Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 31, 2016 | Mar. 22, 2016 | Jul. 31, 2015 | |
Document Information [Line Items] | |||
Entity Registrant Name | RAVEN INDUSTRIES INC | ||
Entity Central Index Key | 82,166 | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 36,279,928 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 724,165,854 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 |
Current assets | |||
Cash and cash equivalents | $ 33,782 | $ 51,949 | $ 52,987 |
Short-term investments | 0 | 250 | 250 |
Accounts receivable, net | 38,069 | 56,576 | 54,643 |
Inventories | 45,888 | 55,152 | 54,865 |
Deferred income taxes | 3,110 | 3,958 | 3,372 |
Other current assets | 4,884 | 3,094 | 3,288 |
Total current assets | 125,733 | 170,979 | 169,405 |
Property, plant and equipment, net | 116,162 | 117,513 | 98,076 |
Goodwill | 44,756 | 52,148 | 22,274 |
Amortizable intangible assets, net | 15,832 | 18,490 | 8,156 |
Other assets | 4,127 | 3,743 | 3,908 |
TOTAL ASSETS | 306,610 | 362,873 | 301,819 |
Current liabilities | |||
Accounts payable | 6,038 | 11,545 | 12,324 |
Accrued liabilities | 12,042 | 19,187 | 16,248 |
Customer advances | 739 | 1,111 | 1,247 |
Total current liabilities | 18,819 | 31,843 | 29,819 |
Other liabilities | $ 18,926 | $ 25,793 | $ 20,538 |
Commitments and contingencies | |||
Shareholders’ Equity | |||
Common stock, $1 par value, authorized shares 100,000; issued 67,006; 66,947; and 65,318, respectively | $ 67,006 | $ 66,947 | $ 65,318 |
Paid in capital | 54,830 | 53,237 | 10,556 |
Retained earnings | 233,156 | 244,180 | 231,029 |
Accumulated other comprehensive loss | (3,501) | (5,849) | (2,179) |
Less treasury stock at cost, 30,500; 28,897; and 28,897 shares, respectively | (82,700) | (53,362) | (53,362) |
Total Raven Industries, Inc. shareholders’ equity | 268,791 | 305,153 | 251,362 |
Noncontrolling interest | 74 | 84 | 100 |
Total shareholders’ equity | 268,865 | 305,237 | 251,462 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 306,610 | $ 362,873 | $ 301,819 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 |
Common stock, par value (in usd per share) | $ 1 | $ 1 | $ 1 |
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued | 67,006,000 | 66,947,000 | 65,318,000 |
Treasury stock, shares | 30,500,000 | 28,897,000 | 28,897,000 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Net sales | $ 258,229 | $ 378,153 | $ 394,677 |
Cost of sales | 192,444 | 274,907 | 275,323 |
Gross profit | 65,785 | 103,246 | 119,354 |
Research and development expenses | 14,686 | 17,440 | 16,576 |
Selling, general and administrative expenses | 32,594 | 42,005 | 38,784 |
Goodwill impairment loss | 7,413 | 0 | 0 |
Operating income | 11,092 | 43,801 | 63,994 |
Other (expense), net | (310) | (300) | (371) |
Income before income taxes | 10,782 | 43,501 | 63,623 |
Income taxes | 2,221 | 11,705 | 20,721 |
Net income | 8,561 | 31,796 | 42,902 |
Net income (loss) attributable to noncontrolling interest | 72 | 63 | (1) |
Net income attributable to Raven Industries, Inc. | $ 8,489 | $ 31,733 | $ 42,903 |
Net income per common share: | |||
─ Basic (in usd per share) | $ 0.23 | $ 0.86 | $ 1.18 |
─ Diluted (in usd per share) | $ 0.23 | $ 0.86 | $ 1.17 |
Comprehensive income: | |||
Net income | $ 8,561 | $ 31,796 | $ 42,902 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation | (729) | (1,466) | (424) |
Postretirement benefits, net of income tax (expense) benefit of ($1,620), $1,187, and ($183), respectively | 3,077 | (2,204) | 340 |
Other comprehensive income (loss), net of tax | 2,348 | (3,670) | (84) |
Comprehensive income | 10,909 | 28,126 | 42,818 |
Comprehensive income (loss) attributable to noncontrolling interest | 72 | 63 | (1) |
Comprehensive income attributable to Raven Industries, Inc. | $ 10,837 | $ 28,063 | $ 42,819 |
Consolidated Statements of Inc5
Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Consolidated Statements of Income [Abstract] | |||
Income tax (expense) benefit on postretirement benefits | $ (1,620) | $ 1,187 | $ (183) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Raven Industries, Inc. Equity [Member] | Noncontrolling Interest [Member] |
Total shareholders' equity, beginning balance at Jan. 31, 2013 | $ 221,447 | $ 65,223 | $ 5,885 | $ (53,362) | $ 205,695 | $ (2,095) | $ 221,346 | $ 101 |
Treasury stock, beginning balance, shares at Jan. 31, 2013 | 28,897 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 42,902 | 42,903 | 42,903 | (1) | ||||
Other comprehensive income (loss), net of income tax | (84) | (84) | (84) | |||||
Cash dividends | (17,465) | 104 | (17,569) | (17,465) | ||||
Shares issued on stock options exercised net of shares withheld for employee taxes | 165 | 95 | 70 | 165 | ||||
Share-based compensation | 4,198 | 0 | 4,198 | 4,198 | ||||
Income tax impact related to share-based compensation | $ 299 | 299 | 299 | |||||
Treasury stock, ending balance, shares at Jan. 31, 2014 | 28,897 | 28,897 | ||||||
Total shareholders' equity, ending balance at Jan. 31, 2014 | $ 251,462 | 65,318 | 10,556 | $ (53,362) | 231,029 | (2,179) | 251,362 | 100 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 31,796 | 31,733 | 31,733 | 63 | ||||
Other comprehensive income (loss), net of income tax | (3,670) | (3,670) | (3,670) | |||||
Cash dividends | (18,440) | 142 | (18,582) | (18,440) | ||||
Dividends of less than wholly-owned subsidiary paid to noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest | (79) | 0 | (79) | |||||
Stock Issued During Period, Value, Acquisitions | 39,214 | 1,542 | 37,672 | 39,214 | ||||
Director shares issued | 0 | 18 | (18) | 0 | ||||
Adj to APiC, Stock Issued, Issuance Costs related to FY15 business combination | (38) | |||||||
Shares issued on stock options exercised net of shares withheld for employee taxes | 641 | 69 | 572 | 641 | ||||
Share-based compensation | 4,213 | 0 | 4,213 | 4,213 | ||||
Income tax impact related to share-based compensation | $ 100 | 100 | 100 | |||||
Treasury stock, ending balance, shares at Jan. 31, 2015 | 28,897 | 28,897 | ||||||
Total shareholders' equity, ending balance at Jan. 31, 2015 | $ 305,237 | 66,947 | 53,237 | $ (53,362) | 244,180 | (5,849) | 305,153 | 84 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 8,561 | 8,489 | 8,489 | 72 | ||||
Other comprehensive income (loss), net of income tax | 2,348 | 2,348 | 2,348 | |||||
Cash dividends | (19,344) | 169 | (19,513) | (19,344) | ||||
Payments of Ordinary Dividends, Noncontrolling Interest | (82) | |||||||
Dividends of less than wholly-owned subsidiary paid to noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest | 0 | (82) | ||||||
Adj to APiC, Stock Issued, Issuance Costs related to FY15 business combination | (15) | (15) | (15) | |||||
Shares issued on stock options exercised net of shares withheld for employee taxes | (47) | 7 | (54) | (47) | ||||
Share issued on vesting of stock units , net of shares withheld for employee taxes | (458) | 52 | (510) | (458) | ||||
Stock Repurchased and Retired During Period, Shares | (1,603) | |||||||
Stock Repurchased and Retired During Period, Value | (29,338) | $ (29,338) | (29,338) | |||||
Share-based compensation | 2,311 | 2,311 | 2,311 | |||||
Income tax impact related to share-based compensation | $ (308) | (308) | (308) | |||||
Treasury stock, ending balance, shares at Jan. 31, 2016 | 30,500 | 30,500 | ||||||
Total shareholders' equity, ending balance at Jan. 31, 2016 | $ 268,865 | $ 67,006 | $ 54,830 | $ (82,700) | $ 233,156 | $ (3,501) | $ 268,791 | $ 74 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends per common share (in usd per share) | $ 0.52 | $ 0.50 | $ 0.48 |
Adj to APiC, Stock Issued, Issuance Costs related to FY15 business combination | $ 15 | $ 38 | |
Debt Issuance Cost | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
OPERATING ACTIVITIES: | |||
Net income | $ 8,561 | $ 31,796 | $ 42,902 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 13,951 | 14,761 | 12,449 |
Amortization of intangible assets | 3,658 | 2,608 | 1,746 |
Goodwill impairment loss | 7,413 | 0 | 0 |
Change in fair value of acquisition-related contingent consideration | (721) | 714 | 540 |
Income from equity investment | (83) | (28) | (116) |
Deferred income taxes | (3,021) | (958) | 623 |
Share-based compensation expense | 2,311 | 4,213 | 4,198 |
Change in operating assets and liabilities | 9,847 | 7,973 | (10,449) |
Other operating activities, net | 2,092 | (996) | 943 |
Net cash provided by operating activities | 44,008 | 60,083 | 52,836 |
INVESTING ACTIVITIES: | |||
Capital expenditures | (13,046) | (17,041) | (30,701) |
Proceeds (payments) related to business acquisitions | 351 | (12,472) | 0 |
Proceeds from sale of short-term investments | 250 | 500 | 0 |
Purchases of investments | (250) | (750) | (250) |
Proceeds from sale of assets | 2,124 | 0 | 0 |
Other investing activities, net | (503) | (223) | (664) |
Net cash used in investing activities | (11,074) | (29,986) | (31,615) |
FINANCING ACTIVITIES: | |||
Dividends paid | (19,426) | (18,519) | (17,465) |
Payments for common shares repurchased | (29,338) | 0 | 0 |
Additional borrowings | 0 | 2,127 | 0 |
Payment of revolving line of credit and acquisition-related debt | 0 | (14,116) | 0 |
Payment of acquisition-related contingent liabilities | (814) | (533) | (353) |
Debt issuance costs paid | (548) | 0 | 0 |
Restricted stock units vested and issued | (458) | 0 | 0 |
Employee stock option exercises net of tax benefit | (85) | 702 | 464 |
Other financing activities, net | (15) | (326) | 0 |
Net cash used in financing activities | (50,684) | (30,665) | (17,354) |
Effect of exchange rate changes on cash | (417) | (470) | (233) |
Net (decrease) increase in cash and cash equivalents | (18,167) | (1,038) | 3,634 |
Cash and cash equivalents at beginning of year | 51,949 | 52,987 | 49,353 |
Cash and cash equivalents at end of year | $ 33,782 | $ 51,949 | $ 52,987 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation Raven Industries, Inc. (the Company or Raven) is a diversified technology company providing a variety of products to customers within the industrial, agricultural, energy, construction, and defense markets. The Company conducts this business through the following direct and indirect subsidiaries: Aerostar International, Inc. (Aerostar); Vista Research, Inc. (Vista); Raven International Holding Company BV (Raven Holdings); Raven Industries Canada, Inc. (Raven Canada); SBG Innovatie BV; Navtronics BVBA; Raven Industries GmbH (Raven GmbH); Raven Industries Australia Pty Ltd (Raven Australia) and Raven Do Brazil Participacoes E Servicos Technicos LTDA (Raven Brazil). The Company and these subsidiaries comprise three unique operating units, or divisions, classified into reportable segments (Applied Technology, Engineered Films, and Aerostar). The consolidated financial statements for the periods included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned or controlled subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Noncontrolling Interest Noncontrolling interests represent capital contributions, income and loss attributable to the owners of less than wholly-owned and consolidated entities. The Company owns 75% of a business venture to pursue potential product and support services contracts for agencies and instrumentalities of the United States government. The business venture, Aerostar Integrated Systems (AIS), is included in the Aerostar business segment. No capital contributions were made by the noncontrolling interest since the initial capitalization in fiscal year 2013 . Given the Company's majority ownership interest, the accounts of the business venture have been consolidated with the accounts of the Company, and a noncontrolling interest has been recorded for the noncontrolling investor's interests in the net assets and operations of the business venture. Investments in Affiliate The Company owns an interest of approximately 22% in Site-Specific Technology Development Group, Inc. (SST). The Company has significant influence, but neither a controlling interest nor a majority interest in the risks or rewards of SST and as such, this affiliate investment is accounted for using the equity method. The investment balance is included in “Other assets” while the Company's share of the SST’s results of operations is included in “Other income (expense), net.” The Company considers whether the value of any of its equity method investments has been impaired whenever adverse events or changes in circumstances indicate that recorded values may not be recoverable. If the Company considered any such decline to be other than temporary (based on various factors, including historical financial results, product development activities, and the overall health of the affiliate's industry), an impairment loss would be recorded. Use of Estimates Preparing the financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make certain estimates and assumptions. These affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company's forecasts, based principally on estimates, are critical inputs to asset valuations such as those for inventory or goodwill. These assumptions and estimates require significant judgment and actual results could differ from assumed and estimated amounts. Foreign Currency The Company's subsidiaries that operate outside the United States use the local currency as their functional currency. The functional currency is translated into U.S. dollars for balance sheet accounts using the period-end exchange rates and average exchange rates for the statement of income and comprehensive income. Adjustments resulting from financial statement translations are included as foreign currency translation adjustments in “Accumulated other comprehensive income (loss)” within shareholders' equity. Foreign currency transaction gains or losses are recognized in the period incurred and are included in “Other income (expense), net” in the Consolidated Statements of Income and Comprehensive Income. Foreign currency transaction gains or losses on intercompany notes receivable and notes payable denominated in foreign currencies for which settlement is not planned in the foreseeable future are considered part the net investment and are reported in the same manner as foreign currency translation adjustments. Cash and Cash Equivalents The Company considers all highly liquid instruments with original maturities of three or fewer months to be cash equivalents. Cash and cash equivalent balances are principally concentrated in checking, money market, and savings accounts. Certificates of deposit that mature in over 90 days but less than one year are considered short-term investments. Certificates of deposit that mature in one year or more are considered to be other long-term assets and are carried at cost. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount, do not bear interest, and are considered past due based on invoice terms. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses. This is based on historical write-off experience by segment and an estimate of the collectability of any known problem accounts. Unbilled receivables arise when revenues have been earned, but not billed, and are related to differences in timing. Unbilled receivables were not material as of January 31, 2016, 2015, or 2014 . Inventory Valuation Inventories are carried at the lower of cost or market, with cost determined on the first-in, first-out basis. Market value encompasses consideration of all business factors including expected future sales, price, contract terms, and usefulness. Pre-Contract Costs From time to time, the Company incurs costs to begin fulfilling the statement of work under a specific anticipated contract still being negotiated with the customer. If the Company determines that it is probable it will be awarded the specific anticipated contract, the pre-contract costs incurred, excluding start-up costs which are expensed as incurred, are deferred to the balance sheet and included in "Inventories". Deferred pre-contract costs are periodically reviewed and assessed for recoverability under the contract based on the Company’s assessment of the nature of the costs, the probability and timing of the award, and other relevant facts and circumstances. Write-offs of pre-contract costs are charged to cost of sales when it becomes probable that such costs will not be recoverable. The Company recorded a charge of $2,933 for the write-off of pre-contract costs specific to one international contract that was not awarded to Vista in the third quarter of fiscal 2016. No deferred pre-contract costs were written-off in the periods ended January 31, 2015 or 2014. No pre-contract costs were included in "Inventories" at January 31, 2016 or January 31, 2015. Property, Plant and Equipment Property, plant and equipment held for use is carried at the asset's cost and depreciated over the estimated useful life of the asset. With the prospective adoption of the straight-line method of depreciation for manufacturing equipment, office equipment, and furniture and fixtures placed in service on or after February 1, 2015, the Company no longer primarily uses accelerated methods of computing depreciation. This change was made as a straight-line method of depreciation more accurately reflects the economic consumption of these assets than did the accelerated method previously used. This prospective change in the depreciation method did not have a material effect on the Company’s financial position or results of operations for the fiscal year ended January 31, 2016. The estimated useful lives used for computing depreciation are as follows: Building and improvements 15 - 39 years Manufacturing equipment by segment Applied Technology 3 - 5 years Engineered Films 5 - 12 years Aerostar 3 - 5 years Furniture, fixtures, office equipment, and other 3 - 7 years The cost of maintenance and repairs is charged to expense in the period incurred, and renewals and betterments are capitalized. The cost and related accumulated depreciation of assets sold or disposed are removed from the accounts and the resulting gain or loss is reflected in operations. The Company capitalizes certain internal costs incurred in connection with developing or obtaining internal-use software in accordance with the accounting guidance for such costs. There were no capitalized software costs in fiscal year 2016 or 2015 and capitalized software costs totaled $203 in fiscal 2014 . The costs are included in “Property, plant and equipment, net” on the Consolidated Balance Sheets. Software costs that do not meet capitalization criteria are expensed as incurred. Amortization expense related to capitalized software is computed on the straight-line basis over the estimated lives ranging from 3 to 5 years and is included in depreciation expense. Fair Value Measurements Fair value is defined as an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company uses the established fair value hierarchy, which classifies or prioritizes the inputs used in measuring fair value. These classifications include: Level 1 - Observable inputs such as quoted prices in active markets; Level 2 - Inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3 - Unobservable inputs in which little or no market data exists, therefore, requiring an entity to develop its own assumptions. The Company's financial assets required to be measured at fair value on a recurring basis include cash and cash equivalents and short-term investments. The Company determines fair value of its cash equivalents and short-term investments through quoted market prices. The Company's goodwill and long-lived assets, including intangible assets subject to amortization, are measured at fair value on a non-recurring basis. These valuations are derived from valuation techniques in which one or more significant inputs are not observable. Our accounting policy and methodology for assessing impairment of these assets is further described below and in the Critical Accounting Estimates section of the Management's Discussion and Analysis in Part 7 of this Annual Report on Form 10-K (Form 10-K). For all acquisitions, the Company is required to measure the fair value of the net identifiable tangible and intangible assets acquired. In addition, the Company determines the estimated fair value of contingent consideration as of the acquisition date, and subsequently at the end of each reporting period. These valuations are derived from valuation techniques in which one or more significant inputs are not observable. Fair value measurements associated with acquisitions, including acquisition-related contingent liabilities, are described in Note 5 Acquisition of and Investments in Businesses and Technologies. Intangible Assets Intangible assets, primarily comprised of technologies acquired through acquisition, are recorded at cost and are presented net of accumulated amortization. Amortization is computed using an amortization method that best approximates the pattern of economic benefits which the asset provides. The Company has used both the straight-line method and the undiscounted cash flows method to appropriately allocate the cost of intangible assets to earnings in each reporting period. The straight-line method allocates the cost of such intangible assets ratably over the asset’s life. Under the undiscounted cash flow method, the estimated cash flow attributable to each year of an intangible asset’s life is calculated as a percentage of the total of the cash flows over the asset’s life and that percentage is applied to the initial value of the asset to determine the annual amortization to be recorded. The estimated useful lives of the Company’s intangible assets range from 3 to 20 years. Goodwill The Company recognizes goodwill as the excess cost of an acquired business over the net amount assigned to assets acquired and liabilities assumed. Acquisition earn-out payments are accrued at fair value as of the purchase date and payments reduce the accrual without affecting goodwill. Any change in the fair value of the contingent consideration after the acquisition date is recognized in the Consolidated Statements of Income and Comprehensive Income. Goodwill is tested for impairment on an annual basis during the fourth quarter and between annual tests whenever a triggering event indicates there may be an impairment. Impairment tests of goodwill are performed at the reporting unit level. A qualitative impairment assessment over relevant events and circumstances may be assessed to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If events and circumstances indicate the fair value of a reporting unit may be less than its carrying value, then the fair values are estimated based on discounted cash flows and are compared with the corresponding carrying value of the reporting unit. If the fair value of the reporting unit is less than the carrying amount, the amount of the impairment loss must be measured and then recognized to the extent the carrying value of the goodwill exceeds the implied fair value. When performing goodwill impairment testing, the fair values of reporting units are determined based on valuation techniques using the best available information, primarily discounted cash flow projections. Such valuations are derived from valuation techniques in which one or more significant inputs are not observable (Level 3 fair value measures). Long-Lived Assets The Company periodically assesses the recoverability of long-lived and intangible assets. An impairment loss is recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows used in determining the fair value of the assets. The amount of the impairment loss to be recorded is the excess of the carrying value of the asset over its fair value. Long-lived assets determined to be held for sale and classified as such in accordance with the applicable guidance are reported as long-term assets at the lower of the asset's carrying amount or fair value less the estimated cost to sell. Depreciation is not recorded once a long-lived asset has been classified as held for sale. Acquisition-Related Contingent Consideration Acquisition-related contingent consideration represents an obligation of the Company to transfer additional assets or equity interests if specified future events occur or conditions are met. This contingency is accounted for at fair value either as a liability or equity depending on the terms of the acquisition agreement. The Company determines the estimated fair value of contingent consideration as of the acquisition date, and subsequently at the end of each reporting period. In doing so, the Company makes significant estimates and assumptions regarding future events or conditions being achieved under the subject contingent agreement as well as the appropriate discount rate to apply. Such valuations are derived from valuation techniques in which one or more significant inputs are not observable (Level 3 fair value measures). Insurance Obligations The Company utilizes insurance policies to cover workers' compensation and general liability costs. Liabilities are accrued related to claims filed and estimates for claims incurred but not reported. To the extent these obligations are expected to be reimbursed by insurance, the probable insurance policy benefit is included as a component of “Other current assets.” Contingencies The Company is involved as a defendant in lawsuits, claims, regulatory inquiries, or disputes arising in the normal course of business. While the ultimate settlement of these claims cannot be easily estimated, management believes that any liability resulting from these claims will, in many cases, be substantially covered by insurance. Management does not believe