Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Jul. 31, 2019 | Sep. 30, 2019 | Jan. 31, 2019 | |
Entity Information [Line Items] | |||
Entity Registrant Name | Oil-Dri Corp of America | ||
Entity Central Index Key | 0000074046 | ||
Current Fiscal Year End Date | --07-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Document Type | 10-K | ||
Document Period End Date | Jul. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
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 | $ 135,930,000 | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Common Stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 5,356,902 | ||
Common Class B | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 2,251,738 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 21,862 | $ 12,757 |
Short-term investments | 0 | 7,124 |
Accounts receivable, less allowance of $644 and $817 in 2019 and 2018, respectively | 35,459 | 33,602 |
Inventories, net | 24,163 | 22,521 |
Prepaid repairs expense | 4,708 | 4,111 |
Prepaid expenses and other assets | 3,084 | 2,899 |
Total Current Assets | 89,276 | 83,014 |
Property, Plant and Equipment | ||
Buildings and leasehold improvements | 38,852 | 38,534 |
Machinery and equipment | 145,402 | 141,530 |
Office furniture and equipment | 20,569 | 11,089 |
Vehicles | 15,375 | 14,151 |
Gross depreciable assets | 220,198 | 205,304 |
Less accumulated depreciation and amortization | (159,036) | (149,385) |
Net depreciable assets | 61,162 | 55,919 |
Construction in progress | 12,519 | 13,985 |
Land and mineral rights | 17,117 | 16,802 |
Total Property, Plant and Equipment, Net | 90,798 | 86,706 |
Other Assets | ||
Goodwill | 9,262 | 9,262 |
Trademarks and patents, net of accumulated amortization of $299 and $267 in 2019 and 2018, respectively | 1,599 | 1,220 |
Customer list, net of accumulated amortization of $6,297 and $5,540 in 2019 and 2018, respectively | 1,488 | 2,245 |
Deferred income taxes | 7,755 | 7,349 |
Other | 5,049 | 4,886 |
Total Other Assets | 25,153 | 24,962 |
Total Assets | 205,227 | 194,682 |
Current Liabilities | ||
Current maturities of notes payable | 3,083 | 3,083 |
Accounts payable | 8,092 | 6,543 |
Dividends payable | 1,761 | 1,627 |
Accrued expenses | ||
Salaries, wages and commissions | 6,740 | 8,974 |
Trade promotions and advertising | 1,588 | 1,280 |
Freight | 2,635 | 1,767 |
Other | 8,707 | 7,675 |
Total Current Liabilities | 32,606 | 30,949 |
Noncurrent Liabilities | ||
Notes payable, net of unamortized debt issuance costs of $31 and $60 in 2019 and 2018, respectively | 3,052 | 6,107 |
Deferred compensation | 6,014 | 6,100 |
Pension and postretirement benefits | 23,721 | 15,906 |
Other | 4,288 | 3,735 |
Total Noncurrent Liabilities | 37,075 | 31,848 |
Total Liabilities | 69,681 | 62,797 |
Stockholders’ Equity | ||
Additional paid-in capital | 41,300 | 38,473 |
Retained earnings | 164,756 | 158,935 |
Noncontrolling interest | (14) | (18) |
Accumulated Other Comprehensive Loss | ||
Pension and postretirement benefits | (14,891) | (10,384) |
Cumulative translation adjustment | (148) | (231) |
Total Accumulated Other Comprehensive Loss | (15,039) | (10,615) |
Less Treasury Stock, at cost (2,926,547 Common and 324,741 Class B shares in 2019 and 2,914,092 Common and 324,741 Class B shares in 2018) | (56,543) | (55,946) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 135,546 | 131,885 |
Total Liabilities and Stockholders’ Equity | 205,227 | 194,682 |
Common Stock | ||
Stockholders’ Equity | ||
Common Stock, par value $.10 | 828 | 809 |
Common Class B | ||
Stockholders’ Equity | ||
Common Stock, par value $.10 | $ 258 | $ 247 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet Parentheticals (Parentheticals) - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 |
Current Assets | ||
Allowance for doubtful accounts | $ 644 | $ 817 |
Other Assets | ||
Trademarks and patents accumulated amortization | 299 | 267 |
Customer list accumulated amortization | 6,297 | 5,540 |
Noncurrent Liabilities | ||
Debt Issuance Costs, Noncurrent, Net | $ 31 | $ 60 |
Common Stock | ||
Stockholders’ Equity | ||
Common Stock, par value per share | $ 0.10 | $ 0.10 |
Common Stock, shares issued | 8,284,199 | 8,086,849 |
Treasury Stock, shares | 2,926,547 | 2,914,092 |
Common Class B | ||
Stockholders’ Equity | ||
Common Stock, par value per share | $ 0.10 | $ 0.10 |
Common Stock, shares issued | 2,576,479 | 2,468,979 |
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, 2019 | Jul. 31, 2018 | |
Net Sales | $ 277,025 | $ 266,000 |
Cost of Sales | (211,365) | (194,078) |
Gross Profit | 65,660 | 71,922 |
Selling, General and Administrative Expenses | (55,248) | (56,045) |
Income from Operations | 10,412 | 15,877 |
Other Income (Expense) | ||
Interest income | 250 | 259 |
Interest expense | (594) | (676) |
Foreign exchange loss | (243) | 0 |
Other, net | 4,723 | (594) |
Total Other Income (Expense), Net | 4,136 | (1,011) |
Income Before Income Taxes | 14,548 | 14,866 |
Income Tax Expense | (1,933) | (6,644) |
Net income | 12,615 | 8,222 |
Net Income (Loss) Attributable to Noncontrolling Interest | 4 | (18) |
Net Income Attributable to Oil-Dri | $ 12,611 | $ 8,240 |
Net Income Per Share | ||
Diluted Common | $ 1.67 | $ 1.11 |
Average Shares Outstanding | ||
Diluted Common (in shares) | 7,251 | 7,222 |
Basic Common | ||
Net Income Per Share | ||
Basic | $ 1.82 | $ 1.22 |
Average Shares Outstanding | ||
Basic (in shares) | 5,112 | 5,036 |
Basic Class B Common | ||
Net Income Per Share | ||
Basic | $ 1.36 | $ 0.91 |
Average Shares Outstanding | ||
Basic (in shares) | 2,068 | 2,097 |
Consolidate Statements of Compr
Consolidate Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Net Income (Loss) Attributable to Parent | ||
Net Income Attributable to Oil-Dri | $ 12,611 | $ 8,240 |
Other Comprehensive (Loss) Income | ||
Pension and postretirement benefits (net of tax) | (4,507) | 2,207 |
Cumulative translation adjustment | 83 | (266) |
Other Comprehensive (Loss) Income | (4,424) | 1,941 |
Comprehensive Income | $ 8,187 | $ 10,181 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders Equity Statement - USD ($) $ in Thousands | Total | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest | Common & Class B Stock | Treasury Stock |
Total, Beginning of Period at Jul. 31, 2017 | $ 126,037 | $ 36,242 | $ 154,735 | $ (10,292) | $ 0 | $ 1,053 | $ (55,701) |
Common & Class B Stock, Beginning of Period (in shares) at Jul. 31, 2017 | 10,528,678 | ||||||
Treasury Stock, Beginning of Period (in shares) at Jul. 31, 2017 | (3,232,111) | ||||||
Net Income | 8,222 | 0 | 0 | $ 0 | $ 0 | ||
Net Income (Loss) Attributable to Noncontrolling Interest | (18) | (18) | |||||
Net Income Attributable to Oil-Dri | 8,240 | 8,240 | |||||
Other Comprehensive Income (Loss) | 1,941 | 0 | 0 | 1,941 | 0 | 0 | 0 |
Reclassification upon adoption of accounting standard | 0 | 0 | 2,264 | (2,264) | 0 | 0 | 0 |
Dividends Declared | (6,304) | 0 | (6,304) | 0 | 0 | 0 | 0 |
Purchases of Treasury Stock | (27) | 0 | 0 | 0 | 0 | $ 0 | $ (27) |
Purchases of Treasury Stock (in shares) | (622) | ||||||
Net Issuance of Stock Under Long-Term Incentive Plans (in shares) | 27,150 | (6,100) | |||||
Net issuance of stock under long-term incentive plans | 241 | 456 | 0 | 0 | 0 | $ 3 | $ (218) |
Amortization of Restricted Stock | 1,775 | 1,775 | 0 | 0 | 0 | 0 | 0 |
Total, End of Period at Jul. 31, 2018 | 131,885 | 38,473 | 158,935 | (10,615) | (18) | $ 1,056 | $ (55,946) |
Common & Class B Stock, End of Period (in shares) at Jul. 31, 2018 | 10,555,828 | ||||||
Treasury Stock, End of Period (in shares) at Jul. 31, 2018 | (3,238,833) | ||||||
Net Income | 12,615 | 0 | 0 | $ 0 | $ 0 | ||
Net Income (Loss) Attributable to Noncontrolling Interest | 4 | 4 | |||||
Net Income Attributable to Oil-Dri | 12,611 | ||||||
Other Comprehensive Income (Loss) | (4,424) | 0 | 0 | (4,424) | 0 | 0 | 0 |
Dividends Declared | (6,790) | 0 | (6,790) | 0 | 0 | 0 | 0 |
Purchases of Treasury Stock | (147) | 0 | 0 | 0 | 0 | $ 0 | $ (147) |
Purchases of Treasury Stock (in shares) | (4,905) | ||||||
Net Issuance of Stock Under Long-Term Incentive Plans (in shares) | 304,850 | (7,550) | |||||
Net issuance of stock under long-term incentive plans | (1) | 419 | 0 | 0 | 0 | $ 30 | $ (450) |
Amortization of Restricted Stock | 2,408 | 2,408 | 0 | 0 | 0 | 0 | 0 |
Total, End of Period at Jul. 31, 2019 | $ 135,546 | $ 41,300 | $ 164,756 | $ (15,039) | $ (14) | $ 1,086 | $ (56,543) |
Common & Class B Stock, End of Period (in shares) at Jul. 31, 2019 | 10,860,678 | ||||||
Treasury Stock, End of Period (in shares) at Jul. 31, 2019 | (3,251,288) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Cash Flows from Operating Activities | ||
Net Income | $ 12,615 | $ 8,222 |
Adjustments to reconcile net income to net cash provided by operating activites: | ||
Depreciation and amortization | 13,330 | 12,756 |
Amortization of investment discounts | (10) | (129) |
Non-cash stock compensation expense | 2,407 | 1,600 |
Deferred income taxes | (406) | 7,270 |
Provision for bad debts and cash discounts | (179) | 252 |
Loss on the sale of property, plant and equipment | 6 | 84 |
Life insurance benefits | 0 | (340) |
(Increase) decrease in: | ||
Accounts receivable | (1,729) | (522) |
Inventories | (1,693) | 225 |
Prepaid expenses | (786) | (807) |
Other assets | (617) | 134 |
Increase (decrease) in: | ||
Accounts payable | 590 | (2,436) |
Accrued expenses | (589) | 771 |
Deferred compensation | (86) | (5,437) |
Pension and postretirement benefits | 3,307 | (11,048) |
Other liabilities | 583 | 17 |
Total Adjustments | 14,128 | 2,390 |
Net Cash Provided by Operating Activities | 26,743 | 10,612 |
Cash Flows from Investing Activities | ||
Capital expenditures | (15,029) | (15,074) |
Proceeds from sale of property, plant and equipment | 7 | 48 |
Acquisition of business | 0 | (730) |
Purchases of short-term investments | (4,678) | (35,911) |
Dispositions of short-term investments | 11,812 | 52,492 |
Proceeds from life insurance | 0 | 1,747 |
Net Cash (Used in) Provided by Investing Activities | (7,888) | 2,572 |
Cash Flows from Financing Activities | ||
Principal payments on notes payable | (3,083) | (3,083) |
Dividends paid | (6,656) | (6,230) |
Purchase of treasury stock | (147) | (26) |
Net Cash Used in Financing Activities | (9,886) | (9,339) |
Effect of exchange rate changes on cash and cash equivalents | 136 | (183) |
Net Increase in Cash and Cash Equivalents | 9,105 | 3,662 |
Cash and Cash Equivalents, Beginning of Year | 12,757 | 9,095 |
Cash and Cash Equivalents, End of Year | 21,862 | 12,757 |
Other cash flows: | ||
Interest payments, net of amounts capitalized | 305 | 282 |
Income Taxes Paid, Net [Abstract] | ||
Proceeds from Income Tax Refunds | (713) | |
Income taxes | 1,994 | |
Noncash investing and financing activities: | ||
Capital expenditures accrued, but not paid | 2,263 | 997 |
Cash dividends declared and accrued, but not paid | $ 1,761 | $ 1,627 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2019 | |
