Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Oct. 31, 2023 | Dec. 13, 2023 | May 05, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Oct. 31, 2023 | ||
Current Fiscal Year End Date | --10-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-8649 | ||
Entity Registrant Name | THE TORO COMPANY | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 41-0580470 | ||
Entity Address, Address Line One | 8111 Lyndale Avenue South | ||
Entity Address, City or Town | Bloomington | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55420-1196 | ||
City Area Code | 952 | ||
Local Phone Number | 888-8801 | ||
Title of 12(b) Security | Common Stock, par value $1.00 per share | ||
Trading Symbol | TTC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 11 | ||
Entity Common Stock, Shares Outstanding | 103,874,211 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement for the 2024 Annual Meeting of Shareholders expected to be held March 19, 2024 are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0000737758 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Oct. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Minneapolis, MN |
Auditor Firm ID | 185 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 4,553.2 | $ 4,514.7 | $ 3,959.6 |
Cost of sales | 2,975.6 | 3,010.1 | 2,621.1 |
Gross profit | 1,577.6 | 1,504.6 | 1,338.5 |
Selling, general and administrative expense | 995.6 | 928.9 | 820.2 |
Non-cash impairment charges | 151.3 | 0 | 0 |
Operating earnings | 430.7 | 575.7 | 518.3 |
Interest expense | (58.7) | (35.7) | (28.7) |
Other income, net | 28.5 | 12.5 | 10.2 |
Earnings before income taxes | 400.5 | 552.5 | 499.8 |
Provision for income taxes | 70.8 | 109.2 | 89.9 |
Net earnings | $ 329.7 | $ 443.3 | $ 409.9 |
Basic net earnings per share of common stock (in dollars per share) | $ 3.16 | $ 4.23 | $ 3.82 |
Diluted net earnings per share of common stock (in dollars per share) | $ 3.13 | $ 4.20 | $ 3.78 |
Weighted-average number of shares of common stock outstanding – Basic (in shares) | 104.4 | 104.8 | 107.3 |
Weighted-average number of shares of common stock outstanding – Diluted (in shares) | 105.3 | 105.6 | 108.5 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 329.7 | $ 443.3 | $ 409.9 |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation adjustments | 9.6 | (31.8) | 5 |
Derivative instruments, net of tax of $(4.1), $7.2, and $0.7, respectively | (12.8) | 24.4 | 2.1 |
Pension benefits, net of tax of $(0.5), $0.2, and $0.0, respectively | (0.7) | 0.3 | 1.2 |
Other comprehensive (loss) income, net of tax | (3.9) | (7.1) | 8.3 |
Comprehensive income | $ 325.8 | $ 436.2 | $ 418.2 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Derivative instruments, tax | $ (4.1) | $ 7.2 | $ 0.7 |
Pension benefits, tax | $ (0.5) | $ 0.2 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 193.1 | $ 188.2 |
Receivables, net: | ||
Other | 23.5 | 25 |
Total receivables, net | 407.4 | 332.7 |
Inventories, net | 1,087.8 | 1,051.1 |
Prepaid expenses and other current assets | 110.5 | 103.4 |
Total current assets | 1,798.8 | 1,675.4 |
Property, plant and equipment, net | 641.7 | 571.7 |
Goodwill | 450.8 | 583.3 |
Other intangible assets, net | 540.1 | 585.8 |
Right-of-use assets | 125.3 | 76.1 |
Investment in finance affiliate | 50.6 | 39.3 |
Deferred income taxes | 14.2 | 5.3 |
Other assets | 22.8 | 19.1 |
Total assets | 3,644.3 | 3,556 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 430 | 578.7 |
Short-term lease liabilities | 19.5 | 15.7 |
Accrued liabilities: | ||
Warranty | 143.9 | 134.5 |
Advertising and sales promotions and incentives programs | 163 | 124 |
Compensation and benefit costs | 98.7 | 101.4 |
Insurance | 16.2 | 16.2 |
Interest | 11.6 | 11.4 |
Other | 65.7 | 81.7 |
Total accrued liabilities | 499.1 | 469.2 |
Total current liabilities | 948.6 | 1,063.6 |
Long-term debt | 1,031.5 | 990.8 |
Long-term lease liabilities | 112.1 | 63.6 |
Deferred income taxes | 0.4 | 44.3 |
Other long-term liabilities | 40.8 | 42 |
Stockholders' equity: | ||
Preferred stock, par value $1.00 per share, authorized 1,000,000 voting and 850,000 non-voting shares, none issued and outstanding | 0 | 0 |
Common stock, par value $1.00 per share, authorized 175,000,000 shares; issued and outstanding 103,843,485 shares as of October 31, 2023 and 103,969,805 shares as of October 31, 2022 | 103.8 | 104 |
Retained earnings | 1,444.1 | 1,280.8 |
Accumulated other comprehensive loss | (37) | (33.1) |
Total stockholders' equity | 1,510.9 | 1,351.7 |
Total liabilities and stockholders' equity | 3,644.3 | 3,556 |
Nonrelated Party | ||
Receivables, net: | ||
Receivables, net | 349.5 | 290 |
Related Party | ||
Receivables, net: | ||
Receivables, net | $ 34.4 | $ 17.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 175,000,000 | 175,000,000 |
Common stock, issued (in shares) | 103,843,485 | 103,969,805 |
Common stock, outstanding (in shares) | 103,843,485 | 103,969,805 |
Nonrelated Party | ||
Customers, allowance for doubtful accounts | $ 3 | $ 3.3 |
Voting Preferred Stock | ||
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Nonvoting Preferred Stock | ||
Preferred stock, authorized (in shares) | 850,000 | 850,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | ||
Cash flows from operating activities: | ||||
Net earnings | $ 329.7 | $ 443.3 | $ 409.9 | |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||
Non-cash income from finance affiliate | (19.2) | (8.8) | (5.7) | |
Distributions from (contributions to) finance affiliate, net | 7.9 | (9.9) | 4.8 | |
Depreciation of property, plant, and equipment | 83.5 | 74.9 | 75.5 | |
Amortization of other intangible assets | 35.7 | 33.9 | 23.8 | |
Stock-based compensation expense | 19.4 | 22.1 | 21.8 | |
Deferred income taxes | (47.9) | (12.3) | (22.9) | |
Non-cash impairment charges | 151.3 | 0 | 0 | |
Other | (0.2) | (0.1) | 0.5 | |
Changes in operating assets and liabilities, net of the effect of acquisitions: | ||||
Receivables, net | (71.6) | (19.3) | (52.3) | |
Inventories, net | (26.7) | (285.9) | (98.3) | |
Other assets | 17.8 | (30.2) | 3 | |
Accounts payable | (149.9) | 66.3 | 139.3 | |
Other liabilities | (23) | 23.2 | 56.1 | |
Net cash provided by operating activities | 306.8 | 297.2 | 555.5 | |
Cash flows from investing activities: | ||||
Purchases of property, plant and equipment | (149.5) | (143.5) | (104) | |
Proceeds from insurance claim | 7.1 | 0 | 0 | |
Business combinations, net of cash acquired | (21) | (402.4) | (24.9) | |
Asset acquisitions, net of cash acquired | 0 | (7.2) | (27.2) | |
Proceeds from asset disposals | 0.4 | 0.2 | 1 | |
Proceeds from sale of a business | 5.3 | 4.6 | 26.6 | |
Net cash used in investing activities | (157.7) | (548.3) | (128.5) | |
Cash flows from financing activities: | ||||
Net borrowings under the revolving credit facility | [1] | 40 | 0 | 0 |
Long-term debt borrowings | [1] | 0 | 300 | 270 |
Long-term debt repayments | [1] | 0 | 0 | (370) |
Proceeds from exercise of stock options | 19.7 | 10.3 | 13.1 | |
Payments of withholding taxes for stock awards | (3.8) | (2.4) | (2.1) | |
Purchases of TTC common stock | (60) | (140) | (302.3) | |
Dividends paid on TTC common stock | (141.9) | (125.7) | (112.4) | |
Other | (1.5) | 0 | 0 | |
Net cash (used in) provided by financing activities | (147.5) | 42.2 | (503.7) | |
Effect of exchange rates on cash and cash equivalents | 3.3 | (8.5) | 2.4 | |
Net increase (decrease) in cash and cash equivalents | 4.9 | (217.4) | (74.3) | |
Cash and cash equivalents as of the beginning of the fiscal period | 188.2 | 405.6 | 479.9 | |
Cash and cash equivalents as of the end of the fiscal period | 193.1 | 188.2 | 405.6 | |
Cash paid during the fiscal year for: | ||||
Interest | 61.1 | 30.5 | 31.6 | |
Income taxes | $ 165.2 | $ 120.5 | $ 101.8 | |
[1]Presentation of prior year revolving credit facility and long-term debt activity has been conformed to the current year presentation. There was no change to net cash (used in) provided by financing activities. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance as of the beginning of the fiscal period at Oct. 31, 2020 | $ 1,114.8 | $ 107.6 | $ 1,041.5 | $ (34.3) |
Increase (Decrease) in Stockholders' Equity | ||||
Cash dividends paid on common stock | (112.4) | (112.4) | ||
Issuance of shares of common stock under stock-based compensation plans, less contribution of shares of common stock to a deferred compensation trust | 13.1 | 0.6 | 12.5 | |
Stock-based compensation expense | 21.8 | 21.8 | ||
Purchase of shares of common stock | (304.4) | (3) | (301.4) | |
Other comprehensive income (loss) | 8.3 | 8.3 | ||
Net earnings | 409.9 | 409.9 | ||
Balance as if the end of the fiscal period at Oct. 31, 2021 | 1,151.1 | 105.2 | 1,071.9 | (26) |
Increase (Decrease) in Stockholders' Equity | ||||
Cash dividends paid on common stock | (125.7) | (125.7) | ||
Issuance of shares of common stock under stock-based compensation plans, less contribution of shares of common stock to a deferred compensation trust | 10.4 | 0.4 | 10 | |
Stock-based compensation expense | 22.1 | 22.1 | ||
Purchase of shares of common stock | (142.4) | (1.6) | (140.8) | |
Other comprehensive income (loss) | (7.1) | (7.1) | ||
Net earnings | 443.3 | 443.3 | ||
Balance as if the end of the fiscal period at Oct. 31, 2022 | 1,351.7 | 104 | 1,280.8 | (33.1) |
Increase (Decrease) in Stockholders' Equity | ||||
Cash dividends paid on common stock | (141.9) | (141.9) | ||
Issuance of shares of common stock under stock-based compensation plans, less contribution of shares of common stock to a deferred compensation trust | 19.7 | 0.4 | 19.3 | |
Stock-based compensation expense | 19.4 | 19.4 | ||
Purchase of shares of common stock | (63.8) | (0.6) | (63.2) | |
Other comprehensive income (loss) | (3.9) | (3.9) | ||
Net earnings | 329.7 | 329.7 | ||
Balance as if the end of the fiscal period at Oct. 31, 2023 | $ 1,510.9 | $ 103.8 | $ 1,444.1 | $ (37) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends paid on common stock (in dollars per share) | $ 1.36 | $ 1.20 | $ 1.05 |
Issuance of shares of common stock under stock-based compensation plans (in shares) | 499,145 | 349,219 | 610,788 |
Contribution of shares of common stock to a deferred compensation trust (in shares) | 14,270 | 33,162 | 22,700 |
Purchase of shares of common stock (in shares) | 611,195 | 1,551,986 | 3,010,424 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Related Data | 12 Months Ended |
Oct. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Related Data | 1 Summary of Significant Accounting Policies and Related Data The Toro Company is in the business of designing, manufacturing, marketing, and selling professional turf maintenance equipment and services; turf irrigation systems; landscaping equipment and lighting products; snow and ice management products; agricultural irrigation ("ag-irrigation") systems; rental, specialty, and underground construction equipment; and residential yard and snow thrower products. The company sells its products worldwide through a network of distributors, dealers, mass retailers, hardware retailers, equipment rental centers, and home centers, as well as online and direct to end-users. The company strives to provide innovative, well-built, and dependable products supported by an extensive service network. The following are the company's significant accounting policies in addition to those included in the other Notes to Consolidated Financial Statements included within this Part II, Item 8, "Financial Statements and Supplementary Data," of this Annual Report on Form 10-K. Basis of Presentation and Consolidation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted ("GAAP") in the United States ("U.S.") and include the accounts of the company and its wholly-owned subsidiaries. In the opinion of management, the Consolidated Financial Statements include all adjustments, consisting primarily of recurring accruals, considered necessary for the fair presentation of the company's consolidated financial position, results of operations, and cash flows for the periods presented. The company's businesses are organized, managed, and internally grouped into segments based on similarities in products and services. The company classifies its operations into two reportable business segments: Professional and Residential. The company's remaining activities are presented as "Other" due to their insignificance. For additional information regarding the company's reportable business segments refer to Note 3, Segment Data . The company uses the equity method to account for equity investments in unconsolidated entities over which it has the ability to exercise significant influence over operating and financial policies. The company's share of the net earnings or losses of these equity method investments are recorded within other income, net on the Consolidated Statements of Earnings. Equity investments in unconsolidated entities that the company does not control and for which it does not have the ability to exercise significant influence over operating and financial policies are recorded at cost, less impairment, as applicable, within the Consolidated Balance Sheets. All intercompany accounts and transactions have been eliminated from the Consolidated Financial Statements. Accounting Estimates In preparing the Consolidated Financial Statements in conformity with U.S. GAAP, management must make decisions that impact the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures, including disclosures of contingent assets and liabilities. Such decisions include the selection of the appropriate accounting principles to be applied and the assumptions on which to base accounting estimates. Estimates are used in determining, among other items, sales promotion and incentive accruals; incentive compensation accruals; income tax accruals; inventory valuation; warranty accruals; allowance for expected credit losses; pension accruals; self-insurance accruals; legal accruals; right-of-use assets and lease liabilities; useful lives for tangible and finite-lived intangible assets; future cash flows associated with impairment testing for goodwill, indefinite-lived intangible assets, and other long-lived assets; and valuations of the assets acquired and liabilities assumed in a business combination or asset acquisition, when applicable. These estimates and assumptions are based on management's best estimates and judgments at the time they are made and are generally derived from management's understanding and analysis of the relevant and current circumstances, historical experience, and actuarial and other independent external third-party specialist valuations, when applicable. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors that management believes to be reasonable under the circumstances, including the current economic environment and other relevant factors, as applicable. Management adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with certainty, actual amounts could differ significantly from those estimated at the time the Consolidated Financial Statements are prepared. Changes in those estimates will be reflected in the Consolidated Financial Statements in future periods. Business Combinations and Asset Acquisitions When applicable, the company accounts for the acquisition of a business in accordance with the accounting standards codification ("ASC") guidance for business combinations, whereby the total purchase consideration transferred is allocated to the assets acquired and liabilities assumed, including amounts attributable to non-controlling interests, when applicable, based on their respective estimated fair values as of the date of acquisition. Goodwill represents the excess of purchase consideration transferred over the estimated fair value of the identifiable net assets acquired in a business combination. Assigning estimated fair values to the net assets acquired requires the use of significant estimates, judgments, inputs, and assumptions regarding the fair value of the assets acquired and liabilities assumed. Estimated fair values of assets acquired and liabilities assumed are generally based on available historical information, independent valuations or appraisals, future expectations, and assumptions determined to be reasonable but are inherently uncertain with respect to future events, including economic conditions, competition, the useful life of the acquired assets, and other factors. The company may refine the estimated fair values of assets acquired and liabilities assumed, if necessary, over a period not to exceed one year from the date of acquisition by taking into consideration new information about facts and circumstances that existed as of the acquisition date that, if known at the date of acquisition, would have affected the estimated fair values ascribed to the assets acquired and liabilities assumed. The judgments made in determining the estimated fair value assigned to assets acquired and liabilities assumed, as well as the estimated useful life and depreciation or amortization method of each asset, can materially impact the net earnings of the periods subsequent to the acquisition through depreciation and amortization, and in certain instances through impairment charges, if the asset becomes impaired in the future. During the measurement period, any purchase price allocation changes that impact the carrying value of goodwill would also affect the amount of goodwill impairment taken, if applicable. If necessary, purchase price allocation revisions that occur outside of the measurement period are recorded within cost of sales or selling, general and administrative expense within the Consolidated Statements of Earnings depending on the nature of the adjustment. When an acquisition does not meet the definition of a business combination because either: (i) substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset, or group of similar identified assets, or (ii) the acquired entity does not have an input and a substantive process that together significantly contribute to the ability to create outputs, the company accounts for the acquisition as an asset acquisition. In an asset acquisition, goodwill is not recognized, but rather, any excess purchase consideration over the fair value of the net assets acquired is allocated on a relative fair value basis to the identifiable net assets as of the acquisition date and any direct acquisition-related transaction costs are capitalized as part of the purchase consideration. Refer to Note 2, Business Combinations and Asset Acquisitions , for additional information regarding the company's accounting for recent business combinations and asset acquisitions. Cash and Cash Equivalents The company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value. As of October 31, 2023 and 2022, cash and cash equivalents held by the company's foreign subsidiaries were $91.1 million and $93.4 million, respectively. Receivables, Net Receivables are recorded at original carrying amount less an estimated allowance for expected credit losses. The allowance for expected credit losses is based on the company's assessment of losses that will result from its customers inability or unwillingness to pay amounts owed to the company. The allowance for expected credit losses is estimated using a combination of factors, including the age of receivable balances and historical credit loss experience, supplemented by the company's knowledge of customer-specific information, current market conditions, and reasonable and supportable projections of future events and economic conditions, when applicable. Receivables are written-off against the allowance for expected credit losses when all collection efforts have been exhausted. The company's financial exposure related to the collection of accounts receivable is reduced due to its inventory financing arrangements, as further discussed in Note 11, Commitments and Contingencies . For receivables not serviced through inventory financing agreements, the company provides financing in the form of open account terms in the normal course of business and performs on-going credit evaluations of customers. Concentrations of Credit Risk Financial instruments, which potentially subject the company to concentrations of credit risk, consist principally of accounts receivable and derivative instruments. Accounts receivable balances are generally concentrated in the Professional and Residential business segments. The credit risk associated with these business segments is limited because of the large number of customers in the company's customer base and their geographic dispersion. The credit risk associated with the company's derivative instruments is limited as the company enters into derivative instruments with multiple counterparties that are highly rated financial institutions. Inventories, Net The company uses a combination of inventory valuation methods. Inventories are valued at the lower of cost or net realizable value, with cost determined by the first-in, first-out ("FIFO") and average cost methods for approximately 58.5 percent and 50.8 percent of total net inventories as of October 31, 2023 and 2022, respectively. Other inventories are valued at the lower of cost or market, with cost determined under the last-in, first-out ("LIFO") method. During fiscal 2023 and fiscal 2022, LIFO layers were not materially reduced. As needed, the company records an inventory valuation adjustment for excess, slow-moving, and obsolete inventory that is equal to the excess of the cost of the inventory over the estimated net realizable value or market value for the inventory depending on the inventory costing method. Such inventory valuation adjustment is based on a review and comparison of current inventory levels to planned production, as well as planned and historical sales of the inventory. The inventory valuation adjustment to net realizable value or market value establishes a new cost basis of the inventory that cannot be subsequently reversed. Such inventory valuation adjustments for excess, obsolete, and slow moving inventory are not reduced or removed until the product is sold or disposed of. As of October 31, 2023 and 2022, the company's inventory valuation adjustment for excess, slow-moving, and obsolete inventory was $43.9 million and $38.7 million, respectively. Inventories, net were as follows (dollars in millions): October 31 2023 2022 Raw materials and work in process $ 400.3 $ 482.9 Finished goods and service parts 844.2 738.1 Total FIFO value 1,244.5 1,221.0 Less: adjustment to LIFO value 156.7 169.9 Total inventories, net $ 1,087.8 $ 1,051.1 Property, Plant and Equipment, Net Property, plant and equipment assets are carried at cost less accumulated depreciation. The company generally accounts for depreciation of property, plant and equipment utilizing the straight-line method over the estimated useful lives of the assets. Buildings and leasehold improvements are generally depreciated over 10 to 40 years, machinery and equipment are generally depreciated over three three two Property, plant and equipment, net was as follows (dollars in millions): October 31 2023 2022 Land and land improvements $ 69.0 $ 59.6 Buildings and leasehold improvements 355.8 324.3 Machinery and equipment 624.6 557.6 Tooling 260.4 225.9 Computer hardware and software 98.0 104.7 Construction in process 133.2 144.4 Property, plant and equipment, gross 1,541.0 1,416.5 Less: accumulated depreciation 899.3 844.8 Property, plant and equipment, net $ 641.7 $ 571.7 During fiscal 2023, 2022, and 2021, the company recorded depreciation expense of $83.5 million, $74.9 million, and $75.5 million, respectively. Goodwill and Indefinite-Lived Intangible Assets Goodwill is initially recognized as a result of the excess of purchase consideration transferred over the estimated fair value of the net assets acquired in a business combination and indefinite-lived intangible assets are initially recognized at their estimated fair values as a result of a business combination or asset acquisition. Goodwill is assigned to a reporting unit based upon the expected benefit of the synergies of the acquisition. Goodwill and certain trade names, which are considered to have indefinite lives, are not amortized; however, the company reviews them for impairment annually during the fourth quarter of each fiscal year or more frequently if changes in circumstances or the occurrence of events indicate that impairment may have occurred prior to the annual assessment. The company tests goodwill for impairment at the reporting unit level and tests indefinite-lived intangible assets for impairment at the individual indefinite-lived intangible asset or asset group level, as appropriate. At the end of the third quarter of fiscal 2023, the company recorded an impairment charge of $18.0 million related to the indefinite-lived Spartan trade name intangible asset reported under the Professional segment. Further, during the same period, the company recorded an impairment charge of $133.3 million related to goodwill of the Intimidator reporting unit also reported under the Professional segment, Refer to Note 5, Goodwill and Other Intangible Assets for further information. During the fourth quarter of fiscal 2023, the company performed its annual goodwill impairment test. In performing the annual goodwill impairment test, the company first reviewed its reporting units and determined that it has twelve reporting units, which are the same as its twelve operating segments as defined in Note 3, Segment Data . Nine reporting units contained goodwill on their respective balance sheets as of October 31, 2023. Next, the company elected to bypass the qualitative assessment and move directly to the quantitative goodwill impairment analysis. In performing the quantitative goodwill impairment analysis, the company compared the carrying value of each reporting unit, including goodwill, to its respective fair value. The carrying value of each reporting unit was determined based on the amount of equity required for the reporting unit's activities, considering the specific assets and liabilities of the reporting unit. The company did not assign corporate assets and liabilities that do not relate to the operations of the reporting unit, or are not considered in determining the fair value of the reporting unit, to the reporting units. The company's estimate of the respective fair values of its reporting units was determined based on a discounted cash flow model under the income approach, which utilized various inputs and assumptions, including projected operating results and growth rates from the company's projection process, applicable tax rates, estimated capital expenditures and depreciation, estimated changes in working capital, terminal growth rates applied to projected operating results in the terminal period, and a weighted-average cost of capital rate. Where available, and as appropriate, comparable market multiples and the company's market capitalization were also utilized to corroborate the results of the discounted cash flow models under the income approach. If the fair value of the reporting unit exceeds its carrying value, goodwill of the reporting unit is not impaired. If the carrying value of a reporting unit exceeds its fair value, an impairment charge would be recognized for the amount by which the carrying value of the reporting unit exceeds the its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Based on the quantitative annual goodwill impairment analysis performed in the fourth quarter of fiscal 2023, the company determined there was no impairment of goodwill for any of its reporting units. Further, no impairment of goodwill was recorded during fiscal 2022 and 2021. During the fourth quarter of fiscal 2023, the company also performed a quantitative impairment analysis for its indefinite-lived intangible assets, which consist of certain trade names. The company's estimate of the fair values of its trade names are based on the relief from royalty method under the income approach and utilizes various inputs and assumptions, including projected revenues from the company's projection process, assumed royalty rates that could be payable if the company did not own the intangible asset, terminal growth rates applied to projected revenues, applicable tax rates, and a discount rate. If the fair value of the indefinite-lived intangible asset, or asset group, is less than its carrying value, an impairment loss is recognized in an amount equal to the excess. Based on this quantitative impairment analysis performed in the fourth quarter of fiscal 2023, the company concluded its indefinite-lived intangible assets were not impaired. Further, the company concluded its indefinite-lived intangible assets were not impaired during fiscal 2022 and 2021 based on the same quantitative impairment analysis performed in each respective prior fiscal year. Other Long-Lived Assets Other long-lived assets primarily consist of property, plant and equipment; right-of-use assets associated with operating lease agreements; capitalized implementation costs for hosted cloud-computing arrangements; finite-lived intangible assets; and other assets, as applicable. The company's finite-lived intangible assets are identifiable assets that were acquired as a result of business combinations or asset acquisitions and primarily consist of customer relationships and lists, developed technology, patents, trade names, non-compete agreements, and order backlog and are generally amortized on a straight-line basis over their expected useful lives, which typically range from several months to 20 years depending on the nature of the finite-lived intangible asset. The company reviews other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset, or asset group, may not be recoverable. Asset groups have identifiable cash flows and are largely independent of other asset groups. An impairment loss is recognized when estimated undiscounted future cash flows from the operation or disposition of the asset group are less than the carrying amount of the asset group. Measurement of an impairment loss is based on the excess of the carrying amount of the asset group over its fair value. Fair value is generally measured using a discounted cash flow model or independent appraisals, as appropriate. The company did not record an impairment loss for fiscal 2023, 2022, and 2021 as the company's long-lived assets were determined to not be at risk for impairment as no events or changes in circumstances were identified that would indicate that the carrying amount of an asset, or asset group, may not be recoverable. For other long-lived assets to be abandoned, the company tests for potential impairment. If the company commits to a plan to abandon or dispose of an other long-lived asset, or asset group, before the end of its previously estimated useful life, depreciation or amortization expense is recognized over the revised estimated useful life. Leases The company enters into contracts that are, or contain, operating lease agreements that convey the company's right to direct the use of, and obtain substantially all of the economic benefits from, an identified asset for a defined period of time in exchange for consideration. The lease term begins and is determined upon lease commencement, which is the point in time when the company takes possession of the identified asset, and includes all non-cancelable periods. Lease liabilities represent the company's obligation to make lease payments arising from the lease agreement. The company accounts for operating lease liabilities at lease commencement and on an ongoing basis as the present value of the minimum remaining lease payments under the respective lease term. Lease payments are determined at lease commencement and represent fixed lease payments as defined within the respective lease agreement or, in the case of certain lease agreements, variable lease payments that are measured as of the lease commencement date based on the prevailing index or market rate. Future adjustments to variable lease payments are defined and scheduled within the respective lease agreement and are determined based upon the prevailing market or index rate at the time of the adjustment relative to the market or index rate determined at lease commencement. Certain other lease agreements contain variable lease payments that are determined based upon actual utilization of the identified asset. Such future adjustments to variable lease payments and variable lease payments based upon actual utilization of the identified asset are not included within the determination of lease payments at commencement but rather, are recorded as variable lease expense in the period in which the variable lease cost is incurred. The company has operating leases with both lease components and non-lease components. For purposes of determining lease payments, the company accounts for lease components separately from non-lease components based on the relative market value of each component. Non-lease components typically consist of common area maintenance, utilities, and/or other repairs and maintenance services. The costs related to non-lease components are not included within the determination of lease payments at commencement. Minimum remaining lease payments are discounted to present value based on the rate implicit in the operating lease agreement or the estimated incremental borrowing rate at lease commencement if the rate implicit in the lease is not readily determinable. Minimum remaining lease payments are generally discounted to present value based the estimated incremental borrowing rate at lease commencement as the rate implicit in the lease is generally not readily determinable. Right-of-use assets represent the company's right to use an underlying asset throughout the lease term and are measured as the amount of the corresponding operating lease liability for the respective operating lease agreement, adjusted for prepaid or accrued lease payments, the remaining balance of any lease incentives received, unamortized initial direct costs, and impairment of the operating lease right-of-use asset, as applicable. Lease expense for the company's operating leases is recognized on a straight-line basis over the lease term and is recorded within either cost of sales or selling, general and administrative expense in the Consolidated Statements of Earnings depending on the nature and use of the identified asset underlying the respective operating lease arrangement. The company does not recognize right-of-use assets and lease liabilities, but does recognize lease expense on a straight-line basis, for short-term operating leases which have a lease term of 12 months or less and do not include an option to purchase the underlying asset. Accounts Payable The company has a supply chain finance service agreement with a third-party financial institution to provide a web-based platform that facilitates the ability of participating suppliers to finance payment obligations from the company with the third-party financial institution. Participating suppliers may, at their sole discretion, make offers to finance one or more payment obligations of the company prior to their scheduled due dates at a discounted price to the third-party financial institution. The company's