Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Jul. 31, 2017 | Sep. 30, 2017 | Jan. 31, 2017 | |
Entity Information [Line Items] | |||
Entity Registrant Name | Oil-Dri Corp of America | ||
Entity Central Index Key | 74,046 | ||
Current Fiscal Year End Date | --07-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jul. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 166,622,000 | ||
Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 5,107,796 | ||
Common Class B | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 2,188,771 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2017 | Jul. 31, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 9,095 | $ 18,629 |
Short-term investments | 23,576 | 10,184 |
Accounts receivable, less allowance of $748 and $753 in 2017 and 2016, respectively | 32,750 | 30,386 |
Inventories | 22,615 | 23,251 |
Deferred income taxes | 2,787 | 3,884 |
Prepaid repairs expense | 3,890 | 3,938 |
Prepaid expenses and other assets | 2,304 | 901 |
Total Current Assets | 97,017 | 91,173 |
Property, Plant and Equipment | ||
Buildings and leasehold improvements | 37,284 | 36,776 |
Machinery and equipment | 136,900 | 137,479 |
Office furniture and equipment | 10,356 | 10,986 |
Vehicles | 13,615 | 13,108 |
Gross depreciable assets | 198,155 | 198,349 |
Less accumulated depreciation and amortization | (140,411) | (137,314) |
Net depreciable assets | 57,744 | 61,035 |
Construction in progress | 9,649 | 2,831 |
Land and mineral rights | 16,640 | 16,845 |
Total Property, Plant and Equipment, Net | 84,033 | 80,711 |
Other Assets | ||
Goodwill | 9,034 | 9,034 |
Trademarks and patents, net of accumulated amortization of $238 and $261 in 2017 and 2016, respectively | 1,223 | 916 |
Customer list, net of accumulated amortization of $4,601 and $3,460 in 2017 and 2016, respectively | 3,184 | 4,325 |
Deferred income taxes | 11,609 | 12,754 |
Other | 6,475 | 5,902 |
Total Other Assets | 31,525 | 32,931 |
Total Assets | 212,575 | 204,815 |
Current Liabilities | ||
Current maturities of notes payable | 3,083 | 3,083 |
Accounts payable | 9,594 | 6,635 |
Dividends payable | 1,553 | 1,477 |
Accrued expenses | ||
Salaries, wages and commissions | 7,917 | 8,656 |
Trade promotions and advertising | 2,253 | 2,855 |
Freight | 1,606 | 1,579 |
Other | 6,948 | 6,455 |
Total Current Liabilities | 32,954 | 30,740 |
Noncurrent Liabilities | ||
Notes payable, net of unamortized debt issuance costs of $89 and $118 at July 31,2017 and July 31, 2016, respectively | 9,161 | 12,215 |
Deferred compensation | 11,537 | 10,504 |
Pension and postretirement benefits | 29,161 | 32,492 |
Other | 3,725 | 3,313 |
Total Noncurrent Liabilities | 53,584 | 58,524 |
Total Liabilities | 86,538 | 89,264 |
Stockholders’ Equity | ||
Additional paid-in capital | 36,242 | 34,294 |
Retained earnings | 154,735 | 149,945 |
Accumulated Other Comprehensive Loss | ||
Pension and postretirement benefits | (10,327) | (13,867) |
Cumulative translation adjustment | 35 | (155) |
Total Accumulated Other Comprehensive Loss | (10,292) | (14,022) |
Less Treasury Stock, at cost (2,907,307 Common and 324,741 Class B shares in 2017 and 2,912,953 Common and 324,741 Class B shares in 2016) | (55,701) | (55,716) |
Total Stockholders' Equity | 126,037 | 115,551 |
Total Liabilities and Stockholders’ Equity | 212,575 | 204,815 |
Common Stock | ||
Stockholders’ Equity | ||
Common Stock, par value $.10 | 802 | 798 |
Common Class B | ||
Stockholders’ Equity | ||
Common Stock, par value $.10 | $ 251 | $ 252 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet Parentheticals (Parentheticals) - USD ($) $ in Thousands | Jul. 31, 2017 | Jul. 31, 2016 |
Current Assets | ||
Allowance for doubtful accounts | $ 748 | $ 753 |
Other Assets | ||
Trademarks and patents accumulated amortization | 238 | 261 |
Customer list accumulated amortization | 4,601 | 3,460 |
Noncurrent Liabilities | ||
Debt Issuance Costs, Noncurrent, Net | $ 89 | $ 118 |
Stockholders’ Equity | ||
Common Stock, par value per share | $ 0.10 | $ 0.10 |
Common Stock | ||
Stockholders’ Equity | ||
Common Stock, par value per share | $ 0.10 | $ 0.10 |
Common Stock, shares issued | 8,015,166 | 7,982,243 |
Treasury Stock, shares | 2,907,370 | 2,912,953 |
Common Class B | ||
Stockholders’ Equity | ||
Common Stock, par value per share | $ 0.10 | $ 0.10 |
Common Stock, shares issued | 2,513,512 | 2,515,735 |
Treasury Stock, shares | 324,741 | 324,741 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Net Sales | $ 262,307 | $ 262,313 | $ 261,402 |
Cost of Sales | (188,595) | (185,164) | (201,245) |
Gross Profit | 73,712 | 77,149 | 60,157 |
Selling, General and Administrative Expenses | (58,482) | (61,736) | (45,004) |
Income from Operations | 15,230 | 15,413 | 15,153 |
Other Income (Expense) | |||
Interest income | 95 | 29 | 13 |
Interest expense | (888) | (1,035) | (1,327) |
Foreign exchange loss | (184) | (384) | (349) |
Other, net | 292 | 334 | 679 |
Total Other Expense, Net | (685) | (1,056) | (984) |
Income Before Income Taxes | 14,545 | 14,357 | 14,169 |
Income Tax Expense | (3,753) | (744) | (2,801) |
Net income | $ 10,792 | $ 13,613 | $ 11,368 |
Net Income Per Share | |||
Diluted Common | $ 1.47 | $ 1.87 | $ 1.59 |
Average Shares Outstanding | |||
Diluted Common (in shares) | 7,158 | 7,094 | 7,037 |
Basic Common | |||
Net Income Per Share | |||
Basic | $ 1.60 | $ 2.04 | $ 1.73 |
Average Shares Outstanding | |||
Basic (in shares) | 5,017 | 4,986 | 4,955 |
Basic Class B Common | |||
Net Income Per Share | |||
Basic | $ 1.20 | $ 1.53 | $ 1.30 |
Average Shares Outstanding | |||
Basic (in shares) | 2,083 | 2,050 | 2,019 |
Consolidate Statements of Compr
Consolidate Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Net Income | $ 10,792 | $ 13,613 | $ 11,368 |
Other Comprehensive Income (Loss): | |||
Unrealized loss on marketable securities | 0 | 0 | (114) |
Pension and postretirement benefits (net of tax) | 3,540 | (4,892) | (343) |
Cumulative translation adjustment | 190 | 115 | (525) |
Other Comprehensive Loss | 3,730 | (4,777) | (982) |
Comprehensive Income | $ 14,522 | $ 8,836 | $ 10,386 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders Equity Statement - USD ($) $ in Thousands | Total | Common & Class B Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss |
Total, Beginning of Period at Jul. 31, 2014 | $ 104,308 | $ 1,031 | $ 30,905 | $ 136,039 | $ (55,404) | $ (8,263) |
Common & Class B Stock, Beginning of Period (in shares) at Jul. 31, 2014 | 10,312,128 | |||||
Treasury Stock, Beginning of Period (in shares) at Jul. 31, 2014 | (3,240,392) | |||||
Net Income | 11,368 | $ 0 | 0 | 11,368 | $ 0 | 0 |
Other Comprehensive Loss | (982) | 0 | 0 | 0 | 0 | (982) |
Dividends Declared | (5,312) | 0 | 0 | (5,312) | 0 | 0 |
Purchases of Treasury Stock | (122) | 0 | 0 | 0 | $ (122) | 0 |
Purchases of Treasury Stock (in shares) | (3,645) | |||||
Net Issuance of Stock Under Long-Term Incentive Plans | 49 | $ 2 | 508 | 0 | $ (461) | 0 |
Net Issuance of Stock Under Long-Term Incentive Plans (in shares) | 13,950 | (13,500) | ||||
Share-based Compensation | 77 | $ 0 | 77 | 0 | $ 0 | 0 |
Amortization of Restricted Stock | 1,142 | 0 | 1,142 | 0 | 0 | 0 |
Total, End of Period at Jul. 31, 2015 | 110,528 | $ 1,033 | 32,632 | 142,095 | $ (55,987) | (9,245) |
Common & Class B Stock, End of Period (in shares) at Jul. 31, 2015 | 10,326,078 | |||||
Treasury Stock, End of Period (in shares) at Jul. 31, 2015 | (3,257,537) | |||||
Net Income | 13,613 | $ 0 | 0 | 13,613 | $ 0 | 0 |
Other Comprehensive Loss | (4,777) | 0 | 0 | 0 | 0 | (4,777) |
Dividends Declared | (5,701) | 0 | 0 | (5,701) | 0 | 0 |
Purchases of Treasury Stock | (18) | 0 | 0 | 0 | $ (18) | 0 |
Purchases of Treasury Stock (in shares) | (607) | |||||
Net Issuance of Stock Under Long-Term Incentive Plans | 465 | $ 17 | 221 | (62) | $ 289 | 0 |
Net Issuance of Stock Under Long-Term Incentive Plans (in shares) | 171,900 | 20,450 | ||||
Share-based Compensation | 194 | $ 0 | 194 | 0 | $ 0 | 0 |
Amortization of Restricted Stock | 1,247 | 0 | 1,247 | 0 | 0 | 0 |
Total, End of Period at Jul. 31, 2016 | 115,551 | $ 1,050 | 34,294 | 149,945 | $ (55,716) | (14,022) |
Common & Class B Stock, End of Period (in shares) at Jul. 31, 2016 | 10,497,978 | |||||
Treasury Stock, End of Period (in shares) at Jul. 31, 2016 | (3,237,694) | |||||
Net Income | 10,792 | $ 0 | 0 | 10,792 | $ 0 | 0 |
Other Comprehensive Loss | 3,730 | 0 | 0 | 0 | 0 | 3,730 |
Dividends Declared | (6,002) | 0 | 0 | (6,002) | 0 | 0 |
Purchases of Treasury Stock | (135) | 0 | 0 | 0 | $ (135) | 0 |
Purchases of Treasury Stock (in shares) | (3,917) | |||||
Net Issuance of Stock Under Long-Term Incentive Plans | 170 | $ 3 | 17 | 0 | $ 150 | 0 |
Net Issuance of Stock Under Long-Term Incentive Plans (in shares) | 30,700 | 9,500 | ||||
Share-based Compensation | 424 | $ 0 | 424 | 0 | $ 0 | 0 |
Amortization of Restricted Stock | 1,507 | 0 | 1,507 | 0 | 0 | 0 |
Total, End of Period at Jul. 31, 2017 | $ 126,037 | $ 1,053 | $ 36,242 | $ 154,735 | $ (55,701) | $ (10,292) |
Common & Class B Stock, End of Period (in shares) at Jul. 31, 2017 | 10,528,678 | |||||
Treasury Stock, End of Period (in shares) at Jul. 31, 2017 | (3,232,111) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Cash Flows from Operating Activities | |||
Net Income | $ 10,792 | $ 13,613 | $ 11,368 |
Adjustments to reconcile net income to net cash provided by operating activites: | |||
Depreciation and amortization | 12,772 | 12,192 | 11,994 |
Amortization of investment discounts | (47) | (10) | (1) |
Non-cash stock compensation expense | 1,507 | 1,247 | 1,142 |
Excess tax benefits for share-based payments | (424) | (194) | (77) |
Deferred income taxes | 2,408 | (8,114) | (2,450) |
Provision for bad debts and cash discounts | (13) | 50 | 177 |
Loss on the sale of property, plant and equipment | 326 | 331 | 191 |
Gain on sale of marketable securities | 0 | 0 | (105) |
Life insurance benefits | 0 | 0 | (117) |
(Increase) decrease in: | |||
Accounts receivable | (2,331) | 942 | (646) |
Inventories | 666 | (1,954) | 3,114 |
Prepaid expenses | (1,248) | 167 | 2,455 |
Other assets | (694) | (3) | (1,287) |
Increase (decrease) in: | |||
Accounts payable | 2,423 | (931) | 571 |
Accrued expenses | (845) | 2,746 | (697) |
Deferred compensation | 1,033 | 986 | 251 |
Pension and postretirement benefits | 209 | 4,171 | 814 |
Other liabilities | 415 | (68) | 279 |
Total Adjustments | 16,157 | 11,558 | 15,608 |
Net Cash Provided by Operating Activities | 26,949 | 25,171 | 26,976 |
Cash Flows from Investing Activities | |||
Capital expenditures | (14,763) | (10,684) | (15,859) |
Proceeds from sale of property, plant and equipment | 64 | 261 | 22 |
Increase (Decrease) in Restricted Cash | 0 | 0 | (129) |
Purchases of short-term investments | (47,531) | (45,198) | (2,890) |
Dispositions of short-term investments | 34,186 | 37,214 | 3,341 |
Proceeds from sale of marketable securities | 0 | 0 | 108 |
Proceeds from life insurance | 0 | 0 | 903 |
Net Cash Used in Investing Activities | (28,044) | (18,407) | (14,246) |
Cash Flows from Financing Activities | |||
Principal payments on notes payable | (3,083) | (3,484) | (3,500) |
Dividends paid | (5,926) | (5,600) | (5,247) |
Purchase of treasury stock | (135) | (18) | (122) |
Proceeds from issuance of treasury stock | 0 | 370 | 0 |
Proceeds from issuance of common stock | 170 | 96 | 49 |
Excess tax benefits for share-based payments | 424 | 194 | 77 |
Net Cash Used in Financing Activities | (8,550) | (8,442) | (8,743) |
Effect of exchange rate changes on cash and cash equivalents | 111 | 169 | (79) |
Net (Decrease) Increase in Cash and Cash Equivalents | (9,534) | (1,509) | 3,908 |
Cash and Cash Equivalents, Beginning of Year | 18,629 | 20,138 | 16,230 |
Cash and Cash Equivalents, End of Year | 9,095 | 18,629 | 20,138 |
Cash paid for: | |||
Interest, net of amounts capitalized | 484 | 622 | 826 |
Income taxes | 3,176 | 6,693 | 2,339 |
Noncash investing and financing activities: | |||
Capital expenditures accrued, but not paid | 1,557 | 761 | 223 |
Cash dividends declared and accrued, but not paid | $ 1,553 | $ 1,477 | $ 1,376 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Summary Of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES N ATURE OF O PERATIONS We are a leader in developing, manufacturing and/or marketing sorbent products. Our sorbent products are principally produced from clay minerals. Our absorbent clay products include cat litter, industrial floor absorbents, agricultural chemical carriers and animal feed additives. Our adsorbent products include bleaching clays, which are used for filtration of edible oils and for purification of petroleum-based oils. We also sell synthetic sorbents, which are used for industrial cleanup. P RINCIPLES OF C ONSOLIDATION The Consolidated Financial Statements include the accounts of Oil-Dri Corporation of America and its subsidiaries, all of which are wholly-owned. All significant intercompany balances and transactions have been eliminated from the Consolidated Financial Statements. M ANAGEMENT U SE OF E STIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. For more information see Critical Accounting Policies and Estimates in Item 7 “ Management's Discussion and Analysis of Financial Condition and Results of Operations. ” C ASH AND C ASH E QUIVALENTS Cash equivalents are highly liquid investments with maturities of three months or less. S HORT - TERM I NVESTMENTS The table below shows the composition of short-term investments as of July 31 (in thousands): 2017 2016 U.S. Treasury securities $ 13,976 $ 5,998 Certificates of deposit 9,600 4,186 Short-term investments $ 23,576 $ 10,184 Short-term investments have maturities of one year or less. We intend and have the ability to hold these investments to maturity; therefore, these investments are reported at amortized cost. T RADE R ECEIVABLES We recognize trade receivables when the risk of loss and title pass to the customer. We record an allowance for doubtful accounts based on our historical experience and a periodic review of our accounts receivable, including a review of the overall aging of accounts, consideration of customer credit risk and analysis of facts and circumstances about specific accounts. A customer account is determined to be uncollectible when it is probable that a loss will be incurred after we have completed our internal collection procedures, including termination of shipments, direct customer contact and formal demand of payment. We retain outside collection agencies to facilitate our collection efforts. Past due status is determined based on contractual terms and customer payment history. I NVENTORIES We value inventories at the lower of cost (first-in, first-out) or market. We recorded inventory obsolescence reserves of approximately $619,000 and $806,000 as of July 31, 2017 and 2016 , respectively. The composition of inventories was as follows as of July 31 (in thousands): 2017 2016 Finished goods $ 14,704 $ 14,032 Packaging 4,988 4,672 Other 2,923 4,547 Inventories $ 22,615 $ 23,251 T RANSLATION OF F OREIGN C URRENCIES Assets and liabilities of foreign subsidiaries, where the local currency is the functional currency, are translated to U.S. Dollars at the exchange rates in effect at period end. Income statement items are translated at the average exchange rate on a monthly basis. Resulting translation adjustments are recorded as a separate component of stockholders’ equity. I NTANGIBLES AND G OODWILL We amortize most of our intangibles on a straight-line basis over periods ranging from ten to 20 years. Our customer list intangible asset is amortized at an accelerated amortization rate in the earlier years to reflect the expected pattern of decline in the related benefits over time. Intangible amortization was $1,228,000 in fiscal year 2017 and $1,410,000 in fiscal year 2016 . We have some intangible assets that were determined to have indefinite lives and are not amortized, specifically one acquired trademark recorded at $376,000 . Our estimated intangible amortization expense for the next five fiscal years is as follows (in thousands): 2018 $ 1,011 2019 $ 826 2020 $ 657 2021 $ 473 2022 $ 323 The weighted average amortization period of our intangibles subject to amortization is as follows (in years): Weighted Average Amortization Period Trademarks and patents 14.5 Debt issuance costs 3.1 Customer list 6.3 Total intangible assets subject to amortization 6.8 We periodically review indefinite-lived intangibles and goodwill to assess for impairment. Our review is based on cash flow considerations and other approaches that require significant judgment with respect to volume, revenue, expenses and allocations. Impairment occurs when the carrying value exceeds the fair value. Much of our goodwill cannot be specifically assigned to one of our operating segments because of the shared nature of our production facilities; however, for purposes of our most recent impairment analysis we estimated the goodwill allocation and assigned $5,464,000 to the Retail and Wholesale Products Group and $3,570,000 to the Business to Business Products Group. Our impairment analysis has historically been performed in the first quarter of the fiscal year; however, beginning in fiscal year 2016 we performed, and going forward we will perform, our annual impairment testing in the fourth quarter of our fiscal year. We will continue to consider the need to re-perform impairment testing throughout the year when circumstances such as unexpected adverse economic factors, unanticipated technological changes, competitive activities and acts by governments and courts indicate that an asset may become impaired. We believe the change in impairment testing date is not a material change to our method of applying an accounting principle. There was no impairment required based on our analysis for fiscal years 2017 , 2016 or 2015 . O VERBURDEN R EMOVAL AND M INING C OSTS We mine sorbent materials on property that we either own or lease as part of our overall operations. A significant part of our overall mining cost is incurred during the process of removing the overburden from the mine site, thus exposing the sorbent material used in a majority of our production processes. These stripping costs are treated as a variable inventory production cost and are included in cost of sales in the period they are incurred. Stripping costs included in cost of sales were approximately $2,936,000 , $3,020,000 , and $2,939,000 for fiscal years 2017 , 2016 and 2015 , respectively. We defer and amortize the pre-production overburden removal costs associated with opening a new mine. No pre-production overburden removal costs were deferred in the last two fiscal years. Additionally, it is our policy to capitalize the purchase cost of land and mineral rights, including associated legal fees, survey fees and real estate fees. The costs of obtaining mineral rights, including legal fees and drilling expenses, are also capitalized. The amount of land and mineral rights included in land on the Consolidated Balance Sheets were approximately $13,453,000 and $2,165,000 , respectively, as of July 31, 2017 and $13,659,000 and $2,165,000 , respectively, as of July 31, 2016 . Pre-production development costs on new mines and any prepaid royalties that may be offset against future royalties due upon extraction of the mineral are also capitalized. No capitalized pre-production development costs were recorded in fiscal years 2017 and 2016 . Prepaid royalties included in current prepaid expenses and in non-current other assets on the Consolidated Balance Sheets were approximately $1,122,000 and $1,103,000 as of July 31, 2017 and 2016 , respectively. R ECLAMATION We perform ongoing reclamation activities during the normal course of our overburden removal. As overburden is removed from a mine site, it is hauled to previously mined sites and is used to refill older sites. This process allows us to continuously reclaim older mine sites and dispose of overburden simultaneously, therefore minimizing the costs associated with the reclamation process. On an annual basis we evaluate our potential reclamation liability in accordance with ASC 410, Asset Retirement and Environmental Obligations. The reclamation assets are depreciated over the estimated useful lives of the various mines. The reclamation liabilities are increased based on a yearly accretion charge over the estimated useful lives of the mines. P ROPERTY , P LANT AND E QUIPMENT Property, plant and equipment are generally depreciated using the straight-line method over their estimated useful lives which are listed below. Depreciation expense was $11,544,000 , $10,782,000 and $10,352,000 in fiscal years 2017 , 2016 and 2015 , respectively. Major improvements and betterments are capitalized, while maintenance and repairs that do not extend the useful life of the applicable assets are expensed as incurred. Interest expense may also be capitalized for assets that require a period of time to get them ready for their intended use. Capitalized interest was $80,000 and $72,000 in fiscal years 2017 and 2016 , respectively. There was no significant capitalized interest in fiscal year 2015 . Years Buildings and leasehold improvements 