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 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 U.S. GAAP 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. Our estimates and assumptions are revised periodically. Actual results could differ from these 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 No short-term investments were held as of July 31, 2019 due to the low returns available on these investments. The table below shows the composition of short-term investments as of July 31, 2018 (in thousands): 2018 U.S. Treasury securities $ 3,992 Certificates of deposit 3,132 Short-term investments $ 7,124 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 The composition of inventories was as follows as of July 31 (in thousands): 2019 2018 Finished goods $ 13,957 $ 14,223 Packaging 5,681 5,349 Other 4,525 2,949 Inventories $ 24,163 $ 22,521 Inventories are valued at the lower of cost (first-in, first-out) or net realizable value. Inventory costs include the cost of raw materials, packaging supplies, labor and other overhead costs. We performed a detailed review of our inventory items to determine if an obsolescence reserve adjustment was necessary. The review surveyed all of our operating facilities and sales groups to ensure that both historical issues and new market trends were considered. The obsolescence reserve not only considered specific items, but also took into consideration the overall value of the inventory as of the balance sheet date. We recorded inventory obsolescence reserves of approximately $704,000 and $1,136,000 as of July 31, 2019 and 2018 , respectively. The reserve decreased due to lower levels of discontinued, slow moving and unsaleable finished goods inventory. Other inventories increased due to the lower obsolescence reserve and increased levels of purchased materials. 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 10 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 $862,000 in fiscal year 2019 and $1,017,000 in fiscal year 2018 . Some intangible assets 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): 2020 $ 667 2021 $ 484 2022 $ 334 2023 $ 201 2024 $ 68 The weighted average amortization period of our intangibles subject to amortization is as follows (in years): Weighted Average Amortization Period Trademarks and patents 15.2 Debt issuance costs 1.1 Customer list 4.3 Total intangible assets subject to amortization 6.5 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 $5,415,000 to the Retail and Wholesale Products Group and $3,847,000 to the Business to Business Products Group. We performed our annual impairment testing in the fourth quarter of fiscal years 2019 and 2018 . 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. There was no impairment required based on our analysis for fiscal years 2019 or 2018 . O VERBURDEN R EMOVAL AND M INING C OSTS We surface mine sorbent minerals 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 $2,430,000 and $2,849,000 for fiscal years 2019 and 2018 , 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 $13,638,000 and $2,165,000 , respectively, as of July 31, 2019 , and were $13,615,000 and $2,165,000 , respectively, as of July 31, 2018 . 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 material capitalized pre-production development costs were recorded in fiscal years 2019 and 2018 . Prepaid royalties included in current prepaid expenses and in non-current other assets on the Consolidated Balance Sheets were approximately $1,184,000 and $1,167,000 as of July 31, 2019 and 2018 , 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 $12,468,000 and $11,739,000 in fiscal years 2019 and 2018 , 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. There was no capitalized interest in fiscal year 2019 and $176,000 in fiscal year and 2018 . Years Buildings and leasehold improvements 3 - 40 Machinery and equipment Packaging 2 - 20 Processing 2 - 25 Mining and other 3 - 20 Office furniture and equipment 2 - 15 Vehicles 2 - 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. No impairment was recorded in either fiscal year 2019 or 2018 . 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 $6,909,000 and $10,551,000 in fiscal years 2019 and 2018 , respectively. 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, 2019 and 2018 . 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 performance obligations under the terms of the contracts with customers are satisfied. Our performance obligation generally consists of the promise to sell finished products to wholesalers, distributors and retailers or consumers and our obligations have an original duration of one year or less. Control of the finished products are transferred upon shipment to, or receipt at, customers' locations, as determined by the specific terms of the contract. We have completed our performance obligation when control is transferred and we recognize revenue accordingly. Taxes collected from customers and remitted to governmental authorities are excluded from net sales. Sales returns and allowances are not material. We have an unconditional right to consideration under the payment terms specified in the contract upon completion of the performance obligation. We may require certain customers to provide payment in advance of product shipment. We recorded a liability for these advance payments of $259,000 and $96,000 as of July 31, 2019 and July 31, 2018 , respectively. This liability is reported in Other Accrued Expenses on the Consolidated Balance Sheets. Revenue recognized during fiscal year 2019 that was included in the liability for advance payments at the beginning of the year was $96,000 . 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 $47,717,000 and $42,542,000 for fiscal years 2019 and 2018 , 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 $3,202,000 and $3,430,000 were charged to expense as incurred for fiscal years 2019 and 2018 , respectively, and are recorded in selling, general and administrative expenses. 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 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 May 2014, the FASB issued guidance under ASC 606, Revenue from Contracts with Customers , and subsequently issued several amendments to further clarify the principles for recognizing revenue. This guidance establishes a single comprehensive revenue recognition model for all contracts with customers and will supersede most existing revenue guidance. The core principle of ASC 606 is that entities should 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 adopted the new guidance on a modified retrospective basis effective August 1, 2018. We applied the practical expedient available under ASC 606 to disregard determining significant financing components if the good is transferred and payment is received within one year. We also adopted the policy election to exclude from the transaction price all amounts collected from customers for sales and other taxes. There was no material impact on our Consolidated Financial Statements from the adoption of this guidance. Results for periods beginning on or after August 1, 2018 are recognized and presented in accordance with ASC 606, while prior period amounts have not been adjusted and continue to be reported in accordance with the prior account guidance under ASC 605, Revenue Recognition . 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. This guidance was effective for our first quarter of fiscal year 2019. The provisions relevant to us relate to fair value disclosures for our notes payable, which are measured at amortized cost on the balance sheet. These provisions require the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes, as well as eliminate the requirement to disclose the method and significant assumptions used to estimate the fair value in such disclosure. This guidance impacted our disclosures only on a prospective basis and did not have a material impact 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 items that includes service costs and outside of any subtotal of operating income, if one is presented, on a retrospective basis. We adopted this new guidance in the first quarter of fiscal 2019 and accordingly recorded the non-service cost components of net periodic benefit cost in Other Income (Expense) in the line item Other, net on the Consolidated Statements of Operations. As such, the adoption did not have a material impact on our Consolidated Financial Statements. In July 2019 the FASB updated the ASC to reflect the SEC's final rule to simplify certain disclosure requirements, Disclosure Update and Simplification, which removed or modified certain disclosure requirements that require substantially similar information in other SEC disclosure requirements or under U.S. GAAP, as well as information that has become outdated over time. The amendments generally eliminate disclosures, but also include one expanded disclosure related to interim-period changes in stockholders' equity, which we complied with accordingly in our Form 10-Q for the third quarter of fiscal year 2019. Recently Issued Accounting Standards 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 a ROU asset. Other requirements describe expense recognition, as well as financial statement presentation and disclosure. In July 2018, the FASB issued further guidance which provided alternative transition methods. The Company will adopt this guidance for our first quarter of fiscal year 2020 on a modified retrospective transition approach, and will not restate prior comparative periods presented in our financial statements. We expect to elect certain practical expedients, including the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. We have substantially completed our plan for the adoption of this new standard, including implementing software to meet the reporting and disclosure requirements of this standard. We anticipate the adoption of this new standard will result in the recognition of additional ROU assets of approximately $9,222,000 and liabilities of approximately $10,784,000 with the difference largely due to deferred rent that will be reclassified. 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. 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, 2019 | |
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 for our principal products by segment are as follows (in thousands): Business to Business Products Group Retail and Wholesale Products Group Year Ended July 31, Product 2019 2018 2019 2018 Cat Litter $ 13,764 $ 13,301 $ 135,489 $ 124,635 Industrial and Sports — — 33,341 34,224 Agricultural and Horticultural 24,311 23,897 — — Bleaching Clay and Fluids Purification 51,905 49,783 2,318 2,098 Animal Health and Nutrition 15,897 18,062 — — Net Sales $ 105,877 $ 105,043 $ 171,148 $ 160,957 Net sales and operating income for each segment are provided below. 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 in the table below 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. Other income in fiscal year 2019 included net proceeds upon resolution of legal proceedings. The amount received under a confidential agreement resolving these legal proceedings was material to our financial results for the period. July 31, Assets 2019 2018 (in thousands) Business to Business Products $ 65,282 $ 65,143 Retail and Wholesale Products 94,809 89,623 Unallocated assets 45,136 39,916 Total Assets $ 205,227 $ 194,682 Year Ended July 31, Net Sales Income 2019 2018 2019 2018 (in thousands) Business to Business Products $ 105,877 $ 105,043 $ 31,388 $ 35,120 Retail and Wholesale Products 171,148 160,957 8,683 6,975 Net Sales $ 277,025 $ 266,000 Corporate Expenses (29,659 ) (26,218 ) Income from Operations 10,412 15,877 Total Other Income (Expense), Net 4,136 (1,011 ) Income Before Income Taxes 14,548 14,866 Income Tax Expense (1,933 ) (6,644 ) Net Income $ 12,615 $ 8,222 Net Income (Loss) Attributable to Noncontrolling Interest $ 4 $ (18 ) Net Income Attributable to Oil-Dri $ 12,611 $ 8,240 The following is a summary by fiscal year of financial information by geographic region (in thousands): 2019 2018 Sales to unaffiliated customers by: Domestic operations $ 264,476 $ 254,158 Foreign subsidiaries $ 12,549 $ 11,842 Sales or transfers between geographic areas: Domestic operations $ 5,097 $ 5,570 Income before income taxes: Domestic operations $ 14,280 $ 14,742 Foreign subsidiaries $ 268 $ 124 Net Income (Loss) attributable to Oil-Dri: Domestic operations $ 12,456 $ 8,249 Foreign subsidiaries $ 155 $ (9 ) Identifiable assets: Domestic operations $ 195,032 $ 185,361 Foreign subsidiaries $ 10,195 $ 9,321 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: 2019 2018 Net sales for the years ended July 31 20% 18% Net accounts receivable as of July 31 26% 26% 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, 2019 | |
Notes Payable [Abstract] | |
Debt | DEBT The composition of notes payable is as follows as of July 31 (in thousands): 2019 2018 Senior notes payable in annual principal installments on August 1: $3,083 in each fiscal year 2020 through 2021. Interest is payable semiannually at an annual rate of 3.96% $ 6,167 $ 9,250 Less current maturities of notes payable (3,083 ) (3,083 ) Less unamortized debt issuance costs $ (32 ) $ (60 ) Noncurrent notes payable $ 3,052 $ 6,107 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. We have a credit agreement with BMO Harris that expires on January 31, 2024 . The agreement provides for a $45,000,000 unsecured revolving credit agreement, including a maximum of $10,000,000 for foreign letters of credit. Under the agreement 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, 2019 , the variable rates would have been 5.75% for the BMO Harris’ prime-based rate or 3.52% for the LIBOR-based rate. We borrowed $6,000,000 at a weighted average interest rate of 2.96% under the credit agreement during the third quarter of fiscal year 2018. The amount borrowed was repaid in the fourth quarter of fiscal year 2018. The proceeds from the borrowing were used to make a voluntary contribution to our pension plan. As of July 31, 2019 and 2018 , there were no outstanding borrowings under this credit agreement; however, there was a total of $5,973,000 allocated for guarantees required by one of our insurance policies and state environmental regulations. 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. 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, 2019 . The following is a schedule by fiscal year of future principal maturities of notes payable as of July 31, 2019 (in thousands): 2020 $ 3,083 2021 3,084 Total $ 6,167 |