that the ultimate outcome of any pending matters will be material to its results of operations, financial position, or cash flows. The Company also has contingencies related to potential asset impairments or contingent liabilities. An estimate of the loss on these matters is charged to operations when it is probable that an asset has been impaired or a liability has been incurred, and the amount of the loss can be reasonably estimated. Management does not believe any such contingent asset impairment or liability will be material to its results of operations, financial position, or cash flows. Revenue Recognition The Company recognizes revenue when it is realized or realizable and has been earned. Revenue is recognized when there is persuasive evidence of an arrangement, the sales price is determinable, collectability is reasonably assured, and shipment or delivery has occurred (depending on the terms of the sale). The Company sells directly to customers or distributors who incur the expense and commitment for any post-sale obligations beyond stated warranty terms. Estimated returns, sales allowances, or warranty charges are recognized upon shipment of a product. For certain service-related contracts, the Company recognizes revenue under the percentage-of-completion method of accounting, whereby contract revenues are recognized on a pro-rata basis based upon the ratio of costs incurred compared to total estimated contract costs. Contract costs include labor, material, subcontracting costs, as well as allocation of indirect costs. Revenues including estimated profits are recorded as costs are incurred. Losses estimated to be incurred upon completion of contracts are charged to operations when they become known. Certain contracts contain provisions for incentive payments that the Company may receive based on performance criteria related to product design, development and production standards. Revenue related to the incentive payments is recognized when ultimate realization by the Company is assured, which generally occurs when the provisions and performance criteria required by the contract are met. Operating Expenses The primary types of operating expenses are classified in the income statement as follows: Cost of sales Research and development expenses Selling, general and administrative expenses Direct material costs Material acquisition and handling costs Direct labor Factory overhead including depreciation and amortization Inventory obsolescence Product warranties Shipping and handling cost Personnel costs Professional service fees Material and supplies Facility allocation Personnel costs Professional service fees Advertising Promotions Information technology equipment depreciation Office supplies Facility allocation The Company's research and development expenditures consist primarily of internal direct and indirect costs associated with development of technologies to support its proprietary product lines in each of its divisions. These research and development costs are expensed as incurred. The Company's gross margins may not be comparable to industry peers due to variability in the classification of these expenses across the industries in which the Company operates. Warranties Accruals necessary for product warranties are estimated based on historical warranty costs and average time elapsed between purchases and returns for each division. Additional accruals are made for any significant, discrete warranty issues. Share-Based Compensation The Company records compensation expense related to its share-based compensation plans using the fair value method. Under this method, the fair value of share-based compensation is determined as of the grant date and the related expense is recorded over the period in which the share-based compensation vests. Income Taxes Deferred income taxes reflect future tax effects of temporary differences between the tax and financial reporting basis of the Company's assets and liabilities measured using enacted tax laws and statutory tax rates applicable to the periods when the temporary differences will affect taxable income. When necessary, deferred tax assets are reduced by a valuation allowance to reflect realizable value. Accruals are maintained for uncertain tax positions. Accounting Pronouncements Accounting Standards Adopted In April 2015 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-04, "Compensation—Retirement Benefits (Topic 715) Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets" (ASU 2015-04). The amendments in ASU 2015-04 allow a reporting entity that may incur more costs than other entities when measuring the fair value of plan assets of a defined benefit pension or other postretirement benefit plan at other than a month-end to measure defined benefit plan assets and obligations using the month-end date that is closest to the date of event (such as a plan amendment, settlement, or curtailment that calls for a remeasurement in accordance with existing requirements) that is triggering the remeasurement. In addition, if a contribution or significant event occurs between the month-end date used to measure defined benefit plan assets and obligations and an entity’s fiscal year-end, the entity should adjust the measurement of defined benefit plan assets and obligations to reflect the effects of those contributions or significant events. However, an entity should not adjust the measurement of defined benefit plan assets and obligations for other events that occur between the month-end measurement and the entity’s fiscal year-end that are not caused by the entity (for example, changes in market prices or interest rates). This practical expedient for the measurement date also applies to significant events that trigger a remeasurement in an interim period. An entity electing the practical expedient for the measurement date is required to disclose the accounting policy election and the date used to measure defined benefit plan assets and obligations in accordance with the amendments in ASU 2015-04. ASU 2015-04 is effective for fiscal years beginning after December 15, 2015. The Company may adopt the standard prospectively. Early adoption is permitted. In the fiscal 2016 first quarter the Company elected to early adopt ASU 2015-04 and apply it on a prospective basis. The Company's plan that provides postretirement medical and other benefits was amended on August 25, 2015. As a result of this plan amendment, the Company elected the practical expedient pursuant to this guidance and a valuation was completed using an August 31, 2015 measurement date. In April 2015 the FASB issued ASU No. 2015-03, "Interest—Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs" (ASU 2015-03). The amendments in ASU 2015-03 simplify the presentation of debt issuance costs and require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. In August 2015 the FASB issued ASU No. 2015-15 "Interest—Imputation of Interest (Subtopic 835-30) Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements" (ASU 2015-15). The guidance in ASU 2015-03 does not address presentation or subsequent measurement of debt issuance costs related to line of credit arrangements. Given the absence of authoritative guidance, in ASU 2015-15, FASB adopted SEC staff comments that they would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangement. ASU 2015-03 and 2015-15 are both effective for fiscal years beginning after December 15, 2015. The amendments are required to be applied retrospectively to all prior periods presented and early adoption is permitted. The Company elected to early adopt ASU 2015-03 in fiscal 2016 first quarter and ASU 2015-15 in fiscal 2016 third quarter. Adoption of this guidance did not have a significant impact on the Company's consolidated financial statements, or results of operations for the period since there were no prior period costs it applied to. Debt issuance costs associated with the credit facility discussed further in Note 10 Financing Arrangements have been presented as an asset and are being amortized ratably over the term of the line of credit arrangement. In April 2014 the FASB issued ASU No. 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" (ASU No. 2014-08). ASU No. 2014-08 changes the criteria for determining which disposals should be presented as discontinued operations and modifies the related disclosure requirements. Additionally, this guidance requires that a business that qualifies as held for sale upon acquisition should be reported as discontinued operations. This guidance became effective for the Company on February 1, 2015 and applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The adoption of this guidance did not have an impact on the Company's consolidated financial statements, results of operations, or disclosures. In addition to the accounting pronouncements adopted and described above, the Company adopted various other accounting pronouncements that became effective in fiscal 2016. None of this guidance had a significant impact on the Company's consolidated financial statements, results of operations, or disclosures for the period. New Accounting Standards Not Yet Adopted In February 2016 the FASB issued ASU No. 2016-02, "Leases (Topic 842)" (ASU 2016-02). The primary difference between previous GAAP and ASU 2016-02 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The guidance requires a lessee to recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. When measuring assets and liabilities arising from a lease, a lessee (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Similarly, optional payments to purchase the underlying asset should be included in the measurement of lease assets and lease liabilities only if the lessee is reasonably certain to exercise that purchase option. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018. Lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial statements, results of operations, and disclosures. In January of 2016, the FASB issued ASU No. 2016-01, " Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. " The updated accounting guidance requires changes to the reporting model for financial instruments. The amendments in this guidance supersede the guidance to classify equity securities with readily determinable fair values into different categories (that is, trading or available-for sale) and require equity securities (including other ownership interests, such as partnerships, unincorporated joint ventures, and limited liability companies to be measured at fair value with changes in the fair value recognized through net income. An entity’s equity investments that are accounted for under the equity method of accounting or result in consolidation of an investee are not included within the scope of this update. The amendments also require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or in the accompanying notes to the financial statements. This guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early application guidance is provided by the update but except as discussed in the guidance, early adoption is not permitted. The Company is currently evaluating the effect the updated guidance will have on the Company's financial statements, results of operations, and disclosures. In November 2015 the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes" (ASU 2015-17). Current GAAP requires the deferred taxes for each jurisdiction (or tax-paying component of a jurisdiction) to be presented as a net current asset or liability and net noncurren t asset or liability. This requires a jurisdiction-by-jurisdiction analysis based on the classification of the assets and liabilities to which the underlying temporary differences relate, or, in the case of loss or credit carryforwards, based on the period in which the attribute is expected to be realized. Any valuation allowance is then required to be allocated on a pro rata basis, by jurisdiction, between current and noncurrent deferred tax assets. To simplify presentation, ASU 2015-17 requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. As a result, each jurisdiction will now only have one net noncurrent deferred tax asset or liability. The guidance does not change the existing requirement that only permits offsetting within a jurisdiction - that is, companies are still prohibited from offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016. The Company may apply the standard either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early adoption is permitted. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial statements and working capital. In September 2015 the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805) Simplifying |
Selected Balance Sheet Informat
Selected Balance Sheet Information | 12 Months Ended |
Jan. 31, 2016 | |
Selected Balance Sheet Information [Abstract] | |
Selected Balance Sheet Information | NOTE 2 SELECTED BALANCE SHEET INFORMATION Following are the components of selected balance sheet items: As of January 31, 2016 2015 2014 Accounts receivable, net: Trade accounts $ 39,103 $ 56,895 $ 54,962 Allowance for doubtful accounts (1,034 ) (319 ) (319 ) $ 38,069 $ 56,576 $ 54,643 Inventories: Finished goods $ 4,896 $ 8,127 $ 7,232 In process 1,845 1,317 2,131 Materials 39,147 45,708 45,502 $ 45,888 $ 55,152 $ 54,865 Other current assets: Insurance policy benefit $ 716 $ 733 $ 733 Federal income tax receivable 2,176 713 1,197 Prepaid expenses and other 1,992 1,648 1,358 $ 4,884 $ 3,094 $ 3,288 Property, plant and equipment, net: Held for use: Land $ 3,054 $ 3,246 $ 2,077 Buildings and improvements 77,827 78,140 66,278 Machinery and equipment 140,995 131,766 114,345 Accumulated depreciation (106,514 ) (96,545 ) (84,624 ) $ 115,362 $ 116,607 $ 98,076 Held for sale: Land $ 244 $ 11 $ — Buildings and improvements 1,595 1,522 — Machinery and equipment 329 — — Accumulated depreciation (1,368 ) (627 ) — 800 906 — $ 116,162 $ 117,513 $ 98,076 Other assets: Investment in affiliate $ 2,805 $ 3,217 $ 3,684 Other 1,322 526 224 $ 4,127 $ 3,743 $ 3,908 Accrued liabilities: Salaries and related $ 1,883 $ 4,063 $ 2,210 Benefits 3,864 5,001 5,538 Insurance obligations 1,730 1,590 1,598 Warranties 1,835 3,120 2,525 Income taxes 475 536 362 Other taxes 1,117 1,240 1,097 Acquisition-related contingent consideration 407 1,375 890 Other 731 2,262 2,028 $ 12,042 $ 19,187 $ 16,248 Other liabilities: Postretirement benefits $ 7,662 $ 11,812 $ 7,998 Acquisition-related contingent consideration 2,499 3,631 2,457 Deferred income taxes 5,426 7,091 3,526 Uncertain tax positions 3,339 3,259 6,557 $ 18,926 $ 25,793 $ 20,538 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Jan. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | NOTE 3 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Other comprehensive income refers to revenue, expenses, gains, and losses that under GAAP are recorded as an element of shareholders' equity but are excluded from net income. The changes in the components of accumulated other comprehensive income (loss) (AOCI) are shown below: Cumulative foreign currency translation adjustment Postretirement benefits Total Balance at January 31, 2013 $ 142 $ (2,237 ) $ (2,095 ) Other comprehensive (loss) before reclassifications (424 ) — (424 ) Amounts reclassified from accumulated other comprehensive (loss) after tax expense of ($183) — 340 340 Balance at January 31, 2014 (282 ) (1,897 ) (2,179 ) Other comprehensive (loss) before reclassifications (1,466 ) — (1,466 ) Amounts reclassified from accumulated other comprehensive (loss) after tax benefit of $1,187 — (2,204 ) (2,204 ) Balance at January 31, 2015 (1,748 ) (4,101 ) (5,849 ) Other comprehensive (loss) before reclassifications (729 ) — (729 ) Amounts reclassified from accumulated other comprehensive (loss) after tax expense of ($1,620) — 3,077 3,077 Balance at January 31, 2016 $ (2,477 ) $ (1,024 ) $ (3,501 ) Postretirement benefit cost components are reclassified in their entirety from AOCI to net periodic benefit cost. Net periodic benefit costs are reported in net income as “Cost of sales” or “Selling, general and administrative expenses” in a manner consistent with the classification of direct labor and personnel costs of the eligible employees. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Jan. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | NOTE 4 SUPPLEMENTAL CASH FLOW INFORMATION For the years ended January 31, 2016 2015 2014 Changes in operating assets and liabilities: Accounts receivable $ 16,847 $ 4,699 $ 1,297 Inventories 7,516 6,753 (9,190 ) Prepaid expenses and other assets (111 ) 195 (239 ) Accounts payable (5,059 ) (3,578 ) (994 ) Accrued and other liabilities (8,978 ) 48 (1,150 ) Customer advances (368 ) (144 ) (173 ) $ 9,847 $ 7,973 $ (10,449 ) Supplemental disclosures of cash flow information: Cash paid during the year for income taxes $ 6,558 $ 14,011 $ 20,002 Interest paid $ 129 $ 160 $ — Significant non-cash transactions: Issuance of common stock for business acquisition $ — $ 39,252 $ — Capital expenditures included in accounts payable $ 161 $ 564 $ 1,083 Capital expenditures converted from inventory $ 1,036 $ 491 $ 418 |
Acquisitions of and Investments
Acquisitions of and Investments in Businesses and Technologies | 12 Months Ended |
Jan. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions of and Investments in Businesses and Technologies | NOTE 5 ACQUISITIONS OF AND INVESTMENTS IN BUSINESSES AND TECHNOLOGIES Integra On November 3, 2014 the Company acquired all of the issued and outstanding shares of Integra Plastics, Inc. (Integra). Integra, which was a privately-held company headquartered in Madison, South Dakota, specialized in the manufacture and conversion of high-quality plastic film and sheeting. This acquisition expanded Raven's Engineered Films Division's production capacity with additional extrusion and lamination operations in Brandon, South Dakota and fabrication locations in Madison, South Dakota and Midland, Texas, as well as broadened Engineered Films' product offerings and enhanced its converting capabilities. Integra's results of operations subsequent to acquisition are included in the Engineered Films segment. At the acquisition date, the total purchase price was valued at approximately $48,200 net of an estimated working capital adjustment included in the terms of the merger and acquisition agreement. These terms provided for payment through the issuance of 1,541,696 shares of the Company's common stock valued at $39,252 , based on the closing stock price on the date of acquisition and cash payments of $9,361 . The Company received $351 in settlement of the working capital adjustment to the purchase price and finalized deferred tax calculations in fiscal 2016 first quarter. These transactions resulted in an adjustment of about $20 to the purchase price allocation. The fair value of the business acquired was allocated to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value acquired over the identifiable assets acquired and liabilities assumed is reflected as goodwill. The fair value of the goodwill recorded as part of the purchase price allocation was $27,422 . None of this goodwill is tax deductible. Goodwill resulting from this business combination is largely attributable to the experienced workforce of the acquired business and synergies expected to arise after integration of Integra products and operations into Engineered Films. Identifiable intangible assets acquired as part of the acquisition included definite-lived intangibles for customer relationships and other intangibles valued at $10,000 and $200 , respectively. These intangible assets are being amortized using the straight-line method over their estimated useful life as follows: customer relationships - twelve years and other intangibles - two years. Liabilities assumed from Integra included a revolving line of credit and long-term notes with Wells Fargo Bank N.A. (Wells Fargo). The Company has a related party relationship with Wells Fargo described in Note 10 Financing Arrangements . This debt was repaid by the Company in fiscal 2015 and there was no debt outstanding at January 31, 2015. The purchase price was finalized in the fiscal 2016 first quarter after the working capital adjustment was settled. The total purchase price allocated to the estimated fair values of assets acquired and liabilities assumed as follows: Cash $ 1,600 Accounts receivable 4,808 Inventory 7,575 Deferred income taxes 543 Other current assets 24 Property, plant and equipment, net 17,088 Goodwill 27,422 Customer relationships and other definite-lived intangibles 10,200 Short-term and long-term debt (11,341 ) Current liabilities (4,084 ) Other liabilities (5,573 ) Total purchase price $ 48,262 Integra net sales and net loss recognized in fiscal 2015 from the acquisition date to January 31, 2015 were $5,627 and $(874) , respectively. The operations of Integra were fully integrated into Engineered Films’ existing operations at the beginning of fiscal year 2016. The Company does not manage such operations or report these results separate and apart from the Engineered Films segment. SBG On May 1, 2014 , the Company completed the purchase of all issued and outstanding shares of SBG Innovatie BV and its affiliate, Navtronics BVBA (collectively, SBG). SBG has operations in the Netherlands just outside of Amsterdam and at Navtronics in Geel, Belgium. The acquisition broadened Applied Technology Division’s guided steering system product line by adding high-accuracy implement steering applications. Additionally, SBG’s headquarters have become the home office for Raven in Europe, expanding the Company’s global presence and reach into key European markets. In connection with the purchase, the Company paid $5,000 and agreed to pay up to $2,500 in additional earn-out payments calculated using the undiscounted cash flows and paid quarterly over the next 10 years contingent upon achieving certain revenues. Projecting discounted future cash flows requires the Company to make significant estimates and assumptions regarding future revenues under the subject contingent agreement and the appropriate discount rate. Such valuations techniques include one or more significant inputs that are not observable (Level 3 fair value measures). At January 31, 2016, the fair value of this contingent consideration was $1,499 of which $249 was classified as "Accrued liabilities" and $1,250 was classified as "Other liabilities". The fair value of this contingent consideration at January 31, 2015 was $1,432 , of which $236 was classified as "Accrued liabilities" and $1,196 was classified as "Other liabilities." The Company has paid a total of $308 of this potential earn-out liability including $229 and $79 in earn-out payments during fiscal 2016 and 2015 , respectively. The fair value of the business acquired was allocated to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value acquired over the identifiable assets acquired and liabilities assumed is reflected as goodwill. Goodwill recorded as part of the purchase price allocation was $3,250 , none of which is tax deductible. Identifiable intangible assets acquired as part of the acquisition were $2,104 , and included definite-lived intangibles, such as customer relationships and proprietary technology. Amortization is being computed over the estimated useful life using the undiscounted cash flows method as follows: twelve years for customer relationships and five years for proprietary technology. Liabilities acquired included debts to the former owners, a long-term note with a third-party bank, and deferred income taxes. As further described in Note 10 Financing Arrangements, this debt was repaid by the Company and there was no debt outstanding at January 31, 2015. SBG net sales and net income recognized in fiscal 2015 from the acquisition date to January 31, 2015 were $3,245 and $152 , respectively. The operations of SBG were integrated into the existing operations of the Applied Technology Division at the beginning of fiscal year 2016. The following pro forma consolidated condensed financial results of operations are presented as if the fiscal year 2015 acquisitions described above had been completed at the beginning of the period presented (unaudited): (Unaudited) For the year ended January 31, 2015 2014 Net sales $ 408,906 $ 431,917 Net income attributable to Raven Industries, Inc. 34,424 45,747 Earnings per common share: Basic $ 0.90 $ 1.20 Diluted $ 0.90 $ 1.20 These unaudited pro forma consolidated financial results have been prepared for comparative purposes only and include certain adjustments, such as amortization and acquisition cost. The pro forma information does not purport to be indicative of the results of operations that actually would have resulted had these business combinations occurred at the beginning of each period presented, or of future results of the consolidated entities. Acquisition-related contingent consideration In addition to the contingent consideration related to the acquisition of SBG, the Company has contingent liabilities related to prior year acquisitions. Related to the acquisition of Vista in 2012 , the Company is committed to make annual payments based upon earn-out percentages on specific revenue streams for seven years after the purchase date, not to exceed $15,000 . Projecting discounted future cash flows requires the Company to make significant estimates and assumptions regarding future revenues under the subject contingent agreement and the appropriate discount rate. Such valuations techniques include one or more significant inputs that are not observable (Level 3 fair value measures). As a result of the triggering event that occurred in fiscal 2016 third quarter described in Note 6 Goodwill and Other Intangibles , the Company performed both a Step 1 and Step 2 impairment analysis for the Vista reporting unit. The results of these analyses are also more fully described in Note 6 Goodwill and Other Intangibles . Prior to performing the Step 2 analysis, the Company evaluated the fair value of the remaining assets and liabilities including acquisition-related contingent consideration. This analysis included a reduction of $1,483 in the fair value of this contingent consideration. This benefit was recognized in "Cost of sales" in the Consolidated Statements of Income and Comprehensive Income for the three-month period ended October 31, 2015 and the twelve-month period ended January 31, 2016. The fair value of these contingent considerations at January 31, 2016 was $1,327 , of which $78 was classified in "Accrued liabilities" and $1,249 as "Other liabilities" in the Consolidated Balance Sheet. At January 31, 2015 , the fair value of the contingent consideration for the Vista acquisition was $2,989 of which $ 554 was classified in "Accrued liabilities" and $2,435 as "Other liabilities" in the Consolidated Balance Sheet. At January 31, 2014 , the fair value of the contingent consideration for the Vista acquisition was $3,347 , of which $890 was classified in “Accrued liabilities” and $2,457 as “Other liabilities” in the Consolidated Balance Sheet. These fair values were estimated using forecasted discounted cash flows. The Company has paid a total of $1,392 of this potential earn-out liability including $585 , $454 , and $353 in earn-out payments in fiscal year 2016 , 2015 , and 2014 , respectively. Equity Method Investment SST The Company’s owned interest of approximately 22% in SST is accounted for using the equity method. SST is a privately-held agricultural software development and information services provider. Raven and SST are strategically aligned to provide customers with simple, more efficient ways to move and manage data in the precision agriculture market. Changes in the net carrying value of the investment in SST were as follows: As of January 31, 2016 2015 2014 Balance at beginning of year $ 3,217 $ 3,684 $ 4,063 Income from equity investment 83 28 116 Amortization of intangible assets (495 ) (495 ) (495 ) Balance at end of year $ 2,805 $ 3,217 $ 3,684 |