3 - 39 Machinery and equipment Packaging 2 - 20 Processing 2 - 25 Mining and other 3 - 15 Office furniture and equipment 2 - 12 Vehicles 3 - 15 Property, plant and equipment are carried at cost on the Consolidated Balance Sheets and are reviewed for possible impairment on an annual basis or when circumstances indicate impairment that an asset may become impaired. We take into consideration idle and underutilized equipment and review business plans for possible impairment. When impairment is indicated, an impairment charge is recorded for the difference between the carrying value of the asset and its fair market value. There was no impairment recorded in fiscal years 2017 , 2016 or 2015 . T RADE P ROMOTIONS We routinely commit to one-time or ongoing trade promotion programs, primarily in our Retail and Wholesale Products Group. All such costs are netted against sales. We have accrued liabilities at the end of each period for the estimated expenses incurred but not yet paid for these programs. Promotional reserves are provided for sales incentives made directly to consumers, such as coupons, and sales incentives made to customers, such as slotting, discounts based on sales volume, cooperative marketing programs and other arrangements. We use judgment for estimates to determine our trade spending liabilities. We rely on our historical experience of trade spending patterns and that of the industry, current trends and forecast data. A DVERTISING Advertising costs for the development of printed materials, television commercials, web-based digital banners, web-based social media and sales videos are deferred and expensed upon the first use of the materials, unless such amounts are immaterial. Costs paid for communicating advertising over a period of time, such as television air time, radio commercials and print media advertising space, are deferred and expensed on a pro-rata basis. All other advertising costs, including participation in industry conventions and shows and market research, are expensed when incurred. All advertising costs are part of selling, general and administrative expenses. Advertising expenses were approximately $13,751,000 , $18,083,000 , and $5,154,000 in fiscal years 2017 , 2016 and 2015 , respectively. Advertising expense was significantly higher in fiscal year 2016 due to an integrated marketing campaign launched in March 2016 to promote our Cat's Pride Fresh & Light Ultimate Care lightweight cat litter. F AIR V ALUE OF F INANCIAL I NSTRUMENTS Non-derivative financial instruments included in the Consolidated Balance Sheets are cash and cash equivalents, short-term investments and notes payable. These instruments, except for notes payable, were carried at amounts approximating fair value as of July 31, 2017 and 2016 . Short-term investments were certificates of deposits and treasury securities. We intend and have the ability to hold our short-term investments to maturity; therefore, these investments were reported at amortized cost on the Consolidated Balance Sheets, which approximated fair value. See Note 4 of the Notes to the Consolidated Financial Statements for additional information regarding the fair value of our financial instruments, including notes payable. R EVENUE R ECOGNITION We recognize revenue when risk of loss and title are transferred under the terms of our sales agreements with customers at a fixed and determinable price and collection of payment is probable. Taxes collected from customers and remitted to governmental authorities are excluded from net sales. Sales returns and allowances are not material. C OST OF S ALES Cost of sales consists of all manufacturing costs, including depreciation and amortization related to assets used in the manufacturing and distribution process, inbound and outbound freight, inspection costs, purchasing costs associated with materials and packaging used in the production process and warehouse and distribution costs. S HIPPING AND H ANDLING C OSTS Shipping and handling costs are included in cost of sales and were approximately $39,226,000 , $41,301,000 and $46,292,000 for fiscal years 2017 , 2016 and 2015 , respectively. S ELLING , G ENERAL AND A DMINISTRATIVE E XPENSES Selling, general and administrative expenses include salaries, wages and benefits associated with staff outside the manufacturing and distribution functions, all marketing related costs, any miscellaneous trade spending expenses not required to be included in net sales, research and development costs, depreciation and amortization related to assets outside the manufacturing and distribution process and all other non-manufacturing and non-distribution expenses. R ESEARCH AND D EVELOPMENT Research and development costs of approximately $3,215,000 , $3,025,000 and $2,809,000 were charged to expense as incurred for fiscal years 2017 , 2016 and 2015 , respectively. P ENSION AND P OSTRETIREMENT B ENEFIT C OSTS We provide a defined benefit pension plan for eligible salaried and hourly employees and we make contributions to fund the plan. We also provide a postretirement health benefit plan to domestic salaried employees who qualify under the plan’s provisions. The postretirement health benefit plan is unfunded. Our pension and postretirement health benefit plans are accounted for using actuarial valuations required by ASC 715, Compensation – Retirement Benefits . The funded status of our defined pension and postretirement health benefit plans are recognized on the Consolidated Balance Sheets. Changes in the funded status that arise during the period but are not recognized as components of net periodic benefit cost are recognized within other comprehensive income, net of income tax. See Note 8 of the Notes to the Consolidated Financial Statements for additional information. S TOCK -B ASED C OMPENSATION We account for stock options and restricted stock issued under our long term incentive plans in accordance with ASC 718, Compensation – Stock Compensation . The fair value of stock-based compensation is determined at the grant date. The related compensation expense is recognized over the appropriate vesting period. See Note 7 of the Notes to the Consolidated Financial Statements for additional information. I NCOME TAXES Deferred income tax assets and liabilities are recorded for the impact of temporary differences between the tax basis of assets and liabilities and the amounts recognized for financial reporting purposes. Deferred tax assets are reviewed and a valuation allowance is established if management believes that it is more likely than not that some portion of our deferred tax assets will not be realized. Changes in valuation allowances from period to period are included in the tax provision in the period of change. In addition to existing valuation allowances, we provide for uncertain tax positions, if necessary, when such tax positions do not meet the recognition thresholds or measurement standards prescribed by ASC 740, Income Taxes . Amounts for uncertain tax positions are adjusted when new information becomes available or when positions are effectively settled. We recognize interest and penalties accrued related to uncertain tax positions in income tax (benefit) expense. U.S. income tax expense and foreign withholding taxes are provided on remittances of foreign earnings and on unremitted foreign earnings that are not indefinitely reinvested. Where unremitted foreign earnings are indefinitely reinvested, no provision for federal or state tax expense is recorded. When circumstances change and we determine that some or all of the undistributed earnings will be remitted in the foreseeable future, a corresponding expense is accrued in the current period. See Note 5 of the Notes to the Consolidated Financial Statements for additional information about income taxes. N EW A CCOUNTING P RONOUNCEMENTS Recently Adopted Accounting Pronouncements In fiscal year 2017 we adopted FASB guidance under ASC 835, Simplifying the Presentation of Debt Issuance Cost, which requires debt issuance costs related to notes payable to be presented as a direct deduction from the associated debt liability rather than as an asset. Amortization of these costs continue to be reported as interest expense. We adopted this guidance retrospectively, which resulted in a decrease in Other Assets of $118,000 with a corresponding decrease in Noncurrent Liabilities in our Consolidated Balance Sheets as of July 31, 2016. The new requirements had no impact on our results of operations or cash flows. In fiscal year 2017 we adopted FASB guidance under ASC 205, Presentation of Financial Statements - Going Concern . This guidance defines management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. Management performed this evaluation and determined there was no doubt about the Company's ability to continue as a going concern, therefore no disclosures were required. Recently Issued Accounting Standards We plan to adopt FASB issued guidance under ASC 330, Simplifying the Measurement of Inventory in our first quarter of fiscal year 2018 . The new guidance requires inventory to be measured at the lower of cost and net realizable value, which is defined as the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. We are currently evaluating the impact of the adoption of this requirement; however, we do not believe the results of our current inventory valuation policy will be substantially changed and the implementation of this guidance will not have a material impact on our Consolidated Financial Statements. We plan to adopt FASB guidance under ASC 740, Balance Sheet Classification of Deferred Taxes, which requires deferred tax liabilities and assets to be classified as noncurrent in a classified statement of financial position. We expect to reclassify approximately $ 2,787,000 from Total Current Assets to Total Other Assets on the unaudited balance sheet as of October 31, 2017 included in our fiscal year 2018 first quarterly report on Form 10-Q. Prior periods presented will also be restated accordingly. We plan to adopt FASB guidance under ASC 718, Compensation-Stock Compensation, in our first quarter of fiscal year 2018. The new guidance allows for a policy election to account for forfeitures as they occur rather than on an estimated basis. We do not plan to make this election. We will continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. The new guidance also simplifies several aspects of the accounting for share-based payment transactions, including requiring excess tax benefits and tax deficiencies to be recognized as income tax benefits or expenses in the consolidated statement of earnings. Additionally, the standard requires cash flows from excess tax benefits and deficiencies, previously classified as a financing activity, to be classified as an operating activity in the consolidated statement of cash flows. Oil-Dri will adopt the accounting and cash flow presentation provisions of the guidance on a prospective basis. The adoption is expected to impact Oil-Dri's income tax provision on its Consolidated Statements of Operations and its operating and financing cash flows on its Consolidated Statements of Cash Flows. The amount of the impact of adopting this standard on the Consolidated Financial Statements will be dependent on the timing and value of future share-based compensation awards. In May 2014, the FASB issued guidance under ASC 606, Revenue from Contracts with Customers , which establishes a single comprehensive revenue recognition model for all contracts with customers and will supersede most existing revenue guidance. This guidance was subsequently amended several times to further clarify the principles for recognizing revenue. The guidance requires entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to receive in exchange. Oil-Dri's revenue is generated from the sale of finished goods to customers. Those sales predominantly contain a single delivery obligation. Under Oil-Dri's current accounting policy, revenue is recognized at a single point in time when ownership, risks and rewards transfer. We are currently in the process of performing a comprehensive evaluation of the revenue requirements, including the impact on how we record certain incentives and advertising arrangements, as well as significant new disclosure requirements. We plan to adopt the standard at the beginning of our first quarter of fiscal year 2019. Transition options to implement this guidance include either a full or modified retrospective approach and early adoption is permitted. We expect to use the modified retrospective implementation method. In January 2016, the FASB issued guidance under ASC 825, Recognition and Measurement of Financial Assets and Financial Liabilities. This guidance addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The provisions relevant to us at this time require the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes, as well as eliminates the requirement to disclose the method and significant assumptions used to estimate the fair value in such disclosure. This guidance is effective for our first quarter of fiscal year 2019 and early adoption is generally not permitted. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. In February 2016, the FASB issued guidance under ASC 842, Leases , which provides that, for leases with a term greater than 12 months, a lessee must recognize in the statement of financial position both a liability to make lease payments and an asset representing its right to use the underlying asset. Other requirements describe expense recognition, as well as financial statement presentation and disclosure. This guidance is effective for our first quarter of fiscal year 2020 using a modified retrospective approach, which includes a number of optional practical expedients. Early adoption is permitted. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. In June 2016, the FASB issued guidance under ASC 326, Financial Instruments-Credit Losses , which requires companies to utilize an impairment model for most financial assets measured at amortized cost and certain other financial instruments, which include trade and other receivables, loans and held-to-maturity debt securities, to record an allowance for credit risk based on expected losses rather than incurred losses. In addition, this new guidance changes the recognition method for credit losses on available-for-sale debt securities, which can occur as a result of market and credit risk, as well as additional disclosures. In general, this guidance will require modified retrospective adoption for all outstanding instruments that fall under this guidance. This guidance is effective for our first quarter of fiscal year 2021. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. In March 2017, the FASB issued guidance under ASC 715, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires presenting the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. This standard also requires that other components of the net periodic benefit cost be presented separately from the line item(s) that includes service costs and outside of any subtotal of operating income, if one is presented, on a retrospective basis. Additionally, the new guidance limits the components that are eligible for capitalization in assets to only the service cost component. The new guidance is effective for our first quarter of fiscal year 2019, with early adoption permitted. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. There have been no other accounting pronouncements issued but not yet adopted by us which are expected to have a material impact on our Consolidated Financial Statements. |
OPERATING SEGMENTS Level 1 (Not
OPERATING SEGMENTS Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2017 | |
OPERATING SEGMENTS [Abstract] | |
Operating Segments | OPERATING SEGMENTS We have two reportable operating segments: (1) Retail and Wholesale Products Group and (2) Business to Business Products Group. These operating segments are managed separately and each segment's major customers have different characteristics. The Retail and Wholesale Products Group customers include mass merchandisers, wholesale clubs, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores, distributors of industrial cleanup and automotive products, environmental service companies and sports field product users. The Business to Business Products Group customers include: processors and refiners of edible oils, petroleum-based oils and biodiesel fuel; manufacturers of animal feed and agricultural chemicals; distributors of animal health and nutrition products; and marketers of consumer products. Net sales and operating income for each segment are provided below. Revenues by product line are not provided because it would be impracticable to do so. The accounting policies of the segments are the same as those described in the Note 1 of the Notes to the Consolidated Financial Statements. We do not rely on any operating segment asset allocations and we do not consider them meaningful because of the shared nature of our production facilities; however, we have estimated the segment asset allocations below for those assets for which we can reasonably determine. The unallocated asset category is the remainder of our total assets. The asset allocation is estimated and is not a measure used by our chief operating decision maker about allocating resources to the operating segments or in assessing their performance. The corporate expenses line represents certain unallocated expenses, including primarily salaries, wages and benefits, purchased services, rent, utilities and depreciation and amortization associated with corporate functions such as research and development, information systems, finance, legal, human resources and customer service. Corporate expenses also include the annual incentive plan bonus accrual. July 31, Assets 2017 2016 2015 (in thousands) Business to Business Products $ 65,337 $ 61,007 $ 55,767 Retail and Wholesale Products 90,508 91,626 96,043 Unallocated assets (1) 56,730 52,182 38,075 Total Assets $ 212,575 $ 204,815 $ 189,885 Year Ended July 31, Net Sales Income 2017 2016 2015 2017 2016 2015 (in thousands) Business to Business Products $ 100,419 $ 96,444 $ 92,326 $ 33,343 $ 33,464 $ 29,406 Retail and Wholesale Products 161,888 165,869 169,076 6,775 5,009 5,206 Total sales $ 262,307 $ 262,313 $ 261,402 Corporate expenses (24,888 ) (23,060 ) (19,459 ) Income from operations 15,230 15,413 15,153 Total other expense, net (685 ) (1,056 ) (984 ) Income before income taxes 14,545 14,357 14,169 Income taxes (3,753 ) (744 ) (2,801 ) Net income $ 10,792 $ 13,613 $ 11,368 The following is a summary by fiscal year of financial information by geographic region (in thousands): 2017 2016 2015 Sales to unaffiliated customers by: Domestic operations $ 249,772 $ 251,054 $ 250,377 Foreign subsidiaries $ 12,535 $ 11,259 $ 11,025 Sales or transfers between geographic areas: Domestic operations $ 5,842 $ 5,723 $ 5,606 Income (Loss) before income taxes: Domestic operations $ 14,524 $ 15,129 $ 15,389 Foreign subsidiaries $ 21 $ (772 ) $ (1,220 ) Net Income (Loss): Domestic operations $ 10,833 $ 14,574 $ 12,629 Foreign subsidiaries $ (41 ) $ (961 ) $ (1,261 ) Identifiable assets: Domestic operations (1) $ 204,547 $ 197,518 $ 182,123 Foreign subsidiaries $ 8,028 $ 7,297 $ 7,762 (1) Prior year amounts have been retrospectively adjusted to conform to the current year presentation of debt issuance costs required by new guidance under ASC 835, Simplifying the Presentation of Debt Issuance Cost. See Note 1 of the Notes to the Consolidated Financial Statements for details. Sales to Walmart, our largest customer, are included in our Retail and Wholesale Products Group. The percentage of consolidated net sales and net accounts receivable attributed to Walmart are shown in the table below: 2017 2016 2015 Net sales for the years ended July 31 20% 19% 18% Net accounts receivable as of July 31 28% 29% 27% There are no other customers with sales equal to or greater than 10% of our total sales. |
DEBT Level 1 (Notes)
DEBT Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2017 | |
Notes Payable [Abstract] | |