FINANCIAL INSTRUMENTS Level 1 (
FINANCIAL INSTRUMENTS Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2019 | |
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. Cash equivalents are classified as Level 1 of the fair value hierarchy because they were valued using quoted market prices in active markets. Cash equivalents were $26,000 and $9,920,000 as of July 31, 2019 and 2018 , respectively. These cash instruments are primarily money market funds and are 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 had no short-term investments as of July 31, 2019 due to the low returns available on these investments. Short-term investment held as of July 31, 2018 were reported at amortized cost on the Consolidated Balance Sheets, which approximated fair value, given our intent and ability to hold them until maturity. Accounts receivable and accounts payable balances on the Consolidated Balance Sheets approximate their fair values as of July 31, 2019 and 2018 due to the short maturity and nature of those balances. Notes payable on the Consolidated Balance Sheets are carried at the face amount of future maturities. The estimated fair value of notes payable was approximately $6,357,000 as of July 31, 2019 and $9,553,000 as of July 31, 2018 . 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, 2019 | |
INCOME TAXES [Abstract] | |
Income Taxes | INCOME TAXES The provision for income tax expense by fiscal year consists of the following (in thousands): 2019 2018 Current Federal $ (529 ) $ 4,490 Foreign (5 ) 57 State 1,416 149 Current Income Tax Total 882 4,696 Deferred Federal 1,344 1,491 Foreign 113 94 State (406 ) 363 Deferred Income Tax Total 1,051 1,948 Total Income Tax Expense $ 1,933 $ 6,644 On December 22, 2017, the U.S. government enacted the 2017 Tax Act. The 2017 Tax Act included a number of changes to existing U.S. tax laws that impact us, most notably a reduction of the U.S. corporate income tax rate and acceleration of depreciation for certain assets placed in service after September 27, 2017, as well as prospective changes, including repeal of the domestic manufacturing deduction and capitalization of research and development expenditures. The 2017 Tax Act reduced the U.S. federal corporate tax rate from 35.0% to 21.0% for all corporations effective January 1, 2018. For fiscal year companies, the change in law requires the application of a blended rate for each quarter of the fiscal year of enactment. We applied a blended tax rate of 26.9% for fiscal year 2018. For fiscal year 2019 and thereafter, the applicable statutory rate is 21.0% . In addition, during fiscal year 2018 the change in the U.S. corporate income tax rate caused us to adjust our U.S. net deferred tax assets to the reduced U.S. federal corporate tax rate and to record a provisional charge as a discrete item in the provision for income taxes. This transitional impact resulted in a provisional net charge of approximately $3,996,000 in fiscal year 2018. Our analysis of the 2017 Tax Act impact was finalized in fiscal 2019 and there were no adjustments to these provisional amounts. Principal reasons for variations between the statutory federal rate and the effective rates by fiscal year were as follows: 2019 2018 U.S. federal income tax rate 21.0 % 26.9 % Depletion deductions allowed for mining (8.2 ) (10.1 ) State income tax expense, net of federal tax expense 2.5 2.5 Difference in effective tax rate of foreign subsidiaries 0.2 0.1 Prior year income taxes (1.9 ) 0.2 Change in federal tax rate applied to deferred tax assets and liabilities — 26.8 Deduction for domestic production activities — (1.4 ) Other (0.3 ) (0.3 ) Effective income tax rate 13.3 % 44.7 % The Consolidated Balance Sheets included the following tax effects of cumulative temporary differences as of July 31 (in thousands): ` 2019 2018 Assets Liabilities Assets Liabilities Depreciation $ — $ 3,995 $ — $ 3,284 Deferred compensation 2,121 — 2,057 — Postretirement benefits 6,100 — 4,164 — Allowance for doubtful accounts 81 — 118 — Deferred marketing expenses — 326 — 13 Other assets 390 — 374 — Accrued expenses 2,076 — 2,131 — Tax credits 250 — 683 — Amortization 166 — 200 — Inventories 264 — 570 — Depletion — 173 — 293 Stock-based compensation 556 — 367 — Reclamation 392 — 309 — Other assets – foreign 585 — 755 — Valuation allowance (732 ) — (789 ) — Total deferred taxes $ 12,249 $ 4,494 $ 10,939 $ 3,590 The adjustment to reflect the reduced U.S. federal corporate tax rate under the 2017 Tax Act impacted the deferred tax amounts for fiscal 2018 in the table above, particularly deferred taxes for depreciation, deferred compensation and postretirement benefits. Deferred taxes for postretirement benefits were also affected by a voluntary contribution that significantly reduced our pension liability. See Note 8 of the Notes to the Consolidated Financial Statements for further information about our postretirement benefits. We recorded a valuation allowance of $732,000 and $789,000 as of July 31, 2019 and July 31, 2018 , respectively, for the amount of the deferred tax benefit related to our foreign net operating loss carryforwards since we believe it is unlikely we will realize the benefit of these tax attributes in the future. As of July 31, 2019 , we have total net operating loss carryforwards from state jurisdictions of approximately $4,000,000 . No valuation allowance has been established for these carryforwards since we expect our future profitability will allow us to fully realize these tax benefits. 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 material liability for unrecognized tax benefits based on tax positions related to the current and prior fiscal years as of July 31, 2019 and 2018 ; correspondingly, no related interest and penalties were recognized as income tax expense and there were no accruals for such items in either of these fiscal years. We are subject to U.S. federal income tax as well as income tax in multiple state and foreign jurisdictions. We have no income tax returns under examination as of July 31, 2019 and federal tax returns for fiscal years 2017 and 2018 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. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2019 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
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, 2017 $ (10,327 ) $ 35 (10,292 ) Other comprehensive income (loss) before reclassifications, net of tax 1,310 a) (266 ) 1,044 Amounts reclassified from accumulated other comprehensive income, net of tax 897 b) — 897 Net current-period other comprehensive income (loss), net of tax 2,207 (266 ) 1,941 Reclassification to retained earnings upon adoption of accounting standard $ (2,264 ) $ — $ (2,264 ) Balance as of July 31, 2018 $ (10,384 ) $ (231 ) $ (10,615 ) Other comprehensive (loss) income before reclassifications, net of tax (5,089 ) a) 83 (5,006 ) Amounts reclassified from accumulated other comprehensive income, net of tax 582 b) — 582 Net current-period other comprehensive (loss) income, net of tax (4,507 ) 83 (4,424 ) Balance as of July 31, 2019 $ (14,891 ) $ (148 ) $ (15,039 ) a) Amounts are net of taxes of $ 1,607,000 and $413,000 in fiscal years 2019 and 2018 , respectively, and are included in Other Comprehensive Loss. b) Amounts are net of taxes of $185,000 and $373,000 in fiscal years 2019 and 2018 , 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, 2019 | |
STOCK-BASED COMPENSATION [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Oil-Dri Corporation of America 2006 Long Term Incentive Plan (as amended, the “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 . As of July 31, 2019 , there were 74,263 shares available for future grants under this plan. RESTRICTED S TOCK All non-vested restricted stock as of July 31, 2019 was issued under the 2006 Plan with vesting periods generally from two to five years. 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. 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, 2017 185 $ 30.96 2.8 $ 3,893 Granted 27 $ 42.59 Vested (28 ) $ 29.88 Forfeited (6 ) $ 35.90 Non-vested restricted stock outstanding at July 31, 2018 178 $ 32.74 1.7 $ 3,050 Granted 321 $ 32.89 Vested (61 ) $ 31.90 Forfeited (24 ) $ 30.85 Non-vested restricted stock outstanding at July 31, 2019 414 $ 33.09 4.5 $ 10,474 Stock-based compensation for restricted stock of $1,834,000 and $1,349,000 , net of related tax effect, was recognized in fiscal years 2019 and 2018 , respectively. The total restricted stock compensation related tax benefit was $579,000 and $426,000 in fiscal years 2019 and 2018 , respectively. |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFITS Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2019 | |
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. A postretirement health benefits plan is also provided 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. A 401(k) savings plan is maintained 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 $764,000 and $782,000 for fiscal years 2019 and 2018 , respectively. Obligations and Funded Status The following tables provide a reconciliation of changes in the plans’ benefit obligations, asset fair values and funded status by fiscal year (in thousands): Pension Benefits Postretirement Health Benefits 2019 2018 2019 2018 Change in benefit obligation : Benefit obligation, beginning of year $ 54,267 $ 53,742 $ 2,667 $ 2,925 Service cost 1,626 1,723 105 106 Interest cost 2,114 2,022 97 84 Actuarial loss (gain) 5,125 (1,811 ) 97 (363 ) Benefits paid (1,579 ) (1,409 ) (8 ) (85 ) Benefit obligation, end of year 61,553 54,267 2,958 2,667 Change in plan assets: Fair value of plan assets, beginning of year 40,971 27,457 — — Actual return on plan assets 1,333 1,719 — — Employer contribution — 13,204 8 85 Benefits paid (1,579 ) (1,409 ) (8 ) (85 ) Fair value of plan assets, end of year 40,725 40,971 — — Funded status, recorded in Consolidated Balance Sheets $ (20,828 ) $ (13,296 ) $ (2,958 ) $ (2,667 ) See “Cash Flows” below for further information about employer contributions and benefits payments. The accumulated benefit obligation for the Pension Plan was $54,696,000 and $48,358,000 as of July 31, 2019 and July 31, 2018 , respectively. The following table shows amounts recognized in the Consolidated Balance Sheets as of July 31 (in thousands): Pension Benefits Postretirement Health Benefits 2019 2018 2019 2018 Deferred income taxes $ 5,346 $ 3,525 $ 754 $ 639 Other current liabilities $ — $ — $ (65 ) $ (57 ) Other noncurrent liabilities $ (20,828 ) $ (13,296 ) $ (2,893 ) $ (2,610 ) Accumulated other comprehensive loss – net of tax: Net actuarial loss $ 14,731 $ 10,301 $ 184 $ 110 Prior service cost (income) $ — $ 2 $ (24 ) $ (29 ) 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 2019 2018 2019 2018 Service cost $ 1,626 $ 1,723 $ 105 $ 106 Interest cost 2,114 2,022 97 84 Expected return on plan assets (2,809 ) (2,168 ) — — Amortization of: Prior service costs (income) 2 2 (6 ) (6 ) Other actuarial loss 771 1,274 — — Net periodic benefit cost $ 1,704 $ 2,853 $ 196 $ 184 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 2019 2018 2019 2018 Net actuarial loss (gain) $ 5,016 $ (1,034 ) $ 73 $ (276 ) Amortization of: Prior service (cost) income (1 ) (2 ) 5 1 Amortization of actuarial (loss) gain (586 ) (901 ) — 5 Total recognized in other comprehensive loss (income) $ 4,429 $ (1,937 ) $ 78 $ (270 ) The following table shows amortization amounts, net of tax, expected to be recognized in fiscal year 2020 in accumulated other comprehensive income (in thousands): Amortization of: Pension Benefits Postretirement Health Benefits Net actuarial loss $ 1,087 $ — Prior service income — (5 ) Total to be recognized as other comprehensive loss (income) $ 1,087 $ (5 ) 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. During fiscal 2018, we made an $11,500,000 voluntary contribution in excess of the minimum required amount. This contribution was made within eight and one-half months after the end of our fiscal year 2017 and therefore was deductible for our 2017 tax year. We received a greater tax benefit for this deduction in our 2017 tax year compared to the the benefit we would have received if the contribution was attributed to our 2018 tax year. See Note 5 of the Notes to the Consolidated Financial Statements for further discussion of the tax rates and other changes enacted by the 2017 Tax Act. This voluntary contribution also improved our funded status and contributed to a lower net periodic benefit expense. We