obligations to its suppliers, including amounts due and scheduled payment dates, are not affected by suppliers' decisions to finance amounts under this supply chain finance arrangement. As of October 31, 2023 and 2022, $99.6 million and $133.7 million, respectively, of the company's outstanding payment obligations were financed by participating suppliers through the third-party financial institution's supply chain finance web-based platform. Insurance The company is self-insured for certain losses relating to employee medical, dental, workers' compensation, and certain product liability claims. Specific stop loss coverages are provided for catastrophic claims in order to limit exposure to significant claims. Losses and claims are charged to net earnings when it is probable a loss has been incurred and the amount can be reasonably estimated. Self-insured liabilities are based on a number of factors, including historical claims experience, an estimate of claims incurred but not reported, demographic and severity factors, and utilizing valuations provided by independent third-party actuaries, as applicable. Product Warranty Guarantees The company’s products are warranted to provide assurance that the product will function as expected and to ensure customer confidence in design, workmanship, and overall quality. Standard warranty coverage is generally provided for specified periods of time and on select products’ hours of usage, and generally covers parts, labor, and other expenses for non-maintenance repairs. The company also sells separately priced extended warranty coverage on select products for a prescribed period after the original warranty period expires. For additional information on the contract liabilities associated with the company's separately priced extended warranties, refer to Note 4, Revenue . At the time of sale, the company recognizes expense and records an accrual by product line for estimated costs in connection with projected future warranty claims. The company's estimate of the cost of future warranty claims is based primarily on the estimated number of products under warranty, historical average costs incurred to service warranty claims, the trend in the historical ratio of claims to sales, and the historical length of time between the sale and resulting warranty claim. The company periodically assesses the adequacy of its warranty accruals based on changes in these factors and records any necessary adjustments if the cost of actual claims experience indicates that adjustments to the company's warranty accrual are necessary. Additionally, from time to time, the company may also establish warranty accruals for its estimate of the costs necessary to settle major rework campaigns on a product-specific basis during the period in which the circumstances giving rise to the major rework campaign become known and when the costs to satisfactorily address the situation are both probable and estimable. The warranty accrual for the cost of a major rework campaign is primarily based on an estimate of the cost to repair each affected unit and the number of affected units expected to be repaired. The changes in accrued warranties were as follows (dollars in millions): Fiscal Years Ended October 31 2023 2022 2021 Beginning balance $ 134.5 $ 116.8 $ 107.1 Changes in accrual related to warranties issued during the period 1 90.1 81.5 73.5 Acquisitions — 5.7 — Payments made during the period 1 (84.5) (74.6) (71.3) Changes in accrual related to pre-existing warranties 1 3.8 5.1 7.5 Ending balance $ 143.9 $ 134.5 $ 116.8 1 Presentation of prior period changes in accrued warranties has been conformed to the current year presentation. There was no impact to the balance of accrued warranties in any period. Derivative Instruments and Hedging Activities Derivative instruments, consisting primarily of forward currency contracts, are used to hedge most foreign currency transactions, including projected sales and purchases denominated in foreign currencies. All derivative instruments are recognized on the Consolidated Balance Sheets at fair value as either assets or liabilities. If the derivative instrument is designated as a cash flow hedging instrument, changes in the fair values of the spot rate component of outstanding, highly effective cash flow hedging instruments included in the assessment of hedge effectiveness are recorded in other comprehensive income within accumulated other comprehensive loss (“AOCL”) on the Consolidated Balance Sheets and are subsequently reclassified to net earnings within the Consolidated Statements of Earnings during the same period in which the cash flows of the underlying hedged transaction affect net earnings. Changes in the fair values of hedge components excluded from the assessment of effectiveness are recognized immediately in net earnings under the mark-to-market approach. Derivatives that are not designated as cash flow hedging instruments are adjusted to fair value through other income, net, on the Consolidated Statements of Earnings. Foreign Currency Translation and Transactions The functional currency of the company's foreign operations is generally the applicable local currency. The functional currency is translated into U.S. dollars using the respective current exchange rate in effect as of the balance sheet date for balance sheet accounts and the respective weighted-average exchange rate during the fiscal year for revenue and expense accounts. The resulting translation adjustments are deferred as a component of other comprehensive income within the Consolidated Statements of Comprehensive Income and the Consolidated Statements of Stockholders' Equity. Gains or losses resulting from transactions denominated in foreign currencies are included in other income, net in the Consolidated Statements of Earnings. Debt Issuance Costs Debt issuance costs incurred in connection with securing the company’s financing arrangements are capitalized and amortized over the term of the respective financing arrangement under the straight-line method as the results obtained are not materially different from those that would result from the use of the effective interest method. Debt issuance costs are generally presented in the Consolidated Balance Sheets as a direct deduction from the carrying amount of the outstanding borrowings, consistent with debt discounts. However, the company classifies the debt issuance costs related to its $600.0 million five-year senior unsecured revolving credit facility ("revolving credit facility") within other assets on the Consolidated Balance Sheets, regardless of whether the company has any outstanding borrowings on the revolving credit facility. Debt issuance costs related to borrowings that are fully extinguished in advance of the maturity date are charged to expense at the time of retirement of the borrowings. Debt issuance costs, net of accumulated amortization, were $3.8 million and $4.8 million as of October 31, 2023 and 2022, respectively. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existi |
Business Combinations and Asset
Business Combinations and Asset Acquisitions | 12 Months Ended |
Oct. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations and Asset Acquisitions | 2 Business Combinations and Asset Acquisitions Business Combinations Dealer Acquisition On May 9, 2023, during the third quarter of fiscal 2023, the company completed the acquisition of substantially all of the assets of, and assumed certain liabilities for, a U.S. based dealer of underground construction equipment. The purchase price of this acquisition was allocated to the identifiable assets acquired and liabilities assumed based on estimates of their fair value and no goodwill or indefinite-lived intangible assets were recorded. The company finalized the purchase accounting for this acquisition during the third quarter of fiscal 2023. Additional purchase accounting disclosures have been omitted due to immateriality of this acquisition in relation to the company's consolidated financial condition and results of operations. Intimidator On January 13, 2022 ("Intimidator closing date"), during the first quarter of fiscal 2022, the company acquired the privately-held Intimidator for net aggregate purchase consideration of $399.8 million ("the purchase price"). Intimidator primarily designs, manufactures, markets, and sells a commercial-grade line of zero-turn mowers under the Spartan brand, which are intended to provide innovative turf management solutions to landscape contractors and other customers including homeowners who prefer professional solutions. The acquisition of Intimidator broadened the company's Professional segment and expanded its manufacturing footprint and dealer network. Intimidator Purchase Price Allocation The company accounted for the Intimidator acquisition in accordance with the accounting standards codification guidance for business combinations, whereby the purchase price was allocated to the acquired net tangible and intangible assets of Intimidator based on their fair values as of the closing date. During the first quarter of fiscal 2023, the company completed its valuation of income taxes to finalize the purchase price allocation. The following table summarizes the allocation of the Intimidator purchase price to the fair values assigned to the Intimidator assets acquired and liabilities assumed (dollars in millions): January 13, 2022 Cash and cash equivalents $ 1.0 Receivables 7.0 Inventories 34.6 Prepaid expenses and other current assets 0.5 Property, plant and equipment 27.4 Right-of-use assets 0.3 Goodwill 163.7 Indefinite-lived other intangible assets: Trade names 99.1 Finite-lived other intangible assets: Customer-related 80.5 Trade names 3.3 Backlog 1.3 Accounts payable (8.5) Accrued liabilities (9.1) Short-term lease liabilities (0.1) Long-term liabilities (0.2) Total fair value of net assets acquired 400.8 Less: cash and cash equivalents acquired (1.0) Total purchase price $ 399.8 The goodwill recognized is primarily attributable to the expected future cash flows, the value of the workforce, and expected synergies, including customer and dealer growth opportunities, expanding existing product lines, and cost reduction initiatives. Key areas of expected cost synergies include increased purchasing power for commodities, components, parts, and accessories and supply chain consolidation. The goodwill resulting from the acquisition of Intimidator was recognized within the company's Professional segment. The acquisition was considered an asset purchase for income tax purposes and as a result, the goodwill arising from the transaction is deductible. Other Intimidator Intangible Assets Acquired The allocation of the Intimidator purchase price to the net assets acquired resulted in the recognition of $184.2 million of value for other intangible assets as of the Intimidator closing date. The fair values of the acquired trade names and customer-related and backlog intangible assets were determined using the income approach whereby an intangible asset's fair value is equal to the present value of future economic benefits to be derived from ownership of the asset. The useful lives of the other intangible assets were determined based on the period of expected cash flows used to measure the fair value of the intangible assets adjusted as appropriate for entity-specific factors including legal, regulatory, contractual, competitive, economic, and/or other factors that may limit the useful life of the respective intangible asset. As of the Intimidator closing date, the acquired finite-lived intangible assets had a weighted average useful life of 9.5 years. The fair values of the trade names were determined using the relief from royalty method, which is based on the hypothetical royalty stream that would be received if the company were to license the respective trade name and were based on expected future revenues from the respective trade name. The weighted-average useful life of the finite-lived trade name intangible assets was determined to be 9.8 years as of the Intimidator closing date. The fair values of the customer-related and backlog intangible assets were determined using the excess earnings method and were based on the expected operating cash flows attributable to the respective intangible asset, which were determined by deducting expected economic costs, including operating expenses and contributory asset charges, from the revenue expected to be generated from the respective intangible asset. As of the Intimidator closing date, the weighted-average useful lives of the customer-related and backlog intangible assets were determined to be 9.6 years and nine months, respectively. Impairment During the preparation of the financial statements for the third quarter of fiscal 2023, the company recorded an impairment charge of $18.0 million related to the indefinite-lived Spartan trade name intangible asset. Further, during the same period, the company recorded an impairment charge of $133.3 million related to goodwill of the Intimidator reporting unit. For additional information regarding these impairment charges, refer to refer to Note 5, Goodwill and Other Intangible Assets . Asset Acquisitions On June 10, 2022, during the third quarter of fiscal 2022, the company completed the acquisition of certain assets of Voigt Smith Innovation LLC, a manufacturer of liquid deicing equipment, brine makers and applicators, related smart-connected technologies, and hydroseeding products. On June 20, 2022, during the third quarter of fiscal 2022, the company completed the acquisition of certain assets of Tornado Global Hydrovacs Ltd. (“Tornado”), a designer and manufacturer of hydrovac trucks. On June 21, 2022, during the third quarter of fiscal 2022, the company completed the acquisition of certain assets of River City Manufacturing, Inc., a manufacturer of custom rock saws. These asset acquisitions pertain to the company's Professional segment. On November 4, 2020, during the first quarter of fiscal 2021, the company completed the acquisition of Turflynx, Lda, a developer of innovative autonomous solutions for turf management. On March 1, 2021, during the second quarter of fiscal 2021, the company completed the acquisition of Left Hand Robotics, Inc., a developer of innovative autonomous solutions for turf and snow management. These acquisitions complement and support the development of alternative power, smart-connected, and autonomous products within the company's Professional and Residential segments. None of these acquisitions met the definition of business combinations as substantially all of the fair value of the gross assets acquired in each acquisition was concentrated in the respective finite-lived developed technology intangible assets. As a result, the company accounted for each of these transactions as an asset acquisition. In an asset acquisition, goodwill is not recognized, but rather, any excess purchase consideration over the fair value of the net assets acquired is allocated on a relative fair value basis to the identifiable net assets as of the acquisition date and any direct acquisition-related transaction costs are capitalized as part of the purchase consideration. These asset acquisitions were immaterial in relation to the company's consolidated financial condition and results of operations and as a result, additional purchase accounting disclosures have been omitted. |
Segment Data
Segment Data | 12 Months Ended |
Oct. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Data | 3 Segment Data The company's businesses are organized, managed, and internally grouped into segments based on similarities in products and services. Segment selection is based on the manner in which the company's chief operating decision maker organizes segments for making operating and investment decisions and assessing performance. The company has identified twelve operating segments and has aggregated certain of those operating segments into two reportable segments: Professional and Residential. The aggregation of the company's segments is based on the segments having the following similarities: economic characteristics, types of products and services, types of production processes, type or class of customers, and method of distribution. The company's remaining activities are presented as "Other" due to their insignificance. The Professional reportable business segment consists of turf and landscape equipment; rental, specialty, and underground construction equipment; snow and ice management equipment; and irrigation and lighting products. Turf and landscape equipment products include sports fields and grounds mowing and maintenance equipment, golf course mowing and maintenance equipment, landscape contractor mowing equipment, landscape creation and renovation equipment, and other maintenance equipment. Rental, specialty, and underground construction equipment products include horizontal directional drills, walk and ride trenchers, stand-on skid steers, vacuum excavators, stump grinders, turf renovation products, asset locators, pipe rehabilitation solutions, materials handling equipment, and other after-market tools. Snow and ice management equipment products primarily include snowplows; stand-on snow and ice removal equipment, including the related snowplow, snow brush, and snow thrower attachments; salt and sand spreaders; brine ice control products; and related parts and accessories for light and medium duty trucks, utility task vehicles, skid steers, and front-end loaders. Irrigation and lighting products consist of sprinkler heads, electric and hydraulic valves, controllers, computer irrigation central control systems, coupling systems, and ag-irrigation drip tape and hose products, as well as professionally installed landscape lighting products offered through distributors and landscape contractors that also purchase irrigation products. Professional reportable business segment products are marketed and sold mainly through a network of distributors and dealers to professional and other users, including homeowners, engaged in maintaining golf courses, sports fields, municipal properties, agricultural fields, residential and commercial landscapes, and removing snow and ice, as well as directly to government customers, rental companies, and large retailers. The Residential reportable business segment primarily consists of walk power mowers, zero-turn riding mowers, snow throwers, replacement parts, and home solutions products, including grass trimmers, hedge trimmers, leaf blowers, blower-vacuums, chainsaws, string trimmers, and underground, hose, and hose-end retail irrigation products. Residential reportable business segment products are marketed and sold to homeowners through a network of distributors and dealers and through a broad array of home centers, hardware retailers, and mass retailers, as well as online. The company's Other activities consists of the company's wholly-owned domestic distribution company, certain corporate activities, and the elimination of intersegment revenues and expenses. Corporate activities include general corporate expenditures (finance, human resources, legal, information technology, public relations, business development, and similar activities) and other unallocated corporate assets and liabilities, such as corporate facilities and deferred tax assets and liabilities. The accounting policies of the reportable business segments are the same as those described in the summary of significant accounting policies in Note 1, Summary of Significant Accounting Policies and Related Data . The company evaluates the performance of its Professional and Residential reportable business segment results based on earnings from operations plus other income, net. The reportable business segment's operating profits or losses include direct costs incurred at the reportable business segment's operating level plus allocated expenses, such as profit sharing and manufacturing expenses. The allocated expenses represent costs that these operations would have incurred otherwise, but do not include general corporate expenses, interest expense, and income taxes. Operating loss for the company's Other activities includes earnings (loss) from the company's domestic wholly-owned distribution company, certain corporate activities, other income, and interest expense. The company accounts for intersegment gross sales at current market prices. The following tables present summarized financial information concerning the company's reportable business segments and Other activities (dollars in millions): Fiscal Year Ended October 31, 2023 Professional Residential Other Total Net sales $ 3,674.6 $ 854.2 $ 24.4 $ 4,553.2 Intersegment gross sales (eliminations) 45.8 0.2 (46.0) — Earnings (loss) before income taxes 1 509.1 68.9 (177.5) 400.5 Total assets 2,679.6 565.1 399.6 3,644.3 Capital expenditures 79.9 45.6 24.0 149.5 Depreciation and amortization $ 89.3 $ 14.9 $ 15.0 $ 119.2 Fiscal Year Ended October 31, 2022 Professional Residential Other Total Net sales $ 3,429.6 $ 1,068.6 $ 16.5 $ 4,514.7 Intersegment gross sales (eliminations) 33.5 0.1 (33.6) — Earnings (loss) before income taxes 584.0 112.7 (144.2) 552.5 Total assets 2,702.8 501.6 351.6 3,556.0 Capital expenditures 94.3 31.0 18.2 143.5 Depreciation and amortization $ 82.7 $ 13.0 $ 13.1 $ 108.8 Fiscal Year Ended October 31, 2021 Professional Residential Other Total Net sales $ 2,929.6 $ 1,010.1 $ 19.9 $ 3,959.6 Intersegment gross sales (eliminations) 30.5 — (30.5) — Earnings (loss) before income taxes 507.3 121.5 (129.0) 499.8 Total assets 2,032.4 388.2 515.5 2,936.1 Capital expenditures 79.5 16.7 7.8 104.0 Depreciation and amortization $ 73.7 $ 13.5 $ 12.1 $ 99.3 1 The Professional reportable segment earnings (loss) before income taxes includes $151.3 million of non-cash impairment charges recorded during the preparation of the financial statements for the third quarter of fiscal 2023 related to the Intimidator operating segment. For additional information regarding the impairment charges, refer to Note 5, Goodwill and Other Intangible Assets . During fiscal 2023 and 2022, no customers accounted for 10.0 percent or more of total consolidated gross sales. During fiscal 2021, sales to one customer in the Residential segment accounted for 10.6 percent of total consolidated gross sales. The following table presents the details of operating loss before income taxes for the company's Other activities (dollars in millions): Fiscal Years Ended October 31 2023 2022 2021 Corporate expenses $ (151.8) $ (126.3) $ (112.4) Interest expense (58.7) (35.7) (28.7) Earnings from the company's wholly-owned domestic distribution company and other income, net 33.0 17.8 12.1 Total operating loss $ (177.5) $ (144.2) $ (129.0) The following geographic area data includes net sales based on product shipment destination and long-lived assets, which consist of property, plant and equipment, net, and is based on physical location in addition to allocated capital tooling from U.S. plant facilities (dollars in millions): Fiscal Years Ended October 31 United States International Countries Total 2023 Net sales $ 3,605.5 $ 947.7 $ 4,553.2 Long-lived assets $ 540.4 $ 101.3 $ 641.7 2022 Net sales $ 3,635.5 $ 879.2 $ 4,514.7 Long-lived assets $ 505.9 $ 65.8 $ 571.7 2021 Net sales $ 3,132.0 $ 827.6 $ 3,959.6 Long-lived assets $ 440.5 $ 47.2 $ 487.7 |
Revenue
Revenue | 12 Months Ended |
Oct. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 4 Revenue The company enters into contracts with its customers for the sale of products or rendering of services in the ordinary course of business. A contract with commercial substance exists at the time the company receives and accepts a purchase or sales order under a sales contract with a customer. The company recognizes revenue when, or as, performance obligations under the terms of a contract with its customer are satisfied, which generally occurs with the transfer of control of product or services. Control is typically transferred to the customer at the time a product is shipped, or in the case of certain agreements, when a product is delivered or as services are rendered. Revenue is recognized based on the transaction price, which is measured as the amount of consideration the company expects to receive in exchange for transferring product or rendering services pursuant to the terms of the contract with a customer. The amount of consideration the company receives and the revenue the company recognizes varies with changes in the variable consideration associated with the estimated expense of certain of the company's sales promotions and incentives programs offered to customers, as well as anticipated product returns, when applicable. The company recognizes a provision for estimated variable consideration at the time revenue is recognized as a reduction of the transaction price. If a contract contains more than one performance obligation, the transaction price is allocated to each performance obligation based on the relative standalone selling price of the respective promised good or service. The company does not recognize revenue in situations where collectability from the customer is not probable and defers the recognition of revenue until collection is probable or payment is received and performance obligations are satisfied. Freight and shipping revenue billed to customers concurrent with revenue producing activities is included within revenue and the cost for freight and shipping is recognized as an expense within cost of sales when control has transferred to the customer. Shipping and handling activities that occur after control of the related products is transferred are treated as a fulfillment activity rather than a promised service and therefore are not considered a performance obligation. Sales, use, value-added, and other excise taxes the company collects concurrent with revenue producing activities are excluded from revenue. Incremental costs of obtaining a contract for which the performance obligations will be satisfied within the next twelve months are expensed as incurred. Incidental items, including goods or services, that are immaterial in the context of the contract are recognized as expense when incurred. Additionally, the company has elected not to disclose the balance of unfulfilled performance obligations for contracts with a contractual term of twelve months or less. The following tables disaggregate the company's reportable segment net sales by similar product type and geographic market (dollars in millions): Fiscal Year Ended October 31, 2023 Professional Residential Other Total Revenue by product type: Equipment $ 3,236.9 $ 819.2 $ 13.1 $ 4,069.2 Irrigation 437.7 35.0 11.3 484.0 Total net sales $ 3,674.6 $ 854.2 $ 24.4 $ 4,553.2 Revenue by geographic market: United States $ 2,898.5 $ 682.6 $ 24.4 $ 3,605.5 International Countries 776.1 171.6 — 947.7 Total net sales $ 3,674.6 $ 854.2 $ 24.4 $ 4,553.2 Fiscal Year Ended October 31, 2022 Professional Residential Other Total Revenue by product type: Equipment $ 3,003.0 $ 1,039.2 $ 6.4 $ 4,048.6 Irrigation 426.6 29.4 10.1 466.1 Total net sales $ 3,429.6 $ 1,068.6 $ 16.5 $ 4,514.7 Revenue by geographic market: United States $ 2,737.9 $ 881.1 $ 16.5 $ 3,635.5 International Countries 691.7 187.5 — 879.2 Total net sales $ 3,429.6 $ 1,068.6 $ 16.5 $ 4,514.7 Fiscal Year Ended October 31, 2021 Professional Residential Other Total Revenue by product type: Equipment $ 2,530.8 $ 975.8 $ 11.7 $ 3,518.3 Irrigation 398.8 34.3 8.2 441.3 Total net sales $ 2,929.6 $ 1,010.1 $ 19.9 $ 3,959.6 Revenue by geographic market: United States $ 2,268.9 $ 843.2 $ 19.9 $ 3,132.0 International Countries 660.7 166.9 — 827.6 Total net sales $ 2,929.6 $ 1,010.1 $ 19.9 $ 3,959.6 Product Revenue The company's product revenues are generated through sales of manufactured equipment and irrigation products, including related replacement parts and accessories. For the majority of the company's products, control is transferred and revenue is recognized when the product is shipped from the company's manufacturing facilities or distribution centers to the company's customers, which primarily consist of distributors, dealers, and mass retailers. In certain situations, the company transfers control and recognizes revenue when delivery to the customer has occurred. In limited circumstances, the company ships some of its products on a consignment basis to a customer distribution center or warehouse whereby the company retains control of the product stored at the customer's distribution center or warehouse. As the company's products are removed from the distribution center or warehouse by the customer and shipped to the retail sale location, control is transferred from the company to the customer. At that time, the company invoices the customer and recognizes revenue for these consignment transactions. The company does not offer a right of return for products shipped to the customer's retail sale location from the distribution center or warehouse. The total value of consignment inventory as of October 31, 2023 and 2022 was $38.3 million and $28.3 million, respectively. Product revenue is recognized based on the transaction price, which is measured as the amount of consideration the company expects to receive in exchange for transferring control of a product to a customer. The company recognizes variable consideration as a reduction of the transaction price at the time of the initial product sale by applying the portfolio approach practical expedient under the accounting standards codification guidance for revenue from contracts with customers. Variable consideration typically occurs as a result of certain of the company's sales promotions and incentive programs that are determined to represent price concessions because the program either: (i) results in an immediate reduction of the transaction price with no anticipated future costs or consideration provided to the customer, or (ii) the company anticipates a future cost based on historical or expected future business practice for which the company does not receive a distinct good or service in exchange for the future consideration provided to the customer under the program. Such programs primarily consist of off-invoice discounts, rebates, and floor plan and retail financing. The cost of off-invoice discounts are incurred at the time of sale as a reduction of the transaction price and as a result, have no future cost. For all other sales promotion and incentive programs recorded as a reduction of the transaction price at the time of the initial product sale, the company estimates variable consideration using the expected value method because the company anticipates providing a future price concession based on historical or expected future business practice or other factors. Estimates of variable consideration under the expected value method are primarily based on the terms of the sales arrangements and sales promotion and incentive programs with customers, historical payment and rebate claims experience, field inventory levels, quantity or mix of products sold, projected sales volumes, types of programs offered, and expectations for the acceptance of sales promotion and incentive programs offered in the future or changes in other relevant trends. When revenue is recognized, the estimated expense of these sales promotions and incentives programs is recorded as a reduction from gross sales within the Consolidated Statements of Earnings with a corresponding accrual recorded within sales promotions and incentives programs in the Consolidated Balance Sheets. Additionally, from time to time, the company may offer its customers the right to return eligible equipment and irrigation products, replacement parts, and accessories. Such right of return offered on the company's products is also considered to be variable consideration that is estimated and recorded as a reduction of revenue based primarily on historical experience, anticipated sales returns estimated from sales terms, trend analysis, and other factors. The company records the obligation for product returns within accrued liabilities in the Consolidated Balance Sheets and the right-of-return asset in prepaid expenses and other current assets in the Consolidated Balance Sheets. The refund liability and right-of-return asset are remeasured for changes in the estimate at each reporting date with a corresponding adjustment to net sales and cost of sales within the Consolidated Statements of Earnings. There are no material instances where variable consideration is constrained and not recorded at the initial time of sale. Collectability from the customer for product revenue is generally assumed to be probable because the company's financial exposure related to accounts receivable is reduced due to its dealer and distributor inventory financing programs. For additional information regarding these programs, refer to Note 11, Commitments and Contingencies. The company's product sales to customers that do not elect to finance product purchases are generally on open account with terms that generally approximate 30 to 120 days. The resulting receivables are included within receivables, net on the Consolidated Balance Sheets. The company performs ongoing credit evaluations of customers on open account terms in order to assess collectability. Service and Extended Warranty Revenue In certain cases, the company renders service contracts to customers, which typically range from 12 to 60 months. The company also sells separately priced extended warranty coverage on select products for a prescribed period after the standard warranty period expires, which typically range from 12 to 24 months. Under both types of contracts, the company receives payment at the inception of the contract and recognizes revenue over the term of the agreement in proportion to the costs expected to be incurred in satisfying the performance obligations under the contract. Contract Liabilities Contract liabilities relate to deferred revenue recognized for cash consideration received at contract inception in advance of the company's performance under the respective contract and generally relate to the sale of separately priced extended warranty contracts, service contracts, and non-refundable customer deposits. The company recognizes revenue over the term of the contract in proportion to the costs expected to be incurred in satisfying the performance obligations under the separately priced extended warranty and service contracts. For non-refundable customer deposits, the company recognizes revenue as of the point in time in which the performance obligation has been satisfied under the contract with the customer, which typically occurs upon change in control at the time a product is shipped. As of October 31, 2023 and October 31, 2022, $25.6 million and $28.0 million, respectively, of deferred revenue associated with outstanding separately priced extended warranty contracts, service contracts, and non-refundable customer deposits was reported within accrued liabilities and other long-term liabilities in the Consolidated Balance Sheets. For the fiscal year ended October 31, 2023, the company recognized $14.7 million of the October 31, 2022 deferred revenue balance. The company expects to recognize approximately $12.0 million of the October 31, 2023 deferred revenue balance within net sales in the Consolidated Statements of Earnings in fiscal 2024 and $13.6 million thereafter. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Oct. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 5 Goodwill and Other Intangible Assets Impairment Goodwill and indefinite-lived intangible assets are assessed for impairment at least annually during the fourth quarter of each fiscal year unless events or changes in circumstances indicate that impairment may have occurred prior to the annual assessment. Goodwill is assessed for impairment at the reporting unit level and the company's reporting units are its 12 operating segments. Indefinite-lived intangible assets are assessed for impairment at the individual indefinite-lived intangible asset or asset group level, as appropriate. Through the second quarter of fiscal 2023, the company previously assessed qualitative factors, including overall financial performance such as actual and projected cash flows, revenues, and earnings, and concluded it was not more likely than not that the indefinite-lived Spartan trade name intangible asset was impaired nor that the fair value of the Intimidator reporting unit was less than its carrying amount. During the preparation of the financial statements for the third quarter of fiscal 2023, the company identified deterioration in year-to-date fiscal 2023 results of Intimidator compared to previous expectations and resulting downward revisions to the company's projected future results of Intimidator made during the third quarter of fiscal 2023 as part of the company's annual long range strategic planning process, including future expected cash flows, which were significantly lower than previously expected. The underperformance was attributable to summer seasonality trends that did not materialize primarily due to reduced retail demand from homeowners who prefer professional solutions. This reduced retail demand from homeowners who prefer professional solutions was driven by persistent hot and dry weather patterns across key regions, coupled with a number of macro factors, including higher interest rates, economic uncertainty, and consumer spending preferences following the exceptional demand during the pandemic. Additionally, the company had previously replenished the Intimidator customer channel, which, combined with the reduced retail demand, caused a significant reduction in shipments and customer reorders during the third quarter of fiscal 2023, as well as a material reduction in projected future financial results for Intimidator. Based on the above factors, the company concluded it was more likely than not that the indefinite-lived Spartan trade name intangible asset was impaired and that the fair value of the Intimidator reporting unit was less than its carrying amount. As such, the company performed quantitative impairment analyses to compare the fair value of the Spartan trade name intangible asset and the Intimidator reporting unit with their respective carrying amounts. Prior to the end of the third quarter of fiscal 2023, the company did not have a material uncertainty associated with the assets of the Intimidator reporting unit, and therefore, did not previously report an early warning disclosure. The fair value of the Spartan trade name was determined using the relief-from-royalty method under the income approach which utilized various inputs and assumptions, including projected revenues from the company's projection process, assumed royalty rates that could be payable if the company did not own the intangible asset, terminal growth rates applied to projected revenues, applicable tax rates, and a discount rate. The fair value of the Intimidator reporting unit under the quantitative goodwill impairment test was determined using a discounted cash flow model under the income approach which utilized various inputs and assumptions, including projected operating results and growth rates from the company's projection process, applicable tax rates, estimated capital expenditures and depreciation, estimated changes in working capital, terminal growth rates applied to projected operating results in the terminal period, and a weighted-average cost of capital rate. Inputs used to estimate these fair values included significant unobservable inputs that reflect the company’s assumptions about the inputs that market participants would use and, therefore, the fair value assessments are classified within Level 3 of the fair value hierarchy. As a result of these analyses, at the end of the third quarter of fiscal 2023, the company recorded an impairment charge of $18.0 million related to the indefinite-lived Spartan trade name intangible asset reported under the Professional segment. Further, during the same period, the company recorded an impairment charge of $133.3 million related to goodwill of the Intimidator reporting unit also reported under the Professional segment. Subsequent to these impairment charges, the remaining balance of the indefinite-lived Spartan trade name intangible asset was $81.1 million and the remaining balance of goodwill for the Intimidator reporting unit was $30.5 million. The charges are included in the Non-cash impairment charges Goodwill The changes in the carrying amount of goodwill by reportable segment for fiscal 2023 and 2022 were as follows (dollars in millions): Professional Residential Other Total Balance as of October 31, 2021 $ 411.1 $ 10.6 $ — $ 421.7 Goodwill acquired 163.7 — — 163.7 Translation adjustments (1.8) (0.3) — (2.1) Balance as of October 31, 2022 573.0 10.3 — 583.3 Non-cash impairment charge (133.3) — — (133.3) Translation adjustments 0.8 — — 0.8 Balance as of October 31, 2023 $ 440.5 $ 10.3 $ — $ 450.8 Other Intangible Assets The components of other intangible assets were as follows (dollars in millions, except weighted-average useful life in years): October 31, 2023 Weighted-Average Useful Life in Years Gross Carrying Amount Accumulated Amortization Net Patents 9.9 $ 18.2 $ (16.0) $ 2.2 Non-compete agreements 5.5 6.9 (6.9) — Customer-related 15.8 327.5 (106.7) 220.8 Developed technology 7.1 102.0 (63.1) 38.9 Trade names 13.7 10.7 (4.0) 6.7 Backlog and other 0.6 5.7 (5.7) — Total finite-lived 13.3 471.0 (202.4) 268.6 Indefinite-lived - trade names 271.5 — 271.5 Total other intangible assets, net $ 742.5 $ (202.4) $ 540.1 October 31, 2022 Weighted-Average Useful Life in Years Gross Carrying Amount Accumulated Amortization Net Patents 9.9 $ 18.2 $ (15.3) $ 2.9 Non-compete agreements 5.5 6.8 (6.8) — Customer-related 16.0 321.0 (83.8) 237.2 Developed technology 7.1 101.9 (53.0) 48.9 Trade names 13.8 10.7 (3.4) 7.3 Backlog and other 0.6 5.7 (5.5) 0.2 Total finite-lived 13.4 464.3 (167.8) 296.5 Indefinite-lived - trade names 289.3 — 289.3 Total other intangible assets, net $ 753.6 $ (167.8) $ 585.8 Amortization expense for finite-lived intangible assets for the fiscal years ended October 31, 2023, 2022, and 2021 was $35.7 million, $33.9 million, and $23.8 million, respectively. Estimated amortization expense for the succeeding fiscal years is as follows (dollars in millions): Succeeding fiscal year Estimated amortization expense 2024 $ 34.5 2025 31.7 2026 30.5 2027 25.6 2028 22.3 Thereafter 124.0 Total estimated amortization expense $ 268.6 |
Indebtedness
Indebtedness | 12 Months Ended |
Oct. 31, 2023 | |
Debt Disclosure [Abstract] | |
Indebtedness | 6 Indebtedness The following is a summary of the company's indebtedness (dollars in millions): October 31 2023 2022 $600 million revolving credit facility, due October 2026 $ 40.0 $ — $270 million term loan, due October 2026 270.0 270.0 $200 million term loan, due April 2027 200.0 200.0 3.81% series A senior notes, due June 2029 100.0 100.0 3.91% series B senior notes, due June 2031 100.0 100.0 3.97% senior notes, due June 2032 100.0 100.0 7.8% debentures, due June 2027 100.0 100.0 6.625% senior notes, due May 2037 124.2 124.1 Less: unamortized debt issuance costs 2.7 3.3 Long-term debt $ 1,031.5 $ 990.8 Principal payments required on the company's outstanding indebtedness, based on the maturity dates defined within the company's debt arrangements, for the succeeding fiscal years is as follows (dollars in millions): Succeeding fiscal year Principal payments 2024 $ — 2025 37.0 2026 303.0 2027 270.0 2028 — Thereafter 425.0 Total principal payments $ 1,035.0 Revolving Credit Facility On October 5, 2021, the company entered into an amended and restated credit agreement ("amended credit agreement") that provided for, among other things, a five-year unsecured revolving credit facility with a borrowing capacity of up to $600.0 million ("revolving credit facility") that matures on October 5, 2026 and replaced the company's prior $600.0 million unsecured senior revolving credit facility scheduled to mature on June 19, 2023. Included in the revolving credit facility is a $10.0 million sublimit for standby letters of credit and a $30.0 million sublimit for swingline loans. At the company's election, and with the approval of the named borrowers on the revolving credit facility and the election of the lenders to fund such increase, the aggregate maximum principal amount available under the revolving credit facility may be increased by an amount of up to $300.0 million. Funds are available under the revolving credit facility for working capital, capital expenditures, and other lawful corporate purposes, including, but not limited to, acquisitions and common stock repurchases, subject in each case to compliance with certain financial covenants as defined in the amended credit agreement. As of October 31, 2023, the company had $40.0 million outstanding under the revolving credit facility and $2.6 million outstanding under the sublimit for standby letters of credit, resulting in $557.4 million of unutilized availability under the revolving credit facility. As of October 31, 2022, the company had no outstanding borrowings under the revolving credit facility and $3.1 million outstanding under the sublimit for standby letters of credit, resulting in $596.9 million of unutilized availability under the revolving credit facility. On April 27, 2022, the company further amended the amended credit agreement to transition the reference rate from LIBOR to term SOFR. As of October 31, 2023, SOFR is the reference rate in effect for all outstanding variable interest borrowings of the company. On September 22, 2023, the company further amended the amended credit agreement to permit non-cash charges in its “Consolidated EBIT” calculation among other administrative amendments. Outstanding loans under the revolving credit facility (other than swingline loans), if applicable, bear interest at a variable rate generally based on SOFR or an alternative variable rate based on the highest of the Bank of America prime rate, the federal funds rate or a rate generally based on SOFR, in each case subject to an additional basis point spread as defined in the amended credit agreement. Swingline loans under the revolving credit facility bear interest at a rate determined by the swingline lender or an alternative variable rate based on the highest of the Bank of America prime rate, the federal funds rate or a rate generally based on SOFR, in each case subject to an additional basis point spread as defined in the amended credit agreement. Interest is payable quarterly in arrears. The interest rate on outstanding borrowings as of October 31, 2023 was 6.34%. During fiscal 2023, 2022 and 2021, the company incurred interest expense of $5.7 million, $2.4 million and $0.0 million, respectively, on the outstanding borrowings under the current and prior revolving credit facilities. The company's revolving credit facility contains customary covenants, including, without limitation, financial covenants, such as the maintenance of a maximum leverage ratio; and negative covenants, which among other things, limit cash dividends, disposition of assets, consolidations and mergers, liens, and other matters customarily restricted in such agreements. Most of these restrictions are subject to certain minimum thresholds and exceptions. The company was in compliance with all covenants related to the amended credit agreement for the company's revolving credit facility as of October 31, 2023. $270.0 Million Term Loan Credit Agreement The amended credit agreement executed on October 5, 2021, as further amended on April 27, 2022 and September 22, 2023, also provided for a five-year unsecured term loan in an aggregate principal amount of $270.0 million, the entire amount of which was funded on October 5, 2021 and matures on October 5, 2026 ("$270.0 million term loan"). Under the amended credit agreement, incremental term loan commitments may be established at the company's election and the approval of the borrowers on the $270.0 million term loan by an amount of up to $100.0 million. Beginning December 31, 2024, the company is required to make quarterly principal amortization payments on the $270.0 million term loan equal to 2.5% of the original aggregate principal amount reduced by any applicable prepayments. On October 5, 2026, the aggregate principal amount of any remaining outstanding borrowings under the $270.0 million term loan is required to be repaid. The $270.0 million term loan may be prepaid and terminated at the company's election at any time without penalty or premium. Amounts repaid or prepaid may not be reborrowed. As of October 31, 2023, there was $270.0 million of outstanding borrowings under the $270.0 million term loan. Outstanding borrowings under the $270.0 million term loan bear interest on the outstanding principal amount thereof for each interest period at a variable rate generally based on Term SOFR or an alternative variable rate based on the highest of the Bank of America prime rate, the federal funds rate or a rate generally based on Term SOFR, in each case subject to an additional basis point spread as defined in the amended credit agreement. Interest is payable quarterly in arrears. The interest rate on outstanding borrowings as of October 31, 2023 was 6.30%. For the fiscal years ended October 31, 2023, 2022, and 2021, the company incurred interest expense of $15.9 million, $5.7 million and $0.2 million, respectively, on the outstanding borrowings under the $270.0 million term loan. The $270.0 million term loan contains customary covenants, including, without limitation, financial covenants generally consistent with those applicable under the company's revolving credit facility and the company was in compliance with all covenants as of October 31, 2023. $200.0 Million Term Loan Credit Agreement On April 27, 2022, the company entered into a term loan credit agreement ("$200.0 million term loan") with certain financial institutions for the purpose of paying down certain of its outstanding borrowings incurred in connection with the company's acquisition of Intimidator on January 13, 2022 and borrowed under its revolving credit facility provided under the amended credit agreement. On September 22, 2023, the company amended the $200.0 million term loan credit agreement to permit non-cash charges in its “Consolidated EBIT” calculation among other administrative amendments. The entire $200.0 million available under the agreement was funded on April 27, 2022, and matures on April 27, 2027. In connection with the company's entry into the $200.0 million term loan, the company incurred immaterial debt issuance costs, which are being deferred and amortized over the life of the $200.0 million term loan and are netted against the outstanding borrowings under the $200.0 million term loan within the long-term debt line item on the company's Consolidated Balance Sheets. Beginning with the last business day of June 2025, the company is required to make quarterly amortization payments on the $200.0 million term loan equal to 2.5% of the original aggregate principal amount reduced by any applicable prepayments. The $200.0 million term loan may be prepaid and terminated at the company's election at any time without penalty or premium. Amounts repaid or prepaid may not be reborrowed. Outstanding borrowings under the $200.0 million term loan bear interest on the outstanding principal amount thereof for each interest period at a variable rate generally based on Term SOFR or an alternative variable rate based on the highest of the Bank of America prime rate, the federal funds rate or a rate generally based on Term SOFR, in each case subject to an additional basis point spread as defined in the amended credit agreement. Interest is payable quarterly in arrears. The interest rate on outstanding borrowings as of October 31, 2023 was 6.30%. For the fiscal years ended October 31, 2023 and 2022, the company incurred interest expense of $11.7 million and $3.1 million, respectively, on the outstanding borrowings under the $200.0 million term loan. The $200.0 million term loan contains customary covenants, including, without limitation, financial covenants generally consistent with those applicable under the company's revolving credit facility. The company was in compliance with all covenants as of October 31, 2023. 3.81% Series A and 3.91% Series B Senior Notes On April 30, 2019, the company entered into a private placement note purchase agreement with certain purchasers pursuant to which the company agreed to issue and sell an aggregate principal amount of $100.0 million of 3.81% Series A Senior Notes due June 15, 2029 ("Series A Senior Notes") and $100.0 million of 3.91% Series B Senior Notes due June 15, 2031 ("Series B Senior Notes" and together with the Series A Senior Notes, the "Senior Notes"). On June 27, 2019, the company issued $100.0 million of the Series A Senior Notes and $100.0 million of the Series B Senior Notes pursuant to the private placement note purchase agreement. The Senior Notes are unsecured senior obligations of the company. No principal is due on the Senior Notes prior to their stated due dates. The company has the right to prepay all or a portion of either series of the Senior Notes in amounts not less than 10% of the then outstanding principal amount of the series of Senior Notes being prepaid upon notice to the holders of such series for 100% of the principal amount prepaid, plus a make-whole premium, as set forth in the private placement note purchase agreement, plus accrued and unpaid interest, if any, to the date of prepayment. In addition, at any time on or after the date that is 90 days prior to the maturity date of the respective series, the company has the right to prepay all of the outstanding Senior Notes of such series for 100% of the principal amount so prepaid, plus accrued and unpaid interest, if any, to the date of prepayment. Upon the occurrence of certain change of control events, the company is required to offer to prepay all Senior Notes for 100% of the principal amount thereof plus accrued and unpaid interest, if any, to the date of prepayment. Interest on the Senior Notes is payable semiannually on the 15th day of June and December in each year. For each of the fiscal years ended October 31, 2023, 2022, and 2021, the company incurred interest expense of $7.7 million, respectively. The private placement note purchase agreement contains customary representations and warranties of the company, as well as certain customary covenants, including, without limitation, financial covenants generally consistent with those applicable under the company's revolving credit facility. The company was in compliance with all covenants as of October 31, 2023. 3.97% Senior Notes On June 30, 2022, the company issued $100.0 million of 3.97% Senior Notes due June 30, 2032 ("3.97% Senior Notes") pursuant to a private placement note purchase agreement ("2022 Note Purchase Agreement") with certain purchasers. The proceeds were used pay down certain of its outstanding borrowings incurred in connection with the company's acquisition of Intimidator on January 13, 2022 and borrowed under its revolving credit facility provided under the amended credit agreement. In connection with the 2022 Note Purchase Agreement, the company incurred immaterial debt issuance costs, which were capitalized as contra-debt on the company's Consolidated Balance Sheets and will be amortized over the life of the 3.97% Senior Notes. The 3.97% Senior Notes are unsecured senior obligations of the company and mature on June 30, 2032. The company has the right to prepay all or a portion of the 3.97% Senior Notes in an amount not less than 10% of the then outstanding principal amount upon notice to the holders for 100% of the prepaid principal amount plus a make-whole premium, as set forth in the 2022 Note Purchase Agreement, plus accrued and unpaid interest, if any, to the date of prepayment. In addition, at any time during the 90 day period ending on the maturity date of the 3.97% Senior Notes, the company will have the right to prepay all of the 3.97% Senior Notes for 100% of the principal amount prepaid, plus accrued and unpaid interest, if any, to the date of prepayment. Upon the occurrence of certain change of control events, the company is required to offer to prepay all of the 3.97% Senior Notes for 100% of the principal amount thereof plus accrued and unpaid interest, if any, to the date of prepayment. Interest on the 3.97% Senior Notes is payable semiannually on the 30th day of June and December in each year. For the fiscal years ended October 31, 2023 and 2022, the company incurred interest expense of $4.0 million and $1.3 million, respectively, on the outstanding borrowings under the 3.97% Senior Notes. The 2022 Note Purchase Agreement contains customary representations and warranties of the company, as well as certain customary covenants, including, without limitation, financial covenants generally consistent with those applicable under the company's revolving credit facility. The company was in compliance with all covenants as of October 31, 2023. 7.8% Debentures In June 1997, the company issued $175.0 million of debt securities consisting of $75.0 million of 7.125% coupon 10-year notes and $100.0 million of 7.8% coupon 30-year debentures. The $75.0 million of 7.125% coupon 10-year notes were repaid at maturity during fiscal 2007. In connection with the issuance of $175.0 million in long-term debt securities, the company paid $23.7 million to terminate three forward-starting interest rate swap agreements with notional amounts totaling $125.0 million. These swap agreements had been entered into to reduce exposure to interest rate risk prior to the issuance of the new long-term debt securities. As of the inception of one of the swap agreements, the company had received payments that were recorded as deferred income to be recognized as an adjustment to interest expense over the term of the new debt securities. As of the date the swaps were terminated, this deferred income totaled $18.7 million. The excess termination fees over the deferred income recorded was deferred and is being recognized as an adjustment to interest expense over the term of the debt securities issued. Interest on the debentures is payable semiannually on the 15th day of June and December in each year. For each of the fiscal years ended October 31, 2023, 2022, and 2021, the company incurred interest expense of $8.0 million, respectively. 6.625% Senior Notes On April 26, 2007, the company issued $125.0 million in aggregate principal amount of 6.625% senior notes due May 1, 2037 and priced at 98.513% of par value. The resulting discount of $1.9 million is being amortized over the term of the notes using the straight-line method as the results obtained are not materially different from those that would result from the use of the effective interest method. Although the coupon rate of the senior notes is 6.625%, the effective interest rate is 6.741% after taking into account the issuance discount. The senior notes are unsecured senior obligations of the company and rank equally with the company's other unsecured and unsubordinated indebtedness. The indentures under which the senior notes were issued contain customary covenants and event of default provisions. The company may redeem some or all of the senior notes at any time at the greater of the full principal amount of the senior notes being redeemed or the present value of the remaining scheduled payments of principal and interest discounted to the redemption date on a semi-annual basis at the treasury rate plus 30 basis points, plus, in both cases, accrued and unpaid interest. In the event of the occurrence of both (i) a change of control of the company, and (ii) a downgrade of the notes below an investment grade rating by both Moody's Investors Service, Inc. and Standard & Poor's Ratings Services within a specified period, the company would be required to make an offer to purchase the senior notes at a price equal to 101% of the principal amount of the senior notes plus accrued and unpaid interest to the date of repurchase. |
Investment in Joint Venture
Investment in Joint Venture | 12 Months Ended |
Oct. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Joint Venture | 7 Investment in Joint Venture The company is party to a joint venture with HDF, a subsidiary of The Huntington National Bank, established as Red Iron, the primary purpose of which is to provide customer inventory financing to certain distributors and dealers of certain of the company’s products in the U.S. The company has also entered into a limited inventory repurchase agreement with Red Iron. For additional information regarding the customer financing aspect of the arrangement, as well as the limited inventory purchase agreement, refer to Note 11, Commitments and Contingencies . |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8 Income Taxes Earnings Before Income Taxes Earnings before income taxes were as follows (dollars in millions): Fiscal Years Ended October 31 2023 2022 2021 Earnings before income taxes: United States $ 345.0 $ 491.3 $ 446.2 Foreign 55.5 61.2 53.6 Total earnings before income taxes $ 400.5 $ 552.5 $ 499.8 Reconciliation of Effective Tax Rate A reconciliation of the statutory federal income tax rate to the company's effective tax rate is summarized as follows: Fiscal Years Ended October 31 2023 2022 2021 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % Excess deduction for stock-based compensation (1.1) (0.4) (1.5) State and local income taxes, net of federal benefit 1.8 2.0 1.4 Foreign operations (0.7) (0.7) (0.5) Federal research tax credit (2.3) (1.3) (1.4) Foreign-derived intangible income (1.1) (0.7) (0.9) Other, net 0.1 (0.1) (0.1) Effective tax rate 17.7 % 19.8 % 18.0 % The Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was signed into law on March 27, 2020 and allowed for 100% deduction of meals expense, delayed payment of employer payroll taxes, among other items. The company has reflected the impact of the CARES Act for the fiscal years ended October 31, 2023, 2022, and 2021 within its Consolidated Financial Statements and such impact was not material to the company's Consolidated Financial Statements. The Inflation Reduction Act ("IRA") was signed into law on August 16, 2022. Among other provisions, the IRA includes a 15% corporate minimum tax applied to large corporations, a 1% excise tax on corporate stock repurchases made after December 31, 2022 and various energy tax credits. There are no material impacts from the IRA within the Consolidated Financial Statements for the fiscal years ended October 31, 2023 and 2022. On December 22, 2017, the U.S enacted Public Lax No. 115-97 ("Tax Act"), originally introduced as the Tax Cuts and Jobs Act, which significantly modified the Internal Revenue Code. The Tax Act introduced the capitalization and amortization of research and experimentation expenditures for taxable years beginning after December 31, 2021. The company has reflected the impact for the fiscal year ended October 31, 2023. Provision for Income Taxes Components of the company's provision for income taxes were as follows (dollars in millions): Fiscal Years Ended October 31 2023 2022 2021 Current provision: Federal $ 94.4 $ 94.7 $ 90.2 State 17.0 19.1 16.0 Foreign 7.3 7.7 9.2 Total current provision $ 118.7 $ 121.5 $ 115.4 Deferred (benefit) provision: Federal $ (37.8) $ (7.4) $ (18.4) State (10.3) (4.9) (6.5) Foreign 0.2 — (0.6) Total deferred benefit (47.9) (12.3) (25.5) Total provision for income taxes $ 70.8 $ 109.2 $ 89.9 Deferred Income Taxes The components of the company's deferred income tax assets and liabilities were as follows (dollars in millions): Fiscal Years Ended October 31 2023 2022 Deferred income tax assets: Compensation and benefits $ 32.5 $ 32.9 Warranty and insurance 37.6 35.4 Lease liabilities 35.3 20.2 Advertising and sales promotions and incentives 16.5 7.2 Inventory 14.4 36.4 Deferred revenue 0.3 3.3 Other 3.0 — Net operating losses and other carryforwards 5.3 6.4 Research and Experimentation 35.4 — Valuation allowance (3.3) (3.2) Deferred income tax assets $ 177.0 $ 138.6 Deferred income tax liabilities: Right-of-use assets $ (34.8) $ (19.5) Depreciation (60.0) (51.9) Amortization (68.4) (102.4) Other — (3.8) Deferred income tax liabilities (163.2) (177.6) Deferred income tax assets (liabilities), net $ 13.8 $ (39.0) As of October 31, 2023, the company has domestic net operating loss carryforwards of $4.1 million for both federal and state income tax purposes that does not expire. As of October 31, 2023, the company has net operating loss carryforwards of approximately $5.1 million in foreign jurisdictions, which are comprised of $5.0 million that do not expire and $0.1 million that expires between fiscal 2035 and fiscal 2040. The company also has domestic credit carryforwards of $1.9 million that expire between fiscal 2027 and fiscal 2043. The net change in the total valuation allowance between the fiscal years ended October 31, 2023 and 2022 was an increase of $0.1 million. The change in valuation allowance is related to domestic tax credits, capital loss carryforwards, and net operating losses that are expected to expire prior to utilization. The company expects that $41.8 million of the total undistributed earnings of its foreign operations will be indefinitely reinvested. Should these earnings be distributed in the future in the form of dividends or otherwise, the company may be subject to foreign withholding taxes, state income taxes, and/or additional federal taxes for currency fluctuations. As of October 31, 2023, the unrecognized deferred tax liabilities for temporary differences related to the company’s investment in non-U.S. subsidiaries, and any withholding, state, or additional federal taxes that may be applied upon any future repatriation, are expected to be immaterial. Unrecognized Tax Benefits A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (dollars in millions): Unrecognized tax benefits as of October 31, 2022 $ 3.3 Increase as a result of tax positions taken during a prior period 0.2 Increase as a result of tax positions taken during the current period 0.6 Reductions as a result of statute of limitations lapses (0.4) Unrecognized tax benefits as of October 31, 2023 $ 3.7 The company recognizes interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes within the Consolidated Statements of Earnings. In addition to the unrecognized tax benefits of $3.7 million, which have been recorded as an other accrued liability within the Consolidated Balance Sheets as of October 31, 2023, the company recorded $1.0 million of accrued interest and penalties as an other accrued liability within the Consolidated Balance Sheets as of October 31, 2023. Included in the balance of unrecognized tax benefits as of October 31, 2023 are potential benefits of $3.8 million that, if recognized, would affect the effective tax rate. The company and its wholly owned subsidiaries file income tax returns in the U.S. federal jurisdiction, and numerous state and foreign jurisdictions. With few exceptions, the company is no longer subject to U.S. federal, state and local, and foreign income tax examinations by tax authorities for taxable years before fiscal 2019. The company is under audit in certain state jurisdictions and expects various statutes of limitation to expire during the next 12 months. Due to the uncertainty related to the response of taxing authorities, a range of outcomes cannot be reasonably estimated at this time. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Oct. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 9 Stock-Based Compensation On March 15, 2022, the company’s shareholders approved The Toro Company 2022 Equity and Incentive Plan (the “2022 plan”), which became effective immediately and replaced The Toro Company Amended and Restated 2010 Equity and Incentive Plan, as amended (the “2010 plan”) with respect to future grants of awards. The 2022 plan is administered by the Compensation & Human Resources Committee of the Board and permits the grant of nonqualified and incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, annual performance awards, non-employee director awards and other cash-based and stock-based awards to eligible individuals. Subject to adjustment as provided in the 2022 plan, the maximum aggregate number of shares of the company’s common stock authorized for issuance under the 2022 plan is equal to the sum of: (a) 1,250,000 shares, plus (b) the number of shares remaining available for grant under the 2010 plan but not subject to outstanding awards thereunder as of March 15, 2022, and plus (c) the number of shares subject to awards outstanding under the 2010 plan as of March 15, 2022 but only to the extent that such outstanding awards are forfeited, expire or otherwise terminate without the issuance of such shares. The number of unissued shares of common stock available for future stock-based compensation award grants under the 2022 plan was 3,046,609 as of October 31, 2023. All outstanding stock-based compensation awards were granted under the 2010 plan or the 2022 plan. Shares of common stock issued upon the exercise, vesting, or settlement of stock options, restricted stock units, and performance shares are issued from treasury shares. Compensation costs related to stock-based compensation awards were as follows (dollars in millions): Fiscal Years Ended October 31 2023 2022 2021 Stock option awards $ 8.5 $ 10.0 $ 10.0 Performance share awards 2.9 5.8 6.8 Restricted stock unit awards 6.9 5.7 4.3 Unrestricted common stock awards 1.1 0.6 0.7 Total compensation cost for stock-based compensation awards $ 19.4 $ 22.1 $ 21.8 Related tax benefit from stock-based compensation awards $ 4.7 $ 5.3 $ 5.2 Stock Option Awards Stock options are granted with an exercise price equal to the closing price of the company's common stock on the date of grant, as reported by the New York Stock Exchange and are generally granted to executive officers, other employees, and non-employee Board members on an annual basis in the first quarter of the company's fiscal year but may also be granted throughout the fiscal year in connection with hiring, mid-year promotions, leadership transition, or retention, as needed and applicable. Options generally vest one-third each year over a three-year period and have a ten-year term but in certain circumstances, the vesting requirement may be modified such that options granted to certain employees vest in full on the three-year anniversary of the date of grant and have a ten-year term. Compensation cost equal to the grant date fair value determined under the Black-Scholes valuation method is generally recognized for these awards over the vesting period. Compensation cost recognized for other employees not considered executive officers or non-employee Board members is net of estimated forfeitures, which are determined at the time of grant based on historical forfeiture experience. Stock options granted to executive officers and other employees are subject to accelerated expensing if the option holder meets the retirement definition set forth in the applicable equity and incentive plan. In that case, the fair value of the options is expensed in the fiscal year of grant because generally, if the option holder is employed as of the end of the fiscal year in which the options are granted, such options will not be forfeited but continue to vest according to their schedule following retirement. Similarly, if a non-employee Board member has served on the company's Board for ten The fair value of each stock option is estimated on the date of grant using various inputs and assumptions under the Black-Scholes valuation method. The expected life is a significant assumption as it determines the period for which the risk-free interest rate, stock price volatility, and dividend yield must be applied. The expected life is the average length of time in which executive officers, other employees, and non-employee Board members are expected to exercise their stock options, which is primarily based on historical exercise experience. The company groups executive officers and non-employee Board members for valuation purposes based on similar historical exercise behavior. Expected stock price volatility is based on the daily movement of the company's common stock over the most recent historical period equivalent to the expected life of the option. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury rate over the expected life at the time of grant. The expected dividend yield is estimated over the expected life based on the company's historical cash dividends paid, expected future cash dividends and dividend yield, and expected changes in the company's stock price. The table below illustrates the weighted-average valuation assumptions used under the Black-Scholes valuation method for options granted in the following fiscal periods: Fiscal Years Ended October 31 2023 2022 2021 Expected life of option in years 6.31 6.19 6.21 Expected stock price volatility 25.20 % 23.74 % 23.26 % Risk-free interest rate 3.79 % 1.31 % 0.55 % Expected dividend yield 0.95 % 0.94 % 0.86 % Per share weighted-average fair value at date of grant $ 33.21 $ 22.55 $ 19.39 The table below presents stock option activity for fiscal 2023: Stock Option Awards Weighted-Average Exercise Price Weighted-Average Aggregate Intrinsic Outstanding as of October 31, 2022 2,986,033 $ 71.23 6.0 $ 102.1 Granted 475,620 110.87 Exercised (389,923) 52.76 Forfeited (98,300) 107.67 Outstanding as of October 31, 2023 2,973,430 $ 78.80 5.4 $ 32.0 Exercisable as of October 31, 2023 2,078,025 $ 68.37 4.4 $ 32.0 As of October 31, 2023, there was $7.5 million of total unrecognized compensation cost related to unvested stock options that is expected to be recognized over a weighted-average period of 2.04 years. The table below presents the total market value of stock options exercised and the total intrinsic value of options exercised during the following fiscal years (dollars in millions): Fiscal Years Ended October 31 2023 2022 2021 Market value of stock options exercised $ 43.4 $ 20.1 $ 40.1 Intrinsic value of stock options exercised 1 $ 22.8 $ 9.8 $ 26.0 1 Intrinsic value is calculated as the amount by which the stock price at exercise date exceeded the option exercise price. Performance Share Awards The company grants performance share awards on an annual basis in the first quarter of the company's fiscal year to executive officers and other employees under which they are entitled to receive shares of the company's common stock contingent on the achievement of performance goals of the company, which are generally measured over a three-year period. The number of shares of common stock a participant receives can be increased (up to 200 percent of target levels) or reduced (down to zero) based on the level of achievement of performance goals and will vest at the end of a three-year period. Compensation cost is recognized for these awards on a straight-line basis over the vesting period based on the per share fair value, which is equal to the closing price of the company's common stock on the date of grant, and the probability of achieving each performance goal. Factors related to the company's performance share awards are as follows (dollars in millions, except per award data): Fiscal Years Ended October 31 2023 2022 2021 Weighted-average fair value per award at date of grant $ 112.14 $ 98.41 $ 90.59 Fair value of performance share awards vested $ 5.3 $ 4.8 $ 3.4 The table below presents fiscal 2023 activity for unvested performance share awards: Performance Shares Weighted-Average Fair Value at Date of Grant Unvested as of October 31, 2022 195,600 $ 88.63 Granted 66,131 112.14 Vested (46,831) 77.33 Forfeited (28,140) 106.16 Unvested as of October 31, 2023 186,760 $ 100.57 As of October 31, 2023, there was $4.2 million of total unrecognized compensation cost related to unvested performance share awards that is expected to be recognized over a weighted-average period of 1.63 years. Restricted Stock Unit Awards Restricted stock unit awards are generally granted on an annual basis to certain employees that are not executive officers and occasionally may be granted, including to executive officers, in connection with hiring, mid-year promotions, leadership transition, or retention. Restricted stock unit awards generally vest one-third each year over a three-year period, or vest in full on the three-year anniversary of the date of grant. In rare circumstances, such awards may have performance-based rather than time-based vesting requirements. Compensation cost equal to the grant date fair value, net of estimated forfeitures, is recognized for these awards over the vesting period. The grant date fair value is equal to the closing price of the company's common stock on the date of grant multiplied by the number of shares subject to the restricted stock unit awards and estimated forfeitures are determined on the grant date based on historical forfeiture experience. Factors related to the company's restricted stock unit awards are as follows (dollars in millions, except per award data): Fiscal Years Ended October 31 2023 2022 2021 Weighted-average fair value per award at date of grant $ 103.40 $ 88.90 $ 97.87 Fair value of restricted stock units vested $ 6.2 $ 5.5 $ 4.5 The table below presents fiscal 2023 activity for unvested restricted stock units: Restricted Stock Units Weighted-Average Fair Value at Date Unvested as of October 31, 2022 150,677 $ 90.39 Granted 99,081 103.40 Vested (57,727) 89.16 Forfeited (12,205) 93.26 Unvested as of October 31, 2023 179,826 $ 97.66 As of October 31, 2023, there was $9.3 million of total unrecognized compensation cost related to unvested restricted stock units that is expected to be recognized over a weighted-average period of 2.23 years. Unrestricted Common Stock Awards During fiscal 2023, 2022, and 2021, 10,329, 6,453, and 8,070 shares, respectively, of fully vested unrestricted common stock awards were granted to certain Board members as a component of their compensation for their service on the Board and were recorded within selling, general and administrative expense in the Consolidated Statements of Earnings. Additionally, our Board members may elect to convert a portion or all of their calendar year annual retainers otherwise payable in cash into shares of the company's common stock. Deferred Compensation Plan The company maintains a deferred compensation plan that allows executive officers and certain other employees that receive performance share awards to defer receipt of shares of the company's common stock paid out under such awards to a date in the future. Participants can defer up to 100 percent of the common stock payout and are always 100 percent vested in their accounts. Common stock payout deferrals under this plan are held in a rabbi trust and treated in a manner similar to treasury shares and are recorded at cost within stockholders' equity in the Consolidated Balance Sheets as of October 31, 2023 and 2022. The total of common stock required to settle this deferred compensation obligation is included in the denominator of the calculation of both basic and diluted net earnings per share of common stock. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Oct. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 10 Stockholders' Equity Stock Repurchase Program On December 4, 2018, the company's Board authorized the repurchase of 5,000,000 shares of common stock in open-market or in privately negotiated transactions under the authorized stock repurchase program. During fiscal 2023 and 2022, the company paid $60.0 million and $140.0 million to repurchase 577,115 and 1,525,856 shares, respectively, under the authorized repurchase program. As of October 31, 2023, 1,949,491 shares remained available for repurchase under the December 4, 2018 tranche of authorized shares under the company's stock repurchase program. This program has no expiration date but may be terminated by the Board at any time. Shares of the company's common stock surrendered by employees to satisfy minimum tax withholding obligations upon vesting of certain stock-based compensation awards are not a part of this program. On December 13, 2022, the company's Board authorized the repurchase of up to an additional 5,000,000 shares of common stock in open-market or in privately negotiated transactions under the authorized stock repurchase program. As of October 31, 2023, no shares have been repurchased under this program. This program has no expiration date but may be terminated by the Board at any time. Treasury Shares Treasury shares generally consist of shares of the company's common stock repurchased under the company's Board authorized stock repurchase program. The company values treasury shares on an average cost basis. As of October 31, 2023, the company had a total of 23,888,294 treasury shares at a total average cost of $1,743.6 million. As of October 31, 2022, the company had a total of 23,774,518 treasury shares at a total average cost of $1,715.0 million. Accumulated Other Comprehensive Loss The components of AOCL, net of tax, within the Consolidated Statements of Stockholders' Equity were as follows (dollars in millions): As of October 31 2023 2022 Foreign currency translation adjustments $ 41.7 $ 51.3 Pension benefits 4.3 3.6 Cash flow derivative instruments (9.0) (21.8) Total accumulated other comprehensive loss $ 37.0 $ 33.1 The components and activity of AOCL, net of tax, were as follows (dollars in millions): Foreign Currency Translation Adjustments Pension Benefits Cash Flow Derivative Instruments Total Balance as of October 31, 2022 $ 51.3 $ 3.6 $ (21.8) $ 33.1 Other comprehensive (income) loss before reclassifications (9.6) 0.7 (2.5) (11.4) Amounts reclassified from AOCL — — 15.3 15.3 Net current period other comprehensive (income) loss (9.6) 0.7 12.8 3.9 Balance as of October 31, 2023 $ 41.7 $ 4.3 $ (9.0) $ 37.0 Foreign Currency Translation Adjustments Pension Benefits Cash Flow Derivative Instruments Total Balance as of October 31, 2021 $ 19.5 $ 3.9 $ 2.6 $ 26.0 Other comprehensive loss (income) before reclassifications 31.8 (0.3) (19.3) 12.2 Amounts reclassified from AOCL — — (5.1) (5.1) Net current period other comprehensive loss (income) 31.8 (0.3) (24.4) 7.1 Balance as of October 31, 2022 $ 51.3 $ 3.6 $ (21.8) $ 33.1 For additional information on the components reclassified from AOCL to the respective line items in net earnings for derivative instruments refer to Note 13, Derivative Instruments and Hedging Activities . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Oct. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11 Commitments and Contingencies Customer Financing Inventory Financing Arrangements The company is party to inventory financing arrangements with Red Iron, HCFC, and other third-party financial institutions (collectively, the "financial institutions") which provide inventory financing to certain dealers and distributors of certain of the company's products in the U.S. and internationally. These financing arrangements are structured as an advance in the form of a payment by the financial institutions to the company on behalf of a distributor or dealer with respect to invoices financed by the financial institution. These payments extinguish the obligation of the dealer or distributor to make payment to the company under the terms of the applicable invoice. Under separate agreements between the financial institutions and the dealers and distributors, the financial institutions provide loans to the dealers and distributors for the advances paid by the financial institutions to the company. Under these financing arrangements, down payments are not required, and depending on the finance program for each product line, finance charges are incurred by the company, shared between the company and the distributor and/or the dealer, or paid by the distributor or dealer. The financial institutions retain a security interest in the distributors' and dealers' financed inventories and such inventories are monitored regularly through audits. Financing terms to the distributors and dealers require payment as the inventory, which secures the indebtedness, is sold to end-users or when payment otherwise become due under the agreements between the financial institutions and the distributors and dealers, whichever occurs first. Rates are generally indexed to SOFR, or an alternative variable rate, plus a fixed percentage that differs based on whether the financing is for a distributor or dealer. Rates may also vary based on the product that is financed. The net amount of receivables financed for dealers and distributors under this arrangement with Red Iron during fiscal 2023, 2022, and 2021 was $2,789.5 million, $2,627.5 million, and $2,282.6 million, respectively. The total amount of net receivables outstanding under this arrangement with Red Iron as of October 31, 2023 and 2022 was $1,019.0 million and $776.1 million, respectively. The total amount of receivables due from Red Iron to the company as of October 31, 2023 and 2022 were $34.4 million and $17.7 million, respectively. The net amount of receivables financed for dealers and distributors under the arrangements with HCFC and the other third-party financial institutions during fiscal 2023, 2022, and 2021 was $545.4 million, $633.5 million, and $460.5 million, respectively. As of October 31, 2023 and 2022, $234.7 million and $220.0 million, respectively, of receivables financed by HCFC and the other third-party financial institutions were outstanding. Inventory Repurchase Agreements The company has entered into a limited inventory repurchase agreement with Red Iron and HCFC under which the company has agreed to repurchase certain repossessed products, up to a maximum aggregate amount of $7.5 million in a calendar year. The company has also entered into inventory repurchase agreements with the other third-party financial institutions under which the company has agreed to repurchase certain repossessed products. Under these agreements, for the fiscal years ended October 31, 2023 and 2022, the company was contingently liable to repurchase up to $32.2 million and $80.0 million of repossessed inventory, respectively. The company's financial exposure under these inventory repurchase agreements is limited to the difference between the amount paid to Red Iron, HCFC or other third-party financing institutions for repurchases of inventory and the amount received upon subsequent resale of the repossessed product. The company has repurchased immaterial amounts of inventory pursuant to such arrangements during the fiscal years ended October 31, 2023, 2022, and 2021. End-User Financing The company has agreements with third-party financing companies to provide financing options to end-customers throughout the world. The company has no material contingent liabilities for residual value or credit collection risk under these agreements with third-party financing companies. From time to time, the company enters into agreements where it provides recourse to third-party finance companies in the event of default by the end-customer for financing payments to the third-party finance company. The company's maximum exposure for credit collection for the fiscal years ended October 31, 2023 and 2022 was $5.2 million and $8.6 million, respectively. Purchase Commitments As of October 31, 2023, the company had $28.7 million of noncancelable purchase commitments with certain of the company's suppliers for commodities as part of the normal course of business. Additionally, associated with the Tornado asset acquisition described in Note 2, Business Combinations and Asset Acquisitions , the company has entered into a minimum purchase arrangement for a total of approximately $35 million of inventory through fiscal 2025. As of October 31, 2023, the company did not have material noncancelable purchase commitments related to capital expenditures for renovation and expansion efforts at the company's facilities and other property, plant and equipment. Litigation From time to time, the company is party to litigation in the ordinary course of business. Such matters are generally subject to uncertainties and to outcomes that are not predictable with assurance and that may not be known for extended periods of time. Litigation occasionally involves claims for punitive, as well as compensatory, damages arising out of the use of the company's products. Although the company is self-insured to some extent, the company maintains insurance against certain product liability losses. The company is also subject to litigation and administrative and judicial proceedings with respect to claims involving asbestos and the discharge of hazardous substances into the environment. Some of these claims assert damages and liability for personal injury, remedial investigations or clean-up and other costs and damages. The company is also occasionally involved in commercial disputes, employment disputes, and patent litigation cases in which it is asserting or defending against patent infringement claims. To prevent possible infringement of the company's patents by others, the company periodically reviews competitors' products. To avoid potential liability with respect to others' patents, the company reviews certain patents issued by the U.S. Patent and Trademark Office and foreign patent offices. The company believes these activities help minimize its risk of being a defendant in patent infringement litigation. The company records a liability in its Consolidated Financial Statements for costs related to claims, including future legal costs, settlements, and judgments, where the company has assessed that a loss is probable and an amount can be reasonably estimated. If the reasonable estimate of a probable loss is a range, the company records the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount. The company discloses a contingent liability even if the liability is not probable or the amount is not estimable, or both, if there is a reasonable possibility that a material loss may have been incurred. In the opinion of management, the amount of liability, if any, with respect to these matters, individually or in the aggregate, will not materially affect the company's consolidated results of operations, financial position, or cash flows. In situations where the company receives, or expects to receive, a favorable ruling related to a litigation settlement, the company follows the accounting standards codification guidance for gain contingencies. The company does not allow for the recognition of a gain contingency within its Consolidated Financial Statements prior to the settlement of the underlying events or contingencies associated with the gain contingency. As a result, the consideration related to a gain contingency is recorded in the Consolidated Financial Statements during the period in which all underlying events or contingencies are resolved and the gain is realized. Litigation Settlement On November 19, 2020, Exmark Manufacturing Company Incorporated ("Exmark"), a wholly-owned subsidiary of the company, and Briggs & Stratton Corporation (“BGG”) entered into a settlement agreement (“Settlement Agreement”) relating to the decade-long patent infringement litigation that Exmark originally filed in May 2010 against Briggs & Stratton Power Products Group, LLC (“BSPPG”), a former wholly-owned subsidiary of BGG (Case No. 8:10CV187, U.S. District Court for the District of Nebraska) (the “Infringement Action”). In the Infringement Action, Exmark alleged that certain mower decks manufactured by BSPPG infringed an Exmark mower deck patent. Despite favorable judgments in the Infringement Action in favor of Exmark, including with regard to awarded damages, actions by BGG during the second half of calendar year 2020 put in jeopardy the certainty and timing of the eventual receipt of the damages awarded to Exmark in the Infringement Action, including (i) the filing by BGG and certain of its subsidiaries for bankruptcy relief under chapter 11 of title 11 of the United States Bankruptcy Code (“BGG Bankruptcy”); (ii) the sale of substantially all the assets (but not certain liabilities, including the Infringement Action) of BGG and its subsidiaries to a third-party pursuant to Section 363 of the United States Bankruptcy Code; and (iii) a petition filed by BGG for a panel rehearing of the United States Court of Appeals for the Federal Circuit's decision in the Infringement Action (“Rehearing Petition”). As a result, on November 19, 2020, Exmark entered into the Settlement Agreement with BGG which provided, among other things, that (i) upon approval by the bankruptcy court, and such approval becoming final and nonappealable, BGG agreed to pay Exmark $33.65 million (“Settlement Amount”), (ii) BGG agreed to immediately withdraw the Rehearing Petition and otherwise not pursue additional appellate review regarding the Infringement Action, and (iii) after receipt of the Settlement Amount, Exmark agreed to release a supersedeas appeal bond that had been obtained by BGG to support payment of the damages awarded to Exmark in the Infringement Action. On November 20, 2020, BGG filed a motion to withdraw the Rehearing Petition and on December 16, 2020, the bankruptcy court approved the Settlement Agreement. During January 2021, the first quarter of fiscal 2021, the Settlement Amount was received by Exmark in connection with the settlement of the Infringement Action and at such time, the underlying events and contingencies associated with the gain contingency related to the Infringement Action were satisfied. As such, the company recognized in selling, general and administrative expense within the Consolidated Statements of Earnings during the first quarter of fiscal 2021 (i) the gain associated with the Infringement Action and (ii) a corresponding expense related to the contingent fee arrangement with the company's external legal counsel customary in patent infringement cases equal to approximately 50 percent of the Settlement Amount. |
Leases
Leases | 12 Months Ended |
Oct. 31, 2023 | |
Leases [Abstract] | |
Leases | 12 Leases The company enters into contracts that are, or contain, operating lease agreements for certain property, plant, or equipment assets utilized in the normal course of business, such as buildings for manufacturing facilities, office space, distribution centers, and warehouse facilities; land for product testing sites; machinery and equipment for research and development activities, manufacturing and assembly processes, and administrative tasks; and vehicles for sales, service, marketing, and distribution activities. Contracts that explicitly or implicitly relate to property, plant, and equipment are assessed at inception to determine if the contract is, or contains, a lease. Such contracts for operating lease agreements convey the company's right to direct the use of, and obtain substantially all of the economic benefits from, an identified asset for a defined period of time in exchange for consideration. The lease term begins and is determined upon lease commencement, which is the point in time when the company takes possession of the identified asset, and includes all non-cancelable periods. The lease term may also include options to extend or terminate the lease when it is reasonably certain that such options will be exercised after considering all relevant economic and financial factors. Options to extend or terminate a lease are generally exercisable at the company's sole discretion, subject to any required minimum notification period and/or other contractual terms as defined within the respective lease agreement, as applicable. The company's renewal options generally range from extended terms of two Lease payments are determined at lease commencement and represent fixed lease payments as defined within the respective lease agreement or, in the case of certain lease agreements, variable lease payments that are measured as of the lease commencement date based on the prevailing index or market rate. Future adjustments to variable lease payments are defined and scheduled within the respective lease agreement and are determined based upon the prevailing market or index rate at the time of the adjustment relative to the market or index rate determined at lease commencement. Certain other lease agreements contain variable lease payments that are determined based upon actual utilization of the identified asset. Such future adjustments to variable lease payments and variable lease payments based upon actual utilization of the identified asset are not included within the determination of lease payments at commencement but rather, are recorded as variable lease expense in the period in which the variable lease cost is incurred. Additionally, the company's operating leases generally do not include material residual value guarantees. The company has operating leases with both lease components and non-lease components. For all underlying asset classes, the company accounts for lease components separately from non-lease components based on the relative market value of each component. Non-lease components typically consist of common area maintenance, utilities, and/or other repairs and maintenance services. The costs related to non-lease components are not included within the determination of lease payments at commencement. Right-of-use assets represent the company's right to use an underlying asset throughout the lease term and lease liabilities represent the company's obligation to make lease payments arising from the lease agreement. The company accounts for operating lease liabilities at lease commencement and on an ongoing basis as the present value of the minimum remaining lease payments under the respective lease term. Minimum remaining lease payments are discounted to present value based on the rate implicit in the operating lease agreement or the estimated incremental borrowing rate at lease commencement if the rate implicit in the lease is not readily determinable. Generally, the estimated incremental borrowing rate is used as the rate implicit in the lease is not readily determinable. The estimated incremental borrowing rate represents the rate of interest that the company would have to pay to borrow on a general and unsecured collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. The company determines the estimated incremental borrowing rate at lease commencement based on available information at such time, including lease term, lease currency, and geographical market. Right-of-use assets are measured as the amount of the corresponding operating lease liability for the respective operating lease agreement, adjusted for prepaid or accrued lease payments, the remaining balance of any lease incentives received, unamortized initial direct costs, and impairment of the operating lease right-of-use asset, as applicable. The following table presents the lease expense incurred on the company’s operating, short-term, and variable leases (dollars in millions): Fiscal Year Ended October 31 2023 2022 2021 Operating lease expense $ 24.0 $ 22.6 $ 20.4 Short-term lease expense 4.5 4.5 2.9 Variable lease expense — — 0.1 Total lease expense $ 28.5 $ 27.1 $ 23.4 The following table presents supplemental cash flow information related to the company's operating leases (dollars in millions): Fiscal Year Ended October 31 2023 2022 2021 Right-of-use assets obtained in exchange for lease obligations $ 67.6 $ 27.0 $ 5.4 Operating cash flows for amounts included in the measurement of lease liabilities $ 20.9 $ 19.2 $ 18.9 The following table presents other lease information related to the company's operating leases as of October 31, 2023 and October 31, 2022: October 31, 2023 October 31, 2022 Weighted-average remaining lease term of operating leases in years 9.3 6.0 Weighted-average discount rate of operating leases 4.83 % 3.53 % The following table reconciles the total undiscounted future cash flows based on the anticipated future minimum operating lease payments by fiscal year for the company's operating leases to the present value of operating lease liabilities recorded within the Consolidated Balance Sheets as of October 31, 2023 (dollars in millions): October 31, 2023 2024 $ 25.1 2025 23.3 2026 17.4 2027 13.9 2028 11.8 Thereafter 69.6 Total future minimum operating lease payments 161.1 Less: imputed interest 29.5 Present value of operating lease liabilities $ 131.6 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Oct. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 13 Derivative Instruments and Hedging Activities Risk Management Objective of Using Derivatives The company is exposed to foreign currency exchange rate risk arising from transactions in the normal course of business, such as sales to third-party customers, sales and loans to wholly-owned foreign subsidiaries, costs associated with foreign plant operations, and purchases from suppliers. The company’s primary currency exchange rate exposures are with the Euro, the Australian dollar, the Canadian dollar, the British pound, the Mexican peso, the Japanese yen, the Chinese Renminbi, and the Romanian New Leu against the U.S. dollar, as well as the Romanian New Leu against the Euro. To reduce its exposure to foreign currency exchange rate risk, the company actively manages the exposure of its foreign currency exchange rate risk by entering into various derivative instruments to hedge against such risk, authorized under a company policy that places controls on these hedging activities, with counterparties that are highly rated financial institutions. The company’s policy does not allow the use of derivative instruments for trading or speculative purposes. The company has also made an accounting policy election to use the portfolio exception with respect to measuring counterparty credit risk for derivative instruments and to measure the fair value of a portfolio of financial assets and financial liabilities on the basis of the net open risk position with each counterparty. The company’s hedging activities primarily involve the use of forward currency contracts to hedge most foreign currency transactions, including projected sales and purchases denominated in foreign currencies. The company uses derivative instruments only in an attempt to limit underlying exposure from foreign currency exchange rate fluctuations and to minimize earnings and cash flow volatility associated with foreign currency exchange rate fluctuations. Decisions on whether to use such derivative instruments are primarily based on the amount of exposure to the currency involved and an assessment of the near-term market value for each currency. The company recognizes all derivative instruments at fair value on the Consolidated Balance Sheets as either assets or liabilities. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as a cash flow hedging instrument. Cash Flow Hedging Instruments The company formally documents relationships between cash flow hedging instruments and the related hedged transactions, as well as its risk-management objective and strategy for undertaking cash flow hedging instruments. This process includes linking all cash flow hedging instruments to the projected transactions, such as sales to third-parties and costs associated with foreign plant operations, including purchases from suppliers. At the cash flow hedge’s inception and on an ongoing basis, the company formally assesses whether the cash flow hedging instruments have been highly effective in offsetting changes in the cash flows of the hedged transactions and whether those cash flow hedging instruments may be expected to remain highly effective in future periods. Changes in the fair values of the spot rate component of outstanding, highly effective cash flow hedging instruments included in the assessment of hedge effectiveness are recorded in other comprehensive income within AOCL on the Consolidated Balance Sheets and are subsequently reclassified to net earnings within the Consolidated Statements of Earnings during the same period in which the cash flows of the underlying hedged transaction affect net earnings. Changes in the fair values of hedge components excluded from the assessment of effectiveness are recognized immediately in net earnings under the mark-to-market approach. The classification of gains or losses recognized on cash flow hedging instruments and excluded components within the Consolidated Statements of Earnings is the same as that of the underlying exposure. Results of cash flow hedging instruments, and the related excluded components, of sales and costs associated with foreign plant operations, including purchases from suppliers, are recorded in net sales and cost of sales, respectively. The maximum amount of time the company hedges its exposure to the variability in future cash flows for projected trade sales and purchases is two years. When it is determined that a derivative instrument is not, or has ceased to be, highly effective as a cash flow hedge, the company discontinues cash flow hedge accounting prospectively. The gain or loss on the dedesignated derivative instrument remains in AOCL and is reclassified to net earnings within the same Consolidated Statements of Earnings line item as the underlying exposure when the projected transaction affects net earnings. When the company discontinues cash flow hedge accounting because it is no longer probable, but it is still reasonably possible that the projected transaction will occur by the end of the originally expected period or within an additional two-month period of time thereafter, the gain or loss on the derivative instrument remains in AOCL and is reclassified to net earnings within the same Consolidated Statements of Earnings line item as the underlying exposure when the projected transaction affects net earnings. However, if it is probable that a projected transaction will not occur by the end of the originally specified time period or within an additional two-month period of time thereafter, the gains and losses that were in AOCL are immediately recognized in net earnings within other income, net in the Consolidated Statements of Earnings. In all situations in which cash flow hedge accounting is discontinued and the derivative instrument remains outstanding, the company carries the derivative instrument at its fair value on the Consolidated Balance Sheets, recognizing future changes in the fair value within other income, net in the Consolidated Statements of Earnings. As of October 31, 2023, the notional amount outstanding of forward currency contracts designated as cash flow hedging instruments was $307.5 million. Derivatives Not Designated as Cash Flow Hedging Instruments The company also enters into foreign currency contracts that include forward currency contracts to mitigate the remeasurement of specific assets and liabilities on the Consolidated Balance Sheets. These contracts are not designated as cash flow hedging instruments. Accordingly, changes in the fair value of hedges of recorded balance sheet positions, such as cash, receivables, payables, intercompany notes, and other various contractual claims to pay or receive foreign currencies other than the functional currency, are recognized immediately in other income, net, on the Consolidated Statements of Earnings together with the transaction gain or loss from the hedged balance sheet position. The following table presents the fair value and location of the company’s derivative instruments on the Consolidated Balance Sheets (dollars in millions): Fair Value as of October 31 2023 2022 Derivative assets: Derivatives designated as cash flow hedging instruments: Prepaid expenses and other current assets Forward currency contracts $ 13.7 $ 27.7 Derivatives not designated as cash flow hedging instruments: Prepaid expenses and other current assets Forward currency contracts 3.1 5.5 Total derivative assets $ 16.8 33.2 Derivative liabilities: Derivatives designated as cash flow hedging instruments: Accrued liabilities Forward currency contracts $ — $ — Derivatives not designated as cash flow hedging instruments: Accrued liabilities Forward currency contracts — — Total derivative liabilities $ — $ — The company entered into an International Swap Dealers Association ("ISDA") Master Agreement with each counterparty that permits the net settlement of amounts owed under their respective contracts. The ISDA Master Agreement is an industry standardized contract that governs all derivative contracts entered into between the company and the respective counterparty. Under these master netting agreements, net settlement generally permits the company or the counterparty to determine the net amount payable or receivable for contracts due on the same date or in the same currency for similar types of derivative transactions. The company records the fair value of its derivative instruments at the net amount on its Consolidated Balance Sheets. The following table presents the effects of the master netting arrangements on the fair value of the company’s derivative instruments that are recorded on the Consolidated Balance Sheets (dollars in millions): Fair Value as of October 31 2023 2022 Derivative assets: Forward currency contracts: Gross amount of derivative assets $ 16.8 $ 33.2 Derivative liabilities offsetting derivative assets — — Net amount of derivative assets $ 16.8 $ 33.2 Derivative liabilities: Forward currency contracts: Gross amount of derivative liabilities $ — $ — Derivative assets offsetting derivative liabilities — — Net amount of derivative liabilities $ — $ — The following table presents the impact and location of the amounts reclassified from AOCL into net earnings on the Consolidated Statements of Earnings and the impact of derivative instruments on the Consolidated Statements of Comprehensive Income for the company's derivatives designated as cash flow hedging instruments (dollars in millions): Gain Reclassified from AOCL into Income (Loss) Gain Recognized in OCI on Derivatives Fiscal Years Ended October 31 2023 2022 2023 2022 Derivatives designated as cash flow hedging instruments: Forward currency contracts: Net sales $ 10.8 $ 4.5 $ (12.9) $ 21.2 Cost of sales 4.5 0.6 0.1 3.2 Total derivatives designated as cash flow hedging instruments $ 15.3 $ 5.1 $ (12.8) $ 24.4 During fiscal 2023 and 2022, the company recognized immaterial losses and gains, respectively, within other income, net on the Consolidated Statement of Earnings due to the discontinuance of cash flow hedge accounting on certain forward currency contracts designated as cash flow hedging instruments. As of October 31, 2023, the company expects to reclassify approximately $8.6 million of gains from AOCL to earnings during the next twelve months. The following tables present the impact and location of derivative instruments on the Consolidated Statements of Earnings for the company’s derivatives designated as cash flow hedging instruments and the related components excluded from hedge effectiveness testing (dollars in millions): Gain Recognized in Earnings on Cash Flow Hedging Instruments Fiscal Year Ended October 31, 2023 Net Sales Cost of Sales Total Consolidated Statements of Earnings income (expense) amounts in which the effects of cash flow hedging instruments are recorded $ 4,553.2 $ (2,975.6) Gain on derivatives designated as cash flow hedging instruments: Forward currency contracts: Amount of gain reclassified from AOCL into earnings 10.8 4.5 Gain on components excluded from effectiveness testing recognized in earnings based on changes in fair value $ 2.2 $ 2.6 (Loss) Gain Recognized in Earnings on Cash Flow Hedging Instruments Fiscal Year Ended October 31, 2022 Net Sales Cost of Sales Total Consolidated Statements of Earnings income (expense) amounts in which the effects of cash flow hedging instruments are recorded $ 4,514.7 $ (3,010.1) Gain (loss) on derivatives designated as cash flow hedging instruments: Forward currency contracts: Amount of gain reclassified from AOCL into earnings 4.5 0.6 (Loss) gain on components excluded from effectiveness testing recognized in earnings based on changes in fair value $ (1.1) $ 1.7 The following table presents the impact and location of derivative instruments on the Consolidated Statements of Earnings for the company’s derivatives not designated as cash flow hedging instruments (dollars in millions): Fiscal Years Ended October 31 2023 2022 (Loss) gain on derivative instruments not designated as cash flow hedging instruments: Forward currency contracts: Other (expense) income, net $ (6.3) $ 4.2 Total (loss) gain on derivatives not designated as cash flow hedging instruments $ (6.3) $ 4.2 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Oct. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 14 Fair Value Measurements The company categorizes its assets and liabilities into one of three levels based on the assumptions (inputs) used in valuing the asset or liability. Estimates of fair value for financial assets and financial liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value, and requires certain disclosures. The framework discusses valuation techniques such as the market approach (comparable market prices), the income approach (present value of future income or cash flows), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. The three levels are defined as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs reflecting management's assumptions about the inputs used in pricing the asset or liability. Recurring Fair Value Measurements The company's derivative instruments consist of forward currency contracts that are measured at fair value on a recurring basis. The fair value of such forward currency contracts is determined based on observable market transactions of forward currency prices and spot currency rates as of the reporting date. The following tables present, by level within the fair value hierarchy, the company's financial assets and liabilities that are measured at fair value on a recurring basis as of October 31, 2023 and 2022, according to the valuation technique utilized to determine their fair values (dollars in millions): Fair Value Measurements Using Inputs Considered as: October 31, 2023 Fair Value Level 1 Level 2 Level 3 Assets: Forward currency contracts $ 16.8 $ — $ 16.8 $ — Total assets $ 16.8 $ — $ 16.8 $ — Liabilities: Forward currency contracts $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — Fair Value Measurements Using Inputs Considered as: October 31, 2022 Fair Value Level 1 Level 2 Level 3 Assets: Forward currency contracts $ 33.2 $ — $ 33.2 $ — Total assets $ 33.2 $ — $ 33.2 $ — Liabilities: Forward currency contracts $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — Nonrecurring Fair Value Measurements The company measures certain assets and liabilities at fair value on a non-recurring basis. Assets and liabilities that are measured at fair value on a nonrecurring basis include long-lived assets, goodwill, and indefinite-lived intangible assets, which would generally be recorded at fair value as a result of an impairment charge. For additional information regarding impairment related fair value measurements, refer to Note 5, Goodwill and Other Intangible Assets . Assets acquired and liabilities assumed as part of a business combination are also measured at fair value on a non-recurring basis during the measurement period allowed by the accounting standards codification guidance for business combinations when applicable. Alternatively, under a cost accumulation model, the company measures the fair values of net assets acquired as part of an asset acquisition before allocating the cost of the asset acquisition to the net assets acquired on the basis of their relative fair values. For additional information on the company's business combinations and asset acquisitions and the related non-recurring fair value measurement of the assets acquired and liabilities assumed, refer to Note 2, Business Combinations and Asset Acquisitions. Other Fair Value Disclosures The carrying values of the company's short-term financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and short-term debt, including current maturities of long-term debt, when applicable, approximate their fair values due to their short-term nature. As of October 31, 2023 and 2022, the company's long-term debt included $524.2 million and $524.1 million, respectively, of gross fixed-rate debt that is not subject to variable interest rate fluctuations. The gross fair value of such long-term debt is determined using Level 2 inputs by discounting the projected cash flows based on quoted market rates at which similar amounts of debt could currently be borrowed. As of October 31, 2023, the estimated gross fair value of long-term debt with fixed interest rates was $478.2 million compared to its gross carrying amount of $524.2 million. As of October 31, 2022, the estimated gross fair value of long-term debt with fixed interest rates was $489.8 million compared to its gross carrying amount of $524.1 million. For additional information regarding long-term debt with fixed interest rates, refer to Note 6, Indebtedness . |
Employee Retirement Plans
Employee Retirement Plans | 12 Months Ended |
Oct. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Retirement Plans | 15 Employee Retirement Plans Defined Contribution Plan The company maintains The Toro Company Retirement Plan for eligible employees. The company's expenses under this plan, which include costs related to matching contributions and discretionary retirement fund contributions, as applicable, were $38.1 million, $35.3 million, and $28.5 million for the fiscal years ended October 31, 2023, 2022, and 2021, respectively. Defined Benefit Plans The company has a defined benefit pension plan covering certain employees in the United Kingdom ("defined benefit retirement plan"). The projected and accumulated benefit obligation of the defined benefit retirement plan was $18.3 million and $18.9 million as of October 31, 2023 and 2022, respectively. The fair value of the defined benefit retirement plan assets as of October 31, 2023 and 2022 was $17.6 million and $18.4 million, respectively. The net funded status of the defined benefit retirement plan as of October 31, 2023 and 2022 was underfunded at $0.7 million and $0.6 million, respectively. Service costs of the defined benefit retirement plans are presented in selling, general and administrative expense within the Consolidated Statements of Earnings. Non-service cost components of net periodic benefit cost (income), including realized gains or losses as a result of changes in actuarial valuation assumptions, are presented in other income, net within the Consolidated Statements of Earnings. The company recognized expense of $0.2 million for the fiscal year ended October 31, 2023, and recognized income of $0.2 million, and $0.1 million for the fiscal years ended October 31, 2022 and 2021, respectively. The company has omitted the remaining disclosures for the defined benefit retirement plan as the company deems this defined benefit retirement plan to be immaterial to its Consolidated Financial Statements. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Oct. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16 Subsequent Events The company has evaluated all subsequent events and concluded that no additional subsequent events have occurred that would require recognition in the Consolidated Financial Statements or disclosure in the Notes to Consolidated Financial Statements. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net earnings | $ 329.7 | $ 443.3 | $ 409.9 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Oct. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Related Data (Policies) | 12 Months Ended |
Oct. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted ("GAAP") in the United States ("U.S.") and include the accounts of the company and its wholly-owned subsidiaries. In the opinion of management, the Consolidated Financial Statements include all adjustments, consisting primarily of recurring accruals, considered necessary for the fair presentation of the company's consolidated financial position, results of operations, and cash flows for the periods presented. The company's businesses are organized, managed, and internally grouped into segments based on similarities in products and services. The company classifies its operations into two reportable business segments: Professional and Residential. The company's remaining activities are presented as "Other" due to their insignificance. For additional information regarding the company's reportable business segments refer to Note 3, Segment Data . The company uses the equity method to account for equity investments in unconsolidated entities over which it has the ability to exercise significant influence over operating and financial policies. The company's share of the net earnings or losses of these equity method investments are recorded within other income, net on the Consolidated Statements of Earnings. Equity investments in unconsolidated entities that the company does not control and for which it does not have the ability to exercise significant influence over operating and financial policies are recorded at cost, less impairment, as applicable, within the Consolidated Balance Sheets. All intercompany accounts and transactions have been eliminated from the Consolidated Financial Statements. |
Accounting Estimates | Accounting Estimates In preparing the Consolidated Financial Statements in conformity with U.S. GAAP, management must make decisions that impact the reported amounts of assets, liabilities, revenues, expenses, and the related disclosures, including disclosures of contingent assets and liabilities. Such decisions include the selection of the appropriate accounting principles to be applied and the assumptions on which to base accounting estimates. Estimates are used in determining, among other items, sales promotion and incentive accruals; incentive compensation accruals; income tax accruals; inventory valuation; warranty accruals; allowance for expected credit losses; pension accruals; self-insurance accruals; legal accruals; right-of-use assets and lease liabilities; useful lives for tangible and finite-lived intangible assets; future cash flows associated with impairment testing for goodwill, indefinite-lived intangible assets, and other long-lived assets; and valuations of the assets acquired and liabilities assumed in a business combination or asset acquisition, when applicable. These estimates and assumptions are based on management's best estimates and judgments at the time they are made and are generally derived from management's understanding and analysis of the relevant and current circumstances, historical experience, and actuarial and other independent external third-party specialist valuations, when applicable. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors that management believes to be reasonable under the circumstances, including the current economic environment and other relevant factors, as applicable. Management adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with certainty, actual amounts could differ significantly from those estimated at the time the Consolidated Financial Statements are prepared. Changes in those estimates will be reflected in the Consolidated Financial Statements in future periods. |
Business Combinations and Asset Acquisitions | Business Combinations and Asset Acquisitions When applicable, the company accounts for the acquisition of a business in accordance with the accounting standards codification ("ASC") guidance for business combinations, whereby the total purchase consideration transferred is allocated to the assets acquired and liabilities assumed, including amounts attributable to non-controlling interests, when applicable, based on their respective estimated fair values as of the date of acquisition. Goodwill represents the excess of purchase consideration transferred over the estimated fair value of the identifiable net assets acquired in a business combination. Assigning estimated fair values to the net assets acquired requires the use of significant estimates, judgments, inputs, and assumptions regarding the fair value of the assets acquired and liabilities assumed. Estimated fair values of assets acquired and liabilities assumed are generally based on available historical information, independent valuations or appraisals, future expectations, and assumptions determined to be reasonable but are inherently uncertain with respect to future events, including economic conditions, competition, the useful life of the acquired assets, and other factors. The company may refine the estimated fair values of assets acquired and liabilities assumed, if necessary, over a period not to exceed one year from the date of acquisition by taking into consideration new information about facts and circumstances that existed as of the acquisition date that, if known at the date of acquisition, would have affected the estimated fair values ascribed to the assets acquired and liabilities assumed. The judgments made in determining the estimated fair value assigned to assets acquired and liabilities assumed, as well as the estimated useful life and depreciation or amortization method of each asset, can materially impact the net earnings of the periods subsequent to the acquisition through depreciation and amortization, and in certain instances through impairment charges, if the asset becomes impaired in the future. During the measurement period, any purchase price allocation changes that impact the carrying value of goodwill would also affect the amount of goodwill impairment taken, if applicable. If necessary, purchase price allocation revisions that occur outside of the measurement period are recorded within cost of sales or selling, general and administrative expense within the Consolidated Statements of Earnings depending on the nature of the adjustment. When an acquisition does not meet the definition of a business combination because either: (i) substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset, or group of similar identified assets, or (ii) the acquired entity does not have an input and a substantive process that together significantly contribute to the ability to create outputs, the company accounts for the acquisition as an asset acquisition. In an asset acquisition, goodwill is not recognized, but rather, any excess purchase consideration over the fair value of the net assets acquired is allocated on a relative fair value basis to the identifiable net assets as of the acquisition date and any direct acquisition-related transaction costs are capitalized as part of the purchase consideration. Refer to Note 2, Business Combinations and Asset Acquisitions , for additional information regarding the company's accounting for recent business combinations and asset acquisitions. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Receivables, Net | Receivables, Net Receivables are recorded at original carrying amount less an estimated allowance for expected credit losses. The allowance for expected credit losses is based on the company's assessment of losses that will result from its customers inability or unwillingness to pay amounts owed to the company. The allowance for expected credit losses is estimated using a combination of factors, including the age of receivable balances and historical credit loss experience, supplemented by the company's knowledge of customer-specific information, current market conditions, and reasonable and supportable projections of future events and economic conditions, when applicable. Receivables are written-off against the allowance for expected credit losses when all collection efforts have been exhausted. The company's financial exposure related to the collection of accounts receivable is reduced due to its inventory financing arrangements, as further discussed in Note 11, Commitments and Contingencies . For receivables not serviced through inventory financing agreements, the company provides financing in the form of open account terms in the normal course of business and performs on-going credit evaluations of customers. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments, which potentially subject the company to concentrations of credit risk, consist principally of accounts receivable and derivative instruments. Accounts receivable balances are generally concentrated in the Professional and Residential business segments. The credit risk associated with these business segments is limited because of the large number of customers in the company's customer base and their geographic dispersion. The credit risk associated with the company's derivative instruments is limited as the company enters into derivative instruments with multiple counterparties that are highly rated financial institutions. |
Inventories, Net | Inventories, Net |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net three three two |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets Goodwill is initially recognized as a result of the excess of purchase consideration transferred over the estimated fair value of the net assets acquired in a business combination and indefinite-lived intangible assets are initially recognized at their estimated fair values as a result of a business combination or asset acquisition. Goodwill is assigned to a reporting unit based upon the expected benefit of the synergies of the acquisition. Goodwill and certain trade names, which are considered to have indefinite lives, are not amortized; however, the company reviews them for impairment annually during the fourth quarter of each fiscal year or more frequently if changes in circumstances or the occurrence of events indicate that impairment may have occurred prior to the annual assessment. The company tests goodwill for impairment at the reporting unit level and tests indefinite-lived intangible assets for impairment at the individual indefinite-lived intangible asset or asset group level, as appropriate. At the end of the third quarter of fiscal 2023, the company recorded an impairment charge of $18.0 million related to the indefinite-lived Spartan trade name intangible asset reported under the Professional segment. Further, during the same period, the company recorded an impairment charge of $133.3 million related to goodwill of the Intimidator reporting unit also reported under the Professional segment, Refer to Note 5, Goodwill and Other Intangible Assets for further information. During the fourth quarter of fiscal 2023, the company performed its annual goodwill impairment test. In performing the annual goodwill impairment test, the company first reviewed its reporting units and determined that it has twelve reporting units, which are the same as its twelve operating segments as defined in Note 3, Segment Data |
Other Long-Lived Assets | Other Long-Lived Assets Other long-lived assets primarily consist of property, plant and equipment; right-of-use assets associated with operating lease agreements; capitalized implementation costs for hosted cloud-computing arrangements; finite-lived intangible assets; and other assets, as applicable. The company's finite-lived intangible assets are identifiable assets that were acquired as a result of business combinations or asset acquisitions and primarily consist of customer relationships and lists, developed technology, patents, trade names, non-compete agreements, and order backlog and are generally amortized on a straight-line basis over their expected useful lives, which typically range from several months to 20 years depending on the nature of the finite-lived intangible asset. The company reviews other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset, or asset group, may not be recoverable. Asset groups have identifiable cash flows and are largely independent of other asset groups. An impairment loss is recognized when estimated undiscounted future cash flows from the operation or disposition of the asset group are less than the carrying amount of the asset group. Measurement of an impairment loss is based on the excess of the carrying amount of the asset group over its fair value. Fair value is generally measured using a discounted cash flow model or independent appraisals, as appropriate. The company did not record an impairment loss for fiscal 2023, 2022, and 2021 as the company's long-lived assets were determined to not be at risk for impairment as no events or changes in circumstances were identified that would indicate that the carrying amount of an asset, or asset group, may not be recoverable. For other long-lived assets to be abandoned, the company tests for potential impairment. If the company commits to a plan to abandon or dispose of an other long-lived asset, or asset group, before the end of its previously estimated useful life, depreciation or amortization expense is recognized over the revised estimated useful life. |
Leases | Leases The company enters into contracts that are, or contain, operating lease agreements that convey the company's right to direct the use of, and obtain substantially all of the economic benefits from, an identified asset for a defined period of time in exchange for consideration. The lease term begins and is determined upon lease commencement, which is the point in time when the company takes possession of the identified asset, and includes all non-cancelable periods. Lease liabilities represent the company's obligation to make lease payments arising from the lease agreement. The company accounts for operating lease liabilities at lease commencement and on an ongoing basis as the present value of the minimum remaining lease payments under the respective lease term. Lease payments are determined at lease commencement and represent fixed lease payments as defined within the respective lease agreement or, in the case of certain lease agreements, variable lease payments that are measured as of the lease commencement date based on the prevailing index or market rate. Future adjustments to variable lease payments are defined and scheduled within the respective lease agreement and are determined based upon the prevailing market or index rate at the time of the adjustment relative to the market or index rate determined at lease commencement. Certain other lease agreements contain variable lease payments that are determined based upon actual utilization of the identified asset. Such future adjustments to variable lease payments and variable lease payments based upon actual utilization of the identified asset are not included within the determination of lease payments at commencement but rather, are recorded as variable lease expense in the period in which the variable lease cost is incurred. The company has operating leases with both lease components and non-lease components. For purposes of determining lease payments, the company accounts for lease components separately from non-lease components based on the relative market value of each component. Non-lease components typically consist of common area maintenance, utilities, and/or other repairs and maintenance services. The costs related to non-lease components are not included within the determination of lease payments at commencement. Minimum remaining lease payments are discounted to present value based on the rate implicit in the operating lease agreement or the estimated incremental borrowing rate at lease commencement if the rate implicit in the lease is not readily determinable. Minimum remaining lease payments are generally discounted to present value based the estimated incremental borrowing rate at lease commencement as the rate implicit in the lease is generally not readily determinable. Right-of-use assets represent the company's right to use an underlying asset throughout the lease term and are measured as the amount of the corresponding operating lease liability for the respective operating lease agreement, adjusted for prepaid or accrued lease payments, the remaining balance of any lease incentives received, unamortized initial direct costs, and impairment of the operating lease right-of-use asset, as applicable. Lease expense for the company's operating leases is recognized on a straight-line basis over the lease term and is recorded within either cost of sales or selling, general and administrative expense in the Consolidated Statements of Earnings depending on the nature and use of the identified asset underlying the respective operating lease arrangement. The company does not recognize right-of-use assets and lease liabilities, but does recognize lease expense on a straight-line basis, for short-term operating leases which have a lease term of 12 months or less and do not include an option to purchase the underlying asset. The company enters into contracts that are, or contain, operating lease agreements for certain property, plant, or equipment assets utilized in the normal course of business, such as buildings for manufacturing facilities, office space, distribution centers, and warehouse facilities; land for product testing sites; machinery and equipment for research and development activities, manufacturing and assembly processes, and administrative tasks; and vehicles for sales, service, marketing, and distribution activities. Contracts that explicitly or implicitly relate to property, plant, and equipment are assessed at inception to determine if the contract is, or contains, a lease. Such contracts for operating lease agreements convey the company's right to direct the use of, and obtain substantially all of the economic benefits from, an identified asset for a defined period of time in exchange for consideration. The lease term begins and is determined upon lease commencement, which is the point in time when the company takes possession of the identified asset, and includes all non-cancelable periods. The lease term may also include options to extend or terminate the lease when it is reasonably certain that such options will be exercised after considering all relevant economic and financial factors. Options to extend or terminate a lease are generally exercisable at the company's sole discretion, subject to any required minimum notification period and/or other contractual terms as defined within the respective lease agreement, as applicable. The company's renewal options generally range from extended terms of two Lease payments are determined at lease commencement and represent fixed lease payments as defined within the respective lease agreement or, in the case of certain lease agreements, variable lease payments that are measured as of the lease commencement date based on the prevailing index or market rate. Future adjustments to variable lease payments are defined and scheduled within the respective lease agreement and are determined based upon the prevailing market or index rate at the time of the adjustment relative to the market or index rate determined at lease commencement. Certain other lease agreements contain variable lease payments that are determined based upon actual utilization of the identified asset. Such future adjustments to variable lease payments and variable lease payments based upon actual utilization of the identified asset are not included within the determination of lease payments at commencement but rather, are recorded as variable lease expense in the period in which the variable lease cost is incurred. Additionally, the company's operating leases generally do not include material residual value guarantees. The company has operating leases with both lease components and non-lease components. For all underlying asset classes, the company accounts for lease components separately from non-lease components based on the relative market value of each component. Non-lease components typically consist of common area maintenance, utilities, and/or other repairs and maintenance services. The costs related to non-lease components are not included within the determination of lease payments at commencement. Right-of-use assets represent the company's right to use an underlying asset throughout the lease term and lease liabilities represent the company's obligation to make lease payments arising from the lease agreement. The company accounts for operating lease liabilities at lease commencement and on an ongoing basis as the present value of the minimum remaining lease payments under the respective lease term. Minimum remaining lease payments are discounted to present value based on the rate implicit in the operating lease agreement or the estimated incremental borrowing rate at lease commencement if the rate implicit in the lease is not readily determinable. Generally, the estimated incremental borrowing rate is used as the rate implicit in the lease is not readily determinable. The estimated incremental borrowing rate represents the rate of interest that the company would have to pay to borrow on a general and unsecured collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. The company determines the estimated incremental borrowing rate at lease commencement based on available information at such time, including lease term, lease currency, and geographical market. Right-of-use assets are measured as the amount of the corresponding operating lease liability for the respective operating lease agreement, adjusted for prepaid or accrued lease payments, the remaining balance of any lease incentives received, unamortized initial direct costs, and impairment of the operating lease right-of-use asset, as applicable. |