Debt | DEBT The composition of notes payable is as follows as of July 31 (in thousands): 2017 2016 Senior notes payable in annual principal installments on August 1: $3,083 in each fiscal year 2018 through 2021. Interest is payable semiannually at an annual rate of 3.96% $ 12,333 $ 15,416 Less current maturities of notes payable (3,083 ) (3,083 ) Less unamortized debt issuance costs $ (89 ) $ (118 ) Noncurrent notes payable (1) $ 9,161 $ 12,215 (1) Prior year amounts have been retrospectively adjusted to conform to the current year presentation of debt issuance costs required by new guidance under ASC 835, Simplifying the Presentation of Debt Issuance Cost. See Note 1 of the Notes to the Consolidated Financial Statements for details. We issued senior promissory notes in November 2010 for $18,500,000 . The note agreement provides that the proceeds could be used to fund future principal payments on debt, acquisitions, stock repurchases, capital expenditures and working capital purposes. The note agreement contains restrictions against certain activities, among other things and under various conditions, as well as financial covenants, including a minimum fixed charges coverage ratio and a minimum consolidated debt ratio. On December 4, 2014 , we signed a fourth amendment to our credit agreement with BMO Harris, to extend the term to December 4, 2019 . The new agreement provides for a $25,000,000 unsecured revolving credit agreement, including a maximum of $5,000,000 for foreign letters of credit. The remaining terms are substantially unchanged from our previous agreement with BMO Harris, including the provision that we may select a variable rate based on either BMO Harris’ prime rate or a LIBOR-based rate, plus a margin which varies depending on our debt to earnings ratio, or a fixed rate as agreed between us and BMO Harris. As of July 31, 2017 , the variable rates would have been 4.25% for the BMO Harris’ prime-based rate or 2.31% for the LIBOR-based rate. The credit agreement contains restrictive covenants that, among other things and under various conditions, limit our ability to incur additional indebtedness or to dispose of assets. The agreement also requires us to maintain a minimum fixed coverage ratio, a minimum consolidated net worth and a minimum consolidated debt ratio. As of July 31, 2017 and 2016 , there were no outstanding borrowings under this credit agreement. Our debt agreements also contain provisions such that if we default on one debt agreement, the others will automatically default. If we default on any guaranteed debt with a balance greater than $1,000,000 , our unsecured revolving credit agreement with BMO Harris will be considered in default. If we default on any debt with a balance greater than $5,000,000 we will also be considered in default with the senior promissory notes. We were in compliance with all restrictive covenants and limitations as of July 31, 2017 . The following is a schedule by fiscal year of future principal maturities of notes payable as of July 31, 2017 (in thousands): 2018 $ 3,083 2019 3,083 2020 3,083 2021 3,084 2022 — $ 12,333 |
FINANCIAL INSTRUMENTS Level 1 (
FINANCIAL INSTRUMENTS Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2017 | |
FAIR VALUE [Abstract] | |
Fair Value | FINANCIAL INSTRUMENTS Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs used to measure fair value are prioritized into one of three categories based on the lowest level of input that is significant to the fair value measurement. Categories in the hierarchy are as follows: Level 1: Financial assets and liabilities whose values are based on quoted market prices in active markets for identical assets or liabilities. Level 2: Financial assets and liabilities whose values are based on: 1) Quoted prices for similar assets or liabilities in active markets. 2) Quoted prices for identical or similar assets or liabilities in markets that are not active. 3) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability. Level 3: Financial assets and liabilities whose values are based on valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs may reflect estimates of the assumptions that market participants would use in valuing the financial assets and liabilities. The following table summarizes our financial assets and liabilities that were reported at fair value by level within the fair value hierarchy (in thousands): Fair Value at July 31, 2017 Fair Value at July 31, 2016 Level 1 Level 1 Assets Cash equivalents $ 3,814 $ 7,626 Cash equivalents are classified as Level 1 of the fair value hierarchy because they were valued using quoted market prices in active markets. These cash instruments are primarily money market funds. This amount is included in cash and cash equivalents on the Consolidated Balance Sheets. Short-term investments on the Consolidated Balance Sheets include certificates of deposit and treasury securities. We intend and have the ability to hold our short-term investments to maturity; therefore, these investments were reported at amortized cost on the Consolidated Balance Sheets, which approximated fair value as of July 31, 2017 and 2016 . These balances are excluded from the above table. Accounts receivable and accounts payable balances on the Consolidated Balance Sheets approximate their fair values as of July 31, 2017 and 2016 due to the short maturity and nature of those balances; therefore, these balances are excluded from the above table. Notes payable on the Consolidated Balance Sheets are carried at the face amount of future maturities and are excluded from the above table. The estimated fair value of notes payable was approximately $13,001,000 as of July 31, 2017 and $16,651,000 as of July 31, 2016 . Our debt does not trade on a daily basis in an active market, therefore the fair value of notes payable was estimated based on market observable borrowing rates currently available for debt with similar terms and average maturities and is classified as Level 2. Concentration of Credit Risk Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash, short-term investments and accounts receivable. Our cash is held in banks which are covered by the Federal Deposit Insurance Corporation; however, our cash balances are in excess of the maximum amount that is insured. Our short-term investments are placed in government-backed instruments and with other high quality institutions. Concentrations of credit risk with respect to accounts receivable are subject to the financial condition of certain major customers, principally the customer referred to in Note 2 of the Notes to the Consolidated Financial Statements. We generally do not require collateral to secure customer receivables; however, we require letters of credit for some foreign customers or we purchase insurance to reduce our risk. |
INCOME TAXES Level 1 (Notes)
INCOME TAXES Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2017 | |
INCOME TAXES [Abstract] | |
Income Taxes | INCOME TAXES The provision for income tax expense (benefit) by fiscal year consists of the following (in thousands): 2017 2016 2015 Current Federal $ 2,715 $ 3,298 $ 4,296 Foreign 23 15 (40 ) State 577 1,051 1,081 Current Income Tax Total 3,315 4,364 5,337 Deferred Federal 335 (3,277 ) (2,242 ) Foreign 40 174 68 State 63 (517 ) (362 ) Deferred Income Tax Total 438 (3,620 ) (2,536 ) Total Income Tax Expense $ 3,753 $ 744 $ 2,801 Principal reasons for variations between the statutory federal rate and the effective rates by fiscal year were as follows: 2017 2016 2015 U.S. federal income tax rate 35.0 % 35.0 % 35.0 % Depletion deductions allowed for mining (12.8 ) (13.8 ) (9.5 ) State income tax expense, net of federal tax expense 2.9 2.5 3.4 Difference in effective tax rate of foreign subsidiaries — 1.2 2.2 Prior year income taxes 2.4 1.7 (2.9 ) Valuation allowance decrease — (11.7 ) (11.7 ) Change in federal tax rate applied to deferred tax assets and liabilities — (2.5 ) — Deduction for domestic production activities (1.4 ) (2.7 ) (1.8 ) Other (0.3 ) (4.5 ) 5.1 Effective income tax rate 25.8 % 5.2 % 19.8 % The Consolidated Balance Sheets included the following tax effects of cumulative temporary differences as of July 31 (in thousands): ` 2017 2016 Assets Liabilities Assets Liabilities Depreciation $ — $ 5,888 $ — $ 5,924 Deferred compensation 5,018 — 4,684 — Postretirement benefits 10,419 — 11,935 — Allowance for doubtful accounts 163 — 172 — Deferred marketing expenses — 508 365 — Other assets 427 — 923 — Accrued expenses 2,930 — 3,100 — Tax credits 926 — 1,060 — Amortization 301 — 216 — Inventories 251 — 247 — Depletion — 464 — 476 Stock-based compensation 343 — 252 — Reclamation 418 — 364 — Other assets – foreign 853 — 890 — Valuation allowance (793 ) — (1,170 ) — Total deferred taxes $ 21,256 $ 6,860 $ 23,038 $ 6,400 The decrease in deferred taxes related to postretirement benefits was driven by a higher liability for these obligations. See Note 8 of the Notes to the Consolidated Financial Statements for further information about the assumptions used for the actuarial calculation of the postretirement benefits liability. We recorded a $793,000 valuation allowance for the amount of the deferred tax benefit related to our foreign net operating loss carryforwards as of July 31, 2017 since we believe it is unlikely we will realize the benefit of these tax attributes in the future. An allowance of $1,170,000 was recorded as of July 31, 2016 for the amount of the deferred tax benefit related to both foreign net operating loss carryforwards and domestic state tax credits based on our assessment at that time of the likelihood of realizing these benefits. We determined during the fourth quarter of fiscal year 2016 that we expected to fully utilize our deferred tax asset for domestic AMT credits in future years. Therefore, we concluded it was appropriate to release the $1,680,000 valuation allowance that had been established in prior years for the full amount of this tax benefit, which resulted in a lower effective federal income tax rate for fiscal year 2016. The same conclusion was reached based upon our review as of July 31, 2017 and no valuation allowance for this tax benefit was established. Our foreign subsidiaries in the United Kingdom and China have not generated any untaxed foreign income, therefore we have not provided for any related income taxes. We had no liability for unrecognized tax benefits based on tax positions related to the current and prior fiscal years for the fiscal years ended 2017 , 2016 and 2015 ; correspondingly, no related interest and penalties were recognized as income tax expense and there were no accruals for such items in any of these fiscal years. We are subject to U.S. federal income tax as well as income tax in multiple state and foreign jurisdictions. No federal income tax returns were under examination as of July 31, 2017 and returns for fiscal years 2014, 2015 and 2016 remain open for examination. Foreign and U.S. state jurisdictions have statutes of limitations generally ranging from three to five years. The state impact of any federal income tax changes remains subject to examination by various states for a period of up to one year after formal notification to the states. There are a limited number of open state and local income tax audits in which no material issues have been preliminarily identified. There are no material open or unsettled foreign income tax audits. We believe our accrual for tax liabilities is adequate for all open audit years. |
STOCKHOLDERS EQUITY Level 1 (No
STOCKHOLDERS EQUITY Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2017 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Common Stock Our authorized capital stock as of July 31, 2017 and 2016 consisted of 15,000,000 shares of Common Stock, 7,000,000 shares of Class B Stock and 30,000,000 shares of Class A Common Stock, each with a par value of $.10 per share. There are no Class A Common Stock shares currently outstanding. The Common Stock and Class B Stock are equal, on a per share basis, in all respects except as to voting rights, conversion rights, cash dividends and stock splits or stock dividends. The Class A Common Stock is equal, on a per share basis, in all respects, to the Common Stock except as to voting rights and stock splits or stock dividends. In the case of voting rights, Common Stock is entitled to one vote per share and Class B Stock is entitled to ten votes per share, while Class A Common Stock generally has no voting rights. Common Stock and Class A Common Stock have no conversion rights. Class B Stock is convertible on a share-by-share basis into Common Stock at any time and is subject to mandatory conversion under certain circumstances. Common Stock is entitled to cash dividends, as and when declared or paid, equal to at least 133.33% on a per share basis of the cash dividend paid on Class B Stock. Class A Common Stock is entitled to cash dividends on a per share basis equal to the cash dividend on Common Stock. Additionally, while shares of Common Stock, Class A Common Stock and Class B Stock are outstanding, the sum of the per share cash dividend paid on shares of Common Stock and Class A Common Stock, must be equal to at least 133.33% of the sum of the per share cash dividend paid on Class B Stock and Class A Common Stock. See Note 3 of the Notes to the Consolidated Financial Statements regarding dividend restrictions provided in our debt agreements. Shares of Common Stock, Class A Common Stock and Class B Stock are equal in respect of all rights to dividends (other than cash) and distributions in the form of stock or other property (including stock dividends and split-ups) in each case in the same ratio except in the case of a Special Stock Dividend. A Special Stock Dividend, which can be issued only once, is either a dividend of one share of Class A Common Stock for each share of Common Stock and Class B Stock outstanding or a recapitalization, in which half of each outstanding share of Common Stock and Class B Stock would be converted into a half share of Class A Common Stock. Our Board of Directors has authorized in the aggregate the repurchase of 3,666,771 shares of the Company stock since fiscal year 1991. Through fiscal year-end 2017 , 3,023,086 shares of Common Stock and 342,241 shares of Class B Stock have been repurchased under the Board approved repurchase authorizations. Common Stock was repurchased by other transactions authorized by management prior to the adoption of the Board’s repurchase authorizations. Accumulated Other Comprehensive (Loss) Income The following table summarizes the changes in accumulated other comprehensive income by component (in thousands): Pension and Postretirement Health Benefits Cumulative Translation Adjustment Total Accumulated Other Comprehensive (Loss) Income Balance as of July 31, 2015 $ (8,975 ) $ (270 ) (9,245 ) Other comprehensive (loss) income before reclassifications, net of tax (5,501 ) a) 115 (5,386 ) Amounts reclassified from accumulated other comprehensive income, net of tax 609 b) — 609 Net current-period other comprehensive (loss) income , net of tax (4,892 ) 115 (4,777 ) Balance as of July 31, 2016 $ (13,867 ) $ (155 ) $ (14,022 ) Other comprehensive income before reclassifications, net of tax 2,384 a) 190 2,574 Amounts reclassified from accumulated other comprehensive income, net of tax 1,156 b) — 1,156 Net current-period other comprehensive income, net of tax 3,540 190 3,730 Balance as of July 31, 2017 $ (10,327 ) $ 35 $ (10,292 ) a) Amounts are net of taxes of $ 1,461,000 and $3,372,000 in fiscal years 2017 and 2016 , respectively, and are included in Other Comprehensive Loss. b) Amounts are net of taxes of $709,000 and $374,000 in fiscal years 2017 and 2016 , respectively. Amounts are included in the components of net periodic benefit cost for the pension and postretirement health plans. See Note 8 of the Notes to the Consolidated Financial Statements for further information about pension and postretirement health benefits. |
STOCK-BASED COMPENSATION (Notes
STOCK-BASED COMPENSATION (Notes) | 12 Months Ended |
Jul. 31, 2017 | |
STOCK-BASED COMPENSATION [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION We determined the fair value of stock options and restricted stock issued under our long term incentive plans as of the grant date. The fair value of restricted stock was determined by the closing market price of our Common Stock on the date of grant multiplied by the number of shares granted. The fair value of the stock options was estimated on the date of the grant using a Black-Scholes option valuation model that used various assumptions. The risk free interest rate was based on the U.S. Treasury yield curve in effect at the time of grant. Expected life (estimated period of time outstanding) of a grant was determined by reference to the vesting schedule, past exercise behavior and comparison with other reporting companies. The dividend rate at the date of grant was used as the best estimate of future dividends. Expected volatility was determined by calculating the standard deviation of our stock price for the five years immediately prior to the grant date. This period of time closely resembles the expected term. All stock options issued under our plans have an exercise price equal to the closing market price of our Common Stock on the date of grant. S TOCK O PTIONS The Oil-Dri Corporation of America 2006 Long Term Incentive Plan (“2006 Plan”) permits the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards and other stock-based and cash-based awards. Our employees and outside directors are eligible to receive grants under the 2006 Plan. The total number of shares of stock subject to grants under the 2006 Plan may not exceed 937,500 . Stock options have been granted to our outside directors with a vesting period of one year and stock options granted to employees generally vest 25% two years after the grant date and in each of the three following anniversaries of the grant date. In addition, shares of restricted stock have been issued under the 2006 Plan as described in the restricted stock section below. As of July 31, 2017 , there were 344,754 shares available for future grants under this plan. All remaining outstanding options were exercised during fiscal year 2017. A summary of stock option transactions under the plans is shown below. Number of Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Options outstanding and exercisable at July 31, 2014 44 $ 15.43 1.9 $ 611 Exercised (3 ) $ 15.37 $ 45 Options outstanding and exercisable at July 31, 2015 41 $ 15.43 0.9 $ 447 Exercised (31 ) $ 14.93 $ 469 Options outstanding and exercisable at July 31, 2016 10 $ 17.00 0.3 $ 205 Exercised (10 ) $ 17.00 $ 211 Options outstanding and exercisable at July 31, 2017 — The amount of cash received from the exercise of options during fiscal year 2017 was $170,000 and the related tax benefit was $80,000 . The amount of cash received from the exercise of options during fiscal year 2016 was $466,000 and the related tax benefit was $178,000 . The amount of cash received from the exercise of options during fiscal year 2015 was $49,000 and the related tax benefit was $9,000 . We recognized the related compensation expense over the period from the date of grant to the date when the award is no longer contingent on the employee providing additional service to us. We recognized no stock-based compensation expense related to stock options during fiscal years 2017 , 2016 and 2015 . As of July 31, 2017 , 2016 and 2015 we had no unamortized expense associated with outstanding stock options. RESTRICTED S TOCK All of our non-vested restricted stock as of July 31, 2017 was issued under the 2006 Plan with vesting periods from two to five years. A summary of restricted stock transactions under the plans is shown below. Number of Shares (in thousands) Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Unamortized Expense (in thousands) Non-vested restricted stock outstanding at July 31, 2014 122 $ 27.31 2.4 $ 2,226 Granted 11 $ 28.68 Vested (45 ) $ 23.16 Forfeited (14 ) $ 34.05 Non-vested restricted stock outstanding at July 31, 2015 74 $ 28.83 2.1 $ 931 Granted 166 $ 28.62 Vested (41 ) $ 26.46 Forfeited (5 ) $ 31.56 Non-vested restricted stock outstanding at July 31, 2016 194 $ 29.09 3.8 $ 4,282 Granted 31 $ 36.84 Vested (39 ) $ 26.38 Forfeited (1 ) $ 31.24 Non-vested restricted stock outstanding at July 31, 2017 185 $ 30.96 2.8 $ 3,893 We recognized stock-based compensation related to restricted stock of $934,000 , $773,000 and $916,000 , net of related tax effect, in fiscal years 2017 , 2016 and 2015 , respectively. The total restricted stock compensation related tax benefit was $573,000 , $474,000 and $226,000 in fiscal years 2017 , 2016 and 2015 , respectively. |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFITS Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2017 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |
Pension and Other Postretirement Benefits | PENSION AND OTHER POSTRETIREMENT BENEFITS The Oil-Dri Corporation of American Pension Plan (“Pension Plan”) is a defined benefit pension plan for eligible salaried and hourly employees. Pension benefits are based on a formula of years of credited service and levels of compensation or stated amounts for each year of credited service. We also provide a postretirement health benefits plan to domestic salaried employees who meet specific age, participation and length of service requirements at the time of retirement. Eligible employees may elect to continue their health care coverage under the Oil-Dri Corporation of America Employee Benefits Plan until the date certain criteria are met, including attaining the age of Medicare eligibility. We have the right to modify or terminate the postretirement health benefit plan at any time. We also maintain a 401(k) savings plan under which we match a portion of employee contributions. This plan is available to essentially all domestic employees following a specific number of days of employment. Our contributions to this plan, and to similar plans maintained by our foreign subsidiaries, were $746,000 , $685,000 and $683,000 for fiscal years 2017 , 2016 and 2015 , respectively. Obligations and Funded Status The following tables provide a reconciliation of changes in the plans’ benefit obligations, assets’ fair values and funded status by fiscal year (in thousands): Pension Benefits Postretirement Health Benefits 2017 2016 2017 2016 Change in benefit obligation : Benefit obligation, beginning of year $ 55,124 $ 46,749 $ 2,746 $ 2,362 Service cost 1,826 1,502 125 93 Interest cost 1,861 1,928 78 82 Actuarial (gain) loss (3,684 ) 6,304 (11 ) 413 Benefits paid (1,385 ) (1,359 ) (13 ) (204 ) Benefit obligation, end of year 53,742 55,124 2,925 2,746 Change in plan assets: Fair value of plan assets, beginning of year 25,264 25,593 — — Actual return on plan assets 1,921 (234 ) — — Employer contribution 1,657 1,264 13 204 Benefits paid (1,385 ) (1,359 ) (13 ) (204 ) Fair value of plan assets, end of year 27,457 25,264 — — Funded status, recorded in Consolidated Balance Sheets $ (26,285 ) $ (29,860 ) $ (2,925 ) $ (2,746 ) The accumulated benefit obligation for the Pension Plan was $47,880,000 as of July 31, 2017 and $48,981,000 as of July 31, 2016 . The following table shows amounts recognized in the Consolidated Balance Sheets as of July 31 (in thousands): Pension Benefits Postretirement Health Benefits 2017 2016 2017 2016 Deferred income taxes $ 9,311 $ 10,894 $ 1,108 $ 1,041 Other current liabilities $ — $ — $ (49 ) $ (114 ) Other noncurrent liabilities $ (26,285 ) $ (29,860 ) $ (2,876 ) $ (2,632 ) Accumulated other comprehensive loss – net of tax: Net actuarial loss $ 10,036 $ 13,546 $ 315 $ 348 Prior service cost (income) $ 3 $ 4 $ (27 ) $ (31 ) Benefit Costs and Amortizations The following table shows the components of the net periodic pension and postretirement health benefit costs by fiscal year (in thousands): Pension Cost Postretirement Health Benefit Cost 2017 2016 2015 2017 2016 2015 Service cost $ 1,826 $ 1,502 $ 1,606 $ 125 $ 93 $ 133 Interest cost 1,861 1,928 1,855 78 82 106 Expected return on plan assets (1,774 ) (1,923 ) (1,877 ) — — — Amortization of: Net transition obligation — — — — — 1 Prior service costs (income) 2 8 10 (6 ) (6 ) (6 ) Other actuarial loss 1,828 981 584 41 — 37 Net periodic benefit cost $ 3,743 $ 2,496 $ 2,178 $ 238 $ 169 $ 271 The following table shows amounts, net of tax, that are recognized in other comprehensive income by fiscal year (in thousands): Pension Benefits Postretirement Health Benefits 2017 2016 2017 2016 Net actuarial (gain) loss $ (2,377 ) $ 5,245 $ (7 ) $ 256 Amortization of: Prior service (cost) income (2 ) (5 ) 4 4 Amortization of actuarial loss (1,133 ) (608 ) (25 ) — Total recognized in other comprehensive (income) loss $ (3,512 ) $ 4,632 $ (28 ) $ 260 The following table shows amortization amounts, net of tax, expected to be recognized in fiscal year 2018 in accumulated other comprehensive income (in thousands): Amortization of: Pension Benefits Postretirement Health Benefits Net actuarial loss $ 712 $ 12 Prior service cost (income) 2 (4 ) Total to be recognized as other comprehensive loss $ 714 $ 8 Cash Flows We have funded the Pension Plan based upon actuarially determined contributions that take into account the amount deductible for income tax purposes, the normal cost and the minimum contribution required and the maximum contribution allowed under applicable regulations. We expect to contribute approximately $2,141,000 in fiscal year 2018 . The postretirement health plan is an unfunded plan. Our policy is to pay insurance premiums and claims from our assets. The following table shows the estimated future benefit payments by fiscal year (in thousands): Pension Benefits Postretirement Health Benefits 2018 $ 1,542 $ 49 2019 $ 1,628 $ 72 2020 $ 1,641 $ 112 2021 $ 1,755 $ 140 2022 $ 1,859 $ 137 2023-27 $ 11,715 $ 1,351 Assumptions Our pension benefit and postretirement health benefit obligations and the related effects on operations are calculated using actuarial models. Critical assumptions that are important elements of plan expenses and asset/liability measurements include discount rate and expected return on assets for the Pension Plan and health care cost trend for the postretirement health plan. We evaluate these critical assumptions at least annually. Other assumptions involving demographic factors such as retirement age, mortality and turnover are evaluated periodically and are updated to reflect our experience and to meet regulatory requirements. Actual results in any given year will often differ from actuarial assumptions because of economic and other factors. The assumptions used in the previous calculations by fiscal year were as follows: Pension Benefits Postretirement Health Benefits 2017 2016 2017 2016 Discount rate for net periodic benefit costs 3.36% 4.22% 2.71% 3.51% Discount rate for year-end obligations 3.75% 3.36% 3.26% 2.71% Rate of increase in compensation levels for net periodic benefit costs 3.50% 3.50% — — Rate of increase in compensation levels for year-end obligations 3.50% 3.50% — — Long-term expected rate of return on assets 7.00% 7.50% — — The discount rate was based on the Citigroup Pension Discount Curve to determine separately for the Pension Plan and the postretirement health plan, the single equivalent rate that would yield the same present value as the specific plan’s expected cash flows. Our expected rate of return on Pension Plan assets is determined by our asset allocation, our historical long-term investment performance, our estimate of future long-term returns by asset class (using input from our actuaries, investment managers and investment advisors), and long-term inflation assumptions. For fiscal year 2017 , the medical cost trend assumption used for the postretirement health benefit cost was 7.5% . The graded trend rate is expected to decrease to an ultimate rate of 4.5% in fiscal year 2036 . The following table reflects the effect on postretirement health costs and accruals in fiscal year 2017 of a one-percentage point change in the assumed health care cost trend (in thousands): One-Percentage Point Increase One-Percentage Point Decrease Effect on total service and interest cost $29 $(25) Effect on accumulated postretirement benefit obligation $310 $(274) Pension Plan Assets The investment objective for the Pension Plan assets is to optimize long-term return at a moderate level of risk in order to secure the benefit obligations to participants at a reasonable cost. To reach this goal, our investment structure includes various asset classes, asset allocations and investment management styles that, in total, have a reasonable likelihood of producing a sufficient level of overall diversification that balances expected return with expected risk over the long-term. The Pension Plan does not invest directly in Company stock. We measure and monitor the plan’s asset investment performance and the allocation of assets through quarterly investment portfolio reviews. Investment performance is measured by absolute returns, returns relative to benchmark indices and any other appropriate basis of comparison. The targeted allocation percentages of plan assets is shown below for fiscal year 2018 and the actual allocation as of July 31: Asset Allocation Target fiscal 2018 2017 2016 Cash and accrued income 2% —% —% Fixed income 38% 44% 47% Equity 60% 56% 53% The following table sets forth by level, within the fair value hierarchy, the Pension Plan's assets carried at fair value (in thousands): Fair Value At July 31, 2017 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Asset Class Cash and cash equivalents (a) $ 97 $ 97 $ — Equity securities (b) : U.S. companies 8,696 3,933 4,763 International companies 2,119 2,119 — Equity securities - international mutual funds: Developed market (c) 4,207 — 4,207 Emerging markets (d) 374 — 374 Fixed Income: U.S. Treasuries 2,080 — 2,080 Bonds (e) 5,264 — 5,264 Government sponsored entities (f) 2,529 — 2,529 Money market fund (g) 1,087 — 1,087 Other (h) 1,004 — 1,004 Total $ 27,457 $ 6,149 $ 21,308 Fair Value At July 31, 2016 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Asset Class Cash and cash equivalents (a) $ 48 $ 48 $ — Equity securities (b) : U.S. companies 8,132 4,604 3,528 International companies 1,946 1,946 — Equity securities - international mutual funds: Developed market (c) 3,258 — 3,258 Fixed Income: U.S. Treasuries 2,244 — 2,244 Bonds (e) 5,692 — 5,692 Government sponsored entities (f) 2,894 — 2,894 Money market fund (g) 1,050 — 1,050 Total $ 25,264 $ 6,598 $ 18,666 (a) Cash and cash equivalents consists of highly liquid investments which are traded in active markets. (b) This class represents equities traded on regulated exchanges, as well as funds that invest in a portfolio of such stocks. (c) These mutual funds seek long-term capital growth by investing no less than 80% of their assets in stocks of non- U.S. companies that are primarily in developed markets, but also may invest in emerging and less developed markets. (d) These mutual funds seek to track the performance of a benchmark index that measures the investment return of stock issued by companies located in emerging market countries. (e) This class includes bonds of U.S. and non-U.S. corporate issuers from diverse industries and bonds of domestic and foreign municipalities. (f) This class represents a beneficial ownership interest in a pool of single-family residential mortgage loans. These investments are generally not backed by the full faith and credit of the United States government, except for securities valued at $577,000 in our portfolio as of July 31, 2017 and $804,000 as of July 31, 2016 . (g) These money market mutual funds seek to provide current income consistent with liquidity and stability of principal by investing in a diversified portfolio of high quality, short-term, dollar-denominated debt securities. These funds may include securities issued or guaranteed as to principal and interest by the U.S. government or its agencies, short-term securities issued by domestic or foreign banks, domestic and dollar-denominated foreign commercial papers, and other short-term corporate obligations and obligations issued or guaranteed by one or more foreign governments. (h) This class seeks long-term positive returns by employing a number of arbitrage and alternative investment strategies. The portfolio of instruments may include equities, debt securities, warrants, options, swaps, future contracts, forwards or other types of derivative instruments. |
DEFERRED COMPENSATION Level 1 (
DEFERRED COMPENSATION Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2017 | |
DEFERRED COMPENSATION [Abstract] | |
Deferred Compensation | DEFERRED COMPENSATION Oil-Dri's deferred compensation plans permit directors and certain management employees to defer portions of their compensation and to earn interest on the deferred amounts. Participants have deferred $677,000 and $483,000 into these plans in fiscal years 2017 and 2016 , respectively. We recorded $404,000 and $438,000 of interest expense associated with these plans in fiscal years 2017 and 2016 , respectively. Payments to participants were $581,000 and $570,000 in fiscal years 2017 and 2016 , respectively, and the total liability recorded for deferred compensation was $9,617,000 and $9,117,000 as of July 31, 2017 and 2016 , respectively. The Oil-Dri Corporation of America Annual Incentive Plan provides certain executives with the opportunity to receive a deferred executive bonus award if certain financial goals are met. A total of $583,000 and $763,000 were awarded to certain executives for fiscal years 2017 and 2016 , respectively. These awards will vest and accrue interest over a three -year period. Both of the above deferred compensation plans are unfunded. We fund these benefits when payments are made, and the timing and amount of the payments are determined according to the plans' provisions and, for certain plans, according to individual employee agreements. The Oil-Dri Corporation of America Supplemental Executive Retirement Plan (“SERP”) provides certain retired participants in the Pension Plan with the amount of benefits that would have been provided under the Pension Plan but for: (1) the limitations on benefits imposed by Section 415 of the Internal Revenue Code (“Code”), and/or (2) the limitation on compensation for purposes of calculating benefits under the Pension Plan imposed by Section 401(a)(17) of the Code. The SERP liability is actuarially determined at the end of each fiscal year using assumptions similar to those used for the Pension Plan, see Note 8 of the Notes to the Consolidated Financial Statements. The SERP liability was $2,082,000 and $1,968,000 as of July 31, 2017 and July 31, 2016 , respectively. We recorded expense related to the SERP of $114,000 in fiscal year 2017 , which was lower than the $535,000 in fiscal year 2016 due primarily to an increase in the discount rate. The SERP is unfunded and benefits will be funded when payments are made. |
OTHER CONTINGENCIES Level 1 (No
OTHER CONTINGENCIES Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2017 | |
OTHER CONTINGENCIES [Abstract] | |
Other Contingencies Disclosure | OTHER CONTINGENCIES We are party to various legal actions from time to time that are ordinary in nature and incidental to the operation of our business. While it is not possible at this time to determine with certainty the ultimate outcome of these or other lawsuits, we believe that none of the pending proceedings will have a material adverse effect on our business, financial condition, results of operations or cash flows. See Item 3 “ Legal Proceedings ” for more information about specific legal matters related to our patents. |
LEASES Level 1 (Notes)
LEASES Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2017 | |
Leases [Abstract] | |
Leases of Lessor Disclosure | LEASES Our mining operations are conducted on property we lease or own. These leases generally provide us with the right to mine as long as we continue to pay a minimum monthly rental, which is typically applied against the per ton royalty when the property is mined. We also lease certain offices and production facilities. In addition, we may lease vehicles, railcars, mining property and equipment, warehouse space, data processing equipment, and office equipment. In most cases, we expect that, in the normal course of business, leases will be renewed or replaced by other leases. The following is a schedule by fiscal year of future minimum rent requirements under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of July 31, 2017 (in thousands): 2018 $ 2,099 2019 $ 1,634 2020 $ 1,422 2021 $ 1,384 2022 $ 943 Later years $ 8,564 The following schedule shows the composition of total rent expense by fiscal year for all operating leases, including those with terms of one month or less which were not renewed (in thousands): 2017 2016 2015 Vehicles and Railcars $ 1,431 $ 1,439 $ 1,559 Office facilities 959 945 928 Warehouse facilities 379 419 311 Mining properties: Minimum 113 124 123 Contingent (1) 191 239 239 Other 78 61 46 $ 3,151 $ 3,227 $ 3,206 (1) Contingent mining royalty payments are determined based on the tons of raw clay mined. |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2017 | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | |
Quarterly Financial Information | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) A summary of selected information for fiscal years 2017 and 2016 is as follows (in thousands, except for per share amounts): Fiscal Year 2017 Quarter Ended October 31 January 31 April 30 July 31 Fiscal 2017 Net Sales $ 66,612 $ 65,174 $ 64,745 $ 65,776 $ 262,307 Gross Profit $ 20,725 $ 19,125 $ 17,781 $ 16,081 $ 73,712 Net Income $ 2,009 $ 4,250 $ 3,211 $ 1,322 $ 10,792 Net Income Per Share Basic Common $ 0.30 $ 0.63 $ 0.48 $ 0.20 $ 1.60 Basic Class B Common $ 0.23 $ 0.47 $ 0.36 $ 0.15 $ 1.20 Diluted Common $ 0.28 $ 0.58 $ 0.44 $ 0.18 $ 1.47 Dividends Per Share Common $ 0.2200 $ 0.2200 $ 0.2200 $ 0.2300 $ 0.8900 Class B Common $ 0.1650 $ 0.1650 $ 0.1650 $ 0.1730 $ 0.6680 Common Stock Price Range High $ 39.52 $ 40.94 $ 40.95 $ 43.84 Low $ 32.55 $ 31.35 $ 33.26 $ 33.61 Fiscal Year 2016 Quarter Ended October 31 January 31 April 30 July 31 Fiscal 2016 Net Sales $ 67,795 $ 65,367 $ 64,235 $ 64,916 $ 262,313 Gross Profit $ 20,653 $ 19,062 $ 18,568 $ 18,866 $ 77,149 Net Income (Loss) $ 5,423 $ 3,821 $ (892 ) $ 5,261 $ 13,613 Net Income Per Share Basic Common $ 0.82 $ 0.57 $ (0.14 ) $ 0.78 $ 2.04 Basic Class B Common $ 0.61 $ 0.43 $ (0.10 ) $ 0.59 $ 1.53 Diluted Common $ 0.75 $ 0.53 $ (0.13 ) $ 0.72 $ 1.87 Dividends Per Share Common $ 0.2100 $ 0.2100 $ 0.2100 $ 0.2200 $ 0.8500 Class B Common $ 0.1575 $ 0.1575 $ 0.1575 $ 0.1650 $ 0.6375 Common Stock Price Range High $ 31.61 $ 38.92 $ 38.43 $ 37.67 Low $ 21.65 $ 28.42 $ 32.24 $ 29.89 |
SUBSEQUENT EVENTS Level 1 (Note
SUBSEQUENT EVENTS Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Management has evaluated subsequent events through the date the financial statements were issued. Based on our evaluation no events have occurred that would require recognition in the Consolidated Financial Statements or disclosure in the Notes to the Consolidated Financial Statements. |
RELATED PARTY TRANSACTIONS (Not
RELATED PARTY TRANSACTIONS (Notes) | 12 Months Ended |
Jul. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | RELATED PARTIES One member of our Board of Directors is currently the President and Chief Executive Officer of a customer of ours. Total net sales to that customer, including sales to subsidiaries of that customer, were $395,000 and $434,000 for fiscal years 2017 and 2016 , respectively. There were no outstanding accounts receivable from that customer, and its subsidiaries, as of July 31, 2017 . Outstanding amounts due from that customer, and its subsidiaries, were $28,000 as of July 31, 2016 . One member of our Board of Directors is currently the President and Chief Executive Officer of a vendor of ours. Total payments to this vendor for fees and cost reimbursements were $321,000 and $207,000 for fiscal years 2017 and 2016 , respectively. Outstanding accounts payable to that vendor were $19,000 as of July 31, 2017 . There were no outstanding amounts due to that vendor as of July 31, 2016 . |
SUMMARY OF SIGNIFICANT ACCOUN22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Level 2 (Policies) | 12 Months Ended |
Jul. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Principles of Consolidation | P RINCIPLES OF C ONSOLIDATION The Consolidated Financial Statements include the accounts of Oil-Dri Corporation of America and its subsidiaries, all of which are wholly-owned. All significant intercompany balances and transactions have been eliminated from the Consolidated Financial Statements. |
Management Use of Estimates | M ANAGEMENT U SE OF E STIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. For more information see Critical Accounting Policies and Estimates in Item 7 “ Management's Discussion and Analysis of Financial Condition and Results of Operations. ” |
Cash and Cash Equivalents | C ASH AND C ASH E QUIVALENTS Cash equivalents are highly liquid investments with maturities of three months or less. |
Short-Term Investments | S HORT - TERM I NVESTMENTS The table below shows the composition of short-term investments as of July 31 (in thousands): 2017 2016 U.S. Treasury securities $ 13,976 $ 5,998 Certificates of deposit 9,600 4,186 Short-term investments $ 23,576 $ 10,184 Short-term investments have maturities of one year or less. We intend and have the ability to hold these investments to maturity; therefore, these investments are reported at amortized cost. |
Trade Receivables | T RADE R ECEIVABLES We recognize trade receivables when the risk of loss and title pass to the customer. We record an allowance for doubtful accounts based on our historical experience and a periodic review of our accounts receivable, including a review of the overall aging of accounts, consideration of customer credit risk and analysis of facts and circumstances about specific accounts. A customer account is determined to be uncollectible when it is probable that a loss will be incurred after we have completed our internal collection procedures, including termination of shipments, direct customer contact and formal demand of payment. We retain outside collection agencies to facilitate our collection efforts. Past due status is determined based on contractual terms and customer payment history. |
Inventories | I NVENTORIES We value inventories at the lower of cost (first-in, first-out) or market. We recorded inventory obsolescence reserves of approximately $619,000 and $806,000 as of July 31, 2017 and 2016 , respectively. The composition of inventories was as follows as of July 31 (in thousands): 2017 2016 Finished goods $ 14,704 $ 14,032 Packaging 4,988 4,672 Other 2,923 4,547 Inventories $ 22,615 $ 23,251 |
Translation of Foreign Currencies | T RANSLATION OF F OREIGN C URRENCIES Assets and liabilities of foreign subsidiaries, where the local currency is the functional currency, are translated to U.S. Dollars at the exchange rates in effect at period end. Income statement items are translated at the average exchange rate on a monthly basis. Resulting translation adjustments are recorded as a separate component of stockholders’ equity. |
