | |||
Property, plant and equipment, net | 115,853 | 116,607 | 100,369 | |||
Assets held for use [Member] | Assets Held-for-sale [Member] | ||||||
Property, plant and equipment, net: | ||||||
Property, plant and equipment, net | $ 117,206 | $ 117,513 | $ 100,369 |
Acquisitions of and Investmen45
Acquisitions of and Investments in Businesses and Technologies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | Jan. 31, 2012 | Jan. 31, 2015 | |
Business Combination, Description [Abstract] | ||||||
Goodwill | $ 40,712 | $ 25,234 | $ 40,712 | $ 25,234 | $ 52,148 | |
Business Combination, Contingent Consideration Arrangements [Abstract] | ||||||
Acquisition-related contingent consideration liability, Current | 448 | 1,191 | 448 | 1,191 | 1,375 | |
Acquisition-related contingent consideration liability, Noncurrent | 1,483 | 3,587 | 1,483 | 3,587 | $ 3,631 | |
Payments of acquisition-related contingent liability | (773) | (491) | ||||
Cost of sales | 50,639 | 66,953 | $ 150,213 | 206,524 | ||
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 | |||||
Business Acquisition, adjustment to consideration transferred | 20 | |||||
Business Combination, Consideration Transferred | 48,262 | |||||
Goodwill | 27,422 | 27,422 | ||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 0 | $ 0 | ||||
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 | $ 2,500 | ||||
Contingent Consideration Term in Years | 10 years | |||||
Business Combination, Contingent Consideration Arrangements [Abstract] | ||||||
Acquisition-related contingent consideration, total liability | 1,338 | 1,583 | $ 1,338 | 1,583 | ||
Acquisition-related contingent consideration liability, Current | 329 | 298 | 329 | 298 | ||
Acquisition-related contingent consideration liability, Noncurrent | 1,009 | 1,285 | 1,009 | 1,285 | ||
Payments of acquisition-related contingent liability | 38 | 37 | $ 188 | 37 | ||
Vista Research [Member] | ||||||
Business Combination, Description [Abstract] | ||||||
Business Acquisition, Date of Acquisition Agreement | Jan. 6, 2012 | |||||
Contingent consideration, potential cash payment | 15,000 | $ 15,000 | ||||
Business acquisition contingent consideration payments period | 7 years | 7 years | ||||
Business Combination, Contingent Consideration Arrangements [Abstract] | ||||||
Acquisition-related contingent consideration, total liability | 550 | 2,841 | $ 550 | 2,841 | ||
Acquisition-related contingent consideration liability, Current | 76 | 539 | 76 | 539 | ||
Acquisition-related contingent consideration liability, Noncurrent | 474 | 2,302 | 474 | 2,302 | ||
Payments of acquisition-related contingent liability | 0 | $ 0 | 585 | $ 454 | ||
Cost of Sales [Member] | Vista Research [Member] | ||||||
Business Combination, Contingent Consideration Arrangements [Abstract] | ||||||
Reduction in fair value of contingent consideration liability | 2,273 | |||||
Vista Research [Member] | Cost of Sales [Member] | ||||||
Business Combination, Contingent Consideration Arrangements [Abstract] | ||||||
Reduction in fair value of contingent consideration liability | 2,273 | |||||
As Previously Reported [Member] | ||||||
Business Combination, Description [Abstract] | ||||||
Goodwill | 44,796 | 44,796 | ||||
Business Combination, Contingent Consideration Arrangements [Abstract] | ||||||
Cost of sales | 51,440 | 151,014 | ||||
Restatement Adjustments [Member] | ||||||
Business Combination, Description [Abstract] | ||||||
Goodwill | (4,084) | (4,084) | ||||
Business Combination, Contingent Consideration Arrangements [Abstract] | ||||||
Cost of sales | $ (801) | $ (801) |
Goodwill and Long-Lived Asset46
Goodwill and Long-Lived Asset Impairment Loss and Other Charges (Precontract Cost) (Details) - Cost of Sales [Member] - Vista Research [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2015 | Jul. 31, 2015 | Oct. 31, 2015 | |
Pre-contract Deferred Cost Write-off [Line Items] | |||
Pre-contract deferred costs written off | $ 2,933 | $ 2,933 | |
Pre-contract costs deferred to inventory | $ 858 | $ 2,075 |
Goodwill and Long-Lived Asset47
Goodwill and Long-Lived Asset Impairment Loss and Other Charges (Goodwill Impairment Loss) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | Jan. 31, 2015 | |
Goodwill [Line Items] | |||||
Impairment of Long-Lived Assets Held-for-use | $ 3,813,000 | $ 0 | $ 3,813,000 | $ 0 | |
Gross goodwill | 52,209,000 | 25,234,000 | 52,209,000 | 25,234,000 | |
Goodwill | 40,712,000 | 25,234,000 | 40,712,000 | 25,234,000 | $ 52,148,000 |
Goodwill impairment loss | 11,497,000 | 0 | 11,497,000 | 0 | |