do not expect to make a contribution to the Pension Plan in fiscal year 2020 . The postretirement health plan is an unfunded plan. Our policy is to pay health 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 2020 $ 1,686 $ 66 2021 $ 1,763 $ 98 2022 $ 1,864 $ 108 2023 $ 1,902 $ 147 2024 $ 2,013 $ 236 2025-29 $ 13,969 $ 1,412 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 2019 2018 2019 2018 Discount rate for net periodic benefit costs 4.04% 3.75% 3.81% 3.26% Discount rate for year-end obligations 3.35% 4.04% 2.93% 3.81% 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% 7.00% — — The discount rate was based on the FTSE 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 2019 , 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 2038 . The following table reflects the effect on postretirement health costs and accruals in fiscal year 2019 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 $26 $(22) Effect on accumulated postretirement benefit obligation $301 $(267) 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 2020 and the actual allocation as of July 31: Asset Allocation Target fiscal 2020 2019 2018 Cash and accrued income 2% —% —% Fixed income 38% 42% 36% Equity 60% 58% 64% 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, 2019 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Asset Class Cash and cash equivalents (a) $ 66 $ 66 $ — Equity securities (b) : U.S. companies 13,775 4,147 9,628 International companies 2,609 2,609 — Equity securities - international mutual funds: Developed market (c) 5,275 — 5,275 Emerging markets (d) 1,141 — 1,141 Commodities (e) 637 — 637 Fixed Income: U.S. Treasuries 3,273 — 3,273 Debt securities (f) 8,103 — 8,103 Government sponsored entities (g) 2,087 — 2,087 Multi-strategy bond fund (h) 813 — 813 Money market fund (i) 557 — 557 Other (j) 2,389 — 2,389 Total $ 40,725 $ 6,822 $ 33,903 Fair Value At July 31, 2018 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Asset Class Cash and cash equivalents (a) $ 1,102 $ 1,102 $ — Equity securities (b) : U.S. companies 14,253 5,519 8,734 International companies 3,157 3,157 — Equity securities - international mutual funds: Developed market (c) 5,851 — 5,851 Emerging markets (d) 905 — 905 Commodities (e) 687 — 687 Fixed Income: U.S. Treasuries 1,929 — 1,929 Debt securities(f) 8,325 — 8,325 Government sponsored entities (g) 1,814 — 1,814 Money market fund (i) 1,567 — 1,567 Other (j) 1,381 — 1,381 Total $ 40,971 $ 9,778 $ 31,193 (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) These investments seek attractive total return by investing primarily in a diversified portfolio of commodity futures contracts and fixed income investments. (f) This class includes bonds and loans of U.S. and non-U.S. corporate issuers from diverse industries and bonds of domestic and foreign municipalities. (g) 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 $377,000 in our portfolio as of July 31, 2019 and $443,000 as of July 31, 2018 . (h) This class invests at least 80% of its net assets in bonds and other fixed income instruments issued by governmental or private-sector entities. More than 50% of its net assets are invested in mortgage-backed securities. The fund may invest up to 33 1/3% of its net assets in high-yield bonds, bank loans and assignments and credit default swaps. (i) 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. (j) This class includes funds that use a number of other strategies, including arbitrage, to obtain long-term positive returns. The portfolio of instruments may include equities, debt securities, real estate properties, 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, 2019 | |
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 $418,000 and $578,000 into these plans in fiscal years 2019 and 2018 , respectively. We recorded $204,000 and $371,000 of interest expense associated with these plans in fiscal years 2019 and 2018 , respectively. Payments to participants were $1,144,000 and $6,010,000 in fiscal years 2019 and 2018 , respectively, and the total liability recorded for deferred compensation was $3,560,000 and $4,218,000 as of July 31, 2019 and 2018 , 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 $513,000 and $609,000 were awarded to certain executives for fiscal years 2019 and 2018 , respectively. These awards will vest and accrue interest over a three -year period. Our 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 $2,708,000 and $2,169,000 as of July 31, 2019 and July 31, 2018 , respectively. We recorded expense related to the SERP of $539,000 and $87,000 in fiscal years 2019 and 2018 , respectively. 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, 2019 | |
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, 2019 | |
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, 2019 (in thousands): 2020 $ 2,255 2021 $ 1,640 2022 $ 1,513 2023 $ 1,038 2024 $ 899 Later years $ 7,422 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): 2019 2018 Vehicles and Railcars $ 1,319 $ 1,404 Office facilities 626 985 Warehouse facilities 434 408 Mining properties: Minimum 118 106 Contingent (1) 301 208 Other 75 92 Total $ 2,873 $ 3,203 (1) Contingent mining royalty payments are determined based on the tons of raw clay mined. |
SUBSEQUENT EVENTS Level 1 (Note
SUBSEQUENT EVENTS Level 1 (Notes) | 12 Months Ended |
Jul. 31, 2019 | |
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, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | 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 $462,000 and $388,000 for fiscal years 2019 and 2018 , respectively. There were $10,000 and $14,000 outstanding accounts receivable due from that customer, and its subsidiaries, as of July 31, 2019 and July 31, 2018 , respectively. 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 $271,000 and $229,000 for fiscal years 2019 and 2018 , respectively. There were no outstanding amounts due to that vendor as of July 31, 2019 or July 31, 2018 . |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Level 2 (Policies) | 12 Months Ended |
Jul. 31, 2019 | |
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 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 U.S. GAAP 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. Our estimates and assumptions are revised periodically. Actual results could differ from these 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 No short-term investments were held as of July 31, 2019 due to the low returns available on these investments. The table below shows the composition of short-term investments as of July 31, 2018 (in thousands): 2018 U.S. Treasury securities $ 3,992 Certificates of deposit 3,132 Short-term investments $ 7,124 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 The composition of inventories was as follows as of July 31 (in thousands): 2019 2018 Finished goods $ 13,957 $ 14,223 Packaging 5,681 5,349 Other 4,525 2,949 Inventories $ 24,163 $ 22,521 Inventories are valued at the lower of cost (first-in, first-out) or net realizable value. Inventory costs include the cost of raw materials, packaging supplies, labor and other overhead costs. We performed a detailed review of our inventory items to determine if an obsolescence reserve adjustment was necessary. The review surveyed all of our operating facilities and sales groups to ensure that both historical issues and new market trends were considered. The obsolescence reserve not only considered specific items, but also took into consideration the overall value of the inventory as of the balance sheet date. We recorded inventory obsolescence reserves of approximately $704,000 and $1,136,000 as of July 31, 2019 and 2018 , respectively. The reserve decreased due to lower levels of discontinued, slow moving and unsaleable finished goods inventory. Other inventories increased due to the lower obsolescence reserve and increased levels of purchased materials. |
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. |
Intangibles and Goodwill | I NTANGIBLES AND G OODWILL We amortize most of our intangibles on a straight-line basis over periods ranging from 10 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 $862,000 in fiscal year 2019 and $1,017,000 in fiscal year 2018 . Some intangible assets 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): 2020 $ 667 2021 $ 484 2022 $ 334 2023 $ 201 2024 $ 68 The weighted average amortization period of our intangibles subject to amortization is as follows (in years): Weighted Average Amortization Period Trademarks and patents 15.2 Debt issuance costs 1.1 Customer list 4.3 Total intangible assets subject to amortization 6.5 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 $5,415,000 to the Retail and Wholesale Products Group and $3,847,000 to the Business to Business Products Group. We performed our annual impairment testing in the fourth quarter of fiscal years 2019 and 2018 . 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. There was no impairment required based on our analysis for fiscal years 2019 or 2018 . |
Overburden Removal and Mining Costs | O VERBURDEN R EMOVAL AND M INING C OSTS We surface mine sorbent minerals 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 $2,430,000 and $2,849,000 for fiscal years 2019 and 2018 , 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 $13,638,000 and $2,165,000 , respectively, as of July 31, 2019 , and were $13,615,000 and $2,165,000 , respectively, as of July 31, 2018 . 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 material capitalized pre-production development costs were recorded in fiscal years 2019 and 2018 . Prepaid royalties included in current prepaid expenses and in non-current other assets on the Consolidated Balance Sheets were approximately $1,184,000 and $1,167,000 as of July 31, 2019 and 2018 , 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 $12,468,000 and $11,739,000 in fiscal years 2019 and 2018 , 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. There was no capitalized interest in fiscal year 2019 and $176,000 in fiscal year and 2018 . Years Buildings and leasehold improvements 3 - 40 Machinery and equipment Packaging 2 - 20 Processing 2 - 25 Mining and other 3 - 20 Office furniture and equipment 2 - 15 Vehicles 2 - 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. No impairment was recorded in either fiscal year 2019 or 2018 . |
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 $6,909,000 and $10,551,000 in fiscal years 2019 and 2018 , respectively. |
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, 2019 and 2018 . 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 performance obligations under the terms of the contracts with customers are satisfied. Our performance obligation generally consists of the promise to sell finished products to wholesalers, distributors and retailers or consumers and our obligations have an original duration of one year or less. Control of the finished products are transferred upon shipment to, or receipt at, customers' locations, as determined by the specific terms of the contract. We have completed our performance obligation when control is transferred and we recognize revenue accordingly. Taxes collected from customers and remitted to governmental authorities are excluded from net sales. Sales returns and allowances are not material. We have an unconditional right to consideration under the payment terms specified in the contract upon completion of the performance obligation. We may require certain customers to provide payment in advance of product shipment. We recorded a liability for these advance payments of $259,000 and $96,000 as of July 31, 2019 and July 31, 2018 , respectively. This liability is reported in Other Accrued Expenses on the Consolidated Balance Sheets. Revenue recognized during fiscal year 2019 that was included in the liability for advance payments at the beginning of the year was $96,000 . |
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 $47,717,000 and $42,542,000 for fiscal years 2019 and 2018 , 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 $3,202,000 and $3,430,000 were charged to expense as incurred for fiscal years 2019 and 2018 , respectively, and are recorded in selling, general and administrative expenses. |
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. 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. |