Accounts Payable | Accounts Payable |
Insurance | Insurance The company is self-insured for certain losses relating to employee medical, dental, workers' compensation, and certain product liability claims. Specific stop loss coverages are provided for catastrophic claims in order to limit exposure to significant claims. Losses and claims are charged to net earnings when it is probable a loss has been incurred and the amount can be reasonably estimated. Self-insured liabilities are based on a number of factors, including historical claims experience, an estimate of claims incurred but not reported, demographic and severity factors, and utilizing valuations provided by independent third-party actuaries, as applicable. |
Product Warranty Guarantees | Product Warranty Guarantees The company’s products are warranted to provide assurance that the product will function as expected and to ensure customer confidence in design, workmanship, and overall quality. Standard warranty coverage is generally provided for specified periods of time and on select products’ hours of usage, and generally covers parts, labor, and other expenses for non-maintenance repairs. The company also sells separately priced extended warranty coverage on select products for a prescribed period after the original warranty period expires. For additional information on the contract liabilities associated with the company's separately priced extended warranties, refer to Note 4, Revenue . At the time of sale, the company recognizes expense and records an accrual by product line for estimated costs in connection with projected future warranty claims. The company's estimate of the cost of future warranty claims is based primarily on the estimated number of products under warranty, historical average costs incurred to service warranty claims, the trend in the historical ratio of claims to sales, and the historical length of time between the sale and resulting warranty claim. The company periodically assesses the adequacy of its warranty accruals based on changes in these factors and records any necessary adjustments if the cost of actual claims experience indicates that adjustments to the company's warranty accrual are necessary. Additionally, from time to time, the company may also establish warranty accruals for its estimate of the costs necessary to settle major rework campaigns on a product-specific basis during the period in which the circumstances giving rise to the major rework campaign become known and when the costs to satisfactorily address the situation are both probable and estimable. The warranty accrual for the cost of a major rework campaign is primarily based on an estimate of the cost to repair each affected unit and the number of affected units expected to be repaired. |
Derivatives Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Derivative instruments, consisting primarily of forward currency contracts, are used to hedge most foreign currency transactions, including projected sales and purchases denominated in foreign currencies. All derivative instruments are recognized on the Consolidated Balance Sheets at fair value as either assets or liabilities. If the derivative instrument is designated as a cash flow hedging instrument, changes in the fair values of the spot rate component of outstanding, highly effective cash flow hedging instruments included in the assessment of hedge effectiveness are recorded in other comprehensive income within accumulated other comprehensive loss (“AOCL”) on the Consolidated Balance Sheets and are subsequently reclassified to net earnings within the Consolidated Statements of Earnings during the same period in which the cash flows of the underlying hedged transaction affect net earnings. Changes in the fair values of hedge components excluded from the assessment of effectiveness are recognized immediately in net earnings under the mark-to-market approach. Derivatives that are not designated as cash flow hedging instruments are adjusted to fair value through other income, net, on the Consolidated Statements of Earnings. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The functional currency of the company's foreign operations is generally the applicable local currency. The functional currency is translated into U.S. dollars using the respective current exchange rate in effect as of the balance sheet date for balance sheet accounts and the respective weighted-average exchange rate during the fiscal year for revenue and expense accounts. The resulting translation adjustments are deferred as a component of other comprehensive income within the Consolidated Statements of Comprehensive Income and the Consolidated Statements of Stockholders' Equity. Gains or losses resulting from transactions denominated in foreign currencies are included in other income, net in the Consolidated Statements of Earnings. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs incurred in connection with securing the company’s financing arrangements are capitalized and amortized over the term of the respective financing arrangement under the straight-line method as the results obtained are not materially different from those that would result from the use of the effective interest method. Debt issuance costs are generally presented in the Consolidated Balance Sheets as a direct deduction from the carrying amount of the outstanding borrowings, consistent with debt discounts. However, the company classifies the debt issuance costs related to its $600.0 million five-year senior |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years that those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. A valuation allowance is provided when, in management's judgment, it is more likely than not that some portion or all of the deferred tax asset will not be realized. The company believes it has reflected the necessary deferred tax assets and liabilities in the accompanying Consolidated Balance Sheets. Management believes the future tax deductions will be realized principally through future taxable income, future reversals of existing taxable temporary differences, and carryback to taxable income in prior years. The company recognizes the effect of income tax positions only if it is more likely than not that those positions will be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50.0 percent likely to be realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The company also records interest and penalties related to unrecognized tax benefits within income tax expense. |
Revenue Recognition | Revenue Recognition The company's primary source of revenue is generated through the sale of equipment and irrigation products, as well as rendering of services to its customers. As a result, the company enters into contracts with its customers for the sale of products or rendering of services in the ordinary course of business, which generally occurs at the time the company receives and accepts a purchase or sales order under a sales contract with a customer. The company recognizes revenue when, or as, performance obligations under the terms of a contract with its customer are satisfied, which generally occurs with the transfer of control of product or services at the time a product is shipped, or in the case of certain agreements, when a product is delivered or as services are rendered. Revenue is recognized based on the transaction price, which is measured as the amount of consideration the company expects to receive in exchange for transferring product or rendering services pursuant to the terms of the contract with a customer. The amount of consideration the company receives and the revenue the company recognizes varies as a result of variable consideration. Variable consideration is recorded at the time revenue is recognized as a reduction of the transaction price and typically occurs as a result of certain of the company's sales promotion and incentive programs offered to customers that are determined to represent price concessions, as well as anticipated product returns, when applicable. If a contract contains more than one performance obligation, the transaction price is allocated to each performance obligation based on the relative standalone selling price of the respective promised good or service. The company does not recognize revenue in situations where collectability from the customer is not probable, and defers the recognition of revenue until collection is probable or payment is received and performance obligations are satisfied. Sales Promotions and Incentives At the time revenue is recognized, the company records a reduction of the transaction price for the variable consideration associated with certain of the company's sales promotions and incentives programs offered to customers that are determined to represent price concessions. The expense of each sales promotion and incentive program is classified as a reduction from gross sales or as a component of selling, general and administrative expense within the Consolidated Statements of Earnings when revenue is recognized, depending on the nature of the program. Generally, the cost of a program is recorded as a reduction from gross sales when revenue is recognized and thus, is considered to be variable consideration, if the expense is determined to represent a price concession because the program either (i) results in an immediate reduction of the transaction price with no anticipated future costs or consideration provided to the customer or (ii) the company anticipates future costs based on historical or expected future business practice for which the company does not receive a distinct good or service in exchange for the future consideration provided to the customer under the program. In other circumstances, the anticipated future cost of a program based on historical or expected future business practice is recorded as selling, general and administrative expense because the company receives a distinct good or service in exchange for the future consideration provided to the customer under the program. Examples of significant sales promotions and incentive programs that are considered to be variable consideration because the cost of the program is classified as a reduction from gross sales are as follows: • Off-Invoice Discounts: The company's off-invoice discounts represent an immediate reduction in the selling price of the company's products that is realized at the time of sale with no anticipated future cost or consideration provided to the customer. • Rebate Programs: The company's rebate programs are generally based on claims submitted from either the company's direct customers or end-users of the company's products or are based on purchase or retail sales goals for the company's direct customers of certain quantities or mixes of product during a specified time period, depending upon the program. The amount of the rebate varies based on the specific program and is either a dollar amount or a percentage of the purchase price and can also be based on actual retail price as compared to the company's selling price. Consideration is typically provided to the company's customers for the company's rebate programs after the initial sale of the company's products to the company's direct customers and thus, there is generally an anticipated future cost at the time revenue is recognized based on historical and expected future business practice. • Financing Programs: The company's financing programs consist of floor plan financing programs with Red Iron and separate third-party financial institutions and end-user retail financing. Costs incurred for floor plan financing programs represent financing costs associated with programs under which the company shares the expense of financing distributor and dealer inventories through third-party financing arrangements for a specific period of time. This charge represents interest for a pre-established length of time based on a predefined rate from the contract between the company and Red Iron or the separate third-party financial institution to finance distributor and dealer inventory purchase. The floor plan financing costs for distributor and dealer inventories were $114.7 million, $46.3 million, and $20.8 million for the fiscal years ended October 31, 2023, 2022 and 2021, respectively. End-user retail financing is similar to floor planning with the difference being that retail financing programs are offered to end-user customers under which the company, at its discretion, may pay a portion of interest costs on behalf of end-users for financing purchases of the company's equipment. Examples of significant sales promotions and incentive programs that are not considered to be variable consideration because the cost of the program is classified as a component of selling, general, and administrative expense are as follows: • Commissions Paid to Distributors and Dealers: For certain products, the company uses a distribution network of dealers and distributors that purchase and take possession of products for sale to the end customer. The company also has dealers and distributors that act as sales agents for it on certain products using a direct-selling type model. Under this direct-selling type model, the company's network of distributors and dealers facilitates a sale directly to the dealer or end-user customer on its behalf. Commissions to distributors and dealers in these instances represent commission payments to sales agents that are also its customers. In addition, TTC dealers are often paid a commission to set up and deliver riding product purchased at certain mass retail and home centers. • Cooperative Advertising: Cooperative advertising programs are based on advertising costs incurred by distributors and dealers for promoting the company's products. The company supports a portion of those advertising costs in which claims are submitted by the distributor or dealer along with evidence of the advertising material procured/produced and evidence of the cost incurred in the form of third-party invoices or receipts. Regardless of classification of the cost of the sales promotion and incentive program within the Consolidated Statements of Earnings, the company records an accrual within the Consolidated Balance Sheets for the estimated future expense of certain of its sales promotion and incentive programs for which the company anticipates a future cost based on historical or expected future business practice by using the expected value method and applying the portfolio approach practical expedient under the accounting standards codification guidance for revenue from contracts with customers. Under such approach, the company's determination of variable consideration and the related accrual associated with the estimated expense of certain of the company's sales promotions and incentives programs is primarily based on the terms of the sales arrangements and sales promotion and incentive programs with customers, historical payment and rebate claims experience, field inventory levels, quantity or mix of products purchased, projected sales volumes, types of programs offered, and expectations for the acceptance of sales promotion and incentive programs offered in the future or changes in other relevant trends. |
Cost of Sales | Cost of Sales Cost of sales is primarily comprised of direct materials and supplies consumed to manufacture the company's products, as well as compensations costs for manufacturing labor and direct overhead expense necessary to convert direct materials and supplies into finished product. Cost of sales also includes freight costs for the procurement of direct materials and supplies and shipping products to customers; charges associated with inventory valuation adjustments for excess, slow-moving, and obsolete inventory; depreciation and amortization expense on manufacturing-related tangible and intangible assets; operating lease expense related to leased manufacturing assets; cost of services provided; cash discounts on payments to vendors, and other manufacturing-related costs. |
Selling, General, and Administrative Expense | Selling, General and Administrative Expense Selling, general and administrative expense is primarily comprised of compensation costs for non-manufacturing labor, occupancy and operating costs of distribution and corporate facilities, warranty expense, depreciation and amortization expense on non-manufacturing tangible and intangible assets, operating lease expense related to leased non-manufacturing assets; advertising, marketing, and selling expenses, engineering and research costs, information systems costs, and other miscellaneous administrative costs, such as legal costs for internal and outside services that are expensed as incurred. |
Advertising Expense | Advertising Expense |
Engineering and Research Expense | Engineering and Research Expense |
Stock-Based Compensation Expense | Stock-Based Compensation Expense The company's stock-based compensation awards are generally granted to executive officers, other employees, and non-employee members of the company's Board of Directors ("Board"), and include unrestricted common stock awards, performance share awards that are contingent on the achievement of performance goals of the company, non-qualified stock options, and restricted stock units. Generally, compensation expense equal to the grant date fair value determined under the Black-Scholes valuation method is recognized for these awards over the vesting period and is classified in selling, general and administrative expense within the Consolidated Statements of Earnings. For stock options and restricted stock units, expense recognized for other employees not considered executive officers and non-employee Board members is net of estimated forfeitures, which is based on historical forfeiture experience. Stock options granted to executive officers and other employees are subject to accelerated expensing if the option holder meets the retirement definition set forth in the applicable equity and incentive plan document. In that case, the fair value of the options is expensed in the fiscal year of grant because generally, if the option holder is employed as of the end of the fiscal year in which the options are granted, such options will not be forfeited but continue to vest according to their schedule following retirement. For additional information on The Toro Company 2022 Equity and Incentive Plan, refer to Note 9, Stock-Based Compensation . |
Other Income, Net | Other Income, Net Other income, net primarily consists of the company's proportionate share of income or losses from Red Iron, realized foreign currency exchange rate gains and losses, interest and dividend income, gains or losses recognized on actuarial valuation changes for our pension and post-retirement plans, retail financing revenue, and other miscellaneous income. |
Net Earnings Per Share | Net Earnings Per Share Basic net earnings per share is calculated as net earnings available to common stockholders divided by the weighted-average number of shares of common stock outstanding during the year plus the assumed issuance of contingent shares related to performance share awards under the company's equity and incentive plans. Diluted net earnings per share is similar to basic net earnings per share except that the weighted-average number of shares of common stock outstanding plus the assumed issuance of contingent shares is increased to include the number of additional shares of common stock that would have been outstanding assuming the issuance of all potentially dilutive shares, such as common stock to be issued upon exercise of options, contingently issuable shares, and restricted stock units. |
New Accounting Pronouncements | New Accounting Pronouncements In November 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. The update increases the transparency of government assistance including annual disclosure of the types of assistance, an entity’s accounting for the assistance, and the effect of the assistance on an entity’s financial statements. The amended guidance was adopted for the fiscal 2023 annual period and did not have a material impact on the company's Consolidated Financial Statements or annual disclosures. The company believes that all other recently issued accounting pronouncements from the FASB that the company has not noted above will not have a material impact on its Consolidated Financial Statements or do not apply to its operations. |
Commitments and Contingencies | The company records a liability in its Consolidated Financial Statements for costs related to claims, including future legal costs, settlements, and judgments, where the company has assessed that a loss is probable and an amount can be reasonably estimated. If the reasonable estimate of a probable loss is a range, the company records the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount. The company discloses a contingent liability even if the liability is not probable or the amount is not estimable, or both, if there is a reasonable possibility that a material loss may have been incurred. In the opinion of management, the amount of liability, if any, with respect to these matters, individually or in the aggregate, will not materially affect the company's consolidated results of operations, financial position, or cash flows. In situations where the company receives, or expects to receive, a favorable ruling related to a litigation settlement, the company follows the accounting standards codification guidance for gain contingencies. The company does not allow for the recognition of a gain contingency within its Consolidated Financial Statements prior to the settlement of the underlying events or contingencies associated with the gain contingency. As a result, the consideration related to a gain contingency is recorded in the Consolidated Financial Statements during the period in which all underlying events or contingencies are resolved and the gain is realized. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Related Data (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Inventories | Inventories, net were as follows (dollars in millions): October 31 2023 2022 Raw materials and work in process $ 400.3 $ 482.9 Finished goods and service parts 844.2 738.1 Total FIFO value 1,244.5 1,221.0 Less: adjustment to LIFO value 156.7 169.9 Total inventories, net $ 1,087.8 $ 1,051.1 |
Schedule of Property, Plant and Equipment | Property, plant and equipment, net was as follows (dollars in millions): October 31 2023 2022 Land and land improvements $ 69.0 $ 59.6 Buildings and leasehold improvements 355.8 324.3 Machinery and equipment 624.6 557.6 Tooling 260.4 225.9 Computer hardware and software 98.0 104.7 Construction in process 133.2 144.4 Property, plant and equipment, gross 1,541.0 1,416.5 Less: accumulated depreciation 899.3 844.8 Property, plant and equipment, net $ 641.7 $ 571.7 |
Schedule of Changes in Accrued Warranties | The changes in accrued warranties were as follows (dollars in millions): Fiscal Years Ended October 31 2023 2022 2021 Beginning balance $ 134.5 $ 116.8 $ 107.1 Changes in accrual related to warranties issued during the period 1 90.1 81.5 73.5 Acquisitions — 5.7 — Payments made during the period 1 (84.5) (74.6) (71.3) Changes in accrual related to pre-existing warranties 1 3.8 5.1 7.5 Ending balance $ 143.9 $ 134.5 $ 116.8 1 Presentation of prior period changes in accrued warranties has been conformed to the current year presentation. There was no impact to the balance of accrued warranties in any period. |
Reconciliations of Basic and Diluted Weighted Average Shares of Common Stock Outstanding | Reconciliations of basic and diluted weighted-average shares of common stock outstanding are as follows (in millions): Fiscal Years Ended October 31 2023 2022 2021 Basic Weighted-average number of shares of common stock 104.4 104.8 107.3 Assumed issuance of contingent shares — — — Weighted-average number of shares of common stock outstanding – Basic 104.4 104.8 107.3 Diluted Weighted-average number of shares of common stock outstanding – Basic 104.4 104.8 107.3 Effect of dilutive securities 0.9 0.8 1.1 Weighted-average number of shares of common stock outstanding – Diluted 105.3 105.6 108.5 |
Business Combinations and Ass_2
Business Combinations and Asset Acquisitions (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the Intimidator purchase price to the fair values assigned to the Intimidator assets acquired and liabilities assumed (dollars in millions): January 13, 2022 Cash and cash equivalents $ 1.0 Receivables 7.0 Inventories 34.6 Prepaid expenses and other current assets 0.5 Property, plant and equipment 27.4 Right-of-use assets 0.3 Goodwill 163.7 Indefinite-lived other intangible assets: Trade names 99.1 Finite-lived other intangible assets: Customer-related 80.5 Trade names 3.3 Backlog 1.3 Accounts payable (8.5) Accrued liabilities (9.1) Short-term lease liabilities (0.1) Long-term liabilities (0.2) Total fair value of net assets acquired 400.8 Less: cash and cash equivalents acquired (1.0) Total purchase price $ 399.8 |
Segment Data (Tables)
Segment Data (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Segment Reporting [Abstract] | |
Summarized Financial Information Concerning the Company's Reportable Segments | The following tables present summarized financial information concerning the company's reportable business segments and Other activities (dollars in millions): Fiscal Year Ended October 31, 2023 Professional Residential Other Total Net sales $ 3,674.6 $ 854.2 $ 24.4 $ 4,553.2 Intersegment gross sales (eliminations) 45.8 0.2 (46.0) — Earnings (loss) before income taxes 1 509.1 68.9 (177.5) 400.5 Total assets 2,679.6 565.1 399.6 3,644.3 Capital expenditures 79.9 45.6 24.0 149.5 Depreciation and amortization $ 89.3 $ 14.9 $ 15.0 $ 119.2 Fiscal Year Ended October 31, 2022 Professional Residential Other Total Net sales $ 3,429.6 $ 1,068.6 $ 16.5 $ 4,514.7 Intersegment gross sales (eliminations) 33.5 0.1 (33.6) — Earnings (loss) before income taxes 584.0 112.7 (144.2) 552.5 Total assets 2,702.8 501.6 351.6 3,556.0 Capital expenditures 94.3 31.0 18.2 143.5 Depreciation and amortization $ 82.7 $ 13.0 $ 13.1 $ 108.8 Fiscal Year Ended October 31, 2021 Professional Residential Other Total Net sales $ 2,929.6 $ 1,010.1 $ 19.9 $ 3,959.6 Intersegment gross sales (eliminations) 30.5 — (30.5) — Earnings (loss) before income taxes 507.3 121.5 (129.0) 499.8 Total assets 2,032.4 388.2 515.5 2,936.1 Capital expenditures 79.5 16.7 7.8 104.0 Depreciation and amortization $ 73.7 $ 13.5 $ 12.1 $ 99.3 1 The Professional reportable segment earnings (loss) before income taxes includes $151.3 million of non-cash impairment charges recorded during the preparation of the financial statements for the third quarter of fiscal 2023 related to the Intimidator operating segment. For additional information regarding the impairment charges, refer to Note 5, Goodwill and Other Intangible Assets . |
Summary of the Components of the Loss before Income Taxes included in "Other" | The following table presents the details of operating loss before income taxes for the company's Other activities (dollars in millions): Fiscal Years Ended October 31 2023 2022 2021 Corporate expenses $ (151.8) $ (126.3) $ (112.4) Interest expense (58.7) (35.7) (28.7) Earnings from the company's wholly-owned domestic distribution company and other income, net 33.0 17.8 12.1 Total operating loss $ (177.5) $ (144.2) $ (129.0) |
Schedule of Geographic Area Data | The following geographic area data includes net sales based on product shipment destination and long-lived assets, which consist of property, plant and equipment, net, and is based on physical location in addition to allocated capital tooling from U.S. plant facilities (dollars in millions): Fiscal Years Ended October 31 United States International Countries Total 2023 Net sales $ 3,605.5 $ 947.7 $ 4,553.2 Long-lived assets $ 540.4 $ 101.3 $ 641.7 2022 Net sales $ 3,635.5 $ 879.2 $ 4,514.7 Long-lived assets $ 505.9 $ 65.8 $ 571.7 2021 Net sales $ 3,132.0 $ 827.6 $ 3,959.6 Long-lived assets $ 440.5 $ 47.2 $ 487.7 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables disaggregate the company's reportable segment net sales by similar product type and geographic market (dollars in millions): Fiscal Year Ended October 31, 2023 Professional Residential Other Total Revenue by product type: Equipment $ 3,236.9 $ 819.2 $ 13.1 $ 4,069.2 Irrigation 437.7 35.0 11.3 484.0 Total net sales $ 3,674.6 $ 854.2 $ 24.4 $ 4,553.2 Revenue by geographic market: United States $ 2,898.5 $ 682.6 $ 24.4 $ 3,605.5 International Countries 776.1 171.6 — 947.7 Total net sales $ 3,674.6 $ 854.2 $ 24.4 $ 4,553.2 Fiscal Year Ended October 31, 2022 Professional Residential Other Total Revenue by product type: Equipment $ 3,003.0 $ 1,039.2 $ 6.4 $ 4,048.6 Irrigation 426.6 29.4 10.1 466.1 Total net sales $ 3,429.6 $ 1,068.6 $ 16.5 $ 4,514.7 Revenue by geographic market: United States $ 2,737.9 $ 881.1 $ 16.5 $ 3,635.5 International Countries 691.7 187.5 — 879.2 Total net sales $ 3,429.6 $ 1,068.6 $ 16.5 $ 4,514.7 Fiscal Year Ended October 31, 2021 Professional Residential Other Total Revenue by product type: Equipment $ 2,530.8 $ 975.8 $ 11.7 $ 3,518.3 Irrigation 398.8 34.3 8.2 441.3 Total net sales $ 2,929.6 $ 1,010.1 $ 19.9 $ 3,959.6 Revenue by geographic market: United States $ 2,268.9 $ 843.2 $ 19.9 $ 3,132.0 International Countries 660.7 166.9 — 827.6 Total net sales $ 2,929.6 $ 1,010.1 $ 19.9 $ 3,959.6 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill by reportable segment for fiscal 2023 and 2022 were as follows (dollars in millions): Professional Residential Other Total Balance as of October 31, 2021 $ 411.1 $ 10.6 $ — $ 421.7 Goodwill acquired 163.7 — — 163.7 Translation adjustments (1.8) (0.3) — (2.1) Balance as of October 31, 2022 573.0 10.3 — 583.3 Non-cash impairment charge (133.3) — — (133.3) Translation adjustments 0.8 — — 0.8 Balance as of October 31, 2023 $ 440.5 $ 10.3 $ — $ 450.8 |
Schedule of Finite-Lived Intangible Assets | The components of other intangible assets were as follows (dollars in millions, except weighted-average useful life in years): October 31, 2023 Weighted-Average Useful Life in Years Gross Carrying Amount Accumulated Amortization Net Patents 9.9 $ 18.2 $ (16.0) $ 2.2 Non-compete agreements 5.5 6.9 (6.9) — Customer-related 15.8 327.5 (106.7) 220.8 Developed technology 7.1 102.0 (63.1) 38.9 Trade names 13.7 10.7 (4.0) 6.7 Backlog and other 0.6 5.7 (5.7) — Total finite-lived 13.3 471.0 (202.4) 268.6 Indefinite-lived - trade names 271.5 — 271.5 Total other intangible assets, net $ 742.5 $ (202.4) $ 540.1 October 31, 2022 Weighted-Average Useful Life in Years Gross Carrying Amount Accumulated Amortization Net Patents 9.9 $ 18.2 $ (15.3) $ 2.9 Non-compete agreements 5.5 6.8 (6.8) — Customer-related 16.0 321.0 (83.8) 237.2 Developed technology 7.1 101.9 (53.0) 48.9 Trade names 13.8 10.7 (3.4) 7.3 Backlog and other 0.6 5.7 (5.5) 0.2 Total finite-lived 13.4 464.3 (167.8) 296.5 Indefinite-lived - trade names 289.3 — 289.3 Total other intangible assets, net $ 753.6 $ (167.8) $ 585.8 |
Schedule of Indefinite-Lived Intangible Assets | The components of other intangible assets were as follows (dollars in millions, except weighted-average useful life in years): October 31, 2023 Weighted-Average Useful Life in Years Gross Carrying Amount Accumulated Amortization Net Patents 9.9 $ 18.2 $ (16.0) $ 2.2 Non-compete agreements 5.5 6.9 (6.9) — Customer-related 15.8 327.5 (106.7) 220.8 Developed technology 7.1 102.0 (63.1) 38.9 Trade names 13.7 10.7 (4.0) 6.7 Backlog and other 0.6 5.7 (5.7) — Total finite-lived 13.3 471.0 (202.4) 268.6 Indefinite-lived - trade names 271.5 — 271.5 Total other intangible assets, net $ 742.5 $ (202.4) $ 540.1 October 31, 2022 Weighted-Average Useful Life in Years Gross Carrying Amount Accumulated Amortization Net Patents 9.9 $ 18.2 $ (15.3) $ 2.9 Non-compete agreements 5.5 6.8 (6.8) — Customer-related 16.0 321.0 (83.8) 237.2 Developed technology 7.1 101.9 (53.0) 48.9 Trade names 13.8 10.7 (3.4) 7.3 Backlog and other 0.6 5.7 (5.5) 0.2 Total finite-lived 13.4 464.3 (167.8) 296.5 Indefinite-lived - trade names 289.3 — 289.3 Total other intangible assets, net $ 753.6 $ (167.8) $ 585.8 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated amortization expense for the succeeding fiscal years is as follows (dollars in millions): Succeeding fiscal year Estimated amortization expense 2024 $ 34.5 2025 31.7 2026 30.5 2027 25.6 2028 22.3 Thereafter 124.0 Total estimated amortization expense $ 268.6 |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | The following is a summary of the company's indebtedness (dollars in millions): October 31 2023 2022 $600 million revolving credit facility, due October 2026 $ 40.0 $ — $270 million term loan, due October 2026 270.0 270.0 $200 million term loan, due April 2027 200.0 200.0 3.81% series A senior notes, due June 2029 100.0 100.0 3.91% series B senior notes, due June 2031 100.0 100.0 3.97% senior notes, due June 2032 100.0 100.0 7.8% debentures, due June 2027 100.0 100.0 6.625% senior notes, due May 2037 124.2 124.1 Less: unamortized debt issuance costs 2.7 3.3 Long-term debt $ 1,031.5 $ 990.8 |
Schedule of Principal Payments | Principal payments required on the company's outstanding indebtedness, based on the maturity dates defined within the company's debt arrangements, for the succeeding fiscal years is as follows (dollars in millions): Succeeding fiscal year Principal payments 2024 $ — 2025 37.0 2026 303.0 2027 270.0 2028 — Thereafter 425.0 Total principal payments $ 1,035.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Earnings before Income Taxes | Earnings before income taxes were as follows (dollars in millions): Fiscal Years Ended October 31 2023 2022 2021 Earnings before income taxes: United States $ 345.0 $ 491.3 $ 446.2 Foreign 55.5 61.2 53.6 Total earnings before income taxes $ 400.5 $ 552.5 $ 499.8 |
Schedule of Reconciliation of the Statutory Federal Income Tax Rate to the Company's Consolidated Effective Tax Rate | A reconciliation of the statutory federal income tax rate to the company's effective tax rate is summarized as follows: Fiscal Years Ended October 31 2023 2022 2021 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % Excess deduction for stock-based compensation (1.1) (0.4) (1.5) State and local income taxes, net of federal benefit 1.8 2.0 1.4 Foreign operations (0.7) (0.7) (0.5) Federal research tax credit (2.3) (1.3) (1.4) Foreign-derived intangible income (1.1) (0.7) (0.9) Other, net 0.1 (0.1) (0.1) Effective tax rate 17.7 % 19.8 % 18.0 % |