Vista Reporting Unit [Member] | |||||
Goodwill [Line Items] | |||||
Impairment of Long-Lived Assets Held-for-use | 3,813,000 | 3,813,000 | |||
Excess in carrying value | $ 13,986,000 | $ 13,986,000 | |||
Excess in carrying value, percentage | (63.60%) | (63.60%) | |||
Goodwill | $ 0 | 11,497,000 | $ 0 | 11,497,000 | $ 11,497,000 |
Goodwill impairment loss | 11,497,000 | $ 0 | 11,497,000 | $ 0 | |
Radar Technology and Radar Customers [Member] | Vista Reporting Unit [Member] | |||||
Goodwill [Line Items] | |||||
Impairment of Long-Lived Assets Held-for-use | 3,154,000 | 3,154,000 | |||
Patented Technology [Member] | Vista Reporting Unit [Member] | |||||
Goodwill [Line Items] | |||||
Impairment of Long-Lived Assets Held-for-use | 105,000 | 105,000 | |||
Property, Plant and Equipment [Member] | Vista Reporting Unit [Member] | |||||
Goodwill [Line Items] | |||||
Impairment of Long-Lived Assets Held-for-use | $ 554,000 | $ 554,000 |
Goodwill and Long-Lived Asset48
Goodwill and Long-Lived Asset Impairment Loss and Other Charges (Goodwill Changes) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | ||
Goodwill [Roll Forward] | |||||
Balance at beginning of period | $ 52,148,000 | ||||
Purchase price adjustment to acquired goodwill(a) | [1] | 206,000 | |||
Goodwill disposed from sale of business | (69,000) | ||||
Goodwill impairment loss (as restated) | $ (11,497,000) | $ 0 | (11,497,000) | $ 0 | |
Foreign currency translation adjustment | (76,000) | ||||
Balance at end of period | 40,712,000 | 25,234,000 | 40,712,000 | 25,234,000 | |
Applied Technology [Member] | |||||
Goodwill [Roll Forward] | |||||
Balance at beginning of period | 12,550,000 | ||||
Purchase price adjustment to acquired goodwill(a) | [1] | 0 | |||
Goodwill disposed from sale of business | (69,000) | ||||
Goodwill impairment loss (as restated) | 0 | ||||
Foreign currency translation adjustment | (76,000) | ||||
Balance at end of period | 12,405,000 | 12,405,000 | |||
Engineered Films [Member] | |||||
Goodwill [Roll Forward] | |||||
Balance at beginning of period | 27,312,000 | ||||
Purchase price adjustment to acquired goodwill(a) | [1] | 206,000 | |||
Goodwill disposed from sale of business | 0 | ||||
Goodwill impairment loss (as restated) | 0 | ||||
Foreign currency translation adjustment | 0 | ||||
Balance at end of period | 27,518,000 | 27,518,000 | |||
Aerostar [Member] | |||||
Goodwill [Roll Forward] | |||||
Balance at beginning of period | 789,000 | ||||
Purchase price adjustment to acquired goodwill(a) | [1] | 0 | |||
Goodwill disposed from sale of business | 0 | ||||
Goodwill impairment loss (as restated) | 0 | ||||
Foreign currency translation adjustment | 0 | ||||
Balance at end of period | 789,000 | 789,000 | |||
Vista [Member] | |||||
Goodwill [Roll Forward] | |||||
Balance at beginning of period | 11,497,000 | ||||
Purchase price adjustment to acquired goodwill(a) | [1] | 0 | |||
Goodwill disposed from sale of business | 0 | ||||
Goodwill impairment loss (as restated) | (11,497,000) | 0 | (11,497,000) | 0 | |
Foreign currency translation adjustment | 0 | ||||
Balance at end of period | $ 0 | $ 11,497,000 | $ 0 | $ 11,497,000 | |
[1] | Working capital adjustment and final deferred tax adjustment for Integra acquisition (see Note 6 Acquisitions of and Investments in Businesses and Technologies). |
Goodwill and Long-Lived Asset49
Goodwill and Long-Lived Asset Impairment Loss and Other Charges (Long-lived Asset Impairment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Long-lived asset impairment loss | $ 3,813 | $ 0 | $ 3,813 | $ 0 |
Accumulated long-lived intangible impairment losses | 3,813 | $ 0 | 3,813 | $ 0 |
Vista Reporting Unit [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Long-lived assets, fair value | 103 | 103 | ||
Long-lived assets, carrying value | 3,916 | 3,916 | ||
Long-lived asset impairment loss | 3,813 | 3,813 | ||
Vista Reporting Unit [Member] | Property, Plant and Equipment [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Long-lived asset impairment loss | 554 | 554 | ||
Vista Reporting Unit [Member] | Radar Technology and Radar Customers [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Long-lived asset impairment loss | 3,154 | 3,154 | ||
Vista Reporting Unit [Member] | Patented Technology [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Long-lived asset impairment loss | $ 105 | $ 105 |
Employee Postretirement Benef50
Employee Postretirement Benefits Employee Postretirement Benefits (Details) $ in Thousands | 3 Months Ended | 7 Months Ended | 9 Months Ended | |||