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 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 May 2014, the FASB issued guidance under ASC 606, Revenue from Contracts with Customers , and subsequently issued several amendments to further clarify the principles for recognizing revenue. This guidance establishes a single comprehensive revenue recognition model for all contracts with customers and will supersede most existing revenue guidance. The core principle of ASC 606 is that entities should 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 adopted the new guidance on a modified retrospective basis effective August 1, 2018. We applied the practical expedient available under ASC 606 to disregard determining significant financing components if the good is transferred and payment is received within one year. We also adopted the policy election to exclude from the transaction price all amounts collected from customers for sales and other taxes. There was no material impact on our Consolidated Financial Statements from the adoption of this guidance. Results for periods beginning on or after August 1, 2018 are recognized and presented in accordance with ASC 606, while prior period amounts have not been adjusted and continue to be reported in accordance with the prior account guidance under ASC 605, Revenue Recognition . 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. This guidance was effective for our first quarter of fiscal year 2019. The provisions relevant to us relate to fair value disclosures for our notes payable, which are measured at amortized cost on the balance sheet. These provisions require the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes, as well as eliminate the requirement to disclose the method and significant assumptions used to estimate the fair value in such disclosure. This guidance impacted our disclosures only on a prospective basis and did not have a material impact 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 items that includes service costs and outside of any subtotal of operating income, if one is presented, on a retrospective basis. We adopted this new guidance in the first quarter of fiscal 2019 and accordingly recorded the non-service cost components of net periodic benefit cost in Other Income (Expense) in the line item Other, net on the Consolidated Statements of Operations. As such, the adoption did not have a material impact on our Consolidated Financial Statements. In July 2019 the FASB updated the ASC to reflect the SEC's final rule to simplify certain disclosure requirements, Disclosure Update and Simplification, which removed or modified certain disclosure requirements that require substantially similar information in other SEC disclosure requirements or under U.S. GAAP, as well as information that has become outdated over time. The amendments generally eliminate disclosures, but also include one expanded disclosure related to interim-period changes in stockholders' equity, which we complied with accordingly in our Form 10-Q for the third quarter of fiscal year 2019. Recently Issued Accounting Standards 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 a ROU asset. Other requirements describe expense recognition, as well as financial statement presentation and disclosure. In July 2018, the FASB issued further guidance which provided alternative transition methods. The Company will adopt this guidance for our first quarter of fiscal year 2020 on a modified retrospective transition approach, and will not restate prior comparative periods presented in our financial statements. We expect to elect certain practical expedients, including the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. We have substantially completed our plan for the adoption of this new standard, including implementing software to meet the reporting and disclosure requirements of this standard. We anticipate the adoption of this new standard will result in the recognition of additional ROU assets of approximately $9,222,000 and liabilities of approximately $10,784,000 with the difference largely due to deferred rent that will be reclassified. 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. 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, 2019 | |
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, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement, Policy | 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, 2019 | |
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. 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. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Level 3 (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Short-Term Investments | The table below shows the composition of short-term investments as of July 31, 2018 (in thousands): 2018 U.S. Treasury securities $ 3,992 Certificates of deposit 3,132 Short-term investments $ 7,124 |
Inventories | The composition of inventories was as follows as of July 31 (in thousands): 2019 2018 Finished goods $ 13,957 $ 14,223 Packaging 5,681 5,349 Other 4,525 2,949 Inventories $ 24,163 $ 22,521 |
Estimated Intangible Amortization Expense | Our estimated intangible amortization expense for the next five fiscal years is as follows (in thousands): 2020 $ 667 2021 $ 484 2022 $ 334 2023 $ 201 2024 $ 68 |
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 15.2 Debt issuance costs 1.1 Customer list 4.3 Total intangible assets subject to amortization 6.5 |
Property, Plant and Equipment Estimated Useful Lives | Years Buildings and leasehold improvements 3 - 40 Machinery and equipment Packaging 2 - 20 Processing 2 - 25 Mining and other 3 - 20 Office furniture and equipment 2 - 15 Vehicles 2 - 15 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
OPERATING SEGMENTS [Abstract] | |
Revenue by Principal Product by Operating Segment | Net sales for our principal products by segment are as follows (in thousands): Business to Business Products Group Retail and Wholesale Products Group Year Ended July 31, Product 2019 2018 2019 2018 Cat Litter $ 13,764 $ 13,301 $ 135,489 $ 124,635 Industrial and Sports — — 33,341 34,224 Agricultural and Horticultural 24,311 23,897 — — Bleaching Clay and Fluids Purification 51,905 49,783 2,318 2,098 Animal Health and Nutrition 15,897 18,062 — — Net Sales $ 105,877 $ 105,043 $ 171,148 $ 160,957 |
Segment Reporting Information | Net sales and operating income for each segment are provided below. 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 in the table below 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. Other income in fiscal year 2019 included net proceeds upon resolution of legal proceedings. The amount received under a confidential agreement resolving these legal proceedings was material to our financial results for the period. July 31, Assets 2019 2018 (in thousands) Business to Business Products $ 65,282 $ 65,143 Retail and Wholesale Products 94,809 89,623 Unallocated assets 45,136 39,916 Total Assets $ 205,227 $ 194,682 Year Ended July 31, Net Sales Income 2019 2018 2019 2018 (in thousands) Business to Business Products $ 105,877 $ 105,043 $ 31,388 $ 35,120 Retail and Wholesale Products 171,148 160,957 8,683 6,975 Net Sales $ 277,025 $ 266,000 Corporate Expenses (29,659 ) (26,218 ) Income from Operations 10,412 15,877 Total Other Income (Expense), Net 4,136 (1,011 ) Income Before Income Taxes 14,548 14,866 Income Tax Expense (1,933 ) (6,644 ) Net Income $ 12,615 $ 8,222 Net Income (Loss) Attributable to Noncontrolling Interest $ 4 $ (18 ) Net Income Attributable to Oil-Dri $ 12,611 $ 8,240 |
Financial Information by Geographic Region | The following is a summary by fiscal year of financial information by geographic region (in thousands): 2019 2018 Sales to unaffiliated customers by: Domestic operations $ 264,476 $ 254,158 Foreign subsidiaries $ 12,549 $ 11,842 Sales or transfers between geographic areas: Domestic operations $ 5,097 $ 5,570 Income before income taxes: Domestic operations $ 14,280 $ 14,742 Foreign subsidiaries $ 268 $ 124 Net Income (Loss) attributable to Oil-Dri: Domestic operations $ 12,456 $ 8,249 Foreign subsidiaries $ 155 $ (9 ) Identifiable assets: Domestic operations $ 195,032 $ 185,361 Foreign subsidiaries $ 10,195 $ 9,321 |
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: 2019 2018 Net sales for the years ended July 31 20% 18% Net accounts receivable as of July 31 26% 26% |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Notes Payable [Abstract] | |
Schedule of Notes Payable | The composition of notes payable is as follows as of July 31 (in thousands): 2019 2018 Senior notes payable in annual principal installments on August 1: $3,083 in each fiscal year 2020 through 2021. Interest is payable semiannually at an annual rate of 3.96% $ 6,167 $ 9,250 Less current maturities of notes payable (3,083 ) (3,083 ) Less unamortized debt issuance costs $ (32 ) $ (60 ) Noncurrent notes payable $ 3,052 $ 6,107 |
Schedule of Maturities | The following is a schedule by fiscal year of future principal maturities of notes payable as of July 31, 2019 (in thousands): 2020 $ 3,083 2021 3,084 Total $ 6,167 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
INCOME TAXES [Abstract] | |
Schedule of Components of Income Tax Expense | The provision for income tax expense by fiscal year consists of the following (in thousands): 2019 2018 Current Federal $ (529 ) $ 4,490 Foreign (5 ) 57 State 1,416 149 Current Income Tax Total 882 4,696 Deferred Federal 1,344 1,491 Foreign 113 94 State (406 ) 363 Deferred Income Tax Total 1,051 1,948 Total Income Tax Expense $ 1,933 $ 6,644 |
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: 2019 2018 U.S. federal income tax rate 21.0 % 26.9 % Depletion deductions allowed for mining (8.2 ) (10.1 ) State income tax expense, net of federal tax expense 2.5 2.5 Difference in effective tax rate of foreign subsidiaries 0.2 0.1 Prior year income taxes (1.9 ) 0.2 Change in federal tax rate applied to deferred tax assets and liabilities — 26.8 Deduction for domestic production activities — (1.4 ) Other (0.3 ) (0.3 ) Effective income tax rate 13.3 % 44.7 % |
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): ` 2019 2018 Assets Liabilities Assets Liabilities Depreciation $ — $ 3,995 $ — $ 3,284 Deferred compensation 2,121 — 2,057 — Postretirement benefits 6,100 — 4,164 — Allowance for doubtful accounts 81 — 118 — Deferred marketing expenses — 326 — 13 Other assets 390 — 374 — Accrued expenses 2,076 — 2,131 — Tax credits 250 — 683 — Amortization 166 — 200 — Inventories 264 — 570 — Depletion — 173 — 293 Stock-based compensation 556 — 367 — Reclamation 392 — 309 — Other assets – foreign 585 — 755 — Valuation allowance (732 ) — (789 ) — Total deferred taxes $ 12,249 $ 4,494 $ 10,939 $ 3,590 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
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, 2017 $ (10,327 ) $ 35 (10,292 ) Other comprehensive income (loss) before reclassifications, net of tax 1,310 a) (266 ) 1,044 Amounts reclassified from accumulated other comprehensive income, net of tax 897 b) — 897 Net current-period other comprehensive income (loss), net of tax 2,207 (266 ) 1,941 Reclassification to retained earnings upon adoption of accounting standard $ (2,264 ) $ — $ (2,264 ) Balance as of July 31, 2018 $ (10,384 ) $ (231 ) $ (10,615 ) Other comprehensive (loss) income before reclassifications, net of tax (5,089 ) a) 83 (5,006 ) Amounts reclassified from accumulated other comprehensive income, net of tax 582 b) — 582 Net current-period other comprehensive (loss) income, net of tax (4,507 ) 83 (4,424 ) Balance as of July 31, 2019 $ (14,891 ) $ (148 ) $ (15,039 ) a) Amounts are net of taxes of $ 1,607,000 and $413,000 in fiscal years 2019 and 2018 , respectively, and are included in Other Comprehensive Loss. b) Amounts are net of taxes of $185,000 and $373,000 in fiscal years 2019 and 2018 , 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, 2019 | |
STOCK-BASED COMPENSATION [Abstract] | |
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, 2017 185 $ 30.96 2.8 $ 3,893 Granted 27 $ 42.59 Vested (28 ) $ 29.88 Forfeited (6 ) $ 35.90 Non-vested restricted stock outstanding at July 31, 2018 178 $ 32.74 1.7 $ 3,050 Granted 321 $ 32.89 Vested (61 ) $ 31.90 Forfeited (24 ) $ 30.85 Non-vested restricted stock outstanding at July 31, 2019 414 $ 33.09 4.5 $ 10,474 |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |
Schedule of Obligations and Funded Status | The following tables provide a reconciliation of changes in the plans’ benefit obligations, asset fair values and funded status by fiscal year (in thousands): Pension Benefits Postretirement Health Benefits 2019 2018 2019 2018 Change in benefit obligation : Benefit obligation, beginning of year $ 54,267 $ 53,742 $ 2,667 $ 2,925 Service cost 1,626 1,723 105 106 Interest cost 2,114 2,022 97 84 Actuarial loss (gain) 5,125 (1,811 ) 97 (363 ) Benefits paid (1,579 ) (1,409 ) (8 ) (85 ) Benefit obligation, end of year 61,553 54,267 2,958 2,667 Change in plan assets: Fair value of plan assets, beginning of year 40,971 27,457 — — Actual return on plan assets 1,333 1,719 — — Employer contribution — 13,204 8 85 Benefits paid (1,579 ) (1,409 ) (8 ) (85 ) Fair value of plan assets, end of year 40,725 40,971 — — Funded status, recorded in Consolidated Balance Sheets $ (20,828 ) $ (13,296 ) $ (2,958 ) $ (2,667 ) |