Goodwill & Other Intangibles
Goodwill & Other Intangibles | 12 Months Ended |
Jan. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | NOTE 6 GOODWILL AND OTHER INTANGIBLES Goodwill For goodwill, the Company performs impairment reviews by reporting unit which are determined to be Engineered Films Division, Applied Technology Divisions, and two separate reporting units in the Aerostar Division, one of which is Vista and one of which is all other Aerostar operations (Aerostar excluding Vista). The changes in the carrying amount of goodwill by reporting unit are shown below: Applied Technology Engineered Films Aerostar (exc. Vista) Vista Total Balance at January 31, 2013 $ 9,892 $ 96 $ 789 $ 11,497 $ 22,274 Balance at January 31, 2014 9,892 96 789 11,497 22,274 Acquired goodwill 3,250 27,216 — — 30,466 Foreign currency translation adjustment (592 ) — — — (592 ) Balance at January 31, 2015 12,550 27,312 789 11,497 52,148 Purchase price adjustment to acquired goodwill (a) — 206 — — 206 Goodwill disposed from sale of business (69 ) — — — (69 ) Goodwill impairment loss — — — (7,413 ) (7,413 ) Foreign currency translation adjustment (116 ) — — — (116 ) Balance at January 31, 2016 $ 12,365 $ 27,518 $ 789 $ 4,084 $ 44,756 (a) Working capital adjustment and final deferred tax adjustment for Integra acquisition (see Note 5 Acquisitions Of And Investments In Businesses And Technologies). Goodwill is tested for impairment on an annual basis and between annual tests whenever a triggering event indicates there may be an impairment. The annual impairment tests were completed for each reporting unit in the fourth quarter based on a November 30th valuation date. No triggering events were deemed to have occurred in the fourth quarter and no impairments were recorded as a result of these tests. Two of the reporting units were also tested earlier in fiscal 2016 as a result of triggering events that had occurred. In the fiscal 2016 second quarter the Company performed a Step 1 impairment analysis using fair value techniques on the Engineered Films reporting unit as a result of changes in market conditions indicating that goodwill might be impaired. The reporting unit's fair value was estimated based on discounted cash flows and that fair value amount was compared to the carrying value of the reporting unit. In determining the estimated fair value of the Engineered films reporting unit, the Company was required to make assumptions and estimate a number of factors, including projected revenue growth rate, operating profit margin percentage, capital expenditures, and the discount rate. This analysis indicated that the estimated fair value of the Engineered Films reporting unit exceeded the net book value by approximately $50,000 . No significant changes were noted in the market conditions faced by Engineered Films in the fiscal 2016 third quarter and operating income for the year was consistent with expectations at the end of second quarter when the test was completed. Although oil prices continued to be lower and Engineered Films' sales were down, the profitability of the division continued to be higher than the trailing months at the time of the impairment analysis given lower material costs in comparison to selling price. With actual cash flows largely in line with forecasted cash flows derived for the fiscal 2016 second quarter impairment analysis, the Company concluded no triggering event occurred in the fiscal 2016 third quarter. Goodwill Impairment Loss In the fiscal 2016 third quarter the Company determined that a triggering event occurred for its Vista reporting unit, a subsidiary of the Aerostar division. The triggering event was caused by the lowering of financial expectations for sales and operating income of the reporting unit due to delays and uncertainties regarding the reporting unit’s pursuit of large international opportunities. Despite the Company having a pre-authorization letter from the prime contractor and being in negotiations on a large international contract through the fiscal 2016 second quarter, the contract did not materialize in the fiscal 2016 third quarter as expected. Expectations were lowered as the timing and likelihood of completing certain international pursuits became less certain. In addition, the Company made a change in the executive leadership of the reporting unit during the third quarter. The Step 1 impairment analysis was completed using fair value techniques as of October 31, 2015. In determining the estimated fair value of the Vista reporting unit, the Company was required to make assumptions and estimate a number of factors, including projected revenue growth rates (particularly those related to being successful in being awarded large, international contracts and the timing thereof), operating profit margin percentage, and the discount rate. On the basis of these estimates, the October 31, 2015 analysis indicated that the estimated fair value of the Vista reporting unit was less than the carrying value. The carrying value exceeded the estimated fair value by approximately $8,000 . Pursuant to the applicable accounting guidance, the Company performed a Step 2 impairment analysis for the Vista reporting unit. In the Step 2 impairment analysis, the fair value determined was allocated to the assets and liabilities of the reporting unit. The resulting implied fair value of the Vista goodwill was $7,413 less than the carrying value recorded for the reporting unit. This $7,413 shortfall was recorded in the fiscal 2016 third quarter as an impairment charge to operating income reported as "Goodwill impairment loss" in the Consolidated Statements of Income and Comprehensive Income. Goodwill gross of accumulated impairment losses at January 31, 2016, 2015, and 2014 was $52,169 , $52,148 , and $22,274 , respectively. Goodwill net of accumulated impairment losses at January 31, 2016, 2015 and 2014 was $44,756 , $52,148 , and $22,274 , respectively. Intangible Assets The following table provides the gross carrying amount and related accumulated amortization of definite-lived intangible assets: For the years ended January 31, 2016 2015 2014 Accumulated Accumulated Accumulated Amount Amortization Net Amount Amortization Net Amount Amortization Net Existing technology $ 8,825 $ (6,487 ) $ 2,338 $ 8,870 $ (5,239 ) $ 3,631 $ 7,840 $ (4,164 ) $ 3,676 Customer relationships 14,101 (2,794 ) 11,307 14,128 (1,271 ) 12,857 3,494 (525 ) 2,969 Other intangibles 4,065 (1,878 ) 2,187 3,657 (1,655 ) 2,002 2,891 (1,380 ) 1,511 Total $ 26,991 $ (11,159 ) $ 15,832 $ 26,655 $ (8,165 ) $ 18,490 $ 14,225 $ (6,069 ) $ 8,156 The estimated future amortization expense for these definite-lived intangible assets, as well as definite-lived intangible assets held by SST, during the next five years is as follows: 2017 2018 2019 2020 2021 Estimated amortization expense $ 3,514 $ 2,873 $ 2,018 $ 1,464 $ 1,067 |
Employee Retirement Benefits
Employee Retirement Benefits | 12 Months Ended |
Jan. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Retirement Benefits | NOTE 7 EMPLOYEE POSTRETIREMENT BENEFITS The Company has two 401(k) plans covering substantially all employees as of January 31, 2016 . One plan, which covers the majority of employees, matches employee contributions up to 4% . Under this plan all account balances and future contributions and related earnings can be invested in several investment alternatives as well as the Company's common stock in accordance with each participant's elections. Participants' contributions to the 401(k) and the employer matching contributions are limited to 20% investment in the Company's common stock. Participants may choose to make separate investment choices for current account balances and for future contributions. Officers of the Company may not include Raven's common stock in their 401(k) plan elections. The other 401(k) plan was assumed as part of the Vista acquisition. Employee contributions under this plan are matched up to 4% under an amendment in fiscal 2015 to eliminate a 3% annual contribution and to eliminate a provision allowing an additional annual discretionary contribution. The Company also assumed an additional 401(k) profit sharing plan as part of the Integra acquisition. This plan was merged into Raven's 401(k) plan on December 31, 2014. The Company also contributes to post-retirement and pensions as are required or customary for employees in foreign locations. Total contribution expense to all such plans was $1,952 , $2,416 , and $2,412 for fiscal 2016 , 2015 , and 2014 , respectively. In addition, the Company provides postretirement medical and other benefits to senior executive officers and senior managers. These plan obligations are unfunded. On August 25, 2015 the Company amended the employment agreements with five of its senior executive officers eliminating the postretirement medical benefits to these individuals and their spouses. In consideration of eliminating this retiree benefit, the senior executive officers received lump sum payments in amounts ranging from $8 to $15 based on each officer’s years of service to the Company. The Company’s current senior executive officers that either already qualified for retirement or had twenty or more years of service to the Company are still eligible for benefits under their employment agreements. The elimination of coverage for these executives reduced the benefit obligation due to prior service by approximately $1,000 as of August 31, 2015. The amount was recognized as a negative plan amendment and amortized over the average remaining years of service to full eligibility for active participants not yet fully eligible for benefits as of August 31, 2015. The accumulated benefit obligation, including the impact of the August 31, 2015 remeasurement resulting from the plan amendment, for these benefits is as follows: For the years ended January 31, 2016 2015 2014 Benefit obligation at beginning of year $ 12,125 $ 8,254 $ 8,307 Service cost 285 195 202 Interest cost 386 366 348 Amendments (958 ) — — Actuarial (gain) loss and assumption changes (3,544 ) 3,543 (340 ) Retiree benefits paid (303 ) (233 ) (263 ) Benefit obligation at end of year $ 7,991 $ 12,125 $ 8,254 The following tables set forth the plan's pre-tax adjustment to accumulated other comprehensive income/loss: For the years ended January 31, 2016 2015 2014 Amounts not yet recognized in net periodic benefit cost: Net actuarial loss $ 2,504 $ 6,309 $ 2,918 Prior service cost (892 ) — — Total pre-tax accumulated other comprehensive loss $ 1,612 $ 6,309 $ 2,918 Pre-tax accumulated other comprehensive loss - beginning of year related to benefit obligation $ 6,309 $ 2,918 $ 3,441 Reclassification adjustments recognized in benefit cost: Recognized net (loss) (261 ) (152 ) (183 ) Amortization of prior service cost 66 — — Amounts recognized in AOCI during the year: Prior service cost from amendments (958 ) — — Net actuarial (gain) loss (3,544 ) 3,543 (340 ) Pre-tax accumulated other comprehensive loss - end of year related to benefit obligation $ 1,612 $ 6,309 $ 2,918 The net actuarial gain for fiscal year 2016 was the result of an increase in the discount rate, lower than expected claims, updated trend rates, and application of updated mortality assumptions. The net actuarial loss for fiscal year 2015 was the result of a decrease in the discount rate and application of updated mortality assumptions. The net actuarial gain in fiscal year 2014 was driven by an increase in the discount rate. The liability and net periodic benefit cost reflected in the Consolidated Balance Sheets and Consolidated Statements of Income and Comprehensive Income were as follows: For the years ended January 31, 2016 2015 2014 Beginning liability balance $ 12,125 $ 8,254 $ 8,307 Net periodic benefit cost 866 713 733 Other comprehensive (income) loss (4,697 ) 3,391 (523 ) Total recognized in net periodic benefit cost and other comprehensive income (3,831 ) 4,104 210 Retiree benefits paid (303 ) (233 ) (263 ) Ending liability balance $ 7,991 $ 12,125 $ 8,254 Current portion in accrued liabilities $ 329 $ 313 $ 255 Long-term portion in other liabilities $ 7,662 $ 11,812 $ 7,999 Assumptions used to calculate benefit obligation: Discount rate 4.25 % 3.50 % 4.50 % Rate of compensation increase 4.00 % 4.00 % 4.00 % Health care cost trend rates: Health care cost trend rate assumed for next year 6.83% (a) | 7.00% (b) 7.20 % 7.70 % Ultimate health care cost trend rate 4.50% (a) | 5 .00% (b) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2030 (a) | 2025 (b) 2025 2025 Assumptions used to calculated the net periodic benefit cost: Discount rate 4.25% (a) | 3.50% (b) 4.50 % 4.25 % Rate of compensation increase 4.00 % 4.00 % 4.00 % (a) Assumptions used for the five months of fiscal 2016 following the August 31, 2015 remeasurement. (b) Assumptions used for the seven months of fiscal 2016 prior to the plan amendment triggering the August 31, 2015 remeasurement. The discount rate is based on matching rates of return on high-quality fixed-income investments with the timing and amount of expected benefit payments. No material fluctuations in retiree benefit payments are expected in future years. The total estimated cost to be recognized from AOCI into net periodic benefit cost over the next fiscal year is $(13) ; $146 of recognized net loss and $(159) of amortized prior service cost. The assumed health care cost trend rate has a significant effect on the amounts reported. The impact of a one-percentage point change in assumed health care rates would have the following effects: January 31, 2016 One-percentage-point increase One-percentage-point decrease Effect on total of service and interest cost components $ 89 $ (68 ) Effect on accumulated postretirement benefit obligation $ 1,445 $ (1,129 ) The Company expects to make $329 in postretirement medical and other benefit payments in fiscal 2017 . The following postretirement other than pension benefit payments, which reflect expected future service as appropriate, are expected to be paid: Fiscal 2017 $ 329 Fiscal 2018 350 Fiscal 2019 352 Fiscal 2020 347 Fiscal 2021 - 2025 2,299 |
Warranties
Warranties | 12 Months Ended |
Jan. 31, 2016 | |
Product Warranty Costs [Abstract] | |
Warranties | NOTE 8 WARRANTIES Changes in the warranty accrual were as follows: For the years ended January 31, 2016 2015 2014 Beginning balance $ 3,120 $ 2,525 $ 1,888 Acquired — 50 — Accrual for warranties 1,945 3,467 4,561 Settlements made (3,230 ) (2,922 ) (3,924 ) Ending balance $ 1,835 $ 3,120 $ 2,525 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 9 INCOME TAXES The reconciliation of income tax computed at the federal statutory rate to the Company's effective income tax rate was as follows: For the years ended January 31, 2016 2015 2014 Tax at U.S. federal statutory rate 35.0 % 35.0 % 35.0 % State and local income taxes, net of U.S. federal tax benefit 2.1 (0.3 ) 1.5 Tax credit for research activities (8.8 ) (3.9 ) (1.2 ) Tax benefit on insurance premiums (3.9 ) (1.0 ) — Tax benefit on qualified production activities (3.8 ) (3.6 ) (2.9 ) Other, net — 0.7 0.2 20.6 % 26.9 % 32.6 % The decrease in the effective rate for fiscal 2015 is primarily due to the permanent extension of the research and development tax credit retroactive to January 1, 2015. The tax benefit for qualified production activities is also slightly higher as a percentage. While pre-tax income is lower in the current year, the tax benefit for qualified production activities is based on estimated taxable income. Taxable income is higher in comparison to pre-tax income for period ended January 31, 2016 due to the goodwill impairment loss recorded. This impairment, described further in Note 6 Goodwill and Other Intangible Assets , does not reduce taxable income. Rather, goodwill is amortized over 15 years for tax purposes. The effective tax rate for fiscal 2015 was impacted favorably by recognition of a $776 research and development tax credit based upon a tax study undertaken for fiscal years 2011 through 2014. The Company also recorded a $963 discrete tax benefit in fiscal 2015 after reaching a favorable tax settlement with a state tax authority on a previously recorded uncertain tax position. Significant components of the Company's income tax provision were as follows: For the years ended January 31, 2016 2015 2014 Income taxes: Currently payable $ 5,242 $ 12,663 $ 20,098 Deferred (benefit) expense (3,021 ) (958 ) 623 $ 2,221 $ 11,705 $ 20,721 Deferred Tax Assets Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities were as follows: As of January 31, 2016 2015 2014 Current deferred tax assets: Accounts receivable $ 355 $ 194 $ 111 Inventories 602 873 583 Accrued vacation 836 940 1,032 Insurance obligations 350 271 276 Accrued benefit liabilities 99 261 291 Warranty obligations 670 1,225 898 Other accrued liabilities 198 194 181 3,110 3,958 3,372 Non-current deferred tax assets (liabilities): Postretirement benefits 2,797 4,243 2,799 Depreciation and amortization (12,195 ) (16,099 ) (11,522 ) Uncertain tax positions 1,047 1,002 2,219 Share-based compensation 3,593 4,410 3,196 Other (668 ) (647 ) (218 ) (5,426 ) (7,091 ) (3,526 ) Net deferred tax (liability) $ (2,316 ) $ (3,133 ) $ (154 ) Pre-tax book income (loss) for the U.S. companies and the foreign subsidiaries was $ 9,980 and $ 802 , respectively. As of January 31, 2016 , undistributed earnings of $1,975 of the Canadian and European subsidiaries and were considered to have been reinvested indefinitely and, accordingly, the Company has not provided United States income taxes on such earnings. This estimated tax liability would be approximately $319 net of foreign tax credits. Uncertain Tax Positions A summary of the activity related to the gross unrecognized tax benefits (excluding interest and penalties) is as follows: For the years ended January 31, 2016 2015 2014 Gross unrecognized tax benefits at beginning of year $ 2,307 $ 4,660 $ 4,213 Increases in tax positions related to the current year 209 909 795 Decreases as a result of lapses in applicable statutes of limitation (227 ) (393 ) (348 ) Tax settlement with tax authorities — (2,869 ) — Gross unrecognized tax benefits at end of year $ 2,289 $ 2,307 $ 4,660 Fiscal year 2016 changes to uncertain tax positions related to prior years resulted from lapses of applicable statutes of limitation and fiscal year 2015 included a favorable settlement reached with a state tax authority. The total unrecognized tax benefits that, if recognized, would affect the Company's effective tax rate were $1,631 , $1,617 , and $3,029 as of January 31, 2016 , 2015, and 2014, respectively. The Company does not expect any significant change in the amount of unrecognized tax benefits in the next fiscal year. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. At January 31, 2016 , 2015, and 2014, accrued interest and penalties were $1,051 , $952 , and $1,897 , respectively. The Company files tax returns, including returns for its subsidiaries, with various federal, state, and local jurisdictions. Uncertain tax positions are related to tax years that remain subject to examination. As of January 31, 2016 , federal tax returns filed in the U.S., Canada and Switzerland for fiscal years ended January 31, 2010 through January 31, 2015 remain subject to examination by federal tax authorities. In state and local jurisdictions, tax returns for fiscal years ended January 31, 2008 through January 31, 2015 remain subject to examination by state and local tax authorities. |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Jan. 31, 2016 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | NOTE 10 FINANCING ARRANGEMENTS On April 15, 2015 the Company's uncollateralized credit agreement with Wells Fargo providing a line of credit of $10,500 and maturing on November 30, 2016 was terminated upon the Company's entering into a new credit facility. This new credit facility, the Credit Agreement dated as of April 15, 2015 among Raven Industries, Inc., JPMorgan Chase Bank, N.A., Toronto Branch as Canadian Administrative Agent, JPMorgan Chase Bank, National Association, as administrative agent, and each lender from time to time party thereto (the Credit Agreement), provides for a syndicated senior revolving credit facility up to $125,000 with a maturity date of April 15, 2020 . Wells Fargo, a participating lender under the Credit agreement holds the majority of the Company's cash and cash equivalents. One member of the Company's Board of Directors is also on the Board of Directors of Wells Fargo & Company, the parent company of Wells Fargo. Unamortized debt issuance costs associated with this Credit Agreement were $461 at January 31, 2016 . Loans or borrowings defined under the Credit Agreement bear interest and fees at varying rates and terms defined in the Credit Agreement based on the type of borrowing as defined. The Credit Agreement includes annual administrative and unborrowed capacity fees of $213 . The Credit Agreement also contains customary affirmative and negative covenants, including those relating to financial reporting and notification, limits on levels of indebtedness and liens, investments, mergers and acquisitions, affiliate transactions, sales of assets, restrictive agreements, and change in control as defined in the Credit Agreement. Financial covenants include an interest coverage ratio and funded indebtedness to earnings before interest, taxes, depreciation, and amortization as defined in the Credit Agreement. $125,000 was available under the Credit Agreement for borrowings as of January 31, 2016 . The loan proceeds may be utilized by Raven for strategic business purposes and for working capital needs. Simultaneous with execution of the Credit Agreement, Raven, Aerostar, Vista, and Integra entered into a guaranty agreement in favor of JPMorgan Chase Bank National Association in its capacity as administrator under the Credit Agreement for the benefit of JPMorgan Chase Bank N.A., Toronto Branch and the lenders and their affiliates under the Credit Agreement. Letters of credit totaling $664 , issued under the previous line of credit with Wells Fargo primarily to support self-insured workers' compensation bonding requirements, remain in place. The Company expects to have these outstanding letters of credit issued under the credit facility. Until such time as that is complete, any draws required under these letters of credit would be settled with available cash or borrowings under the new Credit Agreement. There were no borrowings outstanding under either credit agreement for any of the fiscal periods covered by this Annual Report on Form 10-K. There have been no borrowings under either credit agreement in the last three fiscal years. The Company is in compliance with all financial covenants set forth in the Credit Agreement. Pursuant to the acquisition of SBG and Integra in fiscal year 2015 as described in Note 5 Acquisitions of and Investments in Businesses and Technologies, the Company assumed liabilities including debts to former owners, a line of credit and long-term notes. Although there was a short-term working capital borrowing under Integra's line of credit, such borrowing and assumed debt was subsequently paid in full and the line of credit was closed. There was no assumed debt outstanding at January 31, 2016, 2015 and 2014. The changes in the outstanding debt are shown below: Line of credit Long-term notes Notes with former owners and others Debt Outstanding Balance at January 31, 2013 $ — $ — $ — $ — Balance at January 31, 2014 — — — — Acquired in business combination 1,465 9,876 648 11,989 Additional borrowings 2,127 — — 2,127 Debt repayment (3,592 ) (9,876 ) (648 ) (14,116 ) Balance at January 31, 2015 $ — $ — $ — $ — Balance at January 31, 2016 $ — $ — $ — $ — (a) The line of credit and long-term notes were assumed in the Integra business combination. The notes with former owners and others were assumed in the SBG business combination. The Company leases certain vehicles, equipment, and facilities under operating leases. Total rent and lease expense was $2,095 , $1,977 and $2,395 in fiscal 2016 , 2015 , and 2014 , respectively. Future minimum lease payments under non-cancelable operating leases are as follows: 2017 2018 2019 2020 2021 Thereafter Minimum lease payments $ 1,661 $ 1,394 $ 1,126 $ 1,150 $ 1,179 $ — |