Oct. 31, 2015USD ($) | Oct. 31, 2014USD ($) | Aug. 31, 2015USD ($)participants | Oct. 31, 2015USD ($) | Oct. 31, 2014USD ($) | Jan. 31, 2015USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined benefit, number of plan participants with benefits terminated | participants | 5 | |||||
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Service cost | $ 49 | $ 49 | $ 252 | $ 265 | $ 147 | |
Interest cost | 92 | 91 | 244 | 302 | 274 | |
Defined Benefit Plan, Amortization of Gains (Losses) | (38) | (38) | (206) | (114) | ||
Defined Benefit Plan, Net Periodic Benefit Cost | 179 | $ 178 | $ 773 | $ 535 | ||
Defined Benefit Plan, Effect of Plan Amendment on Accumulated Benefit Obligation | (958) | |||||
Defined Benefit Plan, Actuarial Gain (Loss) | (3,403) | |||||
Defined Benefit Plan, Benefits Paid | (89) | |||||
Defined Benefit Plan, Benefit Obligation | 8,171 | $ 12,125 | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |||||
Defined Benefit Plan, Funded Status of Plan | (8,171) | |||||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | (2,710) | |||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Net Prior Service Cost (Credit) Arising During Period, before Tax | (958) | |||||
Defined benefit plan, Other postretirement benefit obligation, other than amount in Accumulated Other Comprehensive Income | $ (6,419) | |||||
Minimum [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Cost of Providing Special or Contractual Termination Benefits Recognized During Period | 8 | |||||
Maximum [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Defined Benefit Plan, Cost of Providing Special or Contractual Termination Benefits Recognized During Period | $ 15 |
Employee Postretirement Benef51
Employee Postretirement Benefits (Assumptions used to calculate benefit obligation) (Details) - USD ($) $ in Thousands | 7 Months Ended | 12 Months Ended | |
Aug. 31, 2015 | Jan. 31, 2015 | Oct. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Measurement Date | Aug. 31, 2015 | Jan. 31, 2015 | |
Defined Benefit Plan, Effect of Plan Amendment on Net Periodic Benefit Cost | $ 300 | ||
Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.25% | 3.50% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 4.00% | 4.00% | |
Defined Benefit other postretirement plan, avg years of service | 15 years 1 month 21 days | 16 years 18 days | |
Defined Benefit Plan, Year that Rate Reaches Ultimate Trend Rate | 2,030 | 2,025 | |
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 7.00% | 7.20% | |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 4.50% | 5.00% |
Warranties (Details)
Warranties (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Product Warranty Accrual [Roll Forward] | ||||
Beginning balance | $ 1,752 | $ 2,617 | $ 3,120 | $ 2,525 |
Accrual for warranties | 571 | 676 | 1,319 | 2,065 |
Settlements made | (684) | (837) | (2,800) | (2,134) |
Ending balance | $ 1,639 | $ 2,456 | $ 1,639 | $ 2,456 |
Financing Arrangements (Details
Financing Arrangements (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Oct. 31, 2015 | Apr. 15, 2015 | Apr. 14, 2015 | Oct. 31, 2014 | |
Line of Credit Facility [Line Items] | ||||
Unamortized Debt Issuance Expense | $ 489 | |||
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 | |||
Borrowing outstanding under line of credit | $ 0 | |||
Remaining borrowing capacity under the line of credit | $ 125,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Income Tax Contingency [Line Items] | ||
Effective tax rate | 13.90% | 31.20% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Percent | 17.30% | |
Canada [Member] | ||
Income Tax Contingency [Line Items] | ||
Undistributed earnings | $ 1,720 | |
Estimated tax liability | $ 270 |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | Jan. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||||
Receivable from sale of business | $ 420,000 | $ 0 | $ 420,000 | $ 0 | $ 0 |
Applied Technology Division [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Activities, Initiation Date | Mar. 10, 2015 | ||||
Restructuring costs unpaid | $ 0 | ||||
Severance Costs | 0 | 0 | 588,000 | 0 | |
Impairment charges related to exit activity | 0 | 0 | |||
Gain on disposal of asset | 0 | 611,000 | |||
Receivable from sale of business | 420,000 | $ 420,000 | |||
Vista Research [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Activities, Initiation Date | Oct. 20, 2015 | ||||
Severance Costs | $ 73,000 | $ 0 | $ 73,000 | $ 0 | |