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 2019 2018 2019 2018 Deferred income taxes $ 5,346 $ 3,525 $ 754 $ 639 Other current liabilities $ — $ — $ (65 ) $ (57 ) Other noncurrent liabilities $ (20,828 ) $ (13,296 ) $ (2,893 ) $ (2,610 ) Accumulated other comprehensive loss – net of tax: Net actuarial loss $ 14,731 $ 10,301 $ 184 $ 110 Prior service cost (income) $ — $ 2 $ (24 ) $ (29 ) |
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 2019 2018 2019 2018 Service cost $ 1,626 $ 1,723 $ 105 $ 106 Interest cost 2,114 2,022 97 84 Expected return on plan assets (2,809 ) (2,168 ) — — Amortization of: Prior service costs (income) 2 2 (6 ) (6 ) Other actuarial loss 771 1,274 — — Net periodic benefit cost $ 1,704 $ 2,853 $ 196 $ 184 |
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 2019 2018 2019 2018 Net actuarial loss (gain) $ 5,016 $ (1,034 ) $ 73 $ (276 ) Amortization of: Prior service (cost) income (1 ) (2 ) 5 1 Amortization of actuarial (loss) gain (586 ) (901 ) — 5 Total recognized in other comprehensive loss (income) $ 4,429 $ (1,937 ) $ 78 $ (270 ) |
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 2020 in accumulated other comprehensive income (in thousands): Amortization of: Pension Benefits Postretirement Health Benefits Net actuarial loss $ 1,087 $ — Prior service income — (5 ) Total to be recognized as other comprehensive loss (income) $ 1,087 $ (5 ) |
Schedule of Expected Benefit Payments | The following table shows the estimated future benefit payments by fiscal year (in thousands): Pension Benefits Postretirement Health Benefits 2020 $ 1,686 $ 66 2021 $ 1,763 $ 98 2022 $ 1,864 $ 108 2023 $ 1,902 $ 147 2024 $ 2,013 $ 236 2025-29 $ 13,969 $ 1,412 |
Schedule of Assumptions Used | The assumptions used in the previous calculations by fiscal year were as follows: Pension Benefits Postretirement Health Benefits 2019 2018 2019 2018 Discount rate for net periodic benefit costs 4.04% 3.75% 3.81% 3.26% Discount rate for year-end obligations 3.35% 4.04% 2.93% 3.81% 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% 7.00% — — |
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 2019 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 $26 $(22) Effect on accumulated postretirement benefit obligation $301 $(267) |
Schedule of Allocation of Plan Assets | The targeted allocation percentages of plan assets is shown below for fiscal year 2020 and the actual allocation as of July 31: Asset Allocation Target fiscal 2020 2019 2018 Cash and accrued income 2% —% —% Fixed income 38% 42% 36% Equity 60% 58% 64% 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, 2019 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Asset Class Cash and cash equivalents (a) $ 66 $ 66 $ — Equity securities (b) : U.S. companies 13,775 4,147 9,628 International companies 2,609 2,609 — Equity securities - international mutual funds: Developed market (c) 5,275 — 5,275 Emerging markets (d) 1,141 — 1,141 Commodities (e) 637 — 637 Fixed Income: U.S. Treasuries 3,273 — 3,273 Debt securities (f) 8,103 — 8,103 Government sponsored entities (g) 2,087 — 2,087 Multi-strategy bond fund (h) 813 — 813 Money market fund (i) 557 — 557 Other (j) 2,389 — 2,389 Total $ 40,725 $ 6,822 $ 33,903 Fair Value At July 31, 2018 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Asset Class Cash and cash equivalents (a) $ 1,102 $ 1,102 $ — Equity securities (b) : U.S. companies 14,253 5,519 8,734 International companies 3,157 3,157 — Equity securities - international mutual funds: Developed market (c) 5,851 — 5,851 Emerging markets (d) 905 — 905 Commodities (e) 687 — 687 Fixed Income: U.S. Treasuries 1,929 — 1,929 Debt securities(f) 8,325 — 8,325 Government sponsored entities (g) 1,814 — 1,814 Money market fund (i) 1,567 — 1,567 Other (j) 1,381 — 1,381 Total $ 40,971 $ 9,778 $ 31,193 (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) These investments seek attractive total return by investing primarily in a diversified portfolio of commodity futures contracts and fixed income investments. (f) This class includes bonds and loans of U.S. and non-U.S. corporate issuers from diverse industries and bonds of domestic and foreign municipalities. (g) 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 $377,000 in our portfolio as of July 31, 2019 and $443,000 as of July 31, 2018 . (h) This class invests at least 80% of its net assets in bonds and other fixed income instruments issued by governmental or private-sector entities. More than 50% of its net assets are invested in mortgage-backed securities. The fund may invest up to 33 1/3% of its net assets in high-yield bonds, bank loans and assignments and credit default swaps. (i) 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. (j) This class includes funds that use a number of other strategies, including arbitrage, to obtain long-term positive returns. The portfolio of instruments may include equities, debt securities, real estate properties, warrants, options, swaps, future contracts, forwards or other types of derivative instruments. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
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, 2019 (in thousands): 2020 $ 2,255 2021 $ 1,640 2022 $ 1,513 2023 $ 1,038 2024 $ 899 Later years $ 7,422 |
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): 2019 2018 Vehicles and Railcars $ 1,319 $ 1,404 Office facilities 626 985 Warehouse facilities 434 408 Mining properties: Minimum 118 106 Contingent (1) 301 208 Other 75 92 Total $ 2,873 $ 3,203 (1) Contingent mining royalty payments are determined based on the tons of raw clay mined. |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Short-Term Investments (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 |
Investment | ||
Short-term investments | $ 0 | $ 7,124 |
U.S. Treasury Securities | ||
Investment | ||
Short-term investments | 3,992 | |
Certificates of Deposit | ||
Investment | ||
Short-term investments | $ 3,132 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Inventories (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 |
Finished goods | $ 13,957 | $ 14,223 |
Packaging | 5,681 | 5,349 |
Other | 4,525 | 2,949 |
Inventories | $ 24,163 | $ 22,521 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Intangible Assets Amortization Expense (Details) $ in Thousands | Jul. 31, 2019USD ($) |
Estimated Intangible Amortization Expense | |
2020 | $ 667 |
2021 | 484 |
2022 | 334 |
2023 | 201 |
2024 | $ 68 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Intangible Assets Weighted Average Amortization Period (Details) | 12 Months Ended |
Jul. 31, 2019 | |
Finite-Lived Intangible Assets | |
Finite-lived Intangible Assets, Weighted Average Amortization Period | 6 years 6 months |
Trademarks and patents | |
Finite-Lived Intangible Assets | |
Finite-lived Intangible Assets, Weighted Average Amortization Period | 15 years 2 months 10 days |
Debt issuance costs | |
Finite-Lived Intangible Assets | |
Finite-lived Intangible Assets, Weighted Average Amortization Period | 1 year 1 month 6 days |
Customer list | |
Finite-Lived Intangible Assets | |
Finite-lived Intangible Assets, Weighted Average Amortization Period | 4 years 4 months |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Property, Plant and Equipment (Details) | 12 Months Ended |
Jul. 31, 2019 | |
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 | 2 years |
Maximum | Buildings and leasehold improvements | |
Property, Plant and Equipment | |
Estimated useful life | 40 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 | 20 years |
Maximum | Office furniture and equipment | |
Property, Plant and Equipment | |
Estimated useful life | 15 years |
Maximum | Vehicles | |
Property, Plant and Equipment | |
Estimated useful life | 15 years |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Narrative (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Short-term investments | $ 0 | $ 7,124,000 |
Maximum maturity of cash equivalents | 3 months | 3 months |
Short-term investments original maturity maximum | 1 year | 1 year |
Inventory obsolescence reserves | $ 704,000 | $ 1,136,000 |
Amortization of intangibles | 862,000 | 1,017,000 |
Indefinite-lived trademarks | 376,000 | 376,000 |
Goodwill | 9,262,000 | 9,262,000 |
Goodwill impairment | 0 | 0 |
Stripping costs | 2,430,000 | 2,849,000 |
Pre-production overburden removal costs | 0 | 0 |
Land | 13,638,000 | 13,615,000 |
Mineral rights | 2,165,000 | 2,165,000 |
Pre-production development costs | 0 | 0 |
Prepaid royalties | 1,184,000 | 1,167,000 |
Depreciation | 12,468,000 | 11,739,000 |
Interest Costs Capitalized | 0 | 176,000 |
Impairment of property, plant and equipment | 0 | 0 |
Advertising expense | 6,909,000 | 10,551,000 |
Shipping and Handling Costs | 47,717,000 | 42,542,000 |
Research and development costs | 3,202,000 | $ 3,430,000 |
Operating leases, Right-of-Use Assets | 9,222,000 | |
Operating lease liabilities | $ 10,784,000 | |
Minimum | ||
Amortization period of intangible assets (years) | 10 years | 10 years |
Maximum | ||
Amortization period of intangible assets (years) | 20 years | 20 years |
Retail and Wholesale Products | ||
Goodwill | $ 5,415,000 | |
Business to Business Products | ||
Goodwill | $ 3,847,000 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition (Details) - Payments in Advance - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Deferred Revenue Arrangement | ||
Liability for Payments in Advance | $ 259,000 | $ 96,000 |
Payments in Advance, Revenue Recognized | $ 96,000 |
OPERATING SEGMENTS Disaggregati
OPERATING SEGMENTS Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Revenue by Principal Product | ||
Net Sales | $ 277,025 | $ 266,000 |
Business to Business Products | ||
Revenue by Principal Product | ||
Net Sales | 105,877 | 105,043 |
Retail and Wholesale Products | ||
Revenue by Principal Product | ||
Net Sales | 171,148 | 160,957 |
Cat Litter | Business to Business Products | ||
Revenue by Principal Product | ||
Net Sales | 13,764 | 13,301 |
Cat Litter | Retail and Wholesale Products | ||
Revenue by Principal Product | ||
Net Sales | 135,489 | 124,635 |
Industrial and Sports | Business to Business Products | ||
Revenue by Principal Product | ||
Net Sales | 0 | 0 |
Industrial and Sports | Retail and Wholesale Products | ||
Revenue by Principal Product | ||
Net Sales | 33,341 | 34,224 |
Agricultural and Horticultural | Business to Business Products | ||
Revenue by Principal Product | ||
Net Sales | 24,311 | 23,897 |
Agricultural and Horticultural | Retail and Wholesale Products | ||
Revenue by Principal Product | ||
Net Sales | 0 | 0 |
Bleaching Clay and Fluids Purification | Business to Business Products | ||
Revenue by Principal Product | ||
Net Sales | 51,905 | 49,783 |
Bleaching Clay and Fluids Purification | Retail and Wholesale Products | ||
Revenue by Principal Product | ||
Net Sales | 2,318 | 2,098 |
Animal Health and Nutrition | Business to Business Products | ||
Revenue by Principal Product | ||
Net Sales | 15,897 | 18,062 |
Animal Health and Nutrition | Retail and Wholesale Products | ||
Revenue by Principal Product | ||
Net Sales | $ 0 | $ 0 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Segment Reporting Information | ||
Assets | $ 205,227 | $ 194,682 |
Net Sales | 277,025 | 266,000 |
Corporate Expenses | (29,659) | (26,218) |
Income from Operations | 10,412 | 15,877 |
Total Other Income (Expense), Net | 4,136 | (1,011) |
Income Before Income Taxes | 14,548 | 14,866 |
Income Taxes | (1,933) | (6,644) |
Net Income | 12,615 | 8,222 |
Net Income (Loss) Attributable to Noncontrolling Interest | 4 | (18) |
Net Income Attributable to Oil-Dri | 12,611 | 8,240 |
Business to Business Products | ||
Segment Reporting Information | ||
Assets | 65,282 | 65,143 |
Segment Net Sales | 105,877 | 105,043 |
Net Sales | 105,877 | 105,043 |
Segment Income | 31,388 | 35,120 |
Retail and Wholesale Products | ||
Segment Reporting Information | ||
Assets | 94,809 | 89,623 |
Segment Net Sales | 171,148 | 160,957 |
Net Sales | 171,148 | 160,957 |
Segment Income | 8,683 | 6,975 |
Unallocated Assets | ||
Segment Reporting Information | ||
Assets | $ 45,136 | $ 39,916 |
OPERATING SEGMENTS Financial In
OPERATING SEGMENTS Financial Information by Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Financial Information by Geographic Region | ||
Sales to unaffiliated customers | $ 277,025 | $ 266,000 |