Intangible Assets and Goodwill | I NTANGIBLES AND G OODWILL We amortize most of our intangibles on a straight-line basis over periods ranging from ten to 20 years. Our customer list intangible asset is amortized at an accelerated amortization rate in the earlier years to reflect the expected pattern of decline in the related benefits over time. Intangible amortization was $1,228,000 in fiscal year 2017 and $1,410,000 in fiscal year 2016 . We have some intangible assets that were determined to have indefinite lives and are not amortized, specifically one acquired trademark recorded at $376,000 . Our estimated intangible amortization expense for the next five fiscal years is as follows (in thousands): 2018 $ 1,011 2019 $ 826 2020 $ 657 2021 $ 473 2022 $ 323 The weighted average amortization period of our intangibles subject to amortization is as follows (in years): Weighted Average Amortization Period Trademarks and patents 14.5 Debt issuance costs 3.1 Customer list 6.3 Total intangible assets subject to amortization 6.8 We periodically review indefinite-lived intangibles and goodwill to assess for impairment. Our review is based on cash flow considerations and other approaches that require significant judgment with respect to volume, revenue, expenses and allocations. Impairment occurs when the carrying value exceeds the fair value. Much of our goodwill cannot be specifically assigned to one of our operating segments because of the shared nature of our production facilities; however, for purposes of our most recent impairment analysis we estimated the goodwill allocation and assigned $5,464,000 to the Retail and Wholesale Products Group and $3,570,000 to the Business to Business Products Group. Our impairment analysis has historically been performed in the first quarter of the fiscal year; however, beginning in fiscal year 2016 we performed, and going forward we will perform, our annual impairment testing in the fourth quarter of our fiscal year. We will continue to consider the need to re-perform impairment testing throughout the year when circumstances such as unexpected adverse economic factors, unanticipated technological changes, competitive activities and acts by governments and courts indicate that an asset may become impaired. We believe the change in impairment testing date is not a material change to our method of applying an accounting principle. There was no impairment required based on our analysis for fiscal years 2017 , 2016 or 2015 . |
Overburden Removal and Mining Costs | O VERBURDEN R EMOVAL AND M INING C OSTS We mine sorbent materials on property that we either own or lease as part of our overall operations. A significant part of our overall mining cost is incurred during the process of removing the overburden from the mine site, thus exposing the sorbent material used in a majority of our production processes. These stripping costs are treated as a variable inventory production cost and are included in cost of sales in the period they are incurred. Stripping costs included in cost of sales were approximately $2,936,000 , $3,020,000 , and $2,939,000 for fiscal years 2017 , 2016 and 2015 , respectively. We defer and amortize the pre-production overburden removal costs associated with opening a new mine. No pre-production overburden removal costs were deferred in the last two fiscal years. Additionally, it is our policy to capitalize the purchase cost of land and mineral rights, including associated legal fees, survey fees and real estate fees. The costs of obtaining mineral rights, including legal fees and drilling expenses, are also capitalized. The amount of land and mineral rights included in land on the Consolidated Balance Sheets were approximately $13,453,000 and $2,165,000 , respectively, as of July 31, 2017 and $13,659,000 and $2,165,000 , respectively, as of July 31, 2016 . Pre-production development costs on new mines and any prepaid royalties that may be offset against future royalties due upon extraction of the mineral are also capitalized. No capitalized pre-production development costs were recorded in fiscal years 2017 and 2016 . Prepaid royalties included in current prepaid expenses and in non-current other assets on the Consolidated Balance Sheets were approximately $1,122,000 and $1,103,000 as of July 31, 2017 and 2016 , respectively. |
Reclamation | R ECLAMATION We perform ongoing reclamation activities during the normal course of our overburden removal. As overburden is removed from a mine site, it is hauled to previously mined sites and is used to refill older sites. This process allows us to continuously reclaim older mine sites and dispose of overburden simultaneously, therefore minimizing the costs associated with the reclamation process. On an annual basis we evaluate our potential reclamation liability in accordance with ASC 410, Asset Retirement and Environmental Obligations. The reclamation assets are depreciated over the estimated useful lives of the various mines. The reclamation liabilities are increased based on a yearly accretion charge over the estimated useful lives of the mines. |
Property, Plant and Equipment | P ROPERTY , P LANT AND E QUIPMENT Property, plant and equipment are generally depreciated using the straight-line method over their estimated useful lives which are listed below. Depreciation expense was $11,544,000 , $10,782,000 and $10,352,000 in fiscal years 2017 , 2016 and 2015 , respectively. Major improvements and betterments are capitalized, while maintenance and repairs that do not extend the useful life of the applicable assets are expensed as incurred. Interest expense may also be capitalized for assets that require a period of time to get them ready for their intended use. Capitalized interest was $80,000 and $72,000 in fiscal years 2017 and 2016 , respectively. There was no significant capitalized interest in fiscal year 2015 . Years Buildings and leasehold improvements 3 - 39 Machinery and equipment Packaging 2 - 20 Processing 2 - 25 Mining and other 3 - 15 Office furniture and equipment 2 - 12 Vehicles 3 - 15 Property, plant and equipment are carried at cost on the Consolidated Balance Sheets and are reviewed for possible impairment on an annual basis or when circumstances indicate impairment that an asset may become impaired. We take into consideration idle and underutilized equipment and review business plans for possible impairment. When impairment is indicated, an impairment charge is recorded for the difference between the carrying value of the asset and its fair market value. There was no impairment recorded in fiscal years 2017 , 2016 or 2015 . |
Trade Promotions | T RADE P ROMOTIONS We routinely commit to one-time or ongoing trade promotion programs, primarily in our Retail and Wholesale Products Group. All such costs are netted against sales. We have accrued liabilities at the end of each period for the estimated expenses incurred but not yet paid for these programs. Promotional reserves are provided for sales incentives made directly to consumers, such as coupons, and sales incentives made to customers, such as slotting, discounts based on sales volume, cooperative marketing programs and other arrangements. We use judgment for estimates to determine our trade spending liabilities. We rely on our historical experience of trade spending patterns and that of the industry, current trends and forecast data. |
Advertising | A DVERTISING Advertising costs for the development of printed materials, television commercials, web-based digital banners, web-based social media and sales videos are deferred and expensed upon the first use of the materials, unless such amounts are immaterial. Costs paid for communicating advertising over a period of time, such as television air time, radio commercials and print media advertising space, are deferred and expensed on a pro-rata basis. All other advertising costs, including participation in industry conventions and shows and market research, are expensed when incurred. All advertising costs are part of selling, general and administrative expenses. Advertising expenses were approximately $13,751,000 , $18,083,000 , and $5,154,000 in fiscal years 2017 , 2016 and 2015 , respectively. Advertising expense was significantly higher in fiscal year 2016 due to an integrated marketing campaign launched in March 2016 to promote our Cat's Pride Fresh & Light Ultimate Care lightweight cat litter. |
Fair Value of Financial Instruments | F AIR V ALUE OF F INANCIAL I NSTRUMENTS Non-derivative financial instruments included in the Consolidated Balance Sheets are cash and cash equivalents, short-term investments and notes payable. These instruments, except for notes payable, were carried at amounts approximating fair value as of July 31, 2017 and 2016 . Short-term investments were certificates of deposits and treasury securities. We intend and have the ability to hold our short-term investments to maturity; therefore, these investments were reported at amortized cost on the Consolidated Balance Sheets, which approximated fair value. See Note 4 of the Notes to the Consolidated Financial Statements for additional information regarding the fair value of our financial instruments, including notes payable. |
Revenue Recognition | R EVENUE R ECOGNITION We recognize revenue when risk of loss and title are transferred under the terms of our sales agreements with customers at a fixed and determinable price and collection of payment is probable. Taxes collected from customers and remitted to governmental authorities are excluded from net sales. Sales returns and allowances are not material. |
Cost of Sales | C OST OF S ALES Cost of sales consists of all manufacturing costs, including depreciation and amortization related to assets used in the manufacturing and distribution process, inbound and outbound freight, inspection costs, purchasing costs associated with materials and packaging used in the production process and warehouse and distribution costs. |
Shipping and Handling Costs | S HIPPING AND H ANDLING C OSTS Shipping and handling costs are included in cost of sales and were approximately $39,226,000 , $41,301,000 and $46,292,000 for fiscal years 2017 , 2016 and 2015 , respectively. |
Selling, General and Administrative Expenses | S ELLING , G ENERAL AND A DMINISTRATIVE E XPENSES Selling, general and administrative expenses include salaries, wages and benefits associated with staff outside the manufacturing and distribution functions, all marketing related costs, any miscellaneous trade spending expenses not required to be included in net sales, research and development costs, depreciation and amortization related to assets outside the manufacturing and distribution process and all other non-manufacturing and non-distribution expenses. |
Research and Development | R ESEARCH AND D EVELOPMENT Research and development costs of approximately $3,215,000 , $3,025,000 and $2,809,000 were charged to expense as incurred for fiscal years 2017 , 2016 and 2015 , respectively. |
Pension and Postretirement Benefit Costs | P ENSION AND P OSTRETIREMENT B ENEFIT C OSTS We provide a defined benefit pension plan for eligible salaried and hourly employees and we make contributions to fund the plan. We also provide a postretirement health benefit plan to domestic salaried employees who qualify under the plan’s provisions. The postretirement health benefit plan is unfunded. Our pension and postretirement health benefit plans are accounted for using actuarial valuations required by ASC 715, Compensation – Retirement Benefits . The funded status of our defined pension and postretirement health benefit plans are recognized on the Consolidated Balance Sheets. Changes in the funded status that arise during the period but are not recognized as components of net periodic benefit cost are recognized within other comprehensive income, net of income tax. See Note 8 of the Notes to the Consolidated Financial Statements for additional information. |
Stock-Based Compensation | S TOCK -B ASED C OMPENSATION We account for stock options and restricted stock issued under our long term incentive plans in accordance with ASC 718, Compensation – Stock Compensation . The fair value of stock-based compensation is determined at the grant date. The related compensation expense is recognized over the appropriate vesting period. See Note 7 of the Notes to the Consolidated Financial Statements for additional information. We determined the fair value of stock options and restricted stock issued under our long term incentive plans as of the grant date. The fair value of restricted stock was determined by the closing market price of our Common Stock on the date of grant multiplied by the number of shares granted. The fair value of the stock options was estimated on the date of the grant using a Black-Scholes option valuation model that used various assumptions. The risk free interest rate was based on the U.S. Treasury yield curve in effect at the time of grant. Expected life (estimated period of time outstanding) of a grant was determined by reference to the vesting schedule, past exercise behavior and comparison with other reporting companies. The dividend rate at the date of grant was used as the best estimate of future dividends. Expected volatility was determined by calculating the standard deviation of our stock price for the five years immediately prior to the grant date. This period of time closely resembles the expected term. All stock options issued under our plans have an exercise price equal to the closing market price of our Common Stock on the date of grant. |
Income Taxes | I NCOME TAXES Deferred income tax assets and liabilities are recorded for the impact of temporary differences between the tax basis of assets and liabilities and the amounts recognized for financial reporting purposes. Deferred tax assets are reviewed and a valuation allowance is established if management believes that it is more likely than not that some portion of our deferred tax assets will not be realized. Changes in valuation allowances from period to period are included in the tax provision in the period of change. In addition to existing valuation allowances, we provide for uncertain tax positions, if necessary, when such tax positions do not meet the recognition thresholds or measurement standards prescribed by ASC 740, Income Taxes . Amounts for uncertain tax positions are adjusted when new information becomes available or when positions are effectively settled. We recognize interest and penalties accrued related to uncertain tax positions in income tax (benefit) expense. U.S. income tax expense and foreign withholding taxes are provided on remittances of foreign earnings and on unremitted foreign earnings that are not indefinitely reinvested. Where unremitted foreign earnings are indefinitely reinvested, no provision for federal or state tax expense is recorded. When circumstances change and we determine that some or all of the undistributed earnings will be remitted in the foreseeable future, a corresponding expense is accrued in the current period. See Note 5 of the Notes to the Consolidated Financial Statements for additional information about income taxes. |
New Accounting Pronouncements | N EW A CCOUNTING P RONOUNCEMENTS Recently Adopted Accounting Pronouncements In fiscal year 2017 we adopted FASB guidance under ASC 835, Simplifying the Presentation of Debt Issuance Cost, which requires debt issuance costs related to notes payable to be presented as a direct deduction from the associated debt liability rather than as an asset. Amortization of these costs continue to be reported as interest expense. We adopted this guidance retrospectively, which resulted in a decrease in Other Assets of $118,000 with a corresponding decrease in Noncurrent Liabilities in our Consolidated Balance Sheets as of July 31, 2016. The new requirements had no impact on our results of operations or cash flows. In fiscal year 2017 we adopted FASB guidance under ASC 205, Presentation of Financial Statements - Going Concern . This guidance defines management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern and to provide related footnote disclosures. Management performed this evaluation and determined there was no doubt about the Company's ability to continue as a going concern, therefore no disclosures were required. Recently Issued Accounting Standards We plan to adopt FASB issued guidance under ASC 330, Simplifying the Measurement of Inventory in our first quarter of fiscal year 2018 . The new guidance requires inventory to be measured at the lower of cost and net realizable value, which is defined as the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. We are currently evaluating the impact of the adoption of this requirement; however, we do not believe the results of our current inventory valuation policy will be substantially changed and the implementation of this guidance will not have a material impact on our Consolidated Financial Statements. We plan to adopt FASB guidance under ASC 740, Balance Sheet Classification of Deferred Taxes, which requires deferred tax liabilities and assets to be classified as noncurrent in a classified statement of financial position. We expect to reclassify approximately $ 2,787,000 from Total Current Assets to Total Other Assets on the unaudited balance sheet as of October 31, 2017 included in our fiscal year 2018 first quarterly report on Form 10-Q. Prior periods presented will also be restated accordingly. We plan to adopt FASB guidance under ASC 718, Compensation-Stock Compensation, in our first quarter of fiscal year 2018. The new guidance allows for a policy election to account for forfeitures as they occur rather than on an estimated basis. We do not plan to make this election. We will continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. The new guidance also simplifies several aspects of the accounting for share-based payment transactions, including requiring excess tax benefits and tax deficiencies to be recognized as income tax benefits or expenses in the consolidated statement of earnings. Additionally, the standard requires cash flows from excess tax benefits and deficiencies, previously classified as a financing activity, to be classified as an operating activity in the consolidated statement of cash flows. Oil-Dri will adopt the accounting and cash flow presentation provisions of the guidance on a prospective basis. The adoption is expected to impact Oil-Dri's income tax provision on its Consolidated Statements of Operations and its operating and financing cash flows on its Consolidated Statements of Cash Flows. The amount of the impact of adopting this standard on the Consolidated Financial Statements will be dependent on the timing and value of future share-based compensation awards. In May 2014, the FASB issued guidance under ASC 606, Revenue from Contracts with Customers , which establishes a single comprehensive revenue recognition model for all contracts with customers and will supersede most existing revenue guidance. This guidance was subsequently amended several times to further clarify the principles for recognizing revenue. The guidance requires entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to receive in exchange. Oil-Dri's revenue is generated from the sale of finished goods to customers. Those sales predominantly contain a single delivery obligation. Under Oil-Dri's current accounting policy, revenue is recognized at a single point in time when ownership, risks and rewards transfer. We are currently in the process of performing a comprehensive evaluation of the revenue requirements, including the impact on how we record certain incentives and advertising arrangements, as well as significant new disclosure requirements. We plan to adopt the standard at the beginning of our first quarter of fiscal year 2019. Transition options to implement this guidance include either a full or modified retrospective approach and early adoption is permitted. We expect to use the modified retrospective implementation method. In January 2016, the FASB issued guidance under ASC 825, Recognition and Measurement of Financial Assets and Financial Liabilities. This guidance addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The provisions relevant to us at this time require the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes, as well as eliminates the requirement to disclose the method and significant assumptions used to estimate the fair value in such disclosure. This guidance is effective for our first quarter of fiscal year 2019 and early adoption is generally not permitted. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. In February 2016, the FASB issued guidance under ASC 842, Leases , which provides that, for leases with a term greater than 12 months, a lessee must recognize in the statement of financial position both a liability to make lease payments and an asset representing its right to use the underlying asset. Other requirements describe expense recognition, as well as financial statement presentation and disclosure. This guidance is effective for our first quarter of fiscal year 2020 using a modified retrospective approach, which includes a number of optional practical expedients. Early adoption is permitted. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. In June 2016, the FASB issued guidance under ASC 326, Financial Instruments-Credit Losses , which requires companies to utilize an impairment model for most financial assets measured at amortized cost and certain other financial instruments, which include trade and other receivables, loans and held-to-maturity debt securities, to record an allowance for credit risk based on expected losses rather than incurred losses. In addition, this new guidance changes the recognition method for credit losses on available-for-sale debt securities, which can occur as a result of market and credit risk, as well as additional disclosures. In general, this guidance will require modified retrospective adoption for all outstanding instruments that fall under this guidance. This guidance is effective for our first quarter of fiscal year 2021. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. In March 2017, the FASB issued guidance under ASC 715, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires presenting the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. This standard also requires that other components of the net periodic benefit cost be presented separately from the line item(s) that includes service costs and outside of any subtotal of operating income, if one is presented, on a retrospective basis. Additionally, the new guidance limits the components that are eligible for capitalization in assets to only the service cost component. The new guidance is effective for our first quarter of fiscal year 2019, with early adoption permitted. We are currently evaluating the impact of the adoption of this requirement on our Consolidated Financial Statements. There have been no other accounting pronouncements issued but not yet adopted by us which are expected to have a material impact on our Consolidated Financial Statements. |
