Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Oct. 31, 2020 | Jan. 05, 2021 | Apr. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Oct. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --10-31 | ||
Entity File Number | 001-37999 | ||
Entity Registrant Name | REV Group, Inc. | ||
Entity Central Index Key | 0001687221 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-3013415 | ||
Entity Address, Address Line One | 245 South Executive Drive | ||
Entity Address, Address Line Two | Suite 100 | ||
Entity Address, City or Town | Brookfield | ||
Entity Address, State or Province | WI | ||
Entity Address, Postal Zip Code | 53005 | ||
City Area Code | 414 | ||
Local Phone Number | 290-0190 | ||
Title of 12(b) Security | Common Stock ($0.001 Par Value) | ||
Trading Symbol | REVG | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 167,321,299 | ||
Entity Common Stock, Shares Outstanding | 63,602,835 | ||
Documents Incorporated by Reference | Portions of the Registrant’s Definitive Proxy Statement relating to the Annual Meeting of Stockholders, scheduled to be held on March 4, 2021, are incorporated by reference into Part III of this Report. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 11.4 | $ 3.3 |
Accounts receivable, net | 229.3 | 253.5 |
Inventories, net | 537.2 | 513.4 |
Other current assets | 34.1 | 19.4 |
Assets held for sale | 19.5 | |
Total current assets | 812 | 809.1 |
Property, plant and equipment, net | 168.4 | 201.7 |
Goodwill | 157.3 | 159.8 |
Intangible assets, net | 136.1 | 159.9 |
Right of use assets | 23.2 | |
Other long-term assets | 15.3 | 16.6 |
Total assets | 1,312.3 | 1,347.1 |
Current liabilities: | ||
Current portion of long-term debt | 1.7 | 3.6 |
Accounts payable | 169.5 | 200.8 |
Customer advances | 170.1 | 129.9 |
Accrued warranty | 24.1 | 16.1 |
Short-term lease obligations | 8.4 | |
Liabilities held for sale | 15.4 | |
Other current liabilities | 73.5 | 70.2 |
Total current liabilities | 447.3 | 436 |
Long-term debt, less current maturities | 340.5 | 376.6 |
Deferred income taxes | 2.9 | 15.4 |
Long-term lease obligations | 16.9 | |
Other long-term liabilities | 32.4 | 13.9 |
Total liabilities | 840 | 841.9 |
Commitments and contingencies | ||
Shareholders' Equity: | ||
Preferred stock ($.001 par value, 95,000,000 shares authorized; none issued or outstanding) | ||
Common stock ($.001 par value, 605,000,000 shares authorized; 63,403,326 and 62,217,486 shares issued and outstanding, respectively) | 0.1 | 0.1 |
Additional paid-in capital | 496.1 | 490.8 |
Retained (deficit) earnings | (21.1) | 15.8 |
Accumulated other comprehensive loss | (2.8) | (1.7) |
Total REV's shareholders' equity | 472.3 | 505 |
Non-controlling interest | 0.2 | |
Total shareholders' equity | 472.3 | 505.2 |
Total liabilities and shareholders' equity | $ 1,312.3 | $ 1,347.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 31, 2020 | Oct. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized shares | 605,000,000 | 605,000,000 |
Common stock, shares issued | 63,403,326 | 62,217,486 |
Common stock, shares outstanding | 63,403,326 | 62,217,486 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, authorized shares | 95,000,000 | 95,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 2,277.6 | $ 2,403.7 | $ 2,381.3 |
Cost of sales | 2,049.5 | 2,151.9 | 2,103.3 |
Gross profit | 228.1 | 251.8 | 278 |
Operating expenses: | |||
Selling, general and administrative | 204.9 | 199.3 | 182.8 |
Research and development costs | 5.8 | 4.8 | 6.5 |
Amortization of intangible assets | 13.3 | 17.2 | 18.1 |
Restructuring | 9.9 | 5.7 | 7.2 |
Impairment charges | 12.1 | 8.9 | 35.6 |
Total operating expenses | 246 | 235.9 | 250.2 |
Operating (loss) income | (17.9) | 15.9 | 27.8 |
Interest expense, net | 25.7 | 32.5 | 25.6 |
Loss on sale of business | 11.1 | ||
Gain on acquisition of business | (8.6) | ||
(Loss) income before benefit for income taxes and non-controlling interest | (46.1) | (16.6) | 2.2 |
Benefit for income taxes | (15.6) | (3.5) | (10.8) |
Net (loss) income before non-controlling interest | (30.5) | (13.1) | 13 |
Less: net loss attributable to non-controlling interest | (0.8) | ||
Net (loss) income | (30.5) | (12.3) | 13 |
Other comprehensive loss, net of tax | (1.1) | (0.3) | (1.4) |
Comprehensive (loss) income | $ (31.6) | $ (12.6) | $ 11.6 |
Net (loss) income per common share: | |||
Basic | $ (0.48) | $ (0.20) | $ 0.20 |
Diluted | (0.48) | (0.20) | 0.20 |
Dividends declared per common share | $ 0.10 | $ 0.20 | $ 0.20 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Cash flows from operating activities: | |||
Net (loss) income before non-controlling interest | $ (30.5) | $ (13.1) | $ 13 |
Adjustments to reconcile net (loss) income before non-controlling interest to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 40.2 | 45.7 | 46 |
Amortization of debt issuance costs | 2.5 | 2 | 1.9 |
Stock-based compensation expense | 7.8 | 7.2 | 6.3 |
Deferred income taxes | (27.8) | (5) | (4.1) |
Gain on sale of assets | (1.2) | (1.9) | (3) |
Impairment charges | 12.1 | 8.9 | 35.6 |
Loss on sale of business | 11.1 | ||
Gain on acquisition of business | (8.6) | ||
Changes in operating assets and liabilities, net | |||
Receivables, net | 44.1 | 13.4 | (22.3) |
Inventories, net | 27.1 | (2.7) | (74.5) |
Other current assets | (1.8) | (9.8) | (12.2) |
Accounts payable | (36.7) | (17.2) | 6.1 |
Accrued warranty | 2.9 | (8.6) | (11.3) |
Customer advances | 4.9 | 12.1 | 21.9 |
Other liabilities | 7.7 | 24.6 | (23.6) |
Long-term assets | 1.9 | (3.1) | 1 |
Net cash provided by (used in) operating activities | 55.7 | 52.5 | (19.2) |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | (13.5) | (20.8) | (40.6) |
Purchase of rental and used vehicles | (3.3) | (3) | (20.1) |
Proceeds from sale of assets | 11.3 | 24 | 8.7 |
Proceeds from sale of businesses | 54.5 | ||
Investment in China JV | (7.6) | ||
Acquisition of businesses, net of cash acquired | (47.3) | (60) | |
Net cash provided by (used in) investing activities | 1.7 | 0.2 | (119.6) |
Cash flows from financing activities: | |||
Net (repayments) proceeds from borrowings under April 2017 ABL Facility | (35.1) | (90) | 141.5 |
Net proceeds from borrowings of Term Loan | 49.2 | 50 | |
Repayment of long-term debt | (3.3) | (1.5) | |
Payment of dividends | (9.5) | (12.5) | (12.8) |
Repurchase and retirement of common stock | (8.3) | (53.3) | |
Payment of debt issuance costs | (1) | (0.2) | (1) |
Proceeds from exercise of common stock options, net of employer payroll taxes | 0.8 | 0.6 | 9.5 |
Other financing activities | (1.2) | 1.4 | (1) |
Net cash (used in) provided by financing activities | (49.3) | (61.3) | 132.9 |
Net increase (decrease) in cash and cash equivalents | 8.1 | (8.6) | (5.9) |
Cash and cash equivalents, beginning of year | 3.3 | 11.9 | 17.8 |
Cash and cash equivalents, end of year | 11.4 | 3.3 | 11.9 |
Cash paid for: | |||
Interest | 23.2 | 30.3 | 23 |
Income taxes, net of refunds | $ 5.5 | $ (9.1) | $ 15.8 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Deficit) [Member] | Non-controlling Interest [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Oct. 31, 2017 | $ 572.5 | $ 0.1 | $ 532 | $ 40.4 | ||
Balance, shares at Oct. 31, 2017 | 64,145,945 | |||||
Net (loss) income | 13 | 13 | ||||
Other comprehensive loss, net of tax | (1.4) | $ (1.4) | ||||
Stock-based compensation expense | 3.8 | 3.8 | ||||
Exercise of common stock options | 9.7 | 9.7 | ||||
Exercise of common stock options, shares | 1,757,984 | |||||
Vesting of restricted stock, net of employee tax withholding | (0.1) | (0.1) | ||||
Vesting of restricted stock, net of employee tax withholding, Shares | 13,231 | |||||
Repurchase and retirement of common stock | (53.3) | (53.3) | ||||
Repurchase and retirement of common stock, Shares | (3,233,352) | |||||
Dividends declared on common stock | (12.8) | (12.8) | ||||
Investment in non-controlling interest | 1 | $ 1 | ||||
Balance at Oct. 31, 2018 | 532.4 | $ 0.1 | 492.1 | 40.6 | 1 | (1.4) |
Balance, shares at Oct. 31, 2018 | 62,683,808 | |||||
Net (loss) income | (12.3) | (12.3) | ||||
Net loss attributable to non-controlling interest | (0.8) | (0.8) | ||||
Other comprehensive loss, net of tax | (0.3) | (0.3) | ||||
Stock-based compensation expense | 6.4 | 6.4 | ||||
Exercise of common stock options | 0.6 | 0.6 | ||||
Exercise of common stock options, shares | 99,999 | |||||
Vesting of restricted stock, net of employee tax withholding, Shares | 151,276 | |||||
Repurchase and retirement of common stock | (8.3) | $ (8.3) | (8.3) | |||
Repurchase and retirement of common stock, Shares | (717,597) | |||||
Dividends declared on common stock | (12.5) | (12.5) | ||||
Balance at Oct. 31, 2019 | 505.2 | $ 0.1 | 490.8 | 15.8 | 0.2 | (1.7) |
Balance, shares at Oct. 31, 2019 | 62,217,486 | |||||
Net (loss) income | (30.5) | (30.5) | ||||
Sale of business | (0.2) | $ (0.2) | ||||
Other comprehensive loss, net of tax | (1.1) | (1.1) | ||||
Stock-based compensation expense | 7.4 | 7.4 | ||||
Exercise of common stock options | $ 0.8 | 0.8 | ||||
Exercise of common stock options, shares | 130,000 | 130,000 | ||||
Vesting and issuance of restricted stock units and awards, net of forfeitures and employee tax withholdings | $ (1.2) | (1.2) | ||||
Vesting and issuance of restricted stock units and awards, net of forfeitures and employee tax withholdings, shares | 1,055,840 | |||||
Reclassification of Liability Awards | (1.7) | (1.7) | ||||
Dividends declared on common stock | (6.4) | (6.4) | ||||
Balance at Oct. 31, 2020 | $ 472.3 | $ 0.1 | $ 496.1 | $ (21.1) | $ (2.8) | |
Balance, shares at Oct. 31, 2020 | 63,403,326 |
Nature of Operations Equity Spo
Nature of Operations Equity Sponsor and Related Party Transactions | 12 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Nature of Operations, Equity Sponsor and Related Party Transactions | Note 1. Nature of Operations, Equity Sponsor and Related Party Transactions Nature of Operations In the second quarter of fiscal year 2018, the Company made its initial investment of $0.9 million in its China joint venture, Anhui Chery REV Specialty Vehicle Technology Co., Ltd (“China JV”). REV has 10% equity interest in the China JV. During the third quarter of fiscal year 2018, the Company extended a loan to China JV in the amount of $6.7 million at the rate of 5% per annum. No further investments were made during fiscal years 2020 and 2019. The principal and interest of the loan may be converted at the Company’s sole option into an equity interest in the China JV. The Company recorded its investment in the China JV under the equity method of accounting. Equity Sponsor Related Party Transactions Certain production facilities and offices for two of the Company’s subsidiaries are or were leased from certain members of management. Rent expense under these arrangements during fiscal years 2020, 2019 and 2018 totaled $0.7 million, $1.9 million and $1.5 million, respectively. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 2. Basis of Presentation and Summary of Significant Accounting Policies Principles of Consolidation Fiscal Year Use of Estimates Business Combinations Assets acquired and liabilities assumed generally include tangible and intangible assets, and contingent assets and liabilities. When available, the estimated fair values of these assets and liabilities are determined based on observable inputs such as quoted market prices, information from comparable transactions, and the replacement cost of assets in the same condition or stage of usefulness (Level 1 and 2). If observable inputs are not available, unobservable inputs are used such as expected future cash flows or internally developed estimates of value (Level 3). Cash and Cash Equivalents Deposits held with financial institutions may exceed the amount of insurance provided on such deposits. These deposits may be redeemed upon demand and are maintained with major financial institutions within the United States. As of October 31, 2020, the Company had $11.1 million of uninsured cash balances in excess of Federal Depository Insurance Company limits. Accounts Receivable Receivables are written off when management determines collection is highly unlikely and collection efforts have ceased. The change in the allowance for uncollectible accounts is as follows: Fiscal Year Ended October 31, 2020 October 31, 2019 October 31, 2018 Beginning balance $ 0.7 $ 1.3 $ 1.1 Net recorded expense 1.3 0.2 0.6 Write-offs, net of recoveries/payments (0.2 ) (0.8 ) (0.4 ) Ending balance $ 1.8 $ 0.7 $ 1.3 Concentrations of Credit Risk Inventories Property, Plant and Equipment Years Buildings, related improvements & land improvements 5-39 Machinery & equipment 3-15 Computer hardware & software 3-10 Office, furniture & other 3-15 Expenditures that extend the useful life of existing property, plant and equipment are capitalized and depreciated over the remaining useful life of the related asset. Expenditures for repairs and maintenance are expensed as incurred. When property, plant and equipment are retired or sold, the cost and related accumulated depreciation is removed from the Company’s balance sheet, with any gain or loss reflected in operations. Accumulated depreciation on capitalized lease assets is included in property, plant and equipment. Goodwill and Indefinite-Lived Intangible Assets For annual goodwill impairment testing purposes, fair values are estimated by utilizing the income approach and the market approach. Under the income approach, the Company determines fair value based on estimated future cash flows discounted by a risk-adjusted discount rate which corresponds with the Company’s and market-participant weighted-average cost of capital (“WACC”). Estimated future cash flows are based on the Company’s internal projection models, industry information and other assumptions deemed reasonable by management. Under the market approach, the Company derives the fair value of its reporting units based on revenue and earnings multiples of comparable publicly traded companies. Changes in assumptions underlying the impairment analyses can have an impact on the determination of cash flows and fair value, and such assumptions could change in such a manner that a future impairment may occur. For annual indefinite-lived intangible asset impairment testing purposes, fair values are estimated by utilizing the “relief from royalty” (RFR) method. Under the RFR method, an estimate is made as to the appropriate royalty income that would be negotiated in an arm’s-length transaction if the subject intangible asset were licensed from an independent third party. The royalty savings are then calculated by multiplying a royalty rate, expressed as a percentage of revenues, by a determined applicable level of future revenues provided per each trade name as estimated by the Company. The royalty rate is based on research of industry and market data related to transactions involving the licensing of comparable intangible assets. The resulting future royalty savings are then discounted to their present value equivalent utilizing an estimated WACC, adjusted for relative risk premiums specific to each trade name as well as the reporting unit housing it. As part of the annual test on both goodwill and indefinite-lived intangible assets, the Company may utilize a qualitative approach rather than a quantitative approach to determine if an impairment exists, considering various factors including industry changes, actual results as compared to forecasted results, or the timing of a recent acquisition, if applicable . The Company performed its annual goodwill and indefinite lived intangible asset impairment analyses as of August 1, 2020 and did not recognize an impairment loss as a result of the review. Long-Lived Assets Including Definite-Lived Intangible Assets Earnings (Loss) Per Common Share Comprehensive Income (Loss) Revenue Recognition The Company’s primary source of revenue is generated from the manufacture and sale of specialty vehicles through its direct sales force or dealer network. The Company also generates revenue through separate contracts that relate to the sale of aftermarket parts and services. Revenue is typically recognized at a point-in-time, when control is transferred, which generally occurs when the product has been shipped to the customer or when it has been picked-up from the Company’s manufacturing facilities. Shipping and handling costs that occur after the transfer of control are fulfillment costs that are and are recorded in “Cost of Sales” in the Consolidated Statements of Operations when incurred or when the related product revenue is recognized, whichever is earlier. Periodically, certain customers request bill and hold transactions. In such cases, revenue is not recognized until after control has transferred which is generally when the customer has requested such transaction and has been notified that the product (i) has been completed according to customer specifications, (ii) has passed our quality control inspections, and (iii) has been separated from our inventory and is ready for physical transfer to the customer. Warranty obligations associated with the sale of a unit are assurance-type warranties that are a guarantee of the unit’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract. Contract Assets and Contract Liabilities The Company is generally entitled to bill its customers upon satisfaction of its performance obligations, and payment is usually received shortly after billing. Payments for certain contracts are received in advance of satisfying the related performance obligations. Such payments are recorded as customer advances in the Company’s Consolidated Balance Sheets. The corresponding performance obligations are generally satisfied within one year of the contract inception. During fiscal year 2020, the Company recognized $106.7 million of revenue that was included in the customer advances balance as of October 31, 2019. During fiscal year 2019, the Company recognized $87.9 million of revenue that was included in the customer advances balance of $117.8 million as of October 31, 2018. The Company’s payment terms do not include a significant financing component and the Company does not have significant contract assets. Warranty Fair