Net Income (Loss) attributable to Oil-Dr | 12,611 | 8,240 |
Identifiable assets | 205,227 | 194,682 |
Domestic Operations | ||
Financial Information by Geographic Region | ||
Sales to unaffiliated customers | 264,476 | 254,158 |
Sales or transfers between geographic areas | 5,097 | 5,570 |
Income before income taxes | 14,280 | 14,742 |
Net Income (Loss) attributable to Oil-Dr | 12,456 | 8,249 |
Identifiable assets | 195,032 | 185,361 |
Foreign subsidiaries | ||
Financial Information by Geographic Region | ||
Sales to unaffiliated customers | 12,549 | 11,842 |
Income before income taxes | 268 | 124 |
Net Income (Loss) attributable to Oil-Dr | 155 | (9) |
Identifiable assets | $ 10,195 | $ 9,321 |
OPERATING SEGMENTS Largest Cust
OPERATING SEGMENTS Largest Customer (Details) - Customer, Walmart | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Net sales for the years ended July 31 | ||
Revenue, Major customer | ||
Concentration risk, percentage | 20.00% | 18.00% |
Net accounts receivable as of July 31 | ||
Revenue, Major customer | ||
Concentration risk, percentage | 26.00% | 26.00% |
OPERATING SEGMENTS Narrative (D
OPERATING SEGMENTS Narrative (Details) | 12 Months Ended |
Jul. 31, 2019segment | |
Segment Reporting Information | |
Number of Reportable Segments | 2 |
DEBT Notes Payable (Details)
DEBT Notes Payable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Debt Instrument | ||
Less current maturities of notes payable | $ (3,083) | $ (3,083) |
Noncurrent Notes payable | 3,052 | 6,107 |
Senior Notes Issued November 2010 | ||
Debt Instrument | ||
Notes Payable | 6,167 | 9,250 |
Less current maturities of notes payable | (3,083) | (3,083) |
Less unamortized debt issuance costs | (32) | (60) |
Noncurrent Notes payable | 3,052 | $ 6,107 |
Annual Principal Installments | $ 3,083 | |
Starting payments | Aug. 1, 2019 | |
Ending payments | Aug. 1, 2020 | |
Annual rate | 3.96% |
DEBT Maturities of Notes Payabl
DEBT Maturities of Notes Payable (Details) - Senior Notes Issued November 2010 - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 |
Notes Payable Maturities | ||
2020 | $ 3,083 | |
2021 | 3,084 | |
Notes Payable | $ 6,167 | $ 9,250 |
DEBT Debt (Narrative) (Details)
DEBT Debt (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Senior Notes Issued November 2010 | ||
Debt Instrument | ||
Face amount | $ 18,500,000 | |
Minimum overdue financial obligation considered as default | $ 5,000,000 | |
Line of Credit, BMO Harris | ||
Debt Instrument | ||
Expiration date | Jan. 31, 2024 | |
Maximum borrowing capacity | $ 45,000,000 | |
Maximum borrowing capacity for foreign letters of credit | $ 10,000,000 | |
Variable interest rate, prime based | 5.75% | |
Variable interest rate, LIBOR based | 3.52% | |
Proceeds from Lines of Credit | $ 6,000,000 | |
Repayments of Lines of Credit | $ 6,000,000 | |
Short-term Debt, Weighted Average Interest Rate, over Time | 2.96% | |
Line of credit amount outstanding | $ 0 | $ 0 |
Guarantees | 5,973,000 | |
Minimum overdue financial obligation considered as default | $ 1,000,000 |
FINANCIAL INSTRUMENTS Narrative
FINANCIAL INSTRUMENTS Narrative (Details) - USD ($) | Jul. 31, 2019 | Jul. 31, 2018 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash Equivalents, Fair Value Disclosure | $ 26,000 | $ 9,920,000 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Long-term Debt, Fair Value | $ 6,357,000 | $ 9,553,000 |
INCOME TAXES Income Tax Provisi
INCOME TAXES Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Current - Federal | $ (529) | $ 4,490 |
Current - Foreign | (5) | 57 |
Current - State | 1,416 | 149 |
Current Income Tax Total | 882 | 4,696 |
Deferred - Federal | 1,344 | 1,491 |
Deferred - Foreign | 113 | 94 |
Deferred - State | (406) | 363 |
Deferred Income Tax Total | 1,051 | 1,948 |
Total Income Tax Expense | $ 1,933 | $ 6,644 |
INCOME TAXES Income Tax Effecti
INCOME TAXES Income Tax Effective Rate Reconciliation (Details) | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
U.S. federal income tax rate | 35.00% | 21.00% | 21.00% | 26.90% |
Depletion deductions allowed for mining | (8.20%) | (10.10%) | ||
State income tax expense, net of federal tax expense | 2.50% | 2.50% | ||
Difference in effective tax rate of foreign subsidiaries | 0.20% | 0.10% | ||
Prior year income taxes | (1.90%) | 0.20% | ||
Change in federal tax rate applied to deferred tax assets and liabilities | 0.00% | 26.80% | ||
Deduction for domestic production activities | 0.00% | (1.40%) | ||
Other | (0.30%) | (0.30%) | ||
Effective income tax rate | 13.30% | 44.70% |
INCOME TAXES Components of Defe
INCOME TAXES Components of Deferred Tax Assets and Liabilities (Details) - USD ($) | Jul. 31, 2019 | Jul. 31, 2018 |
Deferred Tax Asset | ||
Depreciation | $ 0 | $ 0 |
Deferred compensation | 2,121,000 | 2,057,000 |
Postretirement benefits | 6,100,000 | 4,164,000 |
Allowance for doubtful accounts | 81,000 | 118,000 |
Deferred marketing expenses | 0 | 0 |
Other assets | 390,000 | 374,000 |
Accrued expenses | 2,076,000 | 2,131,000 |
Tax credits | 250,000 | 683,000 |
Amortization | 166,000 | 200,000 |
Inventories | 264,000 | 570,000 |
Depletion | 0 | 0 |
Stock-based compensation | 556,000 | 367,000 |
Reclamation | 392,000 | 309,000 |
Other assets - foreign | 585,000 | 755,000 |
Valuation allowance | (732,000) | (789,000) |
Total deferred tax assets | 12,249,000 | 10,939,000 |
Deferred Tax Liability | ||
Depreciation | 3,995,000 | 3,284,000 |
Deferred compensation | 0 | 0 |
Postretirement benefits | 0 | 0 |
Allowance for doubtful accounts | 0 | 0 |
Deferred marketing expenses | 326,000 | 13,000 |
Other liabilities | 0 | 0 |
Accrued expenses | 0 | 0 |
Tax credits | 0 | 0 |
Amortization | 0 | 0 |
Inventories | 0 | 0 |
Depletion | 173,000 | 293,000 |
Stock-based compensation | 0 | 0 |
Reclamation | 0 | 0 |
Other assets - foreign | 0 | 0 |
Valuation allowance | 0 | 0 |
Total deferred tax liabilities | $ 4,494,000 | $ 3,590,000 |
INCOME TAXES Narrative (Details
INCOME TAXES Narrative (Details) - USD ($) | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Jul. 31, 2018 | Jul. 31, 2019 | Jul. 31, 2018 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 21.00% | 21.00% | 26.90% |
Tax Cuts And Jobs Act of 2017 Effective Income Tax Rate Reconciliation At Federal Blended Statutory Income Tax Rate | 26.90% | |||
Tax Cuts And Jobs Act Of 2017 Provisional Income Tax Expense Related To Remeasurement Of Deferred Tax Assets | $ 3,996,000 | |||
Operating Loss Carryforwards | $ 4,000,000 | |||
Unrecognized tax benefits, liability | $ 0 | 0 | 0 | |
Unrecognized tax benefits, penalties and interest expense | 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 | |||
Deferred Tax Asset | ||||
Deferred Tax Assets, Valuation Allowance | $ 789,000 | $ 732,000 | $ 789,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME Accumulated Other Comprehensive Income (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive (Loss) Income, beginning balance | $ (10,615,000) | |
Other Comprehensive (Loss) Income | (4,424,000) | $ 1,941,000 |
Reclassification to retained earnings upon adoption of accounting standard | 0 | |
Accumulated Other Comprehensive (Loss) Income, ending balance | (15,039,000) | (10,615,000) |
Pension and Postretirement Health Benefits | ||
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive (Loss) Income, beginning balance | (10,384,000) | (10,327,000) |
Other comprehensive income (loss), before reclassifications, net of tax | (5,089,000) | 1,310,000 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 582,000 | 897,000 |
Other Comprehensive (Loss) Income | (4,507,000) | 2,207,000 |
Reclassification to retained earnings upon adoption of accounting standard | (2,264,000) | |
Accumulated Other Comprehensive (Loss) Income, ending balance | (14,891,000) | (10,384,000) |
Tax on Other comprehensive (loss) incomes, Pension and postretirement benefit Plans before reclassifications | (1,607,000) | 413,000 |
Tax on amount reclassified from AOCI, Pension and postretirement health benefits | 185,000 | 373,000 |
Cumulative Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive (Loss) Income, beginning balance | (231,000) | 35,000 |
Other comprehensive income (loss), before reclassifications, net of tax | 83,000 | (266,000) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 |
Other Comprehensive (Loss) Income | 83,000 | (266,000) |
Reclassification to retained earnings upon adoption of accounting standard | 0 | |
Accumulated Other Comprehensive (Loss) Income, ending balance | (148,000) | (231,000) |
AOCI Attributable to Parent | ||
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive (Loss) Income, beginning balance | (10,615,000) | (10,292,000) |
Other comprehensive income (loss), before reclassifications, net of tax | (5,006,000) | 1,044,000 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 582,000 | 897,000 |
Other Comprehensive (Loss) Income | (4,424,000) | 1,941,000 |
Reclassification to retained earnings upon adoption of accounting standard | (2,264,000) | |
Accumulated Other Comprehensive (Loss) Income, ending balance | $ (15,039,000) | $ (10,615,000) |
STOCK-BASED COMPENSATION (Summa
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, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Summary of Restricted Stock Activity | |||
Nonvested restricted stock outstanding, Number | 414 | 178 | 185 |
Nonvested restricted stock outstanding, Weighted Average Grant Date Fair Value | $ 33.09 | $ 32.74 | $ 30.96 |
Nonvested restricted stock outstanding, Weighted Average Remaining Contractual Term (Years) | 4 years 6 months | 1 year 8 months 23 days | 2 years 10 months |
Nonvested retricted stock outstanding, Unamortized Expense | $ 10,474 | $ 3,050 | $ 3,893 |
Granted, Number | 321 | 27 | |
Granted, Weighted Average Grant Date Fair Value | $ 32.89 | $ 42.59 | |
Vested, Number | (61) | (28) | |
Vested, Weighted Average Grant Date Fair Value | $ 31.90 | $ 29.88 | |
Forfeitures, Number | (24) | (6) | |
Forfeitures, Weighted Average Grant Date Fair Value | $ 30.85 | $ 35.90 |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Restricted Stock | ||
Share-based Compensation Award Disclosure | ||
Share-based compensation expense | $ 1,834,000 | $ 1,349,000 |
Tax benefit from compensation expense | $ 579,000 | $ 426,000 |
2006 Plan | ||
Share-based Compensation Award Disclosure | ||
Number of shares authorized | 937,500 | |
Number of shares available for grant | 74,263 | |
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 |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT BENEFITS Change in Benefit Obligation and Plan Assets, Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Pension Benefits | ||
Change in benefit obligation: | ||
Benefit obligation, beginning of year | $ 54,267 | $ 53,742 |
Service cost | 1,626 | 1,723 |
Interest cost | 2,114 | 2,022 |
Actuarial loss (gain) | 5,125 | (1,811) |
Benefits paid | (1,579) | (1,409) |
Benefit obligation, end of year | 61,553 | 54,267 |
Change in plan assets: | ||
Fair value of plan assets. beginning of year | 40,971 | 27,457 |
Actual return on plan assets | 1,333 | 1,719 |
Employer contribution | 0 | 13,204 |
Benefits paid | (1,579) | (1,409) |
Fair value of plan assets. end of year | 40,725 | 40,971 |
Funded status, recorded in Consolidated Balance Sheets | (20,828) | (13,296) |
Postretirement Health Benefits | ||
Change in benefit obligation: | ||
Benefit obligation, beginning of year | 2,667 | 2,925 |
Service cost | 105 | 106 |
Interest cost | 97 | 84 |
Actuarial loss (gain) | 97 | (363) |
Benefits paid | (8) | (85) |
Benefit obligation, end of year | 2,958 | 2,667 |
Change in plan assets: | ||
Fair value of plan assets. beginning of year | 0 | 0 |
Actual return on plan assets | 0 | 0 |
Employer contribution | 8 | 85 |
Benefits paid | (8) | (85) |
Fair value of plan assets. end of year | 0 | 0 |
Funded status, recorded in Consolidated Balance Sheets | $ (2,958) | $ (2,667) |
PENSION AND OTHER POSTRETIREM_4
PENSION AND OTHER POSTRETIREMENT BENEFITS Amounts Recognized in Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jul. 31, 2018 |
Defined Benefit Plans and Postretirement Health Benefits | ||
Other noncurrent Liabilities | $ (23,721) | $ (15,906) |
Pension Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Deferred income tax | 5,346 | 3,525 |
Other current liabilities | 0 | 0 |
Other noncurrent Liabilities | (20,828) | (13,296) |
Accumulated other comprehensive income - net of tax, Net actuarial loss | 14,731 | 10,301 |
Accumulated other comprehensive income - net of tax, Prior service cost (income) | 0 | 2 |
Postretirement Health Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Deferred income tax | 754 | 639 |
Other current liabilities | (65) | (57) |