Schedule of Components of the Provision for Income Taxes | Components of the company's provision for income taxes were as follows (dollars in millions): Fiscal Years Ended October 31 2023 2022 2021 Current provision: Federal $ 94.4 $ 94.7 $ 90.2 State 17.0 19.1 16.0 Foreign 7.3 7.7 9.2 Total current provision $ 118.7 $ 121.5 $ 115.4 Deferred (benefit) provision: Federal $ (37.8) $ (7.4) $ (18.4) State (10.3) (4.9) (6.5) Foreign 0.2 — (0.6) Total deferred benefit (47.9) (12.3) (25.5) Total provision for income taxes $ 70.8 $ 109.2 $ 89.9 |
Schedule of Tax Effects of Temporary Differences that Give Rise to the Net Deferred Income Tax Assets | The components of the company's deferred income tax assets and liabilities were as follows (dollars in millions): Fiscal Years Ended October 31 2023 2022 Deferred income tax assets: Compensation and benefits $ 32.5 $ 32.9 Warranty and insurance 37.6 35.4 Lease liabilities 35.3 20.2 Advertising and sales promotions and incentives 16.5 7.2 Inventory 14.4 36.4 Deferred revenue 0.3 3.3 Other 3.0 — Net operating losses and other carryforwards 5.3 6.4 Research and Experimentation 35.4 — Valuation allowance (3.3) (3.2) Deferred income tax assets $ 177.0 $ 138.6 Deferred income tax liabilities: Right-of-use assets $ (34.8) $ (19.5) Depreciation (60.0) (51.9) Amortization (68.4) (102.4) Other — (3.8) Deferred income tax liabilities (163.2) (177.6) Deferred income tax assets (liabilities), net $ 13.8 $ (39.0) |
Schedule of Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (dollars in millions): Unrecognized tax benefits as of October 31, 2022 $ 3.3 Increase as a result of tax positions taken during a prior period 0.2 Increase as a result of tax positions taken during the current period 0.6 Reductions as a result of statute of limitations lapses (0.4) Unrecognized tax benefits as of October 31, 2023 $ 3.7 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Compensation Costs Related to Stock-Based Awards | Compensation costs related to stock-based compensation awards were as follows (dollars in millions): Fiscal Years Ended October 31 2023 2022 2021 Stock option awards $ 8.5 $ 10.0 $ 10.0 Performance share awards 2.9 5.8 6.8 Restricted stock unit awards 6.9 5.7 4.3 Unrestricted common stock awards 1.1 0.6 0.7 Total compensation cost for stock-based compensation awards $ 19.4 $ 22.1 $ 21.8 Related tax benefit from stock-based compensation awards $ 4.7 $ 5.3 $ 5.2 |
Schedule of Weighted Average Valuation Assumptions of Stock-Based Compensation | The table below illustrates the weighted-average valuation assumptions used under the Black-Scholes valuation method for options granted in the following fiscal periods: Fiscal Years Ended October 31 2023 2022 2021 Expected life of option in years 6.31 6.19 6.21 Expected stock price volatility 25.20 % 23.74 % 23.26 % Risk-free interest rate 3.79 % 1.31 % 0.55 % Expected dividend yield 0.95 % 0.94 % 0.86 % Per share weighted-average fair value at date of grant $ 33.21 $ 22.55 $ 19.39 |
Schedule of Stock Options Activity | The table below presents stock option activity for fiscal 2023: Stock Option Awards Weighted-Average Exercise Price Weighted-Average Aggregate Intrinsic Outstanding as of October 31, 2022 2,986,033 $ 71.23 6.0 $ 102.1 Granted 475,620 110.87 Exercised (389,923) 52.76 Forfeited (98,300) 107.67 Outstanding as of October 31, 2023 2,973,430 $ 78.80 5.4 $ 32.0 Exercisable as of October 31, 2023 2,078,025 $ 68.37 4.4 $ 32.0 |
Schedule of Total Market Value and the Intrinsic Value of Options Exercised | The table below presents the total market value of stock options exercised and the total intrinsic value of options exercised during the following fiscal years (dollars in millions): Fiscal Years Ended October 31 2023 2022 2021 Market value of stock options exercised $ 43.4 $ 20.1 $ 40.1 Intrinsic value of stock options exercised 1 $ 22.8 $ 9.8 $ 26.0 1 Intrinsic value is calculated as the amount by which the stock price at exercise date exceeded the option exercise price. |
Schedule of Performance Share Awards Granted | Factors related to the company's performance share awards are as follows (dollars in millions, except per award data): Fiscal Years Ended October 31 2023 2022 2021 Weighted-average fair value per award at date of grant $ 112.14 $ 98.41 $ 90.59 Fair value of performance share awards vested $ 5.3 $ 4.8 $ 3.4 |
Schedule of Unvested Performance Share Awards and the Weighted Average Fair Value at the Date of Grant | The table below presents fiscal 2023 activity for unvested performance share awards: Performance Shares Weighted-Average Fair Value at Date of Grant Unvested as of October 31, 2022 195,600 $ 88.63 Granted 66,131 112.14 Vested (46,831) 77.33 Forfeited (28,140) 106.16 Unvested as of October 31, 2023 186,760 $ 100.57 |
Schedule of Restricted Stock and Restricted Stock Unit Awards Granted | Factors related to the company's restricted stock unit awards are as follows (dollars in millions, except per award data): Fiscal Years Ended October 31 2023 2022 2021 Weighted-average fair value per award at date of grant $ 103.40 $ 88.90 $ 97.87 Fair value of restricted stock units vested $ 6.2 $ 5.5 $ 4.5 |
Schedule of Unvested Restricted Stock Shares and the Weighted Average Fair Value at the Date of Grant | The table below presents fiscal 2023 activity for unvested restricted stock units: Restricted Stock Units Weighted-Average Fair Value at Date Unvested as of October 31, 2022 150,677 $ 90.39 Granted 99,081 103.40 Vested (57,727) 89.16 Forfeited (12,205) 93.26 Unvested as of October 31, 2023 179,826 $ 97.66 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Loss | The components of AOCL, net of tax, within the Consolidated Statements of Stockholders' Equity were as follows (dollars in millions): As of October 31 2023 2022 Foreign currency translation adjustments $ 41.7 $ 51.3 Pension benefits 4.3 3.6 Cash flow derivative instruments (9.0) (21.8) Total accumulated other comprehensive loss $ 37.0 $ 33.1 |
Schedule of Components and Activity of Accumulated Other Comprehensive Loss | The components and activity of AOCL, net of tax, were as follows (dollars in millions): Foreign Currency Translation Adjustments Pension Benefits Cash Flow Derivative Instruments Total Balance as of October 31, 2022 $ 51.3 $ 3.6 $ (21.8) $ 33.1 Other comprehensive (income) loss before reclassifications (9.6) 0.7 (2.5) (11.4) Amounts reclassified from AOCL — — 15.3 15.3 Net current period other comprehensive (income) loss (9.6) 0.7 12.8 3.9 Balance as of October 31, 2023 $ 41.7 $ 4.3 $ (9.0) $ 37.0 Foreign Currency Translation Adjustments Pension Benefits Cash Flow Derivative Instruments Total Balance as of October 31, 2021 $ 19.5 $ 3.9 $ 2.6 $ 26.0 Other comprehensive loss (income) before reclassifications 31.8 (0.3) (19.3) 12.2 Amounts reclassified from AOCL — — (5.1) (5.1) Net current period other comprehensive loss (income) 31.8 (0.3) (24.4) 7.1 Balance as of October 31, 2022 $ 51.3 $ 3.6 $ (21.8) $ 33.1 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Cost | The following table presents the lease expense incurred on the company’s operating, short-term, and variable leases (dollars in millions): Fiscal Year Ended October 31 2023 2022 2021 Operating lease expense $ 24.0 $ 22.6 $ 20.4 Short-term lease expense 4.5 4.5 2.9 Variable lease expense — — 0.1 Total lease expense $ 28.5 $ 27.1 $ 23.4 The following table presents supplemental cash flow information related to the company's operating leases (dollars in millions): Fiscal Year Ended October 31 2023 2022 2021 Right-of-use assets obtained in exchange for lease obligations $ 67.6 $ 27.0 $ 5.4 Operating cash flows for amounts included in the measurement of lease liabilities $ 20.9 $ 19.2 $ 18.9 The following table presents other lease information related to the company's operating leases as of October 31, 2023 and October 31, 2022: October 31, 2023 October 31, 2022 Weighted-average remaining lease term of operating leases in years 9.3 6.0 Weighted-average discount rate of operating leases 4.83 % 3.53 % |
Schedule of Operating Lease Maturities | The following table reconciles the total undiscounted future cash flows based on the anticipated future minimum operating lease payments by fiscal year for the company's operating leases to the present value of operating lease liabilities recorded within the Consolidated Balance Sheets as of October 31, 2023 (dollars in millions): October 31, 2023 2024 $ 25.1 2025 23.3 2026 17.4 2027 13.9 2028 11.8 Thereafter 69.6 Total future minimum operating lease payments 161.1 Less: imputed interest 29.5 Present value of operating lease liabilities $ 131.6 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivatives and Consolidated Balance Sheet Location | The following table presents the fair value and location of the company’s derivative instruments on the Consolidated Balance Sheets (dollars in millions): Fair Value as of October 31 2023 2022 Derivative assets: Derivatives designated as cash flow hedging instruments: Prepaid expenses and other current assets Forward currency contracts $ 13.7 $ 27.7 Derivatives not designated as cash flow hedging instruments: Prepaid expenses and other current assets Forward currency contracts 3.1 5.5 Total derivative assets $ 16.8 33.2 Derivative liabilities: Derivatives designated as cash flow hedging instruments: Accrued liabilities Forward currency contracts $ — $ — Derivatives not designated as cash flow hedging instruments: Accrued liabilities Forward currency contracts — — Total derivative liabilities $ — $ — |
Schedule of Effects of the Master Netting Arrangements on the Fair Value of the Company's Derivative Contracts that are Recorded in the Consolidated Balance Sheets | The following table presents the effects of the master netting arrangements on the fair value of the company’s derivative instruments that are recorded on the Consolidated Balance Sheets (dollars in millions): Fair Value as of October 31 2023 2022 Derivative assets: Forward currency contracts: Gross amount of derivative assets $ 16.8 $ 33.2 Derivative liabilities offsetting derivative assets — — Net amount of derivative assets $ 16.8 $ 33.2 Derivative liabilities: Forward currency contracts: Gross amount of derivative liabilities $ — $ — Derivative assets offsetting derivative liabilities — — Net amount of derivative liabilities $ — $ — |
Schedule of Impact of Derivative Instruments on Consolidated Statements of Earnings for Derivatives Designated as Cash Flow Hedging Instruments | The following table presents the impact and location of the amounts reclassified from AOCL into net earnings on the Consolidated Statements of Earnings and the impact of derivative instruments on the Consolidated Statements of Comprehensive Income for the company's derivatives designated as cash flow hedging instruments (dollars in millions): Gain Reclassified from AOCL into Income (Loss) Gain Recognized in OCI on Derivatives Fiscal Years Ended October 31 2023 2022 2023 2022 Derivatives designated as cash flow hedging instruments: Forward currency contracts: Net sales $ 10.8 $ 4.5 $ (12.9) $ 21.2 Cost of sales 4.5 0.6 0.1 3.2 Total derivatives designated as cash flow hedging instruments $ 15.3 $ 5.1 $ (12.8) $ 24.4 The following tables present the impact and location of derivative instruments on the Consolidated Statements of Earnings for the company’s derivatives designated as cash flow hedging instruments and the related components excluded from hedge effectiveness testing (dollars in millions): Gain Recognized in Earnings on Cash Flow Hedging Instruments Fiscal Year Ended October 31, 2023 Net Sales Cost of Sales Total Consolidated Statements of Earnings income (expense) amounts in which the effects of cash flow hedging instruments are recorded $ 4,553.2 $ (2,975.6) Gain on derivatives designated as cash flow hedging instruments: Forward currency contracts: Amount of gain reclassified from AOCL into earnings 10.8 4.5 Gain on components excluded from effectiveness testing recognized in earnings based on changes in fair value $ 2.2 $ 2.6 (Loss) Gain Recognized in Earnings on Cash Flow Hedging Instruments Fiscal Year Ended October 31, 2022 Net Sales Cost of Sales Total Consolidated Statements of Earnings income (expense) amounts in which the effects of cash flow hedging instruments are recorded $ 4,514.7 $ (3,010.1) Gain (loss) on derivatives designated as cash flow hedging instruments: Forward currency contracts: Amount of gain reclassified from AOCL into earnings 4.5 0.6 (Loss) gain on components excluded from effectiveness testing recognized in earnings based on changes in fair value $ (1.1) $ 1.7 |
Schedule of Derivatives Not Designated as Hedging Instruments | The following table presents the impact and location of derivative instruments on the Consolidated Statements of Earnings for the company’s derivatives not designated as cash flow hedging instruments (dollars in millions): Fiscal Years Ended October 31 2023 2022 (Loss) gain on derivative instruments not designated as cash flow hedging instruments: Forward currency contracts: Other (expense) income, net $ (6.3) $ 4.2 Total (loss) gain on derivatives not designated as cash flow hedging instruments $ (6.3) $ 4.2 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present, by level within the fair value hierarchy, the company's financial assets and liabilities that are measured at fair value on a recurring basis as of October 31, 2023 and 2022, according to the valuation technique utilized to determine their fair values (dollars in millions): Fair Value Measurements Using Inputs Considered as: October 31, 2023 Fair Value Level 1 Level 2 Level 3 Assets: Forward currency contracts $ 16.8 $ — $ 16.8 $ — Total assets $ 16.8 $ — $ 16.8 $ — Liabilities: Forward currency contracts $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — Fair Value Measurements Using Inputs Considered as: October 31, 2022 Fair Value Level 1 Level 2 Level 3 Assets: Forward currency contracts $ 33.2 $ — $ 33.2 $ — Total assets $ 33.2 $ — $ 33.2 $ — Liabilities: Forward currency contracts $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Related Data - Basis of Presentation and Consolidation (Details) | 12 Months Ended |
Oct. 31, 2023 segment | |
Accounting Policies [Abstract] | |
Number of reportable business segments | 2 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Related Data - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Subsidiaries | International Countries | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 91.1 | $ 93.4 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies and Related Data - Inventory Valuations (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Percentage of FIFO and weighted average cost inventory | 58.50% | 50.80% |
Inventory valuation adjustment | $ 43.9 | $ 38.7 |
Inventory, Net [Abstract] | ||
Raw materials and work in process | 400.3 | 482.9 |
Finished goods and service parts | 844.2 | 738.1 |
Total FIFO value | 1,244.5 | 1,221 |
Less: adjustment to LIFO value | 156.7 | 169.9 |
Total inventories, net | $ 1,087.8 | $ 1,051.1 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies and Related Data - Property and Depreciation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Property and Depreciation | |||
Capitalized interest amount | $ 4.2 | $ 2.5 | $ 0.8 |
Property, plant and equipment, gross | 1,541 | 1,416.5 | |
Less: accumulated depreciation | 899.3 | 844.8 | |
Property, plant and equipment, net | 641.7 | 571.7 | 487.7 |
Depreciation expense | 83.5 | 74.9 | $ 75.5 |
Land and land improvements | |||
Property and Depreciation | |||
Property, plant and equipment, gross | 69 | 59.6 | |
Buildings and leasehold improvements | |||
Property and Depreciation | |||
Property, plant and equipment, gross | $ 355.8 | 324.3 | |
Buildings and leasehold improvements | Minimum | |||
Property and Depreciation | |||
Estimated useful life | 10 years | ||
Buildings and leasehold improvements | Maximum | |||
Property and Depreciation | |||
Estimated useful life | 40 years | ||
Machinery and equipment | |||
Property and Depreciation | |||
Property, plant and equipment, gross | $ 624.6 | 557.6 | |
Machinery and equipment | Minimum | |||
Property and Depreciation | |||
Estimated useful life | 3 years | ||
Machinery and equipment | Maximum | |||
Property and Depreciation | |||
Estimated useful life | 15 years | ||
Tooling | |||
Property and Depreciation | |||
Property, plant and equipment, gross | $ 260.4 | 225.9 | |
Tooling | Minimum | |||
Property and Depreciation | |||
Estimated useful life | 3 years | ||
Tooling | Maximum | |||
Property and Depreciation | |||
Estimated useful life | 5 years | ||
Computer hardware and software | |||
Property and Depreciation | |||
Property, plant and equipment, gross | $ 98 | 104.7 | |
Computer hardware and software | Minimum | |||
Property and Depreciation | |||
Estimated useful life | 2 years | ||
Computer hardware and software | Maximum | |||
Property and Depreciation | |||
Estimated useful life | 5 years | ||
Construction in process | |||
Property and Depreciation | |||
Property, plant and equipment, gross | $ 133.2 | $ 144.4 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies and Related Data - Goodwill and Indefinite-Life Intangible Assets (Details) | 3 Months Ended | 12 Months Ended | |||
Oct. 31, 2023 USD ($) | Aug. 04, 2023 USD ($) | Oct. 31, 2023 USD ($) reportingUnit segment | Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | |
Indefinite-lived Intangible Assets [Line Items] | |||||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 0 | $ 0 | $ 0 | ||
Goodwill, impairment loss | $ 0 | $ 133,300,000 | $ 0 | $ 0 | |
Number of reporting units tested for impairment of goodwill | reportingUnit | 12 | ||||
Number of operating segments | segment | 12 | ||||
Number of reporting units containing goodwill | reportingUnit | 9 | ||||
Professional | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 18,000,000 | ||||
Professional | Intimidator Reporting Unit | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Goodwill, impairment loss | $ 133,300,000 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies and Related Data - Other Long-Lived Assets (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Estimated useful life | 13 years 3 months 18 days | 13 years 4 months 24 days | |
Impairment of long-lived assets held-for-use | $ 0 | $ 0 | $ 0 |
Maximum | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Estimated useful life | 20 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies and Related Data - Accounts Payable (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Accounting Policies [Abstract] | ||
Outstanding payment obligations placed on the accounts payable tracking system | $ 99.6 | $ 133.7 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies and Related Data - Accrued Warranties (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Beginning balance | $ 134.5 | $ 116.8 | $ 107.1 |
Changes in accrual related to warranties issued during the period | 90.1 | 81.5 | 73.5 |
Acquisitions | 0 | 5.7 | 0 |
Payments made during the period | (84.5) | (74.6) | (71.3) |
Changes in accrual related to pre-existing warranties | 3.8 | 5.1 | 7.5 |
Ending balance | $ 143.9 | $ 134.5 | $ 116.8 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies and Related Data - Debt Issuance Costs (Details) - USD ($) | Oct. 05, 2021 | Oct. 31, 2023 | Oct. 31, 2022 |
Debt Instrument [Line Items] | |||
Debt issuance costs, net | $ 3,800,000 | $ 4,800,000 | |
Line of Credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity under credit facility | $ 600,000,000 | ||
Debt instrument, term | 5 years |
Summary of Significant Accou_13
Summary of Significant Accounting Policies and Related Data - Financing Programs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Accounting Policies [Abstract] | |||
Financing costs for distributor and dealer inventories | $ 114.7 | $ 46.3 | $ 20.8 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies and Related Data - Advertising (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Accounting Policies [Abstract] | |||
Advertising costs | $ 77.6 | $ 58.3 | $ 50.5 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies and Related Data - Engineering and Research (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Accounting Policies [Abstract] | |||
Engineering and research costs | $ 173.9 | $ 155.6 | $ 141 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies and Related Data - Net Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Basic | |||
Weighted-average number of shares of common stock (in shares) | 104,400 | 104,800 | 107,300 |
Assumed issuance of contingent shares (in shares) | 0 | 0 | 0 |
Weighted-average number of shares of common stock outstanding – Basic (in shares) | 104,400 | 104,800 | 107,300 |
Diluted | |||
Weighted-average number of shares of common stock outstanding – Basic (in shares) | 104,400 | 104,800 | 107,300 |
Effect of dilutive securities (in shares) | 900 | 800 | 1,100 |
Weighted-average number of shares of common stock outstanding – Diluted (in shares) | 105,300 | 105,600 | 108,500 |
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 573,662 | 906,121 | 409,851 |
Business Combinations and Ass_3
Business Combinations and Asset Acquisitions - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Jan. 13, 2022 | Oct. 31, 2023 | Aug. 04, 2023 | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Business Acquisition [Line Items] | ||||||
Estimated useful life | 13 years 3 months 18 days | 13 years 3 months 18 days | 13 years 4 months 24 days | |||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 0 | $ 0 | $ 0 | |||
Goodwill, impairment loss | $ 0 | $ 133,300,000 | $ 0 | $ 0 | ||
Professional | ||||||
Business Acquisition [Line Items] | ||||||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 18,000,000 | |||||
Professional | Intimidator Reporting Unit | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill, impairment loss | $ 133,300,000 | |||||
Trade names | ||||||
Business Acquisition [Line Items] | ||||||
Estimated useful life | 13 years 8 months 12 days | 13 years 8 months 12 days | 13 years 9 months 18 days | |||
Developed technology | ||||||
Business Acquisition [Line Items] | ||||||
Estimated useful life | 7 years 1 month 6 days | 7 years 1 month 6 days | 7 years 1 month 6 days | |||
Intimidator Group | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, consideration transferred | $ 399,800,000 | |||||
Other intangible assets | $ 184,200,000 | |||||
Estimated useful life | 9 years 6 months | |||||
Intimidator Group | Trade names | ||||||
Business Acquisition [Line Items] | ||||||
Estimated useful life | 9 years 9 months 18 days | |||||
Intimidator Group | Customer-related | ||||||
Business Acquisition [Line Items] | ||||||
Estimated useful life | 9 years 7 months 6 days | |||||
Intimidator Group | Developed technology | ||||||
Business Acquisition [Line Items] | ||||||
Estimated useful life | 9 months |
Business Combinations and Ass_4
Business Combinations and Asset Acquisitions - Summary of Purchase Price Allocation (Details) - USD ($) $ in Millions | Jan. 13, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 450.8 | $ 583.3 | $ 421.7 | |
Intimidator Group | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 1 | |||
Receivables | 7 | |||
Inventories | 34.6 | |||
Prepaid expenses and other current assets | 0.5 | |||
Property, plant and equipment | 27.4 | |||
Right-of-use assets | 0.3 | |||
Goodwill | 163.7 | |||
Finite-lived other intangible assets: | ||||
Accounts payable | (8.5) | |||
Accrued liabilities | (9.1) | |||
Short-term lease liabilities | (0.1) | |||
Long-term liabilities | (0.2) | |||
Total fair value of net assets acquired | 400.8 | |||
Less: cash and cash equivalents acquired | (1) | |||
Total purchase price | 399.8 | |||
Intimidator Group | Customer-related | ||||
Finite-lived other intangible assets: | ||||
Finite-lived intangibles | 80.5 | |||
Intimidator Group | Trade names | ||||
Finite-lived other intangible assets: | ||||
Finite-lived intangibles | 3.3 | |||
Intimidator Group | Backlog | ||||
Finite-lived other intangible assets: | ||||
Finite-lived intangibles | 1.3 | |||
Intimidator Group | Trade names | ||||
Indefinite-lived other intangible assets: | ||||
Indefinite-lived intangibles | $ 99.1 |
Segment Data - Narrative (Detai
Segment Data - Narrative (Details) - segment | 12 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | 12 | |
Number of reportable business segments | 2 | |
One Customer | Revenue from Contract with Customer | Customer concentration | ||
Segment Reporting Information [Line Items] | ||
Percentage of consolidated gross sales accounted for by one customer | 10.60% |
Segment Data - Summarized Finan
Segment Data - Summarized Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Aug. 04, 2023 | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 4,553.2 | $ 4,514.7 | $ 3,959.6 | |
Earnings (loss) before income taxes1 | 400.5 | 552.5 | 499.8 | |
Total assets | 3,644.3 | 3,556 | 2,936.1 | |
Capital expenditures | 149.5 | 143.5 | 104 | |
Depreciation and amortization | 119.2 | 108.8 | 99.3 | |
Non-cash impairment charges | $ 151.3 | 151.3 | 0 | 0 |
Operating Segments | Professional | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 3,674.6 | 3,429.6 | 2,929.6 | |
Earnings (loss) before income taxes1 | 509.1 | 584 | 507.3 | |
Total assets | 2,679.6 | 2,702.8 | 2,032.4 | |
Capital expenditures | 79.9 | 94.3 | 79.5 | |
Depreciation and amortization | 89.3 | 82.7 | 73.7 | |
Operating Segments | Residential | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 854.2 | 1,068.6 | 1,010.1 | |
Earnings (loss) before income taxes1 | 68.9 | 112.7 | 121.5 | |
Total assets | 565.1 | 501.6 | 388.2 | |
Capital expenditures | 45.6 | 31 | 16.7 | |
Depreciation and amortization | 14.9 | 13 | 13.5 | |
Other Activities | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 24.4 | 16.5 | 19.9 | |
Earnings (loss) before income taxes1 | (177.5) | (144.2) | (129) | |
Total assets | 399.6 | 351.6 | 515.5 | |
Capital expenditures | 24 | 18.2 | 7.8 | |
Depreciation and amortization | 15 | 13.1 | 12.1 | |
Intersegment gross sales (eliminations) | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | (46) | (33.6) | (30.5) | |
Intersegment gross sales (eliminations) | Professional | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 45.8 | 33.5 | 30.5 | |
Intersegment gross sales (eliminations) | Residential | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 0.2 | $ 0.1 | $ 0 |
Segment Data - Other Segment Op
Segment Data - Other Segment Operating Loss Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Interest expense | $ (58.7) | $ (35.7) | $ (28.7) |
Earnings from the company's wholly-owned domestic distribution company and other income, net | 28.5 | 12.5 | 10.2 |
Earnings before income taxes | 400.5 | 552.5 | 499.8 |
Other Activities | |||
Segment Reporting Information [Line Items] | |||
Corporate expenses | (151.8) | (126.3) | (112.4) |
Interest expense | (58.7) | (35.7) | (28.7) |
Earnings from the company's wholly-owned domestic distribution company and other income, net | 33 | 17.8 | 12.1 |
Earnings before income taxes | $ (177.5) | $ (144.2) | $ (129) |
Segment Data - Geographic Data
Segment Data - Geographic Data (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Geographic Data | |||
Net sales | $ 4,553.2 | $ 4,514.7 | $ 3,959.6 |
Long-lived assets | 641.7 | 571.7 | 487.7 |
United States | |||
Geographic Data | |||
Net sales | 3,605.5 | 3,635.5 | 3,132 |
Long-lived assets | 540.4 | 505.9 | 440.5 |
International Countries | |||
Geographic Data | |||
Net sales | 947.7 | 879.2 | 827.6 |
Long-lived assets | $ 101.3 | $ 65.8 | $ 47.2 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 4,553.2 | $ 4,514.7 | $ 3,959.6 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,605.5 | 3,635.5 | 3,132 |
International Countries | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 947.7 | 879.2 | 827.6 |
Equipment | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 4,069.2 | 4,048.6 | 3,518.3 |
Irrigation | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 484 | 466.1 | 441.3 |
Operating Segments | Professional | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,674.6 | 3,429.6 | 2,929.6 |
Operating Segments | Professional | United States | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 2,898.5 | 2,737.9 | 2,268.9 |
Operating Segments | Professional | International Countries | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 776.1 | 691.7 | 660.7 |
Operating Segments | Professional | Equipment | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 3,236.9 | 3,003 | 2,530.8 |
Operating Segments | Professional | Irrigation | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 437.7 | 426.6 | 398.8 |
Operating Segments | Residential | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 854.2 | 1,068.6 | 1,010.1 |
Operating Segments | Residential | United States | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 682.6 | 881.1 | 843.2 |
Operating Segments | Residential | International Countries | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 171.6 | 187.5 | 166.9 |
Operating Segments | Residential | Equipment | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 819.2 | 1,039.2 | 975.8 |
Operating Segments | Residential | Irrigation | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 35 | 29.4 | 34.3 |
Other Activities | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 24.4 | 16.5 | 19.9 |
Other Activities | United States | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 24.4 | 16.5 | 19.9 |
Other Activities | International Countries | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 0 | 0 | 0 |
Other Activities | Equipment | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 13.1 | 6.4 | 11.7 |
Other Activities | Irrigation | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 11.3 | $ 10.1 | $ 8.2 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Consignment inventory amount | $ 38.3 | $ 28.3 |
Contract with customer, liability | 25.6 | $ 28 |
Contract with customer, liability, revenue recognized | $ 14.7 | |
Minimum | Product Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Contract with customer, contract period | 30 days | |
Minimum | Service Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Contract with customer, contract period | 12 months | |
Minimum | Warranty Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Contract with customer, contract period | 12 months | |
Maximum | Product Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Contract with customer, contract period | 120 days | |
Maximum | Service Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Contract with customer, contract period | 60 months | |
Maximum | Warranty Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Contract with customer, contract period | 24 months |
Revenue - Performance Obligatio
Revenue - Performance Obligation (Details) $ in Millions | Oct. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 12 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 13.6 |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||
Oct. 31, 2023 USD ($) | Aug. 04, 2023 USD ($) | Oct. 31, 2023 USD ($) segment | Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | Jan. 13, 2022 USD ($) | |
Business Acquisition [Line Items] | ||||||
Number of operating segments | segment | 12 | |||||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 0 | $ 0 | $ 0 | |||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Non-cash impairment charges | |||||
Goodwill, impairment loss | $ 0 | $ 133,300,000 | 0 | 0 | ||
Indefinite-lived - trade names | 271,500,000 | 271,500,000 | 289,300,000 | |||
Goodwill | 450,800,000 | 450,800,000 | 583,300,000 | 421,700,000 | ||
Deferred tax assets, goodwill and intangible assets | 36,700,000 | 36,700,000 | ||||
Amortization expense for intangible assets | 35,700,000 | $ 33,900,000 | $ 23,800,000 | |||
Trade Name, Spartan | ||||||
Business Acquisition [Line Items] | ||||||
Indefinite-lived - trade names | 81,100,000 | 81,100,000 | ||||
Intimidator Reporting Unit | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 30,500,000 | $ 30,500,000 | ||||
Professional | ||||||
Business Acquisition [Line Items] | ||||||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 18,000,000 | |||||
Professional | Intimidator Reporting Unit | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill, impairment loss | $ 133,300,000 | |||||
Intimidator Group | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 163,700,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Changes in Net Carrying Amount of Goodwill (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Changes in the net carrying amount of goodwill | ||||
Goodwill as of the beginning of the fiscal period | $ 583,300,000 | $ 421,700,000 | ||
Goodwill acquired | 163,700,000 | |||
Non-cash impairment charge | $ 0 | (133,300,000) | 0 | $ 0 |
Translation adjustments | 800,000 | (2,100,000) | ||
Goodwill as of the end of the fiscal period | 450,800,000 | 450,800,000 | 583,300,000 | 421,700,000 |
Operating Segments | Professional | ||||
Changes in the net carrying amount of goodwill | ||||
Goodwill as of the beginning of the fiscal period | 573,000,000 | 411,100,000 | ||
Goodwill acquired | 163,700,000 | |||
Non-cash impairment charge | (133,300,000) | |||
Translation adjustments | 800,000 | (1,800,000) | ||
Goodwill as of the end of the fiscal period | 440,500,000 | 440,500,000 | 573,000,000 | 411,100,000 |
Operating Segments | Residential | ||||
Changes in the net carrying amount of goodwill | ||||
Goodwill as of the beginning of the fiscal period | 10,300,000 | 10,600,000 | ||
Goodwill acquired | 0 | |||
Non-cash impairment charge | 0 | |||
Translation adjustments | 0 | (300,000) | ||
Goodwill as of the end of the fiscal period | 10,300,000 | 10,300,000 | 10,300,000 | 10,600,000 |
Other Activities | ||||
Changes in the net carrying amount of goodwill | ||||
Goodwill as of the beginning of the fiscal period | 0 | 0 | ||
Goodwill acquired | 0 | |||
Non-cash impairment charge | 0 | |||
Translation adjustments | 0 | 0 | ||
Goodwill as of the end of the fiscal period | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Components of Other Intangible Assets (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Other Intangible Assets | ||
Estimated useful life | 13 years 3 months 18 days | 13 years 4 months 24 days |
Gross Carrying Amount | $ 471 | $ 464.3 |
Accumulated Amortization | (202.4) | (167.8) |
Net | 268.6 | 296.5 |
Indefinite-lived - trade names | 271.5 | 289.3 |
Total other intangible assets, gross | 742.5 | 753.6 |
Total other intangible assets, net | $ 540.1 | $ 585.8 |
Patents | ||
Other Intangible Assets | ||
Estimated useful life | 9 years 10 months 24 days | 9 years 10 months 24 days |
Gross Carrying Amount | $ 18.2 | $ 18.2 |
Accumulated Amortization | (16) | (15.3) |
Net | $ 2.2 | $ 2.9 |
Non-compete agreements | ||
Other Intangible Assets | ||
Estimated useful life | 5 years 6 months | 5 years 6 months |
Gross Carrying Amount | $ 6.9 | $ 6.8 |
Accumulated Amortization | (6.9) | (6.8) |
Net | $ 0 | $ 0 |
Customer-related | ||
Other Intangible Assets | ||
Estimated useful life | 15 years 9 months 18 days | 16 years |
Gross Carrying Amount | $ 327.5 | $ 321 |
Accumulated Amortization | (106.7) | (83.8) |