Value Measurements The Company determines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between unrelated market participants at the measurement date. The Company utilizes valuation techniques that maximize the use of observable inputs (Levels 1 and 2) and minimize the use of unobservable inputs (Level 3) within the fair value hierarchy established by the Financial Accounting Standards Board (“FASB”). For illustrative purposes, the levels within the FASB fair value hierarchy are as follows: Level 1 Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable, including the company’s own assumptions in determining fair value. The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements. Assets and Liabilities Held for Sale The Company initially measures a disposal group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a disposal group until the date of sale. The Company assesses the fair value of a disposal group, less any costs to sell, each reporting period it remains classified as held for sale and reports any subsequent changes as an adjustment to the carrying value of the disposal group, as long as the new carrying value does not exceed the carrying value of the disposal group at the time it was initially classified as held for sale. Upon determining that a disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group, if material, in the line items assets held for sale and liabilities held for sale in the consolidated balance sheets. Refer to Note 6, Divestitures, Restructuring and Impairments, for further details. Income Taxes The Company recognizes liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires the Company to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as the Company must determine the probability of various possible outcomes. The Company evaluates these uncertain tax positions on a quarterly basis or when new information becomes available to management. The evaluations are based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit and new audit activity. Such a change in recognition or measurement could result in the recognition of a tax benefit or an increase to the related provision. The Company includes interest and penalties related to income tax liabilities in the (benefit) provision for income taxes in the Company’s consolidated statements of income. Liabilities for income taxes payable, accrued interest and penalties that are due within one year of the balance sheet date are included in other current liabilities. Stock-Based Compensation Stock compensation expense for performance stock unit awards is recorded over the vesting period based on the grant date fair value of the awards and achievement of specified performance targets. The grant date fair value is equal to the closing share price of the Company’s common stock on the date of grant. Forfeitures of performance stock units and awards are recognized as they occur. For stock options, compensation expense is recorded over the agreed upon vesting term of the associated stock option grants and is measured based upon the estimation of fair value of on the grant date by applying the Black-Scholes option-pricing valuation model (the “Black-Scholes Model”). The application of the Black-Scholes Model required us to make certain assumptions such as the fair value of our common stock on the grant date, forfeitures of option grants and the rate of dividend payments on our common stock. Other assumptions utilized in the Black-Scholes Model include volatility of the share price of select peer public companies and the risk-free rate. Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted The following accounting pronouncements did not have a material impact on the Company’s consolidated financial statements: • In February 2016 FASB issued Accounting Standard Update (“ASU”) 2016-02, “Leases” (Accounting Standards Codification (ASC) 842). ASC 842 is intended to increase transparency and comparability among organizations by recognizing lease liabilities with corresponding right-of-use (“ROU”) assets on the balance sheet and disclosing key information about leasing arrangements. The Company adopted the new standard on November 1, 2019, following the optional transition method provided by ASU No. 2018-11. Accordingly, prior year comparative information was not recast to reflect the impact of the new guidance and therefore continues to be reported under the accounting guidance in effect during those periods (ASC 840). The most significant impact of the Company’s adoption of ASC 842 is the recognition of ROU assets and lease liabilities on the balance sheet for operating leases. The adoption did not have any impact on the Company’s results of operations or cash flows. ASC 842 provides a number of optional transition related practical expedients. The Company elected to adopt the standard using the package of practical expedients, which allowed the Company not to reassess prior conclusions about the identification of leases, the classification of leases, and the treatment of initial direct costs. ASC 842 also provides a number of optional practical expedients for an entity’s ongoing lessee accounting. In connection with our evaluation of these practical expedients, the Company has elected not to separate payments for lease components from payments for non-lease components for all classes of leases. Additionally, the Company has elected the short-term lease recognition exemption for all leases that qualify, which means ROU assets and lease liabilities will not be recognized for leases with an initial term of twelve months or less . • ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220)” (“ASU 2018-02”) Accounting Pronouncements - To Be Adopted • • Subsequent Events The Company evaluated subsequent events through January 7, 2021, the date on which the financial statements were available to be issued, and determined there were no items to disclose. |
Acquisitions
Acquisitions | 12 Months Ended |
Oct. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Note 3. Acquisitions Lance Camper Manufacturing Acquisition On January 12, 2018, the Company acquired 100% of the common shares of Lance Camper Mfg. Corp. and its sister company Avery Transport, Inc. (collectively, “Lance” and the “Lance Acquisition”). Lance designs, engineers and manufactures truck campers, towable campers and toy haulers. This acquisition provided the Company a meaningful entrance into the high volume and rapidly growing towables segment of the recreational vehicle market. The final purchase price paid for Lance was $67.3 million ($61.3 million net of $6.0 million cash acquired) and was funded through the Company’s revolving credit facility. Lance is reported as part of the Recreation segment. The Company also paid an additional $10.0 million to the selling shareholders subsequent to the acquisition date in the form of deferred purchase price payable of $5.0 million on each of the 12- and 24-month anniversary dates of the acquisition date as per the agreement terms. This deferred payment was recognized as an expense in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income over the period of the agreement. In the first quarter of fiscal year 2019, the Company paid the first $5.0 million of this deferred purchase price to the selling shareholders and paid the second $5.0 million in the second quarter of fiscal year 2020. The final purchase price allocation resulted in goodwill of $25.5 million, which is deductible for income tax purposes. Spartan Emergency Response On February 1, 2020, the Company acquired substantially all of the assets and liabilities of Spartan Emergency Response (“Spartan ER”), a leading designer, manufacturer and distributor of custom emergency response vehicles, cabs and chassis for the emergency response market, and its brands, from The Shyft Group (NASDAQ: SHYF). Spartan ER is reported as part of the Fire & Emergency segment. The acquisition increases the Company’s market share in several key product categories and provides access to several large new municipalities and regional markets. The initial purchase price for Spartan ER was $54.8 million, subject to an adjustment based on the level of net working capital at closing, as defined in the purchase agreement. The net cash consideration paid at closing was funded through the Company’s ABL credit facility. During the fourth quarter of fiscal year 2020, the Company finalized the post-close net working capital adjustment and subsequently received $7.5 million from the seller. The preliminary purchase price allocation was updated to reflect the reduction in consideration paid as well as to reflect immaterial measurement period adjustments made to accounts receivable, inventory, and certain other assets acquired and liabilities assumed. These updates resulted in a decrease to the gain on acquisition of $3.3 million, from $11.9 million to $8.6 million, which is included in the Company’s Consolidated Statement of Operations and Comprehensive (Loss) Income for the fiscal year ended October 31, 2020. The measurement period adjustments did not have a material impact on the Company’s fourth quarter results of operations. Prior to recognizing the gain, the Company reassessed the measurement and recognition of identifiable assets acquired, and liabilities assumed and concluded that the valuation procedures and resulting preliminary measures were appropriate, in all material respects. The Company believes that its ability to negotiate a purchase price lower than the fair market value of the acquired net assets was due to the limited number of strategic buyers that exist in this specific market and the desire of the sellers to exit the business on an accelerated basis. The Company incurred acquisition related costs of $1.6 million, which are included in selling, general and administrative expenses in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income for the fiscal year ended October 31, 2020. As of October 31, 2020, the fair value of the acquired assets, liabilities and gain on acquisition of business, is provisional pending receipt of the final valuation report from a third-party valuation firm and final fair value considerations specific to inventory and warranty reserves. The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed for Spartan ER. Assets: Accounts receivable, net $ 22.9 Inventories, net 83.3 Other current assets 0.7 Property, plant and equipment 13.6 Right of use assets 6.0 Total assets acquired 126.5 Liabilities: Accounts payable 5.3 Customer advances 35.3 Accrued warranty 1.3 Other current liabilities 8.7 Short-term lease obligations 0.8 Deferred income taxes 2.9 Long-term lease obligations 5.4 Other long-term liabilities 10.9 Total liabilities assumed 70.6 Net assets acquired 55.9 Consideration paid 47.3 Gain on acquisition of business $ (8.6 ) Net sales and operating income attributable to Spartan ER for the fiscal year 2020 were $212.4 million and $10.0 million, respectively. In connection with the acquisition, Spartan ER changed its method for recognizing revenue from over-time to point-in-time to align with the Company. The Company determined that it is impracticable to determine the cumulative effect of applying this change retrospectively because records of certain sales transactions are no longer available for all prior periods. Accordingly, the supplemental proforma disclosures required by ASC 805 have been omitted. |
Inventories
Inventories | 12 Months Ended |
Oct. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4. Inventories Inventories, net of reserves, consisted of the following: October 31, 2020 October 31, 2019 Chassis $ 61.1 $ 44.9 Raw materials 193.2 198.1 Work in process 230.3 200.8 Finished products 72.4 79.6 557.0 523.4 Less: reserves (19.8 ) (10.0 ) Total inventories, net $ 537.2 $ 513.4 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Oct. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Note 5. Property, Plant and Equipment Property, plant and equipment consisted of the following: October 31, 2020 October 31, 2019 Land & land improvements $ 27.0 $ 24.2 Buildings & improvements 103.9 107.6 Machinery & equipment 95.2 93.1 Rental & used vehicles 4.9 24.4 Computer hardware & software 47.5 58.1 Office furniture & fixtures 5.1 5.8 Construction in process 8.1 11.4 291.7 324.6 Less: accumulated depreciation (123.3 ) (122.9 ) Total property, plant and equipment, net $ 168.4 $ 201.7 Depreciation expense for fiscal years 2020, 2019 and 2018 was $26.9 million, $28.3 million and $27.9 million, respectively. |
Divestiture Activities
Divestiture Activities | 12 Months Ended |
Oct. 31, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Divestiture, Restructuring and Impairments | Note 6. Divestitures, Restructuring and Impairments Divestitures In the first quarter of fiscal year 2019, the Company completed the sale of the assets of its mobility van business, Revability, with annual sales of approximately $40 million. In the second quarter of fiscal year 2019, the Company completed the sale of a Regional Technical Center (“RTC”) for net cash proceeds of $11.4 million. In connection with this sale, the Company recognized a gain on sale of $1.2 million. In the first quarter of fiscal year 2020, the Company completed the sale of REV Coach. The Company received total cash proceeds of $4.0 million in fiscal year 2020. In the third quarter of fiscal year 2020, and in connection with a strategic review of the product portfolio, the Company completed the sale of its shuttle bus businesses. The Company received cash proceeds of $48.9 million in the third quarter of fiscal year 2020, and the remaining $1.6 million in the fourth quarter of fiscal year 2020. In connection with this sale, the Company recognized a loss of $11.1 million, which is included in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income for the fiscal year ended October 31, 2020. The Company used the proceeds from the disposition to reduce outstanding borrowings. The shuttle bus businesses were previously reported as part of the Commercial segment. As of October 31, 2019, assets and liabilities held for sale consisted of the following balances related to the sale of REV Coach: property, plant and equipment, net—$0.2 million, inventories, net—$14.0 million, accounts receivable, net—$0.4 million, other current and long-term assets—$4.9 million, accounts payable—$11.7 million and other current and long-term liabilities—$3.7 million. Restructuring and Impairments In fiscal year 2020, the Company recorded impairment and restructuring charges of $12.1 million and $9.9 million, respectively, in fiscal year 2020. These charges resulted from the Company’s exit from its rental program and related liquidation of its rental fleet, the sunset of certain low profit ambulance brands, move from a centralized to a decentralized aftermarket parts business to better align that business to support customers and enable sustainable growth, the exit from certain low profit businesses in the F&E segment, and severance costs related to reductions in force across the Company in response to the ongoing COVID-19 pandemic. The impairment and restructuring costs, by category and segment, are summarized below: Employee Severance and Termination Benefits Contract termination and other costs Asset Impairments Fiscal Year Ended October 31, 2020 Fire & Emergency $ 3.2 $ 2.9 $ 3.3 $ 9.4 Commercial 0.2 — — 0.2 Recreation 0.4 — — 0.4 Corporate and Other 1.8 1.4 8.8 12.0 Total $ 5.6 $ 4.3 $ 12.1 $ 22.0 Restructuring costs of $5.7 million for fiscal year 2019 were primarily attributable to headcount reductions in the Fire & Emergency segment and our corporate office as well as a facility closure in the Recreation Segment and lease termination costs. Non-cash impairment charges of $8.9 million for fiscal year 2019 were primarily related to assets held for sale and other assets which were liquidated during the year. Restructuring costs for fiscal year 2018 of $7.2 million represent costs incurred to restructure certain management positions in the Fire & Emergency, Commercial and Recreation segments, Corporate office, as well as to relocate the Company’s Class B RV production. Non-cash impairment charge of $35.6 million for fiscal year 2018 was related to assets held for sale and other assets that management intended to monetize or that were otherwise impaired which included the Company’s rental fleet, inventory from discontinued product lines and certain information system assets. The Company does not expect to incur additional material restructuring costs related to those incurred in fiscal year 2020. As of October 31, 2020, and October 31, 2019, remaining restructuring charges of $2.6 million and $0.9 million were accrued. Refer to Note 8, Other Current Liabilities. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Oct. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 7. Goodwill and Intangible Assets The table below represents goodwill by segment: October 31, 2020 October 31, 2019 Fire & Emergency $ 88.6 $ 88.6 Commercial 26.2 28.7 Recreation 42.5 42.5 Total goodwill $ 157.3 $ 159.8 The change in the net carrying value amount of goodwill consisted of the following: October 31, 2020 October 31, 2019 Balance at beginning of period $ 159.8 $ 161.8 Activity during the year: Acquisitions — (2.0 ) Divestitures (2.5 ) — Balance at end of period $ 157.3 $ 159.8 Intangible assets (excluding goodwill) consisted of the following: October 31, 2020 Weighted- Average Life Gross Accumulated Amortization Net Finite-lived intangible assets: Customer relationships 8.0 $ 66.2 $ (37.8 ) $ 28.4 Non-compete agreements 5.0 2.0 (1.7 ) 0.3 Trade names 7.0 1.3 (1.3 ) - 69.5 (40.8 ) 28.7 Indefinite-lived trade names 107.4 — 107.4 Total intangible assets, net $ 176.9 $ (40.8 ) $ 136.1 October 31, 2019 Weighted- Average Life Gross Accumulated Amortization Net Finite-lived intangible assets: Customer relationships 8.0 $ 126.7 $ (84.0 ) $ 42.7 Order backlog 1.0 6.7 (6.7 ) — Non-compete agreements 5.0 2.0 (1.3 ) 0.7 Trade names 7.0 3.5 (3.0 ) 0.5 Technology-related 7.0 0.9 (0.8 ) 0.1 139.8 (95.8 ) 44.0 Indefinite-lived trade names 115.9 — 115.9 Total intangible assets, net $ 255.7 $ (95.8 ) $ 159.9 Amortization expense was $13.3 million, $17.4 million and $18.1 million for fiscal years 2020, 2019 and 2018, respectively. The estimated future amortization expense of intangible assets for the subsequent five fiscal years is as follows: 2021—$9.8 million, 2022—$7.1 million, 2023—$3.5 million, 2024—$2.3 million and 2025—$1.7 million. |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Oct. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Note 8. Other Current Liabilities Other current liabilities consisted of the following: October 31, 2020 October 31, 2019 Payroll and related benefits and taxes $ 25.8 $ 22.2 Incentive compensation 7.5 4.1 Customer sales programs 2.8 4.7 Restructuring costs 2.6 0.9 Restructuring related charges 2.6 — Interest payable 2.3 1.9 Dividends payable — 3.3 Deferred purchase price payment — 4.5 Other 29.9 28.6 Total other current liabilities $ 73.5 $ 70.2 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Oct. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 9. Long-Term Debt The Company was obligated under the following debt instruments: October 31, 2020 October 31, 2019 April 2017 ABL facility $ 175.0 $ 210.0 Term Loan, net of debt issuance costs ($1.7 and $2.2) 167.2 170.2 342.2 380.2 Less: current maturities (1.7 ) (3.6 ) Long-term debt, less current maturities $ 340.5 $ 376.6 April 2017 ABL Facility Effective April 25, 2017, the Company entered into a $350.0 million revolving credit and guaranty agreement (the “April 2017 ABL Facility” or “ABL Agreement”) with a syndicate of lenders. The April 2017 ABL Facility consists of: (i) Revolving Loans, (ii) Swing Line Loans, and (iii) Letters of Credit, aggregating up to a combined maximum of $350.0 million. The total amount borrowed under the April 2017 ABL Facility is subject to a $30.0 million sublimit for Swing Line loans and a $35.0 million sublimit for Letters of Credit, along with certain borrowing base and other customary restrictions as defined in the ABL Agreement. The Company incurred $4.9 million of debt issuance costs related to the April 2017 ABL Facility. The amount of debt issuance costs is included in other long-term assets in the Company’s Consolidated Balance Sheets. The April 2017 ABL Facility allows for incremental borrowing capacity in an aggregate amount of up to $100.0 million, plus the excess, if any, of the borrowing base then in effect over total commitments then in effect. Any such incremental borrowing capacity is subject to receiving additional commitments from lenders and certain other customary conditions. The April 2017 ABL Facility matures on April 25, 2022. The Company may prepay principal, in whole or in part, at any time without penalty. The following amendments have been made to the April 2017 ABL Facility: • On December 22, 2017, the Company exercised a $100.0 million incremental borrowing capacity option under the April 2017 ABL Facility to fund the Lance Camper acquisition, which increased total borrowing capacity under the facility from $350.0 million to $450.0 million. The Company incurred an additional $0.4 million of debt issuance costs related to the incremental borrowing capacity option. • On January 31, 2020, the Company increased total borrowing capacity under the facility, in anticipation of its acquisition of Spartan ER, from $450.0 million to $500.0 million. The Company incurred an additional $0.4 million of debt issuance costs related to the incremental borrowing capacity option. Revolving Loans under the April 2017 ABL Facility bear interest at rates equal to, at the Company’s option, either a base rate plus an applicable margin, or a Eurodollar rate plus an applicable margin. Applicable interest rate margins are initially 0.75% for all base rate loans and 1.75% for all Eurodollar rate loans (with the Eurodollar rate having a floor of 0%), subject to adjustment based on utilization in accordance with the ABL Agreement. The weighted-average interest rate on borrowings outstanding under the April 2017 ABL Facility was 1.85% as of October 31, 2020. Interest is payable quarterly for all base rate loans and is payable monthly or quarterly for all Eurodollar rate loans. The lenders under the April 2017 ABL Facility have a first priority security interest in substantially all accounts receivable and inventory of the Company, and a second priority security interest in substantially all other assets of the Company. The April 2017 ABL Facility contains customary representations and warranties, affirmative and negative covenants, subject in certain cases to customary limitations, exceptions and exclusions. The April 2017 ABL Facility also contains certain customary events of default, which should such events occur, could result in the termination of the commitments under the April 2017 ABL Facility and the acceleration of all outstanding borrowings under it. The April 2017 ABL Facility contains a financial covenant restricting the Company from allowing its fixed charge coverage ratio to drop below 1.00 to 1.00 during a compliance period, which is triggered when the availability under the April 2017 ABL Facility falls below a threshold set forth in the credit agreement. The Company was in compliance with all financial covenants under the April 2017 ABL Facility as of October 31, 2020. As of October 31, 2020, the Company’s availability under the April 2017 ABL Facility was $283.4 million. The fair value of the April 2017 ABL Facility approximated book value at both October 31, 2020 and October 31, 2019. Term Loan Effective April 25, 2017, the Company entered into a $75.0 million term loan agreement (“Term Loan” and “Term Loan Agreement”), as Borrower with certain subsidiaries of the Company, acting as guarantors of debt. Principal may be prepaid at any time during the term of the Term Loan without penalty. The Company incurred $2.0 million of debt issuance costs related to the Term Loan. The Term Loan Agreement allows for incremental facilities in an aggregate amount of up to $125.0 million. Any such incremental facilities are subject to receiving additional commitments from lenders and certain other customary conditions. The Term Loan agreement requires quarterly payments of 0.25% of the original principal balance, with remaining principal payable at maturity, April 25, 2022. The lenders under the Term Loan have a second priority security interest in substantially all accounts receivable and inventory of the Company. The following amendments have been made to the Term Loan: • On July 18, 2018, the Company exercised a $50.0 million incremental commitment option under the Term Loan Agreement, which increased total borrowing under the facility from $75.0 million to $125.0 million. The Company incurred an additional $0.6 million of debt issuance costs related to the incremental commitment option. Proceeds from the incremental commitment were used to repay a portion of the outstanding borrowings under the April 2017 ABL Facility. • On March 29, 2019, the Company exercised a $50.0 million incremental commitment option under the Term Loan Agreement, which increased total borrowing under the facility from $125.0 million to $175.0 million. The Company incurred an additional $0.8 million of debt issuance costs related to the incremental commitment option, which were deducted from proceeds received by the Company. Proceeds from the incremental commitment were used to repay a portion of the outstanding borrowings under the April 2017 ABL Facility. • On October 18, 2019, the Company amended the term loan agreement to raise the maximum leverage net ratio to 4.00 to 1.00 from 3.50 to 1.00. Additionally, the Company received a waiver related to the excess cash flow calculation payment for fiscal year 2019. The Company incurred $0.2 million of debt issuance costs related to the amendment. • On January 31, 2020, the Company amended the term loan agreement, in contemplation of its pending acquisition of Spartan ER, to raise the maximum net leverage ratio to 5.00 to 1.00 from 4.00 to 1.00. The Company incurred $0.4 million of debt issuance costs related to the amendment. • On April 29, 2020, the Company amended the term loan agreement to eliminate the maximum leverage ratio covenant and replace it with a fixed charge coverage ratio test with a minimum ratio of 1.25 to 1.00. The fixed charge coverage ratio covenant will remain in effect through the fourth quarter of fiscal year 2020. The maximum leverage ratio covenant will be reinstated at 5.25 to 1.00 starting in the first quarter of fiscal year 2021 and decline by 25 basis points each subsequent quarter, to a final level of 4.25 to 1.00 in first quarter of fiscal 2022. The applicable interest rate margins increased by 75 basis points corresponding with the amendment. The Company incurred $0.2 million of debt issuance costs related to the amendment. Applicable interest rate margins for the Term Loan are 3.25% for base rate loans and 4.25% for Eurodollar rate loans (with the Eurodollar rate having a floor of 1.00%). Interest is payable quarterly for all base rate loans and is payable monthly or quarterly for all Eurodollar rate loans. The weighted-average interest rate on borrowings outstanding under the Term Loan was 5.25% as of October 31, 2020. The Term Loan Agreement contains customary representations and warranties, affirmative and negative covenants, in each case, subject to customary limitations, exceptions and exclusions. The Term Loan Agreement also contains certain customary events of default. The Company was in compliance with all financial covenants under the Term Loan as of October 31, 2020. The fair value of the Term Loan approximated book value at both October 31, 2020 and October 31, 2019. Aggregate contractual maturities of debt in future fiscal years are as follows: 2021 1.7 2022 342.2 Thereafter — Total debt $ 343.9 |
Warranties
Warranties | 12 Months Ended |
Oct. 31, 2020 | |
Guarantees [Abstract] | |
Warranties | Note 10. Warranties The Company’s products generally carry explicit warranties that extend from several months to several years, based on terms that are generally accepted in the marketplace. Selected components (such as engines, transmissions, tires, etc.) included in the Company’s products may include warranties from original equipment manufacturers (“OEM”). These OEM warranties are passed on to the end customer of the Company’s products, and the customer deals directly with the applicable OEM for any issues encountered on those components. Changes in the Company’s warranty liability consisted of the following: Fiscal Year Ended October 31, 2020 October 31, 2019 Balance at beginning of year $ 22.6 $ 30.8 Warranty provisions 38.0 20.8 Settlements made (35.1 ) (29.0 ) Acquired business 12.2 — Divested businesses (0.7 ) — Balance at end of year $ 37.0 $ 22.6 Accrued warranty is classified in the Company’s consolidated balance sheets as follows: October 31, 2020 October 31, 2019 Current liabilities $ 24.1 $ 16.1 Other long-term liabilities 12.9 6.5 Total warranty liability $ 37.0 $ 22.6 |
Leases
Leases | 12 Months Ended |
Oct. 31, 2020 | |
Leases [Abstract] | |
Leases | Note 11. Leases The Company leases certain administrative and production facilities and equipment under long-term, non-cancelable operating lease agreements. The Company determines if an arrangement is or contains a lease at contract inception and recognizes a ROU asset and a lease liability based on the present value of fixed, and certain index-based lease payments at the lease commencement date. Variable payments are excluded from the present value of lease payments and are recognized in the period in which the payment is made. Lease agreements may include options to extend or terminate the lease or purchase the underlying asset. In situations where the Company is reasonably certain to exercise such options, they are considered in determining the lease term and the associated option payments, or exercise price in the case of an option to purchase, are included in the measurement of the lease liabilities and ROU assets. The Company’s leases generally do not include restrictive financial or other covenants, or residual value guarantees. The Company generally uses its incremental borrowing rate as the discount rate for measuring its lease liabilities, as the Company cannot determine the interest rate implicit in the lease because it does not have access to certain lessor specific information. Lease expense is recognized on a straight-line basis over the lease term. The Company does not have significant finance leases. During fiscal year 2020, the Company recognized total operating lease costs of approximately $10.1 million, and paid cash of $9.4 million for amounts included in the measurement of lease liabilities. At October 31, 2020, future minimum operating lease payments due under ASC 842 are summarized by fiscal year in the table below: 2021 $ 9.4 2022 7.6 2023 4.8 2024 2.8 2025 1.0 Thereafter 2.4 Total undiscounted lease payments 28.0 Less: imputed interest (2.7 ) Total lease liabilities $ 25.3 As of October 31, 2020, the weighted average remaining lease term and the weighted average discount rate for operating leases was 4.5 years and 5.0%, respectively. As previously disclosed in the Company's Annual Report on Form 10-K for the year ended October 31, 2019 and accounted for under the previous lease accounting guidance (ASC 840), future minimum operating lease payments as of October 31, 2019 were as follows: 2020 $ 8.5 2021 7.5 2022 5.8 2023 3.3 2024 1.5 Thereafter 0.1 |
Employee Benefits
Employee Benefits | 12 Months Ended |
Oct. 31, 2020 | |
Postemployment Benefits [Abstract] | |
Employee Benefits | Note 12. Employee Benefits The Company has a defined contribution 401(k) plan covering substantially all employees. The plan allows employees to defer up to 100% of their employment income (subject to annual contribution limits imposed by the I.R.S.) after all taxes and applicable benefit deductions. Each employee who elects to participate is eligible to receive Company matching contributions that are based on employee contributions to the plans, subject to certain limitations. Amounts expensed for the Company’s matching and discretionary contributions were $9.8 million, $9.7 million and $9.7 million during fiscal years 2020, 2019 and 2018, respectively. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Oct. 31, 2020 | |
Equity [Abstract] | |
Stock Repurchase Program | Note 13. Stock Repurchase Program On March 20, 2018, the Company’s Board of Directors authorized up to $50.0 million of repurchases of the Company’s issued and outstanding common stock with an expiration date of March 19, 2020. On September 5, 2018, the Company’s Board of Directors authorized an additional $50.0 million of repurchases of the Company’s issued and outstanding common stock with an expiration date of September 4, 2020. The Company’s share repurchase program is executed from time to time through open market or through private transactions. Shares purchased under the share repurchase program are retired and returned to authorized and unissued status. During fiscal year 2019, the Company repurchased 717,597 shares under this repurchase program at a total cost of $8.3 million at an average price per share of $11.62. There were no repurchases under this program during fiscal year 2020 and the program expired on September 4, 2020. |
Stock Compensation
Stock Compensation | 12 Months Ended |
Oct. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Compensation | Note 14. Stock Compensation The 2016 Omnibus Incentive Plan (the “2016 Plan”) has 8,000,000 shares authorized for issuance with 6,759,653 shares remaining at October 31, 2020. The 2016 Plan replaced the 2010 Long-Term Incentive Plan (the “2010 Plan”) in January 2017 in connection with our IPO. While no new awards will be granted under the 2010 Plan, awards previously issued under that plan that were outstanding as of the approval date of the 2016 Plan will remain outstanding and continue to be governed by the provisions of the 2010 Plan. The 2010 Plan has 1,109,686 shares remaining for issuance at October 31, 2020. The awards issued under the 2010 Plan that are currently outstanding are limited to stock options. These stock options are all fully vested and exercisable and have a contractual term of up to 10 years. Under the 2016 Plan, officers, directors, including non-employee directors, and employees of the Company may be granted restricted stock awards (RSAs), restricted stock units (RSUs) or performance stock units (PSUs). Restricted stock awards and units generally vest over a one to four-year four-year Stock-based compensation expense consists of vesting of restricted and performance stock units issued under the 2016 Plan and vesting of stock options issued under the 2010 Plan. For fiscal years 2020, 2019, and 2018, the Company recorded stock-based compensation expense of $7.8 million, $7.2 million, and $6.3 million, respectively, as selling, general and administrative expenses in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income. The actual income tax benefit realized totaled $1.8 million, $1.8 million, and $1.7 million for those same periods. Restricted Stock Awards Number of Awards Weighted-Average Grant Date Fair Value Per Award Nonvested, beginning of year — $ — Granted 1,103,568 8.64 Vested — — Forfeited (420,651 ) 11.68 Nonvested, end of year 682,917 $ 6.76 No restricted stock awards were granted prior to fiscal year 2020. As of October 31, 2020, the Company had $3.5 million of unrecognized compensation expense related to restricted stock awards, which will be recognized over a weighted-average period of 2.8 years. Restricted Stock Units Number of Units Weighted-Average Grant Date Fair Value Per Unit Nonvested, beginning of year 1,394,205 $ 11.94 Granted 307,127 10.81 Vested (472,848 ) 12.43 Forfeited (308,223 ) 11.91 Nonvested, end of year 920,261 $ 11.42 The weighted average grant date fair value of restricted stock units granted during fiscal years 2019 and 2018 was $9.04 and $26.18, respectively. The total fair value of restricted stock units that vested during fiscal years 2020, 2019 and 2018 was $5.9 million, $3.5 million and $0.4 million, respectively. As of October 31, 2020, the Company had $4.2 million of unrecognized compensation expense related to restricted