Other noncurrent Liabilities | (2,893) | (2,610) |
Accumulated other comprehensive income - net of tax, Net actuarial loss | 184 | 110 |
Accumulated other comprehensive income - net of tax, Prior service cost (income) | $ (24) | $ (29) |
PENSION AND OTHER POSTRETIREM_5
PENSION AND OTHER POSTRETIREMENT BENEFITS Components of net periodic benefit cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Pension Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Service cost | $ 1,626 | $ 1,723 |
Interest cost | 2,114 | 2,022 |
Expected return on plan assets | (2,809) | (2,168) |
Amortization of: Prior service costs (income) | 2 | 2 |
Amortization of: Other actuarial loss | 771 | 1,274 |
Net periodic benefit cost | 1,704 | 2,853 |
Postretirement Health Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Service cost | 105 | 106 |
Interest cost | 97 | 84 |
Expected return on plan assets | 0 | 0 |
Amortization of: Prior service costs (income) | (6) | (6) |
Amortization of: Other actuarial loss | 0 | 0 |
Net periodic benefit cost | $ 196 | $ 184 |
PENSION AND OTHER POSTRETIREM_6
PENSION AND OTHER POSTRETIREMENT BENEFITS Amounts recognized in other comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Defined Benefit Plans and Postretirement Health Benefits | ||
Total recognized in other comprehensive loss (income) | $ 4,507 | $ (2,207) |
Pension Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Net actuarial loss (gain) | 5,016 | (1,034) |
Amortization of: Prior service (cost) income | (1) | (2) |
Amortization of actuarial (loss) gain | (586) | (901) |
Total recognized in other comprehensive loss (income) | 4,429 | (1,937) |
Postretirement Health Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Net actuarial loss (gain) | 73 | (276) |
Amortization of: Prior service (cost) income | 5 | 1 |
Amortization of actuarial (loss) gain | 0 | 5 |
Total recognized in other comprehensive loss (income) | $ 78 | $ (270) |
PENSION AND OTHER POSTRETIREM_7
PENSION AND OTHER POSTRETIREMENT BENEFITS Amounts to be recognized in other comprehensive income in the next fiscal year (Details) $ in Thousands | Jul. 31, 2019USD ($) |
Pension Benefits | |
Defined Benefit Plans and Postretirement Health Benefits | |
Amortization of: Net actuarial loss | $ 1,087 |
Amortization of: Prior service income | 0 |
Total to be recognized in other comprehensive loss (income) | 1,087 |
Postretirement Health Benefits | |
Defined Benefit Plans and Postretirement Health Benefits | |
Amortization of: Net actuarial loss | 0 |
Amortization of: Prior service income | (5) |
Total to be recognized in other comprehensive loss (income) | $ (5) |
PENSION AND OTHER POSTRETIREM_8
PENSION AND OTHER POSTRETIREMENT BENEFITS Estimated future benefit payments (Details) $ in Thousands | Jul. 31, 2019USD ($) |
Pension Benefits | |
Defined Benefit Plans and Postretirement Health Benefits | |
2020 | $ 1,686 |
2021 | 1,763 |
2022 | 1,864 |
2023 | 1,902 |
2024 | 2,013 |
2025-29 | 13,969 |
Postretirement Health Benefits | |
Defined Benefit Plans and Postretirement Health Benefits | |
2020 | 66 |
2021 | 98 |
2022 | 108 |
2023 | 147 |
2024 | 236 |
2025-29 | $ 1,412 |
PENSION AND OTHER POSTRETIREM_9
PENSION AND OTHER POSTRETIREMENT BENEFITS Assumptions used in calculations (Details) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Pension Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Discount rate for net periodic benefit costs | 4.04% | 3.75% |
Discount rate for year-end obligations | 3.35% | 4.04% |
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% | 7.00% |
Postretirement Health Benefits | ||
Defined Benefit Plans and Postretirement Health Benefits | ||
Discount rate for net periodic benefit costs | 3.81% | 3.26% |
Discount rate for year-end obligations | 2.93% | 3.81% |
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 POSTRETIRE_10
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, 2019USD ($) | |
Defined Benefit Plans and Postretirement Health Benefits | |
Effect of One Percentage Point Increase on total service and interest cost | $ 26 |
Effect of One Percentage Point Decrease on total service and interest cost | (22) |
Effect of One Percentage Point Increase on accumulated postretirement benefit obligation | 301 |
Effect of One Percentage Point Decrease on accumulated postretirement benefit obligation | $ (267) |
PENSION AND OTHER POSTRETIRE_11
PENSION AND OTHER POSTRETIREMENT BENEFITS Plan Assets Allocation Percentages (Details) | Jul. 31, 2019 | Jul. 31, 2018 |
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 % | 42.00% | 36.00% |
Equity | ||
Defined Benefit Plan Disclosure | ||
Target Allocation % | 60.00% | |
Actual Allocation % | 58.00% | 64.00% |
PENSION AND OTHER POSTRETIRE_12
PENSION AND OTHER POSTRETIREMENT BENEFITS Fair value level of pension plan assets (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Equity securities - international mutual funds: Developed market | |||
Defined Benefit Plan Disclosure | |||
Minimum % of Fund Assets Invested in Non-US Stocks Developed Market | 80.00% | 80.00% | |
Fixed Income: Government sponsored entities | |||
Defined Benefit Plan Disclosure | |||
Amount Backed by US Government | $ 377,000 | $ 443,000 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 40,725,000 | 40,971,000 | $ 27,457,000 |
Pension Benefits | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 6,822,000 | 9,778,000 | |
Pension Benefits | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 33,903,000 | 31,193,000 | |
Pension Benefits | Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 66,000 | 1,102,000 | |
Pension Benefits | Cash and Cash Equivalents | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 66,000 | 1,102,000 | |
Pension Benefits | Cash and Cash Equivalents | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Pension Benefits | Equity securities U.S. companies | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 13,775,000 | 14,253,000 | |
Pension Benefits | Equity securities U.S. companies | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 4,147,000 | 5,519,000 | |
Pension Benefits | Equity securities U.S. companies | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 9,628,000 | 8,734,000 | |
Pension Benefits | Equity securities International companies | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 2,609,000 | 3,157,000 | |
Pension Benefits | Equity securities International companies | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 2,609,000 | 3,157,000 | |
Pension Benefits | Equity securities International companies | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Pension Benefits | Equity securities - international mutual funds: Developed market | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 5,275,000 | 5,851,000 | |
Pension Benefits | Equity securities - international mutual funds: Developed market | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Pension Benefits | Equity securities - international mutual funds: Developed market | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 5,275,000 | 5,851,000 | |
Pension Benefits | Equity securities - international mutual funds: Emerging market | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 1,141,000 | 905,000 | |
Pension Benefits | Equity securities - international mutual funds: Emerging market | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Pension Benefits | Equity securities - international mutual funds: Emerging market | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 1,141,000 | 905,000 | |
Pension Benefits | Commodity Based Investments | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 637,000 | 687,000 | |
Pension Benefits | Commodity Based Investments | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Pension Benefits | Commodity Based Investments | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 637,000 | 687,000 | |
Pension Benefits | Fixed Income: U.S. Treasuries | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 3,273,000 | 1,929,000 | |
Pension Benefits | Fixed Income: U.S. Treasuries | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Pension Benefits | Fixed Income: U.S. Treasuries | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 3,273,000 | 1,929,000 | |
Pension Benefits | Fixed Income: Debt securities | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 8,103,000 | 8,325,000 | |
Pension Benefits | Fixed Income: Debt securities | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Pension Benefits | Fixed Income: Debt securities | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 8,103,000 | 8,325,000 | |
Pension Benefits | Fixed Income: Government sponsored entities | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 2,087,000 | 1,814,000 | |
Pension Benefits | Fixed Income: Government sponsored entities | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Pension Benefits | Fixed Income: Government sponsored entities | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 2,087,000 | 1,814,000 | |
Pension Benefits | Fixed Income: Multi-strategy bond fund [Member] | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 813,000 | ||
Pension Benefits | Fixed Income: Multi-strategy bond fund [Member] | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | ||
Pension Benefits | Fixed Income: Multi-strategy bond fund [Member] | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 813,000 | ||
Pension Benefits | Money Market Funds | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 557,000 | 1,567,000 | |
Pension Benefits | Money Market Funds | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Pension Benefits | Money Market Funds | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 557,000 | 1,567,000 | |
Pension Benefits | Other | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 2,389,000 | 1,381,000 | |
Pension Benefits | Other | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Pension Benefits | Other | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Plan Assets, Amount | $ 2,389,000 | $ 1,381,000 |
PENSION AND OTHER POSTRETIRE_13
PENSION AND OTHER POSTRETIREMENT BENEFITS Narrative (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Accumulated benefit obligation | $ 54,696,000 | $ 48,358,000 |
Defined Benefit Plan Voluntary Contribution | 11,500,000 | |
Pension plan estimated employer contributions in next fiscal year | $ 0 | |
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 Health Care Cost Trend Rate Reaches Ultimate Trend Rate | 2038 | |
401K Plan | ||
Defined Contribution Plan Disclosure | ||
Contribution to defined contribution plans | $ 764,000 | $ 782,000 |
DEFERRED COMPENSATION Deferred
DEFERRED COMPENSATION Deferred Comp and Bonus (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Deferred Compensation | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | ||
Annual Total Amount Deferred | $ 418,000 | $ 578,000 |
Deferred Compensation Interest Expense | 204,000 | 371,000 |
Deferred Compensation Payments to Participants | 1,144,000 | 6,010,000 |
Deferred Compensation Recorded Liability | 3,560,000 | 4,218,000 |
Executive Deferred Bonus | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits | ||
Deferred Compensation Arrangement with Individual, Contributions by Employer | $ 513,000 | $ 609,000 |
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, 2019 | Jul. 31, 2018 | |
SERP Disclosure | ||
SERP, benefit obligation | $ 2,708,000 | $ 2,169,000 |
SERP expense | $ 539,000 | $ 87,000 |
LEASES Future minimum rental (D
LEASES Future minimum rental (Details) $ in Thousands | Jul. 31, 2019USD ($) |
Future Minimum Rental Requirements | |
2020 | $ 2,255 |
2021 | 1,640 |
2022 | 1,513 |
2023 | 1,038 |
2024 | 899 |
Later years | $ 7,422 |
LEASES Rental Expense for all o
LEASES Rental Expense for all operating leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Total Rental Expense | ||
Rent Expense, Total | $ 2,873 | $ 3,203 |
Vehicles and Railcars | ||
Total Rental Expense | ||
Rent Expense | 1,319 | 1,404 |
Office facilities | ||
Total Rental Expense | ||
Rent Expense | 626 | 985 |
Warehouse facilities | ||
Total Rental Expense | ||
Rent Expense | 434 | 408 |
Mining properties | ||
Total Rental Expense | ||
Rent Expense, Minimum | 118 | 106 |
Rent Expense, Contingent | 301 | 208 |
Other | ||
Total Rental Expense | ||
Rent Expense | $ 75 | $ 92 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - Director - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Related Party Transaction | ||
Net sales to related party customer | $ 462,000 | $ 388,000 |
Accounts receivable due from related party customer | 10,000 | 14,000 |
Purchases from related party vendor | 271,000 | 229,000 |
Accounts payable due to related party vendor | $ 0 | $ 0 |