Contingencies
Contingencies | 12 Months Ended |
Jan. 31, 2016 | |
Contingencies Disclosure [Abstract] | |
Contingencies | NOTE 11 CONTINGENCIES In the normal course of business, the Company is subject to various claims and litigation. The Company has concluded that the ultimate outcome of these matters is not expected to be material to the Company’s results of operations, financial position, or cash flows. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Jan. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | NOTE 12 RESTRUCTURING COSTS In the fiscal 2015 fourth quarter, the Company announced and implemented a restructuring plan to lower Applied Technology’s cost structure in response to weak commodity prices, eroding grower sentiment, reduced demand for precision agricultural equipment, and the anticipated revenue decline of non-strategic legacy customers. In the same period, Engineered Films implemented a preemptive restructuring plan to address the decline in demand in the energy sector as the result of falling oil prices. In addition to reducing its international sales infrastructure, scaling back marketing initiatives, lowering general manufacturing overhead, and focusing R&D spending on core product lines, the Company initiated the exit of Applied Technology’s non-strategic St. Louis, Missouri contract manufacturing facility. As a result of these actions, the Company incurred restructuring costs of approximately $399 for the fiscal year ended January 31, 2015. Such costs were principally severance benefits which were $308 for Applied Technology and $91 for Engineered Films. The Company reported $250 of this expense in "Cost of sales" and $149 in "Selling, general, and administrative expenses" in the Consolidated Statements of Income and Comprehensive Income. Approximately $344 of these restructuring costs were paid in fiscal 2015 and $55 were paid in fiscal 2016. Subsequent to the end of fiscal 2015, the Company announced that Applied Technology's remaining contract manufacturing operations in the St. Louis, Missouri area had been successfully sold and transferred. The exit activities related to this sale and transfer were substantially completed during the fiscal 2016 first quarter. Gains of $611 were recorded in fiscal 2016 as a result of the exit activity. Receivables for inventory and estimated future royalties pursuant to the sale agreements were $255 and are reflected in "Other current assets" in the Consolidated Balance Sheet at January 31, 2016 . With continued weak end-market demand in the Engineered Films and Applied Technology divisions, on March 10, 2015 the Company announced and implemented an additional restructuring plan to further lower its cost structure. The cost reductions covered all divisions and included the corporate offices, but were weighted to Applied Technology as a result of the decline in this business and the expectation of continued end-market weakness for this division. As a result of this action, the Company incurred restructuring costs for severance benefits of $588 for the year ended January 31, 2016 . The Company reported $407 of restructuring expense in "Cost of sales" and $181 in "Selling, general, and administrative expenses" in the Consolidated Statements of Income and Comprehensive Income for fiscal 2016. Substantially all of these restructuring costs related to Applied Technology. This restructuring plan was completed during the fiscal 2016 second quarter. In October 2015 , the Company's Aerostar Division implemented a restructuring plan at Vista due to reduced demand expectations primarily related to delays and uncertainty surrounding international pursuits. The lower cost structure will help to preserve the Company's capabilities to pursue domestic and international opportunities for Vista's radar products and technology. Restructuring costs for severance benefits were $73 for the year ended January 31, 2016 . The Company reported $58 of this expense in "Cost of sales" and $15 in "Research and development expenses" in the Consolidated Statements of Income and Comprehensive Income. This restructuring plan was completed during fiscal 2016 fourth quarter and there were no unpaid costs at January 31, 2016 . |
Share Based Compensation
Share Based Compensation | 12 Months Ended |
Jan. 31, 2016 | |
Share-based Compensation [Abstract] | |
Share Based Compensation | NOTE 13 SHARE-BASED COMPENSATION At January 31, 2016 , the Company had two shareholder approved share-based compensation plans, which are described below. The compensation cost and related income tax benefit for these plans were as follows: For the years ended January 31, 2016 2015 2014 Share-based compensation cost $ 2,311 $ 4,213 $ 4,198 Tax (expense) benefit (692 ) 1,504 1,460 Share-based compensation cost capitalized as part of inventory is not significant. Equity Compensation Plans The Company reserved shares of its common stock for issuance to directors, officers, employees, and certain advisors of the Company through incentive stock options and non-statutory stock options, stock appreciation rights, stock awards, restricted stock, restricted stock units (RSUs), and performance awards to be granted under the Amended and Restated 2010 Stock Incentive Plan (the Plan) which was approved by shareholders on May 22, 2012 . The aggregate number of shares initially available for which options may be granted under the Plan was 2,000,000 . As of January 31, 2016 , the number of shares available for grant under the Plan was 1,293,876 . Option exercises under the Plan are settled in newly issued common shares. The Plan is administered by the Personnel and Compensation Committee of the Board of Directors (the Committee), consisting of two or more independent directors of the Company. Subject to the provisions set forth in the Plan, all of the members of the Committee shall be non-employee members of the Board of Directors. The Committee determines the option exercise prices and the term of each grant. The Committee may accelerate the exercisability of awards under the Plan or extend the term of such awards to the extent allowed by the Plan to a maximum term of ten years. Two types of awards were granted under the Plan in fiscal 2015, stock options and restricted stock units. Stock Option Awards The Company granted 289,600 non-qualified stock options during fiscal 2016 . Options are granted with exercise prices not less than the market value of the Company's common stock at the date of grant. The stock options vest over a four -year period and expire after five years. Options contain retirement and change-in-control provisions that may accelerate the vesting period. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. The Company uses historical data to estimate option exercises, employee terminations, and volatility within this valuation model. The weighted average assumptions used for the Black-Scholes option pricing model by grant year are as follows: For the years ended January 31, 2016 2015 2014 Risk-free interest rate 1.33 % 1.32 % 0.59 % Expected dividend yield 2.59 % 1.53 % 1.46 % Expected volatility factor 36.81 % 38.65 % 41.39 % Expected option term (in years) 3.75 4.00 3.75 Weighted average grant date fair value $ 4.77 $ 9.18 $ 9.34 Outstanding stock options as of January 31, 2016 and activity for the year then ended are presented below: Number Weighted average exercise price Aggregate intrinsic value Weighted Outstanding, January 31, 2015 1,015,275 $ 29.04 Granted 289,600 20.09 Exercised (50,000 ) 15.49 Forfeited (72,400 ) 27.42 Expired (256,525 ) 24.18 Outstanding, January 31, 2016 925,950 $ 28.44 $ — 2.48 Outstanding exercisable, January 31, 2016 453,425 $ 31.30 $ — 1.48 The intrinsic value of a stock award is the amount by which the fair value of the underlying stock exceeds the exercise price of the award. The total intrinsic value of options exercised was $172 , $1,467 , and $3,019 during the years ended January 31, 2016 , 2015 , and 2014 , respectively. As of January 31, 2016 , the total unrecognized compensation cost for non-vested awards was $2,089 , net of the effect of estimated forfeitures. This amount is expected to be recognized over a weighted average period of 2.23 years. Restricted Stock Unit Awards The Company granted 39,025 time-vested RSUs to employees during the year ended January 31, 2016 . The fair value of a time-vested RSU is measured based upon the closing market price of the Company's common stock on the date of grant. Time-vested RSUs will vest if, at the end of the three -year period, the employee remains employed by the Company. RSUs contain retirement and change-in-control provisions that may accelerate the vesting period. Dividends are cumulatively earned on the time-vested RSUs over the vesting period. Activity for time-vested RSUs under the Plan in fiscal 2016 was as follows: Number Weighted Outstanding, January 31, 2015 68,137 $ 31.27 Granted 39,025 19.25 Vested (18,526 ) 31.66 Forfeited (6,710 ) 29.97 Outstanding, January 31, 2016 81,926 $ 25.53 Cumulative dividends, January 31, 2016 3,107 The Company also granted performance-based RSUs during the year ended January 31, 2016 . The exact number of performance shares to be issued will vary from 0% to 150% of the target award, depending on the Company's actual performance over the three -year period in comparison to the target award. The target award for the fiscal 2015 and 2016 grants are based on return on equity (ROE), which is defined as net income divided by the average of beginning and ending shareholders' equity for the fiscal year. The target award for the fiscal 2014 grant is based on return on sales (ROS), which is defined as net income divided by net sales. The performance-based RSUs will vest if, at the end of the three -year performance period, the Company has achieved certain performance goals and the employee remains employed by the Company. Performance-based RSUs contain retirement and change-in-control provisions that may accelerate the vesting period. Dividends are cumulatively earned on performance-based RSUs over the vesting period. The fair value of the performance-based restricted stock units is based upon the closing market price of the Company's common stock on the grant date. The number of restricted stock units granted is based on 100% of the target award. The number of RSUs that will vest is determined by the estimated ROE or ROS target over the three -year performance period. The estimated performance factor used to estimate the number of restricted stock units expected to vest is evaluated quarterly. The number of restricted stock units issued at the vesting date will be based on actual results. Activity for performance-based RSUs under the Plan in fiscal 2016 was as follows: Number Weighted Outstanding, January 31, 2015 152,439 $ 32.40 Granted 68,570 20.09 Vested (52,502 ) 31.66 Forfeited (17,783 ) 28.27 Performance-based adjustment (84,656 ) 29.02 Outstanding, January 31, 2016 66,068 $ 25.65 Cumulative dividends, January 31, 2016 7,557 As of January 31, 2016, the total unrecognized compensation cost for nonvested RSU awards was $576 net of the effect for estimated forfeitures. This amount is expected to be recognized over a weighted average period of 2.01 years. Deferred Stock Compensation Plan for Directors The Company reserved 100,000 shares of its common stock for issuance to certain members of its Board of Directors under the Deferred Stock Compensation Plan for Directors of Raven Industries, Inc. (the Director Plan). The Director Plan is administered by the Personnel and Compensation Committee of the Board of Directors. Under the Director Plan, any non-employee director receives a grant of a number of stock units as deferred compensation to be converted into common stock after retirement from the Board of Directors and may elect to have a specified percentage of their annual retainer converted to stock units. Under the Director Plan, a stock unit is the right to receive one share of the Company's common stock as deferred compensation, to be distributed from an account established by the Company in the name of the non-employee director. Stock units have the same value as a share of common stock but cannot be sold. Stock units are a component of the Company's equity. Stock units granted under the Director Plan vest immediately and are expensed at the date of grant. When dividends are paid on the Company's common shares, stock units are added to the directors' balances and a corresponding amount is removed from retained earnings. The intrinsic value of a stock unit is the fair value of the underlying shares. Outstanding stock units as of January 31, 2016 and changes during the year then ended are presented below: Number Weighted Outstanding, January 31, 2015 69,347 $ 21.44 Granted 18,721 19.23 Deferred retainers 3,120 19.23 Dividends 2,546 17.67 Outstanding, January 31, 2016 93,734 $ 20.82 |
Net Income per Share
Net Income per Share | 12 Months Ended |
Jan. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Income per Share | NOTE 14 NET INCOME PER SHARE Basic net income per share is computed by dividing net income by the weighted average common shares and stock units outstanding. Diluted net income per share is computed by dividing net income by the weighted average common and common equivalent shares outstanding which includes the shares issuable upon exercise of employee stock options (net of shares assumed purchased with the option proceeds), stock units, and restricted stock units outstanding. Performance share awards are included in the diluted calculation based upon what would be issued if the end of the most recent reporting period was the end of the term of the award. Certain outstanding options and restricted stock units were excluded from the diluted net income per-share calculations because their effect would have been anti-dilutive under the treasury stock method. The options and restricted stock units excluded from the diluted net income per share calculation were as follows: For the years ended January 31, 2016 2015 2014 Anti-dilutive options and restricted stock units 1,107,733 781,988 577,213 The computation of earnings per share is presented below: For the years ended January 31, 2016 2015 2014 Numerator: Net income attributable to Raven Industries, Inc. $ 8,489 $ 31,733 $ 42,903 Denominator: Weighted average common shares outstanding 37,237,717 36,859,026 36,379,356 Weighted average stock units outstanding 86,745 69,484 67,724 Denominator for basic calculation 37,324,462 36,928,510 36,447,080 Weighted average common shares outstanding 37,237,717 36,859,026 36,379,356 Weighted average stock units outstanding 86,745 69,484 67,724 Dilutive impact of stock options and RSUs 75,481 174,784 198,295 Denominator for diluted calculation 37,399,943 37,103,294 36,645,375 Net income per share - basic $ 0.23 $ 0.86 $ 1.18 Net income per share - diluted $ 0.23 $ 0.86 $ 1.17 |
Business Segments and Major Cus
Business Segments and Major Customer Information | 12 Months Ended |
Jan. 31, 2016 | |
Segment Reporting [Abstract] | |
Business Segments and Major Customer Information | NOTE 15 BUSINESS SEGMENTS AND MAJOR CUSTOMER INFORMATION The Company's reportable segments are defined by their product lines which have been grouped based on common technologies, production methods, and inventories. The Company's reportable segments are Applied Technology Division, Engineered Films Division, and Aerostar Division. Raven Canada, SBG, Raven GmbH, Raven Australia, and Raven Brazil are included in the Applied Technology Division. Vista and AIS are included in the Aerostar Division. Substantially all of the Company's long-lived assets are located in the United States. Applied Technology designs, manufactures, sells, and services innovative precision agriculture products and information management tools that help growers reduce costs, save time, and improve farm yields around the world. Their product families include field computers, application controls, GPS-guidance and assisted-steering systems, automatic boom controls, yield monitoring and planter and seeder controls, harvest controls, and an integrated real-time kinematic (RTK) and information platform called Slingshot™. Applied Technology services include high-speed, in-field internet connectivity and cloud-based data management. The Company's Engineered Films Division manufactures high-performance plastic films and sheeting for major markets throughout the United States and abroad. An important part of this business is highly technical, engineered geomembrane films that protect environmental resources through containment linings and coverings for energy, agriculture, construction, and industrial markets. Aerostar designs and manufactures proprietary products including high-altitude balloons, tethered aerostats, and radar processing systems. These products can be integrated with additional third-party sensors to provide research, communications, and situational awareness to government and commercial customers. As the Company focused its growth strategy on its proprietary products, the Company made the decision to largely wind-down its contract manufacturing operations. For Aerostar, product lines such as manufacturing military parachutes, uniforms and protective wear and electronics manufacturing services were phased out during fiscal 2016. Through Vista and AIS, Aerostar pursues potential product and support services contracts for agencies and instrumentalities of the U.S. government and to foreign governments as Direct Commercial Sales and Foreign Military Sales through the U.S. Government. Vista positions the Company to meet the global demand for lower-cost detection and tracking systems used by government agencies. The Company measures the performance of its segments based on their operating income excluding administrative and general expenses. The accounting policies of the operating segments are the same as those described in Note 1 Summary of Significant Accounting Policies . Other income, interest expense, and income taxes are not allocated to individual operating segments, and assets not identifiable to an individual segment are included as corporate assets. Segment information is reported consistent with the Company's management reporting structure. Business segment information is as follows: For the years ended January 31, 2016 2015 2014 APPLIED TECHNOLOGY DIVISION Sales $ 92,599 $ 142,154 $ 170,461 Operating income (a) 18,319 34,557 57,000 Assets (b) 65,490 88,764 93,395 Capital expenditures 664 3,478 9,324 Depreciation and amortization 4,428 5,569 4,332 ENGINEERED FILMS DIVISION Sales $ 129,465 $ 166,634 $ 147,620 Operating income 17,892 21,802 18,154 Assets (b) 134,942 140,023 71,602 Capital expenditures 10,780 8,241 6,681 Depreciation and amortization 7,735 6,096 5,808 AEROSTAR DIVISION Sales $ 36,368 $ 80,772 $ 90,605 Operating income (c) (8,100 ) 8,983 7,816 Assets (b) 40,156 59,274 63,017 Capital expenditures 941 2,799 7,507 Depreciation and amortization 3,770 3,474 2,616 INTERSEGMENT ELIMINATIONS Sales Applied Technology Division (8 ) (231 ) (386 ) Engineered Films Division (195 ) (652 ) (505 ) Aerostar Division — (10,524 ) (13,118 ) Operating income 91 163 (111 ) Assets (57 ) (148 ) (311 ) REPORTABLE SEGMENTS TOTAL Sales $ 258,229 $ 378,153 $ 394,677 Operating income 28,202 65,505 82,859 Assets 240,531 287,913 227,703 Capital expenditures 12,385 14,518 23,512 Depreciation and amortization 15,933 15,139 12,756 CORPORATE & OTHER Operating (loss) from administrative expenses $ (17,110 ) $ (21,704 ) $ (18,865 ) Assets (b) (d) 66,079 74,960 74,116 Capital expenditures 661 2,523 7,189 Depreciation and amortization 1,676 2,230 1,439 TOTAL COMPANY Sales $ 258,229 $ 378,153 $ 394,677 Operating income 11,092 43,801 63,994 Assets 306,610 362,873 301,819 Capital expenditures 13,046 17,041 30,701 Depreciation and amortization 17,609 17,369 14,195 (a) The fiscal year ended January 31, 2016 includes gains of $611 on disposal of assets related to the exit of contract manufacturing operations. (b) Certain facilities owned by the Company are shared by more than one reporting segment. Beginning with fiscal year 2016 all facilities are reported as an asset based on the segment that acquired the asset as we believe this better reflects total assets of the business segment. In prior fiscal years (which have not been recast in this table), the book value of certain shared facilities was allocated across reporting segments based on usage. Expenses and costs related to these facilities including depreciation expense, are allocated and reported in each reporting segment's operating income for each fiscal year presented. (c) The fiscal year ended January 31, 2016 includes pre-contract cost write-offs of $2,933 , a goodwill impairment loss of $7,413 , and a $1,483 reduction of an acquisition-related contingent liability for Vista as a result of changes in expected sales and cash flows. (d) Assets are principally cash, investments, deferred taxes, and other receivables. No customers accounted for 10% or more of consolidated sales in fiscal 2016 . Sales to a customer of the Engineered Films segment accounted for 14% and 13% of consolidated sales in fiscal years 2015 and 2014 , respectively, and accounted for 5% and 2% of consolidated accounts receivable at January 31, 2015 and 2014 , respectively. Foreign sales are attributed to countries based on location of the customer. Net sales to customers outside the United States were as follows: For the years ended January 31, 2016 2015 2014 Canada $ 11,789 $ 14,432 $ 16,141 Europe 10,526 8,243 4,131 Latin America 2,676 9,921 22,124 Other foreign sales 2,858 4,239 3,497 Total foreign sales 27,849 36,835 45,893 United States 230,380 341,318 348,784 $ 258,229 $ 378,153 $ 394,677 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 16 SUBSEQUENT EVENTS Effective March 21, 2016 the Board of Directors (Board) authorized an extension and increase of the authorized $40,000 stock buyback program in place and described more fully in Part II Item 5. Market For Registrant's Common Equity, Related Shareholder Matters And Issuer Purchases Of Equity Securities of this Form 10-K . An additional $10,000 was authorized for share repurchases once the $40,000 authorization limit has been reached. With the $10,700 available under the original authorization as of January 31, 2016, a total of $20,700 is available for share repurchases until such time as the authorized spending limit is reached or is revoked by the Board. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jan. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS for the years ended January 31, 2016 , 2015 and 2014 (in thousands) Column A Column B Column C Column D Column E Additions Description Balance at Beginning of Year Charged to Costs and Expenses Charged to Other Accounts Deductions From Reserves (1) Balance at End of Year Deducted in the balance sheet from the asset to which it applies: Allowance for doubtful accounts: Year ended January 31, 2016 $ 319 $ 1,066 $ — $ 351 $ 1,034 Year ended January 31, 2015 $ 319 $ 211 $ 19 $ 230 $ 319 Year ended January 31, 2014 $ 205 $ 129 $ — $ 15 $ 319 Note : (1) Represents uncollectable accounts receivable written off during the year, net of recoveries. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation Raven Industries, Inc. (the Company or Raven) is a diversified technology company providing a variety of products to customers within the industrial, agricultural, energy, construction, and defense markets. The Company conducts this business through the following direct and indirect subsidiaries: Aerostar International, Inc. (Aerostar); Vista Research, Inc. (Vista); Raven International Holding Company BV (Raven Holdings); Raven Industries Canada, Inc. (Raven Canada); SBG Innovatie BV; Navtronics BVBA; Raven Industries GmbH (Raven GmbH); Raven Industries Australia Pty Ltd (Raven Australia) and Raven Do Brazil Participacoes E Servicos Technicos LTDA (Raven Brazil). The Company and these subsidiaries comprise three unique operating units, or divisions, classified into reportable segments (Applied Technology, Engineered Films, and Aerostar). The consolidated financial statements for the periods included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned or controlled subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Noncontrolling Interest | Noncontrolling Interest Noncontrolling interests represent capital contributions, income and loss attributable to the owners of less than wholly-owned and consolidated entities. The Company owns 75% of a business venture to pursue potential product and support services contracts for agencies and instrumentalities of the United States government. The business venture, Aerostar Integrated Systems (AIS), is included in the Aerostar business segment. No capital contributions were made by the noncontrolling interest since the initial capitalization in fiscal year 2013 . Given the Company's majority ownership interest, the accounts of the business venture have been consolidated with the accounts of the Company, and a noncontrolling interest has been recorded for the noncontrolling investor's interests in the net assets and operations of the business venture. |