stock awards, which will be recognized over a weighted-average period of 2.4 years. Performance Stock Units Number of Units Weighted-Average Grant Date Fair Value Per Unit Nonvested, beginning of year 48,734 $ 27.36 Granted 507,003 5.23 Vested (24,367 ) 27.36 Forfeited (80,000 ) 6.74 Nonvested, end of year 451,370 $ 6.16 No performance stock units were granted during 2019. The weighted average grant date fair value of performance stock units granted during fiscal year 2018 was $22.70. The total fair value of performance stock units that vested during fiscal years 2020 and 2019 was $0.7 million and $0.6 million, respectively. The total fair value of performance stock units that vested during fiscal year 2018 was immaterial. As of October 31, 2020, the Company had $1.7 million of unrecognized compensation expense related to performance stock units, which will be recognized over a weighted-average period of 2.3 years. Stock Options Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value of Options Outstanding, beginning of year 647,800 $ 7.64 5.9 $ 3,113 Granted — — — — Exercised (130,000 ) 7.90 5.1 569 Forfeited (10,000 ) 8.11 — 7 Expired (223,000 ) 7.32 — 161 Outstanding, end of year 284,800 $ 7.77 5.0 $ 79 Exercisable, end of year 284,800 $ 7.77 5.0 $ 79 The aggregate intrinsic value above reflects the total pre-tax intrinsic value (the difference between the per share fair value of the Company’s stock and the exercise price of the stock options, multiplied by the number of in-the-money stock options) that would have been received by the option holders had all option holders exercised their options on October 31, 2020 and October 31, 2019. The intrinsic value of the Company’s stock options changes based on the changes in the share price of the Company’s common stock. The total intrinsic value of stock options exercised during fiscal years 2020, 2019, and 2018, was $0.6 million, $0.5 million, and $26.8 million, respectively. As of October 31, 2020, all outstanding options were completely vested so there was no unrecognized compensation expense related to stock options as of that date. |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 15. Income Taxes Income is taxed in the following jurisdictions: Fiscal Year Ended October 31, 2020 October 31, 2019 October 31, 2018 Domestic $ (45.6 ) $ (16.5 ) $ 5.2 Foreign (0.5 ) (0.1 ) (3.0 ) (Losses) income before (benefit) provision for income taxes $ (46.1 ) $ (16.6 ) $ 2.2 Benefit for income taxes is summarized as follows: Fiscal Year Ended October 31, 2020 October 31, 2019 October 31, 2018 Current: Federal $ 10.4 $ 0.4 $ (6.8 ) State 1.8 1.1 0.1 Foreign — — — Total Current $ 12.2 $ 1.5 $ (6.7 ) Deferred: Federal (24.0 ) (4.0 ) (6.4 ) State (3.8 ) (1.0 ) 0.9 Foreign — — 1.4 Total Deferred (27.8 ) (5.0 ) (4.1 ) Benefit for income taxes $ (15.6 ) $ (3.5 ) $ (10.8 ) Income tax (benefit) provision at the federal statutory rate is reconciled to the Company’s benefit for income taxes as follows: Fiscal Year Ended October 31, 2020 October 31, 2019 October 31, 2018 Income tax (benefit) provision at federal statutory rate $ (9.7 ) $ (3.5 ) $ 0.5 Taxes on foreign income which differ from the U.S. statutory rate — — (0.3 ) State (benefit) expense (2.3 ) (0.2 ) 0.5 CARES Act impact (3.5 ) — — Manufacturing and research incentives (0.9 ) (0.6 ) (2.7 ) Nondeductible items 0.8 0.2 0.7 Uncertain tax positions 0.4 (0.1 ) (0.4 ) Valuation allowance 0.2 — 2.2 Remeasurement of deferred taxes - U.S. Tax Reform — — (11.3 ) Bargain purchase gain (2.2 ) — — Stock-based compensation 1.4 0.8 — Other items 0.2 (0.1 ) — Benefit for income taxes $ (15.6 ) $ (3.5 ) $ (10.8 ) Tax benefit for fiscal year 2020 was favorably impacted by tax benefits related to loss carryback allowable under the CARES Act and the nontaxable gain on the acquisition of Spartan ER. Tax benefit was also favorably impacted by incentives for U.S. research and unfavorably impacted by share-based compensation tax deductions. Tax benefit for fiscal year 2019 was favorably impacted by incentives for U.S. research and unfavorably impacted by share-based compensation tax deductions. Tax benefit for fiscal year 2018 was favorably impacted by the decrease in the U.S. tax rate and revaluation of net deferred tax liabilities, both as a result of tax legislation in the United States. Tax benefit was also favorably impacted by tax incentives for U.S. manufacturing and research, some of which can be attributed to federal provision-to-return adjustment. Tax benefit was unfavorably impacted by the addition of a valuation allowance on the deferred tax assets in Brazil. No items included in Other items in the income tax reconciliation above are individually, or when appropriately aggregated, significant. On December 22, 2017, the Tax Reform Act was signed into law by President Trump. The Tax Reform Act significantly revised the U.S. corporate income tax regime by, among other things, lowering the U.S. corporate tax rate from 35% to 21% effective January 1, 2018, while also repealing the deduction for domestic production activities, limiting interest expense deductions, implementing a territorial tax system, and creating new taxes on certain foreign-sourced earnings. In fiscal year 2018, the Company recorded $11.3 million of cumulative tax benefit related to remeasurement of net deferred tax liabilities On March 27, 2020, the U.S. enacted the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). The Cares Act is an emergency stimulus package that includes spending and tax benefits to strengthen the U.S. economy and fund a nationwide effort to curtail the effect of COVID-19. While the CARES Act provides sweeping tax changes in response to the COVID-19 pandemic, some of the more significant provisions include removal of certain limitations on utilization of net operating losses, allowing for net operating loss carrybacks for certain past and future losses, increasing the ability to deduct interest expense, as well as amending certain provisions of the previously enacted Tax Reform Act. Temporary differences and carryforwards that give rise to deferred tax assets and liabilities include the following items: Fiscal Year Ended October 31, 2020 October 31, 2019 Deferred tax assets: Product warranty $ 6.4 $ 5.8 Inventory 6.5 5.0 Deferred employee benefits 5.0 4.3 Net operating loss and credit carryforwards 4.9 13.3 Other reserves and allowances 5.9 3.2 Gross deferred tax assets 28.7 31.6 Less: valuation allowance (1.7 ) (2.1 ) Deferred tax assets 27.0 29.5 Deferred tax liabilities: Intangible assets (24.5 ) (26.5 ) Property, plant and equipment (4.6 ) (16.3 ) Other (0.8 ) (2.0 ) Deferred tax liabilities (29.9 ) (44.8 ) Net deferred tax liability $ (2.9 ) $ (15.3 ) The net deferred tax assets/ (liabilities) recorded in the consolidated balance sheet are as follows: Fiscal Year Ended October 31, 2020 October 31, 2019 Noncurrent deferred tax asset $ — $ 0.1 Noncurrent deferred tax liability (2.9 ) (15.4 ) Net deferred tax liability $ (2.9 ) $ (15.3 ) At October 31, 2020, the Company has net operating loss carryforwards for U.S. federal income tax purposes of $3.2 million, which are subject to annual limitations and begin to expire in 2029. The Company has state net operating loss carryforwards of $21.6 million, which begin to expire in 2027. The Company also has net operating loss carryforwards generated in Canada and Brazil of $0.6 million and $3.7 million, respectively which are offset by a valuation allowance because the losses are projected to expire prior to being utilized. The Company has state tax and other credit carryforwards of $2.3 million, which begin to expire in 2023. The Company, or one of its subsidiaries, files income tax returns in the U.S, Canada, Brazil, Singapore and various state jurisdictions. With few exceptions, fiscal years 2016, 2017, 2018 and 2019 remain open to tax examination by Brazilian, Canadian and U.S. federal and state tax authorities. The Company regularly assesses the likelihood of an adverse outcome resulting from examinations to determine the adequacy of its tax reserves. A reconciliation of the beginning and ending amount of unrecognized tax benefits are as follows: Fiscal Year Ended October 31, 2020 October 31, 2019 October 31, 2018 Balance at beginning of year $ 2.4 $ 2.1 $ 2.6 Additions (reductions) for tax positions in prior year 0.2 0.3 0.3 Additions for tax positions in current year 0.1 0.1 0.3 Cash settlements with taxing authorities — — (0.2 ) Statute of limitations — (0.1 ) (0.9 ) Balance at end of year $ 2.7 $ 2.4 $ 2.1 If recognized, $3.1 million, $2.6 million, and $2.2 million of the Company’s unrecognized tax benefits as of October 31, 2020, October 31, 2019 and October 31, 2018, respectively, would affect the Company’s effective income tax rate. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Oct. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 16. Commitments and Contingencies Personal Injury Actions and Other Market Risks October 31, 2020 October 31, 2019 Performance, bid and specialty bonds $ 328.6 $ 229.9 Open standby letters of credit 11.0 14.3 Total $ 339.6 $ 244.2 The increase in performance, bid and specialty bonds is attributable to municipal contracts within our Commercial segment and customer contracts related to Spartan ER Chassis Contingent Liabilities Repurchase Commitments Guarantee Arrangements In the event that third parties are unable to meet obligations under these agreements, the Company cannot guarantee that the collateral underlying the agreements will be available or sufficient to avoid losses materially in excess of the amounts reserved. Any losses under these guarantees would generally be mitigated by the value of any underlying collateral, primarily financed vehicles, and are generally subject to the finance company’s ability to provide the Company clear title to foreclosed equipment and other conditions. During periods of economic weakness, collateral values generally decline and can contribute to higher exposure to losses. Other Matters A consolidated federal putative securities class action and a consolidated state putative securities class action are pending against the Company and certain of its officers and directors. These actions collectively purport to assert claims on behalf of putative classes of purchasers of the Company’s common stock in or traceable to its January 2017 IPO, purchasers in its secondary offering of common stock in October 2017, and purchasers from October 10, 2017 through June 7, 2018. The state action also names certain of the underwriters for the Company’s IPO or secondary offering as defendants. The federal and state courts each consolidated multiple separate actions pending before them, the first of which was filed on June 8, 2018. The actions have alleged certain violations of the Securities Act of 1933 and, for the federal action, the Securities Exchange Act of 1934. The consolidated state action is currently stayed in favor of the consolidated federal action. Collectively, the actions seek certification of the putative classes asserted and compensatory damages and attorneys’ fees and costs. The underwriter defendants have notified the Company of their intent to seek indemnification from the Company pursuant to the IPO underwriting agreement regarding the claims asserted with respect to the IPO, and the Company expects the underwriters to do the same in regard to the claims asserted with respect to the October 2017 offering. Two purported derivative actions, which have since been consolidated, were also filed in federal court in Delaware in 2019 against the Company’s directors (with the Company as a nominal defendant), premised on allegations similar to those asserted in the consolidated federal securities litigation. The Company and the other defendants intend to defend these lawsuits vigorously. Additional lawsuits may be filed and, at this time, the Company is unable to predict the outcome of the lawsuits, the possible loss or range of loss, if any, associated with the resolution of the lawsuits, or any potential effect that it may have on the Company or its operations. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Oct. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Note 17. Earnings Per Common Share Basic earnings per common share (“EPS”) is computed by dividing net (loss) income by the weighted average number of common shares outstanding. Diluted EPS is computed by dividing net (loss) income by the weighted-average number of common shares outstanding assuming dilution. The difference between basic EPS and diluted EPS is the result of the dilutive effect of outstanding stock options, performance stock units and restricted stock units. The table below reconciles basic weighted-average common shares outstanding to diluted weighted-average shares outstanding for fiscal years 2020, 2019 and 2018: Fiscal Year Ended October 31, 2020 October 31, 2019 October 31, 2018 Basic weighted-average common shares outstanding 63,044,872 62,789,165 63,966,977 Dilutive stock options — — 1,242,644 Dilutive restricted stock units — — 548 Dilutive restricted stock awards — — — Dilutive performance stock units — — — Diluted weighted-average common shares 63,044,872 62,789,165 65,210,169 The table below represents exclusions from the calculation of weighted-average shares outstanding assuming dilution due to the anti-dilutive effect of the common stock equivalents for fiscal years 2020, 2019 and 2018: Fiscal Year Ended October 31, 2020 October 31, 2019 October 31, 2018 Anti-Dilutive Stock Options 284,800 988,551 97,085 Anti-Dilutive Restricted Stock Awards 682,917 1,783,271 574,359 Anti-Dilutive Restricted Stock Units 920,261 — — Anti-Dilutive Performance Stock Units 451,370 18,408 91,509 Anti-Dilutive Common Stock Equivalents 2,339,348 2,790,230 762,953 |
Business Segment Information
Business Segment Information | 12 Months Ended |
Oct. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 18. Business Segment Information The Company is organized into three reportable segments based on management’s process for making operating decisions, allocating capital and measuring performance, and based on the similarity of products, customers served, common use of facilities, and economic characteristics. The Company’s segments are as follows: Fire & Emergency Commercial Recreation For purposes of measuring financial performance of its business segments, the Company does not allocate to individual business segments costs or items that are of a corporate nature. The caption “Corporate, Other & Elims” includes corporate office expenses, results of insignificant operations, intersegment eliminations and income and expense not allocated to reportable segments. Total assets of the business segments exclude general corporate assets, which principally consist of cash and cash equivalents, certain property, plant and equipment and certain other assets pertaining to corporate and other centralized activities. Intersegment sales generally include amounts invoiced by a segment for work performed for another segment. Amounts are based on actual work performed and agreed-upon pricing which is intended to be reflective of the contribution made by the supplying business segment. All intersegment transactions have been eliminated in consolidation. Selected financial information of the Company’s segments is as follows: Fiscal Year 2020 Fire & Emergency Commercial Recreation Corporate, Other & Elims Consolidated Net Sales $ 1,132.0 $ 484.8 $ 657.8 $ 3.0 $ 2,277.6 Depreciation and amortization $ 13.5 $ 5.7 $ 13.7 $ 7.3 $ 40.2 Capital expenditures $ 7.1 $ 2.7 $ 2.0 $ 1.7 $ 13.5 Total assets $ 731.3 $ 207.1 $ 305.4 $ 68.5 $ 1,312.3 Adjusted EBITDA $ 39.9 $ 34.5 $ 38.4 $ (45.3 ) Fiscal Year 2019 Fire & Emergency Commercial Recreation Corporate, Other & Elims Consolidated Net Sales $ 967.9 $ 720.0 $ 716.3 $ (0.5 ) $ 2,403.7 Depreciation and amortization $ 14.1 $ 8.7 $ 15.6 $ 7.3 $ 45.7 Capital expenditures $ 8.6 $ 3.7 $ 2.7 $ 5.8 $ 20.8 Total assets $ 617.2 $ 317.7 $ 316.4 $ 95.8 $ 1,347.1 Adjusted EBITDA $ 43.2 $ 56.0 $ 46.8 $ (43.9 ) Fiscal Year 2018 Fire & Emergency Commercial Recreation Corporate and Other Consolidated Net Sales $ 956.6 $ 638.5 $ 811.9 $ (25.7 ) $ 2,381.3 Depreciation and amortization $ 15.3 $ 10.0 $ 13.4 $ 7.3 $ 46.0 Capital expenditures $ 7.9 $ 4.2 $ 9.7 $ 18.8 $ 40.6 Total assets $ 612.4 $ 293.2 $ 383.2 $ 119.3 $ 1,408.1 Adjusted EBITDA $ 86.0 $ 38.1 $ 60.4 $ (36.5 ) The following tables present net sales by geographic region based on product shipment destination for fiscal years 2020, 2019 and 2018: Fiscal Year 2020 U.S. and Canada Europe/ Africa Rest of World Total Fire & Emergency $ 1,088.8 $ 0.5 $ 42.7 $ 1,132.0 Commercial 480.2 0.9 3.7 484.8 Recreation 652.7 0.2 4.9 657.8 Corporate, Other & Elims 3.0 — — 3.0 Total Net Sales $ 2,224.7 $ 1.6 $ 51.3 $ 2,277.6 Fiscal Year 2019 U.S. and Canada Europe/ Africa Rest of World Total Fire & Emergency $ 909.0 $ 3.1 $ 55.8 $ 967.9 Commercial 713.5 0.2 6.3 720.0 Recreation 706.4 0.6 9.3 716.3 Corporate, Other & Elims (0.5 ) — — (0.5 ) Total Net Sales $ 2,328.4 $ 3.9 $ 71.4 $ 2,403.7 Fiscal Year 2018 U.S. and Canada Europe/ Africa Rest of World Total Fire & Emergency $ 938.2 $ 3.3 $ 15.1 $ 956.6 Commercial 632.3 — 6.2 638.5 Recreation 808.2 — 3.7 811.9 Corporate & Other (26.2 ) 0.1 0.4 (25.7 ) Total Net Sales—External Customers $ 2,352.5 $ 3.4 $ 25.4 $ 2,381.3 In considering the financial performance of the business, the chief operating decision maker analyzes the primary financial performance measure of Adjusted EBITDA. Adjusted EBITDA is defined as net income for the relevant period before depreciation and amortization, interest expense and income taxes, as adjusted for items management believes are not indicative of the Company’s ongoing operating performance. Adjusted EBITDA is not a measure defined by U.S. GAAP but is computed using amounts that are determined in accordance with U.S. GAAP. A reconciliation of this performance measure to net income (loss) is included below. The Company believes Adjusted EBITDA is useful to investors and used by management for measuring profitability because the measure excludes the impact of certain items which management believes have less bearing on the Company’s core operating performance, and allows for a more meaningful comparison of operating fundamentals between companies within its industries by eliminating the impact of capital structure and taxation differences between the companies. Additionally, Adjusted EBITDA is used by management to measure and report the Company’s financial performance to the Company’s Board of Directors, assists in providing a meaningful analysis of the Company’s operating performance and is used as a measurement in incentive compensation for management . Provided below is a reconciliation of segment Adjusted EBITDA to net (loss) income: Fiscal Year Ended October 31, 2020 October 31, 2019 October 31, 2018 Fire & Emergency Adjusted EBITDA $ 39.9 $ 43.2 $ 86.0 Commercial Adjusted EBITDA 34.5 56.0 38.1 Recreation Adjusted EBITDA 38.4 46.8 60.4 Corporate and Other Adjusted EBITDA (45.3 ) (43.9 ) (36.5 ) Depreciation and amortization (40.2 ) (45.4 ) (45.5 ) Interest expense, net (25.7 ) (32.4 ) (25.3 ) Benefit for income taxes 15.6 3.5 12.2 Transaction expenses (3.3 ) (1.0 ) (2.8 ) Sponsor expense reimbursement (0.5 ) (1.4 ) (0.9 ) Restructuring costs (9.9 ) (5.7 ) (7.0 ) Restructuring related charges (10.5 ) — — Stock-based compensation expense (7.8 ) (7.2 ) (6.3 ) Legal matters (1.8 ) (7.7 ) (5.5 ) Loss on sale of business (11.1 ) — — Gain on acquisition of business 8.6 — — Impairment charges (12.1 ) (8.9 ) (35.6 ) Earnings (losses) attributable to assets held for sale 0.8 (4.7 ) (9.9 ) Deferred purchase price payment (0.1 ) (3.5 ) (6.0 ) First year public company costs — — (1.5 ) Non-cash purchase accounting expense — — (0.9 ) Net (Loss) Income $ (30.5 ) $ (12.3 ) $ 13.0 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation |
Fiscal Year | Fiscal Year |
Use of Estimates | Use of Estimates |
Business Combinations | Business Combinations Assets acquired and liabilities assumed generally include tangible and intangible assets, and contingent assets and liabilities. When available, the estimated fair values of these assets and liabilities are determined based on observable inputs such as quoted market prices, information from comparable transactions, and the replacement cost of assets in the same condition or stage of usefulness (Level 1 and 2). If observable inputs are not available, unobservable inputs are used such as expected future cash flows or internally developed estimates of value (Level 3). |
Cash and Cash Equivalents | Cash and Cash Equivalents Deposits held with financial institutions may exceed the amount of insurance provided on such deposits. These deposits may be redeemed upon demand and are maintained with major financial institutions within the United States. As of October 31, 2020, the Company had $11.1 million of uninsured cash balances in excess of Federal Depository Insurance Company limits. |
Accounts Receivable | Accounts Receivable Receivables are written off when management determines collection is highly unlikely and collection efforts have ceased. The change in the allowance for uncollectible accounts is as follows: Fiscal Year Ended October 31, 2020 October 31, 2019 October 31, 2018 Beginning balance $ 0.7 $ 1.3 $ 1.1 Net recorded expense 1.3 0.2 0.6 Write-offs, net of recoveries/payments (0.2 ) (0.8 ) (0.4 ) Ending balance $ 1.8 $ 0.7 $ 1.3 |
Concentration of Credit Risk | Concentrations of Credit Risk |
Inventories | Inventories |
Property, Plant and Equipment | Property, Plant and Equipment Years Buildings, related improvements & land improvements 5-39 Machinery & equipment 3-15 Computer hardware & software 3-10 Office, furniture & other 3-15 Expenditures that extend the useful life of existing property, plant and equipment are capitalized and depreciated over the remaining useful life of the related asset. Expenditures for repairs and maintenance are expensed as incurred. When property, plant and equipment are retired or sold, the cost and related accumulated depreciation is removed from the Company’s balance sheet, with any gain or loss reflected in operations. Accumulated depreciation on capitalized lease assets is included in property, plant and equipment. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets For annual goodwill impairment testing purposes, fair values are estimated by utilizing the income approach and the market approach. Under the income approach, the Company determines fair value based on estimated future cash flows discounted by a risk-adjusted discount rate which corresponds with the Company’s and market-participant weighted-average cost of capital (“WACC”). Estimated future cash flows are based on the Company’s internal projection models, industry information and other assumptions deemed reasonable by management. Under the market approach, the Company derives the fair value of its reporting units based on revenue and earnings multiples of comparable publicly traded companies. Changes in assumptions underlying the impairment analyses can have an impact on the determination of cash flows and fair value, and such assumptions could change in such a manner that a future impairment may occur. For annual indefinite-lived intangible asset impairment testing purposes, fair values are estimated by utilizing the “relief from royalty” (RFR) method. Under the RFR method, an estimate is made as to the appropriate royalty income that would be negotiated in an arm’s-length transaction if the subject intangible asset were licensed from an independent third party. The royalty savings are then calculated by multiplying a royalty rate, expressed as a percentage of revenues, by a determined applicable level of future revenues provided per each trade name as estimated by the Company. The royalty rate is based on research of industry and market data related to transactions involving the licensing of comparable intangible assets. The resulting future royalty savings are then discounted to their present value equivalent utilizing an estimated WACC, adjusted for relative risk premiums specific to each trade name as well as the reporting unit housing it. As part of the annual test on both goodwill and indefinite-lived intangible assets, the Company may utilize a qualitative approach rather than a quantitative approach to determine if an impairment exists, considering various factors including industry changes, actual results as compared to forecasted results, or the timing of a recent acquisition, if applicable . The Company performed its annual goodwill and indefinite lived intangible asset impairment analyses as of August 1, 2020 and did not recognize an impairment loss as a result of the review. |
Long-Lived Assets Including Definite-Lived Intangible Assets | Long-Lived Assets Including Definite-Lived Intangible Assets |
Earnings (Loss) Per Common Share | Earnings (Loss) Per Common Share |
Comprehensive Income (Loss) | Comprehensive Income (Loss) |
Revenue Recognition | Revenue Recognition The Company’s primary source of revenue is generated from the manufacture and sale of specialty vehicles through its direct sales force or dealer network. The Company also generates revenue through separate contracts that relate to the sale of aftermarket parts and services. Revenue is typically recognized at a point-in-time, when control is transferred, which generally occurs when the product has been shipped to the customer or when it has been picked-up from the Company’s manufacturing facilities. Shipping and handling costs that occur after the transfer of control are fulfillment costs that are and are recorded in “Cost of Sales” in the Consolidated Statements of Operations when incurred or when the related product revenue is recognized, whichever is earlier. Periodically, certain customers request bill and hold transactions. In such cases, revenue is not recognized until after control has transferred which is generally when the customer has requested such transaction and has been notified that the product (i) has been completed according to customer specifications, (ii) has passed our quality control inspections, and (iii) has been separated from our inventory and is ready for physical transfer to the customer. Warranty obligations associated with the sale of a unit are assurance-type warranties that are a guarantee of the unit’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract. Contract Assets and Contract Liabilities The Company is generally entitled to bill its customers upon satisfaction of its performance obligations, and payment is usually received shortly after billing. Payments for certain contracts are received in advance of satisfying the related performance obligations. Such payments are recorded as customer advances in the Company’s Consolidated Balance Sheets. The corresponding performance obligations are generally satisfied within one year of the contract inception. During fiscal year 2020, the Company recognized $106.7 million of revenue that was included in the customer advances balance as of October 31, 2019. During fiscal year 2019, the Company recognized $87.9 million of revenue that was included in the customer advances balance of $117.8 million as of October 31, 2018. The Company’s payment terms do not include a significant financing component and the Company does not have significant contract assets. |
Warranty | Warranty |
Fair Value Measurements | Fair Value Measurements The Company determines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between unrelated market participants at the measurement date. The Company utilizes valuation techniques that maximize the use of observable inputs (Levels 1 and 2) and minimize the use of unobservable inputs (Level 3) within the fair value hierarchy established by the Financial Accounting Standards Board (“FASB”). For illustrative purposes, the levels within the FASB fair value hierarchy are as follows: Level 1 Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable, including the company’s own assumptions in determining fair value. The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements. |
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale The Company initially measures a disposal group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a disposal group until the date of sale. The Company assesses the fair value of a disposal group, less any costs to sell, each reporting period it remains classified as held for sale and reports any subsequent changes as an adjustment to the carrying value of the disposal group, as long as the new carrying value does not exceed the carrying value of the disposal group at the time it was initially classified as held for sale. Upon determining that a disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group, if material, in the line items assets held for sale and liabilities held for sale in the consolidated balance sheets. Refer to Note 6, Divestitures, Restructuring and Impairments, for further details. |
Income Taxes | Income Taxes The Company recognizes liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires the Company to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as the Company must determine the probability of various possible outcomes. The Company evaluates these uncertain tax positions on a quarterly basis or when new information becomes available to management. The evaluations are based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit and new audit activity. Such a change in recognition or measurement could result in the recognition of a tax benefit or an increase to the related provision. The Company includes interest and penalties related to income tax liabilities in the (benefit) provision for income taxes in the Company’s consolidated statements of income. Liabilities for income taxes payable, accrued interest and penalties that are due within one year of the balance sheet date are included in other current liabilities. |
Stock-Based Compensation | Stock-Based Compensation Stock compensation expense for performance stock unit awards is recorded over the vesting period based on the grant date fair value of the awards and achievement of specified performance targets. The grant date fair value is equal to the closing share price of the Company’s common stock on the date of grant. Forfeitures of performance stock units and awards are recognized as they occur. For stock options, compensation expense is recorded over the agreed upon vesting term of the associated stock option grants and is measured based upon the estimation of fair value of on the grant date by applying the Black-Scholes option-pricing valuation model (the “Black-Scholes Model”). The application of the Black-Scholes Model required us to make certain assumptions such as the fair value of our common stock on the grant date, forfeitures of option grants and the rate of dividend payments on our common stock. Other assumptions utilized in the Black-Scholes Model include volatility of the share price of select peer public companies and the risk-free rate. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted The following accounting pronouncements did not have a material impact on the Company’s consolidated financial statements: • In February 2016 FASB issued Accounting Standard Update (“ASU”) 2016-02, “Leases” (Accounting Standards Codification (ASC) 842). ASC 842 is intended to increase transparency and comparability among organizations by recognizing lease liabilities with corresponding right-of-use (“ROU”) assets on the balance sheet and disclosing key information about leasing arrangements. The Company adopted the new standard on November 1, 2019, following the optional transition method provided by ASU No. 2018-11. Accordingly, prior year comparative information was not recast to reflect the impact of the new guidance and therefore continues to be reported under the accounting guidance in effect during those periods (ASC 840). The most significant impact of the Company’s adoption of ASC 842 is the recognition of ROU assets and lease liabilities on the balance sheet for operating leases. The adoption did not have any impact on the Company’s results of operations or cash flows. ASC 842 provides a number of optional transition related practical expedients. The Company elected to adopt the standard using the package of practical expedients, which allowed the Company not to reassess prior conclusions about the identification of leases, the classification of leases, and the treatment of initial direct costs. ASC 842 also provides a number of optional practical expedients for an entity’s ongoing lessee accounting. In connection with our evaluation of these practical expedients, the Company has elected not to separate payments for lease components from payments for non-lease components for all classes of leases. Additionally, the Company has elected the short-term lease recognition exemption for all leases that qualify, which means ROU assets and lease liabilities will not be recognized for leases with an initial term of twelve months or less . • ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220)” (“ASU 2018-02”) Accounting Pronouncements - To Be Adopted • • Subsequent Events The Company evaluated subsequent events through January 7, 2021, the date on which the financial statements were available to be issued, and determined there were no items to disclose. |
Subsequent Events | Subsequent Events |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Accounting Policies [Abstract] | |
Change in Allowance for Uncollectible Accounts | The change in the allowance for uncollectible accounts is as follows: Fiscal Year Ended October 31, 2020 October 31, 2019 October 31, 2018 Beginning balance $ 0.7 $ 1.3 $ 1.1 Net recorded expense 1.3 0.2 0.6 Write-offs, net of recoveries/payments (0.2 ) (0.8 ) (0.4 ) Ending balance $ 1.8 $ 0.7 $ 1.3 |
Estimated Useful Lives of Property, Plant and equipment | The estimated useful lives are as follows: Years Buildings, related improvements & land improvements 5-39 Machinery & equipment 3-15 Computer hardware & software 3-10 Office, furniture & other 3-15 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Preliminary Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed for Spartan ER Assets: Accounts receivable, net $ 22.9 Inventories, net 83.3 Other current assets 0.7 Property, plant and equipment 13.6 Right of use assets 6.0 Total assets acquired 126.5 Liabilities: Accounts payable 5.3 Customer advances 35.3 Accrued warranty 1.3 Other current liabilities 8.7 Short-term lease obligations 0.8 Deferred income taxes 2.9 Long-term lease obligations 5.4 Other long-term liabilities 10.9 Total liabilities assumed 70.6 Net assets acquired 55.9 Consideration paid 47.3 Gain on acquisition of business $ (8.6 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net of Reserves | Inventories, net of reserves, consisted of the following: October 31, 2020 October 31, 2019 Chassis $ 61.1 $ 44.9 Raw materials 193.2 198.1 Work in process 230.3 200.8 Finished products 72.4 79.6 557.0 523.4 Less: reserves (19.8 ) (10.0 ) Total inventories, net $ 537.2 $ 513.4 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment consisted of the following: October 31, 2020 October 31, 2019 Land & land improvements $ 27.0 $ 24.2 Buildings & improvements 103.9 107.6 Machinery & equipment 95.2 93.1 Rental & used vehicles 4.9 24.4 Computer hardware & software 47.5 58.1 Office furniture & fixtures 5.1 5.8 Construction in process 8.1 11.4 291.7 324.6 Less: accumulated depreciation (123.3 ) (122.9 ) Total property, plant and equipment, net $ 168.4 $ 201.7 |
Divestiture Activities (Tables)
Divestiture Activities (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Schedule of Impairment and Restructuring Costs by Category and Segment | The impairment and restructuring costs, by category and segment, are summarized below: Employee Severance and Termination Benefits Contract termination and other costs Asset Impairments Fiscal Year Ended October 31, 2020 Fire & Emergency $ 3.2 $ 2.9 $ 3.3 $ 9.4 Commercial 0.2 — — 0.2 Recreation 0.4 — — 0.4 Corporate and Other 1.8 1.4 8.8 12.0 Total $ 5.6 $ 4.3 $ 12.1 $ 22.0 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill by Segment and Change in Net Carrying Value of Goodwill | The table below represents goodwill by segment: October 31, 2020 October 31, 2019 Fire & Emergency $ 88.6 $ 88.6 Commercial 26.2 28.7 Recreation 42.5 42.5 Total goodwill $ 157.3 $ 159.8 The change in the net carrying value amount of goodwill consisted of the following: October 31, 2020 October 31, 2019 Balance at beginning of period $ 159.8 $ 161.8 Activity during the year: Acquisitions — (2.0 ) Divestitures (2.5 ) — Balance at end of period $ 157.3 $ 159.8 |