Net | $ 220.8 | $ 237.2 |
Developed technology | ||
Other Intangible Assets | ||
Estimated useful life | 7 years 1 month 6 days | 7 years 1 month 6 days |
Gross Carrying Amount | $ 102 | $ 101.9 |
Accumulated Amortization | (63.1) | (53) |
Net | $ 38.9 | $ 48.9 |
Trade names | ||
Other Intangible Assets | ||
Estimated useful life | 13 years 8 months 12 days | 13 years 9 months 18 days |
Gross Carrying Amount | $ 10.7 | $ 10.7 |
Accumulated Amortization | (4) | (3.4) |
Net | $ 6.7 | $ 7.3 |
Backlog and other | ||
Other Intangible Assets | ||
Estimated useful life | 7 months 6 days | 7 months 6 days |
Gross Carrying Amount | $ 5.7 | $ 5.7 |
Accumulated Amortization | (5.7) | (5.5) |
Net | $ 0 | $ 0.2 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets, Net - Future Amortization Expense (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Estimated amortization expense | ||
2024 | $ 34.5 | |
2025 | 31.7 | |
2026 | 30.5 | |
2027 | 25.6 | |
2028 | 22.3 | |
Thereafter | 124 | |
Net | $ 268.6 | $ 296.5 |
Indebtedness - Summary of Long
Indebtedness - Summary of Long Term Debt (Details) - USD ($) | Oct. 31, 2023 | Oct. 31, 2022 | Jun. 30, 2022 | Oct. 05, 2021 | Apr. 30, 2019 | Jun. 30, 1997 |
Debt Instrument [Line Items] | ||||||
Less: unamortized debt issuance costs | $ 2,700,000 | $ 3,300,000 | ||||
Long-term debt | 1,031,500,000 | 990,800,000 | ||||
Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Carrying amount of long-term debt | 40,000,000 | 0 | ||||
Aggregate principal amount of notes issued | 600,000,000 | |||||
Senior Notes | $270 million term loan, due October 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Carrying amount of long-term debt | 270,000,000 | 270,000,000 | ||||
Long-term debt | 270,000,000 | |||||
Aggregate principal amount of notes issued | 270,000,000 | $ 270,000,000 | ||||
Interest rate percentage | 2.50% | |||||
Senior Notes | $200 million term loan, due April 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Carrying amount of long-term debt | 200,000,000 | 200,000,000 | ||||
Aggregate principal amount of notes issued | 200,000,000 | |||||
Senior Notes | 3.81% series A senior notes, due June 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Carrying amount of long-term debt | $ 100,000,000 | 100,000,000 | ||||
Aggregate principal amount of notes issued | $ 100,000,000 | |||||
Interest rate percentage | 3.81% | 3.81% | ||||
Senior Notes | 3.91% series B senior notes, due June 2031 | ||||||
Debt Instrument [Line Items] | ||||||
Carrying amount of long-term debt | $ 100,000,000 | 100,000,000 | ||||
Aggregate principal amount of notes issued | $ 100,000,000 | |||||
Interest rate percentage | 3.91% | 3.91% | ||||
Senior Notes | 3.97% senior notes, due June 2032 | ||||||
Debt Instrument [Line Items] | ||||||
Carrying amount of long-term debt | $ 100,000,000 | 100,000,000 | ||||
Aggregate principal amount of notes issued | $ 100,000,000 | |||||
Interest rate percentage | 3.97% | 3.97% | ||||
Senior Notes | 6.625% senior notes, due May 2037 | ||||||
Debt Instrument [Line Items] | ||||||
Carrying amount of long-term debt | $ 124,200,000 | 124,100,000 | ||||
Interest rate percentage | 6.625% | |||||
Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount of notes issued | $ 175,000,000 | |||||
Interest rate percentage | 7.80% | |||||
Debentures | 7.8% debentures, due June 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Carrying amount of long-term debt | $ 100,000,000 | $ 100,000,000 | ||||
Long-term debt | $ 100,000,000 | |||||
Interest rate percentage | 7.80% | 7.80% |
Indebtedness - Schedule of Prin
Indebtedness - Schedule of Principal Payments (Details) $ in Millions | Oct. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 0 |
2025 | 37 |
2026 | 303 |
2027 | 270 |
2028 | 0 |
Thereafter | 425 |
Total principal payments | $ 1,035 |
Indebtedness - Narrative (Detai
Indebtedness - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2022 USD ($) d | Oct. 05, 2021 USD ($) | Apr. 30, 2019 USD ($) | Jun. 30, 1997 USD ($) instrument | Oct. 31, 2023 USD ($) | Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | Apr. 27, 2022 USD ($) | Jun. 01, 2018 USD ($) | Apr. 26, 2007 USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Total long-term debt | $ 1,031,500,000 | $ 990,800,000 | ||||||||
Debentures | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest expense, debt | 8,000,000 | 8,000,000 | $ 8,000,000 | |||||||
Aggregate principal amount of notes issued | $ 175,000,000 | |||||||||
Interest rate percentage | 7.80% | |||||||||
Amount paid to terminate forward-starting interest rate swap agreements | $ 23,700,000 | |||||||||
Number of terminated forward-starting interest rate swap agreements | instrument | 3 | |||||||||
Derivative, notional amount | $ 125,000,000 | |||||||||
Deferred income amount at the time of swap termination | $ 18,700,000 | |||||||||
$270 million term loan, due October 2026 | $500.0 million term loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, term | 5 years | |||||||||
Total long-term debt | 270,000,000 | |||||||||
Interest expense, debt | 15,900,000 | 5,700,000 | 200,000 | |||||||
Aggregate principal amount of notes issued | $ 270,000,000 | $ 270,000,000 | ||||||||
Accordion feature, increase limit | $ 100,000,000 | |||||||||
Interest rate percentage | 2.50% | |||||||||
Debt, weighted average interest rate | 6.30% | |||||||||
$200 million term loan, due April 2027 | $500.0 million term loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest expense, debt | $ 11,700,000 | 3,100,000 | ||||||||
Aggregate principal amount of notes issued | $ 200,000,000 | |||||||||
Interest rate percentage | 2.50% | |||||||||
Debt, weighted average interest rate | 6.30% | |||||||||
3.81% series A senior notes, due June 2029 | $500.0 million term loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount of notes issued | $ 100,000,000 | |||||||||
Interest rate percentage | 3.81% | 3.81% | ||||||||
3.91% series B senior notes, due June 2031 | $500.0 million term loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount of notes issued | $ 100,000,000 | |||||||||
Interest rate percentage | 3.91% | 3.91% | ||||||||
Series A and Series B Senior Notes | $500.0 million term loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest expense, debt | $ 7,700,000 | 7,700,000 | 7,700,000 | |||||||
Debt instrument, redemption price, percentage | 100% | |||||||||
Series A and Series B Senior Notes | $500.0 million term loan | Debt Instrument, Redemption, Period One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, redemption price, percentage | 10% | |||||||||
Series A and Series B Senior Notes | $500.0 million term loan | Debt Instrument, Redemption, Period Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, redemption price, percentage | 100% | |||||||||
Series A and Series B Senior Notes | $500.0 million term loan | Debt Instrument, Redemption, Period Three | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, redemption price, percentage | 100% | |||||||||
3.97% senior notes, due June 2032 | $500.0 million term loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest expense, debt | $ 4,000,000 | 1,300,000 | ||||||||
Aggregate principal amount of notes issued | $ 100,000,000 | |||||||||
Interest rate percentage | 3.97% | 3.97% | ||||||||
Debt instrument, redemption price, percentage | 10% | |||||||||
Debt instrument, prepaid principal, percentage | 100% | |||||||||
Debt instrument, repayment period | d | 90 | |||||||||
Coupon 7.125% Debt Notes | Debentures | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, term | 10 years | |||||||||
Aggregate principal amount of notes issued | $ 75,000,000 | |||||||||
Interest rate percentage | 7.125% | |||||||||
7.8% debentures, due June 2027 | Debentures | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, term | 30 years | |||||||||
Total long-term debt | $ 100,000,000 | |||||||||
Interest rate percentage | 7.80% | 7.80% | ||||||||
6.625% Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest expense, debt | $ 8,400,000 | 8,400,000 | 8,400,000 | |||||||
Debt instrument, basis spread on variable rate | 0.30% | |||||||||
6.625% Senior Notes | $500.0 million term loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount of notes issued | $ 125,000,000 | |||||||||
Interest rate percentage | 6.625% | 6.625% | ||||||||
Percentage of par value at which debt was issued | 98.513% | |||||||||
Debt discount, unamortized | $ 1,900,000 | |||||||||
Effective interest rate | 6.741% | |||||||||
Redemption price as a percentage of the principal amount upon the occurrence of both a change of control and downgrade of rating | 101% | |||||||||
Revolving Credit Facility | Unsecured Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, term | 5 years | |||||||||
Maximum borrowing capacity under credit facility | $ 600,000,000 | $ 600,000,000 | ||||||||
Accordion feature | 300,000,000 | |||||||||
Total long-term debt | $ 40,000,000 | 0 | ||||||||
Unused borrowing capacity | $ 557,400,000 | 596,900,000 | ||||||||
Interest rate on outstanding borrowings | 6.34% | |||||||||
Interest expense, debt | $ 5,700,000 | 2,400,000 | $ 0 | |||||||
Standby Letters of Credit | Unsecured Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity under credit facility | 10,000,000 | |||||||||
Total long-term debt | $ 2,600,000 | $ 3,100,000 | ||||||||
Swingline Loan | Unsecured Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity under credit facility | $ 30,000,000 |
Investment in Joint Venture (De
Investment in Joint Venture (Details) - Red Iron Acceptance, LLC - USD ($) | Oct. 31, 2023 | Oct. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Portion owned by Toro | 45% | |
Portion owned by TCFIF | 55% | |
Maximum borrowing capacity under credit facility | $ 1,350,000,000 | |
Investment in joint venture | $ 50,600,000 | $ 39,300,000 |
Income Taxes - Earnings Before
Income Taxes - Earnings Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Earnings before income taxes: | |||
United States | $ 345 | $ 491.3 | $ 446.2 |
Foreign | 55.5 | 61.2 | 53.6 |
Total earnings before income taxes | $ 400.5 | $ 552.5 | $ 499.8 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Statutory Federal Income Tax Rate (Details) | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory federal income tax rate | 21% | 21% | 21% |
Excess deduction for stock-based compensation | (1.10%) | (0.40%) | (1.50%) |
State and local income taxes, net of federal benefit | 1.80% | 2% | 1.40% |
Foreign operations | (0.70%) | (0.70%) | (0.50%) |
Federal research tax credit | (2.30%) | (1.30%) | (1.40%) |
Foreign-derived intangible income | (1.10%) | (0.70%) | (0.90%) |
Other, net | 0.10% | (0.10%) | (0.10%) |
Effective tax rate | 17.70% | 19.80% | 18% |
Income Taxes - Components of th
Income Taxes - Components of the Provisions for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Current provision: | |||
Federal | $ 94.4 | $ 94.7 | $ 90.2 |
State | 17 | 19.1 | 16 |
Foreign | 7.3 | 7.7 | 9.2 |
Total current provision | 118.7 | 121.5 | 115.4 |
Deferred (benefit) provision: | |||
Federal | (37.8) | (7.4) | (18.4) |
State | (10.3) | (4.9) | (6.5) |
Foreign | 0.2 | 0 | (0.6) |
Total deferred benefit | (47.9) | (12.3) | (25.5) |
Total provision for income taxes | $ 70.8 | $ 109.2 | $ 89.9 |
Income Taxes - Tax Effects of T
Income Taxes - Tax Effects of Temporary Differences (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Deferred income tax assets: | ||
Compensation and benefits | $ 32.5 | $ 32.9 |
Warranty and insurance | 37.6 | 35.4 |
Lease liabilities | 35.3 | 20.2 |
Advertising and sales promotions and incentives | 16.5 | 7.2 |
Inventory | 14.4 | 36.4 |
Deferred revenue | 0.3 | 3.3 |
Other | 3 | 0 |
Net operating losses and other carryforwards | 5.3 | 6.4 |
Research and Experimentation | 35.4 | 0 |
Valuation allowance | (3.3) | (3.2) |
Deferred income tax assets | 177 | 138.6 |
Deferred income tax liabilities: | ||
Right-of-use assets | (34.8) | (19.5) |
Depreciation | (60) | (51.9) |
Amortization | (68.4) | (102.4) |
Other | 0 | (3.8) |
Deferred income tax liabilities | (163.2) | (177.6) |
Deferred income tax assets (liabilities), net | $ 13.8 | |
Deferred income tax assets (liabilities), net | $ (39) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Income Taxes [Line Items] | ||
Net operating losses and other carryforwards | $ 5.3 | $ 6.4 |
Valuation allowance, deferred tax asset, increase | 0.1 | |
Undistributed earnings of foreign subsidiaries | 41.8 | |
Unrecognized tax benefits | 3.7 | $ 3.3 |
Accrued interest and penalties for unrecognized tax benefits | 1 | |
Potential benefits that would affect the effective tax rate | 3.8 | |
Domestic Tax Authority | ||
Income Taxes [Line Items] | ||
Net operating losses and other carryforwards | 4.1 | |
Tax credit carryforwards | 1.9 | |
Foreign Jurisdictions | ||
Income Taxes [Line Items] | ||
Net operating losses and other carryforwards | 5.1 | |
Net operating loss carryforwards in foreign jurisdictions not subject to expiration | 5 | |
Net operating loss carryforwards subject to expiration | $ 0.1 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) $ in Millions | 12 Months Ended |
Oct. 31, 2023 USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Balance at the beginning of the period | $ 3.3 |
Increase as a result of tax positions taken during a prior period | 0.2 |
Increase as a result of tax positions taken during the current period | 0.6 |
Reductions as a result of statute of limitations lapses | (0.4) |
Balance at the end of the period | $ 3.7 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, authorized (in shares) | 175,000,000 | 175,000,000 | |
Deferred compensation plan, deferral percentage | 100% | ||
Deferred compensation plan, vested percentage | 100% | ||
2022 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, authorized (in shares) | 1,250,000 | ||
Common stock available for future grants (in shares) | 3,046,609 | ||
Share-based Payment Arrangement, Nonemployee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 10,329 | 6,453 | 8,070 |
Stock option awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost not yet recognized | $ 7.5 | ||
Period for recognition | 2 years 14 days | ||
Stock option awards | Certain employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Term of award | 10 years | ||
Stock option awards | Nonemployee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period for non-employee director after which fair value of options granted is fully expensed on the date of grant | 10 years | ||
Performance share awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost not yet recognized | $ 4.2 | ||
Period for recognition | 1 year 7 months 17 days | ||
Performance goal period | 3 years | ||
Granted (in shares) | 66,131,000 | ||
Restricted stock unit awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Compensation cost not yet recognized | $ 9.3 | ||
Period for recognition | 2 years 2 months 23 days | ||
Granted (in shares) | 99,081,000 | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights percentage | 200% | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights percentage | 0% | ||
Share-based Compensation Award, Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights percentage | 33.33% | ||
Share-based Compensation Award, Tranche One | Restricted stock unit awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights percentage | 33.33% | ||
Share-based Compensation Award, Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights percentage | 33.33% | ||
Share-based Compensation Award, Tranche Two | Restricted stock unit awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights percentage | 33.33% | ||
Share-based Compensation Award, Tranche Three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights percentage | 33.33% | ||
Share-based Compensation Award, Tranche Three | Restricted stock unit awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights percentage | 33.33% |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation Costs Related to Stock-Based Awards (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation cost for stock-based awards | $ 19.4 | $ 22.1 | $ 21.8 |
Related tax benefit from stock-based compensation awards | 4.7 | 5.3 | 5.2 |
Stock option awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation cost for stock-based awards | 8.5 | 10 | 10 |
Performance share awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation cost for stock-based awards | 2.9 | 5.8 | 6.8 |
Restricted stock unit awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation cost for stock-based awards | 6.9 | 5.7 | 4.3 |
Unrestricted common stock awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation cost for stock-based awards | $ 1.1 | $ 0.6 | $ 0.7 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-average Valuation Assumptions For Options Granted (Details) - $ / shares | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Expected life of option in years | 6 years 3 months 21 days | 6 years 2 months 8 days | 6 years 2 months 15 days |
Expected stock price volatility | 25.20% | 23.74% | 23.26% |
Risk-free interest rate | 3.79% | 1.31% | 0.55% |
Expected dividend yield | 0.95% | 0.94% | 0.86% |
Per share weighted-average fair value at date of grant (in dollars per share) | $ 33.21 | $ 22.55 | $ 19.39 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Stock Option Awards | ||
Outstanding at the beginning of the period (in shares) | 2,986,033 | |
Granted (in shares) | 475,620 | |
Exercised (in shares) | (389,923) | |
Forfeited (in shares) | (98,300) | |
Outstanding at the end of the period (in shares) | 2,973,430 | 2,986,033 |
Exercisable at the end of the period (in shares) | 2,078,025 | |
Weighted-Average Exercise Price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 71.23 | |
Granted (in dollars per share) | 110.87 | |
Exercised (in dollars per share) | 52.76 | |
Forfeited (in dollars per share) | 107.67 | |
Outstanding at the end of the period (in dollars per share) | 78.80 | $ 71.23 |
Exercisable at the end of the period (in dollars per share) | $ 68.37 | |
Additional Disclosures | ||
Outstanding, Weighted-average contractual life | 5 years 4 months 24 days | 6 years |
Exercisable at the end of the period, Weighted-average contractual life | 4 years 4 months 24 days | |
Outstanding of the beginning of the period, aggregate intrinsic value | $ 102.1 | |
Outstanding of the end of the period, aggregate intrinsic value | 32 | $ 102.1 |
Exercisable at the end of the period, aggregate intrinsic value | $ 32 |
Stock-Based Compensation - Mark
Stock-Based Compensation - Market and Intrinsic Value of Options Exercised (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Market value of stock options exercised | $ 43.4 | $ 20.1 | $ 40.1 |
Intrinsic value of stock options exercised | $ 22.8 | $ 9.8 | $ 26 |
Stock-Based Compensation - Fact
Stock-Based Compensation - Factors Related to the Company's Performance Share Awards (Details) - Performance share awards - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average per award fair value at date of grant (in dollars per share) | $ 112.14 | $ 98.41 | $ 90.59 |
Fair value of restricted stock units vested | $ 5.3 | $ 4.8 | $ 3.4 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Activity For Unvested Performance Share Awards (Details) - Performance share awards - $ / shares shares in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Performance Shares | |||
Unvested at the beginning of the period (in shares) | 195,600 | ||
Granted (in shares) | 66,131 | ||
Vested (in shares) | (46,831) | ||
Unvested at the end of the period (in shares) | 186,760 | 195,600 | |
Weighted-Average Fair Value at Date of Grant | |||
Unvested at the beginning of the period (in dollars per share) | $ 88.63 | ||
Granted (in dollars per share) | 112.14 | $ 98.41 | $ 90.59 |
Vested (in dollars per share) | 77.33 | ||
Unvested at the end of the period (in dollars per share) | $ 100.57 | $ 88.63 |
Stock-Based Compensation - Fa_2
Stock-Based Compensation - Factors Related to the Company's Stock and Restricted Stock Units (Details) - Restricted stock unit awards - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average per award fair value at date of grant (in dollars per share) | $ 103.40 | $ 88.90 | $ 97.87 |
Fair value of restricted stock units vested | $ 6.2 | $ 5.5 | $ 4.5 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Activity For Unvested Restricted Stock and Restricted Stock Units (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Performance share awards | |||
Restricted Stock Units | |||
Unvested at the beginning of the period (in shares) | 195,600 | ||
Granted (in shares) | 66,131 | ||
Vested (in shares) | (46,831) | ||
Forfeited (in shares) | (28,140) | ||
Unvested at the end of the period (in shares) | 186,760 | 195,600 | |
Weighted-Average Fair Value at Date of Grant | |||
Unvested at the beginning of the period (in dollars per share) | $ 88.63 | ||
Granted (in dollars per share) | 112.14 | $ 98.41 | $ 90.59 |
Vested (in dollars per share) | 77.33 | ||
Forfeited (in dollars per share) | 106.16 | ||
Unvested at the end of the period (in dollars per share) | $ 100.57 | $ 88.63 | |
Restricted stock unit awards | |||
Restricted Stock Units | |||
Unvested at the beginning of the period (in shares) | 150,677 | ||
Granted (in shares) | 99,081 | ||
Vested (in shares) | (57,727) | ||
Forfeited (in shares) | (12,205) | ||
Unvested at the end of the period (in shares) | 179,826 | 150,677 | |
Weighted-Average Fair Value at Date of Grant | |||
Unvested at the beginning of the period (in dollars per share) | $ 90.39 | ||
Granted (in dollars per share) | 103.40 | $ 88.90 | $ 97.87 |
Vested (in dollars per share) | 89.16 | ||
Forfeited (in dollars per share) | 93.26 | ||
Unvested at the end of the period (in dollars per share) | $ 97.66 | $ 90.39 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | Dec. 13, 2022 | Dec. 04, 2018 | |
Stock repurchase program | |||||
Payments for repurchase of common stock | $ 60 | $ 140 | $ 302.3 | ||
Repurchase of shares (in shares) | 611,195 | 1,551,986 | 3,010,424 | ||
Treasury shares | |||||
Treasury shares held (in shares) | 23,888,294 | 23,774,518 | |||
Cost of treasury shares | $ 1,743.6 | $ 1,715 | |||
December 2018 Stock Repurchase Program | |||||
Stock repurchase program | |||||
Number of shares authorized to be repurchased (in shares) | 5,000,000 | ||||
Repurchase of shares (in shares) | 577,115 | 1,525,856 | |||
Number of shares remained authorized for repurchase (in shares) | 1,949,491 | ||||
December 2022 Stock Repurchase Program | |||||
Stock repurchase program | |||||
Number of shares authorized to be repurchased (in shares) | 5,000,000 | ||||
Repurchase of shares (in shares) | 0 |
Stockholders' Equity - Componen
Stockholders' Equity - Components of AOCL (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Accumulated other comprehensive loss (AOCL) | ||
Foreign currency translation adjustments | $ 41.7 | $ 51.3 |
Pension benefits | 4.3 | 3.6 |
Cash flow derivative instruments | (9) | (21.8) |
Total accumulated other comprehensive loss | $ 37 | $ 33.1 |
Stockholders' Equity - Compon_2
Stockholders' Equity - Components and Activity of AOCL (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Components and activity of accumulated other comprehensive loss | |||
Balance as of the beginning of the fiscal period | $ (1,351.7) | $ (1,151.1) | $ (1,114.8) |
Other comprehensive (income) loss before reclassifications | (11.4) | 12.2 | |
Amounts reclassified from AOCL | 15.3 | (5.1) | |
Net current period other comprehensive (income) loss | 3.9 | 7.1 | (8.3) |
Balance as of the end of the fiscal period | (1,510.9) | (1,351.7) | (1,151.1) |
Total | |||
Components and activity of accumulated other comprehensive loss | |||
Balance as of the beginning of the fiscal period | 33.1 | 26 | 34.3 |
Net current period other comprehensive (income) loss | 3.9 | 7.1 | (8.3) |
Balance as of the end of the fiscal period | 37 | 33.1 | 26 |
Foreign Currency Translation Adjustments | |||
Components and activity of accumulated other comprehensive loss | |||
Balance as of the beginning of the fiscal period | 51.3 | 19.5 | |
Other comprehensive (income) loss before reclassifications | (9.6) | 31.8 | |
Amounts reclassified from AOCL | 0 | 0 | |
Net current period other comprehensive (income) loss | (9.6) | 31.8 | |
Balance as of the end of the fiscal period | 41.7 | 51.3 | 19.5 |
Pension Benefits | |||
Components and activity of accumulated other comprehensive loss | |||
Balance as of the beginning of the fiscal period | 3.6 | 3.9 | |
Other comprehensive (income) loss before reclassifications | 0.7 | (0.3) | |
Amounts reclassified from AOCL | 0 | 0 | |
Net current period other comprehensive (income) loss | 0.7 | (0.3) | |
Balance as of the end of the fiscal period | 4.3 | 3.6 | 3.9 |
Cash Flow Derivative Instruments | |||
Components and activity of accumulated other comprehensive loss | |||
Balance as of the beginning of the fiscal period | (21.8) | 2.6 | |
Other comprehensive (income) loss before reclassifications | (2.5) | (19.3) | |
Amounts reclassified from AOCL | 15.3 | (5.1) | |
Net current period other comprehensive (income) loss | 12.8 | (24.4) | |
Balance as of the end of the fiscal period | $ (9) | $ (21.8) | $ 2.6 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | |||
Nov. 19, 2020 | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
COMMITMENTS AND CONTINGENT LIABILITIES | ||||
Amount of noncancelable purchase commitments | $ 28,700,000 | |||
Related Party | ||||
COMMITMENTS AND CONTINGENT LIABILITIES | ||||
Receivables, net | 34,400,000 | $ 17,700,000 | ||
Tornado | ||||
COMMITMENTS AND CONTINGENT LIABILITIES | ||||
Amount of noncancelable purchase commitments | 35,000,000 | |||
Red Iron And TCFCFC | ||||
COMMITMENTS AND CONTINGENT LIABILITIES | ||||
Repurchase commitment, maximum amount | 7,500,000 | |||
Briggs & Stratton Power Products Groups, LLC | ||||
COMMITMENTS AND CONTINGENT LIABILITIES | ||||
Gain (loss) related to litigation settlement | $ 33,650,000 | |||
Wholesale Financing | ||||
COMMITMENTS AND CONTINGENT LIABILITIES | ||||
Receivables purchased by third party financing company from the company | 545,400,000 | 633,500,000 | $ 460,500,000 | |
Receivables financed by third party financing company, excluding Red Iron, outstanding | 234,700,000 | 220,000,000 | ||
Maximum amount of contingent liability to repurchase inventory related receivables under limited inventory repurchase agreements | 32,200,000 | 80,000,000 | ||
End-User Financing | ||||
COMMITMENTS AND CONTINGENT LIABILITIES | ||||
Contingent liabilities for residual value or credit collection risk | 0 | |||
End-User Financing | Maximum | ||||
COMMITMENTS AND CONTINGENT LIABILITIES | ||||
Exposure for credit collection | 5,200,000 | 8,600,000 | ||
Red Iron Acceptance, LLC | ||||
COMMITMENTS AND CONTINGENT LIABILITIES | ||||
Net amount of receivables financed for dealers and distributors | 2,789,500,000 | 2,627,500,000 | $ 2,282,600,000 | |
Net amount outstanding of receivables financed for dealers and distributors | $ 1,019,000,000 | $ 776,100,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Oct. 31, 2023 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, renewal term | 2 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, renewal term | 10 years |
Leases - Lease Expense Incurred
Leases - Lease Expense Incurred (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Leases [Abstract] | |||
Operating lease expense | $ 24 | $ 22.6 | $ 20.4 |
Short-term lease expense | 4.5 | 4.5 | 2.9 |
Variable lease expense | 0 | 0 | 0.1 |
Total lease expense | $ 28.5 | $ 27.1 | $ 23.4 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow and Other Lease Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Leases [Abstract] | |||
Right-of-use assets obtained in exchange for lease obligations | $ 67.6 | $ 27 | $ 5.4 |
Operating cash flows for amounts included in the measurement of lease liabilities | $ 20.9 | $ 19.2 | $ 18.9 |
Leases - Summary of Other Lease
Leases - Summary of Other Lease Information (Details) | Oct. 31, 2023 | Oct. 31, 2022 |
Leases [Abstract] | ||
Weighted-average remaining lease term of operating leases in years | 9 years 3 months 18 days | 6 years |
Weighted-average discount rate of operating leases | 4.83% | 3.53% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Operating Lease Payments (Details) $ in Millions | Oct. 31, 2023 USD ($) |
ASC Topic 842 Leases | |
2024 | $ 25.1 |
2025 | 23.3 |
2026 | 17.4 |
2027 | 13.9 |
2028 | 11.8 |
Thereafter | 69.6 |
Total future minimum operating lease payments | 161.1 |
Less: imputed interest | 29.5 |
Present value of operating lease liabilities | $ 131.6 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Narrative (Details) $ in Millions | 12 Months Ended |
Oct. 31, 2023 USD ($) | |
Summary of cash flow hedge activity | |
Maximum time limit for cash flow hedge | 2 years |
Cash flow hedge effectiveness testing, grace period | 2 months |
Gains for AOCL to earnings | $ 8.6 |
Forward currency contracts | |
Summary of cash flow hedge activity | |
Derivative, notional amount | $ 307.5 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Fair Value of Derivatives (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Fair value of derivatives | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other current assets | Prepaid expenses and other current assets |
Asset derivatives | $ 16.8 | $ 33.2 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities | Accrued Liabilities |
Liability derivatives | $ 0 | $ 0 |
Forward currency contracts | ||
Fair value of derivatives | ||
Asset derivatives | 16.8 | 33.2 |
Liability derivatives | 0 | 0 |
Forward currency contracts | Derivatives Designated as Hedging Instruments | ||
Fair value of derivatives | ||
Asset derivatives | 13.7 | 27.7 |
Liability derivatives | 0 | 0 |
Forward currency contracts | Derivatives Not Designated as Hedging Instruments | ||
Fair value of derivatives | ||
Asset derivatives | 3.1 | 5.5 |
Liability derivatives | $ 0 | $ 0 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Effects of Master Netting Arrangements (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Derivative assets: | ||
Net amount of derivative assets | $ 16.8 | $ 33.2 |
Derivative liabilities: | ||
Net amount of derivative liabilities | 0 | 0 |
Forward currency contracts | ||
Derivative assets: | ||
Gross amount of derivative assets | 16.8 | 33.2 |
Derivative liabilities offsetting derivative assets | 0 | 0 |
Net amount of derivative assets | 16.8 | 33.2 |
Derivative liabilities: | ||
Gross amount of derivative liabilities | 0 | 0 |
Derivative assets offsetting derivative liabilities | 0 | 0 |
Net amount of derivative liabilities | $ 0 | $ 0 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Impacts and Location of Amounts Reclassified From AOCL (Details) - Cash Flow Hedging - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain Reclassified from AOCL into Income | $ 15.3 | $ 5.1 |
(Loss) Gain Recognized in OCI on Derivatives | (12.8) | 24.4 |
Forward currency contracts | Net sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain Reclassified from AOCL into Income | 10.8 | 4.5 |
(Loss) Gain Recognized in OCI on Derivatives | (12.9) | 21.2 |
Forward currency contracts | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain Reclassified from AOCL into Income | 4.5 | 0.6 |
(Loss) Gain Recognized in OCI on Derivatives | $ 0.1 | $ 3.2 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Impact and Location of Derivative Instruments on Consolidated Statements of Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Derivative Instruments and Hedging Activities | |||
Net sales | $ 4,553.2 | $ 4,514.7 | $ 3,959.6 |
Cost of sales | $ (2,975.6) | $ (3,010.1) | $ (2,621.1) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Noncash Income (Expense) | Other Noncash Income (Expense) | |
Cash Flow Hedging | |||
Derivative Instruments and Hedging Activities | |||
Amount of gain reclassified from AOCL into earnings | $ 15.3 | $ 5.1 | |
Cash Flow Hedging | Net sales | |||
Derivative Instruments and Hedging Activities | |||
Net sales | 4,553.2 | 4,514.7 | |
Cash Flow Hedging | Net sales | Forward currency contracts | |||
Derivative Instruments and Hedging Activities | |||
Amount of gain reclassified from AOCL into earnings | 10.8 | 4.5 | |
Gain on components excluded from effectiveness testing recognized in earnings based on changes in fair value | 2.2 | (1.1) | |
Cash Flow Hedging | Cost of sales | |||
Derivative Instruments and Hedging Activities | |||
Cost of sales | (2,975.6) | (3,010.1) | |
Cash Flow Hedging | Cost of sales | Forward currency contracts | |||
Derivative Instruments and Hedging Activities | |||
Amount of gain reclassified from AOCL into earnings | 4.5 | 0.6 | |
Gain on components excluded from effectiveness testing recognized in earnings based on changes in fair value | 2.6 | 1.7 | |
Derivatives Not Designated as Hedging Instruments | |||
Derivative Instruments and Hedging Activities | |||
Total (loss) gain on derivatives not designated as cash flow hedging instruments | (6.3) | 4.2 | |
Derivatives Not Designated as Hedging Instruments | Forward currency contracts | |||
Derivative Instruments and Hedging Activities | |||
Total (loss) gain on derivatives not designated as cash flow hedging instruments | $ (6.3) | $ 4.2 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Assets: | ||
Forward currency contracts | $ 16.8 | $ 33.2 |
Liabilities: | ||
Forward currency contracts | 0 | 0 |
Forward currency contracts | ||
Assets: | ||
Forward currency contracts | 16.8 | 33.2 |
Liabilities: | ||
Forward currency contracts | 0 | 0 |
Measured on a recurring basis | ||
Assets: | ||
Total assets | 16.8 | 33.2 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Measured on a recurring basis | Forward currency contracts | ||
Assets: | ||
Forward currency contracts | 16.8 | 33.2 |
Liabilities: | ||
Forward currency contracts | 0 | 0 |
Measured on a recurring basis | Level 1 | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Measured on a recurring basis | Level 1 | Forward currency contracts | ||
Assets: | ||
Forward currency contracts | 0 | 0 |
Liabilities: | ||
Forward currency contracts | 0 | 0 |
Measured on a recurring basis | Level 2 | ||
Assets: | ||
Total assets | 16.8 | 33.2 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Measured on a recurring basis | Level 2 | Forward currency contracts | ||
Assets: | ||
Forward currency contracts | 16.8 | 33.2 |
Liabilities: | ||
Forward currency contracts | 0 | 0 |
Measured on a recurring basis | Level 3 | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Measured on a recurring basis | Level 3 | Forward currency contracts | ||
Assets: | ||
Forward currency contracts | 0 | 0 |
Liabilities: | ||
Forward currency contracts | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt bearing fixed interest | $ 524.2 | $ 524.1 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 478.2 | $ 489.8 |
Employee Retirement Plans (Deta
Employee Retirement Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Plan expenses | $ 38.1 | $ 35.3 | $ 28.5 |
Projected benefit obligation | 18.3 | 18.9 | |
Fair value of the plan assets | 17.6 | 18.4 | |
Underfunded status of plans | 0.7 | 0.6 | |
Net cost and (reversal of cost) recognized | $ 0.2 | $ (0.2) | $ (0.1) |