Investments in Affiliate | Investments in Affiliate The Company owns an interest of approximately 22% in Site-Specific Technology Development Group, Inc. (SST). The Company has significant influence, but neither a controlling interest nor a majority interest in the risks or rewards of SST and as such, this affiliate investment is accounted for using the equity method. The investment balance is included in “Other assets” while the Company's share of the SST’s results of operations is included in “Other income (expense), net.” The Company considers whether the value of any of its equity method investments has been impaired whenever adverse events or changes in circumstances indicate that recorded values may not be recoverable. If the Company considered any such decline to be other than temporary (based on various factors, including historical financial results, product development activities, and the overall health of the affiliate's industry), an impairment loss would be recorded. |
Use of Estimates | Use of Estimates Preparing the financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make certain estimates and assumptions. These affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company's forecasts, based principally on estimates, are critical inputs to asset valuations such as those for inventory or goodwill. These assumptions and estimates require significant judgment and actual results could differ from assumed and estimated amounts. |
Foreign Currency | Foreign Currency The Company's subsidiaries that operate outside the United States use the local currency as their functional currency. The functional currency is translated into U.S. dollars for balance sheet accounts using the period-end exchange rates and average exchange rates for the statement of income and comprehensive income. Adjustments resulting from financial statement translations are included as foreign currency translation adjustments in “Accumulated other comprehensive income (loss)” within shareholders' equity. Foreign currency transaction gains or losses are recognized in the period incurred and are included in “Other income (expense), net” in the Consolidated Statements of Income and Comprehensive Income. Foreign currency transaction gains or losses on intercompany notes receivable and notes payable denominated in foreign currencies for which settlement is not planned in the foreseeable future are considered part the net investment and are reported in the same manner as foreign currency translation adjustments. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid instruments with original maturities of three or fewer months to be cash equivalents. Cash and cash equivalent balances are principally concentrated in checking, money market, and savings accounts. Certificates of deposit that mature in over 90 days but less than one year are considered short-term investments. Certificates of deposit that mature in one year or more are considered to be other long-term assets and are carried at cost. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount, do not bear interest, and are considered past due based on invoice terms. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses. This is based on historical write-off experience by segment and an estimate of the collectability of any known problem accounts. Unbilled receivables arise when revenues have been earned, but not billed, and are related to differences in timing. Unbilled receivables were not material as of January 31, 2016, 2015, or 2014 . |
Inventory Valuation | Inventory Valuation Inventories are carried at the lower of cost or market, with cost determined on the first-in, first-out basis. Market value encompasses consideration of all business factors including expected future sales, price, contract terms, and usefulness. |
Inventory Costs for Contracts or Programs, Policy [Policy Text Block] | Pre-Contract Costs From time to time, the Company incurs costs to begin fulfilling the statement of work under a specific anticipated contract still being negotiated with the customer. If the Company determines that it is probable it will be awarded the specific anticipated contract, the pre-contract costs incurred, excluding start-up costs which are expensed as incurred, are deferred to the balance sheet and included in "Inventories". Deferred pre-contract costs are periodically reviewed and assessed for recoverability under the contract based on the Company’s assessment of the nature of the costs, the probability and timing of the award, and other relevant facts and circumstances. Write-offs of pre-contract costs are charged to cost of sales when it becomes probable that such costs will not be recoverable. The Company recorded a charge of $2,933 for the write-off of pre-contract costs specific to one international contract that was not awarded to Vista in the third quarter of fiscal 2016. No deferred pre-contract costs were written-off in the periods ended January 31, 2015 or 2014. No pre-contract costs were included in "Inventories" at January 31, 2016 or January 31, 2015 |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment held for use is carried at the asset's cost and depreciated over the estimated useful life of the asset. With the prospective adoption of the straight-line method of depreciation for manufacturing equipment, office equipment, and furniture and fixtures placed in service on or after February 1, 2015, the Company no longer primarily uses accelerated methods of computing depreciation. This change was made as a straight-line method of depreciation more accurately reflects the economic consumption of these assets than did the accelerated method previously used. This prospective change in the depreciation method did not have a material effect on the Company’s financial position or results of operations for the fiscal year ended January 31, 2016. The estimated useful lives used for computing depreciation are as follows: Building and improvements 15 - 39 years Manufacturing equipment by segment Applied Technology 3 - 5 years Engineered Films 5 - 12 years Aerostar 3 - 5 years Furniture, fixtures, office equipment, and other 3 - 7 years The cost of maintenance and repairs is charged to expense in the period incurred, and renewals and betterments are capitalized. The cost and related accumulated depreciation of assets sold or disposed are removed from the accounts and the resulting gain or loss is reflected in operations. The Company capitalizes certain internal costs incurred in connection with developing or obtaining internal-use software in accordance with the accounting guidance for such costs. There were no capitalized software costs in fiscal year 2016 or 2015 and capitalized software costs totaled $203 in fiscal 2014 . The costs are included in “Property, plant and equipment, net” on the Consolidated Balance Sheets. Software costs that do not meet capitalization criteria are expensed as incurred. Amortization expense related to capitalized software is computed on the straight-line basis over the estimated lives ranging from 3 to 5 years and is included in depreciation expense. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company uses the established fair value hierarchy, which classifies or prioritizes the inputs used in measuring fair value. These classifications include: Level 1 - Observable inputs such as quoted prices in active markets; Level 2 - Inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3 - Unobservable inputs in which little or no market data exists, therefore, requiring an entity to develop its own assumptions. The Company's financial assets required to be measured at fair value on a recurring basis include cash and cash equivalents and short-term investments. The Company determines fair value of its cash equivalents and short-term investments through quoted market prices. The Company's goodwill and long-lived assets, including intangible assets subject to amortization, are measured at fair value on a non-recurring basis. These valuations are derived from valuation techniques in which one or more significant inputs are not observable. Our accounting policy and methodology for assessing impairment of these assets is further described below and in the Critical Accounting Estimates section of the Management's Discussion and Analysis in Part 7 of this Annual Report on Form 10-K (Form 10-K). For all acquisitions, the Company is required to measure the fair value of the net identifiable tangible and intangible assets acquired. In addition, the Company determines the estimated fair value of contingent consideration as of the acquisition date, and subsequently at the end of each reporting period. These valuations are derived from valuation techniques in which one or more significant inputs are not observable. Fair value measurements associated with acquisitions, including acquisition-related contingent liabilities, are described in Note 5 Acquisition of and Investments in Businesses and Technologies. |
Goodwill and Intangible Assets | Intangible Assets Intangible assets, primarily comprised of technologies acquired through acquisition, are recorded at cost and are presented net of accumulated amortization. Amortization is computed using an amortization method that best approximates the pattern of economic benefits which the asset provides. The Company has used both the straight-line method and the undiscounted cash flows method to appropriately allocate the cost of intangible assets to earnings in each reporting period. The straight-line method allocates the cost of such intangible assets ratably over the asset’s life. Under the undiscounted cash flow method, the estimated cash flow attributable to each year of an intangible asset’s life is calculated as a percentage of the total of the cash flows over the asset’s life and that percentage is applied to the initial value of the asset to determine the annual amortization to be recorded. The estimated useful lives of the Company’s intangible assets range from 3 to 20 years. Goodwill The Company recognizes goodwill as the excess cost of an acquired business over the net amount assigned to assets acquired and liabilities assumed. Acquisition earn-out payments are accrued at fair value as of the purchase date and payments reduce the accrual without affecting goodwill. Any change in the fair value of the contingent consideration after the acquisition date is recognized in the Consolidated Statements of Income and Comprehensive Income. Goodwill is tested for impairment on an annual basis during the fourth quarter and between annual tests whenever a triggering event indicates there may be an impairment. Impairment tests of goodwill are performed at the reporting unit level. A qualitative impairment assessment over relevant events and circumstances may be assessed to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If events and circumstances indicate the fair value of a reporting unit may be less than its carrying value, then the fair values are estimated based on discounted cash flows and are compared with the corresponding carrying value of the reporting unit. If the fair value of the reporting unit is less than the carrying amount, the amount of the impairment loss must be measured and then recognized to the extent the carrying value of the goodwill exceeds the implied fair value. When performing goodwill impairment testing, the fair values of reporting units are determined based on valuation techniques using the best available information, primarily discounted cash flow projections. Such valuations are derived from valuation techniques in which one or more significant inputs are not observable (Level 3 fair value measures). |
Long-Lived Assets | Long-Lived Assets The Company periodically assesses the recoverability of long-lived and intangible assets. An impairment loss is recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows used in determining the fair value of the assets. The amount of the impairment loss to be recorded is the excess of the carrying value of the asset over its fair value. Long-lived assets determined to be held for sale and classified as such in accordance with the applicable guidance are reported as long-term assets at the lower of the asset's carrying amount or fair value less the estimated cost to sell. Depreciation is not recorded once a long-lived asset has been classified as held for sale. |
Acquisition-Related Contingent Consideration [Policy Text Block] | Acquisition-Related Contingent Consideration Acquisition-related contingent consideration represents an obligation of the Company to transfer additional assets or equity interests if specified future events occur or conditions are met. This contingency is accounted for at fair value either as a liability or equity depending on the terms of the acquisition agreement. The Company determines the estimated fair value of contingent consideration as of the acquisition date, and subsequently at the end of each reporting period. In doing so, the Company makes significant estimates and assumptions regarding future events or conditions being achieved under the subject contingent agreement as well as the appropriate discount rate to apply. Such valuations are derived from valuation techniques in which one or more significant inputs are not observable (Level 3 fair value measures). |
Insurance Obligations | Insurance Obligations The Company utilizes insurance policies to cover workers' compensation and general liability costs. Liabilities are accrued related to claims filed and estimates for claims incurred but not reported. To the extent these obligations are expected to be reimbursed by insurance, the probable insurance policy benefit is included as a component of “Other current assets.” |
Contingencies | Contingencies The Company is involved as a defendant in lawsuits, claims, regulatory inquiries, or disputes arising in the normal course of business. While the ultimate settlement of these claims cannot be easily estimated, management believes that any liability resulting from these claims will, in many cases, be substantially covered by insurance. Management does not believe that the ultimate outcome of any pending matters will be material to its results of operations, financial position, or cash flows. The Company also has contingencies related to potential asset impairments or contingent liabilities. An estimate of the loss on these matters is charged to operations when it is probable that an asset has been impaired or a liability has been incurred, and the amount of the loss can be reasonably estimated. Management does not believe any such contingent asset impairment or liability will be material to its results of operations, financial position, or cash flows. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when it is realized or realizable and has been earned. Revenue is recognized when there is persuasive evidence of an arrangement, the sales price is determinable, collectability is reasonably assured, and shipment or delivery has occurred (depending on the terms of the sale). The Company sells directly to customers or distributors who incur the expense and commitment for any post-sale obligations beyond stated warranty terms. Estimated returns, sales allowances, or warranty charges are recognized upon shipment of a product. For certain service-related contracts, the Company recognizes revenue under the percentage-of-completion method of accounting, whereby contract revenues are recognized on a pro-rata basis based upon the ratio of costs incurred compared to total estimated contract costs. Contract costs include labor, material, subcontracting costs, as well as allocation of indirect costs. Revenues including estimated profits are recorded as costs are incurred. Losses estimated to be incurred upon completion of contracts are charged to operations when they become known. Certain contracts contain provisions for incentive payments that the Company may receive based on performance criteria related to product design, development and production standards. Revenue related to the incentive payments is recognized when ultimate realization by the Company is assured, which generally occurs when the provisions and performance criteria required by the contract are met. |
Operating Expenses | Operating Expenses The primary types of operating expenses are classified in the income statement as follows: Cost of sales Research and development expenses Selling, general and administrative expenses Direct material costs Material acquisition and handling costs Direct labor Factory overhead including depreciation and amortization Inventory obsolescence Product warranties Shipping and handling cost Personnel costs Professional service fees Material and supplies Facility allocation Personnel costs Professional service fees Advertising Promotions Information technology equipment depreciation Office supplies Facility allocation The Company's research and development expenditures consist primarily of internal direct and indirect costs associated with development of technologies to support its proprietary product lines in each of its divisions. These research and development costs are expensed as incurred. The Company's gross margins may not be comparable to industry peers due to variability in the classification of these expenses across the industries in which the Company operates. |
Warranties | Warranties Accruals necessary for product warranties are estimated based on historical warranty costs and average time elapsed between purchases and returns for each division. Additional accruals are made for any significant, discrete warranty issues. |
Share-Based Compensation | Share-Based Compensation The Company records compensation expense related to its share-based compensation plans using the fair value method. Under this method, the fair value of share-based compensation is determined as of the grant date and the related expense is recorded over the period in which the share-based compensation vests. |
Income Taxes | Income Taxes Deferred income taxes reflect future tax effects of temporary differences between the tax and financial reporting basis of the Company's assets and liabilities measured using enacted tax laws and statutory tax rates applicable to the periods when the temporary differences will affect taxable income. When necessary, deferred tax assets are reduced by a valuation allowance to reflect realizable value. Accruals are maintained for uncertain tax positions. |
Accounting Standards Adopted | Accounting Standards Adopted In April 2015 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-04, "Compensation—Retirement Benefits (Topic 715) Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets" (ASU 2015-04). The amendments in ASU 2015-04 allow a reporting entity that may incur more costs than other entities when measuring the fair value of plan assets of a defined benefit pension or other postretirement benefit plan at other than a month-end to measure defined benefit plan assets and obligations using the month-end date that is closest to the date of event (such as a plan amendment, settlement, or curtailment that calls for a remeasurement in accordance with existing requirements) that is triggering the remeasurement. In addition, if a contribution or significant event occurs between the month-end date used to measure defined benefit plan assets and obligations and an entity’s fiscal year-end, the entity should adjust the measurement of defined benefit plan assets and obligations to reflect the effects of those contributions or significant events. However, an entity should not adjust the measurement of defined benefit plan assets and obligations for other events that occur between the month-end measurement and the entity’s fiscal year-end that are not caused by the entity (for example, changes in market prices or interest rates). This practical expedient for the measurement date also applies to significant events that trigger a remeasurement in an interim period. An entity electing the practical expedient for the measurement date is required to disclose the accounting policy election and the date used to measure defined benefit plan assets and obligations in accordance with the amendments in ASU 2015-04. ASU 2015-04 is effective for fiscal years beginning after December 15, 2015. The Company may adopt the standard prospectively. Early adoption is permitted. In the fiscal 2016 first quarter the Company elected to early adopt ASU 2015-04 and apply it on a prospective basis. The Company's plan that provides postretirement medical and other benefits was amended on August 25, 2015. As a result of this plan amendment, the Company elected the practical expedient pursuant to this guidance and a valuation was completed using an August 31, 2015 measurement date. In April 2015 the FASB issued ASU No. 2015-03, "Interest—Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs" (ASU 2015-03). The amendments in ASU 2015-03 simplify the presentation of debt issuance costs and require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. In August 2015 the FASB issued ASU No. 2015-15 "Interest—Imputation of Interest (Subtopic 835-30) Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements" (ASU 2015-15). The guidance in ASU 2015-03 does not address presentation or subsequent measurement of debt issuance costs related to line of credit arrangements. Given the absence of authoritative guidance, in ASU 2015-15, FASB adopted SEC staff comments that they would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangement. ASU 2015-03 and 2015-15 are both effective for fiscal years beginning after December 15, 2015. The amendments are required to be applied retrospectively to all prior periods presented and early adoption is permitted. The Company elected to early adopt ASU 2015-03 in fiscal 2016 first quarter and ASU 2015-15 in fiscal 2016 third quarter. Adoption of this guidance did not have a significant impact on the Company's consolidated financial statements, or results of operations for the period since there were no prior period costs it applied to. Debt issuance costs associated with the credit facility discussed further in Note 10 Financing Arrangements have been presented as an asset and are being amortized ratably over the term of the line of credit arrangement. In April 2014 the FASB issued ASU No. 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" (ASU No. 2014-08). ASU No. 2014-08 changes the criteria for determining which disposals should be presented as discontinued operations and modifies the related disclosure requirements. Additionally, this guidance requires that a business that qualifies as held for sale upon acquisition should be reported as discontinued operations. This guidance became effective for the Company on February 1, 2015 and applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The adoption of this guidance did not have an impact on the Company's consolidated financial statements, results of operations, or disclosures. In addition to the accounting pronouncements adopted and described above, the Company adopted various other accounting pronouncements that became effective in fiscal 2016. None of this guidance had a significant impact on the Company's consolidated financial statements, results of operations, or disclosures for the period. |