Summary of Intangible Assets Excluding Goodwill | Intangible assets (excluding goodwill) consisted of the following: October 31, 2020 Weighted- Average Life Gross Accumulated Amortization Net Finite-lived intangible assets: Customer relationships 8.0 $ 66.2 $ (37.8 ) $ 28.4 Non-compete agreements 5.0 2.0 (1.7 ) 0.3 Trade names 7.0 1.3 (1.3 ) - 69.5 (40.8 ) 28.7 Indefinite-lived trade names 107.4 — 107.4 Total intangible assets, net $ 176.9 $ (40.8 ) $ 136.1 October 31, 2019 Weighted- Average Life Gross Accumulated Amortization Net Finite-lived intangible assets: Customer relationships 8.0 $ 126.7 $ (84.0 ) $ 42.7 Order backlog 1.0 6.7 (6.7 ) — Non-compete agreements 5.0 2.0 (1.3 ) 0.7 Trade names 7.0 3.5 (3.0 ) 0.5 Technology-related 7.0 0.9 (0.8 ) 0.1 139.8 (95.8 ) 44.0 Indefinite-lived trade names 115.9 — 115.9 Total intangible assets, net $ 255.7 $ (95.8 ) $ 159.9 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consisted of the following: October 31, 2020 October 31, 2019 Payroll and related benefits and taxes $ 25.8 $ 22.2 Incentive compensation 7.5 4.1 Customer sales programs 2.8 4.7 Restructuring costs 2.6 0.9 Restructuring related charges 2.6 — Interest payable 2.3 1.9 Dividends payable — 3.3 Deferred purchase price payment — 4.5 Other 29.9 28.6 Total other current liabilities $ 73.5 $ 70.2 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | The Company was obligated under the following debt instruments: October 31, 2020 October 31, 2019 April 2017 ABL facility $ 175.0 $ 210.0 Term Loan, net of debt issuance costs ($1.7 and $2.2) 167.2 170.2 342.2 380.2 Less: current maturities (1.7 ) (3.6 ) Long-term debt, less current maturities $ 340.5 $ 376.6 |
Summary of Contractual Maturities of Debt | Aggregate contractual maturities of debt in future fiscal years are as follows: 2021 1.7 2022 342.2 Thereafter — Total debt $ 343.9 |
Warranties (Tables)
Warranties (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Guarantees [Abstract] | |
Schedule of Changes in Warranty Liability | Changes in the Company’s warranty liability consisted of the following: Fiscal Year Ended October 31, 2020 October 31, 2019 Balance at beginning of year $ 22.6 $ 30.8 Warranty provisions 38.0 20.8 Settlements made (35.1 ) (29.0 ) Acquired business 12.2 — Divested businesses (0.7 ) — Balance at end of year $ 37.0 $ 22.6 |
Accrued Warranty Classified in Consolidated Balance Sheets | Accrued warranty is classified in the Company’s consolidated balance sheets as follows: October 31, 2020 October 31, 2019 Current liabilities $ 24.1 $ 16.1 Other long-term liabilities 12.9 6.5 Total warranty liability $ 37.0 $ 22.6 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Leases [Abstract] | |
Schedule of Future Minimum Operating Lease Payments Due Under ASC 842 | At October 31, 2020, future minimum operating lease payments due under ASC 842 are summarized by fiscal year in the table below: 2021 $ 9.4 2022 7.6 2023 4.8 2024 2.8 2025 1.0 Thereafter 2.4 Total undiscounted lease payments 28.0 Less: imputed interest (2.7 ) Total lease liabilities $ 25.3 |
Schedule of Future Minimum Operating Lease Payments Due Under ASC 840 | future minimum operating lease payments as of October 31, 2019 were as follows 2020 $ 8.5 2021 7.5 2022 5.8 2023 3.3 2024 1.5 Thereafter 0.1 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Summary of Stock Option Activity | Stock option activity for fiscal years 2020 was as follows: Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value of Options Outstanding, beginning of year 647,800 $ 7.64 5.9 $ 3,113 Granted — — — — Exercised (130,000 ) 7.90 5.1 569 Forfeited (10,000 ) 8.11 — 7 Expired (223,000 ) 7.32 — 161 Outstanding, end of year 284,800 $ 7.77 5.0 $ 79 Exercisable, end of year 284,800 $ 7.77 5.0 $ 79 |
Restricted Stock Awards [Member] | |
Summary of Nonvested Stock Units Outstanding | The change in the number of nonvested restricted stock awards outstanding consisted of the following: Number of Awards Weighted-Average Grant Date Fair Value Per Award Nonvested, beginning of year — $ — Granted 1,103,568 8.64 Vested — — Forfeited (420,651 ) 11.68 Nonvested, end of year 682,917 $ 6.76 |
Restricted Stock Units [Member] | |
Summary of Nonvested Stock Units Outstanding | The change in the number of nonvested restricted stock units outstanding consisted of the following Number of Units Weighted-Average Grant Date Fair Value Per Unit Nonvested, beginning of year 1,394,205 $ 11.94 Granted 307,127 10.81 Vested (472,848 ) 12.43 Forfeited (308,223 ) 11.91 Nonvested, end of year 920,261 $ 11.42 |
Performance Stock Units [Member] | |
Summary of Nonvested Stock Units Outstanding | The change in the number of nonvested performance stock units consisted of the following: Number of Units Weighted-Average Grant Date Fair Value Per Unit Nonvested, beginning of year 48,734 $ 27.36 Granted 507,003 5.23 Vested (24,367 ) 27.36 Forfeited (80,000 ) 6.74 Nonvested, end of year 451,370 $ 6.16 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Before (Benefit) Provision for Income Taxes | Income is taxed in the following jurisdictions: Fiscal Year Ended October 31, 2020 October 31, 2019 October 31, 2018 Domestic $ (45.6 ) $ (16.5 ) $ 5.2 Foreign (0.5 ) (0.1 ) (3.0 ) (Losses) income before (benefit) provision for income taxes $ (46.1 ) $ (16.6 ) $ 2.2 |
(Benefit) Provision for Income Taxes | Benefit for income taxes is summarized as follows: Fiscal Year Ended October 31, 2020 October 31, 2019 October 31, 2018 Current: Federal $ 10.4 $ 0.4 $ (6.8 ) State 1.8 1.1 0.1 Foreign — — — Total Current $ 12.2 $ 1.5 $ (6.7 ) Deferred: Federal (24.0 ) (4.0 ) (6.4 ) State (3.8 ) (1.0 ) 0.9 Foreign — — 1.4 Total Deferred (27.8 ) (5.0 ) (4.1 ) Benefit for income taxes $ (15.6 ) $ (3.5 ) $ (10.8 ) |
Reconciliation of Income Tax (Benefit)/Expense at Federal Statutory Rate to Company's (Benefit) Provision for Income Taxes | Income tax (benefit) provision at the federal statutory rate is reconciled to the Company’s benefit for income taxes as follows: Fiscal Year Ended October 31, 2020 October 31, 2019 October 31, 2018 Income tax (benefit) provision at federal statutory rate $ (9.7 ) $ (3.5 ) $ 0.5 Taxes on foreign income which differ from the U.S. statutory rate — — (0.3 ) State (benefit) expense (2.3 ) (0.2 ) 0.5 CARES Act impact (3.5 ) — — Manufacturing and research incentives (0.9 ) (0.6 ) (2.7 ) Nondeductible items 0.8 0.2 0.7 Uncertain tax positions 0.4 (0.1 ) (0.4 ) Valuation allowance 0.2 — 2.2 Remeasurement of deferred taxes - U.S. Tax Reform — — (11.3 ) Bargain purchase gain (2.2 ) — — Stock-based compensation 1.4 0.8 — Other items 0.2 (0.1 ) — Benefit for income taxes $ (15.6 ) $ (3.5 ) $ (10.8 ) |
Temporary Differences and Carryforwards that Give Rise to Deferred Tax Assets and Liabilities | Temporary differences and carryforwards that give rise to deferred tax assets and liabilities include the following items: Fiscal Year Ended October 31, 2020 October 31, 2019 Deferred tax assets: Product warranty $ 6.4 $ 5.8 Inventory 6.5 5.0 Deferred employee benefits 5.0 4.3 Net operating loss and credit carryforwards 4.9 13.3 Other reserves and allowances 5.9 3.2 Gross deferred tax assets 28.7 31.6 Less: valuation allowance (1.7 ) (2.1 ) Deferred tax assets 27.0 29.5 Deferred tax liabilities: Intangible assets (24.5 ) (26.5 ) Property, plant and equipment (4.6 ) (16.3 ) Other (0.8 ) (2.0 ) Deferred tax liabilities (29.9 ) (44.8 ) Net deferred tax liability $ (2.9 ) $ (15.3 ) The net deferred tax assets/ (liabilities) recorded in the consolidated balance sheet are as follows: Fiscal Year Ended October 31, 2020 October 31, 2019 Noncurrent deferred tax asset $ — $ 0.1 Noncurrent deferred tax liability (2.9 ) (15.4 ) Net deferred tax liability $ (2.9 ) $ (15.3 ) |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits are as follows: Fiscal Year Ended October 31, 2020 October 31, 2019 October 31, 2018 Balance at beginning of year $ 2.4 $ 2.1 $ 2.6 Additions (reductions) for tax positions in prior year 0.2 0.3 0.3 Additions for tax positions in current year 0.1 0.1 0.3 Cash settlements with taxing authorities — — (0.2 ) Statute of limitations — (0.1 ) (0.9 ) Balance at end of year $ 2.7 $ 2.4 $ 2.1 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Contingent Liabilities | The Company is contingently liable under bid, performance and specialty bonds and has open standby letters of credit issued by the Company’s banks in favor of third parties as follows: October 31, 2020 October 31, 2019 Performance, bid and specialty bonds $ 328.6 $ 229.9 Open standby letters of credit 11.0 14.3 Total $ 339.6 $ 244.2 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic Weighted-Average Common Shares Outstanding to Diluted Weighted-Average Shares Outstanding | The table below reconciles basic weighted-average common shares outstanding to diluted weighted-average shares outstanding for fiscal years 2020, 2019 and 2018: Fiscal Year Ended October 31, 2020 October 31, 2019 October 31, 2018 Basic weighted-average common shares outstanding 63,044,872 62,789,165 63,966,977 Dilutive stock options — — 1,242,644 Dilutive restricted stock units — — 548 Dilutive restricted stock awards — — — Dilutive performance stock units — — — Diluted weighted-average common shares 63,044,872 62,789,165 65,210,169 |
Exclusions from Calculation of Weighted-Average Shares Outstanding Assuming Dilution Due to Anti-Dilutive Effect of Common Stock Equivalents | The table below represents exclusions from the calculation of weighted-average shares outstanding assuming dilution due to the anti-dilutive effect of the common stock equivalents for fiscal years 2020, 2019 and 2018: Fiscal Year Ended October 31, 2020 October 31, 2019 October 31, 2018 Anti-Dilutive Stock Options 284,800 988,551 97,085 Anti-Dilutive Restricted Stock Awards 682,917 1,783,271 574,359 Anti-Dilutive Restricted Stock Units 920,261 — — Anti-Dilutive Performance Stock Units 451,370 18,408 91,509 Anti-Dilutive Common Stock Equivalents 2,339,348 2,790,230 762,953 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Oct. 31, 2020 | |
Segment Reporting [Abstract] | |
Selected Financial Information of Segments | Selected financial information of the Company’s segments is as follows: Fiscal Year 2020 Fire & Emergency Commercial Recreation Corporate, Other & Elims Consolidated Net Sales $ 1,132.0 $ 484.8 $ 657.8 $ 3.0 $ 2,277.6 Depreciation and amortization $ 13.5 $ 5.7 $ 13.7 $ 7.3 $ 40.2 Capital expenditures $ 7.1 $ 2.7 $ 2.0 $ 1.7 $ 13.5 Total assets $ 731.3 $ 207.1 $ 305.4 $ 68.5 $ 1,312.3 Adjusted EBITDA $ 39.9 $ 34.5 $ 38.4 $ (45.3 ) Fiscal Year 2019 Fire & Emergency Commercial Recreation Corporate, Other & Elims Consolidated Net Sales $ 967.9 $ 720.0 $ 716.3 $ (0.5 ) $ 2,403.7 Depreciation and amortization $ 14.1 $ 8.7 $ 15.6 $ 7.3 $ 45.7 Capital expenditures $ 8.6 $ 3.7 $ 2.7 $ 5.8 $ 20.8 Total assets $ 617.2 $ 317.7 $ 316.4 $ 95.8 $ 1,347.1 Adjusted EBITDA $ 43.2 $ 56.0 $ 46.8 $ (43.9 ) Fiscal Year 2018 Fire & Emergency Commercial Recreation Corporate and Other Consolidated Net Sales $ 956.6 $ 638.5 $ 811.9 $ (25.7 ) $ 2,381.3 Depreciation and amortization $ 15.3 $ 10.0 $ 13.4 $ 7.3 $ 46.0 Capital expenditures $ 7.9 $ 4.2 $ 9.7 $ 18.8 $ 40.6 Total assets $ 612.4 $ 293.2 $ 383.2 $ 119.3 $ 1,408.1 Adjusted EBITDA $ 86.0 $ 38.1 $ 60.4 $ (36.5 ) |
Net Sales by Geographic Region Based on Product Shipment Destination | The following tables present net sales by geographic region based on product shipment destination for fiscal years 2020, 2019 and 2018: Fiscal Year 2020 U.S. and Canada Europe/ Africa Rest of World Total Fire & Emergency $ 1,088.8 $ 0.5 $ 42.7 $ 1,132.0 Commercial 480.2 0.9 3.7 484.8 Recreation 652.7 0.2 4.9 657.8 Corporate, Other & Elims 3.0 — — 3.0 Total Net Sales $ 2,224.7 $ 1.6 $ 51.3 $ 2,277.6 Fiscal Year 2019 U.S. and Canada Europe/ Africa Rest of World Total Fire & Emergency $ 909.0 $ 3.1 $ 55.8 $ 967.9 Commercial 713.5 0.2 6.3 720.0 Recreation 706.4 0.6 9.3 716.3 Corporate, Other & Elims (0.5 ) — — (0.5 ) Total Net Sales $ 2,328.4 $ 3.9 $ 71.4 $ 2,403.7 Fiscal Year 2018 U.S. and Canada Europe/ Africa Rest of World Total Fire & Emergency $ 938.2 $ 3.3 $ 15.1 $ 956.6 Commercial 632.3 — 6.2 638.5 Recreation 808.2 — 3.7 811.9 Corporate & Other (26.2 ) 0.1 0.4 (25.7 ) Total Net Sales—External Customers $ 2,352.5 $ 3.4 $ 25.4 $ 2,381.3 |
Reconciliation of Segment Adjusted EBITDA to Net (Loss) Income | Provided below is a reconciliation of segment Adjusted EBITDA to net (loss) income: Fiscal Year Ended October 31, 2020 October 31, 2019 October 31, 2018 Fire & Emergency Adjusted EBITDA $ 39.9 $ 43.2 $ 86.0 Commercial Adjusted EBITDA 34.5 56.0 38.1 Recreation Adjusted EBITDA 38.4 46.8 60.4 Corporate and Other Adjusted EBITDA (45.3 ) (43.9 ) (36.5 ) Depreciation and amortization (40.2 ) (45.4 ) (45.5 ) Interest expense, net (25.7 ) (32.4 ) (25.3 ) Benefit for income taxes 15.6 3.5 12.2 Transaction expenses (3.3 ) (1.0 ) (2.8 ) Sponsor expense reimbursement (0.5 ) (1.4 ) (0.9 ) Restructuring costs (9.9 ) (5.7 ) (7.0 ) Restructuring related charges (10.5 ) — — Stock-based compensation expense (7.8 ) (7.2 ) (6.3 ) Legal matters (1.8 ) (7.7 ) (5.5 ) Loss on sale of business (11.1 ) — — Gain on acquisition of business 8.6 — — Impairment charges (12.1 ) (8.9 ) (35.6 ) Earnings (losses) attributable to assets held for sale 0.8 (4.7 ) (9.9 ) Deferred purchase price payment (0.1 ) (3.5 ) (6.0 ) First year public company costs — — (1.5 ) Non-cash purchase accounting expense — — (0.9 ) Net (Loss) Income $ (30.5 ) $ (12.3 ) $ 13.0 |
Nature of Operations Equity S_2
Nature of Operations Equity Sponsor and Related Party Transactions - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | |
Primary Equity Holder [Member] | |||||
Nature Of Operations Equity Sponsor And Related Party Transactions [Line Items] | |||||
Selling, general and administrative expenses charged by primary equity holder | $ 500,000 | $ 1,400,000 | $ 900,000 | ||
Management [Member] | |||||
Nature Of Operations Equity Sponsor And Related Party Transactions [Line Items] | |||||
Rent expense | $ 700,000 | 1,900,000 | $ 1,500,000 | ||
American Industrial Partners [Member] | |||||
Nature Of Operations Equity Sponsor And Related Party Transactions [Line Items] | |||||
Equity interest held by operating partnership, voting equity | 53.30% | ||||
China JV [Member] | |||||
Nature Of Operations Equity Sponsor And Related Party Transactions [Line Items] | |||||
Investments in joint ventures | $ 0 | $ 6,700,000 | $ 900,000 | ||
Equity interest in joint ventures | 10.00% | ||||
Loan interest rate | 5.00% |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Accounting Policies And General Information [Line Items] | |||
Uninsured cash balances | $ 11.1 | ||
Revenue recognized included in customer advances | $ 106.7 | $ 87.9 | |
Customer advances | $ 117.8 | ||
Maximum [Member] | |||
Accounting Policies And General Information [Line Items] | |||
Expected period to sell the business and other assets | 1 year | ||
Customer Concentration Risk [Member] | Net sales [Member] | Top Five Customers [Member] | |||
Accounting Policies And General Information [Line Items] | |||
Concentration risk, percentage | 14.00% | 16.00% | 13.00% |
Accounting Policies - Change in
Accounting Policies - Change in the Allowance for Uncollectible Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Accounting Policies [Abstract] | |||
Beginning balance | $ 0.7 | $ 1.3 | $ 1.1 |
Net recorded expense | 1.3 | 0.2 | 0.6 |
Write-offs, net of recoveries/payments | (0.2) | (0.8) | (0.4) |
Ending balance | $ 1.8 | $ 0.7 | $ 1.3 |
Accounting Policies - Estimated
Accounting Policies - Estimated Useful Lives of Property, Plant and equipment (Detail) | 12 Months Ended |
Oct. 31, 2020 | |
Minimum [Member] | Buildings, Related Improvements & Land Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Property plant and equipment estimated useful lives | P5Y |
Minimum [Member] | Machinery & Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property plant and equipment estimated useful lives | P3Y |
Minimum [Member] | Computer Hardware & Software [Member] | |
Property Plant And Equipment [Line Items] | |
Property plant and equipment estimated useful lives | P3Y |
Minimum [Member] | Office Furniture Equipment & Other [Member] | |
Property Plant And Equipment [Line Items] | |
Property plant and equipment estimated useful lives | P3Y |
Maximum [Member] | Buildings, Related Improvements & Land Improvements [Member] | |
Property Plant And Equipment [Line Items] | |
Property plant and equipment estimated useful lives | P39Y |
Maximum [Member] | Machinery & Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property plant and equipment estimated useful lives | P15Y |
Maximum [Member] | Computer Hardware & Software [Member] | |
Property Plant And Equipment [Line Items] | |
Property plant and equipment estimated useful lives | P10Y |
Maximum [Member] | Office Furniture Equipment & Other [Member] | |
Property Plant And Equipment [Line Items] | |
Property plant and equipment estimated useful lives | P15Y |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Millions | Jan. 12, 2018 | Feb. 01, 2020 | Oct. 31, 2020 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 |
Business Acquisition [Line Items] | ||||||||
Cash acquired from acquisition | $ 7.5 | |||||||
Payments to acquire business, net of cash acquired | $ 47.3 | $ 60 | ||||||
Goodwill | $ 157.3 | 157.3 | $ 159.8 | $ 161.8 | ||||
Business combination bargain purchase gain recognized decrease amount | 3,300 | |||||||
Gain on acquisition of business | 8.6 | |||||||
Net increase in goodwill | (2) | |||||||
Lance Camper Mfg. Corp. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of voting interest acquired | 100.00% | |||||||
Business acquisition, purchase price paid | $ 67.3 | |||||||
Cash acquired from acquisition | 6 | |||||||
Payments to acquire business, net of cash acquired | 61.3 | |||||||