OPERATING SEGMENTS Level 2 (Pol
OPERATING SEGMENTS Level 2 (Policy) | 12 Months Ended |
Jul. 31, 2017 | |
Accounting Policies [Abstract] | |
Segment Reporting | We have two reportable operating segments: (1) Retail and Wholesale Products Group and (2) Business to Business Products Group. These operating segments are managed separately and each segment's major customers have different characteristics. The Retail and Wholesale Products Group customers include mass merchandisers, wholesale clubs, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores, distributors of industrial cleanup and automotive products, environmental service companies and sports field product users. The Business to Business Products Group customers include: processors and refiners of edible oils, petroleum-based oils and biodiesel fuel; manufacturers of animal feed and agricultural chemicals; distributors of animal health and nutrition products; and marketers of consumer products. |
FINANCIAL INSTRUMENTS Fair Valu
FINANCIAL INSTRUMENTS Fair Value (Policies) | 12 Months Ended |
Jul. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement, Policy [Policy Text Block] | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The inputs used to measure fair value are prioritized into one of three categories based on the lowest level of input that is significant to the fair value measurement. Categories in the hierarchy are as follows: Level 1: Financial assets and liabilities whose values are based on quoted market prices in active markets for identical assets or liabilities. Level 2: Financial assets and liabilities whose values are based on: 1) Quoted prices for similar assets or liabilities in active markets. 2) Quoted prices for identical or similar assets or liabilities in markets that are not active. 3) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability. Level 3: Financial assets and liabilities whose values are based on valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs may reflect estimates of the assumptions that market participants would use in valuing the financial assets and liabilities. |
STOCK-BASED COMPENSATION STOCK-
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION (Policies) | 12 Months Ended |
Jul. 31, 2017 | |
Accounting Policies [Abstract] | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | S TOCK -B ASED C OMPENSATION We account for stock options and restricted stock issued under our long term incentive plans in accordance with ASC 718, Compensation – Stock Compensation . The fair value of stock-based compensation is determined at the grant date. The related compensation expense is recognized over the appropriate vesting period. See Note 7 of the Notes to the Consolidated Financial Statements for additional information. We determined the fair value of stock options and restricted stock issued under our long term incentive plans as of the grant date. The fair value of restricted stock was determined by the closing market price of our Common Stock on the date of grant multiplied by the number of shares granted. The fair value of the stock options was estimated on the date of the grant using a Black-Scholes option valuation model that used various assumptions. The risk free interest rate was based on the U.S. Treasury yield curve in effect at the time of grant. Expected life (estimated period of time outstanding) of a grant was determined by reference to the vesting schedule, past exercise behavior and comparison with other reporting companies. The dividend rate at the date of grant was used as the best estimate of future dividends. Expected volatility was determined by calculating the standard deviation of our stock price for the five years immediately prior to the grant date. This period of time closely resembles the expected term. All stock options issued under our plans have an exercise price equal to the closing market price of our Common Stock on the date of grant. |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Short-Term Investments | The table below shows the composition of short-term investments as of July 31 (in thousands): 2017 2016 U.S. Treasury securities $ 13,976 $ 5,998 Certificates of deposit 9,600 4,186 Short-term investments $ 23,576 $ 10,184 |
Inventories | The composition of inventories was as follows as of July 31 (in thousands): 2017 2016 Finished goods $ 14,704 $ 14,032 Packaging 4,988 4,672 Other 2,923 4,547 Inventories $ 22,615 $ 23,251 |
Estimated Intangible Amortization Expense | Our estimated intangible amortization expense for the next five fiscal years is as follows (in thousands): 2018 $ 1,011 2019 $ 826 2020 $ 657 2021 $ 473 2022 $ 323 |
Acquired Finite-Lived Intangible Assets Weighted Average Amortization Period | The weighted average amortization period of our intangibles subject to amortization is as follows (in years): Weighted Average Amortization Period Trademarks and patents 14.5 Debt issuance costs 3.1 Customer list 6.3 Total intangible assets subject to amortization 6.8 |
Property, Plant and Equipment Estimated Useful Lives | Years Buildings and leasehold improvements 3 - 39 Machinery and equipment Packaging 2 - 20 Processing 2 - 25 Mining and other 3 - 15 Office furniture and equipment 2 - 12 Vehicles 3 - 15 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
OPERATING SEGMENTS [Abstract] | |
Segment Reporting Information | Net sales and operating income for each segment are provided below. Revenues by product line are not provided because it would be impracticable to do so. The accounting policies of the segments are the same as those described in the Note 1 of the Notes to the Consolidated Financial Statements. We do not rely on any operating segment asset allocations and we do not consider them meaningful because of the shared nature of our production facilities; however, we have estimated the segment asset allocations below for those assets for which we can reasonably determine. The unallocated asset category is the remainder of our total assets. The asset allocation is estimated and is not a measure used by our chief operating decision maker about allocating resources to the operating segments or in assessing their performance. The corporate expenses line represents certain unallocated expenses, including primarily salaries, wages and benefits, purchased services, rent, utilities and depreciation and amortization associated with corporate functions such as research and development, information systems, finance, legal, human resources and customer service. Corporate expenses also include the annual incentive plan bonus accrual. July 31, Assets 2017 2016 2015 (in thousands) Business to Business Products $ 65,337 $ 61,007 $ 55,767 Retail and Wholesale Products 90,508 91,626 96,043 Unallocated assets (1) 56,730 52,182 38,075 Total Assets $ 212,575 $ 204,815 $ 189,885 Year Ended July 31, Net Sales Income 2017 2016 2015 2017 2016 2015 (in thousands) Business to Business Products $ 100,419 $ 96,444 $ 92,326 $ 33,343 $ 33,464 $ 29,406 Retail and Wholesale Products 161,888 165,869 169,076 6,775 5,009 5,206 Total sales $ 262,307 $ 262,313 $ 261,402 Corporate expenses (24,888 ) (23,060 ) (19,459 ) Income from operations 15,230 15,413 15,153 Total other expense, net (685 ) (1,056 ) (984 ) Income before income taxes 14,545 14,357 14,169 Income taxes (3,753 ) (744 ) (2,801 ) Net income $ 10,792 $ 13,613 $ 11,368 |
Financial information by geographic region | The following is a summary by fiscal year of financial information by geographic region (in thousands): 2017 2016 2015 Sales to unaffiliated customers by: Domestic operations $ 249,772 $ 251,054 $ 250,377 Foreign subsidiaries $ 12,535 $ 11,259 $ 11,025 Sales or transfers between geographic areas: Domestic operations $ 5,842 $ 5,723 $ 5,606 Income (Loss) before income taxes: Domestic operations $ 14,524 $ 15,129 $ 15,389 Foreign subsidiaries $ 21 $ (772 ) $ (1,220 ) Net Income (Loss): Domestic operations $ 10,833 $ 14,574 $ 12,629 Foreign subsidiaries $ (41 ) $ (961 ) $ (1,261 ) Identifiable assets: Domestic operations (1) $ 204,547 $ 197,518 $ 182,123 Foreign subsidiaries $ 8,028 $ 7,297 $ 7,762 |
Largest Customer Information | Sales to Walmart, our largest customer, are included in our Retail and Wholesale Products Group. The percentage of consolidated net sales and net accounts receivable attributed to Walmart are shown in the table below: 2017 2016 2015 Net sales for the years ended July 31 20% 19% 18% Net accounts receivable as of July 31 28% 29% 27% |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Notes Payable [Abstract] | |
Schedule of Notes Payable | The composition of notes payable is as follows as of July 31 (in thousands): 2017 2016 Senior notes payable in annual principal installments on August 1: $3,083 in each fiscal year 2018 through 2021. Interest is payable semiannually at an annual rate of 3.96% $ 12,333 $ 15,416 Less current maturities of notes payable (3,083 ) (3,083 ) Less unamortized debt issuance costs $ (89 ) $ (118 ) Noncurrent notes payable (1) $ 9,161 $ 12,215 |
Schedule of Maturities | The following is a schedule by fiscal year of future principal maturities of notes payable as of July 31, 2017 (in thousands): 2018 $ 3,083 2019 3,083 2020 3,083 2021 3,084 2022 — $ 12,333 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
FAIR VALUE [Abstract] | |
Schedule of Fair Value | The following table summarizes our financial assets and liabilities that were reported at fair value by level within the fair value hierarchy (in thousands): Fair Value at July 31, 2017 Fair Value at July 31, 2016 Level 1 Level 1 Assets Cash equivalents $ 3,814 $ 7,626 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
INCOME TAXES [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income tax expense (benefit) by fiscal year consists of the following (in thousands): 2017 2016 2015 Current Federal $ 2,715 $ 3,298 $ 4,296 Foreign 23 15 (40 ) State 577 1,051 1,081 Current Income Tax Total 3,315 4,364 5,337 Deferred Federal 335 (3,277 ) (2,242 ) Foreign 40 174 68 State 63 (517 ) (362 ) Deferred Income Tax Total 438 (3,620 ) (2,536 ) Total Income Tax Expense $ 3,753 $ 744 $ 2,801 |
Schedule of Effective Income Tax Rate Reconciliation | Principal reasons for variations between the statutory federal rate and the effective rates by fiscal year were as follows: 2017 2016 2015 U.S. federal income tax rate 35.0 % 35.0 % 35.0 % Depletion deductions allowed for mining (12.8 ) (13.8 ) (9.5 ) State income tax expense, net of federal tax expense 2.9 2.5 3.4 Difference in effective tax rate of foreign subsidiaries — 1.2 2.2 Prior year income taxes 2.4 1.7 (2.9 ) Valuation allowance decrease — (11.7 ) (11.7 ) Change in federal tax rate applied to deferred tax assets and liabilities — (2.5 ) — Deduction for domestic production activities (1.4 ) (2.7 ) (1.8 ) Other (0.3 ) (4.5 ) 5.1 Effective income tax rate 25.8 % 5.2 % 19.8 % |
Schedule of Deferred Tax Assets and Liabilities | The Consolidated Balance Sheets included the following tax effects of cumulative temporary differences as of July 31 (in thousands): ` 2017 2016 Assets Liabilities Assets Liabilities Depreciation $ — $ 5,888 $ — $ 5,924 Deferred compensation 5,018 — 4,684 — Postretirement benefits 10,419 — 11,935 — Allowance for doubtful accounts 163 — 172 — Deferred marketing expenses — 508 365 — Other assets 427 — 923 — Accrued expenses 2,930 — 3,100 — Tax credits 926 — 1,060 — Amortization 301 — 216 — Inventories 251 — 247 — Depletion — 464 — 476 Stock-based compensation 343 — 252 — Reclamation 418 — 364 — Other assets – foreign 853 — 890 — Valuation allowance (793 ) — (1,170 ) — Total deferred taxes $ 21,256 $ 6,860 $ 23,038 $ 6,400 |
STOCKHOLDERS EQUITY Accumulated
STOCKHOLDERS EQUITY Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Accumulated Other Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) | The following table summarizes the changes in accumulated other comprehensive income by component (in thousands): Pension and Postretirement Health Benefits Cumulative Translation Adjustment Total Accumulated Other Comprehensive (Loss) Income Balance as of July 31, 2015 $ (8,975 ) $ (270 ) (9,245 ) Other comprehensive (loss) income before reclassifications, net of tax (5,501 ) a) 115 (5,386 ) Amounts reclassified from accumulated other comprehensive income, net of tax 609 b) — 609 Net current-period other comprehensive (loss) income , net of tax (4,892 ) 115 (4,777 ) Balance as of July 31, 2016 $ (13,867 ) $ (155 ) $ (14,022 ) Other comprehensive income before reclassifications, net of tax 2,384 a) 190 2,574 Amounts reclassified from accumulated other comprehensive income, net of tax 1,156 b) — 1,156 Net current-period other comprehensive income, net of tax 3,540 190 3,730 Balance as of July 31, 2017 $ (10,327 ) $ 35 $ (10,292 ) a) Amounts are net of taxes of $ 1,461,000 and $3,372,000 in fiscal years 2017 and 2016 , respectively, and are included in Other Comprehensive Loss. b) Amounts are net of taxes of $709,000 and $374,000 in fiscal years 2017 and 2016 , respectively. Amounts are included in the components of net periodic benefit cost for the pension and postretirement health plans. See Note 8 of the Notes to the Consolidated Financial Statements for further information about pension and postretirement health benefits. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
STOCK-BASED COMPENSATION [Abstract] | |
Schedule of stock option plans transactions | A summary of stock option transactions under the plans is shown below. Number of Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Options outstanding and exercisable at July 31, 2014 44 $ 15.43 1.9 $ 611 Exercised (3 ) $ 15.37 $ 45 Options outstanding and exercisable at July 31, 2015 41 $ 15.43 0.9 $ 447 Exercised (31 ) $ 14.93 $ 469 Options outstanding and exercisable at July 31, 2016 10 $ 17.00 0.3 $ 205 Exercised (10 ) $ 17.00 $ 211 Options outstanding and exercisable at July 31, 2017 — |
Schedule of summary of restricted stock | A summary of restricted stock transactions under the plans is shown below. Number of Shares (in thousands) Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Unamortized Expense (in thousands) Non-vested restricted stock outstanding at July 31, 2014 122 $ 27.31 2.4 $ 2,226 Granted 11 $ 28.68 Vested (45 ) $ 23.16 Forfeited (14 ) $ 34.05 Non-vested restricted stock outstanding at July 31, 2015 74 $ 28.83 2.1 $ 931 Granted 166 $ 28.62 Vested (41 ) $ 26.46 Forfeited (5 ) $ 31.56 Non-vested restricted stock outstanding at July 31, 2016 194 $ 29.09 3.8 $ 4,282 Granted 31 $ 36.84 Vested (39 ) $ 26.38 Forfeited (1 ) $ 31.24 Non-vested restricted stock outstanding at July 31, 2017 185 $ 30.96 2.8 $ 3,893 |
PENSION AND OTHER POSTRETIREM33
PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |
Schedule of Obligations and Funded Status | The following tables provide a reconciliation of changes in the plans’ benefit obligations, assets’ fair values and funded status by fiscal year (in thousands): Pension Benefits Postretirement Health Benefits 2017 2016 2017 2016 Change in benefit obligation : Benefit obligation, beginning of year $ 55,124 $ 46,749 $ 2,746 $ 2,362 Service cost 1,826 1,502 125 93 Interest cost 1,861 1,928 78 82 Actuarial (gain) loss (3,684 ) 6,304 (11 ) 413 Benefits paid (1,385 ) (1,359 ) (13 ) (204 ) Benefit obligation, end of year 53,742 55,124 2,925 2,746 Change in plan assets: Fair value of plan assets, beginning of year 25,264 25,593 — — Actual return on plan assets 1,921 (234 ) — — Employer contribution 1,657 1,264 13 204 Benefits paid (1,385 ) (1,359 ) (13 ) (204 ) Fair value of plan assets, end of year 27,457 25,264 — — Funded status, recorded in Consolidated Balance Sheets $ (26,285 ) $ (29,860 ) $ (2,925 ) $ (2,746 ) |
Schedule of Amounts Recognized in Balance Sheet | The following table shows amounts recognized in the Consolidated Balance Sheets as of July 31 (in thousands): Pension Benefits Postretirement Health Benefits 2017 2016 2017 2016 Deferred income taxes $ 9,311 $ 10,894 $ 1,108 $ 1,041 Other current liabilities $ — $ — $ (49 ) $ (114 ) Other noncurrent liabilities $ (26,285 ) $ (29,860 ) $ (2,876 ) $ (2,632 ) Accumulated other comprehensive loss – net of tax: Net actuarial loss $ 10,036 $ 13,546 $ 315 $ 348 Prior service cost (income) $ 3 $ 4 $ (27 ) $ (31 ) |
Schedule of Net Benefit Costs | The following table shows the components of the net periodic pension and postretirement health benefit costs by fiscal year (in thousands): Pension Cost Postretirement Health Benefit Cost 2017 2016 2015 2017 2016 2015 Service cost $ 1,826 $ 1,502 $ 1,606 $ 125 $ 93 $ 133 Interest cost 1,861 1,928 1,855 78 82 106 Expected return on plan assets (1,774 ) (1,923 ) (1,877 ) — — — Amortization of: Net transition obligation — — — — — 1 Prior service costs (income) 2 8 10 (6 ) (6 ) (6 ) Other actuarial loss 1,828 981 584 41 — 37 Net periodic benefit cost $ 3,743 $ 2,496 $ 2,178 $ 238 $ 169 $ 271 |
Schedule of Amounts Recognized in Other Comprehensive Income | The following table shows amounts, net of tax, that are recognized in other comprehensive income by fiscal year (in thousands): Pension Benefits Postretirement Health Benefits 2017 2016 2017 2016 Net actuarial (gain) loss $ (2,377 ) $ 5,245 $ (7 ) $ 256 Amortization of: Prior service (cost) income (2 ) (5 ) 4 4 Amortization of actuarial loss (1,133 ) (608 ) (25 ) — Total recognized in other comprehensive (income) loss $ (3,512 ) $ 4,632 $ (28 ) $ 260 |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The following table shows amortization amounts, net of tax, expected to be recognized in fiscal year 2018 in accumulated other comprehensive income (in thousands): Amortization of: Pension Benefits Postretirement Health Benefits Net actuarial loss $ 712 $ 12 Prior service cost (income) 2 (4 ) Total to be recognized as other comprehensive loss $ 714 $ 8 |
Schedule of Expected Benefit Payments | The following table shows the estimated future benefit payments by fiscal year (in thousands): Pension Benefits Postretirement Health Benefits 2018 $ 1,542 $ 49 2019 $ 1,628 $ 72 2020 $ 1,641 $ 112 2021 $ 1,755 $ 140 2022 $ 1,859 $ 137 2023-27 $ 11,715 $ 1,351 |
Schedule of Assumptions Used | The assumptions used in the previous calculations by fiscal year were as follows: Pension Benefits Postretirement Health Benefits 2017 2016 2017 2016 Discount rate for net periodic benefit costs 3.36% 4.22% 2.71% 3.51% Discount rate for year-end obligations 3.75% 3.36% 3.26% 2.71% Rate of increase in compensation levels for net periodic benefit costs 3.50% 3.50% — — Rate of increase in compensation levels for year-end obligations 3.50% 3.50% — — Long-term expected rate of return on assets 7.00% 7.50% — — |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | The following table reflects the effect on postretirement health costs and accruals in fiscal year 2017 of a one-percentage point change in the assumed health care cost trend (in thousands): One-Percentage Point Increase One-Percentage Point Decrease Effect on total service and interest cost $29 $(25) Effect on accumulated postretirement benefit obligation $310 $(274) |