Accounting Standards Not Yet Adopted | New Accounting Standards Not Yet Adopted In February 2016 the FASB issued ASU No. 2016-02, "Leases (Topic 842)" (ASU 2016-02). The primary difference between previous GAAP and ASU 2016-02 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The guidance requires a lessee to recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. When measuring assets and liabilities arising from a lease, a lessee (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Similarly, optional payments to purchase the underlying asset should be included in the measurement of lease assets and lease liabilities only if the lessee is reasonably certain to exercise that purchase option. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018. Lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial statements, results of operations, and disclosures. In January of 2016, the FASB issued ASU No. 2016-01, " Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. " The updated accounting guidance requires changes to the reporting model for financial instruments. The amendments in this guidance supersede the guidance to classify equity securities with readily determinable fair values into different categories (that is, trading or available-for sale) and require equity securities (including other ownership interests, such as partnerships, unincorporated joint ventures, and limited liability companies to be measured at fair value with changes in the fair value recognized through net income. An entity’s equity investments that are accounted for under the equity method of accounting or result in consolidation of an investee are not included within the scope of this update. The amendments also require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or in the accompanying notes to the financial statements. This guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early application guidance is provided by the update but except as discussed in the guidance, early adoption is not permitted. The Company is currently evaluating the effect the updated guidance will have on the Company's financial statements, results of operations, and disclosures. In November 2015 the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes" (ASU 2015-17). Current GAAP requires the deferred taxes for each jurisdiction (or tax-paying component of a jurisdiction) to be presented as a net current asset or liability and net noncurren t asset or liability. This requires a jurisdiction-by-jurisdiction analysis based on the classification of the assets and liabilities to which the underlying temporary differences relate, or, in the case of loss or credit carryforwards, based on the period in which the attribute is expected to be realized. Any valuation allowance is then required to be allocated on a pro rata basis, by jurisdiction, between current and noncurrent deferred tax assets. To simplify presentation, ASU 2015-17 requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. As a result, each jurisdiction will now only have one net noncurrent deferred tax asset or liability. The guidance does not change the existing requirement that only permits offsetting within a jurisdiction - that is, companies are still prohibited from offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016. The Company may apply the standard either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early adoption is permitted. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial statements and working capital. In September 2015 the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805) Simplifying the Accounting for Measurement-Period Adjustments" (ASU 2015-16). The amendments in ASU 2015-16 apply to all entities that have reported provisional amounts for items in a business combination for which the accounting is incomplete by the end of the reporting period in which the combination occurs and, during the measurement period, have an adjustment to provisional amounts recognized. ASU 2015-16 requires that an acquirer in a business combination recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 requires that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this update require an entity to present separately on the face of the income statement, or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. ASU 2015-16 is to be applied prospectively to adjustments to provisional amounts that occur after the effective date of the update with earlier application permitted for financial statements that have not been issued. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial statements, results of operations, and disclosures. In July 2015 the FASB issued ASU No. 2015-11, "Inventory (Topic 330) Simplifying the Measurement of Inventory" (ASU 2015-11). The amendments in ASU 2015-11 clarify that an entity should measure inventory within the scope of this update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Substantial and unusual losses that result from subsequent measurement of inventory should be disclosed in the financial statements. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments are to be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial statements, results of operations, and disclosures. In April 2015 the FASB issued ASU No. 2015-05, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement" (ASU 2015-05). The amendments in ASU 2015-05 clarify existing GAAP guidance about a customer’s accounting for fees paid in a cloud computing arrangement with or without a software license. Examples of cloud computing arrangements include software as a service, platform as a service, infrastructure as a service, and other similar hosting arrangements. ASU 2015-05 adds guidance to Subtopic 350-40, Intangibles-Goodwill and Other-Internal-Use Software, which will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance does not change GAAP for a customer’s accounting for service contracts. All software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. ASU 2015-05 is effective for fiscal years beginning after December 15, 2015. The amendments may be applied prospectively to all arrangements entered into or materially altered after the effective date or retrospectively to all prior periods presented. Early adoption is permitted. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial position, results of operations, and cash flows. In February 2015 the FASB issued ASU No. 2015-02, "Consolidation (Topic 810) Amendments to the Consolidation Analysis" (ASU 2015-02). The amendments in ASU 2015-02 affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: 1. Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; 2. Eliminate the presumption that a general partner should consolidate a limited partnership; 3. Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and 4. Provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940. ASU 2015-02 is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. ASU 2015-02 may be applied retrospectively or using a modified retrospective approach. The Company is evaluating the impact of this guidance on its consolidated legal entities and on its consolidated financial position, results of operations, and cash flows. In May 2014 the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" (ASU 2014-09). ASU 2014-09 provides a comprehensive new recognition model that requires recognition of revenue when a company transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to receive in exchange for those goods or services. This guidance supersedes the revenue recognition requirements in FASB ASC Topic 605, “Revenue Recognition,” and most industry-specific guidance. ASU 2014-09 defines a five-step process to achieve this core principle and, in doing so, companies will need to use more judgment and make more estimates than under the current guidance. It also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts. In August 2015, the FASB approved a one-year deferral of the effective date (ASU 2015-14) and the standard is now effective for the Company for fiscal 2019 and interim periods therein. ASU 2014-09 may be adopted as of the original effective date, which for the Company is fiscal 2018. The guidance may be applied using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently evaluating the method and date of adoption and the impact the adoption of ASU 2014-09 will have on the Company’s consolidated financial position, results of operations, and disclosures. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Estimated useful lives used for computing depreciation | The estimated useful lives used for computing depreciation are as follows: Building and improvements 15 - 39 years Manufacturing equipment by segment Applied Technology 3 - 5 years Engineered Films 5 - 12 years Aerostar 3 - 5 years Furniture, fixtures, office equipment, and other 3 - 7 years |
Operating expenses classification within income statement | The primary types of operating expenses are classified in the income statement as follows: Cost of sales Research and development expenses Selling, general and administrative expenses Direct material costs Material acquisition and handling costs Direct labor Factory overhead including depreciation and amortization Inventory obsolescence Product warranties Shipping and handling cost Personnel costs Professional service fees Material and supplies Facility allocation Personnel costs Professional service fees Advertising Promotions Information technology equipment depreciation Office supplies Facility allocation |
Selected Balance Sheet Inform28
Selected Balance Sheet Information (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Selected Balance Sheet Information [Abstract] | |
Selected Balance Sheet Information | Following are the components of selected balance sheet items: As of January 31, 2016 2015 2014 Accounts receivable, net: Trade accounts $ 39,103 $ 56,895 $ 54,962 Allowance for doubtful accounts (1,034 ) (319 ) (319 ) $ 38,069 $ 56,576 $ 54,643 Inventories: Finished goods $ 4,896 $ 8,127 $ 7,232 In process 1,845 1,317 2,131 Materials 39,147 45,708 45,502 $ 45,888 $ 55,152 $ 54,865 Other current assets: Insurance policy benefit $ 716 $ 733 $ 733 Federal income tax receivable 2,176 713 1,197 Prepaid expenses and other 1,992 1,648 1,358 $ 4,884 $ 3,094 $ 3,288 Property, plant and equipment, net: Held for use: Land $ 3,054 $ 3,246 $ 2,077 Buildings and improvements 77,827 78,140 66,278 Machinery and equipment 140,995 131,766 114,345 Accumulated depreciation (106,514 ) (96,545 ) (84,624 ) $ 115,362 $ 116,607 $ 98,076 Held for sale: Land $ 244 $ 11 $ — Buildings and improvements 1,595 1,522 — Machinery and equipment 329 — — Accumulated depreciation (1,368 ) (627 ) — 800 906 — $ 116,162 $ 117,513 $ 98,076 Other assets: Investment in affiliate $ 2,805 $ 3,217 $ 3,684 Other 1,322 526 224 $ 4,127 $ 3,743 $ 3,908 Accrued liabilities: Salaries and related $ 1,883 $ 4,063 $ 2,210 Benefits 3,864 5,001 5,538 Insurance obligations 1,730 1,590 1,598 Warranties 1,835 3,120 2,525 Income taxes 475 536 362 Other taxes 1,117 1,240 1,097 Acquisition-related contingent consideration 407 1,375 890 Other 731 2,262 2,028 $ 12,042 $ 19,187 $ 16,248 Other liabilities: Postretirement benefits $ 7,662 $ 11,812 $ 7,998 Acquisition-related contingent consideration 2,499 3,631 2,457 Deferred income taxes 5,426 7,091 3,526 Uncertain tax positions 3,339 3,259 6,557 $ 18,926 $ 25,793 $ 20,538 |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in components of accumulated other comprehensive income (loss) | The changes in the components of accumulated other comprehensive income (loss) (AOCI) are shown below: Cumulative foreign currency translation adjustment Postretirement benefits Total Balance at January 31, 2013 $ 142 $ (2,237 ) $ (2,095 ) Other comprehensive (loss) before reclassifications (424 ) — (424 ) Amounts reclassified from accumulated other comprehensive (loss) after tax expense of ($183) — 340 340 Balance at January 31, 2014 (282 ) (1,897 ) (2,179 ) Other comprehensive (loss) before reclassifications (1,466 ) — (1,466 ) Amounts reclassified from accumulated other comprehensive (loss) after tax benefit of $1,187 — (2,204 ) (2,204 ) Balance at January 31, 2015 (1,748 ) (4,101 ) (5,849 ) Other comprehensive (loss) before reclassifications (729 ) — (729 ) Amounts reclassified from accumulated other comprehensive (loss) after tax expense of ($1,620) — 3,077 3,077 Balance at January 31, 2016 $ (2,477 ) $ (1,024 ) $ (3,501 ) |
Supplemental Cash Flow Inform30
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow information | For the years ended January 31, 2016 2015 2014 Changes in operating assets and liabilities: Accounts receivable $ 16,847 $ 4,699 $ 1,297 Inventories 7,516 6,753 (9,190 ) Prepaid expenses and other assets (111 ) 195 (239 ) Accounts payable (5,059 ) (3,578 ) (994 ) Accrued and other liabilities (8,978 ) 48 (1,150 ) Customer advances (368 ) (144 ) (173 ) $ 9,847 $ 7,973 $ (10,449 ) Supplemental disclosures of cash flow information: Cash paid during the year for income taxes $ 6,558 $ 14,011 $ 20,002 Interest paid $ 129 $ 160 $ — Significant non-cash transactions: Issuance of common stock for business acquisition $ — $ 39,252 $ — Capital expenditures included in accounts payable $ 161 $ 564 $ 1,083 Capital expenditures converted from inventory $ 1,036 $ 491 $ 418 |
Acquisitions of and Investmen31
Acquisitions of and Investments in Businesses and Technologies (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Business Combinations [Abstract] | |
Total purchase price allocated to the estimated fair values of assets acquired and liabilities assumed | The total purchase price allocated to the estimated fair values of assets acquired and liabilities assumed as follows: Cash $ 1,600 Accounts receivable 4,808 Inventory 7,575 Deferred income taxes 543 Other current assets 24 Property, plant and equipment, net 17,088 Goodwill 27,422 Customer relationships and other definite-lived intangibles 10,200 Short-term and long-term debt (11,341 ) Current liabilities (4,084 ) Other liabilities (5,573 ) Total purchase price $ 48,262 |
Pro forma consolidated condensed financial results of operations | The following pro forma consolidated condensed financial results of operations are presented as if the fiscal year 2015 acquisitions described above had been completed at the beginning of the period presented (unaudited): (Unaudited) For the year ended January 31, 2015 2014 Net sales $ 408,906 $ 431,917 Net income attributable to Raven Industries, Inc. 34,424 45,747 Earnings per common share: Basic $ 0.90 $ 1.20 Diluted $ 0.90 $ 1.20 |
Changes in the net carrying value of the investment in SST | Changes in the net carrying value of the investment in SST were as follows: As of January 31, 2016 2015 2014 Balance at beginning of year $ 3,217 $ 3,684 $ 4,063 Income from equity investment 83 28 116 Amortization of intangible assets (495 ) (495 ) (495 ) Balance at end of year $ 2,805 $ 3,217 $ 3,684 |
Goodwill & Other Intangibles (T
Goodwill & Other Intangibles (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill by reporting segment | The changes in the carrying amount of goodwill by reporting unit are shown below: Applied Technology Engineered Films Aerostar (exc. Vista) Vista Total Balance at January 31, 2013 $ 9,892 $ 96 $ 789 $ 11,497 $ 22,274 Balance at January 31, 2014 9,892 96 789 11,497 22,274 Acquired goodwill 3,250 27,216 — — 30,466 Foreign currency translation adjustment (592 ) — — — (592 ) Balance at January 31, 2015 12,550 27,312 789 11,497 52,148 Purchase price adjustment to acquired goodwill (a) — 206 — — 206 Goodwill disposed from sale of business (69 ) — — — (69 ) Goodwill impairment loss — — — (7,413 ) (7,413 ) Foreign currency translation adjustment (116 ) — — — (116 ) Balance at January 31, 2016 $ 12,365 $ 27,518 $ 789 $ 4,084 $ 44,756 |
Gross carrying amount and related accumulated amortization of definite-lived intangible assets | The following table provides the gross carrying amount and related accumulated amortization of definite-lived intangible assets: For the years ended January 31, 2016 2015 2014 Accumulated Accumulated Accumulated Amount Amortization Net Amount Amortization Net Amount Amortization Net Existing technology $ 8,825 $ (6,487 ) $ 2,338 $ 8,870 $ (5,239 ) $ 3,631 $ 7,840 $ (4,164 ) $ 3,676 Customer relationships 14,101 (2,794 ) 11,307 14,128 (1,271 ) 12,857 3,494 (525 ) 2,969 Other intangibles 4,065 (1,878 ) 2,187 3,657 (1,655 ) 2,002 2,891 (1,380 ) 1,511 Total $ 26,991 $ (11,159 ) $ 15,832 $ 26,655 $ (8,165 ) $ 18,490 $ 14,225 $ (6,069 ) $ 8,156 |
The estimated future amortization expense for identifiable intangible assets | The estimated future amortization expense for these definite-lived intangible assets, as well as definite-lived intangible assets held by SST, during the next five years is as follows: 2017 2018 2019 2020 2021 Estimated amortization expense $ 3,514 $ 2,873 $ 2,018 $ 1,464 $ 1,067 |
Employee Retirement Benefits (T
Employee Retirement Benefits (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
The accumulated benefit obligation | The accumulated benefit obligation, including the impact of the August 31, 2015 remeasurement resulting from the plan amendment, for these benefits is as follows: For the years ended January 31, 2016 2015 2014 Benefit obligation at beginning of year $ 12,125 $ 8,254 $ 8,307 Service cost 285 195 202 Interest cost 386 366 348 Amendments (958 ) — — Actuarial (gain) loss and assumption changes (3,544 ) 3,543 (340 ) Retiree benefits paid (303 ) (233 ) (263 ) Benefit obligation at end of year $ 7,991 $ 12,125 $ 8,254 |
Schedule of pre-tax accumulated other comprehensive income related to benefit obligation and net periodic benefit cost not yet recognized | The following tables set forth the plan's pre-tax adjustment to accumulated other comprehensive income/loss: For the years ended January 31, 2016 2015 2014 Amounts not yet recognized in net periodic benefit cost: Net actuarial loss $ 2,504 $ 6,309 $ 2,918 Prior service cost (892 ) — — Total pre-tax accumulated other comprehensive loss $ 1,612 $ 6,309 $ 2,918 Pre-tax accumulated other comprehensive loss - beginning of year related to benefit obligation $ 6,309 $ 2,918 $ 3,441 Reclassification adjustments recognized in benefit cost: Recognized net (loss) (261 ) (152 ) (183 ) Amortization of prior service cost 66 — — Amounts recognized in AOCI during the year: Prior service cost from amendments (958 ) — — Net actuarial (gain) loss (3,544 ) 3,543 (340 ) Pre-tax accumulated other comprehensive loss - end of year related to benefit obligation $ 1,612 $ 6,309 $ 2,918 |
The liability and expense reflected in the balance sheet and income statement | The liability and net periodic benefit cost reflected in the Consolidated Balance Sheets and Consolidated Statements of Income and Comprehensive Income were as follows: For the years ended January 31, 2016 2015 2014 Beginning liability balance $ 12,125 $ 8,254 $ 8,307 Net periodic benefit cost 866 713 733 Other comprehensive (income) loss (4,697 ) 3,391 (523 ) Total recognized in net periodic benefit cost and other comprehensive income (3,831 ) 4,104 210 Retiree benefits paid (303 ) (233 ) (263 ) Ending liability balance $ 7,991 $ 12,125 $ 8,254 Current portion in accrued liabilities $ 329 $ 313 $ 255 Long-term portion in other liabilities $ 7,662 $ 11,812 $ 7,999 Assumptions used to calculate benefit obligation: Discount rate 4.25 % 3.50 % 4.50 % Rate of compensation increase 4.00 % 4.00 % 4.00 % Health care cost trend rates: Health care cost trend rate assumed for next year 6.83% (a) | 7.00% (b) 7.20 % 7.70 % Ultimate health care cost trend rate 4.50% (a) | 5 .00% (b) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2030 (a) | 2025 (b) 2025 2025 Assumptions used to calculated the net periodic benefit cost: Discount rate 4.25% (a) | 3.50% (b) 4.50 % 4.25 % Rate of compensation increase 4.00 % 4.00 % 4.00 % (a) Assumptions used for the five months of fiscal 2016 following the August 31, 2015 remeasurement. (b) Assumptions used for the seven months of fiscal 2016 prior to the plan amendment triggering the August 31, 2015 remeasurement. |
Effect of one-percentage-point change in assumed health care cost trend rates | The impact of a one-percentage point change in assumed health care rates would have the following effects: January 31, 2016 One-percentage-point increase One-percentage-point decrease Effect on total of service and interest cost components $ 89 $ (68 ) Effect on accumulated postretirement benefit obligation $ 1,445 $ (1,129 ) |
Schedule of future postretirement other pension benefit payments | The following postretirement other than pension benefit payments, which reflect expected future service as appropriate, are expected to be paid: Fiscal 2017 $ 329 Fiscal 2018 350 Fiscal 2019 352 Fiscal 2020 347 Fiscal 2021 - 2025 2,299 |
Warranties (Tables)
Warranties (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Product Warranty Costs [Abstract] | |
Warranties | Changes in the warranty accrual were as follows: For the years ended January 31, 2016 2015 2014 Beginning balance $ 3,120 $ 2,525 $ 1,888 Acquired — 50 — Accrual for warranties 1,945 3,467 4,561 Settlements made (3,230 ) (2,922 ) (3,924 ) Ending balance $ 1,835 $ 3,120 $ 2,525 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of income tax computed at the federal statutory rate to the company's effective income tax rate | The reconciliation of income tax computed at the federal statutory rate to the Company's effective income tax rate was as follows: For the years ended January 31, 2016 2015 2014 Tax at U.S. federal statutory rate 35.0 % 35.0 % 35.0 % State and local income taxes, net of U.S. federal tax benefit 2.1 (0.3 ) 1.5 Tax credit for research activities (8.8 ) (3.9 ) (1.2 ) Tax benefit on insurance premiums (3.9 ) (1.0 ) — Tax benefit on qualified production activities (3.8 ) (3.6 ) (2.9 ) Other, net — 0.7 0.2 20.6 % 26.9 % 32.6 % |
Significant components of the company's income tax provision | Significant components of the Company's income tax provision were as follows: For the years ended January 31, 2016 2015 2014 Income taxes: Currently payable $ 5,242 $ 12,663 $ 20,098 Deferred (benefit) expense (3,021 ) (958 ) 623 $ 2,221 $ 11,705 $ 20,721 |
Significant components of the company's deferred tax assets and liabilities | Significant components of the Company's deferred tax assets and liabilities were as follows: As of January 31, 2016 2015 2014 Current deferred tax assets: Accounts receivable $ 355 $ 194 $ 111 Inventories 602 873 583 Accrued vacation 836 940 1,032 Insurance obligations 350 271 276 Accrued benefit liabilities 99 261 291 Warranty obligations 670 1,225 898 Other accrued liabilities 198 194 181 3,110 3,958 3,372 Non-current deferred tax assets (liabilities): Postretirement benefits 2,797 4,243 2,799 Depreciation and amortization (12,195 ) (16,099 ) (11,522 ) Uncertain tax positions 1,047 1,002 2,219 Share-based compensation 3,593 4,410 3,196 Other (668 ) (647 ) (218 ) (5,426 ) (7,091 ) (3,526 ) Net deferred tax (liability) $ (2,316 ) $ (3,133 ) $ (154 ) |
Summary of the activity related to the gross unrecognized tax benefits (excluding interest and penalties) | A summary of the activity related to the gross unrecognized tax benefits (excluding interest and penalties) is as follows: For the years ended January 31, 2016 2015 2014 Gross unrecognized tax benefits at beginning of year $ 2,307 $ 4,660 $ 4,213 Increases in tax positions related to the current year 209 909 795 Decreases as a result of lapses in applicable statutes of limitation (227 ) (393 ) (348 ) Tax settlement with tax authorities — (2,869 ) — Gross unrecognized tax benefits at end of year $ 2,289 $ 2,307 $ 4,660 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of changes in outstanding debt | The changes in the outstanding debt are shown below: Line of credit Long-term notes Notes with former owners and others Debt Outstanding Balance at January 31, 2013 $ — $ — $ — $ — Balance at January 31, 2014 — — — — Acquired in business combination 1,465 9,876 648 11,989 Additional borrowings 2,127 — — 2,127 Debt repayment (3,592 ) (9,876 ) (648 ) (14,116 ) Balance at January 31, 2015 $ — $ — $ — $ — Balance at January 31, 2016 $ — $ — $ — $ — (a) The line of credit and long-term notes were assumed in the Integra business combination. The notes with former owners and others were assumed in the SBG business combination. |
Future minimum lease payments under non-cancelable operating leases | Future minimum lease payments under non-cancelable operating leases are as follows: 2017 2018 2019 2020 2021 Thereafter Minimum lease payments $ 1,661 $ 1,394 $ 1,126 $ 1,150 $ 1,179 $ — |
Share Based Compensation (Table
Share Based Compensation (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Share-based Compensation [Abstract] | |
The compensation cost and related income tax benefit for these plans | The compensation cost and related income tax benefit for these plans were as follows: For the years ended January 31, 2016 2015 2014 Share-based compensation cost $ 2,311 $ 4,213 $ 4,198 Tax (expense) benefit (692 ) 1,504 1,460 |
Weighted average assumptions by grant year | The weighted average assumptions used for the Black-Scholes option pricing model by grant year are as follows: For the years ended January 31, 2016 2015 2014 Risk-free interest rate 1.33 % 1.32 % 0.59 % Expected dividend yield 2.59 % 1.53 % 1.46 % Expected volatility factor 36.81 % 38.65 % 41.39 % Expected option term (in years) 3.75 4.00 3.75 Weighted average grant date fair value $ 4.77 $ 9.18 $ 9.34 |
Outstanding stock options | Outstanding stock options as of January 31, 2016 and activity for the year then ended are presented below: Number Weighted average exercise price Aggregate intrinsic value Weighted Outstanding, January 31, 2015 1,015,275 $ 29.04 Granted 289,600 20.09 Exercised (50,000 ) 15.49 Forfeited (72,400 ) 27.42 Expired (256,525 ) 24.18 Outstanding, January 31, 2016 925,950 $ 28.44 $ — 2.48 Outstanding exercisable, January 31, 2016 453,425 $ 31.30 $ — 1.48 |
Activity for RSUs under the Plan | Activity for performance-based RSUs under the Plan in fiscal 2016 was as follows: Number Weighted Outstanding, January 31, 2015 152,439 $ 32.40 Granted 68,570 20.09 Vested (52,502 ) 31.66 Forfeited (17,783 ) 28.27 Performance-based adjustment (84,656 ) 29.02 Outstanding, January 31, 2016 66,068 $ 25.65 Cumulative dividends, January 31, 2016 7,557 Activity for time-vested RSUs under the Plan in fiscal 2016 was as follows: Number Weighted Outstanding, January 31, 2015 68,137 $ 31.27 Granted 39,025 19.25 Vested (18,526 ) 31.66 Forfeited (6,710 ) 29.97 Outstanding, January 31, 2016 81,926 $ 25.53 Cumulative dividends, January 31, 2016 3,107 |
Outstanding stock units | Outstanding stock units as of January 31, 2016 and changes during the year then ended are presented below: Number Weighted Outstanding, January 31, 2015 69,347 $ 21.44 Granted 18,721 19.23 Deferred retainers 3,120 19.23 Dividends 2,546 17.67 Outstanding, January 31, 2016 93,734 $ 20.82 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The options and restricted stock units excluded from the diluted net income per share calculation were as follows: For the years ended January 31, 2016 2015 2014 Anti-dilutive options and restricted stock units 1,107,733 781,988 577,213 |