Deferred purchase price payable | 5 | |||||||
Deferred purchase price paid | $ 5 | $ 5 | ||||||
Goodwill | 25.5 | |||||||
Business acquisition, purchase price | 67.3 | |||||||
Lance Camper Mfg. Corp. [Member] | Maximum [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration liability | $ 10 | |||||||
Spartan Emergency Response [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, purchase price paid | $ 54.8 | |||||||
Business acquisition, purchase price | 54.8 | |||||||
Gain on acquisition of business | $ 8.6 | 8.6 | $ 11.9 | |||||
Net sales | 212.4 | |||||||
Operating income | 10 | |||||||
Spartan Emergency Response [Member] | Selling, General and Administrative Expenses [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition related costs | $ 1.6 |
Acquisitions - Schedule of Prel
Acquisitions - Schedule of Preliminary Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Feb. 01, 2020 | Oct. 31, 2020 | Oct. 31, 2019 | |
Liabilities: | |||
Gain on acquisition of business | $ (8.6) | ||
Spartan Emergency Response [Member] | |||
Assets: | |||
Accounts receivable, net | $ 22.9 | ||
Inventories, net | 83.3 | ||
Other current assets | 0.7 | ||
Property, plant and equipment | 13.6 | ||
Right of use assets | 6 | ||
Total assets acquired | 126.5 | ||
Liabilities: | |||
Accounts payable | 5.3 | ||
Customer advances | 35.3 | ||
Accrued warranty | 1.3 | ||
Other current liabilities | 8.7 | ||
Short-term lease obligations | 0.8 | ||
Deferred income taxes | 2.9 | ||
Long-term lease obligations | 5.4 | ||
Other long-term liabilities | 10.9 | ||
Total liabilities assumed | 70.6 | ||
Net assets acquired | 55.9 | ||
Consideration paid | 47.3 | ||
Gain on acquisition of business | $ (8.6) | $ (8.6) | $ (11.9) |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories, Net of Reserves (Detail) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Chassis | $ 61.1 | $ 44.9 |
Raw materials | 193.2 | 198.1 |
Work in process | 230.3 | 200.8 |
Finished products | 72.4 | 79.6 |
Inventory, Gross, Total | 557 | 523.4 |
Less: reserves | (19.8) | (10) |
Total inventories, net | $ 537.2 | $ 513.4 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 291.7 | $ 324.6 |
Less: accumulated depreciation | (123.3) | (122.9) |
Total property, plant and equipment, net | 168.4 | 201.7 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 27 | 24.2 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 103.9 | 107.6 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 95.2 | 93.1 |
Rental and Used Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4.9 | 24.4 |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 47.5 | 58.1 |
Office Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5.1 | 5.8 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 8.1 | $ 11.4 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 26.9 | $ 28.3 | $ 27.9 |
Divestiture, Restructuring and
Divestiture, Restructuring and Impairments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2020 | Jul. 31, 2020 | Jan. 31, 2020 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Net cash proceeds from sale of business | $ 54.5 | |||||||
Gain on sale of business | (11.1) | |||||||
Proceeds from sale of businesses | 54.5 | |||||||
Restructuring | 9.9 | $ 5.7 | $ 7.2 | |||||
Impairment charges | 12.1 | 8.9 | $ 35.6 | |||||
Restructuring charges accrued | $ 2.6 | 2.6 | 0.9 | |||||
REV Coach Segment [Member] | ||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Net cash proceeds from sale of business | $ 4 | |||||||
Proceeds from sale of businesses | $ 4 | |||||||
Property, plant and equipment, net | 0.2 | |||||||
Inventories, net | 14 | |||||||
Accounts receivable, net | 0.4 | |||||||
Other current and long-term assets | 4.9 | |||||||
Accounts payable | 11.7 | |||||||
Other current and long-term liabilities | $ 3.7 | |||||||
Mobility Van Business [Member] | Commercial Segment [Member] | ||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Annual sales of discontinued operation | $ 40 | |||||||
Regional Technical Center [Member] | ||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Net cash proceeds from sale of business | $ 11.4 | |||||||
Gain on sale of business | 1.2 | |||||||
Proceeds from sale of businesses | $ 11.4 | |||||||
Shuttle Bus Businesses [Member] | ||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Net cash proceeds from sale of business | 1.6 | $ 48.9 | ||||||
Gain on sale of business | $ 11.1 | |||||||
Proceeds from sale of businesses | $ 1.6 | $ 48.9 |
Divestiture, Restructuring an_2
Divestiture, Restructuring and Impairments - Schedule of Impairment and Restructuring Costs by Category and Segment (Detail) $ in Millions | 12 Months Ended |
Oct. 31, 2020USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Impairment and restructuring costs | $ 22 |
Employee Severance and Termination Benefits [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Impairment and restructuring costs | 5.6 |
Contract Termination and Other Costs [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Impairment and restructuring costs | 4.3 |
Asset Impairments [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Impairment and restructuring costs | 12.1 |
Fire & Emergency [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Impairment and restructuring costs | 9.4 |
Fire & Emergency [Member] | Employee Severance and Termination Benefits [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Impairment and restructuring costs | 3.2 |
Fire & Emergency [Member] | Contract Termination and Other Costs [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Impairment and restructuring costs | 2.9 |
Fire & Emergency [Member] | Asset Impairments [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Impairment and restructuring costs | 3.3 |
Commercial [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Impairment and restructuring costs | 0.2 |
Commercial [Member] | Employee Severance and Termination Benefits [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Impairment and restructuring costs | 0.2 |
Recreation [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Impairment and restructuring costs | 0.4 |
Recreation [Member] | Employee Severance and Termination Benefits [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Impairment and restructuring costs | 0.4 |
Corporate And Other [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Impairment and restructuring costs | 12 |
Corporate And Other [Member] | Employee Severance and Termination Benefits [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Impairment and restructuring costs | 1.8 |
Corporate And Other [Member] | Contract Termination and Other Costs [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Impairment and restructuring costs | 1.4 |
Corporate And Other [Member] | Asset Impairments [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Impairment and restructuring costs | $ 8.8 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Goodwill by Segment (Detail) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 |
Goodwill [Line Items] | |||
Goodwill | $ 157.3 | $ 159.8 | $ 161.8 |
Fire & Emergency [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 88.6 | 88.6 | |
Commercial [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 26.2 | 28.7 | |
Recreation [Member] | |||
Goodwill [Line Items] | |||
Goodwill | $ 42.5 | $ 42.5 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Change in Net Carrying Value of Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Balance at beginning of period | $ 159.8 | $ 161.8 |
Acquisitions | (2) | |
Divestitures | (2.5) | |
Balance at end of period | $ 157.3 | $ 159.8 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Intangible Assets Excluding Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Intangible Assets Excluding Goodwill [Line Items] | ||
Finite-lived intangible assets, gross | $ 69.5 | $ 139.8 |
Finite-lived intangible assets, accumulated amortization | (40.8) | (95.8) |
Finite-lived intangible assets, net | 28.7 | 44 |
Indefinite-lived trade names | 107.4 | 115.9 |
Total intangible assets, gross | 176.9 | 255.7 |
Total intangible assets, net | $ 136.1 | $ 159.9 |
Customer Relationships [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Finite-lived intangible assets, Weighted-Average Life | 8 years | 8 years |
Finite-lived intangible assets, gross | $ 66.2 | $ 126.7 |
Finite-lived intangible assets, accumulated amortization | (37.8) | (84) |
Finite-lived intangible assets, net | $ 28.4 | $ 42.7 |
Order Backlog [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Finite-lived intangible assets, Weighted-Average Life | 1 year | |
Finite-lived intangible assets, gross | $ 6.7 | |
Finite-lived intangible assets, accumulated amortization | $ (6.7) | |
Non-compete Agreements [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Finite-lived intangible assets, Weighted-Average Life | 5 years | 5 years |
Finite-lived intangible assets, gross | $ 2 | $ 2 |
Finite-lived intangible assets, accumulated amortization | (1.7) | (1.3) |
Finite-lived intangible assets, net | $ 0.3 | $ 0.7 |
Trade Names [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Finite-lived intangible assets, Weighted-Average Life | 7 years | 7 years |
Finite-lived intangible assets, gross | $ 1.3 | $ 3.5 |
Finite-lived intangible assets, accumulated amortization | $ (1.3) | (3) |
Finite-lived intangible assets, net | $ 0.5 | |
Technology-related Intangible Assets [Member] | ||
Intangible Assets Excluding Goodwill [Line Items] | ||
Finite-lived intangible assets, Weighted-Average Life | 7 years | |
Finite-lived intangible assets, gross | $ 0.9 | |
Finite-lived intangible assets, accumulated amortization | (0.8) | |
Finite-lived intangible assets, net | $ 0.1 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 13.3 | $ 17.4 | $ 18.1 |
Estimated future amortization expense of intangible assets year one | 9.8 | ||
Estimated future amortization expense of intangible assets year two | 7.1 | ||
Estimated future amortization expense of intangible assets year three | 3.5 | ||
Estimated future amortization expense of intangible assets year four | 2.3 | ||
Estimated future amortization expense of intangible assets year five | $ 1.7 |
Other Current Liabilities - Sch
Other Current Liabilities - Schedule of Other Current Liabilities (Detail) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Payroll and related benefits and taxes | $ 25.8 | $ 22.2 |
Incentive compensation | 7.5 | 4.1 |
Customer sales programs | 2.8 | 4.7 |
Restructuring costs | 2.6 | 0.9 |
Restructuring related charges | 2.6 | |
Interest payable | 2.3 | 1.9 |
Dividends payable | 3.3 | |
Deferred purchase price payment | 4.5 | |
Other | 29.9 | 28.6 |
Total other current liabilities | $ 73.5 | $ 70.2 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Debt Instruments [Abstract] | ||
April 2017 ABL facility | $ 175 | $ 210 |
Term Loan, net of debt issuance costs ($1.7 and $2.2) | 167.2 | 170.2 |
Long term debt including current maturities | 342.2 | 380.2 |
Less: current maturities | (1.7) | (3.6) |
Long-term debt, less current maturities | $ 340.5 | $ 376.6 |
Long-Term Debt - Summary of L_2
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) - USD ($) $ in Millions | Oct. 31, 2020 | Apr. 29, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Oct. 18, 2019 | Mar. 29, 2019 | Jul. 18, 2018 | Apr. 25, 2017 |
Debt Instrument [Line Items] | ||||||||
Debt issuance costs | $ 0.2 | $ 0.4 | $ 0.2 | |||||
Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance costs | $ 1.7 | $ 2.2 | $ 0.8 | $ 0.6 | $ 2 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Mar. 29, 2019 | Jul. 18, 2018 | Dec. 22, 2017 | Apr. 25, 2017 | Oct. 31, 2020 | Jul. 31, 2022 | Apr. 30, 2020 | Apr. 29, 2020 | Jan. 31, 2020 | Jan. 30, 2020 | Oct. 31, 2019 | Oct. 18, 2019 | Oct. 17, 2019 |
Debt Instrument [Line Items] | |||||||||||||
Debt issuance costs | $ 200,000 | $ 400,000 | $ 200,000 | ||||||||||
Weighted-average interest rate on term loan | 1.85% | ||||||||||||
Secured leverage declined basis points | 0.25% | ||||||||||||
Weighted-average interest rate | 1.85% | ||||||||||||
Maximum [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Secured leverage net ratio | 1.25% | 5.25% | 5.00% | 4.00% | 4.00% | 3.50% | |||||||
Maximum [Member] | Scenario, Forecast | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Secured leverage net ratio | 4.25% | ||||||||||||
April 2017 Asset Based Lending Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 350,000,000 | ||||||||||||
Debt issuance costs | $ 400,000 | 4,900,000 | $ 400,000 | ||||||||||
Additional increase in borrowing capacity | $ 100,000,000 | ||||||||||||
Debt instrument maturity date | Apr. 25, 2022 | ||||||||||||
Additional increase in borrowing capacity | $ 100,000,000 | ||||||||||||
Available current borrowing capacity | $ 283,400,000 | ||||||||||||
April 2017 Asset Based Lending Facility [Member] | Base Rate [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument applicable interest rate margins | 0.75% | ||||||||||||
April 2017 Asset Based Lending Facility [Member] | Eurodollar [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument applicable interest rate margins | 1.75% | ||||||||||||
Required annual payment percentage | 0.00% | ||||||||||||
April 2017 Asset Based Lending Facility [Member] | Minimum [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 350,000,000 | 450,000,000 | |||||||||||
April 2017 Asset Based Lending Facility [Member] | Maximum [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 450,000,000 | $ 500,000,000 | |||||||||||
Fixed charge coverage ratio | 100.00% | ||||||||||||
April 2017 Asset Based Lending Facility [Member] | Swing Lines Loan [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 30,000,000 | ||||||||||||
April 2017 Asset Based Lending Facility [Member] | Letter of Credit [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | 35,000,000 | ||||||||||||
Term Loan [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issuance costs | $ 800,000 | $ 600,000 | $ 2,000,000 | $ 1,700,000 | $ 2,200,000 | ||||||||
Debt instrument maturity date | Apr. 25, 2022 | ||||||||||||
Additional increase in borrowing capacity | 50,000,000 | 50,000,000 | |||||||||||
Required annual payment percentage | 0.25% | ||||||||||||
Weighted-average interest rate on term loan | 5.25% | ||||||||||||
Debt principal amount | $ 75,000,000 | ||||||||||||
Weighted-average interest rate | 5.25% | ||||||||||||
Term Loan [Member] | Base Rate [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument applicable interest rate margins | 3.25% | ||||||||||||
Debt instrument frequency of payment | Quarterly | ||||||||||||
Term Loan [Member] | Eurodollar [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument applicable interest rate margins | 4.25% | ||||||||||||
Debt instrument , floor interest rate | 1.00% | ||||||||||||
Debt instrument frequency of payment | Monthly or Quarterly | ||||||||||||
Term Loan [Member] | Minimum [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | 125,000,000 | 75,000,000 | |||||||||||
Term Loan [Member] | Maximum [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 175,000,000 | $ 125,000,000 | |||||||||||
Additional increase in borrowing capacity | $ 125,000,000 |
Long-Term Debt - Summary of Con
Long-Term Debt - Summary of Contractual Maturities of Debt (Detail) $ in Millions | Oct. 31, 2020USD ($) |
Debt Instruments [Abstract] | |
2021 | $ 1.7 |
2022 | 342.2 |
Total debt | $ 343.9 |
Warranties - Schedule of Change
Warranties - Schedule of Changes in Warranty Liability (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Guarantees [Abstract] | ||
Balance at beginning of year | $ 22.6 | $ 30.8 |
Warranty provisions | 38 | 20.8 |
Settlements made | (35.1) | (29) |
Acquired business | 12.2 | |
Divested businesses | (0.7) | |
Balance at end of year | $ 37 | $ 22.6 |
Warranties - Accrued Warranty C
Warranties - Accrued Warranty Classified in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 |
Guarantees [Abstract] | |||
Current liabilities | $ 24.1 | $ 16.1 | |
Other long-term liabilities | 12.9 | 6.5 | |
Total warranty liability | $ 37 | $ 22.6 | $ 30.8 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 12 Months Ended |
Oct. 31, 2020USD ($) | |
Leases [Abstract] | |
Operating Lease, Cost | $ 10.1 |
Operating Lease, Payments | $ 9.4 |
Weighted average remaining lease term for operating leases | 4 years 6 months |
Weighted average discount rate for operating leases | 5.00% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Operating Lease Payments Due Under ASC 842 (Detail) $ in Millions | Oct. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 9.4 |
2022 | 7.6 |
2023 | 4.8 |
2024 | 2.8 |
2025 | 1 |
Thereafter | 2.4 |
Total undiscounted lease payments | 28 |
Less: imputed interest | (2.7) |
Total lease liabilities | $ 25.3 |
Leases - Schedule of Future M_2
Leases - Schedule of Future Minimum Operating Lease Payments Due Under ASC 840 (Detail) $ in Millions | Oct. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 8.5 |
2021 | 7.5 |
2022 | 5.8 |
2023 | 3.3 |
2024 | 1.5 |
Thereafter | $ 0.1 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Defined Benefit Plans And Other Postretirement Benefit Plans Disclosures [Abstract] | |||
Maximum defer net employment income percentage | 100.00% | ||
Discretionary contribution amount | $ 9.8 | $ 9.7 | $ 9.7 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Detail) - USD ($) | Sep. 05, 2018 | Mar. 20, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2020 |
Equity Class Of Treasury Stock [Line Items] | |||||
Stock repurchase program, total cost | $ 8,300,000 | $ 53,300,000 | |||
Common Stock [Member] | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Stock repurchase program, authorized amount to repurchase issued and outstanding common stock | $ 50,000,000 | ||||
Stock repurchase program, expiration date | Sep. 4, 2020 | Mar. 19, 2020 | |||
Stock repurchase program, number of remaining shares purchased | 717,597 | 3,233,352 | |||
Stock repurchase program, total cost | $ 8,300,000 | ||||
Stock repurchase program, average price per share | $ 11.62 | ||||
Stock repurchase program, remaining authorized, amount | $ 0 | ||||