Schedule of Allocation of Plan Assets | The targeted allocation percentages of plan assets is shown below for fiscal year 2018 and the actual allocation as of July 31: Asset Allocation Target fiscal 2018 2017 2016 Cash and accrued income 2% —% —% Fixed income 38% 44% 47% Equity 60% 56% 53% The following table sets forth by level, within the fair value hierarchy, the Pension Plan's assets carried at fair value (in thousands): Fair Value At July 31, 2017 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Asset Class Cash and cash equivalents (a) $ 97 $ 97 $ — Equity securities (b) : U.S. companies 8,696 3,933 4,763 International companies 2,119 2,119 — Equity securities - international mutual funds: Developed market (c) 4,207 — 4,207 Emerging markets (d) 374 — 374 Fixed Income: U.S. Treasuries 2,080 — 2,080 Bonds (e) 5,264 — 5,264 Government sponsored entities (f) 2,529 — 2,529 Money market fund (g) 1,087 — 1,087 Other (h) 1,004 — 1,004 Total $ 27,457 $ 6,149 $ 21,308 Fair Value At July 31, 2016 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Asset Class Cash and cash equivalents (a) $ 48 $ 48 $ — Equity securities (b) : U.S. companies 8,132 4,604 3,528 International companies 1,946 1,946 — Equity securities - international mutual funds: Developed market (c) 3,258 — 3,258 Fixed Income: U.S. Treasuries 2,244 — 2,244 Bonds (e) 5,692 — 5,692 Government sponsored entities (f) 2,894 — 2,894 Money market fund (g) 1,050 — 1,050 Total $ 25,264 $ 6,598 $ 18,666 (a) Cash and cash equivalents consists of highly liquid investments which are traded in active markets. (b) This class represents equities traded on regulated exchanges, as well as funds that invest in a portfolio of such stocks. (c) These mutual funds seek long-term capital growth by investing no less than 80% of their assets in stocks of non- U.S. companies that are primarily in developed markets, but also may invest in emerging and less developed markets. (d) These mutual funds seek to track the performance of a benchmark index that measures the investment return of stock issued by companies located in emerging market countries. (e) This class includes bonds of U.S. and non-U.S. corporate issuers from diverse industries and bonds of domestic and foreign municipalities. (f) This class represents a beneficial ownership interest in a pool of single-family residential mortgage loans. These investments are generally not backed by the full faith and credit of the United States government, except for securities valued at $577,000 in our portfolio as of July 31, 2017 and $804,000 as of July 31, 2016 . (g) These money market mutual funds seek to provide current income consistent with liquidity and stability of principal by investing in a diversified portfolio of high quality, short-term, dollar-denominated debt securities. These funds may include securities issued or guaranteed as to principal and interest by the U.S. government or its agencies, short-term securities issued by domestic or foreign banks, domestic and dollar-denominated foreign commercial papers, and other short-term corporate obligations and obligations issued or guaranteed by one or more foreign governments. (h) This class seeks long-term positive returns by employing a number of arbitrage and alternative investment strategies. The portfolio of instruments may include equities, debt securities, warrants, options, swaps, future contracts, forwards or other types of derivative instruments. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The following is a schedule by fiscal year of future minimum rent requirements under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of July 31, 2017 (in thousands): 2018 $ 2,099 2019 $ 1,634 2020 $ 1,422 2021 $ 1,384 2022 $ 943 Later years $ 8,564 |
Schedule of Rent Expense | The following schedule shows the composition of total rent expense by fiscal year for all operating leases, including those with terms of one month or less which were not renewed (in thousands): 2017 2016 2015 Vehicles and Railcars $ 1,431 $ 1,439 $ 1,559 Office facilities 959 945 928 Warehouse facilities 379 419 311 Mining properties: Minimum 113 124 123 Contingent (1) 191 239 239 Other 78 61 46 $ 3,151 $ 3,227 $ 3,206 (1) Contingent mining royalty payments are determined based on the tons of raw clay mined. |
SELECTED QUARTERLY FINANCIAL 35
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Jul. 31, 2017 | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | |
Schedule of Quarterly Financial Information | A summary of selected information for fiscal years 2017 and 2016 is as follows (in thousands, except for per share amounts): Fiscal Year 2017 Quarter Ended October 31 January 31 April 30 July 31 Fiscal 2017 Net Sales $ 66,612 $ 65,174 $ 64,745 $ 65,776 $ 262,307 Gross Profit $ 20,725 $ 19,125 $ 17,781 $ 16,081 $ 73,712 Net Income $ 2,009 $ 4,250 $ 3,211 $ 1,322 $ 10,792 Net Income Per Share Basic Common $ 0.30 $ 0.63 $ 0.48 $ 0.20 $ 1.60 Basic Class B Common $ 0.23 $ 0.47 $ 0.36 $ 0.15 $ 1.20 Diluted Common $ 0.28 $ 0.58 $ 0.44 $ 0.18 $ 1.47 Dividends Per Share Common $ 0.2200 $ 0.2200 $ 0.2200 $ 0.2300 $ 0.8900 Class B Common $ 0.1650 $ 0.1650 $ 0.1650 $ 0.1730 $ 0.6680 Common Stock Price Range High $ 39.52 $ 40.94 $ 40.95 $ 43.84 Low $ 32.55 $ 31.35 $ 33.26 $ 33.61 Fiscal Year 2016 Quarter Ended October 31 January 31 April 30 July 31 Fiscal 2016 Net Sales $ 67,795 $ 65,367 $ 64,235 $ 64,916 $ 262,313 Gross Profit $ 20,653 $ 19,062 $ 18,568 $ 18,866 $ 77,149 Net Income (Loss) $ 5,423 $ 3,821 $ (892 ) $ 5,261 $ 13,613 Net Income Per Share Basic Common $ 0.82 $ 0.57 $ (0.14 ) $ 0.78 $ 2.04 Basic Class B Common $ 0.61 $ 0.43 $ (0.10 ) $ 0.59 $ 1.53 Diluted Common $ 0.75 $ 0.53 $ (0.13 ) $ 0.72 $ 1.87 Dividends Per Share Common $ 0.2100 $ 0.2100 $ 0.2100 $ 0.2200 $ 0.8500 Class B Common $ 0.1575 $ 0.1575 $ 0.1575 $ 0.1650 $ 0.6375 Common Stock Price Range High $ 31.61 $ 38.92 $ 38.43 $ 37.67 Low $ 21.65 $ 28.42 $ 32.24 $ 29.89 |
SUMMARY OF SIGNIFICANT ACCOUN36
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Short-Term Investments (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Jul. 31, 2016 |
Investment | ||
Short-term investments | $ 23,576 | $ 10,184 |
U.S. Treasury Securities | ||
Investment | ||
Short-term investments | 13,976 | 5,998 |
Certificates of Deposit | ||
Investment | ||
Short-term investments | $ 9,600 | $ 4,186 |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Inventories (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Jul. 31, 2016 |
Finished goods | $ 14,704 | $ 14,032 |
Packaging | 4,988 | 4,672 |
Other | 2,923 | 4,547 |
Inventories | $ 22,615 | $ 23,251 |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Intangible Assets Amortization Expense (Details) $ in Thousands | Jul. 31, 2017USD ($) |
Estimated Intangible Amortization Expense | |
2,018 | $ 1,011 |
2,019 | 826 |
2,020 | 657 |
2,021 | 473 |
2,022 | $ 323 |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Intangible Assets Weighted Average Amortization Period (Details) | 12 Months Ended |
Jul. 31, 2017 | |
Finite-Lived Intangible Assets | |
Finite-lived Intangible Assets, Weighted Average Amortization Period | 6 years 9 months 18 days |
Trademarks and patents | |
Finite-Lived Intangible Assets | |
Finite-lived Intangible Assets, Weighted Average Amortization Period | 14 years 6 months |
Debt issuance costs | |
Finite-Lived Intangible Assets | |
Finite-lived Intangible Assets, Weighted Average Amortization Period | 3 years 1 month 6 days |
Customer list | |
Finite-Lived Intangible Assets | |
Finite-lived Intangible Assets, Weighted Average Amortization Period | 6 years 3 months 19 days |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Property, Plant and Equipment (Details) | 12 Months Ended |
Jul. 31, 2017 | |
Minimum | Buildings and leasehold improvements | |
Property, Plant and Equipment | |
Estimated useful life | 3 years |
Minimum | Machinery and Equipment - Packaging | |
Property, Plant and Equipment | |
Estimated useful life | 2 years |
Minimum | Machinery and Equipment - Processing | |
Property, Plant and Equipment | |
Estimated useful life | 2 years |
Minimum | Machinery and Equipment - Mining and Other | |
Property, Plant and Equipment | |
Estimated useful life | 3 years |
Minimum | Office furniture and equipment | |
Property, Plant and Equipment | |
Estimated useful life | 2 years |
Minimum | Vehicles | |
Property, Plant and Equipment | |
Estimated useful life | 3 years |
Maximum | Buildings and leasehold improvements | |
Property, Plant and Equipment | |
Estimated useful life | 39 years |
Maximum | Machinery and Equipment - Packaging | |
Property, Plant and Equipment | |
Estimated useful life | 20 years |
Maximum | Machinery and Equipment - Processing | |
Property, Plant and Equipment | |
Estimated useful life | 25 years |
Maximum | Machinery and Equipment - Mining and Other | |
Property, Plant and Equipment | |
Estimated useful life | 15 years |
Maximum | Office furniture and equipment | |
Property, Plant and Equipment | |
Estimated useful life | 12 years |
Maximum | Vehicles | |
Property, Plant and Equipment | |
Estimated useful life | 15 years |
SUMMARY OF SIGNIFICANT ACCOUN41
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Narrative (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Short-term investments original maturity maximum | 1 year | ||
Maximum maturity of cash equivalents | 3 months | ||
Inventory obsolescence reserves | $ 619,000 | $ 806,000 | |
Amortization of intangibles | 1,228,000 | 1,410,000 | |
Indefinite-lived trademarks | 376,000 | ||
Goodwill | 9,034,000 | 9,034,000 | |
Goodwill impairment | 0 | 0 | $ 0 |
Stripping costs | 2,936,000 | 3,020,000 | 2,939,000 |
Pre-production overburden removal costs | 0 | 0 | |
Land | 13,453,000 | 13,659,000 | |
Mineral rights | 2,165,000 | 2,165,000 | |
Pre-production development costs | 0 | 0 | |
Prepaid royalties | 1,122,000 | 1,103,000 | |
Depreciation | 11,544,000 | 10,782,000 | 10,352,000 |
Interest Costs Capitalized | 80,000 | 72,000 | 0 |
Impairment of property, plant and equipment | 0 | 0 | 0 |
Advertising expense | 13,751,000 | 18,083,000 | 5,154,000 |
Shipping and handling costs | 39,226,000 | 41,301,000 | 46,292,000 |
Research and development costs | 3,215,000 | 3,025,000 | $ 2,809,000 |
Debt Issuance Costs, Noncurrent, Net | 89,000 | 118,000 | |
Deferred Tax Assets, Net of Valuation Allowance, Current | $ 2,787,000 | 3,884,000 | |
Minimum | |||
Amortization period of intangible assets (years) | 10 years | ||
Maximum | |||
Amortization period of intangible assets (years) | 20 years | ||
Retail and Wholesale Products | |||
Goodwill | $ 5,464,000 | ||
Business to Business Products | |||
Goodwill | 3,570,000 | ||
Simplifying presentation of debt issuance costs | |||
Debt Issuance Costs, Noncurrent, Net | $ 118,000 | ||
Balance sheet classification of deferred taxes | |||
Deferred Tax Assets, Net of Valuation Allowance, Current | $ 2,787,000 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Segment Reporting Information | |||||||||||
Assets | $ 212,575 | $ 204,815 | $ 212,575 | $ 204,815 | $ 189,885 | ||||||
Net Sales | 65,776 | $ 64,745 | $ 65,174 | $ 66,612 | 64,916 | $ 64,235 | $ 65,367 | $ 67,795 | 262,307 | 262,313 | 261,402 |
Corporate Expenses | (24,888) | (23,060) | (19,459) | ||||||||
Income from Operations | 15,230 | 15,413 | 15,153 | ||||||||
Total Other Expense, Net | (685) | (1,056) | (984) | ||||||||
Income before Income Taxes | 14,545 | 14,357 | 14,169 | ||||||||
Income Taxes | (3,753) | (744) | (2,801) | ||||||||
Net Income | 10,792 | 13,613 | 11,368 | ||||||||
Business to Business Products | |||||||||||
Segment Reporting Information | |||||||||||
Assets | 65,337 | 61,007 | 65,337 | 61,007 | 55,767 | ||||||
Segment Net Sales | 100,419 | 96,444 | 92,326 | ||||||||
Segment Income | 33,343 | 33,464 | 29,406 | ||||||||
Retail and Wholesale Products | |||||||||||
Segment Reporting Information | |||||||||||
Assets | 90,508 | 91,626 | 90,508 | 91,626 | 96,043 | ||||||
Segment Net Sales | 161,888 | 165,869 | 169,076 | ||||||||
Segment Income | 6,775 | 5,009 | 5,206 | ||||||||
Unallocated Assets | |||||||||||
Segment Reporting Information | |||||||||||
Assets | $ 56,730 | $ 52,182 | $ 56,730 | $ 52,182 | $ 38,075 |
OPERATING SEGMENTS Financial In
OPERATING SEGMENTS Financial Information by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Financial Information by Geographic Region | |||||||||||
Sales to unaffiliated customers | $ 65,776 | $ 64,745 | $ 65,174 | $ 66,612 | $ 64,916 | $ 64,235 | $ 65,367 | $ 67,795 | $ 262,307 | $ 262,313 | $ 261,402 |
Net Income (Loss) | 1,322 | $ 3,211 | $ 4,250 | $ 2,009 | 5,261 | $ (892) | $ 3,821 | $ 5,423 | 10,792 | 13,613 | 11,368 |
Identifiable assets | 212,575 | 204,815 | 212,575 | 204,815 | 189,885 | ||||||
Domestic Operations | |||||||||||
Financial Information by Geographic Region | |||||||||||
Sales to unaffiliated customers | 249,772 | 251,054 | 250,377 | ||||||||
Sales or transfers between geographic areas | 5,842 | 5,723 | 5,606 | ||||||||
Income (Loss) before income taxes | 14,524 | 15,129 | 15,389 | ||||||||
Net Income (Loss) | 10,833 | 14,574 | 12,629 | ||||||||
Identifiable assets | 204,547 | 197,518 | 204,547 | 197,518 | 182,123 | ||||||
Foreign subsidiaries | |||||||||||
Financial Information by Geographic Region | |||||||||||
Sales to unaffiliated customers | 12,535 | 11,259 | 11,025 | ||||||||
Income (Loss) before income taxes | 21 | (772) | (1,220) | ||||||||
Net Income (Loss) | (41) | (961) | (1,261) | ||||||||
Identifiable assets | $ 8,028 | $ 7,297 | $ 8,028 | $ 7,297 | $ 7,762 |
OPERATING SEGMENTS Largest Cust
OPERATING SEGMENTS Largest Customer (Details) - Customer, Walmart | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Net sales for the years ended July 31 | |||
Revenue, Major customer | |||
Concentration risk, percentage | 20.00% | 19.00% | 18.00% |
Net accounts receivable as of July 31 | |||
Revenue, Major customer | |||
Concentration risk, percentage | 28.00% | 29.00% | 27.00% |
OPERATING SEGMENTS Narrative (D
OPERATING SEGMENTS Narrative (Details) | 12 Months Ended |
Jul. 31, 2017segment | |
Segment Reporting Information | |
Number of Reportable Segments | 2 |
DEBT Notes Payable (Details)
DEBT Notes Payable (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
Debt Instrument | ||
Debt Instrument, Face Amount | $ 18,500,000 | |
Notes Payable | 12,333,000 | |
Less current maturities of notes payable | (3,083,000) | $ (3,083,000) |
Noncurrent Notes payable | 9,161,000 | 12,215,000 |
Senior Notes Issued November 2010 | ||
Debt Instrument | ||
Notes Payable | 12,333,000 | 15,416,000 |
Less current maturities of notes payable | (3,083,000) | (3,083,000) |
Less unamortized debt issuance costs | (89,000) | (118,000) |
Noncurrent Notes payable | 9,161,000 | $ 12,215,000 |
Annual Principal Installments | $ 3,083,000 | |
Starting payments | Aug. 1, 2017 | |
Ending payments | Aug. 1, 2020 | |
Annual rate | 3.96% | |
Minimum overdue financial obligation considered as default | $ 5,000,000 |
DEBT Maturities of Notes Payabl
DEBT Maturities of Notes Payable (Details) $ in Thousands | Jul. 31, 2017USD ($) |
Notes Payable Maturities | |
2,018 | $ 3,083 |
2,019 | 3,083 |
2,020 | 3,083 |
2,021 | 3,084 |
2,022 | 0 |
Notes Payable | $ 12,333 |
DEBT Debt (Narrative) (Details)
DEBT Debt (Narrative) (Details) | 12 Months Ended |
Jul. 31, 2017USD ($) | |
Debt Instrument | |
Face amount | $ 18,500,000 |
Senior Notes Issued November 2010 | |
Debt Instrument | |
Interest rate | 3.96% |
Minimum overdue financial obligation considered as default | $ 5,000,000 |
Line of Credit, BMO Harris | |
Debt Instrument | |
Initiation date | Dec. 4, 2014 |
Expiration date | Dec. 4, 2019 |
Maximum borrowing capacity | $ 25,000,000 |
Maximum borrowing capacity for foreign letters of credit | $ 5,000,000 |
Variable interest rate, prime based | 4.25% |
Variable interest rate, LIBOR based | 2.31% |
Line of credit amount outstanding | $ 0 |
Minimum overdue financial obligation considered as default | $ 1,000,000 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Jul. 31, 2016 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | $ 3,814 | $ 7,626 |
FINANCIAL INSTRUMENTS Narrative
FINANCIAL INSTRUMENTS Narrative (Details) - USD ($) | Jul. 31, 2017 | Jul. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Long-term Debt, Fair Value | $ 13,001,000 | $ 16,651,000 |
INCOME TAXES Income Tax Provisi
INCOME TAXES Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Current - Federal | $ 2,715 | $ 3,298 | $ 4,296 |
Current - Foreign | 23 | 15 | (40) |
Current - State | 577 | 1,051 | 1,081 |
Current Income Tax Total | 3,315 | 4,364 | 5,337 |
Deferred - Federal | 335 | (3,277) | (2,242) |
Deferred - Foreign | 40 | 174 | 68 |
Deferred - State | 63 | (517) | (362) |
Deferred Income Tax Total | 438 | (3,620) | (2,536) |
Total Income Tax Expense | $ 3,753 | $ 744 | $ 2,801 |
INCOME TAXES Income Tax Effecti
INCOME TAXES Income Tax Effective Rate Reconciliation (Details) | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
U.S. federal income tax rate | 35.00% | 35.00% | 35.00% |
Depletion deductions allowed for mining | (12.80%) | (13.80%) | (9.50%) |
State income tax expense, net of federal tax expense | 2.90% | 2.50% | 3.40% |
Difference in effective tax rate of foreign subsidiaries | 0.00% | 1.20% | 2.20% |
Prior year income taxes | 2.40% | 1.70% | (2.90%) |
Valuation allowance decrease | 0.00% | (11.70%) | (11.70%) |
Change in federal tax rate applied to deferred tax assets and liabilities | 0.00% | (2.50%) | 0.00% |
Deduction for domestic production activities | (1.40%) | (2.70%) | (1.80%) |
Other | (0.30%) | (4.50%) | 5.10% |
Effective income tax rate | 25.80% | 5.20% | 19.80% |
INCOME TAXES Components of Defe
INCOME TAXES Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Jul. 31, 2016 |
Deferred Tax Asset | ||
Depreciation | $ 0 | $ 0 |
Deferred compensation | 5,018 | 4,684 |
Postretirement benefits | 10,419 | 11,935 |
Allowance for doubtful accounts | 163 | 172 |
Deferred marketing expenses | 0 | 365 |
Other assets | 427 | 923 |
Accrued expenses | 2,930 | 3,100 |
Tax credits | 926 | 1,060 |
Amortization | 301 | 216 |
Inventories | 251 | 247 |
Depletion | 0 | 0 |
Stock-based compensation | 343 | 252 |
Reclamation | 418 | 364 |
Other assets - foreign | 853 | 890 |
Valuation allowance | (793) | (1,170) |
Total deferred tax assets | 21,256 | 23,038 |
Deferred Tax Liability | ||
Depreciation | 5,888 | 5,924 |
Deferred compensation | 0 | 0 |
Postretirement benefits | 0 | 0 |
Allowance for doubtful accounts | 0 | 0 |
Deferred marketing expenses | 508 | 0 |
Other liabilities | 0 | 0 |
Accrued expenses | 0 | 0 |
Tax credits | 0 | 0 |
Amortization | 0 | 0 |
Inventories | 0 | 0 |
Depletion | 464 | 476 |
Stock-based compensation | 0 | 0 |
Reclamation | 0 | 0 |
Other assets - foreign | 0 | 0 |
Valuation allowance | 0 | 0 |
Total deferred tax liabilities | $ 6,860 | $ 6,400 |
INCOME TAXES Narrative (Details
INCOME TAXES Narrative (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Unrecognized tax benefits, liability | $ 0 | $ 0 | $ 0 |
Unrecognized tax benefits, penalties and interest expense | 0 | 0 | 0 |
Unrecognized tax benefits, penalties and interest accrued | $ 0 | 0 | $ 0 |
Minimum | |||
Foreign and U.S. state tax statute of limitations (years) | 3 years | ||
Maximum | |||
Foreign and U.S. state tax statute of limitations (years) | 5 years | ||
Valuation Allowance, Tax Credit Carryforward | |||
Valuation Allowance, Deferred Tax Asset, Decrease | 1,680,000 | ||
Deferred Tax Asset | |||
Deferred Tax Assets, Valuation Allowance | $ 793,000 | $ 1,170,000 |
STOCKHOLDERS EQUITY Accumulat55
STOCKHOLDERS EQUITY Accumulated Other Comprehensive Income (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive (Loss) Income, beginning balance | $ (14,022,000) | $ (9,245,000) | |
Other comprehensive (loss) income, before reclassifications, net of tax | 2,574,000 | (5,386,000) | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 1,156,000 | 609,000 | |
Other Comprehensive Loss | 3,730,000 | (4,777,000) | $ (982,000) |
Accumulated Other Comprehensive (Loss) Income, ending balance | (10,292,000) | (14,022,000) | (9,245,000) |
Pension and Postretirement Health Benefits | |||
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive (Loss) Income, beginning balance | (13,867,000) | (8,975,000) | |
Other comprehensive (loss) income, before reclassifications, net of tax | 2,384,000 | (5,501,000) | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 1,156,000 | 609,000 | |
Other Comprehensive Loss | 3,540,000 | (4,892,000) | |
Accumulated Other Comprehensive (Loss) Income, ending balance | (10,327,000) | (13,867,000) | (8,975,000) |
Tax on Other comprehensive (loss) incomes, Pension and postretirement benefit Plans before reclassifications | 1,461,000 | 3,372,000 | |
Tax on amount reclassified from AOCI, Pension and postretirement health benefits | 709,000 | 374,000 | |
Cumulative Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive (Loss) Income, beginning balance | (155,000) | (270,000) | |
Other comprehensive (loss) income, before reclassifications, net of tax | 190,000 | 115,000 | |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | |
Other Comprehensive Loss | 190,000 | 115,000 | |