Schedule of calculation of numerator and denominator in earnings per share | The computation of earnings per share is presented below: For the years ended January 31, 2016 2015 2014 Numerator: Net income attributable to Raven Industries, Inc. $ 8,489 $ 31,733 $ 42,903 Denominator: Weighted average common shares outstanding 37,237,717 36,859,026 36,379,356 Weighted average stock units outstanding 86,745 69,484 67,724 Denominator for basic calculation 37,324,462 36,928,510 36,447,080 Weighted average common shares outstanding 37,237,717 36,859,026 36,379,356 Weighted average stock units outstanding 86,745 69,484 67,724 Dilutive impact of stock options and RSUs 75,481 174,784 198,295 Denominator for diluted calculation 37,399,943 37,103,294 36,645,375 Net income per share - basic $ 0.23 $ 0.86 $ 1.18 Net income per share - diluted $ 0.23 $ 0.86 $ 1.17 |
Business Segments and Major C39
Business Segments and Major Customer Information (Tables) | 12 Months Ended |
Jan. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment reporting information | Business segment information is as follows: For the years ended January 31, 2016 2015 2014 APPLIED TECHNOLOGY DIVISION Sales $ 92,599 $ 142,154 $ 170,461 Operating income (a) 18,319 34,557 57,000 Assets (b) 65,490 88,764 93,395 Capital expenditures 664 3,478 9,324 Depreciation and amortization 4,428 5,569 4,332 ENGINEERED FILMS DIVISION Sales $ 129,465 $ 166,634 $ 147,620 Operating income 17,892 21,802 18,154 Assets (b) 134,942 140,023 71,602 Capital expenditures 10,780 8,241 6,681 Depreciation and amortization 7,735 6,096 5,808 AEROSTAR DIVISION Sales $ 36,368 $ 80,772 $ 90,605 Operating income (c) (8,100 ) 8,983 7,816 Assets (b) 40,156 59,274 63,017 Capital expenditures 941 2,799 7,507 Depreciation and amortization 3,770 3,474 2,616 INTERSEGMENT ELIMINATIONS Sales Applied Technology Division (8 ) (231 ) (386 ) Engineered Films Division (195 ) (652 ) (505 ) Aerostar Division — (10,524 ) (13,118 ) Operating income 91 163 (111 ) Assets (57 ) (148 ) (311 ) REPORTABLE SEGMENTS TOTAL Sales $ 258,229 $ 378,153 $ 394,677 Operating income 28,202 65,505 82,859 Assets 240,531 287,913 227,703 Capital expenditures 12,385 14,518 23,512 Depreciation and amortization 15,933 15,139 12,756 CORPORATE & OTHER Operating (loss) from administrative expenses $ (17,110 ) $ (21,704 ) $ (18,865 ) Assets (b) (d) 66,079 74,960 74,116 Capital expenditures 661 2,523 7,189 Depreciation and amortization 1,676 2,230 1,439 TOTAL COMPANY Sales $ 258,229 $ 378,153 $ 394,677 Operating income 11,092 43,801 63,994 Assets 306,610 362,873 301,819 Capital expenditures 13,046 17,041 30,701 Depreciation and amortization 17,609 17,369 14,195 (a) The fiscal year ended January 31, 2016 includes gains of $611 on disposal of assets related to the exit of contract manufacturing operations. (b) Certain facilities owned by the Company are shared by more than one reporting segment. Beginning with fiscal year 2016 all facilities are reported as an asset based on the segment that acquired the asset as we believe this better reflects total assets of the business segment. In prior fiscal years (which have not been recast in this table), the book value of certain shared facilities was allocated across reporting segments based on usage. Expenses and costs related to these facilities including depreciation expense, are allocated and reported in each reporting segment's operating income for each fiscal year presented. (c) The fiscal year ended January 31, 2016 includes pre-contract cost write-offs of $2,933 , a goodwill impairment loss of $7,413 , and a $1,483 reduction of an acquisition-related contingent liability for Vista as a result of changes in expected sales and cash flows. (d) Assets are principally cash, investments, deferred taxes, and other receivables. |
Net sales to customers outside the United States | Foreign sales are attributed to countries based on location of the customer. Net sales to customers outside the United States were as follows: For the years ended January 31, 2016 2015 2014 Canada $ 11,789 $ 14,432 $ 16,141 Europe 10,526 8,243 4,131 Latin America 2,676 9,921 22,124 Other foreign sales 2,858 4,239 3,497 Total foreign sales 27,849 36,835 45,893 United States 230,380 341,318 348,784 $ 258,229 $ 378,153 $ 394,677 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016USD ($)Divisions | Jan. 31, 2015USD ($) | Jan. 31, 2014USD ($) | |
Basis of Presentation and Principles of Consolidation | |||
Number of divisions operated in by Parent | Divisions | 3 | ||
Investments [Abstract] | |||
Percentage of voting interest acquired | 22.00% | ||
Pre-Contract Costs [Abstract] | |||
Pre-contract deferred costs written off | $ 0 | $ 0 | |
Pre-contract costs deferred to inventory | $ 0 | 0 | |
Property, Plant and Equipment [Abstract] | |||
Capitalized software costs | $ 0 | $ 0 | $ 203 |
Minimum [Member] | |||
Intangible Assets | |||
Finite-lived intangible assets, useful life, minimum, years | 3 years | ||
Maximum [Member] | |||
Intangible Assets | |||
Finite-lived intangible assets, useful life, minimum, years | 20 years | ||
Building and Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment useful lives | 15 years | ||
Building and Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment useful lives | 39 years | ||
Machinery and Equipment [Member] | Applied Technology [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment useful lives | 3 years | ||
Machinery and Equipment [Member] | Applied Technology [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment useful lives | 5 years | ||
Machinery and Equipment [Member] | Engineered Films [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment useful lives | 5 years | ||
Machinery and Equipment [Member] | Engineered Films [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment useful lives | 12 years | ||
Machinery and Equipment [Member] | Aerostar [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment useful lives | 3 years | ||
Machinery and Equipment [Member] | Aerostar [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment useful lives | 5 years | ||
Furniture, Fixtures, Office Equipment and Other [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment useful lives | 3 years | ||
Furniture, Fixtures, Office Equipment and Other [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment useful lives | 7 years | ||
Software Development [Member] | All Segments [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment useful lives | 3 years | ||
Software Development [Member] | All Segments [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Abstract] | |||
Property, plant and equipment useful lives | 5 years | ||
Aerostar Integrated Systems [Member] | |||
Noncontrolling Interest | |||
Joint venture, ownership percentage | 75.00% |
Selected Balance Sheet Inform41
Selected Balance Sheet Information (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Accounts receivable, net: | ||||
Trade accounts | $ 39,103 | $ 56,895 | $ 54,962 | |
Allowance for doubtful accounts | (1,034) | (319) | (319) | |
Accounts receivable, net | 38,069 | 56,576 | 54,643 | |
Inventories: | ||||
Finished goods | 4,896 | 8,127 | 7,232 | |
In process | 1,845 | 1,317 | 2,131 | |
Materials | 39,147 | 45,708 | 45,502 | |
Inventories | 45,888 | 55,152 | 54,865 | |
Other current assets: | ||||
Insurance policy benefit | 716 | 733 | 733 | |
Federal income taxes receivable | 2,176 | 713 | 1,197 | |
Prepaid expenses and other | 1,992 | 1,648 | 1,358 | |
Other current assets | 4,884 | 3,094 | 3,288 | |
Property, plant and equipment, net: | ||||
Property, plant and equipment, net | 116,162 | 117,513 | 98,076 | |
Other assets: | ||||
Investment in affiliate | 2,805 | 3,217 | 3,684 | |
Other | 1,322 | 526 | 224 | |
Other assets | 4,127 | 3,743 | 3,908 | |
Accrued liabilities: | ||||
Salaries and related | 1,883 | 4,063 | 2,210 | |
Benefits | 3,864 | 5,001 | 5,538 | |
Insurance obligations | 1,730 | 1,590 | 1,598 | |
Warranties | 1,835 | 3,120 | 2,525 | $ 1,888 |
Accrued Income Taxes, Current | 475 | 536 | 362 | |
Other taxes | 1,117 | 1,240 | 1,097 | |
Fair value of contingent consideration liability, current | 407 | 1,375 | 890 | |
Other | 731 | 2,262 | 2,028 | |
Accrued liabilities | 12,042 | 19,187 | 16,248 | |
Other liabilities: | ||||
Postretirement benefits | 7,662 | 11,812 | 7,998 | |
Fair value of contingent consideration liability, non current | 2,499 | 3,631 | 2,457 | |
Deferred income taxes | 5,426 | 7,091 | 3,526 | |
Uncertain tax positions | 3,339 | 3,259 | 6,557 | |
Other liabilities | 18,926 | 25,793 | 20,538 | |
Machinery and Equipment [Member] | ||||
Property, plant and equipment, net: | ||||
Property, Plant and Equipment, Gross | 329 | 0 | 0 | |
Land [Member] | ||||
Property, plant and equipment, net: | ||||
Property, Plant and Equipment, Gross | 244 | 11 | 0 | |
Building and Improvements [Member] | ||||
Property, plant and equipment, net: | ||||
Property, Plant and Equipment, Gross | 1,595 | 1,522 | 0 | |
Assets Held-for-sale [Member] | ||||
Property, plant and equipment, net: | ||||
Accumulated depreciation | (1,368) | (627) | 0 | |
Property, plant and equipment, net | 800 | 906 | 0 | |
Land [Member] | ||||
Property, plant and equipment, net: | ||||
Property, Plant and Equipment, Gross | 3,054 | 3,246 | 2,077 | |
Building and Improvements [Member] | ||||
Property, plant and equipment, net: | ||||
Property, Plant and Equipment, Gross | 77,827 | 78,140 | 66,278 | |
Machinery and Equipment [Member] | ||||
Property, plant and equipment, net: | ||||
Property, Plant and Equipment, Gross | 140,995 | 131,766 | 114,345 | |
Assets held for use [Member] | ||||
Property, plant and equipment, net: | ||||
Accumulated depreciation | (106,514) | (96,545) | (84,624) | |
Property, plant and equipment, net | 115,362 | 116,607 | 98,076 | |
Assets held for use [Member] | Assets Held-for-sale [Member] | ||||
Property, plant and equipment, net: | ||||
Property, plant and equipment, net | $ 116,162 | $ 117,513 | $ 98,076 |
Accumulated Other Comprehensi42
Accumulated Other Comprehensive Income (Loss) - Change in component of accumulated comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | $ (5,849) | $ (2,179) | $ (2,095) |
Other comprehensive (loss) before reclassifications | (729) | (1,466) | (424) |
Amounts reclassified from accumulated other comprehensive (loss) after tax benefit (expense) | 3,077 | (2,204) | 340 |
Balance at end of period | (3,501) | (5,849) | (2,179) |
Income tax (expense) benefit on postretirement benefits | (1,620) | 1,187 | (183) |
Cumulative Foreign Currency Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | (1,748) | (282) | 142 |
Other comprehensive (loss) before reclassifications | (729) | (1,466) | (424) |
Amounts reclassified from accumulated other comprehensive (loss) after tax benefit (expense) | 0 | 0 | 0 |
Balance at end of period | (2,477) | (1,748) | (282) |
Postretirement Benefits [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of period | (4,101) | (1,897) | (2,237) |
Other comprehensive (loss) before reclassifications | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive (loss) after tax benefit (expense) | 3,077 | (2,204) | 340 |
Balance at end of period | $ (1,024) | $ (4,101) | $ (1,897) |
Supplemental Cash Flow Inform43
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | $ 16,847 | $ 4,699 | $ 1,297 |
Inventories | 7,516 | 6,753 | (9,190) |
Prepaid expenses and other assets | (111) | 195 | (239) |
Accounts payable | (5,059) | (3,578) | (994) |
Accrued and other liabilities | (8,978) | 48 | (1,150) |
Customer advances | (368) | (144) | (173) |
Other operating activities, net | 9,847 | 7,973 | (10,449) |
Cash paid during the year for income taxes | 6,558 | 14,011 | 20,002 |
Interest Paid | 129 | 160 | 0 |
Significant non-cash transactions: | |||
Issuance of common stock for business acquisition | 0 | 39,252 | 0 |
Capital Expenditures Incurred but Not yet Paid | 161 | 564 | 1,083 |
Capital expenditures converted from inventory | $ 1,036 | $ 491 | $ 418 |
Acquisitions of and Investmen44
Acquisitions of and Investments in Businesses and Technologies (Details) - USD ($) | Nov. 03, 2014 | May. 01, 2014 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2013 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 44,756,000 | $ 52,148,000 | $ 22,274,000 | $ 22,274,000 | ||
Fair value of contingent consideration liability, current | 407,000 | 1,375,000 | 890,000 | |||
Fair value of contingent consideration liability, non current | 2,499,000 | 3,631,000 | 2,457,000 | |||
Cash paid to settle outstanding contingent consideration | $ (814,000) | (533,000) | (353,000) | |||
Percentage of voting interest acquired | 22.00% | |||||
Integra Plastics [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Date of acquisition agreement | Nov. 3, 2014 | |||||
Name of acquired entity | Integra Plastics, Inc. | |||||
Total purchase price from business acquisition | $ 48,200,000 | |||||
Number of shares issued | 1,541,696 | |||||
Value of company's common stock | $ 39,252,000 | |||||
Cash payments to acquire entity | 9,361,000 | |||||
Amount received in settlement of the working capital adjustment to the purchase price | $ (351,000) | |||||
Adjustment to purchase price allocation | 20,000 | |||||
Goodwill | 27,422,000 | 27,422,000 | ||||
Amount of goodwill that is tax deductible | 0 | |||||
Business acquisition-related debt, outstanding balance | 0 | |||||
Revenue of acquiree since acquisition date | 5,627,000 | |||||
Net loss since acquisition date | (874,000) | |||||
SBG Innovatiie and affiliate [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Date of acquisition agreement | May 1, 2014 | |||||
Total purchase price from business acquisition | $ 5,000,000 | |||||
Goodwill | 3,250,000 | |||||
Amount of goodwill that is tax deductible | 0 | |||||
Amount of identifiable intangible assets acquired | 2,104,000 | |||||
Business acquisition-related debt, outstanding balance | 0 | |||||
Revenue of acquiree since acquisition date | 3,245,000 | |||||
Net loss since acquisition date | 152,000 | |||||
Maximum amount of contingent consideration to be paid | $ 2,500,000 | |||||
Duration for payments of contingent consideration | 10 years | |||||
Acquisition-related contingent liability, Total | 1,499,000 | 1,432,000 | ||||
Fair value of contingent consideration liability, current | 249,000 | 236,000 | ||||
Fair value of contingent consideration liability, non current | 1,250,000 | 1,196,000 | ||||
Business acquisition contingent consideration, cumulative amount paid | 308,000 | |||||
Cash paid to settle outstanding contingent consideration | $ 229,000 | 79,000 | ||||
SBG Innovatie [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Name of acquired entity | SBG Innovatie BV | |||||
Navtronics [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Name of acquired entity | Navtronics BVBA | |||||
Vista Research [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Date of acquisition agreement | Jan. 6, 2012 | |||||
Maximum amount of contingent consideration to be paid | $ 15,000,000 | |||||
Business acquisition contingent consideration payments period | 7 years | |||||
Acquisition-related contingent liability, Total | $ 1,327,000 | 2,989,000 | 3,347,000 | |||
Fair value of contingent consideration liability, current | 78,000 | 554,000 | 890,000 | |||
Fair value of contingent consideration liability, non current | 1,249,000 | 2,435,000 | 2,457,000 | |||
Business acquisition contingent consideration, cumulative amount paid | 1,392,000 | |||||
Cash paid to settle outstanding contingent consideration | 585,000 | $ 454,000 | $ 353,000 | |||
Vista Research [Member] | Cost of Sales [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Reduction in fair value of contingent consideration liability | $ 1,483,000 | |||||
Customer Relationships [Member] | Integra Plastics [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Amount of identifiable intangible assets acquired | $ 10,000,000 | |||||
Weighted average useful life | 12 years | |||||
Customer Relationships [Member] | SBG Innovatie [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average useful life | 12 years | |||||
Other Intangible Assets [Member] | Integra Plastics [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Amount of identifiable intangible assets acquired | $ 200,000 | |||||
Weighted average useful life | 2 years | |||||
Other Intangible Assets [Member] | SBG Innovatie [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Weighted average useful life | 5 years |
Acquisitions of and Investmen45
Acquisitions of and Investments in Businesses and Technologies - Total purchase price allocated to the estimated fair values of assets acquired and liabilities assumed (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 | Nov. 03, 2014 | Jan. 31, 2014 | Jan. 31, 2013 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 44,756 | $ 52,148 | $ 22,274 | $ 22,274 | |
Integra Plastics [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash | 1,600 | ||||
Accounts receivable | 4,808 | ||||
Inventory | 7,575 | ||||
Deferred income taxes | 543 | ||||
Other current assets | 24 | ||||
Property, plant and equipment, net | 17,088 | ||||
Goodwill | 27,422 | $ 27,422 | |||
Customer relationships and other definite-lived intangibles | 10,200 | ||||
Short-term and long-term debt | (11,341) | ||||
Current liabilities | (4,084) | ||||
Other liabilities | (5,573) | ||||
Total purchase price | $ 48,262 |
Acquisitions of and Investmen46
Acquisitions of and Investments in Businesses and Technologies - Unaudited Pro forma consolidated condensed financial results of operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
Business Combinations [Abstract] | ||
Net sales | $ 408,906 | $ 431,917 |
Net income attributable to Raven Industries, Inc. | $ 34,424 | $ 45,747 |
Earnings per common share: | ||
Basic (in usd per share) | $ 0.90 | $ 1.20 |
Diluted (in usd per share) | $ 0.90 | $ 1.20 |
Acquisitions of and Investmen47
Acquisitions of and Investments in Businesses and Technologies - Changes in the net carrying value of the investment in SST (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | |||
Balance at beginning of year | $ 3,217 | $ 3,684 | |
Income from equity investment | 83 | 28 | $ 116 |
Balance at end of year | 2,805 | 3,217 | 3,684 |
SST [Member] | |||
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | |||
Balance at beginning of year | 3,217 | 3,684 | 4,063 |
Income from equity investment | 83 | 28 | 116 |
Amortization of intangible assets | (495) | (495) | (495) |
Balance at end of year | $ 2,805 | $ 3,217 | $ 3,684 |
Goodwill & Other Intangibles -
Goodwill & Other Intangibles - Changes in the carrying amount of goodwill by reporting segment (Details) $ in Thousands | 12 Months Ended | |||||
Jan. 31, 2016USD ($)ReportingUnits | Jan. 31, 2015USD ($) | Jan. 31, 2014USD ($) | Oct. 31, 2015USD ($) | Jul. 31, 2015USD ($) | ||
Goodwill [Line Items] | ||||||
Number of reporting units in Aerostar Segment | ReportingUnits | 2 | |||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | $ 52,148 | $ 22,274 | $ 22,274 | |||
Acquired goodwill | 30,466 | |||||
Foreign currency translation adjustment | (116) | (592) | ||||
Purchase price adjustment to acquired goodwill | [1] | 206 | ||||
Goodwill disposed from sale of business | (69) | |||||
Goodwill, Impairment Loss | 7,413 | 0 | 0 | |||
Goodwill, end balance | 44,756 | 52,148 | 22,274 | |||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||||||
Goodwill gross of accumulated impairment losses | 52,169 | 52,148 | 22,274 | |||
Applied Technology [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | 12,550 | 9,892 | 9,892 | |||
Acquired goodwill | 3,250 | |||||
Foreign currency translation adjustment | (116) | (592) | ||||
Purchase price adjustment to acquired goodwill | 0 | |||||
Goodwill disposed from sale of business | (69) | |||||
Goodwill, Impairment Loss | 0 | |||||
Goodwill, end balance | 12,365 | 12,550 | 9,892 | |||
Engineered Films [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | 27,312 | 96 | 96 | |||
Acquired goodwill | 27,216 | |||||
Foreign currency translation adjustment | 0 | 0 | ||||
Purchase price adjustment to acquired goodwill | [1] | 206 | ||||
Goodwill disposed from sale of business | 0 | |||||
Goodwill, Impairment Loss | 0 | |||||
Goodwill, end balance | 27,518 | 27,312 | 96 | |||
Amount of estimated fair value that exceeded the net book value | $ 50,000 | |||||
Aerostar [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | 789 | 789 | 789 | |||
Acquired goodwill | 0 | |||||
Foreign currency translation adjustment | 0 | 0 | ||||
Purchase price adjustment to acquired goodwill | 0 | |||||
Goodwill disposed from sale of business | 0 | |||||
Goodwill, Impairment Loss | 0 | |||||
Goodwill, end balance | 789 | 789 | 789 | |||
Vista [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, beginning balance | 11,497 | 11,497 | 11,497 | |||
Acquired goodwill | 0 | |||||
Foreign currency translation adjustment | 0 | 0 | ||||
Purchase price adjustment to acquired goodwill | 0 | |||||
Goodwill disposed from sale of business | 0 | |||||
Goodwill, Impairment Loss | 7,413 | |||||
Goodwill, end balance | $ 4,084 | $ 11,497 | $ 11,497 | |||
Reporting Unit, Carrying Amount in Excess of Fair Value | $ 8,000 | |||||
Implied fair value amount less than carrying value recorded for the reporting unit | $ 7,413 | |||||
[1] | Working capital adjustment and final deferred tax adjustment for Integra acquisition (see Note 5 Acquisitions Of And Investments In Businesses And Technologies). |
Goodwill & Other Intangibles 49
Goodwill & Other Intangibles - Gross carrying amount and related accumulated amortization of definite-lived intangible assets (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | |||
Amount | $ 26,991 | $ 26,655 | $ 14,225 |
Accumulated Amortization | (11,159) | (8,165) | (6,069) |
Net | 15,832 | 18,490 | 8,156 |
Existing Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amount | 8,825 | 8,870 | 7,840 |
Accumulated Amortization | (6,487) | (5,239) | (4,164) |
Net | 2,338 | 3,631 | 3,676 |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amount | 14,101 | 14,128 | 3,494 |
Accumulated Amortization | (2,794) | (1,271) | (525) |
Net | 11,307 | 12,857 | 2,969 |
Other Intangibles [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amount | 4,065 | 3,657 | 2,891 |
Accumulated Amortization | (1,878) | (1,655) | (1,380) |
Net | $ 2,187 | $ 2,002 | $ 1,511 |
Goodwill & Other Intangibles 50
Goodwill & Other Intangibles - The estimated future amortization expense for identifiable intangible assets (Details) $ in Thousands | Jan. 31, 2016USD ($) |
Estimated amortization expense | |
2,017 | $ 3,514 |
2,018 | 2,873 |
2,019 | 2,018 |
2,020 | 1,464 |
2,021 | $ 1,067 |
Employee Retirement Benefits -
Employee Retirement Benefits - Defined contribution plan (Details) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016USD ($)contribution_plan | Jan. 31, 2015USD ($) | Jan. 31, 2014USD ($) | |
Schedule of Defined Contribution Plans Disclosure [Line Items] | |||
Number of defined contribution plans | contribution_plan | 2 | ||
Current payroll matching percentage by the Company | 4.00% | ||
Participant contribution rate for company stock, maximum | 20.00% | ||
Total contribution expense | $ | $ 1,952 | $ 2,416 | $ 2,412 |
Vista Research [Member] | |||
Schedule of Defined Contribution Plans Disclosure [Line Items] | |||
Current payroll matching percentage by the Company | 4.00% | 3.00% |
- Defined benefit plans (Detail
- Defined benefit plans (Details) | 12 Months Ended | |||
Jan. 31, 2016USD ($) | Aug. 31, 2015USD ($)participants | Jan. 31, 2015USD ($) | Jan. 31, 2014USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit, number of plan participants with benefits terminated | participants | 5 | |||
Years of service required for post-retirement benefits | 20 years | |||
Reduction in benefit obligation due to elimination of coverage | $ 1,000,000 | |||
Other Postretirement Benefit Plan, Defined Benefit [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Plan assets on unfunded plan | $ 0 | $ 0 | $ 0 | |
Amounts that will be amortized from accumulated other comprehensive income in next fiscal year | (13,000) | |||
Recognized net loss over next fiscal year | 146,000 | |||
Amortization of prior service cost over next fiscal year | (159,000) | |||
Expected postretirement medical and other benefit payments in fiscal 2017 | 329,000 | |||
Minimum [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Amount of lump sum payments based on officer's years of service to the company | 8,000 | |||
Maximum [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Amount of lump sum payments based on officer's years of service to the company | $ 15,000 |
Employee Retirement Benefits 53
Employee Retirement Benefits - The accumulated benefit obligation (Details) - Other Postretirement Benefit Plan, Defined Benefit [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 12,125 | $ 8,254 | $ 8,307 |
Service cost | 285 | 195 | 202 |
Interest cost | 386 | 366 | 348 |
Amendments | (958) | 0 | 0 |
Actuarial loss (gain) and assumption changes | (3,544) | 3,543 | (340) |
Retiree benefits paid | (303) | (233) | (263) |
Benefit obligation at end of year | $ 7,991 | $ 12,125 | $ 8,254 |
Employee Retirement Benefits 54
Employee Retirement Benefits - Pre-tax adjustment to accumulated benefit obligation (Details) - Other Postretirement Benefit Plan, Defined Benefit [Member] - USD ($) $ in Thousands | 12 Months Ended | |||||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | ||||||
Net actuarial loss | $ 2,504 | $ 6,309 | $ 2,918 | |||
Prior service cost | (892) | 0 | 0 | |||
Total pre-tax accumulated other comprehensive loss | $ 6,309 | $ 2,918 | $ 3,441 | $ 1,612 | $ 6,309 | $ 2,918 |
Pre-tax accumulated other comprehensive loss - beginning of year related to benefit obligation | 6,309 | 2,918 | 3,441 | |||
Recognized net (loss) | (261) | (152) | (183) | |||