Common Stock [Member] | Maximum [Member] | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Stock repurchase program, authorized amount to repurchase issued and outstanding common stock | $ 50,000,000 |
Stock Compensation - Additional
Stock Compensation - Additional Information (Detail) - USD ($) | Jan. 25, 2017 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, options, grants in period | 0 | |||
Income tax benefit realized | $ 1,800,000 | $ 1,800,000 | $ 1,700,000 | |
Total intrinsic value of stock options exercised | 569,000,000 | |||
Selling, General and Administrative Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 7,800,000 | 7,200,000 | 6,300,000 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | 0 | |||
Total intrinsic value of stock options exercised | 600,000 | $ 500,000 | $ 26,800,000 | |
Restricted Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock granted | 0 | |||
Unrecognized compensation expense | $ 3,500,000 | |||
Weighted average period expense expected to be recognized | 2 years 9 months 18 days | |||
Granted | $ 8.64 | |||
Performance Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 4,200,000 | |||
Weighted average period expense expected to be recognized | 2 years 4 months 24 days | |||
Weighted average grant date fair value of granted | $ 9.04 | $ 26.18 | ||
Stock options vested, fair value | $ 5,900,000 | $ 3,500,000 | $ 400,000 | |
Granted | $ 10.81 | |||
Performance Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock granted | 0 | |||
Unrecognized compensation expense | $ 1,700,000 | |||
Weighted average period expense expected to be recognized | 2 years 3 months 18 days | |||
Weighted average grant date fair value of granted | $ 5.23 | |||
Stock options vested, fair value | $ 700,000 | $ 600,000 | ||
Granted | $ 22.70 | |||
The 2016 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, capital shares reserved for future issuance | 8,000,000 | |||
Common stock, remaining shares available for issuance | 6,759,653 | |||
The 2016 Plan [Member] | Performance Stock Units [Member] | Maximum [Member] | Restricted Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
The 2016 Plan [Member] | Performance Stock Units [Member] | Minimum [Member] | Restricted Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
The 2016 Plan [Member] | Performance Stock Units [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
The 2016 Plan [Member] | Performance Stock Units [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
The 2010 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, remaining shares available for issuance | 1,109,686 | |||
Share-based compensation arrangement by share-based payment award, options, grants in period | 0 | |||
The 2010 Plan [Member] | Stock Options [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, contractual term | 10 years |
Stock Compensation - Summary of
Stock Compensation - Summary of Nonvested Restricted Stock Units Outstanding (Detail) | 12 Months Ended |
Oct. 31, 2020$ / sharesshares | |
Restricted Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | shares | 1,103,568 |
Forfeited | shares | (420,651) |
Nonvested, end of year | shares | 682,917 |
Granted | $ / shares | $ 8.64 |
Forfeited | $ / shares | 11.68 |
Nonvested, end of year | $ / shares | $ 6.76 |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested, beginning of year | shares | 1,394,205 |
Granted | shares | 307,127 |
Vested | shares | (472,848) |
Forfeited | shares | (308,223) |
Nonvested, end of year | shares | 920,261 |
Nonvested, beginning of year | $ / shares | $ 11.94 |
Granted | $ / shares | 10.81 |
Vested | $ / shares | 12.43 |
Forfeited | $ / shares | 11.91 |
Nonvested, end of year | $ / shares | $ 11.42 |
Stock Compensation - Summary _2
Stock Compensation - Summary of Nonvested Performance Stock Units (Detail) - Performance Stock Units [Member] | 12 Months Ended |
Oct. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested, beginning of year | shares | 48,734 |
Granted | shares | 507,003 |
Vested | shares | (24,367) |
Forfeited | shares | (80,000) |
Nonvested, end of year | shares | 451,370 |
Nonvested, beginning of year | $ / shares | $ 27.36 |
Granted | $ / shares | 5.23 |
Vested | $ / shares | 27.36 |
Forfeited | $ / shares | 6.74 |
Nonvested, end of year | $ / shares | $ 6.16 |
Stock Compensation - Summary _3
Stock Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Number of Options, Outstanding | 647,800 | |
Number of Options, Granted | 0 | |
Number of Options, Exercised | (130,000) | |
Number of Options, Forfeited | (10,000) | |
Number of Options, Expired | (223,000) | |
Number of Options, Outstanding | 284,800 | 647,800 |
Number of Options, Exercisable | 284,800 | |
Weighted-Average Exercise Price, Outstanding | $ 7.64 | |
Weighted-Average Exercise Price, Granted | 0 | |
Weighted-Average Exercise Price, Exercised | 7.90 | |
Weighted-Average Exercise Price, Forfeited | 8.11 | |
Weighted-Average Exercise Price, Expired | 7.32 | |
Weighted-Average Exercise Price, Outstanding | 7.77 | $ 7.64 |
Weighted-Average Exercise Price, Exercisable | $ 7.77 | |
Weighted-Average Remaining Contractual Term, Outstanding (in years) | 5 years | 5 years 10 months 24 days |
Weighted-Average Remaining Contractual Term, Exercised (in years) | 5 years 1 month 6 days | |
Weighted-Average Remaining Contractual Term, Exercisable (in years) | 5 years | |
Aggregate Intrinsic Value of Options, Outstanding | $ 3,113 | |
Aggregate Intrinsic Value of Options, Exercised | 569 | |
Aggregate Intrinsic Value of Options, Forfeited | 7 | |
Aggregate Intrinsic Value of Options, Expired | 161 | |
Aggregate Intrinsic Value of Options, Outstanding | 79 | $ 3,113 |
Aggregate Intrinsic Value of Options, Exercisable | $ 79 |
Income Taxes - Income Before (B
Income Taxes - Income Before (Benefit) Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (45.6) | $ (16.5) | $ 5.2 |
Foreign | (0.5) | (0.1) | (3) |
(Losses) income before (benefit) provision for income taxes | $ (46.1) | $ (16.6) | $ 2.2 |
Income Taxes - (Benefit) Provis
Income Taxes - (Benefit) Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Current: | |||
Federal | $ 10.4 | $ 0.4 | $ (6.8) |
State | 1.8 | 1.1 | 0.1 |
Total Current | 12.2 | 1.5 | (6.7) |
Deferred: | |||
Federal | (24) | (4) | (6.4) |
State | (3.8) | (1) | 0.9 |
Foreign | 1.4 | ||
Total Deferred | (27.8) | (5) | (4.1) |
(Benefit) provision for income taxes | $ (15.6) | $ (3.5) | $ (10.8) |
Income Taxes - Income Tax (Bene
Income Taxes - Income Tax (Benefit)/Expense at Federal Statutory Rate (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | |||
Income tax (benefit) provision at federal statutory rate | $ (9.7) | $ (3.5) | $ 0.5 |
Taxes on foreign income which differ from the U.S. statutory rate | (0.3) | ||
State (benefit) expense | (2.3) | (0.2) | 0.5 |
CARES Act impact | (3.5) | ||
Manufacturing and research incentives | (0.9) | (0.6) | (2.7) |
Nondeductible items | 0.8 | 0.2 | 0.7 |
Uncertain tax positions | 0.4 | (0.1) | (0.4) |
Valuation allowance | 0.2 | 2.2 | |
Remeasurement of deferred taxes - U.S. Tax Reform | (11.3) | ||
Bargain purchase gain | (2.2) | ||
Stock-based compensation | 1.4 | 0.8 | |
Other items | 0.2 | (0.1) | |
(Benefit) provision for income taxes | $ (15.6) | $ (3.5) | $ (10.8) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Oct. 31, 2020 | Oct. 31, 2018 | Oct. 31, 2019 |
Operating Loss Carryforwards [Line Items] | ||||
Corporate tax rate | 35.00% | 21.00% | ||
Tax reform act, benefit related to remeasurement of net deferred tax liabilities | $ 11.3 | |||
Net operating loss carryforwards | 3.5 | |||
Estimate income tax effects due to CARES Act | $ 3.5 | |||
Unrecognized tax benefits that would affect the annual effective rate if recognized | 3.1 | $ 2.2 | $ 2.6 | |
Domestic Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 3.2 | |||
Net operating loss carryforwards, expiration year | 2029 | |||
State and Local Jurisdiction [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 21.6 | |||
Net operating loss carryforwards, expiration year | 2027 | |||
Tax and other credit carryforwards | $ 2.3 | |||
Tax and other credit carryforwards | 2023 | |||
State and Local Jurisdiction [Member] | CANADA | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 0.6 | |||
State and Local Jurisdiction [Member] | BRAZIL | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 3.7 |
Income Taxes - Temporary Differ
Income Taxes - Temporary Differences and Carryforwards (Detail) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Deferred tax assets: | ||
Product warranty | $ 6.4 | $ 5.8 |
Inventory | 6.5 | 5 |
Deferred employee benefits | 5 | 4.3 |
Net operating loss and credit carryforwards | 4.9 | 13.3 |
Other reserves and allowances | 5.9 | 3.2 |
Gross deferred tax assets | 28.7 | 31.6 |
Less: valuation allowance | (1.7) | (2.1) |
Deferred tax assets | 27 | 29.5 |
Deferred tax liabilities: | ||
Intangible assets | (24.5) | (26.5) |
Property, plant and equipment | (4.6) | (16.3) |
Other | (0.8) | (2) |
Deferred tax liabilities | (29.9) | (44.8) |
Net deferred tax liability | $ (2.9) | $ (15.3) |
Income Taxes - Net deferred tax
Income Taxes - Net deferred tax assets/ (liabilities) (Detail) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Noncurrent deferred tax asset | $ 0.1 | |
Noncurrent deferred tax liability | $ (2.9) | (15.4) |
Net deferred tax liability | $ (2.9) | $ (15.3) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 2.4 | $ 2.1 | $ 2.6 |
Additions (reductions) for tax positions in prior year | 0.2 | 0.3 | 0.3 |
Additions for tax positions in current year | 0.1 | 0.1 | 0.3 |
Cash settlements with taxing authorities | (0.2) | ||
Statute of limitations | (0.1) | (0.9) | |
Balance at end of year | $ 2.7 | $ 2.4 | $ 2.1 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Contingent Liabilities (Detail) - USD ($) $ in Millions | Oct. 31, 2020 | Oct. 31, 2019 |
Commitments And Contingencies Disclosure [Abstract] | ||
Performance, bid and specialty bonds | $ 328.6 | $ 229.9 |
Open standby letters of credit | 11 | 14.3 |
Total | $ 339.6 | $ 244.2 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Loss Contingencies [Line Items] | ||
Contingent liability under purchase agreements for future chassis inventory purchases | $ 40,400,000 | $ 48,600,000 |
Repurchase agreement | 2 years | |
Represents the gross value of all vehicles under repurchase agreements | $ 191,500,000 | 212,500,000 |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Estimated loss exposure under contract | $ 21,100,000 | $ 25,500,000 |
Earnings Per Common Share - Rec
Earnings Per Common Share - Reconciliation of Basic Weighted-Average Common Shares Outstanding to Diluted Weighted-Average Shares Outstanding (Detail) - shares | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Basic weighted-average common shares outstanding | 63,044,872 | 62,789,165 | 63,966,977 |
Dilutive stock options | 0 | 0 | 1,242,644 |
Dilutive restricted stock units | 0 | 0 | 548 |
Dilutive restricted stock awards | 0 | 0 | 0 |
Dilutive performance stock units | 0 | 0 | 0 |
Diluted weighted-average common shares | 63,044,872 | 62,789,165 | 65,210,169 |
Earnings Per Common Share - Exc
Earnings Per Common Share - Exclusions from Calculation of Weighted-Average Shares Outstanding Assuming Dilution Due to Anti-Dilutive Effect of Common Stock Equivalents (Detail) - shares | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive common stock equivalents | 2,339,348 | 2,790,230 | 762,953 |
Stock Options [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive common stock equivalents | 284,800 | 988,551 | 97,085 |
Restricted Stock Units [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive common stock equivalents | 920,261 | 0 | 0 |
Restricted Stock Awards [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive common stock equivalents | 682,917 | 1,783,271 | 574,359 |
Performance Stock Units [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive common stock equivalents | 451,370 | 18,408 | 91,509 |
Business Segment Information -
Business Segment Information - Additional Information (Detail) | 12 Months Ended |
Oct. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Business Segment Information _2
Business Segment Information - Schedule of Selected Financial Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Net Sales | $ 2,277.6 | $ 2,403.7 | $ 2,381.3 |
Depreciation and amortization | 40.2 | 45.7 | 46 |
Capital expenditures | 13.5 | 20.8 | 40.6 |
Total assets | 1,312.3 | 1,347.1 | 1,408.1 |
Fire & Emergency [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 1,132 | 967.9 | 956.6 |
Commercial [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 484.8 | 720 | 638.5 |
Recreation [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 657.8 | 716.3 | 811.9 |
Corporate And Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | (25.7) | ||
Depreciation and amortization | 7.3 | ||
Capital expenditures | 18.8 | ||
Total assets | 119.3 | ||
Adjusted EBITDA | (45.3) | (43.9) | (36.5) |
Operating Segment [Member] | Fire & Emergency [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 1,132 | 967.9 | 956.6 |
Depreciation and amortization | 13.5 | 14.1 | 15.3 |
Capital expenditures | 7.1 | 8.6 | 7.9 |
Total assets | 731.3 | 617.2 | 612.4 |
Adjusted EBITDA | 39.9 | 43.2 | 86 |
Operating Segment [Member] | Commercial [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 484.8 | 720 | 638.5 |
Depreciation and amortization | 5.7 | 8.7 | 10 |
Capital expenditures | 2.7 | 3.7 | 4.2 |
Total assets | 207.1 | 317.7 | 293.2 |
Adjusted EBITDA | 34.5 | 56 | 38.1 |
Operating Segment [Member] | Recreation [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 657.8 | 716.3 | 811.9 |
Depreciation and amortization | 13.7 | 15.6 | 13.4 |
Capital expenditures | 2 | 2.7 | 9.7 |
Total assets | 305.4 | 316.4 | 383.2 |
Adjusted EBITDA | 38.4 | 46.8 | $ 60.4 |
Corporate, Other and Elims [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 3 | (0.5) | |
Depreciation and amortization | 7.3 | 7.3 | |
Capital expenditures | 1.7 | 5.8 | |
Total assets | 68.5 | 95.8 | |
Adjusted EBITDA | $ (45.3) | $ (43.9) |
Business Segment Information _3
Business Segment Information - Net Sales by Geographic Region Based on Product Shipment Destination (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 2,277.6 | $ 2,403.7 | $ 2,381.3 |
Corporate, Other and Elims [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3 | (0.5) | |
U.S. and Canada [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,224.7 | 2,328.4 | 2,352.5 |
U.S. and Canada [Member] | Corporate, Other and Elims [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3 | (0.5) | |
Europe/Africa [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1.6 | 3.9 | 3.4 |
Rest of World [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 51.3 | 71.4 | 25.4 |
Fire & Emergency [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,132 | 967.9 | 956.6 |
Fire & Emergency [Member] | U.S. and Canada [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,088.8 | 909 | 938.2 |
Fire & Emergency [Member] | Europe/Africa [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0.5 | 3.1 | 3.3 |
Fire & Emergency [Member] | Rest of World [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 42.7 | 55.8 | 15.1 |
Commercial [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 484.8 | 720 | 638.5 |
Commercial [Member] | U.S. and Canada [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 480.2 | 713.5 | 632.3 |
Commercial [Member] | Europe/Africa [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0.9 | 0.2 | |
Commercial [Member] | Rest of World [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3.7 | 6.3 | 6.2 |
Recreation [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 657.8 | 716.3 | 811.9 |
Recreation [Member] | U.S. and Canada [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 652.7 | 706.4 | 808.2 |
Recreation [Member] | Europe/Africa [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0.2 | 0.6 | |
Recreation [Member] | Rest of World [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 4.9 | $ 9.3 | 3.7 |
Corporate And Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | (25.7) | ||
Corporate And Other [Member] | U.S. and Canada [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | (26.2) | ||
Corporate And Other [Member] | Europe/Africa [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0.1 | ||
Corporate And Other [Member] | Rest of World [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 0.4 |
Business Segment Information _4
Business Segment Information - Reconciliation of Segment Adjusted EBITDA to Net (Loss) Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Interest expense, net | $ (25.7) | $ (32.5) | $ (25.6) |
Benefit for income taxes | 15.6 | 3.5 | 10.8 |
Restructuring costs | (9.9) | (5.7) | (7.2) |
Stock-based compensation expense | (7.8) | (7.2) | (6.3) |
Loss on sale of business | (11.1) | ||
Gain on acquisition of business | 8.6 | ||
Impairment charges | (12.1) | (8.9) | (35.6) |
Net (loss) income | (30.5) | (12.3) | 13 |
Corporate And Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | (45.3) | (43.9) | (36.5) |
Operating Segment [Member] | Fire & Emergency [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | 39.9 | 43.2 | 86 |
Operating Segment [Member] | Commercial [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | 34.5 | 56 | 38.1 |
Operating Segment [Member] | Recreation [Member] | |||
Segment Reporting Information [Line Items] | |||
Adjusted EBITDA | 38.4 | 46.8 | 60.4 |
Reconciling Items [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | (40.2) | (45.4) | (45.5) |
Interest expense, net | (25.7) | (32.4) | (25.3) |
Benefit for income taxes | 15.6 | 3.5 | 12.2 |
Transaction expenses | (3.3) | (1) | (2.8) |
Sponsor expense reimbursement | (0.5) | (1.4) | (0.9) |
Restructuring costs | (9.9) | (5.7) | (7) |
Restructuring related charges | (10.5) | ||
Stock-based compensation expense | (7.8) | (7.2) | (6.3) |
Legal matters | (1.8) | (7.7) | (5.5) |
Loss on sale of business | (11.1) | ||
Gain on acquisition of business | 8.6 | ||
Impairment charges | (12.1) | (8.9) | (35.6) |
Earnings (losses) attributable to assets held for sale | 0.8 | (4.7) | (9.9) |
Deferred purchase price payment | $ (0.1) | $ (3.5) | (6) |
First year public company costs | (1.5) | ||
Non-cash purchase accounting expense | $ (0.9) |