Cost of Sales [Member] | Applied Technology Division [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance Costs | 407,000 | ||||
Cost of Sales [Member] | Vista Research [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance Costs | 58,000 | ||||
Selling, General and Administrative Expenses [Member] | Applied Technology Division [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance Costs | 181,000 | ||||
Research and Development Expense [Member] | Vista Research [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance Costs | $ 15,000 |
Dividends and Treasury Stock (D
Dividends and Treasury Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Stockholders' Equity Note [Abstract] | ||||
Dividends paid | $ 4,764 | $ 4,745 | $ 14,598 | $ 13,492 |
Cash dividends paid per common share (in dollars per share) | $ 0.13 | $ 0.13 | $ 0.39 | $ 0.37 |
Stock Repurchase Program, Authorized Amount | $ 40,000 | $ 40,000 | ||
Shares repurchased, Treasury Stock | 1,052,587 | 1,602,545 | ||
Payments for Repurchase of Common Stock | $ 18,513 | $ 29,338 | $ 0 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 10,662 | $ 10,662 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - 2010 Stock Incentive Plan [Member] - $ / shares | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in period (in shares) | 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) | 8,446 | 0 | 27,696 | 19,040 |
Weighted average grant date fair value (in dollars per share) | $ 19.90 | $ 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) | 0 | 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 | 9 Months Ended | |
Oct. 31, 2015 | Oct. 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 | 9 Months Ended | ||||||
Oct. 31, 2015 | Jul. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | ||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | $ 67,611 | $ 91,292 | $ 205,402 | $ 288,287 | ||||
Operating income | (9,823) | 10,159 | 3,820 | 37,387 | ||||
Administrative and general expenses | (3,802) | (4,935) | (13,322) | (15,690) | ||||
Goodwill impairment loss | 11,497 | 0 | 11,497 | 0 | ||||
Long-lived asset impairment loss | 3,813 | 0 | 3,813 | 0 | ||||
Applied Technology Division [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 21,344 | 33,161 | 74,165 | 115,696 | ||||
Operating income | [1] | 3,299 | 6,447 | 16,081 | 31,132 | |||
Gain on disposal of asset | 0 | 611 | ||||||
Goodwill impairment loss | 0 | |||||||
Engineered Films [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 36,919 | 41,249 | 104,029 | 125,755 | ||||
Operating income | 6,145 | 5,486 | 15,981 | 17,165 | ||||
Goodwill impairment loss | 0 | |||||||
Aerostar Division [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 9,456 | 19,257 | 27,338 | 56,179 | ||||
Operating income | (15,474) | [2] | 3,027 | (15,013) | [2] | 4,666 | ||
Goodwill impairment loss | 0 | |||||||
Intersegment Eliminations [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | [3] | (108) | (2,375) | (130) | (9,343) | |||
Operating income | [3] | 9 | 134 | 93 | 114 | |||
Corporate Segment [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating income | (6,021) | $ 15,094 | 17,142 | $ 53,077 | ||||
Cost of Sales [Member] | Vista Research [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Reduction in fair value of contingent consideration liability | 2,273 | |||||||
Cost of Sales [Member] | Vista Research [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Pre-contract deferred costs written off | 2,933 | 2,933 | ||||||
Pre-contract costs deferred to inventory | 858 | $ 2,075 | ||||||
Reduction in fair value of contingent consideration liability | 2,273 | |||||||
Operating Income (Loss) [Member] | Vista Research [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Goodwill impairment loss | $ 11,497 | 11,497 | ||||||
Long-lived asset impairment loss | $ 3,813 | |||||||
[1] | (b) Includes gains of $611 for the nine-month period ended October 31, 2015 on disposal of assets related to the exit of contract manufacturing operations. | |||||||
[2] | (c) The three- and nine-month periods ended October 31, 2015 include pre-contract cost write-offs of $2,933 (which is comprised of $2,075 of costs capitalized as of July 31, 2015 and additional costs of $858 capitalized during August and September 2015), a goodwill impairment loss of $11,497, a long-lived asset impairment loss of $3,813, and a reduction of $2,273 of an acquisition-related contingent liability for Vista as a result of changes in expected sales and cash flows. | |||||||
[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. |