Amortization of prior service cost | 66 | 0 | 0 | |||
Amendments | (958) | 0 | 0 | |||
Net actuarial (gain) loss | (3,544) | 3,543 | (340) | |||
Pre-tax accumulated other comprehensive loss - end of year related to benefit obligation | $ 1,612 | $ 6,309 | $ 2,918 |
Employee Retirement Benefits 55
Employee Retirement Benefits - The liability and expense reflected in the balance sheet and income statement (Details) - USD ($) $ in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||||
Jan. 31, 2016 | Aug. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||||||
Long-term portion in other liabilities | $ 7,662 | $ 7,662 | $ 11,812 | $ 7,998 | ||||
Other Postretirement Benefit Plan, Defined Benefit [Member] | ||||||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||||||
Benefit obligation at beginning of year | $ 12,125 | 12,125 | 8,254 | 8,307 | ||||
Net periodic benefit cost | 866 | 713 | 733 | |||||
Other comprehensive (income) loss | (4,697) | 3,391 | (523) | |||||
Total recognized in net periodic benefit cost and other comprehensive income | (3,831) | 4,104 | 210 | |||||
Retiree benefits paid | (303) | (233) | (263) | |||||
Benefit obligation at end of year | 7,991 | 7,991 | 12,125 | 8,254 | ||||
Current portion in accrued liabilities | 329 | 329 | 313 | 255 | ||||
Long-term portion in other liabilities | $ 7,662 | $ 7,662 | $ 11,812 | $ 7,999 | ||||
Assumptions used to calculate benefit obligation: | ||||||||
Discount rate | 4.25% | 4.25% | 3.50% | 4.50% | ||||
Rate of compensation increase | 4.00% | 4.00% | 4.00% | 4.00% | ||||
Health care cost trend rate assumed for next year | 6.83% | [1] | 7.00% | [2] | 7.20% | 7.70% | ||
Ultimate health care cost trend rate | 4.50% | [1] | 5.00% | [2] | 5.00% | 5.00% | ||
Year that the rate reaches the ultimate trend rate | 2,030 | [1] | 2,025 | [2] | 2,030 | [1] | 2,025 | 2,025 |
Assumptions used to calculated the net periodic benefit cost: | ||||||||
Discount rate | 4.25% | [1] | 3.50% | [2] | 4.50% | 4.25% | ||
Rate of compensation increase | 4.00% | 4.00% | 4.00% | |||||
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates | ||||||||
Effect on total of service and interest cost components, one percentage point increase | $ 89 | |||||||
Effect on total of service and interest cost components, one percentage point decrease | (68) | |||||||
Effect on accumulated postretirement benefit obligation, one percentage point increase | 1,445 | |||||||
Effect on accumulated postretirement benefit obligation, one percentage point decrease | (1,129) | |||||||
2,017 | $ 329 | 329 | ||||||
2,018 | 350 | 350 | ||||||
2,019 | 352 | 352 | ||||||
2,020 | 347 | 347 | ||||||
2021-2025 | $ 2,299 | $ 2,299 | ||||||
[1] | Assumptions used for the five months of fiscal 2016 following the August 31, 2015 remeasurement. | |||||||
[2] | Assumptions used for the seven months of fiscal 2016 prior to the plan amendment triggering the August 31, 2015 remeasurement. |
Warranties (Details)
Warranties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Beginning balance | $ 3,120 | $ 2,525 | $ 1,888 |
Acquired | 0 | 50 | 0 |
Accrual for warranties | 1,945 | 3,467 | 4,561 |
Settlements made | (3,230) | (2,922) | (3,924) |
Ending balance | $ 1,835 | $ 3,120 | $ 2,525 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Income Tax Contingency [Line Items] | |||
Total unrecognized tax benefits that, if recognized, would affect the company's effective tax rate | $ 1,631 | $ 1,617 | $ 3,029 |
Accrued interest and penalties related to unrecognized tax benefits | 1,051 | $ 952 | $ 1,897 |
United States [Member] | |||
Income Tax Contingency [Line Items] | |||
Pre-tax book income, domestic | 9,980 | ||
Canada [Member] | |||
Income Tax Contingency [Line Items] | |||
Pre-tax book income, foreign | 802 | ||
Undistributed Earnings of Foreign Subsidiaries | 1,975 | ||
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | $ 319 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of income tax computed at the federal statutory rate to the company's effective income tax rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Goodwill, time period deductible for Income tax | 15 years | ||
Tax at U.S. federal statutory rate | 35.00% | 35.00% | 35.00% |
State and local income taxes, net of U.S. federal benefit | 2.10% | (0.30%) | 1.50% |
Tax credit for research activities | (8.80%) | (3.90%) | (1.20%) |
Effective income tax rate reconciliation, Tax benefit from insurance premium | (3.90%) | (1.00%) | 0.00% |
Tax benefit on qualified production activities | (3.80%) | (3.60%) | (2.90%) |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 0.00% | 0.70% | 0.20% |
Effective income tax rate | 20.60% | 26.90% | 32.60% |
Favorable prior year tax benefit | $ 776 | ||
Discrete tax benefit | $ 963 |
Income Taxes - Significant comp
Income Taxes - Significant components of the company's income tax provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Currently payable | $ 5,242 | $ 12,663 | $ 20,098 |
Deferred expense (benefit) | (3,021) | (958) | 623 |
Income taxes | $ 2,221 | $ 11,705 | $ 20,721 |
Income Taxes - Significant co60
Income Taxes - Significant components of the company's deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 |
Current deferred tax assets: | |||
Accounts receivable | $ 355 | $ 194 | $ 111 |
Inventories | 602 | 873 | 583 |
Accrued vacation | 836 | 940 | 1,032 |
Insurance obligations | 350 | 271 | 276 |
Accrued benefit liabilities | 99 | 261 | 291 |
Warranty obligations | 670 | 1,225 | 898 |
Other accrued liabilities | 198 | 194 | 181 |
Deferred tax assets, net, current | 3,110 | 3,958 | 3,372 |
Non-current deferred tax assets (liabilities): | |||
Postretirement benefits | 2,797 | 4,243 | 2,799 |
Depreciation and amortization | (12,195) | (16,099) | (11,522) |
Uncertain tax positions | 1,047 | 1,002 | 2,219 |
Share-based compensation | 3,593 | 4,410 | 3,196 |
Deferred Tax Liabilities, Other | (668) | (647) | (218) |
Deferred Tax Liabilities, Net, Noncurrent | (5,426) | (7,091) | (3,526) |
Net Deferred Tax (Liabilities) | $ (2,316) | $ (3,133) | $ (154) |
Income Taxes - Summary of the a
Income Taxes - Summary of the activity related to the gross unrecognized tax benefits (excluding interest and penalties) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross unrecognized tax benefits at beginning of year | $ 2,307 | $ 4,660 | $ 4,213 |
Increases in tax positions related to the current year | 209 | 909 | 795 |
Decreases as a result of a lapse in applicable statute of limitations | (227) | (393) | (348) |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 0 | (2,869) | 0 |
Gross unrecognized tax benefits at end of year | $ 2,289 | $ 2,307 | $ 4,660 |
Financing Arrangements (Details
Financing Arrangements (Details) - USD ($) | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Line of Credit Facility [Line Items] | |||
Total rent and lease expense | $ 2,095,000 | $ 1,977,000 | $ 2,395,000 |
Integra Plastics [Member] | |||
Line of Credit Facility [Line Items] | |||
Borrowing outstanding under line of credit | 0 | 0 | 0 |
SBG Innovatiie and affiliate [Member] | |||
Line of Credit Facility [Line Items] | |||
Borrowing outstanding under line of credit | 0 | $ 0 | 0 |
Wells Fargo Bank, N.A. [Member] | |||
Line of Credit Facility [Line Items] | |||
Date of termination of uncollateralized credit agreement | Apr. 15, 2015 | ||
Borrowing capacity under line of credit | $ 10,500,000 | ||
Maturity date of the line of credit | Nov. 30, 2016 | ||
Letters of credit issued, amount | $ 664,000 | ||
Borrowing outstanding under line of credit | $ 0 | 0 | |
Borrowings under the credit line | 0 | 0 | |
JPMorgan Chase Bank [Member] | |||
Line of Credit Facility [Line Items] | |||
Borrowing capacity under line of credit | $ 125,000,000 | ||
Date of new credit facility | Apr. 15, 2015 | ||
Maturity date of the line of credit | Apr. 15, 2020 | ||
Unamortized debt issuance costs | $ 461,000 | ||
Annual administrative and unborrowed capacity fees | 213,000 | ||
Remaining borrowing capacity under the line of credit | 125,000,000 | ||
Borrowing outstanding under line of credit | 0 | 0 | 0 |
Borrowings under the credit line | $ 0 | $ 0 | $ 0 |
Financing Arrangements - Assume
Financing Arrangements - Assumed Business Combination Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Debt Instrument, Increase (Decrease) [Roll Forward] | |||
Debt outstanding beginning balance | $ 0 | $ 0 | $ 0 |
Acquired in business combination | 11,989 | ||
Additional borrowings | 0 | 2,127 | 0 |
Additional borrowings | 2,127 | ||
Debt repayment | (14,116) | ||
Debt outstanding ending balance | 0 | 0 | 0 |
Line of Credit [Member] | Integra Plastics [Member] | |||
Debt Instrument, Increase (Decrease) [Roll Forward] | |||
Line of credit, beginning balance | 0 | 0 | 0 |
Acquired in business combination | 1,465 | ||
Additional borrowings | 2,127 | ||
Debt repayment | (3,592) | ||
Line of credit, ending balance | 0 | 0 | 0 |
Long term notes [Member] | Integra Plastics [Member] | |||
Debt Instrument, Increase (Decrease) [Roll Forward] | |||
Long term notes, beginning balance | 0 | 0 | 0 |
Acquired in business combination | 9,876 | ||
Additional borrowings | 0 | ||
Debt repayment | (9,876) | ||
Long term notes, ending balance | 0 | 0 | 0 |
Notes with former owners and others [Member] | SBG Innovatiie and affiliate [Member] | |||
Debt Instrument, Increase (Decrease) [Roll Forward] | |||
Notes with former owners and others, beginning balance | 0 | 0 | 0 |
Acquired in business combination | 648 | ||
Additional borrowings | 0 | ||
Debt repayment | (648) | ||
Notes with former owners and others, ending balance | $ 0 | $ 0 | $ 0 |
Financing Arrangements - Future
Financing Arrangements - Future minimum lease payments under non-cancelable operating leases (Details) $ in Thousands | Jan. 31, 2016USD ($) |
Minimum lease payments | |
2,017 | $ 1,661 |
2,018 | 1,394 |
2,019 | 1,126 |
2,020 | 1,150 |
2,021 | 1,179 |
Thereafter | $ 0 |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 399 | |
Payments for Restructuring | $ 55 | 344 |
Cost of Sales [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 250 | |
Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 149 | |
Applied Technology [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 588 | 308 |
Receivable from sale of business | 255 | |
Applied Technology [Member] | Cost of Sales [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 407 | |
Applied Technology [Member] | Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 181 | |
Engineered Films [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 91 | |
Vista Research [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 73 | |
Amount of unpaid costs | 0 | |
Vista Research [Member] | Cost of Sales [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 58 | |
Vista Research [Member] | Research and Development Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 15 |
Share Based Compensation (Detai
Share Based Compensation (Details) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2016USD ($)DirectorAwardPlansshares | Jan. 31, 2015USD ($) | Jan. 31, 2014USD ($) | May. 22, 2012shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of share based compensation plans | Plans | 2 | |||
Number of Directors on Personnel and Compensation Committee | Director | 2 | |||
Number of award types | Award | 2 | |||
Granted, number of options (in shares) | 289,600 | |||
Award vesting period | 4 years | |||
Expiration period | 5 years | |||
Intrinsic value of options exercised | $ | $ 172 | $ 1,467 | $ 3,019 | |
Total compensation cost for non-vested awards not yet recognized in the Company's statements of income | $ | $ 2,089 | |||
Weighted average period to recognize costs associated with non-vested awards in years | 2 years 2 months 22 days | |||
Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved for grant under the plan | 100,000 | |||
Granted (in shares) | 18,721 | |||
stock unit to share conversion | 1 | |||
2010 Stock Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved for grant under the plan | 2,000,000 | |||
Remaining shares available for grant | 1,293,876 | |||
Maximum exercise period | 10 years | |||
2010 Stock Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average period to recognize costs associated with non-vested awards in years | 2 years 5 days | |||
Total unrecognized compensation cost net of estimated forfeitures | $ | $ 576 | |||
2010 Stock Incentive Plan [Member] | Time-vested RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Granted (in shares) | 39,025 | |||
2010 Stock Incentive Plan [Member] | Performance-based RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Granted (in shares) | 68,570 | |||
Percentage of target award | 100.00% | |||
2010 Stock Incentive Plan [Member] | Performance-based RSUs [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance shares target award | 0.00% | |||
2010 Stock Incentive Plan [Member] | Performance-based RSUs [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance shares target award | 150.00% |
Share Based Compensation - The
Share Based Compensation - The compensation cost and related income tax benefit for these plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Share-based Compensation [Abstract] | |||
Share-based compensation cost | $ 2,311 | $ 4,213 | $ 4,198 |
Tax (expense) benefit | $ (692) | $ 1,504 | $ 1,460 |
Share Based Compensation - Weig
Share Based Compensation - Weighted average assumptions by grant year (Details) - $ / shares | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Share-based Compensation [Abstract] | |||
Risk-free interest rate | 1.33% | 1.32% | 0.59% |
Expected dividend yield | 2.59% | 1.53% | 1.46% |
Expected volatility factor | 36.81% | 38.65% | 41.39% |
Expected option term (in years) | 3 years 9 months | 4 years | 3 years 9 months |
Weighted average grant date fair value | $ 4.77 | $ 9.18 | $ 9.34 |
Share Based Compensation - Outs
Share Based Compensation - Outstanding stock options (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Jan. 31, 2016USD ($)$ / sharesshares | |
Number of options | |
Outstanding, beginning of period (in shares) | shares | 1,015,275 |
Granted (in shares) | shares | 289,600 |
Exercised (in shares) | shares | (50,000) |
Forfeited (in shares) | shares | (72,400) |
Expired (in shares) | shares | (256,525) |
Outstanding, end of period (in shares) | shares | 925,950 |
Weighted average exercise price | |
Outstanding, beginning of period (in usd per share) | $ / shares | $ 29.04 |
Granted (in usd per share) | $ / shares | 20.09 |
Exercised (in usd per share) | $ / shares | 15.49 |
Forfeited (in usd per share) | $ / shares | 27.42 |
Expired (in usd per share) | $ / shares | 24.18 |
Outstanding, end of period (in usd per share) | $ / shares | $ 28.44 |
Aggregate intrinsic value, Outstanding, end of period | $ | $ 0 |
Weighted average remaining contractual term (years), Outstanding, end of period | 2 years 5 months 22 days |
Number of options, Outstanding exercisable, end of period | shares | 453,425 |
Weighted average exercise price, Outstanding exercisable, end of period | $ / shares | $ 31.30 |
Aggregate intrinsic value, Outstanding exercisable, end of period | $ | $ 0 |
Weighted average remaining contractual term (years), Outstanding exercisable, end of period | 1 year 5 months 22 days |
Share Based Compensation - Rest
Share Based Compensation - Restricted Stock Units (Details) - 2010 Stock Incentive Plan [Member] | 12 Months Ended |
Jan. 31, 2016$ / sharesshares | |
Time-vested RSUs [Member] | |
Number of restricted stock units | |
Outstanding, beginning of period (in shares) | 68,137 |
Granted (in shares) | 39,025 |
Vested (in shares) | (18,526) |
Forfeited (in shares) | (6,710) |
Outstanding, end of period (in shares) | 81,926 |
Weighted average grant date fair value | |
Outstanding, beginning of period (in usd per share) | $ / shares | $ 31.27 |
Granted (in usd per share) | $ / shares | 19.25 |
Vested (in usd per share) | $ / shares | 31.66 |
Forfeited (in usd per share) | $ / shares | 29.97 |
Outstanding, end of period (in usd per share) | $ / shares | $ 25.53 |
Cumulative dividends, end of period | 3,107 |
Performance-based RSUs [Member] | |
Number of restricted stock units | |
Outstanding, beginning of period (in shares) | 152,439 |
Granted (in shares) | 68,570 |
Vested (in shares) | (52,502) |
Forfeited (in shares) | (17,783) |
Performance-based adjustment (in shares) | (84,656) |
Outstanding, end of period (in shares) | 66,068 |
Weighted average grant date fair value | |
Outstanding, beginning of period (in usd per share) | $ / shares | $ 32.40 |
Granted (in usd per share) | $ / shares | 20.09 |
Vested (in usd per share) | $ / shares | 31.66 |
Forfeited (in usd per share) | $ / shares | 28.27 |
Performance-based adjustment (in usd per share) | $ / shares | 29.02 |
Outstanding, end of period (in usd per share) | $ / shares | $ 25.65 |
Cumulative dividends, end of period | 7,557 |
Share Based Compensation - Ou71
Share Based Compensation - Outstanding stock units (Details) - Director [Member] | 12 Months Ended |
Jan. 31, 2016$ / sharesshares | |
Number of stock units | |
Outstanding, beginning of period (in shares) | shares | 69,347 |
Granted (in shares) | shares | 18,721 |
Deferred retainers (in shares) | shares | 3,120 |
Dividends (in shares) | shares | 2,546 |
Outstanding, end of period (in shares) | shares | 93,734 |
Weighted average price | |
Outstanding, beginning of period (in usd per share) | $ / shares | $ 21.44 |
Vested (in usd per share) | $ / shares | 19.23 |
Deferred retainers (in usd per share) | $ / shares | 19.23 |
Dividends (in usd per share) | $ / shares | 17.67 |
Outstanding, end of period (in usd per share) | $ / shares | $ 20.82 |
Net Income per Share (Details)
Net Income per Share (Details) - shares | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 1,107,733 | 781,988 | 577,213 |
Net Income per Share - Schedule
Net Income per Share - Schedule of calculation of numerator and denominator in earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Numerator: | |||
Net income attributable to Raven Industries, Inc. | $ 8,489 | $ 31,733 | $ 42,903 |
Denominator: | |||
Weighted average common shares outstanding (in shares) | 37,237,717 | 36,859,026 | 36,379,356 |
Weighted average stock units outstanding (in shares) | 86,745 | 69,484 | 67,724 |
Denominator for basic calculation (in shares) | 37,324,462 | 36,928,510 | 36,447,080 |
Weighted average common shares outstanding (in shares) | 37,237,717 | 36,859,026 | 36,379,356 |
Weighted average stock units outstanding (in shares) | 86,745 | 69,484 | 67,724 |
Dilutive impact of stock options and RSUs (in shares) | 75,481 | 174,784 | 198,295 |
Denominator for diluted calculation (in shares) | 37,399,943 | 37,103,294 | 36,645,375 |
Net income per share - basic (in usd per share) | $ 0.23 | $ 0.86 | $ 1.18 |
Net income per share - diluted (in usd per share) | $ 0.23 | $ 0.86 | $ 1.17 |
Business Segments and Major C74
Business Segments and Major Customer Information - Segment reporting information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||
Sales | $ 258,229 | $ 378,153 | $ 394,677 | |
Operating income | 11,092 | 43,801 | 63,994 | |
Assets | 306,610 | 362,873 | 301,819 | |
Capital expenditures | 13,046 | 17,041 | 30,701 | |
Depreciation and amortization | 17,609 | 17,369 | 14,195 | |
Pre-contract deferred costs written off | 0 | 0 | ||
Goodwill impairment loss | 7,413 | 0 | 0 | |
Applied Technology [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill impairment loss | 0 | |||
Engineered Films [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill impairment loss | 0 | |||
Corporate & Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | (17,110) | (21,704) | (18,865) | |
Assets | [1],[2] | 66,079 | 74,960 | 74,116 |
Capital expenditures | 661 | 2,523 | 7,189 | |
Depreciation and amortization | 1,676 | 2,230 | 1,439 | |
Aerostar [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill impairment loss | 0 | |||
Vista Reporting Unit [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill impairment loss | 7,413 | |||
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 258,229 | 378,153 | 394,677 | |
Operating income | 28,202 | 65,505 | 82,859 | |
Assets | 240,531 | 287,913 | 227,703 | |
Capital expenditures | 12,385 | 14,518 | 23,512 | |
Depreciation and amortization | 15,933 | 15,139 | 12,756 | |
Operating Segments [Member] | Applied Technology [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 92,599 | 142,154 | 170,461 | |
Operating income | [3] | 18,319 | 34,557 | 57,000 |
Assets | [2] | 65,490 | 88,764 | 93,395 |
Capital expenditures | 664 | 3,478 | 9,324 | |
Depreciation and amortization | 4,428 | 5,569 | 4,332 | |
Gain on disposal of assets | 611 | |||
Operating Segments [Member] | Engineered Films [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 129,465 | 166,634 | 147,620 | |
Operating income | 17,892 | 21,802 | 18,154 | |
Assets | [2] | 134,942 | 140,023 | 71,602 |
Capital expenditures | 10,780 | 8,241 | 6,681 | |
Depreciation and amortization | 7,735 | 6,096 | 5,808 | |
Operating Segments [Member] | Aerostar [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 36,368 | 80,772 | 90,605 | |
Operating income | [4] | (8,100) | 8,983 | 7,816 |
Assets | [2] | 40,156 | 59,274 | 63,017 |
Capital expenditures | 941 | 2,799 | 7,507 | |
Depreciation and amortization | 3,770 | 3,474 | 2,616 | |
Operating Segments [Member] | Vista Reporting Unit [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Pre-contract deferred costs written off | 2,933 | |||
Goodwill impairment loss | 7,413 | |||
Reduction in fair value of contingent consideration liability | 1,483 | |||
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 91 | 163 | (111) | |
Assets | (57) | (148) | (311) | |
Intersegment Eliminations [Member] | Applied Technology [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | (8) | (231) | (386) | |
Intersegment Eliminations [Member] | Engineered Films [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | (195) | (652) | (505) | |
Intersegment Eliminations [Member] | Aerostar [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | $ 0 | $ (10,524) | $ (13,118) | |
[1] | Assets are principally cash, investments, deferred taxes, and other receivables. | |||
[2] | Certain facilities owned by the Company are shared by more than one reporting segment. Beginning with fiscal year 2016 all facilities are reported as an asset based on the segment that acquired the asset as we believe this better reflects total assets of the business segment. In prior fiscal years (which have not been recast in this table), the book value of certain shared facilities was allocated across reporting segments based on usage. Expenses and costs related to these facilities including depreciation expense, are allocated and reported in each reporting segment's operating income for each fiscal year presented. | |||
[3] | The fiscal year ended January 31, 2016 includes gains of $611 on disposal of assets related to the exit of contract manufacturing operations. | |||
[4] | The fiscal year ended January 31, 2016 includes pre-contract cost write-offs of $2,933, a goodwill impairment loss of $7,413, and a $1,483 reduction of an acquisition-related contingent liability for Vista as a result of changes in expected sales and cash flows. |
Business Segments and Major C75
Business Segments and Major Customer Information (Details) | 12 Months Ended | ||
Jan. 31, 2016Divisionscustomer | Jan. 31, 2015customer | Jan. 31, 2014customer | |
Segment Reporting Information [Line Items] | |||
Number of Raven Divisions | Divisions | 3 | ||
One Customer [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 10.00% | ||
Engineered Films [Member] | One Customer [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 14.00% | 13.00% | |
Receivables from major customer, percentage | 5.00% | 2.00% | |
Concentration risk, number of customers | customer | 0 | 1 | 1 |
Business Segments and Major C76
Business Segments and Major Customer Information - Sales to countries outside the United States (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 258,229 | $ 378,153 | $ 394,677 |
All foreign [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 27,849 | 36,835 | 45,893 |
Canada [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 11,789 | 14,432 | 16,141 |
Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 10,526 | 8,243 | 4,131 |
Latin America [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,676 | 9,921 | 22,124 |
Other foreign sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,858 | 4,239 | 3,497 |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 230,380 | $ 341,318 | $ 348,784 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 2 Months Ended | |
Mar. 21, 2016 | Jan. 31, 2016 | |
Forty million stock buyback prorgram [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Stock Repurchase Program, Authorized Amount | $ 40,000 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 10,700 | |
Subsequent Event [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Subsequent Event, Date | Mar. 21, 2016 | |
Stock Repurchase Program, Authorized Amount | $ 10,000 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 20,700 |
Schedule II - Valuation and Q78
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2014 | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Year | $ 319 | $ 319 | $ 205 | |
Charged to Costs and Expenses | 1,066 | 211 | 129 | |
Charged to Other Accounts | 0 | 19 | 0 | |
Deductions From Reserves | [1] | 351 | 230 | 15 |
Balance at End of Year | $ 1,034 | $ 319 | $ 319 | |
[1] | Represents uncollectable accounts receivable written off during the year, net of recoveries. |