Accumulated Other Comprehensive (Loss) Income, ending balance | $ 35,000 | $ (155,000) | $ (270,000) |
STOCKHOLDERS EQUITY Narrative (
STOCKHOLDERS EQUITY Narrative (Details) - $ / shares | 12 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
Stockholders' Equity | ||
Par Value Per Share | $ 0.10 | $ 0.10 |
Relative Total Dividend Rate - Common Stock Plus Class A Versus Class A Plus Class B Stock | 133.33% | |
Number of Shares Authorized to be Repurchased | 3,666,771 | |
Common Stock | ||
Stockholders' Equity | ||
Shares Authorized | 15,000,000 | 15,000,000 |
Par Value Per Share | $ 0.10 | $ 0.10 |
Voting Rights | one | |
Relative Dividend Rate - Common Stock Versus Class B Stock | 133.33% | |
Shares Repurchased, Board Approved, Cummulative | 3,023,086 | |
Common Class B | ||
Stockholders' Equity | ||
Shares Authorized | 7,000,000 | 7,000,000 |
Par Value Per Share | $ 0.10 | $ 0.10 |
Voting Rights | ten | |
Shares Repurchased, Board Approved, Cummulative | 342,241 | |
Class A Common Stock | ||
Stockholders' Equity | ||
Shares Authorized | 30,000,000 | 30,000,000 |
Shares Outstanding | 0 | |
Voting Rights | 0 |
STOCK-BASED COMPENSATION (Summa
STOCK-BASED COMPENSATION (Summary of Option Activity) (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Summary of Share-based Award Activity | ||||
Options outstanding, Number | 0 | 10,000 | 41,000 | 44,000 |
Options exercisable, number | 0 | 10,000 | 41,000 | 44,000 |
Options outstanding, Weighted Average Exercise Price | $ 17 | $ 15.43 | $ 15.43 | |
Options exercisable, Weighted Average Exercise Price | $ 17 | $ 15.43 | $ 15.43 | |
Options outstanding, Weighted Average Remaining Contractual Term (Years) | 3 months 19 days | 10 months 24 days | 1 year 10 months 24 days | |
Options exercisable, Weighted Average Remaining Contractual Term (Years) | 3 months 19 days | 10 months 24 days | 1 year 10 months 24 days | |
Options outstanding, Aggregate Intrinsic Value | $ 205 | $ 447 | $ 611 | |
Options exercisable, Aggregate Intrinsic Value | $ 205 | $ 447 | $ 611 | |
Exercised, Number | (10,000) | (31,000) | (3,000) | |
Exercised, Weighted Average Exercise Price | $ 17 | $ 14.93 | $ 15.37 | |
Exercised, Aggregate Intrinsic Value | $ 211 | $ 469 | $ 45 |
STOCK-BASED COMPENSATION (Sum58
STOCK-BASED COMPENSATION (Summary of Restricted Stock Activity) (Details) - Restricted Stock - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Summary of Restricted Stock Activity | ||||
Nonvested restricted stock outstanding, Number | 185 | 194 | 74 | 122 |
Nonvested restricted stock outstanding, Weighted Average Grant Date Fair Value | $ 30.96 | $ 29.09 | $ 28.83 | $ 27.31 |
Nonvested restricted stock outstanding, Weighted Average Remaining Contractual Term (Years) | 2 years 10 months | 3 years 9 months 12 days | 2 years 1 month 10 days | 2 years 4 months 24 days |
Nonvested retricted stock outstanding, Unamortized Expense | $ 3,893 | $ 4,282 | $ 931 | $ 2,226 |
Granted, Number | 31 | 166 | 11 | |
Granted, Weighted Average Grant Date Fair Value | $ 36.84 | $ 28.62 | $ 28.68 | |
Vested, Number | (39) | (41) | (45) | |
Vested, Weighted Average Grant Date Fair Value | $ 26.38 | $ 26.46 | $ 23.16 | |
Forfeitures, Number | (1) | (5) | (14) | |
Forfeitures, Weighted Average Grant Date Fair Value | $ 31.24 | $ 31.56 | $ 34.05 |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Stock Options | ||||
Share-based Compensation Award Disclosure | ||||
Fair value calculation, volatility calculation period (years) | 5 years | |||
Cash received from exercise of stock options | $ 170,000 | $ 466,000 | $ 49,000 | |
Tax benefit realized from exercise of stock options | $ 80,000 | $ 178,000 | $ 9,000 | |
Options outstanding, Number | 0 | 10,000 | 41,000 | 44,000 |
Share-based compensation expense | $ 0 | $ 0 | $ 0 | |
Nonvested awards, unamortized compensation expense | 0 | 0 | 0 | |
Restricted Stock | ||||
Share-based Compensation Award Disclosure | ||||
Share-based compensation expense | 934,000 | 773,000 | 916,000 | |
Tax benefit from compensation expense | $ 573,000 | $ 474,000 | $ 226,000 | |
2006 Plan | ||||
Share-based Compensation Award Disclosure | ||||
Number of shares authorized | 937,500 | |||
Number of shares available for grant | 344,754 | |||
2006 Plan - Employee Stock Options | ||||
Share-based Compensation Award Disclosure | ||||
Annual vesting percentage | 25.00% | |||
Number of years after grant date vesting starts (years) | 2 years | |||
Number of consecutive years vesting occurs after initial vest date (years) | 3 years | |||
2006 Plan - Restricted Stock | Minimum | ||||
Share-based Compensation Award Disclosure | ||||
Award vesting period (years) | 2 years | |||
2006 Plan - Restricted Stock | Maximum | ||||
Share-based Compensation Award Disclosure | ||||
Award vesting period (years) | 5 years | |||
Director Stock Option | ||||
Share-based Compensation Award Disclosure | ||||
Award vesting period (years) | 1 year |
PENSION AND OTHER POSTRETIREM60
PENSION AND OTHER POSTRETIREMENT BENEFITS Change in Benefit Obligation and Plan Assets, Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Defined Benefit Plans and Postretirement Health Benefits | |||
Fair value of plan assets. beginning of year | $ 25,264 | ||
Fair value of plan assets. end of year | 27,457 | $ 25,264 | |
Pension Benefits | |||
Defined Benefit Plans and Postretirement Health Benefits | |||
Benefit obligation, beginning of year | 55,124 | 46,749 | |
Service cost | 1,826 | 1,502 | $ 1,606 |
Interest cost | 1,861 | 1,928 | 1,855 |
Actuarial loss (gain) | (3,684) | 6,304 | |
Benefits paid | (1,385) | (1,359) | |
Benefit obligation, end of year | 53,742 | 55,124 | 46,749 |
Fair value of plan assets. beginning of year | 25,264 | 25,593 | |
Actual return on plan assets | 1,921 | (234) | |
Employer contribution | 1,657 | 1,264 | |
Benefits paid | (1,385) | (1,359) | |
Fair value of plan assets. end of year | 27,457 | 25,264 | 25,593 |
Funded status, recorded in Consolidated Balance Sheets | (26,285) | (29,860) | |
Postretirement Health Benefits | |||
Defined Benefit Plans and Postretirement Health Benefits | |||
Benefit obligation, beginning of year | 2,746 | 2,362 | |
Service cost | 125 | 93 | 133 |
Interest cost | 78 | 82 | 106 |
Actuarial loss (gain) | (11) | 413 | |
Benefits paid | (13) | (204) | |
Benefit obligation, end of year | 2,925 | 2,746 | 2,362 |
Fair value of plan assets. beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contribution | 13 | 204 | |
Benefits paid | (13) | (204) | |
Fair value of plan assets. end of year | 0 | 0 | $ 0 |
Funded status, recorded in Consolidated Balance Sheets | $ (2,925) | $ (2,746) |
PENSION AND OTHER POSTRETIREM61
PENSION AND OTHER POSTRETIREMENT BENEFITS Amounts Recognized in Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Jul. 31, 2016 |
Defined Benefit Plans and Postretirement Health Benefits | ||
Other noncurrent Liabilities | $ (29,161) | $ (32,492) |
Pension Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Deferred income tax | 9,311 | 10,894 |
Other current liabilities | 0 | 0 |
Other noncurrent Liabilities | (26,285) | (29,860) |
Accumulated other comprehensive income - net of tax, Net actuarial loss | 10,036 | 13,546 |
Accumulated other comprehensive income - net of tax, Prior service cost (income) | 3 | 4 |
Postretirement Health Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Deferred income tax | 1,108 | 1,041 |
Other current liabilities | (49) | (114) |
Other noncurrent Liabilities | (2,876) | (2,632) |
Accumulated other comprehensive income - net of tax, Net actuarial loss | 315 | 348 |
Accumulated other comprehensive income - net of tax, Prior service cost (income) | $ (27) | $ (31) |
PENSION AND OTHER POSTRETIREM62
PENSION AND OTHER POSTRETIREMENT BENEFITS Components of net periodic benefit cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Pension Benefits | |||
Defined Benefit Plans and Postretirement Health Benefits | |||
Service cost | $ 1,826 | $ 1,502 | $ 1,606 |
Interest cost | 1,861 | 1,928 | 1,855 |
Expected return on plan assets | (1,774) | (1,923) | (1,877) |
Amortization of: Net transition obligations | 0 | 0 | 0 |
Amortization of: Prior service costs (income) | 2 | 8 | 10 |
Amortization of: Other actuarial loss | 1,828 | 981 | 584 |
Net periodic benefit cost | 3,743 | 2,496 | 2,178 |
Postretirement Health Benefits | |||
Defined Benefit Plans and Postretirement Health Benefits | |||
Service cost | 125 | 93 | 133 |
Interest cost | 78 | 82 | 106 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of: Net transition obligations | 0 | 0 | 1 |
Amortization of: Prior service costs (income) | (6) | (6) | (6) |
Amortization of: Other actuarial loss | 41 | 0 | 37 |
Net periodic benefit cost | $ 238 | $ 169 | $ 271 |
PENSION AND OTHER POSTRETIREM63
PENSION AND OTHER POSTRETIREMENT BENEFITS Amounts recognized in other comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Defined Benefit Plans and Postretirement Health Benefits | |||
Total recognized in other comprehensive loss (income) | $ (3,540) | $ 4,892 | $ 343 |
Pension Benefits | |||
Defined Benefit Plans and Postretirement Health Benefits | |||
Net actuarial loss (gain) | (2,377) | 5,245 | |
Amortization of: Prior service (cost) income | (2) | (5) | |
Amortization of actuarial loss | (1,133) | (608) | |
Total recognized in other comprehensive loss (income) | (3,512) | 4,632 | |
Postretirement Health Benefits | |||
Defined Benefit Plans and Postretirement Health Benefits | |||
Net actuarial loss (gain) | (7) | 256 | |
Amortization of: Prior service (cost) income | 4 | 4 | |
Amortization of actuarial loss | (25) | 0 | |
Total recognized in other comprehensive loss (income) | $ (28) | $ 260 |
PENSION AND OTHER POSTRETIREM64
PENSION AND OTHER POSTRETIREMENT BENEFITS Amounts to be recognized in other comprehensive income in the next fiscal year (Details) $ in Thousands | 12 Months Ended |
Jul. 31, 2017USD ($) | |
Pension Benefits | |
Defined Benefit Plans and Postretirement Health Benefits | |
Amortization of: Net actuarial loss | $ 712 |
Amortization of: Prior service cost (income) | 2 |
Total to be recognized in other comprehensive loss | 714 |
Postretirement Health Benefits | |
Defined Benefit Plans and Postretirement Health Benefits | |
Amortization of: Net actuarial loss | 12 |
Amortization of: Prior service cost (income) | (4) |
Total to be recognized in other comprehensive loss | $ 8 |
PENSION AND OTHER POSTRETIREM65
PENSION AND OTHER POSTRETIREMENT BENEFITS Estimated future benefit payments (Details) $ in Thousands | Jul. 31, 2017USD ($) |
Pension Benefits | |
Defined Benefit Plans and Postretirement Health Benefits | |
2,018 | $ 1,542 |
2,019 | 1,628 |
2,020 | 1,641 |
2,021 | 1,755 |
2,022 | 1,859 |
2023-27 | 11,715 |
Postretirement Health Benefits | |
Defined Benefit Plans and Postretirement Health Benefits | |
2,018 | 49 |
2,019 | 72 |
2,020 | 112 |
2,021 | 140 |
2,022 | 137 |
2023-27 | $ 1,351 |
PENSION AND OTHER POSTRETIREM66
PENSION AND OTHER POSTRETIREMENT BENEFITS Assumptions used in calculations (Details) | 12 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
Pension Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Discount rate for net periodic benefit costs | 3.36% | 4.22% |
Discount rate for year-end obligations | 3.75% | 3.36% |
Rate of increase in compensation levels for net periodic benefit costs | 3.50% | 3.50% |
Rate of increase in compensation levels for year-end obligations | 3.50% | 3.50% |
Long-term expected rate of return on assets | 7.00% | 7.50% |
Postretirement Health Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Discount rate for net periodic benefit costs | 2.71% | 3.51% |
Discount rate for year-end obligations | 3.26% | 2.71% |
Rate of increase in compensation levels for net periodic benefit costs | 0.00% | 0.00% |
Rate of increase in compensation levels for year-end obligations | 0.00% | 0.00% |
Long-term expected rate of return on assets | 0.00% | 0.00% |
PENSION AND OTHER POSTRETIREM67
PENSION AND OTHER POSTRETIREMENT BENEFITS Effect of one-percentage point change in assumed healthcare trend (Details) - Postretirement Health Benefits $ in Thousands | 12 Months Ended |
Jul. 31, 2017USD ($) | |
Defined Benefit Plans and Postretirement Health Benefits | |
Effect of One Percentage Point Increase on total service and interest cost | $ 29 |
Effect of One Percentage Point Decrease on total service and interest cost | (25) |
Effect of One Percentage Point Increase on accumulated postretirement benefit obligation | 310 |
Effect of One Percentage Point Decrease on accumulated postretirement benefit obligation | $ (274) |
PENSION AND OTHER POSTRETIREM68
PENSION AND OTHER POSTRETIREMENT BENEFITS Plan Assets Allocation Percentages (Details) | 12 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
Cash and accrued income | ||
Defined Benefit Plan Disclosure | ||
Target Allocation % | 2.00% | |
Actual Allocation % | 0.00% | 0.00% |
Fixed income | ||
Defined Benefit Plan Disclosure | ||
Target Allocation % | 38.00% | |
Actual Allocation % | 44.00% | 47.00% |
Equity | ||
Defined Benefit Plan Disclosure | ||
Target Allocation % | 60.00% | |
Actual Allocation % | 56.00% | 53.00% |
PENSION AND OTHER POSTRETIREM69
PENSION AND OTHER POSTRETIREMENT BENEFITS Fair value level of pension plan assets (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 27,457,000 | $ 25,264,000 |
Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 6,149,000 | 6,598,000 |
Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 21,308,000 | 18,666,000 |
Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 97,000 | 48,000 |
Cash and Cash Equivalents | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 97,000 | 48,000 |
Cash and Cash Equivalents | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Equity securities U.S. companies | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 8,696,000 | 8,132,000 |
Equity securities U.S. companies | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 3,933,000 | 4,604,000 |
Equity securities U.S. companies | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 4,763,000 | 3,528,000 |
Equity securities International companies | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 2,119,000 | 1,946,000 |
Equity securities International companies | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 2,119,000 | 1,946,000 |
Equity securities International companies | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Equity securities - international mutual funds: Developed market | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 4,207,000 | $ 3,258,000 |
Minimum % of Fund Assets Invested in Non-US Stocks Developed Market | 80.00% | 80.00% |
Equity securities - international mutual funds: Developed market | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 | $ 0 |
Equity securities - international mutual funds: Developed market | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 4,207,000 | 3,258,000 |
Equity securities - international mutual funds: Emerging market | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 374,000 | |
Equity securities - international mutual funds: Emerging market | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |
Equity securities - international mutual funds: Emerging market | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 374,000 | |
Fixed Income: U.S. Treasuries | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 2,080,000 | 2,244,000 |
Fixed Income: U.S. Treasuries | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Fixed Income: U.S. Treasuries | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 2,080,000 | 2,244,000 |
Fixed Income: Bonds | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 5,264,000 | 5,692,000 |
Fixed Income: Bonds | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Fixed Income: Bonds | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 5,264,000 | 5,692,000 |
Fixed Income: Government sponsored entities | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 2,529,000 | 2,894,000 |
Amount Backed by US Government | 577,000 | 804,000 |
Fixed Income: Government sponsored entities | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Fixed Income: Government sponsored entities | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 2,529,000 | 2,894,000 |
Money Market Funds | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 1,087,000 | 1,050,000 |
Money Market Funds | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Money Market Funds | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 1,087,000 | $ 1,050,000 |
Other | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 1,004,000 | |
Other | Level 1 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |
Other | Level 2 | ||
Defined Benefit Plan Disclosure | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 1,004,000 |
PENSION AND OTHER POSTRETIREM70
PENSION AND OTHER POSTRETIREMENT BENEFITS Narrative (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Contribution to defined contribution plans | $ 746,000 | $ 685,000 | $ 683,000 |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Accumulated benefit obligation | 47,880,000 | $ 48,981,000 | |
Pension plan estimated employer contributions in next fiscal year | $ 2,141,000 | ||
Postretirement Health Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans | |||
Health care cost trend rate assumed | 7.50% | ||
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 4.50% | ||
Defined Benefit Plan, Year that Rate Reaches Ultimate Trend Rate | 2,036 |
DEFERRED COMPENSATION Deferred
DEFERRED COMPENSATION Deferred Comp and Bonus (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
Deferred Compensation | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | ||
Annual Total Amount Deferred | $ 677,000 | $ 483,000 |
Deferred Compensation Interest Expense | 404,000 | 438,000 |
Deferred Compensation Payments to Participants | 581,000 | 570,000 |
Deferred Compensation Recorded Liability | 9,617,000 | 9,117,000 |
Executive Deferred Bonus | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | ||
Deferred Compensation Arrangement with Individual, Employer Contribution | $ 583,000 | $ 763,000 |
Deferred Compensation Arrangement with Individual, Requisite Service Period | 3 years |
DEFERRED COMPENSATION SERP (Det
DEFERRED COMPENSATION SERP (Details) - Supplemental Employee Retirement Plan - USD ($) | 12 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
SERP Disclosure | ||
SERP, benefit obligation | $ 2,082,000 | $ 1,968,000 |
SERP expense | $ 114,000 | $ 535,000 |
LEASES Future minimum rental (D
LEASES Future minimum rental (Details) $ in Thousands | Jul. 31, 2017USD ($) |
Future Minimum Rental Requirements | |
2,018 | $ 2,099 |
2,019 | 1,634 |
2,020 | 1,422 |
2,021 | 1,384 |
2,022 | 943 |
Later years | $ 8,564 |
LEASES Rental Expense for all o
LEASES Rental Expense for all operating leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Total Rental Expense | |||
Rent Expense, Total | $ 3,151 | $ 3,227 | $ 3,206 |
Vehicles and Railcars | |||
Total Rental Expense | |||
Rent Expense | 1,431 | 1,439 | 1,559 |
Office facilities | |||
Total Rental Expense | |||
Rent Expense | 959 | 945 | 928 |
Warehouse facilities | |||
Total Rental Expense | |||
Rent Expense | 379 | 419 | 311 |
Mining properties | |||
Total Rental Expense | |||
Rent Expense, Minimum | 113 | 124 | 123 |
Rent Expense, Contingent | 191 | 239 | 239 |
Other | |||
Total Rental Expense | |||
Rent Expense | $ 78 | $ 61 | $ 46 |
SELECTED QUARTERLY FINANCIAL 75
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2017 | Apr. 30, 2017 | Jan. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2017 | Jul. 31, 2016 | Jul. 31, 2015 | |
Net Sales | $ 65,776 | $ 64,745 | $ 65,174 | $ 66,612 | $ 64,916 | $ 64,235 | $ 65,367 | $ 67,795 | $ 262,307 | $ 262,313 | $ 261,402 |
Gross Profit | 16,081 | 17,781 | 19,125 | 20,725 | 18,866 | 18,568 | 19,062 | 20,653 | 73,712 | 77,149 | 60,157 |
Net Income (Loss) | $ 1,322 | $ 3,211 | $ 4,250 | $ 2,009 | $ 5,261 | $ (892) | $ 3,821 | $ 5,423 | $ 10,792 | $ 13,613 | $ 11,368 |
Net Income Per Share, Diluted Common | $ 0.18 | $ 0.44 | $ 0.58 | $ 0.28 | $ 0.72 | $ (0.13) | $ 0.53 | $ 0.75 | $ 1.47 | $ 1.87 | $ 1.59 |
Common Stock | |||||||||||
Net Income Per Share, Basic | 0.20 | 0.48 | 0.63 | 0.30 | 0.78 | (0.14) | 0.57 | 0.82 | 1.60 | 2.04 | 1.73 |
Dividends Per Share | 0.2300 | 0.2200 | 0.2200 | 0.2200 | 0.2200 | 0.2100 | 0.2100 | 0.2100 | 0.8900 | 0.8500 | |
Common Stock Price Range, High | 43.84 | 40.95 | 40.94 | 39.52 | 37.67 | 38.43 | 38.92 | 31.61 | |||
Common Stock Price Range, Low | 33.61 | 33.26 | 31.35 | 32.55 | 29.89 | 32.24 | 28.42 | 21.65 | |||
Common Class B | |||||||||||
Net Income Per Share, Basic | 0.15 | 0.36 | 0.47 | 0.23 | 0.59 | (0.10) | 0.43 | 0.61 | 1.20 | 1.53 | $ 1.30 |
Dividends Per Share | $ 0.1730 | $ 0.1650 | $ 0.1650 | $ 0.1650 | $ 0.1650 | $ 0.1575 | $ 0.1575 | $ 0.1575 | $ 0.6680 | $ 0.6375 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - Director - USD ($) | 12 Months Ended | |
Jul. 31, 2017 | Jul. 31, 2016 | |
Related Party Transaction | ||
Revenue from Related Parties | $ 395,000 | $ 434,000 |
Accounts Receivable, Related Parties, Current | 0 | 28,000 |
Purchases from Related Party | 321,000 | 207,000 |
Accounts Payable, Related Parties, Current | $ 19,000 | $ 0 |